Today’s consumers are becoming more educated, and many companies are realizing there is a diminishing return in simple ‘green’ marketing.  The dramatic increase in global awareness has resulted in a significant shift in ‘green’ consumer expectations.  To manage one’s sustainability reputation in today’s social media environment, leading business sustainability minded organizations realize that actions speak louder than words.

A strong reputation is a critical component of every business, but it is especially important in driving consumer eco awareness of a specific product or service.  To build business and product reputation, a company should be able to demonstrate what they say they value.  In this light, a recent lesson learned by many organizations is the over-statement of company sustainability intentions and actions.

When communicating to the outside world, be aware that the audience is not privy to the same level of internal information and business action understanding.  Sometimes referred to as the “curse of information”, loosing site of this basic concept can get your organization into some undesirable conversations.  Here are a few rules of thumb to keep in mind:

Simple:

- Are you conveying your understanding of the big picture or specific action?

- Is the topic of your message a significant environmental or social achievement?

Creditable:

- Are other activities in your company consistent with this message?

- Have you engaged stakeholders and incorporated their feedback?

- Do you have data to back up your claim?

- Could your claim be supported by a third party?

- Is the message honest and not self-glorifying?

Concrete:

- Is the issue you are addressing material to your business?

- Have you invested significant resources?

- Did you spend more money on the activity than on communications?

- Have you already achieved the results in your claim?

Green consumers are seeking out companies that deliver on their expectations.  Effective and transparent communication is key.

Have you ever noticed how the expression of a corporate mission differs from the high level vision to how it’s expressed within an organization?  It appears there is often a disconnect between a corporate sustainability plan and how that vision filters down to the day-to-day workings of the company’s employees.   The heart of this may lie in the misconceptions of executive management about true employee engagement.

In a recent report by Companies at a Crossroads, findings show there is a huge disconnect between executive beliefs and employee reality.  While 38% of chief executives felt levels of trust in their companies were high and that their staff was engaged, only 16% of managers had similar perception from the front line.

It is concerning that both perceptions were well below 50%, but even more surprising is that there is such a disconnect between executive belief and employee experience.  What chance do companies have to implement business sustainability programs with such a wide gap in leadership?  What can businesses do to bridge the gap?

Suggestions on how to close that gap include:

> Green teams: informal groups of people in a company organized around environmental issues and tasked with ways to promote business action in alignment with the corporate sustainability plan.

> Individual employee sustainability programs: personal employee commitments with the basic premise of translating corporate strategy into personal business sustainability action.

> Cross-Organizational Education: sponsor ongoing workshops, training, lunch and learns, and educational activities to educate both employees and management on the corporate programs and the individual efforts underway within the company.

Evidence has shown that stakeholder engagement, particularly employee engagement, is critical to a company’s ability to capitalize on internal eco awareness, innovation, and overall business sustainability.  Start building the bridge today between your corporate sustainability vision and employee action.

Solutions to complex problems can be sparked by unusual pairings.  Consider how you can grow your business by partnering with a nonprofit, NGO, or the like to not only address corporate social responsibility but also powerfully contribute to the improvement of community issues.

In a report by Forum for the Future, the authors discuss the hallmarks of sustainability leaders.  Specifically in the area of community relations, the report discusses some key business distinctions.

> Community activities have strong links to the core business, its brands and its products/services.

> The business measures the outcomes, rather than just inputs, of its community activities.

> A clear strategy at group level provides the framework for initiatives carried out at the local level through partnership with community groups, local businesses, regulators etc.

> Measures are in place to ensure initiatives add value both to the community and to the business.

> Initiatives are delivered via mixed investments of time, finance, knowledge and skills.

How can you grow your business through community building?  Match your company values with partnering organizations in the community.  Focus on:

> Shared interest

> Creating a win/win outcome

> Meeting commitments to the local community

> Delivering on social business targets

> Building local trust

> Improving stakeholder relations

> Developing a skilled local supplier base

These kinds of partnerships lead to beneficial back scratching -to affect change and get a better grounding for the corporate social responsibility programs and business sustainability strategies.  Organizations working together allow sustainability plans to synergize in a way neither organization can achieve on its own.

