TESCO's Corporate Social Responsibility

   Corporate Social Responsibility (CSR) is something that companies are obliged to do to fill out the check list required by society--- this is what I have believed. After I joined the breakfast meeting with Andrew Hill, Climate Change Manager at Tesco this week, I realised that companies could not continue their business if they don’t take CSR seriously.

   Why does TESCO do climate change? “Our business has been successful. We want sustainable growth. We want to be there in 2020”, Andrew explains the background clearly. In order to tackle the issues, TESCO has to take the responsibility of supply chains and customers who emit 10-100 times as much carbon as the company. While working with supplier and customers, the company aims to reduce CO2 by one third by 2020 and become zero carbon footprint by 2050. So far, TESCO has saved ₤150 million a year for energy efficiency in the buildings.

   As the CSR Report declares that “We aim to build long-term relationships with suppliers, so getting regular feedback from them is a high priority”, TESCO created “Knowledge Hub”, an electronic platform where the company and the suppliers share information about carbon reduction. Now it has got more than 400 members from different countries. “It helped move suppliers’ relationship more into collaboration”, Andrew added.
   In contrast, it still seems hard to connect customers with sustainability which has become a cliché when we talk about CSR or environmental issues, although the London Olympics really likes the jargon. TESCO carbon footprinted over 1,000 and labelled over 500 everyday products in the UK, but how many customers understand the complicated logic? Carbon is produced in agriculture and transportation as well as packaging. Some process may produce more carbon than it looks.
   So, how do you get the message across? It is complex, nuance, based on detailed science. The PR consultants from PRCA who gathered at Burson-Marsteller’s London office, formed a group of 5-6 and had a mini discussion. My idea is profiling different types of customer families based on their life style and values, so that the newspapers and TVs can feature the story of the family to show what the kind of activities could give an impact on earth.
   The questions suggested here can never be answered because what people expect for CSR and what companies have to do for CSR will change year after year. However, there should be better solutions one of which I hopefully can suggest in my master dissertation.

HSBC reacts to scandal proactively

   The scandal of mis-selling long-term care bonds cost a lot for the executives of HSBC who faced cuts of their bonus. On the other hand, the PR team of HSBC seems to have mitigated the damage of the bank’s reputation while public opinion is still fuelled by the media. Especially after the scandal was exposed, they did a good job in media relations.

   In December last year HSBC announced that it received ₤10.5m fine over inappropriate investment advice by NHFA, the UK’s leading adviser on long-term care funding, which joined HSBC group in 2005. The sales persons from NHFA sold financial products to elderly customers expected to die before the bond period was over. The amount of compensation to be paid to the 2,485 victims sums up to ₤29.3m in addition to the fine. After the Financial Services Authority (FSA) and HSBC issued press releases, major news agencies reported it as HSBC’s scandal although NHFA had not been audited or regulated as HSBC UK Bank operations until 2010.

   In terms of crisis management, HSBC did it right. Brian Robertson, Chief Executive of HSBC Bank, fully accepted the failure and said “I am profoundly sorry that it did. We have high values here at HSBC and this runs contrary to everything that we stand for. That is why when we suspected something was not right at NHFA, we took action.” He seems to try to protect HSBC’s brand by cutting NHFA quickly and succeed in drawing the line between HSBC and NHFA. In addition, he promised to deal with the issue sincerely by saying “We will be contacting them (the customers) directly --- with the aim of putting things right as quickly as possible.” It was good for HSBC to address key stakeholders exclusively.

   Moreover, after three day, HSBC stated that it will accept complaints going back to 1991 although it took over NHFA in 2005. For those who are already dead, the bank allowed their families to make a claim. The rhetoric of Robertson was excellent in saying, “We will certainly look at each complaint individually and sympathetically” which again showed apology about what happened. The releases from HSBC included full set of trust, logic and emotion which are vital to convey a strong message. Since HSBC has decided to take all responsibility, there has not been extremely hostile coverage of the media. HSBC had gone ahead of the media which might have required the bank to take wider responsibility.

