Crowdsourcing and Social Meida in CSR

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Table of Contents • Research Methodology

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• Executive Summary • Strategic Implications

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• Detailed Findings • Respondent Profile

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Research Methodology Dates of interviews:

October 6th – October 22nd, 2010

Survey mode:

Telephone

Sample:

216 Fortune 2000 Corporate Executives with Program or Communications Oversight for Corporate Philanthropy, Social Responsibility & Community Relations

Margin of error:

+/- 6.8 percentage points at the 95% confidence level

Notes:

Numbers may not total 100% due to rounding.

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Executive Summary •

Social media and crowdsourcing play vital roles in helping companies raise awareness and drive engagement in their corporate social responsibility (CSR).

A sizable 44 percent have used crowdsourcing – asking customers to provide ideas and help in decision-making on how to tackle issues. Of these, 95 percent found it valuable to their company. Regardless of use, 83% see the potential.

The perceived value of crowdsourcing is that it surfaces new perspectives, builds engagement with key audiences, invites clients and customers from nontraditional sources to contribute ideas and it brings new energy to the process of generating ideas and content.

Seven in ten executives say social media has been used to communicate their CSR and 6 in 10 say it has a positive impact on the quality of communications, helping to reach broad and diverse audiences.

Integrated communications are priorities for raising awareness of CSR, with 85 percent saying community events are effective, 75 percent citing executive outreach, 71 percent mentioning social media and 70 percent pointing to earned media.

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Strategic Implications •

Crowdsourcing is not the next “big thing,” it’s happening now. If it’s not a part of your CSR communications, it’s a key area to explore in 2011.

Given the positive impact of social media, these channels should be strategic priorities for communicating CSR efforts to stakeholders.

CSR programs have the potential to increasingly be characterized by creative efforts to engage consumers via social media, given its demonstrated value.

Integrated communications matter – and those companies that develop strategic programs featuring social media, earned media, events and executive visibility stand a better chance of getting their messages heard.

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Value of Crowdsourcing Recognized A sizable 44 percent have used crowdsourcing; Of those executives, 95 percent feel it has benefits for their company.

Has your company ever used crowdsourcing?

How valuable do you feel crowdsourcing is to your own organization’s pro-social or CSR efforts? (N=96)*

50% Very valuable

Yes, 44% No, 55% 45%

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Somwhat valuable

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Impact of Crowdsourcing The executives who use crowdsourcing see value in a number of ways, in particular that it surfaces new perspectives and diverse opinions.

Which of the following do you believe is the most valuable aspect of crowdsourcing? (N=96)*

It surfaces new perspectives and diverse opinions It's a way to build engagement and relationships with key audiences It invites clients and customers from nontraditional sources to contribute to ideas and opinions It brings new energy into the process of generating ideas

36% 25% 22% 16%

Other 1%

* NOTE: Questions only asked of those who use crowd sourcing (N=96) www.krcresearch.com

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Future Use of Crowdsourcing Interestingly, of those who have not used crowdsourcing, 43 percent anticipate it could bring value to their company’s future CSR efforts.

How valuable do you feel crowdsourcing is to your own organization’s pro-social or CSR efforts? (N=120)*

3%

43%

40%

Which of the following do you believe is the most valuable aspect of crowdsourcing? (N=120)*

It surfaces new perspectives and diverse opinions Very valuable Somwhat valuable Not too valuable

-16% Not at all valuable

23%

It brings new energy into the process of generating ideas and engagement

21%

It invites clients and customers from nontraditional sources to contribute to ideas and opinions

19%

It's a way to build engagement and relationships with key audiences

18%

-27% Other

15 percent said they did not know how valuable crowd sourcing could be. www.krcresearch.com

1%

* NOTE: Questions only asked of those who do not use crowd sourcing (N=120) impact.webershandwick.com

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Social Media Widely Used in CSR Communications 7 in 10 executives say their company uses social media to communicate about CSR efforts with Facebook seen as the most valuable platform. Does your company use social media to communicate about your CSR or pro-social efforts?

