How to Become a Leader in Corporate Goodness
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The document discusses how companies can become leaders in corporate social responsibility and purpose-driven business. It finds that consumers increasingly expect companies to consider social impacts, not just profits. To build long-term trust, companies need to demonstrate societal performance through initiatives like cause branding, citizenship, and impacting local communities. The document provides examples of companies that developed successful social purpose strategies by starting with their mission, responding to current events, leveraging innovation, using their scale for good, or building on distinguishing characteristics. It concludes that for purpose initiatives to be effective, companies must lead from the top, customize programs locally, collaborate with partners, measure impacts, communicate through storytelling, engage stakeholders, and evolve their efforts over time.
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How to Become a Leader in Corporate Goodness
- 1. PURPOSE: How to Become a Leader in Corporate Goodness Carol L. Cone Global Practice Chair, Edelman Business + Social Purpose November 15, 2012
- 2. Paul Polman “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 Polman CEO, Unilever 2
- 3. Many Names…
- 4. Purpose 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 Corporat Citizenship Ideals Cause Marketing Goodness Triple Bottom CSR Cause Branding Corporate Citizensh Ideals Cause Marketing Goodness Triple Bottom CSR Cause Branding Corporate Citizenship Ideals Ca Marketing Goodness Triple Bottom CSR Cause Branding Corporate Citizenship Ideals Cause Marketin Goodness Triple Bottom CSR Cause Branding Corporate Citizenship Ideals Cause Marketing Goodnes Purpose is an organization’s reason for being Triple Bottom CSR Cause Branding Corporate Citizenship Ideals Cause Marketing Goodness Triple beyond profits. Bottom CSR Cause Branding Corporate Citizenship Ideals Cause Marketing Goodness Triple Bottom 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 Corporat Citizenship Ideals Cause Marketing Goodness Triple Bottom CSR Cause Branding Corporate Citizensh Ideals Cause Marketing Goodness Triple Bottom CSR Cause Branding Corporate Citizenship Ideals Ca Marketing Goodness Triple Bottom CSR Cause Branding Corporate Citizenship Ideals Cause Marketin 4
- 5. Why? Our Connected World Consumer Expectations Talent Environment Social Issues Globalization Radical Trust Transparency
- 6. An Evolving “Consumer” hungry concerned vocal empowered 6
- 7. Societal Performance Builds Future Trust 7
- 8. From Operational to Societal Societal Operational 16 Trust Building Attributes Listens to customer needs and feedback High quality products or services Treats employees well Places customers ahead of profits Takes actions to address issue or crisis SOCIETAL Has ethical business practices ATTRIBUTES Has transparent and open business MORE IMPORTANT Communicates frequently and honestly to Building Works to protect/ improve environment future trust Addresses society's needs Positively impacts the local community Innovator of new products Highly regarded, top leadership Current Trust driven by Delivers consistent financial returns operational Ranks on a global list attributes Partners with third parties 8
- 9. IBM CMO Survey 2012 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 9
- 10. Ideals Drive Growth 10
- 11. It’s not If, but How:
- 12. Fifth Global Consumer Study 2012 What consumers have to say… CANADA CANADA INDIA INDIA 500 500 500 500 BRAZIL CHINA CHINA BRAZIL 500 500 500 500 US JAPAN JAPAN US 500 500 500 500 UAE UAE UK UK 500 500 500 500 FRANCE GERMANY GERMANY FRANCE 500 500 500 500 ITALY ITALY NETHERLANDS NETHERLANDS 500 500 500 500 INDONESIA INDONESIA BELGIUM BELGIUM 500 500 500 500 MALAYSIA MALAYSIA SINGAPORE SINGAPORE 500 500 500 500 StrategyOne surveyed 8,000 consumers across 16 countries, aged 18+
- 13. Re:Purpose 86% of global consumers still believe that business needs to place at least equal weight on society’s interests as on business’ interests. 84% in the Netherlands 13
- 14. Business is Struggling to Meet Expectations Performance Gap in Addressing Societal Issues Business is performing well in addressing societal issues Business should place at least equal weight on society's interests and business' interests
