Fruitful

Strategic CSR in Hospitality

Just wrote a new post on Building the Ethical Reputation: Strategic CSR in Hospitality on my business blog... it includes an Opportunity Audit comparing initiatives for Fairmont Hotels, Marriott and IHG and mapping how well they support the brand strategy. Come visit and contribute your thoughts. 

Who else can win?

I've been writing about companies who are committed to making a difference. I think the issue boils down to a very simple question: "Who else can win?" The primary focus has always been on how companies make money... ie. how the company wins. But precious few companies contemplate how their business model can help others win too. I'm calling this "mindful business"... stopping auto-pilot for a moment to really think about the ecosystem in which you operate, and what you can do to improve it.

Brands win when they help others win.

A few examples:

• Dove's Campaign for Real Beauty addresses self-esteem and our society's distortion of beauty. It's a great example of a mindful marketing program that benefits everyone.

• Starbucks' concept of social responsibility is embedded deep into its brand, including conservation, community volunteerism, commitment to coffee producers, the Starbucks Foundation (youth literacy), Ethos water, socially responsible investing, and more.

• Squidoo enables lensmasters to send their revenues directly to a charity of their choice (Squidoo will add your favorite charity if it's not currently in their system.) Over half of Squidoo's lensmasters participate in this program, and Squidoo itself donates 5% of net revenue to the charity pool.

• Intel's World Ahead program is committing a $1 billion investment to extend broadband PC access to the world’s next billion users while training 10 million more teachers on the use of technology in education.

• Whole Foods helped establish national organic standards, supports the Marine Stewardship Council to ensure sustainable seafood, established the Animal Compassion Foundation, and helped organic farms in North America grow.

• From its earliest days, Patagonia has been committed to environmental activism. Their mission statement is to build the best product, do no unnecessary harm, and use business to inspire and implement solutions to the environmental crisis. They have an impressive list of actions that their mission has inspired.
  

Many companies wanting to fill in the "social responsibility" checkbox will adopt a non-profit or encourage employees to volunteer. Not bad, but this type of add-on activity won't gain traction. Mindful businesses tightly integrate a social perspective into their current business models. This is about being, not just doing. In the examples above, each company is mindful of their role within a larger ecosystem and seeks ways to leverage their role to strengthen the entire ecosystem. Their beliefs and actions attract like-minded, passionate customers and employees. Everybody wins.

Heroic brands

Like heroic individuals, Heroic Brands are motivated by something bigger than themselves. They believe it just might be possible to change the world. Heros are usually ordinary people who end up doing extraordinary things; likewise, heroic brands might sell t-shirts or software or skin care, but they do it with the awareness and intention to make a much wider positive impact. Heroic brands employ big-picture people who actively seek ways to turn day-to-day business activities into catalysts for social and ecological improvement.  ROI becomes Return on Intention, where intention embodies what is good for the business AND good for the ecosystem in which it operates. Heroic brands act like magnets that attract employees and customers who share the intention to make a difference. They remind us that making a living can actually feel good.

Words and meanings

I've been thinking about brands that are making a difference in our lives and society, and I used the term "worthwhile brand" to define them. However, I don't think that term sets the bar high enough; as one reader commented, there are plenty of brands that are "worth" my time and effort.

So why not just call it corporate responsibility? A widely quoted definition by the World Business Council for Sustainable Development states that "Corporate social responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large." There's also a more easily quoted slogan, Doing Well by Doing Good. All of this sounds great and admirable... so why am I searching for a new term?

A few reasons. First, words carry a lot of underlying meanings and associations. When you think of the words responsibility and behave, what pops into your mind? Maybe I'm the odd one out here, but I think of my mother and house rules. I think about times when I was a young girl getting into trouble because I didn't behave the way I should.  I think of what I have to do vs. what I want to do. I think of chores. I think "not fun." The term "corporate responsibility" implies that the people at corporate HQ -- execs and board members -- are responsible, taking the emphasis off the individual. And perhaps that's why corporate responsibility has typically been encoded into rules, programs and accounting standards. Sometimes it's delegated to HR to initiate charity or volunteer programs. Other times it's used as a tactic for good PR (note Enron's yearly "Corporate Responsibility Annual Report" and tobacco corporations' social reports.) Rarely is it a mentality that's embedded in the DNA of the culture.

