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					    GLOBAL CORPORATE CITIZENSHIP:
A NEW AGE FOR CHILE AND THE AMERICAS


                   BRADLEY GOOGINS PhD
                    EXECUTIVE DIRECTOR
                      googinsb@bc.edu
                        August 2003



     THE CENTER FOR CORPORATE CITIZENSHIP AT BOSTON COLLEGE
  55 LEE ROAD • CHESTNUT HILL, MA 02467 • www.bc.edu/corporatecitizenship
                                        Economic Sector
                                        “Wealth Creation”


                                  Partnerships                         Legislative Input
                                  Planning Collaboration               Mutual Education
                                  Reciprocity




                    Civil Society
                        Non Profits
                                                                           Political Sector
                        NGO’s                        Home Based                   Policy Makers
                        Advocates                     Implementation              State and
                                                     Evaluation
                        Academia                     Research
                                                                                   Federal




                                              Public at Large
                                           Corporations as Good Citizens
                                           Public Relations
                                           Outreach

Source: Waddock, Bodwell, Leading Corporate Citizens, Boston College
High Anxiety




         The Economist 09/2000
    Globalization and Corporations




Income disparities, environmental damage, and cultural
   degradation are pointing the spotlight on companies
                                          Slide courtesy of BSR
Kofi Annan and the UN Global Compact


            “…let’s choose to unite the powers of
            markets with the authority of universal ideals.
            Let us choose to reconcile the creative forces
            of private entrepreneurship with the needs of
            the disadvantaged and the requirements of the
            next generations…”


             Kofi Annan, UN Secretary General
John Elkington -CEO of SustainAbility

                         “The speed of globalization often
                           means that companies are
                           moving ahead of the ability of
                           current governance systems to
                           monitor and police. Companies
                           will be expected to fill at least
                           some of the gap.”




       Quote from the Novartis Health, Safety Environment Report 2000:
       Sustainability and the UN Global Compact
“We also want to benefit society through our economic
 contribution, through the positive environmental and
 social consequences of our activities and through an
          open dialog with our stakeholders.”

                 Dr. Daniel Vasella,
            Chairman & CEO, Novartis AG




       Quote from the Novartis Commitment to the UN Global Compact - July 14, 2000
What does Corporate Citizenship look like?


                Employees
    Customers                Environment


    Community
                Government      Legal
    Involvement
                  Affairs
Stakeholder Engagement – The Key




               CC
Issues Driven by Stakeholders




             CC
             Drivers of the “New”
             Corporate Citizenship

   Government Retrenchment
   Globalization & The Economic Power of Business
   New Activism and Compliance Pressures
   The Rise of Civil Society
   New Expectations for Business
   The Business Case
   The “War for Talent”
       The Scope of Citizenship


    Identity                          Governance
     “Infusing”                         “Integrating”
corporate citizenship               corporate citizenship
 into the company                    into the company’s
                                   organizational structure




                        Practice
                     “Embedding”
                 corporate citizenship
                into business planning
                    and operations
                   SM
Neighbor of Choice is a strategy that links business
success to corporate citizenship. It is a blueprint for
developing, implementing and institutionalizing a
corporate-wide community investment strategy. It
provides:
   •ROI (for the business and community)
   •Positions the business as a leading corporate citizen
   •Builds community support for the business
The Neighbor of Choice Strategy
                         SM




                          Vision/Mission: links
                       community & business success



    Building relationships                  Identifying key issues,
    of trust                                concerns, and needs
    (identify stakeholders)                 •external threats & opportunities


                  Strategic programs/responses that serve
                  company and community needs
                  •social investment/contributions
                  •partnerships
                  •volunteerism

                                                         source: Boston College CCCR
 What is the “community?”




Where employees                                    Fenceline   Immediate
                  Employee                                     neighbors
live/concerns                                     Community
                  Community



             Cyber             The Corporation           Impact      •Operations
Internet                                                             •Influence
           Community           in the community        Community     •Exit
                                                                     •Entry




 Geographical         Site                         Interest    Common interests
                   Community                      Community
  Your goal: build community support

       Be an asset in the community, and the community will be an asset to you...



 •recruitment                                             Reputation     •virtuous circle
                     Employee                                            •investors
 •retention                                               Value add
 •productivity       Value add


                 Customer            The Corporation              Business       •New markets
•attraction                                                                      •R&D
•image           Value add           in the community            Value Add
•commitment




  •regulation            LTO/                              Community      •Address problems
  •risk reduction    Regulatory VA                          Value add     •Do the “right thing”
  •trust
  A Roadmap to Excellence in
Corporate Community Involvement

The Standards of Excellence: 7 management
principles and practices for creating corporate
community involvement excellence.

1.   Leadership
2.   Issues Management
3.   Relationship Building
4.   Strategy
5.   Accountability
6.   Infrastructure
7.   Measurement
               The Standards of Excellence in Corporate
               Community Involvement

STANDARD I: Leadership                            STANDARD V: Accountability
Senior executives demonstrate support,            All levels of the organization have specific roles
commitment and involvement in community           and responsibilities for meeting community
involvement efforts.                              involvement objectives.

