The Impact of Equality and Values Driven Business

SPECIAL REPORT The Impact of Equality and Values Driven Business Insights from over 1,500 business professionals on workplace equality and values driven leadership trends

Special Report About This Report 2 For this special report, “The Impact of Equality and Values Driven Business,” Salesforce Research surveyed more than 1,500 business professionals to discover: • Changing expectations of businesses’ role in society • The customer impact of values driven companies • Employee benefits of fostering a culture of equality Data in this report is from a January 2017 survey that generated responses from 1,514 full-time professional, managerial, and administrative employees in the U.S. All respondents are third- party panelists (not limited to Salesforce customers). Due to rounding, not all percentage totals in this report equal 100%. All comparison calculations are made from total numbers (not rounded numbers). Salesforce Research provides data-driven insights to help businesses transform how they drive customer success. Browse all reports at salesforce.com/research.

Special Report Table of Contents 3 I. Equality and Values Help Drive the Bottom Line..................................... 4 01. Companies Are Called On to Impact Society...................................... 5 02. Employees Reveal Gaps in Workplace Equality .................................... 6 II. Business and Social Impact Go Hand in Hand ...................................... 7 03. Customers Want to Do Business with Companies That Give Back.................... 8 04. Companies Can Go Beyond Traditional Philanthropy to Drive Impact ................ 9 05. Business Leaders Are Becoming Societal Leaders................................. 10 III. Commitment to Equality Drives Employee Success ............................... 11 06. Inequality Persists in Today’s Business Culture.................................... 12 07. Workplace Equality Influences Employee Engagement............................ 13 08. Inclusive Culture Boosts Employee Productivity .................................. 14 09. Business Leaders Prepare to Address Equality Gaps............................... 15 IV. Last Look: Steps to Leading an Equality and Values Driven Business ................ 16 SalesfoSalesforrccee RReeseasearrcchh Salesforce Research

Special Report 4 Equality and Values Help Drive the Bottom Line Salesforce Research

Special Report 01Companies Are Called On 5 to Impact Society Increasingly, business leaders at high-profile companies A Majority of Professionals Expect Companies to Deliver are outspoken about more than just the traditional Social Impact bottom line — they also advocate for social issues and values that matter to their customers and employees. Customers and employees want to work for and purchase from companies that As revealed in our research, this “values driven” approach care about more than the bottom line. to business resonates with the modern business professional and, in turn, can create stronger customer loyalty, increase employee morale, and positively impact the company’s surrounding communities. This philosophy has even affected the way many companies present their brand: Today’s top marketers are 2.2x more likely than underperformers to leverage purpose-driven marketing to reflect the values of their company, brands, and customers.* With more information at their fingertips, customers 80% and employees can make more educated decisions about the businesses they purchase from and the of business professionals believe companies they work for. In fact, 70% of consumers businesses have a responsibility and 82% of business buyers say technology has made to look beyond profit and make it easier than ever to take their business elsewhere.** a positive impact on society Today’s business professionals consider more than typical factors such as pricing, salary, and brand recognition when choosing an employer or company to purchase from — they also emphasize the importance of businesses that care to make a social impact. Eighty percent of business professionals believe companies have a responsibility to go beyond profit and make a positive impact on society. * “State of Marketing,” Salesforce Research, June 2017. ** “State of the Connected Customer,” Salesforce Research, October 2016. Salesforce Research

Special Report 02Employees Reveal Gaps in 6 Workplace Equality Despite increased expectations for companies to focus Most Companies Aren’t Actively Working to Achieve Diversity on equality and social responsibility, businesses have more work to do when it comes to addressing their own The majority of business professionals believe their companies aren’t actively working workplace equality gaps. For example, only 25% of to achieve equality. In fact, only 36% believe their company is actively working to business professionals believe their company cares be more diverse. about closing the gender pay gap. There is an opportunity for companies to take a more active approach to equality, starting with being intentional about creating diversity within their organizations. By creating workplace communities and leadership teams that reflect their diverse communities and customers, businesses can better address social issues, understand customer needs, and support their employees. 36% of business professionals say their company actively works to be more diverse Salesforce Research

Special Report Special Report 77 Business and Social Impact Go Hand in Hand Salesforce Research

