From Laundry List to Sustainability Strategy


A recent research report by The Hartman Group entitled Sustainability: the Rise of Consumer Responsibility by Alice Worthington, Spring 2009, is a must read for companies in the B2C space. It confirmed what we here at EarthSayers.tv have found: Consumers interpret the word, sustainability, as green and link it to only one zone, environmental. And it’s not just consumers.

We found even business people with a “for benefit” mission and green products are likely to express the same narrow definition.

As a way to overcome this misunderstanding and as part of our intent to increase sustainability awareness with the project, EarthSayers.tv, we created a taxonomy of sustainability and called it a content map.

The taxonomy defines four elements of sustainability – overview/systemic change, planet, people, and prosperity. There are over twenty-three categories falling within these four categories with all key words, over 300, rolling up to category to element. This is very useful tool for companies to use in creating sustainability as a business strategy and to put the wood behind one arrow. For example, we took a laundry list of socially responsible projects we found on the Website of a major consulting firm and re-organized the pieces and parts into a sustainability strategy.

Laundry List of Causes or Programs

Biotechnology
Climate Change
Credit Crisis
Energy
Geopolitics
Globalization
Health Care
Innovation
Internet

Organization

This particular company has not developed a though leadership platform around sustainability, a key to the element, systemic change (one of their principals speaks on broad economic issues) and has a hit and miss strategy for the planet and people. They have a presence in the prosperity category, as do many venture capital companies do, but it suggests they are covering bets, rather than working towards sustainable development. Laundry list as strategy:

Moving from laundry lists to coherent sustainability strategy is the first step in being able to convince consumers, both B2C and B2B that the company is a responsible, with core values around sustainability, and activities which are consistent with these values. As noted in the Hartman study, “sustainability is a marker of quality, and can be a tie breaker in a purchase decision.” For B2B companies, even high powered consulting and investment ones, it certainly will indicate to prospects and investors a higher level of transparency, responsibility, and accountability.

Branding Unsustainable Products and Services


Sometimes I write something that I publish in my other blog, Digital Savvy, and this blog. Increasingly I find myself addressing marketing folks about becoming advocates and in this article, going so far as to drop the language of brand and branding.

This all started as a post I made to a blog I was unfamiliar with, The Idea, by Brian Creath. I had clicked through to Mr. Creath’s blog via a reference to his being upset with Jonathan Baskin’s book,
Branding Only Works on Cattle
.

So here is a call to arms. It’s an ode to advocacy, to Earth, and EarthDay.

Before Brand

I guess it may be difficult for some to imagine a time before the word, branding, was used in marketing. I’m not talking the middle ages, but a scant twenty years or so when people bought products and trusted companies who built reputations, good ones. Back then there was talk of name awareness when agencies had people at the helm who put their names on their work and represented their clients: before JWT and WPP. Name awareness was measured and top of mind was a value reflected in sales. Emotions were NOT called in to play as a substitute for product features and benefits, many of which were, and still are, unsustainable.

Sir Martin Sorrell, CEO of WPP noted in a letter in their Social Responsibility report: “So if the marketing industry has been unwittingly complicit in causing the problem (build-up of greenhouse gases in the atmosphere), it’s now confronted with an historic opportunity: to shape and encourage consumer demand for sustainable products and lifestyles; to restore the true value of durability; to reject the superfluous in products and packaging; to make much of what has passed for fashion deeply unfashionable…”

Branding Unsustainable Products
What I think is that brand and branding was used in the service of so many unsustainable products and services with too many disreputable companies across a wide range of unsustainable industries that it may be viewed as a cover-up as a noun and covering up as a verb.

The language of brands is rife with what the late George Carlin called a soft language and said, “I don’t like words that hide the truth. I don’t like words that conceal reality…” My sense is that a good portion of consumers, especially younger ones, don’t like them either.

Authentic Brands
Maybe we have just come around a corner, with three of the top four advertisers in Internet advertising suffering mightily – retail, automotive and financial services – where we can start to address authenticity, reputation and, as a tip of the hat to Mr. Carlin, reality for the emerging and sustainable business landscape. It is not just coincidental that what we hear today is all about the lack of trust and confidence among our citizens towards a significant number of our business leaders and their companies as it is proof positive that these these two values are crucial to sales.

Jonathan Baskin
I recently heard Mr. Baskin speak at a meeting of the Luxury Marketing Council here in San Francisco. I wrote afterwards and repeat now, this is a great book to read and send to your clients who need to challenge themselves to thinking about a world without branding. Three years ago I recommended not using the word, brand, for a whole week, substituting instead “reputation” to shift perceptions. Give it a try.

I think Mr. Baskin is being provocative and challenging the status quo. And, for my money, it’s about time. Glen Urban, an MIT professor, wrote a book four years ago entitled, “Don’t Just Relate -Advocate,” and that’s what Mr. Baskin is doing. And I admire him for it.

Steering the Conversation Forward
He’s getting attention and challenging us to meet the historic opportunity referenced by Sir Sorrell and steer the conversation towards how we are going to do that and not use the tainted language of branding. Let’s jump on it. Our scientists are telling us we are running out of time.

Language of Sustainability


We recently changed the name of our company from Red Direct to Red Digital Marketing. It fits much better with what we do and our commitment to sustainability as a business strategy.

