BRAND STRATEGY: Building the Credible Sustainable Brand

COMMUNICATIONS: Designing Communications that Resonate

PRODUCT DESIGN: Sustainable Product Design: an LCA Approach

SUPPLY CHAIN: Making Supply Chains More Sustainable

DATA & METRICS: Managing Your Sustainable Brand Plan: Management Systems & Metrics for Driving Ideas to Reality

If you are not in NY or NJ you can catch the series in Austin, TX on January 24th-28^th next year.

Use the code yellsbs to get 20% off at registration.

Here’s some more detail from Sustainable Brands

Monday: Building the Credible Sustainable Brand
Learn to build a strong, credible brand, starting with the foundation: how customers experience your brand, and what they believe to be true about you. In this course, Jennifer Rice, from Fruitful Strategy, will walk students step-by-step through building a sustainable brand for B2B, B2C and retailers.

Tuesday: Designing Communications that Resonate
In this course, author and communications expert John Marshall Roberts will walk attendees step-by-step through the essentials of an empathy-based communication framework, first popularized in his bestselling book “Igniting Inspiration: A Persuasion Manual for Visionaries.”

Wednesday: Sustainable Product Design: an LCA Approach
Jeremy Faludi, Associate Professor of Design at Stanford University, illuminates Life Cycle Assessment, a popular yet complex subject, while providing participants with the key facts, processes, and LCA tools needed to intelligently design new products while taking life cycle measurement into account and ultimately applying the best solutions for a company’s needs.

Thursday: Making Supply Chains More Sustainable
Phil Berry of Sustainable Product Works explains best practices for building sustainable supply chains, lifecycle thinking, covering 13 areas to address, 11 ways sustainability creates value, case studies, addressing climate change, waste, lean manufacturing, and relationship tips.

Friday: Managing Your Sustainable Brand Plan: Management Systems & Metrics for Driving Ideas to Reality
This course will help companies establish metrics, and collect and manage data to meet the needs of all stakeholders, including management, customers, international regulators, and NGO’s who scrutinize offerings.  This session provides methods for keeping a cross functional team focused, aligned and incented around interdependent activities and priorities.

Over the next couple of weeks, I’m going to help you find more information about the seminars to see if they are right for you and, whether you attend in NY/NJ or one of the other cities, use the code yellsbs to get 20% off at registration.

The leading brands of the future will be sustainable brands.

SB Seminars: Executive Education in Sustainable Business Practice is in San Francisco on Oct 4-8, Twin Cities on Nov 29-Dec 3, New Brunswick, NJ on Dec 6-10, and Austin on Jan 24-28, and is hosted by top sustainably-focused corporations Williams-Sonoma, 3M, Johnson & Johnson and AMD respectively.

This set of five 1-day executive level courses is taught by leading lecturers, educators, and authors with over 100 collective years of sustainable brand building experience.  Students can attend any or all of the five classes offered Mon-Fri on individual topics including Brand Strategy, Communications, Product Design, Supply Chain or Data & Metrics.

Limited to 30 students per classroom, students receive a level-the-playing-field business knowledge in all key areas of sustainable brand strategy. Students from brand management and corporate sustainability suites as well as marketing/PR, engineering, R&D, and facilities will benefit.

More Information: SBseminars.com

With unfulfilling commitments concluding in Copenhagen and follow-up conversations expected to continue into the immediate future, the world has become increasing aware of the impacts of global emissions have on climate change.  Despite varying views and beliefs, the long-term outcome of these discussions will almost certainly change the face business.

The rapid growth in global environmental awareness is not likely to bump the two primary objectives atop most corporate agendas.  Profitability and shareholder return still remain the ultimate drivers of business action; however, the growing understanding of business sustainability risk might be adding a new perspective for senior management.

Now more than ever many organizations are evaluating the cost and benefits of sustainable business changes.  By managing and planning a company’s operations to reduce environmental and social impacts, companies not only mitigate future risk but position their organization to capture opportunity going forward.

