Forbes: Purpose is the next digital

16 03 2023

The Stakeholder Model of Purpose. Graphic: CONSPIRACY OF LOVE

The Stakeholder Model Of Purpose: How Cause Marketing, CSR, Sustainability, DEI And ESG Can Operate Harmoniously In This New Age Of Purpose. By Afdhel Aziz, Contributor, Co-Founder, Conspiracy Of Love, And Good Is The New Cool via Forbes. Reposted: March 16, 2023

One of the biggest questions in the global movement of business as a force for good is how the different disciplines of CSR, ESG, sustainability, cause marketing, and diversity and inclusion all fit with the idea of Purpose.

I propose this simple model to show how they can all work in harmony.

Purpose is the Next Digital

A good analogy to start with comes from the quote ‘Purpose is the next Digital’ by Max Lenderman. In the same way that businesses had to transform themselves in every aspect (from the supply chains to their marketing) with the arrival of digital technology, the same evolution is happening with the advent of Purpose.

We see the emergence of the term ‘Purpose’ – the overarching umbrella term now increasingly being used to describe the idea of business as a force for good – in much the same way as we see the term ‘Digital.’ Just as ‘Digital’ now covers a myriad of different channels and technologies (from CRM, to supply chain management, to social media), so too does Purpose now encompass a wide range of different disciplines that preceded it (like CSR, ESG, DEI, etc).

Moving from Shareholder to Stakeholder Capitalism

The evolution of business we are seeing has also often been described as a move away from purely Shareholder-driven capitalism (where only the needs of investors were taken into account) towards a more Stakeholder-driven model (where the needs of multiple stakeholders including employees, consumers, investors, communities and the planet are also considered).

As such, mapping different manifestations of Purpose against these stakeholder groups provides a simple way to understand how they can all work in harmony, towards the higher order purpose.

Purpose at the core: The higher order reason for a company’s existence that inspires action to profitably solve the problems of the world. This exists as the core organizing principle of a truly Purpose-driven company, acting as a North Star around which to align all of the following.

Diversity, Equity and Inclusivity (DEI) is an Employee-focused manifestation of Purpose, ensuring that there are systems and processes in place in order to ensure a culture of belonging and opportunity, regardless of gender, ethnicity, sexuality, disability or neurodiversity. Inclusion should be baked into every aspect of the employee experience from recruitment to retention to Governance. If done right, it can not only lead to employee motivation and engagement but also innovation that leads to inclusive growth, through identifying new opportunities that less diverse cultures cannot envision.

Of course, DEI is only one manifestation of Purpose as it pertains to employees: there are so many more avenues (from inspiring personal purpose, to volunteering, giving, innovation and more generally, building it into the talent value proposition (TVP) and activating it at every stage from recruitment to onboarding to retention and career planning.

Cause marketing (or Purpose-driven marketing) is the legacy term for the manifestation of Purpose towards Consumers. This has now blossomed into many forms beyond its original basic models of the past.

This could take the form of initiatives that engage consumers via simply buying the product (eg TOM’s famous 1 for 1 model or Product (Red) which helped raise money for HIV/AIDS prevention.

At retail, this could manifest in a portion of revenue from products going to good causes (for instance, see Chips Ahoy raising money for the Boys and Girls Clubs of America).

Or indeed in digital or physical activations (for instance, Airbnb’s Open Homes initiative which invited hosts to donate their homes to refugees and victims of natural disasters).

Corporate Social Responsibility (or CSR) is the manifestation of Purpose towards the Communities a company serves – whether they be geographically contextual (like helping communities in the cities the company is based in) or issue focused (like The North Face funding non-profits that help make the outdoors more diverse via their Explore Fund grant).

This has always been a form of corporate philanthropy that a company has practiced in a more ‘defensive’ mode to deflect criticism of them not being a good corporate citizen. But in recent years, progressive companies have seen the benefit of treating CSR in a more enlightened way. By representing the voice of community to the company, and building deep relationships with non-profits and other partners, it can become a vital force helping drive authenticity, innovation and growth.

Sustainability is the manifestation of Purpose towards the Planet, pertaining to everything from how a company utilizes resources efficiently (like reducing their carbon footprint, stripping plastic out of their supply chain or managing waste) to how it obtains the resources (eg agricultural or mineral) with an ethical supply chain that is respectful not only to the Earth but the people who help them obtain it (eg farmers)

ESG (Environmental, Social, Governance) is the manifestation of all of the above in a codified way towards Investors and Shareholders, in a transparent and measurable way, in a way that allows for comparison between companies. Despite attempts to politicize and demonize it, when done correctly it can become a useful tool to help articulate Commitments the company is making in service of environmental and social goals (people and planet) in an accountable and tangible way.

The key to success in this new world of Purpose is orchestration. When all these disparate disciplines are re-aligned around a powerful and inspiring Purpose, the effect is so much stronger than if they were focused on a myriad of different objectives and issues. They become parts of an orchestra playing a harmonious single theme rather than instruments operating on a discordant solo basis.

To see the original post, follow this link: https://www.forbes.com/sites/afdhelaziz/2023/03/14/the-stakeholder-model-of-purpose-how-cause-marketing-csr-sustainability-dei-and-esg-can-operate-harmoniously-in-this-new-age-of-purpose/?sh=27616a3af777

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Cause Marketing Halo Awards: Social Impact To Build A Better World And Bottom Line

17 02 2016

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The 2016 Cause Marketing Halo Awards announced its 42 finalists of programs designed to yield both social and financial dividends.  The Gold and Service winners in each of ten categories will be announced at the at the 2016 Cause Marketing Forum Annual Conference in Chicago June 1-2, 2016.

 

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More than 100 entries were received in the Cause Marketing Forum’s competition for North American programs designed to yield social and financial dividends.

Programs named finalists in multiple categories include

  • Bank of America’s “Pass the Flame” campaign with Special Olympics promoting inclusion of people with intellectual disabilities in sports and in life;
  • Think it Up’ Staples/DonorsChoose.org partnership supporting student-powered, teacher-led projects in classrooms across the country;
  • Gateways and Getaways’, a bird- and flight-centric education program for New York families from JetBlue and the Wildlife Conservation Society;
  • Dementia-Friendly Massachusetts’ which Senior Living Residences developed to help people better understand the challenges of living with dementia;
  • #Unlimited’ a tween-targeted back to school program from Old Navy and Boys & Girls Clubs of America to support summer programming for kids.

The Halo Awards will highlight many of the most innovative programs that companies and causes took at the intersection of profit and purpose last year. Some examples include:

  • A video game marathon that raised funds to put veterans back to work.
  • An app that helps autistic children make social and emotional connections.
  • Canvas shoes turned into artwork to support high school arts programs.
  • “Thumb Socks” that help persuade teens from texting and

With the proliferation of cause campaigns reaching consumers each day, the Cause Marketing Halo Awards are designed to bring clarity, innovation and best practices to light.

About the Cause Marketing Forum

Now in their fourteenth year, the Cause Marketing Halo Awards are North America’s highest honor in the field of cause marketing. They are presented to US and Canadian companies by the Cause Marketing Forum, a company dedicated to providing business and nonprofit executives with the practical information and connections they need to succeed.

All Halo finalists can be seen online at: http://www.CauseMarketingForum.com/halo2016

original post  http://www.csrwire.com/press_releases/38699-These-Corporate-Social-Impact-Programs-Build-a-Better-World-and-the-Bottom-Line





Cause Driven Social Campaigns More Effective Than Brand Stories.

21 10 2014

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New research released in London this week points to the effectiveness of cause driven social campaigns activated by brands – showing superior business results than traditional brand communication stories, especially in social media.

In the report, Seriously Social by marketing consultant Peter Field, research indicates that not only were cause-driven campaigns better at delivering business effects — they also generated greater numbers of brand effects once the non-profits were removed from the equation.

Field analysed case studies from the Warc Prize for Social Strategy – a global competition for examples of social ideas that drive business results – defined social strategy as any activity designed to generate participation, conversation, sharing or advocacy.

“Cause-driven campaigns are more strongly associated with business effects,” Field stated, a finding that became even clearer when stripping non-profit campaigns out of the calculation.

