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People Get Sustainability, Business (and Marketers) Don’t: 20 Minutes with the CEO of Unilever

11 Friday Jul 2014

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Last month, Unilever CEO Paul Polman was in town – New York – to receive the Lifetime Achievement award from the Rainforest Alliance. As Rainforest Alliance President Tensie Whelan put it, “Paul has made several lifetimes of difference by leading Unilever to become a game changer.”

The company’s work with the Rainforest Alliance is well-known – by setting targets like sourcing 100 percent of its palm oil sustainably, Unilever has made it easier for other companies to follow suit and helped complex supply chains become comfortable with change and collaboration.

And, the company hasn’t stopped at palm oil.

Today, roughly 50 percent of the company’s tea originates on Rainforest Alliance Certified farms as it works toward sourcing 100 percent of its raw agricultural materials from sustainable origins (that figure currently stands at 48 percent).

Having recently interviewed Unilever’s Marketing Chief Keith Weed on the company’s refreshed goals and commitments, the opportunity to discuss sustainable development from the vantage point of the outspoken CEO was tempting. We caught up over a quick phone call:

The Unilever Sustainable Living Plan:

“When we launched it we said we don’t have all the answers. One of the reasons why we are working so wellUnilever CEO Paul Polman with Rainforest Alliance is because we share common goals. Take tea for example: Standards are driving up fast in an industry that’s not easy to standardize. [This is where the] scale of Rainforest Alliance is significant – and essential for the USLP to come alive.

“[Its] only been a year since the Rana Plaza fire happened. Those 1,050 women worked in conditions that were little more than modern-day slavery. We’re determined not to let that happen in our supply chain. So we’ve put some goals to match our resolve. We’re going to help more women gain access to training and land rights. The transformation can be substantial.”

Pushing forward in the absence of political will/action:

“In the absence of politicians, we need to move faster. Climate change is a great opportunity for business. Report from the White House is an encouraging sign. Needle is starting to move in the U.S. The tornadoes and hurricanes are starting to drive the message home for people.

“Besides, this is probably the only opportunity we’ll have. The Millennium Development Goals, for instance, are due to be completed next year – the urgency cannot be watered down.”

The most critical challenge for business:

“The biggest challenge is [that] we cannot scale our ambitious goals alone. It’s a major challenge to create the right partnerships and increasingly difficult to get the political sector to participate. How do you create size and scale in a vacuum?”

The changing role of marketers:

“I always say, don’t blame the consumers. There are many examples where consumers are leading business, especially the young ones. They’re changing our lives and systems.

“Consumers are speaking out everyday but we don’t want to see it. Then we say the consumer doesn’t want to change. If we can tap into the enormous movements, we can create change much faster. That’s the job of the modern-day marketers. Their job has changed. It doesn’t work any more to push consumption. We need a new model and get companies to adjust their marketing strategies as well as their job roles.”

People get it, business doesn’t:

“I spend a lot of time on how to develop leaders who can lead us through partnerships, with purpose, can think long-term and beyond 2020. On my way back from Abu Dhabi last month, I was reading an article that reported university students rebelling against the way economics [is being taught]. If teachers are teaching Milton Freidman’s theories, who is going to change the economy? For my kids, sustainability is the new normal. They don’t want to watch TV or buy the newest gas-guzzling car. Their generation is already thinking differently. Yet, marketers keep saying consumers don’t want it.

“Our understanding of consumers [and consumption] is too narrow. We need to get much closer to consumers. If we go to any of the emerging markets – 81 percent of the world’s population lives outside the U.S. and Europe – most of the growth is occurring in climate stretched areas today. They might not understand Rio+20 or climate change language but they know that weather patterns are changing, water is decreasing, etc.”

From mindless to mindful consumption:

“Marketers should switch from asking whether consumers are willing to pay for something to which consumer doesn’t want less poverty, more education, a healthier world with cleaner air and better nutrition.

“We just need to be astute about solutions. Look at the Edelman survey – consumers expect more and more from business, and if business understands this, it is a wonderful time. Children die from diseases which we can solve with hand washing – new market – marketers should be very excited by this. But that connection is not there.”

Three actions to change the world:

“We must get out of short termism because lots of solutions are long-term [climate change, access to education, water shortage, etc.] – and we can only solve them if we invest over longer periods and evaluate the social and economic capital. Then business people can optimize these. For example, 40 of the top 100 companies are already pricing carbon internally. They’ve committed to stay within these limits. Business is leading because they see the cost of action vs. inaction. We have now 40 countries that are pricing carbon including China. We have 20 other countries that are putting a tax on carbon. The system is starting to move.

“We need to give politicians Unilever Sustainable Livingconfidence that this [focus on sustainable development and long termism] will not kill jobs or stifle growth. The exact opposite is in fact true but we need to provide the proof points.

“We need to get companies to adopt integrated reporting quickly as well as become comfortable with transparency. It’s going to take much more than a nine-to-five job to bring all of this together. We need leaders and we’re short on them.”

If this was his last interview as the CEO of Unilever:

“We can use our scale to transform systems and change. We need to create a better place than the one we were born in. Ninety-nine percent of people are not in a position to make a difference. We can. We need to force change – it’s our duty to leave the place in a better place. I hope this drives Unilever and everyone else.”

Originally written for and published on CSRwire’s Commentary section Talkback on June 2, 2014.

Stakeholder vs. Shareholder Value: Connecting the Sustainability Dots With Philips, Drexel University & Profits4Purpose

09 Wednesday Jul 2014

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Is there a connection between employee engagement and shareholder value?

Several similar questions came up in a recent webinar I facilitated, held in partnership with Profits 4 Purpose with guests Philips and Drexel University. While the question doesn’t have a linear answer – as is often the case with sustainability – it did take us through quite a conversation on connecting engagement with value, how CSR strategies affect business performance, the whole conundrum of measurement as well as what the latest research suggests.

Daniel Korschun, Assistant Professor and Fellow at the Center for Corporate Reputation Management at Drexel University, led the conversation by sharing some of his research with our audience.

“We’re moving into a new phase …since the 1950s we have had a debate about whether more CSR is better than less. While I don’t think this debate has been completely settled, there is general agreement among most practitioners that the core issue today is how we do it, not the quantity. That means we need to concentrate on effectiveness, which is where I have focused my research,” he started.

Employee Engagement: All About Signals

Employees are paying attention to CSR, he said.

And they notice when managers or customers support the company’s CSR initiatives.  When they notice this support, they are more likely to develop CSR and business performance“feelings of membership with a company.” In its most powerful form, we may begin to hear things like “I am an IBMer or a UPSer.” This feeling of membership then translates into a whole host of measurable outcomes like job performance, intent to stay in the job, or intent to volunteer.

