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society ommunit orld ntegrity environm professi mployee workpla KETCHUM social responsibility report 2011


society ommunit orld ntegrity environm professi mployee workpla overview | 1

KSR charter & principles | 2 society | 4

community | 9 world | 16

integrity | 18

environment | 20 profession | 22

employees & workplace | 24


yty y ment ion es ace

overview

Welcome to Ketchum’s 2011 Social Responsibility Report. It’s the second such report card of the activities and commitments underlying what for the past several years we have called Ketchum Social Responsibility (KSR). KSR both energizes all of us working here and unites us closely with the communities in which we live and work. We are connected by our obligations to every community we touch and to the people we work with – our clients and the colleagues devoted to serving them – and to society at large. Only by meeting these commitments along with our business obligations can we possibly consider ourselves as being part of a successful business. Each of our KSR activities rests on a set of seven shared focus areas – Society, Community, World, Integrity, Environment, Profession, and Employees and Workplace. These areas guide the activities of our employees around the world, who spearhead scores of projects amounting to thousands of people hours that are in turn backed by significant financial investments. Whether we’re working on pro bono assignments, volunteering with one of our charitable partners, organizing local community events, or serving on one of the committees responsible for shaping future initiatives, everyone in the company is part of KSR. Importantly, we believe that companies make the best contributions by offering what it is they do best. In our case, this is communication, and a tenet at the core of our mission is that the world’s most pressing issues often hinge in many respects on communication challenges. Better awareness, understanding and dialogue among all stakeholders underlie the solutions to the problems that business, government and civil society face today. Ultimately, we’re confident that effective communication enables better outcomes. And in addition to communications, we also give our time in other areas where the need is great. We are proud to share this report to show how we have striven to realize this. Sincerely,

Ray Kotcher David Gallagher Senior Partner and CEO, Ketchum Senior Partner and CEO, Europe

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society community KSR charter world & principles integrity environment profession employees &“workplace The thing that has excited me about KSR from the beginning was that the initiative was born directly from colleagues asking for this and Ketchum leadership listening and delivering. Now, as the new parent of a one-year-old, I can especially appreciate the aspects of the program that positively impact the lives of children, both globally through our work with Room to Read and locally through efforts such as our continued support of the United Way in New York City. As we begin a new year, I’m excited to see how KSR will continue to evolve – the possibilities remain limitless!

Greg Dauphin Growth Manager, Global Corporate and Healthcare Practices, Ketchum

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charter

We cannot succeed at business and ignore the world around us, because our business is the world around us. Along with commitments to our shareholders and business partners, we have obligations to the communities we touch, the people we work with and society at large, and only in meeting all of these can we consider ourselves truly successful. We respond to these constantly changing and growing obligations as a global business network, as national and local enterprises, and as individual employees. We call our collective activities Ketchum Social Responsibility, or KSR. More than a project or a tagline, KSR is an ethos and a philosophy, animated by efforts large and small to realize true success at every level of business in all parts of the world.

principles KSR activities are wide-ranging and designed to meet the specific needs of our businesses around the world. All KSR activities are based on a set of shared principles: Stewardship. Resources are precious and must be deployed judiciously. Collaboration. We can accomplish more together than separately. Initiative. Personal commitment is as important as corporate promises. Communication. Building trust is the core competence we bring to business and societal responsibilities. Sustainability. We conduct our business in ways that are sensitive to the physical, economic and cultural environments in which we operate. Leadership. We will lead our sectors, professions and markets through distinctive and truly successful KSR activities.

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society community world integrity environment profession employees & workplace Some problems in society universally impact the day-to-day business world – disease, corruption and illiteracy are just a few of the challenges that affect the success of companies wishing to operate globally. Well-designed corporate social responsibility programs enable the expertise and funding of corporations to address these issues in ways that benefit society while advancing a company’s business interests. To this end, with Ketchum efforts already in place to address global health and corruption problems, and with feedback we received from an employee survey, we set out a few years ago to find a partner in the effort to improve literacy and educational levels.

Room to Read: World Change Starts with Educated Children

After a review and analysis of partner organizations, Ketchum found a kindred spirit with Room to Read, a global charity dedicated to transforming the lives of millions of children in developing countries by focusing on literacy and gender equality in education. We believe companies make the best contributions by offering whatever it is they do best; in Ketchum’s case, this is communication, and we are involved with a wide range of communications support activities to reinforce the Room to Read mission around the world. Ketchum employees in North America, Europe, the Middle East, Asia and Africa have taken part in the global effort. Media placements in newspapers and magazines, media training for Room to Read executives, and the translation of media messages into multiple languages are among some of the many activities with which we’ve been involved.

