Engaging Corps in Social Issues - Workplace Solutions by American

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June 18-19, 2009 | Hyatt Regency Chicago

Sponsored by

Engaging Employees and

Corporations As Citizens

American Cancer Society Impact Conference

Bradley Googins PhD

Director Emeritus Center for

Corporate Citizenship

Associate Professor

Carroll School of Management

Boston College

A new and urgent problem?

“I see in the near future a crisis approaching that unnerves me and causes me to tremble for the safety of my country…corporations have been enthroned and an era of corruption in high places will follow, and the money power of the country will endeavor to prolong its reign by working upon the prejudices of the people until all wealth is aggregated in a few hands and the Republic is destroyed.”

Abraham Lincoln, 1864

A Time of Uncertainty and Turbulence

Where are we now?

February 16, 2009

Business: As Problem?

“Eisman knew subprime lenders could be scumbags. What he underestimated was the total unabashed complicity of the upper class of American capitalism.”

M. Lewis, The End. Porfolio, December 2008

Business: As Solution?

Why Is Business

Involved in the Community?

Moral responsibility

Intelligent self interest

(‘win-win’)

Direct business interests making a contribution to the community companies need a healthy, prosperous society in which to do business to improve performance and promote the business and its brands

Charitable gifts to promote the public good:

• local requests

• matched employee gifts

• Board service

Strategic community investments to support the long-term success of the business and to promote the public good

• support for education

• housing

• economic development

• the arts

Business initiatives to promote direct business interests in alliance with community organizations

• research in universities

• cause-related marketing

• employee health provision, e.g., HIV/AIDS

Development of Citizenship

Engaging the

Environment

Managing

Citizenship

Issues

Management

Stage 1

Compliant

Defensive

Stage 2

Engaged

Reactive,

Policies

Stage 3

Innovative

Responsive,

Programs

Stage 4

Integrated

Pro-Active,

Systems

Stage 5

Transforming

Defining

Stakeholder

Relationships

Transparency

Citizenship

Concept

Strategic Intent

Leadership

Structure

Unilateral

Flank

Protection

Jobs, Profits &

Taxes

Legal

Compliance

Lip Service,

Out of Touch

Marginal:

Staff driven

Interactive Mutual

Influence

Partnership Multi-

Organization

Alliances

Full Exposure Public Relations Public

Reporting

Philanthropy,

Environmental

Protection

Reputation

Responsible to

Stakeholders

Business case

Supporter,

In the Loop

Functional

Ownership

Steward,

On Top of It

Cross-

Functional

Coordination

Assurance

Sustainability or

Triple Bottom

Line

Value

Proposition

Champion,

In Front of It

Organizational

Alignment

Change the

Game

Market

Creation or

Social Change

Visionary,

Ahead of the

Pack

Mainstream:

Business Driven

Putting CC to Work:

Understanding Key Issues – CC strategy

Safety of medicines

Access to medicines

Is it a compliance issue?

Legal

Minimum

Material

What is its strategic potential for my business?

Strategic Leadership

Is it of material significance to my business?

What would leadership on the issue look like?

Industry standards

Curing Global

Health Issues

(ex. HIV/AIDS)

MEANING OF “CORPORATE SOCIAL

RESPONSIBILITY”

Commitment to employees

Commitment to communities

Provide quality products

Responsibility to the environment

More Charitable Donations

Don't Know

3%

12%

16%

23%

27%

16%

0% 5% 10% 15% 20% 25% 30%

Source: Fleishman Hillard International Communications

Its not about Charity

Best Way for Company to Make

Positive Contribution to Society Prompted, by

Region,* 2006

CSR Initiatives

*Not asked in Kenya, Nigeria, South Africa, and Switzerland

New Business Challenges from Society

Energy

– energy security

– climate change

– political risk

• Retail

– supply chain practices

– consumerism

• Pharmaceutical & Health

– access

HIV-AIDS

Low income

– IP and trade

• Finance

– low-income

– financial scandals

– responsible lending/investing

• High-tech & ICT

– off-shoring

IP and trade

– digital divide

Agriculture + Food &

Beverage

– Trade & globalization

– Health & nutrition

• Manufacturing

– China & offshoring

– Job protection

– Supply Chain

– climate change

Shipping & Logistics

Climate change

Security

Low income market

Focus where interests converge

Pure

Philanthropy

Combined Social and

Business Benefit

Social

Benefit

Economic Benefit

Source: M. Porter. The competitive advantage of corporate philanthropy

Pure

Business

Sources: GlobeScan, Wirthlin, Edelman

Societal Expectations

Around the world...

