Smart Business Magazine, Oct 2012

October 2012 Smart Business Indianapolis 11 To get buy in from shareholders about the CR strategy Knauss simply reminded them how the integrity of the company that produces a brand translates into a consumers buying decisions and therefore profitability Everyone understands the evolution of the consumer over time and how the consumer isnt just evaluating the brand but the company that provides that brand and is it somebody they really want to do business with Knauss says Its just reminding them how important it is that our values and the focus on our corporate responsibility align with the values of our consumers Having a strong CR strategy means nothing if you dont accomplish any of the goals you set out to achieve So to keep your organization accountable for progress you need to find ways to keep them engaged in the goals and focused on their success One way to do this is by tying those goals to monetary incentives Because Knauss knew he would rely heavily on his executive committee to communicate and lead progress on CR initiatives he decided to pay the companys senior executives part of their annual compensation based on Cloroxs ability to deliver against its environment goals such as for greenhouse gas emissions wastewater reduction energy use and solid waste In addition people throughout the organization need to understand how important CR programs are to the consumers you sell your brands to Knauss says So to help people see this link between CR and company performance the organization released its first official corporate responsibility report in 2010 It also highlighted its CR strategy throughout the 2011 annual report titled Think Outside the Bottle In both instances Clorox emphasized how CR ties into the companys vision and mission for employees and consumers Building this kind of high level engagement with employees is important shortterm because it drives progress on your goals and long term because it also helps you attract and retain the best talent Knauss says Overshare The No 1 way to stay accountable to your CR progress is probably the most obvious Because CR also reflects corporate values you need to also link the goals and programs back to the wants and needs of consumers Demonstrating transparency with consumers is increasingly important for companies who want to prove that their commitment to the customer is genuine Its so fundamentally different in terms of the consumers access to information the ability to really say Look I want to do business with people whose values align with my own Knauss says Youre really putting your brands at risk if those brands and the company dont connect and communicate this sense of value Instead of going on the defense Clorox has used the transparency of digital and social media as a way to increase the amount of information it shares with its consumers Although the company was the first in its industry to do so it eventually became a leader in ingredient disclosure as other businesses followed suit A consumer can go on our website pull up any one of our brands and it will give full disclosure of whatever ingredients are in there Knauss says Many initiatives that have helped Clorox reduce its environmental footprint such as using greener packaging have also reduced cost Today all of its segments have bounced back from recession lows bringing the company to 52 billion sales last year If you dont have a solid strategy around corporate responsibility and articulate that strategy to people in a compelling way youre missing half of the demand creation equation Knauss says HOW TO REACH The Clorox Co 510 271 7000 or www thecloroxcompany com Create a formal commitment TAKEAWAYS Get key groups on board Find ways to raise engagement At the end of the day a brand is a promise of performance Don Knauss chairman and CEO The Clorox Co