DATA ™ REAL NOT SPIEL RESEARCH REPORT How to communicate corporate social responsibility (CSR) and charity investment to a skeptical and mis-trusting consumer Research data Communications insights Best practice communication guidelines An initiative of Cavill + Co and Sweeney Research - October 2008 © Cavill + Co & Sweeney Research, October 2008 This report is brought to you by And made possible by the following partners Designed by © Cavill + Co & Sweeney Research, October 2008 except as permitted under the Copyright Act 1968. No part of this report will or can be reproduced by any process including photocopying, electronic or otherwise without the written permission of Cavill + Co. If you disregard this notice, karma may get you! What’s inside Welcome to the real world Page 3 Definitions Page 5 Real quick snapshot Page 7 Scope of the study Page 8 10 Individuals, 8 Insights Page 10 Insight 1 Generation me Page 11 Insight 2 What the? Page 16 Insight 3 CSR impacts the bottom line Page 21 Insight 4 Vigilante Consumerism is alive and kicking Page 25 Insight 5 Applause for a cause Page 28 Insight 6 Commitment and synergy wins over skepticism Page 32 Insight 7 The real thing Page 35 Insight 8 Women rule Page 39 A few busted myths Page 43 Best practice guidelines Page 45 The people behind the report Page 57 A word from the CSR experts Page 63 Some refreshment Page 65 Really good resources Page 67 Real big thanks Page 72 “ Responsibility walks hand in hand with capacity and power” Josiah Gilbert Holland © Cavill + Co & Sweeney Research, October 2008 except as permitted under the Copyright Act 1968. No part of this report will or can be reproduced by any process including photocopying, electronic or otherwise without the written permission of Cavill + Co. If you disregard this notice, karma may get you! REAL NOT SPIEL™ - RESEARCH REPORT © Cavill + Co & Sweeney Research, October 2008 2 Welcome ... such as Qintex and the resulting Skase scandal. The information revolution began, with the internet leading the way, bringing with it the opportunity for consumers to become educated and savvy about the operation of companies and marketing, and most importantly, sharing that on a grand scale. Companies could no longer hide behind their PR teams, could no longer control what consumers hear. Terms such as ‘good corporate citizen’, ‘triple bottom line’ and ‘earning your license to operate’ entered the corporate language, but any form of doing good was seen to be ‘soft’ by senior management. Scattergun philanthropy was rife, often driven by the Chairman’s chequebook, and sponsorship (mostly of sports and arts) was primarily for commercial gain. A few social entrepreneurs such as Anita Roddick and John Bell flew the social conscience flag, demonstrating that it was possible to maximise profit with social and environmental responsibility at the forefront, but they were few and far between. In the noughties (00s) we saw Bush take over the USA presidency, earthquakes in India killing 12,000, 9/11, the invasion of Aghanistan, Iraq and natural Since 1995 when Cavill + Co disasters like the Asian Tsunami. The collapse of companies such as Pasminco, HIH and Enron as well first began, we’ve had the as Ansett – the latter leaving 16,000 jobless – eroded privilege of working with consumer trust in corporate Australia. Michael Moore and documentaries such as The Corporation made us numerous organisations to question even further the motives and accountability facilitate partnerships between of corporations. With so many natural disasters, and compelling evidence from the Al Gore camp, companies and causes. As we we started to take global warming seriously. The explosion of Gen Y-ers into the job market caused enter our 14th year, we’re proud a transformation of workplace practices – Y-ers to look back on 31 partnerships wouldn’t tolerate poor treatment and with our ageing population, companies had to do all they could to investing over $22m into the attract and retain staff. Community Engagement and community sector. Staff Volunteering entered the corporate language. For brand marketers, product differentiation became Over 13 years we’ve seen the Australian market harder and a values-based proposition became change considerably, and this has impacted how popular - Cause Related Marketing (CRM) was an companies operate and communicate. effective strategy, but by 2008 consumer trust in corporations had hit an all time low and the fear of The 90s brought us the Gulf War, bombings in skepticism was making companies nervous about Oklahoma, shootings in Columbine and the Clinton communicating their good deeds. scandal. Famine in Africa, Live Aid, corporate collapses 3 Welcome ... to the real world Corporate Social Responsibility (CSR) became a term We spoke to our friends at Sweeney Research who that was discussed at length, as companies recognised came on board as a partner along with some of the the need to be accountable for all outcomes, not just CSR