the credit union opportunity: success through leadership and purpose presented to the cucc june 26,...
TRANSCRIPT
The Credit Union Opportunity:
Success Through Leadership and Purpose
Presented to the CUCC
June 26, 2014
Presented by: Chris Coulter
• Introduction • Business & Society• The Business Case for CSR• Leadership • Seizing the Opportunity • Discussion
Agenda
Multiple Sources of Evidence
+
Key Points
1. Urgent action required: we need to accelerate progress in sustainability
2. Ongoing pressure: growing expectations for responsible business and
government regulation, declining trust in business
3. Opportunities exist: consumers and employees are looking for companies
with corporate purpose
4. Recognized leadership: time is right to build integrated sustainability
strategies that mobilize stakeholders internally and externally
Business & Society
Accelerating sustainability
• Too many indicators going the wrong – urgency to change tack
• Scale & speed of progress required means we must address challenge of systemic change
• Collective success will come from a more enabling context
• Governments unable to lead; NGOs are not powerful enough; investors and consumers not yet engaged – it falls to business
7
Canadians have low trust in business, especially CU members
4t. Please tell me how much you trust each of the following institutions to operate in the best interest of our society. Would you say you have a lot of trust, some trust, not much trust, or no trust at all in…?
CU members much more distrusting of Canadian companies: -15 vs. -2 net rating
8
Massive decline in trust in Canadian companies
Trust in InstitutionsNet Trust,* Canada, 2001–2014
4t. Please tell me how much you trust each of the following institutions to operate in the best interest of our society. Would you say you have a lot of trust, some trust, not much trust, or no trust at all in…?
20012002
20042005
20072009
20102012
20132014
-30
-10
10
30
50
70
90Scientific/academic institutions
NGOs
National government
National companies
*Net trust equals “a lot of trust” and “some trust” minus “not much trust” and “no trust at all”
9
Coca-Cola - They use their profits in reforestation
Zoomlion - Waste managing and clearance
Toyota - What makes them trustworthy is transparency, if you have that you are trustworthy.
Unilever – Because they hold competitions of ‘green and clean’ between villages
Microsoft - They've had a very good relationship with their employees
Gazprom - It participates in charity/ has positive attitude toward children
Why companies are trusted
John Lewis - Because they provide a good service and they pay their staff well
10
H&M - With honest work you cannot offer those prices. I think they promote/use child labour.
Sanlu - Babies have been poisoned by its milk powder
Peugeot - Thinking more capital than workers
Ripley - Exploits their employees / pays low salaries
Safaricom - It steals from the public through hidden charges
Walmart - It is absolutely horrible to its employees.
Gazprom - Prices are going up all the time. With natural resources which our country possesses, each person could be a millionaire
BP- After the disaster, oil leak, they tried to get out of it, and later had to generate a PR agenda, just to clear their name.
Why companies are distrusted
Lapindo Brantas - Damaging the environment
11Q13t. And what about the Banking/Financial Services industry - what is the most important issue it needs to address?
Issues Financial Industry Should Most AddressTop Mention, Canada, 2014
Profiteering, ethics, and greed top list of issues banks should address
Reducing service charges
Operating ethically
Profits/greed
Better customer service
Loans for small businesses
Low interest rates on deposits
Regulation/restructuring of banking system
Responsible lending
Protecting customer privacy
Risk management
Security of customers' money
17
12
11
5
4
4
4
4
3
2
2
12
Fall in perceived responsibility of banking industry has stabilized after crisis years
Q23bt. Please rate each of the following types of companies on how well they fulfill their responsibilities to society. Compared to other types of companies, would you say [INSERT COMPANY TYPE] are? -
The need for integration, understanding and narratives
The Business Case for CSR
15
High Expectations: plurality increasingly believe that companies should have extended role
Q6t. People have different views on the role of large companies in society. In your view, should large companies?
