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PURPOSE: PURPOSE: How to Become a Leader How to Become a Leader in Corporate Goodness in Corporate Goodness Carol L. Cone Global Practice Chair, Edelman Business + Social Purpose November 15, 2012 November 15, 2012

Amsterdam speech 11.9 (Carol Cone); Het Communicatie Congres 2012

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Carol Cone wordt in de Amerikaanse vakpers afwisselend de ‘Godmother of social responsibility’ genoemd en ‘Leader of Corporate Goodness’. PR-Week betitelt haar als ‘the most powerful and visible figure in the world of Cause Branding’. Al meer dan een een kwart eeuw adviseert ze klanten over wat ze ‘Good Purpose’ noemt: duurzaamheid, mvo, csr en good citizenship. Sinds twee jaar verricht ze in opdracht van haar nieuwe werkgever Edelman grootschalig onderzoek - in zestien landen onder 8000 consumenten - naar het belang van sociale betrokkenheid van bedrijven en hun merken. Kortom als er iemand weet heeft van trends, ontwikkelingen en ons een blik kan bieden op de toekomst van communicatie en mvo is het Carol Cone.

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Page 1: Amsterdam speech 11.9 (Carol Cone); Het Communicatie Congres 2012

PURPOSE: PURPOSE: How to Become a How to Become a Leader in Corporate Leader in Corporate GoodnessGoodness

Carol L. ConeGlobal Practice Chair, Edelman Business + Social PurposeNovember 15, 2012November 15, 2012

Page 2: Amsterdam speech 11.9 (Carol Cone); Het Communicatie Congres 2012

Paul Polman

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“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 PolmanCEO, Unilever

Page 3: Amsterdam speech 11.9 (Carol Cone); Het Communicatie Congres 2012

Many Names…

Page 4: Amsterdam speech 11.9 (Carol Cone); Het Communicatie Congres 2012

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 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 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 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 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 Corporate Citizenship Ideals Cause Marketing Goodness Triple Bottom CSR Cause Branding Corporate Citizenship Ideals Cause Marketing

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Purpose

Purpose is an organization’s reason for being beyond profits.

Page 5: Amsterdam speech 11.9 (Carol Cone); Het Communicatie Congres 2012

Why? Our Connected World

Consumer Expectations Talent

Social Issues GlobalizationEnvironment

TrustRadical

Transparency

Page 6: Amsterdam speech 11.9 (Carol Cone); Het Communicatie Congres 2012

hungry concerned vocal empowered

An Evolving “Consumer”

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Page 7: Amsterdam speech 11.9 (Carol Cone); Het Communicatie Congres 2012

Societal Performance Builds Future Trust 7

Page 8: Amsterdam speech 11.9 (Carol Cone); Het Communicatie Congres 2012

From Operational to Societal

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Listens to customer needs and feedback

High quality products or services

Places customers ahead of profits

Takes actions to address issue or crisis

Treats employees well

Works to protect/ improve environment

Has ethical business practices

Has transparent and open business

Innovator of new products

Communicates frequently and honestly

Addresses society's needs

Positively impacts the local community

Ranks on a global list

Highly regarded, top leadership

Delivers consistent financial returns

Partners with third parties

16 Trust Building Attributes

Current Trustdriven by

operational attributes

SOCIETAL ATTRIBUTES MORE IMPORTANT to Building future trust

Societal Operationa

l

Page 9: Amsterdam speech 11.9 (Carol Cone); Het Communicatie Congres 2012

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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

IBM CMO Survey 2012

Page 10: Amsterdam speech 11.9 (Carol Cone); Het Communicatie Congres 2012

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Ideals Drive Growth

Page 11: Amsterdam speech 11.9 (Carol Cone); Het Communicatie Congres 2012

It’s not If, but How:

Page 12: Amsterdam speech 11.9 (Carol Cone); Het Communicatie Congres 2012

Fifth Global Consumer Study 2012What consumers have to say…

StrategyOne surveyed 8,000 consumers across 16 countries, aged 18+

UK500UK

500

FRANCE500

FRANCE500

CANADA500

CANADA500

BRAZIL500

BRAZIL500

NETHERLANDS500

NETHERLANDS500

BELGIUM500

BELGIUM500

SINGAPORE500

SINGAPORE500

GERMANY500GERMANY500

ITALY500ITALY500

INDIA500INDIA500

CHINA500CHINA500

JAPAN500JAPAN500

UAE500UAE500

US500US

500

INDONESIA500INDONESIA500

MALAYSIA500MALAYSIA500

Page 13: Amsterdam speech 11.9 (Carol Cone); Het Communicatie Congres 2012

86% of global consumers still believe that business needs to place at least equal weight on society’s interests as on business’ interests.