Although the potential cost of carbon is the most recognized risk, increasing demand for water resources is also a growing business risk.  According to a McKinsey report, ‘Charting our Water Future’, the demand for water resources is a growing business risk, a major economic threat, and a challenge for the sustainability of communities.

To unprepared organizations, the business risks of carbon, water, and climate change disclosure takes many forms:

•    Potential increase in operating cost

•    Potential increase in supply costs

•    Potential disruptions to supply or loss of supplier relationships

•    Potential loss of revenue or market share

•    Potential to business reputation

•    Potential inability to secure investment dollars or capital

Sustainable business action is no longer a slogan, marketing campaign, or a feel-good business activity.  Companies are beginning to see the true business risks and value opportunities of implementing corporate sustainability into their core business processes.   For your company, sustainability may provide you with a different perspective of the future.

Because most adults spend most of their waking hours at work, a sustainable working environment is critical.  The work site, organizational culture and working environment are powerful influences on behavior.   Wellness programs have been uses as instruments to address weight reduction, reduced stress levels, improved physical fitness, health, and well being.  They may include fitness, recreation, social activities and programs to enhance intellectual and spiritual development.

If you think about it, you can’t help but notice the link between wellness programs and business sustainability programs.  However, wellness programs have traditionally been an add on program offered to employees whereas, business sustainability, at its highest level, is executed and embedded in the core business operations.

Notice the benefits cited for wellness programs and see if these don’t ring true for corporate responsibility executed in the workplace.

-  Enhanced recruitment and retention of healthy employees
-  Reduced health care costs
-  Decreased rates of illness and injuries
-  Reduced employee absenteeism
-  Improved employee relations and morale
-  Increased productivity

Sustainable business strategies embedded in the core operations of a business captures the benefits a wellness program aims to make and more.

-  Improve Business Reputation
-  Create Brand Differentiation
-  Capture Industry Synergies with other Sustainable Businesses
-  Reduce Business Cost
-  Improve Employee Satisfaction and Retention
-  Lead Your Industry in Best Practices
-  Improved Stakeholder Engagement
-  Respond to Consumer Eco-Preferences
-  Proactive Measures regarding Environmental Legislation

Providing employees with wellness programs not only provides them a way to improve their health, but it also demonstrates corporate social responsibility.  Businesses taking it to the next step are integrating sustainability plans into the core business.

Take for example the benefits of a bike commuting program for business.  It qualifies as alternative transportation, a contributor to a wellness program and also reduces emissions addressed by a corporate sustainability plan.  There are benefits to the bike commuters as well.  Not only are employees expanding eco awareness in the community and within the business, they are also elevating their moods, saving money, and improving well being.  Explore the ways your organizations worksite wellness programs can extend your sustainability initiatives to provide greater value.

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.

• Surprisingly employees ranked highest (48%),
• Customers followed closely behind with (44%)
• Local communities, regulators, media and NGOs, all ranked (mid-20%)
• Investors scored the lowest (16%).

Companies are beginning to see the value in providing employees, middle management, and executives with education, tools and support necessary to champion sustainable development in their organizations.  Business sustainability is becoming a key concept in recruiting and retaining top talent.

“Our store partners (employees) are creating relationships with our customers every day.  We believe it matters greatly that they feel Starbucks is a great place to work, and a company that cares not only about their well-being but also about the world we live in.”   — Jim Donald, Starbucks

CEOs across all industries realize the economic value of incorporating sustainability concepts into product development and marketing.  Focusing on customer’s eco awareness and shifting preferences is creating new market segments and opportunity for business growth.

“Our goal: offer our customers an increasing volume of affordable, sustainable products that help them live better every day.” — Lee Scott, Wal-Mart

Executives recognize that transparency and accountability is no longer limited to a company’s financials.  Corporate sustainability plans are providing company disclosure on regulatory compliance and risks.

