No Cause for Concern: Key Considerations to Help Demystify CSR Rankings

Alyssa Ehrlich, Senior Account Executive, New York

As stakeholders continue to increase scrutiny of companies’ performance beyond the bottom line, companies have been placing greater focus on measuring and tracking their social and environmental efforts. And with an increasing number of corporate social responsibility (CSR) and sustainability rankings being released over the past several years, companies are commonly relying on these rankings as an easy way to assess their performance and benchmark against competitors.

Being included on highly visible rankings, such as Newsweek’s Green Rankings, Corporate Knights’ Global 100, the Ethisphere Institute’s World’s Most Ethical Companies, and Corporate Responsibility Magazine’s Best Corporate Citizens (to name a few), can strongly boost a company’s corporate reputation and be leveraged in internal and external communications to validate social and environmental performance. When companies are excluded from these rankings it could raise a red flag given that in today’s business environment “citizen consumers” increasingly want companies to spend time thinking about not just the interests of their own company but those of society as a whole.     

But before you run to see where your company, competitor or client stands on the most recent CSR ranking (the 2012 Newsweek’s Green Rankings were released a few weeks ago) and make judgments about performance, there are some important considerations to keep in mind:

1. Concern Over Credibility and Value of Rankings Exists

It’s important to raise upfront that there has been a significant amount of discussion over the past few years about the credibility of CSR rankings and whether they are truly helping or hurting the CSR field. Methodologies of CSR rankings vary significantly, making it difficult to glean any consistent insights. In many cases, CSR rankings do not account for differences in industries and sectors and as a result, the rankings are not truly comparing “apples to apples.” And in the case of those rankings associated with media properties, such as Corporate Responsibility Magazine’s Best Corporate Citizens, skeptics have raised concerns as to whether these publications have conflicting interests when determining rankings (e.g., selecting companies that will pursue sponsorships, advertising, etc.). 

2. Prioritize Some Rankings Over Others to Maximize Engagement

With an increasing number of CSR rankings appearing each year, it can be a bit overwhelming to determine which ones to prioritize. Many of the research companies that compile data for these rankings reach out to companies directly, offering an opportunity to review findings and provide any corrections or additional information. This is a time intensive process and as a result, it’s important to prioritize which rankings are most significant to you and your stakeholders.  

3. CSR Rankings Commonly Differ in  Scope and Scale 

While some CSR rankings focus on a variety of environmental and social attributes – such as greenhouse gas emissions, human rights, and philanthropy – several drill deep in a specific area. For example, Newsweek’s Green Rankings focus primarily on the environment while the Ethisphere Institute’s World’s Most Ethical Companies list focuses predominantly on ethics and compliance. Furthermore, some CSR rankings focus exclusively on U.S. companies while others are global in nature. Both the scope and scale of these rankings can have a significant impact on where companies stand and as a result, you should look past the overarching rank and where applicable, assess how the company performs against the specific attributes measured and against competitors in their industry/sector and geographic region.

4. Disclosure Is a Key Part of the Ranking Equation

Many rankings focus on companies’ disclosure and transparency of reporting on their social and environmental impact in addition to their actual performance. For example, Corporate Responsibility Magazine’s Best Corporate Citizens places emphasis on whether a company transparently discloses its greenhouse gas emissions versus the size of a company’s carbon footprint. Additionally, Newsweek’s Green Rankings includes an “environmental disclosure score,” which accounts for 10 percent of the total score that determines a company’s ranking.  

5. CSR Performance Isn’t Always Black and White

CSR rankings are commonly faced with a catch-22—they need to use a standardized “check the box” approach to objectively measure and compare companies’ operational performance across CSR areas yet this approach limits the opportunity to assess how sophisticated companies are tailoring their CSR efforts to strategically align with their business objectives and strategies. Through these rankings it is difficult to showcase how some companies are taking a “shared value” approach to enhancing both profit and societal impact. Nonetheless, it’s important that companies focus on taking a holistic approach to improving CSR performance as opposed to trying to check the boxes for a ranking.