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What’s more, Ketchum has “loaned” half of the time of a senior consultant, Julie Ferriot, to Room to Read in the organization’s San Francisco headquarters to provide high-level support and to coordinate Ketchum teams around the world. Over the past two years, Julie and Ketchum have supported Room to Read on a range of global and organizationwide projects and initiatives, including these: 10th Anniversary Media Support In 2010, Room to Read celebrated its 10th anniversary, the construction of its 10,000th library, the addition of its 1,000th school and a scholarship program that offers 10,000 girls critical life skills education. The celebration included a “Trek to 10,000” – an expedition through the Himalayan highlands of Nepal to visit the site of Room to Read’s first book delivery, led by Room to Read founder John Wood. To support these developments, Ketchum used its proprietary Multi-Media Release and developed a media strategy to communicate these events to media.

Ketchum’s commitment to KSR is extraordinary. I don’t believe any other agency in the business is doing things as we are. The opportunities that our partnership with Room to Read provides for our employees to get involved and help make a difference expand across all geographies and all staffing levels, and the benefits to the organization are significant. Together, we’re helping to bring awareness to the world about the importance of literacy and gender equality in education, and that is something everyone can be very proud of.

Julie Ferriot Vice President, Ketchum, and Ketchum senior consultant for Room to Read

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society community world integrity environment profession employees & workplace

Cambodia Trip In November 2010, Julie Ferriot, Ketchum’s senior consultant for Room to Read, traveled to Cambodia for Room to Read’s first-ever international communications summit. There, Julie led training sessions for communication representatives based in seven Asian countries. In particular, she focused on helping the organization improve its relationship-building and information-sharing to create a more collaborative and unified global communications team. International Literacy Day In 2010 and 2011, Room to Read joined forces with Twitter in a social media campaign to increase awareness of illiteracy for International Literacy Day. On that day, Twitter and Room to Read began posting illegible tweets to symbolize how every sentence looks to the more than 776 million people worldwide who cannot read or write. Users were able to decode or “read” the indecipherable tweets and tweet other coded messages through a special Twitter website. Ketchum helped support this project by asking its colleagues to spread the word about it to media contacts around the globe and by developing a news release that could be sent to interested media outlets. New Library in Nepal Ketchum made a commitment to raise $15,000 to fund a new library in Nepal to honor Room to Read’s 10th anniversary and succeeded in meeting this commitment through fundraising events and individual donations made through automatic paycheck withdrawals. The library was completed in May 2010 in a village called Panit Chaur, and it houses more than 800 books and provides a space for regular library periods for local elementary school students.

On top of these global and organizationwide initiatives, a number of local Ketchum offices have lent their support to Room to Read with these individual activities: Chicago In November 2010, Ketchum’s Chicago office participated in its second annual silent auction for Room to Read. Colleagues donated over 40 homemade items and special gifts to help raise a total of $3,000. London The London office provided a range of media support events for Room to Read. Colleagues developed and pitched a news release announcing Room to Read’s Big Book Swap initiative and helped generate placements that resulted in five million impressions. In addition, staff pitched and secured media interviews for cricket players in the U.K. media to support Room to Read’s partnership with the International Cricket Council. London office members also hosted a women’s business breakfast workshop, attracting professionals from a range of London industries to raise funds and engage

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There’s a lot for us to be proud of as a company – literally dozens of projects and programs around the world that make us our industry’s leader in corporate citizenship. Personally, the proudest moment came at the top of Mt. Kilimanjaro in Tanzania with four friends from the London office. This was technically a spinoff from KSR, but it was a Ketchum-inspired initiative to rally the U.K. public relations community in support of Leonard Cheshire Disability, and the entire Ketchum network came to our support. It was like having the whole company standing at the top of the mountain with us!

David Gallagher Senior Partner and CEO, Europe

with Room to Read’s mission while providing a valuable networking opportunity for the business community. Finally, the office hosted a message training session for Room to Read’s U.K. branch to enable Ketchum to better understand how to communicate Room to Read’s core messages. Los Angeles Ketchum helped the Room to Read Los Angeles chapter celebrate its 10th anniversary with a gala at the historic Vibiana Cathedral in downtown Los Angeles. Ten Ketchum volunteers were on hand to handle guest check-in and donation collection as well as to assist with the live and silent auctions. The Los Angeles office also conducted media outreach to local press before the event to raise awareness. Among other things, guests were encouraged to bid on specific Room to Read “donations,” including yearlong scholarships, children’s books and desks and chairs for newly built classrooms. In total, Ketchum’s volunteers helped Room to Read raise more than $113,000, which was $13,000 more than the previous year. Munich In Munich, a working group of six colleagues leads new KSR and eco-friendly activities. For the month of April 2011, they asked their fellow colleagues to scour their closets and attics for gently used items they no longer needed and “recycle” them to benefit Room to Read. The KSR team then held a flea-market-themed fundraising event, convening at 4:30 in the morning to sell the donated goods. By the end of the day, the team had collected over 1,000 euros for Room to Read.

