Europe), Levi Strauss Europe, Rio Tinto, Smithkline Beecham (Now Part of Glaxosmithkline) and Whirlpool Authors

TE CITIZENSHIP THE CENTER FOR CORPORA T BOSTON COLLEGE A

featuring: AGILENT TECHNOLOGIES, ASTRAZENECA, BP, BT, CAPITAL ONE, DIAGEO, FORD MOTOR COMPANY, IBM, JOHNSON & JOHNSON (EUROPE), LEVI STRAUSS EUROPE, RIO TINTO, SMITHKLINE BEECHAM (NOW PART OF GLAXOSMITHKLINE) AND WHIRLPOOL AUTHORS

The Center for Corporate Citizenship ProbusBNW at Boston College Alastair Bruce, director Steven Rochlin, director of research and policy development Andy Coulson, consultant Tamara J. Bliss, Ph.D., senior research associate

© 2002 The Center for Corporate Citizenship at Boston College. All rights reserved. This publication was prepared by The Center for Corporate Citizenship at Boston College, and is not to be reprinted without permission of The Center.

the center for corporate citizenship at boston college Table of Contents

FOREWORD ...... iii

1. INTRODUCTION: THE CHALLENGE ...... 1

2. STRATEGY: WHY GO GLOBAL? ...... 7

3. MANAGEMENT: INTERNATIONAL BY DESIGN ...... 19

4. ACTIVITIES: LEVERAGING VALUE ...... 24

5. COMMUNICATIONS: SEEING IS BELIEVING ...... 33

6. MEASUREMENT: WHAT GETS MEASURED GETS MANAGED ...... 42

7. OUTCOMES: MAKING A DIFFERENCE WORLDWIDE ...... 49

8. ASSESSING INTERNATIONAL COMMUNITY INVOLVEMENT PERFORMANCE ...... 54

9. CONCLUSION ...... 57

APPENDIX: PARTICIPATING COMPANIES AND CONTACTS ...... 59 the center for corporate citizenship at boston college Foreword

Much of our work with our partner companies is designed to help them

increase the business relevance and value of their corporate community

involvement (CCI) activities. This involves aligning and integrating community

involvement right across the business. For a global business, that requires it

to take on a global aspect.

This is not simply about philanthropy with an international dimension.

It is about embedding community involvement throughout all business opera-

tions, across the world, as an essential element of corporate citizenship.

The environment for business is changing. Markets have opened as never

before. But at the same time, the pressures on businesses to behave as

responsible citizens have increased exponentially. In this context, more and

more community involvement departments and managers are faced with the

challenge of designing and implementing an international function. This is no

small task. Many companies are just starting to branch out from an approach

that concentrates mostly on the headquarters site or country. But it no longer

makes sense to neglect communities abroad that are the seat of business

operations, commercial opportunities, or stakeholder pressures.

Our two organizations—ProbusBNW and The Center for Corporate

Citizenship at Boston College—have come together to understand and define

good practice in internationalizing community involvement activities. We have

worked in partnership with 14 leading corporations, which have opened their

doors and shared their management practices, strategies, and experiences in

going global. The result is a landmark report that identifies how leading com-

panies practice international community involvement.

the center for corporate citizenship at boston college iii

This report contains the major findings of our research. We believe it will

prove an invaluable tool for corporate executives. The findings will help them

understand the business case for international community involvement. It will

also provide lessons, frameworks, and constructive good practice examples

that can be directly applied to their operations.

These 14 companies make no claim to be perfect global corporate citizens.

However, each of them is demonstrating commitment to respond to stake-

holder concerns and to make a measurable difference in the quality of life by

addressing critical social needs, wherever the companies operate in the world.

Some are providing real leadership. With great gratitude for their contribution

to this benchmarking research, we invite you to share the findings, and hope

that you will find them not just informative, but inspiring.

Sincerely,

Bradley K. Googins and Steven A. Rochlin Alastair Bruce and Andy Coulson Center for Corporate Citizenship ProbusBNW at Boston College

iv the center for corporate citizenship at boston college I. Introduction: The Challenge

Global operations are now a reality for business. But as involvement. More and more, this means that it is companies transform themselves into global entities, becoming a strategic function. Community involve- corporate community involvement (CCI) often lags ment managers are increasingly expected to design behind. This is not to say the function is under threat. plans and implement programs that provide business On the contrary, in both Europe and the United States, returns and respond to the expectations of stakeholders companies increasingly rely on community involve- worldwide. ment to express corporate values and drive their efforts This is a challenging transition for most businesses. to be viewed as responsible corporate citizens. Exporting a particular business model to new cultures A consequence of globalization is that businesses are, is hard enough. But transferring a specific approach to more than ever, expected to behave as global citizens. supporting communities seems loaded with controver- The implication is that corporate community involve- sy. Furthermore, resources are limited. Most companies ment operations need to reach beyond the headquar- find they can’t satisfy the demands of stakeholders for ters location and become more consistently managed support in their “home” country. If the available level of throughout international sites. resources stays constant, how can they possibly support far-flung initiatives across the globe? How can corpo- “Corporate community involvement” refers to activities rate functions undertake sophisticated and strategic to enhance a company’s relationships with, and to con- international approaches to community involvement tribute to the well-being of, the communities in which it with limited staff and operational budgets? What is the has a presence or impact. It encompasses programs that best way to coordinate global efforts? Is it even possible advance the interests of both the company and its com- to have a unified strategy that works in every region? munities, including donations (cash and in-kind), sponsorships, volunteering, community partnerships, THE BENCHMARK and direct involvement in social and community initia- To find answers to these questions, The Center for tives and policy-making. Corporate Citizenship at Boston College in the US (The Everywhere a business operates, sells, manufactures, Center) and ProbusBNW in the UK have undertaken invests and markets, it affects communities—particu- the first-ever benchmarking study of the international larly local communities—and its stakeholders within corporate community involvement activities of 14 com- them. At the same time, in a complex, dynamic, and panies headquartered in Europe and the US. globalizing economy, decisions about where not to Benchmarking is an activity designed to identify best invest may affect communities as well. practices so that companies can learn from industry leaders. So leading companies see that they have no choice but to expand their view of, and approach to, community

the center for corporate citizenship at boston college 1

PARTICIPATING COMPANIES

EUROPE-BASED US-BASED

AstraZeneca Agilent Technologies BP Capital One Financial Services BT Ford Motor Company Diageo IBM Johnson & Johnson (Europe) Whirlpool Levi Strauss Europe Fortune 500 High-Tech Company ** Rio Tinto SmithKline Beecham (now GlaxoSmithKline *)

*Since completion of the data gathering for the study, SmithKline Beecham (SB) has merged with Glaxo Wellcome to form GlaxoSmithKline (GSK). GSK has confirmed its commitment to continue the active engagement in international community involvement of both its predecessor companies, building on many of the SB approaches and activities described in this report, as well as on Glaxo Wellcome programs. Where information in the report relates specifically to SmithKline Beecham, rather than to the new merged company, we refer to SB rather than to GSK, and use the past tense. **This sponsoring company is undergoing a change process to transform its approach to international community involvement. It has requested that its identity be kept confidential.

Aims of the study • To promote greater awareness of developments in The aims of the study were: this field and of the commitment and achievements • To identify trends and good practice in international of participating companies. corporate community involvement among leading companies in the US and Europe. Approach and methodology • To enable participating companies to improve their The Center and ProbusBNW collected detailed data on programs by highlighting their comparative each participant’s international community involve- strengths and weaknesses. ment approach. Representatives from each company

2 the center for corporate citizenship at boston college completed a standardized data collection workbook. In • Measurement: How can we design a measurement addition, companies provided relevant materials and process that provides meaningful feedback on the documentation regarding their community involve- successes and shortcomings of our international ment activities and management, including specific CCI activities? program case studies. As part of the goal of sharing • Outcomes: What are the business and community good practice, representatives of the companies met in benefits of our efforts around the world? London towards the end of 2000, hosted by BT, to The rest of the report provides guidance, key learnings review the findings and to exchange ideas, experience, and case examples to help answer these questions. and concerns. There is also a section outlining the process used for assessing the international CCI performance of each of Report structure the participating companies, using a system of band- The bulk of the report is organized to cover six ele- ings. It should be noted that the findings are based on ments of community involvement, which also formed information obtained mostly during 2000, in some cases the basis of data collection: Strategy, Management, relating to the situation in 1999. For several of the bench- Activities, Communications, Measurement, and mark members, considerable change and development have Outcomes. occurred since then. Generally, these represent the core strategic management responsibilities of the community involvement PROJECT LEADERS function. However, companies have found that each ProbusBNW is a UK-based consultancy specializing in element poses specific challenges in the international corporate reputation management. Established in 1991 context. Some of these challenges are: as Bruce Naughton Wade, it has a successful track • Strategy: How do we design a unified, relevant and record of innovative and effective consulting, especially effective global CCI strategy for diverse operations, in the fields of corporate community involvement locations, and communities? (CCI), corporate social responsibility (CSR), and busi- • Management: How do we provide support and ness engagement in public policy. The company has direction for CCI across diverse locations? How do unrivaled experience in developing rigorous compara- we balance accountability with autonomy? tive benchmarks in these fields, such as the Corporate • Activities: How can programs like grant-making, Community Involvement Index which has now been employee volunteering, partnerships, etc. be adapt- used by 28 leading UK companies to obtain an expert ed to different countries and cultures? external assessment of their CCI performance. • Communications: What recognition for our efforts ProbusBNW is increasingly extending its activities into is it appropriate to seek in different countries?

the center for corporate citizenship at boston college 3 the support of international corporate strategies to protect and enhance reputation, including through corporate citizenship programs. THE BENCHMARK GROUP The Center for Corporate Citizenship at Boston The 14 companies participating cover a wide array of industries, College, founded in 1985, provides leadership in estab- including: lishing corporate citizenship as a business essential, so

• Apparel all companies act as economic and social assets to the communities they impact. Part of Boston College’s • Automotive Carroll School of Management, The Center provides • Consumer Goods executive education through the only certificate pro-

• Financial Services gram in corporate community involvement. The Center has trained thousands of managers. It holds • Food and Drink dozens of “convenings” each year: an annual confer- • Manufacturing ence, workshops, roundtable discussions, and regional

• Mining meetings. The Center works to turn theory into practice with practical research and with the development • Oil and Gas of tools like the Standards of Excellence and its com- • Pharmaceuticals panion Diagnostic Tool. It produces cutting edge

• Retail research on trends and good practice in corporate citizenship, serves as an information resource, and con- • Telecommunications sults with members to help them develop and imple- These companies also represent ment strategic citizenship plans. prospective leaders in the field. Of the 14 participants, 11 say that Geographic scope of operations their company “seeks to be seen Corporate headquarters for the benchmark companies as a leader in international community involvement.” are primarily located in either the United States (8) or the United Kingdom (6). Two of the companies in the benchmark, Johnson & Johnson and Levi Strauss and Company, participated via their European operating groups.

The number of countries in which companies in the group have operations is vast, ranging from a low of four to a high of 200, with an average of 82 countries

4 the center for corporate citizenship at boston college TABLE 1.1 CORPORATE CONTRIBUTIONS BUDGETS

Total % of % of Per Company Contributions Pretax profit Sales Employee US$000 % % US$

Agilent Technologies $39,000 5.26% 0.47% $813

AstraZeneca $20,000 0.73% 0.11% $345

BP Amoco $67,400 0.96% 0.07% $838

BT * $56,000 1.19% 0.16% $410

Capital One $8,390 1.45% 0.53% $508

Diageo * $28,960 1.25% 0.15% $400

Ford $84,000 0.76% 0.05% $230

IBM $126,100 1.09% 0.14% $399

Johnson & Johnson (Europe only)** $5,100 N/A 0.08% $204

Levi Strauss (Europe only) $3,145 N/A 0.24% $605

Rio Tinto $41,400 2.04% 0.44% $1,225

SmithKline Beecham * $37,600 1.41% 0.28% $797

Whirlpool $6,200 0.92% 0.06% $102

Unnamed sponsor company $19,246 0.66% 0.12% $273

*Converted from UK£ @ £1=US$1.60 **Johnson & Johnson’s European contributions of $5.1 million represent cash only; total contributions amounted to well over $10 million.

the center for corporate citizenship at boston college 5 per company. Seven of the companies in the group TABLE 1.2 state that they undertake CCI activities in all of the CONTRIBUTIONS RATIOS countries in which they operate. Across the whole group, the average number of countries in which each Contributions Ratio High Median * Low company undertakes community involvement opera- % of pre-tax profit 5.26% 1.09% 0.51% tions of some kind is 78. One company is at present active only in its headquarters country, but has plans to % of pre-tax sales 0.68% 0.15% 0.05% launch overseas programs shortly. Per employee $1,923 $463 $102 Corporate contributions *The “median” measures the group’s mid-point. Table 1.1 shows the total corporate contributions bud- Half of the companies have contributions ratios gets for the participating companies for the latest above the median, and half below the median. financial year for which figures were available when The median can be a more valuable measure the data was collected, in most cases 1999. These than an average because it is not distorted by range from a high of $188.1 million to a low of $3.1 very large or very small numbers. million. The median, or “midpoint,” contribution is $35 million.