Overall, when viewing CSR rankings with an understanding of the points above, these rankings can be helpful tools to generally track and assess companies’ CSR performance and reputation. However, rankings should by no means be viewed as the be-all end-all. At the end of the day, implementing CSR strategies that are tailored to your company and stakeholders and tracking against your short-term and long-term social and environmental goals should outweigh everything else.

Five Simple Ways to Give Back this Holiday Season

Lindsay Stout, Account Supervisor, Dallas

The holiday season is hectic – we all know that. But despite the added activities and stress, people seem to be more aware of others this time of year and eager to accept opportunities to be more like George Bailey than the Grinch.

However, amidst the decorating, shopping and preparing for parties and houseguests, there’s not a lot of spare time to be found. In an effort to make this holiday season a little less stressful, here are some thoughts on easy ways to give back this holiday season.

1. Raise Awareness
There are lots of great causes this time of year you can easily support without much effort. For example, if you’re a guy, there’s still a few days left to grow a moustache or ‘mo’ during the month of November, which is now becoming more commonly known as Movember. Edelman is adopting this global charity and Edelman client to help raise awareness and funds for men’s health, specifically prostate and testicular cancer initiatives. Whatever cause is most important to you, make sure to tell more people about it this year.

2. Make a Quick Donation
Whether it’s an online monetary contribution or dropping off actual goods, take a few minutes to make a donation. It doesn’t take much time to get on a website such as RedCross.org and give to those who have been affected by disasters like Superstorm Sandy. While you’re at the grocery store, you may want to consider picking up some extra canned goods for your local food pantry. Or, during your holiday shopping, add a few extra toys to your basket to give to a group like Toys for Tots.

3. Collaborate with Colleagues
In lieu of a holiday party this year, consider spending that time volunteering with your colleagues for a local charity, or pulling together funds to sponsor a child or family from an Angel Tree. If the holiday season proves to be too hectic for everyone, find time during the remainder of the year to give back in your city. In the past year, Edelman Dallas has helped paint and furnish an apartment to get it ready for a new family with Family Gateway and has helped make meals for Hunger Busters’ after school program.

4. Alter your Gift Exchange
How many times have you said, “I have no idea what to give so-and-so.”? The truth is many of us have more than we could ever need. If you’re not quite sure what to get someone this year, make a donation in his or her name or add the names of a few charities to your own wish list. Skip the Secret Santa and White Elephant gift exchanges with your friends and family, and pool the money you would have spent to make a more impactful gift to someone in need.
 
5. Clean Out Your Closet
As you start to look at your winter wardrobe, evaluate what you don’t need anymore, especially coats, sweaters, gloves and other winter gear. Look out for local coat drives and notices on your door about clothing item pickups, or drop off items with Goodwill or The Salvation Army. Also, check your cabinets for extra beauty products or toiletries you’ve picked up on your travels throughout the year that can be donated.

We hope these ideas will provide a little bit of inspiration for ways you can make a difference this holiday season for those in need. Send us a Tweet to let us know what you’re doing to give back this year.

A Better Version of Ourselves is the Best Gift of All

By Helen Vollmer, President, Southwest

It’s all about the gift.  As you’ll read in this issue of E-volution, my colleagues and I are focused on giving, both personally and corporately, not only during this holiday season but also all year long.

But this also is a good time to assess what it means to give the best of ourselves.  It seems that all too often we are more concerned with “getting it done” as opposed to “getting it done right” or “getting it done thoughtfully” or “getting it done to the best of our abilities.”  Perhaps the best gift we can give others is to take the time to stretch ourselves, hone our talents and expansively offer a better version of ourselves.

We all have talents and acquired skills.  We each have knowledge, interests and personality traits that can help our families, neighbors and colleagues.  Aren’t sure what your special gifts are?  Just ask those close to you – they’ll be able to tick them off in a nanosecond.

Who knows?  Maybe instead of quickly snapping off an answer that is at best a gut reaction, a thoughtful probing response would deliver a better strategy.  Or, showing off that dazzling smile can make a point that words can’t convey.  Do you have great penmanship?  Then win brownie points and some self- satisfaction in the form of a personally written note instead of an email.  Good at details?  Help someone organize a task they are putting off.  Got some bottled up creative juices?  Call an unexpected brainstorm on a challenge your team is facing.