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society community world integrity environment profession employees & workplace

New York Ketchum’s New York office held a Room to Read Story Hour where colleagues read passages from their favorite children’s books. More than a dozen colleagues volunteered to be storytellers, and about 100 employees “voted” with $1 donations to determine which four contestants would perform readings at the event. The event raised $900 for Room to Read and collected children’s books for a local charity. Additionally, throughout the year, the New York office regularly holds bake sales where colleagues bring in home-cooked treats to sell to the more than 200 people at the office to raise funds for Room to Read. San Francisco Ketchum San Francisco hosted at its office a global Room to Read advisory group meeting. The three-day event brought Room to Read advisors together for their annual planning session and involved 30 to 40 hours of event planning and management support by various Ketchum colleagues.

In addition to Room to Read, we were recently involved in two other noteworthy efforts to benefit society – a climb to one of the world’s tallest peaks and the donation of communications expertise to a one-of-a-kind nonprofit. Ketchumanjaro In April 2011, the Public Relations Consultants Association sponsored a trek to ascend Mount Kilimanjaro in Tanzania to raise funds for Leonard Cheshire Disability, a U.K. organization that provides support for people with disabilities. For this trek, dubbed “Ketchumanjaro,” five colleagues from Ketchum’s London office helped raise a combined £80,000 for Leonard Cheshire Disability. In addition to obtaining private donations, the team received funds from Ketchum colleagues that were raised through an online auction. We Are Family Foundation Ketchum senior partner and CEO Ray Kotcher is on the board of directors of Nile Rodgers’ We Are Family Foundation, a leading nonprofit dedicated to building global coalitions that foster tolerance and respect. One of the foundation’s signature initiatives is Three Dot Dash, a program that regularly brings together global teen leaders who are actively working on projects that address basic human needs and promote peace. To help these team leaders, Ketchum contributes training during the Just Peace Summit – a weeklong event that engages these inspirational teen leaders from around the world and brings them to New York to help them learn how to effectively communicate and better tell their stories.

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society community world integrity “ environment profession” employees & workplace One of our greatest achievements is that what began as a series of committee-led initiatives has evolved into a daily awareness of our social responsibilities as global citizens. From that awareness, we’ve created a sense of community not only within the Ketchum network, but in the neighborhoods in which we work.

Cara Rich

Office Manager, Washington, Ketchum

Ketchum is a global family of businesses, with offices in capitals and business centers of the world’s busiest and most competitive markets.

But we’re also a collection of community businesses. Every Ketchum office sits in a neighborhood – in Midtown Manhattan, Hong Kong’s North Point, Spitalfields in East London, or Brooklin in South São Paulo – and each is a unique and important fixture that figures not just in where we do business, but how. In both 2010 and 2011, we have worked in our neighborhoods on a wide range of projects, including fundraisers, school cleanups, tree-planting projects and children’s reading programs. Our offices took part in community activities, with an average of 31 people from each office participating. These projects reflect hundreds of hours of people time and financial investment by Ketchum companies to ensure our actions speak louder than words when it comes to supporting our local communities. Here’s a sampling…

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NEW YORK: Members of the Ketchum New York office participated in a Partnership for Parks initiative at Lincoln Terrace Park in Brooklyn, where they helped clean up the park by painting benches, restoring fences and removing trash.

DALLAS: Ketchum’s Dallas office joined forces with Every Child Ready to Read @ Dallas, a program that focuses on educating parents about prereading skills while also providing them with children’s books to share with their kids at home. Most of the program’s outreach is conducted in low-income areas, as low-income families are less likely to have books at home or engage in book sharing with their preschool-aged children.

SÃO PAULO: In Brazil, Ketchum’s São Paulo office is involved in a number of KSR initiatives. In addition to continuing its work with +Unidos, contributing case studies about its pro bono work in Brazil, here are a few other initiatives. Refugees United This nonprofit helps refugees relocate missing family through a unique search engine. Ketchum began working with this organization in May 2008 and has since created marketing materials to distribute to humanitarian agencies, NGOs and refugee camps in Brazil and worldwide. TUCCA TUCCA (Association for Children and Adolescents with Cancer) was founded with the goal to increase the cure rates and improve the quality of life of disadvantaged young people with cancer who cannot afford adequate treatment. Ketchum helps produce public relations materials that are used to help the organization raise funds. Projeto Acesso Ketchum helps with the education initiatives of this program, which helps students with special educational needs in the visual deficiency area. Ketchum donates time to promote Projeto Acesso and its new headquarters, which has the capacity to help more students and offer scholarship support.