Table 1.1 reports contributions as a percent of pre-tax profit, sales, and per employee. Table 1.2 reports the high, median, and low for these ratios.

Companies in the benchmark group find it difficult to separate out contributions budgets between domestic and international operations. This reflects just one of the challenging aspects of managing CCI globally.

6 the center for corporate citizenship at boston college II. Strategy: Why Go Global?

What are the key drivers that motivate companies to companies like BP and Rio Tinto, which can have establish international CCI programs? And what are major impacts on local communities, this can be a the strategic approaches they take to ensure that those prerequisite for their ability to do business at all. programs are beneficial, both for the business and for • Building reputation: Thirteen of the 14 companies its communities, and consistent with their own corpo- view this as a key driver. Corporate reputation is “in rate values, goals and structure? the eye of the stakeholder,” and many significant stakeholders are concerned with companies’ social The companies in the benchmark group are committed responsibility. Initiatives such as Agilent’s “Action to leadership in community involvement. They typically Week,” involving 40,000 employees in 120 coun- possess supportive leadership, ambitious goals, and tries in volunteering activities, can be valuable in extensive experience in community involvement. They differentiating companies from their competitors. In are also forging ahead in expanding their CCI activities pursuit of its commitment to tackling key social to international sites, designing innovative operations, issues, IBM seeks to demonstrate its innovation and achieving excellence in their performance. Their and technological capability through its community practices, therefore, are indicative of the best in the programs. field. • Fostering corporate values and supporting human resources goals: Thirteen of the 14 companies report DRIVERS OF INTERNATIONAL CCI that “significant employee presence” drives deci- Two-thirds of the companies in the benchmark group sions to establish CCI operations. Diageo sees vol- report that drivers motivating them to develop inter- unteering as an essential part of all its community national community involvement are similar both programs: it enhances the company’s reputation internationally and in their “home” countries. Their locally, and develops staff skills such as teamwork influence will depend on factors such as the type of and communication. In companies like Johnson & industry, the location of operations, critical business Johnson and Levi Strauss, community involvement issues, and stakeholder pressures. That said, several is part of the corporate “glue” that binds different drivers are common to many of the companies in the operating units together. For a recently formed com- benchmark group. pany like AstraZeneca, it can help to create a sense • “License to operate”: All of the companies report of common purpose. that “significant investment or production in the • Meeting external expectations: Thirteen of the com- region” is a “very important” driver for establishing panies establish international CCI operations to international CCI operations. In this light, CCI is a respond to the expectations of key stakeholders, means to establish the business as a welcome asset including government regulators and opinion lead- in the region, and thus protect the company’s free- ers, NGOs and pressure groups, customers, the dom, or “license,” to operate. For natural resource media, and investors. Nine of the companies create

the center for corporate citizenship at boston college 7 CCI operations to build good relations with local improve the quality of public education via systemic governments. A growing number of companies, reform. Whirlpool uses its influence to promote including BP, Ford and Rio Tinto, publish reports on large-scale regeneration of local communities where how they meet their social and environmental it operates. Thirteen of the 14 companies cite the responsibilities as part of their accountability to desire to respond to key community needs as a key stakeholders. driver. • Critical social issues: Leading companies see tack- • Access to new markets: Nine of the companies in ling pressing social issues as the province of all sec- the benchmark, nearly two-thirds, create CCI pro- tors of society. Increasingly, challenges in areas like grams in regions where they have a “significant education, poverty and health pose threats to pros- market presence.” Another four use CCI as part of a perity. GlaxoSmithKline is seeking to eliminate the strategy for new market entry. Companies like BT, crippling disease of lymphatic filariasis (also known Capital One, Diageo and Whirlpool see community as elephantiasis) which affects over 120 million peo- involvement as a way of positioning themselves ple in 82 countries around the world. IBM is work- favorably in new countries where they seek to estab- ing through its Reinventing Education program to lish a presence.

TABLE 2.1 KEY DRIVERS

Drivers influencing the decision to undertake community Number identifying as involvement activity in a given country or region "very important" Percent

Significant investment or production in the region 14 100% Need to build a positive corporate reputation in the region 13 93% Significant employee presence in the region 13 93% Expectations of stakeholders in the region (e.g. opinion formers, community leaders, general public) 13 93% Social or community needs of the region 13 93% Significant existing market in the region 9 64% Building good relations with government in the region 9 64% Historical precedent 5 36% Need to develop new markets in the region 4 29%

8 the center for corporate citizenship at boston college Table 2.1 presents ratings of key drivers influencing international CCI. TABLE 2.2 STRUCTURAL APPROACH TO INTERNATIONAL CCI STRATEGIC APPROACHES TO INTERNATIONAL CCI Number of How do leading companies approach the Structural companies using formulation of a global CCI strategy that approach this approach Percent provides direction and focus for wide- Centrally managed with spread corporate operations? input from units/countries 4 29% The adage states that “structure follows Centrally defined strategy strategy.” The overall approach to “going implemented by global” should help to determine how units/countries 5 36% international CCI operations are struc- tured. As Table 2.2 shows, the compa- Decentralized with nies in the benchmark group are split high autonomy 5 36% almost evenly three ways.

Approximately one-third of the companies structure the function in a centralized manner, gram using any of the four approaches. Which with input from business units and country offices. approach a company takes will depend on its culture, Another one-third define international CCI from the values, organization, international operations, etc. The center, but provide more flexibility to local business distinguishing features of the different approaches are units and countries to execute the strategy as they see set out in Table 2.3. fit. The remaining one-third manage a highly decen- Local empowerment tralized function, with high levels of autonomy for In this model, used by AstraZeneca and Rio Tinto, local local business units and countries. sites possess a high degree of autonomy to design and Most of the approaches by companies undertaking implement their own CCI strategies. CCI staff may, or community involvement on an international scale can may not, be evaluated against consistent performance be mapped to the four categories shown in Figure 1. goals and accountabilities set by headquarters. Staff at Different approaches suit different companies: none is corporate headquarters may perform the role of “facili- necessarily “better” than the others. A company can tator” and provide guidance and support to sites that design and manage a successful international CCI pro- request assistance.

the center for corporate citizenship at boston college 9 Some companies may use this approach as a default approaches. However, for companies that pursue this because they lack an effective process for designing an approach intentionally, empowering international sites integrated global strategy. In this situation, companies to design their own approaches is an effective response may design uncoordinated approaches, and local sites to the challenge of designing a CCI program focused may lack the budget and staff to pursue active CCI on responding to local needs and issues.

FIGURE 1: APPROACHES TO INTERNATIONAL CORPORATE COMMUNITY INVOLVEMENT

LOCAL CENTRAL GLOBAL

Program extension: Headquarters country “exports” programs

Capital One Whirlpool Local empowerment: Integrative Local sites design their own global strategy: approach with little over- Integrated, aligned strategy sight or integration that is global and local

AstraZeneca Strategic IBM Rio Tinto customization: SmithKline Beecham New programs designed for global sites, under a strategic frame

AGILENT BP BT DIAGEO FORD J&J LEVI’S

10 the center for corporate citizenship at boston college TABLE 2.3 FEATURES OF STRATEGIC APPROACHES

Strategy Programs Focus

Local empowerment Locally driven Varied according to Diverse: no clear local needs common focus

Program extension Centrally driven Consistent, widely- Clear, program- replicated programs based focus

Strategic customization Centrally driven Varied within overall Clear but broad framework focus

Integrative global Global: centrally Consistent programs, Clear focus Strategy driven, reflecting but adapted to on priority issues local input local needs

This is an approach that makes a great deal of sense (and under pressure to develop programs quickly) often for organizations that are highly decentralized and/or lead with this approach. entrepreneurial. It also makes sense for companies that are very deeply engaged in many communities— Strategic customization ranging from developed to less developed—and that In this model, followed by companies such as Agilent, rely on building close working relationships with local BP, BT, Diageo, Ford Motor Company, Johnson & stakeholders. Johnson and Levi Strauss, staff at corporate headquarters will generally define overall strategy. However, new Program extension programs are custom-designed, often by local units In this model, followed by Capital One Financial themselves, to meet the needs of international sites. Services and Whirlpool, headquarters plays a strong These programs may fall naturally under headquarters’ role in forming strategy and “exporting” programs to strategy and areas of focus, or they may divert to international sites. These companies have a consistent respond to local considerations. Strategic themes are theme to their approach. Often their rationale is that broad enough to encompass a range of activities that the issues they address are global in scope, and suc- are adaptable to local needs. In other words, the general cessful models and processes can be adapted to local sites. In addition, companies new to international CCI continued on page 18

the center for corporate citizenship at boston college 11 Local Empowerment

Rio Tinto’s community activities are distinctive in

that they are highly devolved and focused on local FEATURES

relationships with the communities in which the • Activities and approach (including focus areas) are driven primarily by local business operations company operates. The nature of Rio Tinto’s business dictates this approach because each separate • Role of central HQ CCI function is mainly one of defining broad general principles, providing encour- business or mine operates as a largely autonomous agement and support, collating and sharing information and good practice, central reporting, etc. local, rather than international, unit. Some of these businesses are joint ventures, with Rio Tinto’s share • Hard to integrate reporting and measurement because of diversity of local programs ranging from 16 percent to 80 percent. • Little consistent focus or commonality of approach, but high responsiveness to local circumstances Rio Tinto sees community relations as a core part of PROS CONS the business, with protection of its “license to oper- • Responsive to • Quality control of ate” as the major goal. The company’s communities decentralized and CCI is difficult; policy is based on the three principles of mutual entrepreneurial culture quality may • Highly attuned and vary widely respect, active partnership and long-term commit- sensitive to local cultures • Oversight is difficult and regional differences • Difficult to track and ment, which are set out in a booklet on “The Way We • Highly empowering for measure Work.” Businesses are required to produce five-year local staff • Potential for local • Promotes creativity and crises to develop strategic CCI plans, and to produce social and envi- innovation ronmental reports on an annual basis. In addition to these local community relations programs, the company has set up eight foundations, in Australia, Indonesia, Namibia, South Africa and Zimbabwe, generally including independent trustees, to provide support at community, regional and national levels. These mechanisms are all aimed at promoting quality inside the businesses.

The role of the central Rio Tinto CCI function is to provide encouragement, support and facilitation to the businesses. At the same time, headquarters manages the company’s involvement in a number of major international partnership initiatives such as the Mining, Minerals and Sustainable Development Initiative, Business Partners for Development (with the World Bank and others), and the World Alliance for Community Health (with the World Health Organization).

12 the center for corporate citizenship at boston college Program Extension

CCI occurs “in some degree” at most of FEATURES Whirlpool’s global sites. Through its One Global

• Strategy most fully developed in headquarters coun- Company initiative, senior global managers identi- try; company seeking to extend approach to over- fied the community as a key corporate stakeholder, seas operations, generally limited in number or scale along with employees, shareholders and cus-

• Emphasis on adapting proven home-country tomers. This is being driven in part by the world- programs to meet the needs of other countries wide competition for talent. and cultures

• Often “bilateral”’ approach, involving central CCI Whirlpool’s most notable initiative is its leadership function and staff in the specific countries where CCI activity is to be developed of a community development project at its head-

PROS CONS quarters site in Benton Harbor, Michigan. In the • Ease of control • Lack of cultural early 1990s, Benton Harbor was in severe decline. • Experience of sensitivity executing strategy • Programs may not The company took leadership by bringing key and managing programs be adaptable stakeholders together to identify priorities for com- • Ability to “standardize” • Local staff may not management and feel empowered munity improvement. The result was the formation reporting of CCI of the Cornerstone Alliance, a “nonprofit, investor- activities driven community and economic development agency focusing on job and tax-base creation with an emphasis on socially and economically dis- tressed areas.” Evaluations show that the initiative is improving the overall quality of life.

Whirlpool believes this community-building and partnership approach can be successfully applied internationally. This is driving senior executives to focus global CCI strategy on implementing similar strategies throughout the communities where Whirlpool operates.

the center for corporate citizenship at boston college 13 Strategic Customization

The overall strategy at Diageo is driven by the central function, with funds and projects channeled FEATURES

through the Diageo Foundation. Within this frame- • Varying local implementation within a consistent worldwide strategic framework work, individual operations are given a fairly free hand as to which type of projects they wish to pro- • Most or all activities fit within a defined set of principles, guidelines and/or focus areas pose for support. Focus areas for the Diageo • Specific projects and activities are mostly identified Foundation’s international community activity and undertaken locally include: • Usually separate CCI teams in different operating • Skills for Life - enabling people and communities units, but with a “dotted-line” relationship to the central CCI function to fulfill their potential and improve their life • Mechanisms in place to share experience, good prospects practice and specific projects across units • Water of Life - supporting water-related environ- • May be some international (i.e. multi-country) pro- mental and humanitarian initiatives, biodiversity jects in addition to locally managed projects

and sustainability. • Good awareness, both centrally and locally, of international CCI activity and achievements, although • Global Brands - building on relationships data may be hard to integrate between Diageo’s brands and consumers PROS CONS • Local Citizens - getting involved in the commun- • Allows for a consistent • Difficult to control; ities where Diageo operates theme and focus area can result in too to “brand” the CCI much flexibility • Our People - supporting, encouraging and approach, combined and inconsistency with local flexibility • Can be hard to engaging Diageo staff in the community • Permits local empower- communicate a ment of staff, and local consistent These are designed to apply across the group, but cultural sensitivity message to stakeholders individual businesses and brands tend to place • Can be hard to greater emphasis on certain themes. The great coordinate and share information majority of projects are devised on a situational or country-by-country basis. Approaches to community improvement in Africa, for instance, though covered by the same overall “Water of Life” theme, will differ widely from those of a canal regeneration scheme in Scotland. Most projects are branded under the name of one of the four businesses or their subsidiary brands, rather than the umbrella Diageo brand.

