Research Speaks Out On Corporate Social Strategy:
For this generation, a company's community involvement often needs to be more than just talk, experts said… Nearly four in five Millennials say they want to work for a company that cares about how it affects or contributes to society, according to a 2006 Cone survey. Some 68% said they would refuse to work for an employer that is not socially responsible.
Cone Inc. Survey, 2006
Students graduating with master’s degrees in business administration at 11 top business schools value corporate responsibility highly when evaluating potential employers, a new survey says….These graduates are willing to sacrifice an average of 14.4 percent of their expected salaries to work at socially responsible companies.
David Montgomery, Stanford Graduate School of Business and Catherine Ramus, University of California at Santa Barbara.
Watson Wyatt Worldwide study found that Canadian companies with high employee engagement levels demonstrate greater annual total returns to shareholders—known as TRS—higher market premiums and higher productivity levels than those with low engagement…..In 2007, the high-engagement companies reported TRS of 24.1 percent and $484,000 in revenues per employee compared with TRS of 14.6 percent and $328,000 in revenues per employee for companies with low engagement levels. These financial measures of the importance of engagement indicate that companies must modify their recruiting and selection processes to include engagement factors.
Watson Wyatt Worldwide
Fewer than 20% of respondents to the McKinsey Quarterly survey said their company was very or extremely effective in meeting social or business goals with their philanthropy; in other words, over 80% of organizations are leaving significant value on the table.
CECP Business’s Social Contract & “The State of Corporate Philanthropy: A McKinsey global survey” comprised of input from 721 corporate executives from around the world
70% of consumers say they are prepared to pay more for a brand that supports a good cause they believe in
Forbes - Global survey of 5680 people conducted by the public relations firm Edelman Inc.
72% of Americans would choose to work for a company that supports charitable causes…..87% of employed students over the age of 18 said the same thing
Over 50% of MBA Students would accept a lower salary to work for a socially responsible company
NetImpact Survey, 2006
61% feel personally responsible for making a difference in the world…78% believe that business has a responsibility to join then in the effort
Cone Millenial Study 2006: (born 1979-2001)
86% of Americans want companies to talk about their philanthropic efforts……while only 40% say companies are communicating their efforts well
Cone Corporate Citizenship Report
95% of CEOs surveyed last year by McKinsey, a consultancy, said that society now has higher expectations of business taking on public responsibilities than it did five years ago
The Committee Encouraging Corporate Philanthropy, a New York-based business association, reports that the share of corporate giving with a “strategic” motivation jumped from 38% in 2004 to 48% in 2006
In the U.S., 82% said they're more likely to buy products if they benefit the local community
Strategy One, 2006
Leaders Speak Out On Corporate Social Strategy:
Most companies feel compelled to give to charity. Few have figured out how to do it well
Michael E. Porter and Mark R. Kramer, Harvard Business Review, December 2006
Having a purpose beyond making a profit distinguishes our company. It helps us to attract and retain phenomenal employees. We’re proud that we’ve been recognized for practicing what we preach
Marc Benioff, Chairman and Chief Executive Officer, salesforce.com, inc.
It’s critical. Corporate social responsibility has been seen historically as a “nice to have,” but it can no longer be seen that way. In my mind, it has to be embedded in a company’s strategy, and it’s certainly very important and connected to the strategy and culture of Ernst & Young
Beth A. Brooke, Global Vice Chair, Strategy, Ernst & Young
Business schools, for their part, are adding courses and specialized departments to keep their MBA students happy. Demand for CSR activities has just soared in the past three years
Thomas Cooley, Dean, New York University's Stern Business School
Companies with their eye on their 'triple-bottom-line' outperform their less fastidious peers on the stock market
The Economist, January 2008
Firms are also facing strong demand for CSR from their employees, so much so that it has become a serious part of the competition for talent. Ask almost any large company about the business rationale for its CSR efforts and you will be told that they help to motivate, attract and retain staff. “People want to work at a company where they share the values and the ethos
Mike Kelly, head of CSR, KPMG Europe
Corporate social responsibility was not high on a lot of people’s agendas for a long time. It just wasn’t one of their criteria for selecting an employer. Now there is far greater recognition of corporations’ charitable works, and social consciousness is a very important tool for recruiting employees
F. Ryan, Chairman and Chief Executive Officer, Prudential Financial, Inc
Corporate social responsibility is a hard-edged business decision. Not because it is a nice thing to do or because people are forcing us to do it... because it is good for our business
Niall Fitzerald, Former CEO, Unilever
The fact is, the prevailing approaches to CSR are so fragmented and so disconnected from business and strategy as to obscure many of the greatest opportunities for companies to benefit society. If, instead, corporations were to analyze their prospects for social responsibility using the same frameworks that guide their core business choices, they would discover that CSR can be much more than a cost, a constraint, or a charitable deed—it can be a source of opportunity, innovation, and competitive advantage
Michael E. Porter and Mark R. Kramer, Harvard Business Review, December 2006
Young people want to work at a place where they can make a decent living, but also a place where they can work on exciting things and make a positive difference in the world
Richard D. Parsons, Chairman and Chief Executive Officer, Time Warner Inc.
I think it’s a Danish saying: The fish rots from the head down. So, as far as social responsibility is concerned, it has to start at the top. People can see through their leaders when they’re not speaking from the heart. The person at the top has to have some passion. If you have a good reputation, wonderful people are going to want to work for your company, and your retention rate will be strong. One must be good to one’s community, because if you don’t have a strong community, you won’t attract great people
Alan G. Hassenfeld, Chairman, Hasbro, Inc.
It is the job of the CEO to earn the respect of all employees… One key way of getting respect, in addition to top performance, is to have passion and involvement in the nonprofit world
Sanford Weill, retired chairman at Citigroup and honorary chair of CECP
With more than 232,000 employees who live and work in the communities we serve, Verizon has a vested interest in good schools, safe neighborhoods, and strong local economies. Our commitment to social responsibility is also a direct result of what we call the “human dimension” of our business – customer service, ethics, values, and community investment – which is deeply embedded in our culture and profoundly important to our success
Ivan G. Seidenberg, Chairman and Chief Executive Officer, Verizon Communications Inc.
It’s critical to our culture and is one of the things that really kept a lot of people working at Xerox during that turnaround five years ago. [Xerox CEO] Anne Mulcahy talks about how when she was on the road talking to employees during that difficult time, she was never asked about whether or not Xerox would survive the turnaround. But she did receive a lot of questions about whether we could protect the company’s values
Joseph M. Cahalan, President, The Xerox Foundation