“A commitment to sustainability recognizes that our company is not measured by financial results alone. We must also be responsible stewards of the environment and responsive to the changing expectations of our stakeholders.”  –Jim Rodgers, Duke Energy

Investors are expecting more from companies.  Business sustainability is now being integrated into traditional investment evaluation process, and this is having real impact on company financials.  Company success and sustainability are becoming more closely linked.

We recognize that opportunities for growth bring real social responsibility challenges. When society changes, business must be proactive in changing along with it. We are doing so, moving beyond dialogue to action.  — Jeffrey R. Immelt, GE

Today’s business environment is changing and leading companies are responding.  Recognizing the need for change and taking action can get you on the track.

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.

There are many philosophies behind sustainability but the most prevalent stem from the fact that humans are dependent on the planet for survival. If we use up limited resources like fresh water and oil or destroy ecosystems that provide resources we can use like forests and farmland humans are out of luck. Without soil we can’t eat. So according to this reasoning we should use farming practices that conserve and create naturally nutrient rich soil.  This thinking goes along with the proverb: “Treat the Earth well. It was not given to you by your parents. It was loaned to you by your children.”

For others nature has value separate from people. The philosophy known as deep ecology focuses on the intrinsic value of all parts of the planet. Animals have the right to live as they are meant to live and the natural systems of earth should be allowed to function as they always have.  For a brief comparison of shallow and deep ecology check out this video:

The trend of religious groups working towards sustainable systems has grown over the last few years.  Putting aside the focus on the “dominion” of people over nature, these new groups follow the belief that it is their duty to treat the planet created by a divine hand in a respectful and protective way. “At the core of Jewish and Christian ethics are the commandments to love God and one’s neighbor. Can we love the Creator without celebrating and caring for the creation? Can we love our neighbor without protecting the environment on which that neighbor’s life and health depend?”  states the Web site of the National Religious Partnership for the Environment.

In a post Why be Sustainable? the blog Sustainable Progress highlighted three simple reasons to strive for sustainability:

1. Help to avert major conflicts over dwindling resources
2. Increase the level of personal happiness and health within communities
3. Give people a sense of hope and an ability to focus on longer term visions for humanity

There are many reasons people try to live more sustainable lives. Yell out your reasons!

Elizabeth Ulion is a graduate student at Northwestern University.

Photo courtesy of woodleywonderworks/Flickr.

Who wins when CSR is superficial?

by Imran Aijazuddin

 

We see corporate social responsibility (CSR) everywhere.  Prominent organizations ranging from General Electric to the National Basketball Association advertise missions that claim to better society and/or the environment.  Companies worldwide feel the need to turn toward sustainability.  After all, the public expects a high degree of social responsibility from the nation’s largest businesses.  Why?  Simply because we think these businesses have the power and influence to make a difference in the world and to serve as role models for other organizations and everyday citizens.

We are not stupid; we realize that the world is in bad shape, from a societal perspective and an environmental one.  And as public concern increases, so does demand for socially responsible organizations.  However, both citizens and businesses forget the importance of effective CSR.  Businesses address any generic social issue just to please us.  The result is painful to watch.  Most businesses exaggerate their accomplishments to garner favorable public opinion.  They succeed in winning support from most citizens who do not have enough counter-evidence to reject their claims.  Consequently, CSR initiatives are often just costly advertisements that produce little, if any, actual results.  Unfortunately for companies, they usually lose money from their CSR advertising expenses and harm their bottom lines.

Businesses today dread CSR.  Unrealistic expectations from the public are a major reason why.  We encourage our businesses to fight generic world issues far beyond their control.  Consider the hypothetical car company Automaker X to illustrate.  Automaker X. is an American automobile manufacturer that wants to impress the public by addressing a social problem.  Market surveys show that citizens place the AIDS pandemic in Africa atop our list of problems.  Thus, Automaker X invests time, personnel, and funds into sponsoring health education and medical relief for impoverished African countries.  It then uses exaggerated local advertisements to tell us about its successes in fighting AIDS, attracting a larger audience.  The trouble with this is that Automaker X can do very little to provide AIDS relief.  Its competence lies in producing quality vehicles, not in providing medical relief or healthy lifestyle education.  Organizations such as Beaumont Hospital and the AIDS Relief Fund for China have the resources and knowledge to actually make a difference in African countries.  Automaker X, on the other hand, does not.  As a result, it has wasted its money trying to address an issue that it understands little about.  The auto company can do very little to benefit Africans besides writing a check – which will only harm its profits.

