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SOCIAL
GOOD



         SEPTEMBER 2011
WHAT WE’LL
COVER
Background and Methodology
The End of Goodwashing
The Rise of Shared Value
Creative Urban Renewal
Ripping a Page from the For-Profit Playbook
The Global Do-Good Generation
Things to Watch:
•   Buy One, Give One Away
•   Gaming for Social Good
•   Beyond Slacktivism: Incentivizing Online Engagement
•   Donation Channel Innovation
Case Studies
Appendix
•   Learn More About Our Experts and Influencers
•   Additional Charts
                                                          SOCIAL GOOD
METHODOLOGY


    JWT’s “Social Good” report is the result of quantitative, qualitative and desk
    research conducted by JWTIntelligence in partnership with EthosJWT, a unit
    specializing in brand strategy, ideas and activation for social change and societal
    benefit.


    JWTIntelligence and EthosJWT interviewed experts and influencers from the
    nonprofit and corporate social responsibility sectors and conducted quantitative
    surveys in the U.S., the U.K. and Canada. The surveys used SONAR™, JWT’s
    proprietary online tool, to poll 908 adults aged 18-plus from June 28-July 6, 2011.
 




                                                                                          SOCIAL GOOD
INFLUENCERS/EXPERTS




                      SOCIAL GOOD
THE END OF
GOODWASHING
TREND


Cynical and savvy, today’s consumers expect greater accountability from nonprofits
as well as brands involved in cause marketing—e.g., exactly where the money is going
and what impact it’s having. More transparency will mean more focus on effecting
real change and less “goodwashing.”




                                                                         THE END OF GOODWASHING
DRIVERS



• Consumer cynicism
• Expectation of radical
 transparency
• Reading the fine print
• Social media
                                            “Brands are becoming far
• Competitive and                      more discerning about who to
 government pressures                      cooperate with in terms of
                                institutions. Madonna had a problem
• More monitoring              with her charity, and so did Oprah. So
 organizations and                 before brands step in to sponsor a
 watchdogs                         charity, it has to have impeccable
                                       credentials, have substance.”
• Digitally enabled advocacy    —MILTON PEDRAZA, CEO, Luxury Institute
 groups


                                                                    THE END OF GOODWASHING
DRIVERS   (cont’d.)




• Consumer cynicism
• Expectation of radical
 transparency
• Reading the fine print
• Social media
• Competitive and
 government pressures
• More monitoring
 organizations and
 watchdogs
• Digitally enabled advocacy
 groups


                               THE END OF GOODWASHING
DRIVERS   (cont’d.)




• Consumer cynicism
• Expectation of radical
 transparency
• Reading the fine print
• Social media
                                  “My sense is that, with the younger
• Competitive and              generation, if they cannot read things
                                about your company on the Web, you
 government pressures
                                    have very little credibility in their
• More monitoring                 eyes. … It is almost like they do not
                                   believe you unless they can read it
 organizations and
                                 for themselves and get comfort that
 watchdogs                          someone out there has blogged or
                                    given the issue the ‘Like’/thumbs
• Digitally enabled advocacy
                                                                    up.”
 groups
                                 —TIM FAVERI, director, sustainability and
                                        responsibility, Tim Hortons, Inc.

                                                                        THE END OF GOODWASHING
DRIVERS   (cont’d.)




• Consumer cynicism                       Facebook, Twitter and other social platforms
                                          have made it easy for anyone to become an
• Expectation of radical                  agent of social change. With a quick click,
                                          activists, watchdogs, thought leaders and
 transparency                             average Joes can disseminate their perspective
                                          to the masses, bringing varied points of view
• Reading the fine print                  to light and limiting an organization’s ability
                                          to gloss over less flattering facts.
• Social media
• Competitive and                      “We are being pushed by socially
 government pressures                    responsible investors and other
                               stakeholders to measure the ‘impact’ or
• More monitoring                  ‘outcomes’ of our social/community
 organizations and              programs. I think this will be a big area
 watchdogs                         of interest and focus in the next few
                                                                 years.”
• Digitally enabled advocacy       —TIM FAVERI, director, sustainability and
 groups                                   responsibility, Tim Hortons, Inc.



                                                                         THE END OF GOODWASHING
DRIVERS   (cont’d.)




• Consumer cynicism            Third-party organizations are making it easier
                               for people to find out more about individual
• Expectation of radical       charities and how they stack up.
 transparency
• Reading the fine print       Digital media is helping advocacy groups reach
                               a broader audience with messages about
• Social media                 avoiding brands that use offending ingredients,
                               unsavory labor practices and so on. With so
• Competitive and              much information out there, these groups help
 government pressures          simplify issues for consumers while pushing
                               corporations to keep it clean.
• More monitoring
 organizations and
 watchdogs
• Digitally enabled advocacy
 groups


                                                              THE END OF GOODWASHING
MANIFESTATIONS:EASIER-TO-DIGEST) LABELING AND REPORTING
               MORE (AND




Image credits: apple.com/environment; Patagonia.com/footprint; starbucks.com/responsibility   THE END OF GOODWASHING
BENEFIT CORPORATIONS TAKING A
          MANIFESTATIONS:
                       HOLISTIC APPROACH TO SOCIAL GOOD




           “The answer is not to play ‘gotcha’ at the back end. The answer is getting in front
                             of the problem and preventing situations in the first instance.”
           —TIM DELANEY, president, National Council of Nonprofits, “Can You Know Where Your Charity
                                                          Dollars Go? Not Easily,” npr.org, May 6, 2011




Image credits: Bcorporation.net                                                             THE END OF GOODWASHING
SIGNIFICANCE/RELEVANCE


It’s no longer enough to simply claim virtuous actions after some token efforts. As
consumers learn all they ever wanted to know about the impact of their donations,
volunteer efforts and cause-related purchases, brands and philanthropic organizations
will need to ensure their credentials are up to the scrutiny. This goes for internal
operations as well as partnerships. Better to acknowledge flaws in CSR programs and
business operations—along with plans on how these issues will be addressed—than to
be found out by watchdogs or engaged individuals and have reputations smeared
across the media.




                                                                         THE END OF GOODWASHING
POTENTIAL


    With consumers on high alert, claims must be solid: Consumers will see through
    “goodwashing” and similar practices. And transparency is essential too. It’s likely
    that simply being open will matter more to consumers than the specific information
    revealed.

    As more corporations spell out their CSR credentials and nonprofits more clearly
    illustrate their mission, it will become increasingly important to practice Visual
    Fluency—that is, convey complex information in an easily digestible way. People in
    today’s attention-scarce economy prefer a graphic synthesis of information to an
    avalanche of data and reading material.

    Watch for more businesses to follow the lead of companies like Best Buy, which is
    opening up a two-way dialogue about its CSR reporting; Patagonia, which divulges
    the shortcomings of its products in addition to their green credentials; and
    Starbucks, which lets consumers easily check the company’s progress toward self-
    imposed CSR goals. Such efforts will help companies differentiate themselves from
    the cacophony of CSR messaging.
 


                                                                              THE END OF GOODWASHING
POTENTIAL    (cont’d.)



Meanwhile, brands with the cleanest credentials can ramp up efforts to educate
consumers about why they should care and apply competitive pressure on
organizations that have been slow to adopt the “Do no evil” creed or are still
practicing old-school philanthropy.

Brands that don’t become more responsible for their social impact and act more
sustainably will lose ground.




                                                                        THE END OF GOODWASHING
THE RISE OF
SHARED VALUE
TREND


Rather than simply doling out checks to good causes, some corporations are starting
to shift their business models, integrating social issues into their core strategies.
The aim is to create shared value, a concept that reflects the growing belief that
generating a profit and achieving social progress are not mutually exclusive goals.
By reconsidering products and target demographics, forging partnerships with local
groups and improving productivity in the value chain, companies can become a
force for positive change while enhancing their long-term competitiveness.




                                                                           THE RISE OF SHARED VALUE
TREND    (cont’d.)


                “The concept of shared value can be defined as policies and operating
       practices that enhance the competitiveness of a company while simultaneously
advancing the economic and social conditions in the communities in which it operates.
 Shared value creation focuses on identifying and expanding the connections between
                                                     societal and economic progress.”
—MICHAEL E. PORTER and MARK R. KRAMER, “Creating Shared Value: How to reinvent capitalism—
 and unleash a wave of innovation and growth,” Harvard Business Review, January–February 2011



         “We have observed that companies that choose to take on a more
  proactive approach in the form of ‘social innovation’ are capturing much
   greater competitive advantage. This competitive advantage is rooted in
      an ability to create new products and services that deliver social and
      environmental impact alongside financial impact, gain access to new
   markets, engage and retain their internal talent, as well as build brand
                                            differentiation in the market.”
         — CHARMIAN LOVE, chief executive of social innovation consultancy Volans




                                                                                    THE RISE OF SHARED VALUE
DRIVERS


                               As businesses seek new sources of revenue in
• New opportunities in         emerging markets, they are coming to see
  emerging markets             that they can generate opportunities for
                               growth if they help to address some of the
• Pressure to cut costs and    endemic problems they find (for example, by
                               creating relevant products and services and
  carbon emissions             investing in sustainable manufacturing
                               processes). In Africa, for example, where an
• Blurring lines between       estimated 560 million people live without
  business, nonprofits and     electricity, new solar-powered technologies
                               offer a cheap way to provide families with
  government
                               lighting.
• Looming resource shortages   Companies are developing more sustainable,
                               low-cost manufacturing and transport
• Consumer expectations        practices as they seek ways to both reduce
                               costs and fall in line with pressures to cut
• The Millennial outlook       carbon emissions. These practices, and others
                               focused on stewarding natural resources, can
                               be both economical and effective, cutting
                               pollution and improving local living
                               conditions.


                                                                THE RISE OF SHARED VALUE
DRIVERS   (cont’d.)



                                  “We’ll see … a growing recognition
• New opportunities in          (at least among the most progressive
                                      companies) of the opportunities
  emerging markets
                                  associated with sustainability and a
• Pressure to cut costs and          greater commitment to creating
                                       ‘shared value’ for business and
  carbon emissions
                                society. In terms of implementation,
• Blurring lines between              partnerships are often essential
                               because of the complex nature of the
  business, nonprofits and
                                        challenges being addressed.”
  government
                                 —VANESSA EDWARDS, head of corporate
• Looming resource shortages                     responsibility, WPP

• Consumer expectations              In today’s globalized environment, demand
                                     for resources is growing exponentially, and
• The Millennial outlook             experts are sounding warnings about looming
                                     shortages. Corporations are trying to ensure
                                     the long-term viability of key resources by
                                     improving living conditions and providing
                                     communities with new, more sustainable
                                     technologies.
                                                                      THE RISE OF SHARED VALUE
DRIVERS   (cont’d.)




• New opportunities in
  emerging markets
• Pressure to cut costs and
  carbon emissions
• Blurring lines between
  business, nonprofits and
  government
• Looming resource shortages
• Consumer expectations
• The Millennial outlook




                               THE RISE OF SHARED VALUE
MANIFESTATIONS:
                RECONCEIVING PRODUCTS TO ADDRESS SOCIAL ISSUES


                                           Campbell’s Nourish: Distributed in Canadian
                                           groceries, Nourish is a single-serving can of soup
                                           designed to provide a complete daily serving of
                                           three key food groups at a low cost. Campbell’s
                                           considers the product both a commercial
                                           opportunity and a way to address hunger and food
                                           security issues. Campbell’s has developed
                                           partnerships with nonprofits such as the World Food
                                           Programme and local governments, and is
                                           considering rolling out Nourish in other markets.




          GE’s Vscan: GE started selling this
          smartphone-sized imaging tool, which
          brings ultrasound technology to                                                          Philips’ “Sustainable Energy Solutions for
          physicians’ pockets, in 2010. The                                                        Africa”: As part of this solar-focused effort,
          device has an hour’s worth of battery                                                    Philips is partnering with the Dutch government in
          life, allowing medics to diagnose                                                        a bid to provide affordable, sustainable energy
          patients in the field—most notably in                                                    solutions to some 10 million people across 10 sub-
          crisis zones where access to power is                                                    Saharan African nations by 2015. A cheap,
          limited—and along bedsides.                                                              lightweight solar reading light is designed to help
                                                                                                   children complete their homework at night or
                                                                                                   allow people to read in the evening.




