DATA ™ REAL NOT SPIEL RESEARCH REPORT How to communicate corporate social responsibility (CSR) and charity investment to a skeptical and mis-trusting consumer Research data Communications insights Best practice communication guidelines

An initiative of Cavill + Co and Sweeney Research - October 2008 © Cavill + Co & Sweeney Research, October 2008 This report is brought to you by

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© Cavill + Co & Sweeney Research, October 2008 except as permitted under the Copyright Act 1968. No part of this report will or can be reproduced by any process including photocopying, electronic or otherwise without the written permission of Cavill + Co. If you disregard this notice, karma may get you! What’s inside

Welcome to the real world Page 3 Definitions Page 5 Real quick snapshot Page 7 Scope of the study Page 8 10 Individuals, 8 Insights Page 10 Insight 1 Generation me Page 11 Insight 2 What the? Page 16 Insight 3 CSR impacts the bottom line Page 21 Insight 4 Vigilante Consumerism is alive and kicking Page 25 Insight 5 Applause for a cause Page 28 Insight 6 Commitment and synergy wins over skepticism Page 32 Insight 7 The real thing Page 35 Insight 8 Women rule Page 39

A few busted myths Page 43

Best practice guidelines Page 45

The people behind the report Page 57 A word from the CSR experts Page 63 Some refreshment Page 65 Really good resources Page 67 Real big thanks Page 72

“ Responsibility walks hand in hand with capacity and power” Josiah Gilbert Holland

© Cavill + Co & Sweeney Research, October 2008 except as permitted under the Copyright Act 1968. No part of this report will or can be reproduced by any process including photocopying, electronic or otherwise without the written permission of Cavill + Co. If you disregard this notice, karma may get you! REAL NOT SPIEL™ - RESEARCH REPORT © Cavill + Co & Sweeney Research, October 2008 2 Welcome ...

such as Qintex and the resulting Skase scandal. The information revolution began, with the internet leading the way, bringing with it the opportunity for consumers to become educated and savvy about the operation of companies and marketing, and most importantly, sharing that on a grand scale. Companies could no longer hide behind their PR teams, could no longer control what consumers hear. Terms such as ‘good corporate citizen’, ‘triple bottom line’ and ‘earning your license to operate’ entered the corporate language, but any form of doing good was seen to be ‘soft’ by senior management. Scattergun philanthropy was rife, often driven by the Chairman’s chequebook, and sponsorship (mostly of sports and arts) was primarily for commercial gain. A few social entrepreneurs such as Anita Roddick and John Bell flew the social conscience flag, demonstrating that it was possible to maximise profit with social and environmental responsibility at the forefront, but they were few and far between.

In the noughties (00s) we saw Bush take over the USA presidency, earthquakes in India killing 12,000, 9/11, the invasion of Aghanistan, Iraq and natural Since 1995 when Cavill + Co disasters like the Asian Tsunami. The collapse of companies such as Pasminco, HIH and Enron as well first began, we’ve had the as Ansett – the latter leaving 16,000 jobless – eroded privilege of working with consumer trust in corporate Australia. Michael Moore and documentaries such as The Corporation made us numerous organisations to question even further the motives and accountability facilitate partnerships between of corporations. With so many natural disasters, and compelling evidence from the Al Gore camp, companies and causes. As we we started to take global warming seriously. The explosion of Gen Y-ers into the job market caused enter our 14th year, we’re proud a transformation of workplace practices – Y-ers to look back on 31 partnerships wouldn’t tolerate poor treatment and with our ageing population, companies had to do all they could to investing over $22m into the attract and retain staff. Community Engagement and community sector. Staff Volunteering entered the corporate language. For brand marketers, product differentiation became Over 13 years we’ve seen the Australian market harder and a values-based proposition became change considerably, and this has impacted how popular - Cause Related Marketing (CRM) was an companies operate and communicate. effective strategy, but by 2008 consumer trust in corporations had hit an all time low and the fear of The 90s brought us the Gulf War, bombings in skepticism was making companies nervous about Oklahoma, shootings in Columbine and the Clinton communicating their good deeds. scandal. Famine in Africa, Live Aid, corporate collapses

3 Welcome ... to the real world

Corporate Social Responsibility (CSR) became a term We spoke to our friends at Sweeney Research who that was discussed at length, as companies recognised came on board as a partner along with some of the the need to be accountable for all outcomes, not just CSR corporate leaders, to identify what consumers financial. Some companies began to turn talk into are saying about CSR and how they want to be action and action into results. It really was just a handful communicated with. Real not Spiel™ details those though – only four years ago I attended the first CSR findings. We believe thatReal not Spiel™ confirms Summit in Sydney, and almost all the speakers and beyond a doubt that a company’s CSR standing, case studies were international, because Australians can and will impact the bottom line. Specifically, it were still grappling with the meaning of CSR. CAN and does positively impact differentiation and product sales, enhances reputation, attracts and So CSR has gone from ‘should we do it’ to ‘how retains employees, earns trust. The answer lies in do we do it’ and the next decade will bring into action and measurement followed by conscious and focus the need to measure CSR, report on CSR thoughtful communication to today’s consumer that to stakeholders and communicate CSR to all we must recognise is attentive and demanding but stakeholders, especially consumers. relatively uneducated when it comes to CSR. As we enter yet another new era (at the time of publication However, in 2008 consumers are more marketing the stock market has crashed and the United States savvy than ever and even more skeptical. With so of America has gone into recession) the bottom line many corporate collapses and perceived corporate is now very much in sharp focus. greed, they have little respect or trust in corporations. Australians are the most skeptical consumers in the Whether Australia follows the world into recession or world! They’re far more discerning about the products not, the most successful companies are those that and services they buy – the values of the company pursue winning strategies during the ‘tough’ times. selling it now matters. Companies have to be far They are the ones that not only survive but thrive more accountable for their actions and impacts. Big through it. Companies need to stand tall and stand contracts and the brightest staff are often won or lost out and those with a strong CSR platform are less based on a demonstrable CSR policy. imitable than their competitors. Those companies that have a solid CSR program in place may reap Over the years, watching the world change, noticing the benefits, tapping into the so called ‘Reservoir the trends, working with numerous companies to of Goodwill’. Now is not the time to suspend or end help them form partnerships with causes, we’ve all CSR activity and expenditure. It is the time to noticed one thing: some companies will spend a increase accountability through robust measurement great amount of time and money developing CSR and communicating CSR stories to employees and strategies, wonderful programs, fabulously innovative consumers who will reward you with their loyalty. ideas, only to fail miserably when it comes to communicating these strategies to consumers. Our Hailey Cavill ‘gut feel’ was that corporate and brand marketers, Director advertising agencies and PR consultants, were just Cavill+ Co treating CSR as just another piece of the marketing armoury, whereas in actual fact it required a very different style of communication. We felt that some communications campaigns were simply creating further skepticism and alienating consumers from a company or brand which was actually trying to do some good. We felt that in order to capture customer HeartShare® a different style of communication was required. But we needed more than just a gut feel!

REAL NOT SPIEL™ - RESEARCH REPORT © Cavill + Co & Sweeney Research, October 2008 4 Definitions

CSR: Corporate Social The term ‘Green sheen’ has similarly been used to describe organisations which attempt to Responsibility appear that they are adopting practices beneficial CSR is simply how organisations – large to the environment. corporations and small to medium enterprises in the public and private sector – manage their Source: Wikipedia operations so there is minimal negative impact and maximum positive impact on society, the Spin environment and importantly, for their ultimate In public relations, spin is sometimes a survival. The six key practices of CSR are derogatory term signifying a heavily biased portrayal in one’s own favour of an event or 1. Ethical practice situation. While traditional public relations 2. Governance may also rely on creative presentation of 3. Community Engagement the facts, “spin” often, though not always, 4. Environmental Impact implies disingenuous, deceptive and/or highly 5. Marketplace Practices manipulative tactics. Politicians are often accused 6. Employee Satisfaction of spin by commentators and political opponents, Source: CSR Jargon Busting Tree, Cavill + Co when they produce a counter argument or www.cavill.com.au > CSR Jargon Busting Tree position. Source: Wikipedia Spiel Plausible glib talk – especially useful to a Cause Related Marketing salesperson. When a company with a product, image Source: Wordnet.princeton.edu or service to market, builds a relationship or partnership with a cause or not-for-profit A lengthy and extravagant speech or argument organisation for mutual benefit, usually usually intended to persuade; a fast excuse or in order to achieve marketing objectives. sales pitch; to talk at length. Source: Cavill + Co Souce: Wiktionary Cause Related Marketing (CRM) is not philanthropy or altruism. It is based on a Real recognition by businesses that linking with Substantial: having substance or capable of charities or good causes can be mutually being treated as fact; not imaginary. beneficial. It is a way of addressing current social Source: William Shakespeare (and who would argue issues by providing resources and funding, whilst with him) addressing business marketing objectives. CRM is intuitively appealing: it provides a win, win, win situation for all involved - for the Greenwash business, the charity or good cause and the Greenwash is a term used to describe the consumer. perception by consumers that they are being misled by a company regarding the Source: Business in the Community, UK environmental practices of the company or the environmental benefits of a product or service.

5 “ I want to work for a company that contributes to and is part of the community. I want something not just to invest in. I want something to believe in” Anita Roddick

“ Today a company must stand for more than just making a profit. There are two great benefits for doing that: the best people will want to work for you and the consumers will want to support you. In business today, service is not an issue – if you don’t provide service, you’re out of business. Quality is not an issue – its something you have to have. Price and styling are all dictated by the market. The only issue left is what you stand for” John Bell, Founder of Esprit, The Age 1993

REAL NOT SPIEL™ - RESEARCH REPORT © Cavill + Co & Sweeney Research, October 2008 6 Real quick snapshot

Real Not Spiel™ - for the first time in Australia an in depth look at consumers’ CSR knowledge and preferences designed to support decision making.

The research has validated some of our gut feelings, but has delivered some surprises too.

What we’ve discovered is that Australians are indeed parochial. When it comes to social and environmental issues, we are more concerned about our own back yard and what impacts us daily, than the bigger global issues.

Australians are more concerned about people – their family, their co-workers, and their local community – than global environmental or overseas issues.

The top 3 causes that consumers believe companies should support are medical research, health or medical care for children and child protection.

Australians expect companies to be responsible – and for them this means supporting the community and charities, reducing environmental impact, being honest, treating employees well, but they don’t understand the term CSR or the jargon associated with it, especially new green terminology. Some consumers believe that they are being deliberately deceived by companies who are blinding them with science.

CSR activities can and do positively impact the bottom line. CSR activities can enhance a company or brand reputation, engender customer loyalty, increase product sales, attract share purchase and retain employees. However it can only add value if the basics are delivered – basics such as quality products, fair price and good after sales service.

On the other hand poor CSR can lead to boycott and negative word of mouth. Consumers are most angered by companies making huge profits, paying large salaries whilst overcharging customers as well as failing to provide safety for customers and staff. Misleading environmental claims and misleading charity investment is far worse in consumer eyes than actually damaging the environment!

The charity sector is most trusted to do what is right by society, followed by small local business. Large publicly owned multi-national companies are not trusted. Charities are also the 2nd most trusted source of CSR information, after Consumer organisations such as Choice. Editorials in the media are trusted by half of consumers. TV advertising is trusted by less than a third.

Skepticism in Australia is rife, especially towards companies’ investment in charities. Consumers are savvy enough to realise that some companies are doing this as a way of winning goodwill or increasing sales. What overcomes this skepticism is commitment to a cause over the long term and a good fit between the company and the cause.

Consumers want to know what companies are doing but they are more interested in what companies have done. They want honest and clear communication. They want validation and they want to see results.

Women are the most sensitive to, influenced by and trusting in many aspects of CSR, it really appeals to them. The 35+ age group are more aware, concerned and influenced by CSR activities, rather than Gen Y as one would have thought.

