A responsibility revolution?

21 09 2009

Picture 1A new survey by Time magazine was highlighted in a recent article written by Richard Stengel: “For American Consumers, A Responsibility Revolution.”  Could this new halo many are happy to be wearing represent some of the most compelling signs of “the new normal”?

The research indicated:

  • 82% of people consciously supported local or neighborhood businesses
  • 40% of people said they purchased a product in 2009 because they liked the political or social values of the company that produced it.
  • 60% of Americans have bought organic products since January
  • 78% of those polled said they would be willing to pay $2,000 more for a car that gets 35 m.p.g. than for a similar one that gets only 25 m.p.g

As the article says, “That’s evidence of a changing mind-set, a new kind of social contract among consumers, business and government. We are seeing the rise of the citizen consumer — and the beginnings of a responsibility revolution.”

Once again, the Time survey adds to the rapidly growing amount of data that indicate we have reached the tipping point where values based marketing and sustainable branding are beginning to rise in importance with customers from all walks of life. Companies who recognize this and infuse sustainable branding into their total customer experience will inevitably be among the winners in the age of accountability.

Read the Time magazine article





Lessons from the U.K.

15 09 2009

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“This research shows that consumer values do not change, even in a middle of a recession. They want companies to act and cut their carbon footprints, and provide transparent and accessible evidence of action.  We believe companies that take real action will seize the dual benefits of immediate cost savings and a stronger reputation, which is good for business.”

– Harry Morrison, Carbon Trust Standard

New research from the Carbon Trust Standard in the United Kingdom shows that consumers still want to buy green despite the current economic climate, with 62% of consumers saying environmental concerns influence their purchasing decisions—‘the same as a year ago’ and just over a quarter saying they influence them ‘even more’ than in 2008.

Other fun factoids from the research that marketers should be aware of:

  • 66% of U.K. consumers say it’s important to buy from environmentally responsible companies.
  • 14%  said they have voted with their feet by deciding not to buy from a company based on their environmental reputation
  • 25% decided not to buy from a company based on a company’s ethical reputation.
  • 70% of consumers do not feel confident that they can clearly identify which companies are environmentally responsible.
  • 59% are skeptical about the environmental claims companies make.
  • 44% of consumers would like more information on what companies are actually doing to be environmentally responsible.

So sustainable branding requires new forms of communications and embracing transparency and honesty in all facets of a brand presentation.  The research further demonstrated this quest for information that engaged consumers are using to understand whether or not a company is environmentally responsible.  The research indicated the most important criteria they rely on are what they read in the media (38%) and third party endorsement or accreditation (34%).

The least popular factor consumers use to judge whether a company is behaving in an environmentally responsible manner is what advertising tells them (6%).





Congrats WestPac New Zealand: Branding Beyond The Numbers

2 09 2009

We’re interested to follow the development of a new sustainable branding campaign by one of the leading banks in New Zealand – WestPac.  Rather than try to differentiate by low interest rates and car loan messaging in their brand communication, WestPac has launched a multi-media marketing effort that showcases their commitment to sustainability and social responsibility.  

The brand communication plan supports messaging around the 10 goals WestPac has established for sustainability through 2012 and customers can track the bank’s progress on their website.  In addition to tangible sustainability goals such as carbon footprint reduction, the measurement includes community outreach programs such as the volunteer programs to clean up New Zealand’s beaches.

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We further applaude the smart nature of the communication by portraying one of the bank’s employees as having to learn the new behaviors that add up to sustainability with the line “being sustainable can be tough. we know.”  It’s a great example of a company taking a thought leadership position on sustainability, helping educate their customers on what they can do in their own everyday life, and becoming a catalyst for community action.  Congrats to WestPac for thinking beyond the numbers.

Learn more about WestPac’s sustainability efforts





Study underscores “socially responsible credit gap”.

17 08 2009

DSC_0588“People are willing to pay more for products from socially responsible companies, but almost no companies have any profile as socially responsible.”