14 the center for corporate citizenship at boston college The central corporate citizenship function is charged to help build and sustain corporate reputation; improve overall executive and management understanding of the external environment; improve morale and motivation of employees; and create better communities in which to do business. A new “Corporate Citizenship 2001 Guide” has been published recently to coin- cide with the launch of Diageo’s redesigned web site, and a community involvement Intranet site is currently being piloted in London.

Johnson & Johnson’s approach to community involvement is based on its “Credo” written in 1943. This sets out responsibilities to four stakeholder groups, including “the communities in which we live and work, and to the world community as well.” The Credo embodies J&J’s fundamental values, and all employees are surveyed every two years to establish their views on how well the company is living up to them.

The management structure of the CI function is designed to match the highly decentralized nature of the company as a whole. At its heart, providing overall strategic direction and oversight, is the Corporate Contributions Committee in the US. European strategy and implementation is the responsibility of a Corporate Social Responsibility Europe Committee, orig- inally established in 1993, which includes the Chairs of nine regional subcommittees covering individual European countries or regions (such as Central and Eastern Europe). There is a global team of eight people responsible for corporate contributions and community relations. Six are based in the US, one in Europe and one in Asia Pacific; the team as a whole has global coverage and responsibility.

J&J’s community involvement is focused primarily on healthcare, its own field of business activity. The Europe Committee has identified five focus areas for its efforts, covering a diverse range of activities within individual countries: • Community care • Children’s health • Mental health • Health management education (to improve management of the process of change in the healthcare sector) • Innovation (projects relating to future healthcare developments or linked to developing concepts of social responsibility and social cohesion)

In addition, the company makes substantial donations of its own products (coordinated from the US), including items for disaster relief, and encourages employee involvement.

the center for corporate citizenship at boston college 15 Integrative Global Strategy

IBM drives international strategy from corporate

FEATURES headquarters, yet its approach requires the input of

• Consistent, coordinated approach worldwide local site managers, and allows managers the flexibility to adapt strategic programs to local contexts. • Clear, uniform focus of approach and activities around the world The result is a very focused strategy designed to

• Strategy, objectives and focus determined centrally solve important social problems and advance busi-

• Integrated management approach and CCI staff ness objectives. CCI strategy is consistent in all 165 team across national boundaries countries in which IBM employees and customers • Scope for some local modification and implementa- live and work. tion within the centrally defined approach

• Strong capability for central measurement and Staff located at IBM corporate headquarters in New reporting of international CCI activity and achieve- York, led by Stanley S. Litow, Vice President of ments Corporate Community Relations and President of PROS CONS the IBM Foundation, drive the strategy formation. • Effective at responding • Time-consuming; to global and local con- management is The process is highly inclusive. Team members from cerns to produce a intensive and around the globe provide their recommendations “global” approach requires a high level • Works to identify of resources through individual and group consultations. In addi- common themes • Hard to build a and responses “one size fits all” tion, IBM has based its strategy on extensive • Effective for leveraging approach research and identification of critical community extra resources • May become too • Maximizes added value driven by head- needs, including surveys of key stakeholders such as • Effective for concen- quarters shareholders, employees and customers. trating on core focus • Limits scope for areas and creating local initiatives measurable impact • Can be blunt in its IBM’s stated mission is to contribute its “full range • Mixes central control sensitivity and with local empower- adaptability to local of resources and expertise to address systemic prob- ment issues and cultures lems in areas throughout the world. In all our corporate citizenship efforts, IBM strives to:

16 the center for corporate citizenship at boston college • Underscore the role of technology as a tool to address societal issues; • Demonstrate IBM’s reputation as a solutions provider; and • Focus IBM’s philanthropic programs to enhance relationships with customers and employees.”

To accomplish these objectives, IBM has selected priority issues and key initiatives for investment. They are: education; arts, culture and science; the digital divide; and other locally defined issues.

The corporate community relations function also engages key internal stakeholders from core operating functions. For example, it works closely with research and development to create projects that meet community needs while testing new products and/or adapting existing products to a different customer environment or situation. This enables it to link programs to key business goals, and to identify core corporate resources and competencies that can be effectively mobilized to address social problems and needs. This has led to the formation of programs that apply IBM’s expertise in providing IT solutions, research, and products.

the center for corporate citizenship at boston college 17 continued from page 11 outcomes and impacts, and process strengths and principles stay consistent and strategic, while allowing weaknesses. actual programs to be diverse. To summarize this section, we list below a number of good practices in relation to international community Integrative global strategy involvement strategy which have broad applicability Companies using this approach, like IBM and across different companies, whatever their overall SmithKline Beecham, operate a genuinely global approach. process that balances a clear, focused central strategy with the needs and views of key stakeholders and business units from around the world. These companies DESIGNING GLOBAL CCI STRATEGY: align their global CCI staff, and define consistent GOOD PRACTICES expectations, performance goals and accountabilities.

• Take a “glocal” (global + local) approach. Programs are centrally coordinated, but headquarters affords sites the flexibility to adapt these initiatives to • Gather necessary data to allow “fact-based management,” for example, on international suit local context, culture, and concerns. In so doing, stakeholder attitudes and international commu- they also seek to create strong, international cross-func- nity needs. tional relationships with other key departments and • Identify common themes and common oppor- business units. The “global strategy” approach enables tunities to design solutions. CCI managers to define a coordinated process that • Adopt focus areas that are broad enough to respond to varied local considerations. establishes “win-win” strategic goals and is highly inte- • Set ambitious, corporate-wide “stretch” goals grated into the mission of the business. In addition, the and objectives for CCI, and enable local opera- approach helps drive what has been termed a “glocal” tions to meet them in a manner appropriate (global + local) perspective throughout CCI operations. to local needs. • Apply core competencies and resources as a key The “global strategy” approach calls for a global CCI element of CCI programming. “team.” Headquarters controls the strategic agenda. • Assign senior executives a role in reviewing CCI strategy, rather than approving specific grants. However, it builds strategy through a holistic process that combines top-down and bottom-up approaches. • Engage colleagues in key departments and business lines in planning and objective-setting. Staff in this model are more likely to connect with one • Involve CCI staff around the world in developing another, share critical information, and communicate plans on a participatory basis. efficiently. In addition, the approach makes it easier to • Deploy central CCI staff (at headquarters) in a track the resources invested in community programs. “facilitation” role, helping locations to design This in turn helps staff worldwide to design and imple- their own strategy. ment measurement systems to determine program

18 the center for corporate citizenship at boston college

III. Management: International by Design

One of the most difficult aspects of international CCI is Agilent designs its strategy to be inclusive of countries managing the function across diverse operating sites, and cultures outside the US. In selecting any project, it regions, and countries. Designing and executing strate- asks: “Can this project be implemented globally?” New gic, “win-win” programs is challenging enough in the programs are piloted both overseas and in the US. home country, let alone in overseas operations with At SmithKline Beecham, strategy, decision making, limited resources and less well-established CCI tradi- management and delivery were overseen by cross-sector, tions. To be successful, companies need management cross-functional regional community partnership man- systems and structures that provide direction and sup- agement teams (CPMTs), thus ensuring a truly interna- port for CCI across the business. And CCI leaders tional perspective. Central staff worked to design initia- within companies need to find the right balance tives which would meet the CCI mission and “translate” between central accountability and local autonomy. successfully across countries. Approaches to managing community involvement vary widely between companies. But there are a number of features common to many good-practice companies. CCI leaders need to find the right These include: balance between central account- • CCI programs and operations are “international by design” ability and local autonomy. • Central operations engage in facilitation and advocacy, with delivery managed locally • Senior executives provide visible and engaged CENTRAL FACILITATION AND ADVOCACY, leadership LOCAL DELIVERY • CCI is integrated with “mainline” business Good-practice companies manage CCI through central management facilitation and advocacy, with local delivery. The central • CCI employs quality management systems (headquarters) community involvement function can- • CCI manages resource effectively not be responsible for delivery of programs all over the world. Its role will increasingly become one of facilita- INTERNATIONAL BY DESIGN tion, encouragement and support, with local operating Good-practice companies create programs and opera- units having delivery responsibility. tions that are specifically designed to match the inter- A process of central advocacy and local delivery can be national profile and operations of the company. independent of whether CCI is managed in a central- They reflect its values, culture and goals, and are adapt- ized or decentralized manner. Companies may success- ed to meet the different circumstances of its operating fully utilize either approach. However, it is increasingly locations.

the center for corporate citizenship at boston college 19 important to redefine the roles of central CCI staff, so SENIOR EXECUTIVE LEADERSHIP that they are not expected to launch and execute pro- For international CCI to work well, the commitment grams in regions where they lack presence, familiarity, of executive leadership is needed, both centrally and and local relationships. locally, together with good processes for planning, resourcing, managing and measuring international BP’s international community involvement is driven by community involvement. Therefore, in good practice a Global Social Investment (GSI) department which companies, senior executives provide visible leadership operates as a “virtual business unit,” on the basis of ser- and support for international CCI and are engaged in vice agreements with the company and with other oper- strategic oversight of the function. ating units. The company is establishing high-level, GSI-related performance accountabilities for every busi- Visible senior management leadership ness unit, and for managers within these units. Every CEO leadership is an important ingredient of success business line, in every region of the world, is expected to for international CCI. Some CEOs have become very achieve GSI-related performance goals. As an example, visible internal and external champions of CCI and of each business unit is expected to conduct a Social specific issues that are important to the company. Impact Assessment. The role of staff at corporate headquarters is to respond to the needs of local operations BP’s Chief Executive, Lord (John) Browne of Madingley, and provide support and assistance in conducting Social has actively sought to position the company as a respon- Impact Assessments as required. sible corporate citizen, and has become an international statesman on the issue of corporate citizenship. Diageo’s CCI structure is headed by a sub-committee of the Board, the Corporate Citizenship Committee At Ford Motor Company, Chairman of the Board and (CCC), chaired by the Chief Executive. Underneath CEO William Clay Ford, Jr. has committed publicly to this sits the Diageo Foundation Board, including the the goal of making Ford the world’s leading corporate director of corporate citizenship, plus director-level mem- citizen in the automotive industry. This leadership bers from each of the Group businesses. The company’s extends to the company’s goal to champion corporate cit- signature programs, such as Skills for Life and Water of izenship and position itself to influence other businesses. Life, are defined centrally, providing the flexibility for countries and business units to design initiatives that IBM’s Chairman and CEO, Louis V. Gerstner, Jr., pro- are appropriately customized to local needs and con- vides powerful, visible leadership on all aspects of IBM cerns. Business units and sites are invited to submit fully Corporate Community Relations, with an emphasis on planned proposals to headquarters in order to bid for reform of public education—his personal passion for budgets for projects. The proposals must state objectives, over 25 years. Mr. Gerstner writes opinion pieces in timescales, a communications strategy and how success major newspapers on corporate citizenship, makes policy will be measured. speeches, and organized two National Education

20 the center for corporate citizenship at boston college

TABLE 3.1 Summits, with a third being STAFF FUNCTIONS WITH INTERNATIONAL CCI RESPONSIBILITY planned, to develop a national con- sensus for standards-based educa- Function Number Percent tion reform. Dedicated Community Relations 13 93% The Chairman of Rio Tinto, Sir Corporate Foundation 11 78% Robert Wilson, is a strong propo- Line Management 11 78% nent of social responsibility and a Human Resources (or Personnel) 9 64% major sponsor of the Mining, Corporate Communications 8 57% Minerals and Sustainable Corporate Affairs 7 50% Development initiative, aimed at Legal or Company Secretary 6 43% reviewing the role of mining in a sustainable development context. Marketing 6 43%

Involvement in strategic oversight Several of the benchmark companies possess formal to the Chairman. Oversight at group level is provided by structures to provide strategic oversight for CCI, the Levi Strauss Foundation Board, the members of including board-level structures. which also act as the Levi Strauss & Co. Chairman’s Advisory Committee on Corporate Contribution, and by BT’s Chairman chairs the Community Support an Ethics and Social Responsibility Committee. Committee (CSC), which is responsible for champi- oning CCI programs across the company. Rio Tinto has established a Committee on Social and Environmental Accountability (CSEA), composed IBM’s Board, through its Directors and Corporate mainly of non-executive directors, but also including the Governance Committee, reviews the annual contribu- Chairman. tions budget, strategy, and key initiatives.