7 Scope of the study

We recognise that CSR covers many aspects of a company’s operations from marketplace practices, treatment of employees, supply chain, ethics, corporate governance, community engagement and charity investment, environmental impact and so on.

In compiling our Q&A for this study we scoured Australia and overseas for existing data on the topic of CSR and CSR communication and refined our Q&A to ensure that our study answered new questions or provided greater depth to existing data. There is already a great deal of data that exists in the area of employee engagement, trust and ethics so whilst we touched in this area, the key aspects of our study cover communication of charity partnerships, environmental practices and CSR communication in general.

What we did and how we did it

To help prepare this report, Sweeney Research conducted a two-stage research study.

Qualitative Three focus groups with male and female adults representing:

• SINKS/DINKS, 18-24 year olds • Parents, 30-45 year olds • Empty Nesters, 50-65 year olds

All participants were required to complete a journal prior to attending the focus groups, recording what they had noticed in the marketplace with respect to CSR activities and practices.

Quantitative 500 online interviews between 4-7 September 2008 with randomly selected adults from across Australia. Most questions were prompted, meaning that respondents were asked to agree or disagree on statements.

REAL NOT SPIEL™ - RESEARCH REPORT © Cavill + Co & Sweeney Research, October 2008 8 Demographic Breakdown Geographic Breakdown

Male 250 Capital city 325 Female 250 Regional/rural 175 Under 25 58 NSW 160 25-34 122 Victoria 114 35-44 121 Queensland 82 45-54 106 SA 57 55+ 93 WA 64 Other 23

9 10 Individuals | 8 Insights

What we found out

™ The Real Not Spiel™ team comprises 10 From these insights the Real Not Spiel team individuals from varied sectors, with extensive have created 26 Best Practice Guidelines for expertise and over 300 years of experience. communicators, which can be seen on p.45. Research has the ability to provide you with data, and it was our job to interpret that data and work out ‘what on earth does this all mean?’ The Real Not Spiel™ team has analysed the research data from both the quantitative and qualitative study and has agreed on eight key insights from the total research data. These eight insights have been drawn from overwhelming evidence provided by our study, support from other studies here and overseas, and our years of experience working in CSR and communications.

REAL NOT SPIEL™ - RESEARCH REPORT © Cavill + Co & Sweeney Research, October 2008 10 Insight 1 | Generation me

• Australians are more concerned about their own back yard versus global issues • CSR activities matter to them if it impacts them • Me-ism is prevalent across all age groups and geography, it’s not just Gen Y!

What concerns people most? Q Thinking generally about social issues in Australia – what aspects concern you most? Water management 63% Lack of water for future generations 62% Safety for our children 58% The overloading of our health system 54% Disrespectful behaviour by youth of today 54% Breakdown in good social values 52% Poverty and the growing divide between rich & poor 50% Increase in crime 50% Mental health (including depression) 49% The rise in alcohol and drug use 47% Global warming 47% Rise in obesity 44% Rise in cancer 44% Survival of the planet 42% Rising debt of Australians 42% Domestic violence 42% Sustainable food production/supply 41% Homelessness 41% Extinction of animal species 41% Our ability to cope with our increasing aging population 40% Lack of interaction between people (eg. people just don't talk anymore) 39% Terrorism 36% Breakdown of family connectedness 34% Breakdown of a sense of community 31% Equal rights - eg. for people with disabilities, gay marriage 30% Lack of access to quality education 29% Environment Indigenous health 25% Lack of access to technology (such as the Internet) in rural or remote areas 19% Health Reconciliation with indigenous people 17% Society

11 Social concerns

In this survey we asked people to think about a range of social issues in Australia, and tell us which concerns them the most.

The chart opposite ranks the issues in the order of nomination, and breaks them into environmental, health, and general societal aspects.

As we can see, concerns about water top the list. With safety for our children, an over-loaded health system and outh behaviour also high on the list.

CSR priorities

Later on in the survey, we asked people about what CSR priorities they felt the main priorities Q. In terms of being Socially Responsible what do you believe should be the main priorities of Australian companies of Australian companies? should be when it comes to MEAN SCORE OUT OF 10 A LOW PRIORITY A VERY HIGH PRIORITY being socially responsible. Having accurate and honest product labelling and advertising 8.4 Looking after their employees through things such as flexible work hours and safe and pleasant working conditions 8.0 People are most concerned Minimising their own impact on the environment 7.8 about the issues of Not manufacturing or buying goods from countries or suppliers who allow poor 7.8 labour and environmental practices accurate and honest Helping to eaddr ss social problems caused by their own products or activities 7.8 product labeling and Creating jobs 7.7 advertising, and employee Supporting the local communities in which they operate 7.4 welfare. It is noteworthy Helping to address general social problem in Australia 7.2 that there is a much greater Supporting organisations which actively protect the environment 7.2 desire for organisations Developing new products or services to address social problems 7.2 to support the Australian Supporting the national Australian community via Australian charities 7.1 community through Supporting the Global community via global charities 6.2 Australian charities, than Making a healthy profit for their shareholders 5.7 Sponsoring arts and sporting events the global community. 5.3

“ I think patriotism is like charity - it begins at home.” Henry James

REAL NOT SPIEL™ - RESEARCH REPORT © Cavill + Co & Sweeney Research, October 2008 12 Supporting causes

The Generation Me Supporting causes influence also extends to Q There are many types of causes or charities that Australian companies and brands could support. We have listed a number of these below. To what extent are you in favour of companies & people’s preferences for the brands being involved in supporting the following causes? causes that organisations Medical research for diseases such as cancer, AIDS 76% 22% 2% should support as part of Health or medical care for ch ildren 72% 25% 3% Child protection 71% 26% 3% their CSR strategy. Hospitals 67% 30% 3% Australian natural disasters (eg. drought) 67% 31% 2% Here we see the things Organisations which look after public safety (eg. first aid) 63% 35% 2% Environmental issues 62% 33% 5% that are likely to affect their Education 62% 34% 4% lives, such as medical Mental health (including depression) 60% 36% 4% research for themselves Disability services 60% 36% 4% and their children; hospitals; Human rights 59% 36% 5% Aged care and carers 59% 38% 3% and local disasters, at the Homelessness poverty and hunger 57% 39% 4% top of the list. Relatively Youth issues (eg binge drinking and suicide prevention) 54% 38% 8% few are strongly in favour of Animal welfare and protection 54% 35% 11% support for international aid Global disasters eg. earthquakes 43% 47% 10% Indigenous people and support networks 39% 42% 19% organisations. International aid organisations 34% 48% 18% Strongly in favour In favour Not in favour

Many in the industry believe the environment is the top cause. What this chart shows very clearly is that people want to invest in people. Compared to the same quesiton asked in 2001 in the Heart & Sold study, the top three concerns were ranked in exactly the same positions. The causes that have shown significant movement are hospitals and public safety.

13 Research insight | Communication insight

David Barmer Hailey Cavill Sweeney Research Cavill + Co

While these results reveal a great When communicating any CSR activity – deal, its very interesting to see that especially environmental – companies and ‘survival of the planet’ and ‘global communicators must take into account the warming’ rate as a lower concern to need to make it relevant to the man and such things as water management, woman on the street. Focus on how the lack of water, children’s safety and activity positively impacts them, avoid broad our health. We believe that me-ism is global issues that will go straight over their the cause here. People are thinking heads. And given we are such a sport about how the drought impacts on mad nation, how come sponsoring sports them not being able to wash their and arts is at the bottom? We know from cars or water their gardens. They previous research that sponsorship is seen are thinking about their kids and their as extremely valued by consumers – they health. They are far more focused on know that there are companies investing what is happening in Australia than in valuable cultural, sporting and artistic overseas. events and programs. Our take on this is that consumers simply don’t see sponsorship as Similarly when we asked people part of CSR and therefore it would not rate about Australian companies’ as being valuable. Sponsorship is – and priorities, we see it is the things that has always been – more of a commercial could affect them and their lives activity than altruistic. What is interesting is that are at the top of the hierarchy. that consumers now know this, so companies Having accurate and honest labeling need to clearly separate their commercial and advertising, and looking after sponsorships from their CSR activities – and employees, are aspects at the top of communicate them differently. the list.

CONSUMER COMMENT “Potential customers need to identify with what they’re (the company) doing. Like, I’m a guy so if I see a pink bottle cap on water I think ‘oh yeah that’s good’ but I don’t really care as it’s not going to happen to me” (Gen Y)

REAL NOT SPIEL™ - RESEARCH REPORT © Cavill + Co & Sweeney Research, October 2008 14 Supporting research

The 2008 Eye on Australia study conducted by Grey Worldwide asked consumers ‘what keeps you awake at night?’. The top result was personal finance at 45%, followed by home affordability at 44% (both would have risen due to the current economic crisis), followed by enough money to retire 42%, family 36% and environment 33%.

“ It’s easy to make a buck. It’s a lot harder to make a difference ” Tom Brokaw

15 Insight 2 | What the?

• Australians expect companies to be responsible: to support charity, reduce their environmental activity, tell the truth, treat employees well and so on

• They understand the activities BUT they don’t get the concepts or jargon and they are confused

• Many believe that they are being deliberately deceived by companies

CSR – an unfamiliar term It was clear from the focus group research that whilst people understood the concept of CSR, there was little knowledge of that particular term. This is borne out in the survey, where we found that only 35% of those responding had ever heard of the term CSR or Corporate Social Responsibility.

CSR - an unfamiliar term

Q. Have you heard of the term CSR or Corporate Social Responsibility before now?

Total 35%

Male 35%

Female 35%

Under 35 40%

35 to 54 30%

Over 55 38%

Capital city 38%

Regional 29%

REAL NOT SPIEL™ - RESEARCH REPORT © Cavill + Co & Sweeney Research, October 2008 16 Naming names

Further on in the study, when respondents had been provided with a definition of CSR and had answered questions about specific activities, we asked them to name one company or brand that is a leader in CSR. 63% could not name one. Only two companies registered at more than 2%, and a philanthropist was thrown in for good measure.

McDonalds, Westpac, and Dick Smith were named by 3% of respondents. The Body Shop, Woolworths, BHP were named by 2% of respondents. A handful including IGA, NAB and Virgin Blue were named by 1%.

Understanding environmental terms

In the survey we asked people to describe their understanding of a number of environmental terms. As we can see, whilst recycling and biodegradability are reasonably well understood (after all, these have been around for a long time) – there is less clear-cut understanding of new terminology such as greenhouse gas emissions and sustainability. Very few claim to have a good understanding of carbon off-setting and carbon trading, and almost half admit to no understanding of these two terms.

“ If you think you’re too small to have an impact, try going to bed with a mosquito in the room.” Anita Roddick 17 Understanding environmental terms

Q How well do you understand the following terms?

Recycling 72% 26% 2%

Biodegradable 45% 48% 7%

Greenhouse Gas Emissions 33% 51% 16%

Sustainability 28% 52% 20%

Carbon Offsetting 15% 40% 45%

Carbon Trading 13% 38% 49%

Good understanding Fair understanding No real understanding

Eye on Australia 2008 revealed that 87% Australians want companies to tell them what they are doing about the environment.

Source: Grey Worldwide

Confusion is rife

In 2007, the trademarks office received 300,000 applications for green-related trademarks, the highest ever recorded in history. One of the most popular being the prefix ‘Eco’.

Source: Choice

REAL NOT SPIEL™ - RESEARCH REPORT © Cavill + Co & Sweeney Research, October 2008 18 As the below chart shows, females on the face of it appear to have less knowledge of a number of these terms than their male counterparts. This may well be due, however, to males being less prepared to admit that they have limited knowledge in this technical area.

