Holding-Pilling SB Boot Camp

8/14/2019 Holding-Pilling SB Boot Camp

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Page 2

Organizational Models forIntegrating CSR With Brands

Carol Holding, Holding Associates

Dr. Lucille Pilling, Professor ofCSR, New York University

Page 2





Page 4

WHY IT’S IMPORTANT…WHY ITS SO TOUGH TO DO

Introduction to Brand/CSR Integration



Page 5

“Those companies

that have been moresuccessful (with CSR)are those that have

been able to link itwith brand building…

— Kara Hartnett Hurst, Managing

Director, BSR



Page 6

Management

recognizes the

importance of

CSR/Brand

integration.



Page 7



Page 8

• …I need more data”

• …here are 15 reports that might have the answer.”

• …I don’t have the time.”

OR

• Attack

• Confusion (even after explaining multiple times)

• Passivity/silence

• Intellectualizing

• Moralizing (They should…)

• Excessive concern about methodology• Flight into health (The cold weather indicates that

global warming is not so bad…)

“This is really important, but…”



Page 9Change Drivers

• Consumers

• Employees

• Investors

• BusinessPartners

• NGOs

• Community &Government

90% of U.S. consumers would switch to a differentcompany to punish bad corporate behavior1

89% of those familiar with their companies’ causeprograms feel a strong sense of loyalty to theiremployers..2

Socially responsible investment funds now attractabout one dollar out of every nine invested

Half of businesses are being forced to adopt ethicallabor or procurement standards by their partners 4

Company revenues and assets impacted byexamination and action by organized interest groups

Company positioning, profitability and assetsimpacted by social perceptions and resultingregulation

1Sharing The Wealth, CECP 2008),” K. Fraser, 2007; 2 2007Cone Cause Evolution Survey

;

3 Interfaith Center for Corporate Responsibility www.iccr.org/ethvest.php , IBM CSR Study 2008





Page 11Six Models for CSR/Brand

Integration• Three Non-adaptable Models

• Mission-Driven,• Product-Driven Consumer Companies

• Super-Regulated Industries

• Three Adaptable Models

• Individual Champion

• Communications Team• Organic Partnerships



Page 12Three Non-Adaptable Models

• Mission-driven – Green Mountain Coffee Roasters

• Product-Driven ConsumerCompanies

– PepsiCo • Super-regulated Industries

– (Pharmaceuticals)



Page 13Three Adaptable Models

• Individual Champion• Symantec

• Communications Team• Henry Schein, Inc., Adobe, Bankrate

• Organic Partnerships• HSBC, Chevron, Hess, Cherokee



Page 14Adaptable Model Characteristics

– CSR is a long-standing focus

– CEO and the board support the CSR efforts

– Social versus environment or governance arethe most branded CSR efforts

– Both internal and external communication

focus on CSR efforts – At first, the CSR report is not the primary task

of the integrator but happens shortly after

– Brand/CSR integration efforts are measured in existing internal and external brand surveys



Page 15Individual Champion Model at

Symantec

Individual Champion Model at

Symantec



Page 16Communications Team Model at

Henry Schein

Communications Team Model at

Henry Schein



Page 17Organic Partnerships Model at

HSBC

Organic Partnerships Model at

HSBC

T i l O i ti l E l ti



Page 18Typical Organizational Evolution

of the CSR/Brand Relationship• The Individual Champion is the model common to early

stage brand/CSR integration• Within 10 years companies evolved to Communications

Team Model.

• The Organic Partnerships Model works well in the old-line companies.

• The full integration of Brand and CSR to an embedded

business strategy evolves over time.



Page 19

HOW TO MAKEIMPLEMENTATION WORK INYOUR ORGANIZATION

Process tools for integrating Brand with CSR

Page 19

Fi t St



Page 20First Steps

• Audit current departmental CSR programsand publicize current efforts

• Analyze competitors

• Survey stakeholders’ expectations

• Select compliance metrics, ie Global Reporting

Initiative (GRI), UN Global Compact, Ceres

• ID key internal stakeholders

• Engage senior management• Establish working committees

• Legitimize > support > institutionalize

L O Y A l



Page 21Lean On Your Angels

• Internal enthusiasm spreads to externalaudiences organically as well as throughsystematic communications.

