The state of corporate Citizenship

THE STATE OF CORPORATE CITIZENSHIP

Weathering the Storm

The Hitachi FoundationMark Popovich

March 25, 2010

About The Hitachi Foundation

The Hitachi Foundation

Established in 1985 by Hitachi, Ltd.

Mission: To forge an authentic integration of business actions and societal well-being in North America

Means: Discover and expand business practices that measurably improve people’s lives and enhance business value

2009 2007 2005 2003

The State of Corporate Citizenship Surveys

The Hitachi Foundation

Why The State of Corporate Citizenship Surveys?

The Hitachi Foundation

Business plays a critical role in addressing the issues of concern to The Hitachi Foundation We want better data to support this claim

Social sustainability is not a current focus and the CC field misses small and mid-sized firms We think these are mistakes

Social Sustainability is defined narrowly We think it needs expanding

About the Survey

The Hitachi Foundation

Survey conducted every two years with the Boston College Center for Corporate Citizenship and Globe Scan

Tracking how corporate citizenship attitudes and practices are changing over time

July 2009 – Unique opportunity to track the recession’s impact

Includes 756 small, medium, and large firms

The Hitachi Foundation’s interest is in company practices related to low income people and communities

Who Responded?

The Hitachi Foundation

0%

10%

20%

30%

40%

50%

60%

CEO/Pres VP Director Sr. Executive

Job Title of Respondents

2009

2007

Firm Size

# Percent

Small (<99)

270 36%

Medium (100-999)

183 24%

Large (>1000)

303 40%

TOTAL 756 100%

7

Selling to

Who Responded?

Who Responded?

The Hitachi Foundation

0%5%

10%15%20%25%30%35%40%

Sectoral Distribution of Respondents

2009

2007

Recession Impacts

Layoffs 27% of companies increased/greatly

increased layoffs

The Hitachi Foundation

23%

13% 12%

26%

11%7% 8%

Dec by >15%

Dec by 6-14%

Dec by 3-5%

Stable Inc by 3-5%

Inc by 6-14%

Inc by >15%

Revenues/Sales Momentum36% Sharp Decline 49% Stable

15% Significant Increases

Recession Impacts

Corporate Citizenship Strong

The Hitachi Foundation

54% of respondents see corporate citizenship as even more important in a recession

Actions make the case!

Attitudes

The Hitachi Foundation

Q: How Important is each of the following for your company role in society?

Ethical Valuing Accurate Maximize MarketingPractices Employees Finances Profits Products/Services

Attitudes

The Hitachi Foundation

Q: How much do you agree or disagree with the following:

Practice: Sustainable Products and Services

The Hitachi Foundation

Practice: Low Wealth Communities

The Hitachi Foundation

Q: To what extent is your company involved in…

46%

30% 31%

22%27%

43%

23%

29% 28% 29%

Train low-wage workers

Hire f rom distressed

communities

Improve community conditions

Locate facilities Train people in community

2009

2007

16%

36%

52%

16

Lower-wageworkers are an integral part of the business modelfor more than half of all businesses

Practice: Skill Development

The Hitachi Foundation

To what extent does your company supports the skill development, education, and career advancement of employees earning less than $40,000 annually

Practice: Community Support

The Hitachi Foundation

68%60% 57%

21%

69%65% 64%

30%

Cash donations*

In-kind donations

Volunteering Community investing

2009

2007

Practice: Community Support

How important is improving conditions In your community to your company’s role in society?

Top Areas of Community Support

10%

40%

20%

30%

Corporate Foundation Giving

The Hitachi Foundation

Source: Key Facts on Corporate Foundations,Foundation Center, May 2009

Corporate Foundation Giving

The Hitachi Foundation

Source: Key Facts on Corporate Foundations,Foundation Center, May 2009

2,500 Corporate Foundations

Gave $4.4B

Accounting For 10% ofAll FoundationGiving