why corporations invest in corporate social responsibility

www.krcresearch.com

www.krcresearch.com 2impact.webershandwick.com

Table of Contents

Research Methodology 3

Executive Summary 4

Strategic Implications 5

Detailed Findings 6

Respondent Profile 13


Research MethodologyDates of interviews: October 6th – October 22nd, 2010

Survey mode: Telephone

Sample: 216 Fortune 2000 Corporate Executives with Program or Communications Oversight for Corporate Philanthropy, Social Responsibility & Community Relations

Margin of error: +/- 6.8 percentage points at the 95% confidence level

Notes: Numbers may not total 100% due to rounding


Executive Summary• Having an impact on critical issues is the number one reason why corporations invest

in philanthropic or socially responsible activities• A second reason for funding CSR is to see an organization’s values in action (25%)• Having an impact on issues (30%) outranked several more business-oriented

motivations, such as building customer loyalty (15%), differentiating a company from competitors (6%) and engaging and retaining employees (4%)

• Nearly 80% of executives say they fund nonprofits as part of their CSR, and 73% say nonprofits bring expertise that help CSR programs to thrive

• Most (72%) say nonprofits make their CSR investment more effective, provide a critical foundation and infrastructure (73%) and help engage consumers (71%)

• Executive support is a top success factor, with 94% of respondents saying strong and vocal support from senior management is important to the success of CSR

• A sizable majority (80%) agree that a focus on a specific issue or area is important


Strategic Implications• The findings of this research offer insights into how corporations can maximize

the impact of CSR programs. Key implications include:– Companies should focus on critical community issues where they can make the

maximum impact and align resources and expertise – Nonprofits provide expertise, infrastructure and help engage consumers – they will

continue to be important partners in advancing CSR efforts – Companies may have broad CSR portfolios, but what matters more is that they have

well-designed programs designed to foster genuine change on issues– Successful CSR programs require early and active support from senior executives,

particularly to help sharpen the focus of CSR and define clear objectives– CSR programs have multiple internal and external stakeholders – and

communications and community engagement should work together


Companies are most focused on impactAbout a third of executives agree the primary reason to invest in pro-social

or CSR programs is to make an impact on critical issues.

It's an opportunity to make an impact on critical issues

It's a way to demonstrate our values in action

It's a smart decision for our business

It's a way to build loyalty among customers

It's a way to differentiate us from competitors

It's a way to engage and retain employees

30%

25%

18%

15%

6%

4%

In your opinion, what is the primary reason your company invests in pro-social or CSR programs?


Almost 6 in 10 executives say their company provides funds for nonprofits.

Nonprofit partners are vital to CSR successMost see great value in funding nonprofits as partners in CSR efforts.

The majority also agree that nonprofits are valuable partners for CSR efforts.

Yes, extensively Yes, moderately Yes, minimally No

20%

39%

19% 21%

Completely agree

Somewhat agree

Neither agree nor disagree

Somewhat disagree

Completely disagree

38%41%

19%

0% 0%

59% 79%

Does your company fund nonprofit organizations to advance your CSR or pro-social efforts?

Do you agree or disagree that nonprofits are valuable partners in CSR efforts?


0%

-5%

-3%

-3%

0%

0%

-1%

0%

26%

25%

25%

24%

46%

48%

45%

50%

Funding nonprofit partners makes organizations more

effective in their CSR effortsNonprofits provide the

foundation and infrastructure for effective CSR programs

Nonprofits help engage consumers in CSR efforts

Nonprofits bring expertise that help CSR programs to

thrive

Somewhat disagreeCompletely disagree Somewhat agreeCompletely agree

Nonprofits bring real value to CSR effortsExecutives see multiple ways companies can work with nonprofits to

improve CSR efforts.

NET Agree

Neither agree nor disagree

72% 26%

73% 21%

71% 24%

73% 23%

Now I am going to read you some statements about working with nonprofit organizations on CSR or pro-social programs. Please tell me if you completely agree, somewhat agree, neither agree nor disagree, somewhat disagree, or

completely disagree.


-6%

-7%

-13%

-16%

-17%

-15%

0%

-1%

0%

-2%

-3%

-2%

44%

41%

32%

31%

30%

28%

50%

50%

54%

52%

50%

55%

Strong and vocal support from senior management

Well defined objectives and desired outcomes

Employee engagement, participation

Focus on a specific issue or area

Customer engagement, participation

Non-profit partners with expertise and credibility

NET Important

94%

91%

86%

82%

80%

83%

Somewhat importantNot too important Very importantAbsolutely critical

Senior-level support and clear goals are keyOver 9 in 10 feel the support of senior management and having well defined objectives

for programs are the most important aspects of organizations’ CSR efforts.

Here is a list of potential elements of CSR or pro-social programs. For each, please tell me how important you feel they are to successful CSR or pro-social programs – absolutely critical, very important, somewhat important, or not too

important.


Key lesson is that CSR shows commitment Most frequently, executives feel CSR programs demonstrate a commitment to

serving the community.

Demonstrates commitment and helps serve the community

Builds loyalty and trust, creating a closer relationship with customers

Boosts perception of company, reaffirming positive image

CSR makes a positive difference

Has to align with company image

Support needed from senior management

Keeps us focused as a company

Enables is to identify new ideas/issues

Attracts new customers

Differentiates us from competitors

34%

15%

14%

13%

7%

5%

4%

4%

3%

3%

What is the most important lesson your organization has learned about implementing CSR or pro-social programs?


“It helps to inform people everywhere of our beliefs and spreads help all across the country with people who feel the same way as we do. Together we have learned we are a powerful combination and we will bring about change.”

“Pro-social programs help separate the company from others in the same industry on a respected level among customers and audiences.”

“We have learned how much a little help can impact the communities that we work in. Additionally, that people appreciate when large corporations show their human side.”

“Being committed to our communities builds a bond with consumers and they are more likely to favor us if they see our employees giving back to the community. This is essential to achieving excellence.”

“To show how loyal we are as a business and to show that we have both good values and smart actions as our business shows potential growth.”

Corporate Executives respond…

Lessons learned from CSR effortsWhat is the most important lesson your organization has learned about implementing CSR or pro-social programs?


Appendix: Respondent Profile


Respondent ProfileJob Title

EVP/SVP/VP/Director of Communications 36%

EVP/SVP/VP/Manager of Community Relations 25%

CEO/President/Executive Director of Corporate Foundation 14%

EVP/SVP/VP/Director of Corporate Social Responsibility (CSR) 13%

EVP/SVP/VP/Director of Social Media 7%

Chief Financial Officer (CFO) 4%

Other 2%

Role in Organization’s Communications Efforts

Part of a senior team responsible for CSR efforts 38%

Influential by giving input on CSR efforts 32%

Directly manage or oversee all CSR efforts 30%

Main Focus/ResponsibilityCommunications overall 33%

Community relations 23%

Corporate social responsibility 19%

Corporate philanthropy 19%

Social Media 6%

Other 0%Primary Focus on Corporation’s CSR WorkEnvironmental sustainability 22%

Economic development 10%

Education 10%

Global development 10%

Children and family issues 9%

Health and nutrition 7%

Arts and culture 4%

Multiple issue-focused 26%

Other 1%

GenderMale 51%

Female 49%


FOR MORE INFORMATION:

PAUL MASSEY, [email protected]

STEPHANIE BLUMA, [email protected]

COLIN MOFFETT, [email protected]

VICTORIA SNEED, [email protected]

JONATHAN BENTLEY, [email protected]

KRC Research700 13th Street NW

Washington, DC 20005

mailto:[email protected]





why corporations invest in corporate social responsibility

Business