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Corporate social responsibility inspires consumer sales & confidence

According to a recent report from the Boston College Carroll School of Management Center for Corporate Citizenship, a company’s investment in social responsibility is strongly correlated with its level of consumer support.  In its ranking of the top 50 US companies that the public distinguishes for corporate social responsibility, top spots went to Google, Campbell Soup Co., Johnson & Johnson, Walt Disney, and Kraft Foods Inc.

Corporations earning top spots were distinguished by their high social responsibility index (SRI) scores, which include criteria such as Citizenship, Governance, and Workplace.  Interestingly, nearly all of the top 25 spots went to consumer-oriented companies, with Berkshire Hathaway as the only top-tier business-to-business focused company.

In a time in which ‘word of mouth’ recommendations drive business success, companies – especially those with a consumer focus – should seek to improve their corporate social responsibility profile.  65.7% of the survey’s respondents would recommend the top 20 socially responsible companies to others, compared to only 25.9% who would recommend the bottom 20 companies.   Importantly, over one-fourth of respondents would expressly not recommend companies that are not perceived as socially responsible.

In the consumer products segment, the consumer is, well, king.  The study’s finding of a strong correlation between a company’s corporate social responsibility and both consumer support and reputation speak to the continued – and growing – importance of sincere initiatives and marketing efforts for corporate social responsibility.

Who really shops green?

Marketers have long fawned over Gen Y, a demographic that both responds well to advertising and is often quick to part with its cash .  In particular, green brands have used younger shoppers' idealism to their advantage - focusing marketing for sustainable products directly to the 25-34 age group.  However, a new study from ICOM Information & Communications, a Toronto-based target marketing company, suggests that older shoppers are more committed to buying green products than their younger counterparts.  The report drew its conclusions from a pool of 6,000 respondents and found that both male and female groups 55 years and older are above-average users of environmentally-friendly home goods.  

Interestingly, the 25-34 cohort fell into the "least likely to buy" category when compared to the national average.  Peter Meyers, marketing VP at ICOM, contends that older shoppers spend more time considering the pros and cons of products in the store - a tendency that could likely result in them purchasing products with which they identify on a personal and ethical level.  Is it possible that Gen Y is becoming more cynical with the bombardment of green messaging?  Meyers told Environmental Leader he thinks so, a fact which underlines the importance of authentic and trust-building marketing campaigns for both traditional and green products.

With the current economic downturn, it might be expected that shoppers would pull back on their spending - which could harm the often-pricier green products category.  However, over half (61.9%) of respondents indicate that they are still buying and using green goods.  Their main motivation?  Such products "make me feel good about myself."

Conference Recap: Branding for Sustainability

We recently attended Branding for Sustainability, a workshop presented by branding firm BBMG, online news provider CSRWire, and strategy consultancy SustainAbility.  Hosted by NaturalPath Media partner Ode Magazine, the conference focused on developing successful corporate social responsibility (CSR) branding strategies.  Moderator and Ode Magazine Editor-in-Chief Jurriaan Kamp introduced a dynamic panel that included UC Berkeley Haas School of Business Professor Kellie McElhane, BBMG Founders and Principals Raphael Bemporad and Mitch Baranowski, and SustainAbility representative Chris Guenther.

For many companies, the branding and marketing of CSR programs are as valuable as the concrete CSR initiatives.  The panelists discussed a recent shift from consumer-driven CSR marketing to "branding as being," a strategy that recognizes the needs and aspirations of a values-driven human being, rather than of a consumption-driven consumer.  Responding to questions about the economic downturn's effect on corporate sustainability departments, panelists agreed that the economic incentives attached to practical CSR will help ensure its continued growth.

The success of a CSR branding campaign is largely influenced by its timing and scale.  Discussing Gap's CSR initiatives, Gap Senior Director of Strategic Planning and Environmental Affairs, Kindley Walsh Lawlor, cited the company's incremental steps towards social and environmental sustainability.  Interestingly, Gap subsidiary Banana Republic has quietly been insituting major changes to its product line, transitioning to fair labor practices and organic fibers.  When asked why Banana Republic has lacked a green marketing push, Walsh Lawlor iterated a theme echoed by other panelists and attendees - that CSR branding is far from an overnight process.  

Gap and others who prioritize the development and maintenance of a CSR strategy before the debut of glitzy marketing campaigns usually garner greater public support from a growing pool of conscious consumers.  As evidenced by the panelists' experiences, it makes sound business sense to mix lofty aspirations with concrete goals.  Such an approach allows companies to reimagine their performace metrics by applying the triple bottom line, while building social community around a branded product.  

