Trends in communicating around corporate responsibility

1. Mike Lawrence
Is the Sustainability Message
Chief Reputation Officer
Sustainable?
June 11, 2010

2. Agenda
• The CSR Landscape
– Despite Wavering Economy Companies Not Backing Off
Economy,
– CR is Starting to Drive Core Changes That Lead to
Innovation and Business Value
– Companies Becoming Smarter About Using Data
– Stakeholder Engagement Increasing and Broadening
– Empowered Citizens are Driving CR via Social Media
• Key CR Lessons for Companies Today
• What’s Next?
Confidential and Proprietary 2

3. How Has the
CSR Landscape
Changed/Shifted?
Confidential and Proprietary 3

4. Despite Wavering Economy,
Companies Not Backing Off
p g

5. Consumer Expectations Remain High
Expectations of Companies to Make and Sell Environmentally
Responsible Products and Services During an Economic Downturn
Lower
15%
Same
S
50%
85%
Say expectations are
Higher the same or higher
35%
2009 Cone Consumer Environmental Survey
Confidential and Proprietary 5

6. Companies Report Steady Investment in CR
86% say investment is the same or higher
Confidential and Proprietary 6

7. Investors Focusing on Environment
Confidential and Proprietary 7

8. Reporting Continues to Grow
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9. Setting Bold Goals
“Energy efficiency and carbon
Energy
reduction are central issues in
the world today. We’ve been
working to make a difference in
these areas, both in our own
footprint and our supply chain
chain.
We know that we have an
opportunity to do more and
the capacity to do more.”
- Mike Duke
Walmart president & CEO
Confidential and Proprietary 9

10. Setting Bold Goals
Confidential and Proprietary 10

11. Achieving Bold Goals
2012 Deadline
62 of Original
2010 Commitments Achieved;
80 New Commitments
Established for 2015
39 Commitments Reached;
Plan A Becomes Cost
2009
Positive
Original “Plan A”
2007 Commitments Made:
Confidential and Proprietary
100 Over 5 Years 11

12. Companies Driving CR Down to Suppliers
Confidential and Proprietary 12

13. Companies Driving CR Down to Suppliers
Confidential and Proprietary 13

14. Companies Driving CR Down to Suppliers
“[IBM will require its 28,000 suppliers in more than
IBM]
90 countries t install management systems t gather
t i to i t ll t t to th
data on their energy use, greenhouse gas emissions and
waste and recycling.”
Confidential and Proprietary 14

15. CR is Starting to Drive Core
Changes That Lead to Innovation
and Business Value

16. Allsup:
Allsup: Service Innovation
• Provides help with
p
Social Security
Disability Approval
• Identified
de t ed
Additional Demand
for Financial
Services
• Created Allsup
Medicare Advisor
Program in
Response
Confidential and Proprietary 16

17. Unilever: Creating New Markets
Confidential and Proprietary 17

18. Issues Influence Product Messaging
Confidential and Proprietary 18

19. Companies Becoming Smarter
About Using Data
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20. Sustainability Pays: Operational Costs
Confidential and Proprietary 20

21. Putting Data to Use: Nestle Waters North America
Confidential and Proprietary 21

22. Putting Data to Use: Nestle Waters North America
Most in-depth study on
environmental impact of
drinking water & alternative
d i ki t lt ti
beverages
Findingsg
• Water is best beverage
option for the environment
• Bottled water is best
packaged beverage option
based on environmental
impact
• Nestle Waters’ Eco-Shape
bottled water has lightest
footprint among all packaged
beverages
Confidential and Proprietary 22

23. Stakeholder Engagement
Increasing and Broadening
g g

24. Importance of Stakeholder Engagement
Confidential and Proprietary 2010 Cone Shared Responsibility Study 24

25. Vodafone: Engagement and Dialogue
• Share results of focus
groups with experts
and key opinion leaders
• Commissions
independent research
on key issues
Confidential and Proprietary 25

26. Starbucks Data Dashboard: Interactive Reporting
Icons delineate key performance
indicators; rollover to get key
statistic/progress against g
/p g g goals
Overview of 2009 activities in
key CR pillars
Confidential and Proprietary 26

27. SAP: Interactive Reporting
Confidential and Proprietary 27

28. Sodexo:
Sodexo: Engaging All Stakeholders
Confidential and Proprietary 28

29. Empowered Citizens are
Driving CR via Social Media

30. American Consumers Want a Voice
44%
would buy or boycott a
company’s products
compan ’s p od cts to
help influence corporate
social/environmental
practices and initiatives
Confidential and Proprietary 2010 Cone Shared Responsibility Study 30

31. New Media is a Viable Way to Reach Them
Confidential and Proprietary 2009 Cone Consumer New Media Study 31

32. Activating Consumers Around an Issue
Confidential and Proprietary 32

33. Consumers Help Make CSR Decisions
Confidential and Proprietary 33

34. Pepsi Refresh Project
Confidential and Proprietary 34

35. My Starbucks Idea: Sourcing Ideas
Confidential and Proprietary 35

36. Starbucks: Beta Cup
Confidential and Proprietary 36

37. The Good Guide
Confidential and Proprietary 37

38. Socialyell.com
Confidential and Proprietary 38

39. Key CR
Lessons
for Companies Today
p y
Confidential and Proprietary 39

40. Lessons:
• Corporate Responsibility activity is growing despite a
negative economy
g y
• It is sustainable because “social responsibility” is
increasingly being approached as “social opportunity”
that creates tangible value as well as reputation value
• Robust stakeholder engagement is a must do and needs
to be built into the planning and execution of programs
• The public/end users are demanding to be “part of the
game” and will reward and punish accordingly
• Corporate communications about CR/sustainability
should evolve beyond “broadcasts” (one-way) and
beyond dialogue (two-way) to true engagement (co-
creation of ideas)
)
Confidential and Proprietary 40

41. What’s Next?
Confidential and Proprietary 41

42. Shared Responsibility
Shared Responsibility is a business
p y
strategy that addresses issues material
to a company’s business growth, while
p y g ,
meeting the expectations and needs of
stakeholders and society.
y
Confidential and Proprietary 42

43. BP –When CR is Marketed But Not Core to Business
“…we produced a
solution that
2010
2005
preserved wetlands.”
d l d ”
“Environment - T provide h t
“E i t To id heat,
power and mobility for the U.S.,
new pipelines have to be built. In
Louisiana, BP pioneered a new
standard for pipeline construction.
pp
Working with environmental
groups, community leaders, even
loyal oystermen, we produced a
solution that preserved wetlands.”
Confidential and Proprietary 43

44. BP’s CR Communications Solution??
Confidential and Proprietary 44

45. Mike Lawrence
Chief Reputation Officer & EVP
MLawrence@coneinc.com
MLawrence@coneinc com
617-939-8328
Twitter: @Mike_Lawrence
www.coneinc.com
www.coneinc.com/whatdoyoustandfor
www coneinc com/whatdoyoustandfor
Confidential and Proprietary 45