At Johnson & Johnson, the CEO and his top manage- INTEGRATION WITH MAINLINE BUSINESS ment team are charged with upholding the company’s MANAGEMENT well-known “Credo.” The Corporate Contributions Good-practice companies don’t manage their CCI func- Committee in the US provides overall strategic direction tion in isolation. To ensure that business lines and and oversight of the CCI program. units understand the interdependence between community vitality and business success, CCI forms inter- At Levi’s, the head of community affairs reports directly nal partnerships with business units and line func-

the center for corporate citizenship at boston college 21 tions. Cross-functional alignment typically takes two creating internal working relationships that allow for forms. First, a variety of functions share the responsi- more effective knowledge transfer. In addition, the prob- bility for “owning” and managing international CCI lem-solving required for community projects leads to operations. Second, the CCI function forms strategic new product and technology innovations. and operational partnerships with business units and lines designed to achieve “win-win” goals. QUALITY MANAGEMENT PROCESSES Leading companies in the benchmark adapt and apply As Table 3.1 shows, a variety of departments own some quality management systems and processes used by level of responsibility for managing CCI. Thirteen of colleagues in mainline business units. These include: the 14 companies possess a dedicated community designing and setting goals and measurable objectives; involvement function that is the principal driver of employing fact-based management techniques; estab- international CCI activities. However, a number of lishing accountability and feedback systems; and departments are involved in managing international reviewing the effectiveness and efficiency of processes. CCI on a day-to-day basis. Eleven companies have cor- Some leading practices are detailed in the box on porate foundations, primarily responsible for grant- page 23. making. Line management also performs an important role in eleven companies, often dedicating at least a percentage of staff time towards executing local CCI EFFECTIVE RESOURCE MANAGEMENT responsibilities such as relationship building and Companies are becoming increasingly rigorous in grant-making. Several companies have staff involved in recording and tracking the resources they allocate to managing CCI in departments such as human community involvement, domestically and internation- resources (9), corporate communications (8), corporate ally. A substantial and growing number of UK-based, affairs (7), legal and marketing (6 each). and some European, companies (including BP, BT, Diageo, GlaxoSmithKline, Levi Strauss Europe and Rio Every major IBM project employs a cross-functional Tinto) are members of the London Benchmarking team of corporate community relations staff, R&D scien- Group, which has developed a standard template for tists, information technology consultants, product man- identifying and valuing corporate community contribu- agers, and other relevant staff. For example, researchers tions, and is also working on methods to assess the from the United States, Israel and Italy worked together outputs and impacts of CCI activity. to develop new imaging technology for the web site developed for the State Hermitage Museum in St Petersburg, Elements of good-practice resource tracking systems Russia (www.hermitagemuseum.org). Community include: stakeholders benefit from the provision of the “treasure • Clear definition of what should and should not be of the company’s talent.” IBM business units benefit by classified as community involvement.

22 the center for corporate citizenship at boston college NOTABLE QUALITY MANAGEMENT PRACTICES

• Conduct local community assessments (BP, BT, Capital One, Rio Tinto)

• Assign clear CCI performance goals for business units and CCI staff (BP)

• Establish a consistent process of management across business units: e.g., setting strategy, goals, objectives, action plans, timelines, and reporting structures (Capital One)

• Establish clear criteria that all community projects must meet; ask sites to submit proposals with their community partners requesting support from headquarters for local projects (Diageo)

• Provide standardized process and activity templates that country and site managers can use to guide and implement projects (Agilent, Diageo, Levi’s, SmithKline Beecham)

• Require major CCI operating sites to produce rolling five-year action plans and annual social and environmental reports (Rio Tinto)

• Use the Intranet for reporting of community involvement and sharing of experience across the group (AstraZeneca - planned)

• Establish a system requiring all major grantees (over a certain level) to report on results (Levi’s, SmithKline Beecham)

• Establish a system of regular staff visits to assess the performance of major grantees (Levi’s, SmithKline Beecham)

• Pilot, evaluate, and continuously improve major signature program initiatives (IBM)

• Coverage of all forms of contributions: cash, in-kind from all relevant operating units and locations. and time. • Publication of a summary (or report) of the result- • Simple guidelines for valuing contributions when- ing information in a form meaningful to relevant ever practicable. audiences. • Workable processes for gathering the required information on a regular basis (at least annually)

the center for corporate citizenship at boston college 23 IV. Activities: Leveraging Value

What CCI activities work best in international sites? and partners. Six of the benchmark companies run Do programs developed in the US and UK, such as cause-related marketing programs overseas. grant-making, partnerships and employee engage- Good practice in relation to activities carried out as part ment, translate to other countries? The answer from of an international community involvement program is the benchmark companies is resoundingly affirmative. all about generating “added value”in three areas: As Table 4.1 shows, 13 companies manage community • Programs: well-targeted, high-quality, appropriate, partnerships, and 12 manage cash donations and vol- replicable, cost-effective, business-related, etc. unteer programs in international locales. Over 70 per- • Partners: cooperation with local, national and cent also run sponsorships, provide professional skills international organizations which enhance and expertise, make in-kind product donations, and effectiveness through bringing complementary loan their management expertise to social agencies skills and attributes. • People: engaging and, wherever possible, mobilizing the company’s own employees to offer TABLE 4.1 their time, skills and enthusiasm. ACTIVITIES PROGRAMS Number of companies running activity in Approaches used by companies to Activity international operations Percent develop program models that work

Community partnerships 13 93% effectively in different cultural contexts include: Cash donations 12 86% • The rigorous design, testing and Employee volunteering 12 86% continuous improvement of programs (Capital One, IBM). For Sponsorships 11 79% example, in each of its Reinventing Provision of professional skills 11 79% Education grant sites, IBM has piloted a project and made improve- In-kind donations 10 71% ments to it, before scaling it up to

Provision of management expertise 10 71% whole school districts or states and countries. The pilot test also allows Provision of facilities 7 50% corporate managers to identify how the program model needs to be Cause-related marketing 6 43% modified to succeed in other sites.

24 the center for corporate citizenship at boston college • Close collaborative planning and partnership between Do programs developed in central CCI staff and local unit management the US and UK translate to other (Johnson & Johnson, SmithKline Beecham). SB’s Community Partnership staff worked with local site countries? The answer from managers to design and build community programs the benchmark companies is that adapted the company’s policy principles and priorities to meet the needs of different countries resoundingly affirmative. and cultures. • Providing sites with proven, standardized templates or “toolkits” to support program roll-out (Agilent, BT, Descriptions of programs illustrating different aspects Diageo, SmithKline Beecham, Whirlpool). Several of good practice can be found in some of the case stud- companies provide program activity templates to ies in this report, including: serve as “recipes” that managers can follow step-by- • An in-kind donation valued at over $1 million to step. This is especially useful in helping managers address health needs across the world, involving contri- unfamiliar with the tradition of employee engage- butions of skills and technology from several other corpo- ment to plan volunteer programs. rate partners, and coinciding with a company-wide • Use of corporate foundations to provide resources and employee involvement initiative. expertise for local operating units (BP, Diageo, Ford, (Agilent Flying Hospital - see page 36) Rio Tinto). The Diageo Foundation provides both • A program enabling schools around the world to use funding and guidance for projects in operating units, new technologies to work together and exchange infor- assessed against standard selection criteria relating to mation and ideas. (BT Global Schools Network - see community, business and employee needs. page 37) • Allowing sites autonomy to implement their own pro- • A program covering a wide range of individual projects, gram activities within broad strategic guidelines (BP, in both developed and developing countries, linked by a Diageo, Ford, Levi’s, Rio Tinto, Whirlpool). Rio Tinto theme relevant to the company’s core business and sup- operating companies have a high degree of autonomy ported by a “toolkit” to facilitate replication. (Diageo to respond to the needs of their own local communi- Water of Life - see page 14) ties, provided that they follow the principles of the • A program designed to support systemic change in edu- Group’s communities policy and produce a rolling cation, with measurable benefits to students, teachers five-year community plan and an annual social and and schools as well as to the company itself, and based environmental report. The latter is primarily for on the company’s own core skills and technology. (IBM reporting locally, but also for Headquarters and other Reinventing Education - see page 28) interested parties. • A commitment to eliminate, across the world, a crip-

the center for corporate citizenship at boston college 25 pling disease affecting 120 million people TABLE 4.2 in over 80 developing countries, in part- INTERNATIONAL CCI PARTNERSHIPS nership with the World Health Organization and a range of other international, national and local partners, Number with Partnership type partnerships Percent including donations of the company’s own Partnerships for mutual product valued at many millions of dol- benefit with nonprofits 13 93% lars. (GlaxoSmithKline Lymphatic Filariasis- see page 29) Partnerships with government 11 79% • A program aiming to contribute to the improvement of health management stan- School/business partnerships 10 71% dards across the whole of Europe, in part- Partnerships with other businesses nership with a leading business school. in community ventures 9 64% (Johnson & Johnson European Health Leadership - see page 53) Cause-related marketing 6 43% • A program targeted at increasing the awareness of 14 to 18 year-olds in several European countries of the risks of drug abuse—an issue which does not generally attract a high This approach is at the leading edge of CCI practice. level of corporate support. (Levi Strauss Drugworld - see page 35) In the international arena, partnerships can help man- • Facilitation of a comprehensive program to regenerate a age cross-cultural issues and local political contexts. specific local area where the company has a major pres- They are especially valuable in less developed countries ence, including setting up a new coalition body to drive where partnerships help to find creative ways to deliver the effort. (Whirlpool Cornerstone Alliance - see page 13) resources and provide support. Finally, partnerships are useful vehicles for leveraging limited resources. Con- centrated and effective partnerships can make up for PARTNERS limited corporate staffing or budgets. Good-practice companies in the benchmark are building their international CCI activities around multi- Overall, attention to the promise and opportunity of stakeholder partnerships. In true partnerships corpora- international CCI partnerships is growing significantly. tions join together with community-based organiza- Table 4.2 shows the types of international CCI partner- tions and engage in long-term relationship building, joint planning and goal setting, joint implementation, continued on page 30 mutual accountability, and mutual “win-win” outcomes.

26 the center for corporate citizenship at boston college GOOD PARTNERSHIP PRACTICES

Link core line functions with community partners. Diageo, IBM, and Whirlpool form partnerships between core business lines and NGOs. CCI staff work as facilitators and “boundary spanners” so that the different organizational cultures work effectively together. Whirlpool and Diageo have matched their HR functions with community partners in South Africa to promote workforce development of low-income populations. This has led to new job creation, and a stable and productive workforce for the companies. IBM project managers forge relationships between IBM researchers, consultants and educators.

Create a formal "business" relationship. IBM views its community partners as it would any other business joint- venture partner. Before launching a project, IBM and its grant partner sign a formal letter of agreement. This leads to a professional relationship and focuses both partners on supporting “win-win” goals.

Encourage collaboration between NGOs. Capital One encourages disconnected NGOs operating in the same issue area to collaborate.

Establish a separate NGO. Whirlpool has established NGOs focused on community development that work to bring key organizations and leaders together for a common purpose.

Use participatory development models. BP and Rio Tinto employ sustainable development models. A core feature of this is participatory planning, in which community stakeholders join with the company and government representatives to craft joint development agendas. These companies are viewed as partners rather than merely resource providers. The model enhances the sense of ownership and empowerment that each partner feels. In addition, the process helps build the capacity of community partners to plan, execute and sustain development projects.

Engage in joint project design. Diageo and its partners work to craft joint projects and funding proposals. Corporate staff on the ground create proposals in response to clear criteria.

Outsource roles to the partnership. To increase the effectiveness of its own limited staff resources, SmithKline Beecham used partnerships to expand its delivery capacity by outsourcing elements of CCI activity.

Use partners to extend coverage to new geographic areas. AstraZeneca’s support to the British Red Cross is focused on developing countries.

the center for corporate citizenship at boston college 27 IBM AND REINVENTING EDUCATION

Forming partnerships with a wide variety of nonprofit and public partners in the US and abroad is key to IBM’s CCI strategy. IBM’s sophisticated approach to partnerships requires NGOs and public partners to commit significant dollar and people resources and to set clear benchmarks that focus on measurable results. There is considerable dialogue with potential partners prior to the establishment of any partnership. This approach strongly increases the likelihood that new practices and innovations are institutionalized and maintained after grant funds are expended and the formal project is completed. Reinventing Education (RE) is the embodiment of IBM’s strategy to use its core expertise as technology experts and solutions providers to solve problems in the nonprofit and public sectors.

The Reinventing Education grant program forms the centerpiece of IBM’s global commitment to systemic education reform. Currently there are RE projects in Australia, Brazil, Ireland, Italy, Mexico, Singapore, the United Kingdom and Vietnam, and in 21 US cities and states. Over 45,000 teachers and over five million children are involved. Since 1994, IBM has invested more than $70 million in RE, in research, technology, technical assistance and cash. Through the program, IBM has been working with each of its school partners to develop and implement innovative technology solutions designed to solve some of education’s toughest problems. IBM treats each Reinventing Education grant site just as it would its very best business customer; all grant sites receive the services of a project manager, educational consultants, researchers and technology. Working collaboratively with educators, they create customized solutions designed to support reforms necessary to raise student achievement.

For example, RE partnerships in Brazil, Italy, UK and Vietnam are using technology to address the critical challenge of teacher professional development. Other grants are focused on parent involvement, standards-based instruction and assessment, and reading. Before launching the project, IBM signs a formal agreement with its not-for-profit partners, and requires that partners commit significant resources to ensure the institutionaliza- tion of new practices. There is a concerted effort to transfer positive results achieved in one school system to others. IBM has also created a secure web site to diffuse innovation and share best practices globally among its partners.