According to a recent study, top performing organizations view sustainability as a “must have” strategy for long term business viability and success.  A differentiating aspect of these organizations is a recognition and response to ‘pressures from stakeholders’.

While executive support is a critical key component to business success, it is not the only form of leadership present in an organization.  Business sustainability leaders understand the value in leveraging their internal resources as well as their key business relationships.

Whether led by a sustainability executive or traditional management, the pursuit of long-term business sustainability enables:

• Employees: Create incentives to lower costs, initiate process improvements, and stimulate innovation.

• Customers: Establish expectations that are defining products and service attributes.

• Suppliers: Align supply chain expectations to drive sustainable material requirements and efficiencies.

• Local Community: Defined framework for initiatives carried out at the local level through partnership with community groups, local businesses, and governing bodies.

In both a corporate culture which encourages stakeholder engagement and a traditional setting, there are opportunities to further facilitate eco awareness across any organization.  By creating an openness to new information and a business model to respond, a company enables itself to explore the value of business sustainability.

It is essential to build a focused business sustainability plan which incorporates sustainability concepts into core business practices.  Additionally, include business leaders to engage employees and other key stakeholders in business sustainability strategies that add specific value and promote company growth and success.

The sudden surge in business eco awareness has not gone unnoticed by consumers.  With sustainability concepts and definitions subject to interpretation, the same business sustainability programs claimed as “green” are also subject to “greenwash” commentary from writers and bloggers.  Much of the criticism coming from contradictory green business claims with company histories and recent actions.

A strong reputation is a critical component of every business, but it is especially important in driving consumer eco awareness to a specific product or service.  To build business and product reputation, business today are required to effectively communicate their environmental message, based on their true business sustainability practices and/or products.

A new report by Futerra Sustainability Communications, Understanding and Preventing Greenwash: A Business Guide, provides a framework for companies to better communicate their environmental message, based on their true business sustainability practices and/or products.  The report focuses on providing effective and valuable information to consumers.  Here are a few tips from the report:

Impact: Make Sure it’s Real

•    Is the topic of your message a significant environmental achievement?

•    Is the issue you are addressing material to your business?

•    Have you invested significant resources (time, funds, and people)?

•    Did you spend more money on the activity than on communications?

•    Have you already achieved the results in your claim?

Alignment: Build Support Internally and Externally

•    Have you worked with multiple functions within your company?

•    Are other activities in your company consistent with this message?

•    Have you engaged stakeholders and incorporated their feedback?

•    Could your claim be supported by a credible third party?

Communication: Communicate it Accurately

•    Is it easy for people to understand your claim and its significance?

•    Do people consider your company trustworthy?

•    Do you have data to back up your claim?

•    Are you conveying your understanding of the big picture?

•    Is the message honest and not self-glorifying?

The business world often struggles to effectively and clearly communicate its alternative product offerings and business sustainability actions.  With sustainability concepts and definitions still subject to interpretation, the same business sustainability eco actions claimed as ‘green’ are also subject to ‘greenwashing’ commentary from consumers, writers and bloggers.  Much of this criticism comes from contradictory ‘green’ business claims by companies with incongruent histories and actions.

While the true ‘greenwashers’ will be eventually exposed, it is evident companies need to be very clear with their communications.

The pursuit of business sustainability does not have to come from any one source.  It can generate from within your own company at the ground level, from the customers you service, or your suppliers.  Often employees have the information and ideas to make a significant but are limited by the structures of the organization.  One key to success is to create a corporate culture that encourages and rewards innovation at all levels internal to the organization as well as external to the company.

The World Business Council for Sustainable Development poses 4 questions in the innovation process to ensure success:

How can we ensure sustainability is part of the creative process?

How can we ensure that sustainability considerations are part of the management of a development process?

When and how can external viewpoints enrich the creative and development process?

What processes are going to leverage the value of our intellectual capital?

