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Football + Waste Awareness = Big Win
The U.S. Environmental Protection Agency (EPA) challenges colleges and universities to put new meaning behind defense during football season with its Game Day Challenge. Dozens of schools are participating in the WasteWise program initiative – last year there were 91 – tapping into hundreds of thousands of students nationwide and increasing waste impact awareness. The Game Day Challenge goals are more meaningful than getting fans to use vegetable-based body paints:
- Lower the waste generated at college football games;
- Increase participation by students, faculty, staff, and the community in waste reduction programs; and
- Heighten awareness of waste reduction programs.
Schools can score awards in five categories, each of which is measured using specific formulas. Waste Generation measures lowest poundage per capita; Diversion Rate ranks the biggest recyclable and compostable rate; Greenhouse Gas Reduction – well, that’s pretty self-explanatory; Recycling is, you guessed it, the largest per capita recycling of paper, beverage containers, and corrugated cardboard; and Organics Reduction rates the donated, reused, and composted poundage per capita.
The EPA offers all sorts or resources for stadium-sized recycling initiatives and will announce the winners in November. In the meantime, we’re cheering on the schools that participate in this massive education and impact effort, those that give a new meaning to a game day’s turnover and conversion.
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It’s Fair Trade Month!
Sure, we have many months, weeks, and even days dedicated to all sorts of things (don’t tell me you missed Sept. 19’s Talk Like a Pirate Day, mateys!), but Fair Trade is something that we all should know a little about. Perhaps you’ve seen the Fair Trade certified logo on various products – say, coffee – and thought, “Hm, that’s nice. They must be doing something good.” But do you know what, exactly, that something is? Allow us to share an overview, courtesy of Fair Trade USA.
Fair price. This one seems obvious, but the fact is, not all farmers receive fair pay for their goods. A minimum price is guaranteed, with an additional payment available for certified organic goods.
Fair labor conditions. It’s been less than a hundred years since the United States began regulating child labor in accordance to the Fair Labor Standards Act (minimum ages of employment and hours of work for children, 1938), and it’s widely known that other countries are still far from fair labor practices. Under Fair Trade, workers have safe working conditions and receive living wages — and forced child labor is strictly prohibited.
Direct trade. Think about it – eliminate the middle man and everybody wins. Fair Trade helps farmers get the edge they need to be competitive players in the marketplace.
Democratic and transparent organizations. Fair Trade workers collectively decide how to invest revenues, using a democratic process.
Community development. Fair Trade investments are made in business and socially oriented projects, ensuring community improvement by the very workers who are part of Fair Trade.
Environmental sustainability. Fair Trade farming is absolutely sustainable, meaning no harmful chemicals and no GMOs.
Make a little more sense? Fair Trade is more than a pretty packaging icon on the chocolate and teas you buy. It’s a way to sustain people all over the world – to allow them to do their jobs fairly, while being treated fairly, and help their communities thrive in a healthy fashion. So take some time to consider Fair Trade certified products when you’re planning your fall shopping lists – and think about the impact behind your purchases.
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Every Little Bit Counts
When a big name brand does good, but you know there’s still plenty of room for improvement, do you laud the brand for making a move in the right direction, or do you hone in on what’s still wrong? Simon Mainwaring, branding and creative consultant and author, weighs out this very question in his latest blog post. And we here at Plosion Branding agree with his conclusion: big change doesn’t happen overnight, so applauding brands’ righteous efforts and using them as a modeling tool for other companies is the way to go.
It is fruitless to counterattack the good brands do, lessening the impact of their CSR efforts. But, high-fiving the good doesn’t mean that flawed behaviors get a universal pardon, either. As Simon says, the real power “lies in the shift in corporate thinking” enabled by doing good, that the battle for greater CSR integration as a standard brand practice won’t be won by “demonizing brands.” Companies are responsible for their production methods and treatment of employees, but encouraging progress seems like common sense to us. As the saying goes, the best way to eat an elephant is one bite at a time.*
*Note: Plosion Branding does not endorse the eating of elephants, only the meaning behind the metaphor: the seemingly impossible can be accomplished by taking it one step at a time.
Posted in Brand, Consumers, Employees, Sustainability
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A Front Page CSR Flop
Dr. Aneel Karnani, an associate professor of strategy at the University of Michigan, made an argument against CSR on the front page of yesterday’s Wall Street Journal. While Karnani is right in that the primary responsibility of business is profit, his opinion formed against CSR has a number of flaws – the largest being the omission of the consumer.
Karnani argues that, for instance, fast food restaurants serve salads because it is more profitable to do so and auto makers increase gas mileage because it is profitable to do so, that corporations, essentially, should care less about any social benefit involved in changing the core of business practice. What Karnani seems to forget is that the consumer is society. Healthier foods are more profitable because consumers want to buy them. Cars have better gas mileage because that’s what consumers want. Businesses act in response to social demand in order to gain profit. And the market demands corporate responsibility. Just ask British Petroleum.