Special Report 03Customers Want to Do Business 8 with Companies That Give Back Consumers now expect companies to integrate giving Giving Back Influences Customer Loyalty back and social change into their business. In fact, consumers — especially the increasingly influential Across generations, consumers prefer to do business with values driven generation of Millennials — are more loyal to companies companies that invest in and support their communities. that give back. Fifty-eight percent of Millennial consumers say that companies investing in or giving back to their community has an impact on their loyalty to a company. The majority (60%) of consumers are likely to go a step further and switch brands if a company isn’t socially responsible. Companies have the opportunity to differentiate themselves from the competition 51% through greater internal commitment to philanthropy and volunteerism. of consumers say companies investing in or giving back to the community has a major or moderate influence on their loyalty to a company All data on this page comes from “State of the Connected Customer,” Salesforce Research, October 2016. Salesforce Research

Special Report 04Companies Can Go Beyond Traditional 9 Philanthropy to Drive Impact Despite customers expecting more social impact from Businesses Have the Potential to Create Greater Societal Impact corporations, fewer than half of business professionals say their company is actively engaged in community As companies take a closer look at their societal impact, there’s room to ramp up service. Similarly, less than one-third of business engagement in local schools, public policy, and equal rights initiatives. professionals say their company is actively engaged in deeper social commitments such as public policy, equal rights, or STEM education/workforce development. Percentage of Business Professionals Who Say Their Company Is Actively Engaged in the Following These types of social impact initiatives are becoming Community service more important to customers and employees. 44% Diversity and equality in the workplace 41% Millennials vs. Baby Boomers Local schools 32% 1.5X more likely to say they want Public policy 31% companies to stand for equal rights Equal rights in society at large 28% STEM education/workforce development 26% Businesses have the opportunity to respond to customer expectations and widen their scope to make a broader impact in these areas. This approach could also improve equality within businesses by empowering and educating the future diverse workforce. Salesforce Research

Special Report 05Business Leaders Are Becoming 10 Societal Leaders As business professionals begin to expect more societal Executives Recognize Their Responsibility to Impact Society impact from companies, the responsibility of those companies’ leaders is expanding as well. In a recent Salesforce surveyed senior executives at the 2017 New York Times New Work Summit. summit on the future of work and leadership, senior Out of 14 senior executives, 10 said that compared to two years ago, looking beyond executives said they think that making a societal impact profit to make an impact on society has become more important.* has become more important over the last two years. With the rising focus on values driven business, it’s likely that more company leaders will become social advocates and partners with government, nonprofit, and education leaders to help create change. * Findings from the 2017 New York Times New Work Summit survey, Salesforce Research, Spring 2017. SalesforSalesforcce Re Researesearchch

Special Report 11 Commitment to Equality Drives Employee Success Salesforce Research

06Inequality Persists in Today’s Special RSpecial Reporeportt 1212 Business Culture As values driven business leaders move to become active Businesses Have More to Do to Achieve Workplace Equality pioneers both in society and their workplaces, they are carrying with them an added imperative to foster a Providing equal opportunities for all is a key component of achieving equality in the culture of equality in their companies. When employees workplace. A focus on inclusion and pay can help create equal opportunities. However, are given equal opportunities, feel heard at work, and are business professionals see considerable room for improvement. comfortable being their authentic selves, their morale and productivity increase. For example, of those who say Percentage of Business Professionals Who Believe the Following their company provides equal opportunities, 65% My company provides equal say they are proud to work for their company. opportunity for employees 51% My company actively works Yet, workplace inequality gaps remain a persistent to be more diverse 36% issue. Nearly half (49%) of business professionals My company fosters an don’t believe their companies provide equal inclusive culture 36% opportunities for employees. To bridge this divide, businesses can do more to focus on the gender pay My company cares about gap and inclusion. Eighty percent of business professionals closing the gender pay gap 25% who say their company fosters a culture of inclusion and 43% who say their company cares about closing the gender pay gap also say their company provides equal opportunities. Salesforce Research

Special Report 07Workplace Equality Influences 13 Employee Engagement It is evident that when companies focuson creating a Employees Are Proud to Work for Companies That Are culture of equality, those efforts have a positive effect Committed to Equality on employees and the work that they do. Employee engagement is an important factor in recruitment and A commitment to equality positively impacts employee morale. Employees feel proud retention, and can be a key differentiator to best position to work for companies that stand for equal rights, foster inclusion, provide equal companies to win the war for talent. opportunities, and care about closing the gender pay gap. Employees are more likely to take pride in working for Percentage of Employees Who Agree/Disagree their company when the company is taking steps toward with the Following Statements and Say They’re Agree vs. equality. For example, among those who say their Proud to Work for Their Company Disagree company cares about closing the gender pay gap, 75% also say they’re proud to work for their company. In My company cares about 75% 2.2x contrast, at companies where employees don’t feel like closing the gender pay gap 34% more likely their company cares about closing the pay gap, only 34% are proud to work there. I’m able to be my authentic 74% 2.8x self at work 26% more likely My company positively 73% 3.0x Employees Feel They Can Be Their Authentic impacts our community 24% more likely Self at Work vs. Those Who Don’t 2.8X more likely to say they’re My company fosters an 70% 2.4x proud to work for their company inclusive culture 30% more likely My company provides equal 75% 3.8x opportunities for employees 20% more likely Agree + proud to work for my company Disagree + proud to work for my company Salesforce Research