For example, Korschun said he finds that people who feel this sense of membership are 87 percent more likely than others to be among the top performers of their company. And these effects hold even after controlling for pay satisfaction, personality traits, tenure, and work experience. The big lesson then?

  • Make CSR an open secret! “The more people who are discussing your behavior, the better.”
  • Have upper management act as champions: “If people don’t feel that management is aligned with your CSR strategy, impact will be muted. Executives don’t need to dictate CSR from the ivory tower but employees must know definitively that their leaders are on the same page, and are committed to social responsibility.”
  • Encourage contagion across stakeholders: “Engage customers in the same CSR programs as employees? Programs that get customers and employees to join forces (especially on volunteering sites) can create a bond…and that sort of contagion can lead to both happy employees and happy customers.”

Philip Cares: Formalizing Responsibility

Melanie Michaud, Senior Manager for Internal Communications with Philips North America took the baton from Daniel to evidence his data and research with how the practice and implementation of employee engagement maps out across a corporation. Emphasizing that Philips USA did not have a process in place till 2010 to vet requests and manage engagement across the company. “It was sporadic and led by employees who cared about various causes,” she said.

After several acquisitions, the company realized they needed a more formal process to align all its community development work with its business and employee base. That led to Philips Cares, through which, the company focuses on environment, education and health.

With tremendous uptick in the number of volunteers [over 8,000 volunteers] and donations in the 15 months since the program launched, Michaud highlighted the following keys to the success of Philips Philips caresCares – crucial for those managing relatively new programs or on the verge of launching one:

  • Do your research
  • Have a clear vision
  • Engage leadership
  • Have a volunteer tracking mechanism
  • Align with nonprofit partners
  • Emphasize local champions
  • Have consistent program branding
  • Engage in storytelling
  • Give employees a voice
  • Walk the talk

Setting a Global Strategy With Local Impact

So how does Philips ensure its CSR strategy is global in scope while local enough to support its communities?

That’s something we’re continually challenged with. We’re always tying everything back to our vision and mission of improving lives through innovation. We’re also doing some research now about rolling out a program like Philip Cares globally. In some areas there is greater interest than others and we’re currently working out how that will all work out,” Michaud responded.

One of the questions that came up during the webinar was around the survey Philips uses to seek feedback and make changes to its program. Emphasizing that the survey was a work in progress, Michaud said questions revolved around identifying causes, target audiences, types of volunteering activities as well as a bunch of open-ended questions for more elaborate feedback.

Practice vs. Software: Connecting Volunteerism With Impact

For Jason Burns, CEO of Profits 4 Purpose, the task was to connect Korschun’s research and Michaud’s practical perspective to how companies can best measure and track CSR and employee engagement activities. “We’re focused on helping companies make employee engagement simple, innovative and relational,” he started.

What are the key components to capture their attention? Burns summarized his comments in three neat categories:

  • Inspiring vision with easy execution: “We see a lot of companies starting with the end goal in mind, asking employees to focus on tracking…that’s less than inspiring. As human beings, we desire to be part of something bigger than ourselves so its important we start with a vision.”
  • Measuring impact: “Excel kills impact…how can we launch a strategy and review it for impact in real time and in alignment with employee engagement, mission and partners? Can we solve a specific problem that fits within the mission of a business? Can we cast a ‘what if’ scenario for employees to be motivated, to make a difference and get involved in a real easy and seamless way?”
  • Sharing a compelling story: “You’ve executed the strategy, and achieved great impact but why is it important? The most powerful piece for an employee when they volunteer is being part of that impact firsthand. The next powerful piece for those who might not be on the ground is communication, the story. It goes beyond the numbers.”

While the P4P platform helps companies do all of the above in one centralized place, what stood out was the fact that it also leverages the data into meaningful stories, disclosure commitments and  p4p_webinar_5filings. As Burns explained, “We saw companies that had the vision but were having difficulty making the management seamless with vendors, contractors and excel sheets. Things were duct taped and often a nightmare and we wanted to open that up to make the process productive and inspiring for all involved.”

Connecting The Dots Between Engagement & Shareholder Value…

But Jason’s iteration of execution versus measurement and reporting brought us back to a core question we began the panel with: how are companies like Phillips connecting the dots between volunteerism, engagement, retention and business growth?

“In terms of definitive links all the way to shareholder value, we have research connecting the steps of a CSR program all the way through. There is, however, no one study out there that links the end point with any one of the steps along the way. My research connects job performance with CSR and others have linked that to shareholder value. So while the connections are there, there is no one study that we can point to,” offered Korschun.

For Philips, it’s still to be determined, said Michaud.

“It is still a bit fragmented but we have moved from a theory to a practical emphasis on measurement and tracking. And the research being conducted is definitely encouraging, albeit complex,” added Burns, highlighting a trend we’ve been seeing on CSRwire as well where researchers are now, finally, being able to grab data on voluntary disclosures and link the connections between measurement, the various threads of sustainability and the question of value.

…Regardless of the Economic Climate…

What does the research then say about the impact of CSR programs on shareholder perspective and behavior irrespective of the economic climate? [Audience question]

While Korschun said he wasn’t aware of any studies that have looked at the influence of economic climate on how CSR drives value, “we generally find that for customers, the effects are clearest when CSR and employee engagementmost other product features are at parity. This suggests that CSR might become a little less important for consumers during a recession, when price becomes more critical.”

He added: “However, for employees, the company is a big part of their identity. So as long as a person feels fairly secure in their job, CSR should still have a similar effect. Putting this together, I would conjecture that ROI might drop a bit overall during a recession, but the drop would be uneven across stakeholders.”

…And Company Performance

“The weight of the evidence in academic studies suggests that there is a small positive effect of overall CSR on overall company performance. In my view, each company will have programs that are more and less effective. Since employees can express their commitment to the company in many ways, it is very difficult to put an ROI figure on any single program. The best way to measure it is usually to choose a couple of outcomes that are critical to shareholder value and then examine the link between CSR program(s) and these outcomes,” Korschun offered.

Final word on the erstwhile ROI of social contributions and impact?

For Michaud, this is a toss-up.

“We have some of the basics in place about measurement but I think qualitative measures are as significant. They’re really the next level of ROI. Of course, media stories help as well but we’re this is a discussion that is really ongoing for us.”

“A lot of companies are surveying employees and getting positive results. Now we need to work on finding the stories of impact,” added Burns while Korschun recommended systemic thinking:

I ‘d like to recommend [to companies] that they start with the goals. If one of your business challenges is employee retention, start with that and work backwards. Ask yourselves what is the right program that can have social/environmental impact and create business value at the same time?