28 the center for corporate citizenship at boston college GLAXOSMITHKLINE (GSK) AND HEALTHCARE PARTNERSHIPS

GSK’s partnerships with governments and high-caliber NGOs underpin the viability of its projects and the sense that it is a serious player in international community involvement. The company seeks to increase the capabilities of its partner organizations through its projects with them. Agreements are in place with partners covering roles and responsibilities, timetables, and measurement of outcomes against targets.

GSK commits to multi-year partnerships. It provides skills and resources to increase the capabilities of local organizations and create self-sustaining solutions. The lymphatic filariasis (LF) elimination program is an ambitious, challenging, high-profile project with potentially enormous benefits to countries where the disease is prevalent. It is based on partnerships with many public, private and nonprofit organizations, and calls for a substantial input of GSK management and communication skills.

Lymphatic filariasis (LF), also known as elephantiasis, is a painful and disfiguring tropical disease which affects 120 million people in at least 82 countries, mainly in Africa, Asia and the Americas. In 1998 SmithKline Beecham (one of GSK’s predecessor companies) began an ambitious partnership with the World Health Organization to eliminate LF as a public health problem, using a combination of drugs from GSK and other suppliers which have been shown to be effective. GSK will donate as much of its drug albendazole as is required—possibly four to five billion tablets over 20 or more years—and is providing other support in the form of grants and help with management and communications. Other partners include the World Bank, the UK Department for International Development, academic centers of expertise, development NGOs, Merck & Co., and Ministries of Health in affected countries.

the center for corporate citizenship at boston college 29

continued from page 26 • The company may benefit from increased motivation and loyalty among employees who are aware of, ships that the benchmark companies are managing. enthusiastic about, or directly involved in its com- Additionally, a significant—and growing—number of munity activities, and who will act as “ambassadors” companies are engaging in partnerships with interna- in spreading awareness of its efforts. tional governmental organizations (IGOs) and aid • Employees themselves may gain from broadening agencies. their experience and skills, as well as from the satisfaction of being involved in causes important to their communities.

TABLE 4.3 One of the biggest questions con- EMPLOYEE VOLUNTEERING cerning international CCI is whether companies can successfully adapt Responses Number Percent employee volunteering programs Widely spread across the whole across cultures and regions that may company and its units/sites 8 57% have limited tradition or experience In some, but not all, countries with volunteering. Good-practice and operating units 3 21% companies in the benchmark are Mainly in headquarters country 2 14% establishing volunteer programs in

Mainly at headquarters 1 7% all of their locations. Nine of the companies in the benchmark have developed a formal, corporate-wide employee volunteering policy or EMPLOYEE ENGAGEMENT AND MOBILIZATION program. The remaining five allow international It is now widely recognized that engagement of a com- business units to set their own approach to employee pany’s own employees can greatly enhance the effec- volunteering. tiveness of its community involvement. One of the Table 4.3 shows that volunteering programs occur main reasons is that it can represent a “win-win-win” widely throughout the benchmark companies. opportunity, bringing benefits to the community, the company and its employees: • The time and skills of its own employees can be one of the most valuable community contributions a company can make, sometimes worth significantly more than financial assistance.

30 the center for corporate citizenship at boston college EMPLOYEE VOLUNTEERING PROGRAMS

Agilent’s company-wide policy permits employees four hours of paid time off for company-sponsored community projects. Volunteer recognition and awards programs are worldwide. Agilent Action Awards recognize one outstanding employee per business area (North America, Europe, Latin America, and Asia Pacific); the winners are recognized through a donation to the organization they choose and are allowed to take up to three months of paid time off to volunteer full-time for their favorite program. Volunteer Manager of the Year Awards recognize the critical importance of management support in building a corporate culture that promotes volunteerism.

At Diageo, employee volunteering is used as an essential part of all community programs to enhance reputation and develop staff skills such as teamwork and communication. It is estimated that over one million volunteer hours were contributed during both 1998/99 and 1999/2000 by Diageo’s 72,000 staff. The different forms of employee involvement span a range of programs, from fundraising and provision of professional skills, to secondments (i.e. loaned executives) and paid volunteering.

Ford demonstrates its commitment to employee involvement with a corporate-wide volunteer policy that permits 16 hours of paid community service time per year for salaried employees. Volunteer programs offered in the US are also supported overseas, including board service, education partnerships, skill development, and loaned executives.

Much of Levi’s international community involvement activity is coordinated through local Community Involvement Teams (CITs) at individual company sites. In Europe there are about 25 CITs, typically involving between five and ten employees. They provide a focus for employee-led fundraising and grant-giving, and receive substantial company funding (over $0.5 million in Europe in 1999). Employee-raised funds are matched on a 4:1 basis, and some time off may be given for participation in CIT activities.

the center for corporate citizenship at boston college 31 GOOD EMPLOYEE VOLUNTEERING PRACTICES

• Provide community partners with the talent and expertise of company employees as well as their energy and enthusiasm (Agilent, Diageo, IBM)

• Extend time off for volunteering (paid volunteer leave) internationally (Agilent, Diageo, Ford)

• Extend coverage of volunteer recognition/awards programs worldwide (Agilent)

• Recognize the critical importance of management support in building a corporate culture that promotes volunteerism through Volunteer Manager of the Year Awards (Agilent)

• Create toolkits for support of employee volunteering (Agilent, Diageo)

• Make volunteering a key part of partnerships (Agilent, Diageo)

• Organize a global volunteering day or week to mobilize interest and enthusiasm among employees (Agilent, SB)

• Use volunteering as a tool for professional development (Capital One, Diageo, IBM, Rio Tinto)

32 the center for corporate citizenship at boston college

V. Communications: Seeing is Believing

“Out of sight, out of mind” applies strongly to interna- out and engaging other key audiences. Notably, only tional community involvement—its effectiveness four of 14 companies report success in building aware- depends on its visibility. Managing successful commu- ness with their own employees, and only one company nications activity depends on: claims to be successful in communicating its interna- • Targeting the right audiences (locally, nationally and tional community involvement efforts to customers. internationally) • Using appropriate media and channels, especially USING APPROPRIATE MEDIA AND CHANNELS, new media (Internet/Intranet) ESPECIALLY NEW MEDIA • Engaging partners and allies Companies in the benchmark successfully employ a • Managing communications effectively variety of communication techniques in international locales. Table 5.2 shows that the companies most often TARGETING THE RIGHT AUDIENCES use press releases and events (all 14), followed by exter- Companies in the benchmark agree that it is important nal publications, internal publications, publicity to build recognition and awareness for their work in through community partners, and Internet/Intranet international community involvement. Table 5.1 shows web sites (13 of 14). Notably, nine of the companies that almost all find it important to build awareness engage in advertising that features CCI activities. internally, with employees. This is closely followed by promoting CCI efforts TABLE 5.1 among local communities, TARGET AUDIENCES host governments, NGOs, Importance Success and the media. Investors, Audience Number Percent Number Percent customers and the general Employees 13 93% 4 29% public are not far behind. Local communities 12 86% 8 57%

Companies report mixed Government 12 86% 5 36% results in terms of their suc- Non-government organizations 12 86% 9 64% cess in communicating with and building the awareness Media 12 86% 5 36% of these audiences. The Investors/shareholders * 10 83% 4 33% greatest success has been Customers 11 79% 1 7%s with NGOs, followed by local communities. However, few General Public 9 64% 3 21% have succeeded in reaching * n = 12

the center for corporate citizenship at boston college 33 zations located near company facilities can request TABLE 5.2 employee volunteers by submitting a one-page volunteer COMMUNICATION TECHNIQUES “job description.” Agilent’s web-based volunteer network is used to recruit, track, measure and recognize employ- Number Percent ee volunteerism. The Intranet site highlights volunteer Press releases 14 100% events and features photos of employee volunteers from Events 14 100% all over the world. The Intranet also provides information for CCI staff on training opportunities, including Publicity via partner organizations 13 93% links to organizations that provide professional development activities. Internet web site 13 93%

Other external BP uses the Internet as a major tool for communicating publications 13 93% with external stakeholders. BP has long been a world

Intranet site 13 93% leader in candid reporting on all aspects of company activity. Traditionally undertaken on an annual basis, Annual Report 12 86% reporting has become a continuous process by way of Meetings with media “live” reporting on the company web site. The site, representatives 12 86% which is widely promoted both internally and externally, Advertising 9 64% seeks to keep users “in touch with our financial, social and environmental performance,” and offers an in-depth examination of company activities at specific locations around the world. The BP web site has featured a novel Almost all of the companies in the study have created interactive facility whereby Chief Executive Lord Browne Internet and Intranet web sites to communicate with of Madingley “answered a question on policy or perfor- external and internal audiences. In addition, some of mance every day for a hundred days.” Visitors to the site them use specialized web sites to communicate among could ask any question of their choice, which might be sites for multi-location projects. selected for publication as a subsequent day’s question. As a technology company, Agilent has developed user- Engaging partners and allies friendly Internet and Intranet sites to promote CCI and Companies in the benchmark confirm that success of give widespread recognition to employee volunteers international CCI communications—as well as of CCI involved in community projects. The CCI Internet site programs themselves—rests on the ability of compa- includes guidelines for grantees and volunteer projects and encourages community organizations to apply continued on page 38 online for both grants and volunteers. nonprofit organi-

34 the center for corporate citizenship at boston college Targeting Audiences— Examples

EMPLOYEES At Levi’s, internal communications include the company Intranet (“Eureka!”) and noticeboards, newslet- ters and personal contacts managed by Community Involvement Teams at the local level.

LOCAL COMMUNITIES Rio Tinto promotes an “open door” visiting policy at all its sites to build trust and relationships with resi- dents who live near its mines.

GOVERNMENT AND MEDIA Diageo uses community involvement to reinforce links with government in Westminster, Washington and Scotland, and also with government figures in many developing countries. Case studies have highlighted government and media attendance at program launches. Diageo is highly regarded in this field amongst press circles in the UK.

Capital One and IBM launch new programs with major press events that feature speakers from the grant sites, demonstrations of technology, and information packages. IBM Chairman and CEO Louis V. Gerstner, Jr. spoke at many of the Reinventing Education grant announcements at sites in the US and internationally.

INVESTORS/SHAREHOLDERS Diageo set up a booth featuring “Tomorrow’s People,” a program designed to reduce unemployment, at the company’s Annual General Meeting. The booth demonstrated to shareholders how Diageo is “doing good business.”

CUSTOMERS Prospective IBM customers are encouraged to visit community involvement project sites to see how the company is implementing new technologies and to learn about corporate capabilities. In addition, IBM grantees visit other grant projects to share strategies and best practices.

Levi Strauss has developed videotapes and other communication vehicles for reaching young people, who are a very important part of its customer base. Drugworld is a short, youth-oriented, animated drug prevention video targeted specifically at 14 to 18 year-olds. In partnership with local organizations, Levi’s

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has subsequently made Hungarian and Spanish versions of the video. Levi’s support amounted to $130,000 in the three countries, plus the contributions of marketing and communications expertise and involvement of local management.

In the UK, the video was shown in London and regional cinemas and showcased at Levi’s stores; the target of at least 10,000 young people seeing it was easily exceeded. Supporting activity included launch events, printed materials and web sites, including links to the Levi’s commercial site. Drugworld has helped Levi management to network with government leaders, especially in the UK, Spain and Hungary.

To improve health care in underdeveloped parts of the world, Agilent formed a partnership with the Flying Hospital, a nonprofit organization providing surgical and medical care to indigent persons in remote communities in developing countries, as well as training to the community’s medical teams. At the kick-off event to celebrate its divestiture from HP, Agilent donated $1 million of state-of-the-art surgical and medical equipment plus modern aircraft navigation and global positioning systems, computers and communications systems. An additional cash donation will help underwrite a medical mission to the Gambia, a small African country.

Since Agilent makes components and not end products, it collaborated with IBM, Litton, Motorola, Goodyear and BF Goodrich to provide product donations. Employee volunteers from different lines of business worked with customers to install the equipment in the Flying Hospital. Employee skills and ingenuity were stretched when they had to figure out how to install the equipment on an airplane; they also trained Flying Hospital employees on how to use the equipment. The new equipment enabled the Flying Hospital to decrease its maintenance costs while increasing by 25 percent the number of patients treated during a mission.

Customers were invited to the kick-off event; media coverage highlighted the work of customers as well as Agilent. The major business outcomes included greater name recognition, improved relationships with customers, and increased employee morale and pride during the difficult transition to a new company. A large company logo painted on the airplane provides ongoing visibility. The events of Agilent’s global Action Week—including global volunteering and support for the Flying Hospital—generated enormous media coverage. Six million people heard about Agilent Technologies through print, radio and TV stories; the print coverage in the US was valued at greater

36 the center for corporate citizenship at boston college than $2 million. Agilent general managers in many different countries were interviewed by the press and met senior-level government officials. The partnership was featured in the New York Stock Exchange magazine; the stock rose five points on the day after the Flying Hospital kick-off event.

SCHOOLS BT’s Global Schools Network (BTGSN), launched in March 2001, aims to enable schools around the world to use “new technologies,” including Internet and e-mail, to work together, exchanging information and ideas about topics of common interest.