Females less knowledgeable

Total Male Female No Real Understanding % % %

gnidarT nobraC gnidarT 94 53 36

gnittesffO nobraC gnittesffO 54 53 45

ytilibaniatsuS 02 61 42

snoissimE saG esuohneerG saG snoissimE 61 8 42

elbadargedoiB 7 6 8

gnilcyceR 2 2 2

Companies and the environment Companies and the environment Agree We asked people in the survey Strongly I am confused by much of the extent to which they agreed the green claims, or disagreed with a series of companies and brands %94 %73 %31 12% are trying to blind us with statements about companies and science the environment. As we can see from the chart, almost half say A lot of companies make false or misleading claims %26 %3%53 17% they are confused about the green about their impact on the claims companies make and six in environment ten believe that a lot of companies Governments need to do are making or misleading claims more to prevent in this area. An overwhelming 79% companies making %97 %3%81 36% misleading claims on their would like to see governments environmental record doing more to prevent companies Agree Neutral Disagree making misleading claims on their environmental record.

19 Research insight | Communication insight

David Barmer Hailey Cavill Sweeney Research Cavill + Co

Consumers clearly don’t understand what the This result confirms that consumers term CSR is or means, with females being are not yet familiar with the jargon of less knowledgeable. But my female colleagues CSR and yet understand the specifics suggest that women are just far more honest of it. So when communicating CSR about their knowledge or lack of it! We did find activities, focus on the activities and that in the focus groups Gen Y appeared to achievements and use clear everyday have a greater grasp of the concept of CSR, language. The more verifiable and and were more familiar with terms such as independently audited your claims, Greenwash. the more comfortable consumers will feel about it and trust it. Many find it hard to think of a company that is a leader in CSR and some confuse corporate For those companies that have big and private philanthropy with CSR….in the campaigns centred around carbon focus groups Bill Gates, Dick Smith and other offsetting, campaigns need to philanthropists were mentioned. educate people first before trying to win favour with good deeds. The Many find green claims confusing, and many research strongly suggested that feel that companies are deliberately trying to putting a human face to your CSR mislead them. And a massive 79% believe will gain some cut-through with the government needs to intervene to keep consumers, people relate to people communication honest. The 35-54 age group rather than faceless organisations. have the lowest awareness, city dwellers are more familiar with CSR than regional consumers.

CONSUMER COMMENT “Carbon offset. What on earth does that mean?” Parent

“ You prove your worth with your actions not with your mouth. Pat Riley ”

REAL NOT SPIEL™ - RESEARCH REPORT © Cavill + Co & Sweeney Research, October 2008 20 Insight 3 | CSR impacts the bottom line

• CSR activity can and does positively impact differentiation, enhance reputation, engender customer loyalty, increase product sales, attract share purchase and attract, retain and motivate employees

• But, CSR will only add value if you are delivering on basics – it’s no good as window dressing

Impact on purchase

We asked people whether the way a company manages its social responsibility will, in the future, have an impact on their decision to buy products or services (see opposite). Almost all said that it would, and almost half said that it would have a major effect. Similarly, the way a company manages its corporate social responsibility has the potential to have a major effect on the purchase of shares.

This issue was also examined in a question whereby people were asked to rate the impact of a whole range of issues on their purchase decision. Each aspect was rated on a 10 point scale, where, the higher the number the more likely that issue is to affect their purchase decision. Predictably enough, the highest-rated were the basics - quality, customer service, keeping promises, and good value, as revealed in the chart opposite (top). Beyond this however, four aspects of CSR also assume a relatively high degree of importance.

“ It is easy to dodge our responsibilities, but we cannot dodge the consequences of dodging our responsibilities.”

21 Sir Josiah Stamp Insight 3 | CSR impacts the bottom line

The survey also looked at the extent to which people agreed or disagreed with a number of statements relating to cause alignment and the environment.

For both cause alignment and the environment, two- thirds say that, all other things being equal, they would choose a product or brand that promotes a benefit than one that doesn’t.

We also find that around two-thirds say they would be more inclined to buy a product or service if a company was supporting a charity. More importantly, almost a quarter say that in the last year they have actually switched brands because of alignment with a cause. Similarly, the majority would go out of their way to support a company which does something positive for the environment and 45% have in the past year purchased a product because of its environmental credentials.

REAL NOT SPIEL™ - RESEARCH REPORT © Cavill + Co & Sweeney Research, October 2008 22 Cause alignment impact on purchase Agree Strongly

All other things being equal, I would choose a product or brand that 66% 29% 5% 15% promotes its support for a charity or community than one that doesn’t

If I saw a company or brand that is supporting a charity, I would be 18% more inclined to buy the product or 65% 29% 6% service of that company

In the last year I have switched from my usual product to another product 23% 40% 37% 4% because of its support of a cause or charity

Agree Neutral Disagree

Global research

When forming decisions about buying a product or service from a company, 38% said that a high degree of responsibility was important.

Source: MORI, The Public’s View of Corporate Responsibility.

In a 2005 Globescan study, 51% strongly disagreed that companies communicate honestly about social and environmental performance.

23 Research insight | Communication insight

David Barmer Hailey Cavill Sweeney Research Cavill + Co

Almost half the consuming public are saying CSR activities, no matter how well that CSR will have a major effect on their communicated, will not win favour decision to purchase from that company, with consumers if the basics of and 46% say it will impact their decision to good business practice are not purchase shares in the future (although at the being provided. time of writing, with the stock market collapse, maybe not right now). Avoid using CSR as window dressing. Aligning with a charity to When we specifically look at support of justify an inflated price won’t work. causes and at the environment, we find that the majority of people are more inclined to Claiming to be green when you are buy the products and services of companies not will backfire. that are doing the right thing. Significantly, sizeable minorities have actually taken action Also brand switching of course within the last year by buying products and varies depending on the purchase. services of companies because of their support of a cause or charity or due to Our past research1 shows that environmental credentials. 78% of consumers are influenced to switch supermarket products CSR however will only win favour if the and 48% of consumers are company has the basics right – quality, influenced to switch larger customer services, pricing and delivery of purchases such as a car or promises have the greatest impact on purchase. banking product. Then the CSR activities can add value.

CONSUMER COMMENT “I think it (CSR) breaks down the negative connotations with the whole big ‘evil’ corporation thing.” Gen Y

1 Heart & Sold, Cavill + Co/Worthington Di Marzio, September 2001

REAL NOT SPIEL™ - RESEARCH REPORT © Cavill + Co & Sweeney Research, October 2008 24 Insight 4 | Vigilante Consumerism is alive and kicking

• Lack of responsibility can lead to boycott and negative word of mouth • • • Mis-communications (misleading claims, unclear messages, spin, green-wash) can be as bad as actual misdemeanours

Product boycotts We asked people whether or not they have in the past year avoided purchasing a product, service or brand because of its poor environmental record, and found that as many as 34% said that they had. Although as the second part of the chart (top) shows, a sizeable proportion are prepared to forgive environmental mistakes, as long as an organisation owns up rather than being caught out.

This issue of product boycotting was examined further through a question in which people were asked to nominate the extent to which a series of behaviours may make them angry enough to boycott a company or brand.

As shown in the chart, all of the things that we looked at have the potential to annoy people. Even the bottom aspect is rated at more than seven on the 10 point scale. Aspects towards the top of the list include declaring huge profits and paying large salaries whilst over charging; failure to provide a safe environment; and treating employees poorly.

It is interesting to note, however, that an aspect such as making a misleading environmental claim, is rated just as highly (in terms of making people angry) as actually damaging the environment.

“Conducting your business in a socially responsible way is good business. It means that you can attract better employees and that consumers will know what you stand for and like you for it.” Anthony Burns 25 Insight 4 | Vigilante Consumerism is alive and kicking

Product boycotts

Agree Strongly

I have in the past year avoided purchasing a product, service or brand 34% 44% 22% 9% because of its poor environmental record

If a company owns up to making environmental 39% 44% 17% 4% mistakes before being caught out, I’d forgive them

Agree Neutral Disagree

What makes people angry

Q. What makes you angry to the extent where you would boycott a company or brand?

MEAN SCORE OUT OF 10 DOESN’T WORRY ME AT ALL MAKES ME ANGRY ENOUGH TO BOYCOTT

Declaring huge profits, paying large salaries whilst over-charging 8.2

Failing to provide a safe environment for staff/customers 8.1

Company is known to treat its employees poorly 8.0

Misleading community investment - eg. claiming to be giving to a 7.9 charity when it's the customer that is making the donation

Blatant attempt to look green when not 7.9

Misleading environmental claims - eg. claiming to be green when not 7.8

The company, product or service is seen as damaging to the 7.7 environment

Manufacturing goods in countries where poor labour standards exist 7.6

Complicated or scientific communication designed to baffle the 7.4 customer

Jumping on the bandwagon of environmental or social causes 7.4

REAL NOT SPIEL™ - RESEARCH REPORT © Cavill + Co & Sweeney Research, October 2008 26 Research insight | Communication insight

David Barmer Hailey Cavill Sweeney Research Cavill + Co

A very high proportion of respondents What is interesting is that misleading have avoided purchasing a product communication ‘blatant attmpt to look green’ in the last year due to a comany’s and misleading environmental claims anger poor environmental records. But what consumers just as much as actually damaging companies say or fail to say about their the environment. Communication has the environmental record can be just as power to win or lose a customer. Companies damaging. that sell charity merchandise to consumers and who do not make a contribution need to It emerged in the focus groups that be careful... it’s the customer that is giving, many were cynical and suspicious about not the company, so don’t try to leverage your company claims on their environmental goodness. or community contribution. In particular Gen Y were familiar with terms such as ‘greenwashing’ and clearly understood their meaning. The survey shows Global View that people are as angered by false or misleading claims as they are by Trust has a major impact on purchase. 88% will misbehaviour. For example, the aspect purchase products from companies they trust of ‘misleading environmental claims and 84% will recommend the product to friends. – claiming to be green and not’ was However on the negative side just as many will rated as high on the angry scale as ‘the refuse to buy the product (85%) of a company company product or service is seen as they distrust. 83% will refuse to invest and 78% damaging to the environment. will share the negative view others.

Source: Edelman 2008 Trust Barometer

CONSUMER COMMENT “I’m very suspicious of the term ‘CSR’. It’s very hard to realise what’s talk and what’s boosting profile.” Parent

“ The smallest annoyances disturb us the most.” Michel Eyquem de Montaigne 27 Insight 5 | Applause for a cause

• The not-for-profit/charity sector is the most trusted to do what is right by society

• Charities are also the 2nd most trusted source of CSR information

• They are a vital stakeholder for companies – to be educated and informed

Who do we trust?

In the survey we asked people to rate the extent to which they trust a range of institutions to do the right thing by society and the environment. The higher the number on a 10 point scale, the more people trust that organisation.

Charities are the most trusted organisational type and media the least. Although by media we suspect that people are referring to the media institution much more so than editorial content.

It is also clear that small and more local businesses are more likely to be trusted than larger and, in particular, multi-national organisations. All forms of government are rated well down on the trust scale.

What makes people angry

Q. What makes you angry to the extent where you would boycott a company or brand?

MEAN SCORE OUT OF 10 DOESN’T WORRY ME AT ALL MAKES ME ANGRY ENOUGH TO BOYCOTT

Declaring huge profits, paying large salaries whilst over-charging 8.2

Failing to provide a safe environment for staff/customers 8.1

Company is known to treat its employees poorly 8.0

Misleading community investment - eg. claiming to be giving to a 7.9 charity when it's the customer that is making the donation

Blatant attempt to look green when not 7.9

Misleading environmental claims - eg. claiming to be green when not 7.8

The company, product or service is seen as damaging to the 7.7 environment

Manufacturing goods in countries where poor labour standards exist 7.6

Complicated or scientific communication designed to baffle the 7.4 customer

Jumping on the bandwagon of environmental or social causes 7.4

REAL NOT SPIEL™ - RESEARCH REPORT © Cavill + Co & Sweeney Research, October 2008 28 We also asked people Trusted sources for CSR info to nominate who they Q. There are many sources of information about what companies are doing or not doing to support would trust most as the community or protect the environment. What sources of information would you trust the most sources of information to tell you about these sorts of things? about CSR activities. Consumer organisations such as Choice 61% Independent groups Information provided by charities or environmental groups 50% such as Choice top Editorials or stories in the media 44% Information on the product packaging 31% the list – with charities Information in the company's annual report 31% falling into second Information on the company's website 29% place, ahead of Advertising on TV 29% editorials or stories in What you find out from friends or relatives 27% the media. Information in the store or point of purchase 22% A special company social or environmental report 21% Advertising in newspapers or magazines 20% Direct mail or included in an account or bill 17% Radio advertising 16% Outdoor posters 10% Blogs 7% Network advertising such as Facebook 6%

Elsewhere in the survey we found that 71% said they are more likely to believe a company’s support for a charity is genuine if they hear about it from the charity and not the company.

