Communicating Globally, Acting Locally

Dan Bross is senior director, Corporate Citizenship at Microsoft and one of the most visible faces of corporate social responsibility at the company.

I first met Dan at the 2009 Net Impact Conference and recently we had the chance to reconnect at the Boston College Center for Corporate Citizenship Conference.

In between networking and learning at BCCCC, Dan was kind enough to sit down with me to talk more about Microsoft's corporate citizenship program and where it's headed.

But first, what does corporate citizenship at Microsoft look like? For starters, the company has four main areas of focus:

1. Strengthening Economies through the use of technology;
2. Addressing Societal Challenges like health care, energy and the environment, workforce development, and education;
3. Promoting a Healthy Online Ecosystem by fostering innovation online and protecting privacy; and,
4. Operating Responsibly through effective corporate governance, employee engagement, and sustainability programs.

While the company’s focus can clearly get bucketed into four categories, the overall reach of Microsoft’s corporate citizenship program – and its impacts – is much, much broader than that. 

To get a sense of just how far-reaching Microsoft's program is, check out the interactive Local Impact Map. Here visitors to Microsoft’s corporate citizenship site can filter the company's social, environmental, and economic investments by region and type of initiative, as well as read stories about Microsoft's work on a local level. 

After reading through its website and playing with the map, it became clear to me that Microsoft is doing great work as a responsible and involved corporate citizen.

Still, I wondered, what is the company doing to tell people about it?

I asked this question for one main reason. Since I've met Dan and talked to people on his team before, I know that Microsoft is a leading player in today's corporate citizenship community. And yet, at times I've wondered how many other people out there even know that Microsoft has a CSR program in the first place? As much good work as the company is doing, you don't always hear Microsoft's name mentioned in the same sentence as other more well-known (and perhaps more vocal) CSR leaders like eBay, Gap, or Nike.

Fast forward to my conversation with Dan at BCCCC, where I started with what turned out to be a very serendipitous question: “When it comes to corporate citizenship at Microsoft, what would you say is your single biggest challenge and your single biggest opportunity?”

Interestingly Dan said right now these two things are one and the same:

It all comes down to communication.

It turns out Microsoft has done a great job reaching out to a small, select group of influencers – governments, think tanks, etc – and that its corporate citizenship message and story has successfully reached these audiences.

Yet when it comes to other stakeholders – consumers, customers, employees, and generally-interested folks like you and me – Microsoft still has some ground to cover.

Thus, according to Dan, the goal is to “broaden the audience,” do a better job of communicating more clearly, and speak to stakeholders “in a way that matters.”

An important and timely objective if I do say so myself (especially after last week's BCCCC panel on the lack of consumer trust of CSR programs).

And yet, if we think back to the Local Impact Map, this is where things get tricky. You see, Microsoft isn’t just trying to reach the American public; instead, it has a global audience to contend with. A global audience with different interests and causes to support, not to mention varying cultural preferences for the role of business in society.

The question then becomes: how can Microsoft build a global citizenship communications strategy that creates a cohesive message yet allows for flexibility across regions?

How can Microsoft literally communicate globally, but act locally?

This is the issue-at-hand for Dan and his team in the coming weeks and months, and there's clearly a lot riding on it. After all, for a company like Microsoft it’s not a stretch to say that improved CSR communications can lead to additional gains on the business side. In this way, Dan says, stakeholder communications truly can be “a continued driver for business success."

As someone who believes that CSR communications can effectively bridge the gap between companies and consumers, I'll be anxiously awaiting what happens next at Microsoft. Certainly sounds like an exciting challenge!

The Corporate Citizenship Journey

One of the benefits of a conference like this one put on by Boston College’s Center for Corporate Citizenship is the opportunity for CSR professionals to network, share ideas, and learn from one another. In no other session has this experience been more true than in today’s panel: “Corporate Citizenship Journey – What have we learned? What is next?”  The room was packed to hear Chris Coulter, senior vice president, Strategy & Collaboration, GlobeScan; Kevin Moss, head of CSR, BT Americas Inc., and Rick Martella, vice president Corporate Affairs, ARAMARK talk about CSR trends over the last ten years, as well as where the field is headed going forward.

Rick opened the session by asking a couple of big questions:

• How have we performed as an industry?
• How do consumers perceive our work and impact?
• What has our social and environmental impact actually been?
• How are our senior leaders involved in our moving our CSR agenda forward?

Over the course of the session, Kevin and Chris answered these questions and more, in what turned out to be a very spirited exchange between panelists and attendees.

One key takeaway that came up throughout each speaker’s presentation was the issue of the current gap that exists between the work corporate America is doing in CSR and how the public perceives this work.

According to Kevin, this gap exists because in many cases CSR is not integrated into the core business functions and units of a company. When the corporate values are aligned with the company's business model, Kevin said, the result is increased authenticity and by extension, trust on the part of consumers and other stakeholders. But, when companies say one thing and do another, consumers not surprisingly become skeptical.