Image credits: lighting.philips.com; Vscan Primary Care Online Brochure; youtube.com/CampellSoupCanada                   THE RISE OF SHARED VALUE
MANIFESTATIONS: RECONCEIVING SUPPLY CHAINS


     Marks & Spencer, “Plan A”: The British retailer Marks &
     Spencer has committed to the lofty goal of becoming the
     world’s most sustainable major retailer by 2015. The company
     reported that in 2010/2011, this ongoing initiative contributed
     to a net benefit of £70 million for M&S. Among other strategies,
     the retailer switched its delivery fleet to 50% bio-diesel fuel
     and implemented a “‘green’ business travel policy to reduce
     CO2 emissions caused” by travel. It is currently upgrading its
     refrigeration systems in stores, leading to a reduction in
     greenhouse gas emissions.




     Walmart’s fuel-efficient trucks: Walmart is working to double
     its truck efficiency by 2015 (based on a 2005 baseline),
     switching to fuel-efficient tires, recalibrating engines and
     adding aerodynamic elements to truck carriages. It has also
     replaced two-thirds of its nearly 7,000-truck fleet with fuel-
     efficient tractors and used detailed analysis to shorten its route
     network, by 49 million miles. In 2010, these initiatives helped
     the company cut its fuel costs and save almost 40,000 metric
     tons of CO2 emissions.




Image credits: plana.marksandspencer.com; Walmart Stores                  THE RISE OF SHARED VALUE
SIGNIFICANCE/RELEVANCE


By putting shared value at the center of their strategy, brands can benefit their
business, their customers and society in general. Companies should identify needs and
develop products, services and/or processes to meet them; invest in the charitable,
nonprofit and/or NGO space; and seek ways to reduce fuel consumption, which
reduces costs and emissions.

In the long term, these strategies can expand companies’ market presence, insulate
them from shocks in the supply chain and improve the way they are perceived by
consumers.




                                                                         THE RISE OF SHARED VALUE
POTENTIAL


There are more than 3 billion low-income consumers worldwide, according to
estimates by Nestlé, and as global population growth explodes, this number is set to
spike. By creating products and services to meet the needs of this segment, brands
have a huge opportunity to expand outside developed markets. And by investing in
emerging markets, brands can create a virtuous circle, where employed locals become
aspiring middle-class consumers.
Brands can innovate by scaling down existing offerings into lower-priced versions. GE’s
two-year-old Healthymagination project, for instance, which aims to lower the cost of
health care, has already birthed several economical devices. One example: The Brivo
DR-F, a digital X-ray machine with a space-saving design, costs 30% less than premium
systems and is also more energy efficient than typical film-imaging systems.




                                                                          THE RISE OF SHARED VALUE
POTENTIAL     (cont’d.)



Brands should consider how to best educate shareholders about the potential of these
kinds of ventures. This can be done by emphasizing the importance of a long-term
business strategy, highlighting learnings about new areas for product development and
making incremental changes to corporate practices. At the same time, expect a new
group of shared value auditors, which will develop new metrics that assess companies’
performances in terms of social impact and shared value generated.


                         “Shared value is not social responsibility, philanthropy, or even
  sustainability, but a new way to achieve economic success. It is not on the margin of
     what companies do but at the center. We believe that it can give rise to the next
                                             major transformation of business thinking.”
—MICHAEL E. PORTER and MARK R. KRAMER, “Creating Shared Value: How to reinvent capitalism—
 and unleash a wave of innovation and growth,” Harvard Business Review, January–February 2011




                                                                               THE RISE OF SHARED VALUE
CREATIVE URBAN
RENEWAL
TREND


Human environments will become increasingly important as the global population
becomes more urbanized over the next few decades and cities boom. Brands will
become key partners in enabling creative strategies for urban renewal—improving
local environments, adding beauty or helping to bring communities together.




                                                                        CREATIVE URBAN RENEWAL
DRIVERS



                              With cities booming, there’s never been a more
• Fastest urban boom in       pressing need to rethink them.
  history                     In the developing world, people are drawn to
                              new opportunities in urban centers, which are
• Government stagnation and   adding an average of 5 million people per
  lack of funding             month, according to UN-HABITAT. In Asia,
                              Foreign Policy estimates, about half the
• Empty retail space          population (1 billion people) will migrate from
                              the countryside to urban centers by 2030.
• Environmental concerns
                              Meanwhile, the U.S. is seeing “bright flight,”
                              with younger, educated Americans reversing
• DIY ethic                   the trend among their parents and grandparents
                              to leave cities for the suburbs; among first-time
• “We vs. me” mind-set        home buyers, 77% say they want to live in urban
                              areas.
• Brand involvement in
  community is expected



                                                                  CREATIVE URBAN RENEWAL
DRIVERS     (cont’d.)




• Fastest urban boom in
  history
• Government stagnation and
  lack of funding
• Empty retail space
• Environmental concerns
• DIY ethic
• “We vs. me” mind-set
• Brand involvement in
  community is expected



                              CREATIVE URBAN RENEWAL
DRIVERS     (cont’d.)




                              “The whole idea of dead retail space is
• Fastest urban boom in              pretty prevalent in the downturn.
                                    Artists used to go in and take over
  history
                                    warehouse spaces. Now warehouse
• Government stagnation and        spaces—at least in cities—are often
                                expensive. So maybe the next move is
  lack of funding
                                to take over some of these huge areas
• Empty retail space          of strip malls that are so inexpensive or
                               dead malls and create art studios. … A
• Environmental concerns      lot of what happens in art these days is
                                about appropriation, so if there was a
• DIY ethic                      way to rethink junk space and let the
                               community use that, without too much
• “We vs. me” mind-set          money or intervention, [brands] could
                              create an interesting place for [people]
• Brand involvement in            to go that’s sort of the anti-mall.” —
  community is expected         David Belt, executive director and founder
                               of Macro Sea, a development firm that uses
                                   everyday objects to create unexpected
                                                interactive urban projects

                                                                      CREATIVE URBAN RENEWAL
DRIVERS     (cont’d.)




                              Public awareness surrounding environmental
• Fastest urban boom in       degradation is leading many to rethink urban
  history                     spaces.

• Government stagnation and
  lack of funding
• Empty retail space
• Environmental concerns
• DIY ethic
• “We vs. me” mind-set
• Brand involvement in
  community is expected



                                                                CREATIVE URBAN RENEWAL
DRIVERS     (cont’d.)




                              There’s a growing belief in collectively driven
• Fastest urban boom in       positive change, both among professionals
  history                     (designers and architects, developers, urban
                              planners, etc.) and everyday folk driven to
• Government stagnation and   better their environs.

  lack of funding
• Empty retail space
• Environmental concerns
• DIY ethic
• “We vs. me” mind-set
• Brand involvement in
  community is expected



                                                              CREATIVE URBAN RENEWAL
MANIFESTATIONS: CREATIVITY BUBBLING UP




Image Credits: youtube.com/firmezatotalfilm; Antonia Wagner; inchernet.com; greenaid.co   CREATIVE URBAN RENEWAL
MANIFESTATIONS: URBANITES LEVERAGING DATA
                  TECHIE




                                                              “I believe this massive amount of data
                                                              that’s being generated can be used to
                                                                 better design cities, to build better
                                                           disease surveillance models, to do things
                                                           that ultimately are going to improve the
                                                                          lives of billions of people.”
                                                            —NATHAN EAGLE, founder and CEO, txteagle,
                                                                   which creates opportunities for mobile
                                                          subscribers in the developing world to generate
                                                                                  income via their phones
Image Credits: roadify.com; youtube.com/localprojects; seeclickfix.com                                      CREATIVE URBAN RENEWAL
MANIFESTATIONS: SUPPORTING URBAN RENEWAL
                  BRANDS




Image Credits: bizcommunity.com; Zolk               CREATIVE URBAN RENEWAL
BRANDS SUPPORTING URBAN RENEWAL (cont’d.)
         MANIFESTATIONS:




Image Credits: youtube.com/letcolour; youtube.com/KiaCanada   CREATIVE URBAN RENEWAL
MANIFESTATIONS:
                     BRANDS SUPPORTING URBAN RENEWAL         (cont’d.)




Image Credit: prnewswire.com; youtube.com/LevisReadyToWork               CREATIVE URBAN RENEWAL
MANIFESTATIONS:
                    GIVING NEW LIFE TO DEAD SPACE


                                                   “Just to put [your brand’s] name on
                                                   a banner isn’t so interesting, but to
                                                  take a leadership role where they’re
                                                         raising money for a community
                                                                        garden or where
                                                     they’re providing a creative space
                                                     for people to interact with—that’s
                                                  pretty empowering, because it gives
                                                                       people the tools.

                                                          “I feel [brands] don’t have to
                                                    accommodate that many people in
                                                   order to have a tremendous impact
                                                     and influence and get a pretty big
                                                   bang for their buck, because if they
                                                    have the right people in there, the
                                                    word really gets out and the ripple
                                                                         effect is felt.”
                                                       —DAVID BELT, executive director and
                                                  founder of Macro Sea, a development firm
                                                        that uses everyday objects to create
                                                      unexpected interactive urban projects
Image Credit: wastedspaces.org; iwishthiswas.cc                                          CREATIVE URBAN RENEWAL
MANIFESTATIONS
                     CORONA’S “SAVE THE BEACH” PROJECT
         :




Image Credit: jwt.com                                    CREATIVE URBAN RENEWAL
SIGNIFICANCE/RELEVANCE


Brands will be key partners in enabling creative strategies for renewal, taking local
CSR initiatives to the next level. Brands can show their creativity, innovative spirit
and community-mindedness by tapping into the “urban hack” mind-set.




                                                                             CREATIVE URBAN RENEWAL
POTENTIAL


At a time when CSR and more traditional marketing efforts are meshing, creative
urban renewal projects present ways for brands to both help
communities/neighborhoods and craft an image as innovative, original and cool.
These projects tend to be sustainable, fun, educational and interactive—key
areas/attributes for brands.




                                                                        CREATIVE URBAN RENEWAL
POTENTIAL     (cont’d.)



    With today’s “we vs. me” mind-set and DIY ethos, there is ample opportunity for
    brands to partner with professionals, residents and nonprofits to spearhead
    innovative ideas and solutions. By creating opportunities for active participation in
    the revitalization of a space, brands can further generate goodwill by giving
    citizens a sense of ownership over the project and pride in their achievements.


    Large corporations can also leverage their economic weight on behalf of
    communities and side with citizens to spur local government action.
 
    The efforts must be substantial: This movement has roots in anti-consumerist
    notions, and skeptical consumers will quickly smell empty gestures.


 




                                                                                CREATIVE URBAN RENEWAL
POTENTIAL      (cont’d.)




       “Unfortunately, we’re still in the phase of insincerity. The next
evolution of this is when some of those companies actually say, ‘Look,
       we need to do this because it makes great business sense for us,
           because it creates a meaningful environment in which to be
      employed.’ The more we push on creating change and improving
           quality of life for people through what we do best, which is
technologies and business models and investments, the more comes to
  us. And the more that comes to us, the more we can reinvest. And it
creates an acceleration of not only our business ethic and our business
        model and our business, but also it starts to have real tangible,
                                        measurable impacts on people.”
                                             —STEVE LEWIS, CEO and co-founder,
  Living PlanIT, which builds large integrated technology platforms for managing
                                                                  city operations




                                                                                    CREATIVE URBAN RENEWAL
RIPPING A PAGE FROM THE
FOR-PROFIT PLAYBOOK
TREND


  Nonprofit organizations are increasingly adopting for-profit tactics, fusing social
  consciousness with business acumen and focusing on achieving visible change. The
  shift from blanket or black-hole benevolence to targeted giving and venture
  philanthropy places more emphasis on cause and effect, measurable results and
  return on investment.