Field was able to compare the impact of campaigns that associated a brand with a good cause, with the impact of those that built a story around a brand.
He found that media usage for cause-driven campaigns was more strongly focused on online, WOM/earned media and traditional advertising channels (excluding TV). Brand story campaigns, in contrast, made wider use of media channels and, as they were more likely to be short-term campaigns, included much more activation.

These patterns had an impact on subsequent effectiveness.  The business effectiveness of cause driven-campaigns was found to increase markedly over time, whereas that of brand story campaigns did not.

“Again, this is a reflection of the short-term outlook of the latter group,” Field said, who suggested that conclusions about effectiveness drawn over a period of less than six months would underplay the true strength of cause-driven campaigns.

Source:  WARC





Nielsen: Doing Well By Doing Good

3 07 2014

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55% of global respondents in Nielsen’s corporate social responsibility survey were willing to pay extra for products and services from companies committed to positive social and environmental impact—an increase from 45% in 2011.  However, people living in North America lag the global average, with only 42% saying they would be willing to pay extra – a 7% increase from three years ago.

As continued impactful climate change events and social consciousness raises people’s concern about companies’ impact on society, the importance of brand’s corporate responsibility reputations will continue to rise.  Brands which act responsibly and communicate those actions effectively will increasingly be the ones rewarded by consumers.

 

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Images:  Future Leaders in Philanthropy, Nielsen





Brandkarma: A new Global Reputation System for Brands

7 03 2014

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“Brands often fall short of their potential to do good – reputation without responsibility. Brandkarma will change that.”

Upendra Shardanand, founder Daylife

Welcome Brandkarma.com – the first social community that will rate and review brands ability to do good in the world.

Consumer research has repeatedly demonstrated that people expect businesses to operate responsibly and to contribute to positive change in the world.  Many people say that if brands fail to operate responsibly, they will stop purchasing the products that the brand provides.

Brandkarma.com was launched to empower consumers to better translate those beliefs into action.  Brandkarma.com allows consumers to see brands holistically – not only the quality of their products but the brand behaviors toward their employees, their community and the planet at large.

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visit brand karma.com here





86% of Americans Expect Food and Beverage Brands To Actively Help Recycle Their Packaging.

12 11 2013

Recycling-binsAn overwhelming majority of Americans want brands to get engaged in creating and implementing recycling programs, according to a new survey of 1000 adults by the Carton Council of North America (CCNA).

In a statement, Jason Pelz, VP of environment at Tetra Pak North America, and VP of recycling projects for the CCNA  said, “First and foremost, this survey reiterates the importance of including a recycling message on product packaging.  In an increasingly competitive and green‑minded climate, consumers are revealing they expect food and beverage brands to actively help increase the recycling of their packages.”

U.S. consumers also indicated that they look first to the products they purchase for environmental information, ahead of other resources, with the vast majority (76 percent) consulting a product’s packaging to learn if a package is recyclable, followed by the product’s company website (33 percent) and the consumer’s city website (26 percent).

Importantly, 45% say their loyalty to food and beverage brands would be impacted by that brand’s engagement with environmental causes.

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The Carton Council is leading a national effort to increase access to carton recycling in the U.S. In 2009, 21 million U.S. households had access to carton recycling in 26 states. Now, 52.5 million households in 45 states can recycle cartons, a 150 percent increase that includes 64 of the nation’s top 100 cities. Food and beverage brands that use cartons for their products are encouraged to join this effort, especially in helping promote carton recycling to their customers. CCNA can provide companies with tools to inform their customers — from the first step, which is adding the recycling logo to packages and recycling information on their websites, to an extensive list of possibilities beyond that.





The Aspirational Consumer: 2.5 Billion People Redefining Responsible Consumption

8 10 2013

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A new global consumer study confirms the rise of nearly 2.5 billion consumers globally who are uniting style, social status and sustainability values to redefine consumption.

According to the report by BBMG, GlobeScan and SustainAbility : The 2013 Aspirational Consumer Index – more than one-third of consumers globally (36.4%) identify as Aspirationals, defined by their love of shopping (78%), desire for responsible consumption (92%) and their trust in brands to act in the best interest of society (58%). The study draws from a telephone and in-person survey of more than 21,000 consumers across 21 international markets conducted in April 2013.

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According to Eric Whan, Sustainability Director at GlobeScan, “Aspirationals are materialists who define themselves in part through brands and yet they believe they have a responsibility to purchase products that are good for the environment and society.  By engaging Aspirational consumers, brands can further the shift toward more sustainable consumption and influence behavior change at scale.”

Key characteristics of Aspirational consumers include:

  • Trust in Brands: Nearly six in ten Aspirational consumers globally say they “trust global companies to act in the best interest of society” (58%), compared with 52% of all consumers;
  • Seek Style and Status: Three-fourths of Aspirational consumers say “I want to stand out by the way I look, my style” (73%), compared to 53% of all consumers;
  • Positive Influencers: Nearly nine in ten Aspirational consumers say “I encourage others to buy from socially and environmentally responsible companies” (88%), compared to 63% of all consumers;
  • Empowered Shoppers: Nearly eight in ten Aspirational consumers say “shopping for new things excites me” (78%), compared to 48% of all consumers, and believe they “can change how a company behaves based on my purchase decisions” (78%), compared with 66% of all consumers;
  • Responsible Consumers: Nine in ten Aspirational consumers say “I believe we need to consume less to preserve the environment for future generations” (92%), compared to 75% of all consumers, and that they are “willing to pay more for products produced in a socially and environmentally responsible way” (91%) compared to 64% of all consumers;
  • Young and Urban: Demographically, Aspirational consumers make up the largest percentage of Millennial (40%) and GenX (37%) generations, compared to 32% and 33% in the general population, respectively, and nearly six and ten (59%) live in cities; and
  • Strength in Emerging Markets: Countries with the largest populations of Aspirational consumers include China (46%), Nigeria (45%), Pakistan (44%), India (42%), Australia (41%), Canada (40%), Indonesia (38%), Greece (37%), France (36%), USA (36%), Turkey (35%) and the UK (34%).

“Driven by young, optimistic consumers in emerging markets and amplified by technology and social media’s influence, Aspirationals represent a powerful shift in sustainable consumption from obligation to desire,” said Raphael Bemporad, co-founder and chief strategy officer at brand innovation consultancy BBMG. “With Aspirationals, the sustainability proposition has changed from being the ‘right thing to do’ to being the ‘cool thing to do,’ and brands have a profound opportunity to harness sustainable design and societal values to inspire the next generation of commerce and create positive impact in the world.”

“For decades, green marketers have been speaking to the wrong consumers, assuming that by engaging the most committed ‘advocates’ we would create significant business growth, cultural relevance and change at scale,” Bemporad added. “What makes Aspirationals so compelling is that they combine an authentic commitment to sustainability with a love of shopping, design and social status, aligning economic, cultural and social forces to shift the way we shop.”

“With 2.5 billion consumers worldwide, Aspirationals offer an important opportunity to redefine sustainable consumption,” said Mark Lee, Executive Director at SustainAbility. “Like never before, brands can engage Aspirationals to pioneer new models and practices that can deliver economic growth while reducing negative impacts on the environment.”

 

Read the original press release on CSR Wire.





Carbon Trust: 2/3 of public unable to name businesses that take sustainability seriously.

23 09 2013

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In a recent survey of more than 1,800 adults in the United Kingdom, The Carbon Trust Fund found that 68% of people were unable to name a company that is taking sustainability seriously.

In addition, just 5% of respondents see businesses as being most effective in helping the environment.  Despite the significant efforts many companies across the world are making to turn their business operations to more responsible and sustainable entities, the UK study underscores how poorly those companies are communicating their actions.

According to Tom Delay, the chief executive of Carbon Trust:

“While it’s clear that consumers still care about the environmental future, their perspective on where the responsibility falls is skewed. It cannot be solely down to environmental groups to shoulder the weight of protecting our planet’s natural resources. Businesses have an enormous role to play here and need to be seen to be doing their part.  As businesses look for more ways to grow, sustainability should become a golden opportunity for investment, allowing them to become more resilient to future environmental resource shocks and to cut their costs and grow their revenues. The smart companies will invest now and put sustainability inside their businesses.”

