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1. About Burson-Marsteller

2. What is Corporate

Responsibility?

3. Why practice Corporate

Responsibility?

4. How to implement Corporate

Responsibility

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About

Burson-Marsteller

ABOUT US

Burson-Marsteller is a leading global public relations and strategic communications firm,

with our industry’s best professionals on the ground in six continents and more than 60

years of rolling up our sleeves and working to be our clients’ best partner. We’re part of

WPP, the world's largest communications services group with more than 150 companies in

advertising, consumer insights, branding and identity, digital, and other key marketing

disciplines.

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Pioneered

integrated

communications

Research at the

heart of

everything we do

Best global

network

available 24/7

The corporate

“go-to agency”

Experts in brand

development,

marketing and

strategy

History of

reshaping

industry through

thought

leadership

Wrote the book

on crisis

management

Showing impact

through

engagement in a

digital world

OUR GLOBAL NETWORK

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ASIA PACIFIC

EUROPE, MIDDLE EAST,

AFRICA (EMEA)

NORTH AMERICA

LATIN AMERICA

Regional Headquarters

Offices

Affiliates Offices

SOME OF OUR CLIENTS

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ABOUT JANE P. MADDEN

• U.S. Managing Director, Corporate Responsibility

• 25 years experience in sustainability spanning

corporate, multilateral and NGO sectors

• Former Partner, Environmental Resources

Management (ERM)

• World Bank Official for 12 years

• CARE, UNICEF

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CORPORATE RESPONSIBILITY

AT BURSON-MARSTELLER

We help our clients

transform their

companies from the

inside out through

enterprise-wide

strategies and

implementation for

environmental, social

and governance issues.

OUR STRATEGIC APPROACH

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CR is a business imperative and

must be linked to strategic

objectives

Ground platforms and programs in research and

evidence

Manage issues and mitigate risks

by setting clear goals – in addition

to metrics and tools to deliver on

them

Develop focused and transparent communications

through clear commitments, stakeholder

engagement and messaging

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What is Corporate

Responsibility?

MANY TERMS FOR CR

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Sustainable

Innovation

Corporate Social

Responsibility

Sustainable

Development

Sustainability

Think Green

Creating

Shared Value

Sustainable

Value

Citizenship Eco-

Imagination

Soul Sustainability

Corporate Citizenship

CR FUNDAMENTALS

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WHY

WHAT

HOW

KEY CR ISSUES TODAY

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Transparency

Socially

Responsible

Investing

Governance

Codes of

Conduct

Environmental

Footprint

(carbon, water,

waste)

Investor and

Stakeholder

Engagement

Supply Chain

(both

environmental

and labor issues)

Reporting &

Materiality

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Why Practice

Corporate

Responsibility?

What’s the

Business Case?

Corporate social responsibility is a hard-edged

business decision. Not because it is a nice thing to do

or because people are forcing us to do it...

because it is good for our business.