At the end of the day, maybe it’s not about what we get done, but what we get done well by sharing our unique, personal gifts in ways that let others shine, too.  It’s the gift that keeps on giving.

Have a safe, happy and healthy holiday.  See you in 2013!

Edelman Southwest Gives Back

Earlier this year, each of the Edelman Southwest offices participated in Edelman’s 60x60x60 “Summer of Service,” to support hunger and poverty alleviation in honor of our company’s 60th anniversary.

Below, please find a recap of how the Dallas, Austin and Houston offices gave back to their communities.


Dallas: Busting Hunger and Fighting Food Insecurity
By Rupa Patel, Account Supervisor, Dallas

For Edelman’s 60x60x60 “Summer of Service,” Edelman Dallas partnered with Hunger Busters, a local organization that provides much-needed meals to underprivileged children.

Few of us realized Texas was among the top four U.S. states with food insecure children. A staggering number of children are forced to go to bed without dinner, or as one Hunger Busters staffer told us, use substitutes like ketchup packets mixed with warm water as their meal.

We spent two afternoons at Hunger Busters and prepared 1,200 meals consisting of a sandwich, a piece of fruit, a fruit/pudding snack and a brownie. The three-person team at Hunger Busters explained they do not have the supplies to feed all the children in need, so they feed different grades daily, ensuring children have three meals at least two-to-three times a week.

Hunger Busters also introduced us to the “lunch box challenge” where volunteers fold as many meal boxes as they can in 60 seconds. After a few practice rounds, competitors lined up. The majority of us fumbled with our boxes, trying to close them without tearing edges or squishing food. Most of us only made it through six, but one assistant account executive, Mahsau Daee, sped through 12 boxes – setting a new Hunger Busters record!

Volunteering with Hunger Busters not only allowed us to help a wonderful cause, but it gave us valuable perspective on the prevalence of food insecurity in our own community. Hunger Busters is an incredibly inspiring organization and we are eager to continue to build on this relationship in any way we can. 


Austin Gives Back: Volunteering at the Capital Area Food Bank
By Alex Bernardin, Senior Account Executive, Austin

As part of Edelman’s 60x60x60 “Summer of Service,” the Austin office was excited to give back to the community by spending an afternoon at the Capital Area Food Bank, the largest hunger-relief charity in Central Texas. The Food Bank provides food and grocery products, nutrition education and social services outreach to 300,000 clients each year through a network of 300 partner agencies.

On a hot and sunny Thursday afternoon in August, 13 members of the Edelman Austin office turned on their out-of-office notices and headed down the road to spend the afternoon giving back. When we arrived at Capital Area Food Bank, we were given a brief orientation session and were assigned different duties. We spent the afternoon cleaning, sorting and putting together goods that would then be distributed to various partner agencies, like homeless shelters, throughout Central Texas.

Our team split up to perform our assigned duties, working hand-in-hand with staff and regular volunteers who showed us the ropes. We sorted through all different kinds of food and beverages that had been donated from local grocery stores, and used teamwork to work quickly and efficiently – our three hours flew by!

At the end of our shift, we learned that we had sorted and organized more than 5,600 pounds of goods, which equated to 4,480 meals that would feed hungry Central Texans. We really enjoyed our time volunteering, and have even discussed setting up a monthly shift on weekends for our Austin employees who want to participate to continue giving back to the community. 


Edelman Houston Takes Action Against Hunger in the Inner-City
By Janna Hughes, Account Supervisor, Houston

At the start of the summer, on a day with temperatures reaching the upper 90s, seven Edelman Houston employees put on food-service hair nets and gloves to assemble roughly 1,000 pounds of produce and non-perishable food items set to go to thousands of families in Houston’s inner-city neighborhoods as part of our “Summer of Service” efforts.

