BBB Institute for Marketplace Trust START WITH TRUST INVESTOR EDUCATION MILITARY FAMILIES CHARACTER ETHICS FINANCIAL READINESS CONSUMER PROTECTION 2012 Annual Report
BOARD OF DIRECTORS CHAIRMAN Ken Carroll Manager, Customer Value SuccessFactors Inc. Steve Delfin President and CEO America s Charities Kip Morse President BBB serving Central Ohio Dana Rosenfeld Partner Kelley Drye & Warren LLP David Weiss President BBB serving Greater Cleveland Edwin Welch President I.L. Long Construction Carol Wilner Vice President, Public Affairs AT&T Services, Inc. EX-OFFICIO MEMBER Susan Kearney President BBB Institute for Marketplace Trust VISION An ethical marketplace where buyers and sellers can trust each other MISSION To be the leader in advancing marketplace trust
Letter from the BBB Institute Chairman Ken Carroll I am pleased to present the 2012 BBB Institute for Marketplace Trust Annual Report. In 2012, we proudly changed the name of the BBB Center to the BBB Institute for Marketplace Trust in an effort to articulate our important mission more clearly to the market. Growth was the keyword for the BBB Institute in 2012 as we built capacity to serve our mission by expanding both our board of directors and our programs. Five new members were elected to the Board of Directors in 2012. They represent BBBs, national corporations, nonprofits, and the legal profession; and bring expertise in fundraising, strategy and finance, and business self-regulation to the foundation. We welcome them and thank them for their volunteer service to BBB. Of course, we also recognize the service of our continuing board members who have supported the Institute for years. Each of our programs grew as well. BBB Military Line served nearly twice as many military members and their families in 2012 due to the committed organizations that sponsor the program; 48 BBBs were trained in a new consumer education program, BBB Smart Investing, that was initiated in 2012 thanks to the FINRA Investor Education Foundation; and the BBB Center for Character Ethics (an affiliate of the BBB Institute) entered its second year in 2012 with 10 BBBs participating and grew that to 14 by the end of the year. As we move into 2013 our plan is to continue this growth trajectory through solidifying longer term funding partnerships for existing programs and creating a research initiative to identify and share the bottom line benefits and best practices of business self-regulation versus government regulation. I thank each of you for your support of the BBB Institute for Marketplace Trust during 2012, and look forward to updating you on our progress in 2013 and beyond. Sincerely, Ken Carroll Chairman of the Board BBB Institute for Marketplace Trust
BBB MILITARY LINE The mission of BBB Military Line is to improve the financial readiness of and provide consumer education to approximately 22 million current and former military members and their families, who are targets of consumer scams and unethical business practices. Launched in 2004 as a partner in the Department of Defense (DoD) Financial Readiness Campaign, BBB Military Line subsequently has established numerous partnerships with the private sector and government agencies. As part of the DoD Financial Readiness Campaign, the CBBB signed Memoranda of Understanding with the DoD and Departments of the Army, Navy, Air Force and Marine Corps that allow BBBs access to military installations for educational purposes. CBBB is also a U.S. Coast Guard Qualified Organization, which allows BBB Military Line to reach Coast Guard members. An extensive community-based representation is maintained through 114 BBB locations throughout the U.S. With a BBB located near virtually all U.S. military installations, BBBs deliver national and geographicallyfocused informational, educational, outreach, and advocacy services. BBB Military Line has developed custom financial literacy curricula that BBB staff members teach on topics including: The Smart Consumer (Adult and Teen) Deals for Wheels (Adult and Teen) How to Buy a Home Investing for Retirement, and Scams & ID Theft
2012 HIGHLIGHTS BBB Military Line is sustained BBB Military Line, along with generous sponsorships led by Defense Credit Union Council (DCUC), fielded 810,000 Financial Field Manuals, shipping to all military installations, largest USO Centers, U.S. Chamber of Commerce Hiring Our Heroes events, Afghanistan, and Kuwait. BBB Military Line with support from FINRA, updated five of the seven military financial workshops and developed curricula that reflect current economic conditions and resources. Through close collaboration in support of the First Lady s Initiative, Joining Forces, McGraw-Hill and BBB Military Line created a website and app dedicated to military consumers militaryandmoney.com. through support from: Capital