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Brought to you
by
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Organizational Models for

Integrating CSR With Brands
Carol Holding, Holding Associates
Dr. Lucille Pilling, Professor of
CSR, New York University
 Session Overview Page 3

1 Introduction to Brand/CSR
Integration
2 Organizational models for
integrating Brand and CSR
3 Process tools for integrating
Brand with CSR
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Introduction to Brand/CSR Integration

WHY IT’S IMPORTANT…
WHY ITS SO TOUGH TO DO
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“Those companies
that have been more
successful (with CSR)
are those that have
been able to link it
with brand building…
— Kara Hartnett Hurst, Managing
Director, BSR
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Management

recognizes the

importance of

CSR/Brand

integration.
Page 7
“This is really important, but…” Page 8

• …I need more data”

• …here are 15 reports that might have the answer.”
• …I don’t have the time.”
OR
• Attack
• Confusion (even after explaining multiple times)
• Passivity/silence
• Intellectualizing
• Moralizing (They should…)
• Excessive concern about methodology
• Flight into health (The cold weather indicates that
global warming is not so bad…)
 Change Drivers Page 9

• Consumers
90% of U.S. consumers would switch to a different

company to punish bad corporate behavior1
• Employees
89% of those familiar with their companies’ cause
programs feel a strong sense of loyalty to their
employers..2
• Investors
Socially responsible investment funds now attract
about one dollar out of every nine invested
• Business
Half of businesses are being forced to adopt ethical
Partners labor or procurement standards by their partners 4

• NGOs
Company revenues and assets impacted by

examination and action by organized interest groups
• Community &
Company positioning, profitability and assets
Government impacted by social perceptions and resulting
regulation

3Interfaith Center for Corporate Responsibility www.iccr.org/ethvest.php , IBM CSR Study 2008
1Sharing The Wealth, CECP 2008),” K. Fraser, 2007; 22007Cone Cause Evolution Survey
;
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Organizational models for integrating Brand and CSR

SIX INTEGRATION MODELS
 Six Models for CSR/Brand Page 11

Integration
• Three Non-adaptable Models
• Mission-Driven,
• Product-Driven Consumer Companies
• Super-Regulated Industries
• Three Adaptable Models
• Individual Champion
• Communications Team
• Organic Partnerships
Three Non-Adaptable Models Page 12

• Mission-driven
– Green Mountain Coffee Roasters
• Product-Driven Consumer
Companies
– PepsiCo
• Super-regulated Industries
– (Pharmaceuticals)
 Three Adaptable Models Page 13

• Individual Champion
• Symantec
• Communications Team
• Henry Schein, Inc., Adobe, Bankrate
• Organic Partnerships
• HSBC, Chevron, Hess, Cherokee
Adaptable Model Characteristics Page 14

– CSR is a long-standing focus

– CEO and the board support the CSR efforts
– Social versus environment or governance are
the most branded CSR efforts
– Both internal and external communication
focus on CSR efforts
– At first, the CSR report is not the primary task
of the integrator but happens shortly after
– Brand/CSR integration efforts are measured
in existing internal and external brand surveys
Individual Champion Model at Page 15

Symantec
Communications Team Model at Page 16

Henry Schein
Organic Partnerships Model at Page 17

HSBC
Typical Organizational Evolution Page 18

of the CSR/Brand Relationship

• The Individual Champion is the model common to early
stage brand/CSR integration
• Within 10 years companies evolved to Communications
Team Model.
• The Organic Partnerships Model works well in the old-
line companies.
• The full integration of Brand and CSR to an embedded
business strategy evolves over time.
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Process tools for integrating Brand with CSR

HOW TO MAKE
IMPLEMENTATION WORK IN
YOUR ORGANIZATION
 First Steps Page 20

• Audit current departmental CSR programs

and publicize current efforts
• Analyze competitors
• Survey stakeholders’ expectations
• Select compliance metrics, ie Global Reporting
Initiative (GRI), UN Global Compact, Ceres
• ID key internal stakeholders
• Engage senior management
• Establish working committees
• Legitimize > support > institutionalize
 Lean On Your Angels Page 21

