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Aligning CSR with Corporate Business Objectives Patty Riddlebarger Entergy Corporation. Who is Entergy?. Electric utility and power generation company Headquartered in New Orleans, LA 2.7 million customers in AR, LA, TX and MS Wholesale nuclear power generation in NY, MASS, VT and MI. - PowerPoint PPT Presentation
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Aligning CSR with Corporate Business Objectives
Patty Riddlebarger
Entergy Corporation
Who is Entergy?
Electric utility and power generation company
Headquartered in New Orleans, LA
2.7 million customers in AR, LA, TX and MSWholesale nuclear
power generation in NY, MASS, VT
and MI.
•20 – 30 % of our customers live at or below the poverty level•40 % of children in New Orleans live in poverty•We serve 3 of 10 of nation’s counties with highest child poverty rates
Who Are Our Customers?
•MS ranks last in household income•LA ranks 49th
•AR ranks 47th
•TX is 42th
Who Are Our Customers?
Corporate Social ResponsibilityOur Scope:
Corporate Giving Entergy Charitable Foundation Volunteerism
Low Income InitiativesCustomer Assistance FundLow Income Customer AdvocacyPublic Policy Advocacy
Our Goals
To serve the communities where Entergy operates
To advocate internally and externally on behalf of low income customers
Advance corporate and business unit objectives through development and implementation of low income and charitable giving strategies that support business strategies
Contributions In 2007, Entergy and the Entergy Charitable
Foundation funded almost 3,000 grant requests totaling more than $14.5 million in cash contributions
5%
26%
46%
19%
4%
Arts & Culture
CommunityImprovement/Enrichment
Education/Literacy
Health & Social Svcs
Other
Entergy Charitable Foundation
Founded in 2000 Focused on helping individuals and
families break the bonds of poverty Education, literacy, job training, housing,
asset building Awarded grants totaling more than $2
million in 2007
What should be so simple?
What is the most pressing need in our communities? If Entergy could do one thing to make
a difference in our communities what would it be?
Hunger
Poverty
Homelessness
Education
Substance Abuse
Cancer
Unemployment
healthcare
Youth Programs
Social Responsibility: Entergy’s Approach
Developed a strategic approach to corporate giving and the charitable foundation
Created “Becoming the Best,” an initiative to make Entergy a recognized environmental leader in the business community
Created a Low Income Initiative, centered around our “most important customers”
Step: OneCommitment from the Top
“The Most Important Customer”
Wayne LeonardCEO Entergy Corporation
Sept./October 2002
Entergy’s Role
• Since 1999 Entergy has committed $40 million in the fight against poverty
• Low Income Initiatives• Low Income Champs• Low Income Summits• Entergy Charitable Foundation• Public policy advocacy• Fundraising
It was not always this way
• Entergy indifferent– Low Income customers were seen as burden– Bad credit and collection and shut-off policies– Insensitive (if not harsh) rate design
methodologies– Sat in silence as issues were debated– Pointed to regulators or elected officials as
the reasons nothing was accomplished
Step: 2Employee Engagement
Overcoming obstacles and achieving buy-in
Why low income?
It’s the right thing to do It makes good business sense More than 20 percent of our customers
live in poverty They represent more than $631 million in
revenues annually
Low Income Customer Profile
• Loyal, hard working and responsible
• Pay their bills on time (particularly elderly)
• Rarely complain
• High satisfaction scores
Low Income Customer Profile
• Energy costs can consume up to 40 percent of their income
Poverty Costs Per Household = $20,000 annually
It can be a matter of life & death
• The Center for Disease Control says that from 1979 to 1999, excessive heat exposure caused 8,015 deaths in the United States
• More people die every year from heat-related illnesses than from cold
Employee Engagement
• Low income goals included in annual performance review for company presidents
• Low income champs for each state
• Volunteerism efforts – in 2007more than 3,000 homes weatherized; 5,000 weatherization kits and 25,000 CFLs distributed
Low Income Summits
Created in 1999 Forum for low income advocates to
discuss common problems, solutions Help us know how to best help low income
customers More than 1,000 advocates attend annual
summits
Step 3: Program Design
What are our Low Income Strategies?
• Increase the flow of assistance funds from all sources
• Move low income customers to economic self-sufficiency
• Provide customers with tools to help manage their bills
Increasing the flow of assistance funds from all sources
Lobbying for LIHEAP
Low Income Advocates March on the Hill
Washington Action LIHEAP Day 2006
Lobbying for LIHEAP yields big results
• 88,900 customers received assistance
• 18.5 million in revenues generated
$1,900,000.00
$2,000,000.00
$2,100,000.00
$2,200,000.00
$2,300,000.00
$2,400,000.00
$2,500,000.00
2004 2005 2006 2007
CAF Funds Raised 2003 - 2007
The Power to CARE Fund
Helping customers achieve economic self-sufficiency
Entergy Charitable Foundation
Founded in 2000 Focused on helping individuals and
families break the bonds of poverty Education, literacy, job training, housing,
asset building Award grants totaling more than $2 - 3
million annually
Entergy/IRS Partnership
• Energy discovered that many people in our area didn’t know about or understand EITC
• The purpose of Entergy's effort is simple: Make sure
low-income customers know:
– About the EITC program,
– Where to go for more information, and
– How they find out if they quality
• The goal is to get as many qualified people to apply for the program as possible
Outreach Implementation and Results
• Placed a message on Entergy’s Interactive Voice Recording (IVR)
• Added a link to the IRS Web site from entergy.com
• Low-income champions sent e-mail blasts to low-income advocates and faith-based contacts
• Provided posters and brochures at our customer service centers for low-income advocates and customers
• Contributed grants for media support
• Trained phone center operators to ask if callers qualified
• Distributed 2.3 millionbill inserts
• Provided free IRS “EITC Kits” to casemanagers, agenciesand volunteers
• Stories in “AdvocatePower” newsletter
Outreach Implementation and Results
Value of EITC efforts
• 2007 Refunds in states served by Entergy
$7 billion – this is a 17% increase over 2002, when Entergy first became involved in promoting EITC
• 60% of EITC recipients report using part of their refunds to pay utility bills
Mid South IDA Initiative
• Partnership with Foundation for Mid South
• $1.6 million investment
• IDA programs created in 66 communities served by Entergy
• More than 19,000 individuals directly impacted
Family IDA Savings Goals
1st HomePurchaseHigher Ed
Small Bus
Home Repair
37%
26%
20%
17%
ROI for Entergy
• Prepared workforce
• Increased disposable income
• Economic development
• Awards & recognition
• Corporate image
• Reduced bill delinquency
Mid South IDA Initiative Multiplier Effect
• Private Foundation Sources• Federal Sources• State Sources• For-Profit Sources• Ripple Effect
$1.6 million
$69 million
Early Childhood Education
• For every $1 invested in high quality early childhood education, society reaps $9 in benefits.
