Senior PR Execs Playing Bigger Role in CSR Efforts

A few years ago in an episode of "The Simpsons," Homer is (wrongly) accused of sexual harassment. Despite his pleas to the community that the whole thing was a big
misunderstanding, the media -- as well as the politically correct crowd -- swarm the Simpsons' home, and pretty soon Marge is trying to arrange a meeting between Homer and the
protestors' "indignation coordinator."

In some respects the sequence reflects the changing dynamics of corporate social responsibility (CSR), in which companies must increasingly deal with Non Government
Organizations (NGOs) -- also considered private regulators throughout corporate America's corridors -- that may take a company to task regarding its environmental, labor and/or
management practices. And when accusations fly against big business, the media follows like moths to a flame.

With the issues surrounding Nike v. Kaske still largely unresolved (See PR NEWS, Sept. 22, 2003) and the number of NGOs growing at a rapid clip, companies need to confront CSR
now more than ever. "If an NGO is accusing your company of doing something bad and you say, 'No, we didn't do that bad thing,' the credibility edge goes to the NGO," said Steve
Voien, executive VP-director of U.S. operations for First&42nd, Edelman's CSR practice. (See charts p. 4).

How to improve NGO relations was just one of several topics discussed in a recent PR NEWS-sponsored virtual seminar, "Developing & Executing Successful Corporate Social
Responsibility Programs." The seminar featured three senior PR execs specializing in CSR who have closely watched CSR move from the backwater of the company to center stage.

"Communications are increasingly crucial to CSR and vice versa," Voien said. "What you're getting now is overlap between PR and CSR. The two fields need one another's knowledge
and skills" in light of the fact that so many communication crises stem from CSR issues. "If they haven't already done so, companies need to think about CSR."

There are several ways PR execs can enhance their companies' CSR efforts. For starters, it's important to know who in the firm's various business silos -- sales and marketing,
for example -- is responsible for CSR and sound each individual out to get a sense of both the challenges and risks associated with crafting a CSR plan. Another way of learning
the ropes: cull a few CSR "horror stories" from competitors -- they're not hard to find -- to see how they responded to a CSR crisis.

Once you have figured the issues and the players and the practices in your industry you can start building the CSR case to senior management. You should be armed with both
qualitative and quantitative data. One client of Voien's, Verizon, initiated a CSR process with senior management by creating an "Executive Briefing Paper" that included global
CSR trends, key CSR groups and standards, plus examples on how Verizon can improve CSR. That went straight to Verizon CEO Ivan Seidenberg, who launched a CSR plan and spearheaded
the telephone company's first environmental report.

Michael R. Mitchell, director of Corporate Communications, Chiquita Brands International, discussed how Chiquita addressed CSR following years of criticism from the media and
labor groups about its environmental practices in Chiquita's Latin American operations. The banana king has taken a step-by-step process through the years to raise the level of
social and environmental responsibility, including a partnership with the Rainforest Alliance. (See table.) Certification by an independent third party of the company's
environmental and social standards is key.

CSR has to go up and down the company food chain. At Chiquita, CSR is incorporated into everyday management systems while CSR goals are tied to specific bonus targets for
operating managers. "What's most important is education for employees at all levels," Mitchell said. Asked if the media criticism fueled the CSR plan Mitchell said: "It's not
necessary that a company be the target of criticism as we were to do this, but perhaps we can be used as an example to other companies to say, 'Don't let it get to that
point.'"

Carol Cone, president of PR agency Cone Inc., who helped to create the ConAgra Foods Foundation program (See PR NEWS, Oct. 13, 2003), said there are ample rewards for
companies that prove to the public that they are good corporate citizens in terms of moving business into a new community, enhancing employee relations and, "maybe improve word of
mouth on where people want to shop."

Contacts: Carol Cone, [email protected] ; Michael Mitchell, [email protected] ; Steve
Voien, [email protected]