mba 292 3.4.09 professor mcelhaney. deloitte survey /white paper highlight the growing role of the...
TRANSCRIPT
MBA 2923.4.09
Professor McElhaney
Deloitte Survey /White Paper Highlight the Growing Role of the Board in CSR and Climate Change 220 directors at U.S. companies with $1 billion or more in
revenue
79% have a strong or moderate understanding of the business risks associated with CSR and climate change
76% have a strong or moderate understanding of the business opportunities associated with CSR and climate change
50% think their boards and management are committed to addressing CSR and climate change
50% think their companies’ response to CR&S is integrated into business strategy and risk management
41 % report no such integration
March 9 Guest speaker: Biz Stone, Twitter co-founder: Power of Social Technology
March 11 Corporate Green & CSR Strategy Analyses Due March 16 Guest speaker: Mark Heintz, HP: Community/stakeholder
Engagement March 18 Mid semester project presentations March 23-27 Spring break March 30 Limitations of CSR April 1 Guest speaker: Michael Kobori, Levi Strauss & CO: Opportunities
in Supply Chains April 6 CSR, change management, and organizational structure April 8 Social Intrapreneurship April 13 Guest speaker: Matt Kistler, Wal-Mart: CSR & Leadership April 15 CSR and Innovation April 20 DeBeers Case April 22 Practice presentations April 27 Final presentations April 29 Final presentations May 4 Final presentations May 6 Final presentations May 11 CSR Elevator Pitch, PSRs, Wrap Up
Key Learnings?
Missing Pieces?
1. Know Thyself2. Get a Good Fit3. Be Consistent4. Simplify5. Work from the Inside Out6. Know Your Customer7. Tell Your Story
Pedigree: Enhances Brand
Sign in Dreyer’s Ice Cream Scoop Shop, Berkeley, CA
Hartman, 2009
Doing the right thingfor the Greater Good.
Purchases, non-purchases,voting & volunteerism.
Journey that begins with attitude change, then behavioral changes.
Consumers must first be concerned that something they value (condition of environment, economy, ethical treatment of others) is at risk
More recently, sense of hope for the future and a desire to do and feel good more inspiring
In me,On me,
Or around me (or my kids).
Highest Product Categories: 1. Food & beverages2. Personal Care 3. Household Cleaners
-Shaping the New Rules of Competition, UN Global Compact Participant Mirror,
GS Sustain, Highlights from the BBMG Consumer Report
Females (employees, consumers, investors)
Millennials/Gen Y’ers Ages 8-24 (cause focus)
LOHAS/ Ethical Consumers
More educated
More diverse (gender, sexual orientation, ethnicity)
More affluent (enter Walmart)
Want to be engaged, want to perform quick action
Knowing your Consumers
Source: Co-Operative Bank, 2006 Ethical Consumerism Report
More likely to buy from companies that:
Manufacture energy efficient products (90%)Promote health & safety benefits (88%)Support fair labor & trade practices (88%)Commit to enviro-friendly practices (87%)
Source: MORI 2008
89% said they are likely to switch brands if linked to cause
83% will trust company more if socially responsible 79% want to work for company that case about and
contributes to society 78% believe that companies have responsibility for
making a difference in the world 74% more likely to pay attention to a company’s
overall messaging when they see that company has deep commitment to cause they care about
69% consider companies’ CSR reputation when deciding where to shop
61% feel personally responsible for making a difference in the world
56% would refuse to work for an irresponsible corporation Source: 2006 Cone Millennial Cause Study
WOMEN more likely than men to:
Volunteer in their local communities
Investigate a company’s environmental/ social reputation before making a purchase
Invest in companies screened for different criteria including environmental practices, the hiring and promotion of women and minorities, labor practices and tobacco manufacture
Factor CSR when job-searching
Purchase a product with a percentage of profit earmarked for charitable donation
Participate in company sponsored social programs
More likely than men to:
Indicate that it is important to ensure that workers inside and outside the U.S. are paid a living wage (68 percent versus 57 percent).
Give corporations a “poor” rating for current CSR performance (18 percent versus 11 percent of men). Men are far more likely than women to rate companies as “excellent” or “good” (31 percent versus 13 percent, respectively).
Indicate that it is extremely important for companies to make relevant donations to charities and philanthropies (27 percent versus 19 percent, respectively).
Source: Fleishman Hillard – National Consumers League Study, “Rethinking Corporate Social Responsibility,” 2006
Women make over 80% of purchasing decisions in the United States (and influence most others)
Women are less likely to act impulsively on brand loyalty, and are more likely to do research and weigh information before making purchases
Source: Faith Popcorn and Lys Marigold, 2000
March 2008, Goldman Sachs launched new initiative
Will provide 10,000 women in developing countries and emerging markets with educational opportunities in business &
management
Partnership with American & European universities
Will contribute $100 million over five years, plus time & effort of employees
Cannot be a stand-alone branding strategy
Has to mirror current (or new) branding attributes
Has to be combined, and linked to, price, quality, convenience
Has to be linked to “Good for You” [consumer] first, then can expand to rivers, labor, climate
Will not be effective unless communicated, throughout marcomm channels, and at POS