Spring 2008
“Issues Affecting Reputation Management and Strategic Communications”
Our Actions Matter
C
orporate social responsibility might just be a misnomer. A
better way of describing the practice would be “collective
social responsibility.” We are our brother’s keeper. Our
lives are inter-connected and the earth’s destiny is
dependent on a mosaic of our collective behaviors. Each of us plays
a role in helping others by the intended positive actions we take to
make this earth a better place to live. However, culturally this can be
tricky to accomplish in practice. We all want the best for ourselves
first, and then our families, our tribes, our villages and our nations.
But the world needn’t be a division of haves and have-nots. We can
and should behave civilly and treat others the way in which we wish to
be treated— remember the golden rule.
We all occupy space and use the world’s resources. Some of us in the
developed world use much more than those less advantaged folks in
the developing world. We Westerners have all the benefits of
refrigerators, air conditioning and comfort appliances. We take for
granted clean air and clean water. We even assume that we will have
enough to eat and be able to grow enough food in our nation. These
assumptions are being challenged as the world becomes more
populated, faster moving and more mobile. At one time the world’s
poor may have lived in blissful ignorance of the excess of wealth and
prosperity in the world. The poor are now exposed to the disparity.
They have been provided a vision of what is possible. As capitalism
spreads, and with it democracy and its accompanying human rights,
there will not be room for corporate exploitation. People and their
elected leaders will not stand for it. Enlightened governments will
want the best for their people and they will in turn force corporations
and their leaders to behave ethically and provide fair business
practices; offering fair prices for goods and services. Perhaps the age
of cheap labor has passed and along with it, permission to exploit the
world’s natural resources.
Does this mean to behave with social responsibility we will need to
accept some form of socialized government? I do not think this is
the inevitable outcome. I believe the strength of entrepreneurial
capitalism will always reward the ingenuity of the person who makes
the better mouse trap and also will enable them to charge a premium.
The challenge is that some corporations believe it is better for them
to make products with short term integrity and design obsolescence.
“The Price Of Greatness Is Responsibility.”
~ Winston Churchill
vol.8 no.
They need to be reminded of the importance of quality, integrity and
ethics. Not in a preachy way—but by our ability to reward or
penalize them through our purchases. We have the power to boycott
and turn away from bad companies and bad behavior. The breakdown
of the world’s geographic barriers and the opening of markets have
literally taken people out of the jungle, off of the farms and put them
into the urban world. Recently I saw an ad for carpets in an
architectural design magazine advising us to be certain that the rugs
we buy are not made by exploited child labor in the third world. I
would suggest most of the fine carpets we treasure were made in this
tribal practice for centuries. People did not know any better and did
not have the opportunity to have their children hope for a better life.
The responsibility for corporations is obsolescence greater today to
not take advantage of the poor or the disadvantaged.
The world is at once a vast distribution of races, ages, ethnicities,
religions and cultures. We are different while at the same time part of
the same human race. Our actions often have unintended
consequences. I’m reminded of the “butterfly effect” in chaos
theory—which describes the seemingly innocent beating of the wings of
a butterfly affecting the velocity of a typhoon thousands of miles away.
Each of us must beat our wings in a positive rhythm to create
harmony. We must also remind ourselves of that other powerful law of
unintended consequences—when we do something that is wrong,
unethical or harming to the environment, we must realize the conse-
quences can be much greater and more long lasting than we thought.
Lastly, I’m reminded of that wonderful story of the man walking
down the beach with his child. They come upon the incoming tide
and hundreds of star fish washed upon the shore. The child begins to
throw the starfish one after another back into the sea. When the
parent admonishes the child –“what does it matter”? The child turns
to the parent and says—“to this starfish it matters.”
We all must remember – doing good matters.
Peter Morrissey can be contacted at peter@morrisseyco.com
Reputation Excellence: www.morrisseyco.com/blog
 Managing Your Reputation Through Social Responsibility
E
veryone from mom and pop shops to international corporations
like Coca-Cola is announcing corporate social responsibility
(CSR) efforts. Worldwide, more than half of all privately held
businesses have some sort of CSR program in place. But what is CSR,
and why is it important for reputation management?
CSR, also known as corporate citizenship, is a business’ ethical reaction
to our global reality. CSR is about finding a way to support and
improve our communities through strategies like supplier diversity
programs, environmental sustainability efforts, philanthropic initiatives
and community outreach.
The world is not nearly as large as we once thought; in a global
economy, every action and decision has a consequence somewhere.
While it may be easier to manufacture goods
in a country with lower pollution laws, doing
so will contribute to poor air quality in that
region, and may also result in other unin-
tended effects such as an increased incidence
of cancer and neurological disorders. A
“Corporate Social
nation with low regard for the environment
may not place a high value on human rights
Responsibility is a
or craftsmanship. business ethical
With the realization that the Earth is not reaction to our
composed of isolated countries comes the
understanding that business does not operate
global reality.”
in a vacuum. We are all connected. This
understanding is shaping the way business
operates and the way consumers make
choices between brands based upon their
responsibility and reputation. The general
public has become increasingly aware of the
power of their individual choices. Consider
the rise of organic and fair trade labels: nearly three-quarters of
Americans at least occasionally use organic products because of their
environmental benefits.
In our increasingly socially-conscious world, consumers and investors
are keeping close tabs on which companies do the right thing and which
operate with only revenue in mind. Who can forget the sweat shop
allegations of the 1990s that plagued Kathie Lee Gifford, Disney and
Nike? If consumers, investors, current and potential employees and
business partners are concerned about social activism, then CSR is
crucial to your company’s reputation and therefore, its bottom line.
It is no longer good enough to produce the best, cheapest widget; you
must also function in a socially-responsible way. That means doing
things as basic as paying a living wage and ensuring on-the-job safety, as
well as taking more complex steps to reduce your company’s harm to
the environment and improving conditions in the communities in which
you operate. One of the most visible examples of CSR is
environmentalism. Claiming to “go green” is de rigueur in many circles.
But like any CSR initiative, it is meaningless unless there is true,
meaningful action behind the claim.
pg.
2
There is a common thread among those who are doing it right –
sincerity. Publishing an annual CSR report or distributing press
releases about your corporate citizenship are hollow if these are merely
marketing tools. Shareholders are savvy about “greenwashing” and will
not hesitate to draw attention to a company that claims to be working
toward sustainability, but is still a heavy emitter of greenhouse gas.
So how, exactly, does a business become socially responsible? The
Center for Corporate Citizenship at Boston College has identified four
principles of corporate citizenship: minimize harm, maximize benefit,
be accountable and responsible to key stakeholders and support strong
financial results. Each of these points may seem obvious, but to truly
incorporate corporate citizenship these principles must guide corporate
culture.
Minimize Harm
Minimizing the potential harm done by your
company requires a commitment beyond
merely making your product safe for
consumers. This is more than ensuring a safe
work environment for employees. It is about
proactively identifying practices, both
internally and externally, that can have poten-
tially negative consequences and modifying
them accordingly. For example, Molson
Coors Brewing Company is donating the
ethanol produced by its waste beer to the
2008 Democratic Convention. The ethanol
will be used to fuel the vehicles at the
convention, thereby reducing the event’s
carbon footprint.
Maximize Benefit
Your company has a tremendous resource to
enrich the communities in which you operate – your employees. Employee
volunteerism is good for the community and for business. A 2001
Council on Foundations study found that employee volunteerism has a
bigger impact on favorable employee perceptions of their
company than any other form of corporate citizenship. Helping
others provides fulfillment and gives people a sense of pride, and
volunteer opportunities give employees something positive to talk about.
Nicor Gas, one of the largest gas distributors in the U.S., has a
well-deserved reputation for community involvement. Almost 1,000
employees participated in the company’s 12th annual Volunteer Day,
and Nicor rewards employees for their good deeds by offering grants to
nonprofits that the employees assist.
Be Accountable and Responsible to Key Stakeholders
Gone are the days of operating behind closed doors. Today’s
stakeholders want transparency. Prove you are worthy of their trust by
being open and honest, even when what you have to tell them is not
what they want to hear. Aflac recently adopted a shareholder “say-on-
pay” policy for executive compensation, a first in American business,
providing even greater transparency. In May, Aflac shareholders
approved the company’s policy of performance-based compensation.
{ R E P U TAT I O N - continued on PG 3 }
{ R E P U TAT I O N - continued from PG 2 }

