the clorox journey continues -...
TRANSCRIPT
Presenters
Amy Fletcher | Reza Rahaman | Jon Weisman
Ken McLellan | William Melendez | Russell Roberts
Working the Crowd
Sean Chang | Matt Richards
The Clorox Journey Continues:
Changing Corporate Culture & Driving
Business Growth
Today’s Agenda
The Clorox Company
D&I: Allies for Diversity
Challenges Faced
PRIDE Expansion & Burt’s Bees
October 8, 2015 - O&E Summit 2015 - Dallas 2
The Clorox Company
D&I: Allies for Diversity
Challenges Faced
PRIDE Expansion & Burt’s Bees
Clorox in 1913
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Clorox in the 2000s
October 8, 2015 - O&E Summit 2015 - Dallas 5
Clorox in 2015!
Clorox celebrating Oakland PRIDE
October 8, 2015 - O&E Summit 2015 - Dallas 6
Home Care 17%
Laundry 10%
Professional 5%
Glad 15%
Litter 6%
Charcoal 11%
Food 9%
Brita 4%
Burt's Bees 4%
International 19%
Clorox Today
FY14
Revenue
$5.7B
Producing in
25+
Countries
Sales in
100+
Countries
7
Making everyday life better, every day
Over 80% of the Portfolio has #1 or #2 Share
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The Clorox Company
D&I: Allies for Diversity
Challenges Faced
PRIDE Expansion & Burt’s Bees
Clorox PRIDE: 2006-2014 2006
PRIDE Started
Clorox earns first 100% HRC Rating
Recruiting begins at Reaching OUT MBA conference
2007
First Out&Equal Summit
2008
Clorox CEO Don Knauss first Fortune 500 keynote Speaker at Out&Equal
2010
Out&Equal ERG of the year
WalMart Pride’s MLK “Visionary” Award
Carson Kressley spokesperson for Clorox2
2011
June Pride Event features “GAYNOVENT,” an innovation in LGBT advertising competition
2012
Clorox VP President of Out&Equal Board
Clorox Pitches Integrated Marketing Strategy to Executive Team
New Corporate Definition of Diversity
2013
Clorox includes LGBT in consumer segments
Recruiting expands to other functions at Out for Work
2014
Allies for PRIDE
Love is Natural BB Concept
Secured $50k in funding for LGBT Test and Learn
Present Day (2014 – 2015): • Allies for Diversity
• Oakland Pride
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Mission: To create a proud and accepting environment where LGBTA people drive a competitive business advantage for Clorox. We do this by ensuring our LGBTA workforce is engaged, empowered and visible.
Objectives 2015 Plan
1. Enhance a skill set that allows for employees and those around them to bring their whole selves to work
3 Make PRIDE More
Valuable to Employees + Community LGBT Employee Recruitment in
all functions
Presenters, Sponsors and Board Leadership at Annual
Out&Equal Summit Events in multiple sites
Clorox is first to market for LGBT
Initiatives
Proven and growing employee passion for marketing to LGBT consumers
Clorox remains a leader among peers in
advancing LGBT workplace rights
ERG Proof Points
Make PRIDE More Vibrant and
Stronger 1 1. Develop and execute against
Ally engagement strategy
2. Engage Clorox LGBT community more fully
Foster growth of Pride ERGs at remote sites
Become recognized as industry leader for LGBT causes June Pride Month Anchor Event
Mix, Mingle & Give cross-company ERG annual fundraiser
2 Make PRIDE More Valuable to Clorox
1. Grow Clorox business through LGBT diversity connections
2. Enhance Clorox’s community image
Continue to benchmark policies and benefits for maximum LGBT equity;
maintain HRC 100% rating
LGBT insights in marketing and product development
Tenets
Evolution of Diversity and Inclusion Strategy – Allies for Diversity
People Strategy = #1 Strategy
Integral Part of Strategy is Diversity
ERGs Crucial to Diversity
2015 Allies for Diversity
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Allies for Diversity Event
Challenge – How to
effectively represent
so many ERGs during
one event
“Everyone needs an ally”
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Keys to success for planning ally events
1. Engage broad audiences
• Look to other ERGs, functions, etc
• Make it known that ALL are welcome
2. Get management buy-in and attendance
• Make leaders visible
• Give leaders a speaking role if possible
3. Make allies visible: computer stickers, badge cards
4. Activation is easier than sustaining.
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Maintaining a group of allies
• Use appropriate level of communication
− Consider maintaining a separate distribution list
• Engage on a regular basis for advice and input
• Bring allies onto the ERG leadership board
• Understand what’s in it for each of your allies
This is a relatively undefined space: set goals for
your allies!
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The Clorox Company
D&I: Allies for Diversity
Challenges Faced
PRIDE Expansion & Burt’s Bees
2015 Focus - U.S. and International Expansion
HQ
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What drove success in Atlanta expansion
Modeled after SHOW & ABLE ERGs • Everyone loves a party!
