Eric Block On Responsible Branding

“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

“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