Download the slides.

Originally written for and published on CSRwire’s Commentary sectionTalkback on June 25, 2013.

Connecting the Dots Between Consumers, Consumption & Sustainability: The External Face of Unilever’s Sustainable Living Plan

09 Wednesday Jul 2014

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What role does a consumer-facing sustainability strategy play in an ambitious plan like the Unilever Sustainable Living Plan? That’s where I left off in my interview with Marketing Chief Keith Weed last week in our review of the ambitious Plan two years since launch.

From Desire to Habit: Unilever’s Five Levers for Change

He chose to respond by explaining a framework called the “Five Levers for Change” that his team developed to solve exactly this dilemma. An excerpt:

  1. Make it understood. Sometimes people don’t know about a behavior and why they should do it. This Lever raises awareness and encourages acceptance.
  2. Make it easy. People are likely to take action if it’s easy, but not if it requires extra effort.  This Lever establishes convenience and confidence.
  3. Make it desirable. The new behavior needs to fit with how people like to think of themselves, and how they like others to think of them.  This Lever is about self and society.
  4. Make it rewarding. New behaviors need to articulate the tangible benefits that people care about.  This Lever demonstrates the proof and payoff.
  5. Make it a habit.  Once consumers have changed, it is important to create a strategy to help hold the behavior in place over time. This Lever is about reinforcing and reminding.

“We need to continue to work with others to drive this change. If we achieve the Sustainable Living  Five_Levers_of_Change_unileverPlan, and it doesn’t change business at scale, ultimately that’s a fail. Unilever’s impact is huge but we’re still a drop in the ocean. We need a movement going for businesses to help address this,” he explained.

“We are already working with organizations like the World Toilet Organization, UNICEF and others on sanitation, for example, which is a very important issue for us. Two million children die every year from pneumonia or diarrhoea. In a world where there are more mobile phones than toilets or toothbrushes, our work ahead is sure cut out for us,” he added.

The fact is Unilever cannot do it alone. None of it.

And Weed and team have understood that since launching the Unilever Sustainable Living Plan. While scale is a huge factor, organizations require individual and mass power to change consumer behavior and habits. And that is where the Five Levers for Change along with creative partnerships like the kind Weed referred to can help.

Making Sustainability Personal…

“I was in Brazil recently speaking to a lady in Sao Paulo about the environment and the city’s pollution. For her this meant dust from the nearby construction and the tainted flavor of her water supply. These were her immediate challenges – not deforestation or climate change. People view the world through the prism of my world – family, friends, and community. Our world is a step bigger: the city you live in, the supermarket, the local dump, etc. And the final level, ‘the world’ is the rainforest, the ice melting in the Arctic,” Weed continued.

His point: We need to connect “my world” with “the world” for consumers. “Right now we’re at level one. When I asked the lady what she thought would solve the issues, she suggested stopping the
littering because it would stop the drains from getting clogged and therefore avoid local floods. Level One,” he said.

What companies need to do is create a movement and work with people to drive change. A natural question then: Is Unilever working with other companies on its initiatives or primarily with nonprofits?

… and a Business Driver

One example Weed offered was palm oil.

“We purchase a lot of palm oil but it still makes only for three percent of the world’s palm oil. We started our journey by promising to source 100 percent of our palm oil sustainably by 2020. It’s a clear signal to the entire palm oil supply chain that that is the future we are working toward.”

“But this goal would be impossible to reach across the value chain without working with other purchasers of palm oil. So we work with other businesses and NGOs on the Roundtable on Sustainable Palm Oil to do this collectively.”

In fact, Weed says Unilever managed to reach the 100 percent goal last year because of this collective effort. The next step: To make the supply chain of sustainable palm oil easier and connected by 2020. “Right now procuring sustainable palm oil means weaving through a very complex supply chain,” he added.

Another example: the work of the Consumer Goods Forum, which includes 650 members including manufacturers, competitors, retailers and NGOs, responsible for over $2.5 trillion in sales. And Weed is pretty positive about the goals and work of the Forum: “There are a lot of companies getting behind the need to address the negative impacts of deforestation, and momentum is starting to build,” he said.

While momentum is starting to build – with several companies announcing new initiatives and collaborations – the issue did bring us back full circle to where we started: how do we connect these overarching partnerships with the average consumer?

Subtle Messaging & Cause Marketing

And what role does cause marketing play in Unilever’s 2020 plan? Should we expect more nuanced advertising on the lines of the Dove campaign, for example? Or go full throttle like Patagonia’s Sourcing_unilever“Don’t  Buy This Jacket” campaign?

It’s going to be subtler, says Weed. “For example, for our Tomato soup in Germany or our Ketchup in India, we talk about sourcing tomatoes sustainably. With our Lipton tea, we talk about sourcing all our tea and tea bags sustainably by 2020,” Weed explained.

“Consumers comprehend these messages differently though. When we talk about sourcing our tea sustainably, customers see the Rainforest Alliance logo as a sign of better quality and taste, not necessarily sustainability. With our Hellman’s mayonnaise we discuss cage-free eggs. Consumers perceive that as an indication of better food: animals are better looked after therefore they’re getting better food. However, it’s still early days,” he added.

Work Culture: Participating in Change

Early days also for Unilever’s employees, who are witnessing – and participating – in a significant shift culturally at a company that has left behind decades of “doing things one way” to a more complex ideology. How has the company’s culture evolved since 2010?

According to Weed, the greater purpose espoused by the Sustainable Living Plan has been significant for employees – kind of like Performance with Purpose over at competitor PepsiCo. “The notion that you can work for a business to earn money, build a career and also do it in a better way is significant. We need new ways of doing business in the future – our generation has stolen from our children’s
generation financially and environmentally – so we ‘re going out and saying we want our employees to innovate and encourage new ways of doing business,” Weed said.

In fact, the marketing chief, who also leads internal and external communications for Unilever, says despite the many crises facing our world today engagement levels among employees have gone up consistently every year.

A sentiment that resonated in an email I received this week from Kam Erik Fierstine, a project delivery manager in Unilever Engineering Services at the company’s Henderson, Nev.-based ice cream plant. Here’s what he wrote when I asked him about the culture at his company:

“The Sustainable Living Plan is something that is quite apparent to those of us that live in a desert-like area where we are very conscious of water usage. It has shown our employees that Unilever has the same values that we were raised with. Our employees would not put up with a leaky faucet at home, and now they have the backing of management to proactively fix these simple issues at work.”