• Many hands make light work
• Easier to build enthusiasm
Easier to access and engage leadership • Greater visibility at informal events
Tighter Community engagement • Sense of employee community
• Tie to existing local events
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HQ
Unexpected benefits of ERG expansion
Key Learnings:
• Strong success in a satellite location
can strengthen and energize the core
• Regional events can awaken and
energize the region – Aberdeen, MD
• Provide company-specific examples of
what is possible
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HQ
2015 Focus – International Expansion
Clorox International Business
Focus in LATAM • Stateside satellite locations
strengthened resolve for ERG influence
and support of LGBT overseas
• Benefits and challenges of company-
wide IT infrastructure and
communication
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Latin America Expansion – Another Breakthrough, but With Some
Challenges
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Latin America Expansion – What We’ve Learned
Clorox corporate culture encourages
spirit of Diversity, Inclusion & the
Golden Rule • Local and regional support to do the right thing
• However, local offices unsure of the role of
ERGs, HR and company policy
• Local LGBT and coming out slowly as a result
1. Diversity & Inclusion training for local teams and leaders
2. Establish regional budget for local events
Next steps for Clorox:
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First steps to international expansion
• Find a local ally, ERG, or group of supporters
• Remove small barriers to entry
− Enable budget early on
− Translate domestic resources
• Include in domestic events & encourage local events
• Imperative: buy in from local leadership
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Burt’s Bees Case Study
The LGBT Consumer is growing in buying power, influence, and
neighborhood reach
Would pay more for
products marketed by
LGBT-friendly companies
Are more likely to buy a
brand that markets to
LGBTs
LGBT annual CPG
spending is higher than
average household
Total buying power in ‘15
per person
Number of US adults
that self-identify as
LGBT
of LGBT people say they
currently live in an LGBT
neighborhood
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Burts Bees - Well Positioned for LGBT Audiences
Sustainability
More likely to make
purchases that reduce
environmental impact
Twice as likely to make
purchase decisions based
on the environment
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Burt’s Bee’s Case Study
Burt’s Bees Business Objective: Accelerate share
growth from retailer’s perspective through a refocused
strategy:
• Attract new Households by raising awareness of
existing flavor variety
• Accelerate migration from traditional balms to premium
among younger consumers
• Win the impulse occasion by releasing relevant on-
trend flavors
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What is our strategy? How can a LGBT Test & Learn Help?
Key Learnings:
• Consumers attracted to messaging that tugs at
emotional heartstrings
• Appeal to both the LGBT and General Populations
• Rainbow does not resonate as well with Millennials as
with older generations
Campaign ideas: “Love is natural” and “There is
always room for any bee in our hive”
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Consumer Trends & Diversity
Consumers are voting with their money for brands,
movies and media that reflect the cultural realities of
today, not the past
• Consumers eager to connect with brands that hold similar values
• Consumers connect with media that “looks like me”
• The barriers brands break exceed the barriers created by people
resistant to the realities of our ever-evolving world
Source: Stylus “Representing Diversity” June 2015
Narratives that connect with consumers have moral
and economic value for brands.
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Examples of Diversity in Consumer Trends
Spiderman: Marvel Comics
• Black-Hispanic American Miles Morales will
take over from Peter Parker
• Takes effect Autumn 2015
Indian Fashion retailer Anouk
• Released an ad depicting a lesbian couple
going about their domestic lives.
• The power of its message lies in the
transferability of the scenes of any relationship.
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Burt’s Bees Response to Obergefell vs. Hodges
burtsbeesusWe love love of every kind! #lovewins
lipbalm.bbw.and.moreDone buying there
janetka_romchikLeviticus 18:22
Thou shalt not lie with mankind, as with womankind: it is abomination
yaaassarah@janetka_romchik take that garbage elsewhere. Focus on yourself. Other
people's marriages don't physically affect you. Lol bye Felicia 🙋🙋🙋🙋🙋🙋
quarktheduck@janetka_romchik LoL, using Leviticus as an argument is basically you saying
Jesus' sacrifice wasn't enough for you. Maybe you should read the WHOLE bible, not just the
parts you like 🙋
fear_the_little_red@yaaassarah she's being a dickhead and I support gay marriage, but don't
call the bible garbage
[email protected] dont let ur ignorance hit u on the way out lmao
janetka_romchik@quarktheduck love did not win now, it won when Jesus died on the cross
for all of our sins and I am so grateful that he did that because that is the greatest love of all.
preacherchadThat's a good way to lose business because until now I've been a huge
supporter of you guys.
wachaelweedI love burts bees wow
jazzy56heyI love burt's bees
Jennifer Meyer Beautiful!
Kelli Goosey I am glad BB supports all people and the right to love!! Awesome company
Doris Williams The best thing on my lips besides my husbands lips!
Brenna Bews This is so cute!
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Why did Burt’s Bees react?
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What is next for Burt’s Bees?
In-store Social/Digital
Drive connection with
consumers as they
are looking to align
with brands with
similar values
Draw support of
LGBT community by
offering that will drive
traffic in-store
Rainbow pack
Retailer exclusive
Cause component
Greater social presence
PR event
#Loveisnatural
Tied to key innovation
Link brand & cons. values
Test & Learn opportunity
with consumer-validated
message to amplify
brand values with
consumers
Transferrable Message
#loveisnatural
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Discussion topics
1. Does the Burt’s Bees strategy resonate with
you? Why or why not?
2. How would you form an LGBT marketing
strategy for your company?
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The Clorox Company
D&I: Allies for Diversity
Challenges Faced
PRIDE Expansion & Burt’s Bees
Clorox Culture and Policy
What we’ve learned: • Importance of Leadership, Influence and Advocacy
• Can turn our Values into commitment
• ERGs and their sponsors can be powerful change
agents
• Importance of succession planning
Our strength lies in our Diversity. We are truly
part of a much larger community.
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Our Biggest Challenges
What we’ve learned about
ourselves: • Company culture drives
everything
• Policy is directly influenced by
Culture, and changes slowly
• Hard to get traction for
Marketing Campaign
• Getting us more public-facing
is worth the effort
What we have next to do: • Activate our Allies
• Establish ourselves in the right set of
local, regional and international
networks
• Policy is directly
• Re-energize the Bay Area base
• Continued ERG expansion
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Team Discussion
1. How can you better leverage Allies within your
organization?
2. What strategies would you use to take your ERG to
the next level?
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Thank you for joining us!