   However, the bank will also have to keep the investors updated because it has lost the credibility after a breakdown in the computer system which stopped the ATMs and internet banking in November 2011. It would be challenging for the PR team to recover the damaged reputation of the giant bank and communicate with other marginal organisations in the HSBC group like NHFA.

Active PR pros disclose their use of social media to get a job

   On the last day of the social media week in London, three PR pros and one recruitment consultant talked about the way to catch the eyes of recruiters by using social media. Some people may think that students should hit the text books instead of putting digital cosmetics on your CV, but not at all. It's worth promoting yourself in the virtual world. You may realise how many people are looking for the talented students on the other side of the real world.

Every speaker has got a different approach

   Friday Afternoon Social Media Mashup for Business Students took place at London Metropolitan University on Friday. Ms Katerina Hejralova from Citigate Dewe Rogerson advised to google my name to check what other say about me in the first place. What she had done to get a job is to upload her portfolio with some essays, place CV on LinkedIn, publish your thoughts on blog and Twitter. She did not register for any agents, but a recruiter found her. There are lots of ways to show your skill such as sending URLs of YouTube like these guys; Rachael Lewis, Graeme Anthony.

   Ms Gugs Sembi also from Citigate Dewe Rogerson introduced a lot of tools to monitor social media. Facebook: Insights, Twitter: TweetDeck, Hootsuite, Splitweet, Twitter counter, Tweet stats and many others. There are also Social Mention, Brand Watch and Topsy. Honestly I am overwhelmed by new names, but soon I will catch up.
   On the other hand, we have to be careful not to over promote ourselves. Social media is double edge sword and it's impossible to stop people telling something bad about you instead. This is the point that Mr Anton Davidenko from Moonlight Media made. A student sent the worst cover letter ever to J. P. Morgan and soon the copy was spread around Wall Street.
   Ms Samantha Glazer, a recruiter specialising in PR/communications, also warned that social media profile can affect job prospects. However, in terms of employability, it is useful to check "PR Job Watch" on Facebook and put hash tags #prjob #prgradjobs on your tweets, she added.
   The implication of this session is that if you can't PR yourself using social media, you can't PR somebody else. Social media is a vital tool both before and after you get a job.

Make the whole country feel part of London 2012

One mum from a local judo club in London told me that she does not care about the London 2012 Olympics. She even went on to criticise it of causing traffic jams and as an inconvenience of her everyday life. She moans even though she, as a qualified teacher with a black belt, should be enthusiastic about sports.

The problem she has is not with the Olympians, but rather with the national association and local authorities that do not see grassroots communities like her judo club as an important partner. While Olympic families, ticketholders and sports fans are already supporting the Olympic, it is vital to reach those who have not benefited from the games.

I suggest that all the city councils should enter into partnership with one athlete; “One Council One athlete Movement”. Ideally the partner councils are where the athletes are born, have lived or trained. The councils spread the news about the athletes through the newsletter, website, blog, Twitter and Facebook and invite the athletes to schools and nursing homes. The councils also could host a competition for the tickets of the sports the athletes are competing.

The similar scheme was tested during the World Exposition in Aichi, Japan in 2005. All the 121 countries signed on the friendship with local governments in the region where the Expo took place. The project gave a great impact on the citizens and one small city evolved it into Memorandum of Friendship with Qatar two year later.

Usually people become enthusiastic about this kind of international events just before they start because there are lots of sports to watch such as football and tennis. However, the councils should launch the partnership project immediately with the help of the government, communities and consultants.

The Iron Lady

   The Iron Lady hits the UK theatres at the best moment for the Conservative. The movie featuring the former prime minister, Margaret Thatcher's struggle with the single currency and workers' union reflect what is happening right now. We are fed up with Euro crisis and unions' strikes. I am sure the present Prime Minister, David Cameron, is happy with the movie supporting him.