Karnani also decries CSR while calling for long-term, sustainable growth. In order to survive in the long-term, companies must learn to differentiate themselves in a changing, savvy marketplace. Consumers are not seeking new fat cats; they are seeking businesses that understand the current cultural climate and show that they are connected to the society from which they profit.
Karnani snips the connection between sustainable growth and CSR. He argues that if companies pay their workers more, they must charge customers less, sacrificing profits. Yet research that shows consumers are willing to pay more for CSR-oriented companies’ products. In fact, 70% are willing to pay more – as detailed in “Keep Consumers at the Heart of your CSR Strategy” – causing Karnani’s scenario to seem a bit of a stretch.
Should companies be responsible for correcting all of society’s ills? Of course not. Karnani is right in his “lose the forest for the trees” perspective. But there are numerous ways to strategize CSR so that marketplace share and profits increase, all while cementing long-term sustainable growth and a loyal consumer base. It takes a bit of intelligence, creativity, awareness of the “new normal,” and, of course, a keen eye on what consumers want – which isn’t another story on what won’t work.
Posted in Consumers, Environment, Sustainability, TBL
Tagged Charity, Community, Consumer, Corporate, CSR, New Business, Profit, Responsibility, Social, Sustainability
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Keep Consumers at the Heart of your CSR Strategy
It seems obvious, doesn’t it? Businesses exist to produce products and profits, one directly linked to the other by consumers. Without the paying public, products are stockpiled and profits are, well, a pipe dream. So why would a business draft an annual charitable giving check, host a team-building event at a local nonprofit, or install a bicycle rack at the office — out of obligation? Because it’s the right thing to do? Hardly.
More businesses are realizing that these things need to be done, but few are thinking about the specifics. Strategy in CSR initiatives is key to creating an embracive experience for all the stakeholders in your company – consumers included. And not only are consumers watching, but they are aligning their purchasing loyalty with the businesses that mean something to them. CSR is a way to create that meaningful connection. Take a look at the findings from firms Landor Associates, Penn Schoen Berland, and Burson-Marsteller:
- 75% of consumers believe social responsibility is important;
- 55% would choose a product that supports a particular cause over similar products that don’t;
- 70% are willing to pay a premium for products from socially responsible companies;
- 28% are willing to pay at least $10 more.
So what is your company’s brand differentiator? Do you know how to make the pieces fit and then show the world what you do?
Your marketplace is saturated with competitors and ever more thoughtful consumers. Your company has to prove why your brand is deserving of those valued, hard-earned dollars. CSR, when strategically implemented, is a way to signify a brand in a concrete fashion that earns consumer spending and loyalty.
It’s not just about philanthropy and warm fuzzies – it’s a tangible process that deserves intelligence and attention. There is an interconnected system of positive benefit at work, and each part of the whole deserves consideration – don’t you think?
Posted in Consumers, Environment, PR, TBL, Uncategorized
Tagged Community, Consumer, Corporate, CSR, Green, New Business, Profit, Responsibility, Social, Sustainability, Triple Bottom Line
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Treating Employees Right Helps the Bottom Line
This past spring, I had the opportunity to attend a company event for Southwest Airlines. Approximately 2000 employees were at the event, held at SeaWorld.
This was the annual meeting for employees to hear how the company did the prior year and learn what to expect in the coming year. In 2009, the airline industry was under extraordinary pressure with the steep rise in fuel prices and the sudden downturn in the economy in Q4. You can imagine the lack of job security in the industry and the downward push on salaries. Not a good time to be an airline worker.
However, when Southwest CEO Gary Kelly stepped onto the stage, he was met by a 3-minute standing ovation. The mood in the audience was positive and energized. How did Southwest achieve this high level of employee morale?
Southwest has never laid off workers in its 37-year history. Employees all participate in profit sharing. The company philosophy, as articulated by Mr. Kelly, is “treat people the way you would like to be treated.” To that end, Southwest was the only airline to resist charging bag fees when virtually every other airline did so. Their customer service ratings are top of the industry.
Southwest Airlines Celebrates Its Return to San Francisco
How does this warm and fuzzy attitude translate to the bottom line? Southwest was the only major carrier in 2009 to post a profit. In fact, they posted a healthy profit of $99 million. And this year’s Q2 profits are up 21%. In an industry that commonly treats employees as expendable, Southwest Airlines has a roster of honors and awards, including a #4 ranking among airlines and a #12 ranking among all industries on FORTUNE Magazine’s annual list of the World’s Most Admired Companies released in April 2010. They topped the list of the 50 best U.S. places to work by Glassdoor.com. In November 2009, Southwest Airlines was listed as one of the Top 50 Companies Recognized as Leaders in Corporate Social Responsibility by the Boston College Center for Corporate Citizenship and Reputation Institute.
This is a great example of how treating employees right translates right to the bottom line.
