Communicating to scepticalg pbut engaged audiences

Lundquist Breakfast Meeting - Zurich, Thursday 3 February 2011

2011-02-04 | Page 1

The evolution of internet use in a few years…The world’s top websites 20051. Yahoo!

The world’s top websites 20111. Google*

2. Microsoft Network3. Google

g2. Facebook*3. YouTube*g

4. Yahoo! Japan5. Baidu.com

4. Yahoo!*5. Windows Live*

6. sina.com7. EBay

6. Baidu.com7. Blogger.com*

8. Passport.net9. sohu.com

8. Wikipedia*9. QQ.com

10.163.com 10. Twitter* Source: Alexa* Also in top 10 in CH

What about 2015?2011-02-04 | Page 2

What about 2015?

Search-based navigation

2011-02-04 | Page 3

Role of social networks

2011-02-04 | Page 4

The CSR Online Awards approachpp

2011-02-04 | Page 5

The evolution of the research2007: research and start-up phase

2008 • Italy ranking only

2009 • International

ranking (global

2010 • 2nd global,

Swiss UK and• 40 companies assessed

• 66 criteria

ranking (global plus 4 countries) 170 companies

Swiss, UK and German editions

200 companies66 criteria• 2 macro areas

• 80 respondents

assessed• 76 criteria

• 184 respondents

77 criteria• 3 macro areas

to survey • 184 respondents• 1st seminar &

awards

• 256 respondents• Zurich,Vienna

LondonLondon

Next edition kicking off in Spring 2011…

2011-02-04 | Page 6

CSR Online Awards process

Feedback & monitoring ofmonitoring of

trends

AnnualEvaluations & Annualsurvey ofexperts

Evaluations & publication of

results

Definition and weighting of

criteria

2011-02-04 | Page 7

A user-based approach• The CSR Online Awards is different

because it takes audience’s point ofbecause it takes audience s point of view• Over three years, more than 500 y

responses have been received from a wide range of CSR professionals and sector experts globallyand sector experts globally

• We set a high standard because audiences are critical, sceptical and exacting

• We detect a tendency for disclosure f fi i l i f ti t bof non-financial information to be

auto-referential and self-serving

2011-02-04 | Page 8

Key findings of 2010 expert survey• Communication of CSR needs to move away from annual disclosure towards a

real-time relationship: stakeholders want regular flow of information, inreal time relationship: stakeholders want regular flow of information, in variety of formats and media• Only a quarter of respondents think annual CSR reporting is adequate

with 38% saying infra annual updates would be “very useful”with 38% saying infra-annual updates would be very useful• Key information for website users includes environmental and social data,

targets, code of ethics and supply-chain management• Social media are emerging as an important space for discussion and sharing:

• A quarter of those giving feedback to companies use web-based chats, forums, social media and blogs – in line with those writing letterso u s, soc a ed a a d b ogs e t t ose t g ette s

• LinkedIn is most popular social media platform for CSR - used twice as much as TwitterM th thi d f d t d CSR l t d bl t l t• More than a third of respondents read CSR-related blogs at least once a week

• But most companies are failing to grasp their importance

2011-02-04 | Page 9

What are most influential channels?

• There is little difference between report and website• Companies over-estimate importance of CSR report

2011-02-04 | Page 10

Companies over estimate importance of CSR report

Focus on engagement

2011-02-04 | Page 11

Source: Lundquist CSR survey 2010

Impact on the research• Moderate inclusion of social media and Web 2.0 elements

New criterion on social media presence• New criterion on social media presence• Increased scoring for CSR blogs

• Dedicated section of protocol for “ongoing engagement”Dedicated section of protocol for ongoing engagement• Increased scoring for practical email test• Increased scoring for CSR news and events• New criterion on stakeholder engagement process

• Focus on reporting via website:• Revision of criteria to reward “web-based” reporting (CSR section is

the core space for reporting)• Focus on website for assurance statementsFocus on website for assurance statements• Importance of visibility of CSR report beyond the CSR section

2011-02-04 | Page 12

Comments from survey respondents“Generally transparent sharing of relevant data” “Regular updates

as opposed to“The key thing online communication can give

is up-to-date transparent information”

as opposed to static reporting”

“Accessibility. Usability. Sustainable communication”

“Information has to be clear, concise and comparable for end-users”Sustainable communication

“The most important element of CSR communications ”“Keep it simple” online is stakeholder engagement using Web 2.0 tools”“Keep it simple”

“Websites are more updated but it’s more difficult to find one’s way”

“Credible stakeholder engagement and verification of documents”

2011-02-04 | Page 13

Results from the CSR Online Awards Switzerland 2010 rankingSwitzerland 2010 ranking

2011-02-04 | Page 14

CSR Online Awards ‘Switzerland’ 2010• Second edition of Swiss ranking, taking into consideration 20

companies included in the benchmark SMI indexcompanies included in the benchmark SMI index• CSR (or equivalent) section of the corporate website evaluated

twice by Lundquist analystsy q y• Average score of 37.5 is down 1.5 points from last year and

lower than• U.K. (46.4 for 30 biggest companies in the FTSE100 index)• Germany (44.6 for DAX 30)

U S (44 8 f 20 i i DJSI Gl b l 80 I d )• U.S. (44.8 for 20 companies in DJSI Global 80 Index)

2011-02-04 | Page 15

CSR Online Awards ‘Switzerland’ 2010 – top 10

Source: Lundquist CSR Online Awards ’Switzerland’ 2010

2011-02-04 | Page 16

CSR Online Awards ‘Switzerland’- highlightsMost Swiss companies fail to provide stakeholders with adequate CSR information online and to exploit the internet to establish dialogue Of the 20information online and to exploit the internet to establish dialogue. Of the 20 companies studied…

• only 35% have a main section of the corporate website dedicated to CSR • 35% do not present a CSR report within the related website’s section • 30% do not provide CSR contacts

40% do not mention the code of ethics or provide a link to the document• 40% do not mention the code of ethics or provide a link to the document from this section

• roughly 60% of the evaluated websites do not provide CSR targets g y p g• 45% do not present any data or information on environmental

performance l 10% l d ib d th i t k h ld di l• only 10% properly described their stakeholder dialogue process

• only 10% use social media for CSR

2011-02-04 | Page 17

Breakdown of performance by macro area

Source: Lundquist CSR Online Awards ‘Switzerland’ 2010

2011-02-04 | Page 18

Performance by sectionAverage score of Swiss companies (%age of total points available in

13 sections of evaluation protocol)

Source: Lundquist CSR Online Awards ‘Switzerland’ 2010

2011-02-04 | Page 19

2010

Three challenges for Swiss companies

• Challenge 1: Concrete content

• Challenge 2: Engagement

Challenge 3 integration• Challenge 3: integration

2011-02-04 | Page 20

We welcome your feedbackEmail: james.osborne@lundquist.itComment: www lundquist it/blogComment: www.lundquist.it/blogConnect: www.linkedin.com/in/jabosborneFollow: www.twitter.com/jabosborne and www.twitter.com/Lundquistj qView: http://www.youtube.com/user/Lundquistsrl#p/uLike: www.facebook.com > CSR Online Awards fan pageFollow: www.justmeans.com > Lundquist SrlShare: http://www.slideshare.net/Lundquistsrl

Have your say! Sign up for the 2011 CSR Online Awards survey: csr@lundquist.it@ q

Thank you!

2011-02-04 | Page 21