Responsible Business Summit 2011

The 2011 Business Case for Continuous Stakeholder Engagement

Dan BenaSenior Director

Sustainable Development

Everyone likes to be liked…

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…and so do companies!

“…one of the most important ways to rebuild the system

stronger than before is to rebuild trust stronger than before—

and you do not have to wait for a new law to do that.”

President Barack Obama, speech to financial community, Federal Hall,

New York. September 2009

…and relationships are all about trust

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Corporate reputation is now based on trust and transparency as much as quality

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B63.-72. How important are each of the following factors to the overall reputation of the company? Please use a nine-point scale where one means that factor is “not at all important” and nine means it is “extremely important” to overall reputation. (Top 2 Box, Very/ Extremely Important) Informed Publics ages 25-64 in 22 countries

It’s a stakeholder, not a shareholder, world—and stakeholders are crucial to business success

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D83. When a CEO makes business decisions for his or her company, which stakeholder SHOULD BE most important to a CEO’s business decisions? Informed Publics ages 25-64 in 22 countries

Which stakeholder should be most important to a CEO’s business decisions?

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• Over the years, the landscape of stakeholders has changed significantly

• Due in large part to social media and e-communications, smaller stakeholder groups have gained power

High PowerLow Interest

High PowerHigh

Interest

Low Power High

Interest

Low PowerLow

Interest

Po

wer

InterestCritical lesson: It’s great to try to engage many diverse stakeholders—BUT—it’s also okay NOT to engage with everyone!!

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Stakeholder: the general populace

Companies “held completely responsible for,” average of 32 countries

Minimizes use of preservatives & artificial ingredients in its products 65% 69% 70% 77% 75%

Uses environmentally friendly packaging 65% 70% 75% 75% 73%

Minimizes air and water pollution 63% 67% 71% 70% 74%

Supports schools & community groups and charitable organizations 63% 64% 69% 65% 69%

Works with local government/community organizations

to reduce waste and litter61% 64% 67% 66% 71%

Supports farmers & suppliers and acts in their best interest 60% 64% 64% 65% 73%

Stakeholder: PepsiCo’s Consumers

Project Atlas: 9,000 PepsiCo consumers, 9 countries

Stakeholder:Key Customers

Stakeholder: the Investment Community

534 institutional investors$64 trillion in assets under

management

Ideally, stakeholder dialog is about communicating, inspiring, engaging, and turning your audiences into advocates

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…and you must understand what is important to your stakeholders and why…