Presentation For Baptist U Pr Summit 2009

A Bad Day at Headquarters

Downside of Not Participating in Today’s Continuous Conversation

Hong Kong - September 13, 2009

Local and global…and local

Not so happy meal…

One bad apple…

Three stripes and you’re out-ed…

Local NGOWebsite

Local NGOWebsite

BBSBBSWhistle Blower

a.k.a.security guard,

employee

Whistle Blowera.k.a.

security guard,employee

Press Releaseor Conference

withLocal Media

Press Releaseor Conference

withLocal Media

Local NGOLocal NGO

Local NewsLocal News

Blog TranslatorsBlog Translators

Press Releaseor

Conference

Press Releaseor

ConferenceInternational

NGOs

InternationalNGOs

InternationalMedia

InternationalMedia

InternationalBlogs

InternationalBlogs

InternationalNGO Website

InternationalNGO Website

Day 1Day 6-7

Day 4-5

Day 8: A Bad Day at Headquarters

A bad day at headquarters…

“In this transparent world, how you live your life and conduct your business matters more than ever… Companies that get their ‘hows’ wrong won’t be able to clean up their mess by taking a couple of reporters to lunch…But this also creates opportunities…’how’ you keep your promises…build trust…collaborate…lead”

Tom Friedman, “The Whole World is Watching”The New York Times, 6/27/07

The global insight

Responsible Companies: A mix of “what” and “how”

B62-73. When you think of good and responsible companies, how important is each of the following factors to the overall reputation of the company? Please use a nine-point scale where one means that factor is “not at all important” and nine means it is “extremely important” to overall reputation. (Top 4 Box) 25-64 Informed publics in 6countries

Businesses are expected to act quickly andmake significant changes when problems arise

B83-90. How much would you trust companies to take the following actions when problems or difficulties arise? Please use a 9-point scale where one means that you “DO NOT TRUIST THEM AT ALL” and nine means “YOU TRUST THEM A GREAT DEAL” to take this action when problem arise. (Top 4 Box), Informed publics ages 25-64 in 6 countries

Cap pay for executives who are accountable for the problems

Fire any executives or employee found to be guilty of wrongdoing

Partner with governments, or other third parties to solve the problems

Make full public disclosure about the problems and their causes

Have senior executives take a visible lead in communicating about the problems

Admit their mistakes when things go wrong

Make significant changes so the problems don't happen again

Act quickly to correct problems

End-to-end social engagement

OLD: Pyramid Model

Organization

Mass Audience

Consumers

Media

NGOs

Investors

Regulators

Employees

Trade

Organizations

NEW: Sphere of Cross- Influence

The big picture…

Western pressure Well defined expectations in Asia

Pacific

Rebalancing of power

Five drivers

1.Social and environmental challenges

2.Government activism

3.Growing influence of NGOs

4.Passionate consumers

5.Web and mobile communications

Pollution Social inequity

Social and environmental challenges1

Government activism

“Our economic growth is realized at an excessively high cost to resources

and the environment”

October 15, 2007

17th National Congress of the Communist Party of China

2

Growing influence of NGOs3

NGO networks

Passionate consumers4

Brand advocates

Explosion in web and mobile use

Web and mobile communications5

Making business sense

4. Be an Advocate

2. Listen to New Voices

3. Converge around Big Ideas

The Asia-Pacific imperative

1. Get your House in Order

• Audit and Transparency

• Understand and address business risks and opportunities

1. Get your House in Order

• Assess existing CSR initiatives against “real” needs

• Government, NGO, employee insights

• NGOs

2. Listen to New Voices

• Employees

• Consumers

Academics, a person like yourself most credibleCEO and government increase in APAC despite global drop

D112-118. [TRACKING] Now I’m going to read you a list of people. In general, when forming an opinion of a company, if you heard information about a company from that person, how credible would the information be—extremely credible, very credible, somewhat credible, or not credible at all? (Top 2 Box) Informed publics 25-64 in 18 countries

59%

47% 46%42%

39%35%

31%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

An academic or expert on that

company's industry or

issues*

A person like yourself

Financial or industry analyst

CEO of company Non-profit organization or

NGO representative

Government official or regulator

Regular employee of a company

APAC

*asked as “an academic” in 2008

• Take on Important Issues

• Moving from corporate philanthropy to “Green is Green”

• Partnering with Civil Society

3. Converge around Big Ideas

Environment Social

4. Be an Advocate

• Creating Credible Sources of Information

• Evolving Role of the CEO

• Issues Management

Bringing it all together

Social engagement continuum

China Business Society Continuum

“Feel good”

Passive

Socially Engaged

Informed Observer

Nonaligned Aligned

Involved

Uninvolved

Knowledge/Know-howLine

Action Line