Tag Archives: consumer education

Social Media Tactics: McDonald’s Hosts Twitter Chat. And Issues a Policy.

09 Friday Dec 2011

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Certainly not the blog post I planned on writing after spending two weeks in New Delhi, India but I am compelled.

Today, McDonald’s hosted a Twitter chat with VP of CSR Bob Langert. The motivations are many for a company that is besieged for its product line and constantly under fire.

In fact, last year at a diversity benchmarking event at Hamburger University, I had the opportunity to hear the McDonald’s executive team discuss a whole host of business practices and strategies, including diversity (led by Global Chief Diversity Officer Pat Harris), employee learning and corporate social responsibility (CSR).

Here’s a snapshot of what I wrote then:

There is an argument that some companies–such as those that deal in weapons and tobacco–just can’t do corporate responsibility in a meaningful way. As a result, they are often excluded from CSR rankings and benchmarking exercises.

But what about a company like McDonald’s constantly under fire for its products? How does the world’s largest fast-food chain practice corporate social responsibility that is both contextual and real?

Led by Senior Manager for Corporate Social Responsibility Kathleen Bannan, who began her presentation by saying “CSR is everybody’s business,” the day-long event proved both thought-provoking (how does a company who doesn’t enjoy corporate America’s most favorable retention rates or the public’s uniform love tackle responsibility and that ever-amorphous doing the right thing?) and insightful (McDonald’s is among very few companies to institute an employee resource group for its white male workforce).

What happened today, however, was an effort at cautious transparency and an attempt at crowd sourcing corporate social responsibility.

The questions were introspective:

And the answers, alternatively useful, creative and critical.

But then I saw this:

Now McDonald’s is not the first company to host a Twitter chat by any means. I have personally attended several as well as hosted a few — including one coming up next week with UPS’ Chief Sustainability Officer Scott Wicker — with varying levels of participation from a usually diverse set of activists, journalists, executives and consumers.

Never before, however, have I been handed a “Twitter Chat Policy.”

An indication of things to come or…?

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Occupy Wall Street & Corporate America According to Michael Moore

25 Tuesday Oct 2011

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Interesting segment of Piers Morgan Tonight on CNN with Michael Moore in the hot seat and a live town hall to discuss Occupy Wall Street. Some of the highlights that made me think:

Who is to blame for today’s mess?

MM: One hundred percent corporate America. I don’t blame the government because corporate America funds and rules the government. The politicians act as their funders ask them to so blaming D.C. isn’t going to help anyone. The root cause is corporate America.

Are the “Occupiers” against capitalism or capitalist greed?

MM: Depends on who you ask. For students, this is about the debt they have when they graduate. For the parents, it’s the mortgage they owe on a house that is worth less than half of what they owe in debt. For many others, it is unemployment, lack of affordable health care, the manipulative bank industry and so much more.

Apple has more employees in China today than domestically and in many ways the company has become emblematic with capitalism. Isn’t China at least part of the problem?

MM: Part of the problem yes but do you know how much debt a student has when he/she graduates from Peking University? Zero dollars. American students? An average of $35,000.

It all started when General Motors decided that making $4 billion in profits wasn’t enough. That they had to stretch it to $5 billion and to do so, they would have to migrate tens of thousands of jobs to China.

And guess what, if Steve Jobs and Steve Wozniak were two entrepreneurs trying to start Apple today, they would have received no help from their local or national banks. That’s the America we are living in today.

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Also on my radar, the excellent coverage on CSRwire’s Talkback lately re: Occupy Wall Street:

Occupy Wall Street Considers A New Economy
Is the Occupy Movement a Call for Sustainability?
For Responsibility, Occupy Government as well as Wall Street

Revisiting the PR Take on CSR: “Corporate Responsibility is Not Public Relations”

30 Tuesday Aug 2011

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Last year, the Better Business Bureau hosted an event titled Good Business 2010, where the day-long agenda was to analyze the increasing confluence of public relations (PR) and corporate social responsibility (CSR). Here’s what I wrote then on Vault’s CSR blog:

A Belief System For Your Company

Edelman’s EVP for CSR-New York, Michael Holland while highlighting his firm’s approach, emphasized that corporate responsibility was emerging increasingly as an indelible part of brand management for companies, although North American companies, while initially slow to embrace it, were quickly getting on board.

