How humanized businesses are growing by establishing a purpose beyond profits and a people-centered culture, championing sustainability, and respecting consumers' power. Includes select findings from Euro RSCG Worldwide's The Future of the Corporate Brand study, plus information on Good for Business: The Rise of the Conscious Corporation (Palgrave Macmillan).

1. The Four
Cornerstones
of the
Conscious
Corporation

2. 200+ Years of Corporate Ascendancy…
U.S. population in 1776: 2,500,000
# of people employed by Wal-Mart
in 2008: approx. 2,100,000
Corporations have grown so large
that 51 of the world’s largest
economies are now businesses,
not countries
Corporate power has become so
concentrated that sales of the 200
largest corporations represented
more than 1/4 of total world
economic activity in 2000

3. …Leading to Scandals and Abuses of Power…

4. …and Loss of Trust
Lowest in history of
Gallup Poll
Globally, 62% of consumers (77% in U.S.) had less trust in big business
in early 2009 compared with a year earlier [Edelman’s Trust Barometer]

5. But There’s a Yang to That Yin
Even as people have grown more wary of corporations, they have also
come to want and expect more from them
Why?
– Government has historically fallen short (tattered safety nets,
inability to solve complex global problems)
– Consumers live closer to business today (strong emotional
connections to brands, deeper awareness of corporate activities)
– Empowered public demands payback (acutely aware of disconnect
between what corporations rake in and what they give back)
64% 74% 56%
I have become more Businesses bear as much Corporations have become a
interested in corporations’ responsibility as government more important part of our
conduct and brand image for driving positive social culture
over the past few years change
Source: The Future of the Corporate Brand, Euro RSCG Worldwide

6. But There’s a Yang to That Yin
Even as people have grown more wary of corporations, they have also
come to want and expect more from them
Why?
What once was the view of a leftist fringe
Government has historically fallen short (tattered safety nets,
inability to solve complex global problems)
is now mainstream thinking
Consumers live closer to business today (strong emotional
connections to brands, deeper awareness of corporate activities)
The empowered public demands payback (acutely aware of
disconnect between what corporations rake in and what they give
back)
64% 74% 59%
I have become more Businesses bear as much Corporations have become
interested in corporations’ responsibility as government better positioned over the
conduct and brand image for driving positive social past 5 years to create
over the past few years change positive social change

7. And Corporate Leaders Are Stepping Up to the Plate
$25MM to 1st
person or
organization to
come up with a
viable
way to remove
greenhouse
gases from
atmosphere
Comprising nearly 1/3 of total value of U.S.
stock market and employing 10MM+
workers, member cos have resources and
clout to get things done quickly
In 2008, Bill & Melinda
Disaster response task force has around- Gates Foundation
the-clock phone link to Department of dispersed $2.8BN in grant
Homeland Security and maintains “swat payments to health and
teams” capable of flying into any disaster development programs
site within 24 hours, assessing what’s (annual budget of UN
needed, and reporting back to both gov’t World Health
and corporate leaders Organization: $4BN)
MORE POWER MORE RESPONSIBILITY

8. An Opportunity: Reimagining the Corporation of the Future
Is Imbued with Human Values
– Augmenting business skills with vital
social skills, including the ability to
82%
listen, communicate, and empathize To be successful,
Builds Emotional Connections corporations of the
future will need to show
– Creating and maintaining a genuine a more “human” face
brand personality that draws the (e.g., by caring about
consumer in—making him or her want people—employees,
to engage with the company customers, suppliers—
and taking a more active
Inspires Trust
role in community and
– Earning trust over time by consistently social causes)
meeting obligations and fulfilling
promises
This Conscious Corporation of tomorrow will be
built on 4 cornerstones…
Source: The Future of Value, Euro RSCG Worldwide

9. THE FOUR CORNERSTONES OF THE
CONSCIOUS CORPORATION
1. A Purpose Beyond Profit
2. A People-Centered Culture
3. Champions Sustainability
4. Respects Consumers’ Power

10. Cornerstone #1: A Purpose Beyond Profit
With the correlation between reputation and profit proved, as
many as 9 in 10 Fortune 500 companies have dedicated
initiatives focused on corporate social responsibility
The most valuable reputation riches accrue to those companies
with a clearly stated—and understood—purpose beyond profit
85% 59% 50%
It is important that Over the past five years, I buy or refuse to buy
companies stand for corporations have become products based on a
something other than better positioned to create company’s expressed values
profitability positive social change and political/social activities
Source: The Future of the Corporate Brand and The Future of Shopping studies, Euro RSCG Worldwide

11. In the space of a decade, Google went from a college research project to a
publicly traded company with a brand value estimated at $86BN+, all while
seeking to live by its credos of “Don’t be evil” and “Work should be
challenging, and the challenge should be fun”

12. Whole Foods became the world’s fastest-growing retailer by building
its business on a core philosophy of “Whole Foods. Whole People.
Whole Planet.”