“We all agree that we want to leave a healthy planet for future generations and we can help do that by conserving our resources. Our employees see the management team walking the talk and that empowers them to escalate issues and voice new ideas. They will now do small things to make a larger impact like pick up things from the floor or switch off conveyors or equipment when not in use.”

The Henderson, Nev.-based ice cream plant was recently honored by the Innovation Center for U.S. Dairy for its sustainability practices.

“They see us taking on challenges in a positive way and that’s inspiring,” Weed wraps up.

Originally written for and published on CSRwire’s Commentary section Talkback on May 1, 2013.

Unilever’s Sustainable Living Plan: The Challenges of Being Too Ambitious

09 Wednesday Jul 2014

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Unilever’s Sustainable Living Plan was created and launched amid much fanfare in 2010. It was lauded for its ambitious goals, an exhaustive list of metrics and for its commitment to put sustainable and equitable growth at the heart of its business model.

This week, the consumer products company released its second progress report and it began with a stark statement from CEO Paul Polman:

The world continues to face big challenges. The lack of access of many to food, nutrition, basic hygiene and sanitation, clean drinking water or a decent job should be a concern to all of us. We firmly believe business has a big role to play in striving for more equitable and sustainable growth, but large-scale change will only come about if there is real collaboration between companies, governments and NGOs across all these areas.

Now, the report is impressive, exhaustive and filled with data. So to get beyond the flash, the  avalanche of Keith_Weed_Unilevernumbers and statistics, I reached out to Keith Weed, Chief Marketing & Communications Officer also responsible for the Sustainable Living Plan, to discuss not only the challenges of reaching some of the goals Unilever is striving for by 2020 but also the successes, the unforeseen road bumps and the transformation the company is undergoing culturally because of the Plan.

To get started, here are the three overarching goals Unilever began its Plan with:

  1. Help more than a billion people take action to improve their health and well-being;
  2. Source 100 percent of agricultural raw materials sustainably;
  3. Halve the environmental footprint of its products across the value chain.

Ambition: Sustainability in Perspective

“The report is indicative of what we’re trying to do. We’re trying to do things at scale. This is not a [standalone] CSR project in Africa but something that touches every single element across our value chain,” he began.

It takes a mindset shift to put Unilever’s plan in perspective. As Weed explained, “The idea that it isn’t just about the footprint of your facilities…we have to think all the way through the lifecycle of a  product from consumer to facilities to sourcing to the impact of key productions. The Unilever Sustainable Living Plan guides our direction.”Unilever__Sustainable_Living_Plan

Did his team realize the magnanimity of the goals they were setting? “We knew that we couldn’t achieve all of them but that if we set them like this, we would find solutions along the way by working with others,” he said, adding, “When you get interconnected, solutions and opportunities open up. That was the spirit we started with.”

And the results encapsulated on Unilever’s website and a 53-page PDF download, are in keeping with that spirit. “It’s not about mechanically ticking off the targets and goals. Our Sustainable Living Plan is a movement to get business to move toward socially and environmentally sustainable future,” he clarified.

The Unilever Sustainable Living Plan: Highlights

First of, he reminds me that from the outset, the Plan set out the sustainability goals to be achieved alongside the mission set out in 2009 to double the business. “We serve two billion people a day and another 2.5 billion are expected to be added to the world’s population by 2050. So our goal is to reduce our environmental footprint and increase our social impact while doubling our business.”

The good news: “We have started to drive sustainability into the core of our business and today, our sustainability efforts are helping to drive business growth.” One example is Unilever’s popular Lifebouy  soap, which was rebranded in 2010 with a social purpose alongside:

[We went] from selling soap to encouraging people to wash their hands – and wash them correctly. And our efforts have resulted in double-digit growth over the last three years – and reaching millions with our Handwashing campaign. It’s proving the coherence of our strategy of combining social impact with business growth instead of just a sales goal,” Weed explained.

USLP_ContextOther examples:

  • Laundry cleaner: Unilever increased its market share by 10 percentage points since 2010 to over 25 percent, with its concentrated liquids, which according to Weed carry a much lower carbon footprint in production and use.
  • Dry shampoos: A huge opportunity for the company, right now dry shampoos are mostly sold in the U.S. – where Unilever occupies a 75 percent market share. But as the company enters into more water-restricted countries, Weed predicted an accompanying increase in sales.  The environmental benefit? Compared to heated water, dry shampoo reduces CO2 by 90 percent through lower water usage and less heating of water for the shower. An added benefit for developing countries: water conservation.
  • Dove: The Self Esteem campaign continued to gain momentum with 62 percent of women who know of the campaign now recommending Dove to others. “The campaign started with the idea that we should think differently about how we portray beauty,” said Weed, “Today, it’s a global movement.”
  • Oral hygiene: Unilever’s oral hygiene campaign helped its Signal brand grow by 22 percent in 2012. “People brush their teeth in the morning and evening, which requires more toothpaste, ergo a virtuous circle,” contextualized Weed.

A Twist on Purposeful Cause Marketing?

So cause marketing spelt and implemented differently. By attaching value and impact with its core products, Unilever is addressing a question all consumer products companies continue to struggle with: how do you change consumer behavior to scale a company’s sustainability efforts?

For Unilever, this has meant active pairing of product and messaging with a focus on impact and growth, yet ultimate success is far away.

As Weed explained:

This is a coherent strategy that works – we’re increasing our social impact while growing our business. However, while we’re making good progress, we’re still facing challenges across the value chain, whether it’s with sourcing, food production or disposal.

And each carries with it a nuanced set of challenges, a complex set of solutions and invariably a cobweb of marketing, brand positioning and partnerships.

We have reduced our CO2 emissions, non-hazardous waste to landfill has been reduced in 50 percent of our factory sites, we’re sourcing over a third of our agricultural raw material from sustainable sources, up from 14 percent when we started in 2010…yet we’re miles away from our 2020 target of 100 percent,” he offered.

Scaling Behavior: Easier Ideated than Done

Of course, a key ingredient in Unilever’s Plan is the ability to scale. For the world’s largest tea consumer behaviorproducer, these achievements might mean small metrics today but when scaled are attribution to an entire value chain at work on technological improvements, environmental studies, and more. However, the opportunity is also a challenge:

“The sheer scale of our commitments is tremendous. For example, we want to be able to educate a billion people by 2020 on washing their hands correctly. That’s a lot of people – despite the progress we’ve already made since 2010 –119 million people reached since 2010, of whom 71 million were reached in 2012. Scale has been more challenging than we originally thought,” Weed explained.

Another challenge: encouraging people to adopt new behaviors.

Consumer Behavior: The Toughest Challenge Yet?