• Entergy funded a series of studies– The Economics of Education– Miles to go Arkansas– Miles to go Louisiana– Miles to go Mississippi
• Studies are being used as catalysts to unite the business community in support of early childhood education
Early Childhood Education
• Action: Entergy led charge in AR for an increase of $50 million in state funding pre-K for low income families.
• Result: AR has emerged as a new national leader in pre-K. Projected economic impact: $15 billion by 2035
Early Childhood Education
• Action: Entergy collaborated with the Southern Education Foundation, Success by Six and other organizations to push for increased funding for Pre-K
• Result: LA legislature approved universal Pre-K in 2008
Affordable Housing
Habitat for Humanity homes In LA, MS, NY and TX More than 300 employees involved;
10,000 hours Helped 22 families achieve the dream of
homeownership Awarded more than $600,000 Habitat
affiliates nationwide
Provide customers with tools to help them manage
their bills
Traditional Outreach Tools
• # Literature requests fulfilled
• # Homes weatherized
• # Weatherization kits distributed
• # CFLs distributed
• “Beat the Heat” fan and air conditioning unit giveaways
• Weatherization/energy efficiency workshops
LIHEAP: Getting the Word Out
Pilot launched to notify eligible
customers through
automated phone calls
LIHEAP: Getting the Word Out
Results:
• Revenues from LIHEAP in pilot area have tripled
• Uncollectibles are reduced
• Costs for ALL customers lowered
• Shareholder value is maximized
Credit Power
• Easy Start Package -- Removes barriers for low income customers who are establishing utility service for the first time
• Independence Package -- Removes barriers for low income first time homeowners/welfare to work
• Reconnect Package -- Helps low income customers recover from prior debts while maintaining dignity
Credit Power
• Safety Net Package – provides assistance for low income customers experiencing crisis that prevents them from making utility payment
• Senior Service Package -- ensures that low income seniors do not sacrifice quality of life
Photo courtesy John FordNational Wild Turkey Federation
Let’s talk turkey
Win-Win-Win Solutions• Entergy right of ways cleared at no
expense to ratepayers
• Increased service reliability
• Increased customer satisfaction
• Natural habitats restored
• Costs are reduced
• Shareholder value maximized
Our Environmental Commitment
Entergy pledges to lead our industry in environmental stewardship
Entergy is committed to promoting environmentally cleaner and more efficient generation, transmission, distribution and use of energy
Our Environmental Commitment
Voluntary commitment to contain CO2 emissions at 2000 levels through 2010
Pledged $25 million to fund CO2 reduction projects
Partner with the Environmental Defense Fund
Patrick Moore, co-founder of Greenpeace
Our Environmental Commitment
Nuclear power Wind power Fuel cell research Sustainable Forestry Plan Carbon Credits Public Policy Advocacy
Just Do It
Entergy Teams Up With Nike for Schools and the Environment
It ain’t easy being green!
ROI = SHOW ME THE MONEY
• Revenues generated $18.5 million• Customer bills paid/disconnects avoided 88,900• ECF/Corporate grants $14.5 million• Volunteer hours = 30,000+ valued at more than
$500,000• 3,232 homes weatherized• 25,000 CFLs distributed• 5,000 weatherization kits distributed
Increased Brand Equity
• 2008 CRO Magazine 100 Best Corporate Citizens
• Dow Jones Sustainability Index 2002 – 2007
• 2007 U.S. Chamber of Commerce Community Service Award
• 2007 Storebrand SRI Best in Class Social & Environmental Performance
Increased Brand Equity
• Fortune 500 Most Admired Companies
• Community Action Partnership Corporate Champion Award
• Diversity Best Practices Award
• PR Newswire Corporate Social Responsibility Award
• National Fuel Funds Network Award
9,000 Advocate Partners
License to Operate = Priceless
License to Operate = Priceless
Unanimous
Settlement
Agreements
Improved
Regulatory
Climate
Improved
Credit Ratings
Reduced
Costs
License to Operate =Priceless
•9,000 Advocate Partners
•Win/Win Unanimous settlements
•Improved regulatory climate
•Improved credit ratings
•Community Goodwill/Elected Official Support
“The lasting legacy of Entergy will not be
measured in dollars, but by the number of
lives that we have positively affected.”
J. Wayne Leonard