Chris then stepped in to provide some data behind this claim. His firm Globescan conducts regular research with over 35,000 global CSR professionals, and recently the company completed a 10-year retrospective survey of the industry. The findings from this research confirmed the presence of this “growing expectation/perception gap” that exists in consumers’ minds.

“Over time,” Chris said, “the perceived performance [of corporate America] has declined” – regardless of the fact that Fortune 500 companies have clearly stepped up their game when it comes to actual gains made in sustainability and community involvement.

The answer, the panelists agreed, lies in effective communications.

In effect, the narrative that companies are telling in regards to their CSR programs just isn’t cutting it. In order to win consumers’ trust and loyalty, companies need to make sure their corporate and sustainability communications are aligned and authentic, which will inevitably resonate better with consumers.

Going forward, the panelists seemed to feel confident about the future of CSR, but they were also very cognizant of the fact that we have a lot of work still remaining. Hopefully after 2+ days of learning and sharing, each conference attendee feels better equipped to continue his or her good work back home.

Ashley’s Note: This is the third of three posts I wrote as a featured blogger for The Boston College Center for Corporate Citizenship’s 2010 Annual Conference. Click these links to learn more about the conference, check out the session description, and to read all the blog posts from the event.

Social Intrapreneurship at Work

“How many of you would call yourself a social intrapreneur?” This was the question that Mark Feldman, managing director of Cause Consulting posed to the fifty attendees at this morning’s Boston College Center for Corporate Citizenship Conference breakout session, “The Business of Corporate Citizenship: Creating New Social Ventures within Your Company.”

A quick glance around the room showed only a handful would give themselves this title.

Yet, as Mark and his panelists, Amy Skeeters-Behrens (head of Global Citizenship Marketing, eBay) and Nancy Mahon (executive director, MAC AIDS Fund), made it clear to all attendees, anyone considering creating a “social corporate enterprise” within their company is exactly that. Perhaps, Mark suggested, after this session, “you’ll consider yourselves a little bit differently.”

But first: what is a social intrapreneur? According to Amy, a social intrapreneur focuses on “building and developing new ventures within a company, designed to generate large-scale social impact”.

For eBay, this means creating a wide array of ventures – from the eBay Green Team to World of Good by eBay – that enable their buyers, sellers, employees and larger community connect to causes they care about. At MAC AIDS Fund, social intrapreneurship takes the form of the MAC Viva Glam line of lipsticks and lip glosses whose sales support HIV/AIDS initiatives globally.

Throughout the panel I was struck by a handful of ideas and themes that kept cropping up – what I’d call best practices for any social intrapreneur:

Alignment of core competencies and the social venture you’re creating: As Amy stressed, and Nancy reiterated, building these social venture opportunities means taking a long, hard look at what your company does well – and what it might not be as good at. Not only does this ensure your venture will be aligned with what you do best, but it forces you to partner with authentic, credible leaders in the space you want to play in. In eBay’s case, they are great at building shopper marketplaces and providing a trusted space to transact, but they’re not as knowledgeable or skilled in other crucial areas that were necessary to build World of Good. This led them to partner with social entrepreneurs and industry leaders to help build their model – and their credibility.

Creation of a point of view for your venture: Nancy repeatedly brought up the idea that the Viva Glam line of products has been successful because it represents a connection to a singular point of view (HIV/AIDS awareness, prevention and support). The great thing about having a CSR point of view, rather than simply a portfolio of smaller causes grouped together, is that this can clearly support the business’s point of view and brand meanings.

CSR needs to be about making money: Both panelists agreed that “profit isn’t a dirty word” and that “you can make money and do good in the world.” This idea is especially crucial for developing the business case for CSR – until you come to terms with the fact that CSR must directly tie to financial outcomes, you won’t be able to create and identify the data you need in order to make a compelling business case for your work.

In all it was a terrific first breakout session, with great ideas and inspiration flowing throughout the room. I can’t wait to see how the next session goes!

Ashley's Note: This is the first of three posts I wrote as a featured blogger for The Boston College Center for Corporate Citizenship's 2010 Annual Conference. Click these links to learn more about the conference, check out the session description, and to read all the blog posts from the event.

The State of Corporate Citizenship

I’m very pleased to announce that I’ll be live blogging (and tweeting!) from this year’s Boston College Center for Corporate Citizenship Conference April 11 - 13.

In case you’re not familiar with it, the BCCCC hosts an incredible conference each year that includes a “Who’s Who” list of CSR, sustainability, and philanthropy professionals from around the world.

The purpose, like most conferences, is to bring together respected corporate citizenship professionals and thought-leaders for idea-sharing, discussion and networking. Students like me (and basically anyone who’s not a corporate member of the BCCCC) don’t usually get to attend, but somehow the stars aligned this time around and I’ll be there. It’s a rare opportunity, for sure – and I’m very excited.

I’ve been asked by BCCCC to provide live blog content for three sessions:

• The Business of Corporate Citizenship: Creating New Social Ventures within Your Company
• A Seat at the UnCommon Table: Leveraging your Philanthropic Investments in Education
• Corporate Citizenship Journey – What have we learned? What is next?