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AMSTERDAM AND THE HAGUE: Both our Netherlands offices actively support the Dutch McDonald’s charity, Ronald McDonald Kinderfonds, a program that provides a temporary “home away from home” for cancer patients and their families.

BERLIN: Berlin colleagues regularly hold food drives and collect pre-owned computers and other requested items on behalf of an organization called Berliner Tafel – “Berlin Table” – which gathers and distributes donated food and goods to more than 300 charitable organizations throughout Berlin, including counseling facilities, women’s refuge centers, homeless shelters, soup kitchens and schools.

One of the most rewarding things about being a member of the KSR team is helping others to understand the real importance of CSR. To make a difference, some projects demand the participation of those in society, and witnessing people getting involved in a good cause is amazing. I consider any way we can contribute as a great achievement.

Alexandra Aparicio

Corporate Communication Manager, Ketchum Brazil

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SAN FRANCISCO: The San Francisco office started working with a local organization called “scrap,” which is a nonprofit reuse center, materials depot and workshop space with a mission to stimulate creativity and environmental awareness in children and adults through promoting creative reuse of materials that traditionally have been discarded as waste. In addition, the office implemented a program for its summer fellows that focused on providing media assistance to get the word out for a nonprofit called Two Degrees, which has a mission to feed 200 million hungry children by raising awareness of global malnutrition and donating a high-nutrition pack for every Two Degrees food bar that is sold.

PITTSBURGH: Ketchum’s Pittsburgh office partnered with the Carnegie Library of Pittsburgh to clean up the children’s department. In a four-hour period, Ketchum colleagues helped process approximately 12,000 books, cleaning them, replacing the stickers on them, and pulling any books that needed to be repaired. In addition, the Pittsburgh office held a take-your-kidto-work day that featured an ice-cream-creation fundraising activity where kids broke into teams and created ice cream flavors; news releases were created to market their inventions; and colleagues paid $1 to sample the ice cream and vote for their favorites.

Ketchum’s social responsibility program gives employees the opportunity to give back both internationally and locally. Our partnership with Room to Read gives every employee the opportunity to contribute directly to the literacy needs of children in the developing world through charitable donations. And this past year, in keeping with this same focus on literacy, our Pittsburgh office volunteered at the Carnegie Library Distribution Center to sort books and other materials, preparing them for delivery to public libraries all over the area.”

Andy Roach Partner and Chief Information Officer, Ketchum

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DRESDEN: The Dresden office is involved in several major KSR programs: Kinderhilfe Dresden (Children’s Aid Dresden) Kinderhilfe Dresden offers help to chronically ill children by building play areas at hospitals, purchasing special medical devices and providing social and psychological care for the children and their families. The Dresden office has been supporting Kinderhilfe Dresden since 2004 by designing their newsletter and all print products, and by helping the association in all aspects of public relations. Weihnachten im Schuhkarton (Operation Christmas Child) Every year, Dresden colleagues pack decorated shoeboxes with gifts for children in need all over the world on behalf of Weihnachten im Schuhkarton. In addition to stuffed animals, crayons and toys, they include helpful everyday items like toothbrushes, towels and warm gloves. The Small Enterprise Foundation The Small Enterprise Foundation works to alleviate poverty by enabling the poor to increase their income through microcredit and by assisting them in the accumulation of savings. When the organization got in contact with Ketchum Pleon, asking for support to create a new logo and general appearance, the Dresden colleagues did not hesitate to volunteer their time. The enthusiastic and talented Dresden designers created a new corporate design, presenting the Small Enterprise Foundation as an innovative and sustainable enterprise to stakeholders and customers.

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As part of our Ketchum Social Responsibility effort, three years ago Ketchum Pleon Spain began participating in a program to ensure that those who go hungry wouldn’t do so during the holidays. Our sister Omnicom agencies in Spain as well as many clients, suppliers and journalists joined us in this effort, and last year we collected enough food to feed almost 300,000 people for the Madrid Food Bank. While we are proud of this effort, so much more is needed. We are now working to extend the campaign throughout the year because the situation is so critical.

Teresa García Cisneros Partner and CEO, Ketchum Pleon Spain

WASHINGTON: Ketchum’s Washington office partnered with an elementary school called Ketcham, both because of the similarity of the names and because the Washington office learned that a teacher and student at the school had been killed on Sept. 11, 2001. In addition to general campus cleanup, colleagues from the Washington office landscaped an area where memorial trees had been planted to honor the victims. Colleagues also regularly support food drives, coat drives, book drives and a local chapter of Dress for Success, a nonprofit organization that promotes the economic independence of disadvantaged women by providing professional attire, a support network and career development tools to help women thrive in work and in life. CHICAGO: In November 2010, Ketchum’s Chicago office helped sponsor the third annual Special Olympics Inspire Greatness Gala. As a bronze medal sponsor for the event, the office helped the Special Olympics of Illinois welcome over 370 guests and raise nearly $600,000.

