Successful Corporate Citizenship What Sets Leading Companies Apart

Transcription

1 Successful Corporate Citizenship What Sets Leading Companies Apart Tom Knowlton & Nadia Gomes June 6, 2013

2 Housekeeping: Joining the Webinar You may join the webinar using the telephone number provided or using your computer s speakers. Make your selection using the webinar taskbar. Your confirmation contains the toll free number and webinar access code. 2

3 Housekeeping: Q&A We welcome your questions and will have an extended Q&A session towards the end of the webinar. Please use the chat box to submit any questions. Type your questions here. 3

4 TCC Group: A Focus on Impact At TCC Group, our focus is on helping organizations achieve greater social impact. Our work looks at all aspects critical to success from strategy to program development and implementation to evaluation and measurement. 4

5 Our Clients 5

6 The Public is Watching and Companies are Responding Higher Expectations for Companies as Corporate Citizens Widespread Recognition of the Business Case for CSR More Information Available on Companies Strategies & Activities New Approaches & Standards Being Developed A Spectrum of Success in Implementation 6

7 Trends in Corporate Citizenship Goals linked to value creation Community impact that is measurable A focus on programs 7

8 Successful Corporate Citizenship Employee Engagement Stakeholder Trust Reputational Value Social and Business Goals are Met Public Respect 8

9 IBM Applies its Unique Business Assets to Address Social Issues We identify and act upon new opportunities to apply our technology and expertise to societal problems. ~ Smarter Cities We integrate corporate citizenship and social responsibility into every aspect of our company. We scale our existing programs and initiatives to achieve maximum benefit. ~World Community Grid We empower our employees and others to serve their communities. ~ Service Jam 9

10 Using Scale for Good Community Ethical Sourcing Environment together we will elevate our partners, customers, suppliers and neighbors to use our scale for good. 10

11 Pepsico: Performance With a Purpose 11

12 Clear statement about social impact goals that address the concerns of key stakeholders Be supplied 100% by renewable energy Create zero waste Sell products that sustain people and the environment Message from Mike Duke President and CEO 12

13 What Sets the Successful Companies Apart? What makes a company an effective corporate citizen? What critical elements result in some companies securing trust and success, whereas others continually struggle despite an investment of significant resources into strong programs? How can you assess your situation and determine the best path forward? 13

14 Answer: 3 Key Takeaways 1. Strong programs alone are insufficient for success. 2. Effective citizenship strategy is informed by a broader context in which engaged leadership is the most significant element. 3. Companies should assess four elements critical to successful corporate citizenship before developing programs. 14

15 A Framework for Citizenship Success Culture Aligned with Values Shared Transparent Engaged Leadership Demonstrative Continuous Committed Integration Internal shared value Clear stakes for all BUs, regions, and departments Programs Stakeholder driven Clear goals Dual community & company ROI targets 15

16 The Four Elements of Citizenship Success Engaged Leadership Culture The Accelerators The Fundamentals Integration Strategy 16

17 Alignment & Strength Among All 4 Elements = Successful Corporate Citizenship Culture Aligned Shared Transparent Citizenship Success: Engaged Leadership Demonstrative Continuous Committed Integration Internal shared value Clear stakes for all business units Citizenship Strategy Employee Engagement Stakeholder Trust Reputational Value Public Respect Societal & Business Goals Met 17

18 Strength of the Fundamentals (Integration & Strategy) There is a Gradient for Each Element: Alignment is the Goal Accelerators outpacing fundamentals = UNUSED POTENTIAL Fundamentals outpacing accelerators = UNSUSTAINABLE PROGRAMS Successfully Aligned Program Strength of the Accelerators (Culture & Engaged Leadership) 18

19 Each of the Four Elements Brings a Crucial Attribute to the Citizenship Efforts Integration Culture Credible Smart Impactful Strategy Supported Leadership 19

20 Fundamental Element: Strategy Lack of clear goals Unrelated issues Focus on grantmaking Stakeholder-driven goals Issues aligned with company Core resources leveraged 20

21 Monsanto Community Impact Goals: 1. Producing More: Developing improved seeds that help farmers double yields by Conserving More: Developing seeds that use one-third fewer key resources per unit of output by Improving Lives: Helping improve the lives of farmers and the people who depend on them, including an additional 5 million people in resource-poor farm families by

22 Fundamental Element: Integration Top-down or driven solely by citizenship team Engagement & accountability from units across the company 22

23 Wells Fargo Structure: created/organized/led by Government and Community Relations Department (foundation, community relations, environmental affairs, stakeholder engagement) Enterprise Stakeholders Council: Understanding and influencing reputation management issues company-wide Enterprise Stakeholders Council Working Group: Resource for the ESC council; assess and gather research and information Reputation Management Committees: Building reputation in local markets 23

24 Accelerator Element: Engaged Leadership Leaders actions not communicating company values; citizenship seen by employees as lower importance Engaged leaders trusted and respected by employees and stakeholders 24

25 Campbell s: Doug Conant, Former President & CEO Before you have the moral authority to lead your team, you have to inspire trust. I had to go out on a limb and talk about my vision for going forward in an uncomfortable way. It was hard for me to imagine that we could inspire high performance with no employee engagement. winning on two fronts--in the workplace and in the marketplace. Dina Gerdeman, HBS, Pulling Campbell s Out of the Soup March 2013; 25

26 Accelerator Element: Culture Low employee engagement Low motivation Lack of credibility behind citizenship efforts High employee engagement Pride in company Belief in company values 26

27 Aetna & John W. Rowe, Former Chairman & CEO You can t trade your company s culture in as if it were a used car. Culture as a competitive advantage an accelerator of change, not an impediment. Leverage...the employees who are already aligned with their strategy and desired culture. Culture must be measured and monitored. Katzenbach, Steffen, & Kronley, Harvard Business Review, Cultural Change that Sticks, July/Aug 2012

28 Assessment of All Elements Can Increase Success How An Assessment Can Help You: Produces a diagnostic of gaps/shortcomings that reduce your citizenship effectiveness Identifies clear steps you can take to build strength in the core elements and to increase alignment Builds data and recommendations that you can share internally to engage leaders with a stakeholder-driven case that makes business sense 28

29 Application of the Framework to Program Strategy Culture Aligned with Values Shared Transparent Engaged Leadership Clear & updated understanding of stakeholder expectations Integration Assessment of current activity and resources to leverage Clarity of internal roles Program Strategy Clear & measurable goals driven by stakeholders 29

30 Summarizing the 3 Key Takeaways 1. Strong programs alone are insufficient for success. The majority of companies tend to focus primarily on program strategy, however, this results in a less effective citizenship approach. Programs must fall within a broader strategy for citizenship. 2. Effective citizenship strategy is informed by a broader context in which engaged leadership is the most significant element, and culture and integration play significant roles. Citizenship strategy should be aligned with the other 3 elements, & leading companies have strength in all Companies should assess four elements critical to successful corporate citizenship before developing programs. The findings should be used to prioritize next steps and areas for investment in a corporate citizenship approach. 30

31 Q&A