The same survey of UK adults did have some encouraging signs regarding concern for the environment.   The demand for green products appears to be increasing with only 6% saying they are less likely to buy a sustainable product and/or service than five years ago while almost three in ten (27%) said they are more likely.   Increased concern about the personal impact of what they buy on the environment was the most important reason for this (45%) and 43% of the public surveyed said they lead a more sustainable life than five years ago.





RAIN: Replenish Africa Initiative From Coca-Cola

1 05 2013

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Nearly one billion people do not have access to clean, safe water – that’s the equivalent of 1 in 8 people on the planet!  In Africa, preventable waterborne illnesses claim the lives of millions of people each year. No single organization can resolve Africa’s water crisis, but together, with a combination of civil society, non-governmental organizations and government, we can make a positive difference on Africa’s water challenges.

The Replenish Africa Initiative, or RAIN, is therefore the signature community initiative of The Coca-Cola Africa Foundation. Backed by a six-year, $30 million dollar commitment by The Coca-Cola Company, in partnership with other donors, RAIN’s goal is to provide over 2 million people in Africa with access to drinking water by 2015. RAIN will launch over 100 water access programs across Africa, including sanitation and hygiene education programs.

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The Coca-Cola Africa Foundation has been involved in community water programs since 2005. To date, 42 water projects in 27 countries have been supported, in partnership with and co-funded by USAID (United States Agency for International Development) under the Water and Development Alliance (WADA) and other partners. Within The Coca-Cola Company’s three-tier global water stewardship strategy which is focused on Reducing, Recycling and Replenishing the amount of water used in Coca-Cola beverages and their production, The Coca-Cola Africa Foundation’s focus is on Replenishing – or community based water interventions.

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The United Nations estimates that Sub-Saharan Africa alone loses 40 billion hours per year collecting water; that’s the same as a whole year’s worth of labor by France’s entire workforce! This is incredibly valuable time.

According to The Water Project, with much of one’s day already consumed by meeting basic needs, there isn’t time for much else. The hours lost to gathering water are often the difference between time to do a trade and earn a living and not. Just think of all the things you would miss if you had to take three hours out each day to get water.

When a water solution is put into place, sustainable agriculture is possible. Children get back to school instead of collecting dirty water all day, or being sick from waterborne illnesses. Parents find more time to care for their families, expand minimal farming to sustainable levels, and even run small businesses.  learn more at http://thewaterproject.org

In collaboration with various partners, volunteers, patrons and organizations, RAIN is not just for the immediate future of Africa, but also for the long-term sustainability of its resources. RAIN is also The Coca-Cola Company’s contribution to help Africa meet the UN Millennium Development Goal on water and sanitation.





Cone: Green Gap Shows Actions Don’t Align With Intent

6 04 2013

Green-Question-300x300In the release of its latest 2013 Cone Communications Green Gap Trend Tracker, a record-high 71 percent of Americans consider the environment when they shop, up from 66 percent in 2008*. However, Americans continue to struggle with their role in the life-cycle of products with an environmental benefit.

90% said they believe it’s their responsibility to properly use and dispose of these products, but action isn’t aligning with intent:

• Only 30% say they often use products in a way that achieves the intended environmental benefit

• 42% say they dispose of products in a way that fulfills the intended environmental benefit

• 45% of consumers actively seek out environmental information about the products they buy.

Despite the lack of consistent follow-through, consumers are showing an inclination to learn more.

• 71% of Americans report they regularly read and follow instructions on how to properly use or dispose (66%) of a product.

• 41% said they perform additional research to determine how best to utilize and discard a product for maximum benefit.

Responsible Brands Communicate and Facilitate Change

In a statement,  Liz Gorman, Cone Communications’ senior vice president of Sustainable Business Practices said “Consumers are ready to follow through on the intended use or disposal of environmentally preferred products, but they need companies’ help.  This is the next evolution of environmental marketing. Clear and candid communication can ensure consumers understand the important role they play in minimizing the impacts associated with the product’s lifecycle.  The new green gap is about consumers only taking the idea of responsibility so far, despite feeling responsible for proper use and disposal.  They’re buying with the environment in mind, but they rely on companies to provide access and education to truly ‘close the loop.”

Consumer understanding of environmental messages also presents an obstacle.

Although more than 60 percent of respondents say they understand the environmental terms companies use in their advertising, the majority continue to erroneously believe common expressions such as “green” or “environmentally friendly” mean a product has a positive (40%) or neutral (22%) impact on the environment. Fewer were able to correctly identify these terms as meaning the product has a lighter impact than other similar products (22%) or less than it used to (2%). Despite the attention given to product development and environmental marketing, consumer misunderstanding of “green” claims has remained flat at around 60 percent since 2008.

• 71% of consumers wish companies would do a better job helping them understand environmental terms. Although they feel overwhelmed by the volume of messages in the marketplace, consumers prioritize authenticity over perfection and will punish companies if they feel misled:

• 48% percent say they are overwhelmed by environmental messages

• 69% say it’s okay if a company is not environmentally perfect as long as it is honest

• 78% say they will boycott a product if they discover an environmental claim to be misleading

Abridged from a report on the research in a statement from Cone Communications.  Read the full press release here.

Click to access 2013_cone_communications_green_gap_trend_tracker_press_release_and_fact_sheet.pdf





WFA: Marketers Lag Consumers On Importance Of Responsible Brands

9 03 2013

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According to new research released this week by the World Federation of Advertisers, some 83% of marketers believe brands should have a “purpose”, but many shoppers have moved ahead of the industry in this area.  Some 56% of industry insiders thought consumers would prefer brands that supported “good causes at the same time as making money”, but Edelman’s consumer research pegged the actual total at 76%.

These figures stood at 40% and 47% respectively with regard to how many people bought caused-backing products at least once a month.

More broadly, only 38% of marketers had witnessed “consumer scepticism” when trying to position their products around a “purpose”, with shoppers in Europe, somewhat surprisingly, the least cynical.

The trade body polled 149 marketers from 58 firms controlling $70bn in adspend. It then compared the results with a global poll of 8,000 shoppers conducted by Edelman, the PR network.  The study was presented at the WFA’s Global Marketer Week, and features insights from organisations like Anheuser-Busch Inbev, the brewer, and Johnson & Johnson, the healthcare giant.

Fully 80% of the professionals polled agreed chief executives should help and be involved in shaping a purpose, a reading which stood at 74% for chief marketing officers, 64% for corporate communications and 53% for all staff.

While 49% of this panel agreed their brands had a purpose, only 38% felt it was communicated well. More positively, a 93% majority said the impact of purpose on reputation could be measured, as did 91% for consumer engagement.

Upon being asked to name the company which has best embraced purpose, Unilever, the FMCG firm, led the charts on 23%, buoyed by its goal to double sales and halve its environmental footprint by 2020.

Procter & Gamble, a rival to Unilever, took second on 15%, and has embraced the corporate mantra of “touching and improving” consumers. Soft drinks titan Coca-Cola was third on 14%.





Aspirational Consumers: Balancing Style and Sustainability

5 02 2013

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A new study by BBMG, GlobeScan and SustainAbility finds that a majority of consumers across six international markets are seeking to reconcile their desire for shopping and style with responsibility to the environment and society through their purchases. According to the report, Rethinking Consumption: Consumers and the Future of Sustainability, nearly two-thirds of consumers globally equate shopping with happiness (63%) while also feeling a sense of responsibility for society (65%). The study draws from an online survey of 6,224 consumers across Brazil, China, India, Germany, the United Kingdom and the United States conducted in September and October 2012.

In exploring the intersection of consumer values, motivations and behaviors, the study identifies four consumer segments on the sustainability spectrum: highly committed Advocates (14%); style and social status-seeking Aspirationals (37%); price and performance-minded Practicals (34%) and less engaged Indifferents (16%).

Aspirationals represent hundreds of millions of consumers globally, and are the largest consumer segment in Brazil, China and India. More than any other segment, Aspirationals care about style (65%) and social status (52%), and equate shopping with happiness (70%). Yet, they are also among the most likely to believe that we need to “consume a lot less to improve the environment for future generations” (73%), and feel “a sense of responsibility to society” (73%).

