wsj eco conference
Post on 21-Oct-2014
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Mutual Social Responsibility – Where is green going?
An evolving social business landscape
• Consumers move from viewers to collaborators
• Consumer citizens & citizen brands emerge – only some will survive the downturn
• Interest in social purpose works across all demographics, women especially
• Social purpose is a new “benefit” to build employee engagement and loyalty
We see consumers [willing to pay] up to a 10% premium for ethical brands. The issue is that organic, fair trade, etc. were charging an average of 45% or more... we still see growth.
The evolution of green
DEFENSE & RESPONSE1992 - 2000
BUSINESS STRATEGY2006 - Today
TACTICAL OFFENSE2001 - 2005
From bi-lateral partnerships with business and NGOs…
TECHNICAL MARKETINGSOURCING
ConsumerEmpowerment
Brand Personalization
Company’s New Social Role
…to consumers now in the game
Civil Society
Company
Consumer
Key questions
Q: Is green a new minimum standard or a premium offer?
Q: What is the role of NGO partnerships, today?
Q: How best to market?
Consumer behavior: Aspiration vs. Reality
ASPIRATION
• 58% of Americans intent to purchase is positively impacted by information about a brand’s support of social causes, versus 47% by information regarding new product features
• Nearly seven in 10 globally (69%) say they would be prepared to pay more for eco-friendly products
2nd Annual goodpurpose Global Consumer Study, 2009
REALITY
• When times are good, people are eco-conscience. When times are difficult, final decisions are made on bottom-line cost.
- Professor John Gourville, Harvard Business School
• We do not think [environmental sustainability] is optional… we’re not sure how much of a premium consumers will pay for it, but consumers will punish ‘bad actors’.
- Mike White, PepsiCo
Light Green vs. Dark Green: The right mix for the right constituency
OPERATIONAL REALITY
CON
SUM
ER P
ERCE
PTIO
N
Credible - not easy - engagement about your brand
Mirror, mirror: Am I sustainable?
Green product + green brand halo =Ever-higher expectations
Can technical excellence translate to consumer consideration?
A: It depends.• Bright green brands can capture premium, but must work
harder to maintain trust• Light green brands must operate responsibly, but benefits
will largely be operational
OPERATIONAL EXCELLENCE & TECHNICAL INNOVATION
CONSUMER-FACING & PRODUCT CHARACTERISTICS
Q: Is green a new minimum standard or a premium offer?
COMBINATION
A: Partnerships still provide technical expertise and social license fixes for business. Now the expectation is for business to fix society’s problem.
Q: What is the role of NGO partnerships, today?
“ …Come together—government, NGOs and business—in new approach to solving big problems facing our country. … This can work.”
-Lee Scott, Wal-mart
Lipton Tea consumers perceive ethical sourcing [Rainforest Alliance certification] to positively impact the quality of the tea, therefore they are willing to pay more.
- Unilever
TRADITIONAL PARTNERSHIPS WHAT’S NEXT?
A: • Ask permission, to empower and engage your consumers • No greenwashing• One global voice does not fit all
Q: How best to market?
COLLECTIVE POWER OF INDIVIDUAL ACTIONS
CREATE A MOVEMENT TO MOVE PRODUCT
CSR claims when couched in local context have the greatest impact. There is little value to “global” claims or calls-to-action.
- John Quelch, Harvard Business School
Energy Efficiency for Ireland
Brands must:•Provide more technical depth and issue content + brand essence•Use the media to communicate about their consumers, not just to them•Become a smaller part of larger stories about society’s important and vexing
issues
And the media…A general trend from “stenographers” to “participants” in the debate
• Word-for-word, MSM reporters generating as much on-line content as print• Investigative staff & budgets cut
Climate change story was a watershed for media• MSM covered “both sides” of the debate, far after there was clearly one side
Reporters have permission to serve as referee • Mainstream media (68.1%) is a more trusted source of a company’s sustainability
activities followed by corporate websites (57.3%) and NGOs (54.6%)*
• A need to keep score, throw flags when a team plays fast and loose with facts (Shorenstein Center)
*Corporate Responsibility & Sustainability Communications: Who’s Listening? Who’s Leading? What Matters Most, 2007
The era of Mutual Social ResponsibilityCombine corporate reputation & brand marketing
Operate Differently• Continual improvement;
like quality• Today’s bright green is
tomorrow’s light green
Partner Differently• Go beyond the technical• Share consumer relationships
and trust
Market Differently• Give up control• Co-create brands; share values