29 Proof is in the pudding

Linking the company and the cause Agree Strongly

It is important that there is a clear link between a 51% 30% 19% 15% company and the charity it supports

I am suspicious of a company that supports a charity where there is no 42% 38% 20% 16% obvious link between the company and the charity

A company should invest in charities that help fix the %07 %6%42 31% problems that company creates

Agree Neutral Disagree

CONSUMER COMMENT “You want proof. Show us the thing – show us what you’ve done.” Empty Nester

“ The proof of the pudding is in the eating. Miguel de” Cervantes

REAL NOT SPIEL™ - RESEARCH REPORT © Cavill + Co & Sweeney Research, October 2008 30 Research insight | Communication insight

David Barmer Hailey Cavill Sweeney Research Cavill + Co

Charities, not surprisingly, are the This not only suggests that charity partners are a most trusted to do what is right great vehicle for partnership communications, but by society and the environment that your stakeholders should include charities that and are also seen as a credible have an impact on your business. We all know and reliable source of information that when Greenpeace or the Salvation Army on CSR. Certainly, people would comment on an issue, the media listen, and now rather hear about a company’s we know that consumers trust their messages. support for a cause from the Companies need to engage with the not for profit cause itself rather than from the sector more, educate them about your challenges company. and achievements, enroll them and partner with them. After independent consumer organisations Smaller companies are more and charities/environmental groups, editorial stories trusted than larger ones, and are the most trusted source of CSR information. So multi-nationals are viewed with companies should be investing far greater in their considerable misgivings. The Communications and PR teams than into mass research clearly indicates that market advertising campaigns. Your packaging information in editorial is far more and website is also trusted – so use it to tell your trusted than that provided through story! And whilst your annual report is trusted, don’t traditional media advertising. expect consumers to go out of their way to read it – they won’t. Interesting here that what you hear from friends and relatives is quite low, when we all The 2008 Eye on Australia study know the power of word of mouth. Given the lack showed that 66% said they trust of knowledge amongst most people of CSR, it’s not their family for information and surprising we don’t trust our friends and relatives to 56% said their friends. give us information! But this is not the case in CSR!

Source: Grey Worldwide Global view

NGO’s are the most trusted to do what is right - 25% of industries in Australia trust NGO’s. However in China, Korea and Japan, Governments are the most trusted with business last.

Source: Edelman, The Changing Nature of CSR in Asia Pacific, March 2008

“ Get someone else to blow your horn and the sound will carry twice as far” 31 Will Rogers Insight 6 | Commitment and synergy wins over skepticism

• A long term commitment to CSR activity wins trust and softens skepticism

• An obvious fit between a company/ brand and the charity alleviates suspicion

Prevailing skepticism

In the survey people were asked the extent to However, this does not necessarily result in a which they agreed or disagreed with a series of negative perception of the organisation. Over statements about companies and their support half also believe that even if the company is for charities or causes. There is clearly a degree supporting a charity to increase sales, they will of skepticism surrounding this issue, with 47% still support the company because the charity believing that most companies only support is being helped. It is clear, however, that a long charities to increase sales and not because they term commitment can go a long way towards have a genuine concern for the charity. reducing any skepticism in this area.

Three-quarters agree Skepticism Agree that they are more likely Strongly to believe a company’s Most companies only support for a charity is support charities to increase sales or reach a mass genuine if it is a long %74 %24 %11 13% market and not because term commitment for a they have genuine concern for the charity number of years. But Even if the company Aussies are the supports a charity as a way most skeptical in of increasing sales I still %35 %04 %7 10% support them because the the world! 51% of charity is being helped Australians don’t believe that companies And long term commitment can reduce skepticism communicate honestly I’m more likely to believe a about their social company’s support for a charity is genuine if it is a %57 %4%12 25% and environmental long term commitment for a activities, vs 28% number of years of Germans, 27% of Agree Neutral Disagree Canadians, 25% of Brits and 25% of Americans.

Source: Globescan CSR Monitor 2005

REAL NOT SPIEL™ - RESEARCH REPORT © Cavill + Co & Sweeney Research, October 2008 32 Longevity alleviates suspicion

While a massive 64% could not name a company that had a good record in supporting causes, one company stood out - McDonalds was nominated by 13%.

Clearly the extensive investment in communication by McDonalds is working, however we believe it is the long-term committment and singular focus within the communication that has given them this result.

All other companies mentioned - IGA (4%), Kleenex, Woolworths, and Westpac (2%) - have also shown a long term commitment to cause investment.

Linking company and cause

Another area which we investigated in the research is the extent to which there needs to be a clear link between the company and the charity it supports.

Here we find that just over half agree that there should Linking the company and the cause Agree be a link, and over Strongly 4 in 10 say that they are suspicious It is important that there is a clear link between a 51% 30% 19% 15% of a company that company and the charity it supports a charity supports where there is no obvious link between I am suspicious of a the company and the company that supports a charity where there is no 42% 38% 20% 16% charity. obvious link between the company and the charity It is also interesting to observe that a A company should invest in charities that help fix the clear majority (70%) %07 %6%42 31% problems that company agree that a company creates should invest in charities that help fix the problems that Agree Neutral Disagree company creates.

33 Research insight | Communication insight

David Barmer Hailey Cavill Sweeney Research Cavill + Co

Consumers do understand To prove the importance of synergy and longevity, that companies need to make if you look at three of the companies that have a profit, they understand far received cut-through in their charity investment, more about marketing than a all three have partnered with causes and charities decade ago and they recognise that have synergy and they have been doing so for that some companies support a long time. charities to boost their bottom line. However, they can live • McDonald’s have been investing in providing with this if they can see that accommodation and programs for families and the charity is genuinely being children undergoing hospital treatment – through helped. And the longer you appeals such as McHappy Day – for 17 years. commit to a charity, the more And there is a clear synergy between McDonald’s genuine that commitment will and families and kids. be viewed.Consumers can be suspicious of a support for • IGA position themselves as the alternative local a charity or cause if there is supermarket so a good fit for them was to invest no obvious link between the in local community projects. They’ve invested organisation and the cause. $30m in the past 5 years.

• Kleenex is synonymous with puppies as their brand icon is the Labrador pup, so an alignment with Guide Dogs Australia makes sense from a brand perspective. They have been supporting Guide Dogs Australia for over 5 years.

CONSUMER COMMENT “I think longevity helps more than anything, like Maca’s they stick to it” Gen Y

“ The difference between involvement and commitment is like ham and eggs. The chicken is involved; the pig is committed.” Martina Navratilova

REAL NOT SPIEL™ - RESEARCH REPORT © Cavill + Co & Sweeney Research, October 2008 34 Insight 7 | The real thing

• When it comes to communication, Australians want to know what you are doing – but want to hear about real actions, see real tangible results, clear and honest communication

• They don’t want spiel, or spin or complexity. They want tangibility and validation

Interest in CSR

There is sizeable interest in what companies are doing with regard to CSR. In particular, some 57% say they want to know the actions and results of companies and brands regarding their CSR. To a lesser degree, 49% want to know about companies’ and brands’ intentions and policies regarding their CSR activities.

Almost half said that if they came across Interest in CSR the company’s CSR Agree report that they would Many are interested in what companies are doing... Strongly probably read it. But I want to know the actions and few will make a real results of companies and brands 57% 35% 8% 12% effort to find out for regarding their CSR themselves. Only 16% agree that they I want to know about companies' will make a point of and brands' intentions and policies 49% 41% 10% 9% regarding their CSR reading a company’s website regarding CSR If I came across a company’s CSR claims. 5% report I would probably read it 46% 34% 20%

...but few will make much effort to find out for themselves... I make a point of reading a company’s website regarding their 16% 45% 39% 2% CSR claims

Agree Neutral Disagree

35 Insight 7 | The real thing

Aligning talk to walk

Most consumers feel that organisations should tell people Aligning talk to walk about what they are Agree Strongly doing in CSR. As The majority agree that companies should tell us about CSR… shown above, 63% Companies should actively promote 63% 34% 3% 12% agree that companies their CSR activities should actively promote their CSR ...and most think they should be forced to do so... activities. And almost Large companies should be as many go as far as required by law to produce annual 61% 32% 7% 20% to agree that large reports on their CSR activities companies should but sizeable proportions are skeptical about what they hear be required by law ...... to produce annual I’m very skeptical about advertising which talks about what companies 46% 44% 10% 11% reports on their CSR are doing for the environment activities. 39% said if I’m very skeptical about advertising a company owns up to which talks about what companies 44% 47% 9% 9% making environmental are doing to support the community mistakes before being Agree Neutral Disagree caught out, I’d forgive them.

However, the results also show that advertising which focuses only on CSR activity can produce skepticism and even cynicism. 46% say they are very skeptical about ads which talk about what companies are doing for the environment, and a similar proportion are skeptical about advertising which talks about what companies are doing to support the community.

Communicating cause investment

The clear message here is to provide the facts. A very clear majority (74%) believe that when a company contributes a percentage of their product price to a charity, they should disclose the exact amount being provided. Similarly, 7 in 10 believe they should disclose the total amount they expect to provide.

However, it’s not just about the money – with two-thirds saying that they would rather hear about the community or environmental impact achieved by support for a cause rather than the amount of money provided.

REAL NOT SPIEL™ - RESEARCH REPORT © Cavill + Co & Sweeney Research, October 2008 36 We also note sizeable agreement (69%) with the statement “Companies should tell us about their support for charities through existing communication campaigns rather than spending money on extra advertising”.

The research also found that charity based promotions which require people to take action (such as registering on a website) to trigger a donation are disliked by 60% of respondents.

Communicating community & charity

investment Agree Strongly Where a company contributes a percentage of their product price to a 74% 22% 4% 35% charity, they should disclose the exact amount per product being provided When a company contributes a percentage of their product price to a 29% charity, they should di sclose the total 70% 26% 4% amount they expect to provide

I’d rather hear about the community or environmental impact achieved by a 24% companies support for a cause rather 67% 28% 5% than the amount of money provided

Companies should tell us about their support for charities through existing 69% 26% 5% 25% communication campaigns rather than spending money on extra advertising

I don’t like charity based promotions which require me to do something 22% such as register on a website to trigger 60% 30% 10% a donation Agree Neutral Disagree

CONSUMER COMMENT “They say they are going to donate but you never see the end result.” Parent

37 Research insight | Communication insight

David Barmer Hailey Cavill Sweeney Research Cavill + Co

The research clearly shows that people Communicating charity investment believe that organisations should tell us about can get companies in really hot their CSR activity, but can be skeptical about water. Mostly people want clarity, advertising which attempts to do this. There they don’t want to have to do appear to be some clear rules about how to anything for you to make your promote your alignment with a cause. People contribution. They want to know want to know the facts about how much you the human difference you are contribute per product, and how much you making rather than how much you expect to contribute overall. More importantly, are contributing. They want to they want to know about the impact on the know what you’ve done not what community or environment, rather than just you’re going to do. As Henry Ford the amount of money you have provided. said, ‘You can’t build a reputation on what you’re going to do.’ Finally, people are very negatively disposed towards charity based promotions which See best practice guidelines on require them to take specific actions to trigger page 45 for more guidance. the contribution.