Aspirationals are looking for brands to provide solutions that both improve their lives and serve society as a whole,” said Pam Alabaster, Senior Vice President Corporate Communications, Sustainable Development & Public Affairs at L’Oréal USA, a sponsor of the study. “Understanding this dynamic tension provides the greatest opportunity for companies to create positive impact through consumers’ purchasing decisions and social actions.”

Aspirationals represent the persuadable mainstream on the path to more sustainable behavior. They love to shop, are influenced by brands, yet aspire to be sustainable in their purchases and actions,” said Raphael Bemporad, Co-Founder of brand and innovation consultancy BBMG. “This consumer segment represents a significant opportunity for forward-looking brands to unite consumerism with social and environmental values.”

“The ideals, influence and size of the Aspirationals segment — particularly in developing markets — is what makes them so compelling for sustainable brands,” said Mark Lee, Executive Director at think tank and strategic advisory firm SustainAbility. “But simply helping people to consume more products that are incrementally ‘better’ is not necessarily the answer. Leading companies will seek to meet the needs of the Aspirationals beyond just products by delivering value through services, sharing, expertise and purposeful engagement.”

Eric Whan, Sustainability Director at GlobeScan, added: “In our fifteen years of market analysis, we’ve never seen an opportunity like this. The Aspirationals will chart the future of sustainable consumption, as long as their favorite brands offer them what they want.”

Developed by BBMG, GlobeScan and SustainAbility, The Regeneration Consumer Study is an in-depth online survey of consumer attitudes, motivations and behaviors relating to sustainable consumption. The study is part of the The Regeneration Roadmap, a collaborative and multi-faceted thought leadership initiative designed to engage the private sector in advancing sustainable development by improving sustainability strategy, increasing credibility and delivering results at greater speed and scale.





Think. Eat. Save. Reduce Your Foodprint.

3 02 2013

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Simple actions by consumers and food retailers can dramatically cut the 1.3 billion tons of food lost or wasted each year and help shape a sustainable future, according to a new global campaign to cut food waste launched last month by the UN Environment Programme (UNEP), the Food and Agriculture Organization (FAO) and partners.

The Think.Eat.Save. Reduce Your Foodprint campaign is in support of the SAVE FOOD Initiative to reduce food loss and waste along the entire chain of food production and consumption – run by the FAO and trade fair organizer Messe Düsseldorf – and the UN Secretary General’s Zero Hunger Initiatives. The new campaign specifically targets food wasted by consumers, retailers and the hospitality industry.

The campaign harnesses the expertise of organizations such as WRAP (Waste and Resources Action Programme), Feeding the 5,000 and other partners, including national governments, who have considerable experience targeting and changing wasteful practices.

Think.Eat.Save. aims to accelerate action and provide a global vision and information-sharing portal (www.thinkeatsave.org) for the many and diverse initiatives currently underway around the world.

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Worldwide, about one-third of all food produced, worth around US$1 trillion, gets lost or wasted in food production and consumption systems, according to data released by FAO. Food loss occurs mostly at the production stages – harvesting, processing and distribution – while food waste typically takes place at the retailer and consumer end of the food-supply chain.

“In a world of seven billion people, set to grow to nine billion by 2050, wasting food makes no sense – economically, environmentally and ethically,” said UN Under-Secretary-General and UNEP Executive Director Achim Steiner.

“Aside from the cost implications, all the land, water, fertilizers and labour needed to grow that food is wasted – not to mention the generation of greenhouse gas emissions produced by food decomposing on landfill and the transport of food that is ultimately thrown away,” he added. “To bring about the vision of a truly sustainable world, we need a transformation in the way we produce and consume our natural resources.”

“Together, we can reverse this unacceptable trend and improve lives. In industrialized regions, almost half of the total food squandered, around 300 million tonnes annually, occurs because producers, retailers and consumers discard food that is still fit for consumption,” said José Graziano da Silva, FAO Director-General. “This is more than the total net food production of Sub-Saharan Africa, and would be sufficient to feed the estimated 870 million people hungry in the world.”

“If we can help food producers to reduce losses through better harvesting, processing, storage, transport and marketing methods, and combine this with profound and lasting changes in the way people consume food, then we can have a healthier and hunger-free world,” Graziano da Silva added.

The global food system has profound implications for the environment, and producing more food than is consumed only exacerbates the pressures, some of which follow:

  • More than 20 per cent of all cultivated land, 30 per cent of forests and 10 per cent of grasslands are undergoing degradation;
  • Globally 9 per cent of the freshwater resources are withdrawn, 70 per cent of this by irrigated agriculture;
  • Agriculture and land use changes like deforestation contribute to more than 30 per cent of total global greenhouse gas emissions;
  • Globally, the agri-food system accounts for nearly 30 per cent of end-user available energy;
  • Overfishing and poor management contribute to declining numbers of fish, some 30 per cent of marine fish stocks are now considered overexploited.

Part of the trigger for the campaign was the outcome of the Rio+20 Summit in June 2012, in which Heads of State and governments gave the go-ahead for a 10-Year Framework of Programmes for Sustainable Consumption and Production (SCP) Patterns. Developing an SCP programme for the food sector must be a vital element of this framework, given the need to sustain the world’s food production base, reduce associated environmental impacts, and feed a growing human population.

“There can be no other area that is perhaps so emblematic of the opportunities for a far more resource-efficient and sustainable world – and there is no other issue that can unite North and South and consumers and producers everywhere in common cause,” said Mr. Steiner.

According to FAO, roughly 95 per cent of food loss and waste in developing countries are unintentional losses at early stages of the food supply chain due to financial, managerial and technical limitations in harvesting techniques; storage and cooling facilities in difficult climatic conditions; infrastructure; packaging and marketing systems.

However, in the developed world the end of the chain is far more significant. At the food manufacturing and retail level in the developed world, large quantities of food are wasted due to inefficient practices, quality standards that over-emphasize appearance, confusion over date labels and consumers being quick to throw away edible food due to over-buying, inappropriate storage and preparing meals that are too large.

Per-capita waste by consumers is between 95 and 115 kg a year in Europe and North America/Oceania, while consumers in sub-Saharan Africa, south and south-eastern Asia each throw away only 6 to 11 kg a year.

According to WRAP, the average UK family could save £680 per year (US$1,090) and the UK hospitality sector could save £724 million (US$1.2 billion) per year by tackling food waste.

For the campaign to reach its huge potential, everyone has to be involved – families, supermarkets, hotel chains, schools, sports and social clubs, company CEOs, city Mayors, national and world leaders.

The campaign website, www.thinkeatsave.org, provides simple tips to consumers and retailers, will allow users to make food waste pledges, and provides a platform for those running campaigns to exchange ideas and create a truly global culture of sustainable consumption of food.

For example, the website provides the following advice, which will help consumers, retailers and the hospitality industry reduce waste – thus reducing their environmental impact and saving money.

Consumers

  • Shop Smart: Plan meals, use shopping lists, avoid impulse buys and don’t succumb to marketing tricks that lead you to buy more food than you need.
  • Buy Funny Fruit: Many fruits and vegetables are thrown out because their size, shape, or colour are deemed not “right”. Buying these perfectly good fruit, at the farmer’s market or elsewhere, utilizes food that might otherwise go to waste.
  • Understand Expiry Dates: “Best-before” dates are generally manufacturer suggestions for peak quality. Most foods can be safely consumed well after these dates. The important date is “use by” – eat food by that date or check if you can freeze it.
  • Zero Down Your Fridge: Websites such as WRAP’s www.lovefoodhatewaste.com can help consumers get creative with recipes to use up anything that might go bad soon.
  • Other actions include: freezing food; following storage guidance to keep food at its best, requesting smaller portions at restaurants; eating leftovers – whether home-cooked, from restaurants or takeaway; composting food; and donating spare food to local food banks, soup kitchens, pantries, and shelters.

