Wsj Eco Conference


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  • Wsj Eco Conference

    1. 1. Mutual Social Responsibility – Where is green going?
    2. 2. An evolving social business landscape <ul><li>Consumers move from viewers to collaborators </li></ul><ul><li>Consumer citizens & citizen brands emerge – only some will survive the downturn </li></ul><ul><li>Interest in social purpose works across all demographics, women especially </li></ul><ul><li>Social purpose is a new “benefit” to build employee engagement and loyalty </li></ul>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.
    3. 3. The evolution of green <ul><li>DEFENSE & RESPONSE </li></ul><ul><li>1992 - 2000 </li></ul>BUSINESS STRATEGY 2006 - Today TACTICAL OFFENSE 2001 - 2005
    4. 4. From bi-lateral partnerships with business and NGOs… TECHNICAL MARKETING SOURCING
    5. 5. … to consumers now in the game Brand Personalization Civil Society Company Consumer Consumer Empowerment Company’s New Social Role
    6. 6. 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?
    7. 7. Consumer behavior: Aspiration vs. Reality <ul><li>ASPIRATION </li></ul><ul><li>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 </li></ul><ul><li>Nearly seven in 10 globally ( 69% ) say they would be prepared to pay more for eco-friendly products </li></ul>2 nd Annual goodpurpose Global Consumer Study, 2009 <ul><li>REALITY </li></ul><ul><li>When times are good, people are eco-conscience. When times are difficult, final decisions are made on bottom-line cost. </li></ul><ul><ul><ul><ul><li>- Professor John Gourville, Harvard Business School </li></ul></ul></ul></ul><ul><li>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’. </li></ul><ul><ul><ul><ul><li>- Mike White, PepsiCo </li></ul></ul></ul></ul>
    8. 8. Light Green vs. Dark Green: The right mix for the right constituency OPERATIONAL REALITY CONSUMER PERCEPTION 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?
    9. 9. Q: Is green a new minimum standard or a premium offer? <ul><li>A: It depends. </li></ul><ul><ul><li>Bright green brands can capture premium, but must work harder to maintain trust </li></ul></ul><ul><ul><li>Light green brands must operate responsibly, but benefits will largely be operational </li></ul></ul>OPERATIONAL EXCELLENCE & TECHNICAL INNOVATION CONSUMER-FACING & PRODUCT CHARACTERISTICS COMBINATION
    10. 10. Q: What is the role of NGO partnerships, today? A: Partnerships still provide technical expertise and social license fixes for business . Now the expectation is for business to fix society’s problem . <ul><li>“ … Come together—government, NGOs and business—in new approach to solving big problems facing our country. … This can work.” </li></ul><ul><li>Lee Scott, Wal-mart </li></ul><ul><li>Lipton Tea consumers perceive ethical sourcing  [Rainforest Alliance certification] to positively impact the quality of the tea, therefore they are willing to pay more. </li></ul><ul><li>- Unilever </li></ul>TRADITIONAL PARTNERSHIPS WHAT’S NEXT?
    11. 11. <ul><li>A: • Ask permission, to empower and engage your consumers </li></ul><ul><li>No greenwashing </li></ul><ul><li>One global voice does not fit all </li></ul>Q: How best to market? COLLECTIVE POWER OF INDIVIDUAL ACTIONS <ul><ul><li>CREATE A MOVEMENT TO MOVE PRODUCT </li></ul></ul><ul><li>CSR claims when couched in local context have the greatest impact. There is little value to “global” claims or calls-to-action. </li></ul><ul><ul><ul><ul><li>- John Quelch, Harvard Business School </li></ul></ul></ul></ul>Energy Efficiency for Ireland
    12. 12. And the media… <ul><li>A general trend from “stenographers” to “participants” in the debate </li></ul><ul><ul><li>Word-for-word, MSM reporters generating as much on-line content as print </li></ul></ul><ul><ul><li>Investigative staff & budgets cut </li></ul></ul><ul><li>Climate change story was a watershed for media </li></ul><ul><ul><li>MSM covered “both sides” of the debate, far after there was clearly one side </li></ul></ul><ul><li>Reporters have permission to serve as referee </li></ul><ul><ul><li>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%) * </li></ul></ul><ul><ul><li>A need to keep score, throw flags when a team plays fast and loose with facts (Shorenstein Center) </li></ul></ul><ul><li>Brands must: </li></ul><ul><ul><li>Provide more technical depth and issue content + brand essence </li></ul></ul><ul><ul><li>Use the media to communicate about their consumers, not just to them </li></ul></ul><ul><ul><li>Become a smaller part of larger stories about society’s important and vexing issues </li></ul></ul>*Corporate Responsibility & Sustainability Communications: Who’s Listening? Who’s Leading? What Matters Most, 2007
    13. 13. The era of Mutual Social Responsibility Combine corporate reputation & brand marketing <ul><li>Operate Differently </li></ul><ul><ul><li>Continual improvement; </li></ul></ul><ul><ul><li>like quality </li></ul></ul><ul><ul><li>Today’s bright green is tomorrow’s light green </li></ul></ul><ul><li>Partner Differently </li></ul><ul><ul><li>Go beyond the technical </li></ul></ul><ul><ul><li>Share consumer relationships and trust </li></ul></ul><ul><li>Market Differently </li></ul><ul><ul><li>Give up control </li></ul></ul><ul><ul><li>Co-create brands; share values </li></ul></ul>