Defining CR as “A belief system for a company” he broke its significance for companies into three segments: 1) the social and legal aspect; 2) its immersion into the operational model; and 3) how to leverage it for competitive share in the marketplace.

What is the ROI for corporate responsibility?

Citing a recent survey conducted by McKinsey, Holland said that the business case for corporate responsibility had never been clearer for companies. “Companies that paid attention to CSR in the last three years reported an increase in their share price of 43% against a 12% increase for those who didn’t.” At the same time, profits for the first segment of companies increased by 16% versus 7%. I’ve often noted that metrics and numbers speak louder than words. These then, need no further explanation. See more results from the McKinsey survey.

Noting that the pressure for accountability was no longer the voice of a few dedicated advocates and had shifted to mainstream demands from all stakeholders for a company, Holland stressed that the tipping point was already here: “CR cannot be ignored any longer. Shareholders, employees and clients are demanding it.”

What is corporate responsibility all about?

Holland, interestingly, chose to answer this by focusing on the key misconceptions about corporate responsibility. Funnily enough his counter-intuitive tactic worked, bringing up several questions from the audience. He put it like this:

CSR ≠ Green
CSR ≠ Strategic Philanthropy
CSR ≠ Public Relations

CSR isn’t PR, it’s About Your Business Strategy

I have discussed in the past the huge difference between conducting brand management and reputation-building and immersing CR as a culture of change into your company’s strategy. I asked Holland how he advises clients to walk that fine line.

“First of all, it needs to start from the top. Secondly, it needs to part of a company’s communication strategy. And finally you need to define what it means to track the progress of your corporate responsibility. The problem is that the marketplace believes that CSR is cause marketing and philanthropy. Our task is to overrule that and teach them that actually it’s about business strategy.”

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Now, with several communications firms announcing CSR practices, where are we headed with the confluence of PR, brand management and CSR? I turned to the latest entrant in the field, Ruder Finn. Take a read.

As Steve Jobs Departs, A Review of Our Love-Hate Relationship With Apple…and Sustainability

24 Wednesday Aug 2011

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As we slowly recover from the stupor of the not completely unexpected news that Steve Jobs has stepped down as Apple’s CEO, here’s a post from recent months that’s worth a retake.

Context: At Business for Social Responsibility’s (BSR) annual conference last year, Edelman’s Managing Director for Corporate Citizenship Carol Cone released the 2010 Good Purpose Study with a dramatic declaration: “Cause marketing is dead.”

The main overarching finding of the study, as regular readers will recall, was this:

87 percent of consumers worldwide believe that business needs to equate at least equal weight on society’s interests as on business interests.

Accompanying Cone at the release were panelists from Levi Strauss, PepsiCo and a personal favorite: The Economist‘s Matthew Bishop, who amid the hype and hoopla of the report, quietly asked: “Are we really going to stop buying Apple because of its crappy environmental policies?”

An excerpt, originally published on Vault’s CSR blog: In Good Company:

The GoodPurpose study by Edelman

“Cause marketing is dead”

That controversial statement is how Cone opened the panel, adding, “That [cause marketing] world is way over. Purpose has replaced cause marketing and branding.” Companies aren’t building marketing plans around a cause anymore, she argued. Rather, “they are infusing their very strategy and business model with purposeful corporate citizenship.”

Defining real purpose

Picking up where Cone left off, the always-entertaining Matthew Bishop began with a prediction: “If we continue the current road toward demanding transparency and corporate social responsibility, within the next five to 10 years, we will begin to see corporate board meetings being live streamed to select people.”

