Interbrand’s Annual Corporate Citizenship Conference: Paved with Good Intentions

Interbrand’s Annual Corporate Citizenship Conference: Paved with Good Intentions

Key Themes from Interbrand’s Corporate Citizenship Conference I read an editorial by Klaus Schwab, Founder and Executive Chairman, World Economic Forum on “burnout” and the impact on global issues addressed at the forum in Davos. Schwab eloquently reminds us that the demands on leadership have been vaulted to a new sense of urgency and purpose. He goes on to say: “Vision is needed to interpret and deal effectively with a globalized world. Technological progress, interconnectivity and the dispersion of power have all contributed to a complex new reality, which requires clear sightedness. Vision is also vital to enable leaders to glimpse the opportunities that lie ahead and rigorously pursue them, rather than succumbing to the paralysis of burnout.”

Huffington Post, January 25, 2012 At Interbrand’s conference on corporate citizenship on the campus of Harvard University, we examined the progress of corporate citizenship both as a mandate of business strategy and a life source to corporate culture and purpose. We are vividly reminded that the Occupy Movement uttered a deep-rooted sentiment of social discord that the inequities for the 99% implore leadership to make urgent and meaningful change in a world hungry for solutions.

The dialogue at Harvard shed light on both the lesson of success and provided insights to the chapters of opportunity yet to be written.

Five key conclusions rise to the surface as triggers to ensure that the good intentions of corporate citizenship see the light of day:

01.

The mantle of leadership is heavy At no time in our history have the demands on leadership been more pressing: economic catastrophe, political instability, employee disengagement and customer loyalty, transparency of social media, and shareholder demands for performance all contribute to a burden of stewardship and contribute to Schwab’s observation of burnout. The resounding sentiment expressed at the conference was the importance and the role of the CEO in defining the purpose, embracing the commitment and driving the organization to innovate and celebrate the evidence of corporate citizenship. There is little appetite for delegation of ownership and accountability to anyone other than the CEO. The good intentions of corporate citizenship, it was bellowed, dissipate into obscurity if not nourished by the passion, visibility and actions of the CEO.

02.

Make the case The roots of corporate citizenship must find their footing in the epicenter of the business strategy. The empirical evidence substantiates that corporate citizenship influences consumer

behavior and therefore is a driver of business performance in both measurable and expanding dimensions. No longer can corporate citizenship be seen as a legacy of philanthropy shuttled from interest group to interest group in the shadows of executive actions. Corporate citizenship now can and must sit at the table with finance, marketing, product innovation and HR as a vital part of an organization’s strategic plan. The opportunity to make corporate citizenship a pillar of the business’ strategic imperatives is at one’s doorstep, inviting a sustainable lever to create a differentiated brand in a marketplace where the forces of commoditization and apathy are impeding value creation.

03.

Release the untapped energy of your organization Corporate citizenship starts and ends with the employee workforce. An extensive examination of failed and successful corporate citizenship strategies hinges on the capacity to engage and motivate the employee to carry the flag.

Corporate citizenship finds its authenticity, its energy and its advocates inside the organization, first and foremost. Without the commitment of the employee, it is virtually impossible to cascade the good intentions of corporate citizenship to partners, suppliers and the community. Employee engagement bound by the power of purpose and citizenship fortifies an organization with higher levels of satisfaction, advocacy, initiative and good will, all of which foster a culture that attracts, retains and rewards the best and the brightest.

04.

Just doing is not enough There is no shortage of good intentions.

Whether strategic or not, all organizations have some flavor of corporate citizenship. The failure to communicate the contributions made by leadership and employees around the acts of kindness is the bane of many, if not all, organizations. Modesty and humility seem to be the popular explanations for why both internal and external audiences have limited, if nonexistent, understanding of the investments made in support of corporate citizenship. The burden

of telling the stories have been relegated to an annual CSR report, which almost always exists as an adjunct to the annual report. The bright light of pride, commitment and achievement is not illuminated long enough and far enough to have an impressionable influence on the reputation of an organization. Communicating corporate citizenship in a credible and authentic voice to internal and external audiences is obligatory.

Organizations that are proud and confident broadcast their successes and do not sweep their failures under the rug of disgrace. Open and accessible dialogue on the merits and metrics of corporate citizenship is way overdue and companies must think about the communication strategy as fervently as they think about program strategy. The two go hand-in-hand and are important ingredients to a successful corporate citizenship commitment.

05.

If it can’t be measured, don’t do it Anecdotal observation, gut feelings and ‘hope and a prayer’ serve no purpose in the realm of corporate citizenship. The analytics that shape and justify strategic decisions for the business are equally appropriate for corporate citizenship. A healthy debate on the merits of “shared value” and the yearning for an accepted methodology to measure and monitor the effectiveness of corporate citizenship is topical to all. It is incomprehensible that the agenda and the influence of corporate citizenship can be recognized in the absence of hard facts to propel and guide the strategy. Benchmark analysis on reputation, employee engagement, customer satisfaction, drivers of demand and ROI are the tools by which the veracity of the corporate citizenship strategy is rationalized and sustained.

Without a clear diagnostic of effectiveness, the ability to argue the merits of corporate citizenship should and will fall on deaf ears.

Corporate citizenship is a powerful and prevalent force in driving behavioral change that must be fueled to create legitimate value for all the key constituents of change; employees, communities, suppliers, partners, government and the planet Earth. We believe that a holistic perspective that is tied to a brand’s core competencies allows organizations to effectively examine where to focus - so they can create measurable change that positively affects both the bottom line and the greater good.

Tom Zara Global Practice Leader, Corporate Citizenship Tom is the Global Practice Leader for Corporate Citizenship in addition to his strategy function at Interbrand New York.

Given the growing importance of corporate citizenship and its contribution to brand definition and brand value, Tom leads the development of this practice area as an extension of his nearly 30 years of experience in branding, communications and change management.

Tom has strong CEO relationships with B2C and B2B brands alike, and is an invaluable partner in the transformation of organizations where the brand serves to motivate and inspire change. He is focused on creating and managing brand value through the lens of corporate citizenship. He leads IP development on the topic, serves as the head of the Interbrand Foundation, Interbrand Inspired, and curates an annual conversation with the most influential corporate citizenship leaders at Interbrand’s Corporate Citizenship Conference at Harvard University.

Tom’s expertise is regularly requested for presentations and press, especially on global issues, most recently at the United Nations where he shared Interbrand’s Best Global Green Brands study.

Additionally, his work on that study helped partner Deloitte to win an AMCF Management Consulting Award in the Corporate Social Responsibility category. He was a featured presenter at the UN’s Least Developed Countries Summit in Istanbul, Turkey. He is regularly quoted on brand and its role in sustainability, corporate citizenship and CSR, recently for the Wall Street Journal, Advertising Age, BBC, AOL Finance, and many others.

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