In sum, CSR branding campaigns should serve as platforms and vehicles for advancing social and environmental best practices and products, and not as substitues for real corporate sustainability.  With a growing number of stakeholders in the CSR branding arena, it is likely that responsible branding will move closer to functioning as a business imperative.

Move over, BPA: a call to action for eco-plastic manufacturers - and marketers

According to a recent study from the Journal of American Medical Association (JAMA), higher levels or urinary BPA (Bisphenol-A) are linked to cardiovascular disease and type 2 diabetes.  BPA, by volume one of the world's highest production chemicals, is a toxic compound used in plastic packaging for food and beverages. Although BPA exposure may also occur via drinking water, dental sealants, and dermal absorption, plastic packaging accounts for the majority of BPA use.

The JAMA study cites that global demand for BPA is growing 6-10% yearly, an astonishingly high rate considering the availability of non-toxic and effective alternatives.  In an ideal world, we'd move away from excessive plastic packaging altogether.  Packaging reduction isn't as much of an imperative yet in the US as it is in countries like Germany, where consumers can return packaging materials to the store after purchase.  Regardless, a recent surge in the development of bio-plastics has led to a number of high-quality BPA-free products on the market.  

Online resources such as zrecs.com and bispenolafree.org help consumers identify BPA in common household products and offer a slew of non-toxic alternatives.  Big plastics manufacturers, including the North American Metal Packaging Alliance (NAMPA), have thus far hushed many critics.  BPA defenders include the FDA, the FDA's European counterpart EFSA, and - unsurprisingly - the plastics industry.

While it is up to the consumers to choose BPA-free plastics over their toxic counterparts, eco-plastic manufacturers and marketers must make their products more prominent in the marketplace.  Mainstream marketing campaigns, increased production, and more shelf space will help give safer products a crucial edge - so long as consumers know what, where, and how to buy BPA-free.  

Related: Environmental Leader

eBay's WorldofGood.com poised to capitalize on booming LOHAS market

Recently-launched WorldofGood.com by eBay is a new and unique e-commerce site dedicated to eco-conscious and ethically sourced products.  With more consumers considering environmental and social impacts before making purchases, WorldofGood.com offers shoppers a multitude of information about each product.  Items are rated with a nutrition label-like system - showing the social and environmental impact each purchase makes.  

The products are certified by third parties such as Oakland, CA-based TransFair USA, which guarantees both that producers (farmers, artisans, etc.) are compensated farily and equitably for their work, and that environmental standards are satisfied.  Products range from foods and beverages to handicrafts, allowing socially- and environmentally-aware shoppers a wealth of items.

WorldofGood.com debuts at a time of serious growth for the $209 billion LOHAS industry.  According to the Natural Marketing Institute (NMI), the LOHAS products market will likely exceed the $400 billion mark by 2010.  In a recent report, NMI and Nielsen found that 81% of LOHAS consumers purchase producs labeled 'organic,' and may spend up to four times as much on eco-conscious products as non-green consumers.  

Robert Chatwani, WorldofGood.com general manager, adds that the site enables shoppers to "purchase socially responsible products with confidence."  The ability to tailor one's purchases according to specific environmental and social criteria will likely be popular with the values-driven LOHAS segment - and provide a new opportunity for online green marketing.

Greeting Cards Go Green

With 7.4 billion greeting cards sold in America last year, the greeting card industry is responsible for enormous paper use.  Although e-cards represent a growing niche within the greeting card industry, traditions and personal preferences will likely insure the continuation of a sizable market for paper cards.  Environmental concerns and growing consumer interest in green products have prompted an increase in eco-friendly greeting cards and card recycling/reuse programs.

Texas-based CardsDirect offers recycled content greeting cards, and last year pioneered a card recycling/reuse program.  CardsDirect requested used and unused greeting cards from its corporate clients, and subsequently refashioned the cards for future use.  After receiving positive feedback from customers, the company plans to continue and grow its recycling/reuse program over the next few years.  Additionally, they plan to expand their inventory of recycled-content greeting cards.

Large greeting card companies, such as Papyrus and Hallmark, offer customers many green card options.  Hallmark recently partnered with Wal-Mart to unveil a line of low-cost, eco-friendly greeting cards.  Sold under its Connections brand, Hallmark’s new cards are comprised of fifty percent sugar cane pulp and fifty percent recycled paper content.  At 94 cents each, customers can indulge in a variety of eco-conscious greetings.

As in many industries, both large corporations and niche players in the greeting card industry are paving the way towards a larger selection of green greeting cards.  With high rates of deforestation worldwide – not to mention a growing number of concerned potential customers – it is likely that interest will continue to grow in environmentally-conscious paper greeting cards.

