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CSR

As part of Echo Research's Ethics and Environment Programme employees are able to support their chosen charity for a day during the working week, so in order to take full advantage of getting out of the office, I decided to offer my time to the PSP Association!

PSP stands for Progressive Supranucleur Palsy and is a debilitating, terminal illness that leaves the person living with it unable to walk, talk, see, or swallow. There is currently no cure or treatment for the disease. See the infographic for first signs and symptoms of the illness.

My volunteer work for the PSP Association consisted of helping out at a support group meeting, where carers and those living with PSP could meet health care professionals, and more generally have informal discussions with each other. In addition to these goodwill efforts, I also lent a hand last Sunday, on London Marathon Day.

The day's activities consisted of blowing up balloons, precariously balancing on my boyfriend's shoulders to affix directional signs to lampposts to guide the runners to our 'after party', cheering on and congratulating the fabulous athletes, ensuring that food was plentiful and the runners were catered for, and not least, to raise awareness of PSP.

This week is awareness week 2012 for the PSP Association; "A million to beat PSP". Please help us to raise awareness of this cruel disease by 'following' and 'liking' the PSP Association. The disease is often mis-diagnosed and is still relatively unknown, even by health care professionals, so every little bit of increased awareness helps!

'CR' or 'CSR' or 'corporate sustainability' - whichever name you like best, Echo has a new qualification in it.

Last month I sat with French, Swiss, Greeks, Russians, Lebanese and Chinese in a Brussels hotel debating what good sustainable behaviour means and how to become better guides to our clients and colleagues on best CR practice. We'd come together at the global Centre for Sustainability and Excellence to stay abreast of the latest thinking about living and communicating corporate responsibility (CR). It was a chance to consider companies' greatest lapses into unacceptable behaviour, and their more elevated moments.

What became clear to me as we talked was how important 'due diligence' on reputational risks is. The mistake some companies make is to question stakeholders directly themselves about these things. But if the definition of reputation is "What people say about you when you've left the room", then doing your own investigations may not be the best way of getting at the unvarnished truth.

I was impressed to see how much value the workshop's moderators set by research. They saw it as a big tranche in the cycle of running a good CSR programme. The phases of identifying stakeholders, their needs and expectations, the opportunities and risks that might come from them, were all on the agenda.

Communicating and assessing success were said to be vital too - how the social and mainstream media deliver an echo of CR, as a distorted noise or a perfect sound replica.
CR reports were thought to need a test-bed of reader comment about how unique or transparent they are, or else risk being so much 'white noise'. Numbers alone are not illuminating, people said; measuring even distant 'echoes' and perspectives qualitatively gives important feedback on the journey ahead.

The risks from supply chains, and the need to measure supplier conformity to standards, came over as the 'hottest and hardest' topic. Here again, having access to research teams in remote and culturally disparate territories was important in winning intelligence about risks. It was about knowing how different stakeholders march to the beat of different drums, and comparing and reconciling the drumbeats - and for that, a good understanding of cultural relativity was crucial.

After writing a mini-thesis on the ideal CSR programme, and two hard-working, lively days in Brussels, Echo acquired another accreditation to add to the letterhead. (see above)

Brands are promises. To be strong, those promises have to be lived and authentic.

And brands are judged by the company they keep - think Disney (& Coca Cola & HP), think McDonalds (& Dreamworks), think WWF (& BSkyB), think the 2012 Olympics (& Visa), even think Accenture & Tiger Woods. These associations can be powerful metaphors until there is a disconnect with your target audience's values. And that's what's happened here.

Part of News of the World's brand promise has been as the people's champion - the nation's newspaper fighting 'little people's' battles against the large, rich and powerful. Now they've turned against the ordinary people - soldiers' widows, parents of murdered children - and look more like the cynical corrupt elite they claim they target. Their brand promise is broken. If but on that basis, News of the World has become 'damaged goods' and would struggle to survive this.

Legal issues and ethics aside, which the full and proper investigation should confirm or otherwise, the sense of betrayal that such a significant and trusted 'people's newspaper' would encourage, allow or turn a blind eye to abusing the vulnerable is staggering. People will remember that - those in Liverpool are still boycotting The Sun after its Hillsborough coverage.
For major advertisers, to do nothing, in terms of changing allegiances or stopping the association, indicates tacit approval and acceptance - and potentially tarnishing their own reputation as uncaring and socially irresponsible.

That is why the likes of Sainsbury's, NPower, Boots, O2 and even the Royal British Legion would not wish to be connected with the distaste that the hacking scandal has provoked among the general public, many of whom swell News of the World's significant readership. Keeping their own reputation intact by being true to their and their customers' core values matters more to them than the effectiveness of advertising through what was once the largest circulation newspaper in the country.

This is a legal matter, but it's also emotional, commercial and political. More has yet to come out and other media titles won't let this die.

Such as today's Economist piece on 'Streets of Shame':

In the early days of corporate social responsibility (CSR), it was enough to plant a few trees and attend the odd ribbon-cutting junket or photo opportunity. Companies could continue to support lax labour practices, and make few - if any - inquiries into the environmental conduct of their suppliers. So long as profits rolled in, customers - and shareholders - were satisfied. CSR-associated activities were seen as 'bolt-on', rather than critical to business. Indeed, our research shows that in 2000, only 11% of CEO's believed CSR to be integral to improving commercial success. Occasional CSR activity was enough, in a world where sustainable practices were seen as just another PR-related function.

Fast-forward to 2010: Global media attention has skyrocketed, trust and reputation are directly linked to sustainable practices, and both have an immediate, measurable impact on the bottom line. Clearly, the days of superficial 'greenwashing' are behind us, as evidenced by Echo's recent study 'A World in Trust,' analysing trends and practices in global CSR.
Working with the International Business Leaders Forum (IBLF), Echo's survey of over 50 global business leaders included Diageo's Paul Walsh, Coca-Cola's John Brock, and Whitbread's Alan Parker CBE among others, to analyse the latest thinking and insights in CSR. The qualitative data was complemented by business media content collected by media search engine Echo Sonar, and then scrutinised by Echo's analysts.

Our findings tell the story of a shifting landscape. Stakeholder research, feedback and co-creation are seen as key elements, while stand-alone CSR departments are in steady decline.

Indeed, an astonishing 96% of those surveyed told us that sustainability efforts needed to be integrated into their respective strategies and operations. Furthermore, 88% believe that businesses should demand similar commitments from suppliers.

This recognition comes at a critical point in time. Following BP's 'summer of the spill' and the more recent - and scarcely less devastating - toxic sludge in Hungary, companies recognise the increased global scrutiny that is upon them.

Importantly, as resources and raw materials are subject to increasing scarcity and price pressure, companies must not only improve conservation, but also drive innovation. An overwhelming 91% of interviewees believed that their companies would need to employ new technologies to address sustainability issues in the next five years in order to remain competitive. This is a clear example of sustainable practices powering business growth, and of these practices playing a greater role in long-term strategy.

Despite the fact that there has been recent doubt as to the business value of CSR, 69% of those surveyed believed that companies dedicated to long-term sustainability would see better financial results. Indeed, many organisations are holding fast in their commitment to sustainability as a business imperative, despite the decelerating effect of the recession.

The challenge is clear, the rewards evident: those companies that best integrate CSR into overall business practices will reap the rewards born of increased consumer confidence. Indeed, it was one of our interviewees who put it best, tying business and CSR together, as he said "Sustainability is conducting your business in such a way that future generations can do the same".


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From Echo Research Global Brand and Reputation Auditors - Call 44(0)20 7608 1113