- 15. Profit + Purpose: The New Normal It is OK for brands to support good causes and make money at the same time +33% 15
- 16. Social Purpose as Purchase Trigger When quality and price are the same, Social Purpose most important factor + 26% Growth from 2010 •Japan (100%) •China (79%) •Netherlands (43%) •Germany (36%) •India (43%) 17
- 17. Dutch Consumers Prefer Purpose 2010 35% + 21% RECOMMEND 2012 56% 2010 + 20% 34% PROMOTE 54% 2012 2010 40% SWITCH + 22% 2012 62% 2010 + 20% 39% TRUST 2012 59% 19
- 18. Dutch Purchase Frequency ‘At Least Monthly’ purchases of cause-suppor ting brands increased by 13% from 2010 - 2012 60% 68% 24% 21% 23% 47% 20
- 19. Purpose in the Netherlands 21
- 20. Purpose Ideas Build From… Broader Mission Current Events Innovative Products/Services Brand/Company Scale Distinguishing Characteristic 24
- 21. Broader Mission 25
- 22. Pampers 1 Pack = 1 Vaccine 26
- 23. IBM Smarter Planet 27
- 24. Current Events 28
- 25. Benetton Youth Unemployment 29
- 27. Levi’s Waterless
- 28. GE Ecomagination
- 29. Using Scale for Good 33
- 30. Microsoft Youthspark 300 million youth in 3 years
- 31. Walmart Hunger Relief “Walmart’s Big Plan to Feed the Food Desserts of the U.S.”
- 33. Dawn Detergent
- 35. Chipotle 39
- 36. Not IF, but HOW… LEAD Powerful programs are leader led Powerful programs are leader led CONSTRUCT CONSTRUCT Start with depth, not scale Start with depth, not scale CUSTOMIZE CUSTOMIZE Customize for local execution Customize for local execution COLLABORAT Work with NGOs, colleagues, competitors Work with NGOs, colleagues, competitors E E MEASURE Build performance measures up front Build performance measures up front NARRATE NARRATE Story, story, story Story, story, story ENGAGE Employees, partners, consumers Employees, partners, consumers EVOLVE EVOLVE Evolve programs to stay relevant Evolve programs to stay relevant 40
- 37. “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
- 38. P&G for Moms 42
- 39. Actions Taken in Relation to a Company That Actively Supports a Good Cause 41% 62% 2012 2010 39% 62% Global 75% 37% 55% Global 27% 42% 58% 17% 21% 45% 26% 30% 43% 43
Notes de l'éditeur
- Note: Unless otherwise indicated, all findings cited refer to Global data. For reference, we defined societal issues and good causes in the survey as the following: … different societal issues , which include social and environmental issues that impact individuals, local communities, the nation and/or the world, as well as different good causes , which include initiatives that seek to positively benefit others and improve lives.
- The Unilever Sustainable Living Plan Comprises 50 targets to be achieved by 2020, with the overall aim to: • help more than one billion people improve their health and wellbeing • halve the environmental impact of our products • source 100 per cent of our agricultural raw materials sustainably.
- Citizenship : A company's responsibility to the communities in which it operates and to the world as a whole Sustainability : A business approach that creates long-term shareholder value by embracing opportunities and managing risks deriving from economic, environmental and social developments Philanthropy : A corporation ’ s donation of funds, time or talent without any expectation of direct corporate gain (such as increases in revenue) Purpose : The strategic, emotional driving force behind an organization/brand ’ s core value proposition
- CMO ’s help the enterprise to define and activate the traits that make it unique. Also work with C Suite to meld the internal and external faces of the enterprise. The key to drive 21st century business success With purpose, brands and businesses have a more important place in peoples lives than the competition. A cohesive way to recruit, unite, motivate all the people a business touches from employees to customers Builds competitive advantage and drives efficiency A business ’ way of being: what do you stand for? The connection between the core beliefs and sustainability actions of the people inside a business with the fundamental human values of the people they serve Not philanthropy or altruism, but a strategy for profit and growth based on improving peoples lives A sustainable means to create real world impact- benefiting people, planet and profit – and ultimately, changing the world.
