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Non-Governmental Organizations Seek More Candor in Corporate Social Responsibility Reports
Non-Governmental Organizations Seek More Candor in Corporate Social Responsibility Reports
Published 11-13-03
Submitted by Burson-Marsteller
The study was conducted by global consultancy Burson-Marsteller as part of its ongoing research into corporate and CEO reputation. In the 2003 Building CEO Capital survey, a cross-section of 56 NGOs shared their opinions on leadership challenges and corporate responsibility communications. The survey is one of the few ever conducted among this hard-to-reach and highly influential audience of NGOs specializing in human rights, the environment and community service.
Using the Internet and global media, NGOs have dramatically increased the pressure on companies to account for their performance beyond the bottom line. A company's social and environmental report card increasingly influences consumers' purchasing behavior and trust in corporate America.
Improving Reporting Credibility
According to NGOs surveyed, the most important approach a company can take to improve a report's credibility is to acknowledge non-compliance, poor performance, or significant problems. This finding indicates that NGOs expect corporate responsibility communications to be straightforward and thorough. Other factors that boost confidence in TBL reporting are comprehensive performance metrics, third-party certification and standardization of reporting. Less effective factors are case studies and independent research.
"Today, social responsibility is no longer a matter of corporate discretion, due in large part to the NGO community's growing influence," said Bennett Freeman, Managing Director, Corporate Responsibility at Burson-Marsteller. "NGOs and other stakeholders are more likely to acknowledge progress and success if companies are candid about problems and even mistakes. Corporations need to focus on the implementation of substantive policy commitments even if that process is uneven or incomplete."
The CEO's Leadership Role
The new research also reinforces the critical role that CEOs play in building corporate reputation. NGOs believe CEO reputation accounts for 52% of a company's reputation. While this finding presents an opportunity for executives to claim leadership on responsibility issues, it also carries a serious obligation. The majority of NGOs (66%) believe the chief executive, more than any other individual or institution, bears the greatest burden for restoring trust in corporate America. There is an onus on corporate leaders to demonstrate a credible and consistent commitment to responsible business practices inside and outside the organization.
"NGOs demand that CEOs hear them, pay attention to their position and change their company ways regarding the issues they advocate," said Dr. Leslie-Gaines Ross, Chief Knowledge and Research Officer at Burson-Marsteller. Dr. Gaines-Ross is a frequent advisor to Fortune 1000 CEOs on how to improve corporate reputation and stakeholder relations. "CEOs need to deal with social and environmental issues in a spirit of cooperation rather than confrontation."
About Building CEO Capital
The 2003 Building CEO Capital study is Burson-Marsteller's fourth consecutive survey of influential business stakeholders since 1997 and was conducted with RoperASW. The study of 1,040 CEOs, executives, financial analysts, institutional investors, business media, government officials and board members examines issues relating directly to CEO and corporate reputation. Building CEO Capital has a margin of error of plus or minus 3 percent. The NGO segment was also conducted with RoperASW. For more information, please visit www.ceogo.com, Burson-Marsteller's Web site dedicated to CEO research and information.
About Burson-Marsteller
Burson-Marsteller (www.bm.com), established in 1953, is a leading global public relations and communications counseling firm. It provides clients with strategic thinking and program execution across a full range of public relations, public affairs, advertising and other communications services. The firm's seamless global network is designed to deliver premium, integrated services through 46 wholly owned offices and 46 affiliate offices, together operating in 53 countries across six continents. In 1979, the firm joined the Young & Rubicam family of companies, which in October 2000 was acquired by WPP Group plc (NASDQ: WPPGY), one of the world's leading communications services groups.