37%

Most often organizations that use social media see Facebook as the most valuable social media platform. (Net: Valuable, N=156)

67% 23%

60%

26%

58% 46%

44%

Twitter

FourSquare

13%

Yes, extensively Yes, moderately Yes, minimally

www.krcresearch.com

No

Facebook

Blogs

LinkedIn

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Primary value of Social Media in CSR Efforts Nearly 4 in 10 executives agree that the primary value of social media tools for CSR lies in creating opportunities to expand and reach diverse audiences. Overall, what do you see as the primary value of social media tools to CSR or pro-social programs?

They create opportunities for companies to reach broad and diverse audiences

38%

They allow companies to connect directly with consumers in low-cost, efficient ways

29%

They enable companies to engage specific constituencies with greater ease

11%

They facilitate open and transparent dialogue

7%

They allow consumers to serve as advocates, inviting their networks to get involved

7%

They help drive earned media coverage www.krcresearch.com

1% impact.webershandwick.com

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Impact of Social Media on communications Most feel social media has the greatest impact on the quality of CSR communications with consumers. In general, is social media changing the way your company communicates about your CSR or pro-social programs with‌

What impact has social media had on the quality of your communications with the following audiences? NET No Positive Impact

% Yes Consumers

Consumers

-2%-1%

Nonprofit partners

-2%-1%

36%

59%

36%

51%

44%

50%

43%

41%

52%

49%

Media

39%

Nonprofit partners

35%

Media

Policy makers and influencers

24%

Policy makers and influencers

Very negative

www.krcresearch.com

23%

20%

31%

-2%-1%13%

-1%-2% 9%

37%

32%

Somewhat negative

Very positive

Somewhat positive

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Driving Awareness of CSR Executives see integrated communications, including social media, as a priority, underscoring the importance of aligning community outreach, executive visibility and earned media efforts. Here is a list of ways organizations communicate. Please tell me how effective you find each to be in raising awareness about your organization’s work on CSR or pro-social programs- very effective, somewhat effective, not too effective, or not at all effective. NET Effective

Community events

Executive outreach

-9% -14%

Social media

Earned media

-7%

-18%

-9% -16%

Not at all effective www.krcresearch.com

48%

-6% -8%

32% 31% 22%

Not too effective

85%

37%

75%

43% 41%

71%

49% Very effective

70%

Somewhat effective impact.webershandwick.com

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Driving Engagement in CSR Executives also agree that community events are the most effective way of driving engagement with clients and customers. Here is a list the same list. Please tell me how effective you find each to be when it comes to driving engagement with clients and customers. Again let me know if you think it is very effective, somewhat effective, not too effective, or not at all effective. NET Effective

-9% -14%

Executive outreach Social media

Earned media

-9%

-18%

-11% -15%

Not at all effective www.krcresearch.com

45%

-7% -7%

Community events

30% 27% 22%

Not too effective

38%

83%

44%

74%

41%

68%

46%

Very effective

69%

Somewhat effective impact.webershandwick.com

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Appendix: Respondent Profile

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Respondent Profile Main Focus/Responsibility

Job Title EVP/SVP/VP/Director of Communications

36%

EVP/SVP/VP/Manager of Community Relations

25%

CEO/President/Executive Director of Corporate Foundation

14%

EVP/SVP/VP/Director of Corporate Social Responsibility (CSR)

13%

EVP/SVP/VP/Director of Social Media

7%

Chief Financial Officer (CFO)

4%

Other

2%

Role in Organization’s Communications Efforts Part of a senior team responsible for CSR efforts

38%

Influential by giving input on CSR efforts

32%

Directly manage or oversee all CSR efforts

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30%

Communications overall

33%

Community relations

23%

Corporate social responsibility

19%

Corporate philanthropy

19%

Social Media

6%

Other

0%

Primary Focus on Corporation’s CSR Work Environmental sustainability

22%

Economic development

10%

Education

10%

Global development

10%

Children and family issues

9%

Health and nutrition

7%

Arts and culture

4%

Multiple issue-focused

26%

Other

1%

Gender Male

51%

Female

49%

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FOR MORE INFORMATION: PAUL MASSEY, 202.585.2799 pmassey@webershandwick.com STEPHANIE BLUMA, 202.585.2755 sbluma@webershandwick.com COLIN MOFFETT, 202.585.2045 cmoffett@webershandwick.com VICTORIA SNEED, 202.585.2814 vsneed@krcresearch.com JONATHAN BENTLEY, 202.585.2732 jbentley@krcresearch.com KRC Research 700 13th Street NW Washington, DC 20005

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