Leading Across the Organization. Profile of the Professionals 2013 Executive Summary

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1 Leading Across the Organization Profile of the Professionals 2013 Executive Summary

2 Introduction The Profile of the Professionals 2013 looks at the job satisfaction, professional development, motivations, and compensation of people working in corporate citizenship roles. This year s findings reflect the progress and pathways of those professionals working to advance corporate citizenship. Based on a survey conducted in late 2012, this is the Center for Corporate Citizenship s fifth report focusing on those working in corporate citizenship. This vanguard has increasing levels of education and experience and its members are expected to have a wide variety of skills and broad networks. Professionals working in corporate citizenship draw on their varied backgrounds to operate cross-functionally inside their firms and with a diverse range of external stakeholders. Professionals in corporate citizenship have increasing levels of education and experience, and are expected to have a wide variety of skills and broad networks. This vanguard of professionals draws on their varied backgrounds to operate cross-functionally inside their firms and with a diverse range of external stakeholders. Key findings Corporate citizenship is developing rapidly Over the past six years, there has been an increase in the proportion of professionals with prior corporate citizenship experience, as well as a higher percentage with advanced degrees. Forty-four percent hold advanced degrees vs. 38% in Among vice presidents and above, 58% have advanced degrees compared to 53% in The majority of positions in corporate citizenship are filled internally. This is true across all job levels and more pronounced at higher levels. At every level, professionals in corporate citizenship highlight the importance of building relationships The majority spend at least some time on communication and community/social investment activities. Relationship building, ability to influence others, and leadership skills are the skills most often identified as necessary to succeed. Professionals in corporate citizenship are highly satisfied in their jobs and are motivated by the opportunity to make a difference in the world and to business success Job satisfaction is high across the board, with 75% or more satisfied with their salary, benefits, and job security. Almost 90% would recommend pursuing a role in corporate citizenship. More than 80% are satisfied with their company s corporate citizenship reputation. Professionals in corporate citizenship are motivated by their chance to make a difference. The ability to positively affect social and environmental issues is identified by 73% as one of their top three reasons for staying in their current positions. Among vice presidents, almost 50% identify impact on business as one of their top reasons for staying in their roles. Lack of resources and opportunities for career advancement are among the top challenges Asked to describe the greatest challenge in their current positions, respondents most often cite workload/lack of resources, the need to demonstrate the value of corporate citizenship internally, and a lack of a clear corporate citizenship strategy within the company. They are least satisfied with career advancement opportunities. Respondents report a scarcity of positions in corporate citizenship and the need to gain experience in other aspects of the business prior to moving into these positions. 1 Profile of the Professionals 2013

3 Roles in corporate citizenship Of the 603 respondents, the majority hold middle- or senior-level positions within their companies. They work in a wide range of departments, but there is consistency on the most common departments across the 2012, 2010, and 2006 surveys. The majority are concentrated in community affairs/relations, corporate communications, public relations and public/government affairs, and a dedicated corporate citizenship (corporate social responsibility, corporate responsibility) department. Job title VP and above 3 % 13 % Senior Director 14 % 11 % Director Staff 21 % 38 % Manager The departments where professionals in corporate citizenship are based Community Affairs/ Community Relations Corporate Communications Corporate Citizenship Department (CSR, CR) Public Relations and Public/Government Affairs Human Resources Corporate Foundation Marketing In 2006, only 7% worked in a corporate citizenship department. By 2012, it was 13%, almost a twofold increase. While the percentage based in corporate citizenship departments has grown, the percentage based in public relations and public/government affairs and community affairs/relations has declined steadily, perhaps indicating a shifting of resources from these two departments to new corporate citizenship departments. Environment, Health, and Safety 0 % 5 % 10 % 15 % 20 % 25 % Legal Corporate Affairs 2 Profile of the Professionals 2013

4 Career paths to corporate citizenship More than half (57%) came to their current position from inside the company. An internal move is more likely as seniority increases 27% were promoted from within their departments. 72% of directors made internal moves to their jobs, the highest percentage for any job title. When hired externally, it is most common to come from a nonprofit or from a corporate citizenship role in another company. Route to current position Total VP and above Senior director Director Manager Staff 0 % 10 % 20 % 30 % 40 % 50 % 60 % 70 % 80 % 90 % 100 % Promoted within my department Transferred from another department inside the company Internal - External hire 3 Profile of the Professionals 2013

5 Career paths to corporate citizenship Respondents report a scarcity of positions in corporate citizenship and the need to gain experience in other aspects of the business prior to moving into these positions. Those working in corporate citizenship have a wide variety of experience, but almost 40% have worked in an area related to corporate communications. About one third of respondents have backgrounds that include experience in education, government and/or nonprofits Professional background Corporate communications/ Marketing/Sales/PR Education/Government/ Nonprofit Consulting Corporate citizenship Management (for a specific line of business) Operations Human resources Public/Government affairs Finance/Accounting/ Insurance Legal services Engineering and Technology Administration 0 % 10 % 20 % 30 % 40 % 4 Profile of the Professionals 2013

