Post on 20-Aug-2015
THE RADICALLY ENGAGED BUSINESS: A 2012 VolunteerMatch Client Summit Encore Presentation
Carol Cone Global Chair
Edelman Business + Social Purpose
August 15, 2012
How To Ask Questions
• Type questions into the box on the right side of the your screen
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• We will pose questions at the end of the presentation
• A copy of the sides will be circulated after the event
The Radically Engaged Business: via the Power of Purpose Volunteermatch Carol Cone, Global Chair, Edelman Business + Social Purpose
August 15, 2012
MANY NAMES….
Howard Schultz
“There needs to be a balance between commerce and social responsibility. The companies that are authentic about it will make more money.”
-Howard Schultz, CEO, Starbucks
Paul Polman: CEO Unilever
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“I think 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. “
The Power of Purpose:
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Fuels product innovation, growth and sales
Engages and inspires employees and customers
Builds and protects reputation
Creates differentiation
Engagement Drives Business
Engaged organizations have a 3.9x higher earnings per share growth than organizations with lower engagement scores in the same industry. - Gallup
Committed employees put in 57% more effort and 87% are less likely to leave, than disengaged employees. - Corporate Executive Board
Poll #1 How important is your volunteerism to your "corporate/organization character, and business success?"
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A. Extremely B. Partially, and getting stronger C. It is one of many things that we do but not evolving
much D. Not at all
Purpose, now serving 7 Billion.
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A World in Transition
hungry concerned vocal empowered
An Evolving “Consumer”
12
Punishment Goes Public
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A Shifting Marketplace
The Arrival of the “B Corp” The Reinvention of Brand Marketing
The Adoption of Shared Value
14
Purpose is Pervasive
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Fifth Global Consumer Study 2012 What consumers have to say…
StrategyOne surveyed 8,000 consumers across 16 countries, aged 18+
UK 500
FRANCE 500
CANADA 500
BRAZIL 500
NETHERLANDS 500
BELGIUM 500
SINGAPORE 500
GERMANY 500
ITALY 500
INDIA 500
CHINA 500
JAPAN 500
UAE 500
US 500
INDONESIA 500
MALAYSIA 500
Societal Performance Builds Future Trust 17
From Operational to Societal
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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 TRUST DRIVEN BY
OPERATIONAL ATTRIBUTES
SOCIETAL ATTRIBUTES MORE IMPORTANT TO BUILDING FUTURE TRUST
Societal Operational
86% of global consumers still believe that business needs to place at least equal weight on society’s interests as on business’ interests.
Purpose
Top brands and companies more committed than ever. Purpose proves its place as a source of new and renewed revenue.
Purpose goes DIY
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67%
74%
78%
80%
82%
83%
83%
83%
84%
84%
86%
86%
89%
89%
Supporting the creative arts
Supporting animal rights
Helping to raise people's self-esteem
Fighting the spread of global disease and pandemics
Encouraging tolerance for people who are different
Supporting human and civil rights
Alleviating hunger and homelessness
Aiding in disaster relief
Reducing poverty
Stopping relationship violence and abuse
Equal opportunity to education
Ensuring access to safe drinking water
Protecting the environment
Improving the quality of healthcare
Consistent Commitment; Diverse Opportunity
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76%
77%
78%
85%
86%
86%
87%
88%
89%
89%
89%
90%
91%
91%
Supporting the creative arts
Helping to raise people's self-esteem
Supporting animal rights
Encouraging tolerance for people who are different
Aiding in disaster relief
Fighting the spread of global disease and pandemics
Protecting the environment
Equal opportunity to education
Ensuring access to safe drinking water
Reducing poverty
Stopping relationship violence and abuse
Supporting human and civil rights
Improving the quality of healthcare
Alleviating hunger and homelessness
But, Differences Exist in Local Markets (US)
The Me in We
The New Purpose Bull Markets
The Reengineering of Brand Marketing
The “License to Lead”
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5 Years of goodpurpose
The Reengineering of Brand Marketing 5 Years of Purpose
Profit + Purpose: The New Normal
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57%
68% 70%
76%
20%
30%
40%
50%
60%
70%
80%
90%
2008 2009 2010 2012
+33%
It is OK for brands to support good causes and make money at the same time
42% 43% 41%
53%
20%
30%
40%
50%
60%
2008 2009 2010 2012
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+ 26%
In the US: • Social Purpose has
remained strong at 47% since 2009
Social Purpose as Purchase Trigger When quality and price are the same, Social Purpose most important factor
2010
2009
2012
PROMOTE
SWITCH
US Consumers Prefer Purpose
2008
2009
2010
2012
48%
61%
66%
68%
63%
62%
64%
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2008
2009
2010
2012
RECOMMEND
47%
63%
64%
67%
+ 43%
+ 42%
Global Purchase Frequency
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‘At Least Monthly’ purchases of cause-supporting brands increased by 47% from 2010 - 2012
2012
EVERY 6 TO 12 MONTHS
19%
AT LEAST MONTHLY
47%
2010
AT LEAST MONTHLY
32%
EVERY 6 TO 12 MONTHS
34%
The Reengineering of Brand Marketing
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Building Future Performance on Societal Actions License to Lead
87% 90%
87%
94% 89% 87%
84%
91% 87% 86% 84% 84%
79%
90% 87% 85% 83%
28%
13% 15%
25% 21% 20% 18%
26% 23% 23% 22%
30% 27%
42% 42%
49% 58%
Business is performing well in addressing societal issues
Business is Struggling to Meet Expectations Performance Gap in Addressing Societal Issues
Business should place at least equal weight on society's interests and business' interests
The Role of the CEO
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Globally, CEOs must think proactively about using their business to address issues
USE REVENUE TO PRODUCE MATERIALS THAT RAISE AWARENESS FOR SOCIETAL ISSUES
ISSUE REPORTS ON ENVIRONMENT/SOCIAL EFFORTS
COMMUNICATE EFFORTS TO ADDRESS SOCIETAL ISSUES
MOTIVATE EMPLOYEES TO TAKE PART
PUBLICALLY SUPPORTING SOCIETAL ISSUES
MAKE A LONG-TERM COMMITMENT TO SOCIETAL ISSUES
CREATE SOCIALLY RESPONSIBLE AND INNOVATIVE PRODUCTS
36%
41%
51%
52%
55%
55%
56%
The New Imperative Leading brands and corporations of the future must move beyond operational imperatives and social add-on’s to establish their “license to lead.”
