Corporate Social Responsibility Why businesses should be socially responsible

What is Corporate Social Responsibility?

Corporate Social Responsibility (CSR): Transparent business practices based on ethical values Compliance with legal requirements Respect for people, communities, and the environment Thinking beyond pure profit: socially responsible companies consider the totality of their impact on people and the planet. Source: (“Corporate Social Responsibility is Millenial’s New Religion” - by Andrew Swinard, Crains Chicago Business, March 25, 2014)

Corporate Social Responsibility Includes: Environmental awareness – seeking environmentally friendly solutions Philanthropy – donating to charities; funding social projects Ethical employment practices – treating employers fairly

What about the shareholders What about the shareholders? Why should for-profit businesses be concerned about Corporate Social Responsibility?

Investing in communities is good for business Today more and more economic analysts believe that CSR plays important role for business competitiveness. In today’s globalized business climate, consumer concern for social issues is at an all-time high, as is the importance these customers place on CSR when choosing where to shop.

According to a 2011 study conducted by the ad agency network TBWA/Worldwide and TakePart: 7 in 10 young adults consider themselves social activists. 1 in 3 support or boycott businesses based on the causes they care/don’t care about. 4 in 5 say they'd be more likely to purchase from a company that supports a cause they care about (if price and quality are equal) and 3 in 4 would think more highly of a company that supports a social cause. A stunning 3 in 4 believe that corporations should create economic value for society by addressing its needs. Source: Corporate social responsibility is millennials' new religion by Andrew Swinard, Crains Chicago Business, March 25, 2014

Consumers care more about who you are rather than what you do – Global RepTrack 100 The Global RepTrack 100 Study is conducted annually by the Reputation Institute, a global consulting company, and analyzes feedback from up to 60,000 consumers across 15 countries. The study concludes that a person’s willingness to buy, recommend, work for, and invest in a company is 60% driven by their perceptions of the company. 42% of how these perceptions are formed is based on their understanding of the firm’s corporate social responsibility practices.

How does corporate giving effect profit? CECP Giving in Numbers Brief findings: The most generous companies in 2010 realized strong business returns from 2010 to 2013 Companies that increased their corporate giving by more than 10% in 2010 also increased median revenues by 11% from 2010 to 2013

Well-Known Companies Regularly Engaged in CSR Practices The top 10 companies with the Best CSR Reputation, as identified by the Reputation Institute: Microsoft Daimler Google Volkswagen Disney Sony BMW Colgate Apple Lego

Where do contributions go? CECP Giving in Numbers Brief

Key Takeaways: In the era of globalization, consumers place more and more importance on CSR when choosing where to shop The number of businesses that have increased their corporate giving has grown and a number of these experienced an increase of profit as a direct result Be socially responsible, help to make world a better place to live and make your business more sustainable!

Sources: Corporate Social Responsibility is Millenial’s New Religion by Andrew Swinard, Crains Chicago Business, March 25, 2014, retrieved from http://www.chicagobusiness.com/article/20140325/OPINION/140329895/corporate- social-responsibility-is-millennials-new-religion What is Corporate Social Responsibility? by Nicole Fallon, Business News Daily, Feb. 27, 2014, retrieved from http://www.businessnewsdaily.com/4679-corporate-social- responsibility.html The Companies With the Best CSR Reputations, by Jacquelyn Smith, Forbes magazine, Dec. 10, 2012, retrieved from http://www.forbes.com/sites/jacquelynsmith/2012/12/10/the-companies-with-the- best-csr-reputations/3/ CECP Giving in Numbers Brief, retrieved from http://cecp.co/research/benchmarking-reports/giving-in-numbers- index.html#.U8GM2bflqzc Global RapTrack Report 2014, Reputation Institute