Support Strong Financial Results
While incorporating a CSR program, it is important to remember that
you still have a responsibility to your employees and shareholders to
generate revenue. A corporate social responsibility program should
ultimately boost both your reputation and your business’ bottom line.
A large number of companies have embraced their responsibility as
corporate citizens, making it difficult to name just one that is leading
the way. Manpower Inc. was recognized as the Most Shareholder-
Friendly Company by Institutional Investor magazine in 2006, the same
year that employees there donated 30,000 hours of their time to
volunteer efforts. Patagonia lives up to its mission of using “business
to inspire and implement solutions to the environmental crisis with a
comprehensive CSR program.” In 2006, Timberland was not only
ranked sixth in Business Ethics magazine’s 100 Best Corporate Citizens,
but it was also named to the Forbes list of Best Big Companies in
America for the eighth consecutive year.
Steps a company can take to become a better corporate citizen include:
• Encourage employees to donate their time to worthy causes, either
with incentives or paid time off to volunteer.
• Implement small changes to lessen your energy use, for example by
turning off lights and computers when not in the office.
• Create an employee wellness program.
• Sponsor a community-wide program to discover new ways to
increase sustainability.
• Participate in tele- and web-conferences to cut down on travel.
• Make a commitment to supporting minority-owned businesses
and supplier diversity.
And then tell the public about your programs. Your reputation as a
company committed to citizenship will grow if you tell people about
your efforts, but you must be careful to avoid appearing insincere or
self-serving. Communicate carefully – in a way that demonstrates that
the company’s efforts are dedicated to the greater good.
Many companies now have a page on their website dedicated to their
CSR programs. ING posted a video on YouTube touting its
environmental strategy. Tom’s of Maine, a natural personal care
products company, is sponsoring a video contest in which entrants
explain how they work to preserve the rivers in their communities.
Another way many companies are telling shareholders about their
programs is through an annual CSR report, or pamphlets in offices or
stores.
Initiating a CSR program does not require a complete overhaul of
company practices – small steps lead to big change. Evaluate your
company’s resources and expertise to determine how best you can make
a difference, and consider options you can implement easily to use as a
basis, and grow your program from there. CSR is no longer just a
catchphrase. It’s about good reputations and good business.
~April Wildermuth