CONSUMER COMMENT “I don’t think consumers like doing things themselves. Like bottled water, I can’t be bothered going to the internet to put in some stupid code.” Gen Y

“ Put not your trust in money, but put your money in trust. ” Oliver Wendell Holmes

REAL NOT SPIEL™ - RESEARCH REPORT © Cavill + Co & Sweeney Research, October 2008 38 Insight 8 | Women rule

• Women are most sensitive to, influenced by, and trusting in many aspects of CSR.

• This is good for business as they are still the gatekeeper to the family’s purse; anchoring themselves, their teenagers and parents, and they are also the prime decision maker on the purchase of most products and services

• If you are targeting women, CSR activities will resonate with them

Supporting causes

Earlier in the report we looked at the causes which people believe companies or brands should be involved in supporting. We have also examined the difference between men and women with respect to this issue. The key thing to note from the chart is that women are far more likely to strongly be in favour of companies supporting everyone of the causes shown.

This difference between the genders is also evident when we look at some of the differences in attitude between males and females. For example, 55% of men agree that they would be more inclined to buy the product or a service of a company which is supporting a charity. A much higher 75% of women agree with this statement. Women are also more likely to go out of their way to support a company which does something positive for the environment and to purchase products due to environmental credentials.

39 Insight 8 | Women rule

“If you think men still call the shots, think again. Today it’s the 40+ female who has finally reached her power summit through not just a combination of demographic weight but a growing proportion of earnings and by inference, spending power.”

Paul Gardner AM, Chairman of Grey Worldwide, referencing the Eye on Australia 2008 study

REAL NOT SPIEL™ - RESEARCH REPORT © Cavill + Co & Sweeney Research, October 2008 40 Some attitudinal differences Male Female Difference Proportion who agree… % % % If I saw a company or brand that is supporting a charity, I would be more inclined to buy the product or 55 75 20 service of that company

I have in the past year purchased a product due to its 38 52 14 environmental credentials

I have in the past year avoided purchasing a product service or brand because of its poor environment 27 40 13 record

I would go out of my way to support a company which 49 61 12 does something positive for the environment

Companies should actively promote their CSR 57 69 12 activities

I’m interested in knowing about companies’ CSR 46 55 9 activities

In the last year I have switched from my usual product to another product because of its support of a cause 20 26 6 or charity

Supporting causes

Male Female Difference

Strongly in favour of companies and brands being % % % involved in supporting… noitcetorp dna eraflew laminA eraflew dna noitcetorp 14 66 52

sthgir namuH sthgir 84 07 22

regnuh dna ytrevop ssensselemoH ytrevop dna regnuh 64 86 22

noitcetorp dlihC noitcetorp 16 28 12

sretsasid larutan nailartsuA larutan sretsasid 75 87 12

htlaeh latneM htlaeh 94 07 12

seussi latnemnorivnE seussi 35 07 71

seussi htuoY seussi 64 36 71

noitacudE 45 07 61

Organisations which look after public safety 56 71 15

41 Research insight | Communication insight

David Barmer Hailey Cavill Sweeney Research Cavill + Co

Going into this research, we This is yet another good reason for expected to find sizeable businesses and brands to embed CSR differences in attitudes across communication into as many consumer the generations. Whilst we did touch points as possible – as women are find some variations by age, the still the primary decision makers on most more significant differences were family goods – they are the gatekeeper across the gender divide. Women to the family purse. appear to be far more sensitive and focused.

CONSUMER COMMENT “I wouldn’t work for a company that didn’t have any social responsibility. I want to start my career in a company that has similar values to me.” Gen Y

“ Give her what she thinks is important, not what you think is important. Who wouldn’t like that? ” Faith Popcorn

REAL NOT SPIEL™ - RESEARCH REPORT © Cavill + Co & Sweeney Research, October 2008 42 A few busted myths

Myth 1 The environment is the hot issue to jump on.

Not according to Real Not Spiel™. It’s people, not the environment, that resonates with consumers – if you talk about what you are doing for the environment, talk about the impact on people.

Myth 2 Avoid causes and charities addressing social problems that we could be accused of creating.

Actually there is great consumer support for companies to do this. However this area requires great thought, and consideration of consumer skepticism. Companies that are genuinely and wholeheartedly committed to changing the way they do business to minimize the impact on ‘the problem’ (and communicate this) will be able to partner charities to address the problem. A company that just invests in a charity to offset its continued negative behaviour may simply be seen as a hypocrite. Do consumer research before making any decisions!

Myth 3 Gen Y having access to the internet and being more educated are more interested in – and concerned about - CSR

If anything, it’s the 35+ age group that are more aware and more concerned and more influenced by CSR activities. And the differences in attitude between men and women are just as significant as the differences between the generations.

43 A few busted myths

“ Our most basic common link is that we all inhabit this planet. We all breathe the same air. We all cherish our children’s future. And we are all mortal.” John F. Kennedy

“ Unless commitment is made, there are only promises and hopes; but no plans.” Peter F. Drucker

REAL NOT SPIEL™ - RESEARCH REPORT © Cavill + Co & Sweeney Research, October 2008 44 Best practice guidelines for communicating csr

Over the last two decades, Corporate Social Responsibility (CSR) has gone from ‘should we do it’ to ‘how do we do it’ and the next decade will bring into sharp focus the need to measure CSR, report on CSR to stakeholders and communicate CSR to all stakeholders especially consumers, as a way of informing, engaging and influencing them.

As we enter a new era of economic downturn, belts will tighten and there’s no room for wasted dollars on ineffective communication. Ineffective communication is not just a waste of money but it can also be very damaging – when you are trying to engage the most skeptical consumer in the world – Australians!

The Real not Spiel ™ team, led by Hailey Cavill of Cavill + Co, have compiled these best practice guidelines for communicators of CSR activities. We have been informed by the Real not Spiel ™ data as well as our combined 300 years of experience in marketing, communications and CSR implementation. CSR is a fast evolving area, there are regular new developments with an increasing number of regulatory and mandatory requirements that affect communications, and equally there may be changes in thinking or new science regarding the environment. This will create new challenges for communicators and with this in mind, this is a living document which we intend to review and update annually.

1. Know what you stand for and what to communicate Some aspects of CSR are more easily communicated to consumers, and are more relevant. Identify which aspects of your CSR program you want to communicate, do research to understand if consumers are interested, and then develop a clear communications strategy and plan, to ensure a consistent and cohesive message is sent out. Ensure that everyone responsible for communication within your organisation is aware of the strategy and adheres to the plan. You don’t want a brand manager running a cause related marketing (CRM) campaign that is inconsistent with your communications plan and key CSR messages.

Importantly, ensure that your consistent CSR message reflects the behaviour of your company, its employees and suppliers, and that the behaviour aligns to the message. Consumers are cluey enough to spot any incongruence.

2. Get the basics right and avoid window dressing CSR has the ability to add value to your company or brand in the eyes of the consumer, but only when you have satisfied the basics of providing your product and service. Quality, good after-sales service, delivering on promises, friendly customer service and value for money are essential and seen as standard. After that, honest and transparent communication and other CSR activities can sway a consumer your way.

Promoting CSR activities as a way of dressing up a company or brand that does not have the basics right may back-fire – it will only attract more skepticism and potentially boycott from consumers.

45 Best practice guidelines for communicating csr

3. Call it what it is – CSR is not yet a term that consumers understand CSR is an industry term and hasn’t yet reached the consumer vernacular. Until such time, avoid using the term CSR and call it what it is: community investment, ethics, fairness to staff, recycling, reducing impact on the planet and so on.

Specifics resonate with consumers; jargon does not.

4. Find ways to cut through the skepticism Before communicating your CSR activities, consider your target audience and the potential skepticism that you have to cut through. If you are a large successful company, whether you deserve it or not, consumers generally do not trust you or what you say. Refine your communications with this in mind. Women care more than anyone else about CSR activities. Gen Y is not as interested in CSR as the 35+ age group. But most understand the specific activities associated with CSR, and they also know that some companies are trying to win them over.

With any communication around environmental impact, they may not understand the terms, and vague or ambiguous statements can simply create further skepticism. Educate consumers about environmental activities and they will thank you.

5. Tailor your communications to your target audience Consumers will not read lengthy CSR reports. They want CSR information to be readily available when they want to seek it out, and it needs to be clear, honest, uncomplicated and jargon-free. Create a simple statement about what you stand for and let the activities and results speak for you. Tailor content, tone and channel of communication to different stakeholder audiences and consumer segments: speak to them in their language, using the communication vehicles they are comfortable with. Remember, women respond exceptionally well to CSR.

Gen X really does care but keep it real and relevant to them. Reach them through your products, TV and editorial. Gen Y are the most skeptical and marketing savvy consumers: they want it now and they want to be involved, just not marketed at. Use well-crafted short, snappy statements (but not cryptic) when talking to Gen Y and remember, this audience communicates mostly through text messaging! So speak to them through the internet and editorial.

“ In business, words are words; explanations are explanations; promises are promises but only performance is reality.” Harold S. Green

REAL NOT SPIEL™ - RESEARCH REPORT © Cavill + Co & Sweeney Research, October 2008 46 6. Include CSR in communication to prospective shareholders Public companies (and future public companies) must include CSR activity in attracting prospective shareholders- almost 50% of prospective shareholders said this would influence their purchase. Although perhaps less so in the current economic climate.

7. Ensure honest and accurate labelling and advertising Product labelling and advertising must be clear, accurate and honest, as this is seen by consumers as the No.1 CSR priority for companies. This is especially important for organisations marketing food, cosmetics or any children’s product. Consumers are fed up with the toy scandal, the Vitamin C scandal and so on. Seek out and secure externally credible verification for your claims (refer to the Resources section of the Real not Spiel ™ report for a list of key organisations providing external verification for labelling). Refine your labelling and advertising before wasting money on other CSR activities.

8. Communicate not self congratulate Consumers EXPECT companies to do the right thing by society (by them) but they find overt and seemingly ‘expensive’ CSR communication about how you are to be congratulated for your efforts to be rather bemusing. Many consumers feel that doing the right thing and being responsible is just part of being in business. We’re not saying that mass market advertising is not advised, but bear in mind the tone of voice you use in your communications (remembering that your objective is to inform rather than boast) and try to adhere to other guidelines, such as developing long-term programs and initiatives. In our report, some of the companies named as having a good record in supporting charities do utilise above the line or mass advertising to communicate their programs, but it is important to note that these companies have been supporting the same cause for longer than five years and as such, have developed synergy between their business/brand and the cause. This has led to a more consistent message over time, as perceived by consumers.

9. Beware of the incongruence Focus your energy on refining your communication…consumers are really turned off by companies who produce and print big CSR reports, over-packaged goods - indeed anything that is seen to be using too much paper - and then claiming to be an environmentally responsible company. Consumers really like recycling and are in favour of companies genuinely reducing their use of paper. Consumers also want companies to utilise existing forms of communications, so include appropriate messages in as many consumer touch-points as possible, and consider how you can best communicate without obvious damage to the environment.

“ I’m sorry to write you such a long letter, but I didn’t have time to write a short one .”

47 Mark Twain 10. Employees: treat them well, inform them and they’ll spread the word better and faster than any advertisement Employees that are mistreated tell all their friends for free, who then trust what they have been told - potentially undoing all the ‘good’ CSR communication your company has paid for! In this report, consumers rated ‘looking after their employees’, as the second priority for companies, including providing flexible work hours and safe/pleasant working conditions. Further, ‘neglecting employees’ rated as the second most angering company activity – enough to make consumers boycott your product. And just because your employees are overseas, don’t think consumers won’t hear about it. So ensure that all staff that touch your product - whether they are a supplier’s employee or your own - are treated fairly and equitably. Consider creating and adhering to an ethical code of practice. Find creative ways of getting CSR communications to your employees, such as napkins at your in-house café, posters in elevators and toilets. Make them proud and they will be your greatest PR asset.

