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Conference KeyNotes
The Triple Bottom Line: Not a Zero Sum Game
from the 2012 Corporate Citizenship and Sustainability Conference
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Introduction
Thomas Singer is a researcher in corporate leadership at The
Conference Board. His research focuses on corporate social
responsibility and sustainability issues. In addition to his work
at The Conference Board, Singer serves as an independent
consultant advising on corporate sustainability strategy. Prior
to joining The Conference Board, Singer worked with Blu
Skye Sustainability Consulting and SustainAbility, helping
clients embed sustainability into their core business. Over his
career, he has supported engagements with industry leaders
across sectors, focusing on strategy development,
opportunity assessment, competitive analysis, and
stakeholder engagement. He began his career as a
management consultant with Kaiser Associates, advising
clients on white space opportunities, competitive analysis,
and benchmarking. Singer is a graduate of Tuft University.
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Introduction
CB Bhattacharya is Dean of International Relations and
E.ON Chair Professor in Corporate Responsibility at
ESMT European School of Management and
Technology in Berlin, Germany. He is an international
expert in business strategy innovation aimed at
increasing both business and social value. His
research and teaching focuses specifically on how
companies can use underleveraged “intangible assets”
such as corporate identity and reputation, membership
and brand communities, and corporate social
responsibility and sustainability to strengthen
stakeholder relationships.
CB Bhattacharya, Dean of International Relations E.ON Chair in Corporate Responsibility ESMT, European School of Management and Technology
The Conference Board
Corporate Citizenship & Sustainability Conference
Keynote Webcast
October 9, 2012
The Triple Bottom Line:
Not a Zero Sum Game
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Doing Well
Doing Good
Doing well by doing good
Doing Well Doing Well
Doing good
CR
Doing well
Strategic CR
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“A company’s long-term success, and sometimes even existence, is
inextricably tied to its stewardship of not just its own well-being but also of the
natural and social environment in which it operates.”
Triple Bottom
Line
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Stakeholder
Reactions
CR
Inputs
Business
Outcomes
Societal
Outcomes
CR
Value (Economic,
Social,
Environmental) ?
Two routes to CR value: direct & indirect
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Direct route to CR value
“Reducing your emissions goes hand-in-hand with reducing your costs.” (Bob Gordon, British Retail Consortium) Marks & Spencers Plan A Investment £40 million Revenue £50 million http://www.youtube.com/watch?v=aIrHzxkiaeE&feature=related
• Reduced total carbon emissions by 8 percent
• Improved store energy efficiency by 19 percent
• Reduced store refrigeration emissions by 18 percent
• Improved general merchandise delivery fleet efficiency by 30 percent
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Domain
Investment
Level
CR INPUTS CR VALUE
Business
Social
Environmental
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Stakeholder reactions to CR
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Research overview
• Mix of qualitative and quantitative methods
− Focus groups, depth interviews
− Surveys, experiments
− Secondary data analysis
• Multiple companies
− Procter & Gamble, General Mills, Walmart, Target, Danone, more
• Stakeholder groups: consumers and employees (several 000’s)
• Geographic focus: U.S. and Europe
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How stakeholders interpret CR
Unity
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Understanding
Awareness
Attributions
Participants perceive both intrinsic (care for the community) and extrinsic (way to market products) motives
“It’s a form of marketing to get their products out but it also helps the community.”
“They want to help the community but also to make a name for themselves and gain popularity.”
Endorse extrinsic motive
“It‘s good because they are going to help us along with themselves.”
Effectiveness
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CR initiatives that fulfill “customer” needs create more value
• Functional benefits
• Identity related benefits
Leads to well-being, loyalty, positive word of mouth
• “One of the things that keeps me here is some of the positive things that we do in
the community.”
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Usefulness
10/19/2012
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Unity
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Intent to Leave
Loyalty
CR Associations
CR Self-esteem
Identification
Understanding
Unity
CR Value
Usefulness
CR Efficacy
CR Work-Home Integration
Work Effort
.11**
.05**
.12**
.08**
-.94**
.19**
.98**
Test of 3U’s framework - employees
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Test of 3U’s framework - customers
Identification
Purchase intent
Resilience to Negative
Information
CR
Efficacy
Self-esteem
Understanding
Unity
CR Value
Usefulness
CR
Genuine Concern
Premium
Yogurt study
.14**
.04**
.51**
.66**
.40**
.16**
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0
1
2
3
Tobin
's q
High InnovativenessCapability
Low InnovativenessCapability
2 4 6 8 2 4 6 8
CR Ratings CR Ratings
Mar
ket V
alue
CR integral part of business strategy
0
1
2
3
Mar
ket V
alue
High Product Quality
Low Product Quality
Luo & Bhattacharya (2006)
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Overall insight
Does it pay to be good?
- Two words:
“It Depends”!
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Mainstreaming sustainability: Sustainable Business Roundtable (SBRT)
Why SBRT?
• Managers unclear how to use sustainability to their advantage
• Sustainability department “outshouted” by other departments with shorter term pressures
Value Proposition
• Pair-up sustainability officers with other departments (Procurement, HR, IR…) to foster collaboration
• Develop shared understanding to mainstream sustainability
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Thank You!
Professor CB Bhattacharya
E.ON Chair in Corporate Responsibility
Dean of International Relations
ESMT European School of Management and Technology
Schlossplatz 1 10178 Berlin
Phone: +49 (0) 30 21231-1528 Fax: +49 (0) 30 21231-1281
cb@esmt.org www.esmt.org
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