“When someone tells you something about hygiene, it’s easy to do it for a couple of days and then switch back to your old habits. Habits are hard to change and we’re seeing this come up in almost every initiative,” he said.

Using the example of laundry, he exemplified:

The biggest use of domestic water across households worldwide is for laundry.  Only a few hundred million in North America and Europe use machines. The other billions wash their clothes by hand and usually use four buckets of water to do so: wash in one, rinse in three. Our challenge is to reduce that rinsing from three buckets to one.  So we came up with a product that kills the foam – wash in one bucket and rinse in one bucket. Water used is instantly cut to half. And we expected the product to be a runaway success.

The team found that embedding that behavior change of using one bucket instead of three was  instrumentally Laundry_Unilevertough. Even in water scarce markets where people have to walk long distances for water. “Rinsing is hard work. I thought this would be a rapid victory but we found that it takes time to change habits and we ended up reaching only 29 million households, much lower than anticipated,” he recalled.

When your footprint encompasses billions of culturally diverse populations with very different social and environmental settings, scale becomes an ever-moving target.

Perhaps Weed puts it best again: “If you went to work in a Boeing 747, it wouldn’t make a difference to the planet. If half the planet started doing that, it would make a huge difference. The power of individuals is when you scale them together.”

Its hard work.

And Unilever’s 2012 Progress Report while celebrating the company’s achievements does not undercut the challenges ahead. “We’re breaking new ground every day. We’re showing results. But there are several pieces we are yet to crack,” said Weed.

Originally written for and published on CSRwire’s Commentary section Talkback on April 24, 2013.

Creating Access For All: CVS Caremark Sets Ambitious Goals

09 Wednesday Jul 2014

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The neighborhood pharmacy. The alternative to supermarkets. Chances are there is a CVS/pharmacy store within walking distance of your house. Or at least one within a couple of miles.

There was for me. As a new citizen, a kind CVS manager gave me my first American job, taught me how to differentiate between a nickel and a quarter – and the basics of customer service in a country where consumers rule a market spoiled with choice.

So how does a brand with deep community roots across a nation and significant impact support its business mission while keeping its social and environmental missions aligned and relevant? And how do you measure success beyond revenue dollars and flu shots?

I recently checked in with Eileen Howard Boone, SVP of Corporate Communications and Community Relations for CVS Caremark and VP of its foundation, the CVS Caremark Charitable Trust, for some insights into the pharmacy healthcare company’s CSR strategy as well as their unique perspective on community development.

License to Drive Results

“We have a license to drive social impact in ways that are independent of what’s going on in our company,” she began, explaining that the Foundation is the philanthropic arm of the company and reports to a board of trustees, giving Boone and her team some latitude to define their own priorities.

Interestingly, Boone is head of CVS’ Foundation but also heads the company’s communication efforts, highlighting a close alignment between impact and engagement within the centralized organization. “I sit across the company and work with our senior leadership on where we are going and how our
giving strategy fits with our future plans. Embedding the Foundation’s work and mission into the corporate strategy is critical to stay true to our business and values,” she explained.

Of course, as with most foundations, CVS’ Charitable Trust focuses primarily on the annual grant cycle. “Starting in 2012, we decided to focus on four categories: access to healthcare, coordinated care, early intervention and inclusion – a theme we use as a base criteria for all the grants we make,” she said.

“The primary focus through these categories is to measure how we along with our partners are driving impact in our markets. Are our nonprofit partners moving missions? Nine years ago, when I joined CVS, we weren’t measuring the impact of everything we were doing in our communities. It was scattered and not strategic. So we stepped back and asked: how are we living, operating and working in our communities?”

Need for Focus, Strategy

The introspection brought some expected results, namely, the need for focus and more research-based decisions. Eighteen months of research followed – with customers, employees, nonprofits, experts in pediatrics, etc. – on how to tighten the Foundation’s focus while having the most impact. “The idea was to find an issue of opportunity within healthcare that we could support and significantly impact five different ways: awareness, funding, in kind products, volunteerism and strategic counsel,” Boone emphasized.

“We wanted to have the opportunity to engage our employees. They live in our communities – and we were not leveraging their potential as volunteers, activists, decision makers and advisers,” she added.

In 2012, CVS employees donated an equivalent of $1 million in volunteering hours. But with 7,400 CVS Caremark: All kids canstores across diverse communities, volunteering and giving campaigns are effective only when localized. “Our All Kids Can program creates equal opportunity for all kids regardless of disability or situation and as we roll that out across our stores, we find that our employees really like to define “all kids can” in their own way. In one town, for example, it meant supporting the Special Olympics, in others it meant building a new playground,” Boone replied.

And that’s okay.

Volunteerism vs. Grants: Measuring Effectiveness

It’s difficult to have a cookie-cutter approach across 7,400 stores when local impact is the main driver. As the “local pharmacy building healthier communities,” CVS’ mandate is national but hyper-local in intensity. Do grants work better on a local level or volunteerism? With causes aplenty and communities diverse, how does the retailer juggle impact with dollars and employee time?’

According to Boone, monetary grants are definitely the first point of entry.

In 2012 alone, grants made through the All Kids Can program touched the lives of more than 5.8 million children and families. Despite all the benefits espoused about pro bono and volunteerism, the essence and impact of grant making is not lost on Boone who has been working in this sector for more than 20 years, including leading the Office Depot Foundation for six years.

“When we think of our large national partners, we need to understand that once the initial grant is made, there are other opportunities for engagement that we must leverage to extend the impact of that grant. But that initial grant is critical to move the needle and scale programs,” she said, adding, “For example, in a New Bedford school, we sponsored an incoming fifth grade class to connect with
our pharmacists around careers in healthcare, hygiene, health issues etc. In Rhode Island, we supported a free clinic, a multilevel partnership that started with grants, but now sees pharmacists often volunteering to support the clinic,” she explained.

For NGOs, grants from companies like CVS are critical.

And Boone understands the importance of looking at impact through a multidimensional prism:

“Awareness is a big thing that we can bring along with our dollars and other assets for nonprofits. They become better at fundraising and implementing programs after they’ve done some due diligence,” she said. “It gives them confidence, competence and the much-needed publicity support, “she added.

Measuring Impact: Healthcare For All

As a mother of six, however, Boone does feel strongly about CVS’ primary impact area: healthcare for all. And that becomes a tough metric to measure when you take into account the company’s diverse communities’ needs.

“We have learned over the years that we need to be asking the right things. Last year, we announced a partnership with the National Association of Community Health Centers to distribute $3 million over three years, across their centers for chronic disease management programs – and plan to monitor results. Measurement will include everything from number of people served to patient health outcomes.”