- To further illustrate this this shift from profits to profits + Purpose: the Trust Barometer found that, out of the 16 factors shaping trust, those factors that will build future trust are centered around a company's societal performance – or Purpose. Profit-driven operational attributes, like “innovators of new products” and “delivers consistent financial returns,” that are responsible for current trust levels actually fell to the bottom of the rankings. In their place: social factors like "listening to customer needs", "treating employees well," and "placing customers ahead of profits." These factors – societal issues – are considered more important to rebuilding future trust than those that deliver on operational imperatives. Consumers couldn't be sending a clearer message to companies: by putting your company's Purpose, or values, in action through a variety of engagements ranging from materiality and CSR to cause branding and NGO support, companies can build sustainable competitive advantage that will unite and motivate all the people you touch, from skeptical consumers to reticent employees.
- What is a brand? Collective intent of the people behind if—everyone your business touches: -Employees -Customers -Partners -Communities Brand defines who you are and what you stand for Best companies aim higher CMOS in the most successful enterprises are focusing on relationship not just transations The outperformers are committed to developing a clear corporate character What a business believes and how it subsequently behaves are as important as what it sells. CMO ’s today make it their job to help management and employees exemplify the companys values and purpose. CMO ’s today and more so tomorrow must understand and deliver value to emppowerered customers; create lasting relationships with those customers and measure marketing contributions to the business in relevant, quantifible terms. What an organization stands for is as important as what it sells. It has a “corporate character” — the differentiating attributes that make it a distinct enterprise. And that corporate character is not simply a product of its mission statement, logo or advertising. It is, rather, the sum of everything its management and employees say and do — the beliefs they hold, values they profess and ways they behave, visible for all to see.
- The goodpurpose® study is Edelman ’s annual global intellectual property research study that over the course of five years explores consumer attitudes around social purpose, including their commitment to specific societal issues and their expectations of brands and corporations. The survey was conducted in 16 countries with 8,000 adults (ages 18+), and is the only global, longitudinal study of its kind.
- The power of Purpose is driving consumer preference and loyalty …It ’s no longer the question of IF …It’s the HOW With 24/7 connectivity, hyper transparency and diminishing competitive barriers, companies and brands need a new narrative to break through the noise – something compelling that inspires stakeholders to engage, activate and advocate for an organization Q49. [TRACKING] Thinking about society ’s interests and business’ interests, how much weight should each interest have in business decisions? (Net: At least equal weight on society’s interests) 10-country global total (excludes Belgium, Indonesia, Malaysia, the Netherlands, Singapore and UAE) Note: This slide includes the 10-country global total for tracking purposes (86%). However, slide 24 includes the full 16-country global total (87%) as it only references this year ’s data.
- Performance Gap: 87% of global consumers believe business should place at least equal weight on society ’s interests as on business’ interests BUT… less than a third (28%) believe business is performing well in addressing societal issues. Note: The slide is sorted by country gap (from largest gap to smallest gap). This performance gap is likely to drive disillusionment, disengagement and outright distrust from consumers Q49. [TRACKING] Thinking about society ’s interests and business’ interests, how much weight should each interest have in business decisions? (Net: At least equal weight on society’s interests) 16-country global total and across 16 countries Note: This slide includes the full 16-country global total (87%) as it only references this year ’s data. However, a previous slide includes the 10-country global total for tracking purposes (86%). Q34. Thinking about the ways you believe business in general should be addressing societal issues, how would you rate business in general ’s performance in addressing societal issues? (Top 2 Box, Excellent/Good) 16-country global total and across 16 countries
