Corporate Social Responsibility:

Building Trust through Listening, Commitment and Transparency

March 21, 2018

BRAD RYE CHUCK BEELER

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https://www.youtube.com/watch?v=rIY7dX3B0M8

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WHAT IS CORPORATE SOCIAL RESPONSIBILITY?

Is it …

.. acting in an ethical manner?

.. producing quality products?

.. committing to a fair and diverse workplace?

.. using responsible sourcing strategies?

.. respecting people and communities?

.. being a good corporate citizen?

“Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large.”

The World Business Council for Sustainable Development

WHY COMMIT TO A RESPONSIBILITY PLATFORM?

It’s become table stakes…

“Consumers in developed markets are harder to influence and many consider it basic cost of entry. Brands have to

define a credible, relevant social purpose to deliver greater value.”

The 2016 Sustainability Imperative, The Nielson Company

70% of US companies said that social and environmental responsibility is a permanent part of their corporate agenda.

MIT

Responsible companies perform better…

Companies considered “leaders”

in environmental and social governance outperformed the

financial markets by 25%.

72% outperformed their peers.

Goldman Sachs

50% of CEOs believe company revenue has increased through stronger sustainability efforts.

CFO Research

WHY COMMIT TO A RESPONSIBILITY PLATFORM?

Customers prefer responsible brands…

77% of consumers say its important that the brands they do business

with are committed to environmental and social responsibility practices.

66% said they are likely to change brands based on

a company’s sustainability and social

responsibility

Landor

67% of consumers are willing to pay more for products from companies that are committed to social and environmental impact.

Nielson Global Sustainability Report

WHY COMMIT TO A RESPONSIBILITY PLATFORM?

Employees care…70% of millennials say a company’s commitment to social and environmental issues influences their decision to work there.

52% of employed adults feel that the companies they work for should do more for the environment.

Deloitte

Addeco

45% would take a pay cut (up to 15%) for a job that makes a positive environmental impact.

65% of MBAs want to work for a company that makes them feel like they will make an environmental/ social impact.

Net Impact

WHY COMMIT TO A RESPONSIBILITY PLATFORM?

Purpose-oriented employees:• Tend to remain with employers 20% longer• Are 47% more likely to be engaged promoters of the

companies they work for.NYU Study

WHO DECIDES WHAT IT MEANS FOR YOU?

You…

Your Stakeholders…

The Marketplace…

You Your Stakeholders The Marketplace

BUILDING TRUST: LISTENING,

COMMITMENT & TRANSPARENCY

LISTENING:

CustomersFocus groups, interviews, surveys:

• Define wants & needs• Clarify brand expectations• Multi-channel outreach

• Residential/B-C• Commercial/B-B

Competitive Analysis of responsibility platforms for competitors:

• Foundational assets of CSR• Key program elements• Alignment• How do they tell their story

StakeholdersDiscussions with employees, including sales and operations, vendors & distribution:• Assess perceptions• Measure expectations• Identify gaps

Responsible Brands

1. Ethical

Practices

2. Innovation

3. Government/

Policy Advocacy

4. Environmental Stewardship

5. Community Citizenship

CUSTOMER EXPECTATIONS: COMMERCIAL VS. CONSUMER

Responsible Brands

1. Environmental Consciousness

2. Health and Wellness Advocacy

3. Community/ Humanitarian

Support

4. Ethical

Behavior

COMMITMENT & ALIGNMENT

Aligned Company Vision…• Your stakeholders want to know what you stand for:

• Consumers expect your brand values to align with their values, and it guides their buying habits

• Your employees want to know what you stand for• Commercial customers expect you to support their values

MISSION, VISION, VALUES

BELIEVE

INSPIRE

REMEMBER

FOUR KEYS TO EFFECTIVE CSR COMMUNICATION

• Authenticity – Clear, thoughtful message(s) that conveys strategy, connects with constituents

• Consistent & Ongoing Outreach – Continually refresh content and sustain dialogue

• Multi-Channel Communications – Use all mediums and formats to reach constituents

• Communicate Results - Do things that can be measured, and continually report progress

MANAGING CHANGE ….

DEFINITION OF “RESPONSIBILITY” CONTINUES TO EVOLVE

Cone 2017 CSR Study

CRITICAL ASPECTS OF AN AUDIT

• Are you delivering on your promise? • Gauge the connectivity between the purpose & the programs

• Assessing and evaluating alignment• Synergies between business & CSR strategies• Alignment with key constituents

• Are you successful in communicating your CSR commitment?• Assess transparency• Review the effectiveness of messaging & delivery

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