deriving value from corporate responsibility through community engagement

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Deriving Value from Corporate Responsibility through Community Engagement

A three-page excerpt from our 17-page Best Practice Guidebook:

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guidebook summaryFirm: Intel Corporation

Industry: Semiconductors and Related Device Manufacturing

Headquarters: Santa Clara, California, United States

Geographic Footprint: Global

Ownership: Public

Revenue (2009): $35.13 billion USD

Deriving Value from Corporate Responsibility through Community Engagement

Problem: Intel oversees a number of corporate responsibility1 initiatives focused on community2 engagement, but needs to integrate these activities within the company’s larger set of strategic objectives.

Solution: Intel develops a measurable, community engagement approach—a critical element of its corporate responsibility strategy—by:

Performing needs assessments to identify community engagement •opportunitiesTailoring community engagement tactics to Intel’s objectives (i.e., •entering, building long-term relationships with, or exiting the community)Investing in the people, process, and tools needed to manage •community engagementEmploying a three-tier categorization process to govern partnership •development

Business Results:Global brand recognition—Intel moved from 9th most recognized •brand to 7th in 2009Reputation and credibility—Intel has received hundreds of •awards and recognition for its corporate responsibility and community engagementCommunity receptivity—Intel is positioned for growth in established •communities where it has a social “license to operate”

Resources Required: Dedicated staff, supplemented by part-time volunteers to manage •the programsVolunteerism web site to increase knowledge management •Dedicated budget for community engagement programs such as •grants and memberships

Applicability of Best Practice to Executive Functions:

Function Applicability

CEO/Leadership

Corporate Strategy

Best Practice Guidebook

1 Corporate Responsibility is defined as “doing the right thing” while creating value for the company, stakeholders, and society through cost reduction, conservation, risk minimization, employee investment, community engagement, and partnership cultivation.

2 Community is defined as towns, cities, and neighborhoods where Intel maintains a manufacturing plant or office.

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best practice guidebookgrowth team m e m b e r s h i p™

Source: Intel Corporation; Growth Team Membership™ research.

Intel creates a comprehensive community engagement program to enhance company reputation, align initiatives, and improve the bottom line

Community Engagement Program Components

corporate responsibility ownership

Corporate Affairs is responsible for developing and implementing the corporate responsibility strategy. In Intel’s case, Corporate Affairs “owns” CR because of its legal knowledge and previous role in an environment, health, and safety initiative that was a precursor to Intel’s current corporate responsibility program. More broadly, companies should consider the following questions when nominating a group to oversee corporate responsibility:

Does the function have an executive with a 1. passion for CR?Does the executive/function have access to 2. C-level management?Does the function possess subject matter 3. expertise that could aid the company’s CR strategy?Do executives within this function intuitively 4. grasp the business imperatives and CR issues that direct the company’s CR strategy?

Education Environment

Corporate Responsibility (CR) Strategy

Purpose: Establish a foundation for community engagement by:Identifying three core components of CR based on capabilities, potential impact, and opportunities•Analyzing community feedback, media trends, and benchmarking data on an ongoing basis•

Community Engagement

Purpose: Conduct community needs assessments—based on the stage of the relationship with the community—to determine the most appropriate approach to community engagement.

Entering the community Long-standing operations within the community Exiting the community

Design programs that will increase community receptivity

Establish ongoing, two-way dialogue to gather feedback and identify emerging challenges

Manage the community response to site closures

Employee Volunteerism Community Partnerships

Purpose: Promote and monitor employee community volunteerism and align resource allocation with CR strategy.

Purpose: Steward partnerships with government, non-government organizations (NGOs), and special interest groups to enhance community engagement and meet strategic objectives.

Three Core Focus Areas

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best practice guidebookgrowth team m e m b e r s h i p™

Source: Intel Corporation; Growth Team Membership™ research.

key takeaway: Design a corporate responsibility strategy that leverages core capabilities and opportunities

Intel identifies three core components of its corporate responsibility (CR) strategy…

Three Core Components of Corporate Responsibility Strategy

…and reassesses the strategy annually

Annual CR Strategic Planning Process

Education Education was chosen because of its universal appeal to stakeholders, Intel’s contributions to education technology, and for affiliated opportunities to teach customers to use Intel products and to upskill the talent pool.

EnvironmentEnvironment was chosen because of global concerns over environmental impact, health, and safety and their effect on corporate reputation. Furthermore, Intel’s technological expertise positions the company well to address environmental issues.

CommunityCommunity was chosen to focus on local issues, create specialized programs by site or region, and improve efficiency, reputation, and credibility.

TimeFor example, in permit applications for site expansion, Intel must identify and address environmental and community concerns. Since Intel is already engaged with the community on those topics, issues can be identified early and permit review time can therefore be reduced.

ReputationIntel’s corporate reputation is enhanced through ongoing community interaction. Through a community perceptions survey, Intel can anticipate threats to its reputation and create benchmarks for internal monitoring.

CredibilityEngagement with community leaders bolsters Intel’s credibility as a responsible and ethical company, since these individuals can influence the opinion of many other stakeholders in their network.

Corporate Responsibility Strategy

Step 1. Identify the Right ToolsCorporate Affairs determines the feedback tools and stakeholder engagement activities necessary to assess the business environment based on:

Prevalent community issues•Changes in the site, such site expansion •or contractionChanges to corporate strategy•

Step 2. Gather and Evaluate FeedbackCorporate Affairs employs a combination of the following resources to assess the business environment and identify trends and emerging issues:

Community surveys•Post-program assessments and reviews•Focus groups, informal networks, and media trends•Benchmarking data•

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Step 3. Update CR StrategyCorporate Affairs and Site Management meet to:

Adjust goals and strategies•Include additional goals or programs based on •community needs and changes in strategySet each site’s CR budget for the year•

In addition to annual planning, Corporate Affairs holds ad hoc meetings to reassess and update the CR strategy if the site or focus areas change significantly, or if Intel plans to enter a new site.



Register for the Webinar

Deriving Value From Corporate Responsibility through Community Engagement

GTM and Ann Hurd, Corporate Affairs Manager at Intel, present this best practice where Ann shared her key lessons learned and participated in a Q&A.

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deriving value from corporate responsibility through community engagement

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