Niall Fitzgerald

Former Co-Chair and CEO, Unilever

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THE TRIPLE BOTTOM LINE

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PEOPLE PLANET PROFIT

THE BUSINESS CASE

FOR CR

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PEOPLE PLANET PROFIT

CR MATTERS TO YOUR BOARD,

INVESTORS AND

WORKFORCE

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82% of investors considered

climate change and/or

resource scarcity in future

investment decisions

Higher overall

engagement of employees who engage in

their company’s CR initiatives

COMPANIES ARE MOVING

FROM INTENTION

TO ACTION

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65% of companies develop

and/or evaluate

sustainability policies and

strategies at the CEO level

90% of company boards

discuss and act on

sustainability issues as part

of their regular agenda

THE MEDIA

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SOCIAL CONTRACT HAS

CHANGED

• Trust has never been lower

• Business is held accountable for our greatest social

and environmental challenges

• Increased scrutiny of the safety, ethics and the

social and environmental impacts of supply chains

• Increased regulation: Dodd-Frank; UK Modern-

Slavery Act; California Transparency in Supply

Chains Act; Paris Treaty

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EXPECTATIONS OF BUSINESS

HAVE CHANGED

• Increased expectation of transparency, data and

disclosure

• Millennials: Generation Z

• Responsibility leads to innovation, value creation

and mainstream investor interest

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COP21 AND THE PARIS

AGREEMENT • The 21st annual Conference of Parties

(COP21) UN Convention on Climate

Change in Paris

• Representatives from 195 countries

agreed to limit warming to 1.5C levels and

reduce global carbon emissions

• Commitments ranged from rallying behind

carbon pricing and setting science-based

emission reduction targets to responsible

corporate engagement and investments in

renewable energy

• More than 5,000 global companies

committed

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SUSTAINABLE DEVELOPMENT

GOALS (SDGS) • The United Nations (UN) targets

set for 2030

• Sustainable Development Goals

(SDGS) are 17 global goals to

end poverty, protect the planet

and ensure peace

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Mongolia’s President cites ‘essential’

nature of sustainable development, UN

goal to ‘leave no one behind’

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How to Implement

Corporate

Responsibility?

CR BEST PRACTICES

• Senior leadership and strategy

• Top down and bottom up approach

• Aligns with the company’s values and

mission

• Integrated with business drivers

• Company-wide (cross-department)

collaboration and integration

• Regular measurement and reporting

• Internal and external communication

• Strategic partnerships

• Engagement of stakeholders (internal and

external)

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COMPONENTS OF A CR

STRATEGY

• Asset Analysis

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R E S E A R C H

1 S T R A T E G Y

D E V E L O P M E N T

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E X E C U T I O N

3 A S S E S S M E N T

& R E F I N E M E N T

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• Business goals & strategy

• CSR initiatives

• Communications Strategy

• Trends & industry

analysis

• Competitor benchmarking

• Media Audit

• IDI’s

• Stakeholder Surveys

• Matrix

• Conduct Materiality Analysis

• Identify 5-year vision

• Develop SMART goals and

metrics

• Stakeholder mapping &

engagement

• Create CSR Council

• Organizational structure

and roles/responsibilities

recommendations

• Build 5-year CSR strategic

plan that is aligned with

business goals

• Develop a CSR narrative

• Develop refine CSR

programming

• Develop and execute

communications plan

• ESG reporting and

communications

• Deploy stakeholder

engagement plan

• Measure progress against

goals and metrics

• Determine upcoming

challenges and

opportunities to be

addressed by CSR strategy

• Review alignment with

global HQ, as appropriate

THE VALUE OF A MATERIALITY

ANALYSIS

• A materiality analysis is a map of ESG topics and their importance to stakeholders

(such as shareholders, employees, NGOs, etc.), versus their importance to the

company

• The analysis provides the information you need to disclose to investors and

stakeholders to inform their decisions about your company

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What is a materiality analysis?

• What ESG data should you disclose in your report?

• What is the best way to demonstrate the link between financial and non-financial

performance?

• Where can your organization streamline processes, reduce costs and improve

efficiencies?

• How should you frame long-term management strategy and plans?

Questions answered by a materiality analysis

WHY IS MATERIALITY

IMPORTANT TODAY?

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Our rules and guidance are clear that, to the extent

issues about sustainability are material to a

company’s financial condition or results of

operations, they must be disclosed.

Mary Jo White

Chair, Securities and Exchange Committee

MATERIALITY MATRIX EXAMPLE:

CAMECO

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MATERIALITY MATRIX EXAMPLE:

TECK RESOURCES

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Reporting &

Disclosure

Benefits of Reporting

●COMMUNICATION

oSuccinctly highlights CR leadership to diverse audiences such as

employees, consumers, analysts, raters & rankers

oSaves time; one document compiles all relevant CSR information

●ENGAGEMENT

oPrompts internal dialogue and action toward CSR

oCredibly addresses stakeholder/consumer

expectations

oBuilds trust and educates

●BUSINESS STRATEGY

oDrives innovation by identifying opportunities

o “What gets measured gets managed”

oMitigates risk by identifying vulnerabilities

●MOTIVATION AND RETENTION

oAttracts, keeps talent

CSR Reporting Trends

●Data is king

●Heightened investor attention

●Non-financial, ESG data as important

as financial data

●Integrated reports (

●Legislation requiring reports in South

Africa, France, Denmark

●SASB joins the standards crowd in

U.S.