   In the next few years, CSR and social change initiatives will evolve “from
traditional development models of aid provided with an undetermined end-
      game for sustainability to a business-plan approach with a quantifiable
           baseline, benchmarks, outcomes and timeline for sustainability.”
                  —WALKER MORRIS, Malawi country executive, Clinton Foundation




                                                               RIPPING A PAGE FROM THE FOR-PROFIT PLAYBOOK
DRIVERS



                                With more organizations vying for less money,
                                nonprofits need impressive numbers to get
                                the attention of donors and show why they’re
                                the better investment.

                                Since private donations, grants and
                                government funding often carry stipulations
                                as to how they can be used, nonprofits are
• A race for funding            increasingly looking for ways to develop their
                                autonomy. By creating steady self-generated
• Desire for self-sufficiency   revenue streams, they gain the flexibility and
                                security needed to allocate funds as they see
• Donor insistence on results   fit.

                                Today’s well-informed consumers expect
                                total transparency from the nonprofits they
                                support: They want to know not only how
                                funds are spent but also exactly what kind of
                                impact those funds are making.




                                                 RIPPING A PAGE FROM THE FOR-PROFIT PLAYBOOK
MANIFESTATIONS: IN PUBLIC-PRIVATE PARTNERSHIPS
                      SURGE

               Walmart and Treasure Coast Food Bank: In 2009, Florida-based
               Treasure Coast Food Bank leveraged Walmart’s famed logistical
               expertise to determine how to deliver more meals each week
               with their existing resources. Members of the Walmart
               distribution team helped the food bank build its warehousing
               capabilities, improve storage and more rapidly sort food; they
               also developed new truck routes to facilitate more frequent
               food deliveries. The food bank was able to increase its culinary
               partners from 140 to 200 and doubled the number of meals it
               serves weekly.




         IBM and Turkish nonprofit Toplum Gönüllüleri Vakfı: In
         Turkey, IBM volunteers partnered with the educational
         nonprofit Toplum Gönüllüleri Vakfı (Community Volunteers
         Foundation), using the company’s “Share project management
         skills” solution to help develop and teach a children’s literacy
         program. This and similar efforts are coordinated via IBM’s On           Micro-volunteering: A new crop of organizations connects
         Demand Community portal, which allows IBM volunteers to                  skilled volunteers with nonprofits in need of relevant services,
         combine their skills and IBM’s technology. Since its 2003 launch,        such as logo design, accounting help or membership
         170,000 IBM employees have logged more than 12 million hours             development strategies. Examples include Catchafire and
         of volunteer service via the site.                                       Sparked, both for-profits, and the nonprofit Taproot
                                                                                  Foundation.
Image credits: facebook.com/walmart; stophunger.org; sparked.com; tog.org.tr                         RIPPING A PAGE FROM THE FOR-PROFIT PLAYBOOK
MANIFESTATIONS: IN PUBLIC-PRIVATE PARTNERSHIPS
                     SURGE




                 HP and mothers2mothers: As part of a new partnership with mothers2mothers—a South African group that works to
                 prevent HIV-positive mothers from transmitting the virus to their children—HP is using its database, cloud and mobile
                 technologies to digitize the organization’s patient records. This will allow mothers2mothers to share patient information
                 across regions, helping counselors provide better education and support services, and eventually enable staff to collect
                 and share basic data via mobile phones.

Image credits: m2m.org                                                                                RIPPING A PAGE FROM THE FOR-PROFIT PLAYBOOK
MANIFESTATIONS: SURGE IN SOCIAL ENTERPRISES




            Me to We: Harnessing for-profit strategies to achieve socially      Breadpig: This organization sells products such as magnets,
            responsible objectives, this retailer was launched by the           clothing and posters at a profit then donates the proceeds to its
            founders of Free the Children with the sole purpose of creating     nonprofit “allies,” which include Room to Read and the San
            a steady revenue stream for the charity. It sells environmentally   Francisco SPCA. One of its objectives is to forge long-term
            friendly and socially conscious apparel, self-empowerment           relationships that include collaborative projects. Since it was
            books and music, and also coordinates adventure travel trips,       founded in 2008, Breadpig has raised and donated more than
            donating half the profits to Free the Children and investing the    $186,000.
            other half back into the business. In 2010, Me to We donated $1
            million in cash and in-kind contributions.




Image credits: metowe.com; youtube.com/MeToWe; breadpig.com                                      RIPPING A PAGE FROM THE FOR-PROFIT PLAYBOOK
MANIFESTATIONS: VENTURE PHILANTHROPY FUNDS




           Acumen Fund: Acumen provides loans or equity—but not grants—that typically range from $300,000 to $2.5 million, describing this
           funding as “patient capital.” To be eligible for support, organizations must provide low-income consumers with access to water,
           health care, housing, agricultural inputs or alternative energy. In 2007, for example, Acumen invested in Jamii Bora, a Kenyan
           microfinance organization that supported the construction of 750 low-income homes outside Nairobi; the organization repaid in full by
           2010.


Image credit: acumenfund.org                                                                         RIPPING A PAGE FROM THE FOR-PROFIT PLAYBOOK
SIGNIFICANCE/RELEVANCE


Nonprofits and other socially focused efforts will need more than good intentions to
stay viable as supporters seek measurable change. Indeed, with the rise of social
enterprises such as Me to We and Breadpig, we’ll see a more open-minded attitude
toward the means that organizations use to achieve their ends, as long as that means
real-world impact.




                                                          RIPPING A PAGE FROM THE FOR-PROFIT PLAYBOOK
POTENTIAL


We’ll see more partnerships and collaborations between for- and nonprofits,
allowing charities to leverage considerable resources. Organizations can even
outsource the implementation of a project while handling the rest of the
responsibilities. ColaLife, for example, turned to Coca-Cola to help in its mission to
deliver hydration packs to impoverished communities in developing countries, since
the company has one of the world’s most advanced distribution networks. ColaLife
manufactures the packs and prepares them for shipping, while Coca-Cola aids the
cause by providing access to its distribution network; the scheme is being tested in
Zambia.

Such relationships offer benefits to both parties: brands can earn CSR points (at a
relatively low cost, in some cases), while nonprofits become more efficient and
effective.




                                                             RIPPING A PAGE FROM THE FOR-PROFIT PLAYBOOK
THE GLOBAL DO-GOOD
GENERATION
WHO ARE THE MILLENNIALS?


    Millennials strive to be active and engaged in their world. A globally minded cohort,
    they’re already taking on today’s biggest issues, tackling them with an
    entrepreneurial mind-set, a “we vs. me” mentality, a belief in large-scale
    collaboration and an optimistic, can-do spirit.
    This generation—born between 1978 and 2000—is uniquely motivated to make a
    difference: They want to improve society but without compromising personal
    aspirations; do good, the thinking goes, and the personal benefits will follow. And
    as so-called digital natives, they’re uniquely equipped to make a difference: They
    have the tech savvy to create innovative solutions and to organize on a scale never
    before possible. And then there’s the sheer size of this generation: some 78 million
    individuals in the U.S. alone.

    “For the generation coming up now, there is a much stronger optimism
               and a much bigger desire to do well while also doing good.”
     —ALEXIS OHANIAN, co-founder of Reddit and founder of Breadpig, a U.S.-based
     social enterprise that sells geeky products and donates the profits to nonprofit
                                                                       organizations




                                                                                  THE GLOBAL DO-GOOD GENERATION
THE FIRST “GLOBAL GENERATION”




                  Another key factor is that they’re the first “global generation,” with
                  more overlapping values and shared experiences than any before them,
                  thanks to globalization and the communication technology revolution.
                  They are more likely than their elders to identify with and embrace
                  people and cultures beyond their own borders.

Image credits: tigweb.org                                                     THE GLOBAL DO-GOOD GENERATION
TECHNOLOGY-ENABLED ACTIVISTS




        Technology enables young people to swap ideas, connect with like-minded individuals
        across borders and organize events. And social media helps to push social causes into
        the mainstream of Millennial consciousness: “Liking” a cause on Facebook or tweeting
        about injustice helps define who you are and what you believe in. (Although the verdict
        is still out as to whether this “activism-light” translates into any meaningful real-world
        change.) There are even social networks based around the idea of social good, like
        TakingITGlobal, which has more than 340,000 members working in nonprofits
        worldwide, and KooDooZ.com, a kids network. Nearly nine in 10 Millennials we surveyed
        acknowledged that they have the communication tools to make a huge difference in the
        world.
Image credit: causes.com                                                      THE GLOBAL DO-GOOD GENERATION
MARKETING SOCIAL GOOD TO MILLENNIALS


Marketers can tap into this spirit by creating movements around their CSR efforts
and calling on Millennials for ideas. Brands and philanthropic organizations should
enable these hands-on consumers to show passion for and engagement with the
relevant cause or campaign. This means giving up a certain measure of control,
letting local groups organize and create excitement, or outsourcing tasks. Empower
Millennials with tools for involvement in a cause, helping them to spread their
engagement by incentivizing social media posts.

        “[Doing good] has become part of the Millennial DNA, and this
 generation is the driving force behind social change initiatives. Smart
brands have recognized this and have started to tap into the power of
this generation and the power of social change mapped to their brand
   identity as an important part of their business model and profits.”
                           —KRISTINE SHINE, vice president, PopSugar Media




                                                                       THE GLOBAL DO-GOOD GENERATION
THE GLOBAL DO-GOOD GENERATION




                                THE GLOBAL DO-GOOD GENERATION
THINGS TO WATCH
IN SOCIAL GOOD
THINGS TO WATCH: BUY ONE, GIVE ONE AWAY




Image credits: sirrichards.com; betterworldbooks.com; warbyparker.com   THINGS TO WATCH IN SOCIAL GOOD
THINGS TO WATCH:GAMING FOR SOCIAL GOOD


                                                                            Philanthropic organizations are
                                                                            increasingly using gaming mechanics as
                                                                            a way to engage people in a cause and
                                                                            build communities of like-minded
                                                                            supporters. This is a manifestation of
                                                                            one of our 10 Trends for 2011, All the
         Tearfund: This platform, which provides financial and
                                                                            World’s a Game.
         developmental support to impoverished communities in the
         developing world, is developing a game-based smartphone app
         in an attempt to engage more young people. The platform will       Game-based schemes offer an
         reward supporters for their involvement and allow them to          inventive way to drive donations and
         share this with other users via social networking tools. The aim
         is to make engaging with the U.K.-based charity more               improve long-term commitment to a
         interesting and enjoyable, and help build long-lasting
         relationships with supporters.
                                                                            cause, making participation more
                                                                            interactive and rewarding.
                                                                            More than 4 in 10 of our survey
                                                                            respondents said a rewards-based
                                                                            mechanism is a good way to get people
                                                                            involved in a cause.



Image credit: tearfund.org                                                                          THINGS TO WATCH IN SOCIAL GOOD
THINGS TO WATCH:GAMING FOR SOCIAL GOOD    (cont’d.)




                                Gamification also enables people to
                                view their standing in real time and
                                compare this with peers’. In
                                broadcasting their behaviors online,
                                people are consciously or
                                unconsciously engaging in social one-
                                upmanship—“I’m more witty, worldly,
                                in-the-know, on-the-go, etc., than
                                you.”
                                This is particularly the case with the
                                hyper-social Millennials.




                                                         THINGS TO WATCH IN SOCIAL GOOD
THINGS TO WATCH:GAMING FOR SOCIAL GOOD                                        (cont’d.)




         AOK: Founded in early 2011, AOK is a platform that aims to        Playtogive: This enterprise provides nonprofits with a platform
         increase acts and observations of kindness through competitive    to create online games. Players can highlight in-game
         elements such as scoring systems, leader boards and real-world    accomplishments and solicit sponsorship from friends. The
         rewards. Every time participants perform a good deed (anything    website displays individuals’ scores and allows them to share
         from lending a car to a friend to donating old clothes), they     these with their social graph. Players who garner the most
         create a log of it using their smartphone and upload it to AOK    donations or sponsors are nominated as “All Stars” and ranked
         with pictures and descriptions. To challenge users to check on    on the site’s “Champions” page.
         each other, players also get points for observing and reporting
         acts of kindness. AOK converts points into real-world donations
         to charities, and players have chances to win brand-sponsored
         prizes along the way. Users have a tally that updates in real
         time, and they’re encouraged to compare it with others.



