Corporate Social Responsibility and - Convercent · 2014 (N=1,142) 2015 (N=3,543) 2016 (N=3,588) 2017 (N=3,752) Please rate your concern for each of the following types of risk and

Corporate Social Responsibility and Ethics in the Age of the CustomerRenee Murphy, Principal AnalystSecurity and Risk Management

© 2015 Forrester Research, Inc. Reproduction Prohibited

Agenda

› Ethical Failure Hall of Fame› Ethical Failure Impacts Reputation› The Advantage of Ethics


Ethics MatterEthics Failure Hall of Fame


Unethical Sales Practices

Questionable Ethics


Unethical. Period.


Safety Failure

Cheated Emissions Testing


Industry Wide Damage

“Daimler Chairman Manfred Bischoff consented, releasing compliance chief Christine Hohmann-Dennhardt from her contract so that she can take over a new VW management-board position focused on integrity and legal affairs.” – Bloomberg.com

13© 2017 FORRESTER. REPRODUCTION PROHIBITED.

CSR Risk Is Growing!

Base: Global security decision-makers who are “concerned” or “very concerned” about CSR and environmental sustainability riskSource: Forrester Data Global Business Technographics Security Survey, 2014; 2015; 2016; 2017

35%40% 41%

46%

2014 (N=1,142) 2015 (N=3,543) 2016 (N=3,588) 2017 (N=3,752)

Please rate your concern for each of the following types of risk and the potential impact they could have on your organization.

Corporate social responsibility and environmental sustainability risk


CSR Risk Is Higher For Enterprises… and Growing Faster!

45%46%

48%

51%

2014 (N=432) 2015 (N=1,713) 2016 (N=1,632) 2017 (N=1,700)


Corporate social responsibility and environmental sustainability risk

Base: Global security decision-makers at firms with 1,000 employees+ who are “concerned” or “very concerned” about CSR and environmental sustainability riskSource: Forrester Data Global Business Technographics Security Survey, 2014; 2015; 2016; 2017


CSR Risk Is Growing Everywhere!

Base: 78-1,387 Global security decision-makers who are “concerned” or “very concerned” about CSR and environmental sustainability riskSource: Forrester Data Global Business Technographics Security Survey, 2014; 2015; 2016; 2017

29%34%

39% 38%

29% 29% 32%38%

50% 51% 53% 54%47%

59% 57%

70%

2014 2015 2016 2017


[CSR and environmental sustainability risk]

North America Europe Latin America Asia-Pacific


Base: North American online adults (18+) Source: Forrester Data Consumer Technographics® North American Online Benchmark Survey (Part 1), 2015 & 2016

69%

46%

29%

75%

52%

32%

My health and wellness are priorities for me I consider myself to be environmentally conscious

I regularly purchase organic or natural products

Rise of the informed consumer

2015 (61,222) 2016 (60,049)


Base: 33,471 US Online adultsSource: Forrester Data North American Consumer Technographics Online Benchmark Survey (Part-2), 2017

33%

19%

65%

39%

29%

22%

28%

51%

13%

When I find out media content (i.e., online or print articles, videos) is sponsored by a brand, I trust it less

I think it's unethical for brands to disguise their advertisements as media content (i.e., online or print articles, videos)

It's ok for companies to track my activities across multiple devices to send me more relevant ads (e.g., use my mobile browsing history to

show related ads on my laptop or desktop)

How strongly do you agree, if at all, with each of the following statements?

Do not agree Neutral Agree


Agenda



Brand promise

Brand experience

Brand resilience

Resilient brand Vulnerable brand

Risk pros’ role: Ensure the brand experience aligns with the brand promise


All Incidents Have Impacts


Agenda



Ethics as a Competitive Advantage


Reputation is an even greater concern in the age of the customer

Source: “Dissecting Global Risk Perceptions And The Effects Of Customer Obsession” Forrester report


…One More Thing


What if…?

If… had the reputation of…

their stock would rise…

• 3.3% ($4 billion in market share.)

• 6.2% ($2 billion in market share)

• 6.9% ($3.9 billion in market share. Source: Mission: Intangible: Managing Risk and Reputation to Create Enterprise Value, Dr. Nir Kossovsky


Does it really matter?

Best

Wor

st


Security Breach


Quality Breach

Thank you

forrester.com

Renee [email protected]/renee_murphy

Documents

Corporate Social Responsibility and - Convercent · 2014 (N=1,142) 2015 (N=3,543) 2016 (N=3,588) 2017 (N=3,752) Please rate your concern for each of the following types of risk and