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DÜSSELDORF: Every December, Ketchum Pleon and sister Omnicom agency BBDO colleagues pick a note from the “Children’s Christmas Wish Tree” and buy a present for students in need in selected Düsseldorf schools. The activity takes place in cooperation with Düsseldorfer Kindertafel (Children’s Table), a charity that ensures that school children who lack the means receive a hot lunch every day.

FRANKFURT: Every six weeks Frankfurt colleagues support various community projects, including the Mutter-Kind-Heim Preungesheim, a facility that enables imprisoned mothers to live with their young children, and Sandra Völker Stiftung, a foundation that supports and protects sick children.

MADRID: Ketchum’s Madrid office, led by Teresa García Cisneros, CEO of Ketchum’s Spain operation, partnered with Omnicom to donate over 14 tons of food to the Madrid Food Bank through its “Hambre contra el Hambre” (Hunger against Hunger) initiative. The food products collected were sufficient to feed 300,000 people and were donated to the Madrid Food Bank, which distributes food to various support centers.

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society “ community” integrity environment world profession employees & workplace KSR exists to make the community and world a better place, and, to be given the opportunity to make a difference as part of my job, I am truly grateful!

Brandy Brett

IT Administrative Specialist, Ketchum

Many of the world’s most pressing issues are at least in part matters of communication. Broader awareness, deeper understanding and enhanced dialogue among all stakeholders are key aspects of any solution to the problems confronting business, government and civil society today, and Ketchum is proud to have a voice on these matters with active participation in global forums.

United Nations Global Compact

Since 2001, Ketchum has been proud to be a member of the United Nations Global Compact and has practiced its principles through active participation and promotion of its aims to our clients and their stakeholders. Specifically, we have designed our management policies to reflect the standards established by the Global Compact in these areas:

Anti-Corruption/Transparency: Ketchum’s Disclosure Guidelines ensures that Ketchum colleagues are transparent in their dealings with the media, identifying the client or other entities as sources of the information. Code of Business Ethics Agreement: This document, formally acknowledged by each colleague, provides standards for, among other areas, truth and accuracy in communications, record keeping, conflicts of interest and privacy. Equal Employment Opportunity Policy: Ketchum hires and promotes colleagues solely on the basis of ability, training and experience.

Harassment and Discrimination Policy: Any harassment or discrimination of employees or others at Ketchum undermines the integrity of our employment and our relationships, and this conduct is unacceptable and is not tolerated. Workplace Violence: Ketchum provides a safe workplace for all employees, and threats, threatening language or any other acts of aggression or violence made toward or by any Ketchum employee are not tolerated.

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In 2010 and 2011, Ketchum helped the Global Compact engage with a new and significant NGO that seeks to give new standing to environmental, social, governance and corporate commitments. The International Integrated Reporting Committee is developing guidelines for integrating nonfinancial and financial data for review and reflection by shareholders and other corporate stakeholders. Ketchum is represented on the International Integrated Reporting Committee task group on communication and engagement and has helped the Global Compact liaise with the Committee. In addition, Ketchum has generated several messages on International Integrated Reporting Committee progress on the website of the Global Alliance for Public Relations and Communication Management.

World Economic Forum Ketchum also has been an active participant in the World Economic Forum since 2004, contributing to its mission to “improve the state of the world” with delegations to its 2010 and 2011 annual conferences in Davos. In keeping with a commitment to supporting organizations with communications, Ketchum has a rotating program to “loan” consultants to the World Economic Forum to provide on-site support with communications strategy and execution. What’s more, this opportunity is not limited to Ketchum colleagues who work in the area of corporate communication or who work in Europe; colleagues at any of Ketchum’s global offices are given an opportunity to apply for this position. A colleague from Ketchum’s London office served at the Forum’s Geneva headquarters for 2009 and 2010 to support activities related to global health, anticorruption, and general media relations and communications; and, most recently, Abby Berg-Hammond, a senior account supervisor from Ketchum’s Chicago office Healthcare Practice, has continued this commitment by contributing her skills to the Forum’s Media and Communications team initiatives in 2010 and 2011. This has included support for the launch of the Forum’s annual Global Competitiveness Report and all communications for the Gender Parity Group, including the launch of the annual Gender Gap Report. Ketchum also sends colleagues to most of the seven annual World Economic Forum regional meetings to assist with and better understand the Forum’s work.

I feel incredibly fortunate to work at a company that supports this type of opportunity and sets professional development as such a high priority. I’ve always wanted to work abroad, and to do so for the World Economic Forum, with Ketchum’s support, has been incredible. The Forum is a fascinating place that constantly tests your ability to adapt quickly and find new ways to bring value to everything you do. My tenure at Ketchum prepared me to meet this challenge.