Back to definitions: responsibility and behavior are things that you do. Character is something that you are. If you're focused on actions, you create your to-do lists and check off the fact that you did your one good deed for the day. If you're focused on character, then your identity and intentions naturally create win-win opportunities for everyone involved. It becomes fun and rewarding to give back and "do the right thing." Corporate responsibility is the effect, not the cause.

Brand building focuses on character. If we're interested in how companies can act for the good of employees, customers, communities and the world, then we must choose words that are motivational and aspirational... words that define character (cause) not behavior (effect). Initially I used the word worthwhile, but in hindsight I see that I was still focusing on the effect. Now I'm thinking along the lines of noble, upstanding, honorable, and integrity. These are aspirational character traits for a brand. When used as hiring criteria, these traits can create formidable brands that make measurably positive impacts on the world. 

Good vs. Worthwhile

I'd like to elaborate on this morning's post on Worthwhile brands, ask a lot of questions, and then open this up for discussion. My earlier post discussed some initial ideas for defining a worthwhile brand: does it measurably improve quality of life, make the world a better place, or leave no trace on the Earth? But of course nothing is so black or white. I'm trying to find the line between worthwhile and the rest, and it's pretty damn hard.

I'm going to ramble a bit, so bear with me. First I started thinking about brands that are the opposite of worthwhile: cigarette brands, perhaps, or gambling (but of course smokers and gamblers would disagree with me.) Then there are the irrelevant brands, those running 10th or 20th in their categories with marginal points of difference, doing no harm but contributing to the clutter (I'll come back to this one in another post.) And finally there are good brands -- plenty of them -- that don't make my original Worthwhile cut but they're part of our lives.

The brand that I've thought a lot about is Apple. By all traditional accounts, Apple is a great brand... probably one of the best. But are they worthwhile? According to whom? Objectively speaking, they make computers and music players with an original spin. How does that benefit the world? I think that purists would say: they're not following sustainable business practices or giving to charity, and therefore they don't qualify. But are sustainability and charity the only two ways to create a brand that makes a positive impact on the world?

I think not. And yet there's a danger in opening the criteria too wide; too many marketing and advertising folks latch on to words like "meaningful" and "purpose" and "passion" and dilute their true meanings. I think it's time to raise the bar. But where to raise it, and which brands to exclude? Ahh, now things get tricky. What is the difference between good and great? Between great and worthwhile (ie. making positive contributions to individuals, society and/or our planet)? How is "positive contribution" defined?

Back to Apple. One could say that without Apple, this world would be rather dreary. Many people can't imagine life without their Apple computer or their iPod. It's their form of self-expression, and there isn't a comparable alternative. Does this qualify as a worthwhile and positive contribution? I could argue both sides. And Apple's a member of the coveted club called "cult brands:" Harley Davidson, Ikea, eBay, and the list goes on. These are the guys everyone's striving to be like, right? But do passionate customers make a brand Worthwhile? Not necessarily... but again, where do you draw the line?

Lastly, while I like the term 'worthwhile' because it hasn't been completely diluted from marketing-speak, I feel a bit bad for the good companies excluded by my definition. Does that imply they're worthless? Not my intention, but it could come across that way.   

I could keep rambling but I'll stop. I haven't come to any conclusions yet, and I'd love to hear from you.

UPDATE:  I do want to clarify that I'm trying to broaden the perspective from "corporate responsibility." I believe that corporate responsibility is vitally important (Brandchannel has a great article on it). However, I'm not a fan of the word "responsibility" because it sounds like a chore, and I think its definition leaves a lot of beneficial businesses out. For example, a number of large tech companies are trying to solve the digital-divide challenge in emerging markets. They're starting to create a virtuous circle where everyone wins (including themselves, of course). And  when companies initiate sustainable business practices, everyone wins too. No corporate action is completely altruistic, but I think there are plenty of opportunities for brands to think more creatively about how to benefit more people than themselves. This is what I'm terming a worthwhile brand... but it's broader and harder to define than corporate responsibility.   

