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Contact:
Tony Calandro, Fleishman-Hillard Inc., (314) 982-8725, calandrt@fleishman.com
Heather Horiuchi, National Consumers League, (202) 835-3323, ext. 116, heatherh@nclnet.org

EXPERT PANEL TO DISCUSS POLITICAL IMPLICATIONS OF
2007 SURVEY ON CORPORATE SOCIAL RESPONSIBILITY AT
GEORGETOWN UNIVERSITY

Panel Will Feature:
Arianna Huffington, co-founder of HuffingtonPost.com
Former U.S. Sen. Jim Talent, R-Mo.
Linda Golodner, president of the National Consumers League
National Journal columnist William Powers
Patrick J. Cleary, senior vice president of Communications for the National Association of Manufacturers and a ShopFloor.org blogger

WASHINGTON, D.C., May 9, 2007Fleishman-Hillard Inc. (FH) and the National Consumers League (NCL) will host an expert-panel discussion titled “Principles, Profits, and Politics: The Rise of Corporate Social Responsibility” on Wednesday, May 9, 2007, at 10 a.m. at Georgetown University’s Riggs Library.

The panel, moderated by Dean of Georgetown University’s School of Continuing Studies Robert Manuel, will analyze the political findings of the second annual joint FH-NCL CSR survey and its implications for the 2008 elections.

The second FH-NCL survey examined the expectations that the public has of corporate America and the factors that drive those beliefs and attitudes, including the influence of political affiliation. The survey also tracked the role that media and technology play in informing people about what companies are doing to be socially responsible.

KEY FINDINGS OF THE SURVEY

82 Percent of Americans Want Congress to Ensure Companies Meet Pressing Social Issues

Americans of all political persuasions — 96 percent of Democrats, 80 percent of Independents, and 65 percent of Republicans — say that it is either very or extremely important for Congress to ensure that companies are addressing social issues.

“These findings paint a far different picture of corporate social responsibility than the model laid out by Milton Friedman nearly 40 years ago. The American public not only expects companies to help solve social issues but also wants government to step in to ensure that they do,” said Dave Senay, president and chief executive officer of Fleishman-Hillard Inc. “As a result of the public’s expectations, next year’s elections may lead to greater governmental involvement in the role business plays in responding to societal concerns.”

Americans Disapprove of U.S. Companies’ CSR Records

More than three-fourths of surveyed Americans give U.S. companies less-than-high marks in the area of operating in a socially responsible manner.  Democrats and Independents rate U.S. corporate performance significantly lower than did Republicans.  Also, a majority of Americans believe that certain sectors — specifically, the energy, food, chemical, and pharmaceutical industries — need more government oversight than other industries to ensure that they are operating in a socially responsible way.

“The generally lukewarm perception of U.S. corporations on social responsibility, along with the prevailing belief that Congress may need to get involved, could lead to increased oversight of the private sector on Capitol Hill,” said former U.S. Sen. Jim Talent.

In addition to looking for more government oversight, 77 percent of surveyed American consumers believe that there is a need for global standards outlining corporate social responsibility criteria (an increase of 12 percent over last year's results). Furthermore, two-thirds of respondents indicate that they would make purchasing decisions in favor of a company that meets such global standards for social responsibility.

“It’s evident that consumers are paying even more attention to socially responsible behavior  and that they want to give their business to companies that meet common standards,” said Linda Golodner, president of the National Consumers League. “Efforts to help the business community improve its level of social engagement, such as international social responsibility standards currently under development, will be essential if this growing consumer expectation is to be met.”

Treatment of Employees Trumps Environment in Defining CSR

While environmental issues are currently hot topics of national media attention, the survey reveals that Americans’ priorities are more aligned with another concern — corporate treatment of employees.

For the second year in a row, respondents say that when it comes to how consumers define “corporate social responsibility,” a company’s treatment of its employees and its involvement in the community count more than its environmental stewardship. When broken down by party affiliation, Independents (42 percent) are more likely than Democrats (33 percent) (by a difference of 27 percent) to say that it is more important for a company to treat employees well. By comparison, Democrats (22 percent) are more likely than Republicans (7 percent) or Independents (13 percent) to say that it is most important for a company to go beyond the law to protect the environment.