        “People really like that their efforts are getting rewarded instantly, so
           what we are hoping to do is provide people with an incentive in the
         form of gaming that literally translates into an impact immediately.”
                                                                                   —IRA LISS, CEO, AOK



Image credits: aok.tv; playtogive.com                                                                         THINGS TO WATCH IN SOCIAL GOOD
THINGS TO WATCH:GAMING FOR SOCIAL GOOD                                               (cont’d.)




         DailyFeats: Another points-based system for social good, Web-      Conspiracy for Good: Nokia sponsored this real-life game that
         based DailyFeats partners with brands to offer coupons and         incorporated the company’s augmented reality software in
         other incentives to participants (currently, more than 129,000     partnership with the organization Room to Read, which tackles
         local discounts and rewards are available in North America). As    illiteracy in Africa and Asia. As part of the game, conducted in
         with AOK, participants can tag or categorize their “feats,” then   spring 2010, participants played activists and supporters of a
         upload them to the DailyFeats social graph. Marketers can          secret organization called Conspiracy for Good, completing
         create promotions tailored to specific actions. For example, in    tasks using Nokia smartphones and other devices. Nokia
         August, as part of an anti-bullying campaign, MTV encouraged       reported more than 900,000 worldwide downloads of the
         people to be more inclusive and supportive by offering points      game’s app and a community of more than 4,000 dedicated
         for anti-bullying actions (such as standing up to bullies); the    users. At the culmination of the game, five libraries were
         more points players accumulated, the closer they came to           established in Zambia and 50 girls were provided with one year
         wining prizes, such as an invitation to MTV’s Video Music          of schooling.
         Awards.




Image credits: dailyfeats.com/partner/mtv; conversations.nokia.com/                                                  THINGS TO WATCH IN SOCIAL GOOD
BEYOND SLACKTIVISM:
          THINGS TO WATCH:
                      INCENTIVIZING ONLINE ENGAGEMENT




Image credits: Dosomething.org; jcp.cf.cdn.virtue.com/afterschool; trojanvideos.com/help_donate   THINGS TO WATCH IN SOCIAL GOOD
THINGS TO WATCH: CHANNEL INNOVATION: MOBILE
                    DONATION

                                                                             QR code donations: Smart
                                                                            nonprofits and brands are taking
                                                                            advantage of QR codes to encourage
                                                                            donations—for example, Macy’s
                                                                            partnership with DoSomething.org .
                                                                            In pedestrian-heavy New York, the
                                                                            local nonprofit City Harvest places
                                                                            QR codes on phone booth and bus
                                                                            shelter billboards. The code brings
                                                                            interested passersby to a simple page
                                                                            featuring videos explaining “how City
        SMS donations: Back in 2004, following the Asian tsunami, U.S.      Harvest helps feed hungry New
        mobile users generated $200,000 through text-based donations.       Yorkers” and other aspects of their
        In the seven years since, this channel has become mainstream,       work, with links to donate online or
        with the Red Cross pulling in $4.5 million from text donations in   over the phone.
        response to the earthquake and tsunami in Japan. Last May,
        Vodafone U.K. and online donation platform JustGiving
        launched a program that allows smaller nonprofits to set up                           Donation apps: In-app donations remove
        text-based donation campaigns for free. In less than two                              the extra layer of going to a website. In
        months, more than 8,000 charities had signed up for the                               the wake of the earthquake and tsunami
        service.                                                                              in Japan, SoftBank created an app to help
                                                                                              collect funds for disaster relief. And late
                                                                                              last year, Oxfam International partnered
                                                                                              with Nokia on “Oxfam Donate,” an app
                                                                                              that spotlights the charity’s work on five
                                                                                              projects around the world, with progress
                                                                                              reports and fundraising levels, and an easy
                                                                                              way to donate directly to any of them. In
                                                                                              some markets however, such as the U.S.
                                                                                              and U.K., Apple bans donation apps for
                                                                                              iPhones.

Image credits: justgiving.com; blog.ovi.com; penn-olson.com                                                    THINGS TO WATCH IN SOCIAL GOOD
DONATION CHANNEL INNOVATION:
         THINGS TO WATCH:
            CONTACTLESS PAYMENTS, TV DONATIONS, ATM DONATIONS




       Contactless Payments: As the notion of cashless societies grows
       closer to reality, we’ll see innovative ideas that allow people to   TV Donations: Nonprofits are turning Internet-enabled
       make quick electronic donations on the street. Last year             televisions into a channel for giving. In May, Dish Network—a
       Barclays promoted its contactless technology in London with a        satellite service in the U.S.—launched on-demand channels such
       street performer who accepted only card-based donations for          as “Donate Storm Relief” and “Donate to Japan Here,” allowing
       Help a London Child on a specially designed guitar.                  viewers with Web-connected TVs to contribute by clicking a
                                                                            remote-control button. After following on-screen instructions,
                                                                            customers can add a $5 donation to their monthly bill. A
                                                                            similar technology has existed in the U.K. for over a decade.
                                                                            While customers currently need an Internet connection to make
       ATM Donations: This convenient                                       donations, expect this kind of mechanism to become more
       method of giving, already a familiar                                 popular as 4G and other untethered technologies help to drive
       practice in places including Mexico                                  set-top-based giving.
       and Colombia, is expanding to more
       markets such as the U.S. and U.K.




Image credits: newsroom.barclays.com; DaGoaty; Aranami                                                     THINGS TO WATCH IN SOCIAL GOOD
DONATION CHANNEL INNOVATION:
          THINGS TO WATCH:
                      NEW WAYS TO COLLECT COINS




                                                                                   
             Cruz Roja Mexicana, “Your Help Can Keep Us Going”:                       UNICEF, “Change for Haiti”: In 2010, Unicef was focused on
             The 2010 national fundraising drive for Cruz Roja Mexicana (the          raising awareness and funds to help rebuild Haiti after its
             Mexican Red Cross) demonstrated that each coin can make a                devastating earthquake; one big issue facing Haitians was the
             difference while providing the donor with a fun experience. Coin-        scarcity of clean water. Unicef believed the reason people
             operated kiddie rides, shaped like ambulances, helicopters and           often fail to donate is that they just don’t get around to it—
             boats, each featuring the Red Cross logo, served as collection           donating is too involved and time-consuming. So in Spain, JWT
             boxes. The campaign, from JWT Mexico City, helped increase               Madrid created an almost effortless way to give, labeling one
             donations to Cruz Roja Mexicana by 23% in 2010, despite the deep         button on vending machines “Agua para Haiti” (Water for
             recession that year, and won silver and bronze Lions at the Cannes       Haiti). People could press it to donate their change in a quick
             Lions festival. In 2011, a new iteration, “Your Coin Saves Lives,”       and direct way, helping to provide Haitians with water as they
             involved coin-operated claw machines that allowed people to              were purchasing their own beverage. Within the campaign’s
             “rescue” a doll inside from various catastrophes. Donations              first week, one in three vending customers was donating their
             increased 7.5% over 2010, and people learned that even their             change and the campaign has since inspired imitations all over
             small donations could make an impact.                                    the world.



Image credits: jwt.com                                                                                               THINGS TO WATCH IN SOCIAL GOOD
CASE STUDIES
CASE STUDIES: & JERRY’S, FAIR TWEETS
                     BEN




Image credit: fairtweets.com                     CASE STUDIES
CASE STUDIES: BRANDAID PROJECT




Image credits: brandaidproect.com; macys.com   CASE STUDIES
GARNIERSTUDIES: TIMES OF INDIA, TAKE CARE, TAKE CHARGE
      CASE AND THE




Image credit: takecaretakecharge.in                          CASE STUDIES
CASE STUDIES:
                  MIRACLE WHIP, MIRACLE MACHINE




Image credits: facebook.com/WhippingUpMiracles    CASE STUDIES
CASE STUDIES:
                FOR-PROFIT CHAINS, NONPROFIT STORES




Image credits: puroticorico; twitpic.com/67866e; treasureandbond.com   CASE STUDIES
CASE STUDIES: TIDE, LOADS OF HOPE




Image credits: tide.com                       CASE STUDIES
CASE STUDIES:
           HUMAN RIGHTS WATCH, “BEHIND BARS IN BURMA”




Image credits: youtube.com/JWTNewYork; jwt.com          CASE STUDIES
CASE STUDIES:TOYOTA, IDEAS FOR GOOD




Image credits: youtube.com/ToyotaUSA; yourideasforgood.com   CASE STUDIES
APPENDIX
LEARN MORE ABOUT OUR
EXPERTS & INFLUENCERS
DAVID BELT, executive director and
founder, Macro Sea




                                     APPENDIX: LEARN MORE ABOUT OUR EXPERTS AND INFLUENCERS
NATHAN EAGLE, founder and CEO, txteagle




                                          APPENDIX: LEARN MORE ABOUT OUR EXPERTS AND INFLUENCERS
VANESSA EDWARDS, head of
corporate responsibility, WPP




                                APPENDIX: LEARN MORE ABOUT OUR EXPERTS AND INFLUENCERS
TIM FAVERI, director, sustainability
and
responsibility, Tim Hortons, Inc.




                                       APPENDIX: LEARN MORE ABOUT OUR EXPERTS AND INFLUENCERS
KIM FINN, vice president and managing
director, EthosJWT, Toronto




                                        APPENDIX: LEARN MORE ABOUT OUR EXPERTS AND INFLUENCERS
STEVE LEWIS, CEO and co-founder, Living
PlanIT




                                          APPENDIX: LEARN MORE ABOUT OUR EXPERTS AND INFLUENCERS
IRA LISS, CEO and co-founder,
AOK




                                APPENDIX: LEARN MORE ABOUT OUR EXPERTS AND INFLUENCERS
CHARMIAN LOVE, chief executive, Volans




                                         APPENDIX: LEARN MORE ABOUT OUR EXPERTS AND INFLUENCERS
YAO-HUI HUANG, CEO, Win4Causes




                                 APPENDIX: LEARN MORE ABOUT OUR EXPERTS AND INFLUENCERS
WALKER MORRIS, Malawi country executive,
Clinton Foundation




                                           APPENDIX: LEARN MORE ABOUT OUR EXPERTS AND INFLUENCERS
ALEXIS OHANIAN, co-founder, Reddit;
founder, Breadpig




                                      APPENDIX: LEARN MORE ABOUT OUR EXPERTS AND INFLUENCERS
MILTON PEDRAZA, CEO, Luxury
Institute




                              APPENDIX: LEARN MORE ABOUT OUR EXPERTS AND INFLUENCERS
TONY PIGOTT, president and CEO, JWT Canada;
global director, EthosJWT; co-founder, Brandaid
Project




                                           APPENDIX: LEARN MORE ABOUT OUR EXPERTS AND INFLUENCERS
KRISTINE SHINE, vice president, PopSugar
Media




                                           APPENDIX: LEARN MORE ABOUT OUR EXPERTS AND INFLUENCERS
ADDITIONAL CHARTS
FIGURE 1B: RISE OF CONSUMER CYNICISM AND
EXPECTATION FOR TRANSPARENCY (U.S.)




                                           APPENDIX: ADDITIONAL CHARTS
FIGURE 1C: RISE OF CONSUMER CYNICISM AND
EXPECTATION FOR TRANSPARENCY (U.K.)




                                           APPENDIX: ADDITIONAL CHARTS
FIGURE 1D: RISE OF CONSUMER CYNICISM AND
EXPECTATION FOR TRANSPARENCY (CAN)




                                           APPENDIX: ADDITIONAL CHARTS
FIGURE 2B: CONSUMER EXPECTATION FOR
RESPONSIBLE BUSINESS (U.S.)




                                      APPENDIX: ADDITIONAL CHARTS
FIGURE 2C: CONSUMER EXPECTATION FOR
RESPONSIBLE BUSINESS (U.K.)