11. Keep it honest, follow a code of communication practice There is a fine line between advertising which emphasises the benefits of a product or service and extreme exaggeration designed to confuse or mislead. Especially in relation to green claims and charity claims. This has great potential to encourage consumer boycott, which could quickly lead to loss of reputation or worse. Misleading environmental communication is as bad as damaging the environment. Consumers do care, they are very savvy and they are onto you. So create and adhere to your communications code of ethics (and ensure your agencies do too). For companies or brands developing an environmental positioning, try to seek national or international accreditation for your product or campaign to strengthen credibility and to put some ‘oomph’ behind your agency’s creative approach.

12. Avoid the big bang Consumers don’t trust big companies. The bigger you are perceived to be, the higher the mistrust. There is a marked difference in consumer trust between the big supermarkets and the seemingly local ones, the big banks and the community banks (who are still big - it’s just that they just position themselves as local). In CSR, the one-off big buck TV campaign does not work; instead, it acts to further reinforce to consumers that you are a big company boasting about something you should be doing regardless. What’s more, your efforts may be perceived by consumers as money that could have been donated to charity! Remember, the key is to combine tailored mass market advertising with complimentary communication through existing channels, executed over the long term. Campaigns that communicate CSR messages exclusively must be humble, honest and real.

Bakers Delight: local focus and humour win consumer trust.

REAL NOT SPIEL™ - RESEARCH REPORT © Cavill + Co & Sweeney Research, October 2008 48 13. Focus your communication on Australian and local activities Consumers are more interested in what you are doing in Australia than overseas. We’re not advocating NOT supporting international development or causes (gosh, where would the world be if we didn’t?), but don’t expect your global efforts to resonate as well with consumers. This report tells us consumers are far more concerned with what it is happening here in Australia and in their neighbourhood. If however your company is already focused on global issues, bring the communication right back to basics, focusing on the difference it will make to people in Australia.

14. Walk the talk It’s essential to Walk the Talk. Ensure that you are not just giving with one hand and taking with the other. If you are going to say you are green, check your environmental credentials and impact across the board before going public with a strong environmental claim and seek external validation for your claims. There is no harm in telling consumers about the challenges as well as the successes. Consumers know that we’re all on a journey, that much of CSR is complex and we’re all trying to grasp it. Trust consumers to come on the journey with you.

Consumers want actions not just empty words. Don’t blur the difference between an aspiration and an action.

15. When it comes to selecting a charity, think A B C First select the Cause area (eg homelessness, environment, mental health…)

Then think ABC: A for Audience Appeal, think B for Brand reflection and thinkC for Competitors. Does the cause Appeal to the audience that you are wishing to engage? It could be men, women, mothers, Gen Y, employees, local community close to the factory, and so on. Always do research to identify what cause resonates with your target audience. Don’t assume you know best!

Next, does the cause reflect your Brand or company values or personality, or your business? Will it makes sense in the eyes of the consumer? If they don’t see a fit or synergy, they will be suspicious. Finally, if you are looking for a cause alignment to help differentiate your company/brand, ensure you analyse your Competitors to see what causes they are aligned with. After all, there is no differentiation if your competitor is supporting the same cause.

When you have decided on your cause, choose the most appropriate, professional and values- aligned NPO partner to work with from that cause pool. Unless it’s philanthropy, don’t choose a cause or charity just because of one person’s personal opinion/favourite; it rarely works. If you intend to leverage a charity alignment through consumer marketing, it’s a good idea to include employees in the research to determine the right cause, but don’t let your employees singularly choose the cause or charity. Why? The charity may be perfect for employee volunteering, but it may not totally reflect your brand or resonate as well with other stakeholder groups, including consumers.

49 16. Be pro-active in mitigating problems attributed to your product It’s common for companies to avoid causes that are addressing problems that the company could be accused of creating. For example, ‘we sell Scratchies so let’s not focus on problem gambling’; ‘we sell fast food so let’s not focus on obesity’. Interestingly, 2/3 consumers want companies to fix these problems BUT the key lies in pro-actively and publicly changing your product to minimise its effect in the present, prior to cleaning up any mess from the past. If you are not brave enough to do this, avoid these causes. Dove, a Unilever brand, has created an excellent campaign called The Dove Campaign for Real Beauty which is a clever way of turning an industry negative - our obsession with perfection - into a positive. This campaign has resonated with their target audience and created a real point of difference for them too.

Dove Campaign for Real Beauty

Watch the film Evolution: www.campaignforrealbeauty.com

17. Ensure there is synergy Why you have chosen your cause or cause partner must make sense. If the strategy is not an obvious one, be creative and find link that consumers will understand. A good fit will be seen as genuine, whereas an obvious lack of synergy could create skepticism with consumers, which is the opposite of the goodwill you are courting.

Recent Optus consumer research has shown that their partnership with the Australian Wildlife Conservancy is favoured because consumers are used to seeing animals in Optus advertising and therefore can understand why Optus is supporting the protection of endangered animals as part of their environmental initiatives.

Consumers are brand savvy enough to make the connection.

Optus website: www.optus.com.au

REAL NOT SPIEL™ - RESEARCH REPORT © Cavill + Co & Sweeney Research, October 2008 50 Occasionally, when either the synergy is not that obvious or the partnering brands are not that well known, it’s essential to be creative to find the fit that will resonate with consumers. When Victorian real estate agent Kay & Burton partnered with Murdoch Childrens Research Institute their target markets were aligned but they felt it was The health of our children is paramount which is why Kay & Burton is proud to partner the Murdoch Childrens Research Institute. important to find a connection between the two brands for the staff and customers. kayburton.com.au A tag line was created for all partnership communications: ‘Together we’re looking after our most loved assets’ and, where possible, this is accompanied with images of happy children.

18. Commit to something and then remain committed Prevailing skepticism can be overcome by choosing to do one or a few things really well and then sticking to this for a number of years (we recommend 3-5 years at a minimum). Commitment = authenticity and this will earn you recognition and acceptance, even respect. Don’t be swayed by what others seem to be doing and don’t jump on the bandwagon. Let your brand and your target audience research guide you as to what is right. Doing something important yet unique for your customers and for Australians will differentiate you and earn you respect.

19. Measure your activities In tough times, CSR activities that are not measured and cannot demonstrate tangible outcomes for either the community or the company become vulnerable. Especially in the area of charity partnerships. As such, it’s essential to set both community and business outcomes from the outset, have benchmark stats and ongoing measures.

20. Explain environmental activities clearly Many consumers don’t yet understand new environmental terms such as carbon offsetting and carbon trading. This represents an opportunity to educate consumers, so tell them about the human impacts to make your campaign more tangible and easily grasped. A great deal of environmental communication is going straight over consumers’ heads, creating suspicion and confusion. Misleading green communication is considered by consumers as worse than actually damaging the environment. Consumers don’t like to be misled and they will punish through boycott.

When making any environmental claims, avoid vague terms and provide as much evidence as possible, including independent verification and a website or place to go for more information. Consumers want proof.

51 Whether it’s the pressure to differentiate, enhance reputation, or simply the act of an overenthusiastic advertising agency, do not engage in any exaggerated, misleading or vague ‘green’ communication – as consumer groups are ready to expose those companies and brands that green- wash. Avoid at all costs the creation of a fake green logo as consumer lobby groups are already exposing this deceptive sham. False green claims will certainly differentiate you, albeit in a negative way, damaging your reputation and potentially leading to consumer boycotts.

Our resources section provides some independent organisations that provide verification in the environmental space. Become familiar with the Trade Practices Act and ACCC.

Foster’s Cascade Green beer demonstrates the use of independent validation and provides a website for those consumers seeking detailed verification information, on the Cascade Green website. www.cascadegreen.com.au

21. Use existing channels of communication and advertising Particularly when communicating cause alignment, consumers want to find out about your company’s efforts through existing channels of communication. Consumers are more likely to be turned off by a seemingly expensive and boastful ad campaign that claims how wonderful your company is simply because it supports a charity. In addition, many consumers believe this investment to be a waste of money that could have gone to the charity. So look at your customer touchpoints (remembering employees are also a great communication vehicle) and see how you can embed CSR messages there. Why not consider an end frame on existing TV advertisements, or a by-line on print ads, or a statement on your product? By looking more closely at your existing communication channels, you may find your company has numerous touchpoints that are greatly under-utilised.

Dedicated ads are fine (for example those that promote a particular campaign or a cause- related sales promotion) but the ads will have far more credence if supported by other, existing communications and if supported over the long term (i.e. the ad campaign runs every year) and if the ad is informative rather than boastful.

Real not Spiel ™ also revealed that consumers are not pro-actively looking for information on CSR but when they want to hear about what companies are doing in this space, they want this information to be immediately accessible. Therefore, embedding CSR communication into as many consumer touchpoints as possible and adhering to a consistent message, is key to ensuring consumers find the right information in their own time.

REAL NOT SPIEL™ - RESEARCH REPORT © Cavill + Co & Sweeney Research, October 2008 52 22. Let consumer purchase and loyalty trigger the contribution If you’re intent on planting trees, contributing $1 to a cause, or sending condoms to Africa, allow the consumer to trigger the contribution through purchase. Do not ask them to go to a website, put in a code, provide their details, send anything back as this incenses consumers and negates any goodwill you may have generated. If you do want consumers to go to your website and register, give them a reason or incentive to do so, that is: a free product or entry into a competition to win something which rewards their effort. There is no place for marketing gimmickry in CSR communication.

23. Generate goodwill through the cause partner Campaigns designed to generate goodwill towards you will be viewed as more genuine and trusted if communicated from your cause partner. Let your cause partner do the talking and back slapping. BUT give them human and financial resources to do this. Do not provide a contribution for their cause and then tell them that 10% must go on PR or advertising. It’s not necessarily what they are good at and it’s not why they exist. Lend them your PR firm and pay the PR firm. Lend them your ad agency and pay the bill. Or give them a separate budget for promotion, together with a brief.

24. CRM: Clarity on contribution Whether it’s an on-pack or promotional campaign, or just a declaration of your commitment to a cause, provide consumers with clarity, as ambiguity just feeds their skepticism.

Communicate the following four things: 1) The most important: the human difference being made 2) The total contribution 3) The detail as fine print and 4) Where to go for more information and validation.

1) Human Difference: the money is definitely not of that much interest to consumers (they think you have heaps to throw around so whatever you provide is never that impressive), but the human difference or outcome that you’re funding will help achieve, will be. Lead your communication with the human difference, for example, ‘Help us to enable vision impaired people the same freedom and independence that we enjoy’ followed by the secondary message ‘when you purchase this product you’re helping us to contribute $300,000 to Guide Dogs Australia’.

2) The total contribution: Know what your goal is (it’s a good idea to negotiate a minimum contribution to the charity before utilising their goodwill and brand for your own commercial gain) and enrol consumers to help achieve that goal, for example, ‘when you buy this product you’re helping us to contribute $300,000 to Guide Dogs Australia’.

3) The detail: If you are a FMCG company running a CRM campaign, consumers want to know how much of their purchase is being contributed. Is it 10c or 5c? Include this information in the small print (do not lead with this message), as it is invariably a small amount and consumers don’t necessarily understand all the margins involved.

53 Avoid ambiguous terms such as ‘part proceeds’ or ‘a % of your purchase’- they can create suspicion. Ensure you check with the ACCC or your legal advisors before pursuing these types of claims.

4) More info: Where do consumers go for more information and validation of your claims? Inside the pack? Preferably. A website? At the very least. Why not create a special section on your website dedicated to showing the results that your customers have helped you produce?

