GLOBAL CORPORATE CITIZENSHIP:
A NEW AGE FOR CHILE AND THE AMERICAS
BRADLEY GOOGINS PhD
EXECUTIVE DIRECTOR
googinsb@bc.edu
August 2003
THE CENTER FOR CORPORATE CITIZENSHIP AT BOSTON COLLEGE
55 LEE ROAD • CHESTNUT HILL, MA 02467 • www.bc.edu/corporatecitizenship
Economic Sector
“Wealth Creation”
Partnerships
Planning Collaboration
Reciprocity
Civil Society
Non Profits
NGO’s
Advocates
Academia
Legislative Input
Mutual Education
Political Sector
Home Based
Implementation
Evaluation
Research
Policy Makers
State and
Federal
Public at Large
Corporations as Good Citizens
Public Relations
Outreach
Source: Waddock, Bodwell, Leading Corporate Citizens, Boston College
High Anxiety
The Economist 09/2000
Globalization and Corporations
Income disparities, environmental damage, and cultural
degradation are pointing the spotlight on companies
Slide courtesy of BSR
Kofi Annan and the UN Global Compact
“…let’s choose to unite the powers of
markets with the authority of universal ideals.
Let us choose to reconcile the creative forces
of private entrepreneurship with the needs of
the disadvantaged and the requirements of the
next generations…”
Kofi Annan, UN Secretary General
John Elkington -CEO of SustainAbility
“The speed of globalization often
means that companies are
moving ahead of the ability of
current governance systems to
monitor and police. Companies
will be expected to fill at least
some of the gap.”
Quote from the Novartis Health, Safety Environment Report 2000:
Sustainability and the UN Global Compact
“We also want to benefit society through our economic
contribution, through the positive environmental and
social consequences of our activities and through an
open dialog with our stakeholders.”
Dr. Daniel Vasella,
Chairman & CEO, Novartis AG
Quote from the Novartis Commitment to the UN Global Compact - July 14, 2000
What does Corporate Citizenship look like?
Employees
Customers
Community
Government
Involvement
Affairs
Environment
Legal
Stakeholder Engagement – The Key
CC
Issues Driven by Stakeholders
CC
Drivers of the “New”
Corporate Citizenship







Government Retrenchment
Globalization & The Economic Power of Business
New Activism and Compliance Pressures
The Rise of Civil Society
New Expectations for Business
The Business Case
The “War for Talent”
The Scope of Citizenship
Governance
Identity
“Integrating”
corporate citizenship
into the company’s
“Infusing”
corporate citizenship
into the company
organizational structure
Practice
“Embedding”
corporate citizenship
into business planning
and operations
SM
Neighbor of Choice is a strategy that links business
success to corporate citizenship. It is a blueprint for
developing, implementing and institutionalizing a
corporate-wide community investment strategy. It
provides:
•ROI (for the business and community)
•Positions the business as a leading corporate citizen
•Builds community support for the business
The Neighbor of Choice Strategy
SM
Vision/Mission: links
community & business success
Building relationships
of trust
(identify stakeholders)
Identifying key issues,
concerns, and needs
•external threats & opportunities
Strategic programs/responses that serve
company and community needs
•social investment/contributions
•partnerships
•volunteerism
source: Boston College CCCR
What is the “community?”
Where employees
live/concerns
Internet
Cyber
Community
Geographical
Fenceline
Community
Employee
Community
Site
Community
The Corporation
in the community
Immediate
neighbors
Impact
Community
Interest
Community
•Operations
•Influence
•Exit
•Entry
Common interests
Your goal: build community support
Be an asset in the community, and the community will be an asset to you...
•recruitment
•retention
•productivity
•attraction
•image
•commitment
Reputation
Value add
Employee
Value add
Customer
Value add
•regulation
•risk reduction
•trust
LTO/
Regulatory VA
The Corporation
in the community
•virtuous circle
•investors
Business
Value Add
Community
Value add
•New markets
•R&D
•Address problems
•Do the “right thing”
A Roadmap to Excellence in
Corporate Community Involvement
The Standards of Excellence: 7 management
principles and practices for creating corporate
community involvement excellence.
1.
2.
3.
4.
5.
6.
7.
Leadership
Issues Management
Relationship Building
Strategy
Accountability
Infrastructure
Measurement
The Standards of Excellence in Corporate
Community Involvement
STANDARD I: Leadership
Senior executives demonstrate support,
commitment and involvement in community
involvement efforts.
STANDARD II: Issues Management
The company identifies and monitors issues
important to its operations and reputation.
STANDARD V: Accountability
All levels of the organization have specific roles
and responsibilities for meeting community
involvement objectives.
STANDARD VI: Infrastructure
The company incorporates systems and policies to
support, communicate and institutionalize
community involvement objectives.
STANDARD III: Relationship Building
Company management recognizes that building
and maintaining relationships of trust with the
community is a critical component of company
strategy and operations.
STANDARD IV: Strategy
The company develops a strategic plan for
community programs and responses that is based
on mutual issues, goals and concerns of the
company and the community.
STANDARD VII: Measurement
The company establishes an ongoing process for
evaluating community involvement strategies,
activities and programs, and their impact on the
company and the community.
Standards of Excellence:
Leadership
Company leadership
 Recognizes strong
community relationships
critical to business goals
 Endorses and ensures
community vision statement
 Personal example and
involvement
 Communicates expectations
Board of Directors is involved
Leading Companies
• SC Johnson Wax
• Dayton Hudson
• IBM
• Merck
• Shell
• BP Amoco
Standards of Excellence:
Strategy