Re:Purpose

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84% in the Netherlands

Page 14: Amsterdam speech 11.9 (Carol Cone); Het Communicatie Congres 2012

Business is performing well in addressing societal issues

Business is Struggling to Meet ExpectationsPerformance Gap in Addressing Societal Issues

Business should place at least equal weight on society's interests and business' interests

Page 15: Amsterdam speech 11.9 (Carol Cone); Het Communicatie Congres 2012

Profit + Purpose: The New Normal

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+33%

It is OK for brands to support good causes and make money at the same time

Page 16: Amsterdam speech 11.9 (Carol Cone); Het Communicatie Congres 2012

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+ 26%

Growth from 2010•Japan (100%)•China (79%)•Netherlands (43%)•Germany (36%)•India (43%)

Social Purpose as Purchase TriggerWhen quality and price are the same, Social Purpose most important factor

Page 17: Amsterdam speech 11.9 (Carol Cone); Het Communicatie Congres 2012

2010

2012

PROMOTE

SWITCH

2010

2012

34%

54%+ 20%

40%

62%

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2010

2012RECOMMEND + 21%35%

56%

2010

2012TRUST + 20%39%

59%

+ 22%

Dutch Consumers Prefer Purpose

Page 18: Amsterdam speech 11.9 (Carol Cone); Het Communicatie Congres 2012

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‘At Least Monthly’ purchases of cause-supporting brands increased by 13% from 2010 - 2012

23%

24%

60% 68%

21%

47%

Dutch Purchase Frequency

Page 19: Amsterdam speech 11.9 (Carol Cone); Het Communicatie Congres 2012

Purpose in the Netherlands

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Page 20: Amsterdam speech 11.9 (Carol Cone); Het Communicatie Congres 2012

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Purpose Ideas Build From…

Broader Mission Current Events Innovative Products/Services Brand/Company Scale Distinguishing Characteristic

Page 21: Amsterdam speech 11.9 (Carol Cone); Het Communicatie Congres 2012

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Broader Mission

Page 22: Amsterdam speech 11.9 (Carol Cone); Het Communicatie Congres 2012

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Pampers 1 Pack = 1 Vaccine

Page 23: Amsterdam speech 11.9 (Carol Cone); Het Communicatie Congres 2012

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IBM Smarter Planet

Page 24: Amsterdam speech 11.9 (Carol Cone); Het Communicatie Congres 2012

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Current Events

Page 25: Amsterdam speech 11.9 (Carol Cone); Het Communicatie Congres 2012

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Benetton Youth Unemployment

Page 26: Amsterdam speech 11.9 (Carol Cone); Het Communicatie Congres 2012

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Innovative Products & Services

Page 27: Amsterdam speech 11.9 (Carol Cone); Het Communicatie Congres 2012

Levi’s Waterless

Page 28: Amsterdam speech 11.9 (Carol Cone); Het Communicatie Congres 2012

GE Ecomagination

Page 29: Amsterdam speech 11.9 (Carol Cone); Het Communicatie Congres 2012

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Using Scale for Good

Page 30: Amsterdam speech 11.9 (Carol Cone); Het Communicatie Congres 2012

Microsoft Youthspark

300 million youth in 3

years

Page 31: Amsterdam speech 11.9 (Carol Cone); Het Communicatie Congres 2012

Walmart Hunger Relief“Walmart’s Big Plan to Feed the Food Desserts of the U.S.”

Page 32: Amsterdam speech 11.9 (Carol Cone); Het Communicatie Congres 2012

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Distinguishing Characteristic

Page 33: Amsterdam speech 11.9 (Carol Cone); Het Communicatie Congres 2012

Dawn Detergent

Page 34: Amsterdam speech 11.9 (Carol Cone); Het Communicatie Congres 2012

Chipotle Cultivate

Page 35: Amsterdam speech 11.9 (Carol Cone); Het Communicatie Congres 2012

Chipotle

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Page 36: Amsterdam speech 11.9 (Carol Cone); Het Communicatie Congres 2012

Not IF, but HOW…

Customize for local executionCustomize for local execution

Work with NGOs, colleagues, competitorsWork with NGOs, colleagues, competitors

Build performance measures up frontBuild performance measures up front

Story, story, storyStory, story, story

Evolve programs to stay relevantEvolve programs to stay relevant

Employees, partners, consumersEmployees, partners, consumers

Start with depth, not scaleStart with depth, not scale

Powerful programs are leader ledPowerful programs are leader ledLEADLEADLEADLEAD

CONSTRUCTCONSTRUCTCONSTRUCTCONSTRUCT

CUSTOMIZECUSTOMIZECUSTOMIZECUSTOMIZE

COLLABORACOLLABORATETE

COLLABORACOLLABORATETE

MEASUREMEASURE

NARRATENARRATENARRATENARRATE

EVOLVEEVOLVEEVOLVEEVOLVE

ENGAGEENGAGE

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Page 37: Amsterdam speech 11.9 (Carol Cone); Het Communicatie Congres 2012

“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

Page 38: Amsterdam speech 11.9 (Carol Cone); Het Communicatie Congres 2012

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P&G for Moms

Page 39: Amsterdam speech 11.9 (Carol Cone); Het Communicatie Congres 2012

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Actions Taken in Relation to a CompanyThat Actively Supports a Good Cause

2012

2010

Global

Global

62%41%

75%62%

39%

55%37%

58%42%

27%

45%21%

17%

43%30%

26%

Page 40: Amsterdam speech 11.9 (Carol Cone); Het Communicatie Congres 2012

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What’s Your Purpose?

[email protected]@carolcone