• Internal enthusiasm spreads to external

audiences organically as well as through
systematic communications.
• Brand involvement is great motivation for
other parts of the company to engage in
cross-functional partnerships, yielding more
stories for communications.
 The Roadmap Page 22

Stage 0 Stage 1 Stage 2 Stage 3 Stage 4

Compliant Engaged Innovative Integrated Transforming
Citizenship Jobs, profits, Philanthropy, Responsible to Sustainability or Change
Concept and taxes environmental stakeholders triple bottom the game
protection line
Strategic Legal Reputation Business case Value Market creation
Intent compliance proposition or social change
Leadership Lip service, Supporter, in the Steward, on top Champion, in Visionary, ahead
out of touch loop of it front of it of the pack
Structure Marginal, staff Functional Cross-functional Organizational Mainstream,
driven ownership coordination alignment business driven
Issues Defensive Reactive, policies Responsive, Proactive, Defining
Management programs systems
Stakeholder Unilateral Interactive Mutual influence Partnership Multi-
Relationships organization
alliances
Transparency Flank protection Public relations Public reporting Assurance Full exposure

Boston College Center for Corporate Citizenship

 Tactics for Page 23

Internal Communications
1. Deliver CSR focused brand training at department
meetings
2. Build a resource of CSR stories
3. Celebrate CSR successes - push information via
intranet, email, newsletters, live events, blogs,
webcasts
4. Keep managers informed and involved
5. Use CEO announcements and awards
6. Involve/promote internal networks
7. Track and report measurements of brand, CSR, SRI
etc and share results with departments
 External Communications Page 24

• Publicize improvements in compliance metrics

– Identify relevant metrics by industry, region, social,
environment, governance focus
• Develop PR strategy around key focus areas that
mobilize public opinion
• Combine news event with applicable CSR
• Apply for awards or ‘best-of’ lists
• Coordinate partnership opportunities
• Develop best practice sharing with industry peers and
leaders
• Use every opportunity to communicate – signage,
packaging
 Sample Metrics Page 25

• Brand Value – brand valuation company

Overall impact of effort on brand
• Reputation study/corporate citizenship
• SRI Ratings
Impact on independent CSR ratings, ie,
RiskMetrics (KLD, Innovest), Bloomberg,
Thomson Reuters
• Dow Jones Sustainability Index, other
measures of CSR
• Employee survey
Desired Outcomes Page 26

By integrating brand with CSR

• Employees become
evangelists.
• Talent is better retained.
• Executives and board
become vested.
• Generate increased interest
from consumers, customers,
investors.
 The CSR/Brand Value Curve Page 27

A shift from cost to returns*

*IBM Global Business Services Growth
Platform
Values-based Efficiency
Self
Strategic Regulation
Access to new
Philanthropy
markets, new
Legal and partnerships or
Measurable
product/service
Compliance Incorporates cost savings
innovations
the company's through
that generate
Alignment of value system efficient or win-
revenue
Adherence to charitable and/or code of win scenarios
law in the activities with conduct to
countries of social issues guide
production, that support business
operation and business behavior
distribution objectives

12/11/09
How Mature is Your CSR Program? Page 28

Follower Mature Leader Innovator

Number of Companies

Stage 1 Stage 2 Stage 3 Stage 4

Understanding Beyond Comprehensive Competitive

Compliance Sustainability Advantage
Management through
Sustainable
Business
Practices

Bottom 20-100% Middle 5-20% Top 1-5% of Top 1% of

of Companies of Companies Companies Companies

Level of Sustainability Maturity

 What We Hope You Take Away Page 29

 Organizational models that successfully

integrate brand and CSR..
 How to select a model that is best suited
for your organization.
 How to time the stages of brand CSR in
integration as it evolves to an integral part
of business strategy.
 A step by step process to integrate brand
and CSR.
 Speakers Contact Information Page 30

Dr. Lucille Pilling

New York University
Lucille.Pilling@nyu.edu

Carol Holding, President, Holding Associates

carol@holding.com
415-559-2586