1. Consumers are increasingly interested in social causes and ethical brands, and are willing to pay a small premium (up to 10%) for products from brands that support social and environmental issues. 2. Partnerships between businesses, NGOs, and consumers are evolving - businesses are now expected to directly address societal problems, not just partner with NGOs for technical expertise. 3. To market sustainability effectively, businesses need to empower and engage local consumers authentically rather than using "global" marketing claims, and work to build trust over time through responsible operations.

1. Mutual Social Responsibility – Where is green going?

2. 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.

3. The evolution of green DEFENSE & RESPONSE 1992 - 2000 BUSINESS STRATEGY 2006 - Today TACTICAL OFFENSE 2001 - 2005

4. From bi-lateral partnerships with business and NGOs… TECHNICAL MARKETING SOURCING

5. … to consumers now in the game Brand Personalization Civil Society Company Consumer Consumer Empowerment Company’s New Social Role

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. 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 2 nd 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

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. Q: Is green a new minimum standard or a premium offer? 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 COMBINATION

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 . “ … 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?

11. 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

12. 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) 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 *Corporate Responsibility & Sustainability Communications: Who’s Listening? Who’s Leading? What Matters Most, 2007

13. The era of Mutual Social Responsibility Combine 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