Lack of 3rd party verification in CSR reporting leads to doubtful consumers

An increasing number of companies issue annual CSR reports to promote their green credentials, satisfy consumer demand, and meet regulatory standards. In 2008, three thousand companies are expected to publish CSR reports - but only 750 will seek third-party verification, or assurance, on their report's credibility and completeness.

Concurrently, a growing number of consumers consider a company's environmental record before making a purchasing decision. According to a recent survey, 90% of American consumers feel that acting in an environmentally-responsible way is important, while 53% weigh a company’s environmental and social stewardship into purchasing decisions. Nearly half of survey respondents use the claims on a product’s packaging to assess a company’s environmental and social commitments – but product packaging is often a clever marketing ploy, rather than evidence of a company’s environmental stewardship

Many companies skip 3rd party assurance on CSR reports, creating consumer doubt. It is the responsibility of companies to provide consumers with real evidence of their environmental efforts. For the many consumers who look beyond packaging to evaluate a company’s claims, a lack of independent report verification bodes poorly for consumer confidence – and, it follows, the bottom line.

For the full articles from Environmental Leader, go here & here.

Social networking sites can be powerful tools for green brands

Social networking sites – such as Facebook, MySpace, Twitter, and Ning – have become popular destinations for internet users. In fact, 50% of 15-34 year olds participate in social networking. Accordingly, brands are capitalizing on the targeted advertising capabilities and self-selecting demographic afforded by social networks. A recent report from SRB Marketing titled Green Social Networks details the potential power of social networks for green brands – and how to tap into it.

Among its key tips to would-be green social networkers, SRB suggests creating branded profiles and starting new groups on existing sites. Many interest groups, NGOs, and companies have attracted thousands of users to their Facebook pages – including perennially green Ben & Jerry’s, which has 30,000 Facebook friends. The authors suggest integrating marketing campaigns with social networks, as well as advertising to targeted networks.

The report stresses the importance of committing significant time and resources to maintain and amplify an online presence, as web-savvy consumers are easily disillusioned by both lackluster sites and what they perceive as misinformation. For a great example of an innovative green social networking destination, check out Green Home Huddler – part of the NaturalPath Media network.

Click here for the original article from Sustainable Life Media.

Companies seeking innovative online green marketing can benefit from Yahoo!’s success & strategies

At the recent Sustainable Brands ’08 Conference in Monterey, CA, Yahoo’s director of social responsibility, Erin Carlson, offered insight and strategies for reaching green consumers online. Carlson states that focus groups, new strategies, and frequent experimentation have resulted in a focused and successful marketing program. For example, the company’s popular Green Centers, located on many Yahoo content channels, draw consumer attention to green products while building a socially responsible image for the Yahoo brand. Below, Carlson identifies Yahoo’s major findings in online green marketing trends:

  • Consumers don’t want doom and gloom. They want to hear about optimistic innovations, such as a story on an air-powered car that received many hits.
  • There’s a lot of skepticism about celebrities’ green endorsements. “People want to know if there’s been a back-room deal signed to promote that star’s image,” Carlson said. Imagery of real people making a difference is much more effective.
  • Consumers love surprises. Some of last year’s biggest clickthroughs? An article about a woman who lives in an 84-square-foot house, and a feature on the Pope adding environmental degradation to list of sins.
  • What’s in it for me? Consumers are interested in new gadgets that save money and products that offer health benefits.
  • There’s a shift from awareness to action. Top-searched environmental term in 2006? “Climate change.” Top-searched in 2007? “Recycling.”

Based on Yahoo’s experience, Carlson suggests that online marketers should piggyback green advertising on traditional high-interest categories and channels. In doing so, marketers will reach a subset of potential customers that does not always seek out environmentally-friendly products in lieu of conventional items.

For the full article, visit Sustainable Life Media 

Soaring energy prices give green products a competitive advantage

High energy costs are increasing the attractiveness of green products, according to Environmental Leader. Companies that source raw or recycled materials – which have lower fossil fuel content – can offer end products at a more stable price than their fossil fuel-dependent competitors. Eco-Products, which makes compostable dinnerware, expects a fivefold increase in revenue this year.

Other companies are cashing in on customers’ openness to new products and materials in a time of heightened prices and environmental awareness. Recycled paper products manufacturer New Leaf Paper uses recycled landfill methane as a power source. New Leaf CEO Jeff Mendelsohn cites his company’s commitment to recycled content and alternative energy as a smart market strategy, rather than a green marketing initiative.

Consumers concerned with a rising cost of living will likely increase purchases of green products in the interest of both environmental stewardship and lower, stable prices – a potential boon for green brands and marketers.