Latino Donor Collaborative

Los Angeles, CAJanuary 14th – 15th, 2013

IntroductionThe LDC seeks to impact outcomes as it relates to inclusion and engagement of Latinos at the highest levels in every sector of our society

In order to achieve this goal, we launched this organization with a focus on shaping positive perceptions, images, and the "brand“ of Latinos

Recognizing that Latinos have been re-branded negatively, we have concentrated on positive outcomes in entertainment, news, and advertising media, and through the public policy process

Scorecard

Latino Voters and the 2012 Election (1 of 2)

Source: Pew Hispanic Center, “Latino Voters in the 2012 Election” and “An Awakened Giant: The Hispanic Electorate is Likely to Double by 2030”.

Latinos accounted for 10% of the vote and voted for Obama over Romney by a 2-1 margin

Obama71%

Romney28%

2000 2004 2008 2012

5.9

7.6

9.7

12.5

Total Latino Votes

Projected

Source: Pew Hispanic Center, “Latino Voters in the 2012 Election” and “An Awakened Giant: The Hispanic Electorate is Likely to Double by 2030”.

1988 1992 1996 2000 2004 2008 20120%

10%

20%

30%

40%

50%

60%

0.0

2.0

4.0

6.0

8.0

10.0

1.4 1.5

2.5 1.6 1.4

3.5

5.5

39% 36%

51%

27%

18%

36%

44%

Latino Presidential Vote Margin (Percent Democrat Difference)

# Margin % Margin

(figures in millions)

Latino Voters and the 2012 Election (2 of 2)

Source: U.S. Bureau of Census, Official websites for the U.S. Senate and U.S. House of Representatives.** - City population must be greater than 500,000

Senate – 3 / 100(3%)

House – 30 / 435(7%)

Governor – 2 / 50

(4%)

Mayor** – 2 / 33

(6%)

11

6

3

2

2

Electoral Representation Post-2012

2

2005 2006 2007 2008 2009 2010 2011 2012

Non-Criminal Criminal

Annual Deportations (000’s)

197232

293

371392 395

Source: U.S. Customs and Immigration Enforcement.

Deportations hit record levels despite decreasing net migration

397

“Criminal” Deportations Sharply Rising

410

Leadership Pipeline: Public SectorCase Study: State Legislatures

1992 1994 2003 2007 2009

161 155

215 238 242

# of Latino State Legislators

Source: National Association of Latino Elected Officials and the National Conference of State Legislatures and the U.S. Bureau of Census.

Latino political power at the state level has significantly lagged population growth

2.2% of

total

2.1%2.9%

3.2% 3.3%

Growth in Latino State Legislators (‘92-’09): 50%

Growth in U.S. Latino Population (‘90-’10): 225%

Enacted (5)Pending (9)Failed (15)

Tougher measures subsequently failed

Source: Based on data from the National Conference on State Legislatures, 2011-2012 and the National Council of La Raza

Original bill amended in response to successful

court challenge

AZ-style Legislation Faltering

Leadership Pipeline: Private Sector

C-level Corporate boards

Companies Positions Latinos % Latino Members Latinos % Latino

Banking

Print media

Electronic media

Hollywood studios

Top foundations

Silicon Valley

Fortune 100 100 1,211 46 3.8%

Fortune 500 500 5,463 164 3.0%

Need to create data sources to monitor pipeline

A full understanding of the pipeline could accompany our tracking of the top positions

Source: Hispanic Association on Corporate Responsibility 2007 Corporate Governance Study and 2011 Corporate Governance index; U.S. News & World Report; Alliance for Board Diversity Report, July 2011.

Metric Example Value (2012) Current Value

BankingChairman or CEO, Top 10 banks by assets

N/A 0% 0%

Academic Institutions

President, top 50 undergraduate institutions

University of Texas system 1 chancellor 1 chancellor

Hollywood Studios

Chief / Head top 10 studios by box office revenue

N/A none none

Top Foundations

President and Trustees, top 10 foundations by assets

Luis Ubiñas(Ford

Foundation)

1 president

5% trustees

1 president

5% trustees

Silicon Valley

Chairman or CEO, Top 10 tech companies by revenue

N/A 0% 0%

Fortune 100

CEO of Fortune 100 companies

George Paz (Express Scripts) 1 CEO 1 CEO

Source: Federal Reserve, U.S. News and World Report, School websites, Box Office Mojo, Studio websites, The Foundation Center, various Foundation websites, Fortune and The Wall Street Journal

Progress on Key Metrics – Top Positions

1.5% Fortune 1000

1.5% Fortune 1000

Source: Hispanic Association on Corporate Responsibility 2007 Corporate Governance Study and 2011 Corporate Governance index; U.S. News & World Report; Alliance for Board Diversity Report, July 2011, , and Korn/Ferry International

3.8% Fortune 100 board seats held by Hispanics

3.8% Fortune 100 board seats held by Hispanics

3.0% Fortune 500

3.0% Fortune 500

Current Perceptions

Source: Hill & Knowlton Strategies, U.S. Department of Homeland Security, and the Center for American Progress.

