The Corporate Citizenship Journey

One of the benefits of a conference like this one put on by Boston College’s Center for Corporate Citizenship is the opportunity for CSR professionals to network, share ideas, and learn from one another. In no other session has this experience been more true than in today’s panel: “Corporate Citizenship Journey – What have we learned? What is next?”  The room was packed to hear Chris Coulter, senior vice president, Strategy & Collaboration, GlobeScan; Kevin Moss, head of CSR, BT Americas Inc., and Rick Martella, vice president Corporate Affairs, ARAMARK talk about CSR trends over the last ten years, as well as where the field is headed going forward.

Rick opened the session by asking a couple of big questions:

• How have we performed as an industry?
• How do consumers perceive our work and impact?
• What has our social and environmental impact actually been?
• How are our senior leaders involved in our moving our CSR agenda forward?

Over the course of the session, Kevin and Chris answered these questions and more, in what turned out to be a very spirited exchange between panelists and attendees.

One key takeaway that came up throughout each speaker’s presentation was the issue of the current gap that exists between the work corporate America is doing in CSR and how the public perceives this work.

According to Kevin, this gap exists because in many cases CSR is not integrated into the core business functions and units of a company. When the corporate values are aligned with the company's business model, Kevin said, the result is increased authenticity and by extension, trust on the part of consumers and other stakeholders. But, when companies say one thing and do another, consumers not surprisingly become skeptical.

Chris then stepped in to provide some data behind this claim. His firm Globescan conducts regular research with over 35,000 global CSR professionals, and recently the company completed a 10-year retrospective survey of the industry. The findings from this research confirmed the presence of this “growing expectation/perception gap” that exists in consumers’ minds.

“Over time,” Chris said, “the perceived performance [of corporate America] has declined” – regardless of the fact that Fortune 500 companies have clearly stepped up their game when it comes to actual gains made in sustainability and community involvement.

The answer, the panelists agreed, lies in effective communications.

In effect, the narrative that companies are telling in regards to their CSR programs just isn’t cutting it. In order to win consumers’ trust and loyalty, companies need to make sure their corporate and sustainability communications are aligned and authentic, which will inevitably resonate better with consumers.

Going forward, the panelists seemed to feel confident about the future of CSR, but they were also very cognizant of the fact that we have a lot of work still remaining. Hopefully after 2+ days of learning and sharing, each conference attendee feels better equipped to continue his or her good work back home.

Ashley’s Note: This is the third of three posts I wrote as a featured blogger for The Boston College Center for Corporate Citizenship’s 2010 Annual Conference. Click these links to learn more about the conference, check out the session description, and to read all the blog posts from the event.

The Value of Listening

I wrote a post last week on The Changebase that seems to have hit home for some readers.

It was about the value of storytelling in CSR reports  as a way for companies to not only connect with various audiences but also to bring their sustainability stories to life.

Obviously, I’m a big believer in storytelling – otherwise I wouldn’t have written that post! Yet the more I thought about it, the more I realized that I had missed one crucial element: Listening.

Sure, storytelling is a valuable way for a company to get its CSR message across. But even this is still a very one-sided way of communicating.

With the increase in consumers wanting and expecting to have a more immediate and impactful voice on business today (especially via social media channels), it seems that the true CSR winners are those companies that not only tell stories, but that allow their stakeholders to shape the story that gets told.

Stakeholder engagement is an incredibly complex topic, and to be honest, I’m still learning about best practices in this area. If you can imagine that each business faces unique industry- and firm-level opportunities and threats, then it follows that each business must also consider and engage with a unique set of supporters, critics and third-party groups. Not only are there a lot of different voices to consider, but there's no one-size-fits-all model to follow.

Some companies (often the ones that have been burned by crisis or stakeholder anger in the past) have invested a lot of money in better managing these external and internal audiences. Nike and Gap, for example, are two companies I’ve heard (at least anecdotally) that have full departments dedicated to stakeholder engagement. Which makes sense since, in my opinion, it certainly sounds like a full-time job.

Timberland is another company that’s chosen to listen, not just talk. In its Voices of Challenge project, Timberland has created a platform for stakeholders to share ideas, discuss concerns, and create collaborative opportunities for the company.

We’ll be incorporating your feedback as we develop Timberland’s CSR strategy. We hope you’ll join the conversation by posing questions and comments and providing suggestions for how to approach opportunities and challenges. Let your voice be heard – join the conversation by clicking on the buttons below.

