It’s not all about the PR – CRO Conference

Kudos to Jay Whitehead and The CRO team for rallying up the diverse panelists, attendees and topics at last Thursday’s corporate responsibility conference. No wonder Jay’s impressive moderation stamina is attributed to running marathons. Focus is the name of the game, after all.

Notable company CSR initiatives and discussion topics included reducing water, waste and energy consumption, philanthropic and community support, health and safety, labor practices and Sarbanes Oxley compliance.

‘Slay False Gods’ could not have been a more appropriate term stated by Douglas Baker, CEO & Chairman of Ecolab. The major takeaways of the day were all about stepping out from under the veil, getting real about the issues and sustainability.

It goes without saying that CEO’s of companies need to make profit and justifying the business reasons for CSR still remains a challenge for some. CSR should be considered a long-term solution, rather than a short term gain – still the current mindset. However, companies are making major strides towards changes in business operations and transparency - and rightly view this as an ongoing ‘improvement’ process.

Following is some ‘food for thought’, as companies continue to evolve in this new management paradigm:

Call for greater leadership: CSR programs need to be endorsed at the top, as a key part of the corporate agenda, and then infused throughout the organization - business, marketing and communications. How else can we rally the troops?

Stakeholder liaisons: Harness the power of key stakeholders and communicate with them regularly. Solicit the knowledge and opinions of customers. It is also a powerful tool to track and influence patterns of behaviour.

Sustainability: Adopt business practices and create programs that are for the long term. To coin the old phrase – ‘Rome was not built overnight.’

Company culture and values: Conduct a cultural assessment of employees and poll them about social causes of most concern to them. Then, include them in initiatives as a motivational incentive. Several companies have demonstrated improved employee performance and satisfaction.

The PR machine: Stakeholders want the facts and PR should be engaged at the right stage of CSR program evolution. Also, ensure authentic positioning, messaging and proof points. It is a vital component of risk mitigation and will enhance recognition and acknowledgement for a company really 'Doing Good in Society.'

Board's Eye View of CSR

Practitioners, thought leaders, and companies from CRO magazine's '100 Best Corporate Citizens' will be convening at the Marriott Financial Center in New York on May 10 for CRO's Spring Conference. The focus will be on successful corporate social responsibility strategies for protecting and growing companies.

Keynote speakers include Tim Solso, CEO and Chairman of Cummins and Douglas Baker, Jr., CEO and Chairman of Ecolab.

Research conducted by the Social Investment Research Analyst Network (SIRAN) and KLD Research & Analytics, Inc. (KLD) on environmental and social performance reporting of US companies, recently reported that nearly half (49) of US companies in the Standard & Poors (S&P) are now disclosing information about their environmental, social and governance (ESG) performance. That is a 14% increase of S&P 100 companies issuing reports over the previous year's study.

Another milestone reached in the evolution of this new management paradigm as companies respond to the widespread demand for greater transparency.

Myself and fellow trustmeister Jarvis Cromwell will be attending and report back on developments, case studies and trends. So, stay tuned for a candid take....

For more information on the conference agenda -- www.thecro.com/conferences.

Not-for-Profit Spotlight - Broadway Theatre Project

Broadway Theatre Project, founded in 1991, is a musical theatre arts education program for high school and college students. Each year BTP, under the artistic direction of Debra McWaters, selects 180 aspiring young actors, dancers and singers by audition, from around the world, to attend an intensive three-week program every July at the University of South Florida. Master classes have been taught by stars such as Julie Andrews, Ben Vereen, Jeff Goldblum, and Patrick Wilson among others. For further information and sponsorship of this years program go to www.broadwaytheatreproject.com.

Just do it

I spoke last week with a senior ad executive who told me that her company had won a substantial global piece of business because they had been able to provide – on request - an existing CSR presentation that addressed all aspects of their business and client relationships. None of their competitors had established a CSR point of view. Their big thinking had paid off handsomely with a relatively small amount of effort.

I suggest that all new business and client relationships should by default include an understanding of the CSR positions of both sides. And all corporate departmental planning and budgeting should be required to include a CSR component. This can start small – it needn’t be hard. As Sam says it can take its cue from shareholders and employees – this has the potential for dramatically improving those bonds of loyalty. Weave it into the existing systems of a business and it will become engrained. It will make managers and buyers feel good and it will make them think anew about their company’s position in the larger world.

The upside is huge for corporations and for the world.

Michael Pollock
President, The Cyrano Project (www.cyranoproject.org)

Navigating the 'CSR Buzz' for Reputation Advantage

Advancing society's interests is influencing investment decisions globally due to the increasing power of consumers and employees advocating for their favorite brands to be more transparent and accountable for their business operations.

Against the backdrop of our lowest trust environment ever, caused by a polarized political climate, disturbing world events, untrustworthy social and business practices, companies are being further impacted in an already challenging operating environment - creating a 'show and prove it' to me marketplace among key stakeholders.

In fact, according to research conducted by Gallup International, 62% of people around the world do not trust large national or global companies to operate in society's interest.

As a result, CEO's and their management teams are being increasingly bombarded with multiple issues that need to be addressed such as compliance, governance, environmental responsibility, diversity, responsibility-driven marketing, as well as accountability for their charitable contributions. All in conjunction with providing healthier returns for investors.

With e-marketing and 'Word-of-Mouth' marketing further driving stakeholder empowerment and demand for greater transparency, companies need to engage with their social purpose as both a necessity and business opportunity.

'Conscious Commerce,' now a $31.7 billion services market, is the evolution of a management paradigm for CEO's and their management teams to help safeguard a company's reputation and business operations. Also, it is a vital extension to the corporate agenda.

Early adopters such as Patagonia and Microsoft, who created and implemented sustaining programs, have enjoyed positive results and well deserved acknowledgement. While other companies have been quick to postpone costs and and/or are flocking to the cause with fragmented approaches that can lead to consequences down the road.

From the outset, it is critical to identify and prioritize social issues that matter the most to stakeholders. Then, properly align them with a company's reputation management and performance.

Companies that implement sustaining, long-term programs will mitigate reputation risk and harm to its business, people and the environment. Also, they will win back stakeholder trust and loyalty, boost performance and competitive edge.