August 2012 Best Practice Network Webinar, presented by VolunteerMatch Session Description: On May 17, 2012 Carol Cone wowed attendees at the 2012 VolunteerMatch Client Summit in San Francisco, CA. We’ve invited “the mother of cause marketing” back for an encore presentation, so that you can share in this inspiring session! Through a presentation on the “Radically Engaged Business,” Carol Cone will share her thoughts and best practices on building a purpose-driven business and exploring the critical and evolving relationship between employee engagement and groundbreaking citizenship programs. Participants will learn the four key tenets of building a radically engaged business: • Creating a gold-standard citizenship/purpose program, • Operationalizing that program, • Building a unique employer brand, and • Using your citizenship/purpose program to drive talent development. Through best-in-class case studies, including Avon, PNC and IBM, among others, participants will learn how successful organizations are using purpose to energize, inspire and activate employees and drive business impact. About Our Guest Speaker: At Edelman, Carol Cone provides strategic counsel to clients on the development of cause and public engagement strategies, as well as corporate and brand citizenship. She has a deep commitment to innovative research with consumers, executives and employees; she works with the firm’s leadership to apply insights from Edelman’s annual goodpurpose™ Consumer Study, its Trust and Health Engagement Barometers, as well as create new insight reports and intellectual property. Carol is internationally recognized for her work in the cause branding, corporate citizenship and strategic philanthropy arenas. For over 25 years, she has embraced a steadfast commitment to building substantive and sustainable partnerships between companies and social issues.

1. THE RADICALLY ENGAGED BUSINESS:
A 2012 VolunteerMatch Client Summit Encore Presentation
Carol Cone
Global Chair
Edelman Business + Social Purpose
August 15, 2012

2. How To Ask Questions
• Type questions into the box on the
right side of the your screen
• Submit via Twitter to
@VM_Solutions using “#VMbpn”
• We will pose questions at the end of
the presentation
• A copy of the sides will be circulated
after the event

3. The Radically Engaged Business:
via the Power of Purpose
Volunteermatch
Carol Cone, Global Chair, Edelman Business + Social Purpose
August 15, 2012

4. MANY NAMES….

5. 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

6. Paul Polman: CEO Unilever
“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. “
6

7. The Power of Purpose:
Creates differentiation
Fuels product innovation, growth and sales
Builds and protects reputation
Engages and inspires employees and customers
7

8. 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

9. Poll #1
How important is your volunteerism to your
"corporate/organization character, and business
success?"
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
9

10. Purpose, now serving 7 Billion.
10

11. A World in Transition

12. An Evolving “Consumer”
hungry concerned vocal empowered
12

13. Punishment Goes Public
13

14. A Shifting Marketplace
The Reinvention of Brand The Adoption of Shared
The Arrival of the “B Corp”
Marketing Value
14

15. Purpose is Pervasive
15

16. Fifth Global Consumer Study 2012
What consumers have to say…
CANADA INDIA
500 500
BRAZIL CHINA
500 500
US JAPAN
500 500
UAE
UK 500
500
FRANCE GERMANY
500 500
ITALY
NETHERLANDS 500
500
INDONESIA
BELGIUM 500
500
MALAYSIA
SINGAPORE 500
500
StrategyOne surveyed 8,000 consumers across 16 countries, aged 18+

17. Societal Performance Builds Future Trust
17

18. 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
TO BUILDING
Communicates frequently and honestly FUTURE TRUST
Works to protect/ improve environment
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
18

19. Purpose
86% of global consumers Top brands and companies
more committed than ever.
still believe that business
needs to place at least
equal weight on society’s
interests as on business’ Purpose proves
its place as a Purpose
interests. source of new goes DIY
and renewed
revenue.
19

20. Consistent Commitment; Diverse Opportunity
Improving the quality of healthcare 89%
Protecting the environment 89%
Ensuring access to safe drinking water 86%
Equal opportunity to education 86%
Stopping relationship violence and abuse 84%
Reducing poverty 84%
Aiding in disaster relief 83%
Alleviating hunger and homelessness 83%
Supporting human and civil rights 83%
Encouraging tolerance for people who are different 82%
Fighting the spread of global disease and pandemics 80%
Helping to raise people's self-esteem 78%
Supporting animal rights 74%
Supporting the creative arts 67%
20

21. But, Differences Exist in Local Markets (US)
Alleviating hunger and homelessness 91%
Improving the quality of healthcare 91%
Supporting human and civil rights 90%
Stopping relationship violence and abuse 89%
Reducing poverty 89%
Ensuring access to safe drinking water 89%
Equal opportunity to education 88%
Protecting the environment 87%
Fighting the spread of global disease and pandemics 86%
Aiding in disaster relief 86%
Encouraging tolerance for people who are different 85%
Supporting animal rights 78%
Helping to raise people's self-esteem 77%
Supporting the creative arts 76%

22. The Me in We The Reengineering
of Brand Marketing
5 Years of
goodpurpose
The New
Purpose Bull Markets The “License to Lead”
22

23. 5 Years of Purpose
The Reengineering of Brand Marketing

24. Profit + Purpose: The New Normal
It is OK for brands to support good causes and make money at the same time
90%
+33%
80% 76%
70%
70% 68%
60% 57%
50%
40%
30%
20%
2008 2009 2010 2012
24