Chuckling about the ambitiousness of his own statement, he went on to note, “Likewise, the real question is how much of this data [in the Good Purpose study] is picking up on aspirations rather than real choices [of consumers].”

PepsiCo: Performance with Purpose

Alleging that PepsiCo’s latest mantra of “Performance with Purpose” was indeed a verification of this shift from cause marketing to purposeful corporate citizenship at companies, Communications Director for PepsiCo Americas Beverages Melisa Tezanos gave high points to CEO Indra Nooyi for pushing for a company-wide cultural change that today drives all their business functions.

[READ: Pepsi Takes Performance with Purpose to Heart: An Interview with Chief Personnel Officer Cynthia Trudell]

“However, Nooyi is completely unapologetic about giving ‘performance’ as much importance as the ‘purpose’ part and she makes no bones about it,” said Tezanos, adding that this helps everyone across the company stay committed to a culture of profitability with purpose. Explaining the drivers behind PepsiCo’s highly successful Refresh project, she further stated, “For millennials, social responsibility is huge. We’ve seen through research again and again that their purchase intent goes up significantly when the brand is associated with a good cause.”

And finally, referring to the findings of the Edelman study—and Cone’s earlier comment, she said, “Marketing used to be blamed for being short-termism. Today, marketers are the biggest defenders of long-termism.”

But would you give up Cola…or Apple?

Bringing the conversation back to a level plain field, Bishop concluded with a sobering thought, “But what is real and what is fake with purpose? Will Pepsi ever move beyond the heart of its products, i.e., increasing obesity? Are we really going to stop buying Apple [products] because they have crappy environmental policies?”

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Just some food for thought as we go on a whirlwind ride with the media in coming days on the history, the present, and the future of America’s favorite company, Apple. Don’t forget to add your perspective by leaving a comment or connecting with me @AmanSinghCSR.

And if you haven’t already, share your opinion on whether social media engagement make better brands or more effective leaders by taking this new BRANDfog survey on social media and leadership.

More on Edelman’s Good Purpose study: Encompassing 7,259 respondents in 13 countries, the study was conducted by consulting firm StrategyOne with the objective of analyzing whether—and how much—purpose plays into purchase decisions worldwide, and further, how these transform into consumer activism via social media.

Sustaining Timberland: An Interview with VP of CSR Mark Newton

02 Tuesday Aug 2011

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When one of the country’s few purpose-based and values-driven company announces new sustainability goals, chances are you won’t be as excited as you would be if it was BP, for instance.

Because we expect ambitious and aggressive goals from leaders, and at Timberland, this expectation is part of everyone’s job.

Before the boot maker announced its new set of revised sustainability goals earlier this week, I caught up with Timberland’s new Vice President for CSR Mark Newton on his new role, the goals, as well as their latest efforts at stakeholder engagement: Timberland’s new Communications Portal.

Sustainability: From Apple and Dell to Timberland

Newton, who has spent his entire career working on sustainability at electronics giants like Motorola, Apple, and most recently Dell, understands that the road ahead will be rocky as Timberland completes its merger with VF. VF owns several outdoor brands like The NorthFace, Wrangler, Jansport and Nautica.

We started with the new 2015 goals. What’s new about them?

“Focus,” said Newton. “Moving forward it is very important that we create focus for our companies, including a commitment to innovate from cradle to cradle.”

Timberland’s 2015 Sustainability Goals

Set in four broad categories of Climate, Product, Factories and Service; the goals are ambitious and aggressive, if not new or radically life-changing. I asked Newton the purpose of each category.

Climate: “This is a topical focus for us if not so much a functional one. But we’re not saying we’re going to be singularly focused on climate change but that this affects our customers and decisions and therefore, we must equip them with decisions and the right products.”

Product: “At some point we all want to start creating innovations that have a zero footprint. The idea is to move toward a vision of a closed loop product lifecycle. You can see where we are and where we want to go. It is directionally correct.”