And here's an example of the type of contributions Timberland is getting:

By creating a two-way dialogue in which the company has the opportunity to hear directly from its stakeholders, Timberland wins a couple of big ways:

• It earns additional credibility and loyalty from consumers, suppliers, NGOs and others who appreciate corporate transparency and authenticity, and who want to have a voice in Timberland’s business decisions
• It solidifies the brand as forward-thinking, inclusive and progressive – all adjectives, by the way, that differentiate Timberland from its competitors and inevitably will help drive sales
• It provides Timberland with additional raw data to understand who its stakeholder audiences are, what matters to them, and by extension, what should matter to Timberland.

Ultimately, when companies listen, they learn.

It’s the kind of no-brainer statement that any market researcher would agree with, yet when it comes to CSR, it’s not always so easy to do.

Companies often worry that by opening themselves up to a conversation with stakeholders, all they may get in return is criticism, anger and frustration. And sometimes, that’s exactly what happens.

Yet this fear of being criticized should actually be outweighed by the possibility that true idea sharing can lead to innovations and developments that the company could not have conceived of on its own.

Funny enough, one of my research projects for this semester is to work with a marketing and communications firm to dive deeper into the opportunities that exist for companies to drive innovation, improvement and ultimately revenue by engaging their stakeholders. When you distill it down to our most basic research question, it’s this:

Can listening be a company’s competitive advantage?

Time will tell, but my initial hunch is that it can.

In the meantime, what’s your company doing to listen – I mean, really listen – to what your consumers, customers, suppliers, employees, shareholders, and community members have to say? What ideas and insights could you gain from them that will make your business more effective, strategic and successful going forward?

The Value of Storytelling

Picture this:

Four MBA classmates and I are sitting in a large, somewhat imposing corporate conference room at one of the world’s largest chemical and gas manufacturers.

In front of us sit 12 Director and C-level executives from our client company, and they’ve come here specifically to hear what we think – as MBA students, as potential employees and investors, and as concerned citizens – about their current sustainability reporting materials.

After four months of intensive learning about best practices in CSR reporting – as well as doing a deep dive into this company’s business and industry – we developed a set of recommendations that really centered around the following:

A successful CSR report doesn’t just tell impact – it tells stories.

Granted this is an oversimplification, but not by much! From what we could gather, it’s clear that this company is committed to not only reducing its own carbon footprint but also that of its customers. When it comes to being an environmental steward and good corporate citizen, this company is doing lots of things right.

Yet, all of this great work had been lost on us initially as readers; in fact, it wasn’t until just days before our presentation that we realized how stellar this company really was.

How could this have happened? How, after hours and days spent poring over their sustainability documents, could we have possibly missed the point?

It comes down to communication. While this company was obviously successful in its sustainability efforts, it had done so little to communicate its story that we’d almost missed it entirely.

With that we presented a number of recommendations on how to present content and provide context in ways that are engaging, interactive and customized for stakeholders.

At the end of the presentation, during the Q&A period, one of the executives asked: “Why does it matter if we don’t tell people about what we do in sustainability. Isn’t it good enough that we do something at all?”

To that our team answered an emphatic “No”. It’s not enough to just do something.

Sure, companies need to be mindful of greenwashing. Consumers can certainly smell insincerity from miles away - and these days they've gotten even better at sniffing out fake green marketing claims.

Nonetheless, it seems to me (and others out there) that this concern about greenwashing has gone too far. In fact in some cases, greenwashing worries are actually holding companies back from saying anything at all about sustainability – mainly for fear that someone, somewhere will find something to criticize.

Ladies and Gentlemen of Corporate America, take note: 

A fear of greenwashing is not an excuse to stop you from telling your sustainability story!

In fact, by effectively communicating a company’s CSR successes – and, crucially, also its shortcomings – in authentic, transparent and collaborative ways, a company can achieve an array of benefits, including (but certainly not limited to):

• Proving to investors that it’s focused on the long-term viability of the business
• Giving consumers a voice and a stake in the company’s efforts to improve communities and the environment
• Demonstrating to its employees that the company’s values and culture are aligned with their own
• Engaging NGOs, the media and potential detractors in conversations around the company’s sustainability process, goals, and strategies.

By not focusing on the manner in which it told its sustainability story, our client company had inadvertently left very real value on the table – value that instead was being captured by competitors who had done a tremendous job on both the reporting and storytelling fronts.

Now, don’t get me wrong – to have a successful CSR program, a company surely needs to know its footprint, set strategic and forward-thinking goals, and report its numbers.

But to be a true leader in sustainability, a company must be able to go beyond its numbers and move towards an inclusive, engaging and heartfelt discussion with its stakeholders about its current sustainability journey.

In my research, I came up with a couple of good examples of companies that tell their sustainability stories in compelling ways (Cadbury, Shell, and Timberland, just to name a few). What companies do you think are doing a good job of communicating the story behind the numbers? I’d love to hear what you’ve found.