Special Report 08Inclusive Culture Boosts 14 Employee Productivity Beyond employee pride, feeling included, heard, and Employees Perform Their Best Work in an supported at work has an impact on employee productivity Inclusive Environment and success. When employees feel accepted and comfortable at work, they also feel empowered to Employees are more productive when they feel they belong, are heard, and are able perform better. to be their authentic self at work. For example, among those who feel they belong at their company, 73% say they are empowered to perform their best work. Overall, only 36% of business professionals report that they feel empowered to perform their best Percentage of Employees Who Agree/Disagree with work. However, when inclusion factors are present, this the Following Statements and Say They Feel Empowered Agree vs. number noticeably increases. to Perform Their Best Work Disagree I feel my voice is heard 73% 4.6x at work 16% more likely Employees Who Feel a Sense of Belongingness at Their Company vs. Those Who Don’t I feel like I belong at 73% 5.3x 5.3X more likely to feel empowered to my company 14% more likely perform their best work I’m able to be my 70% 4.4x authentic self at work 16% more likely My company fosters 64% 3.2x an inclusive culture 20% more likely My company cares about 67% 2.6x closing the gender pay gap 26% more likely Agree + empowered to perform my best work Disagree + empowered to perform my best work Salesforce Research

Special Report 09Business Leaders Prepare to 15 Address Equality Gaps Many business leaders understand the urgency of taking Executives Recognize the Rising Importance of Active an active approach to closing equality gaps in their Leadership in Equality organizations. In a recent summit on the future of work and leadership, 11 of 14 senior executives surveyed said Salesforce surveyed senior executives at the 2017 New York Times New Work Summit. that compared to two years ago, it’s become more Of 14 senior executives, 11 said that compared to two years ago, it’s become much important for them to promote equality. more or somewhat more important to their company culture to promote equality.* Business leaders who show active leadership in advocating workplace equality are demonstrating to customers and employees alike that their company authentically stands for change. * Findings from the 2017 New York Times New Work Summit survey, Salesforce Research, Spring 2017. SalesfoSalesforrccee RReeseasearrcchh SalesforSalesforcce Re Researesearchch

Last Look StaSpecial Rte of Sereporvicet 1616 Steps to Leading an Equality and Values Driven Business A new business model for companies is emerging — one Lead with Values 01 | that calls for companies to expand their purview beyond Demonstrating an authentic commitment to a greater objective outside profit, adopt a holistic approach to societal impact, and of profit requires clear and honest values. Although 10 out of 18 senior actively work toward achieving workplace equality. executives surveyed at the 2017 New York Times New Work Summit said Customers and employees alike give their loyalty to that their companies clearly define their values, only 40% of business companies that value giving back and are socially professionals say their company leads with its values. Business leaders responsible. Business professionals are empowered by who take the next step to not only define but actually lead with values technology to make more informed decisions and hold are better positioned to connect with their customers and employees. companies, and the people who lead them, accountable to these new standards. Become a Platform for Social Change 02 | Here are three steps that business leaders can take As business professionals expect more advocacy and action from companies, to strengthen customer loyalty, attract and retain opportunities to partner with governmental, nonprofit, education, and top talent, and make an impact on society with an other business leaders will increase. Businesses can leverage their power equality and values driven focus. as platforms for social change — using their networks, influence, and voice to speak out and empower those who can’t do so on their own. Such initiatives are good for business. When company leaders help support their communities, they’re also training and building their future diverse workforce. Create a Culture of Equality | 03 As a company grows, especially during a time when innovation is booming and skills are in high demand, being an attractive destination workplace for all is essential. Indeed, commitment to equality and inclusiveness is becoming a competitive differentiator for companies seeking to attract and retain a new generation of talent. Actions speak louder than words: Today’s business professionals can leverage technology to instantly discover if companies are walking the walk and making strides for change. Being open, transparent, and active in promoting equality in the workplace can earn enduring customer and employee trust. Salesforce Research

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