                                      APPENDIX: ADDITIONAL CHARTS
FIGURE 2D: CONSUMER EXPECTATION FOR
RESPONSIBLE BUSINESS (CAN)




                                      APPENDIX: ADDITIONAL CHARTS
FIGURE 3B: CONSUMER DESIRE FOR BRAND
INVOLVEMENT IN LOCAL COMMUNITY (U.S.)




                                        APPENDIX: ADDITIONAL CHARTS
FIGURE 3C: CONSUMER DESIRE FOR BRAND
INVOLVEMENT IN LOCAL COMMUNITY (U.K.)




                                        APPENDIX: ADDITIONAL CHARTS
FIGURE 3D: CONSUMER DESIRE FOR BRAND
INVOLVEMENT IN LOCAL COMMUNITY (CAN)




                                       APPENDIX: ADDITIONAL CHARTS
FIGURE 3E: CONSUMERS WANT THEIR VOICES
HEARD IN LOCAL DECISION MAKING (U.S., U.K.,
CAN)




                                              APPENDIX: ADDITIONAL CHARTS
FIGURE 3F: CONSUMERS WANT THEIR VOICES
HEARD IN LOCAL DECISION MAKING (U.S.)




                                         APPENDIX: ADDITIONAL CHARTS
FIGURE 3G: CONSUMERS WANT THEIR VOICES
HEARD IN LOCAL DECISION MAKING (U.K.)




                                         APPENDIX: ADDITIONAL CHARTS
FIGURE 3H: CONSUMERS WANT THEIR VOICES
HEARD IN LOCAL DECISION MAKING (CAN)




                                         APPENDIX: ADDITIONAL CHARTS
FIGURE 4C: THE GLOBAL DO-GOOD
GENERATION (U.S., U.K., CAN)




                                APPENDIX: ADDITIONAL CHARTS
FIGURE 4C: THE GLOBAL DO-GOOD
GENERATION (CAN)




                                APPENDIX: ADDITIONAL CHARTS
THANK YOU




Ann M. Mack                                         Tony Pigott                                          Jessica Vaughn
Director of Trendspotting                 President and CEO, JWT Canada;                               Trends Strategist
JWT Worldwide                                Global Director, EthosJWT                                  JWTIntelligence
ann.mack@jwt.com                                     EthosJWT                                  jessica.vaughn@jwt.com
@annmmack                                       tony.pigott@jwt.com                                       @jess_vaughn

             WWW.JWT.COM | WWW.JWTINTELLIGENCE.COM | WWW.ANXIETYINDEX.COM | WWW.ETHOSJWT.COM


                                     © 2011 J. Walter Thompson Company. All Rights Reserved.