Worthwhile Brands

In the next few posts I'm going to play around with the idea of a worthwhile brand. I like this term because a) it's not overused, b) it implies important, valuable and rewarding. Along these lines, the manager of a worthwhile brand would answer "yes" to at least one of the following questions:

Will this product/service/company...
- measurably improve quality of life?
- make the world a better place?
- leave no trace on the Earth?

And you can't weasel out of the first one with marketing-speak. "Our customers' lives will be improved by yet another brand of toothpaste because they have been long-deprived of grape flavoring." Sorry, that doesn't cut it. However, if part of the proceeds from the new grape-flavored toothpaste goes to provide dental care for underpriviledged children, you've introduced a worthwhile purpose into the brand.  Not every product is going to change the world, but brands like Starbucks are, at the very least, "walking softly on the earth." Starbucks' recycled-content cups are expected to lower the company's dependence on tree fiber annually by more than five million pounds. The Gap's RED line is contributing 50% of proceeds to fight AIDS in Africa.

Let's all expect more from the businesses from which we buy, and expect more of the companies where we work.  Marketers and executives: how can you can make your brands more worthwhile? Even from a pure business perspective, it's worth thinking about. As Hugh says, "the market for something to believe in is infinite."   

Working Purposefully

I haven’t written in a while, I know. I find that when I’m resisting something, it’s a sign that I need to do some thinking and reevaluation. So that’s exactly what I’ve been doing, and it’s time to start sharing my thoughts.

 I’ve been struggling with the age-old dilemma of doing something that satisfies the soul OR doing something that pays the rent. Yes, I’ve read plenty of books on the subject and had long talks with friends. I’ve thought about teaching, writing, coaching, counseling… even moving to some godforsaken place in the world in order to “make a difference.” I've envied a good friend of mine who took a year-long sabbatical to figure this out for herself.

 One thing I haven’t thought about until recently is whether I could make a difference in my own profession. Seems a bit odd in hindsight, but I’ve finally recognized that I’ve been suffering from cognitive dissonance: I believe that over-commercialization is leading to the demise of our society, and yet I’m in a profession of helping companies sell stuff that people don’t really need.

 Hmm. That’s a problem. Somewhere down the line I subconsciously accepted the message that business isn’t meaningful. Looking back at some of my employers and clients, I can see how I could come to such a conclusion. I've been fortunate to work with some companies filled with passion and purpose, but I saw them as a rare exception.

 And yet there are plenty of companies out there that do stand for something. They’re serving a need and making a difference. But typically these companies don’t need much branding help; their single-minded passion is the brand, and it fuels success. Whole Foods wants to improve the way America eats. Nike wants to inspire people to reach for their best. The Body Shop stands for the pursuit of social and environmental change. Starbucks is committed to social responsibility. 

Many small companies are seeking to make a difference as well. A good friend of mine has wanted to make a positive impact on education for years, and he just launched his social education site www.edu20.org. Another friend wants to help people reach their goals; she maintains a thriving community goal-setting site called Superviva. I recently met the founder of Sustainable Marketing and he definitely walks his talk.   

What all these companies have in common is a strong sense of purpose that attracts employees of a certain mindset. The purpose creates a virtuous circle: passionate leaders and employees attract passionate customers. The purpose acts like a magnet. This is what building strong brands is all about. And yet the people who started these companies didn’t think in terms of branding; they simply followed their passions.

 Execs who are looking to marketing, advertising and sales to become successful are barking up the wrong tree. They’re looking for an external fix for an internal problem: they either got sidetracked from their original purpose, or they never had one to begin with. I have heard more than one executive say, “I’m not paying employees to be passionate; I’m paying them to do a job.” Ouch. These are the same people who keep tweaking the sales comp plan to figure out what’s really going to motivate sales people. Hmm… how about giving them a product they’re really excited about selling?  Marketing and sales people are only as good as the products & services they have to work with.

