amsterdam speech 11.9 (carol cone); het communicatie congres 2012

PURPOSE: PURPOSE: How to Become a How to Become a Leader in Corporate Leader in Corporate GoodnessGoodness

Carol L. ConeGlobal Practice Chair, Edelman Business + Social PurposeNovember 15, 2012November 15, 2012

Paul Polman

2

“This is a great time for brands which can provide a beacon of trust for consumers. These days, CEOs don’t just get judged by how well their share prices are doing, but by what impact they are having on society.”

Paul PolmanCEO, Unilever

Many Names…

Cause Branding Corporate Citizenship Ideals Cause Marketing Goodness Triple Bottom CSR Cause Branding Corporate Citizenship Ideals Cause Marketing Goodness Triple Bottom CSR Cause Branding Corporate Citizenship Ideals Cause Marketing Goodness Triple Bottom CSR Cause Branding Corporate Citizenship Ideals Cause Marketing Goodness Triple Bottom CSR Cause Branding Corporate Citizenship Ideals Cause Marketing Goodness Triple Bottom CSR Cause Branding Corporate Citizenship Ideals Cause Marketing Goodness Triple Bottom CSR Cause Branding Corporate Citizenship Ideals Cause Marketing Goodness Triple Bottom CSR Cause Branding Corporate Citizenship Ideals Cause Marketing Goodness Triple Bottom CSR Cause Branding Corporate Citizenship Ideals Cause Marketing Goodness Triple Bottom CSR Cause Branding Corporate Citizenship Ideals Cause Marketing Goodness Triple Bottom CSR Cause Branding Corporate Citizenship Ideals Cause Marketing Goodness Triple Bottom CSR Cause Branding Corporate Citizenship Ideals Cause Marketing Goodness Triple Bottom CSR Cause Branding Corporate Citizenship Ideals Cause Marketing Goodness Triple Bottom CSR Cause Branding Corporate Citizenship Ideals Cause Marketing Goodness Triple Bottom CSR Cause Branding Corporate Citizenship Ideals Cause Marketing Goodness Triple Bottom CSR Cause Branding Corporate Citizenship Ideals Cause Marketing Goodness Triple Bottom CSR Cause Branding Corporate Citizenship Ideals Cause Marketing

4

Purpose

Purpose is an organization’s reason for being beyond profits.

Why? Our Connected World

Consumer Expectations Talent

Social Issues GlobalizationEnvironment

TrustRadical

Transparency

hungry concerned vocal empowered

An Evolving “Consumer”

6

Societal Performance Builds Future Trust 7

From Operational to Societal

8

Listens to customer needs and feedback

High quality products or services

Places customers ahead of profits

Takes actions to address issue or crisis

Treats employees well

Works to protect/ improve environment

Has ethical business practices

Has transparent and open business

Innovator of new products

Communicates frequently and honestly

Addresses society's needs

Positively impacts the local community

Ranks on a global list

Highly regarded, top leadership

Delivers consistent financial returns

Partners with third parties

16 Trust Building Attributes

Current Trustdriven by

operational attributes

SOCIETAL ATTRIBUTES MORE IMPORTANT to Building future trust

Societal Operationa

l

9

The empowered customer is now in control…..

thus, Corporate Character is key as an organization's behavior is as much a part of the value equation as products and services

IBM CMO Survey 2012

10

Ideals Drive Growth

It’s not If, but How:

Fifth Global Consumer Study 2012What consumers have to say…

StrategyOne surveyed 8,000 consumers across 16 countries, aged 18+

UK500UK

500

FRANCE500

FRANCE500

CANADA500

CANADA500

BRAZIL500

BRAZIL500

NETHERLANDS500

NETHERLANDS500

BELGIUM500

BELGIUM500

SINGAPORE500

SINGAPORE500

GERMANY500GERMANY500

ITALY500ITALY500

INDIA500INDIA500

CHINA500CHINA500

JAPAN500JAPAN500

UAE500UAE500

US500US

500

INDONESIA500INDONESIA500

MALAYSIA500MALAYSIA500

86% of global consumers still believe that business needs to place at least equal weight on society’s interests as on business’ interests.

Re:Purpose

13

84% in the Netherlands

Business is performing well in addressing societal issues

Business is Struggling to Meet ExpectationsPerformance Gap in Addressing Societal Issues

Business should place at least equal weight on society's interests and business' interests

Profit + Purpose: The New Normal

15

+33%

It is OK for brands to support good causes and make money at the same time

17

+ 26%

Growth from 2010•Japan (100%)•China (79%)•Netherlands (43%)•Germany (36%)•India (43%)

Social Purpose as Purchase TriggerWhen quality and price are the same, Social Purpose most important factor

2010

2012

PROMOTE

SWITCH

2010

2012

34%

54%+ 20%

40%

62%

19

2010

2012RECOMMEND + 21%35%

56%

2010

2012TRUST + 20%39%

59%

+ 22%

Dutch Consumers Prefer Purpose

20

‘At Least Monthly’ purchases of cause-supporting brands increased by 13% from 2010 - 2012

23%

24%

60% 68%

21%

47%

Dutch Purchase Frequency

Purpose in the Netherlands

21

24

Purpose Ideas Build From…

Broader Mission Current Events Innovative Products/Services Brand/Company Scale Distinguishing Characteristic

25

Broader Mission

26

Pampers 1 Pack = 1 Vaccine

27

IBM Smarter Planet

28

Current Events

29

Benetton Youth Unemployment

30

Innovative Products & Services

Levi’s Waterless

GE Ecomagination

33

Using Scale for Good

Microsoft Youthspark

300 million youth in 3

years

Walmart Hunger Relief“Walmart’s Big Plan to Feed the Food Desserts of the U.S.”

36

Distinguishing Characteristic

Dawn Detergent

Chipotle Cultivate

Chipotle

39

Not IF, but HOW…

Customize for local executionCustomize for local execution

Work with NGOs, colleagues, competitorsWork with NGOs, colleagues, competitors

Build performance measures up frontBuild performance measures up front

Story, story, storyStory, story, story

Evolve programs to stay relevantEvolve programs to stay relevant

Employees, partners, consumersEmployees, partners, consumers

Start with depth, not scaleStart with depth, not scale

Powerful programs are leader ledPowerful programs are leader ledLEADLEADLEADLEAD

CONSTRUCTCONSTRUCTCONSTRUCTCONSTRUCT

CUSTOMIZECUSTOMIZECUSTOMIZECUSTOMIZE

COLLABORACOLLABORATETE

COLLABORACOLLABORATETE

MEASUREMEASURE

NARRATENARRATENARRATENARRATE

EVOLVEEVOLVEEVOLVEEVOLVE

ENGAGEENGAGE

40

“P&G’s Purpose—to touch and improve lives, now and for generations to come—inspires everything we do. It guides our strategic choices, leads to bigger and better innovation, drives brilliant execution and compels us to make a difference.”

Bob McDonald, CEO

42

P&G for Moms

43

Actions Taken in Relation to a CompanyThat Actively Supports a Good Cause

2012

2010

Global

Global

62%41%

75%62%

39%

55%37%

58%42%

27%

45%21%

17%

43%30%

26%

44

What’s Your Purpose?

carol.cone@edelman.com@carolcone