Meryl Streep as Thatcher

   Last month Cameron refused to sign up to changes of EU treaty and bailout plan to save Euro while the other 26 member countries reached an agreement. Despite the strong criticism from France, Germany and the UK Labour Party, Cameron's veto was widely approved by the UK citizens. In addition, this movie seems to show that Thatcher and Cameron were right; both of the Conservative politicians never compromised on Euro.
   The movie also reflected on the days when people throw away rubbish bags on the street and nobody clean them up because unions were so strong decades ago. That reminded me of the nationwide industrial action in November and Tube strike on Boxing Day. Cameron could also be tough on unions, I think.
   What would this movie be like if the Labour was in power now? Or, would this movie be released when we have a prime minister for the Labour? I don't know if the PR team for the movie has waited the timing for long time, it's working well. At least, I felt sympathy with Thatcher as well as the Conservative.

Newspapers heavily depend on PR

   More than half news stories in daily newspapers come from PR source; Nick Davies reveals a striking report filed by researchers from Cardiff University. In his book, Flat Earth News (2008), the Guardian's reporter attacks the corrupted newspaper industry. As I had worked as a journalist for 12 years until last summer, I got interested in what he says and took a look at a newspaper in the UK.

   The 29th of December 2011 issue of the Guardian. Three articles carried clear sign of PR. The one discussing house prices occupied half of page 5 with a photo and the list of expensive addresses. The source is Lloyds TSB which sets the embargo for their press release at after 00:01 hours 29 December. The other from the charity named Barnardo's contributed to a quarter of page 13, criticising rent-to-own credit firms of charging too much on customers at their press release. There was also a small article on page 17 about Sainsbury's staff trained to help "hidden carers" with Carers UK. This is "old" news because the charity has already issued the press release a month ago. In addition, two articles are generated from the government's reports: "One in four hospital patients 'could be recovering at home'", "Low-carbon energy 'no dearer than doing nothing'".
    Five of these articles are all about statistics as Davies states "PR fabricates pseudo-evidence, surveys, polls and specially commissioned research. Surveys are a favourite, usually for commercial PR, usually released on a Sunday to fill the news vacuum of Monday morning's papers." As for the Guardian's articles, it was after Christmas and there are few people working, no schools. Apparently journalists must have had difficulty in picking up fresh news, gave up and then searched for usable releases. With fewer journalists and more commitment on online articles such as real time blogs, journalists don't have enough time to find original, exclusive news.
    "So is public relations taking advantage of a weakened news media system?" Coombs and Holladay (2010) says shortly "yes" and go on to argue "As the news media increasingly need a media subsidy, public relations benefits and may have a greater ability to shape news content." I think it also means public relations practitioners should be as responsible and ethical to what they produce as journalists. Be careful with a con man. Don't work with representatives from problematic countries.

Santa Clorry

   I was lucky to find Coca Cola Santa Clause lorry at North Greenwich last week. The lorry with the licence plate "SANTA 1" really looks like sleigh with Santa.

   Coca Cola's campaign with the lorries seems to have a long tradition and is promoting Coca Cola's reputation by giving out free drinks and inviting celebrities at the opening ceremony. In the UK, two lorries visit 100 towns and supermarkets from Ireland to England, Wales until 23rd December. Want to find out where they are? Coca Cola recommends you to click the website "keep on trucking" (Nice rhetoric). There are lorries in Japan as well.
   In order to stand against the criticism about the vehicles' fuel and emission, the company offsets carbon emission which means buying the right to drive and emit gas. The money paid for the right will be spent for activities to reduce carbon. It turns out the company can demonstrate the sincere attitude towards environmental problems seriously. I believe nobody would feel bad when they come across the lorry because it's Christmas and people become more generous. Pepsi could not paint the lorry in the way Coca Cola does. In this sense, Coca Cola is taking advantage of the image of brand.
   Again it's Christmas. I don't feel like criticising the campaign this time. Maybe next time.