June 18 -19 2009 Sponsored by Hyatt

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

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

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 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

A Time of Uncertainty and Turbulence

Where are we now? February 16, 2009

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

Business: As Solution?

Why Is Business Involved in the Community? Moral responsibility Intelligent self interest (‘win-win’) Direct business interests making a contribution to the community companies need a healthy, prosperous society in which to do business to improve performance and promote the business and its brands Charitable gifts to promote the public good: • local requests • matched employee gifts • Board service 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 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

Development of Citizenship Stage 1 Compliant Engaging the Environment Stage 2 Engaged Stage 3 Innovative Stage 4 Integrated Stage 5 Transforming Defensive Reactive, Policies Responsive, Programs Pro-Active, Systems Defining Stakeholder Relationships Unilateral Interactive Mutual Influence Partnership Multi. Organization Alliances Transparency Managing Citizenship Issues Management Flank Protection Public Relations Public Reporting Assurance Full Exposure Citizenship Concept Jobs, Profits & Taxes Philanthropy, Environmental Protection Responsible to Stakeholders Sustainability or Triple Bottom Line Change the Game Strategic Intent Legal Compliance Reputation Business case Value Proposition Market Creation or Social Change Leadership Lip Service, Out of Touch Supporter, In the Loop Steward, On Top of It Champion, In Front of It Visionary, Ahead of the Pack Structure Marginal: Staff driven Functional Ownership Cross. Functional Coordination Organizational Alignment Mainstream: Business Driven

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

MEANING OF “CORPORATE SOCIAL RESPONSIBILITY” Source: Fleishman Hillard International Communications

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

New Business Challenges from Society • • 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 • • 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

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

Societal Expectations Around the world. . . ions t ecta Exp 60 -70% Trust 10 -20% Sources: Globe. Scan, Wirthlin, Edelman

New Expectations: Companies held responsible for 2005

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

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

Employees – Seeking More CSR increases my motivation and loyalty 2002 -2006 Source: 2006 Globescan CSR Monitor

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

Corporate Citizenship Today US Consumers’ Perspective top drivers 1. 2. 3. 4. Values and treats employees well and fairly Executives and business practices are ethical, honest, open and transparent Authenticity 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

Return on Venture Citizenship: Individual MINDBODY SOUL Work/Life Balance Recruiting and encouraging innovation $1 MM innovation award Geek Squad Academy Blue Shirt Nation Promoting strengths and passions Strengths-based HR Grameen Foundation WOLF Seth Owusu/EVCO Diversity/Tolerance Rewarding service and philanthropy Volunteer rewards @15 Local giving: $50 K school in China Safety/Wellness “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

CSR – HR = PR

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

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 www. timberland. com Jeffrey Swartz, CEO, Timberland frequent keynote speaker on relationship between strategic CCI, brand core business

From “Helping Hands” to “Integrated Value” 5 4 • Employee value • Innovation proposition e. g. issue linked specific; local 3 2 1 • Beginner’s e. g. “Helping Hands” volunteers • Focused e. g. groupwide; issue driven autonomy & centrally coordinated e. g. specific skills applied and developed Increasing employee engagement • Integrated e. g. valueadded to society and your business

Corporate Citizenship Management Framework Three dimensions of Corporate Citizenship Management Framework