CSR & Branding CSR & Leadership

1. CSR & Branding CSR & Leadership MBA 292C-1 Professor McElhaney 3.14.07

2. Current News

3. Are the “Manly Men” Finally Getting It? This bodes well for Brown Forman and organic whiskey...

4. Current CSR News • EU passes REACH regulations • Europe has led on climate change- now, it is staking out leadership on chemicals with new REACH regulations. • The $2.56 trillion global industry is struggling to grasp the enormity of the coming changes. The principal aim of the new regime—known as REACH (Registration, Evaluation, Authorisation, Restriction of Chemicals), which comes into force in June—is to enhance environmental and public health protection. • The agreement represents a “paradigm shift”—moving the burden of establishing that chemicals can be used safely from public authorities to industry. This embeds the principle of “producer’s responsibility” as chemicals make their way downstream into the vast world of finished goods.

5. Current CSR News • Bank of America Unveils $20 Billion Initiative to Finance Environmental Practices • Unveiled a $20-billion initiative with the aim of decreasing energy use and funding new technologies to decrease greenhouse gas emissions. • The bank will lend money to companies creating environmentally friendly services or building energy-efficient buildings. • The bank itself will offer a new credit card that accumulates points for donations to environmental groups and will offer lower mortgage rates for energy-efficient homes. • CMO Anne Finucane says, “This is intended to be good business as well as the right thing to do.” GreenBiz editor Joel Makower says, “The green economy is a business space of immeasurable proportions. Bank of America is acknowledging that they want their share.”

6. Current CSR News • In Response to Shareholders, Hershey Writes Supplier Code • In response to a shareholder resolution by U.S. socially responsible investment firm Walden Asset Management, U.S. confectioner The Hershey Co. has agreed to create an expanded supplier code of conduct and an implementation and monitoring strategy. • The code aims to include more than simply fair labor practices by incorporating the workplace, health and safety, the environment, and food safety and quality. • Hershey vice president for corporate affairs John Long says, “We are working with the code to build compliance from inside the company as well as our suppliers. We plan to be transparent about the code with shareholders. Our plan is to post it on our website … as we roll it out.” According to SocialFunds, Walden Asset Management has withdrawn its resolution.

7. CSR & Branding (con’t.)

8. CSR Can Be Integrated Into Branding Strategy • Cannot be a stand-alone branding strategy • Has to mirror current (or new) branding attributes • Has to be combined, and linked to, price, quality, convenience • Has to be linked to “Good for You [the consumer]” first, then can expand to rivers, labor, climate • Will not be effective unless communicated, throughout marcomm channels, and at POS

9. David Aaker Brand Equity Linkages to CSR • Relevance • Differentiation • Energy • Leverage • Clarity

10. Global Health Fellows Program Objective Build local capacity to fight infectious diseases (HIV AIDS, malaria, TB, trachoma) in developing countries Pfizer Employees • Business Strategists • Computer Specialists • Epidemiologists • Engineers • Finance and Administration • Health Educators • HR Leaders • Physician and Nurse Trainers • Marketing Specialists Time Frame3- 6 months

11. Partnership Structure Pfizer NGOs Fellows A “match.com” for NGOs and Pfizer

12. Each Partner’s Role in the Program NGOs Identify their field needs and create assignments “Hire” and manage Fellows (Pfizer employees) in the field Evaluate Fellows’ performance Pfizer Loans skilled employees to NGOs for up to six months Pays employees’ salaries and keeps home jobs open Pays all costs, including NGO overhead Fellows Focus on capacity-building objectives set by NGOs Since 2003, 90 Fellows have been deployed from over 20 Pfizer sites to26 countries. Each year Pfizer plans to send 30-40 Fellows.

13. NGO Partners Leading non-governmental organizations (NGOs) including: - African Medical and Education Research Foundation (AMREF) - Global Fund for AIDS, TB, Malaria - American Cancer Society - Elizabeth Glaser Pediatric AIDS Foundation - Family Health International - Health Volunteers Overseas - International Trachoma Initiative - International Rescue Committee - Project HOPE - Population Services International - PEPFAR/USAID

14. Pfizer Global Health FellowsUGANDA: Teaching toxic effects of HIV therapies to pharmacy students

15. Short and Long-term Benefits Benefits to Pfizer • Better understanding of needs of patients, governments, NGOs • Better on-the-ground understanding of infectious disease healthcare • Respond to employee/investor concerns about public health • Maintain “license to operate” by expanding healthcare access • Continued NGO relationship after formal fellowship ends Benefits to NGO Partners • Direct access to unaffordable analysis, planning and training • More effective program management; improved health outcomes • Understanding of how pharmaceutical industry works • Continued Pfizer relationship after formal fellowship ends

16. Pfizer Global Health FellowsVIETNAM: Surveying mother-child healthcare trends among ethnic minorities

17. Early Lessons* Learned to Improve Program Pfizer • Develop better short and long-term metrics linked to business • Encourage managers to see value of employee participation • Provide cultural sensitivity training to Fellows in advance • Streamline administrative burden NGOs • Improve coordination between headquarters and field assignment • Streamline assimilation burden of adding Fellow to staff • Give candid feedback when evaluating Fellow’s performance Employees • Be clear on assignment & working conditions before leaving home job • Plan re-entry to home job with manager *Lessons from 2003 – They were all implemented by 2005

18. Pfizer Global Health FellowsHONDURAS: Developing micro-lending program for families with HIV&AIDS

19. What About . . . Unintended Benefits? • Fellows returning home bring back new ideas. How will they influence Pfizer’s future programs or policies? • Is this a building block to an economic development approach to healthcare? Future of Program? • Encourage other corporate partners in the future • e.g., Global Technology Fellows? • e.g., Global Water Fellows?

20. Uganda: Training local nurses how to conduct anti-retroviral therapy P F I Z E R G L O B A L H E A L T H F E L L O W S

21. Next Week • CSR at Shell • Employee Volunteerism • CSR & Human Rights • CSR & Change Management • Read either The Tipping Point, by Malcolm Gladwell or Soul in the Computer, by Barbara Waugh • Come to class prepared to lay out the strategies for change and its applicability to integrating CSR into business • Following the authors theory of change, how it can apply to bringing CSR into an organization?