Posted in Consumers, Employees, TBL, Work Enviornment
Tagged Corporate, CSR, Employees, Profit, Responsibility, Social, Workers Rights
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The Triple Bottom Line: People, Planet, Profit
All businesses know about the traditional bottom line: profit. In today’s increasingly transparent and interconnected marketplace, more businesses are embracing a triple bottom line, one where social and ecological capital are just as important as financial gain. No longer are organizations successful solely by operating in the black; organizations must expand their definition of success. If they wish to thrive in a world where the BP name invokes shudders in the wake of the Gulf of Mexico Oil Spill, where investors want a company cast in a transparent light instead of mystery, and where activists have extended reach through blogs and social media sites, YouTube and Flickr accounts, and dozens of other electronically linked outlets — companies must learn to link people and our planet with profit.
The standard for business success in terms of the Triple Bottom Line (TBL or 3BL) is literally a global one – the United Nations ratified the TBL accounting measures in 2007, as did ICLEI-Local Governments for Sustainability, a 20-year-old international organization consisting of over 1200 cities, towns, countries, and their associations worldwide. Major companies in the U.S. are rapidly adopting TBL reporting as well, including Intel, Seventh Generation, Nike, Aveda, L’Oréal, Ben & Jerry’s, Patagonia, Canon, and a host of others.
While the TBL standard shakes up the days of old, when it really was all about the Benjamins, it’s not necessarily a new world order, where cash becomes the sacrificial lamb. The link between social and financial success turns out to be an interesting one: companies that contribute to charity and cultivate a philanthropic environment are more profitable. A 2007 study by Dover Management found that companies with sound charitable performance outperformed Standard & Poor’s 500 index by 3.5 percentage points over five years, data that backs up the results of a similar study conducted by university researchers in 2006.
It’s about charity, it’s about sustainability, and it’s about ROI. Consider it the triple threat of the business stage, and know that companies operating under the TBL will be the ones to get the part.
Posted in Consumers, Employees, Environment, PR, Sustainability, TBL
Tagged Charity, Corporate, CSR, Profit, Responsibility, Social, Sustainability, Triple Bottom Line
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“Just Pay It” – The Impact of Neglecting Responsibility in CSR
Major shoe and apparel company Nike recently learned the importance responsibility plays in its role as a successful brand, after Workers Rights Consortium (WRC) pressured the billion-dollar company through university sportswear boycotts. The WRC, along with thousands of university students, called on Nike to claim responsibility for the layoffs of 1,800 factory workers in Honduras after the company closed two of its factories in 2009. While Nike initially shrugged responsibility onto the second-party factory employers, Hugger and Vision Tex, University of Wisconsin Madison’s termination of its licensing agreement with Nike, along with Cornell’s threat to do the same, brought about an unprecedented realization.
For the first time in the global market, a brand has taken responsibility for its contractors’ obligations to its employees. While this is a logical extension of branding CSR, it has been historically hypocritical in the apparel market’s implementation. In a New York Times article covering the shift in Nike’s brand behavior, University of Wisconsin professor and licensing committee member Jane Collins said, “If apparel companies can’t take responsibility for the factories where they have contracts, they can’t claim to be adhering to a code of conduct.”
Nike’s move shows its sensitivity to its brand, and it also shows the importance of public and consumer perception. It pays to implement business moves with thought and perceptiveness – and social responsibility.
Posted in Employees, PR, Sustainability
Tagged Consumer, Corporate, CSR, Honduras, Nike, Responsibility, Social, Workers Rights
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Successful CSR in the Workplace: Timberland
Timberland, a global retailer of footwear, apparel, and accessories, essentially operates on CSR. The company’s mission makes that clear: to equip people to make a difference in their world by creating outstanding products and by trying to make a difference in the communities where [they] live and work. A quick glance at Timberland’s homepage proves they’re more than retail – the company links to Social & Environmental Activism as well as their Earthkeepers Blog, an online community Timberland established to encourage participation and feedback from thought leaders, CSR practitioners, NGOs, investors, suppliers, consumers, and employees.
Timberland embraces their CSR initiatives, and their success is impressive. They’ve planted over 1 million trees in 27 countries, with the help of over 8,000 volunteers. They offer employees 40 hours of paid time off each year to work on service projects in their communities through the Path of Service program.
Timberland volunteers install fencing and build an animal shelter at Massachusetts' Minute Man National Historic Park.
“At the center of our challenge as an enterprise is a fundamental obligation to innovate and operate as a community of leaders—aligned around a set of values: humanity, humility, integrity and excellence. More than mere words, these beliefs stand at the foundation of all we pursue—in relationships with stakeholders, as stewards of the company’s mission, and as engaged citizens committed to sharing strength in our global community.”
–Jeff Swartz, President & CEO, The Timberland Company
The difference Timberland makes through its efforts to matter in the world certainly hones in right at the company’s core. Over the last few years, Timberland has been in the 100 Best Companies by Working Mother, the 100 Best Corporate Citizens, Fortune’s 100 Best Companies to Work For, Best Workplace by Handelsblatt’s Great Place to Work, and Outside’s Best Places to Work.
Posted in Employees, Sustainability, TBL, Volunteerism, Work Enviornment
Tagged Community, CSR, Employees, Green, Responsibility, Social, Volunteer
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