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The Rise of Shared Value

  • 1. SOCIAL GOOD SEPTEMBER 2011
  • 2. WHAT WE’LL COVER Background and Methodology The End of Goodwashing The Rise of Shared Value Creative Urban Renewal Ripping a Page from the For-Profit Playbook The Global Do-Good Generation Things to Watch: • Buy One, Give One Away • Gaming for Social Good • Beyond Slacktivism: Incentivizing Online Engagement • Donation Channel Innovation Case Studies Appendix • Learn More About Our Experts and Influencers • Additional Charts SOCIAL GOOD
  • 3. METHODOLOGY JWT’s “Social Good” report is the result of quantitative, qualitative and desk research conducted by JWTIntelligence in partnership with EthosJWT, a unit specializing in brand strategy, ideas and activation for social change and societal benefit. JWTIntelligence and EthosJWT interviewed experts and influencers from the nonprofit and corporate social responsibility sectors and conducted quantitative surveys in the U.S., the U.K. and Canada. The surveys used SONAR™, JWT’s proprietary online tool, to poll 908 adults aged 18-plus from June 28-July 6, 2011.   SOCIAL GOOD
  • 4. INFLUENCERS/EXPERTS SOCIAL GOOD
  • 6. TREND Cynical and savvy, today’s consumers expect greater accountability from nonprofits as well as brands involved in cause marketing—e.g., exactly where the money is going and what impact it’s having. More transparency will mean more focus on effecting real change and less “goodwashing.” THE END OF GOODWASHING
  • 7. DRIVERS • Consumer cynicism • Expectation of radical transparency • Reading the fine print • Social media “Brands are becoming far • Competitive and more discerning about who to government pressures cooperate with in terms of institutions. Madonna had a problem • More monitoring with her charity, and so did Oprah. So organizations and before brands step in to sponsor a watchdogs charity, it has to have impeccable credentials, have substance.” • Digitally enabled advocacy —MILTON PEDRAZA, CEO, Luxury Institute groups THE END OF GOODWASHING
  • 8. DRIVERS (cont’d.) • Consumer cynicism • Expectation of radical transparency • Reading the fine print • Social media • Competitive and government pressures • More monitoring organizations and watchdogs • Digitally enabled advocacy groups THE END OF GOODWASHING
  • 9. DRIVERS (cont’d.) • Consumer cynicism • Expectation of radical transparency • Reading the fine print • Social media “My sense is that, with the younger • Competitive and generation, if they cannot read things about your company on the Web, you government pressures have very little credibility in their • More monitoring eyes. … It is almost like they do not believe you unless they can read it organizations and for themselves and get comfort that watchdogs someone out there has blogged or given the issue the ‘Like’/thumbs • Digitally enabled advocacy up.” groups —TIM FAVERI, director, sustainability and responsibility, Tim Hortons, Inc. THE END OF GOODWASHING
  • 10. DRIVERS (cont’d.) • Consumer cynicism Facebook, Twitter and other social platforms have made it easy for anyone to become an • Expectation of radical agent of social change. With a quick click, activists, watchdogs, thought leaders and transparency average Joes can disseminate their perspective to the masses, bringing varied points of view • Reading the fine print to light and limiting an organization’s ability to gloss over less flattering facts. • Social media • Competitive and “We are being pushed by socially government pressures responsible investors and other stakeholders to measure the ‘impact’ or • More monitoring ‘outcomes’ of our social/community organizations and programs. I think this will be a big area watchdogs of interest and focus in the next few years.” • Digitally enabled advocacy —TIM FAVERI, director, sustainability and groups responsibility, Tim Hortons, Inc. THE END OF GOODWASHING
  • 11. DRIVERS (cont’d.) • Consumer cynicism Third-party organizations are making it easier for people to find out more about individual • Expectation of radical charities and how they stack up. transparency • Reading the fine print Digital media is helping advocacy groups reach a broader audience with messages about • Social media avoiding brands that use offending ingredients, unsavory labor practices and so on. With so • Competitive and much information out there, these groups help government pressures simplify issues for consumers while pushing corporations to keep it clean. • More monitoring organizations and watchdogs • Digitally enabled advocacy groups THE END OF GOODWASHING
  • 12. MANIFESTATIONS:EASIER-TO-DIGEST) LABELING AND REPORTING MORE (AND Image credits: apple.com/environment; Patagonia.com/footprint; starbucks.com/responsibility THE END OF GOODWASHING
  • 13. BENEFIT CORPORATIONS TAKING A MANIFESTATIONS: HOLISTIC APPROACH TO SOCIAL GOOD “The answer is not to play ‘gotcha’ at the back end. The answer is getting in front of the problem and preventing situations in the first instance.” —TIM DELANEY, president, National Council of Nonprofits, “Can You Know Where Your Charity Dollars Go? Not Easily,” npr.org, May 6, 2011 Image credits: Bcorporation.net THE END OF GOODWASHING
  • 14. SIGNIFICANCE/RELEVANCE It’s no longer enough to simply claim virtuous actions after some token efforts. As consumers learn all they ever wanted to know about the impact of their donations, volunteer efforts and cause-related purchases, brands and philanthropic organizations will need to ensure their credentials are up to the scrutiny. This goes for internal operations as well as partnerships. Better to acknowledge flaws in CSR programs and business operations—along with plans on how these issues will be addressed—than to be found out by watchdogs or engaged individuals and have reputations smeared across the media. THE END OF GOODWASHING
  • 15. POTENTIAL With consumers on high alert, claims must be solid: Consumers will see through “goodwashing” and similar practices. And transparency is essential too. It’s likely that simply being open will matter more to consumers than the specific information revealed. As more corporations spell out their CSR credentials and nonprofits more clearly illustrate their mission, it will become increasingly important to practice Visual Fluency—that is, convey complex information in an easily digestible way. People in today’s attention-scarce economy prefer a graphic synthesis of information to an avalanche of data and reading material. Watch for more businesses to follow the lead of companies like Best Buy, which is opening up a two-way dialogue about its CSR reporting; Patagonia, which divulges the shortcomings of its products in addition to their green credentials; and Starbucks, which lets consumers easily check the company’s progress toward self- imposed CSR goals. Such efforts will help companies differentiate themselves from the cacophony of CSR messaging.   THE END OF GOODWASHING
  • 16. POTENTIAL (cont’d.) Meanwhile, brands with the cleanest credentials can ramp up efforts to educate consumers about why they should care and apply competitive pressure on organizations that have been slow to adopt the “Do no evil” creed or are still practicing old-school philanthropy. Brands that don’t become more responsible for their social impact and act more sustainably will lose ground. THE END OF GOODWASHING
  • 18. TREND Rather than simply doling out checks to good causes, some corporations are starting to shift their business models, integrating social issues into their core strategies. The aim is to create shared value, a concept that reflects the growing belief that generating a profit and achieving social progress are not mutually exclusive goals. By reconsidering products and target demographics, forging partnerships with local groups and improving productivity in the value chain, companies can become a force for positive change while enhancing their long-term competitiveness. THE RISE OF SHARED VALUE
  • 19. TREND (cont’d.) “The concept of shared value can be defined as policies and operating practices that enhance the competitiveness of a company while simultaneously advancing the economic and social conditions in the communities in which it operates. Shared value creation focuses on identifying and expanding the connections between societal and economic progress.” —MICHAEL E. PORTER and MARK R. KRAMER, “Creating Shared Value: How to reinvent capitalism— and unleash a wave of innovation and growth,” Harvard Business Review, January–February 2011 “We have observed that companies that choose to take on a more proactive approach in the form of ‘social innovation’ are capturing much greater competitive advantage. This competitive advantage is rooted in an ability to create new products and services that deliver social and environmental impact alongside financial impact, gain access to new markets, engage and retain their internal talent, as well as build brand differentiation in the market.” — CHARMIAN LOVE, chief executive of social innovation consultancy Volans THE RISE OF SHARED VALUE
  • 20. DRIVERS As businesses seek new sources of revenue in • New opportunities in emerging markets, they are coming to see emerging markets that they can generate opportunities for growth if they help to address some of the • Pressure to cut costs and endemic problems they find (for example, by creating relevant products and services and carbon emissions investing in sustainable manufacturing processes). In Africa, for example, where an • Blurring lines between estimated 560 million people live without business, nonprofits and electricity, new solar-powered technologies offer a cheap way to provide families with government lighting. • Looming resource shortages Companies are developing more sustainable, low-cost manufacturing and transport • Consumer expectations practices as they seek ways to both reduce costs and fall in line with pressures to cut • The Millennial outlook carbon emissions. These practices, and others focused on stewarding natural resources, can be both economical and effective, cutting pollution and improving local living conditions. THE RISE OF SHARED VALUE
  • 21. DRIVERS (cont’d.) “We’ll see … a growing recognition • New opportunities in (at least among the most progressive companies) of the opportunities emerging markets associated with sustainability and a • Pressure to cut costs and greater commitment to creating ‘shared value’ for business and carbon emissions society. In terms of implementation, • Blurring lines between partnerships are often essential because of the complex nature of the business, nonprofits and challenges being addressed.” government —VANESSA EDWARDS, head of corporate • Looming resource shortages responsibility, WPP • Consumer expectations In today’s globalized environment, demand for resources is growing exponentially, and • The Millennial outlook experts are sounding warnings about looming shortages. Corporations are trying to ensure the long-term viability of key resources by improving living conditions and providing communities with new, more sustainable technologies. THE RISE OF SHARED VALUE
  • 22. DRIVERS (cont’d.) • New opportunities in emerging markets • Pressure to cut costs and carbon emissions • Blurring lines between business, nonprofits and government • Looming resource shortages • Consumer expectations • The Millennial outlook THE RISE OF SHARED VALUE
  • 23. MANIFESTATIONS: RECONCEIVING PRODUCTS TO ADDRESS SOCIAL ISSUES Campbell’s Nourish: Distributed in Canadian groceries, Nourish is a single-serving can of soup designed to provide a complete daily serving of three key food groups at a low cost. Campbell’s considers the product both a commercial opportunity and a way to address hunger and food security issues. Campbell’s has developed partnerships with nonprofits such as the World Food Programme and local governments, and is considering rolling out Nourish in other markets. GE’s Vscan: GE started selling this smartphone-sized imaging tool, which brings ultrasound technology to Philips’ “Sustainable Energy Solutions for physicians’ pockets, in 2010. The Africa”: As part of this solar-focused effort, device has an hour’s worth of battery Philips is partnering with the Dutch government in life, allowing medics to diagnose a bid to provide affordable, sustainable energy patients in the field—most notably in solutions to some 10 million people across 10 sub- crisis zones where access to power is Saharan African nations by 2015. A cheap, limited—and along bedsides. lightweight solar reading light is designed to help children complete their homework at night or allow people to read in the evening. Image credits: lighting.philips.com; Vscan Primary Care Online Brochure; youtube.com/CampellSoupCanada THE RISE OF SHARED VALUE
  • 24. MANIFESTATIONS: RECONCEIVING SUPPLY CHAINS Marks & Spencer, “Plan A”: The British retailer Marks & Spencer has committed to the lofty goal of becoming the world’s most sustainable major retailer by 2015. The company reported that in 2010/2011, this ongoing initiative contributed to a net benefit of £70 million for M&S. Among other strategies, the retailer switched its delivery fleet to 50% bio-diesel fuel and implemented a “‘green’ business travel policy to reduce CO2 emissions caused” by travel. It is currently upgrading its refrigeration systems in stores, leading to a reduction in greenhouse gas emissions. Walmart’s fuel-efficient trucks: Walmart is working to double its truck efficiency by 2015 (based on a 2005 baseline), switching to fuel-efficient tires, recalibrating engines and adding aerodynamic elements to truck carriages. It has also replaced two-thirds of its nearly 7,000-truck fleet with fuel- efficient tractors and used detailed analysis to shorten its route network, by 49 million miles. In 2010, these initiatives helped the company cut its fuel costs and save almost 40,000 metric tons of CO2 emissions. Image credits: plana.marksandspencer.com; Walmart Stores THE RISE OF SHARED VALUE
  • 25. SIGNIFICANCE/RELEVANCE By putting shared value at the center of their strategy, brands can benefit their business, their customers and society in general. Companies should identify needs and develop products, services and/or processes to meet them; invest in the charitable, nonprofit and/or NGO space; and seek ways to reduce fuel consumption, which reduces costs and emissions. In the long term, these strategies can expand companies’ market presence, insulate them from shocks in the supply chain and improve the way they are perceived by consumers. THE RISE OF SHARED VALUE
  • 26. POTENTIAL There are more than 3 billion low-income consumers worldwide, according to estimates by Nestlé, and as global population growth explodes, this number is set to spike. By creating products and services to meet the needs of this segment, brands have a huge opportunity to expand outside developed markets. And by investing in emerging markets, brands can create a virtuous circle, where employed locals become aspiring middle-class consumers. Brands can innovate by scaling down existing offerings into lower-priced versions. GE’s two-year-old Healthymagination project, for instance, which aims to lower the cost of health care, has already birthed several economical devices. One example: The Brivo DR-F, a digital X-ray machine with a space-saving design, costs 30% less than premium systems and is also more energy efficient than typical film-imaging systems. THE RISE OF SHARED VALUE
  • 27. POTENTIAL (cont’d.) Brands should consider how to best educate shareholders about the potential of these kinds of ventures. This can be done by emphasizing the importance of a long-term business strategy, highlighting learnings about new areas for product development and making incremental changes to corporate practices. At the same time, expect a new group of shared value auditors, which will develop new metrics that assess companies’ performances in terms of social impact and shared value generated. “Shared value is not social responsibility, philanthropy, or even sustainability, but a new way to achieve economic success. It is not on the margin of what companies do but at the center. We believe that it can give rise to the next major transformation of business thinking.” —MICHAEL E. PORTER and MARK R. KRAMER, “Creating Shared Value: How to reinvent capitalism— and unleash a wave of innovation and growth,” Harvard Business Review, January–February 2011 THE RISE OF SHARED VALUE