“We strive to measure our impact in a variety of ways including quantitative results like the number of patients served or the number of additional days a clinic is open, qualitative measures program outcomes and employee participation. We also place a heavy focus on storytelling and gathering stories from our partners to bring to life the successes of a program.”

Yet, that’s measurement of specific programs.

What is the company’s impact on the sector it sits centrally within, i.e., access to all, quality of life, awareness, hygiene, etc.? How does CVS measure its success as a healthcare retailer? As a conscious business? As a neighborhood pharmacy? As a collaborator with pharmaceuticals?

In Boone’s mind, her footprint – and her employer’s – is pretty clear: “We feel we are successful if our nonprofits are successful,” she said.

It’s that simple.

Originally written for and published on CSRwire’s Commentary section Talkback on April 3, 2013.

The Justice League’s Latest Mission: Famine & Hunger in Africa

03 Thursday Jul 2014

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When the Justice League comes together to fight evil, evil stands little chance.

In a world of economic uncertainty and social unrest, superheroes provide children with mentors, entrepreneurs with lessons in responsibility, and the rest of us with inspiration.

Now, DC Entertainment, the creators of renowned characters like Batman, Superman and Wonder Woman, has joined hands with Time Warner and Warner Brothers to leverage the collective power of these superheroes to tackle the troubles of the real world.

Their target: The hunger crisis in the Horn of Africa, an epidemic that has reached frightening proportions while being sparsely reported by the media.

We Can Be Heroes comes with immense leverage [thousands of employees, millions of canvases and platforms, a global fan base] and aspirational goals. In collaboration with three global nonprofits – Save the Children, Mercy Corps and International Rescue Committee – the conglomerates will match dollar for dollar up to a million dollars.

Their two-year goal: $2 million spread evenly among the three NGOs.

“13 million people go hungry in Africa. That is unimaginable. How are we letting this happen?” asked Cokie Roberts, prominent NPR journalist, author and board trustee for international nonprofit Save the Children, at a press junket Monday morning in New York City.

We_Can_Be_HeroesIntegrated Corporate Social Responsibility

Jeff Bewkes, CEO of Time Warner, who opened the event iterated that this cause marketing campaign is much more than straight up philanthropy for the company. “This is our corporate responsibility,” he said, adding, “We Can Be Heroes will capitalize on 90 years of storytelling to a global audience. We can help create far reaching awareness on a famine that can be fixed.”

Alluding to a consumer base already saturated with information, diffused by competitive branding exercises and weakening attention spans, Bewkes said, “Today consumer engagement is more important than ever before. Hunger isn’t geographically bound and our humanitarian care shouldn’t be either. Like the Justice League, together we can be heroes.”

everaging The Power of Herosim — and Interactive Media

This well thought out campaign – there is a merchandising component, a well-designed website and plans to integrate the message on all possible Warner and DC platforms globally – will capitalize on two leverage points: 1) The potent power of our collective strength in making a difference, and 2) The effectiveness of rich storytelling through a vast platform of interactive media.

I often say that half the battle of doing the right thing is telling your story effectively. In today’s connected world, stories matter. And this is where “having the opportunity to do something bigger than ourselves” can prove inspirational and monumental.

Diane Nelson, President of DC Entertainment, put it well: “This [campaign] is about awareness and using the intellectual property our companies own to make consumers aware of the crisis.” Nelson was picking up on something Roberts alluded to in our earlier conversation:

“Americans just need to know about this. We are a wonderful people and once we know that people are in dire need, we respond. Getting that information out there will really save millions of lives.”

There is no arguing that the need for help is indeed great.

As Barry Meyer, Chairman and CEO of Warner Bros., who sat down with CSRwire exclusively for an interview said, it is a perfect fit for the entertainment conglomerates.

“We thought it was a very good fit: Both the messaging and the corporate commitment. We are a big company and we have a lot of ways to communicate with people…to get the message out on what’s going on in Africa. I certainly know many people who are anxious to find ways and mechanisms to help with problems like this including many of our employees outside the United States, who are more aware of the hunger crisis in Africa than frankly, our US employees are.”

With domestic unemployment stoically high, the stock market continuing to rollercoaster and a distracting election year in the U.S., attracting domestic consumers to engage, learn and perhaps most importantly, donate, will not be easy. “That’s where collaborating with three international Justice_LeagueNGOs with feet on the ground is crucial. We expect them to keep us on track, tell us what is working and what isn’t,” said Jeff Robinov, President of Warner Bros. Pictures Group.

For Robinov and team, this campaign falls fair and square within their corporate social responsibility strategy by fluidly integrating philanthropy, engagement, business units with their core competencies – story telling – to drive results for a humanitarian crisis.

I asked Meyer what his hopes are with activating the company’s internal audience:

“We have a significant employee population outside the U.S. We want them to know that we are behind these issues and working on them. As for the employees inside the US, where awareness is low, the aim is to raise that awareness. Make them aware of a huge humanitarian crisis that’s happening halfway around the world.”

With consumer confidence and employee morale low in recent years, it is no surprise that companies are looking for innovative ways to keep their employees motivated and loyal. Referring to the recent Occupy Wall Street protests, Robinov told me:

“See what’s going on with the protests across the country, a lot of that for me personally is related to a lack of human faces for corporations today. We need to be respectful of our bottom-line and our reputation but we are really moved and we really want to help these people. As a company, Time Warner has always reached out to people in times of need. We have a moral obligation to do this.”

CSR: Deploying Core Competencies To Target a Social Issue

At the end of the day, for the companies — and their nonprofit partners — involved, We Can Be Heroes is emblematic of what integrated CSR can look like: Knowing your strengths as a business entity and leveraging them and your stakeholders to target a social issue.

As Meyer told me, “Social responsibility in a certain way speaks for itself. The word responsibility implies an obligation. Big companies have an obligation to society. They make a lot of money and have an obligation to deal with issues that are important to their employee bases…and we feel the obligation very, very deeply.”

He also emphasized that this marks the first time the global brands have come together to target an issue that is long standing and will therefore require long term commitment and out of the box thinking that goes beyond one stop solutions.

The success of WeCanBeHeroes.org will ultimately rely on a global consumer awakening and the belief that together we can all be heroes. Who doesn’t believe in the power of that?

Originally written for and published on CSRwire’s Commentary section Talkback on January 24, 2012.

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Translating Business Responsibility: An interview with Warner Bros. CEO & Chairman Barry Meyer: Now LIVE on CSRwire!

24 Tuesday Jan 2012

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Translating Business Responsibility: An interview with Warner Bros. CEO & Chairman Barry Meyer: Now LIVE on CSRwire!