16
‘Very Serious’ ChallengeCredit union members vs non-members, 2014
Values: CU members more concerned about core social and environmental issues
Poverty/homelessness
Environmental pollution
Health care
Crime/violence
Education
Online data security/privacy
Rising cost of food/energy
Lack of social security
Unemployment
Economic problems/uncertainty
Violation of workers’ rights
Human rights
Economic inequality
Gender inequality
56
55
54
49
41
37
34
34
29
28
28
27
26
15
48
49
52
48
38
47
51
43
36
39
28
31
34
23
Non-credit union customers
Credit union customers
Q3t. I am going to read you a list of possible challenges in our society. For each, please tell me how serious a challenge you think it is
17
Regulatory Pressure: support for greater regulation around CSR continues to grow
Q8t_dt. Please tell me if you strongly agree, somewhat agree, somewhat disagree, or strongly disagree with each of the following statements. – Our government should create laws that require large companies to go beyond their traditional economic role and work to make a better society, even though this could lead to higher prices and fewer jobs.
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Q8t_gt. Please tell me if you strongly agree, somewhat agree, somewhat disagree, or strongly disagree with each of the following statements. - The more socially responsible my company becomes, the more motivated and loyal I become as an employee.
Human Capital: majorities of corporate employees report being motivated by CSR
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Consumers:
?
ASPIRATIONALSMEET THE
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Consumer segmentation that aligns marketing and sustainability
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Aspirational are everywhere
China51%
India58%
USA 34%
UK41%
Russia47%
Spain32%
Peru42%
South Korea53%
Germany23%
Argentina21%
Indonesia46%
Mexico21%
Brazil33%
% of Population Who Are Aspirationals18 Countries, 2014
Pakistan38%
Australia40%
France24%
Nigeria43%
Canada41%
Credit Unions unique opportunity
‘Do no harm’
‘Catalyst for good’
Status Quo Credit Unions
‘Do no harm’
‘Catalyst for good’
Leadership
25
State of recognized leadership in Canada
24t Please name a specific large company that comes to your mind as fulfilling its responsibilities to society better than others – in other words, is a “responsible company”. Can you name another? 27t Please name a specific large company that comes to your mind as doing a POOR job of fulfilling its responsibilities to society; in other words, a company you see as NOT being a responsible company. Can you name another?
Most Socially Responsible CompaniesCanada, 2014
Ford
Bell Canada
Enbridge
Loblaws
Tim Hortons
Toyota
Walmart
4
3
3
2
2
2
2
2
26
Unilever increasing its lead
27
Stakeholders point to companies with an integrated CSR strategy and branded platform
Sustainable Living Plan
“Don’t Buy this Jacket”
Mission Zero
Ecomagination / Healthymagination
Plan A
Nike Better World
Creating Shared Value
Live Positively / Me We World
People & Planet Positive
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Leadership Framework
Vision & Strategy
Integration & Performance
Engagement &Communications
• Big idea: aspirational vision• Ambitious galvanizing goals• Business and sustainability
strategy alignment
• Targets & metrics• Programs & initiatives• Embedded across business
• Transparency• Dialogue and collaboration• Branded platform
THE CHALLENGE:
MANAGING COMPLEXITY, DEFINING WHAT WE STAND FOR AND COMMUNICATING THIS IN AN
INTEGRATED AND ALIGNED FASHION
Seizing The Opportunity
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Complexity
1. Scale a coordinated big idea
1. Scale a coordinated big idea: a purposeful platform to deepen commitment, clarify what you stand for, and align with broader business and societal goals
Ambitious Galvanizing Goals
Programs & Initiatives
Materiality & Stakeholder Expectations
Targets & Metrics
…What do you stand for?
…Why should stakeholders care?
…How do stakeholders know?
…What do you mean?
…Why do you care?
Complexity
Big Idea
2. Align for success: stronger internal (and external) alignment allows for better management of risks and opportunities
3. Expand communications and engagement to ensure ROI on CSR: recognized leadership delivers reputation equity, brand equity and talent equity
• Reputation Equity: Greater opportunities for partnerships, more influence on policy and better risk management
• Brand Equity: Increased market share, enhanced customer loyalty and brand value
• Talent Equity: More motivated work force, higher employee retention and increased talent attraction
What Are We Going to Choose?