13. Green Mountain Coffee Roasters grew from a single café in 1981 to
>7,000 customer accounts in 2008 with a holistic approach to business
that is encapsulated in its motto: “Brewing a Better World”

14. Target has risen to #2 discount retailer in U.S. while donating $3MM+ each
week to the communities it serves

15. Cornerstone #2: A People-Centered Culture
The Conscious
Corporation treats people
well, including employees,
suppliers, and customers
60% 58% 49%
Big corporations do not I avoid shopping at stores Companies are not doing
share enough profits with all that don’t treat their enough in terms of
employees employees fairly respecting the rights and
needs of employees
Source: The Future of the Corporate Brand, Euro RSCG Worldwide

16. Zappos.com grew from $1.6MM in sales in 2000 to more than $1BN in 2008
(and was just purchased by Amazon for $850MM), achieved through a
relentless focus on customer service and a corporate culture centered on 10
core values; living up to the core values is 50% of every performance review

17. Since its founding in
1978, the Container
Store has seen average
annual growth of 20%
It has made Fortune’s
annual list of “100 Best
Companies to Work
For” for the past 10
years in a row

18. At Whole Foods,
team cohesion is
considered of such
importance that
teams are
empowered to do
their own hiring.
After a trial period,
any new employee
that doesn’t receive
the approval of at
least 2/3 of the team
is let go.

19. U.K.–based Tesco has
grown into world’s #3
grocery retailer and #1
online supermarket
In 2009, 52,000+ employees
shared in a £126MM payout
from Save As You Earn
investment program, reaping
returns of 45%–88% over 3–
5 years while economy was
tanking

20. Cornerstone #3: Champions Sustainability
73%
The most successful and
profitable businesses in the
future will be those that
practice sustainability
50%
Companies are not doing
enough in terms of making
environmental impact a core
factor in corporate decisions
Source: The Future of the Corporate Brand, Euro RSCG Worldwide

21. Since 2005, Wal-Mart has
sold 145MM+ CFL light
bulbs, saving customers
$4BN over life of bulbs and
eliminating need for 3 coal-
fired power plants
Working with suppliers to
make products 25% more
energy efficient within 3
years; by 2010, every air
conditioner sold will be
Energy Star rated and all flat-
panel TVs will be 30% more
energy efficient (energy
savings on TVs alone will be
enough to power 53,000+
single-family homes for a yr.)

22. As part of Plan A
sustainability initiative,
Britain’s Marks & Spencer
has significantly reduced
use of plastic bags by
giving customers bags
“for life” (if a bag wears
out, M&S will replace it
for free)
Industry surveys (e.g.,
Chatsworth FTSE 100
Green Survey and
Covalence Ethical
Ranking) show Plan A is
having a positive effect
on how people regard
M&S—retaining loyalty of
existing customers and
winning new business

23. Burt’s Bees has
committed itself to
delivering zero waste
to landfills and being
fully powered by
renewable energy by
2020

24. Cornerstone #4: Respects Consumers’ Power
The Conscious Corporation respects consumers’ increased
power by working with them in a more egalitarian, collaborative
way—and by offering opportunities for them to be part of the
business and brand
82% 86% 76%
As a consumer, I have a
Businesses need to open a I search for customer responsibility to censure
dialogue with their reviews online while making unethical companies by
customers purchase decisions avoiding their products
74% 51% 57%
Businesses must be I write online product or I have made a purchase
completely open and retail reviews decision based on a
transparent company’s conduct
Source: The Future of the Corporate Brand, Euro RSCG Worldwide

25. GE has made keeping the public informed a central tenet of its ecomagination
initiative; it accomplishes this through an annual ecomagination report, a
dedicated website (ecomagination.com), global conferences and events, and
advertising

26. In just 10 years, Innocent Drinks has managed to gain a 72% share of U.K.’s
smoothie market; each year, invites 100 customers to attend Annual General
Meeting, giving them an inside view of company’s business and a chance to
vote on upcoming initiatives

27. In 2008, despite global
downturn, Nike’s net
income soared 26%, to
$1.9BN, while earnings per
share grew 28%
Success is partly
attributable to Nike’s ability
to foster a sense of
connection and community
among its customers—e.g.,
Nikeplus.com (offering info,
support, and opportunities
to interact on- and offline
with fellow enthusiasts)
25-city Nike1 Human Race:
biggest one-day running
event in history, raised
some $3MM for charity

