Strategic CSRThe New Face of Corporate Social

Responsibility

December 15, 2008Ed Granger-Happ, Global CIO SC/US & UK

Chairman, NetHope

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The Rise of Corporate Philanthropy

1950 – good community citizen

1998 – employee response & engagement

2002 – leadership development

2008 – skills-based giving

Increasing strategic impact 2009 – emerging marketpartnerships

2006 – employee recruitment

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The Surprise

What’s a principal reason companies partner with causes?

Their customers & employees demand it!

• 71% of consumers are likely to consider a company’s philanthropic reputation when making a purchase.

– Cone, Inc. Cause Branding Study, 2003

• “Employees will choose companies, as well as remain loyal to companies, based on the perception of that company's whole corporate social responsibility…”

– Washington Post, Nov 10, 2005

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Students care about social initiatives

• 50% of incoming students ask about the school's Allwin Initiative for corporate social responsibility as part of their decision process for attending the school.

• 30 of 240 incoming students, volunteer to work on nonprofit boards for the school year.

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That’s good news for NGOs

Last year during a NetHope collaboration summit of nonprofit and for-profit technology leaders, the head of corporate affairs for a leading software company leaned over to me and said, “Guess what the number three question applicants are asking us now?” Building the suspense, she cited the obvious number one and two questions about salary and career path. “What’s your corporate social responsibility program,” she delivered word-by-word after a pause, “It wasn’t even on the radar screen three years ago.”

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Case Study: Pepperidge Farm

When I asked Paul Amorello, their CIO, what we could do as a quid pro quo for what his team did for us, helping to upgrade to Active Directory, he said. “you already did it.” “Oh?” I asked. “Yes, when my team came back on Monday morning they were all charged up about the work they had done at Save. That made it more than worthwhile.”

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Case Study: Cisco Fellowship Program

• Learn how to manage in chaotic times– disaster response

• How to manage with fewer resources• Influence and relationship management

– how to be the “glue”

• Collaborate by example• Gaining a long-term rather than quarterly

view• “Fellows became more holistic in their

thinking” – Tae Yoo, VP

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Banda Aceh – Ground Zero

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Case Study: Ernst & Young Volunteer Initiative

• Our approach to community engagement enables our people to apply their workplace skills to create positive change in communities close to home and around the world. We take both a national and local approach to our community engagement, with sponsorships and affiliations that help our people get involved in new experiences and give back where it’s meaningful to them.

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Case Study: Pfizer Global Health Fellows• Since 2003, 171 Global Health

Fellows have been selected to work with nongovernmental organizations (NGOs) in 31 countries to deliver health care and health system support to those in need around the world.

• Pfizer colleagues commit to up to 6-month assignments working with NGOs and multi-lateral organizations (MLOs) addressing HIV/AIDS, tuberculosis, malaria, and other devastating diseases in developing countries.

Global Health Fellows Video

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Some sobering numbers…

• A recent Wall Street Journal report notes the following about 13-to-25 year-olds:– 79% want to work for a company that cares

about how it impacts and contributes to society.

– 69 % are aware of their employer’s commitment to social/environmental causes.

– 64% say their company’s social/environmental activities make them feel loyal to that company.

– 56% would refuse to work for an irresponsible corporation.

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So What Do We Want?

• To be proud of our organizations

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There’s an impending war for global talent

• Millennials: 13-24 (born 1983-94)

• Generation X: 25-41(born 1966-82)

• Baby Boomers: 42-60(born 1947-65)

• Matures: 61-75(born 1932-46)

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The War for Talent is Just Beginning

• 75M baby-boomers to retire (2010-2025)• 35M millennials (born 1980-2000) take

over• The Math doesn’t work• Two conclusions:

– Will change the nature of retirement – Job market will be skewed to the sellers: we

will both write our own tickets

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What is this large object?

a very large ship 5 miles inland in the middle of the road

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SharedSpecialization

Partnering“How can we work with corporations?”

Cisco, Microsoft, Intel Grants

Basic Info Sharing“What are my peers doing?”

Meetings, Conference Calls

Collaboration – the NetHope Experience

Incre

asin

g L

evels

of

Tru

st

Joint Projects“What can we build together?”

NRK, Phase 2 Satellites

“Who has expertise I can trust?Shared Assessments, Services II

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Why is this relevant in a recession?

• Some back-of-the-envelop* math from the 2001 Cisco Fellowship program: layoffs cost 2.5 times a fellowship program for 2.3 more savings

• For significantly more internal & external good will

*purely my envelop!

Fellowship Program Cost SavingsAvg Salary (33%) 40,000$ 52,947$ Fringe (28.5%) 11,400$ 15,090$ TOTAL 51,400$ 68,036$

Layoff Cost SavingsSeverance (4 mo's) 40,000$ Outplacement (10%) 12,000$ Recruiting (30% salary) 36,000$ Training (10%) 12,000$ Productivity loss (3 mo's) 30,000$

130,000$ 154,200$

Layoff/Fellowship 2.5 2.3

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Advice from a Hockey Legend

“I skate to where the puck is going to be, not where it has been.” --Wayne Gretzky

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Further Reading (shameless plugs)

• My Blog: http://granger-happ.blogspot.com/

• My Web site: http://www.fairfieldreview.org/hpmd/EGHprofile.nsf

• My recent CSR article:http://www.masshightech.com/stories/2008/09/01/focus1-The-changing-face-of-corporate-social-responsibility.html

Questions?ehapp@savechildren.org