why corporations invest in corporate social responsibility
DESCRIPTION
New Weber Shandwick Social Impact survey on corporate social responsibility. Having an impact on critical issues is the number one reason why corporations invest in philanthropic or socially responsible activities, according to executives in new research released today by Weber Shandwick’s Social Impact specialty group. A second reason given for funding corporate social responsibility (CSR) is the opportunity to see an organization’s values in action (25%). The survey of more than 200 corporate executives in large-sized companies with responsibility for philanthropic, social responsibility or community relations was conducted by KRC Research in October 2010.TRANSCRIPT
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Table of Contents
Research Methodology 3
Executive Summary 4
Strategic Implications 5
Detailed Findings 6
Respondent Profile 13
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Research MethodologyDates of interviews: October 6th – October 22nd, 2010
Survey mode: Telephone
Sample: 216 Fortune 2000 Corporate Executives with Program or Communications Oversight for Corporate Philanthropy, Social Responsibility & Community Relations
Margin of error: +/- 6.8 percentage points at the 95% confidence level
Notes: Numbers may not total 100% due to rounding
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Executive Summary• Having an impact on critical issues is the number one reason why corporations invest
in philanthropic or socially responsible activities• A second reason for funding CSR is to see an organization’s values in action (25%)• Having an impact on issues (30%) outranked several more business-oriented
motivations, such as building customer loyalty (15%), differentiating a company from competitors (6%) and engaging and retaining employees (4%)
• Nearly 80% of executives say they fund nonprofits as part of their CSR, and 73% say nonprofits bring expertise that help CSR programs to thrive
• Most (72%) say nonprofits make their CSR investment more effective, provide a critical foundation and infrastructure (73%) and help engage consumers (71%)
• Executive support is a top success factor, with 94% of respondents saying strong and vocal support from senior management is important to the success of CSR
• A sizable majority (80%) agree that a focus on a specific issue or area is important
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Strategic Implications• The findings of this research offer insights into how corporations can maximize
the impact of CSR programs. Key implications include:– Companies should focus on critical community issues where they can make the
maximum impact and align resources and expertise – Nonprofits provide expertise, infrastructure and help engage consumers – they will
continue to be important partners in advancing CSR efforts – Companies may have broad CSR portfolios, but what matters more is that they have
well-designed programs designed to foster genuine change on issues– Successful CSR programs require early and active support from senior executives,
particularly to help sharpen the focus of CSR and define clear objectives– CSR programs have multiple internal and external stakeholders – and
communications and community engagement should work together
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Companies are most focused on impactAbout a third of executives agree the primary reason to invest in pro-social
or CSR programs is to make an impact on critical issues.
It's an opportunity to make an impact on critical issues
It's a way to demonstrate our values in action
It's a smart decision for our business
It's a way to build loyalty among customers
It's a way to differentiate us from competitors
It's a way to engage and retain employees
30%
25%
18%
15%
6%
4%
In your opinion, what is the primary reason your company invests in pro-social or CSR programs?
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Almost 6 in 10 executives say their company provides funds for nonprofits.
Nonprofit partners are vital to CSR successMost see great value in funding nonprofits as partners in CSR efforts.
The majority also agree that nonprofits are valuable partners for CSR efforts.
Yes, extensively Yes, moderately Yes, minimally No
20%
39%
19% 21%
Completely agree
Somewhat agree
Neither agree nor disagree
Somewhat disagree
Completely disagree
38%41%
19%
0% 0%
59% 79%
Does your company fund nonprofit organizations to advance your CSR or pro-social efforts?
Do you agree or disagree that nonprofits are valuable partners in CSR efforts?
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0%
-5%
-3%
-3%
0%
0%
-1%
0%
26%
25%
25%
24%
46%
48%
45%
50%
Funding nonprofit partners makes organizations more
effective in their CSR effortsNonprofits provide the
foundation and infrastructure for effective CSR programs
Nonprofits help engage consumers in CSR efforts
Nonprofits bring expertise that help CSR programs to
thrive
Somewhat disagreeCompletely disagree Somewhat agreeCompletely agree
Nonprofits bring real value to CSR effortsExecutives see multiple ways companies can work with nonprofits to
improve CSR efforts.