An open innovation approach to business sustainability offers stakeholders the opportunity to become engaged in the future of a business.  Recognizing that key stakeholders have a vested interest the success of the company, creates openness to new ideas that promote business success.

Enabled by the right structure, stakeholder generated innovation can be the company’s greatest asset for change.

Top level support for an open innovation culture.

A consistent management approach that promotes stakeholder  engagement.

Open and consistent communication of business sustainability goals.

Cohesive policies and procedures that clearly define incentives.

One approach is to look to the leading edge to see what others are doing. In 2007, over half of the companies that appeared on the Dow Jones Sustainability Index (DJSI) also appeared in Innovaro’s “Innovation Leaders” report.  The common denominator across these leading companies is the ability to create and deliver new innovation by addressing societal and environmental challenges in a way that delivers business sustainability and long term value.

Studies of the Innovative Process and demonstrated results show there to be a strong relationship between sustainability and innovation.  In fact, leading companies like Toyota will tell you, with product introductions like the Prius, that sustainability was the driver of innovation.

Most corporate sustainability concepts that stick don’t originate from corporate edicts or a grand idea from the top.   They spring up from the seeds of innovation from within the organization.   It is clear that innovation will be essential for businesses to thrive and survive over the next decade.  Companies becoming more environmentally, socially and economically responsible are driving innovations in products, services and sourcing.  Commitment to sustainability uncovers opportunities to explore, develop, collaborate, and innovate within your organization and your industry.

Direct stakeholders are defined as any person, group, or entities that have a direct relationship with your company and its products or services.  These include:

Financial Stakeholders:

• Shareholders – Returns
• Partners – Investment
• Employees – Job status
• Customers – Delivery and quality of product
• Suppliers/Contractors – Contracts

Social Stakeholders:

• Local Communities – Impact to way of life
• Friends/Family – Personal welfare

Environmental Stakeholders:

• Natural Environment – Change to current state
• Non-human species – Impact to way of life

Indirect stakeholders are persons, groups, or entities who have a stake in the outcome, but don’t necessarily have a direct relationship.  These include:

Financial Stakeholders:

• Investment Community – Financial impacts
• Industry Peers – Implications to similar situations
• Trade Organizations – Implications to business segments

Social Stakeholders:

• Government – Legislation
• Civil Society – Impact to way of life
• Media – News reports

Environmental Stakeholders:

• Environmental Organizations – Legislation, eco awareness
• Future Generations – All of the above

Something to remember: Anyone who thinks they are a stakeholder – Is a stakeholder.  Also, it’s important to know which stakeholders are key on which issues.

Some have viewed stakeholders as opponents.  However, stakeholder engagement is more than just obtaining buy-in from employees and investors.   Stakeholder engagement is a way to capture value through proactively acknowledging and addressing the underlying needs and concerns of those impacted by a particular situation.  It includes:

• Strategy and Leadership: understanding strengths to promote innovative ways to create positive change and add value to a financial situation, social interests, and eco awareness.
• Business Integration: improve business practices to drive strategy, educate, and link internal and external groups.
• Risk Management: assess, prioritize, monitor, and address emerging issues
• Communication: provide a direct link from decision makers to the key issues and opportunities.

Evidence has shown that early stakeholder engagement is critical to a company’s ability to capitalize on its sustainability initiatives, product stewardship, reputation, and overall business sustainability.  Ideas include:

Supply Chain: Take a step beyond supplier metrics scorecards and supplier metrics.  Integrate supply alliances into the front-end of the design process to ensure alignment and value for material selection, process efficiency, and product quality.

End Customers: Move past simple feedback tools such as consumer surveys.  Capture consumer preferences and expectations by actively engaging consumers on sustainability concepts that directly impact business direction, planning, and product development.  Move the consumer touch-point forward into the initial design.

Community: Business sustainability includes recognition that a company and the community in which it operates are closely and strategically linked.  Early engagement with the community is essential.

The key to successful stakeholder engagement is real, authentic and open communication that builds trust.