The survey also finds that Americans expect companies to be actively engaged in the communities in which they operate, going beyond just making charitable contributions. When asked what expectations they have for companies doing business in their own communities, three times as many respondents favor nonfinancial contributions, such as community involvement and volunteerism, over financial contributions.

“Charitable contributions are still a vital component of a company’s larger corporate social responsibility efforts, but Americans expect companies in their communities to give time and expertise in addition to money,” Senay said.

The Internet Is Now the Primary CSR Information Source for Most Americans

A majority of Americans now rank the Internet as their top source for learning about the corporate social responsibility record of a company in their community. Of those respondents using online resources to check on CSR, 73 percent have used Internet search engines, such as Google or Yahoo!®, 57 percent have used Web sites of independent groups, and close to half have used corporate Web sites.

More than one-fourth of respondents who use the Internet to learn about a company’s CSR record are specifically turning to blogs or podcasts set up by customers or nonmanagement employees of companies. This finding represents a 100 percent increase over last year’s results. The survey also found that Democrats are more likely than Republicans to visit social networking sites, such as MySpace, to gather information on a company’s social responsibility record.

“Americans are changing not only their views on the roles that business and government play in addressing social needs but also the manner in which they learn about a company’s social responsibility record,” said Robert Manuel, the dean of Georgetown University’s School of Continuing Studies. “A majority of Americans now bypass television and newspapers and turn to online sources to understand the social responsibility record of companies in their community. And more and more Americans are viewing social-networking sites, where a company cannot control its message, to gather information.”

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Find More Information Online:

Related News:
Weekend Business, New York Times podcast
Fleishman-Hillard Links:
Rethinking Corporate Social Responsibility
Fleishman-Hillard CSR Blog
Fleishman-Hillard
Agency News
NationalConsumers League Links:
About the National Consumers League
About Linda Golodner, president of the National Consumers League
NCL News
Third-Party Links:
Huffington Post
Former U.S. Sen Jim Talent, (R-Mo.)
National Journal
National Association of Manufacturers
Shopfloor.org
Wikipedia Links:
Corporate Social Responsibility
Social Networks

About the Survey

In 2006, Fleishman-Hillard partnered with the National Consumers League (NCL) to conduct a second annual survey to benchmark evolving consumer attitudes toward corporate social responsibility, as well as consumer behaviors in response to CSR. The survey also tracked the role that media and technology play in informing people about what companies are doing to be socially responsible. In the first quarter of 2007, the professional interviewing service, Western Wats, conducted a quantitative survey with 2,078 U.S. adults nationwide through telephone interviews, averaging almost 30 minutes. The sampling error for the survey results reported is plus or minus one to two percentage points at the 95 percent confidence level.

About Fleishman-Hillard

Fleishman-Hillard Inc., one of the world's leading public relations firms, has built its reputation by using strategic communications to deliver what its clients value most: meaningful, positive, and measurable impact on the performance of their organizations. The firm is widely recognized for excellent client service and a strong company culture founded on teamwork, integrity, and personal commitment. Based in St. Louis, the firm operates throughout North America, Europe, Asia, Latin America, Australia, and South Africa through its 80 owned offices. For more information, visit the Fleishman-Hillard Web site at www.fleishman.com.

Fleishman-Hillard is a part of Omnicom Group Inc. (NYSE: OMC). Omnicom is a leading global advertising, marketing, and corporate communications company. Omnicom's branded networks and numerous specialty firms provide advertising, strategic media planning and buying, direct and promotional marketing, public relations, and other specialty communications services to more than 5,000 clients in more than 100 countries.

About the National Consumers League

Founded in 1899, the National Consumers League is the nation’s oldest consumer advocacy organization. Its mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. The National Consumers League is a private, nonprofit advocacy group representing consumers on marketplace and workplace issues. NCL provides government, businesses, and other organizations with the consumer's perspective on concerns including child labor, privacy, food safety, medication information, and issues of social concern including corporate social responsibility.

NCL President Linda Golodner serves on the Board of Directors of the American National Standards Institute.  She is also a member of the U.S. delegation to the International Standards Organization's Working Group on Social Responsibility, serving as the U.S. consumer expert in developing a new international standard on social responsibility. For more information, visit the National Consumers League Web site at www.nclnet.org.