Retailers and the Hospitality Industry

  • Retailers can carry out waste audits and product loss analysis for high-waste areas, work with their suppliers to reduce waste, offer discounts for near-expiration items, redesign product displays with less excess, standardize labelling and increase food donations, among other actions.
  • Restaurants, pubs and hotels can limit menu choices and introduce flexible portioning, carry out waste audits and create staff engagement programmes, among many other measures.
  • Supermarkets, hotels, restaurants, companies, cities and countries will be able to use the website to pledge to measure the food they waste and put in place targets to reduce it.




Re-Thinking Consumption: 66% of consumers agree we need to consume less to improve the environment.

29 11 2012

 

According to the newly released The Regeneration Consumer Study, two-thirds of consumers in six countries say that “as a society, we need to consume a lot less to improve the environment for future generations” and that they feel “a sense of responsibility to purchase products that are good for the environment and society”.

In a statement, Mark Lee, Executive Director at SustainAbility said, “Our economy and natural environment are facing unprecedented stresses as scarce resources are stretched to meet growing needs.  Through the Regeneration Consumer Study, we are revealing how consumer attitudes, behaviors and collaboration can help enterprising brands as they work to innovate smarter, safer, cleaner and greener solutions.”

The findings are based on an online survey of 6,224 consumers across Brazil, China, India, Germany, the United Kingdom and the United States conducted in September and October 2012.

Among other key insights in the global consumer research:

  • Nine in ten consumers believe it is extremely or very important for companies to address safe drinking water.
  • 67% are interested in sharing their ideas with companies to help them develop better products or create new solutions.
  • 75% of consumers globally agree they would purchase products that are environmentally or socially responsible if they didn’t cost more.

The study also draws five key implications for marketers to connect with these consumers who are demonstrating strong desire for responsible brands.  In summary, they are:

1.  Deliver total value.

2. Connect back story to brand story

3. Embrace sustainable brand innovation.

4. Harness consumer collaboration.

5. Unleash the power of tribes.

 

Read a copy of the research report here.

 

Congratulations to the drivers behind the research and their sponsors.  Learn about the developers and their sponsors below:

Developed by BBMGGlobeScan and SustainAbilityThe Regeneration Consumer Study is an in-depth online survey of consumer attitudes, motivations and behaviors relating to sustainable consumption among 6,224 respondents across six major international markets (Brazil, China, Germany, India, the United Kingdom and the United States) conducted in September and October 2012. Drawn from consumer research panels, global data are comparable to having a margin of error of +/- 1.3 percent. Analysis of country-level data reflects a margin of error of +/- 3.1 percent.

The study is part of the The Regeneration Roadmap, a collaborative and multi-faceted thought leadership initiative designed to engage the private sector in advancing sustainable development by improving sustainability strategy, increasing credibility and delivering results at greater speed and scale.

Presenting Sponsors of The Regeneration Roadmap are BMW Group and SC Johnson. Sponsors include Cisco, DuPont, Interface and Pfizer. The Regeneration Consumer Study is sponsored by Brown-FormanCampbell Soup CompanyItauL’OréalShell and Starbucks.

 

 

 





Cone: Americans more than twice as likely to buy from companies that promote CSR progress and results.

9 11 2012

Cone Communications has released the results of its new Corporate Social Return Trend Tracker showing that 86% of consumers are more likely to trust a company that reports its corporate social responsibility results.

In a statement, Cone Communications’ Executive Vice President Craig Bida said, “Stakeholders play more powerful roles than ever in a brand’s overall success or failure and they must be consistently engaged in a company’s CSR efforts and results from the outset.  They need to feel a benefit. This mutual return will become the new table stakes for differentiating CSR efforts.”

Some of the other interesting insights from the research include:

  • 84 percent of Americans hold companies accountable for producing and communicating the results of CSR commitments by going beyond the mission to robustly communicate progress against well-defined purpose.
  • 82 percent say they are more likely to purchase a product that clearly demonstrates the results of the company’s CSR initiatives than one that does not.
  • 84 percent recognize that for a company to make societal impact, it must also realize a business return, such as increased revenue or reduced costs

Importantly, the study also underscores continued consumer confusion regarding CSR and where to find the results and reports on CSR efforts.  And documents how CSR efforts need to be communicated and more core to any company’s brand marketing efforts.

  • 63 percent say they don’t know where to find information about a company’s CSR efforts and results
  • 55 percent don’t understand the impact they are having when buying a product from a company that says it is socially responsible.
  • 40 percent say they will not purchase a company’s products or services if CSR results are not communicated

“This shift in stakeholder expectations carries significant implications for companies engaged in CSR,” says Cone Communications’ Executive Vice President Jonathan Yohannan. “Purpose is no longer enough, and successful campaigns must demonstrate return for business, brand and society. ‘Proving purpose’ is the new mantra for effective CSR.” “Companies need to build customized output and outcome measurement components and identify projected stakeholder return at the outset of campaign development, and then track progress along the critical CSR pillars of business, brand and society,” adds Yohannan. “With the stakes so high, measurement can’t be an afterthought or add-on.”

Read the press release from Cone on the research here





Ekocycle: will.i.am and Coke inspire sustainable behaviors

1 08 2012

Coca-Cola is collaborating with musician and producer will.i.am along with other iconic brands to inspire a global movement with the launch of Ekocycle, a brand initiative dedicated to help encourage recycling behavior and sustainability among consumers through aspirational, yet attainable lifestyle products made in part from recycled material.

The Ekocycle brand initiative was developed to educate consumers about everyday recycling choices and empower their purchasing decisions as part of a social change movement, The Coca-Cola Co. says. The initiative supports recycling by helping consumers recognize that items they consider waste today can be part of a lifestyle product that they can use tomorrow. The Ekocycle brand initiative will identify products, such as assorted plastic bottles and aluminum cans, that can be repurposed into recycled content for fashionable and valuable lifestyle products. It also will encourage demand and use of recycled materials, and reinforce the importance of recycling finished products, the company says.

“With the Ekocycle brand, I’m on a mission to educate and inspire consumers around the globe to seek out more sustainable lifestyle choices that will ultimately play a part in the movement toward a world with zero waste,” will.i.am said in a statement. “By making products that contain recycled materials more attractive to both businesses and consumers, everyone can do their part to keep the cycle going to turn discarded waste into cool, new items. The Coca-Cola Co. shares this vision and together working with local communities worldwide we will showcase the greater value of recycling, as well as selecting products that feature recycled materials.”

Beats by Dr. Dre and New Era are the first brand partners to join the Ekocycle brand initiative. As a part of the partnership, these collaborative efforts will produce on-trend products made partially from recycled materials. Consumers can purchase Beats by Dr. Dre headphones this fall. New Era hats and other yet-to-be-announced Ekocycle products will be available in early 2013.

“The Ekocycle brand initiative is a platform that aligns with our vision of zero waste and our focus on sustainability,” said Bea Perez, vice president and chief sustainability officer for The Coca-Cola Co., in a statement. “Together with will.i.am, we will promote recycling in a unique way with other well-known brands to create lifestyle products that consumers worldwide desire. Today’s generation of young consumers represents an active force and the Ekocycle brand aims to be a driver in rallying their support and efforts around a global sustainability movement.”

The Coca-Cola Co. will donate its portion of licensing profits from the Ekocycle brand initiative to support additional recycling and community improvement organizations. It also will make a minimum $1 million financial commitment in the next five years. This donation is in addition to, and separate from, the charitable commitments of 1 percent of operating profits made through The Coca-Cola Foundation, the company says.

Earth911, host of the one of the largest recycling directories in the United States with more than 1.5 million ways to recycle, will provide an interactive and searchable recycling directory for consumers accessible at ekocycle.com.

“Recycling is one of the easiest sustainable actions consumers can take, but without real-time access to local options, people are often left confused and frustrated,” said Raquel Fagan, vice president of media for Earth911, in a statement. “The Ekocycle brand initiative takes a forward-thinking approach and demonstrates how companies can play a role in eliminating this confusion and empowering consumers.”

On Aug. 1, the Ekocycle brand will premiere its first 60-second TV commercial that will air in the U.S. market during the telecast of the Summer Olympic Games. A full-scale marketing, advertising and online campaign will follow.

To learn more about the Ekocycle brand initiative, visit ekocycle.com.

