Viewpoints for Business in 2015: Progress and Purpose...- Howard Schultz, CEO, Starbucks “Proactive disclosure is now the expectation in the stakeholder community.” – Matthew

GlobeScan Webinar Viewpoints for Business in 2015:

Progress and Purpose

15 January 2015

2 © Copyright 2015 GlobeScan Inc.

PRESENTERS

Chris Coulter CEO

Femke de Man Director

Caroline Holme Director

James Morris Director

Eric Whan Director

Risk and Opportunity for Reputation and Trust

Transparency and Engagement

Corporate Purpose

Market Opportunity: The Aspirationals

> > > > Moderator >


EVIDENCE AND IDEAS. APPLIED

Femke de Man

Risk and

Opportunity for

Reputation and

Trust


THE WORLD HAS CHANGED

Low trust is the new normal for businesses:


BENEFITS OF STRONG REPUTATION

A strong reputation delivers three types of equity:

• Stakeholder Equity: Greater opportunities for partnerships and market entry, more influence on policy and better risk management

• Brand Equity: Increased market share,

enhanced customer and investor loyalty and stronger supplier allegiance

• Talent Equity: More motivated work force,

higher employee retention and increased talent attraction


STRONGER INTERNAL ALIGNMENT ALLOWS FOR BETTER

MANAGEMENT OF RISKS AND OPPORTUNITIES

Caroline Holme

Transparency

and

Engagement


TRANSPARENCY AS DRIVER OF TRUST

‘Being open and honest’ is a key

driver of trust in brands


LEADERS AGREE

“The currency of leadership

is truth and transparency.”

- Howard Schultz, CEO, Starbucks

“Proactive disclosure is now the expectation in the

stakeholder community.” – Matthew Kirk, Vodafone

“Listening is really critical, being receptive, and working closely with key stakeholders.”

– Kerry O’Callaghan, GSK

“Today we can open it up and listen to everybody.”

– Harriet Lamb, Fairtrade International


BENEFITS OF TRANSPARENCY

• Strong Reputation

• Talent Equity

• Sustainability Performance


NEED FOR IMPROVEMENT


DIFFERENT TOOLS: COLLABORATION FORUMS

James Morris

Corporate

Purpose


BIGGERING FOR BIGGERING’S SAKE

The Once-ler was

intent on “biggering”.

His purpose was simply

to sell “more Thneeds”

and to bigger his money, “which

everyone needs.”

(The Lorax by Dr. Seuss, 1971)

But we know he

ignored The Lorax and

was “left ‘neath the bad smelling sky” with

just his “big empty

factory.”


DEFINING CORPORATE PURPOSE

An explicitly stated vision that defines the

value that the company seeks to create,

directs key business decisions in the way the

value is created, defines how it contributes to

society, and aligns everyone in the business

towards a common purpose.


WHY CORPORATE PURPOSE?

Little

attachment 73% of all brands could disappear and consumers wouldn’t care.

Employees want to believe 72% of college students

want a job in which they

can make an impact.

A lot of external

pressures on

business.

is at an

all-time

low

(Havas Meaningful Brand Index 2013) (Net Impact: What Workers Want Report 2012)


LEADERS RECOGNIZE THE NEED

Janet Voûte, Global Head of Public Affairs, Nestlé “[Corporate purpose] is essential. The shift at Nestlé from being a food and beverage company to being a nutrition, health and wellness company is all about purpose. It is not only a clear business strategy it addresses obvious societal needs. You will see other companies making this kind of shift. You need clarity of purpose to address business and societal needs in a targeted fashion.”

Ola Lindell is the Commercial Director, IKEA

“People the world over crave more meaning in their lives. If we as businesses can’t make our business meaningful to human beings in their own lives, we’ll miss the opportunity to be truly leading brands in the marketplace of today and tomorrow.”


LEADERS RECOGNIZE THE NEED

“Leadership is not just about giving energy but it's unleashing other people's energy, which comes from buying into that sense of purpose. But if that purpose isn't strong enough in a company, if the top doesn't walk the talk, then the rest will not last long. The key thing for CEOs is to make that a part of your operating model.”

Paul Polman, CEO, Unilever


“BIGGERING” WITH PURPOSE

Nourishing families so they can flourish and thrive.

Our purpose is to use the power of communications to make a better world. By bringing together the best networks and technology with the expertise of our people, we make connections and create new possibilities.

Our purpose is to make sustainable living commonplace. We work to create a better future every day, with brands and services that help people feel good, look good, and get more out of life.

To connect people to what's important in their lives through friendly, reliable, and low-cost air travel.

Eric Whan

Market Opportunity:

The Aspirationals


A RECEPTIVE AND ENGAGED SEGMENT OF THE POPULATION READY

FOR PURPOSEFUL COMPANIES

Mat

eri

alis

m

Sustainability


ASPIRATIONALS ARE EVERYWHERE

China 51%

India 58%

USA 34%

UK 41%

Russia 47%

Spain 32%

Peru 42%

South Korea 53%

Germany 23%

Argentina 21%

Indonesia 46%

Mexico 21%

Brazil 33%

% of Population Who Are Aspirationals 18 Countries, 2014

Pakistan 38%

Australia 40%

France 24%

Nigeria 43%

Canada 41%


TRUST BY INDUSTRY SECTORS


PANEL DISCUSSION AND Q&A

Chris Coulter CEO [email protected]

Femke de Man Director [email protected]

Caroline Holme Director [email protected]

James Morris Director [email protected]

Eric Whan Director [email protected] @cdjcoulter @femdeman @CarolineEHolme @JimAtGlobescan @EricWhan

mailto:[email protected]





https://twitter.com/cdjcoulter

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https://twitter.com/EricWhan

THANK YOU FOR

JOINING US

TODAY!

GlobeScan delivers evidence, insights and ideas that build value for clients through stronger stakeholder relationships. Uniquely placed at the nexus of reputation,

brand and sustainability, GlobeScan combines rigorous research with creative and challenging thinking to instill trust, drive engagement and inspire innovation within,

around and beyond our clients’ organizations.

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Documents

Viewpoints for Business in 2015: Progress and Purpose...- Howard Schultz, CEO, Starbucks “Proactive disclosure is now the expectation in the stakeholder community.” – Matthew