  • 29. TREND Human environments will become increasingly important as the global population becomes more urbanized over the next few decades and cities boom. Brands will become key partners in enabling creative strategies for urban renewal—improving local environments, adding beauty or helping to bring communities together. CREATIVE URBAN RENEWAL
  • 30. DRIVERS With cities booming, there’s never been a more • Fastest urban boom in pressing need to rethink them. history In the developing world, people are drawn to new opportunities in urban centers, which are • Government stagnation and adding an average of 5 million people per lack of funding month, according to UN-HABITAT. In Asia, Foreign Policy estimates, about half the • Empty retail space population (1 billion people) will migrate from the countryside to urban centers by 2030. • Environmental concerns Meanwhile, the U.S. is seeing “bright flight,” with younger, educated Americans reversing • DIY ethic the trend among their parents and grandparents to leave cities for the suburbs; among first-time • “We vs. me” mind-set home buyers, 77% say they want to live in urban areas. • Brand involvement in community is expected CREATIVE URBAN RENEWAL
  • 31. DRIVERS (cont’d.) • Fastest urban boom in history • Government stagnation and lack of funding • Empty retail space • Environmental concerns • DIY ethic • “We vs. me” mind-set • Brand involvement in community is expected CREATIVE URBAN RENEWAL
  • 32. DRIVERS (cont’d.) “The whole idea of dead retail space is • Fastest urban boom in pretty prevalent in the downturn. Artists used to go in and take over history warehouse spaces. Now warehouse • Government stagnation and spaces—at least in cities—are often expensive. So maybe the next move is lack of funding to take over some of these huge areas • Empty retail space of strip malls that are so inexpensive or dead malls and create art studios. … A • Environmental concerns lot of what happens in art these days is about appropriation, so if there was a • DIY ethic way to rethink junk space and let the community use that, without too much • “We vs. me” mind-set money or intervention, [brands] could create an interesting place for [people] • Brand involvement in to go that’s sort of the anti-mall.” — community is expected David Belt, executive director and founder of Macro Sea, a development firm that uses everyday objects to create unexpected interactive urban projects CREATIVE URBAN RENEWAL
  • 33. DRIVERS (cont’d.) Public awareness surrounding environmental • Fastest urban boom in degradation is leading many to rethink urban history spaces. • Government stagnation and lack of funding • Empty retail space • Environmental concerns • DIY ethic • “We vs. me” mind-set • Brand involvement in community is expected CREATIVE URBAN RENEWAL
  • 34. DRIVERS (cont’d.) There’s a growing belief in collectively driven • Fastest urban boom in positive change, both among professionals history (designers and architects, developers, urban planners, etc.) and everyday folk driven to • Government stagnation and better their environs. lack of funding • Empty retail space • Environmental concerns • DIY ethic • “We vs. me” mind-set • Brand involvement in community is expected CREATIVE URBAN RENEWAL
  • 35. MANIFESTATIONS: CREATIVITY BUBBLING UP Image Credits: youtube.com/firmezatotalfilm; Antonia Wagner; inchernet.com; greenaid.co CREATIVE URBAN RENEWAL
  • 36. MANIFESTATIONS: URBANITES LEVERAGING DATA TECHIE “I believe this massive amount of data that’s being generated can be used to better design cities, to build better disease surveillance models, to do things that ultimately are going to improve the lives of billions of people.” —NATHAN EAGLE, founder and CEO, txteagle, which creates opportunities for mobile subscribers in the developing world to generate income via their phones Image Credits: roadify.com; youtube.com/localprojects; seeclickfix.com CREATIVE URBAN RENEWAL
  • 37. MANIFESTATIONS: SUPPORTING URBAN RENEWAL BRANDS Image Credits: bizcommunity.com; Zolk CREATIVE URBAN RENEWAL
  • 38. BRANDS SUPPORTING URBAN RENEWAL (cont’d.) MANIFESTATIONS: Image Credits: youtube.com/letcolour; youtube.com/KiaCanada CREATIVE URBAN RENEWAL
  • 39. MANIFESTATIONS: BRANDS SUPPORTING URBAN RENEWAL (cont’d.) Image Credit: prnewswire.com; youtube.com/LevisReadyToWork CREATIVE URBAN RENEWAL
  • 40. MANIFESTATIONS: GIVING NEW LIFE TO DEAD SPACE “Just to put [your brand’s] name on a banner isn’t so interesting, but to take a leadership role where they’re raising money for a community garden or where they’re providing a creative space for people to interact with—that’s pretty empowering, because it gives people the tools. “I feel [brands] don’t have to accommodate that many people in order to have a tremendous impact and influence and get a pretty big bang for their buck, because if they have the right people in there, the word really gets out and the ripple effect is felt.” —DAVID BELT, executive director and founder of Macro Sea, a development firm that uses everyday objects to create unexpected interactive urban projects Image Credit: wastedspaces.org; iwishthiswas.cc CREATIVE URBAN RENEWAL
  • 41. MANIFESTATIONS CORONA’S “SAVE THE BEACH” PROJECT : Image Credit: jwt.com CREATIVE URBAN RENEWAL
  • 42. SIGNIFICANCE/RELEVANCE Brands will be key partners in enabling creative strategies for renewal, taking local CSR initiatives to the next level. Brands can show their creativity, innovative spirit and community-mindedness by tapping into the “urban hack” mind-set. CREATIVE URBAN RENEWAL
  • 43. POTENTIAL At a time when CSR and more traditional marketing efforts are meshing, creative urban renewal projects present ways for brands to both help communities/neighborhoods and craft an image as innovative, original and cool. These projects tend to be sustainable, fun, educational and interactive—key areas/attributes for brands. CREATIVE URBAN RENEWAL
  • 44. POTENTIAL (cont’d.) With today’s “we vs. me” mind-set and DIY ethos, there is ample opportunity for brands to partner with professionals, residents and nonprofits to spearhead innovative ideas and solutions. By creating opportunities for active participation in the revitalization of a space, brands can further generate goodwill by giving citizens a sense of ownership over the project and pride in their achievements. Large corporations can also leverage their economic weight on behalf of communities and side with citizens to spur local government action.   The efforts must be substantial: This movement has roots in anti-consumerist notions, and skeptical consumers will quickly smell empty gestures.   CREATIVE URBAN RENEWAL
  • 45. POTENTIAL (cont’d.) “Unfortunately, we’re still in the phase of insincerity. The next evolution of this is when some of those companies actually say, ‘Look, we need to do this because it makes great business sense for us, because it creates a meaningful environment in which to be employed.’ The more we push on creating change and improving quality of life for people through what we do best, which is technologies and business models and investments, the more comes to us. And the more that comes to us, the more we can reinvest. And it creates an acceleration of not only our business ethic and our business model and our business, but also it starts to have real tangible, measurable impacts on people.” —STEVE LEWIS, CEO and co-founder, Living PlanIT, which builds large integrated technology platforms for managing city operations CREATIVE URBAN RENEWAL
  • 46. RIPPING A PAGE FROM THE FOR-PROFIT PLAYBOOK
  • 47. TREND Nonprofit organizations are increasingly adopting for-profit tactics, fusing social consciousness with business acumen and focusing on achieving visible change. The shift from blanket or black-hole benevolence to targeted giving and venture philanthropy places more emphasis on cause and effect, measurable results and return on investment. In the next few years, CSR and social change initiatives will evolve “from traditional development models of aid provided with an undetermined end- game for sustainability to a business-plan approach with a quantifiable baseline, benchmarks, outcomes and timeline for sustainability.” —WALKER MORRIS, Malawi country executive, Clinton Foundation RIPPING A PAGE FROM THE FOR-PROFIT PLAYBOOK
  • 48. DRIVERS With more organizations vying for less money, nonprofits need impressive numbers to get the attention of donors and show why they’re the better investment. Since private donations, grants and government funding often carry stipulations as to how they can be used, nonprofits are • A race for funding increasingly looking for ways to develop their autonomy. By creating steady self-generated • Desire for self-sufficiency revenue streams, they gain the flexibility and security needed to allocate funds as they see • Donor insistence on results fit. Today’s well-informed consumers expect total transparency from the nonprofits they support: They want to know not only how funds are spent but also exactly what kind of impact those funds are making. RIPPING A PAGE FROM THE FOR-PROFIT PLAYBOOK
  • 49. MANIFESTATIONS: IN PUBLIC-PRIVATE PARTNERSHIPS SURGE Walmart and Treasure Coast Food Bank: In 2009, Florida-based Treasure Coast Food Bank leveraged Walmart’s famed logistical expertise to determine how to deliver more meals each week with their existing resources. Members of the Walmart distribution team helped the food bank build its warehousing capabilities, improve storage and more rapidly sort food; they also developed new truck routes to facilitate more frequent food deliveries. The food bank was able to increase its culinary partners from 140 to 200 and doubled the number of meals it serves weekly. IBM and Turkish nonprofit Toplum Gönüllüleri Vakfı: In Turkey, IBM volunteers partnered with the educational nonprofit Toplum Gönüllüleri Vakfı (Community Volunteers Foundation), using the company’s “Share project management skills” solution to help develop and teach a children’s literacy program. This and similar efforts are coordinated via IBM’s On Micro-volunteering: A new crop of organizations connects Demand Community portal, which allows IBM volunteers to skilled volunteers with nonprofits in need of relevant services, combine their skills and IBM’s technology. Since its 2003 launch, such as logo design, accounting help or membership 170,000 IBM employees have logged more than 12 million hours development strategies. Examples include Catchafire and of volunteer service via the site. Sparked, both for-profits, and the nonprofit Taproot Foundation. Image credits: facebook.com/walmart; stophunger.org; sparked.com; tog.org.tr RIPPING A PAGE FROM THE FOR-PROFIT PLAYBOOK
  • 50. MANIFESTATIONS: IN PUBLIC-PRIVATE PARTNERSHIPS SURGE HP and mothers2mothers: As part of a new partnership with mothers2mothers—a South African group that works to prevent HIV-positive mothers from transmitting the virus to their children—HP is using its database, cloud and mobile technologies to digitize the organization’s patient records. This will allow mothers2mothers to share patient information across regions, helping counselors provide better education and support services, and eventually enable staff to collect and share basic data via mobile phones. Image credits: m2m.org RIPPING A PAGE FROM THE FOR-PROFIT PLAYBOOK
  • 51. MANIFESTATIONS: SURGE IN SOCIAL ENTERPRISES Me to We: Harnessing for-profit strategies to achieve socially Breadpig: This organization sells products such as magnets, responsible objectives, this retailer was launched by the clothing and posters at a profit then donates the proceeds to its founders of Free the Children with the sole purpose of creating nonprofit “allies,” which include Room to Read and the San a steady revenue stream for the charity. It sells environmentally Francisco SPCA. One of its objectives is to forge long-term friendly and socially conscious apparel, self-empowerment relationships that include collaborative projects. Since it was books and music, and also coordinates adventure travel trips, founded in 2008, Breadpig has raised and donated more than donating half the profits to Free the Children and investing the $186,000. other half back into the business. In 2010, Me to We donated $1 million in cash and in-kind contributions. Image credits: metowe.com; youtube.com/MeToWe; breadpig.com RIPPING A PAGE FROM THE FOR-PROFIT PLAYBOOK
  • 52. MANIFESTATIONS: VENTURE PHILANTHROPY FUNDS Acumen Fund: Acumen provides loans or equity—but not grants—that typically range from $300,000 to $2.5 million, describing this funding as “patient capital.” To be eligible for support, organizations must provide low-income consumers with access to water, health care, housing, agricultural inputs or alternative energy. In 2007, for example, Acumen invested in Jamii Bora, a Kenyan microfinance organization that supported the construction of 750 low-income homes outside Nairobi; the organization repaid in full by 2010. Image credit: acumenfund.org RIPPING A PAGE FROM THE FOR-PROFIT PLAYBOOK
  • 53. SIGNIFICANCE/RELEVANCE Nonprofits and other socially focused efforts will need more than good intentions to stay viable as supporters seek measurable change. Indeed, with the rise of social enterprises such as Me to We and Breadpig, we’ll see a more open-minded attitude toward the means that organizations use to achieve their ends, as long as that means real-world impact. RIPPING A PAGE FROM THE FOR-PROFIT PLAYBOOK
  • 54. POTENTIAL We’ll see more partnerships and collaborations between for- and nonprofits, allowing charities to leverage considerable resources. Organizations can even outsource the implementation of a project while handling the rest of the responsibilities. ColaLife, for example, turned to Coca-Cola to help in its mission to deliver hydration packs to impoverished communities in developing countries, since the company has one of the world’s most advanced distribution networks. ColaLife manufactures the packs and prepares them for shipping, while Coca-Cola aids the cause by providing access to its distribution network; the scheme is being tested in Zambia. Such relationships offer benefits to both parties: brands can earn CSR points (at a relatively low cost, in some cases), while nonprofits become more efficient and effective. RIPPING A PAGE FROM THE FOR-PROFIT PLAYBOOK
  • 56. WHO ARE THE MILLENNIALS? Millennials strive to be active and engaged in their world. A globally minded cohort, they’re already taking on today’s biggest issues, tackling them with an entrepreneurial mind-set, a “we vs. me” mentality, a belief in large-scale collaboration and an optimistic, can-do spirit.   This generation—born between 1978 and 2000—is uniquely motivated to make a difference: They want to improve society but without compromising personal aspirations; do good, the thinking goes, and the personal benefits will follow. And as so-called digital natives, they’re uniquely equipped to make a difference: They have the tech savvy to create innovative solutions and to organize on a scale never before possible. And then there’s the sheer size of this generation: some 78 million individuals in the U.S. alone. “For the generation coming up now, there is a much stronger optimism and a much bigger desire to do well while also doing good.” —ALEXIS OHANIAN, co-founder of Reddit and founder of Breadpig, a U.S.-based social enterprise that sells geeky products and donates the profits to nonprofit organizations THE GLOBAL DO-GOOD GENERATION
  • 57. THE FIRST “GLOBAL GENERATION” Another key factor is that they’re the first “global generation,” with more overlapping values and shared experiences than any before them, thanks to globalization and the communication technology revolution. They are more likely than their elders to identify with and embrace people and cultures beyond their own borders. Image credits: tigweb.org THE GLOBAL DO-GOOD GENERATION