Over recent months, twelve schools in six countries (Belgium, Germany, India, Japan, Singapore and Spain) have been involved, working together on a joint curriculum project on “Life as a Young Person Today.” Each country is responsible for one aspect of the topic, requesting information from other schools and then editing what they receive. It is intended that the final project work will be available on the Internet as an online resource for any school around the world.

As well as improving the IT and communications skills of students (aged 14-15) and teachers, it is expected that all involved will learn much more about the life and culture of each others’ countries. Two UK schools, in East London and Scotland, are due to join BTGSN in November for the start of the second curriculum project.

the center for corporate citizenship at boston college 37 continued from page 34 community advisory panels to provide regular input directly from outside community representatives. nies to build trusting relationships with important local stakeholders who possess credibility and influ- Stakeholder dialogues and forums with NGOs ence in relation to local corporate reputation. Companies in the benchmark group structure dia- Companies, as shown in Table 5.3, use a variety of tac- logues around specific social and technological issues tics to build relationships, but all rely on creating a and around issues relevant to their company and dynamic of “ two-way” communication where compa- industry. nies actively listen, respond and share information. Ford began a dialogue on emerging issues in corporate All of the 14 companies engage in stakeholder dia- citizenship with leading international social, economic logues and meetings with community groups. Thirteen and environmental experts and the company's senior conduct visits and tours of operations. Twelve consult management. The intent of the dialogue was, in part, to with government agencies. Nine conduct stakeholder help assess Ford's progress against the goals specified by attitude and opinion surveys, and half set up formal the Global Reporting Initiative (GRI), an international, multi-stakeholder effort, including the United Nations Environment Program, to create a common framework for voluntary reporting of a company's global economic,

TABLE 5.3 environmental and social practices. Ford's new process of RELATIONSHIP-BUILDING TACTICS annually convening leading stakeholders to discuss issues pertaining to the company and industry is, in the view of Number Percent the report's authors, a global benchmark. This process Stakeholder dialogues 14 100% has already paid dividends through the generally supportive comments these stakeholders have made concern- Meetings with community groups 14 100% ing Ford.

Visits, tours, open days 13 93% Stakeholder dialogue is at the heart of Rio Tinto’s CCI Involvement with strategy. These dialogues operate at an international pol- government 12 86% icy level and at a local community level. For example,

Attitude and opinion Rio Tinto has formed effective policy-level partnerships surveys 9 64% with IGOs (international governmental organizations)

Community advisory such as the World Bank and UN through initiatives panels 7 50% including Business Partners for Development and the Mining, Minerals and Sustainable Development Speakers bureau 5 36% Initiative.

38 the center for corporate citizenship at boston college EMERGING GOOD PRACTICE: SOCIAL REPORTING

More and more leading companies are beginning to produce global social reports. Distinct from philanthropy or community relations reports, social reports focus on the whole range of a corporation’s interactions with society, exploring both benefits and costs. Social reports are creating a new level of openness and transparency about the impact business has on society. A number of companies in the benchmark are leading the way in pro- ducing social reports.

BP was one of the first major global companies to produce a social report, in 1998. It now makes extensive use of the Web for its social reporting, and is becoming increasingly sophisticated in identifying suitable ways of recording and monitoring social performance and of verifying and validating the information it reports.

Ford’s social report “Connecting with Society” is a global benchmark. It has been an effective source of positive recognition and attention for the company. The report features detailed accounts of the company's community, environment, health and safety practices. In addition, it explores the company's role as a global citizen. It has received significant attention for its balanced discussion of the controversies surrounding some of Ford’s core product lines.

A unique feature of Rio Tinto’s approach, consistent with its devolved structure and culture, is the requirement for each of its 22 operating businesses to publish its own Social and Environmental Report each year, in addition to the group-wide report. Several of the reports are published in local languages. These reports are also available through the Rio Tinto web site.

BT and Diageo have also received positive recognition for their social reporting efforts.

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Networking with regional and global corporate GOOD PRACTICES citizenship organizations

Many of the European-based companies in the Agilent captures some of the leading good- study play leadership roles in major organizations practice steps in managing international focused on corporate citizenship and corporate social communications activities: responsibility. • Don’t work only through Community Affairs and Public Relations staff. Rio Tinto achieves considerable communications success • Link in the community as a core element through its partnerships with respected bodies such as of the communications strategy. Get com- the Prince of Wales International Business Leaders munity representatives to tell your story. Forum (IBLF). Levi’s enjoys a strong reputation for its • Market internally. Get employees to tell social and community involvement, and is active in net- your story— they are your best advertise- working initiatives in Europe, notably CSR Europe (until ment. recently the European Business Network for Social • Target audiences for Community Affairs Cohesion, EBNSC), which it chairs. Diageo’s Chief messages. Executive is Deputy Chair of IBLF and the Chairman is • Brand key programs. on a government task force for the promotion of IT skills. • Design communication templates and dis- Johnson & Johnson executives are also actively involved seminate them globally. with CSR Europe. BT has been a leader in developing the • Recognize that certain international “Business Impact” web site, providing a wide range of newspapers want advertising space to be information and case studies on corporate social responsi- taken before they will do stories. bility, and has also led Business in the Community’s • Use communication consultants with local Impact on Society Task Force in the UK. capacity.

40 the center for corporate citizenship at boston college

MEETINGS WITH COMMUNITY GROUPS

Because of its wish to develop positive relationships with local communities, Rio Tinto places great emphasis on ongoing consultation with all those affected by its operations. As part of its corporate value of “mutual respect,” there is a requirement for continuing and effective two-way communication, accompanied by realistic expectations within both local communities and the businesses involved. The company conducts regular community meetings, stakeholder dialogue sessions, open days and other events of this nature.

Rio Tinto uses measurement as part of its strategy to build positive relationships with specific local communities. In 1999, Coal & Allied, a subsidiary of Rio Tinto operating in the Hunter Valley of Australia: • Interviewed over 100 opinion leaders for their views on community needs. • Surveyed all its employees on community issues. • Inaugurated a site Community Consultation Committee including many community members. • Set up a Community Relations hotline number, publicized throughout the local area. • Developed www.coalandallied.com.au as a service for local people to find out information and apply online for support for community project ideas. • Collated data to show a qualitative satisfaction result.

the center for corporate citizenship at boston college 41 VI. Measurement: What Gets Measured Gets Managed

TABLE 6.1 ment activities most com- MEASUREMENT ACTIVITIES monly employed. The techniques most frequently used Central Local centrally are evaluations of Number Percent Number Percent specific programs and Attitude surveys: processes, followed by • Employees 10 71% 7 50% employee surveys and media • Customers 5 36% 4 29% tracking. These are also the • Communities 6 43% 5 36% most common at the local • Investors 2 14% 3 21% level. • Government 6 43% 4 29%

Media tracking 10 71% 7 50% PLANNING Benchmarking 9 64% 2 14% The adage goes that one

Informal data gathering 9 64% 6 43% “needs to measure in order to plan, and to plan in order Stakeholder dialogue process 4 29% 4 29% to measure.” Measurement Program/process evaluations 11 79% 5 36% is vital to supporting interna-

Internal data analysis 6 43% 1 7% tional CCI planning. Measurement helps man- Employee volunteering agers conduct a strategic sit- time/cost tracking 8 57% 2 14% uation analysis, and evaluate whether current resource allocation plans support or Leading companies use measurement to assist with: detract from strategy. Two approaches utilized by lead- • Planning ing companies are: • Performance review (including outcomes and • Assessing community needs impacts) • Budgeting resources • Process improvement Assessing community needs Most companies are in the relatively early stages of try- Several of the participating companies conduct ing to measure the performance of their international research into the needs of communities where they community involvement. Table 6.1 shows the measure- plan to get involved.

42 the center for corporate citizenship at boston college In preparation for BT’s launch of an international pro- community contributions, as well as ways to determine gram, in 1999 the company administered detailed con- management costs and classify expenditures. In the US, sultation and surveys of BT staff, local opinion-formers IBM has a central repository system for tracking contri- and community groups in eight countries, most of them butions; reports can be generated on contributions by in the Asia-Pacific region. In India consultations were issue and type. Agilent is one of the few companies that held with UK High Commission and British Council tracks employee volunteer time throughout the world; it representatives and a range of local individuals and uses its Intranet site to track and measure employee vol- NGOs to identify partners and projects. Capital One unteerism, as well as to recruit volunteers. conducts a community assessment for all its major operating sites. At new site openings, this process is Without measurement, managers used to define a major initiative that helps the company to gain visibility and build local relationships. can rely only on anecdote and gut SmithKline Beecham collected data and researched feeling to determine whether pro- community needs on children’s health in Europe. BP conducts Social Impact Assessments to explore ways in grams are successful. which it can best contribute to the community.

Budgeting and accounting for CCI resources PERFORMANCE REVIEW Good record-keeping is fundamental to measurement. Measurement is fundamental to understanding and Record-keeping supports planning by allowing compa- assessing the outcomes and impacts of CCI programs. nies to evaluate how resources are distributed, and to Without measurement, managers can rely only on identify whether the allocation supports strategic anecdote and “gut feeling” to determine whether pro- objectives. While most of the companies in the study grams are successful. While measurement of interna- routinely track the value of their cash donations at tional CCI performance is relatively undeveloped home and abroad, relatively few track their volunteer among most companies, the benchmark group employ and product donations outside their home countries as a variety of techniques in their international operations. consistently. Performance measures Several of the companies in the Benchmark, such as Good-practice companies use a wide variety of perfor- BP, BT, Diageo, GlaxoSmithKline and Rio Tinto, use mance indicators to determine the impact of CCI. the London Benchmarking Group (LBG) models to Indicators relate to different stakeholder groups, record resources devoted to CCI and to plan and assess including employees, investors, customers, govern- project outcomes. The model provides companies with a ment leaders and local communities surrounding com- standard “template” to identify the total value of their

the center for corporate citizenship at boston college 43 pany facilities. Table 6.2 shows the range of indicators TABLE 6.2 that companies use as metrics. Companies employ PERFORMANCE INDICATORS these indicators in a variety of ways. (See pages 45-46.)

NUMBER PERCENT

Employee-related PROCESS IMPROVEMENT • Employee Measurement is often most valuable when used to awareness/support 8 57% support continued improvement of international CCI • Training and skills 5 36% activities. A number of leaders in the benchmark • Motivation/morale 9 64% group focus their measurement activities on improving • Retention 7 50% their own operations, and those of their community • Recruitment 8 57% partners. • Levels of volunteering 8 57% For example, to measure the company’s “social and eco- Investor-related nomic footprint” in areas where it operates, Diageo is • Social investment ratings 6 43% pioneering the use of country “total impact studies,” first • Cost or tax savings 4 29% in Poland and next in Scotland. The Polish study, • Access to markets 6 43% which was a form of social audit of all the company’s • Defense vs. predators 1 7% operations in that country, assessed its influence on seven key stakeholder groups: investors, government, Customer-related employees, brand customers, business partners, the com- • Customer awareness/support 8 57% • Increased sales 5 36% munity and the natural environment. The study result- ed in a detailed impact assessment, which has proved to

Community/government-related be a useful training tool for increasing the knowledge of • Community awareness/support 11 79% management both in Poland and beyond. As a result, • Positive local decisions 10 71% Diageo has improved its methods of handling alcohol • Government abuse and has developed a closer understanding of ethi- awareness/support 10 71% cal boundaries. The study also proved invaluable in • “Benefit of doubt” gauging the impact of the merger which created Diageo in crisis situations 9 57% on core markets such as Poland. Diageo plans to conduct these studies in other countries. Reputation-related • Media coverage 10 71% • Awards/accolades 10 71% continued on page 47

44 the center for corporate citizenship at boston college Employing Performance Indicators — Examples

Performance indicators: Employee-related Diageo CCI staff collate internal data from Human Resources to assess employee awareness of company CCI activities and the impact of CCI on recruitment and retention of staff, motivation and morale, and on training and skills development. Tracking of employee volunteering hours is rigorously undertaken at Burger King, one of the Diageo businesses.

Performance indicators: Investor-related As the number of socially screened investment funds has increased in the past few years, more companies are tracking whether they are included in these funds. For example, IBM was singled out as the 1999 “best corporate citizen” in Business Ethics magazine. This has influenced company ratings by social investment fund managers. Diageo pays special attention to the tracking of social investment ratings in various publications that have become more prominent in the past few years. One of the indicators BP uses to measure the impact of its CCI on investors is to track the company’s inclusion in socially responsible investment indices of recommended companies. Given the growing importance of ethical funds, which often hold significant healthcare stock, GlaxoSmithKline has been considering how best to position itself in relation to socially responsible investing.

Performance indicators: Customer-related Some of the benchmark companies measure customer awareness of and support for their international community involvement. For example, Diageo tracks customer awareness as well as increased sales via cause-related marketing.

Performance indicators: Community/government-related SmithKline Beecham tracked awareness and support of the company’s CCI activities on the part of government and community leaders. To assess community benefits of CCI activities, SB used both anecdotal and formal feedback, including: NGO reports; dialogue with individuals affected by grants and with local government officials; and site visits to collect qualitative and quantitative data.

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MORI measured the impact on BP’s reputation of its program in Scotland involving youth and the environment. BP has also conducted ad hoc research into the benefits derived from specific issues or programs.

