On first point: website is key for both users and companies – they AGREE! The GRI index isn’t enough when it comes to the web – formal box ticking makes for dry, technical and lifeless communications. On last point: danger of default tone of official corporate communications – only good news, spin, bury the bad news, distant and one-way communication Also: problem of honesty. Companies are generally not so good at admitting to failings, but that’s a key part of CSR – discovering what isn’t adequate and fixing it.

The idea was to focus on those companies that absolutely have something to say – all these companies we can be sure have plenty of information and the resources to devote to the internet. Decided it would be interesting to see what we found – expecting to unveil lots of best practice examples about what leading companies are doing in CSR communications.

The worst websites reflect too faithfully an internal organisation of the company and its labels and language. Web navigation has to be intuitive and fast – we’re all in a hurry and terribly impatient when using the internet.

An international model emerges: responses were quite decisive on many points, despite the wide variety of countries and professions represented. Even quite close relationship between CSR managers and their audiences

Focus on the last two elements. Created a lot of problems, especially with online reports.

This test has a highly symbolic nature becuase it tests reponsiveness of email enquiry – we asked for SRI information too! We threw out the automatic responses!

In our view, best practice online CSR communications are based on 6 pillars. (some will be addressed later in the day). Information on corporate websites needs to be: comprehensive: a website must satisfy all the needs of its key users, reducing their need to go elsewhere for corporate information integrated: a website must work as a whole, with one ‘voice’, and link different sections wherever possible (CSR, corporate governance, investor relations, careers, etc.) open: a website must speak to all audiences using language that is accessible to the general public, not just for experts, and give a timely response to any feedback received user friendly: a website must allow users to find what they are looking for with minimum time and effort through intuitive and jargon-free navigation engaging: a website should employ a range of multimedia tools – including video, animation, images, graphics and interviews – to draw its audience in, tell a dynamic story concrete: hard fact, data and case studies should take precedence over self-promotion and commercial messages

Online CSR Awards ‘Global Leaders’ 2009 London - November 2009

The rationale behind the research Corporate website has emerged as most important vehicle for CSR communications But public distrust has been generated by too much ‘greenwash’ and exploitation of CSR for purely PR goals Need for a communications model that goes beyond the CSR report and a way to measure the efficacy of messages on the corporate website Importance of reputation as intangible value of CSR The “leaders’ dilemma”: how do I distinguish my genuine, integrated and committed CSR programme from those who are just making empty proclamations?

CSR communications from global leaders We studied the best companies in CSR globally to assess the quality of their online CSR communications, discover strengths and weaknesses and gather a database of best practice examples The study evaluated how well 91 members of the DJSI use their corporate websites as a platform for CSR communication Also country rankings in Italy, Switzerland, UK and Germany A total of 76 criteria were used, divided into 18 sections and giving a total of 100 points The analysis included both CSR content and online presentation The criteria were developed on the basis of a survey of CSR professionals and sector experts

Criteria founded on users’ point of view 184 people answered the online survey 30 nationalities were represented A wide range of professional categories included Respondents had many years of experience in CSR They said they regularly search for information about CSR online – seven out of 10 at least several times a week

Main findings of the user survey CSR is seen to have gained public attention during the financial crisis Corporate websites considered a key source of information Priority content includes CSR report Code of ethics Environmental data Corporate governance viewed as core component of CSR-related information

Methodology 91 companies chosen on the basis of membership of the Dow Jones Sustainability World 80 Index, plus 2008-09 supersector leaders 100 points maximum from 76 criteria, divided into 18 sections The analysis included both CSR content (10 sections totalling 61.5 points) and online presentation (seven sections totalling 37.5 points) English language version of corporate websites assessed by Lundquist in April-July 2009 Assessments restricted to the CSR (or equivalent) section of the website and to content directly linked from section Contents of CSR reports excluded except whenever a direct, specific link was provided to the relevant page or pages

Top-performing sections related to disclosure and reporting

Industries with environmental impact lead

Europe outperforms US Result may be explained by the attention European companies give to corporate websites, while US focus is more commercial US companies more oriented to communication of community commitment, providing news releases and integrating technological features In Europe, and especially the UK, the approach is more rounded with companies focusing in an integrated way on the various aspects of CSR

Most companies provide key information but… Average score of 60% for reporting section 60% for report format 83% for report archives 89% for code of ethics 68% for environmental data 53% for environmental management system

Still in offline mode of communications 12% was the average score for providing details of a profile from an SRI ratings company Average score for the interactivity section was 20% Average score of 18% for staff and contact information 55% don’t give CSR targets of any kind 13% was scored on average for showing how CSR staff fit into the organisation chart 44% of companies don’t define their stakeholders 62% don’t present CSR hot topics for the company Only half of companies publishes CSR-related news 91% don’t publish CSR events

Practical test unveils dead-end of feedback

Assumptions and recommendations of the research Comprehensive Integrated Open 2 User friendly 1 Engaging 5 Concrete 6 3 4

Thank you James Osborne james.osborne@lundquist.it