PSBA Research

In a study conducted this March, Penn Schoen Berland Associates found that despite significant investments by many major corporations in corporate social responsibility initiatives, Americans have virtually no awareness of who does what, and who does things well.

Some interesting insights from the study first point to the facts that the majority of Americans (despite the recession) want to be associated with socially responsible companies.

  • 75% will pay more for a product from a socially responsible company.
  • 56% say working for a socially responsible company makes a difference.
  • 40% will take a pay cut to work for a socially responsible company.

The study also found that being “honest and trustworthy” was the most important company attribute—ranking higher than “quality” and “value”—regarding who Americans will do business with.

But the most unfortunate (and least surprising) set of findings in this research is how ill equipped Americans are to say what companies are socially responsible.  

  • 70% of those surveyed were unaware of any socially responsible activities of their own employers.
  • There was no correlation between those companies that Americans ranked as being leaders in social responsibility and the actual performance of those companies based on evaluations in the CRO 100. (conducted annually by the Corporate Responsibility Officer Association)

Clearly, this should be a wake up call to the leadership of all companies and those responsible for managing their reputation and brands.  In sum, it suggests there is a huge opportunity to use CSR efforts as a differentiator with an American audience that cares about those issues more than ever before and is placing trust at greater currency than quality and value.  

The call to action is to convert socially responsible practices into branded assets.  But this will require internal corporate silos to be broken down so people responsible for operations, HR and internal communication, PR, marketing branding, advertising, and all other forms of communication are working together around a focused and integrated CSR message.

Read the Corporate Citizenship Study





Coca-Cola introduces PlantBottle.

14 08 2009

6a00d834515f0569e20120a4e64400970b-800wiCoca-Cola has unveiled its new “PlantBottle” to be rolled out later this year with the Dasani brand and in its Vitaminwater portfolio of products in 2010. In a smart move toward sustainable branding, the new bottles and their environmentally responsible composition will feature on-bottle messaging, in-store displays and on-line marketing communications so customers can begin to appreciate they are purchasing a new sustainable technology.

Said Muhtar Kent, Coca-Cola’s CEO, “The “PlantBottle” is a significant development in sustainable packaging innovation. It builds on our legacy of environmental ingenuity and sets the course for us to realize our vision to eventually introduce bottles made with materials that are 100 percent recyclable and renewable.”

We agree – through its sweeping worldwide sustainability plan under the theme “Living Positively” – Coca-Cola is one of the innovators and pioneers of business practices that support overall good corporate citizenship.

A life-cycle analysis conducted by the Imperial College London indicates the “PlantBottle” consisting of 30 percent plant-based materials will reduce carbon emissions by up to 25 percent, in comparison with traditional PET plastic bottles.  The PlantBottle is currently made through an innovative process that turns sugar cane and molasses, a by-product of sugar production, into a key component for PET plastic. 

 





From Buyer Beware To Seller Beware: IBM’s Study On Corporate Social Responsibility.

12 08 2009

“Three quarters of businesses admit they don’t understand their customer’s corporate social responsibility expectations well.”

 – “Attaining sustainable growth through CSR”,

IBM Institute For Business Value

 

An interesting study of 250 global business leaders has revealed both the business upside to corporate social responsibility and one of the vulnerabilities – companies who embark on CSR initiatives without a true understanding of the expectations of their customers of those efforts.  The report reveals:

  • 68% of companies are now utilizing CSR as a opportunity and platform for growth.
  • 75% acknowledge the number of advocacy groups collecting and reporting information on their company has increased in the last three years.
  • But only 17% of companies say they really engage and collaborate with their customers regarding CSR activities.

Companies that truly understand the corporate social responsbility expectations of their customers report increased revenues and reduced costs and better differentiated products and services.  They believe they are more effective at improving labor practices, driving sustainability initiatives and aligning philanthropy with business priorities.  They also report having more engaged employees in CSR activities.