Original article in Beverage Industry





Puma: Bring It Back. Old Shoes RIP.

7 06 2012

Kudos once again to the folks at Puma – who IRIS named the most sustainable corporation in the world.

Puma has just launched Bring It Back – a new athletic shoe and sporting apparel recycling program.

In a statement, Franz Koch, CEO of Puma said, “On our mission to become the most desirable and sustainable sport lifestyle company in the world, we are constantly working on solutions that aim at reducing the environmental impact that PUMA as a company leaves behind on our planet. With our Bring Me Back Program, we are pleased to target, for the first time ever, the massive amounts of waste sport lifestyle products leave behind at their end-of-life phase when consumers dispose of them and they end up on landfills or in waste incineration plants.”

In a new twist, PUMA is encouraging people who return their non-longer desirable shoes and apparel to write and post their product’s obituary together with a picture of the shoes on its website. The company hopes its obituary option will finally get people excited about recycling their shoes.  May these shoes RIP.

Now that is smart sustainable branding.




Edelman Good Purpose Study: 87% of people believe business should place equal weight on business and society.

29 05 2012

In a massive global study surveying more than 8,000 adults in 16 countries, Edelman’s 2012 Good Purpose Study tracks people’s increasing belief that business bears a weight to contribute to society.

  • 76% of people believe it is ok for brands to support causes and make money at the same time (up 33% from 2008).
  • Yet only 28% of people believe business is performing well in addressing societal issues.
  • 53% of people believe Social Purpose is the most important decision criteria in buying a brand when price and quality are the same (up 26% from 2008).
  • 51% believe business should donate a portion of profits or products/services to address societal issues.
  • 80% of people believe it is critical for businesses to make the public aware of the efforts they are making to address societal issues.
  • 52% of people believe its equally important to address issues “that impact me personally and society overall”.
  • 89% of people worldwide report that they take part in activities to address social issues.

You can access a slide show summary of the survey here.





EIRIS: Puma Is The World’s Most Sustainable Corporation.

3 05 2012

In researching more than 2,000 large global corporations, EIRIS has ranked the top ten global companies when it comes to sustainable practices.  No U.S. based companies were ranked in the top ten.

Puma was ranked first based on its exceptional environmental management systems and reporting practices.  It also has comprehensive policies for equal opportunity employment, workplace health and safety, and workforce training and development.

The rest of the most highly ranked sustainable companies included:

  1. Puma (Germany)
  2. First Group (UK)
  3. National Australia Bank
  4. GlaxoSmithKline (UK)
  5. Roche (Switzerland)
  6. Novartis (Switzerland)
  7. Phillips Electronics (Netherlands)
  8. Deutsche Boerse (Germany)
  9. NovoNordisk (Denmark)
  10. The GoAhead Group (UK)

The EIRIS research also ranked corporate sustainability performance by geographic region, with companies from the United Kingdom getting the greatest number of A grades, while only 2% of U.S. companies received an A.  The vast majority (91%) of U.S. based companies received a C or lower grade.

You can read the EIRIS report here.





Gibbs & Soell: Only 21% of Americans Believe Business Is Committed To Going Green.

2 05 2012

In their 2012 Gibbs & Soell Sense & Sustainability study, the research demonstrates that public doubt that corporations are making a sincere commitment to going green continues to run high.

Despite their skepticism, the majority (71 percent) of consumers wants to know more about what companies are doing to become sustainable and green, and 75% feel the media are more likely to report on green business when the news is bad rather than good.

Read the summary report and news release announcing the results of 2012 Gibbs & Soell Sense & Sustainability Study at these links.

Key Findings:

  •  The general public and business leaders remain skeptical of corporate America’s commitment to sustainability. Only 21 percent of U.S. adults and 25 percent of executives believe that a majority of businesses (“most,” “almost all,” or “all”) are committed to “going green” – defined as “improving the health of the environment by implementing more sustainable business practices and/or offering environmentally-friendly products or services.”
  • While one-third of executives report having no green steward, up from years past, there is a trend toward dedicated teams for those who do. This year’s results show that 34 percent of executives indicate there is no one at their company who is responsible for sustainability or “going green” initiatives, up from 25 percent in 2011. More than one out of five (21 percent) corporate leaders report there is a team of individuals whose jobs are specifically and solely dedicated to sustainability, up from 17 percent in 2011 and 13 percent in 2010.
  • Most consumers and business executives also believe corporate sustainability activities are more likely to be covered by the media when the news is bad than good. The number is comparatively higher among consumers who are confident in corporate America’s commitment to “going green.” Three-quarters (75 percent) of U.S. adults and 69 percent of executives feel the media are more likely to report on “bad news” than “good news” when covering how companies are addressing efforts to “go green.” Specifically among the 21 percent of consumers who believe “most,” “almost all,” or “all” companies are committed to “going green,” 83 percent feel there is a bias for bad news in the media.

 Said Ron Loch, senior vice president and managing director, sustainability consulting, Gibbs & Soell. “The results reveal growing efforts by business communicators in relating their corporate responsibility stories, but also underscore a deficit in general understanding and trust.  It’s clear much more needs to be achieved in terms of relevant engagement with consumers and the media around corporate sustainability.”





Nielsen: The Global, Socially Conscious Consumer

28 03 2012

In a new global research report, Nielsen has identified a segment of the population they call the Global Socially Conscious Consumer.  

  • Two thirds (66%) of consumers around the world say they prefer to buy products and services from companies that have implemented programs to give back to society. 
  • They prefer to work for these companies (62%), and invest in these companies (59%). 
  • Still nearly half (46%) say they are willing to pay extra for products and services from these companies. 

In the study, respondents were asked if they prefer to buy products and services from companies that implement programs that give back to society. Anticipating a positive response bias, respondents were also asked whether they would be willing to pay extra for those services. For the purposes of this study, Nielsen defines the “socially conscious consumer” as those who say they would be willing to pay the extra.

According to Nielsen, “Cause marketing won’t work with all customer segments—some simply don’t care—but the research suggests that there is a segment of socially conscious consumers that cause marketers should pay attention to.”

New findings from a Nielsen survey of more than 28,000 online respondents from 56 countries around the world provide fresh insights to help businesses better understand the right audience for cause marketers, which programs resonate most strongly with this audience, and what marketing methods may be most effective in reaching these consumers.

Thanks to a tweet from our friend John Gerzema for pointing us to this research which he believes is in line with the findings in his book Spend Shift.

 

 





Ogilvy Earth. Mainstream Green. Bridging the Green Gap.

27 03 2012

A major new research report was issued this week from marketing agency Ogilvy Earth studying the barriers to mainstream consumers acceptance of sustainability behaviors and enlightened brands.

The focus of the study was both in the United States and in China, two of the most populated and carbon intensive countries in the world.  In the chart below, the report shows that the majority of people surveyed recognize the importance of living a sustainable lifestyle, a gap exists between knowledge of its importance and actual behavior.  The gap is 14% in China, and more than double that – 30% – in the United States.

In analysis of the research, Ogilvy Earth observed what this blogger has believed for 3+ years:

“The marketing communications industry knows how to do this. We popularize things; that’s what we do best.  But we need to embrace the simple fact that if we want green behaviors to be widespread, then we need to treat them as mass ideas with mass communications, not elite ideas with niche communications.”

In their analysis, the researchers found that “82% of Americans have good green intentions, but of those 82%, only 16% are dedicated to fulfilling those intentions, putting 66% firmly in this middle ground.”  As indicated in the chart about.

In their conclusions, the report’s authors identify 12 key ways they believe the Green Gap can be bridged.  They conclude:

1. Make it normal.

2. Make it personal.

3. Create better defaults.

4. Eliminate the sustainability tax.

5. Bribe shamelessly.

6. Punish wisely.

7. Don’t stop innovating.  Make better stuff.

8. Lose the crunch.

9.  Turn eco-friendly into male ego-friendly.

10. Make it tangible.

11. Make it easy to navigate.

12. Tap into hedonism over altruism.

For more detail and explanation on these intriguing and provocative gap bridging strategies, read the entire research report here.

Mainstream Green Report from Ogilvy Earth





Conference Board: What Board Members Should Know About Communicating CSR.