NET Agree
Neither agree nor disagree
72% 26%
73% 21%
71% 24%
73% 23%
Now I am going to read you some statements about working with nonprofit organizations on CSR or pro-social programs. Please tell me if you completely agree, somewhat agree, neither agree nor disagree, somewhat disagree, or
completely disagree.
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-6%
-7%
-13%
-16%
-17%
-15%
0%
-1%
0%
-2%
-3%
-2%
44%
41%
32%
31%
30%
28%
50%
50%
54%
52%
50%
55%
Strong and vocal support from senior management
Well defined objectives and desired outcomes
Employee engagement, participation
Focus on a specific issue or area
Customer engagement, participation
Non-profit partners with expertise and credibility
NET Important
94%
91%
86%
82%
80%
83%
Somewhat importantNot too important Very importantAbsolutely critical
Senior-level support and clear goals are keyOver 9 in 10 feel the support of senior management and having well defined objectives
for programs are the most important aspects of organizations’ CSR efforts.
Here is a list of potential elements of CSR or pro-social programs. For each, please tell me how important you feel they are to successful CSR or pro-social programs – absolutely critical, very important, somewhat important, or not too
important.
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Key lesson is that CSR shows commitment Most frequently, executives feel CSR programs demonstrate a commitment to
serving the community.
Demonstrates commitment and helps serve the community
Builds loyalty and trust, creating a closer relationship with customers
Boosts perception of company, reaffirming positive image
CSR makes a positive difference
Has to align with company image
Support needed from senior management
Keeps us focused as a company
Enables is to identify new ideas/issues
Attracts new customers
Differentiates us from competitors
34%
15%
14%
13%
7%
5%
4%
4%
3%
3%
What is the most important lesson your organization has learned about implementing CSR or pro-social programs?
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“It helps to inform people everywhere of our beliefs and spreads help all across the country with people who feel the same way as we do. Together we have learned we are a powerful combination and we will bring about change.”
“Pro-social programs help separate the company from others in the same industry on a respected level among customers and audiences.”
“We have learned how much a little help can impact the communities that we work in. Additionally, that people appreciate when large corporations show their human side.”
“Being committed to our communities builds a bond with consumers and they are more likely to favor us if they see our employees giving back to the community. This is essential to achieving excellence.”
“To show how loyal we are as a business and to show that we have both good values and smart actions as our business shows potential growth.”
Corporate Executives respond…
Lessons learned from CSR effortsWhat is the most important lesson your organization has learned about implementing CSR or pro-social programs?
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Appendix: Respondent Profile
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Respondent ProfileJob Title
EVP/SVP/VP/Director of Communications 36%
EVP/SVP/VP/Manager of Community Relations 25%
CEO/President/Executive Director of Corporate Foundation 14%
EVP/SVP/VP/Director of Corporate Social Responsibility (CSR) 13%
EVP/SVP/VP/Director of Social Media 7%
Chief Financial Officer (CFO) 4%
Other 2%
Role in Organization’s Communications Efforts
Part of a senior team responsible for CSR efforts 38%
Influential by giving input on CSR efforts 32%
Directly manage or oversee all CSR efforts 30%
Main Focus/ResponsibilityCommunications overall 33%
Community relations 23%
Corporate social responsibility 19%
Corporate philanthropy 19%
Social Media 6%
Other 0%Primary Focus on Corporation’s CSR WorkEnvironmental sustainability 22%
Economic development 10%
Education 10%
Global development 10%
Children and family issues 9%
Health and nutrition 7%
Arts and culture 4%
Multiple issue-focused 26%
Other 1%
GenderMale 51%
Female 49%
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FOR MORE INFORMATION:
PAUL MASSEY, [email protected]
STEPHANIE BLUMA, [email protected]
COLIN MOFFETT, [email protected]
VICTORIA SNEED, [email protected]
JONATHAN BENTLEY, [email protected]
KRC Research700 13th Street NW
Washington, DC 20005