6 Increased education and experience Professionals in 2013 have more advanced degrees (e.g., master s, MBA, doctorate) and more years of experience in the field than those in earlier surveys. Forty-four percent of all respondents have attained advanced degrees in the most recent survey. The percentage holding advanced degrees is higher among those in more senior positions 58% of vice presidents and above have a master s degree or higher. A substantial percentage (15%) earned an MBA. The number with more than five years of corporate citizenship experience increased to 58% in the most recent survey. Highest educational degree obtained Advanced Degree Bachelor s Degree Associate s Degree High School Diploma or GED % 10 % 20 % 30 % 40 % 50 % 60 % Professionals with more than 5 years corporate citizenship experience 58 % 52 % Profile of the Professionals 2013

7 Relationship-building skills and leadership competencies Professionals rate the ability to influence others, the ability to build relationships, leadership skills, and the ability to work in teams as most important to their success. Percentage of respondents who ranked a particular skill among their top 5 most important to succeed in their current position Consistent with the results for the total sample, the ability to influence others and relationship-building skills are among the most essential skills across job titles. Respondents across all job titles identify time management, negotiation, and personnel management as less important than other skills. Ability to influence others Relationship building Total Staff Manager Director Senior director VP and above Leadership skills Ability to work in teams Strategic planning (includes financial) Written communication Analytical skills Public speaking/presenting Time management Negotiation Personnel management skills Skills listed in order of the % ranked in the top 5 by the total sample. highest percentage lowest percentage 6 Profile of the Professionals 2013

8 Managerial responsibilities with limited staff Almost 70% of professionals have national or global responsibilities. Despite the predominant national or global scope of their corporate citizenship responsibilities, less than half manage teams of people. Among managers, 55% do not have direct reports. This finding reflects a practice where positions at the manager level and above are expected to accomplish their goals with matrixed structures. A lack of resources, including staff, is among the most challenging aspects of their positions. Geographic scope of corporate citizenship responsibilities Global 39 % 29 % 32 % National Local/ Regional How many people are you responsible for managing? 100 % 90 % 80 % 70 % 60 % 50 % 40 % 30 % None Fewer than 3 people 3 or more people 20 % 10 % 0 % Staff Manager Director Senior director VP and above 7 Profile of the Professionals 2013

9 Allocation of efforts Portion of time spent on corporate citizenship activities Percentage of respondents who spend time on an activity during a typical week Activities by categories with subgroups 21 % More than 0% but less than 50% Communication Community/Social investment Communication External communications Internal communications Reporting 100% 50 % Strategy General management Environment Community/ Social investment Corporate philanthropy (includes corporate foundation) Diversity Volunteer programs 29 % Governance 50% to less than 100% 0 % 20 % 40 % 60 % 80 % Strategy Strategy development and/or implementation Measurement Stakeholder engagement General management Department administration General management Staff supervision Environment Development of sustainable products and/or services Environment, health, and safety Supply chain management Governance Governance and ethics Investor relations Half of the professionals spend 100% of their time on corporate citizenship activities. Almost all reported spending at least some time on communication and community/social investment activities in a typical week. 8 Profile of the Professionals 2013

10 Time spent on reporting and measurement Measuring the impact of initiatives and programs in a way in which they can communicate results is a common challenge faced by those working in corporate citizenship. Less than 40%, however, spend any time on measurement. More than half spend some percentage of their time on reporting. Senior directors and managers are the most likely to spend time on measurement. Time spent on reporting and measurement in a typical week Reporting Measurement No time spent 25% or less More than 25% 0 % 10 % 20 % 30 % 40 % 50 % 60 % 70 % Percentage of respondents who spend time on measurement in a typical week Senior director Manager Staff VP and above VP and above Senior director Director Manager Staff Director 0 % 10 % 20 % 30 % 40 % 50 % 60 % 70 % 9 Profile of the Professionals 2013

11 Overall satisfaction with job A wide majority (80% or higher) are satisfied with their benefits, their company s corporate citizenship reputation, and job security. In both the 2012 and 2010 surveys, respondents were least satisfied with their opportunities to advance their careers. Satisfaction with specific job components Benefits Our company s corporate citizenship reputation Job security Availability of flexible work options Salary Feedback on performance Corporate communication/ transparency Work-life balance Corporate culture Team communication/ cohesiveness Professional development Workload Opportunities to advance my career 0 % 10 % 20 % 30 % 40 % 50 % 60 % 70 % 80 % 90 % 10 Profile of the Professionals 2013

12 Motivated by their mission Percentage of respondents who cited a particular reason among their top 3 for staying in their current position Total Staff Manager Director Senior director VP and above Ability to help positively affect social and/or environmental issues Challenging/Interesting projects Opportunities for growth/learning Impact on business Work environment Flexible work arrangement Salary Job environment (difficult to find another position) Job security highest percentage lowest percentage Almost three-fourths of those surveyed indicate that the ability to help positively affect social and/or environmental issues is one of their top three reasons for staying, followed by challenging/interesting projects. As job levels rise, respondents are more likely to identify impact on business as a reason for staying in their current positions. 11 Profile of the Professionals 2013

