Welcome to

Jeremy Galbraith, London, 2 September

Our inspiration

”Performance with a Purpose is based on the belief that companies can – and must – achieve business and financial success while also leaving a lasting and positive imprint on society.”

– Indra Nooyi, Chairman PepsiCo The responsible company, The Economist, 15 November 2007

Purpose and Performance 2008

Key findings

40 % of a company’s reputation is determined by its purpose and 60 % by its performance Companies who deliver on purpose and performance are viewed as role models and are also more trusted However, there is an in-built tension between these two objectives, and leadership team must find a way to strike the right balance

Purpose & Performance 2008 survey with PSB - across 11 European countries - 200 leading corporate executives and opinion-makers

Corporate Purpose Impact 2010 & 2011

Key findings

A strong and well communicated Corporate Purpose can contribute up to 17 % of a company’s financial performance

Corporate Purpose builds trust with stakeholders

Corporate Purpose is growing as companies increasingly understand its impact on financial performance and the importance of their social role

Energy, Pharmaceutical & Healthcare and the Technology industries score above the average meanwhile Banking and insurance sectors score below

Philips, Nokia, L’Oreal and BASF led the Corporate Purpose Impact Ranking 2010

Philips was the only company to reconfirm its top spot in 2011 joined by Adidas, Henkel and Statoil

Corporate Purpose Impact 2010 qualitative study and ranking 2010 & 2011 with IMD – systematic outreach to 213 companies

Trust & Purpose survey 2011

Q: Which of the following is closer to your view?

“Consumers believe most companies lie” Many feel that companies have become more dishonest over time and that they cannot be trusted with personal information

Trust & Purpose study 2011 with PSB - survey of general population in 12 European countries on the challenge of restoring trust

THE POWER OF PURPOSE 2013 Methodology

Burson-Marsteller commissioned PSB to undertake independent, in-depth, qualitative, interviews of Communication Directors from 20 of the world’s leading companies to obtain a snapshot of opinion from some of Europe’s leading communications professionals The interviews took place between April – June 2013 The research was informed by previous studies carried out by IMD Business School, with this year’s study focusing particularly on topical themes of transparency, change and crisis recovery

THE POWER OF PURPOSE 2013 Methodology

Participating companies:

Key for many participants was the way Corporate Purpose can be used within an organisation to motivate and inspire staff and build a real attachment to the company.

THE POWER OF PURPOSE 2013 Key Conclusions

At the management level, Corporate

Purpose is the beacon which guides and directs key business decisions, informing strategy and ensuring that everyone is aligned across global businesses.

THE POWER OF PURPOSE 2013 Key Conclusions

First and foremost corporate purpose is a

corporate strategy that drives business decisions. Communicating it is the next step.

THE POWER OF PURPOSE 2013 Key Conclusions

Corporate purpose tends to gain in importance at a time of organisational transformation. Three scenarios where corporate purpose was identified as particularly relevant: • Following a change of leadership • Following a merger • For re-establishing and refreshing a brand

THE POWER OF PURPOSE 2013 Organisational Transformation

THE POWER OF PURPOSE 2013 Reputational Recovery

Purpose is also a key strategic tool for companies in a crisis, providing a story to tell and as a way of countering accusations that are perceived to be inaccurate. For corporate purpose to be effective, it should be in place before a crisis hits.

THE POWER OF PURPOSE 2013 Transparency

Transparency around purpose is also critical internally as it creates a culture which unites employees, instils shared values and provides motivation and inspiration. Companies feel there is more danger today associated with a lack of transparency than too much, especially given social media.

Framework for developing Corporate Purpose

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Our Purpose

Our purpose is to help our clients define and bring to life their purpose by harnessing the power of the dynamic world of communications – and to do this responsibly in today's highly connected world. In doing this, we want our firm’s culture to inspire our people to bring a powerful blend of strategic thinking, creativity, evidence-based communications and an unfailing dedication to rigorous implementation to every client.

“Screw Business As Usual”

– Richard Branson, CEO Virgin