Responsibility – Easier Said than Done

Primum non nocere. Translation: “First, do no
harm.” The globally recognized mantra of the
medical profession is one with wide ranging
applications in the business world. Its wisdom
applies as well in the corporate world as it does in
the operating room. Modern businesses, from a two
person start-up company to a multi-billion dollar
conglomerate, share a responsibility to consider the
degree of harm they inflict on our world while at the
same time proactively taking measures to stimulate
a positive effect. How is it done? Where does one
begin on the path of corporate social responsibility?
Consider the five Ps of corporate social responsibility:
1) Your practices – Are your company’s factories
emitting gases and polluting the environment?
How can you reduce and/or offset this reality? Is
your product beneficial or detrimental to the health
of our population? Our children? Are your
2) Your people – Are your people treated fairly?
Are they encouraged to be honest, hardworking
and ethical in their personal practices? Are they
rewarded for outstanding work toward social
responsibility? Are they, perhaps, awarded time off
for charitable or philanthropic endeavors? Is their
emotional and physical well-being considered?
Pay attention to the people who make your
company tick.
3) Your power – Companies have differing degrees
of relative power. Understand the range and
possibilities in your organization’s power to com-
municate to consumers and to lead by example. A
small start-up can use its clean slate to its
advantage and incorporate social responsibility
early, making it a keystone of its offering.
Reconsider the initial business plan in accordance
with a more ethically sound approach. Larger
corporations can use their size and their marketing
4) Your promise – State your intentions. Use
modern communication channels to share them.
Invite feedback and suggestions from consumers.
Call upon your allies in the business world to join your
cause. Invite your competitors to join you as well.
5) Your potential – Consider the future. A true
mission of corporate social responsibility doesn’t
happen overnight, and it doesn’t end when the
calendar turns or the fiscal year expires.
Sounds easy enough. It is and it isn’t. Corporate
social responsibility is an “easier said than done”
proposition. Writing a moving mission statement is
only the beginning. Hanging a poster of beliefs or
rules in the employee cafeteria isn’t enough.
Creating a flashy new website with the requisite
photos of children and the environment is nice on
the surface but hollow in the long term unless it
is supported by continual corporate action.