60-70%

10-20%

New Expectations:

Companies held responsible for 2005

Employee Expectations:

The “Need” Perspective

FORTUNE Magazine

“100 Best Companies to Work For” issue.

(First published in

1998)

Employees Seeking More

72%

52%

I wish my company would do more to support a cause/social issue (% agree)

2004

77%

2007

83%

It ’ s important for my company to provide opportunities for employees to become involved in causes

2004 Cone Corporate Citizenship Study

2007 Cone Cause Evolution Survey

77%

2004 2007

Employees – Seeking More

CSR increases my motivation and loyalty

2002-2006

Source: 2006 Globescan CSR Monitor

Levels of Engagement:

The Identity Perspective

My Life’s Purpose:

Citizen of the World

My Life’s Work: Family,

Community Member, Investor &

Consumer

My Identity: Gender, Race,

Orientation, “Whole Person”

My Job:

Employee

20

Corporate Citizenship Today

US Consumers’ Perspective top drivers

1. Values and treats employees well and fairly

2. Executives and business practices are ethical, honest, open and transparent

3. Authenticity

4. Goes beyond what is required to provide safe, healthy and reliable products and services

5. Listens to consumer, customer and community input when making business decisions

6. Active and involved in the communities where it does business

Committed to corporate social responsibility, sustainability, economic opportunity, environmental stewardship, etc.

7. Donates or invests its fair share of profits, goods or services to benefit others

Source: Golin Harris Corporate Citizenship Gets Down to Business 2006

Return on Venture Citizenship: Individual

MINDBODY SOUL

Recruiting and encouraging innovation

$1MM innovation award

Geek Squad Academy

Blue Shirt Nation

Work/Life Balance

Promoting strengths and passions

Strengths-based HR

Grameen Foundation

WOLF

Seth Owusu/EVCO

Diversity/Tolerance Safety/Wellness

Rewarding service and philanthropy

Volunteer rewards

@15

Local giving: $50K school in China

“The good company of the future will center on human capital enhancement, on work as an exciting challenge, one that can draw the will and the aspirations for personal significance of each employee into his or her occupation.”

Brennan, Schmitz, Behar; Caux Roundtable 2007

CSR – HR = PR

Gaps in Communication/Opportunity

C. B. Bhattacharya, Sloan Management Review

• Great interest in CC by majority of [company] employees

• Lag in understanding, opportunity and participation

1. It is important for [company] to be involved in CC.

2. I have a good understanding of [company initiatives].

3. I have a good understanding of the [company clean w ater program].

4. It is important for [company] to provide opportunities for me to participate in CC.

5. [Company] provides sufficient opportunities for me to participate in CC.

6. I have an interest in participating as part of my w ork

7. I have an interest in participating on my ow n time

8. I have participated in [company CC].

0% 20% 40% 60%

Percent in Agreement

80% 100%

Volunteerism: Engaging

Employees as Citizens

“Here at Timberland, things are different from other companies. At our corporate headquarters, employees work hard to make some of the world's most innovative products, then use paid time-off to make a difference in the community.

Children play in our in-house day care center.

The committed young people of City Year New

Hampshire, a national youth corps that recently set up shop within Timberland's walls, are hard at work. And throughout the entire company, it's evident that doing well and doing good are inextricably linked.” source: company introduction at www.timberland.com

Jeffrey Swartz, CEO, Timberland frequent keynote speaker on relationship between strategic CCI, brand and core business

From “Helping Hands” to

“Integrated Value”

1

• Beginner’s e.g. “Helping

Hands” volunteers

2

• Focused e.g. groupwide; issue driven

3

• Innovation e.g. issue specific; local autonomy & centrally coordinated

4

• Employee value proposition linked e.g. specific skills applied and developed

Increasing employee engagement

5

• Integrated e.g. valueadded to society and your business

Corporate Citizenship

Management Framework

Three dimensions of Corporate Citizenship Management Framework

How companies engage

Key stakeholders to

Address key social issues

How companies ensure core

Functions of business

Do not harm the society

And create values

Workplace

Community Operations

Vision

Mission

Suppplier

Values

Marketplace

Products and

Services

How companies aligns its

Commercial activities to create

Values to society and company.

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