2. April 20, 2011
Sustainability 2.0:
Current trends at the confluence
of social media and CSR
“We follow our customers, and so,
not surprisingly, we’re investing in
our social networking activities” –
VP, Sustainability, U.S.-based
consumer electronics company
Executive Summary 1
3. Social networks are changing sustainability reporting & stakeholder engagement
Sustainability 2.0 framework Executive summary
New Business Opportunities
1) The integration of social media
and sustainability is creating new
Sustainability & Reporting
business opportunities.
Facebook Twitter
2) The confluence of social media
and sustainability is supercharging
business performance in three
Sustainability
2.0
t
men
Blogosphere YouTube
core sustainability functions:
g ag e
n
er E
CSR
hold
website
- reporting and compliance
Stake
Marketing & Communications
- stakeholder engagement, and
- operational efficiency.
Executive Summary 2
4. Coca-Cola, Starbucks and Disney topped the Zumer/SB Insights 2011 index
Top 10 in the Zumer/SB Insights Index What sustainability professionals said about
!"#$%&'()'"*+
Rank Company Facebook Twitter YouTube Blogosphere CSR Website Fortune ranking their peers:
1 Coca-Cola 1 4 11 18 4 10
2 Starbucks 2 2 12 28 1 26
3 Walt Disney 3 8 9 31 3 19
4 Google 9 1 1 2 44 2
5 Intel 15 23 4 10 10 31
6 McDonald's 4 10 32 22 5 14
7 Toyota 27 13 25 1 8 7 • “Starbucks does a really good job. They
8 BMW 5 43 2 5 24 22
9 General Electric 36 12 20 14 2 16 are leading edge thinkers in every respect.
10 Southwest Airlines 6 3 16 36 24 12
They have pioneered this idea of fewer
Bottom 10 in the Zumer/SB Insights Index CSR measures. And, of course, their
!"#$%&'()'"*+ Twitter activities are far and away the best
Rank Company Facebook Twitter YouTube Blogosphere CSR Website Fortune ranking
40 Nestle 29 40 39 35 24 34 among consumer products companies.” –
41 FedEx 38 41 36 23 31 13
42 DuPont 38 36 38 21 38 49 Vice President, Corporate Citizenship,
43
44
Wells Fargo
United Parcel Service
35
34
39
38
42
33
17
49
40
20
39
33
UK-based high-street retailer
45 Goldman Sachs 38 43 46 8 42 8
46 General Mills 25 43 45 41 31 47
47 Costco 17 43 43 43 44 21
48 Singapore Airlines 37 31 46 48 44 27
49 JP Morgan Chase 38 43 46 45 35 18
50 Berkshire Hathaway 38 43 46 33 49 3
Executive Summary 3
5. 82% of CSR professionals to increase Facebook investment in 2011
Projected Facebook activities
Projected annual
% of companies that
expenditure on
will invest in Facebook
sustainability Facebook $409
initiatives in 2011 &
initiatives (2010-2014,
2012? $352
million, USD)
$297
18%
$259
$221
Will invest
in Facebook
Will not
invest
82%
2010 2011F 2012P 2013P 2014P
Executive Summary 4
6. Twitter will be the #1 source of sustainability news by 2015
Sustainability presence on each social network (current / future) % change
Q: How strong is your presence on each social network in 2011? 2011-2015
How strong will it be in 2015?
Twitter 2011 18% 73% 9%
+54%
Twitter 2015 72% 22% 6%
Facebook 2011 36% 45% 18%
+32%
Facebook 2015 68% 25% 7%
YouTube 2011 17% 46% 37%
+24%
YouTube 2015 41% 27% 32%
Company blog 2011 45% 18% 36%
+4%
Company blog 2015 49% 24% 27%
Strong Average Minimal
Executive Summary 5
7. Companies use YouTube to generate positive feedback and dialogue
Percent of companies creating their own YouTube content: What the professionals said:
66% of companies
“broadcast 10%
themselves” • “For the moment our self-generated
24% YouTube content is done on the cheap
purposefully. We did not want our videos to
66%
feel over-produced. We are not trying to
produce a slick video, in fact all the videos
Yes No No You Tube channel
that you find on our CSR site are
unrehearsed. The idea is to catch people
User comments on corporate YouTube channels:
95% of user doing what they would already be doing,
comments are 3% 2% describing their day-to-day commitment to
positive
environmental and social responsibility.” –
51%
Vice President, Corporate Social
44%
Responsibility, U.S.-based fast-moving
consumer goods retailer
Very positive Positive Negative Very negative
Executive Summary 6
8. The manufacturing and auto sectors have high sustainability blog rates
Industries with high1) sustainability blog activity: What the professionals said:
Average 44% 56%
Automotive 75% 25%
• “We started our corporate blog
about 5 years ago. The idea was
Consumer electronics 100%
that if other blogs are talking
Enterprise services 40% 60%
about us, we had better get our
Financial services 60% 40%
side of the story out there as
FMCG 25% 75% well. We have now found that
Food and beverages 50% 50% blogging is a very good way to
Internet services 100% have a dialogue in today’s
Manufacturing 100% world.” – Vice President,
Retail 33% 67%
Sustainability, U.S.-based
Travel 67% 33%
packaged consumer goods
company
% of companies with high sustainability blog activity
% of companies with low sustainability blog activity
1) Any company with over 3% overall blog comments relating to sustainability is defined as “high sustainability blog activity” Executive Summary 7
9. Videos, idea innovation and education are growing rapidly on CSR websites
Zumer’s five pillars of a comprehensive CSR/sustainability website
Development % companies % companies
Pillars Description Attributes trend 2011 2010 Pros Cons Industry opinion (sustainability professionals)
A Website • CSR website linked to 94% 88% • First point of contact for • Can be buried within • “Websites are becoming increasingly
corporate homepage stakeholders searching for corporate websites competitive; hard to stay on top of trends”
information
Access to
sustainability information
Reporting • Annual reports available 80% 78% • Reports provide historic • Reports can be opaque, • “Reporting is essential. It’s more effort to not
for download data and assessable metrics challenging to navigate report than to report these days.”