With experts from industry, government, and the nonprofit sector, the sessions promise to be thought-provoking, informative, and inspiring.

Once the conference ends and the dust settles, I’ll be reposting my write-ups on The Changebase.

Can’t wait until the Conference has finished? Check out the BCCCC blog for my posts as they're uploaded, and be sure to follow me on Twitter. I’ll be tweeting regularly so you can get all the updates.

And another tip: don’t just follow me on Twitter. Search the conference hashtag #bcccc_conf to see what everyone’s tweeting about!

To learn more about the Boston College Center for Corporate Citizenship and this year’s conference, check out their website.

Ashley's Note: As of April 15th, all of my posts from the BC Conference are live on The Changebase. Check out:

• Social Intrapreneurship at Work
• Taking a Seat at an Uncommon Table
• The Corporate Citizenship Journey

Engaging Your Employees in CSR

In the grand scheme of things, Corporate Social Responsibility is still an emerging field, which means that everything – from general strategy to best practices – is still being solidified.

One of the questions that is still debated quite often in the CSR community concerns the “business case” for this kind of work.

In a world where business decisions need to be justified through sound reasoning and quantitative measurements, it can be tough to explain why “doing good” is important.

I’ve tried to tackle this question in past posts, and the fact that I’m bringing it up again I think is proof that the jury’s still out on this one. Nonetheless, I did just hear one perspective on the topic that I thought was worth sharing with you.

Bob Willard is a sustainability author whose “claim to fame” (as he put it) is the quantification of the bottom-line benefits that companies can enjoy through CSR. He recently presented his ideas on the value of CSR as part of a Net Impact Issues-in-Depth call that I was lucky enough to listen to.

Bob started by laying out his general framework for the case for CSR, otherwise known as The 3 R’s:

1. Risks
2. Responsibilities
3. Rewards

The first category, Risks, is pretty obvious and serves as the most direct justification for engaging in CSR. From managing regulatory changes to preparing for the potential depletion of certain natural resources, corporations must consider what risks they face and how CSR might help mitigate exposure to those risks.

The next category, Responsibilities, really speaks to the new wave of expectations surrounding corporate involvement in the community and the environment. Whether from consumers, the media, NGO’s or even employees, there is clearly pressure being put on companies to be active and engaged in society – with reputation, loyalty and credibility at stake.

Yet it was the third ‘R’ – Rewards – on which Bob focused. As Bob put it, “There are surprisingly big rewards for taking up responsibility expectations and mitigating risk”.

In fact, according to Bob’s calculations (which he called conservative), these rewards can be sizeable for both large corporations and small-to-medium businesses, who can expect to earn at least 38% and 66% more profit, respectively, through CSR programs.

Not surprisingly, the biggest area of CSR reward comes from the eco-efficiencies created in sustainability programs (ie: saving water, reducing waste, etc).

What comes next? Interestingly enough, the second biggest reward opportunity comes through employee engagement in CSR programs. Whether through reduced recruiting and attrition costs or increased employee productivity, the HR benefit of CSR is not to be overlooked.

Now, we all know anecdotally that CSR improves morale, reduces turnover, and generally leads to more satisfied employees. What’s cool about what Bob has done is that he’s actually put numbers behind these assertions and provided the calculations that prove these rewards.

Admittedly, I’ve never been great at statistics – but when Bob presented a regression analysis showing a correlation (R² = .57) between employee engagement and CSR activities, I just about swooned!

While I’m not going to repeat everything Bob presented, you can check out his website to see presentations and spreadsheets that show the numbers behind his ideas. In general, Bob's overall point was that employee engagement drives business results (after all, happy employees beget productive employees) – and that CSR is one big way to dramatically improve the recruitment, retention and satisfaction of employees.

Thus, in essence, CSR leads to engaged employees which leads to increased returns for business. And voila - the business case for CSR in a nutshell!

As a job-seeker and future engaged employee, this assertion rings true for me. Nonetheless, if you’re still doubtful, I’ll leave you with some of Bob’s statistics as food for thought:

Recruiting

• 40% of MBA grads rated CSR as a an “extremely” or “very” important company reputation measure (Hill & Knowlton Jan 08)
• MBA grads will sacrifice an average of $13,700 in annual salary to work for a socially responsible company (2003 Stanford University study)

Retention

• 83% of employees in G7 countries say their company’s positive CSR reputation increases their loyalty (GlobeScan 2006)
• 57% of employees say their company’s CSR reputation is a factor in retaining them (Towers Perrin-ISR global survey 2007)

Productivity

• Fully engaged employees are 2.5 times more likely to exceed performance expectations than their “disengaged” colleagues (Hay Group website, May 2009).
• At Best Buy, a 2% increase in employee engagement at one of its electronics stores corresponds, on average, to a $100,000 annual rise in its sales (Business Week, “The Case for Optimism,” August 13, 2009).

So what do you think? Is employee engagement a compelling motivation for CSR at your company? Is this an argument that wins over senior company leaders? I'm curious to hear your thoughts.