●Digital reports

●Raters & Rankers use publically

available ESG data

BEST IN CLASS

REPORTS • Annual

• CEO statement

• Credible ESG data

• Materiality: significant and relevant to core business

• Integration: connections the company’s business strategy with its CR

strategy

• Transparency: open about business practices and the approach to

ESG issues; includes failure as well as success

• SMART Goals and targets: guides expectations for future performance

• Verification: third-party assurance

• Stakeholder input and review: give voice to supporters and critics

process

• Digital: web-based access and social media allow for just-in-time

updates and reaches a larger audience

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Case Studies:

Leaders in CR

HOW COMPANIES ARE STANDING

OUT

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Include breakdown of GHG emissions by scope, especially

in supply chain-heavy industry

Include targets and goals throughout report that are tied to CR pillars

Include sustainability performance of suppliers and list

names of Tier 1 suppliers

Include specific challenges and goals in leadership messages

Contextualize sustainability performance against industry

Commit to setting science-based targets; companies who have done

this include (but are not limited to): Walmart, Mars, Nestle, Unilever,

L’Oreal, Kering, Ikea

GHG Emissions

CR Pillars

Supply Chain Reporting

Leadership Messages

Benchmark

Science-based Goals

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Successful

Signature

Programs

COCA-COLA’S 5BY20

Primary strategy has been to

tell 5by20’s story through the

eyes of women who have been

impacted by the initiative. Coke

has done this is by participating

in Nicholas Kristof and Sheryl

WuDunn’s Half the Sky

documentary, involvement of

5by20 participant

Malehlohonolo Moleko in a

TEDxWomen talk, media

briefings with top-tier reporters,

redesign of www.5by20.com

and using its editorial-focused

website, Unbottled blog, and e-

mail campaigns to feature

participant stories.

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Communications

This has been an initiative that

has been led and advocated for

from the top levels of the

company. TCCC Chairman and

CEO Muhtar Kent and

Women's Economic

Empowerment Global Director

Charlotte Oades have engaged

the media and target audiences

at events and other forums,

articulating the value and

purpose of the initiative.

Executive Support

To be successful, 5by20

requires stakeholders from

across the value chain. One of

the ways the company is

engaging is through

stakeholder meetings that have

been held in Washington, D.C.,

London and Paris to update

and engage leaders on

women’s economic

empowerment and 5by20.

Stakeholder Engagement

To be successful, 5by20 requires stakeholders from across the value chain. One of the ways the

company is engaging is through stakeholder meetings that have been held in Washington, D.C.,

London and Paris to update and engage leaders on women’s economic empowerment and 5by20.

GOLDMAN SACHS 10,000 WOMEN

The signature program is

powerful because it is focused.

It is not trying to be everything

to everyone – it clearly chose to

focus on women entrepreneurs

in emerging economies.

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Well-Defined Social Issue

10,000 Women was facing a

big task, so their partners and

advisors needed to be up to the

challenge. Research from

Goldman Sachs, the World

Bank and others suggested an

investment in women can have

a significant impact on GDP

growth – that’s what the

initiative was founded on. Along

the way, other partners

included Yale University, the

Aspen Institute, CARE, Ashoka

and others.

Research

It opened markets for Goldman

Sachs by developing an

educated workforce in

emerging economies and,

importantly, served to bolster

the company’s reputation after

the financial crisis.

Aligned to Business

In 2008, the 10,000 Women initiative was launched by the Goldman Sachs Foundation

to educate women entrepreneurs in emerging economies. The initiative was designed

to provide a business education, access to mentors and networks, and links to capital

for 10,000 underserved women operating small businesses. By the close of 2013, the

initiative had enrolled its 10,000th woman.

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Unsuccessful

Signature

Programs

STARBUCKS’ RACE TOGETHER

Starbucks did not have the

credibility, license or to convene

a conversation on race. It’s not

a core competency for a coffee

company/retailer. Nor was it an

explicit concerns for

stakeholders (until Starbuck’s

inadvertently brought attention

to its own diversity issues).

Critics, including baristas,

consumers and other

stakeholders viewed Starbucks

as opportunistic by trying to

tackle a serious social issue for

its own economic gain.

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Lack of Authenticity

Starbucks didn’t think through

how its people were going to

talk about race in a 30-second

business transaction.

Employees were on the front

lines of volatile, complex issues

and were unprepared to

respond.