23 03 2012

In a significant white paper directed to corporate board members, The Conference Board has challenged directors to be aware of the benefits of corporate social responsibility (CSR) strategies and the challenges of communicating those actions to key stakeholders in the enterprise.

While the business benefits of CSR activities are now well-documented, the report says, “…communicating these activities are far from simple. If stakeholders perceive a lack of clarity regarding the company’s commitment to CSR, doubt the effectiveness of its CSR initiative, or miss the connection of a certain sociality activity to the core business, a backlash can occur.  CSR communication must overcome stakeholder skepticism to generate favorable CSR attributions.”

The report identified 6 key recommendations for board members to provide guidance for communicating CSR strategies:

1.  Seek CSR activities that fit into the business strategy.

2.  Emphasize CSR commitment and impact to foster consumer advocacy.

3. Seek credibility through the support of independent, external communication sources.

4.  Encourage employee and consumer word-of-mouth.

5.  Select social initiatives with high issue support.

6. Be mindful of stakeholder perception of business industry.

Here is a chart demonstrating how companies are

currently communicating CSR activities.

We are still surprised how passive and latent the CSR communications activities are.  The Conference Board recommends in their research that more consumer engagement is a critical next step to elevate CSR attribution and success.

The report says “a company’s CSR positioning can significantly amplify the effectiveness of CSR communication.  Stakeholders are likely to pay more attention to a comprehensive and coherent CSR message and believe in the authenticity of the social commitment.”

In other words, CSR should become a cornerstone asset in the brand’s equity and marketing focus.

The Conference Board Report Is Here.





50 Fastest Growing Brands Serve a ‘Higher Purpose’

8 02 2012

 

New research on the world’s 50 fastest growing brands found a cause-and-effect relationship between a brand’s ability to serve a higher purpose and its financial performance.

Brand consultants Millward Brown and former Proctor & Gamble marketing officer Jim Stengel developed the list of 50 brands, which they say built the deepest relationships with customers while achieving the greatest financial growth from 2001-2011. Furthermore, investment in these companies – the Stengel 50 – over the past decade would have been 400% more profitable than an investment in the S&P 500.

The list includes numerous brands with strong reputations for sustainability, such as Method, Seventh Generation, Stonyfield Farm and Chipotle.

The study forms the backbone of Stengel’s book GROW: How Ideals Power Growth and Profit at the World’s Greatest Companies (Crown Business; December 27, 2011).

“We wanted to uncover which brands grew the most over the past decade, both in terms of customer bonding and shareholder value,” said Millward Brown Optimor VP Benoit Garbe, who led the study. “Once we identified these brands, our burning question was what, if any, were the common principles that sparked and sustained their growth.”

To arrive at the Stengel 50, Millward Brown Optimor valued thousands of brands across 30+ countries. The list included both B2B and B2C businesses in 28 categories ranging in size from $100 million in revenues to well over $100 billion:

Ideals – The Ultimate Growth Driver

A research team – comprising Millward Brown Optimor brand strategists, Jim Stengel, Professor Sanjay Sood and MBA students at UCLA Anderson Graduate School of Management – uncovered that the most successful brands were built on an ideal of improving lives in some way, irrespective of size and category.

“We define ideal as the higher-order benefit a brand or a business gives to the world,” said Stengel. “Some companies are very explicit about their ideals, like Zappos – their ideal of delivering happiness is on their boxes, all over their offices, even on t-shirts employees wear. Other brands, like Louis Vuitton, are more implicit about it. But all their actions – throughout their products, stores and communications – amplify their ideal to luxuriously accentuate the journey of life.”

Added Garbe, “We found that this ideal is both a source of inspiration externally among customers, as well as a compass for internal decision making. So whether it’s Red Bull which seeks to Uplift Mind and Body or Pampers which is all about Caring for Happy Healthy Development of Babies, an ideal influences all facets of the business from HR and Marketing to R&D and Finance.”

Through case studies, GROW demonstrates how brand ideals aren’t simply about altruism or corporate social responsibility but a fundamental human value that is authentic to the brand and ultimately a driver for extraordinary growth. In fact, Millward Brown Optimor’s analysis discovered that those who centered their businesses on ideals had a growth rate triple that of competitors in their categories.

How Ideals Impact the Consumer Mind

Millward Brown’s team also determined that the 50 brands touch on five fundamental human values:

  • Eliciting Joy: Activating experiences of happiness, wonder, and limitless possibility
  • Enabling Connection: Enhancing the ability of people to connect with each other and the world in meaningful ways
  • Inspiring Exploration: Helping people explore new horizons and new experiences
  • Evoking Pride: Giving people increased confidence, strength, security, and vitality
  • Impacting Society: Affecting society broadly, from challenging the status quo to redefining categories

The list of companies is as follows:

Accenture, management and enterprise consulting services

Airtel, mobile communications

Amazon.com, e-commerce

Apple, personal computing technology and mobile devices

Aquarel, bottled water

BlackBerry, mobile communications

Calvin Klein, luxury apparel and accessories

Chipotle, fast food

Coca-Cola, soft drinks

Diesel, youth- targeted fashion apparel and accessories

Discovery Communications, media

Dove, personal care

Emirates, air travel

FedEx, delivery services

Google, Internet information

Heineken, beer

Hennessy, spirits

Hermès, luxury apparel and leather goods

HP, information technology products and services

Hugo Boss, luxury apparel and accessories

IBM, information technology products and services

Innocent, food and beverages

Jack Daniel’s, spirits

Johnnie Walker, spirits

L’Occitane, personal care

Lindt, chocolate

Louis Vuitton, luxury apparel and leather goods

MasterCard, electronic payments

Mercedes-Benz, automobiles

Method, household cleaners and personal care

Moët & Chandon, champagne

Natura, personal care

Pampers, baby care

Petrobras, energy

Rakuten Ichiba, e-commerce

Red Bull, energy drinks

Royal Canin, pet food

Samsung, electronics

Sedmoy Kontinent (“Seventh Continent”), retail grocery

Sensodyne, oral care

Seventh Generation, household cleaners and personal care

Snow, beer

Starbucks, coffee and fast food retailer

Stonyfield Farm, organic dairy products

Tsingtao, beer

Vente-Privee.com, e-commerce

Visa, electronic payments

Wegmans, retail grocery

Zappos, e-commerce

Zara, affordable apparel

Original post at Sustainable Brands





The Enlightened Trend: Shared Value vs. Shareholder Value.

1 12 2011

93% of CEOs believe sustainability issues will be key to business success in the future.  The concept of creating shared value vs. shareholder value is beginning to penetrate the consciousness of many corporate boardrooms. This new report from FSG – the nonprofit consulting firm – gives best in class examples of social engagement strategies where corporate and social issues are aligned.

According to FSG, “the most advanced companies have begun to look at social engagement through a different lens entirely.  Rather than seeing business and society in opposition, they recognize the enormous potential of business to contribute to social progress.  At the same time, they understand that firms depend on healthy and well-functioning societies to thrive.  Such companies seek to create “shared value” – incorporating social issues into their core business strategies to benefit both society and their own long-term competitiveness.”

Says Harvard Business School professor Michael E. Porter, “What’s happening now is really a redefinition of the boundaries of capitalism.  Creating shared value is the next stage of evolution in the sophistication of the capitalist model.”

The report was sponsored by HP and features examples from global business leaders committed to creating shared value, including Alcoa, GE, Cisco, and Nestle among others.

You can download a pdf of the report here.

(Figure from FSG)





Don’t Buy This Jacket: Patagonia’s Common Threads Initiative

29 11 2011

In a daring and unprecedented move, the long respected Patagonia brand decries consumerism run amok and pledges to improve its own sustainability performance and asks for the same commitment from its customers.  

For a brand inspired by and dependent on the environment, Patagonia is asking customers to pledge to reduce the products they buy and only buy what they need.  It also is asking consumers to repair what’s broken, pass the product onto someone else, and keep it out of landfills or incinerators.

In exchange for the pledge, Patagonia’s pledge is to make products that last a long time, help repair gear that needs it, find home for products you no longer need and will take back Patagonia products that are worn out.