Performance indicators: Tracking media and corporate reputation Both media coverage and awards/accolades are used as reputation-related indicators. Agilent, BP, Diageo, IBM, Levi’s, Rio Tinto and SmithKline Beecham all measure the amount (and in some cases the value) of media coverage generated by CCI activities. This requires close cooperation with the corporate communications department. For example, Agilent developed a system for tracking and quantifying the extensive media coverage for Agilent Action week. It also developed a process for valuing the media coverage.

To evaluate the effectiveness of its communication activities, IBM keeps a central record of all articles related to grant programs and assesses the quantity and quality of the press coverage received for each program. In 1999 IBM’s community involvement initiatives received almost 800 media placements worldwide. In fact, IBM receives more media coverage from its Corporate Community Relations activities than from any other business unit. IBM also gathers feedback from customers, employees, and community and government leaders about its communications.

46 the center for corporate citizenship at boston college continued from page 44 jects are reviewed with regional management on a country-by-country basis. BP uses a similar approach, reporting on its overall Diageo demonstrates good practice by regularly conduct- operations in a range of individual countries as part of ing project evaluations to assess sustainability and its annual social reporting process. value. It conducts an annual community survey by Notable process improvement steps include: means of a questionnaire to the internal “owners” of • Building evaluation every community project, requesting a progress report. into strategic programs An extensive data gathering exercise is undertaken • Benchmarking annually throughout the Group internationally for pur- • Verification and assurance poses of aggregation and sharing of good practice.

Diageo uses what it calls its “Foundation Scorecard” to BUILDING EVALUATION INTO STRATEGIC determine which projects to support. The process is based PROGRAMS on the company’s key business-related and community- Because of IBM’s focus on accountability and results, it impact criteria. Business goals include: invests significant resources in performance evaluation • Builds Diageo talent of each major community involvement project. To carry • Will raise corporate or brand reputation out process- and outcomes-based evaluations, IBM • Offers leadership opportunities for the company and works with independent organizations with expertise in its people research, evaluation and the appropriate subject matter • Meets external affairs/communications objectives being examined. Evaluators use many different methods • Builds trade or business partner relations (site visits, extensive interviews, statistical analyses and • Meets brand objectives (where appropriate) assessment of the technologies). Evaluation looks at • Generates consumer impact impact on partners, especially related to capacity building, and on clients. Evaluation results, which are pro- Community goals include: vided throughout the implementation of a project, are • Community need used to make changes and improvements in programs, • Partnership thus creating an emphasis on continuous improvement. • Leverage of funding (i.e. the likelihood that the pro- Evaluations are released publicly. ject will generate sustainable support outside of the corporate grant) In addition to evaluation by independent evaluators, IBM requires that all grantees provide a status report at Every potential project is evaluated against these criteria. regular intervals of project implementation, as well as at Managers offer their best analysis as to whether they the end of the grant. On a quarterly basis major pro- expect that a project has:

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The resulting tally gives a clear picture of which projects will be the most valuable for both the BENCHMARKING business and community.

Benchmarking is very popular among Levi’s staff make regular visits to major grant companies in the study. BP, BT, Diageo, recipients and to Community Involvement GlaxoSmithKline and Rio Tinto are all Teams. Progress and final narrative and finan- members of the London Benchmarking cial reports are required from all grant recipi- Group and regularly record the value of their ents. The company provides clear guidelines on community contributions, covering both the information to be supplied. inputs and outputs. Many of the UK-based companies have participated in the Verification and assurance ProbusBNW CCI Index, which provides a Companies such as BP and Rio Tinto are detailed comparative benchmark of the exploring a range of techniques to provide quality and effectiveness of their community validation of the performance claims they involvement activities, including scores for make for their international community various aspects of CCI performance. involvement, based on the measures they Johnson & Johnson Europe is involved in use. Most social reports include some form benchmarking with CSR Europe and of verification or assurance by outside spe- PricewaterhouseCoopers. cialists, which is becoming an important aspect of accountability. Examples of techniques used include: • Formal “auditing” of the processes used to gather community involvement measurement and performance information. • A high degree of certainty of success • Use of independent outside experts to conduct eval- • A probability of success uation and assessment activity, or to review the com- • A high degree of risk pany’s own measurement and reporting. • “Endorsements” from relevant opinion leaders, e.g. Each level has a point value, with the community in community or government organizations. impact criteria getting more points in order to help “even things out” so that the business criteria do not overwhelm the consideration of whether to support a project. This system helps managers to score projects.

48 the center for corporate citizenship at boston college

VII. Outcomes: Making a Difference Worldwide

One of the most striking and encouraging findings of and the media, leading to more positive views the benchmark has been the growing determination of towards the company’s local operations and a will- companies to bring about real social improvement ingness to give it some “benefit of the doubt” over through their community involvement efforts. The level concerns that may arise; greater acceptability in new of ambition is noticeably higher than it used to be. More and expanding markets. and more, companies are looking to work in partner- • Employee-related: greater attractiveness to potential ship with both public and not-for-profit bodies to create recruits; higher morale and motivation among exist- sustainable, systemic and significant change. They are ing employees, leading to better retention rates; increasingly willing to play a part in public policy debate opportunities for employees to gain wider skills and on how best to tackle pressing social problems. experience. • Business spin-offs: direct business benefits resulting BUSINESS BENEFITS from cause-related marketing initiatives or from the The performance indicators used by companies to development of new product and service offerings determine the business benefits of their international arising from community partnership programs. community involvement have already been described in the previous section (see Performance measures). COMMUNITY BENEFITS The actual outcome data available from companies in Participants were asked to judge how their international relation to these indicators is limited, partly because CCI programs benefit communities and their stakehold- measurement in this field is at a relatively early stage ers. They were provided with a list of benefits and asked of development, and partly because companies may be to rate the level of benefit created by their international more reluctant to share information on the business community involvement activities: “a lot,” “some,” or and competitive benefits of their programs. “none at all.” The results are shown in Table 7.1.

Most business benefits of community programs fall Participants report that they have provided the most within the following areas: benefit through the contribution of funds to worth- • Business attractiveness: improved perceptions of while initiatives (13 out of 14 companies). They also the company among stakeholders such as investors, believe they have made significant contributions to spe- customers and business partners, resulting in cific issues (12 companies). Ten companies (over 70 greater willingness to do business with it. percent) say they have helped by providing other • Reputation and access: greater inclination of regula- resources (e.g. donations of products or expertise), tors and government bodies to give weight to the including “leveraging” additional resources (eight com- company’s views in making decisions relevant to its panies) or providing leadership (seven companies). business; more favorable attitudes of local commu- Fewer believe they have made a major impact in nities, NGOs and pressure groups, opinion leaders increasing the ability of community organizations to

the center for corporate citizenship at boston college 49 TABLE 7.1. INTERNATIONAL COMMUNITY PROGRAMS BENEFITS

A LOT SOME NONE

Providing funds for worthwhile initiatives 13 (93%) 1 (7%)

Addressing specific issues 12 (86%) 1 (7%) 1 (7%)

Providing other resources 10 (71%) 3 (21%) 1 (7%)

Leveraging funds and resources 8 (57%) 4 (29%) 2 (14%)

Providing leadership 7 (50%) 5 (36%) 2 (14%)

Increasing the capability of nonprofit bodies and government to tackle social issues 5 (36%) 8 (57%) 1 (7%)

Enhancing social inclusiveness 5 (36%) 6 (43%) 3 (21%)

Alleviating crisis and natural disasters 4 (28%) 9 (64%) 1 (7%)

Contributing to changes in public policy 4 (28%) 7 (50%) 3 (21%)

tackle problems, enhancing “social inclusiveness” (five of ways in which the benchmark group is working to companies each), or contributing to public policy and achieve these results. aiding in natural disasters (four companies). However, most of the companies believe that they have made at Specific outcomes and achievements of least “some” impact in these arenas. international CCI activity Several companies in the benchmark concentrate their Most of the companies in the benchmark are striving efforts on tackling a particular problem or issue area. to enhance the significance of their impacts in areas This work can be limited to responding to a particular beyond the provision of cash and other goods. More event such as a natural disaster. Other companies have and more are working to make tangible, measurable committed to becoming active participants in solving differences in the quality of life for key communities complex, long-term problems in fields such as educa- and stakeholders. The next section includes examples tion, healthcare or poverty.

50 the center for corporate citizenship at boston college GlaxoSmithKline has begun to make significant strides in addressing health problems in less developed countries. Notable programs include its work to eliminate lymphatic filariasis and a Personal Hygiene and Sanitation Education (PHASE) program to reduce the number of diseases caused by poor hygiene practices.

IBM’s efforts in its Reinventing Education programs focus on improving school and student performance. A three-year, independently conducted, outcomes-based evaluation found that, in each grade from 7-11 and in every subject (i.e. mathematics, science, language and arts), students classified as “high users” of Reinventing Education materials scored significantly higher on tests than their “low/non-use” peers in every core academic area. The conclusion was that frequent, consistent use of these materials has a positive impact on student learning. Initial findings also demonstrated measurable improvements in attendance and in teacher and student attitudes, and found that many of the technological and educational changes induced by the grants are becoming institutionalized. Evaluation by the Center for Children and Technology has also shown that some sites are demonstrating a direct correlation between RE and higher student achievement. A second study demonstrated reading gains by users of IBM’s new voice recognition technology.

Diageo’s support of Tomorrow’s People has helped create 340,000 jobs in the UK since its inception. In addition, Burger King’s BK Cares aims to take 10,000 people out of unemployment each year.

Whirlpool runs a literacy program in South Africa that aims to build skills and increase literacy levels among employees from disadvantaged social backgrounds. Fifty-five factory workers are attending with success a literacy training program in Isithebe. The program is a win-win, providing more employable workers for the community, and also improving worker skills for Whirlpool.

Several of the participants, including Johnson & Johnson and GlaxoSmithKline, provide significant product donations for disaster relief. To help communities in need, IBM designed and developed a web site (www.disasterrelief.org) with the American Red Cross and CNN to assist with global disaster relief information and assistance.

the center for corporate citizenship at boston college 51 Leveraging resources One of the most immediate ways benchmark companies produce positive outcomes for their community partners is by “leveraging” additional resources. In Agilent’s $1 million cash and product donations to the Flying many cases, support from a major multinational com- Hospital significantly increased pany provides a nonprofit with both an endorsement the organization’s ability to deliver services while reducing main- and the resources to secure additional funding and tenance costs by $65,000 per support. year. Since Agilent makes components and not end products, Agilent was successful in involv- Increasing the capability of nonprofit and governing some of its own business ment bodies partners in the project. IBM, Litton, Motorola, Goodyear, and Business can play a unique role in helping nonprofit BF Goodrich all made product and government bodies to increase their managerial donations. effectiveness and to enhance their delivery and prob- BP, GlaxoSmithKline and Rio lem-solving capabilities. Every successful business Tinto, among others, are involved understands sophisticated strategic planning, manage- in major global projects which leverage significant input and ment, project execution, measurement, finance, resources from partners among accounting, budgeting, R&D, and IT. Several of the international governmental orga- companies in the benchmark work to transfer this nizations (IGOs) such as the World Bank and the World Health know-how to community partners. The dividends Organization, as well as from of this activity can flow directly to individuals and com- international NGOs, other communities through improved services and greater ability panies, national governments, academic centers of excellence, to provide solutions. etc.

52 the center for corporate citizenship at boston college Capital One has developed an important partnership model focused on addressing the problems of “at- risk” youth, that motivates nonprofits to collaborate with each other. The company facilitates and cat- alyzes nonprofit collaboration in a non-threatening manner. Capital One has assigned senior executives to serve on the governing boards of its nonprofit partners, provided its expertise through management training seminars, and provided financial and manpower resources to implement recommended programs. The company also measures program outcomes. The 1,100 children who have participated are performing better in school, and are better behaved and more interested in learning. In addition, participating nonprofits have increased their ability to collaborate with one another and with Capital One— thus leveraging new program opportunities, increasing impact, and gaining access to greater resources.

Starting in 1996, IBM made grants of technology and technical assistance (primarily hardware and software valued at $2.3 million) to seven organizations in six European countries (Denmark, France, Ireland, Italy, Portugal and the United Kingdom) to address high unemployment in Europe. The purpose was to increase the capacity of nonprofit partner organizations to use technology to deliver services to the chronically unemployed. Partner organizations received IBM’s most recent IT equipment, and learned about IBM project management practices. All partners developed at least one additional service, and new software applications were developed in two projects. An independent evaluator found that these training programs increased the partner organizations’ capacity to use technology in delivery of services to clients. The evaluator determined that the workforce development providers have enhanced their organizational capabilities.

Johnson & Johnson’s European Health Leadership Program, in partnership with the INSEAD Business School in France, is designed to train and educate a new generation of European health leaders, covering topics such as health reform, leadership, organizational change, managing the European context, culture and diversity, and service management. Over 100 participants have completed the course to date.

Rio Tinto believes that “skills and transferable knowledge are what make for sustainability.” Through following this principle in its community relations activity, it seeks to forestall the need for major damage control exercises to mitigate the community impact of mine closures. In addition, some Rio Tinto businesses are beginning to focus on enterprise development activities, such as the creation of small business advisory bodies and/or financial aid to help set up new enterprises.