Remember too that using the word ‘donation’ is actually inaccurate. When there is a commercial benefit for you, the financial investment is simply that, it’s not a donation according to the Australian Tax Office. So avoid using that term. Also check the State fundraising laws: for a high-profile CRM campaign that ‘raises funds’ you may require a fundraising license. At the very least, ensure your cause partner puts you onto theirs.

Sakata manage to feature all 4 messages onto a small pack of rice crackers!

25. Communicate not advertise Whilst consumers are comfortable with advertising to sell them a product or service, they are yet to trust advertising to inform them of CSR activities.

Third party endorsement or validation by the consumer organisations, charities and media editorials are far more trusted. Advertising – even mass market advertising – can do a good job to inform consumers of your CSR activities, but keep in mind it’s not the advertising (or spend) that creates trust and credibility, it’s the commitment your company establishes to the activity over time and the tone of voice in the advertising that influences consumer perception. It’s no surprise that some of the big spenders achieved cut through in our survey for being leaders in CSR or having a good record on supporting charities, but they demonstrate many of our best practice guidelines.

26. Focus on results and focus on people Consumers want to know what you’ve done and the human impact, rather than what you are going to do or intend to do. They hear about all the intentions but rarely see the result. Focus your energies on getting the activity underway and making an impact, then roll the PR machine. Show them the trees you planted last year. Focus on outcomes and show them the difference.

People care about people rather than broad big concepts that are hard to grasp. Talk about the positive impacts on people, about how your environmental efforts are making a difference to people and communities, and about what you do for your employees.

REAL NOT SPIEL™ - RESEARCH REPORT © Cavill + Co & Sweeney Research, October 2008 54 Find an ambassador who can represent your company and reflect your company values and be the ‘face of’ your company. Avoid being a faceless, large corporate and give your company human characteristics that consumers can relate to.

The Bendigo Bank U campaign focuses on the what’s in it for U.

55 REAL NOT SPIEL™ - RESEARCH REPORT © Cavill + Co & Sweeney Research, October 2008 56 The people behind the report

Cavill + Co is an Australian social enterprise developing corporate-cause partnerships. We specialise in forming strategic and win win partnerships, which can often include Cause Related Marketing and staff volunteering.

During our 13 years in business we have facilitated 31 corporate-cause partnerships which have invested over $22m into social causes. We are committed to designing strategically sound partnerships that have integrity and longevity and produce tangible and authentic outcomes. Our consultancy has won two awards and our clients’ partnerships have won three awards.

We commissioned Real Not Spiel™ so that we could provide best practice advice to our clients about how to communicate CSR activities, and also provide new insights to the industry.

We provide the following services for corporations:

• Seeking out and securing a new cause partner or CRM partner + due diligence (HeartSmart® + Safe Hands) • Reviewing and rationalising existing community partnerships programs to align to brand or strategy, or creating a new one (WholeHeart) • Creating a staff engagement structure (PassionPeople®)

Cavill + Co has extensive experience working with advertising and PR agencies as well as corporates directly.

We provide the following training services for NPOs:

• HeartSmart® Masterclass 2 x a year • HeartSmart® NPO Toolkit – 10 month distance education program • Consultancy to one NPO per year • ‘Organisational Readiness’ process • ‘Pitch Doctor’

8 www.cavill.com.au ' 03 9676 9127 * [email protected]

57 The people behind the report

Sweeney Research was established in 1972 and has grown to become one of Australia’s leading social and market research organisations. With offices in Melbourne and Sydney, Sweeney Research offer a full range of qualitative and quantitative research services and provide research based insight to some of Australia’s leading corporations as well as Federal and State Government bodies.

In recent years we have found that more and more organisations are seeking to assess their CSR activities through research amongst their customers, the community and their employees. Our involvment in Real Not Spiel™ has added enormously to our own insight in this area which will allow us to in turn design more insightful studies for our clients.

8 www.sweeneyresearch.com.au ' 03 9699 8466 (Melbourne) ' 02 9262 3266 (Sydney) * [email protected]

“ I have seen further than others, it is by standing upon the shoulders of giants.” Isaac Newton REAL NOT SPIEL™ - RESEARCH REPORT © Cavill + Co & Sweeney Research, October 2008 58 Foster’s has a proud history of supporting the communities in which we live and work. Our programs contribute directly to charities, in the form of community grants and partnerships, and via our employees through matched and payroll giving. Our employee involvement activities also place emphasis on recognising and responding to what matters to our people – both as individuals and as teams. To this end, Foster’s recently launched its employee volunteering program.

Through our partnerships with community and charitable organisations, Foster’s supports projects in three main areas: wellness, the environment and culture. We have formed partnerships with Movember, Conservation Volunteers and Red Dust Role Models to bring these themes to life. Foster’s is also committed to supporting sustainable community projects through its Grants program, now in its third year.

Foster’s foresees the benefits of this report to include gaining an insight into how today’s consumers want to be communicated with, as well as obtaining best practice CSR communication guidelines that can be adopted with ease and confidence.

As a founding member of the London Benchmarking Group (LBG) Australia / New Zealand, Foster’s measures its CSR activities, with results published in the annual Foster’s Group Sustainability Report.

Optus is an Australian leader in integrated telecommunications, delivering cutting-edge communications, information technology and entertainment services. As the champion of competition, Optus continues to deliver strong results in a challenging market, with innovative telecommunications packages and by creating a range of products for the home, business, corporate and government and wholesale sectors. Optus continues to challenge and push for sustainable growth by leading the market in innovation: providing new ways to use technology coupled with better service and convenience. Our approach to corporate responsibility is no different. We know that corporate responsibility and sustainable business go hand in hand.

“We were pleased to be involved in this research from the very beginning as we know that to communicate effectively, you need to be able to hear what people are saying in order to respond with the information that they want. The Real Not Spiel™ research study has provided us with valuable insights on how we can further enhance our CSR communications both internally and externally and we will definitely be taking this feedback on board” Jann Kohlman, Optus Group Manager Sponsorship and Community Programs.

8 www.optus.com.au * [email protected]

59 Lifeline Australia is best known for its telephone counseling service that is available 24 hours a day, 7 days a week but that is not the only service that we provide. Lifeline Australia’s focus is PEOPLE. We strive to place services that support living and wellbeing within reach of everyone by encouraging help seeking behaviour and providing the necessary educational and learning resources. Lifeline Australia is committed to working with companies that seek to improve or address the issues that affect their employees and the broader community. To this end, we have successfully partnered with organisations that have provided us with the opportunity to educate people within the workplace and broader community on mental health and wellbeing issues that affect many Australians. In some instances, these partnerships have also brought about real and measurable change as was the case with our suicide awareness and prevention campaigns. We will continue to act as advocates for and try to reduce the stigma attached to mental health issues by encouraging conversation on the topic within the corporate sector.

This report reaffirms our commitment to PEOPLE and the need to act locally, at a community level in order to effectively deliver our services. It was also heartening to find that NPOs are the organisations most trusted to do what is right for society and the environment. These findings are especially encouraging for Lifeline’s corporate engagement model when we consider that consumers also expect corporate entities to address the issues for which their goods or services may be partially responsible. Corporate entities are not always equipped to provide the solutions to these problems but many NPOs exist for that very reason. Lifeline sees a great future ahead, full of good corporate citizens and busy NPOs.

8 www.lifeline.org.au ' 03 9699 4202 * [email protected]

At Sensis, we’re committed to making a positive contribution to Australian communities and the environment. Sensis is Australia’s leading information resource, helping Australians find, buy and sell. Our network includes White Pages®, Yellow™ directories, Trading Post®, CitySearch®, Whereis® and Universal Publishers®, which produces mapping products such as the Gregory’s® and UBD® street directories. Sensis’ corporate responsibility commitment is clear: In helping Australians find, buy and sell, we are committed to being ethical, sustainable and accountable with all our stakeholders, in all our operations. At Sensis we believe how we do business is as important as what we do.

8 www.about.sensis.com.au ' 03 8653 5000

REAL NOT SPIEL™ - RESEARCH REPORT © Cavill + Co & Sweeney Research, October 2008 60 Concise is a specialist communications consultancy providing management services and skills in agency selection & appointment, communications strategy and planning, resource & process effectiveness and executive development. We are committed to enhancing the value of communication through industry innovation and best practice approach, helping businesses to ‘raise the bar’ on communications as a key to reputation management tool.

Promoting CSR is complex and requires careful planning and consideration. Our role is to aid business to identify and build “trust” in communication and profiling, all the while ensuring an integrated approach to communications planning and execution.

Real Not Spiel™ is a valuable research study which will challenge, change and enhance the way business engages its customers and broader stakeholders through CSR communication. It provides a qualified approach to engagement and is should be the reference guide for communication professionals around the country. For more informaiton contact Carolyn Brasher, Director.

8 www.concise.net.au ' 03 9827 3327 | 0418 525 218 * [email protected]

The Australian Centre for Corporate Social Responsibility is Australia’s leading specialist CSR advisory and training firm. We provide advisory, research and training services in corporate social responsibility to a wide range of clients in the public, private and government sectors. Our unique capacity building approach helps organisations identify and understand their social responsibilities, capacity and impact and develop strategies and tactics to reduce social risks and improve both performance and social responsiveness.

ACCSR is an Organisational Stakeholder of the Global Reporting Initiative, a Supporter of the United Nations Global Compact, and a partner of La Trobe University’s Graduate School of Management in the development and delivery of the Graduate Certificate in Corporate Responsibility.

8 www.accsr.com.au ' 03 9826 1767 * [email protected]

61 redwagon has a total of 16 years experience in graphic design in the not-for-profit and corporate, as well as research and government sectors. redwagon was born in melbourne in 2006, after an eight year career at a private marketing agency based in st kilda road, specialising in not-for-profits. redwagon is driven by ania nowakowska, her dog django, and their associates. ania was born in poland and studied visual arts at the university of melbourne, majoring in graphic design and communication, art history, and a minor in photography. her digital art has featured in numerous international exhibitions. ania has won several national awards from the fundraising institute of australia in her role as art director and graphic designer on projects for not-for-profit organisations. she has also been chosen through competitive selection as logo designer for the international bi- annual leonard cohen event since 2000 (montreal, hydra, new york, berlin, edmonton, krakow, madison, and dublin). redwagon wheels along to gypsy music, sunshine, rain, and daily beach walks with django. they take pride in their work no matter what its nature, whether working to super tight deadlines, or taking time creating art for pleasure. redwagon design develops direct response campaigns and materials for both the non-profit and the corporate sectors. their aim is to understand the clients’ vision, brand and key messages and translate them into compelling campaigns that connect with audiences and generate results. redwagon services include:

• creative services • direct mail • branding/corporate identity • stationery (business cards, letterhead, envelopes, package sleeves) • print advertising/ promotional material (incl filler ads, inserts, ads, postcards, posters) • newsletters, booklets, annual reports, organisation brochures, fundraising brochures • email and e-dm (incl design, scheduling and sending) • copywriting

• account management

* [email protected] ' 0425 789 761 8 www.redwagon.com.au

REAL NOT SPIEL™ - RESEARCH REPORT © Cavill + Co & Sweeney Research, October 2008 62 A word from the CSR experts

CSR in hard times by David Grayson

Various commentators have suggested that the current economic downturn is going to be bad for Corporate Responsibility. It is just as plausible to argue the opposite: that hard times could improve the embedding of responsible business. How so? Businesses which have spent the past decade painstakingly establishing their credentials for corporate responsibility are not going to throw that away lightly. Indeed, aborting their commitment now, would create a reputation for being superficial and deceptive about their original commitment, Such a negative reputation once created would be very hard to shake off. “It takes twenty years to build a reputation,” says Warren Buffet “and it can be lost in five minutes.” And – one might add – it will then take far longer to rebuild than it did to establish in the first place.