28. A more conscious approach to
business drives growth and
profitability

29. The Rewards of Reputation
Reputation has been shown to affect how a company is
perceived both internally and externally, and to influence such
factors as:
– Employee retention and hiring
– Product and service pricing
– Investor preference
– Vulnerability (a sterling reputation can serve as a protective
barrier in times of crisis)
– Credibility and trust
– Relationships with journalists, regulators, and NGOs
– Market cap (reputation has been found to account for as
much as 75% of the gap between a company’s book value
and market cap, according to Risk Management)

30. “ecomagination is not
meant to revamp the
brand at all; it’s about
good business sense.
It’s not an advertising
ploy or marketing
gimmick, GE wants to
do this because it is
right, but also we plan
to make money while
we do so.”
—Jeffery Immelt,
CEO

31. “Put simply corporate
social responsibility helps
us to attract shoppers to
our stores, recruit and
retain the best people,
form better partnerships
with our suppliers and
create greater value for
our shareholders.”
—Paul Myners,
Chairman, Marks &
Spencer

32. Early Response to
Good for Business

33. “Good for Business is
an excellent guide that
shows how
transparency and
engagement can
positively impact a
company’s reputation.
Readers can
immediately employ the
lessons revealed in the
book.”
Steve Fludder, Vice President,
ecomagination, GE

34. “With their ‘Four Cornerstones of the Conscious
Corporation’ framework, the authors have laid
out a clear and compelling vision of a new, more
effective way of doing business. Corporate
leaders who hope to own the future will heed
their advice.”
Justin B. Smith, President, The Atlantic

35. “Good for Business blazes a trail for
corporate executives who want to
succeed in the new economy. The
authors offer a big-picture vision
about the need for a more holistic and
‘humanized’ view of the corporation,
and they provide specific suggestions
on how to adapt to a world of
empowered consumers, heightened
transparency, and changed
requirements for leaders. A must read
for everyone in the C-suite and all who
aspire to get there!”
Dan Esty, Yale University and author of
Green to Gold

36. “In the emerging world of
extreme transparency,
customers and employees will
trust companies that are truly
making a difference in their
lives. Being good will trump
looking good. This book clearly
outlines winning brand values
and the behaviors that lead to
that most precious bond: trust.”
Stephen Quinn, Executive Vice President
and Chief Marketing Officer, Wal-Mart

37. Click here to
order Good for
Business on
Amazon

38. ALSO BY THE AUTHORS

39. Consumed: Rethinking Business in the
Era of Mindful Spending
Based on the Euro RSCG Worldwide New Consumer
study and written by two executives within Havas
Andrew Benett, Ann O’Reilly,
CEO, Arnold Content Director,
Worldwide and Knowledge
CSO, Havas Exchange, Euro
Worldwide RSCG Worldwide
Available in Bookstores July 2010
39

40. Advance Praise for Consumed
“People are getting serious
about making smarter, more “Benett and O’Reilly offer insight
mindful choices and are looking and guidance about how best to
for companies that give them communicate with and build
what they want. Consumed acts relationships with today’s more
as a navigational aid, thoughtful consumer. It is
empowering business leaders to essential reading for anyone
anticipate and meet these newly seeking to win the in the post-
emerging needs.” recession marketplace.”
—Becky Saeger, EVP and CMO, —Mike O’Driscoll, Managing
Charles Schwab Corporation Director, Jaguar Cars

41. Advance Praise for Consumed
“This is an important book
for executives because the
world is clearly
“A permanent shift has taken place among changing. Business
consumers. They are far more engaged in every leaders need to
aspect of marketing and manufacturing, and brands understand the trends
that want to win and retain their loyalty will need to highlighted in Consumed
listen better, react faster, and be more nimble in and think deeply about the
everything they do. This book offers a fresh and vital implications for their
perspective on those actions that will be most brand.”
essential to future growth.”
—Tim Calkins, author of
—Christian McMahan, CMO, Heineken USA Breakthrough Marketing Plans

42. Click here to
order
Consumed:
Rethinking
Business in the
Era of Mindful
Spending on
Amazon

43. Media Inquiries
For inquiries regarding Euro RSCG Worldwide’s New Consumer study,
please contact:
Eric Edge
Global Chief Communications Officer
Euro RSCG Worldwide
T +1 312.640.4747 (Chicago)
T +1 212.886.2012 (New York)
E eric.edge@eurorscg.com
For inquiries regarding Good for Business or Consumed, please contact:
Eric Robertson
SVP, Global Corporate Communications Director
Arnold Worldwide
110 Fifth Avenue, 9th Floor
New York, NY 10011
(ph) 212-463-1201
(m) 646-465-3793
e-mail: erobertson@arn.com

44. Also Available on SlideShare
Click here to access
The New Consumer in
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Spending on
SlideShare.net

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