Abby Berg-Hammond Senior Account Supervisor, Ketchum Midwest

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society community world integrity environment profession employees &“workplace As Ketchum’s CEO, I am proud of the commitment Ketchum has to ethics and the impact it has had on our people and clients. Our dedication to ethics is an important part of what defines us. It is clearly stated in our values: We conduct our business and ourselves with an unwavering commitment to honesty and integrity – taking ownership of every action, standing up for the ideals that define us and standing by the people who have earned our trust.

Ray Kotcher Senior Partner and CEO, Ketchum

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We understand our world is changing. Business and consumer confidence is at an all-time low, and now, more than ever, corporations must answer for more than just their bottom line. In this new climate, companies must conduct their affairs in a manner that makes sense for the business while considering broader societal expectations. Credibility is at the heart of all our businesses, and Ketchum has an unyielding position on the importance of ethics throughout our operations. Ketchum businesses are signatories to the standards of conduct set forth by the various professional and trade bodies around the world overseeing the practices of public relations, public affairs, lobbying, word-of-mouth marketing, and pharmaceutical marketing and communications. We have made ethical decision-making a core skill of all employees through training, leadership development and practical guidelines to ensure our business is conducted with the highest levels of transparency and responsibility throughout the company. In addition to underscoring the importance of operating ethically in numerous communications to colleagues throughout the year, all employees in our offices and business units are required to participate in annual training and are tested to certify they understand our ethics policies through successful completion of a mandatory online quiz. We update an online video-based training course each year to help our colleagues understand the evolving policies. The video training accompanies the quiz, so our colleagues have real-time access to the most current standards and practices. Furthermore, every year we update our policies as social media continues to expand into new territories of communication. Our employees share various issues they have encountered, we learn from them, and we adapt our policies accordingly. For example, in 2010, among other things, in our policies on disclosure, we added a section with clear guidelines on disclosure when working with bloggers.

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society community world integrity environment profession employees &“workplace There is no company or organization in the world today that isn’t touched in some way or other by issues of sustainability. In a few short years, Ketchum made great progress in our efforts to make decisions that are smart for the environment and develop sustainability capabilities for our clients that cross all borders, whether they’re geographic or organizational. In sum, we are facing the future head-on in a way that benefits Ketchum, our clients and our planet.

Dave Chapman Partner and Director, Ketchum West

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When it comes to the environment, we have long been an advocate of responsible energy use, and our businesses around the world have set policies to reduce waste, increase energy efficiency and promote sustainable business practices with employees. In 2010 and 2011, we conducted a global audit of all offices to determine both what already has been done environmentally and what opportunities and limitations there are for doing better in the future. The audit went well beyond assessing such basic environmental areas as carbon footprint (including traveling and commuting), energy conservation and recycling to cover such areas as paper policy, water conservation, responsible sourcing of office supplies and materials and environmental volunteerism, and established sustainability practices, policies, and communication of those policies. The audit also helped establish the measurement tools that individual agency operations could and would use to document performance and accomplishment. Among some of our ongoing sustainability efforts has been an ambitious agencywide initiative to reduce the use of paper in daily operations through the use of new information technologies, updated reporting procedures and simple awareness of unnecessary paper use. As a result, through the adoption of paperless initiatives such as centralized vendor invoicing, we have cut local office paper consumption in half, and, through the implementation of integrated electronic payroll systems, we have eliminated the printing of 18,000 paychecks annually. On top of this effort, we also have put in place a number of other measures to reduce our energy use, including a system that allows 73 percent of our computers to automatically go into sleep mode when dormant and 41 percent of our lights to turn off after work hours. Over the next few years, we will build on these efforts with a global sustainability policy committed to continued improvement and a broadening reach year over year. In 2012, we will undertake an agencywide program to measure our carbon and gas use, energy consumption and waste output, and then set targets for the reduction of these levels; and in 2013, we plan to continue to make incremental improvements to these programs.

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society “ community world � integrity environment profession employees & workplace Ketchum has a long history of being involved in the industry. We helped form the Council of PR Firms, the U.S. trade organization representing the agency business; we led the effort with the Association for Measurement and Evaluation to develop the Barcelona Principles, the first time the industry agreed to basic measurement principles; and every year, several of our senior leaders are holding leadership positions in organizations around the world.

Rob Flaherty

Senior Partner and President, Ketchum

The professional and trade bodies that govern business practices in our companies around the world are incubators for innovation, best practices and leadership development. They also provide platforms for meeting opportunities and solving problems that are bigger than any one company.

We believe as global leaders in the communications business that we have important roles to play in the local, national and international bodies that set standards and establish leading practices in our professions, and our executives serve as leaders in some of the most important of these groups around the world.