When the Justice League comes together to fight evil, evil stands little chance. In a world of economic uncertainty and social unrest, superheroes provide children with mentors, entrepreneurs with lessons in responsibility, and the rest of us with inspiration. Now, DC Entertainment has joined hands with Time Warner and Warner Bros. to launch We Can Be Heroes.

Their target: The hunger crisis in the Horn of Africa.

Their spokescharacters: The Justice League

The Unruliness of Corporate Responsibility & Hyper Transparency: Quotable Quotes from Net Impact & BSR 2011

09 Wednesday Nov 2011

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I spent the last two weeks attending and speaking at the Net Impact and BSR conferences. As is typical at both conferences there is always too much to choose from and a lot to absorb. Since I cannot offer you a summary of each and every panel I attended/spoke at, here are some of the top line quotes heard at the conferences:

CSR: Always a Difference in Opinions

“CSR used to be about doing the right thing. Now it’s all about how it makes business sense.” – Campbell Soup’s VP for CSR Dave Stangis

“I hate the term CSR. It has slowed the movement and in many ways ensured that it is not built into systems, accounting, etc. I prefer [the term] sustainability although that’s not a big favorite either.” – Lynelle Cameron, Director of Sustainability, Autodesk

“We think CSR is good business.” – Suzanne Keel-Eckmann, National Director for Corporate Responsibility and Sustainability, Deloitte

A bag of sweet potato fries at Burgerville in Portland, Oregon: Social messaging done right?

“CSR should be led by charity and employee engagement, not CSR departments.” – Meg Garlinghouse, Head of Employment Branding and Community, LinkedIn

“Our CEO still believes that he is the company’s chief sustainability officer. But he realized that we need to be more organized and structured in our efforts because there is a lot to be done.” – Bea Perez, Chief Sustainability Officer, Coca-Cola in response to Reverse Cause Marketing: Coca Cola’s Pursuits in the Middle East

The Role of Business in Social Enterprise

“We must see social problems as business opportunities.” – Carol Cone, EVP, Edelman

“I worked on Wall Street, driven by greed. Regardless of what anyone says, greed is not good. You get so immersed in the system you forget what all you can do with your life.” – Charles Kane, Former CEO and Board Member, One Laptop Per Child

“A lot of charities are beginning to worry that a lot of the problems they have been trying to solve are not going away. Business still tends to be more sustainable.” – Steve Andrews, CEO, SolarAid

“In the last few years, business has lost tremendous trust in the marketplace. That we are GOOD now rests on us.” – Ofra Strauss, Chairperson and former CEO, The Strauss Group 

Personal Responsibility

“When you know what you’re doing is helping thousands, the payback is so much more fulfilling than any number of stock options and bonuses.” – Charles Kane, Former CEO and Board Member, One Laptop Per Child

“We need to change without giving up who we are. There are no riots against business that are profitable. We need to talk with them, not talk to them.” – Ofra Strauss, Chairperson and former CEO, The Strauss Group

“The more you peel the onion, the more you realize there is to be done. You just need to be constantly excited about peeling the onion.” – Brian Dunn, CEO, Best Buy

The Role of an MBA

“No profession exists to make the practitioners rich. There is always a higher purpose.” – Gregory Unruh, Director, Lincoln Center for Ethics, Thunderbird School of Global Management

“I don’t know if its [The MBA Oath] is going to work. But it is in the right direction and symbolizes a complete shift in mentality.” – Max Anderson, President and Cofounder, The MBA Oath

“I’m waiting to see the day when a new employee tells me they attended a class in college called Change Agent 101.” – Anonymous 

Transparency

“We’re from the Midwest. We don’t advertise our initiatives. But lately there has been a shift in this thinking and our communication style. Transparency is a journey and we are in the early stages of that.” – Kate Heiny, Group Manager of Sustainability, Target

“The priority should always be why not disclose instead of why disclose.” – Chris Jochnick, Director, Oxfam America

“When you are increasingly naked, fitness is not optional.” – Quoted by yours truly during a BSR panel on hyper-transparency. Citation: Macrowikinomics

Integrated Reporting

“For us, integrated reporting starts with the thinking within the company on how they will sustain their value in the future. Integrated reporting starts with integrated thinking.” – Jessica Fries, Director, International Integrated Reporting Committee

Net Impact and BSR 2011: 7 Days, 2 Conferences, 5 Trends in CSR & Sustainability

07 Monday Nov 2011

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There couldn’t have been a better way to end 2011 than the ambitious and cheerful Net Impact conference followed by Business for Social Responsibility‘s (BSR) annual conference.

Last year marked the inaugural year for my participation in both conferences. I came back encouraged, informed and enthused about the work ahead of us. [See: Can MBA Students be Taught Humility? and The Sustainability Jobs Debate] This year – perhaps because I have been deeply immersed in the CSR space – I feel a bit bereft, despite invigorating conversations and inspiring keynotes.

Don’t get me wrong.

While the Net Impact panels once again illustrated an incredibly knowledgeable student body set to graduate in coming years, BSR attendees and speakers showcased high aspirations and a deep understanding of the complexity of issues that face us today.

Throughout the seven days, I was continually questioned: Did you learn something new? What trends have you identified from all that you have heard? And each time I thought, what’s missing? Why am I not coming up with any articulate answers? Is my brain fried or is it something else?

On Friday, finally, sitting through a six-hour flight back to the east coast, it hit me. The CSR sector had grown up.

As a receiver of information, I was among familiarity, maturity. While last year the conferences motivated and inspired, this year the conversations focused on strategies, case studies, examples, successes and failures.

As Dave Stangis, VP of CSR for Campbell Soup articulated at a panel on Blue Sky Thinking during NI11, “CSR is no longer about identifying the business case. Today, we have evolved from questioning why to answering how.”

The Net Impact panels focused on nuts and bolts, dos and don’ts, a far cry from years past. The BSR roundtables featured honest evaluations, admittance of failure, collaborative statements of success and practical tips for newcomers.

Here then, are the top five trends I observed at two of the year’s most well-attended conferences on corporate social responsibility, innovation and sustainability:

1. We LOVE Shared Value:

Michael Porter’s “creating shared value” has appealed to the corporate sector like no other concept in recent years. Not corporate social responsibility or corporate sustainability, citizenship or conscious capitalism. There seems something so potent about shared value that CSR and sustainability executives cannot stop talking about it! A year ago, they would tell me “CSR is embedded in our DNA.” Now that statement has evolved to “Our culture has always been about creating shared value.”