Ironically, many companies invest millions of dollars in gaining an understanding customers reactions’ to products and services, but the majority are operating a CSR strategy without insight and collaboration with customers.  The truth is your customer feels entitled to know everything “their brand” is doing.  So we echo IBM’s point of view, today the traditional adage “buyer aware” is now reversed to be “seller beware” — especially if you are unaware of your customers’ expectations regarding your social responsibility practices.

Watch an interview with George Pohle of IBM on the CSR Study





The next level of accountability. Governance for corporate behavior and its impact on the planet.

30 07 2009

Sustainability reporting among corporate issuers is largely still voluntary, it is far from universal, and often inconsistent and incomplete.”

– Social Investment Forum letter to SEC Chairman Mary Schapiro

imagesLast week the 400 member Social Investment Forum called on the Securities and Exchange Commission to establish the mandatory reporting of corporate environmental, social and governance (ESG) or sustainability reporting.  Citing the fact that corporate social and environmental performance can have material impact on portfolio performance, the proposal calls for sustainability performance to be reported on consistent measures and issued in an annual report along with standard financial disclosures.

The letter also pointed out that that similar regulation is being proposed by the United Nations and several individual countries.  While relatively off the radar screens in mass media, this conversation is serious in nature and represents significant steps forward in regulating accountability for corporations on social measures beyond financial data.

Read the letter.





What if my customers say they don’t care?

21 07 2009

  Whatever you can do or dream you can, begin it. Boldness has genius, power and magic in it.”  

                             – Johann Wolfgang von Goethe

 

“What if my customers say they don’t care?”  

This may be the number one question many companies are wrestling with regarding social responsibility and sustainability strategies.  And is central to the debate of whether it is possible to achive brand differentiation by infusing sustainable practices into messages directed to customers.

It is easy to appreciate how many companies over the past couple of decades have made significant investments to “stay close” to their customers. Brand attribute ratings.  Research departments rebranded as “consumer insights” groups. Tracking studies. Endless focus groups and telephone and on-line surveys.  Trend analysis and more.  Information is good and many sound business strategy decisions have been based on input on the wants and needs of the customer.  But too much information can also lead to an unhealthy paralysis.

So when the research points to data saying that customers don’t care about sustainability—corporate leaders have decisions to make.  This is especially true when we are still buffeted by an uncertain economic climate when many people are struggling financially and not in the position to make the sophie’s choice between being able to afford something they need vs. an alternative that may offer a higher degree of sustainability.  We acknowledge the cold reality that the economy may be holding back customers’ demanding sustainable behaviors, but beware the “sling shot effect” of how quickly this could change when the economic pressures ease.

This is the inflection point that is the very essence of what it means to be socially responsible.  Our way of thinking is that if you can achieve more responsible and sustainable practices (and we acknowledge the practices are not sustainable unless they are profit neutral), you have a moral obligation to do it whether or not your customer says they care.  And we further believe it is a social responsiblity to communicate what you are doing in an effort to educate and inspire your customers to not only appreciate what you are doing, but show them how they should alter their own behaviors for everyone’s benefit.

The next level of consumer insights then is to get deeper into the potential of the responsible and healthy relationship between a company and its customers. True innovation, creativity and positive social change rarely relies on permission.  It insists on the courage to do what is right and transformative and then to communicate the benefits of the innovation to the audience.

I draw the analogy to our society’s history of struggling with the knowledge that smoking tobacco has devasting health consequences.  After the Surgeon General first informed the public of the health hazards of smoking in 1964, it took decades to achieve the broad based awareness, acceptance and change of behaviors (in part because of the addictive nature of the habit).  But “responsible steps” were taken: public service campaigns, packaging warning labels, bans of advertising, bans of sale to minors, bans in public venues, legal action and consequently—millions of smokers quit and millions of non-smokers never started.  Today, some people still make the choice to smoke and to ignore the health consequences, but they are certainly aware of them.  And there is a social stigma that deeply influences healthy behavior for individuals as well as society at large.  None of this would have happened without leaders who were willing to stand up and embrace change as the right thing to do.