Global David Rockland, Ph.D., managing director of global research at Ketchum, is on the board of directors of the Association for Measurement and Evaluation (AMEC), a growing trade body whose purpose is to define and develop the industry on an international scale with better professional standards for both companies and individuals. Most notably, David is a recent recipient of AMEC’s new Services to Industry Award, which was presented for his contribution to developing the Barcelona Principles, an industrywide effort to bring professional standards and global consistency to PR measurement that were ratified at

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the 2nd European Summit on Measurement in Barcelona in June 2010, co-sponsored by AMEC and the Institute for Public Relations. John Paluszek, Ketchum senior counsel, is chairman of the Global Alliance for Public Relations and Communications Management, which builds on the cooperative efforts of PR professional bodies to tackle common problems with a global perspective. John literally travels the world, speaking on behalf of the Alliance and its mission to unify and link PR professionals, raise standards of service, develop member organizations and serve the profession.

North America Ray Kotcher, Ketchum CEO, is a vice president, a member of the executive committee and a member of the board of trustees of the Arthur W. Page Society, a professional organization that seeks to strengthen the management policy role of the chief public relations officer. Paul Rand is president of the Word of Mouth Marketing Association, the U.S.-based body for the viral, buzz and word-of-mouth marketing industry. Paul has helped the association renew its ethical code of conduct, establishing best practices, unacceptable practices and baseline rules for this rapidly growing field.

Europe David Gallagher, CEO of Ketchum’s European operation, Ketchum Pleon, ended a term in 2011 as chairman of the U.K. Public Relations Consultants Association, for which he helped update the organization’s governance policies, launch a dozen industry interest groups, form a cooperative partnership with a British charitable organization, invite in-house teams as members, and spread its reach internationally with members from abroad. David is also a board member of the International Communications Consultancy Organization, the global trade body for national agency associations, and its incoming vice president. Teresa García Cisneros, CEO of Ketchum Pleon Spain, was appointed president of the Association of Public Relations and Communications Consulting Companies, a nonprofit whose mission is to foster the growth of public relations and communications in Spain, safeguard the corporate reputation of its members and contribute to innovation in the sector.

Asia Pacific Kenneth Chu, CEO of Ketchum Greater China, serves as vice president of the Shanghai Public Relations Association, marking the first time a member of a PR agency has held this position, and Simeon Mellalieu, general manager of Ketchum Hong Kong, is the chairman of the Council of Public Relations Firms of Hong Kong. KETCHUM social responsibility report 2011 |

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society community world integrity environment profession employees & workplace We are committed to using the best practices and tools for recruiting and retaining a workforce that reflects our global community. By attracting the best talent from diverse backgrounds and experiences, our globally recognized and locally run businesses provide unique perspective and extraordinary creativity and services to our clients. In this way, we foster a workplace where all employees can achieve their greatest potential.

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A Great Place to Work In 2011, Ketchum was selected as one of the Top Places to Work in PR by PR News, along with nine other agencies, five corporations and five nonprofits. This is the second year in a row the agency has been recognized with the distinction. In addition, a number of our offices have been named as “great places to work,” and, in particular, for the past six years, our London office has been designated one of the best 50 places work in the U.K. by the Great Places to Work Institute and the Financial Times. In 2011, the London office entered the top 10 with a ranking of No. 10. Why? The people, of course – and the employee-run office meetings, an outdoor basketball court, showers for cyclists and runners, and assignments to social “houses” to give all colleagues a close community of friends and encouragement.

Ketchum University Ketchum prides itself on its reputation for providing the best learning opportunities in the industry. Opportunities for learning and professional development have always been important to Ketchum – learning is at the core of our work. Ketchum’s dedication to employee learning continues to translate into value for our clients. As account teams servicing and counseling our clients become more refined PR practitioners, they create programs that are increasingly fresh, creative and effective for our clients. We believe that employee learning is an investment worth making, and we continue to raise the bar we have set as the industry leader in this category.

What has impressed me most about KSR is that, after careful deliberation, the program was designed, and, subsequently, has been well implemented, in the framework of a Ketchum core competency – communications. The program not only motivates and energizes our Ketchum colleagues around the world, but also created a credible model for clients and the many other organizations seeking to act positively in the sustainability space. KSR therefore has been believable as a commitment and effective in action.

John Paluszek Senior Counsel, Ketchum

KETCHUM social responsibility report 2011 |

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integrity environment profession employees & workplace Through Ketchum University, the agency invests in our industry’s best talent by providing learning and development that help employees grow professionally and achieve great results for our clients. The curriculum features more than 50 learning programs that are conducted as local seminars and global sessions. Courses are offered on topics ranging from leadership and business development to core business skills like media strategy and creativity. And activities are highly interactive, enhancing collaboration and drawing on the strengths of course participants while distributing knowledge and best practices throughout our global network. Off-site and interoffice learning opportunities also are offered through such programs as our renowned Camp Ketchum.