Comparing our old self to our new self by the language we use:

Six Principles for a Sustainable Australia


My friend, Jerry Holtaway brought to my attention an interesting fellow, Barney Foran, an economist presently a visiting fellow with the Centre for Research and Environmental Studies (CRES) at the Australian National University in Canberra. Professor Foran calls out six principles essential to building a sustainable Australia. They are:

Stabilising human population number and age structure;
reducing the use of the grand global elements;
basing economy and society on flows rather than stocks;
shortening the supply chain;
engineering society for durability and resilience;
and developing a new economics where taxes tell the truth.

Jerry also pointed out a very interesting project, the Australian Conservation Foundation’s Interactive Consumption Atlas, “a really excellent example of making the ecologically invisible visible in a compelling way.”

Invitation to Attend March 26th Synergos Meeting


I will be a panelist at the Thursday, March 26th meeting of Synergos in Palo Alto, 6PM to 8PM. The topic is “Economics of Sustainability.” RSVP now. This is a great way to meet new people and engage in stimulating conversation. The March meeting is an annual Earth Day Eve event.
The Hayden Group sponsors the Synergos Series. The Synergos Series offers interesting guests, interesting speakers, business networking and brainstorming- all in an intimate setting that begins with wine tasting.

WHERE: PALO ALTO:Please RSVP to Victoria Hayden at victoria@thehaydengroup.com so we can ensure adequate seating. WHEN: The last Thursday of every month. Drop by any time between 6 – 8PM.

Earth Day values stamp designed by Rose Cassano of EarthSayers.tv. Use with permission. Thank you.

Consumer Expectations and Your Reputation

A Practical Guide to developing a Successful Corporate Sustainability Program is an excellent guide published by the company, Waste Management. If you are struggling to convince your management on the importance and relevance of a sustainability initiative for your company, this guide lays out the business benefits e.g. improved worker productivity, reduction in operating costs, and energy savings along with practical suggestions for implementation.

The guide also calls out what consumers expect from business. This should catch the eye of your CMO as well as the section that calls out reputation-building benefits.

Consumer Expectations
– Reduce pollution throughout of?ce and manufacturing operations (71%)
– Design products/packaging with more environmentally-friendly contents and minimal packaging (69%)
– Distribute and transport goods more ef?ciently (69%)
– Communicate environmental efforts to employees and consumers, so they can support those efforts (69%)
– Donate money to environmental causes (59%)
– Lobby for more environmentally friendly policies (57%)

Reputation-building Benefits

-Brand enhancement and protection
-Marketing advantage—price premium
-Appreciation in shareholder value
-Employee recruiting, retention and satisfaction improvements
-Customer loyalty
-and “Most Favorable” regulatory reporting requirements

And no faking it!

However, you should beware of using your corporate sustainability report strictly as a public relations tool. There are many advocacy groups that monitor these reports and check the validity of claims made in them.

While you may download a copy of “Practical Guide” of this report here and I suggest you visit the Waste Management site as well.

The Social Intrapreneur

The Social Intrapreneur is an excellent publication from the consultants at sustainability.com and the Skoll Foundation. Social Intrapreneurs are corporate changemakers who work inside companies. They innovate and deliver market solutions to some of the world’s most pressing social and environmental challenges.

You don’t have to move outside an organization to be a change agent and an advocate for sustainability.

More Talk Than Walk


From the Think Ecological report, “IT Sustainability Imperatives in Internet and eCommerce Business,” Jan 2009, some key findings:

Yet they’re mostly talk and little walk: conducting senior level discussion (37 percent),
publishing CSR guidelines (32 percent), and doing nothing (31 percent) topped the
list of what executives are doing to push the ecological mantra.

Top environmental sustainability challenges included low of awareness of business
bene?ts (53 percent), fears of compromised productivity (52 percent) and perceived
costs to build in ef?ciencies (50 percent).

There is no consistent owner, if any, of a corporate sustainability agenda in the
organization. More than 43 percent don’t have one or don’t know if they do.

Nearly 60 percent want more material and events to help them improve
Eco-Logical thinking.”

There is opportunity here for building awareness, education, and consulting with executives on the benefits of sustainability as a business strategy. And the CMO should be the one leading the conversation and resulting action plans.

“The bottom line at Pitney Bowes reflects tangible benefits…Sustainability furnishes a starting point for connecting with existing and potential customers.”

-Michael Monahan, CFO, Pitney Bowes.

Download a copy of the report “IT Sustainability.”

Cradle to Cradle Certification

The publication, Greener by Design, reported today that “McDonough Braungart Design Chemistry (MBDC) is taking its Cradle to Cradle analysis further down the product supply chain with its new Cradle to Cradle Approved Ingredient certification.

The new certification looks at the chemical components of ingredients and materials that will be in finished products, assessing their effects on human and environmental health, as well as their ability to be recycled or composted.”

Just as all Cradle to Cradle certified products are listed publicly, MBDC plans to provide a public database of certified ingredients.

Sustainability is Not Optional

DM News, the authority for Direct Marketers (January 19th 2009) wondered, “what the new presidency will mean for green marketing.” Well, the good news is that Terry Wellman who produces the show, Business Green Media Conference, notes a shift in the general attitude towards sustainability. “The atmosphere has changed tremendously with the change in administration, and it is now very positive about sustainability.” Good to hear.

Yet I can’t help wondering how it is that sustainability remains in the optional category. As a friend suggested at lunch yesterday, rather than EarthSayers.tv being the “voices of sustainability” the positioning ought to be, “voices of survival.”

That’s the bad news. We still act like we have all the time in the world.