Fast forward to today. Even if your customers say they don’t care about sustainability, it is your responsibility to drive to achieve necessary sustainable behaviors into your organization because of your knowledge that it is the right thing to do whether or not your customer will applaud you for it.  The health and social consequences of NOT doing this is no less dramatic than pretending smoking is good for you.  And because it is the right thing to do, it is also imporant to inform your customer of what you are doing and why.  Public education is also a social responsibility.

Imagine if all the tools of today’s instantaneous communication – the internet, digital media, global connectivity, social networks – were available in 1964 when the public first learned about the dangers of smoking tobacco. How much more quickly would have behavior change been accelerated? How many millions of lives might have been improved?  How much suffering might have been avoided?  

We call on all companies to use all the tools and innovation at their disposal to drive sustainable change and communicate the efforts to their customers. Persuade your customers to care, persuade them to take care of themselves and their community.  This is how we will achieve necessary change when the clock is ticking.

There are many examples:  we are inspired by companies like Wal-mart, Tesco and Kingfisher who are driving meaningful sustainable behaviors into their organizations and then boldly yet honestly communicating what they are doing to their customers and how they should get involved.  Don’t wait for permission.





The Firm Voice: CSR Grows As Client Hot Button For PR Firms

16 07 2009

I had the pleasure of participating in a discussion with several communications professionals about the growing importance of corporate social responsibility and the best practices of integrating those efforts within broader reputation management and communication strategies.

Read the article here.





Congratulations to 46664 & Coca-Cola South Africa for Hello!

14 07 2009

Picture 1

Just ran across this moving video that shows an inspiring example of corporate social integration.  In a partnership with the NGO 46664 and using the words and voice of Nelson Mandela, Coca-Cola South Africa is helping raise awareness of the human rights crises that is HIV/Aids in Africa.

Using the iconic power of the Contour bottle, Coca-Cola placed one million empty bottles in random places across the country with a note from Nelson Mandela to further drive for positive living.

46664 International Director Tim Massey said: “The Hello Campaign illustrates the power of partnerships between corporates and charities to realize a common goal — in this case to increase awareness about HIV /Aids. Coca Cola’s generous donation will be used to fund the 46664 outreach activities, while the TV commercial and the outdoor activation will ensure that the 46664 campaign remains highly visible, and that Mr Mandela’s appeal for help is heard by most
South Africans.”

46664 International Director Tim Massey said: “The Hello Campaign illustrates the power of partnerships between corporates and charities to realize a common goal — in this case to increase awareness about HIV /Aids. Coca Cola’s generous donation will be used to fund the 46664 outreach activities, while the TV commercial and the outdoor activation will ensure that the 46664 campaign remains highly visible, and that Mr Mandela’s appeal for help is heard by most South Africans.”

See the Hello video





The Conference Board: New Report on Citizenship and Sustainability

6 07 2009

“The drivers behind sustainable activities — enhanced productivity, morale and reputation — are even more imperative in troubled times. Furthermore, products and services that improve efficiency and reduce carbon footprints should enjoy increasing demand, lending a new twist to the maxim that companies can do well by doing good.”  – The Conference Board

The data continues to pour in.  18+ months into the Great Recession and organization after organization is monitoring the public sentiment toward business, brands, and the economy at large.  Today, the highly respected Conference Board issued its latest report on Citizenship and Sustainability.  Like so many other recent data points, their report demonstrates again that people are ‘done’ with the past and fully intend to hold companies to higher standards of moral and ethical responsibility moving forward.

Of course, we call this Sustainable Branding.

Learn more from The Conference Board





Trust Gap: A New Landmark Study

25 06 2009

“Actions speak louder than words.  If the public believes that an organization’s first priority is profit maximization, it will be difficult, if not impossible, to build public trust.” – Business Roundtable Institute for Corporate Ethics, Arthur Page Society

A landmark special report was issued today that underscores the deep loss of trust between the public and business.