Camp Ketchum It was back in the summer of 1986 that Ketchum first brought to life a camp experience for promising up-and-coming employees as a way to build an esprit de corps among this group of Ketchum future leaders – helping them develop as leaders as well as learn about Ketchum methodologies and all we have to offer clients. A quarter-century later, hundreds of Ketchum’s most promising talent have attended what today is known as Camp Ketchum. Many of the attendees have gone on to hold very important positions within the agency and within the industry at large. In July 2011, Ketchum continued the latest chapter of this tradition when it hosted 76 colleagues from 38 offices in 16 countries for five days in Mont Tremblant, Quebec, Canada.

Omnicom University Ketchum leaders participate throughout the year in programs managed by the Omnicom University Senior Management Program, Postgraduate SMP Program, Financial Leadership Program and Advanced Management Program. These programs, originally developed with the Harvard Business School, are considered to be among the world’s preeminent executive education programs.

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Every idea that gets posted by a college student to Mindfire, our creativity crowdsourcing site, results in a donation of a local-language book for children in the developing world through our partnership with Room to Read. This has been an excellent incentive for students to participate in Mindfire, and a nice way for Ketchum to honor its commitment to the cause of literacy.

Karen Strauss

Partner and Chief Innovation Officer, Ketchum

Mindfire To add to the flow of ideas that Ketchum generates for its clients, the agency created the industry’s first external crowdsourcing site, Mindfire. Launched in September 2010, Mindfire is an open innovation community where graduate and undergraduate students with demonstrated creativity, communications and digital skills are presented with real business challenges facing Ketchum and its clients. Hundreds of students from over 30 leading universities – including Syracuse University’s S.I. Newhouse School (U.S.), the University of Southern California (U.S.), the Media School, Bournemouth University (U.K.), CELSA Paris-Sorbonne (France), Tsinghua University (China), the Chinese University of Hong Kong, Symbiosis Institute of Media and Communication (India), and Universidad Argentina de la Empresa – submit creative ideas, comments and insights to the shared community. In return, students gain practical experience, global perspective and unique incentives, including career coaching with Ketchum partners, exclusive webinars, prizes and job notifications. Mindfire has become a valued recruiting resource for Ketchum, leading to several hires across offices in New York, London, Hong Kong and Dubai. And to further integrate Mindfire into Ketchum’s company culture, every idea posted on Mindfire results in an agency donation to Room to Read, Ketchum’s philanthropic partner, for the purchase of local-language books for needy children in the developing world.

KETCHUM social responsibility report 2011 |

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integrity environment profession employees & workplace Art@Ketchum Pleon

co wo in e p em ” &

Organized and curated by Sue Smallwood, Art@Ketchum Pleon exhibits have been transforming the Ketchum Pleon London reception area into a public art gallery since January 2009, when it first featured a series of photo portraits by Andy Whale. Ever since then, a new collection of contemporary artworks has made its appearance every eight weeks. Ketchum Pleon London hosts a drinks reception and private view during the first week of each exhibition, allowing Ketchum Pleon employees, clients, suppliers, local communities and friends to meet the artist. The artists are selected for their thoughtprovoking and inspiring work, and Ketchum Pleon intends to display as many different techniques and styles as possible, including photography, printmaking and painting. Employees are actively encouraged to nominate suitable artists. The initiative is a great example of the agency’s commitment to creativity and the London art community.

Over the past two and a half years, the program has featured some of the U.K.’s leading artists, such as Paul Catherall (linocuts), Bodymap’s David Holah (printmaker), Karin Gunnarsson (photographer), John Lee Bird (artist), Gail Mallatratt (woodcut printer), Stephen Rothwell (artist), Monica Curtin (photographer), Tom Frost (illustrator), Danny Flynn (printmaker), Ilyas Kirkan (abstract artist) and others. What’s more, Art@Ketchum Pleon nurtures the London office’s own in-house talent by annually hosting a “Not the Royal Academy Summer Show,” featuring artwork from colleagues across all the office’s practice groups.

Ride to Work

In addition to art, our London office also has initiated several policies over the years to encourage a healthy and inclusive workplace throughout its workforce, with one of the biggest ones being the Ride to Work program. This enables colleagues to rent bicycles from Ketchum for a 12-month period and then purchase the bike at the end of the period for only five percent of the original cost.

The impact and reach of our KSR efforts is completely dependent on the generosity of our Ketchum colleagues. The time Ketchum colleagues donate inside and outside of work, along with the ideas and energy they share, has changed the communities in which we work and live. I know this is just the beginning of many things to come.

Mindy Rubinstein Partner and Chief Communications Officer

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KSR  

Social Responsibility Report

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