(CR) Why are we talking about marketing a company’s green side?As the recession is easing, this is predicted to be the year when consumers will begin to make purchase decisions not based entirely on cost.
(DW) And who is carrying – and designing - the company’s sustainability message. It’s us. The multitude of green initiatives being taken on by companies is mind-boggling. And it’s getting more complex all the time.This session is not going to talk about branding, but about strategySustainability communications have come to dominate a company’s corporate social responsibility program.
(DW) It has become abundantly clear that PR pros play a much bigger role in companies when it comes to the sustainability question. They are leading – not following – strategy sessions.
(DW and CR) The pace and growth of sustainability initiatives are not slowing, they are going faster. It is becoming very clear that places like Facebook and Twitter can wreck, just within a few hours, the thousands of hours and dollars spent to build a company’s sustainability cred. A key point I want to make here is to keep reading, monitoring legislation that may impact your company or your client. DW: So, let me turn it over to Craig to give you some of the key trends and facts we all need to understand – whether you are heading up a sustainability communications effort or plan to offer your services..
(CR through audience)
Would be good to remark that this segment is growing (if true).Stress this slide – that people will need to understand this market, this acronym
(CR) This is a growing segment that is making conscious purchasing decisions, actively judging companies.
(CR) Explain why it’s important to understand this nuance
(dw) So this brings us to how companies are responding and where they are going. How many people understand this concept?
(DW) Clorox has made it a five-word bottom line…. And its “GreenWorks” products are one of its fastest growing lines.
(DW or CR) This is a lengthy statement, and I’m not going to read because you have printed copies –but Proctor and Gamble is taking a look to the future – and making sure there is a better future. It’s a great sustainability message. But like many international companies, they realize they have to be socially responsible in the countries where their products may be derived from…
(DW) This is a good example of the two key initiatives that companies will take when it comes to sustainability initiatives. First, P&G has made a commitment to operate in a more sustainability way that creates less harm to th environment. Next, it is making information available to the public on how they can do the same, and created this website. They also have partnered with three key organizations to help them get there. There are strong connections to their products.
(DW) Let’s be clear – sustainability works for many companies because it’s improving their bottom line. Starbucks sells sustainability like few companies do….
OK, one more final lesson. Who knows the difference? Of course, Greenwashing is making claims that you really can’t support. But…
Most companies know to avoid greenwashing – but they can fall into this trap.
So why is it important to understand greenwashing and eco-superior? Prior to the recession, everyone was on the green labeling bandwagon, and it’s expected to continue now. Here we have a study of every product making a green claim in U. S., Canada, U. K., and Australia in 2007 and 2008.And remember when we told you that people are more concerned with consequences? Guess where the green claims are made?
(DW) Has anyone seen this ad? It’s for the Nissan Leaf. And it has a polar bear traveling a great distance to hug the guy who bought the leaf. There are problems with this message… But let the advertising folks worry about the branding. What PR professionals need to be worried about are the programs, the message and the operations.
(DW or CR) What PR pros have to worry about is the many connections, the multiple audiences and the pitfalls. It’s amazing that John Muir made this statement because it is so true when it comes to sustainability intiatives.
(DW)Can anyone guess – or remember – who was the top ranked company in Newsweek’s 2010 listing of the greenest 50 U.S. companies?
