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BRAND
TRUSTED
AND RESPONSIBLE
WE HERE AT SGB
have dedicated ourselves to researching exactly how to successfully implement SEI and have found that the secret (which, ultimately, is also the key to a lasting brand-consumer relationship) is consistency. it seems simple, but weve seen time and time again brands who are doing wonderful things in some areas, but need major attention in other areas. its this dissonance that not only hurts the reputation of a company and damages brand-trust, but perhaps even subverts any benet gained from the original effort.
BEFORE WE GO ON
lets dene what we mean by consistency.
obviously, consistency means being systematic and regular, but when it comes to business, it also refers to ingraining certain habits and expectations into every and all processes--and more importantly, habits & processes that dont die with turnover. additionally, its helpful to know that consistency gains more power when it is initiated internally, and when companies start with what theyre already good at.
therefore, here is
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rms engaged in SEI experienced a positive overall change on their bottom lines (ROA) when their engagement was consistent, initiated internally, and if projects were closely related (they were able to use the same resources for several projects). inconsistent engagement saw a negative effect on ROA*.
rms lost money when SEI engagement was externally oriented. rms that initiated change from within, and focused on governance, diversity and employee relations saw a profound increase on ROA.
due to their correlation, we can also infer from the data that both internal initiation and project relatedness have a synergistic result on ROA--when applied together, the two variables create an even more enhanced effect than they would alone.
*Whats the difference between ROA and ROI? Return on Investment measures whats been gained from a specic sum or resource pool that has been applied towards a project, usually during a specic time period. Return on Assets measures the effective use of assets the business already has. if you were to divide your net income by your total number of assets, you would come up with your return on assets. it answers the question: how effective are managers at utilizing what they already have?
GOVERNANCE
high performing companies put a much greater emphasis on social and environmental considerations at board level, while the poorly performing rms are far more likely to have nobody in charge of sustainability issues.3
DIVERSITY
studies show that companies with a high level of gender diversity outperform companies with an average level in terms of
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11.4%
vs.
return on equity
average
operating results
11.1%
vs.
64%
vs.
10.3%
average
5.8%
average
47%
SUCCESS
CREATE AN IMPACT MAP
an Impact Map is an essential part of consistency. it allows you to map out current initiatives, identify every point of impact of the brand (inside & out), and pinpoint both inconsistencies and opportunities. small efforts here and there have their perks, but a bonade SEIP program requires inner strength. its about substance, not surface. embed the SEI mindset into everything: job descriptions, lists of responsibilities, office memos, employee parties, incentives and benet schemes, the company mission, strategies, campaigns, and long term goals--we mean EVERYTHING. make it an integral part of not just business operations, but infuse it into company culture.
STEPS TOWARD
if youre going to commit, make sure you mean it, and embrace consistency.
FOOTNOTES
1 See our Millennials Ebook: http://www.sociallygoodbusiness.com/knowledge/ 2 Tang, Zhi, Clyde Eirikur Hull, and Sandra Rothenberg. How corporate social responsibility engagement strategy moderate the CSR-nancial performance relationship. Journal of Management Studies 49, no. 7 (2012): 1274_1303. 3 Doing good: business and the sustainability challenge. Economist Intelligence Unit. Feb 2008. http://graphics.eiu.com/upload/Sustainability_allsponsors.pdf. 4 SAP Integrated report. http://www.sapintegratedreport.com/2012/en/key-facts/connecting-nancial-and-non-nancial-perfor mance.html 5 Spector, Dina. The simple way Stonyeld Farm cut $18 million in expenses. Business Insider. Feb 2012. http://articles.businessinsider.com/2012_02_23/strategy/31089980_1_organic-farming-stonyeld-farm-s amuel-kaymen/2