In July 2006, The Social Investment Research Analyst Network (SIRAN) announced that more than 75% of the S&P 100 had special sections on their Web sites dedicated to
corporate responsibility (CR) reporting, a 34% increase from 2005.
But while reporting is now commonplace, CR information is not reaching those who have the greatest potential to further a company's CR agenda through sales, operations and
financial growth: customers, employees and investors. Many companies look to their reports as the primary vehicle for CR communications but don't realize that these vehicles,
due to the length and complexity, are often inaccessible to key audiences.
To better engage these stakeholders, companies should make CR reporting part of an integrated CR communications strategy. The following examples showcase some innovative
methods companies are using to reach key audiences:
- Driving Responsible Purchasing by Consumers: In 2006, Marks & Spencer, the British retailer also known as M&S (or "Marks & Sparks"), announced its "Look
Behind the Label" campaign designed to share with consumers the ethical purchasing stories behind some of its products, such as Fair Trade coffee, non-genetically modified
foods, natural cleaning products and animal-cruelty-free fabrics. The campaign was prompted by a survey finding that customers in the United Kingdom wanted to know that the
products they buy are made fairly and humanely. The campaign included a large-scale advertising and in-store campaign featuring CR commitments behind different product lines.
In 2006, a Yougov Brand Index Poll reported an 8% increase in the company's overall reputation; it also showed that the products are now viewed as "more fashionable."
For the past few years, Starbucks has supplemented its CR report with a tri-fold summary brochure available in store kiosks. In 2005, Starbucks also sent veteran
journalists to almost a dozen coffee farms around the world to document the impact of the company's CR practices. Television stories and magazine pieces were produced for
consumers and employees, providing a user-friendly way to experience this material.
- Recruiting Employees: By now, everyone is familiar with GE's "ecomagination" ads, but few know about GE's efforts to leverage it as a recruiting tool for eco-
oriented college grads. In 2006, GE announced the mtvU GE ecomagination Challenge, which promised a $25,000 grant and an Earth Day Concert to the team that submitted the most
innovative proposal for greening its college campus. The challenge received over 100 applications from local schools, increasing environmental awareness on campuses, as well
as building the GE brand as a responsible and hip employer with its future talent pool.
- Making the Business Case to Investors: It is widely believed that CR makes business sense by managing risk, improving employee morale and retention, positively impacting
a company's "license to operate," and reinforcing brand loyalty. A number of companies, such as Wal-Mart, are also looking to CR innovation as a way to directly touch the
bottom line, with environmental initiatives such as more efficient trucking fleets and high-efficiency lighting systems. One way to win attention for CR efforts is to
identify and engage with socially responsible investing (SRI) researchers that rank companies based on a variety of CR activities. Organizations such as KLD Research &
Analytics, SiRi Company and Domini Social Investments provide such rankings for institutional or individual investors.
As part of the process of supplementing a CR report with a broader communications strategy, we recommend a number of steps, including:
1. Map and prioritize stakeholder audiences: As every company faces resource constraints, this prioritization allows you to focus limited dollars on those objectives with
the highest potential return. An objective for reaching out to activists may be to stem negative campaigns. For customers, it may be differentiating your brand through CR-
oriented products to drive sales.
2. Engage with stakeholders: Through meetings, surveys, e-mail and telephone feedback, find out what your stakeholders are thinking about your company's CR activities.
Build in this dialogue as an ongoing part of your communications strategy.
3. Develop a CR message guide: Different stakeholders have varying degrees of CR issue knowledge and needs. For example, socially responsible investors will most likely
have a more sophisticated understanding of the complexities of human rights monitoring or climate change than the average consumer. Information provided to activists will
need to be more detailed, while employee communications may be more educational. By developing a comprehensive guide with key messages tailored for each stakeholder group,
companies are able to deliver consistent messages that resonate with each audience. The guide is a living document--content should be influenced by stakeholder feedback. In
addition to key messages, it should include proof points that demonstrate how your company is addressing major stakeholder issues.
4. Identify communications vehicles based on determined objectives: In most cases, existing vehicles may be the most appropriate way to communicate your CR commitments as
stakeholders are already expecting to hear from you through those channels. At the same time, to ensure your messages really break through, you may want to brainstorm
innovative new ways to get your audience's attention (see table at left).
5. Execute: Communicate with multiple audiences at the same time to ensure an integrated approach. During execution, keep in close contact with the operations side of your
company to make sure your company is "walking the talk," and you are apprised of any issues that arise, so you can respond accordingly. Use feedback from your efforts and
from stakeholder engagement to evolve messaging and look for new CR opportunities.
A CR report is a good "stake in the ground" around which a company can build its measurable CR efforts and communications. But by extending communications and stakeholder
engagement beyond traditional CR reporting, companies are able to connect more effectively with audiences to drive employee morale, customer preference and investor
confidence.
Contact:
This article was written by Mindy Gomes-Casseres, director of Cone, Inc. She
can be reached at [email protected].
| Stakeholder Audiences and Communications
Vehicles |
|
|---|---|
| Stakeholder Audience | Potential Communications Vehicles |
| Consumers |
|
| Activists and Issue
Specialists |
|
| Employees |
|
| Investors |
|