Carefully Marketing Your Client's Green Side by Denis Wolcott and Craig Ruark
Carefully Marketing Your Client’s Green Side<br />Craig A. Ruark, LEED AP (BD+C), Nevada By Design<br />Denis Wolcott, APR, The Wolcott Company<br />
People are increasing aligning their personal values with the brands they buy. =Sustainability<br />April 2011<br />Ruark and Wolcott<br />
Role of Public Relations?<br />The connection between Sustainability Programs and Corporate Communications efforts is more than a philosophical one.John Friedman The New PR: 2010<br />April 2011<br />Ruark and Wolcott<br />
Demands on PR Pro <br />Leading the “change strategy”<br />The conduit between new programs, skeptical public<br />The “connector”: bringing in new, beneficial partners<br />Moving from “Reputation Manager” to “Trust Builder”<br />April 2011<br />Ruark and Wolcott<br />
Increasing Pitfalls, More Dynamics<br />Companies are transforming, realizing profits<br />“Greenwashing” still exists<br />The bar keeps rising…<br />…and companies keep making mistakes<br />Consumer attitudes keep evolving<br />Sustainability reports are bigger, more complex<br />Social media audience lives here<br />April 2011<br />Ruark and Wolcott<br />
Who is your audience?<br />April 2011<br />Ruark and Wolcott<br />
LOHAS<br />(Lifestyles of Health and Sustainability)<br />Purchase green goods and are active in environmental stewardship;<br />April 2011<br />Ruark and Wolcott<br />
Naturalites:<br />Focus on health and organic goods but are not politically active in environmentalism;<br />April 2011<br />Ruark and Wolcott<br />
Drifters:<br />Have good intentions but various factors other than the environment influences their behavior.<br />April 2011<br />Ruark and Wolcott<br />
Conventionals:<br />Do not have “green attitudes” but take mainstream actions, such as recycling and conserving energy; <br />April 2011<br />Ruark and Wolcott<br />
Unconcerned:<br />Do not conduct behavior that prioritizes the environment or society.<br />April 2011<br />Ruark and Wolcott<br />
Audience Segments<br />April 2011<br />Ruark and Wolcott<br />
Do They Matter?<br />63+ million global LOHAS consumers<br />support businesses that <br />sharetheir commitment<br />To:<br />natural living<br />health of their families<br />communities and environment<br />Natural Marketing Institute<br />April 2011<br />Ruark and Wolcott<br />
People (women in particular), are more interested in consequences not causes! <br />For instance: <br />Higher food prices<br />Skin products (do they cause skin cancer)<br />Products that may cause birth defects <br />Products that we breath (do they cause asthma, etc.)<br />April 2011<br />Ruark and Wolcott<br />
Four Key Motivators Drive Interest in the Environment<br />Personal Protection<br />‘The environment is getting worse and I need to protect myself and my family.’<br />April 2011<br />Ruark and Wolcott<br />
Cost<br />‘By reducing, re-using my family’s consumption, <br />I can save money.’<br />April 2011<br />Ruark and Wolcott<br />
Status<br />‘Letting other know <br />I care about the environment<br /> shows that I am responsible’<br />April 2011<br />Ruark and Wolcott<br />
Altruism<br />‘Improving the environment <br />by minimizing human impact <br />is the right thing to do’<br />April 2011<br />Ruark and Wolcott<br />
Social business effects<br />Environmental<br />Economic<br />People – Planet – Profit<br />The triple bottom line<br />April 2011<br />Ruark and Wolcott<br />
People, Products, Performance, <br />Planet and Purpose<br /> <br />April 2011<br />Ruark and Wolcott<br />
Social responsibility is a natural expression of our Purpose to touch and improve lives. We see it as an investment in the future that helps both children and communities thrive, now and for generations to come. In addition to helping improve lives in the communities where we operate, we are reaching out to people and communities across Asia, Latin America and Africa where we do not have operations or sell P&G brands. These remote parts of the world with profound social needs have often become opportunities for us to extend our “first moment of touch” through our social investments.<br />April 2011<br />Ruark and Wolcott<br />
2001-2007<br /> Expanded its sustainability initiatives<br /> Partnered with Conservation International<br />Saw its market capitalization rise from $7 billion to $21 billion<br />April 2011<br />Ruark and Wolcott<br />
Greenwashingvs.Eco-superior<br />April 2011<br />Ruark and Wolcott<br />
Eco-Superior<br />The act of promoting a company’s efforts to be more green than their competitors<br />April 2011<br />Ruark and Wolcott<br />
Eco-Superior claims<br />More Efficient<br />Less Waste<br />Sustainable Business Practice<br />Giving Back (improving lives)<br />April 2011<br />Ruark and Wolcott<br />
Environmental Claims On the Rise<br />The total number of ‘green’ products increased by an average of 79%.<br />Green advertising almost tripled since 2006.<br />Most common “green” claims: <br />Kids (toys and baby products)<br />Cosmetics<br />Cleaning products<br />April 2011<br />Ruark and Wolcott<br />
Where is Sustainability Communications Headed?<br />April 2011<br />Ruark and Wolcott<br />
Programs, Message, Operations <br />Align a company’s sustainability DNA <br />Beneficial NGO partnerships<br />Support efforts central to the product<br />helpthehoneybees.com<br />April 2011<br />Ruark and Wolcott<br />
Message<br />Be Transparent<br />Publicly available social, environmental policies<br />Annual report (Based on GRI)<br />Don’t overpromise<br />Not like any other PR program<br />Changing behaviors vs. buying a product<br />Education along with reporting<br />Research<br />April 2011<br />Ruark and Wolcott<br />
Examine the operations<br />Effective environmental management system<br />Strong vertical controls<br />Strong internal environmental roles, responsibilities<br />Sustainability vulnerability audit<br />LEED building, but far from employee homes<br />Newsweek magazine ranking<br />Employee recruiting<br />April 2011<br />Ruark and Wolcott<br />