• Brand involvement is great motivation forother parts of the company to engage in

cross-functional partnerships, yielding morestories for communications.

The Roadmap



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Stage 0Compliant

Stage 1Engaged

Stage 2Innovative

Stage 3Integrated

Stage 4Transforming

CitizenshipConcept

Jobs, profits,and taxes

Philanthropy,environmentalprotection

Responsible tostakeholders

Sustainability ortriple bottomline

Changethe game

StrategicIntent

Legalcompliance

Reputation Business case Valueproposition

Market creationor social change

Leadership Lip service,out of touch

Supporter, in theloop

Steward, on topof it

Champion, infront of it

Visionary, aheadof the pack

Structure Marginal, staff

driven

Functional

ownership

Cross-functional

coordination

Organizational

alignment

Mainstream,

business drivenIssuesManagement

Defensive Reactive, policies Responsive,programs

Proactive,systems

Defining

StakeholderRelationships

Unilateral Interactive Mutual influence Partnership Multi-organizationalliances

Transparency Flank protection Public relations Public reporting Assurance Full exposure

Boston College Center for Corporate Citizenship

The Roadmap

Tactics for



Page 23Tactics for

Internal Communications1. Deliver CSR focused brand training at departmentmeetings

2. Build a resource of CSR stories3. Celebrate CSR successes - push information via

intranet, email, newsletters, live events, blogs,

webcasts4. Keep managers informed and involved

5. Use CEO announcements and awards

6. Involve/promote internal networks

7. Track and report measurements of brand, CSR, SRIetc and share results with departments

External Communications



Page 24External Communications

• Publicize improvements in compliance metrics – Identify relevant metrics by industry, region, social,

environment, governance focus

• Develop PR strategy around key focus areas thatmobilize public opinion

• Combine news event with applicable CSR

• Apply for awards or ‘best-of’ lists• Coordinate partnership opportunities

• Develop best practice sharing with industry peers and

leaders• Use every opportunity to communicate – signage,

packaging

P 25Sample Metrics



Page 25Sample Metrics

• Brand Value – brand valuation companyOverall impact of effort on brand

• Reputation study/corporate citizenship

• SRI Ratings

Impact on independent CSR ratings, ie,RiskMetrics (KLD, Innovest), Bloomberg,Thomson Reuters

• Dow Jones Sustainability Index, othermeasures of CSR

• Employee survey

Page 26Desired Outcomes



Page 26Desired Outcomes

By integrating brand with CSR

• Employees becomeevangelists.

• Talent is better retained.

• Executives and boardbecome vested.

• Generate increased interestfrom consumers, customers,investors.

Page 27The CSR/Brand Value Curve



Page 27

12/11/09

The CSR/Brand Value Curve

Values-based

SelfRegulation

Incorporatesthe company'svalue systemand/or code of

conduct toguidebusinessbehavior

GrowthPlatform

Access to nemarkets, newpartnerships o

product/servicinnovationsthat generaterevenue

Legal andCompliance

Adherence to

law in thecountries ofproduction,operation and

distribution

Efficiency

Measurablecost savingsthroughefficient or win-win scenarios

StrategicPhilanthropy

Alignment ofcharitable

activities withsocial issuesthat supportbusiness

objectives

A shift from cost to returns**IBM Global Business Services

Page 28How Mature is Your CSR Program?



Page 28How Mature is Your CSR Program?

Level of Sustainability Maturity

N u m b e r o f C o m p a n i e s

Stage 4

Competitive

Advantagethrough

Sustainable

Business

Practices

Top 1% ofCompanies

Stage 3

Comprehensive

SustainabilityManagement

Stage 2

Beyond

Compliance

Stage 1

Understanding

Top 1-5% ofCompaniesMiddle 5-20%of Companies

Bottom 20-100%of Companies

InnovatorFollower Mature Leader

Page 29

What We Hope You Take Away



gWhat We Hope You Take Away

Organizational models that successfullyintegrate brand and CSR..

How to select a model that is best suitedfor your organization.

How to time the stages of brand CSR inintegration as it evolves to an integral partof business strategy.

A step by step process to integrate brandand CSR.

Page 30Speakers Contact Information



Speakers Contact Information

Dr. Lucille Pilling

New York [email protected]

Carol Holding, President, Holding [email protected]

415-559-2586

Documents

Holding-Pilling SB Boot Camp