25. Social Purpose as Purchase Trigger
When quality and price are the same, Social Purpose most important factor
60%
+ 26% 53%
50%
In the US:
43%
42%
41% • Social Purpose has
40% remained strong at 47%
since 2009
30%
20%
2008 2009 2010 2012
25

26. US Consumers Prefer Purpose
2008 47%
63%
RECOMMEND 2009
+ 43%
2010 64%
2012 67%
2008 48%
PROMOTE 2009 61% + 42%
2010 66%
2012 68%
63%
SWITCH 2009
2010 62%
64%
2012
26

27. Global Purchase Frequency
‘At Least Monthly’ purchases of cause-
supporting brands increased by 47%
from 2010 - 2012
2010 2012
34% 19%
EVERY 6 TO 12 EVERY 6 TO 12
MONTHS MONTHS
32% 47%
AT LEAST
AT LEAST
MONTHLY
MONTHLY
27

28. The Reengineering of Brand Marketing
28

29. License to Lead
Building Future Performance on Societal Actions

30. 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
Business is performing well in addressing societal issues
94%
90% 89% 91% 90%
87% 87% 87% 87% 86% 87% 85%
84% 84% 84% 83%
79%
58%
49%
42% 42%
28% 30%
25% 26% 27%
21% 23% 23% 22%
20% 18%
13% 15%

31. The Role of the CEO
Globally, CEOs must think proactively about using their business to address issues
CREATE SOCIALLY RESPONSIBLE AND INNOVATIVE PRODUCTS
56%
MAKE A LONG-TERM COMMITMENT TO SOCIETAL ISSUES 55%
PUBLICALLY SUPPORTING SOCIETAL ISSUES 55%
MOTIVATE EMPLOYEES TO TAKE PART 52%
COMMUNICATE EFFORTS TO ADDRESS SOCIETAL ISSUES 51%
ISSUE REPORTS ON ENVIRONMENT/SOCIAL EFFORTS 41%
USE REVENUE TO PRODUCE MATERIALS THAT RAISE
AWARENESS FOR SOCIETAL ISSUES
36%
31

32. 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.”

33. Poll #2
How is your volunteerism communicated?
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
33

34. What Should Companies be Doing?
50%+ believe companies should donate a portion of profits or products/services to
address societal issues
DONATING A PORTION OF PROFITS
51%
DONATING PRODUCTS OR SERVICES
50%
CREATING NEW PRODUCTS OR SERVICES
49%
PROVIDING EDUCATIONAL INFORMATION
47%
WORKING WITH THE GOVERNMENT
45%
OFFERING PROGRAMS FOR EMPLOYEES
45%
PARTNERING WITH NGOS
43%
ENABLING EMPLOYEES TO VOLUNTEER
42%
ORGANIZING CONSUMER EVENTS
41%
COLLABORATING WITH OTHER COMPANIES
36%
SOCIAL NETWORK FOR CONSUMERS TO ADDRESS SOCIETAL ISSUES
28%
EMPLOYEE FUNDRAISING PROGRAMS
27%
CREATING SOFTWARE/MOBILE FUNDRAISING APPS
19%
CREATING SOFTWARE/MOBILE COMMUNICATION APPS
19%
34

35. The More You Know
It is critical for companies to make consumers aware of their efforts
92% 90% 88% 87% 87% 86% 84% 84%
80% 80%
76%
73% 73% 73% 72% 70% 68%
35

36. Poll #3
Does your CEO and his/her senior team actively
participate?
(Actively = more than one event a year and hands-on)
A. Yes
B. No
36

37. Starbucks – Shared Planet

38. Starbucks – Shared Planet
Shared Planet™ is
our commitment
to do business in
ways that are
good for people
and the planet.

39. Starbucks –
Employee Engagement 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

40. IBM –
Smarter Planet
“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

41. IBM – Corporate
Service Corps
• 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

42. "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

43. Turning Insights into Action

44. Not IF, but HOW…
LEAD Powerful programs are leader led
CONSTRUCT Start with depth, not scale
CUSTOMIZE Customize for local execution
COLLABORATE Work with NGOs, colleagues, competitors
MEASURE Build performance measures up front
NARRATE Story, story, story
ENGAGE Employees, partners, consumers
EVOLVE Evolve programs to stay relevant
44

45. Poll #4
What is your paid time off policy for volunteer
activity annually?
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)
45

46. PNC – Grow Up Great – 10 YR $100 MILLION

47. PNC - Before

48. PNC - After
Identity
Issue
Early Childhood Education
Partners
Elements
Advocacy Education Grants Volunteerism Awareness

49. PNC – Program Elements
Web Resources
Grants
Parent Toolkits
Print
Advertising
Volunteerism

50. 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

51. PNC – Grow Up Great – 20 YR $350 MILLION

52. Shared Purpose, Shared Destiny
IBM
Creating a Smarter Planet
Avon
Crusading for Breast Cancer & Domestic Violence
Western Union
Fostering Economic Development
Vale
Transforming Mineral Resources
The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your computer, and then open the file again. If the red x still appears, you may have to delete the image an
Starbucks
Building a Shared Planet
52

53. What’s Your Purpose?
carol.cone@edelman.com
twitter @carolcone
53

54. Stay Informed
Blog:
www.VolunteeringIsCSR.org
Twitter:
@VM_Solutions

55. 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