Factories: “We have an obligation that is not just transactional to our suppliers, employees and other stakeholders. The whole idea of sustainability is to stay in business. In perpetuity, we cannot do that without treating our employees well and scaling our business properly.”

Service: “Timberland was founded on the idea of commerce and justice, of giving back and creating value. We offer our employees 40 hours to volunteer every year. Today we are asking what the impact of that workforce is. Where are we going with this, how do we prioritize our efforts and do it well?”

What underlines all of these goals and their success, however, is engaging and changing consumer behavior.

Changing Consumer Behavior: Timberland-style or VF-style?

Earlier this year, at the Annual GreenBiz conference, Timberland CEO Jeff Swartz said that sometimes companies have to lead consumers by taking a stand on what is right. “You cannot always wait for consumer demand to dictate your decisions,” he said.

Now with Timberland becoming a part of the VF family, are dynamics shifting? Will the merger bring a renewed and united effort in the apparel industry to shift consumer behavior or lead to inertia and inaction?

I put the question to Newton, who while new in his role, is a veteran in the consumer products industry. “We are having several conversations around this. We are Timberland and we will always be that. This is the reason people are interested in EarthKeepers and we will continue to move the needle,” he said.

What about Swartz’s inspiring declaration? Newton offered Timberland’s EarthKeepers product line as an example:

“The ultimate goal of every company that is working on sustainability is to be able to drive top line growth because of its sustainability efforts. It’s very rare to see top line growth associated with these things, many companies are running leaner and end up staying within compliance. At Timberland, our EarthKeepers product line is actually doing that with double-digit growth in the first quarter.”

Authentic Communications: Engage the Consumer, not Just Inform

With skepticism already high in the market, there is a fine line between selling more units and ensuring responsible consumerism. EarthKeepers seems to be clearly bucking the trend and providing a new, profitable way of doing business sustainably.

Was this growth the result of consumer education, eco labels, or increased communication?

“Authenticity. We’re finding success because it is authentic. We are intentionally focused on products that are environmentally friendly and socially conscious. And we are committed to continually communicating that. We’re not waiting for everything to become perfect, we’re putting it out there and calibrating it as it evolves,” he said.

Examples? Newton offered the eco-index, which Timberland was instrumental in creating and pushing out. “We are promoting the index so we can create real change and movement. That’s exciting and offers us a chance to drive real, calculable change,” he added.

What VF brings to the table then is scale. “VF has been a partner for years on making the process much more efficient. Now the merger will allow us to collectively drive things that Timberland alone simply cannot do. This bigger opportunity is huge for us,” he emphasized, adding, “It’s also not just forward-looking things and what we can do upstream. VF has a very efficient process in place because of their brands. We have had limited impact there but now we can have much more.”

Timberland’s New Communications Portal: CSR in Real Time

With Timberland already being aggressively visible and vocal in the consumer marketplace, why did Newton and team feel the need to launch a new CSR communications portal?

“We’re segmenting the conversations on our website around products and around topics so everyone has a better sense of clarity. Even though our authenticity ensures that sustainability conversations become natural in all parts of our business and you don’t have to go to the CSR portal to have a CSR conversation, we felt that different stakeholders have different perspectives. You can still go to the products portal and have the same conversation as you would on the CSR portal, because the intentional design, how we conduct business with suppliers and community issues are woven into the product and the product description.”

Why then is the new portal necessary if sustainability is so intricately embedded into the work culture at Timberland?

“We are having conversations with a very vast and diverse spectrum of people, from wholesalers and retailers to direct consumers. They all come with very different demands and perspectives and we want to offer them the opportunity to engage in the language they understand best,” he explained.

Fully integrated with social media tools, the portal is designed for consumers looking for details on green products, interesting stories and much more. Not only can you go to the redesigned portal and discuss Timberland products, you can also discuss the team’s CSR efforts, join ongoing conversations through their Bootmakers blog, and chime in on more topical discussions around the Green index and climate change.