B Videos • Videos (on website, in 60% 44% • Make sustainability • Does not always • “We have been using videos for communication
reports, on YouTube) information digestible for reference most important from the executive team. It’s something we can
Videos
pertaining to CSR activities diverse stakeholder groups information put together quickly.”
C Sharable content • CSR content sharable to 42% 34% • Enables rapid sharing • Saturation of • “We link to Facebook and YouTube. Maybe
Facebook, YouTube and and spreading of CSR information; stakeholder Twitter next, although, we like to wait and see
Share
Twitter content fatigue what happens.”
D Commentary • Stakeholders can post 26% 24% • Creates a simple medium • Can lead to negative • “It can be hard to handle all the comments; but
publicly viewable to hear from stakeholders comments / criticism it’s a nice idea.”
Dialogue and commentary
comments on CSR website
Question & answer • Stakeholders can post 28% 22% • Companies can respond • Risk of having questions • “Q&A has been really useful for us. We can
questions and receive directly to stakeholders’ not responded to respond to complaints immediately.”
answers on CSR website CSR concerns
Idea innovation • Stakeholders to post 22% 12% • Help companies crowd- • Challenge for companies • “The drive to idea innovation platforms will
ideas on specific challenges source ideas to manage glut of ideas definitely continue.”
E Gaming • Gaming functionality on 14% 8% • Give stakeholders a way • Can take people away • “Gaming is going to be the next big
CSR website to have fun on CSR from serious CSR issues thing.”
website
Education • Educational section(s) on 54% 36% • Reach stakeholders • Education and action • “We’ve been doing this for a long time, will
Engagement
CSR website through knowledge sharing not always symbiotic certainly continue.”
& best-practice sharing
Volunteering • Ability for stakeholders 12% 6% • Way for companies to • Can lead to management • “This is a great idea. I’d love to make it
to volunteer to contribute solicit help from challenges happen.”
to specific initiatives concerned stakeholders
Executive Summary 8
10. Conclusions
Investment in sustainable social media
As companies look to 2011, three trends will Q: By how much do you expect to increase your
emerge company’s investment in sustainable social media in
2011?
1) Continued and increased integration of
sustainability and social media activity 83% of 36%
companies to
increase 28%
2) The shortening and digitizing of investment in
sustainability reports 2011
12%
3) Significant increase in sustainable social 11%
7%
media investment 6%
+25% 20-25% 10-20% 0-10% No change Negative
Executive Summary 9
11. About us and contact details
About us: For more information, please contact:
Zumer Interactive, Inc Zumer Advisory Services
Zumer provides leading corporations with research, strategy consulting and software- Jonathan Godsall, Co-President
as-a-service to improve the financial performance of their sustainability investments. jgodsall@zumer.com
With offices in San Francisco, British Columbia and London, Zumer serves both Twitter: @ZumerInc
global and local corporations seeking to uncover new business opportunities created
by the confluence of sustainability and social media. USA | 901 Mission Street, Suite 105 | San Francisco, CA | 94103
UK | 34b York Way | London, England | N1 9AB
Canada | 180 Olive Street | Victoria, BC | V8Z 1B7
Sustainability Strategy Consulting San Francisco | 415.706.8054
London | 075.8029.2672
Victoria | 250.507.6567
Sustainable Life Media, Inc. SB Insights
Thomas Miner, Executive Producer
Sustainable Life Media is the leading producer of sustainable business conferences and thomas@sustainablelifemedia.com
educational events, with supporting products and services that include targeted e- Twitter: @thomasminerjr
newsletters, training, an online learning resource and community and more. We're here
to inspire and support innovation for sustainability by linking people with ideas and Corporate HQ | Sustainable Life Media, Inc. | 608 Burlingame Ave. | Burlingame,
solutions that are creating positive change in the global business marketplace. California | 94010
San Francisco office | 602 20th Street | San Francisco, California | 94107
Corporate | phone: 650.344.9693 | fax: 650.240.1370
San Francisco | phone: 415.626.2212 | fax: 650.240.1370
Executive Summary 10