Poll #2 How is your volunteerism communicated?
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A. Limited and internal only B. Robustly communicated internally via CEO, events,
intranet C. Limited internally and externally D. Robustly integrated + communicated internally and
externally
51%
50%
49%
47%
45%
45%
43%
42%
41%
36%
28%
27%
19%
19%
DONATING A PORTION OF PROFITS
DONATING PRODUCTS OR SERVICES
CREATING NEW PRODUCTS OR SERVICES
PROVIDING EDUCATIONAL INFORMATION
WORKING WITH THE GOVERNMENT
OFFERING PROGRAMS FOR EMPLOYEES
PARTNERING WITH NGOS
ENABLING EMPLOYEES TO VOLUNTEER
ORGANIZING CONSUMER EVENTS
COLLABORATING WITH OTHER COMPANIES
SOCIAL NETWORK FOR CONSUMERS TO ADDRESS SOCIETAL ISSUES
EMPLOYEE FUNDRAISING PROGRAMS
CREATING SOFTWARE/MOBILE FUNDRAISING APPS
CREATING SOFTWARE/MOBILE COMMUNICATION APPS
What Should Companies be Doing?
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50%+ believe companies should donate a portion of profits or products/services to address societal issues
80%
92% 90% 88% 87% 87% 86% 84% 84% 80%
76% 73% 73% 73% 72% 70% 68%
The More You Know It is critical for companies to make consumers aware of their efforts
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Poll #3 Does your CEO and his/her senior team actively participate? (Actively = more than one event a year and hands-on)
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A. Yes B. No
Starbucks – Shared Planet
Starbucks – Shared Planet
Shared Planet™ is our commitment to do business in ways that are good for people and the planet.
Global Month of Service: 60,000 volunteers from 30 countries on 4 continents completed 1,400 community service projects
Shared Planet: One million hours of community service per year by 2015
191,000 employee and customer volunteer hours in 2010
Starbucks – Employee Engagement
“We are not doing this as an act of philanthropy or CSR… We are doing it because it’s integral to everything we mean by building a Smarter Planet. That’s where we see our future growth lying.”
Samuel J. Palmisano, former CEO
IBM – Smarter Planet
• Leadership development with high quality problem solving for communities in emerging markets
• Community-driven economic development projects working at the intersection of business, technology, and society
•10 – 15 individuals from different countries with a range of skills go to an emerging market for four week community-based assignments •Activity Kits
IBM – Corporate Service Corps
"The opportunity to bring employees together in service really hits on all the objectives we have for team building through their service projects to understand the 'Smarter Planet' business strategy all that deeper.“
-Diane Melley, IBM
Turning Insights into Action
Not IF, but HOW…
Customize for local execution
Work with NGOs, colleagues, competitors
Build performance measures up front
Story, story, story
Evolve programs to stay relevant
Employees, partners, consumers
Start with depth, not scale
Powerful programs are leader led LEAD
CONSTRUCT
CUSTOMIZE
COLLABORATE
MEASURE
NARRATE
EVOLVE
ENGAGE
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Poll #4 What is your paid time off policy for volunteer activity annually?
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A. Less than 1 day (or less than 8 hours) B. 1-2 days (8-16 hours) C. 3-4 days (24-32 hours) D. 5+ days (40+ hours)
PNC – Grow Up Great – 10 YR $100 MILLION
PNC - Before
PNC - After
Identity Issue Partners Elements
Early Childhood Education
Awareness Volunteerism Grants Advocacy Education
PNC – Program Elements
Parent Toolkits
Web Resources
Print Advertising
Volunteerism
Grants
PNC – Impact
• 1.5 million children served
• More than $49 million in grants
•25,000 PNC employee volunteers donated more than 277,000 hours of service
•More than 2 million Sesame learning kits distributed
PNC – Grow Up Great – 20 YR $350 MILLION
Shared Purpose, Shared Destiny
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IBM Creating a Smarter Planet
Avon Crusading for Breast Cancer & Domestic Violence
Western Union Fostering Economic Development
Vale Transforming Mineral Resources
Starbucks Building a Shared Planet
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Upcoming Session: September
What’s the Difference? Exploring the Convergence of Cause Marketing & CSR Thursday September 13, 2012 10-11 a.m. PT (1-2 p.m. ET) Guest Speakers: Dave Stangis VP, Public Affairs & Corporate Resp., & Foundation President Campbell Soup Company/Foundation Craig Bida Executive Vice President, Cause Branding Cone Communications Register: https://www1.gotomeeting.com/register/266717185