80% …of non-Hispanics associate Hispanics with NOT speaking

English

Reality:

Hispanics learning English at same rates as past immigrants

Nearly all 2nd generation Hispanics have mastered English

ABCDEFGHIJKLMNOPQRSTUVWXYZ

33% believe >50% “illegal”

75%overestimate

Reality:

only 17% of Hispanics are without current documentation

Hispanics Still Misperceived…

Source: Hill & Knowlton Strategies, 2012.

80%

70%

80%

Non-Hispanics Think or Associate Hispanics with…

…Leading to Negative Stereotypes

Source: Hill & Knowlton Strategies, 2012 and Pew Hispanic Center.

strong family structure and religious values

hard-working most people can get ahead in life if they work hard

90% 90%

80%

Non-Hispanics also think or associate Hispanics with…

And Latinos believe…

Despite Some Positive Associations…

Source: Hill & Knowlton Strategies, 2012.

Among Hispanic issues covered by the media, immigration and the U.S.-Mexican border have the highest volume of negative coverage, with nearly twice the volume of the leading positive issue (H+K)

Positive media coverage on Hispanics’ economic contributions, work ethic and religious faith comprises less than half the volume of media coverage on the leading negative topic, immigration and the U.S.-Mexican border

…Media Coverage Reinforces the Negative

Branding and Perceptions

Advertising Rationale: The Study of Brand XL

Brand perceptions influence individual attitudes and actions

Source: Cornelius DuBois, Foote, Cone & Belding in he Public Opinion Quarterly, Vol. 24, No. 3 (Autumn, 1960), pp. 465-530Published by: Oxford University Press on behalf of the American Association for Public Opinion Research. Courtesy of the Harvard Business School Baker Library Historical Collection.

Hypothesis: Through advertising you influence attitudes; through attitudes you influence sales

Study: 40 grocery store brands in 8 product categories with attitude scale of “one of the best” to “good” to “fair” to “poor”; completed in 1959

First group used the product and then reported favorability. Second group decided to use or not use the product based on these ratings.

One o

f the

bes

t

Mild

ly fa

vora

ble

Less

than

favo

rable

68%50%

28%

Continued Use – First Group

One of the best

Good Less than favorable

25%17%

9%

Continued Use – Second Group

How Perceptions Lead to Actions

Source: Robert J. Dolan, “Integrated Marketing Communications”, Harvard Business School.

In order to change perceptions: media, content, and advertising must be a major focus

Unaware of product

Awareness

Knowledge

Liking

Preference

Conviction

Purchase

Repeat Purchase

Cognitive stage

Affective stage

Behavioral stage

LDC Rebranding Chain

Legislation (Action)

Lawmaker (Decision-maker) preference

Perception / Salience

News

Reality

Voter (Viewer) conviction

Cognitive stage

Affective stage

Behavioral stage

Standard Purchasing Chain

EntertainmentAdvertisingPersonal experience

Source: Network websites

Morning Afternoon Evening

4.4%0.0%

3.7%

% Latino National Anchors

Where Perceptions Are Formed: News

Source: Network websites. * - In most cases, “Lead Actors” are the most featured character(s) in a series

2.2% 0.0% 0.0% 0.0%

% Latino Lead Actors*

Where Perceptions Are Formed: Content

Exposure Occurs in Entertainment and Ads

Source: Market sizing assumptions based primarily on Nielsen ratings, assuming a three-hour primetime period from Monday – Thursday and approximately 12 viewer impressions per hour. Movies data based on MPAA “Theatrical Statistics for 2011”, U.S./Canada admissions. Network nightly news is assumed to occur for one half-hour on ABC, CBS and NBC only.

