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Explore the urgent need for corporations to become socially responsible citizens and the benefits that come from engaging employees in corporate social responsibility initiatives. This conference highlights the importance of businesses making a positive contribution to society and offers strategies for integrating corporate citizenship into company practices.
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Engaging Employees and Corporations As Citizens American Cancer Society Impact Conference Bradley Googins PhD 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 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
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
Moral responsibility making a contribution to the community Intelligent self interest (‘win-win’) companies need a healthy, prosperous society in which to do business Direct business interests 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 Why Is BusinessInvolved in the Community?
Putting CC to Work:Understanding Key Issues – CC strategy Safety of medicines Access to medicines Curing Global Health Issues (ex. HIV/AIDS) Industry standards
MEANING OF “CORPORATE SOCIAL RESPONSIBILITY” Source: Fleishman Hillard International Communications
Its not about Charity CSR Initiatives Best Way for Company to Make Positive Contribution to Society Prompted, by Region,* 2006 *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
60-70% Expectations Trust 10-20% Societal Expectations Around the world... Sources: GlobeScan, 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 77% 2004 Cone Corporate Citizenship Study 2007 Cone Cause Evolution Survey
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
Corporate Citizenship TodayUS Consumers’ Perspective top drivers • 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 • Listens to consumer, customer and community input when making business decisions • Active and involved in the communities where it does businessCommitted to corporate social responsibility, sustainability, economic opportunity, environmental stewardship, etc. • 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 MIND BODY SOUL Recruiting and encouraging innovation $1MM innovation award Geek Squad Academy Blue Shirt Nation Work/Life Balance Promoting strengths and passions Strengths-based HR Grameen Foundation WOLF Seth Owusu/EVCO Rewarding service and philanthropy Volunteer rewards @15 Local giving: $50K school in China Diversity/Tolerance 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
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 and core business
5 From “Helping Hands” to “Integrated Value” • Integrated e.g. value-added to society and your business 4 • Employeevalue proposition linked e.g. specific skills applied and developed 3 • Innovation e.g. issue specific; local autonomy & centrally coordinated 2 1 • Focused e.g. group-wide; issue driven • Beginner’s e.g. “Helping Hands” volunteers Increasing employee engagement
Corporate CitizenshipManagement Framework Three dimensions of Corporate Citizenship Management Framework