1. A Bad Day at Headquarters
Downside of Not Participating in Today‟s Continuous Conversation
Hong Kong - September 13, 2009

2. Local and global…and local

3. Not so happy meal…

4. One bad apple…

5. Three stripes and you’re out-ed…

6. A bad day at headquarters…
Day 4-5 Press Release
Local NGO or Conference
Website with
Local Media
Local News
Whistle Blower
a.k.a. BBS
security guard, Local NGO
employee
Day 6-7
Day 1 International
NGO Website
Blog Translators
Press Release
International
International or
Media
NGOs Conference
International
Blogs Day 8: A Bad Day at Headquarters

7. The global insight
“In this transparent world, how you live your life and
conduct your business matters more than ever…
Companies that get their „hows‟ wrong won‟t be able to
clean up their mess by taking a couple of reporters to
lunch…But this also creates opportunities…‟how‟ you keep
your promises…build trust…collaborate…lead”
Tom Friedman, “The Whole World is Watching”
The New York Times, 6/27/07

8. Responsible Companies: A mix of “what”
and “how”
B62-73. When you think of good and responsible companies, how important is each of the following factors to the
overall reputation of the company? Please use a nine-point scale where one means that factor is “not at all important”
and nine means it is “extremely important” to overall reputation. (Top 4 Box) 25-64 Informed publics in 6countries

9. Businesses are expected to act quickly and
make significant changes when problems arise
Cap pay for executives who are accountable for the problems
Fire any executives or employee found to be guilty of wrongdoing
Partner with governments, or other third parties to solve the
problems
Make full public disclosure about the problems and their causes
Have senior executives take a visible lead in communicating about
the problems
Admit their mistakes when things go wrong
Make significant changes so the problems don't happen again
Act quickly to correct problems
B83-90. How much would you trust companies to take the following actions when problems
or difficulties arise? Please use a 9-point scale where one means that you “DO NOT TRUIST
THEM AT ALL” and nine means “YOU TRUST THEM A GREAT DEAL” to take this action when
problem arise. (Top 4 Box), Informed publics ages 25-64 in 6 countries

10. End-to-end social engagement
OLD: Pyramid Model NEW: Sphere of Cross- Influence
Organization Consumers
Media Employees
Trade Investors
NGOs Regulators
Mass Audience Organizations

11. The big picture…

12. Rebalancing of power
Western pressure Well defined expectations
in Asia Pacific

13. Five drivers
1. Social and environmental challenges
2. Government activism
3. Growing influence of NGOs
4. Passionate consumers
5. Web and mobile communications

14. 1 Social and environmental challenges
Pollution Social inequity

15. 2 Government activism
“Our economic
growth is realized at
an excessively high
cost to resources and
the environment”
October 15, 2007
17th National Congress of the
Communist Party of China

16. 3 Growing influence of NGOs
NGO networks

17. 4 Passionate consumers
Brand advocates

18. 5 Web and mobile communications
Explosion in web and mobile use

19. Making business sense

20. The Asia-Pacific imperative
1. Get your House in Order
2. Listen to New Voices
3. Converge around Big Ideas
4. Be an Advocate

21. 1. Get your House in Order
• Audit and Transparency
• Understand and address business risks and opportunities
• Assess existing CSR initiatives against “real” needs
• Government, NGO, employee insights

22. 2. Listen to New Voices
• NGOs • Employees • Consumers

23. Academics, a person like yourself most credible
CEO and government increase in APAC despite global drop
APAC
100%
90%
80%
70%
59%
60%
50% 47% 46%
42%
39%
40%
35%
31%
30%
20%
10%
0%
An academic or A person like Financial or CEO of company Non-profit Government Regular employee
expert on that yourself industry analyst organization or official or of a company
company's NGO regulator
industry or representative
issues*
*asked as “an
D112-118. [TRACKING] Now I’m going to read you a list of people. In general, when forming an opinion of a company, if you heard academic” in 2008
information about a company from that person, how credible would the information be—extremely credible, very credible, somewhat
credible, or not credible at all? (Top 2 Box) Informed publics 25-64 in 18 countries

24. 3. Converge around Big Ideas
• Take on Important Issues
• Moving from corporate philanthropy to “Green is Green”
• Partnering with Civil Society
Environment Social

25. 4. Be an Advocate
• Creating Credible • Evolving Role of • Issues Management
Sources of the CEO
Information

26. Bringing it all together

27. Social engagement continuum
Action Line
Involved
“Feel good” Socially Engaged
Knowledge/
Know-how
Line
Passive Informed Observer
Uninvolved
Nonaligned Aligned
China Business Society Continuum