Networ

k

ente

rtain

men

t

Adver

tisem

ents

Networ

k ni

ghtly

new

s

Mov

ies

(in th

eate

r)

Fox

News

CNN /

MSN

BC

9,600

2,212

675 443 270 72

Millions of Weekly Viewer Impressions

Avg. Viewers

10,000,000 7,500,000 1,500,000 200,000

The Advertising / Messaging Process

Source: Advertising Research Foundation “Toward Better Media Comparisons” (1961) and “Making Better Media Decisions” (2003).

This model suggests how impact can be achieved through the advertising process

VEHICLE DISTRIBUTION (CHANNELS)Potential reach (# of newspapers, TV’s, social media

etc)

VEHICLE EXPOSURE (SALIENCE)Who interacts with the message “open eyes and ears”

ADVERTISING EXPOSURE (SEGMENTING)Exposure of message to target audience (e.g. audience

ratings)

ADVERTISING ATTENTIVENESS (THEMES)Focus on and recall of the delivered message

RELATIVE IMPACT

Who to Target: Segmentation (1 of 2)

Source: Hill & Knowlton Strategies, 2012. Shading indicates value statistically different from other segments.

Female 18-34 HS or less College + Dem. Rep. Midwest Rural

Allies(20%)

56% 26% 20% 40% 37% 11% 20% 19%

Friendly Persuadables

(21%)44% 21% 21% 40% 33% 21% 22% 20%

% of group with characteristic in each segment

Who to Target: Segmentation (2 of 2)

Source: Hill & Knowlton Strategies, 2012. Shading indicates value statistically different from other segments.

Female 18-34 HS or less College + Dem. Rep. Midwest Rural

Challenging Persuadables

(24%)48% 22% 21% 41% 20% 29% 18% 24%

Opposition(29%)

57% 20% 30% 29% 20% 25% 24% 29%

% of group with characteristic in each segment

Do you think marriages between same-sex couples should or should not be recognized by the law as valid, with the same rights as traditional marriages?

May

-96

May

-97

May

-98

May

-99

May

-00

May

-01

May

-02

May

-03

May

-04

May

-05

May

-06

May

-07

May

-08

May

-09

May

-10

May

-11

May

-12

20%

30%

40%

50%

60%

% of Americans Answering “Valid”

Will & Grace premiers

Ellen DeGeneres comes out on

“Ellen”

Repeal of “Don’t Ask Don’t Tell”

Brokeback Mountain premiers

A “Comparable”: GLAAD and Public Perceptions

Source: Gallup, “Half of Americans Support Legal Gay Marriage”, May 8, 2012; and Gay & Lesbian Alliance Against Defamation “Accomplishments – 1985 – 1998”.

Prior to

1996

1987: NY Times agrees to use

“gay”1990: CBS suspends Andy

Rooney for homophobic comments

1993: Billboard and subway poster

campaigns launched1994: Roseanne episode with kiss

between 2 women

1996: CBS fires Ben Wright for

homophobic remarks

1995: Snapple pulls ads from Rush

Limbaugh

CA Prop 22 gay

marriage ban passes

61-39

3 states approve same-

sex marriage by avg. 53-47

“Glee” and “Modern Family”

premiere

A “Comparable”: Gay Community and Legislation

Pre-2002 2004 2006 2008 2012

Gallup Polling

35% 42% 42% 40% 50%

Source: Gallup, “Half of Americans Support Legal Gay Marriage”, May 8, 2012; and Peter Sprigg “Clarifying the Count of Marriage Amendments and Referenda”; May 18, 2012.

The Inside Track

Presidential Appointments% Portion of Cabinet-Rank Appointment-Years Served

George H. W. Bush William J. Clinton George W. Bush Barack H. Obama

5%

17%

11%

23%

14%

8%

5%

9%

5%

9%

African-American Hispanic Asian

Source: Wikipedia.

A Comparable: African-Americans and Boards

African-American Hispanic

415

164

Fortune 500 Board Seats Held

Source: Alliance for Board Diversity Report, July 2011; “IMPLICATIONS AND RECOMMENDATIONS OF THE 2004 CENSUS OF AFRICAN AMERICANS ON BOARDS OF DIRECTORS”, Executive Leadership Council, and various websites.

Pipeline Examples:Vernon Jordan, Franklin Raines, Earl Graves and Bonnie Hill all served on 5+ corporate boards as early as 2004

Raines served on the Time Warner board that selected Richard Parsons as CEO

Graves served on Aetna board that selected Ron Williams as CEO

Jordan served on the board that selected Kenneth Chenault to lead American Express

Chenault then lifted three African-Americans to board seats (himself, Ursula Burns, and Ron Williams)