CR strategic plan
– Linked to goals of
business units
– Linked to identified
issues
– Use variety of resources
to respond to community
needs, issues, etc.
Communications plan
Leading Companies
• Merck
• EDS
• Whirlpool
• Levi Strauss
• Olin
• Rockwell
• Diageo
• IBM
• London Benchmarking Group
Standards of Excellence:
Issue Management





Company IDs and monitors
issues
Stakeholders IDed and
defined
2-way system to ID and
analyze relevant issues
Early warning system
Community issues factored
into business plans
Leading Companies
• Merck
• Southland/ 7-11
• IBM
• Levi Strauss
• Wal-Mart
• Target
• General Mills
Standards of Excellence:
Relationship Building



Proactive CR-building plan
All employees involved
Tactics emphasize 2-way
communications to foster
trust and credibility
Leading Companies
• Bell Atlantic
• Target
• Wal-Mart
• Merck
• State Farm
• Ameritech
• BP
Standards of Excellence:
Roles and Responsibilities



Clearly defined and
articulated
Specific CR department:
– Reports to top level
– Develops CR plan
– Consults with operating
units
Impact on communities
considered by departments/
units
Leading Companies
• FedEx
• IBM
•Time Warner
• Steelcase
• Whirlpool
• Honeywell
• Target
• Monsanto
Standards of Excellence:
Supporting Systems and Policies



Cross-functional teams
– Plan community strategies
– Assure cross-functional
linkage
– Foster internal
communications
– Secure recognition
Involve all employees
Company-wide communications
Leading Companies
• Merck
• Diageo
• Arch Chemical
• Home Depot
• Timberland
• Target
• NOVA Energy
• Texas Instruments
Standards of Excellence:
Measurement



Ongoing process of
evaluating CR strategies,
programs
Indicators developed for
evaluating community
priorities
Evaluation results used to
make future decisions
Leading Companies
• EDS
• Battelle
• Diageo
• IBM
• Pillsbury
• London Benchmarking Group
• PPL
Partnership Building Blocks
Communication
Commitment
Collaboration
The Stages of
Business and Community Development
Stage 1: Awareness
Traditional involvement in
low- to moderate-income
communities. Driven by
community relations and
philanthropy for
community benefit,
corporate responsibility
and
reputation enhancement.
Less integrated,
informal process
Stage 2: Experience
Pilot initiatives or
specific programs
designed to produce a
clearly identified
business and
community benefit.
Includes strategic
philanthropy. Corporate
involvement often
limited to one or two
business units.
Stage 3: Integration
Integrated, crossfunctionally aligned with
supporting
organizational structures
and systems. Draws on
a wide variety of
corporate and
community resources.
Clear business and
community value.
More integrated,
formal process
Why Should We Do This?
Motivational Silos
Societal
Factors
Value
Drivers
Compliance
Drivers
* Right thing to do
* Social mission
* Legacy in our
community
* Regulation
* Activism
* Negative press
Dominant Response
Dominant Response
* Philanthropy
* Strategic
Philanthropy
* Partnership Events
* Resistance
* Minimum
Compliance
* Philanthropy
Intangible
Drivers
* Social issues
influence business
(education,
community,
economic stability,
employee safety)
* Build reputation and
image
Dominant Response
* Strategic social
investment
* Pilot BCD projects
Market
Drivers
* Location
* Customers
* Labor
* Suppliers
Dominant Response
* Strategic social
investment
* BCD projects
* Direct investment
Strategic BCD Framework
Identify Issues
 Business challenges
 Societal pressures and
opportunities
 Community needs
Identify Stakeholders
 Societal
 Market
 Internal and External
Identify Organizational Capabilities
 Core business resources
 Core Community Relations resources
 Community resources
Design a Business and Community Development Strategy
 Draw on market and societal drivers
 Balance risks and opportunities
 Include internal and external partners
 Improve business performance
 Supports sustainable community economic development
Success in the 21st Century
Who you are and
what you stand for
are becoming just as important
as the quality of your products and
services