Read the report 

The topline strategic recommendations provide guidelines to business leaders on the requirements to gain renewed trust with the public.  At is essence, we believe all of these strategies can be summed up as “the golden rule:  treat others as you would like to be treated”.  A timeless axiom that seems to have been forgotten by the leadership of many companies recently.  Hopefully this report will help companies get back to the fundamentals of having a trusting relationship with the public.





Wall Street Journal Report: For companies operating in developing countries, it pays to commit to improving social and environmental conditions.

25 06 2009

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“Here’s a lesson many executives have yet to learn: A commitment to improving social and environmental conditions in the developing countries where a company operates is the key to maximizing the profits and growth of those operations.” – Wall Street Journal

Research reported in the Wall Street Journal indicates those companies that make a commitment to sustainable business practices in developing countries enjoy six key competitive advantages.

  • A sterling reputation.
  • Better employees.
  • More efficient production.
  • A smoother relationship with authorities.
  • Better coordination, internally and with suppliers.
  • Suppliers that are more reliable and flexible.

But importantly, not only is operating in a sustainable and responsible fashion key in developing countries, so is making your customers aware of that commitment.  Increasingly consumers are examining companies social and environmental track records before deciding what products they plan to buy.

Read the WSJ Report





Aberdeen Research: Executives Making Sustainability A Top Priority

25 06 2009

“Research demonstrates that leading companies have made a resoundingly strong business case for the adoption and expansion of genuine, sustainability strategies and initiatives. ” – Aberdeen Group

In a newly released survey of more than 1600 business executives in 700 companies worldwide, sustainability is identified as one of the top 5 corporate priorities in 2009.  The promising report highlights several key insights into current trends, including:

  • The sustainability efforts are being championed by C-suite executives.
  • Budgets are being either maintained or increased.
  • The vast majority of companies already have executive leadership in place to oversee sustainability.
  • Top performing organizations are already achieving strong business benefits —from cost reductions to enhanced brand value.
  • Across all sectors and geographies, responsibility framed strategies have grown in importance, despite the economy.

The research highlights our beliefs that many, many companies have embraced sustainability and social responsibility and are beginning to see positive return on investment for such efforts.  But few organizations have taken advantage of the opportunity to turn these business practices into differentiated marketing assets and brand equities.  Alignment of sustainability actions and brand messaging and experience remains a huge opportunity to enhance corporate reputation and turn customers into engaged brand ambassadors.

Read the Aberdeen Group Press Release





Trust Matters – The Edelman Trust Barometer’s Scary 2009 Report

23 06 2009

 

“I’m not upset that you lied to me, I’m upset that from now on I can’t believe you”
 Friedrich Nietzsche quotes

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I’m not upset that you lied to me, I’m upset that from now on I can’t believe you”  – Friedrich Nietzsche

Kudos to the Edelman Trust Barometer and their 2009 report citing the state of trust worldwide.  It dramatically underscores there is nothing short of a pandemic of lack of trust between people and companies, the media, CEOs, and experts.

Building sustainable brands will require regaining public trust and Edelman’s study reported only 38% of people 35-54 years old in the United States trusted U.S. businesses.  The report also showed that in the past year 77% of 25-to-64 year olds around the world refused to buy a product or service from a distrusted company.  

There is now a huge trust gap to overcome but those companies who aggressively recognize and embrace this new reality will be the ones that emerge from the recession with momentum and a long term competitive advantage.  

But now is the critical time to create and align sustainable and socially responsbile business practices with branding and communication programs to help your company stand apart and be among the winners in this new world where actions resonate and words alone will be ignored.





Become a fan of The Girl Effect

22 06 2009

picture-10An amazing organization with a mission of helping unleash the power of hundreds of millions of girls in the  developing world.    A major project of the Nike Foundation, the girl effect is already making a difference for girls in challenged countries such as Ethopia and Bangladesh.  A stunning example of driving toward sustainability, the girl effect volunteers help young girls become better educated, run their own business, organize in their communities and look out for her girlfriends.  They deserve all of our support.  experience the girl effect – amazing