Point is, CSV offers us nothing more radically new than the concept of CSR. It dictates the same concept of stakeholder engagement, mutual benefits, holistic bottom lines. But it has resonated by removing the morality that responsibility instantly dictates. For CSR and sustainability executives who have to make the business case to their C-suite, creating shared value provides them with their business case.

2. Familiarity breeds contempt

I found several attendees tell me how repetitive some of the sessions were, that they didn’t learn too much that was new or revolutionary. Perhaps it was because the same folks were attending the conferences every year? Earlier this year I wrote on Forbes’ CSR blog that instead of attending the conferences every year, we should send a colleague the following year so that we can actually widen the net of information and inspiration.

This continues to hold true: Chances are, every year there will be some common denominator at these conferences. With issues like energy conservation, water scarcity, poverty, community relations and employee engagement remaining the overarching topics, why not let one of the non-converted/uneducated learn next year?

Lesser chance of you suffering from conference fatigue.

3. Where are the CSOs?

In September, Ellen Weinreb, a prominent CSR and sustainability recruiter, released a report titled CSO Back Story*. Essentially, the report tracks every executive with the title of chief sustainability officer among the U.S.’s publicly traded companies. Her research points to 29 such individuals. While it omits the many hundreds of officers holding a wide breadth of titles ranging from CSR director to VP for sustainability and social responsibility, the report pinpointed several best practices and the continuing lack of standardization on how companies define, prioritize and implement corporate responsibility.

But I digress. [See what Corporate Secretary had to say about the report or download the complete report here.]*

Point is: Only two of the 29 CSOs Weinreb identified were in attendance at BSR: Coca-Cola’s Beatrice Perez and UPS’ Scott Wicker. Both were named CSO sometime this year. Where were the others? Wasn’t the conference meant for CSR and sustainability executives to come together for three days of knowledge sharing and benchmarking? What happened this year?

4. The Emotional Quotient

Both conferences featured wonderfully articulate keynote speakers, including KaBoom’s Darryl Hammond, Keen Mobility’ Vail Horton, Nike’s Hannah Jones, Al Gore, Strauss Group’s Ofra Strauss, Anheuser Busch’ Carlos Brito and Best Buy’s Brian Dunn.

While they discussed CSR and sustainability from their unique pedestal, the common denominator was the emotional connection they demonstrated with their cause, their brand, and their philosophy.

Hammond discussed how his childhood taught him the importance of play in a kid’s life. Strauss emphasized how her consumers and conflict-ridden Israel continues to teach her the right way of conducting business, of stakeholder engagement, of business being the real power in solving social problems.

Dunn on the other hand, focused on humility, responsible leadership and the importance of connecting with employees and consumers.

While last year’s speakers evinced more pragmatism, a businessman’s stoicism, this year the air held tension, an unspoken worry that things were going wrong too quickly, that we all needed to wake up. Quickly. The speakers were talking of soft – un-businesslike some would say – attributes: Social responsibility, connecting, respect, and the human condition, even destitution.

What had happened?

Let’s see: A recession that instead of leveling off, seems to be spreading across generations and countries for starters; a growing understanding that each of our actions – and inactions – impact many others in the world; a disastrous lack of trust for business; and a generational divide that seems to be holding the current decision makers accountable for their decades of excess.

Is business leadership finally waking up to their societal stakeholders?

5. Occupy Wall Street: Ignore or Engage?

Almost every keynote brought up this mass of undefined protestors that have continued to expand beyond American borders. Net Impact’s Executive Director Liz Maw opened the 2011 conference by asking attendees to “Occupy Wall Street but from within.”

Al Gore said, “Business must respond,” and that “it wasn’t a question any more.”

Ofra Strauss showed a three-minute video of the protestors equating them to civil unrest and a grassroots movement of discontent that business has to recognize and address.

At my BSR panel on hyper-transparency I brought up this commonality in one of my responses and posed a question for the audience: Will business ever think of these protestors as stakeholders? To my surprise, Jeff Mendelsohn from New Leaf Paper said that he and fellow attendees had, in fact, invited the Occupiers during a recent conference and that “The dialogue proved very productive for business and the protestors.”

Will anyone else follow?

*Full disclaimer: I worked with Weinreb on the report.

Revisiting the PR Take on CSR: “Corporate Responsibility is Not Public Relations”

30 Tuesday Aug 2011

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Last year, the Better Business Bureau hosted an event titled Good Business 2010, where the day-long agenda was to analyze the increasing confluence of public relations (PR) and corporate social responsibility (CSR). Here’s what I wrote then on Vault’s CSR blog:

A Belief System For Your Company

Edelman’s EVP for CSR-New York, Michael Holland while highlighting his firm’s approach, emphasized that corporate responsibility was emerging increasingly as an indelible part of brand management for companies, although North American companies, while initially slow to embrace it, were quickly getting on board.

Defining CR as “A belief system for a company” he broke its significance for companies into three segments: 1) the social and legal aspect; 2) its immersion into the operational model; and 3) how to leverage it for competitive share in the marketplace.

What is the ROI for corporate responsibility?

Citing a recent survey conducted by McKinsey, Holland said that the business case for corporate responsibility had never been clearer for companies. “Companies that paid attention to CSR in the last three years reported an increase in their share price of 43% against a 12% increase for those who didn’t.” At the same time, profits for the first segment of companies increased by 16% versus 7%. I’ve often noted that metrics and numbers speak louder than words. These then, need no further explanation. See more results from the McKinsey survey.

Noting that the pressure for accountability was no longer the voice of a few dedicated advocates and had shifted to mainstream demands from all stakeholders for a company, Holland stressed that the tipping point was already here: “CR cannot be ignored any longer. Shareholders, employees and clients are demanding it.”

What is corporate responsibility all about?

Holland, interestingly, chose to answer this by focusing on the key misconceptions about corporate responsibility. Funnily enough his counter-intuitive tactic worked, bringing up several questions from the audience. He put it like this:

CSR ≠ Green
CSR ≠ Strategic Philanthropy
CSR ≠ Public Relations

CSR isn’t PR, it’s About Your Business Strategy

I have discussed in the past the huge difference between conducting brand management and reputation-building and immersing CR as a culture of change into your company’s strategy. I asked Holland how he advises clients to walk that fine line.

“First of all, it needs to start from the top. Secondly, it needs to part of a company’s communication strategy. And finally you need to define what it means to track the progress of your corporate responsibility. The problem is that the marketplace believes that CSR is cause marketing and philanthropy. Our task is to overrule that and teach them that actually it’s about business strategy.”

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Now, with several communications firms announcing CSR practices, where are we headed with the confluence of PR, brand management and CSR? I turned to the latest entrant in the field, Ruder Finn. Take a read.