- Inclination towards Purpose has grown considerably across many facets of traditional brand marketing and communication. There has also been dramatic acceptance of companies and brands making doing well while doing good . Q40-46. [TRACKING] Below are some things that people have said about supporting good causes. How much do you agree or disagree with each of the following statements? “IT IS OK FOR BRANDS TO SUPPORT GOOD CAUSES AND MAKE MONEY AT THE SAME TIME” (Top 2 Box, Agree) 10-country global total (excludes Belgium, Indonesia, Malaysia, the Netherlands, Singapore and UAE)
- When quality and price are equal, the most important factor influencing brand choice is Purpose. Across the globe, the prominence of Purpose as a purchase trigger has risen 26% since 2008. Purpose is outpacing design/innovation & brand loyalty…. infusing a brand with an authentic and aligned Purpose provides distinct competitive advantage. Q48. [TRACKING] Now, if you had to choose between two brands that were the same in quality and price, please rank the following remaining factors from 1 to 3 in the order that would affect your decision when selecting a brand where 1 is the most important factor and 3 is the least important. 10-country global total (excludes Belgium, Indonesia, Malaysia, the Netherlands, Singapore and UAE) (% WHO RANKED SOCIAL PURPOSE FIRST) Note: In the question, “social purpose” is defined as: Benefits others through charity or selfless acts
- Inclination towards Purpose has grown considerably across many facets of traditional brand marketing and communication. There has also been dramatic acceptance of companies and brands making doing well while doing good . Q40-46. [TRACKING] Below are some things that people have said about supporting good causes. How much do you agree or disagree with each of the following statements? “IT IS OK FOR BRANDS TO SUPPORT GOOD CAUSES AND MAKE MONEY AT THE SAME TIME” (Top 2 Box, Agree) 10-country global total (excludes Belgium, Indonesia, Malaysia, the Netherlands, Singapore and UAE)
- Not only are consumers making purchase decisions with Purpose top of mind, they are also recommending, promoting, and switching to purposeful brands. Q40-46. [TRACKING] Below are some things that people have said about supporting good causes. How much do you agree or disagree with each of the following statements? (Top 2 Box, Agree) 10-country global total (excludes Belgium, Indonesia, Malaysia, the Netherlands, Singapore and UAE) Note - % who agree with the following statements: I am more likely to recommend a brand that supports a good cause than one that doesn ’t I would help a brand to promote their products or services if there is a good cause behind them I would switch brands if a different brand of similar quality supported a good cause
- As social Purpose ’s role in purchasing decisions has increased, purchase frequency has also intensified: 47% of global consumers buy brands that support a good cause at least monthly, a 47% increase from 2010. Q47. [TRACKING] On average, how often do you buy a brand that supports a good cause? (At least monthly NET, Every 6-12 months NET) 10-country global total (excludes Belgium, Indonesia, Malaysia, the Netherlands, Singapore and UAE)
- From left to right (Top): 2 famous Dutch singers performing for War Child; Food banks can ’t handle the demand; Prime minister Rutte came to discuss 3 things with president Obama: Jobs, jobs and jobs. (Bottom): Actions like movember are becoming increasingly popular; many protests against the financial cuts within the cultural sector; Twibbon for Japan; minority government (The government relies on parliamentary support from the Freedom Party (PVV) of Geert Wilders (on the right)). The government fell in April 2012. New elections will be held in September.
- Q36. What should companies be doing to address societal issues? [SELECT ALL THAT APPLY] 16-country global total
- use Gilmartin quote here
- use quote from Bob MacDonald from P & G that we have used in the past
- Howard Schultz quote
- Unilever quote on previous slide – paul polman
- Note: Insights based on results and experience in practice.
- The Unilever Sustainable Living Plan Comprises 50 targets to be achieved by 2020, with the overall aim to: • help more than one billion people improve their health and wellbeing • halve the environmental impact of our products • source 100 per cent of our agricultural raw materials sustainably.
- Inclination towards Purpose has grown considerably across many facets of traditional brand marketing and communication. There has also been dramatic acceptance of companies and brands making doing well while doing good . Q40-46. [TRACKING] Below are some things that people have said about supporting good causes. How much do you agree or disagree with each of the following statements? “IT IS OK FOR BRANDS TO SUPPORT GOOD CAUSES AND MAKE MONEY AT THE SAME TIME” (Top 2 Box, Agree) 10-country global total (excludes Belgium, Indonesia, Malaysia, the Netherlands, Singapore and UAE)