corporate leaders, to identify what consumers financial. Some companies began to turn talk into are saying about CSR and how they want to be action and action into results. It really was just a handful communicated with. Real not Spiel™ details those though – only four years ago I attended the first CSR findings. We believe thatReal not Spiel™ confirms Summit in Sydney, and almost all the speakers and beyond a doubt that a company’s CSR standing, case studies were international, because Australians can and will impact the bottom line. Specifically, it were still grappling with the meaning of CSR. CAN and does positively impact differentiation and product sales, enhances reputation, attracts and So CSR has gone from ‘should we do it’ to ‘how retains employees, earns trust. The answer lies in do we do it’ and the next decade will bring into action and measurement followed by conscious and focus the need to measure CSR, report on CSR thoughtful communication to today’s consumer that to stakeholders and communicate CSR to all we must recognise is attentive and demanding but stakeholders, especially consumers. relatively uneducated when it comes to CSR. As we enter yet another new era (at the time of publication However, in 2008 consumers are more marketing the stock market has crashed and the United States savvy than ever and even more skeptical. With so of America has gone into recession) the bottom line many corporate collapses and perceived corporate is now very much in sharp focus. greed, they have little respect or trust in corporations. Australians are the most skeptical consumers in the Whether Australia follows the world into recession or world! They’re far more discerning about the products not, the most successful companies are those that and services they buy – the values of the company pursue winning strategies during the ‘tough’ times. selling it now matters. Companies have to be far They are the ones that not only survive but thrive more accountable for their actions and impacts. Big through it. Companies need to stand tall and stand contracts and the brightest staff are often won or lost out and those with a strong CSR platform are less based on a demonstrable CSR policy. imitable than their competitors. Those companies that have a solid CSR program in place may reap Over the years, watching the world change, noticing the benefits, tapping into the so called ‘Reservoir the trends, working with numerous companies to of Goodwill’. Now is not the time to suspend or end help them form partnerships with causes, we’ve all CSR activity and expenditure. It is the time to noticed one thing: some companies will spend a increase accountability through robust measurement great amount of time and money developing CSR and communicating CSR stories to employees and strategies, wonderful programs, fabulously innovative consumers who will reward you with their loyalty. ideas, only to fail miserably when it comes to communicating these strategies to consumers. Our Hailey Cavill ‘gut feel’ was that corporate and brand marketers, Director advertising agencies and PR consultants, were just Cavill+ Co treating CSR as just another piece of the marketing armoury, whereas in actual fact it required a very different style of communication. We felt that some communications campaigns were simply creating further skepticism and alienating consumers from a company or brand which was actually trying to do some good. We felt that in order to capture customer HeartShare® a different style of communication was required. But we needed more than just a gut feel! REAL NOT SPIEL™ - RESEARCH REPORT © Cavill + Co & Sweeney Research, October 2008 4 Definitions CSR: Corporate Social The term ‘Green sheen’ has similarly been used to describe organisations which attempt to Responsibility appear that they are adopting practices beneficial CSR is simply how organisations – large to the environment. corporations and small to medium enterprises in the public and private sector – manage their Source: Wikipedia operations so there is minimal negative impact and maximum positive impact on society, the Spin environment and importantly, for their ultimate In public relations, spin is sometimes a survival. The six key practices of CSR are derogatory term signifying a heavily biased portrayal in one’s own favour of an event or 1. Ethical practice situation. While traditional public relations 2. Governance may also rely on creative presentation of 3. Community Engagement the facts, “spin” often, though not always, 4. Environmental Impact implies disingenuous, deceptive and/or highly 5. Marketplace Practices manipulative tactics. Politicians are often accused 6. Employee Satisfaction of spin by commentators and political opponents, Source: CSR Jargon Busting Tree, Cavill + Co when they produce a counter argument or www.cavill.com.au > CSR Jargon Busting Tree position. Source: Wikipedia Spiel Plausible glib talk – especially useful to a Cause Related Marketing salesperson.