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June 18-19, 2009 | Hyatt Regency Chicago Sponsored by.

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Presentation on theme: "June 18-19, 2009 | Hyatt Regency Chicago Sponsored by."— Presentation transcript:

1 June 18-19, 2009 | Hyatt Regency Chicago Sponsored by

2 American Cancer Society Impact Conference Bradley Googins PhD Director Emeritus Center for Corporate Citizenship Associate Professor Carroll School of Management Boston College Engaging Employees and Corporations As Citizens

3 A new and urgent problem? I see in the near future a crisis approaching that unnerves me and causes me to tremble for the safety of my country…corporations have been enthroned and an era of corruption in high places will follow, and the money power of the country will endeavor to prolong its reign by working upon the prejudices of the people until all wealth is aggregated in a few hands and the Republic is destroyed. Abraham Lincoln, 1864

4 A Time of Uncertainty and Turbulence

5 Where are we now? February 16, 2009

6 Business: As Problem? Eisman knew subprime lenders could be scumbags. What he underestimated was the total unabashed complicity of the upper class of American capitalism. M. Lewis, The End. Porfolio, December 2008

7 Business: As Solution?

8 Why Is Business Involved in the Community? Business initiatives to promote direct business interests in alliance with community organizations research in universities cause-related marketing employee health provision, e.g., HIV/AIDS Strategic community investments to support the long-term success of the business and to promote the public good support for education housing economic development the arts Charitable gifts to promote the public good: local requests matched employee gifts Board service Direct business interests to improve performance and promote the business and its brands Intelligent self interest (win-win) companies need a healthy, prosperous society in which to do business Moral responsibility making a contribution to the community

9 Development of Citizenship Stage 1 Compliant Stage 2 Engaged Stage 3 Innovative Stage 4 Integrated Stage 5 Transforming Engaging the Environment Issues Management DefensiveReactive, Policies Responsive, Programs Pro-Active, Systems Defining Stakeholder Relationships UnilateralInteractiveMutual Influence PartnershipMulti- Organization Alliances TransparencyFlank Protection Public RelationsPublic Reporting AssuranceFull Exposure Managing Citizenship Citizenship Concept Jobs, Profits & Taxes Philanthropy, Environmental Protection Responsible to Stakeholders Sustainability or Triple Bottom Line Change the Game Strategic IntentLegal Compliance ReputationBusiness caseValue Proposition Market Creation or Social Change LeadershipLip Service, Out of Touch Supporter, In the Loop Steward, On Top of It Champion, In Front of It Visionary, Ahead of the Pack StructureMarginal: Staff driven Functional Ownership Cross- Functional Coordination Organizational Alignment Mainstream: Business Driven

10 Putting CC to Work: Understanding Key Issues – CC strategy Safety of medicines Industry standards Access to medicines Curing Global Health Issues (ex. HIV/AIDS)

11 MEANING OF CORPORATE SOCIAL RESPONSIBILITY Source: Fleishman Hillard International Communications

12 Its not about Charity *Not asked in Kenya, Nigeria, South Africa, and Switzerland Best Way for Company to Make Positive Contribution to Society Prompted, by Region,* 2006 CSR Initiatives

13 New Business Challenges from Society High-tech & ICT –off-shoring –IP and trade –digital divide Agriculture + Food & Beverage –Trade & globalization –Health & nutrition Manufacturing –China & offshoring –Job protection –Supply Chain –climate change Shipping & Logistics –Climate change –Security –Low income market Energy –energy security –climate change –political risk Retail –supply chain practices –consumerism Pharmaceutical & Health –access –HIV-AIDS –Low income –IP and trade Finance –low-income –financial scandals –responsible lending/investing

14 Focus where interests converge Pure Philanthropy Pure Business Social Benefit Economic Benefit Combined Social and Business Benefit Source: M. Porter. The competitive advantage of corporate philanthropy

15 Societal Expectations Around the world... Trust 10-20% Expectations 60-70% Sources: GlobeScan, Wirthlin, Edelman

16 Companies held responsible for 2005 New Expectations:

17 Employee Expectations: The Need Perspective FORTUNE Magazine 100 Best Companies to Work For issue. (First published in 1998)

18 Employees Seeking More I wish my company would do more to support a cause/social issue (% agree) 2004 Cone Corporate Citizenship Study 2007 Cone Cause Evolution Survey It s important for my company to provide opportunities for employees to become involved in causes 77%

19 CSR increases my motivation and loyalty Employees – Seeking More Source: 2006 Globescan CSR Monitor

20 20 My Lifes Purpose: Citizen of the World My Identity: Gender, Race, Orientation, Whole Person My Job: Employee Levels of Engagement: The Identity Perspective My Lifes Work: Family, Community Member, Investor & Consumer

21 Drivers of company favorability Source: MORI research into favourability of a range of companies among the British public TOTAL Favourability Index Average of 40 major companies Seen their ads Heard or read about them in the news Seen name on buildings, vehicles Used products/ services Know someone who works there

22 Corporate Citizenship Today US Consumers Perspective top drivers 1.Values and treats employees well and fairly 2.Executives and business practices are ethical, honest, open and transparent 3.Authenticity 4.Goes beyond what is required to provide safe, healthy and reliable products and services 5.Listens to consumer, customer and community input when making business decisions 6.Active and involved in the communities where it does business Committed to corporate social responsibility, sustainability, economic opportunity, environmental stewardship, etc. 7.Donates or invests its fair share of profits, goods or services to benefit others Source: Golin Harris Corporate Citizenship Gets Down to Business 2006

23 Return on Venture Citizenship: Individual Rewarding service and philanthropy Volunteer Local giving: $50K school in China MINDBODY SOUL The good company of the future will center on human capital enhancement, on work as an exciting challenge, one that can draw the will and the aspirations for personal significance of each employee into his or her occupation. Brennan, Schmitz, Behar; Caux Roundtable 2007 Promoting strengths and passions Strengths-based HR Grameen Foundation WOLF Seth Owusu/EVCO Recruiting and encouraging innovation $1MM innovation award Geek Squad Academy Blue Shirt Nation Work/Life Balance Diversity/Tolerance Safety/Wellness

24 CSR – HR = PR

25 Gaps in Communication/Opportunity C. B. Bhattacharya, Sloan Management Review Great interest in CC by majority of [company] employees Lag in understanding, opportunity and participation

26 Volunteerism: Engaging Employees as Citizens Here at Timberland, things are different from other companies. At our corporate headquarters, employees work hard to make some of the world's most innovative products, then use paid time-off to make a difference in the community. Children play in our in-house day care center. The committed young people of City Year New Hampshire, a national youth corps that recently set up shop within Timberland's walls, are hard at work. And throughout the entire company, it's evident that doing well and doing good are inextricably linked. source: company introduction at Jeffrey Swartz, CEO, Timberland frequent keynote speaker on relationship between strategic CCI, brand and core business

27 From Helping Hands to Integrated Value 4 Employee value proposition linked e.g. specific skills applied and developed 1 3 Innovation e.g. issue specific; local autonomy & centrally coordinated 2 Focused e.g. group- wide; issue driven Beginners e.g. Helping Hands volunteers 5 Integrated e.g. value- added to society and your business Increasing employee engagement

28 Corporate Citizenship Management Framework Three dimensions of Corporate Citizenship Management Framework

29 Sponsored by

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