Thirteen / Weber Shandwick

socIal ImpacT aNd csR lEadERsHIp GET sERIous

Looking back at major world events in 2012, few people are likely to dispute that it was an exceptionally challenging year. Its a context that suggests real leadership opportunities for the corporate sector in the year ahead.
In 2012, economic uncertainty in Europe forced governments to rethink funding priorities. Food insecurity in the Horn of Africa showed that shortterm crises require long-term approaches. The Arab Spring reminded us of the ongoing political instability in the Middle East, as well as the power of social movements. The devastation caused by Hurricane Sandy in the US showed the dangers of unchecked climate change. It was a year that underscored the need for coordinated global action to create a more just and sustainable world. and others, are seizing this competitive opportunity and fuelling business success while advancing solutions on social issues. For these leaders, the challenge is to scale this success. For others who have yet to integrate a robust CSR and sustainability strategy, the task is to focus on how their enterprise is uniquely positioned to create shared value, benefitting communities and shareholders. IBM created its Smarter Planet strategy to change the paradigm from react to anticipate, and has since collaborated with more than 600 organisations worldwide in industries from banking, to education, to healthcare. Marks & Spencer built its well-regarded Plan A initiative to achieve 180 social commitments by 2015, with their high-profile Shwopping partnership with Oxfam attracting great reviews. Nike established a new Sustainable Business and Innovation (SBI) group to continue to, among other efforts, champion sustainable design, invest in startups which specialise in sustainable products and set a standard for reporting. The shared attributes of these examples offer a helpful roadmap for other companies: Well-defined social responsibility and sustainability goals Clear and integrated strategies across business units Engaged CEOs and top senior executives Active partnerships with nonprofit organisations Transparency and reporting that is candid about results, challenges and impact

Leadership opportunities
As business leaders look ahead to 2013, they face complex challenges, yet also are well positioned to lead on complicated social issues, from climate change and poverty to health and social inclusion, while advancing core business objectives. The corporate sector brings resources, specialised expertise, scale, innovation, and human capital. And now, more than ever, they face a demand for action from stakeholders ranging from employees and consumers to regulators. With population growth forecasted to reach nine billion people by 2050, sustainable growth and consumption will be increasingly important for companies to champion, particularly as they recognise the value of scarce resources in a growing economy.

Innovative models
There are growing examples of how companies from IBM and Nike (a client) to Walmart, Marks & Spencer

16

17

Social Impact and CSR Leadership Get Serious

Thirteen / Weber Shandwick

Transparency & reporting

Annual reporting on CSR and sustainability metrics has become a standard for top global companies. KPMG research reveals that 95 per cent of the worlds 250 biggest companies now report on their sustainability performance, up from 80 per cent in 2008. Indeed, many companies are focussed now on how to share more dynamic, real-time data on CSR and sustainability performance, going far beyond the long-form PDF report.

The power of partnership

As global challenges in education, healthcare, poverty, and many other areas appear more pressing than ever, spending public resources wisely is an imperative. While the leadership opportunity for the corporate sector is significant, government and nonprofit stakeholders have a critical role to play. We anticipate a strong push for working in a networked way, across sectors, to advance common goals in partnership. The last two years saw an increase in public-private activities such as the B20, the PostMDG High Level Panel, and The New Alliance for Food Security and Nutrition. Significantly, the 2012 Business for Social Responsibility (a client) conference in the US, which marked the organisations 20th anniversary, focussed on the need for urgent cross-sector action on sustainability, development and related issues. At the conference, BSR CEO Aron Cramer explained the key role of cross-sector partnerships in tackling societys most urgent issues, saying We know from experience that no single sector can really address the worlds most urgent development challenges and also opportunities on their own partnership is absolutely essential. The key is to remember what each sector brings that is unique and to leverage those things. Whether it is well-known partners, such as Walmart and the Environmental Defense Fund or Coca-Cola and the World Wildlife Fund, or unexpected allies such as World Wrestling Entertainment and the UN Foundation, these partnerships show the potential for greater impact through collaboration.

CSR and sustainability strategies including Let My People Go Surfing: The Education of a Reluctant Businessman by Patagonia CEO Yvon Chouinard detailing how environmental commitment drives company success, and Stirring It Up: How to Make Money and Save the World, by former Stonyfield Farm CEO Gary Hirshberg, which details the potential of individuals to effect change in the marketplace by influencing the corporations they choose or choose not to support. The research and dialogue across major world events show that companies understand that social impact strategies build brand equity and consumer preference. For communications professionals, the transformation of the communications landscape, and the resonance of social impact topics across social and digital platforms, point to significant opportunities to build brand engagement. The task for creative communications and marketing efforts is to bring social impact strategies to life for consumers, to capitalise on the desire and demand for greater transparency on CSR and sustainability metrics, and to engage and deepen relationships with key communities of interest.

The research and dialogue across major world events show that companies understand that social impact strategies build brand equity and consumer preference.
This trend towards more dynamic reporting anticipates the increased regulatory interest in non-financial and CSR reporting, particularly in the European Union, where policymakers see standardised reporting as a way of increasing transparency and improving companies accountability and performance. Consider these recent developments, which illustrate the momentum on the reporting front: the Global Reporting Initiative (GRI) released its draft G4, the next generation of reporting guidelines due to launch in 2013; OECD issued revised multinational guidelines; and the European Union has intensified its push for a wider social responsibility concept and more social and environmental reporting in its 2011-2014 CSR strategy.

This means helping to guide conversations across a companys leadership team about the competitive opportunity for the business and the brand, as well as the chance to create meaningful and lasting social value. It means translating the opportunity for board-level discussions to build increased recognition of CSR as a core driver of reputation, and a push for closer integration between business and CSR strategies. It means helping to reshape how companies define and measure growth and success looking carefully at how profit motives can be balanced with social considerations towards environment, employment and community. And, it means developing strong, break-through creative content that brings this work to life, particularly on social and digital platforms, and creates opportunities for engagement. Its an ambitious, but critical roadmap to realise the opportunities for greater, positive social impact in the year ahead.

The year ahead

So will 2013 be the year of positive social impact by the corporate sector? And, what does this mean for communications professionals? Whether we call it CSR, sustainable prosperity or purpose-driven business, its going to be one of the top items on the corporate agenda. Recent books and articles have shown a chorus of corporate leaders speaking to the value of smart Author: Paul Massey Executive Vice President, Global Lead Social Impact Author: Sheila Redzepi Head of Social Impact, EMEA

18

19