In his webcast, Professor Bhattacharya will point out that it is not enough nowadays for companies to "do well" (Profit). Companies need to "do good" as well for communities (People) and the environment (Planet). Achieving this triple bottom line (People, Planet, Profit) is not a zero sum game but these linkages and strategies are often underexplored as most companies are largely in the dark when it comes to understanding how their stakeholders think and feel about their Corporate Responsibility (CR) programs. Based on the research in his book, Prof. Bhattacharya suggests that stakeholders' responses to a company's CR initiatives are driven by three levers: Understanding, Usefulness and Unity (the 3U's model). Drawing on empirical research insights, Prof. Bhattacharya points out how companies can maximize the value of their CR initiatives by fostering strong stakeholder relationships to develop, implement, and evaluate compelling social responsibility programs that generate value for both the company and society. (https://conferenceboard.adobeconnect.com/p18cj63dm07/)

1. Conference KeyNotes
The Triple Bottom Line: Not a Zero Sum Game
from the 2012 Corporate Citizenship and Sustainability Conference
1 © 2012 The Conference Board, Inc. | www.conferenceboard.org

2. Introduction
Thomas Singer is a researcher in corporate leadership at The
Conference Board. His research focuses on corporate social
responsibility and sustainability issues. In addition to his work
at The Conference Board, Singer serves as an independent
consultant advising on corporate sustainability strategy. Prior
to joining The Conference Board, Singer worked with Blu
Skye Sustainability Consulting and SustainAbility, helping
clients embed sustainability into their core business. Over his
career, he has supported engagements with industry leaders
across sectors, focusing on strategy development,
opportunity assessment, competitive analysis, and
stakeholder engagement. He began his career as a
management consultant with Kaiser Associates, advising
clients on white space opportunities, competitive analysis,
and benchmarking. Singer is a graduate of Tuft University.
2 © 2012 The Conference Board, Inc. | www.conferenceboard.org

3. Introduction
CB Bhattacharya is Dean of International Relations and
E.ON Chair Professor in Corporate Responsibility at
ESMT European School of Management and
Technology in Berlin, Germany. He is an international
expert in business strategy innovation aimed at
increasing both business and social value. His
research and teaching focuses specifically on how
companies can use underleveraged “intangible assets”
such as corporate identity and reputation, membership
and brand communities, and corporate social
responsibility and sustainability to strengthen
stakeholder relationships.
3 © 2012 The Conference Board, Inc. | www.conferenceboard.org

4. The Triple Bottom Line:
Not a Zero Sum Game
The Conference Board
Corporate Citizenship & Sustainability Conference
CB Bhattacharya,
Keynote Webcast
Dean of International Relations
E.ON Chair in
Corporate Responsibility October 9, 2012
ESMT, European School of
Management and Technology

5. 10/19/2012 © C.B. Bhattacharya: All rights reserved 5

6. Doing well by doing good
Doing well
Doing Well
Doing Well
Doing Well
Triple Bottom
Line
Strategic CR
Doing good
Doing Good
CR
“A company’s long-term success, and sometimes even existence, is
inextricably tied to its stewardship of not just its own well-being but also of the
natural and social environment in which it operates.”
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7. Two routes to CR value: direct & indirect
Business
Outcomes
CR
CR Societal Value
Inputs Outcomes
?
Stakeholder
Reactions
(Economic,
Social,
Environmental)
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8. Direct route to CR value
“Reducing your emissions goes hand-in-hand with reducing your costs.”
(Bob Gordon, British Retail Consortium)
Marks & Spencers Plan A
Investment £40 million
Revenue £50 million
http://www.youtube.com/watch?v=aIrHzxkiaeE&feature=related
• Reduced total carbon emissions by 8 percent
• Improved store energy efficiency by 19 percent
• Reduced store refrigeration emissions by 18 percent
• Improved general merchandise delivery fleet efficiency by 30 percent
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9. Stakeholder reactions to CR
CR INPUTS CR VALUE
Domain Business
Investment
Social
Level
Environmental
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10. Research overview
• Mix of qualitative and quantitative methods
− Focus groups, depth interviews
− Surveys, experiments
− Secondary data analysis
• Multiple companies
− Procter & Gamble, General Mills, Walmart, Target, Danone, more
• Stakeholder groups: consumers and employees (several 000’s)
• Geographic focus: U.S. and Europe
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11. How stakeholders interpret CR
Unity
10/19/2012
11 © C.B. Bhattacharya: All rights reserved

12. Understanding
 Awareness
 Attributions
Participants perceive both intrinsic (care for the community) and extrinsic (way to market
products) motives
“It’s a form of marketing to get their products out but it also helps the community.”
“They want to help the community but also to make a name for themselves and gain
popularity.”
Endorse extrinsic motive
“It‘s good because they are going to help us along with themselves.”
 Effectiveness
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13. Usefulness
CR initiatives that fulfill “customer” needs create more value
• Functional benefits
• Identity related benefits
Leads to well-being, loyalty, positive word of mouth
• “One of the things that keeps me here is some of the positive things that we do in
the community.”
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14. Unity
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15. Test of 3U’s framework - employees
Understanding CR Value
CR
Associations -.94**
.11** Intent to Leave
CR
Efficacy
Unity
.05** .19**
Identification Work Effort
.12**
Usefulness .98**
Loyalty
CR .08**
Self-esteem
CR Work-Home
Integration
10/19/2012 © C.B. Bhattacharya: All rights reserved 15

16. Yogurt study
Test of 3U’s framework - customers
Understanding
CR Value
CR .14**
Efficacy
.66**
Purchase intent
CR
Genuine Concern Unity
.04** .40**
Identification Premium
Usefulness .51**
.16** Resilience to Negative
Self-esteem Information
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17. CR integral part of business strategy
High Innovativeness
3 High Product Quality 3 Capability
Low Product Quality Low Innovativeness
Capability
Market Value
Market Value
Tobin's q
2 2
1 1
0 0
2 4 6 8 2 4 6 8
CR Ratings CR Ratings
Luo & Bhattacharya (2006)
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18. Overall insight
Does it pay to be good?
- Two words:
“It Depends”!
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19. Mainstreaming sustainability:
Sustainable Business Roundtable (SBRT)
Why SBRT? Value Proposition
• Managers unclear how to use • Pair-up sustainability officers with other
sustainability to their advantage departments (Procurement, HR, IR…) to
foster collaboration
• Sustainability department “outshouted”
by other departments with shorter term • Develop shared understanding to
pressures mainstream sustainability
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20. Thank You!
Professor CB Bhattacharya ESMT
European School of Management
and Technology
E.ON Chair Schlossplatz 1
in Corporate Responsibility 10178 Berlin
Dean of International Relations
Phone: +49 (0) 30 21231-1528
Fax: +49 (0) 30 21231-1281
cb@esmt.org
www.esmt.org
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