This endeavor was just one component of a year-round initiative to reach an alarming number of families in Houston’s inner city who lack accessible, affordable and healthy food. Each month, more than 12,000 families receive “bundles” of food from Target Hunger, one of Houston’s largest community-based organizations, which distributes over five million pounds of food annually through 12 food pantries, 11 senior day sites and 11 home delivery routes.

Recognizing the need to provide support close to home, Edelman Houston joined forces with Target Hunger earlier this year. Through the partnership, staff members have dedicated hours of their time to help plant gardens, assemble bags of food and distribute it to those in need. In addition, they have also provided professional counsel to assist with the development of Target Hunger client case studies, collateral and other communications materials requested by the organization.

Ongoing service to both local community and nationally-focused efforts continues to be a priority for Edelman Houston employees. In addition to supporting Target Hunger, a number of Edelman Houston employees have chosen a path of self-directed volunteering around the Houston area, including:

• Tutoring underprivileged teenagers
• Assisting adults with GED preparation
• Providing a place of refuge for individuals diagnosed with HIV
• Working with local animal shelters to find pets a loving home

Earning a License to Lead

Mark Hass, President and CEO of Edelman U.S.

Edelman turned 60 years old this summer, and the firm’s leadership and employees marked the anniversary by dedicating themselves to a summer of service in the 66 communities around the world where we live and operate.

We got a lot done, from Shanghai to Chicago, and our employees were energized with the idea that businesses in 2012 and beyond can play a key role in addressing many of the issues troubling our world. But to truly make a difference, this idea must extend beyond a summer of service into an ongoing commitment to make a business’s value to society every bit as much a priority as a return on equity. What’s more, with trust in government and media declining in most places in the world (source: Edelman Trust Barometer 2012), the time is right for business to play a larger role. 

A company’s customers, employees and other stakeholders expect that approach. Data that Edelman gathers as part of its Trust Barometer, GoodPurpose and 8095 studies show that:

• Societal attributes are more important to building future trust than operational attributes; 86 percent of people believe business needs to place at least equal weight on society’s interests as on business interests
• Young people especially demand that business act with their communities in mind; nearly 50 percent say it’s important for a company to be an active member of its local community, and 41 percent say it’s important for a company to be involved in a global cause.

There are many great examples of companies that advance their values in the communities in which they operate.  Southwest Airlines has adapted its legendary corporate culture to the more than 90 communities it serves through a network of 40,000 employees who volunteer on a regular basis, embodying the company’s “live by golden rule” ethos.  And Starbucks’ Shared Planet conveys the commitment the company has to progressive social and environmental initiatives. (Disclosure: Southwest Airlines and Starbucks are Edelman clients.)

At Edelman, citizenship is an operating philosophy – in fact it’s one of the firm’s key values. Overall priorities and objectives are shared across the firm, like in supporting hunger and poverty alleviation during our Summer of Service, but local offices are empowered to determine how best to engage with their communities. 

We’ve also joined “A Billion + Change,” committing 15,000 hours of pro bono consulting with a $2.25M value to our communities. This national coalition of business, government and non-governmental organizations hopes to transform how businesses leverage their employees to make a lasting impact on society.

Every action business takes will matter.  Whether limiting greenhouse gases (Edelman is committed to reducing its greenhouse emissions by 5 percent by 2015) or expecting ethical behavior from business partners, no single undertaking exists on its own. And success ultimately relies on the actions of individuals who are motivated and supported by their employer. 

I’m grateful to be a part of a firm that walks the talk when it comes to making community service a vital part of our culture and our business operations.

A couple of weeks ago, I joined colleagues for an afternoon of service at the Off the Street Club, Chicago's oldest boys and girls club, which gives 4- to 18-year-olds a safe and friendly place to be in a neighborhood where gangs and drugs are can seem ever-present.  We gave the club a cash donation, but more importantly we talked with the kids, joked around and helped them carve Halloween pumpkins.

I’m not naïve enough to believe that one afternoon like that changes everything for those children, but I do believe that the more days like that they have, the better the world will be.  And surely, those few hours at the club were the most important work I did that day.

How is your company making citizenship a business imperative? I’m interested in your experience. Email me at mark.hass@edelman.com.