 So to wrap up a rather long post, I’ve finally realized that I don’t have to switch careers or join a non-profit in order to align my values with my work. We live in a capitalistic society where businesses have a huge impact on how we live. It’s time we all expected more from them. I’d like to work with companies who are either doing something they believe in, or else they recognize the need to create a purposeful brand. I’m currently working with some great folks at “evil empire” Microsoft who are passionate about helping small software companies – especially those in emerging markets – become successful. And that means that I feel good about putting my energy and time into this project.

Are your values and your work in alignment? Do you feel great about what you do and who you work for? Kudos to those who have already figured this out; perhaps I’m just a slow learner. If you answered “no”, what can you do to help shift your corporate culture to one that is meaningful to you, your co-workers and your customers? My next few posts will talk more about creating brands with passion and purpose. 

Let's be the change we want to see

I was going through my old posts yesterday and came across this one from last New Year's day. I really liked this one, so I thought it was appropriate to repost for this New Year!
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New Years Day. Always a time of deep introspection, reflection and reiteration of what I want my life to be all about. I like to think about my life in relation to the whole; in other words, what do I want my relationships, family, business, etc. to be like, and what actions must I take to make that happen?

Along these lines, I couldn't help but think about some of the major trends in business today. There's been so much written about the failure of corporate America to satisfy the needs of customers, and in an attempt to fix the symptoms we've created new mantras (create customer evangelists!), new technologies (CRM), special programs (frequent flier miles), and the list goes on.

But who, exactly, is "corporate America"?
We are.

The corporate transformational change that we consumers have been crying for will happen when we -- the consumers, the customers, the employees -- begin living the changes we want to see. Instead of fixing the symptoms, let's address the root cause. Putting the blame on faceless corporations is the same error as putting the blame on our spouses, our co-workers, our families. Not only are we all connected, but we ourselves are individual components of multiple intersecting wholes.

We, the individuals who make up today's society, have created the world we see today. We've made -- and are continuing to make -- different choices than our parents and grandparents did at our age. These choices have created consequences that we often don't want to recognize or own, so we point outside ourselves and declare the culprits to be the big bad corporations (for whom we work) and government officials (whom we elect) and 'the system' (which we accept).

So what are these choices? Here are a few factoids from Bowling Alone that indicate that our social and family ties are loosening, and we're increasingly withdrawing into ourselves:
- In the past 3 decades, participation in government, local clubs and organizations dropped by up to 50%.
- Job instability, churn and the increasing numbers of independent contractors have resulted in a measurable decline of social connectedness in the workplace.
- Americans are entertaining friends at home 45% less frequently now than in the mid-70s; the number of picnics declined by 60% in the same time period.
- The fraction of married Americans who say that their family 'usually dines together' has dropped from 50% to 34%
- The number of families who vacation together dropped from 53% to 38%; watch TV together from 54% to 41%; sitting and talking, from 53% to 43%
- Reported charitable giving dropped by almost 20% from 1980 to 1995.
- The percentage of those who feel that "people in general today lead as good lives -- honest and moral -- as they used to" dropped from 50% in 1952 to 27% in 1998.

It's interesting to note that these percentages have remained more stable in small towns versus large cities. It's tough to be impersonal in a small town, but quite easy in a city. It's harder to be impersonal when you run a small business than when sheltered in the walls of a large corporation.

These statistics don't just show trends; they reveal our choices. We have chosen -- under the veil of 'too busy, not enough time, not enough money' -- to distance ourselves from our families, our co-workers and our communities. As isolated individuals, it's much easier to forget that we're part of a whole; that we're interconnected with everyone else and that our choices impact others as well as ourselves. We have made these choices individually but the combined effects are now reaching critical mass. How can we connect with a customer when we're not making meaningful connections with our own loved ones?

The lack of corporate/customer relationships is just the tip of the iceberg; it is symptomatic of a much more far-reaching issue. We've somehow adopted an us versus them mentality: not only between companies and customers, but between departments within the same company, between neighborhoods, races and religions. For real change to happen on the corporate and societal level, each one of us must first decide to build richer relationships within our own sphere of influence.... the forged bonds will move upward and outward, but we must start at the core, where we live. We must start by breaking down silos and walls within our own communities and companies and neighborhoods; by reaching out to others with compassion instead of holding back in distrust.