In contrast, in the tough economic conditions that we are likely to experience for several years at least, businesses are going to be looking for every means possible to differentiate themselves from competitors; and to make themselves more attractive to customers and talented employees. And, contrary to popular misconceptions, responsible business can save a firm money – or even make money – rather necessarily having to create extra costs.

Furthermore, employees whose loyalty and commitment to “go the extra mile” will be even more important to help businesses to get through the lean years, will be de-motivated by any perceived backsliding on the Corporate Responsibility commitment. Doing good in the good times takes vision. Sticking with it in the tough times, takes vision and determination.

Of course, those companies who do not take their commitment seriously, who have just paid lip- service and treated it as a “launch, a lunch and a logo” – a bolt-on to business operations and not built-in to business purpose and strategy – these companies will probably peel off. They will be no loss. On the contrary, it will sharpen the gap between the committed and others.

For the committed, it should speed up the process of innovation: finding more cost-effective and creative ways of improving sustainability. Already, we are seeing how escalating oil prices are stimulating more smart money to go in to green energy projects. Similarly, companies are now trying to find more efficient ways of advancing their commitment to be a responsible business. During the aftermath of the dotcom bubble bursting, some of the big information and communications technology companies chose to give staff unpaid leave, or half-pay secondments to community organisations where they could keep using their skills, with a job to come back to in the business, rather than laying people off. It will be that kind of ingenuity and sharing of the short-term pain that will differentiate the best companies through the recession. Hard times do not have to mean a reversal of long-term commitments to sustainability and business responsibility if managers use their entrepreneurial flair and creativity.

David Grayson is professor of Corporate Responsibility and director of the Doughty Centre for Corporate Responsibility at Cranfield School of Management, UK. www.doughtycentre.info

63 A word from the CSR experts

CSR Holy Grail by Leeora Black

The Australian Centre for Corporate Social Responsibility is delighted to be associated with this important research study, “Real not Spiel™”.

Effectively communicating CSR to consumers is like a holy grail for many corporations. They may spend millions investing in communities, improving governance and accountability systems or developing responsible products and services. Understandably, they hope this investment will be rewarded with brand recognition and loyalty. Consumers, when asked, say they want information about corporate social responsibility efforts. But when companies talk about their CSR, their efforts are often received with skepticism and declining trust. Indeed, trust in corporations and other major institutions of society has declined steadily for the last 30 years in the developed world, while CSR expectations have risen. This is a conundrum for those managing CSR in corporations or their community partners.

Through our advisory services and training programs we counsel corporations that consumer communications are a last step in a long-term, consistent CSR strategy. For a corporation to have any credibility, it must act with integrity in every way, in all interactions with stakeholders and in every decision. The place to start CSR is by looking inside the organisation, at its values, products, services, accountability mechanisms, processes and impacts. Employees are clearly integral to this and are the bedrock on which all successful CSR strategies or communication rests. This study clearly shows that consumers are concerned about how companies treat their employees and suppliers. Word of mouth effects are therefore likely to be even more powerful in the context of CSR.

The findings withinReal not Spiel™ are broadly consistent with international research findings but give locally relevant data and detail for the first time. The best practice communications guidelines are especially helpful for communications managers who wish to better navigate these perilous waters to produce the consumer responses to CSR that they seek.

Dr Leeora D. Black is the Managing Director of the Australian Centre for Corporate Social Responsibility

8 www.accsr.com.au ' 03 9826 1767 * [email protected]

REAL NOT SPIEL™ - RESEARCH REPORT © Cavill + Co & Sweeney Research, October 2008 64 Some refreshment

Cascade Green – The beer that gives back

• Environmentally-friendly beer • 100% Carbon offset • Packaging produced with recycled and recyclable materials where possible • Sourced from Tasmanian ingredients whenever available • Preservative free • 1/3 fewer carbohydrates than regular full strength beer

Objectives/intentions

• Address consumer concerns for environmental impact • Develop a new product that maximises the ‘Tasmanian purity’ of Cascade’s brewery • Establish a credible ‘green’ or environmental positioning - based on lifecycle analysis and management and ‘offsetting’ of the total carbon footprint.

What we did

Through its Cascade brewery, Foster’s has developed and brought to market an environmentally- friendly, 100% carbon offset beer. Certified as Greenhouse Friendly™ by the Australian Government1, Cascade Green is among only a handful of products to be approved by this program.

As part of the rigorous accreditation process, Cascade Green underwent an extensive Lifecycle Analysis to calculate the total greenhouse gas (GHG) emissions generated by the beer – all independently verified by Government nominated assessors – and including everything from picking the hops to putting the empty bottle in a recycling bin. The analysis includes impacts from energy generation within our business and our suppliers, waste and waste treatment, product marketing, packaging and an allowance for refrigeration in the consumer’s fridge.

To ensure Cascade Green maintains its authenticity and credibility in the marketplace, an Emissions Monitoring Plan is now in place to meet the commitments required for ongoing Greenhouse Friendly™ certification.

At the company level, Foster’s has also introduced a global Carbon Reduction Program to reduce the carbon footprint of the company itself, in a consistent and measured way.

1 www.climatechange.gov.au/greenhousefriendly

65 How we communicate it

In the beginning, Cascade Green adopted a low key – largely below the line – marketing strategy. The intention was to grow the brand organically and attract ‘early adopters’, consumers who are generally more environmentally and socially aware.

All Cascade Green promotions incorporate the product’s tagline, ‘the beer that gives back’, reinforcing the environmental positioning of the product.

The Cascade Green website (www.cascadegreen.com.au) provides detailed information on how Cascade Green’s full lifecycle is carbon offset and contains a green blog for customers to share their own green tips.

Cascade Green consumers are naturally inquisitive about the product and what Cascade is doing to make the beer ‘green’. In response, we have invested in non-traditional media such as our website, website blog and viral marketing to ensure our consumer base is kept up to date with Cascade Green’s progress, resulting in a more engaging and long-term relationship with core consumers.

REAL NOT SPIEL™ - RESEARCH REPORT © Cavill + Co & Sweeney Research, October 2008 66 Really good resources

CSR resources

Australian Centre for Corporate Social Responsibility www.accsr.com.au

Corporate Responsibility Index www.corporate-responsibility.com.au

CSR Jargon Busting Tree www.cavill.com.au > CSR Jargon Busting Tree

St James Ethics Centre www.ethics.org.au

Nat Institute for Governance www.governanceinstitute.edu.au

BP - Talk stopped long ago www.talkstoppedlongago.com.au

Overseas

Business for Social Responsibility www.bsr.org

CSRWire www.csrwire.com

Business in the Community www.bitc.org.uk

CSR Europe www.csreurope.org

David Grayson www.davidgrayson.net

Ethics Resource Center www.ethics.org

67 Really good resources

Corporate Community Engagement resources

Cavill + Co www.cavill.com.au

Lifeline www.lifeline.org.au

Our Community www.ourcommunity.com.au

Overseas

Cone Communications www.coneinc.com

Business in the Community www.bitc.org.uk

Environmental impact resources

Climate change round table www.businessroundtable.com.au

Workplace Ecotraining www.voxbandicoot.com.au/SeOS/index.htm

Green goods www.greengoods.nsw.gov.au/policy/sustprocingov.htm

Greenhouse Friendly™ www.climatechange.gov.au > greenhousefriendly

Overseas

SustainAbility www.sustainability.com

Business Council for Sustainability www.wbcsd.org

Conservation International www.celb.org

REAL NOT SPIEL™ - RESEARCH REPORT © Cavill + Co & Sweeney Research, October 2008 68 Consumer & activist websites

Choice www.choice.com.au

Eco-Shout www.eco-shout.org > greenwash

Australian Conservation Foundation www.acfonline.org.au > articles > consumption atlas

Not Good Enough www.notgoodenough.org

Research

Sweeney Research www.sweeneyresearch.com.au

PassionPeople® How Community Engagement positively impacts employee performance Cavill + Co/Seek 2004 Available free – [email protected]

Heart & Sold Australian consumers speak from the heart (on CRM) Cavill + Co/Worthington Di Marzio 2001 Available free - [email protected]

Eye on Australia Grey Worldwide

Trust Survey Edelman

LOHAS Report Mobium Group

69 Other useful websites Sponsorship

PowerSponsorship www.powersponsorship.com

Australian Sponsorship & Marketing Association www.asma.com.au

Staff volunteering

Seek Volunteer www.volunteer.com.au For CSR inspiration… Interface USA www.interfaceinc.com

Marks & Spencer ‘behind the label’ campaign www.marksandspencer.com

The Body Shop www.thebodyshop.com.au

Origin www.originenergy.com.au

Toyota www.toyota.com.au

Insurance Australia Group Ltd www.iag.com.au

BHP Billiton www.bhpbilliton.com.au

Westpac www.westpac.com.au

ANZ www.anz.com.au

Dow Jones Sustainability Index www.sustainability-index.com

REAL NOT SPIEL™ - RESEARCH REPORT © Cavill + Co & Sweeney Research, October 2008 70 Publications

Ethical Investor Lifecraft group

Business Community Intelligence Ourcommunity.com.au

Boss Fairfax Business Media

BRW Fairfax Business Media

Books

Corporate Social Responsibility: Doing the Most Good for Your Company and Your Cause by Phillip Kotler and Nancy Lee (2005) John Wiley and Sons The Market for Virtue: The Potential and Limits of CSR by David Vogel (2005) Brookings Institution Press Strategic Corporate Social Responsibility: Stakeholders in a Global Environment by William B Werther Jr and David Chandler (2006) Sage Corporation Be Good! The Story of Corporate Social Responsibility, by William C Frederick ((2006) Dog Ear Publishing ‘Corporate Social Opportunity! 7 Steps to make Corporate Social Responsibility work for your business’ by David Grayson and Adrian Hodges. (2004) Greenleaf Publishing

The High-Purpose Company: The TRULY Responsible (and Highly Profitable) Firms That Are Changing Business Now by Christine Arena (2006) Harper Business

71 Real big thanks

Cavill + Co would like to thank the following people and organisations who have generously provided their intelligence, insight, creativity, time and investment to make this research report possible.

Partnering organisations

People Michael Thomas and Natalie Gibbons at Cavill + Co David Barmer, Executive Chairman of Sweeney Research Anna Nguyen at Sweeney Research Louise Kennard at Sweeney Research Antoinette Golino at Sweeney Research Lawrence Robinson at Sweeney Research Lil Barac at Foster’s Group Helen Maisano at Optus Shannon Anderson at Lifeline Jill Riseley at Sensis (and Simon Robinson, formerly of Sensis) Carolyn Brasher at Concise Communications Leeora Black at Australian Centre for Corporate Social Responsibility Ania Nowakowska at redwagon design And Lorrae Nicholson Sandi Walters Heath Paynter Anna Rogers and Paul Findlay at Hub Ben Taylor, Managing Director, Sweeney Research Sydney Jill Heymanson and all the consumers who participated in the research Photo credits

Front cover James Group Studios Page 11 Jean M. Twenge PhD. Cover image - Generation Me (2006) Free Press Page 13 Professor A Thorburn, Murdoch Childrens Research Institute Page 23 Image courtesy of Kimberley Clark and Guide Dogs Australia Page 29 & 51 Images courtesy of Kay&Burton and MCRI Page 48 Image courtesy of Baker’s Delight Page 50 Image courtesy of Unilever Page 50 Image courtesy of Optus Page 52, 65 & 66 Images courtesy of Fosters Page 54 Image courtesy of Sakata Rice Snacks Aust. Page 55 Image courtesy of Bendigo Bank

REAL NOT SPIEL™ - RESEARCH REPORT © Cavill + Co & Sweeney Research, October 2008 72 73 DATA

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More info: Cavill + Co www.cavill.com.au | [email protected]

REAL NOT SPIEL™ - RESEARCH REPORT © Cavill + Co & Sweeney Research, October 2008 74 REAL NOT SPIEL™