STANDARD II: Issues Management                    STANDARD VI: Infrastructure
The company identifies and monitors issues        The company incorporates systems and policies to
important to its operations and reputation.       support, communicate and institutionalize
                                                  community involvement objectives.
STANDARD III: Relationship Building
Company management recognizes that building       STANDARD VII: Measurement
and maintaining relationships of trust with the   The company establishes an ongoing process for
community is a critical component of company      evaluating community involvement strategies,
strategy and operations.                          activities and programs, and their impact on the
                                                  company and the community.
STANDARD IV: Strategy
The company develops a strategic plan for
community programs and responses that is based
on mutual issues, goals and concerns of the
company and the community.
                    Standards of Excellence:
                          Leadership

Company leadership
 Recognizes strong                     Leading Companies
  community relationships
  critical to business goals            • SC Johnson Wax
 Endorses and ensures                  • Dayton Hudson
  community vision statement            • IBM
                                        • Merck
 Personal example and
                                        • Shell
  involvement
                                        • BP Amoco
 Communicates expectations


Board of Directors is involved
                   Standards of Excellence:
                          Strategy



   CR strategic plan              Leading Companies
     – Linked to goals of
                                  • Merck
       business units
                                  • EDS
     – Linked to identified       • Whirlpool
       issues                     • Levi Strauss
     – Use variety of resources   • Olin
       to respond to community    • Rockwell
       needs, issues, etc.        • Diageo
   Communications plan           • IBM
                                  • London Benchmarking Group
                   Standards of Excellence:
                      Issue Management


   Company IDs and monitors
                                        Leading Companies
    issues
   Stakeholders IDed and             • Merck
    defined                           • Southland/ 7-11
   2-way system to ID and            • IBM
    analyze relevant issues           • Levi Strauss
   Early warning system              • Wal-Mart
   Community issues factored         • Target
    into business plans               • General Mills
                   Standards of Excellence:
                    Relationship Building



   Proactive CR-building plan         Leading Companies
   All employees involved
                                      • Bell Atlantic
   Tactics emphasize 2-way
                                      • Target
    communications to foster
                                      • Wal-Mart
    trust and credibility
                                      • Merck
                                      • State Farm
                                      • Ameritech
                                      • BP
                    Standards of Excellence:
                    Roles and Responsibilities


   Clearly defined and                    Leading Companies
    articulated
   Specific CR department:            • FedEx
      – Reports to top level           • IBM
      – Develops CR plan               •Time Warner
                                       • Steelcase
      – Consults with operating
                                       • Whirlpool
         units
                                       • Honeywell
   Impact on communities              • Target
    considered by departments/         • Monsanto
    units
                 Standards of Excellence:
              Supporting Systems and Policies


   Cross-functional teams            Leading Companies
     – Plan community strategies
     – Assure cross-functional      • Merck
       linkage                      • Diageo
     – Foster internal              • Arch Chemical
       communications               • Home Depot
                                    • Timberland
     – Secure recognition
                                    • Target
   Involve all employees           • NOVA Energy
   Company-wide communications     • Texas Instruments
                     Standards of Excellence:
                          Measurement



   Ongoing process of               Leading Companies
    evaluating CR strategies,
    programs                       • EDS
                                   • Battelle
   Indicators developed for
                                   • Diageo
    evaluating community
                                   • IBM
    priorities
                                   • Pillsbury
   Evaluation results used to     • London Benchmarking Group
    make future decisions          • PPL
   Partnership Building Blocks

        Communication




Commitment           Collaboration
           The Stages of
Business and Community Development

                                                        Stage 3: Integration
                                                        Integrated, cross-
                                                        functionally aligned with
                              Stage 2: Experience       supporting
                              Pilot initiatives or      organizational structures
                              specific programs         and systems. Draws on
 Stage 1: Awareness           designed to produce a     a wide variety of
 Traditional involvement in   clearly identified        corporate and
 low- to moderate-income      business and              community resources.
 communities. Driven by       community benefit.        Clear business and
 community relations and      Includes strategic        community value.
 philanthropy for             philanthropy. Corporate
 community benefit,           involvement often                M ore integrated,
 corporate responsibility     limited to one or two            formal process
 and                          business units.
 reputation enhancement.

     Less integrated,
    informal process
                  Why Should We Do This?
                                  Motivational Silos
                           Societal
                           Factors



    Value              Compliance            Intangible                Market
   Drivers               Drivers               Drivers                 Drivers
* Right thing to do    * Regulation        * Social issues          * Location
* Social mission       * Activism            influence business     * Customers
* Legacy in our        * Negative press      (education,            * Labor
  community                                   community,            * Suppliers
                                             economic stability,
Dominant Response      Dominant Response     employee safety)       Dominant Response
* Philanthropy         * Resistance        * Build reputation and   * Strategic social
* Strategic            * Minimum             image                    investment
  Philanthropy          Compliance                                  * BCD projects
* Partnership Events                       Dominant Response
                       * Philanthropy                               * Direct investment
                                           * Strategic social
                                             investment
                                           * Pilot BCD projects
           Strategic BCD Framework

  Identify Issues                           Identify Stakeholders
                                             Societal
 Business challenges
 Societal pressures and                     Market
  opportunities
                                             Internal and External
 Community needs



              Identify Organizational Capabilities
               Core business resources
               Core Community Relations resources
               Community resources




   Design a Business and Community Development Strategy
    Draw on market and societal drivers
    Balance risks and opportunities
    Include internal and external partners
    Improve business performance
    Supports sustainable community economic development
  Success in the 21st Century

          Who you are and
         what you stand for
  are becoming just as important
as the quality of your products and
               services

				
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