In a similar vein, we're calling on corporations to be more authentic, transparent and honest. Yet how will that happen if we're not transparent and honest ourselves? We so often are fearful of what others will think that we lose sight of our own authenticity. Political correctness has its limits. It's time for both individuals and businesses to stop trying to be all things to all people, and give ourselves permission to live honestly, and -- most importantly -- allow others to live their own truths without trying to change them. Each employee, each member of the whole, must be encouraged to live their own personal brand honestly and openly. When that happens, authentic and transparent corporate brands will naturally fall into place.

So perhaps our 2005 resolutions need not be so mundane. If each of us chooses to take ownership of our small section of the vast social fabric that ties us all together -- to tighten it up and halt the unravelling, not just with technology but with our own authentic goodness -- our society can be irrevocably changed for the better. Speaking for myself, I plan to seek out ways to be more authentic and transparent, more compassionate, and more willing to make time to deepen my connections with others. These are a few of my New Years resolutions; I hope you'll join me.

humanity in marketing

I was just reading John Moore's blog and clicked over to the About Us section... http://www.roundourhouse.com/humanity.htm provides some great clarification for my last post.

"Value is created, and destroyed in relationships. Nowhere else.

When a business and a stakeholder meet, they can create and share value or they can try to exploit each other."

Rant on socially responsible branding

As I'm reading Atlas Shrugged for the nth time, I started thinking about socially responsible branding (SRB). In Ayn's world, that phrase alone would be grounds to have me shot. But SRB, done right, is an authentic and rewarding way to earn an honest living. Let's look at the different options for SRB:

First, the real SRB is the company that allocates dollars to a good cause -- say The Body Shop or Ben & Jerrys -- and its corporate culture supports and reflects its support to that cause. The cause IS the brand. It's a win-win-win for the company, the cause and the customers. The brand is appealing to a distinct target audience that shares a common belief system with the company. The company makes money, the cause makes money and the customers feel good about their purchases. Hurray for everyone.

Another real SRB is the brand that doesn't align its business with a particular cause, but the brand's execs make decisions in favor of the brand's long-term rational self-interest. In other words, they understand the law of causality. They understand that the only way to survive and thrive in today's fickle economy is to be honest with customers, to overpromise and underdeliver, and to genuinely care about making their customers' lives easier or better. Customers are like dogs; they can usually smell it when companies are just in business to make money. Not that making money is wrong; but trying to make a buck without expending the effort to produce significant value is trying to cheat the system. It just doesn't work.

The anti-SRBs are the companies who make a show of giving to causes, but their business practices are not socially responsible. Let's go beyond toxic waste for a moment. I'm talking about "what can we get away with" mentality rather than "how can we make money by adding real value." I'm thinking of the phone companies who donate money to local charities while marking up surcharges by 500% because that's a great way to make more money without increasing their publicized basic line charge or adding any more value to justify the income. (Yes, that's right, many of those fees on your phone bill are federally condoned but not federally collected. Check out http://abtolls.com/information/readingbills.html for more info). And the phone companies have trapped themselves in a pricing war, so none of them want to be honest about how much your phone bill REALLY will be after you've switched providers to save money. I'm waiting for the day when a phone company will have the cajones to say: here's our basic line charge; yes, it's higher than some of the other companies but we're not making an exorbitant profit on taxes and surcharges; what's on this proposal is exactly what you're going to see on your first bill; and by the way, our prices are slightly higher because we're going the extra mile on customer service and reliability, and you'll get what you pay for. OK, I'll stop my rant on the phone industry... (if there are any phone companies out there who don't do this, my apologies and I'd love to know who you are)...

Bottom line, I believe that socially responsible branding is NOT about donating to causes. It's about taking the long-term view and asking, "what's the right thing to do" instead of "what can we get away with." It's about creating and using corporate values as a decision-making tool, a compass of sorts, instead of publishing a bunch of list of values because it's expected and it looks good, but doesn't truly drive the decision-making process. And if you can work out a way to support and communicate those values by contributing to a cause, great; that's solid reinforcement of your brand. But socially responsible branding starts with a value-oriented philosophy, not with an open checkbook. A donation does not a socially responsible brand make.