Execution Sway November 15, 2007.

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A Little Humor ... 3. Diagram of Corporate Social Responsibility. A New Kind of Corporate ... local issues (not simply Iraq War) added to political change ...
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Execution Impact November 15, 2007 A New Kind of Corporate Social Responsibility Fleishman-Hillard 200 N. Broadway St. Louis, MO 63102

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A Little Humor …

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A New Kind of Corporate Social Responsibility Overview of Corporate Social Responsibility

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CSR in the Past " There is one and stand out social duty of business—to utilize its assets and participate in exercises intended to expand its benefits. " –Milton Friedman, Capitalism and Freedom (1962)

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What CSR Means Today " This commitment [of CSR] is seen to stretch out past the statutory commitment to consent to enactment and sees associations deliberately finding a way to enhance the personal satisfaction for representatives and their families and additionally for the nearby group and society on the loose. " –Wikipedia

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Why It Matters Growing acknowledgment that organizations can address social issues more successfully than a few governments – Katrina conveyed this home to U.S. American open is progressively incredulous of huge business – lessening white collar class, observation riches streams to business elites Worldwide consideration regarding environmental change – Europe drives the globe, Asia shutting in, and U.S. making up for lost time Rapid development and utilization of innovation – asserted wrongdoing can be caught, put on YouTube, pointing out a worldwide gathering of people inside minutes Heightened mindfulness from Wall Street

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A New Kind of Corporate Social Responsibility The Study

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Background Second yearly review set against scenery of clearing national political change (2006 midterm races) FH/NCL conjectured buyer dissatisfaction over residential issues (not simply Iraq War) added to political change 2007 study: Investigates Americans\' impression of CSR, including political gathering alliance Determines whether Americans anticipate that legislature will assume a part in realigning corporate America\'s needs

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Study Design Partnered with National Consumers League Surveyed differing blend of U.S. grown-ups (18+) All 50 states 2,078 phone interviews; 30 minutes (avg.) Sampling mistake = 1 – 2 rate focuses (95% certainty level) Conducted Q1 2007

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Key Findings In your own particular words, what does the expression "corporate social duty" intend to you?* (Volunteered) * Columns may not add to 100% because of numerous reactions.

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Key Findings Corporations ought to be occupied with ways that go past making monetary commitments. Partnerships should be focused on groups and, by and large, to society (23 percent). Partnerships should be focused on representatives (17 percent). For the second year consecutively, corporate America gets low stamps for its CSR execution. The execution of organizations is better "in their own particular lawn" versus the country in general.

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Key Findings Americans trust that legislature ought to guarantee the social duty of enterprises. Four out of five customers say it is imperative for Congress to guarantee that companies address squeezing social issues. Customers accumulate and impart data about organizations\' CSR from the Internet more than some other source. Online sources exceed customary disconnected sources as favored approaches to find out about the CSR record of organizations in buyers\' groups.

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Key Findings Online Social Media Now Primary Source of CSR Information What sorts of online assets have you used?* *Columns may not add to 100% because of various reactions. **Less than one-portion of one percent.

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A New Kind of Corporate Social Responsibility The Impact of Internal

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"Treats Employees Well" Remains Most Important Assuming that an organization is working its business in a fair and moral way, which one of the accompanying is most essential to you? Across the country (n=2,078) Treats and pays representatives well 1% Goes past law to secure 3% environment 3% Responsive to clients\' needs 9% Contributes to group past paying charges 8% Shares your qualities 38% Ensures great benefits for 9% shareholders Gives to altruistic causes 14% All the same/other 15% Don\'t know/Refused

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Employee Issues Are Important for Business What are your desires of neighborhood organizations\' interest in or commitment to their groups? Organizations ought to make non-monetary commitments, for example, volunteering time or exertion (29 percent). Organizations ought to treat representatives well, give a decent wage, or give vocation (11 percent). Non-budgetary commitments Fixing issues made by organization Environmentally neighborly practices No desires

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Employees Should Come Before Charities To what degree do you concur or can\'t help contradicting the accompanying proclamations: Focus on producing business and utilizing more individuals, instead of making corporate gifts to social causes. Place worker compensation and pay increments above making beneficent commitments.

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Employee Related Concerns Throughout Findings Wages Important to pay specialists inside/outside U.S. a living compensation (73 percent). Concur pay/wage increments ought to be put above beneficent commitments ("firmly" or "fairly" concur, 76 percent). Among seven choices, including "provides for altruistic causes," more than 33% chose "treats and pays its workers well" as most imperative (38 percent). Occupations Generate business and utilize a bigger number of individuals as opposed to making magnanimous gifts ("unequivocally" or "fairly" concur, 70 percent). Representatives versus Environment Assuming an organization works in a legit and moral way, it is more essential for enterprises to treat or pay representatives well than to go past the law to secure nature or provide for beneficent causes (38 percent versus 15 percent). Believability Non-administration workers are seen as more solid than senior administrators in handing-off regardless of whether a U.S. organization is working in a socially capable way.

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What It Tells Us Americans anticipate that organizations will illuminate squeezing social issues in the groups in which they work and characterize CSR desires that go past simply making beneficent gifts. Americans keep on believing organizations are not acting dependably. There seems, by all accounts, to be at a "tipping point" with corporate conduct; to such an extent, that they are slanted to utilize government as a methods by which to realign organization needs. Search for outer approval of organization\'s endeavors. The following race will fortify this heading – not invert it. A lion\'s share of Americans now go online to take in more about CSR endeavors – places where organizations can\'t control their message.

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Implications Ignore CSR at your own particular risk Active engagement Give representatives a voice Educate workers on effect of CSR – to the organization and themselves

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A New Kind of Corporate Social Responsibility What You Can Do

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Recommendations Put a stake in the ground Transparency of endeavors Quantify the effect both in time and cash Regularly impart progress Validate endeavors Credible outsiders Employees and retirees Sustained correspondences Ongoing exchange – interior and outer Social media checking 2.0 Web webpage

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A New Kind of Corporate Social Responsibility Terri Owen Senior Vice President & Partner of Internal Communications Phone: 314-982-8620 E-mail: terri.owen@fleishman.com Tony Calandro Senior Vice President & Partner of Public Affairs Phone: 314-982-8725 E-mail: tony.calandro@fleishman.com Visit the study online at www.csrresults.com.

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