Poor Program Management

Starbucks didn’t think through

how its people were going to

talk about race in a 30-second

business transaction.

Employees were on the front

lines of volatile, complex issues

and were unprepared to

respond.

Lost Narrative

Howard Schultz and Starbucks began the “Race Together” campaign in

early 2015 and received significant criticism. A closer look reveals several

pitfalls and considerations.

NFL’S PINKTOBER

In 2014, Washington Post,

Jezebel, Deadspin and other

outlets started outing the NFL

for only giving 8-12% of sales

of pink products – easily the

most mainstream part of the

Pinktober efforts.

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Lack of Transparency

The NFL was also accused of

pink-washing and being part of

the fear mongering around the

issue of breast cancer in its bid

to try to appeal to a more

female audience. It was

accused of doing the program

as a PR stunt only because it

lacked authenticity.

Not Aligned with Business

When the NFL had several

domestic violence incidents, the

pink affiliation was again called

into question. It appeared to be

insincere by not addressing its

domestic violence issues

quickly.

Missing Credibility

The National Football League (NFL) jumped on Pinktober in 2009, partnering with the

American Cancer Society and corporate sponsors to outfit players, fans and the field in

all-pink uniforms and memorabilia. Pinktober provided free or low-cost screenings in

underserved communities. However, the NFL took heat over the amount money

actually going to cancer research and the effectiveness of the “Crucial Catch”

awareness program.

THE NFL’S PINK OCTOBER

DOES NOT RAISE MONEY

FOR CANCER RESEARCH

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Q&A

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Appendix

THE LANDSCAPE CONTINUES

TO EVOLVE

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2000-2005 2006-2010 Today & beyond

ENVIRONMENTAL COMMITMENTS

SOCIAL ADVOCACY

REPORTING

GOVERNANCE

MEDIA Press release drives

media attention

Mainstream media steer

public opinion; select group of

sustainability reporters;

stories focus on LEED

CR stories must be unique;

business innovation and results

drive media attention

Fringe leadership;

grassroots; an add-on

Mid-level management

Environment- or

community-focused

Global Reporting Initiative (GRI)

Indicators focus on triple bottom line

One-off donations;

volunteerism

Cause marketing

campaigns

Long-term commitment on

targeted issues; activism

Not an issue (for most) or an isolated risk

Voluntary and nice-to-do, or linked to other operational issues

A competitiveness driver; leadership opportunity and

expectation

Greater demand for transparency and

disclosure focused on materiality; GRI

(G4), SASB, IIRC; conflict minerals

reporting to SEC; digital reporting;

year-round narrative

C-Suite and BOD engagement,

responsibility and leadership;

emergence of the CSO role

WHO ARE YOUR

STAKEHOLDERS? • Customer (B2B)

• Consumer (B2C)

• Employees and their families

• Future talent

• Investors

• Vendor (Distributors, Suppliers, Outsource, etc.)

• Community representatives

• Activist NGO’s (Greenpeace, PETA, ENOUGH)

• Resource owners/users

• Governments

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Small- and Medium-Sized Enterprises (SMEs) Bring

Innovation ●Uses sustainable packaging;

introduced TerraSkin™ Wraps

●Water and energy conservation

●Employee recycling initiatives

●Bought by Clorox in 2007 for $925M

●Uses cage-free and free-range eggs

●Phased in Forest Stewardship Council

certified paperboard for pint packaging

●Assists farmers to improve practices

against 11 sustainability indicators

●Bought by Unilever in 2000 for $326M

●PET fully-recyclable bottles

●Directs funds to renewable energy sources

●Converts used drink pouches into reusable

items

●Bought by Coca-Cola in 2008; 40% share for

$43M

B CORPS

• For-profit companies

• Certified by the nonprofit B Lab to meet rigorous standards of environmental,

social and governance (ESG) performance, accountability and transparency

• Legally required to meet ESG standards and fulfill their fiduciary responsibility

• Volunteer certification scheme

• B Corps measure and report their social and environmental performance against

a third-party standard

• Under most state laws, B Corps must include social and environmental goals in

their bylaws and produce an annual report including an update on their

achievements toward those goals

• Most B Corps are privately held and are small/medium-sized enterprises, but

more, larger and publicly traded companies are joining the movement

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