In advertising placed on Black Friday in The New York Times and on-line on Cyber Monday, Patagonia calls itself on the carpet for the environmental impact of the products they manufacture.

“The environmental cost of everything we make is astonishing,” the ad reads. “Consider the R2 Jacket shown, one of our best sellers. To make it required 135 liters of water, enough to meet the daily needs (three glasses a day) of 45 people. Its journey from its origin as 60% recycled polyester to our Reno warehouse generated nearly 20 pounds of carbon dioxide, 24 times the weight of the finished product. This jacket left behind, on its way to Reno, two-thirds its weight in waste.

“And this is a 60% recycled polyester jacket, knit and sewn to a high standard; it is exceptionally durable, so you won’t have to replace it as often. And when it comes to the end of its useful life we’ll take it back to recycle into a product of equal value. But, as is true of all the things we can make and you can buy, this jacket comes with an environmental cost higher than its price.”

The ad concludes: “There is much to be done and plenty for us all to do. Don’t buy what you don’t need. Think twice before you buy anything. Go to patagonia.com/CommonThreads, take the Common Threads Initiative pledge and join us in the fifth R, to reimagine a world where we take only what nature can replace.”

Cheers to Patagonia for honest and authentic communication and for its call for balance and collaboration in a world of too much self-interest and scary levels of divisiveness.

This is world class sustainable branding.

Read more about the campaign on Patagonia’s blog





Green is Universal Reports Green Consumersim and Brand Loyalty Are On the Rise.

27 04 2011

A new report from Green Is Universal reports that 78% of consumers believing more than ever that buying green is a way to shop with their values and ethics (up 9 points vs. two years ago).  The poll also reveals that an overwhelming majority of consumers feel they have a personal responsibility to take care of the earth (93%), and believe that if we don’t do so, there will be negative consequences for future generations (91%).  Nine out of 10 consumers say companies have a social responsibility to protect the environment.

Sixty-eight percent (68%) of consumers say it’s worth paying more for a green product or service if it is a brand they trust (an increase of 8 points vs. 2 years ago).”These findings underscore that consumers are increasingly shopping with their values, particularly when it comes to the environment,” said Beth Colleton, Vice President, Green is Universal. “This is an enormous opportunity for marketers to communicate their brand’s commitment to green, as a way to build both loyalty and returns for their business.”

Not only do consumers hold themselves accountable when it comes to protecting the earth, but they believe companies should be held to the same standard. and three-quarters (77%) say they have a more favorable impression of companies that promote environmental causes. Putting their money where their mouth is, findings show substantially more consumers who say they have boycotted a company/product in the past year, because it had policies and practices that were not environmentally responsible (27%) (up 8 points from 2009).

Additional highlights from a related but separate Green is Universal poll on re-use, “From Trash To Treasure,” include the following:

  • 62% say they are making a conscious effort to purchase products made by environmentally responsible companies
  • 68% say they are paying more attention to whether products are made from recycled materials
  • 84% appreciate companies who make it easier for them to recycle
  • 78% appreciate companies who make using recycled materials a priority because it provides them with an easy way to help the environment
  • 57% say they are likely to encourage others to buy products that are made from recycled materials
Reposted from Sustainable Life Media.




Sensible advice from VW Canada.

19 04 2011





Props To Starbucks: Free Coffee In Your Travel Mug On Earth Day.

18 04 2011

To celebrate Earth Day, Starbucks is offering free coffee to everyone who chooses to get their coffee in a travel mug vs. the paper cup.  A great example of smart sustainable branding.





Brilliant Work: The Sustainability & Branding Survey

7 04 2011

“If you are striving to be more sustainable, your actions need to demonstrate that in everything you do,

which means new ways of thinking about branding.”

Kudos to the Sustainable Branding Collaborative for their new research report surveying innovators and early adopters in the sustainable business environment.  Some of the key interesting findings that stand out of the work include:

  • 63% say brand and 59% say sustainability is of primary importance to their organizations success.
  • 73% say sustainability investments yield positive returns.
  • 47% advise firms that are branding more sustainable products to “walk their talk”.

You can download a summary of their survey here.

The Sustainability & Branding Survey






New Research: 71% of American Workers Value Employers’ Sustainability Commitments

7 04 2011

We’ve long known the employee satisfaction is a key driver of customer satisfaction.  Now a company’s efforts to improve sustainability is proving to be another driver of employee engagement, pride, productivity and retention.


A public opinion survey conducted by Harris Interactive National Quorum on behalf of Interface, Inc. reveals that 63% of full-time workers believe a company’s impact on the environment is vital when evaluating a new workplace, and 61% say the same about the company’s profit margin. Meanwhile, an even greater majority—71%—value a commitment to sustainability, defined in this study as “environmental protection,” as an important or very important criteria.

“There is broad recognition that companies that focus on sustainability, or protecting and preserving the environment, are appealing to American workers,” said Dan Hendrix, president and CEO of Interface. “Profits are obviously the lifeblood of any company, but what we see here is that employees want their organizations to have more purpose. These results speak to a lasting trend about the kind of long-term-focused organizations that employees want to belong to.”

This telephone study was conducted between February 23 and 27, 2011 among 504 U.S. adults employed full-time to learn and share opinion for ideals about workplace preferences. The study also revealed gender disparities in how employees evaluate potential employers. For instance, 78% of female employees felt a company’s impact on the environment was particularly important, while 52% of male workers believed the same. These findings could point to an opportunity for organizations focused on reducing their impacts on the environment to attract and retain women in leadership positions.

Other results showed the extent to which employees feel engaged with their current companies. National findings carried an overall optimistic tone despite the still-challenging economic climate, with:

  • 81% of full-time workers saying they are familiar with their company’s mission statement.
  • 84% of full-time workers agreeing that the company they work for shares their views on what is important in life.
  • 64% of full-time employees claiming involvement in company initiatives outside the scope of their everyday responsibilities.






Edelman Report: 90% of UK Consumers believe brands should support society as well as business.

27 03 2011

Recent research from Edelman Worldwide shows that two thirds of UK consumers think brands spend too much on advertising and should invest more in social causes and promoting them through their advertising.

Nine out of 10 consumers believe that brands need to place at least the same weight on society’s interests as those of business and do more than just give money to good causes.

The report claims that more than 50% of consumers say “purpose” is more important than design, innovation or brand loyalty as a purchase trigger, when quality and price are the same.

Nearly two-thirds of UK consumers say that they will buy and recommend products and services from companies that support a good cause.

Carol Cone, managing director of brand & corporate citizenship at Edelman, says: “Cause related-marketing, as we know it, is dead. It is no longer enough to slap a ribbon on a product. Consumers seek deeper involvement in social issues and expect brands and companies to provide various means of engagement. We call this the rise of the ’citizen consumer’.”

Key findings from the report

  • 60% believe brands should promote good causes through their advertising to help raise public awareness.
  • 58% believe brands spend too much advertising or marketing and they should put more money into some good cause or social purpose.
  • 54% believe brands should share a portion of their advertising space with organisations that support good causes.
  • 57% feel that it is no longer enough for companies to simply give money away to good causes; they need to integrate them into their day-to-day business.
  • 56% have more trust in a brand that is ethically and socially responsible.




Cause Marketing: Let the boys play too!

19 11 2010

The first male-specific survey in the six-year history of the PRWeek/Barkley Cause Survey has produced surprising results regarding Men’s relationship with Brands that have cause marketing programs – they are influenced by cause marketing at nearly the same rate as women.

The survey polled 4,252 marketing pros and 2,365 consumers and found that:

  • 88% of men say it’s important for a brand to support a cause
  • 61% have purchased a brand because it supported a cause
  • 67% would try a brand because it supported a cause,
  • 55% would pay more for a brand that supported a cause.

While the data indicates that Men direct their dollars to brands associated with causes in high numbers, 68% of corporate marketing executives surveyed said that they had no plans to specifically target men with their efforts.

Although according to the results, there are brands that could benefit from this kind of communication. When asked what companies are not doing as much as they should to associate with causes, the three top answers were BP, Apple and Goldman Sachs.

For the full survey, visit www.barkleyus.com.