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Corporate Governance  and Social Compliance Presentation to the Rotary Club of Hong Kong  By Alan VanderMolen  President, Asia Pacific  Edelman  September 1, 2009
What  is  Corporate Governance ?  ,[object Object],[object Object],[object Object]
Asia Pacific: Fundamental Assumptions Shattered
What we’ve learned from 2009 Edelman Asia Pacific Trust Barometer Trust in Asia Pacific has fallen in business, government and media
What we’ve learned from 2009 Edelman Asia Pacific Trust Barometer Companies less trusted now than a year ago
Asia: In Bad Company
Lack of Trust Triggers  Call for Government Intervention ,[object Object],[object Object]
Government and business share responsibility for causing global issues ,[object Object],E. 119-120, E124-125, 129-130, 134-135.  Now thinking about (energy costs, financial credit crisis, global warming, affordable healthcare), please tell me how responsible you think each of the following entities are for contributing to (global issue)? TOP 4 BOX 25-64 informed publics in 6 countries
APAC has higher trust in business to address global issues driven by high trust in China, Indonesia and Japan ,[object Object],[object Object]
Business partners with others to solve global issues ,[object Object]
Who Can We Trust? Trust in Information Sources and Spokespeople Declines Across the Board ,[object Object],[object Object]
Trust wanes for most traditional information sources; Word-of-mouth on par with media N/A
Academics, a person like yourself most credible CEO and government increase in APAC despite global drop ,[object Object],*asked as “an academic” in 2008
Trust in corporate channels down Employees most trusted source ,[object Object]
The Business Case for Trust Reputation, Sales, and License to Operate  Driven by Trust and Transparency ,[object Object],[object Object]
 
Responsible Companies: A mix of “what” and “how” ,[object Object]
Businesses are expected to act quickly and make significant changes when problems arise ,[object Object],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
Through personal action,  trust has tangible benefits ,[object Object],[object Object],Chose to buy their products/services Refused to buy their products/services Recommended them to a friend or colleague Criticized them to a friend or colleague Paid a premium for their products/services Bought shares Sold shares Shared positive company opinions/experiences online Shared negative company opinions/experiences online – +
APAC more supportive of responsible companies to pursue local changes ,[object Object]
Public Engagement: A Strategy for  Changing Policy and Communication Shared  Sacrifice Continuous Conversation Private Sector Diplomacy Mutual Social Responsibility
Private Sector Diplomacy ,[object Object],[object Object],[object Object],[object Object],Shared Sacrifice Continuous Conversation Private Sector Diplomacy Mutual Social Responsibility
Mutual Social Responsibility ,[object Object],[object Object],[object Object],[object Object],Shared Sacrifice Continuous Conversation Private Sector Diplomacy Mutual Social Responsibility
Shared Sacrifice ,[object Object],[object Object],[object Object],[object Object],“ Heavy equipment maker Caterpillar Inc announced in late December it would cut executive pay in half, and many salaried employees would see cuts of as much as 15 percent.” –  Wall Street Journal  Shared Sacrifice Continuous Conversation Private Sector Diplomacy Mutual Social Responsibility
Continuous Conversation ,[object Object],[object Object],[object Object],Johnson & Johnson among first companies to join public conversation on health Shared Sacrifice Continuous Conversation Private Sector Diplomacy Mutual Social Responsibility
Corporate Governance Re-Boot  OLD:   Pyramid Model NEW :   Sphere of Cross-influence Stakeholders now demand transparent and interactive communications from corporates  Company Mass Audience Consumers Media NGOs Investors Regulators Employees Trade Bodies Businesses
Social compliance  is  corporate governance

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Cg Presentation For Rotary Club Of Hk (Aug 31)

  • 1. Corporate Governance and Social Compliance Presentation to the Rotary Club of Hong Kong By Alan VanderMolen President, Asia Pacific Edelman September 1, 2009
  • 2.
  • 3. Asia Pacific: Fundamental Assumptions Shattered
  • 4. What we’ve learned from 2009 Edelman Asia Pacific Trust Barometer Trust in Asia Pacific has fallen in business, government and media
  • 5. What we’ve learned from 2009 Edelman Asia Pacific Trust Barometer Companies less trusted now than a year ago
  • 6. Asia: In Bad Company
  • 7.
  • 8.
  • 9.
  • 10.
  • 11.
  • 12. Trust wanes for most traditional information sources; Word-of-mouth on par with media N/A
  • 13.
  • 14.
  • 15.
  • 16.  
  • 17.
  • 18.
  • 19.
  • 20.
  • 21. Public Engagement: A Strategy for Changing Policy and Communication Shared Sacrifice Continuous Conversation Private Sector Diplomacy Mutual Social Responsibility
  • 22.
  • 23.
  • 24.
  • 25.
  • 26. Corporate Governance Re-Boot OLD: Pyramid Model NEW : Sphere of Cross-influence Stakeholders now demand transparent and interactive communications from corporates Company Mass Audience Consumers Media NGOs Investors Regulators Employees Trade Bodies Businesses
  • 27. Social compliance is corporate governance