13 Compensation Professionals who earn more than $100,000 reached a high of 45% in 2012, compared with the earlier surveys. In the 2006, 2010, and 2012 surveys, about half of the respondents earn between $50,000 and $100,000. Annual base salary 60 % % % 30 % 20 % 10 % 0 % Less than $50,000 $50,000 to $99,999 $100,000 to $149,999 $150,000 and over 12 Profile of the Professionals 2013

14 The gender gap Women continue to trail men in their representation in senior corporate citizenship positions and in their annual base salaries. Job title by gender Annual base salary by gender The median salary range for men is $100,000 to $124,999 compared to $75,000 to $99,999 for women. This discrepancy in salary may be attributed in part to a greater proportion of male respondents holding more senior positions. Among the 154 men, 40% have the titles of senior director or vice president or above. By comparison, of the 446 women, 22% are senior directors, or hold vice president or above positions. 0 % 10 % 20 % 30 % 40 % 50 % 60 % 70 % 80 % 90 % 100 % Staff Manager Director Men: N=140 Women: N=417 Senior director VP and above 0 % 10 % 20 % 30 % 40 % 50 % 60 % 70 % 80 % 90 % 100 % Men: N=140 Women: N=417 Less than $50,000 $50,000 to $74,999 $75,000 to $99,999 $100,000 to $149,999 $150,000 to $199,999 $200,000 and over Percentage of senior directors with an annual base salary of at least $150,000 Percentage of VPs and above with an annual base salary of at least $200,000 0 % 10 % 20 % 30 % 40 % 50 % 0 % 10 % 20 % 30 % 40 % 50 % N=76 N=71 13 Profile of the Professionals 2013

15 Major challenges of working in corporate citizenship By a wide margin, the most common type of challenge is too much work with not enough time to do it. A lack of resources other than time is the next challenge. Perhaps more so than their colleagues in any other business function, those working in corporate citizenship face the challenge of demonstrating internally the value of their work. After their need for more time and resources, demonstrating value internally is their next biggest challenge. Not far behind is the challenge posed by the lack of a clear corporate citizenship strategy in the company, which may contribute to the challenge of demonstrating value. Most challenging aspect of current position Too much work, not enough time Lack of resources other than time Demonstrating the value of corporate citizenship internally Lack of a clear corporate citizenship strategy in company Personal learning curve or work/life balance Company culture does not support corporate citizenship Working across departments/lines of business Implementation of corporate citizenship programs Economic climate External stakeholder relations Taking corporate citizenship global Engaging employees Being in a new department or position 0 % 10 % 20 % 30 % 14 Profile of the Professionals 2013

16 Survey demographics Gender of respondents 2012 Age of respondents 55 and over Industry % of respondents % 28 % Under 35 Manufacturing % 10 % 20 % 30 % 40 % 50 % 60 % 70 % 80 % 90 % 100 % % 27 % Finance and Insurance Professional, scientific, and technical services, Real estate rental and leasing, and Holding companies Utilities Information Company revenue for prior fiscal year % of respondents Business type % of respondents Health care and social assistance Retail and Wholesale trade $25 billion and over $20 billion to less than $25 billion $15 billion to less than $20 billion $10 billion to less than $15 billion $5 billion to less than $10 billion $1 billion to less than $5 billion Business to consumer (B2C) Business to business (B2B) 35 % 15 % % 50 Both B2B and B2C Mining Transportation and warehousing services (including public administration and educational services) Less than $1 billion Not sure Arts, entertainment, and recreation, and Accommodation and food services 0 % 10 % 20 % 30 % Agriculture, forestry, fishing and hunting, Construction, and Waste and facilities management 0 % 10 % 20 % 30 % Note: Industries based on North American Industry Classification System (NAICS) 15 Profile of the Professionals 2013

17 About the Center for Corporate Citizenship at Boston College The Carroll School of Management Center for Corporate Citizenship at Boston College is a membership-based knowledge center. Founded in 1985, the Center has a history of leadership in corporate citizenship research and education. We engage 400 member companies and more than 10,000 individuals annually to share knowledge and expertise about the practice of corporate citizenship through the Center s executive education programs, online community, regional programs, and our annual conference. For more information, visit the Center s website at BCCorporateCitizenship.org. The 40-page Profile of the Professionals 2013 report features profiles of corporate citizenship professionals from Campbell Soup Company, Deckers Outdoor, The Dow Chemical Company, Green Mountain Coffee Roasters, Inc., Intel Corporation, Lubrizol Corporation, Maritz, Microsoft Corporation, Mondelez International (formerly Kraft Foods, Inc.), Old National Bank, Reebok, Texas Instruments, and Toyota. To view the entire report please visit the Center for Corporate Citizenship website at Center for Corporate Citizenship members, please contact Karen Hoff at karen.hoff@bc.edu, for a customized view of the Profile of the Professionals information related to your specific industry or other business demographic. 55 lee road chestnut hill, ma t: f: ccc@bc.edu