Effective CSR is different.  Businesses can use CSR to benefit themselves and society simultaneously – the opposite of what Automaker X did in the previous example.  Now suppose that the company addresses a specific issue that it has some control over: poor fuel economy.  The automaker invests in research and development for a hybrid vehicle that offers great gas mileage and reduces harmful carbon emissions.  Within three years, Automaker X releases a new model that averages over 40 miles per gallon and is available for less than $20,000.  As expected, the new model is an instant hit.  Sales skyrocket and the new vehicle quickly replaces old cars with low gas mileage and notoriously high carbon emissions.  Americans slowly grow independent of gasoline and fewer toxic chemicals harm the ozone layer.  Automaker X, meanwhile, enjoys the financial rewards and gains a larger share of the market as competitors scramble to manufacture their own vehicles.

In the previous example, both our society and the company benefit from the specific CSR initiative, a win-win scenario.  If businesses realize that they can profit from CSR, they will approach it without hesitation.  And we need them to approach CSR in a proactive manner, not a reactive one.   But businesses can only profit if they pursue social issues that they understand.  For a CSR campaign to be effective:

1. the campaign should address a specific issue within the company’s control as opposed to a generic issue, and
2. the company should approach the campaign willingly and take a proactive stance as opposed to a reactive one.

Bear in mind that businesses ultimately benefit society by making money.  Successful businesses create millions of jobs that help lift citizens out of poverty, while educating them in marketable trades and providing them with self-gratification.  Americans have seen what a slow economy and rising unemployment can do to a nation and understand the importance of a powerful economy to society.  So we shouldn’t expect organizations to incur losses just to undertake a social mission.  Instead, we should expect them to channel their strengths in a particular area to benefit society and themselves simultaneously.  After all, what can be better than a victory on both sides?

One of the most greenwashed goods I have ever seen is called the “Guiltless Green Home Theater”. Marketed thusly by the Home Theater Specialists of America, buyers of the entire package get an HD projector, 100” television screen, an AV receiver, a Blu-ray player, a control system, 5.1 surround speaker including subwoofer and four 1.75 KW solar panels. In the prototype display there is even “green seating,” a couch and chairs with leather processed without chromium.  “We took the green initiative even further by re-using some of the carpet,” said the HTSA.

With the 4 panels of this size a family can have “19 hours of off-the-grid entertainment every week.”  All for All for $29,575, “a very appealing price for a lot of people,” according to the write up by Richard Glikes, executive director of HTSA.

Now let’s look at the amount of energy produced by this size solar installation. Four 175 watt panels will churn out 700 watts per hour. That is 22 KW a week if the sun is shining, apparently enough for 19 hours of electronic entertainment time. Comparatively the electricity bill at my parent’s four bedroom suburban home uses this much electricity in a week. The whole house.  By installing the Guiltless Green Home Theater system you can also guiltlessly double your home’s energy usage! Of course you’ll be offsetting the energy drain through solar panels but why not just install the solar panels, forget the Blu-ray and go off-grid with your current energy usage?

Next up – electronics consumption. Guiltlessly purchase all new electronics and ensure the continued conflict in Africa funded by coltan mining and a pollution filled future when the tv and projector are sent overseas to be “recycled.”

The weight is lifting off my shoulders already. I’m going to sit down in my chromium free chair, pop some organic popcorn, crack open a locally brewed beer and guiltlessly watch hours of advertising quality programming.

Elizabeth Ulion is a graduate student at Northwestern University.