Diary of an Intern: My Summer in Corporate Giving

It's amazing to say it, but last week I finished up my corporate philanthropy internship at ABC. The summer just flew by! In all, it was a really terrific experience that challenged me to think creatively and strategically about how to educate employees about our corporate giving program and how they can get involved. More than that, it was an opportunity to brainstorm and devise an action plan for how the organization can use philanthropy as a strategic advantage in business. I've given a pretty good overview of my internship in other posts on The Changebase (Learning How to Communicate Change, for example, or one of my Recap posts), so I won't spend too much time talking about my projects. In general, I split my time between two main areas:

• Communications: this summer was all about the "Socialization of Corporate Giving" at ABC - which basically meant coming up with ways to educate our employees and leadership team about our program, how they could get involved, and perhaps most importantly, why it's good for our business. Within communications I focused on creating educational campaigns to let employees know about their option to donate product to charity; redesigning and expanding our program's presence on the company intranet; building out a more robust employee volunteer choice system (letting employees nominate nonprofits to work with beyond our network of partner organizations); and generally raising awareness and involving employees in the conversation. Here I am (below) at a Corporate Giving "expo" I set up to talk to employees, showcase our newly redesigned intranet pages, and encourage participation in the program.

• Branding: I ended my summer by building the case for branding. As a short summary, right now the corporate giving program at ABC is called "Corporate Giving". Without a name or a visual identity, the program doesn't stand out and get noticed by internal employees. Not to mention the fact that currently ABC does not really communicate at all with external stakeholders about how it gives back. All in all, calling it Corporate Giving is impersonal and doesn't convey any of the heart or meaning behind why ABC is involved in the community. My report included competitive benchmarking (looking at how Land o'Lakes, Del Monte Foods, and V8 Juice externally market their community programs), making the case for why philanthropy in business is a strategic imperative, and outlining how and why branding our program is good for ABC.

Beyond my own summer projects, I also learned a lot about ABC's business overall. I had the chance to meet with members of the senior leadership team, including the CEO, the COO and a Director of Manufacturing, as well as with various department heads from Quality, Customer Marketing, Consumer and Business Insights, and others. As a nonprofit "veteran", it was eye-opening to spend 10 weeks at a company with 2000+ employees and learn how all of the various functional groups work together to make ABC so successful.

I was also lucky to meet and work with a friendly, smart group of MBA and undergraduate interns. Here I am with a few  intern friends at a tour of one of ABC's plants:

 

As my time at ABC wound down, I started to reflect on what I'd done and learned over the summer. A few highlights:

1. Working in a for-profit setting is not all that different from a nonprofit: Sure, there is that one vital difference (ie: making money) - but besides that, I found that I acclimated pretty quickly. Interestingly, the part I found most "normal" (ie: similar to my nonprofit experiences) was the everyday, regular stuff: managing interpersonal dynamics with colleagues, finding enough time in the day to get everything done, and identifying ways to promote ideas and gain allies in the office. Ok, so ABC is for-profit. But beyond that, I felt right at home.
2. How you talk to your employees is just as important as how you talk to your consumers (if not more!): Ultimately everything ABC does (from R&D to Marketing to Operations and beyond) is focused on driving sales, which means that the company (and every company for that matter) can get caught up in focusing on how it talks to its consumers. This is an imperative for business - but it doesn't take precedence over the conversation a company has with its own employees. To have happy consumers and customers, we must have happy employees. Sometimes when we get so focused on the bottom line, we forget how important it is to engage internal audiences in a conversation about our company values, heritage, mission, and goals. But as I learned in corporate giving, employees are our greatest asset and ambassadors; without them, the business just can't succeed.
3. Change is sloooooooow: Change is such a double-edged sword. On the one hand, the idea of it gets our blood pumping and makes us feel energized and empowered; on the other, it can be overwhelming, unwanted, or feel like an unnecessary intrusion. Like any new employee, I came in to ABC this summer full of ideas, energy, and action, and I'm pleased to say I accomplished a lot. But any trouble I ran into this summer revolved around the idea that change - even good change - is slow moving. It takes time to get buy-in from the right people and package a message or idea in a way that your audience will understand - and even when you've done all of that, it's still a challenge to actually move the dial in the direction you want. I did a lot this summer, but I could have used way more than 10 weeks to really make an impact.

With just two weeks left until I begin my second year of my MBA, it's fun to look back on the summer and see what I accomplished. My experience at ABC really helped "round out" my understanding of how philanthropy (and CSR in general) can reinforce business goals and be a strategic advantage for companies that do it right. Now it's time to get back to school!