RESPONSIBILITY
financials accurate? Are your products made
well? Are they made ethically? Do they do what
they promise? Ask yourself some hard questions
about the realities of what you do.
budget to enact a more profound strategy. Companies’ actions, output and employees must
reflect the tenets of corporate social responsibility
in order for them to be truly meaningful.
~ Scott Emberley

pg.
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 Reputation Advisor
Global Survey Finds Most Companies Lack Recommended Reading
Sustainability Strategy – a Key Component to
Making Sustainability Work: Best Practices in Managing and
Corporate Social Responsibility Initiatives. Measuring Corporate Social, Environmental and Economic
Impacts by Mark J. Epstein (Berrett-Koehler Publishers)
A recent global survey of corporations focused on sustainability, Drawing on the latest research and the best practices of 100
one of the pillars to man corporate CSR initiatives, show that companies worldwide, Epstein provides an extraordinarily
half of businesses polled lack a sustainability strategy. CEOs complete model for implementing sustainability initiatives. He
made up the majority of survey respondents, and although less covers the role of senior managers and corporate boards in
than half have a strategy today, 55 percent said sustainability leading and governing sustainability activities; organizational
will grow in importance and require increased resources and design issues that can improve sustainability; integration of
attention. The study was sponsored by Pinnacle Worldwide, Inc. social risk factors into capital investment, costing, and risk
(PWW), a global organization of independent public relations management systems; incentives and rewards to improve
firms and was developed by Vandiver Group, Inc. (TGV) of St. sustainability performance; identification and measurement
Louis, MO. corporate social, environmental, and economic impacts.

Full results are posted at: http://www.vandivergroup.com/ The Market for Virtue: The Potential And Limits of
services/documents/sustainability_survey_results.pdf Corporate Social Responsibility by David Vogel. (The
Brookings Institute) The Market for Virtue offers the right mix
The survey, encompassing information from companies on six of theory, analysis, and example for CSR and offers metrics for
continents, 25 countries and 40 industries, found that evaluating the many different embodiments of CSR. It is an
approximately one-third of businesses are developing a examination of a politically charged and highly polarized debate
sustainability strategy. An overwhelming 75 percent of concerning what corporate social responsibility can, cannot, and
respondents said sustainability is either “an important part of must accomplish in a modern capitalist economy.
our organization’s corporate strategy,” or said they expect the
topic “to become increasingly important in the future.” New Strategies for Reputation Management: Gaining Control
of Issues, Crises & Corporate Social Responsibility by Andrew
The study also found that organizations with a sustainability Griffin (Kogan Page) New Strategies for Reputation
strategy are more likely to be focused on improving perceptions Management shows executives how to take the initiative in
and responding to increasing regulations, rather than meeting strategically managing a company’s reputation. Andrew Griffin
social needs or generating revenue opportunities. argues that standard thinking on reputation management is often
inadequate for today’s information age. He describes a host of
new and robust methods that will ensure a company’s reputation
Editor’s Note: The survey was conducted online between April 15 and May 5, can withstand the major crises and unforeseen events that
2008. The survey asked business people how they approach sustainability threaten it.
strategy. The 338 respondents represented six continents, 25 countries and
40 different industries.
~Margaret Brady

Morrissey & Company

121 Mount Vernon Street
Boston, MA 02108

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The Mount Vernon Report™ is published and copyrighted 2008 by Morrissey & Company, an independent Reputation Management and Public Relations firm headquartered at 121 Mount Vernon Street, Boston, MA 02108. Permission to copy and
distribute is granted, provided that full attribution is given to Morrissey & Company. Further commentary or response to any of the topics discussed in this issue is welcome and should be directed to 617-523-4141 or via e-mail to peter@morrisseyco.com.
Printed on recycled paper. In an effort to conserve natural resources we have altered the format of the Mount Vernon Report to omit the use of an envelope.

pg.
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