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VIII. Assessing International CCI Performance

One of the aims of the benchmark was to provide par- Outcomes), and also the specific programs selected ticipating companies with an assessment of their own by the company for review as case studies of its international community involvement approach and international community involvement. activities, based on the findings of the study concern- 2 Based on these assessments, the company was ing current good practice. placed in a performance band from 1 to 4 for each of the seven categories (“SMACMO” plus selected pro- This was done in three ways: grams), with Band 1 representing the highest perfor- 1 Each company received a detailed confidential mance possible. These bands are explained in Table assessment of its performance, covering each of the 8.1; in practice, in addition to the four main bands, six “SMACMO” categories (Strategy, Management, “intermediate” bandings were also used (e.g. “1/2” Activities, Communications, Measurement, and

TABLE 8.1 DEFINITIONS OF BANDS

Band 1 = A leading “role model” company, with a well-developed approach to this aspect of international community involvement, representing best current practice in most aspects and delivering clear results in terms of both business and community benefits

Band 2 = A company with a generally well thought-out approach to this aspect of international community involvement, representing good practice in many aspects, and with some identified positive results

Band 3 = A company that has developed its approach to this aspect of international community involvement (strategy, management, activities, etc.) to an extent that meets reasonable current expectations

Band 4 = A company which is still in the early stages of developing its approach to this aspect of international community involvement, and which does not yet fully match up to what might be reasonably expected of it

Note: 1/2, 2/3 and 3/4 represent intermediate bandings, between 1 and 2, between 2 and 3, and between 3 and 4, respectively.

54 the center for corporate citizenship at boston college TABLE 8.2 DISTRIBUTION OF BANDINGS

Band 1 1/2 2 2/3 3 3/4 4 Category

Strategy 3 2 3 3 2 1 -

Management 1 2 3 4 3 - 1

Activities 1 1 3 6 1 2 -

Communications - 1 2 4 5 2 -

Measurement - 1 1 3 6 - 3

Outcomes 1 - 2 6 3 1 1

Selected Programs 2 1 1 4 6 - -

meaning “between bands 1 and 2”), resulting in a clear “role models” in any of the seven categories. range of seven possible bandings in all. Perhaps unsurprisingly, the categories in which more 3 A small number of recommended actions were sug- than one company was placed in Band 1 are “Strategy” gested for each company, representing the priority and “Selected Programs.” For a company seeking to be areas where, in the opinion of the benchmark team, a leader, strategy is the first thing to get right; the next the company could make the most significant step is to start to implement the strategy through devel- enhancements to its international community oping some first-class international programs. involvement. None of the companies was placed in Band 1 for Table 8.2 shows the overall distribution of bandings Communications or Measurement. These two cate- among the fourteen participating companies in the gories also had only one company each in Band 1/2, seven categories. while for Outcomes there was one company in Band 1 and none in Band 1/2. It will be seen that at this stage, relatively few of the companies fall into Band 1 and can be regarded as

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The great majority of bandings—over 70 percent— Management: IBM; Johnson & Johnson; were in Bands 2, 2/3 and 3. This reflects the fact that SmithKline Beecham most of the companies had at least begun to develop a Activities: Agilent; Diageo; IBM; coherent, well thought-out approach to their interna- Johnson & Johnson; tional community involvement, and were beginning to SmithKline Beecham achieve some positive results and recognition. The bandings also show that Communications and Communications: Agilent; Diageo; IBM Measurement tend to be less developed than Strategy, Management and Selected Programs. Measurement: IBM; Rio Tinto

There were relatively few companies in Bands 3/4 and Outcomes: Agilent; Diageo; IBM 4. These were mainly companies at an earlier stage of Selected Programs: Agilent; IBM; international community involvement, which saw the SmithKline Beecham benchmark as a means of making faster progress by learning from the experience and good practice of These ratings relate to the specifically international existing leaders. aspects of the companies' community involvement, as addressed by this benchmark. It is important to recog- Among the participating companies, IBM performed nize that attention to international community involve- especially strongly across the board, with bandings of 1 ment is a recent phenomenon, with leading companies or 1/2 in every category. In this study, IBM emerged as making rapid progress in expanding their organiza- a clear leader in international corporate community tions and management capabilities internationally. involvement performance, with well developed strategies, management processes and programs. Diageo Ford and Levi’s are rightly recognized as leaders and was also rated highly, being placed in Band 1/2 or 2 in innovators in the field overall, as well as in the United all categories except Measurement, where it was in States. Each has effective community programs, strong Band 2/3. Other strong performers were SmithKline leadership, and highly capable management systems. Beecham, Agilent Technologies, Rio Tinto, BP and Both companies performed strongly across the board, Johnson & Johnson Europe. with ratings far ahead of what the authors would expect from typical multinational companies. The highest-rated companies within each of the specific categories were as follows: Similarly, BT in the UK, and Capital One and Whirlpool Strategy: BP; Diageo; IBM; Rio Tinto: in the US, have established themselves as leading com- SmithKline Beecham panies in community involvement and social responsibility, but are in the relatively early stages of developing their activities internationally.

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IX. Conclusion

At the outset, this report posed a variety of questions Effective processes require adaptation. The companies and challenges confronting businesses that seek to in the benchmark demonstrate that traditional com- develop global approaches to community involvement. munity involvement programs such as philanthropy, Fundamentally, companies are looking to understand volunteering, product donation, and provision of tech- what’s different about international CCI, and to identi- nical expertise can work in a variety of locales. fy steps that can help ground them in a process that However, specific programs must be designed and does not repel by its complexity, yet is responsive and adapted to suit local needs and mores. effective in each local context in which it engages. Effective processes emphasize communication. All of The companies in this benchmark show that there is the companies in the benchmark find it strategically no single universal solution to the challenge of manag- important to build awareness among key stakehold- ing international community involvement. However, ers—starting in-house with employees. However, more they also show that by applying effective management than that, effective international involvement relies on processes—common to all aspects of the business, and relationship-building efforts that establish formal and to all regions—effective global CCI strategies can be frequently employed channels that use two-way com- designed and implemented. The findings of the report munication mechanisms, create openness, and build indicate that the management processes that CCI man- trust. agers employ are a key part of the answer to the princi- Effective processes demand measurement and results. pal challenge of designing a CCI strategy that is both Leading companies are beginning to find ways to mea- global and local. sure both the quality and effectiveness of their interna- Effective processes are participatory. They engage key tional community involvement. This involves evaluat- staff and cross-functional colleagues from around the ing the actual impact and outcomes of programs world to provide input and guidance for strategy devel- against the objectives they were designed to meet, and opment. Participatory planning extends beyond corpo- determining results both for the business itself and for rate walls. Good practice companies in the benchmark the communities where it operates around the world. take an inclusive approach which engages the feedback Finally, the leadership companies in the benchmark are and guidance of key community stakeholders as well. taking their international CCI programs to the next Effective processes design in flexibility. They allow for level. This manifests itself in more ambitious, even some local discretion to shape how global strategic audacious, goals to make positive impacts on the lives goals can best respond to local cultural considerations and well-being of individuals and communities. In and community needs. addition, these companies are using their CCI programs as a platform for broader corporate citizenship

the center for corporate citizenship at boston college 57 efforts. They are driving a process of increasing trans- For that reason the International Community parency, standard-setting across all operations, and Involvement Benchmark process will be dynamic as relationship-building with stakeholders and in all well. The benchmark process and findings documented facets of the business. CCI is no longer just a stand- in this report are first steps in helping companies alone function in these companies. It is an essential improve their programs and practice. Planned follow- part of the broader citizenship efforts of each business up studies will seek to expand the participation of line and unit. multinational corporations based in a wider spectrum of home countries. Future iterations of the benchmark Taken together, the companies in the benchmark are will more fully explore additional topics, such as the “designing in” global sensitivity into their CCI opera- challenges of operating CCI in specific regions or tions. This allows CCI staff to herd together what countries, sector-specific issues, employee volunteering might at first seem like divergent goals: to coordinate a on an international scale, and working with interna- common, global strategic agenda for CCI; to allow for tional governmental organizations (IGOs). local flexibility; to create operating efficiencies; and to adapt to different cultures. In doing so, these compa- Companies involved in the benchmark are using the nies are finding ways to demonstrate their commit- results and bandings to determine and demonstrate ment to respond to stakeholder concerns and make a the quality of their international CCI practices. For measurable difference both for the corporate bottom some of them, the benchmark is already becoming a line, and for the vitality of communities wherever they useful element in their approach to social accounting operate around the world. and reporting.

International CCI practice is in an early stage of devel- THE FUTURE opment. To respond to increasing pressures, managers This study represents a first-of-its-kind investigation of need tools and resources to manage CCI in more effi- good practice in international corporate community cient, effective, and sophisticated manners. The infor- involvement. The information and data presented in mation in this report represents a first step to that end. this report represent a fair summary of the current Readers of this report should find inspiration from the state of leadership in the field. The data and practices fact that companies are finding ways to manage effec- also represent a benchmark standard for companies tively and make a difference for their communities and engaged in international CCI to strive to achieve and their business, not just at home, but wherever they exceed. The process of international CCI is not static operate in the world. but dynamic. Companies must constantly evolve their programs and practices to respond to the ever-changing requirements and expectations of their marketplace and their communities.

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Appendix: Participating Companies and Contacts

Agilent Technologies: Capital One Financial Services: Mr. Gene Endicott Ms. Madge Bush Agilent Technologies Inc Community Affairs & CRA Officer 1101 Creekside Ridge Drive Capital One Services Inc P.O. Box 619051, Roseville Corporate Communications, Attn 12039-0380, California 95661-9051, USA 11013 West Broad Street Tel: +1 916 788 5782 Glen Allen, Virginia 23060, USA Fax: +1 916 788 5906 Tel: +1 804 934 5448 Email: [email protected] Fax: +1 804 934 5477 Email: [email protected] AstraZeneca: Mr. Mike Rance, Corporate Affairs Diageo: AstraZeneca PLC Mr. Geoffrey Bush 15 Stanhope Gate Director of Corporate Citizenship London W1Y 6LN, UK Diageo plc, 8 Henrietta Place Tel: +44 (0)20 7 304 5050 London W1G 0NB, UK Fax: +44 (0)20 7 304 5183 Tel: +44 (0)20 7 518 5296 Email: mike.rance@astrazeneca.com Fax: +44 (0)20 7 518 4789 Email: [email protected] BP: Ms. Eibhlis Hood Ford Motor Company: Performance Manager, Global Social Investment Mr. Brad Simmons BP Amoco plc Manager, Corporate Responsibility Britannic House Ford Motor Company, 1 Finsbury Circus One American Road WHQ - 218-A2, London EC2M 7BA, UK Dearborn, Michigan 48126-2798, USA Tel: +44 (0)20 7496 4821 Tel: +1 313 206 2654 Fax: +44 (0)20 7496 4756 Fax: +1 313 845 2586 Email: hoode@bp.com Email: [email protected]

BT: GlaxoSmithKline: Mr. Adrian Hosford (participated as SmithKline Beecham) Director of Social Policy Dr. Justine M. Frain BT plc Head of Global Community Partnership Corporate Relations Department GlaxoSmithKline, Glaxo Wellcome House BT Centre Berkeley Avenue 81 Newgate Street Greenford Middlesex UB6 0NN, UK London EC1A 7AJ, UK Tel: +44 (0)20 8422 3434 Tel: +44 (0)20 7356 5455 Fax: +44 (0)20 8966 8976 Fax: +44 (0)20 7356 5520 Email: [email protected] Email: [email protected]

the center for corporate citizenship at boston college 59 IBM: Rio Tinto: Mr. Stanley S. Litow Ms. Dorothy Harris Vice President, Corporate Community Relations and Corporate Relations Adviser President of the International Foundation Rio Tinto plc IBM Corporation 6 St James’s Square New Orchard Road London SW1Y 4LD, UK Armonk, New York 10504, USA Tel: +44 (0)20 7753 2276 Tel: +1 914 499 5242 Fax: +44 (0)20 7753 2306 Fax: +1 914 499 7684 Email: [email protected] Email: [email protected] Whirlpool: Johnson & Johnson (Europe): Karen Ackerman Mr. Frank Welvaert Community Relations Director, Corporate Social Responsibility Europe Whirlpool Corporation Johnson & Johnson 2000 M63 North MD 2300 Kunstlaan 46 Avenue des Arts, B-1000 Benton Harbor, Michigan 49022, USA Brussels, Belgium Tel: +1 616 923 5397 Tel: +32 (0)2 506 1171 Fax: +1 616 923 3442 Fax: +32 (0)2 506 1169 Email: [email protected] Email: [email protected]

Levi Strauss & Co Europe: Mr. Alan Christie Vice President, Public Affairs Levi Strauss Europe, Avenue Arnaud Fraiteur 15-23 Brussels B-1050, Belgium Tel: +32 (0)2 641 6233 Fax: +32 (0)2 641 6636 Email: [email protected]

60 the center for corporate citizenship at boston college the center for corporate citizenship at boston college 55 LEE ROAD • CHESTNUT HILL, MA 02467-3942 • PHONE 617.552.4545 • FAX 617.552.8499 E-MAIL: [email protected] • www.bc.edu/corporatecitizenship