  • 58. TECHNOLOGY-ENABLED ACTIVISTS Technology enables young people to swap ideas, connect with like-minded individuals across borders and organize events. And social media helps to push social causes into the mainstream of Millennial consciousness: “Liking” a cause on Facebook or tweeting about injustice helps define who you are and what you believe in. (Although the verdict is still out as to whether this “activism-light” translates into any meaningful real-world change.) There are even social networks based around the idea of social good, like TakingITGlobal, which has more than 340,000 members working in nonprofits worldwide, and KooDooZ.com, a kids network. Nearly nine in 10 Millennials we surveyed acknowledged that they have the communication tools to make a huge difference in the world. Image credit: causes.com THE GLOBAL DO-GOOD GENERATION
  • 59. MARKETING SOCIAL GOOD TO MILLENNIALS Marketers can tap into this spirit by creating movements around their CSR efforts and calling on Millennials for ideas. Brands and philanthropic organizations should enable these hands-on consumers to show passion for and engagement with the relevant cause or campaign. This means giving up a certain measure of control, letting local groups organize and create excitement, or outsourcing tasks. Empower Millennials with tools for involvement in a cause, helping them to spread their engagement by incentivizing social media posts. “[Doing good] has become part of the Millennial DNA, and this generation is the driving force behind social change initiatives. Smart brands have recognized this and have started to tap into the power of this generation and the power of social change mapped to their brand identity as an important part of their business model and profits.” —KRISTINE SHINE, vice president, PopSugar Media THE GLOBAL DO-GOOD GENERATION
  • 60. THE GLOBAL DO-GOOD GENERATION THE GLOBAL DO-GOOD GENERATION
  • 61. THINGS TO WATCH IN SOCIAL GOOD
  • 62. THINGS TO WATCH: BUY ONE, GIVE ONE AWAY Image credits: sirrichards.com; betterworldbooks.com; warbyparker.com THINGS TO WATCH IN SOCIAL GOOD
  • 63. THINGS TO WATCH:GAMING FOR SOCIAL GOOD Philanthropic organizations are increasingly using gaming mechanics as a way to engage people in a cause and build communities of like-minded supporters. This is a manifestation of one of our 10 Trends for 2011, All the Tearfund: This platform, which provides financial and World’s a Game. developmental support to impoverished communities in the developing world, is developing a game-based smartphone app in an attempt to engage more young people. The platform will Game-based schemes offer an reward supporters for their involvement and allow them to inventive way to drive donations and share this with other users via social networking tools. The aim is to make engaging with the U.K.-based charity more improve long-term commitment to a interesting and enjoyable, and help build long-lasting relationships with supporters. cause, making participation more interactive and rewarding. More than 4 in 10 of our survey respondents said a rewards-based mechanism is a good way to get people involved in a cause. Image credit: tearfund.org THINGS TO WATCH IN SOCIAL GOOD
  • 64. THINGS TO WATCH:GAMING FOR SOCIAL GOOD (cont’d.) Gamification also enables people to view their standing in real time and compare this with peers’. In broadcasting their behaviors online, people are consciously or unconsciously engaging in social one- upmanship—“I’m more witty, worldly, in-the-know, on-the-go, etc., than you.” This is particularly the case with the hyper-social Millennials. THINGS TO WATCH IN SOCIAL GOOD
  • 65. THINGS TO WATCH:GAMING FOR SOCIAL GOOD (cont’d.) AOK: Founded in early 2011, AOK is a platform that aims to Playtogive: This enterprise provides nonprofits with a platform increase acts and observations of kindness through competitive to create online games. Players can highlight in-game elements such as scoring systems, leader boards and real-world accomplishments and solicit sponsorship from friends. The rewards. Every time participants perform a good deed (anything website displays individuals’ scores and allows them to share from lending a car to a friend to donating old clothes), they these with their social graph. Players who garner the most create a log of it using their smartphone and upload it to AOK donations or sponsors are nominated as “All Stars” and ranked with pictures and descriptions. To challenge users to check on on the site’s “Champions” page. each other, players also get points for observing and reporting acts of kindness. AOK converts points into real-world donations to charities, and players have chances to win brand-sponsored prizes along the way. Users have a tally that updates in real time, and they’re encouraged to compare it with others. “People really like that their efforts are getting rewarded instantly, so what we are hoping to do is provide people with an incentive in the form of gaming that literally translates into an impact immediately.” —IRA LISS, CEO, AOK Image credits: aok.tv; playtogive.com THINGS TO WATCH IN SOCIAL GOOD
  • 66. THINGS TO WATCH:GAMING FOR SOCIAL GOOD (cont’d.) DailyFeats: Another points-based system for social good, Web- Conspiracy for Good: Nokia sponsored this real-life game that based DailyFeats partners with brands to offer coupons and incorporated the company’s augmented reality software in other incentives to participants (currently, more than 129,000 partnership with the organization Room to Read, which tackles local discounts and rewards are available in North America). As illiteracy in Africa and Asia. As part of the game, conducted in with AOK, participants can tag or categorize their “feats,” then spring 2010, participants played activists and supporters of a upload them to the DailyFeats social graph. Marketers can secret organization called Conspiracy for Good, completing create promotions tailored to specific actions. For example, in tasks using Nokia smartphones and other devices. Nokia August, as part of an anti-bullying campaign, MTV encouraged reported more than 900,000 worldwide downloads of the people to be more inclusive and supportive by offering points game’s app and a community of more than 4,000 dedicated for anti-bullying actions (such as standing up to bullies); the users. At the culmination of the game, five libraries were more points players accumulated, the closer they came to established in Zambia and 50 girls were provided with one year wining prizes, such as an invitation to MTV’s Video Music of schooling. Awards. Image credits: dailyfeats.com/partner/mtv; conversations.nokia.com/ THINGS TO WATCH IN SOCIAL GOOD
  • 67. BEYOND SLACKTIVISM: THINGS TO WATCH: INCENTIVIZING ONLINE ENGAGEMENT Image credits: Dosomething.org; jcp.cf.cdn.virtue.com/afterschool; trojanvideos.com/help_donate THINGS TO WATCH IN SOCIAL GOOD
  • 68. THINGS TO WATCH: CHANNEL INNOVATION: MOBILE DONATION QR code donations: Smart nonprofits and brands are taking advantage of QR codes to encourage donations—for example, Macy’s partnership with DoSomething.org . In pedestrian-heavy New York, the local nonprofit City Harvest places QR codes on phone booth and bus shelter billboards. The code brings interested passersby to a simple page featuring videos explaining “how City SMS donations: Back in 2004, following the Asian tsunami, U.S. Harvest helps feed hungry New mobile users generated $200,000 through text-based donations. Yorkers” and other aspects of their In the seven years since, this channel has become mainstream, work, with links to donate online or with the Red Cross pulling in $4.5 million from text donations in over the phone. response to the earthquake and tsunami in Japan. Last May, Vodafone U.K. and online donation platform JustGiving launched a program that allows smaller nonprofits to set up Donation apps: In-app donations remove text-based donation campaigns for free. In less than two the extra layer of going to a website. In months, more than 8,000 charities had signed up for the the wake of the earthquake and tsunami service. in Japan, SoftBank created an app to help collect funds for disaster relief. And late last year, Oxfam International partnered with Nokia on “Oxfam Donate,” an app that spotlights the charity’s work on five projects around the world, with progress reports and fundraising levels, and an easy way to donate directly to any of them. In some markets however, such as the U.S. and U.K., Apple bans donation apps for iPhones. Image credits: justgiving.com; blog.ovi.com; penn-olson.com THINGS TO WATCH IN SOCIAL GOOD
  • 69. DONATION CHANNEL INNOVATION: THINGS TO WATCH: CONTACTLESS PAYMENTS, TV DONATIONS, ATM DONATIONS Contactless Payments: As the notion of cashless societies grows closer to reality, we’ll see innovative ideas that allow people to TV Donations: Nonprofits are turning Internet-enabled make quick electronic donations on the street. Last year televisions into a channel for giving. In May, Dish Network—a Barclays promoted its contactless technology in London with a satellite service in the U.S.—launched on-demand channels such street performer who accepted only card-based donations for as “Donate Storm Relief” and “Donate to Japan Here,” allowing Help a London Child on a specially designed guitar. viewers with Web-connected TVs to contribute by clicking a   remote-control button. After following on-screen instructions, customers can add a $5 donation to their monthly bill. A similar technology has existed in the U.K. for over a decade. While customers currently need an Internet connection to make ATM Donations: This convenient donations, expect this kind of mechanism to become more method of giving, already a familiar popular as 4G and other untethered technologies help to drive practice in places including Mexico set-top-based giving. and Colombia, is expanding to more markets such as the U.S. and U.K. Image credits: newsroom.barclays.com; DaGoaty; Aranami THINGS TO WATCH IN SOCIAL GOOD
  • 70. DONATION CHANNEL INNOVATION: THINGS TO WATCH: NEW WAYS TO COLLECT COINS   Cruz Roja Mexicana, “Your Help Can Keep Us Going”: UNICEF, “Change for Haiti”: In 2010, Unicef was focused on The 2010 national fundraising drive for Cruz Roja Mexicana (the raising awareness and funds to help rebuild Haiti after its Mexican Red Cross) demonstrated that each coin can make a devastating earthquake; one big issue facing Haitians was the difference while providing the donor with a fun experience. Coin- scarcity of clean water. Unicef believed the reason people operated kiddie rides, shaped like ambulances, helicopters and often fail to donate is that they just don’t get around to it— boats, each featuring the Red Cross logo, served as collection donating is too involved and time-consuming. So in Spain, JWT boxes. The campaign, from JWT Mexico City, helped increase Madrid created an almost effortless way to give, labeling one donations to Cruz Roja Mexicana by 23% in 2010, despite the deep button on vending machines “Agua para Haiti” (Water for recession that year, and won silver and bronze Lions at the Cannes Haiti). People could press it to donate their change in a quick Lions festival. In 2011, a new iteration, “Your Coin Saves Lives,” and direct way, helping to provide Haitians with water as they involved coin-operated claw machines that allowed people to were purchasing their own beverage. Within the campaign’s “rescue” a doll inside from various catastrophes. Donations first week, one in three vending customers was donating their increased 7.5% over 2010, and people learned that even their change and the campaign has since inspired imitations all over small donations could make an impact. the world. Image credits: jwt.com THINGS TO WATCH IN SOCIAL GOOD
  • 72. CASE STUDIES: & JERRY’S, FAIR TWEETS BEN Image credit: fairtweets.com CASE STUDIES
  • 73. CASE STUDIES: BRANDAID PROJECT Image credits: brandaidproect.com; macys.com CASE STUDIES
  • 74. GARNIERSTUDIES: TIMES OF INDIA, TAKE CARE, TAKE CHARGE CASE AND THE Image credit: takecaretakecharge.in CASE STUDIES
  • 75. CASE STUDIES: MIRACLE WHIP, MIRACLE MACHINE Image credits: facebook.com/WhippingUpMiracles CASE STUDIES
  • 76. CASE STUDIES: FOR-PROFIT CHAINS, NONPROFIT STORES Image credits: puroticorico; twitpic.com/67866e; treasureandbond.com CASE STUDIES
  • 77. CASE STUDIES: TIDE, LOADS OF HOPE Image credits: tide.com CASE STUDIES
  • 78. CASE STUDIES: HUMAN RIGHTS WATCH, “BEHIND BARS IN BURMA” Image credits: youtube.com/JWTNewYork; jwt.com CASE STUDIES
  • 79. CASE STUDIES:TOYOTA, IDEAS FOR GOOD Image credits: youtube.com/ToyotaUSA; yourideasforgood.com CASE STUDIES
  • 81. LEARN MORE ABOUT OUR EXPERTS & INFLUENCERS
  • 82. DAVID BELT, executive director and founder, Macro Sea APPENDIX: LEARN MORE ABOUT OUR EXPERTS AND INFLUENCERS
  • 83. NATHAN EAGLE, founder and CEO, txteagle APPENDIX: LEARN MORE ABOUT OUR EXPERTS AND INFLUENCERS
  • 84. VANESSA EDWARDS, head of corporate responsibility, WPP APPENDIX: LEARN MORE ABOUT OUR EXPERTS AND INFLUENCERS
  • 85. TIM FAVERI, director, sustainability and responsibility, Tim Hortons, Inc. APPENDIX: LEARN MORE ABOUT OUR EXPERTS AND INFLUENCERS
  • 86. KIM FINN, vice president and managing director, EthosJWT, Toronto APPENDIX: LEARN MORE ABOUT OUR EXPERTS AND INFLUENCERS
  • 87. STEVE LEWIS, CEO and co-founder, Living PlanIT APPENDIX: LEARN MORE ABOUT OUR EXPERTS AND INFLUENCERS
  • 88. IRA LISS, CEO and co-founder, AOK APPENDIX: LEARN MORE ABOUT OUR EXPERTS AND INFLUENCERS
  • 89. CHARMIAN LOVE, chief executive, Volans APPENDIX: LEARN MORE ABOUT OUR EXPERTS AND INFLUENCERS
  • 90. YAO-HUI HUANG, CEO, Win4Causes APPENDIX: LEARN MORE ABOUT OUR EXPERTS AND INFLUENCERS
  • 91. WALKER MORRIS, Malawi country executive, Clinton Foundation APPENDIX: LEARN MORE ABOUT OUR EXPERTS AND INFLUENCERS
  • 92. ALEXIS OHANIAN, co-founder, Reddit; founder, Breadpig APPENDIX: LEARN MORE ABOUT OUR EXPERTS AND INFLUENCERS
  • 93. MILTON PEDRAZA, CEO, Luxury Institute APPENDIX: LEARN MORE ABOUT OUR EXPERTS AND INFLUENCERS
  • 94. TONY PIGOTT, president and CEO, JWT Canada; global director, EthosJWT; co-founder, Brandaid Project APPENDIX: LEARN MORE ABOUT OUR EXPERTS AND INFLUENCERS
  • 95. KRISTINE SHINE, vice president, PopSugar Media APPENDIX: LEARN MORE ABOUT OUR EXPERTS AND INFLUENCERS
  • 97. FIGURE 1B: RISE OF CONSUMER CYNICISM AND EXPECTATION FOR TRANSPARENCY (U.S.) APPENDIX: ADDITIONAL CHARTS
  • 98. FIGURE 1C: RISE OF CONSUMER CYNICISM AND EXPECTATION FOR TRANSPARENCY (U.K.) APPENDIX: ADDITIONAL CHARTS
  • 99. FIGURE 1D: RISE OF CONSUMER CYNICISM AND EXPECTATION FOR TRANSPARENCY (CAN) APPENDIX: ADDITIONAL CHARTS
  • 100. FIGURE 2B: CONSUMER EXPECTATION FOR RESPONSIBLE BUSINESS (U.S.) APPENDIX: ADDITIONAL CHARTS
  • 101. FIGURE 2C: CONSUMER EXPECTATION FOR RESPONSIBLE BUSINESS (U.K.) APPENDIX: ADDITIONAL CHARTS
  • 102. FIGURE 2D: CONSUMER EXPECTATION FOR RESPONSIBLE BUSINESS (CAN) APPENDIX: ADDITIONAL CHARTS
  • 103. FIGURE 3B: CONSUMER DESIRE FOR BRAND INVOLVEMENT IN LOCAL COMMUNITY (U.S.) APPENDIX: ADDITIONAL CHARTS
  • 104. FIGURE 3C: CONSUMER DESIRE FOR BRAND INVOLVEMENT IN LOCAL COMMUNITY (U.K.) APPENDIX: ADDITIONAL CHARTS
  • 105. FIGURE 3D: CONSUMER DESIRE FOR BRAND INVOLVEMENT IN LOCAL COMMUNITY (CAN) APPENDIX: ADDITIONAL CHARTS
  • 106. FIGURE 3E: CONSUMERS WANT THEIR VOICES HEARD IN LOCAL DECISION MAKING (U.S., U.K., CAN) APPENDIX: ADDITIONAL CHARTS
  • 107. FIGURE 3F: CONSUMERS WANT THEIR VOICES HEARD IN LOCAL DECISION MAKING (U.S.) APPENDIX: ADDITIONAL CHARTS
  • 108. FIGURE 3G: CONSUMERS WANT THEIR VOICES HEARD IN LOCAL DECISION MAKING (U.K.) APPENDIX: ADDITIONAL CHARTS
  • 109. FIGURE 3H: CONSUMERS WANT THEIR VOICES HEARD IN LOCAL DECISION MAKING (CAN) APPENDIX: ADDITIONAL CHARTS
  • 110. FIGURE 4C: THE GLOBAL DO-GOOD GENERATION (U.S., U.K., CAN) APPENDIX: ADDITIONAL CHARTS
  • 111. FIGURE 4C: THE GLOBAL DO-GOOD GENERATION (CAN) APPENDIX: ADDITIONAL CHARTS
  • 112. THANK YOU Ann M. Mack Tony Pigott Jessica Vaughn Director of Trendspotting President and CEO, JWT Canada; Trends Strategist JWT Worldwide Global Director, EthosJWT JWTIntelligence ann.mack@jwt.com EthosJWT jessica.vaughn@jwt.com @annmmack tony.pigott@jwt.com @jess_vaughn WWW.JWT.COM | WWW.JWTINTELLIGENCE.COM | WWW.ANXIETYINDEX.COM | WWW.ETHOSJWT.COM © 2011 J. Walter Thompson Company. All Rights Reserved.