One Bank Defense Credit Union Council (DCUC) FINRA Investor Education Foundation/ SaveAndInvest.org The McGraw-Hill Companies With contributions from: Bank of America (BoA) Clearpoint Credit Counseling Solutions ementor Leadership Program InCharge Debt Solutions Investor Protection Institute Investor Protection Trust PenFed Foundation USAA Education Foundation USO Metropolitan Washington USO National In partnership with DCUC, a pilot program began in Headquarters October 2012 at five U.S. locations that promotes BBBs sharing information with military installation leaders about bad business practices directed toward military consumers. Primarily through BBBs interacting with military members and their families, face-to-face in local communities, BBB Military Line experienced an overall growth in engagements of 348%. BBB MILITARY LINE PROGRAM ENGAGEMENT ELEMENTS 2011 and 2012 Totals Education & Outreach Facebook Likes Twitter Followers E-Newsletter Subscribers Military Line Homepage Visits MilitaryandMoney Smartphone App Downloads MilitaryandMoney.com Visits 28 BBBs/Branches account for all Education and Outreach efforts
BBB SMART INVESTING One of the most exciting new opportunities in 2012 was the launch of BBB Smart Investing, a new consumer education program to provide investors with the necessary tools and resources to make informed investing decisions and avoid scams. The first offering under this new program is Outsmarting Investment Fraud, funded by a generous grant from the FINRA Investor Education Foundation, which is affiliated with the Financial Industry Regulatory Authority (FINRA). BBBs are encouraged to conduct local campaigns and host educational events. Outreach awards are available to help support their efforts. This new program is a two-year, $800,000 contract with a third-year option. Initial exploration into expansion to Canada is underway. In 2012, 48 BBBs received training in administering and presenting the program to local audiences. To date, 33 have applied and been accepted into the program. The program went public in the fourth quarter of 2012, with BBBs hosting nearly two dozen events throughout the nation, gaining more exposure for the program, reaching nearly 500 people in small, hands-on educational events. In 2013, we anticipate that BBBs will host 60 or more events across the country. The centerpiece of the educational effort is a DVD, TRICK$ OF THE TRADE: Outsmarting Investment Fraud, which is shown at the events and given away at fairs. Participants are getting creative and renting spaces at local theatres for movie screenings, setting the environment for a fun learning experience. CBBB has also launched a co-branded microsite to help educate consumers on investment at bbb.org/smartinvesting.
CENTER FOR CHARACTER ETHICS The new BBB Center for Character Ethics (an affiliate of the BBB Institute for Marketplace Trust) is striving to live up to its promise to help build better businesses by offering an integrated suite of ethics assessment, training and recognition programs. The Center entered its second year in 2012 following a successful inaugural launch with 10 BBBs, which has grown to 14 BBBs. In 2012, the Center reached its goal of completing three years of design, focus group and beta-testing of the BBB EthicalEnterprising sm Framework, BBB TRUST Assessment, and corresponding BBB Torch Award for Ethics sm. BBB system-wide program briefings and dissemination is planned for early 2013 including the new standardized Torch Awards for Ethics which now includes uniform standards for judging and a single application format that pre-qualifies all program participants to automatically qualify for a Torch Awards for Ethics international awards competition in 2014. Also in 2012, the Center for Character Ethics rolled out the National TRUST Project speaker program to fill BBB podiums with ethical enterprise and educator ethics authors, researchers and experts. The Center also added three new live BBB local Center websites to its nationally-integrated web presence at: centerforcharacterethics.org. To fortify a future workforce of high character for students and scholars, the Center leveraged its 2-year $250,000 John Templeton Foundation grant to expand the BBB Laws of Life project to five additional BBBs, and has been invited by the foundation to submit a 2013 proposal to expand this to an additional 15 BBBs with a three-year $600,000 grant. In 2012, the Center secured a two-year (2013-2014) grant commitment from a Midwest foundation to support the acquisition of full-time leadership to help a total of 25 BBBs during this period build their local Centers for Character Ethics and grow a national partner-funded ethics assessment-training-recognition process for larger businesses.
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