Admittedly, many companies continue to struggle with this balance between preserving the granular stuff and promoting more general conversations around products.

For Timberland, the answer was to lead in both.

“People can go granular as they want or stay as generalist as they’d like. What’s different about the portal is that we are not starting conversations by discussing one of our pillars or metrics but focusing on stories that matter and then getting to the things that are underneath those stories; this marks a fundamental shift for our website,” Newton added.

Being a communications geek, I can definitely attest to Newton’s excitement about this new portal. The ability to throw open your business practices and product lifecycle to your stakeholders takes gumption and a resolute belief in transparency.

The Timberland team knows that this throws the door open to endless questions and scrutiny but Swart’z recruits are used to that and know that open engagement is the only way to maintain authenticity and empower their stakeholders toward sustainability and a zero impact footprint.

This is mission critical for Timberland.

As Newton put it, “Regardless of what happens post-merger, we are all in this together. Our values are integrated into all of us and everyone who works here. Jeff Swartz might be the leader but you can expect to hear the same things from all of us.”

This is Timberland’s — and VF’s — opportunity to drive the apparel industry toward a more sustainable future. The 2015 goals are the means to an end, a future that VF and Timberland can now together impact much more powerfully.

Comments? Leave a comment, email me or connect @AmanSinghCSR.

VIDEO: A Test in Corporate Transparency: Winning One for the Blue Shirts

29 Friday Jul 2011

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Last week I was at Best Buy headquarters in Minneapolis to moderate a live webinar with its CSR and sustainability executives. Joining me: Mary Capozzi, senior director of CSR, Leo Raudys, senior director of environmental sustainability and services compliance, and Hamlin Metzger, senior manager of corporate responsibility.

The agenda: To discuss Best Buy’s annual Sustainability Report and offer a live audience on Livestream and Twitter the opportunity to ask questions in real-time.

My job: To question, dig and examine, while moderating questions between the panel and the audience. About 20 minutes into the webinar, which is archived below — well worth a listen whether you are a sustainability nut, a tree hugger, a nonprofit exec, a job seeker or simply an electronics user — questions started streaming in.

From conflict minerals to employee education, every question was fair game.  While @Gchesman asked whether being a well-known company affects the level and degree of time and money spent on CSR and sustainability, @Davidcoethica wanted to know how Best Buy can better balance its role as a promoter of consumption of products against a sustainability ethos, and Robin Cangie wondered how Best Buy can help us all become more responsible consumers?

The conversation, thanks in part to an active and engaged audience, and wonderfully diverse questions, was invigorating, informative and challenging.

Barring the repeated mentions of their recycling efforts — sorry Leo, its a pet peeve — which to be fair is a huge and important undertaking for the global electronics retailer, the panelists were clear, comprehensive in their responses and unapologetically honest about their challenges: That there is a ton of work ahead and that they hadn’t figured it all out yet.

But as David Connor wrote earlier this week, when you’re a global player like Best Buy, expectations are higher as well. Did Best Buy live up to the expectations of CSR activists? Perhaps not.

Flip the coin though for a second.

Did they go on the defensive when I asked them why their retention rates were remarkable (74%) but the diversity of their recruits (12% African-American, 14% Hispanic; 180,000 employees) was quite underwhelming? No.

Did they dodge repeated questions about educating their supply chain, influencing consumer decisions, or the recently drafted UN Guiding Principals on Human Rights? No.

Bottom-line: Capozzi and team did not have all the answers but they didn’t pretend to either.

And that’s where, as an independent journalist, they get points from me for an attempt, however small, at open transparency, willingness to be accountable, and daring to do something new.

Remember the 11 Challenges for Corporate Sustainability? Well, a significant number of those relate to fear. For the Best Buy team, this webinar was a successful exercise in effectively addressing their own fears.

And that is where they just won one for their team of blue shirts.