Tag Archives: LinkedIn

Crowdfunding for Capital Creation: Fad or Business Opportunity?

03 Thursday Jul 2014

Posted by in CSR, CSRwire, Guest Author

≈ Leave a comment

Tags

, , , , , , , , , , , , , , , , , , , ,


Co-written with Patricia Smith

“You can’t evolve into being a social media company. You have to be born social,” began Lou Kerner, veteran internet analyst and former managing director of the Private Shares Group at LiquidNet, an institutional equities marketplace. {Kerner departed LiquidNet within three months of taking the job citing differences in views with upper management.]SoHo_Loft_Capital_Creation

The event: The SoHo Loft conference on capital creation and crowdfunding at law firm Reed Smith’s palatial New York City office.

The topic: Crowdfunding and social media, i.e., how investors, analysts and executives can now use the power of social crowds to raise capital.

Crowdfunding isn’t just the newest — and hippest — way of raising capital for entrepreneurs today. It is also a wide open opportunity for investors, analysts and activists to build new enterprise and address the change they continue to seek from traditional business. Crowdfunding, essentially, builds on our hunger for social connections to raise awareness, pique interest and channel that into opening access to capital for worthy projects.

Case in point: Kickstarter, RocketHub, Seedmatch, etc. Some would even put DonorsChoose in the same category.

Congressman Patrick McHenry, R-NC, who opened the conference, alluded to President Obama’s recent appeal to pass the crowdfunding legislation, titled The Entrepreneurs’ Access to Capital Act, to free up capital for entrepreneurs. A firm and emphatic supporter of the bill, he added:

“The marketplace desires this. Why else would so many people come here on such a gloomy day if you didn’t want this? Capital must flow where it is best used. This is what is at the heart of capital formation. Get to the point where the American dream was to grow a business and eventually access our public markets.”

Choosing to use Innovator Dilemma author Clay Christensen’s theory of disruptive innovation, Kerten exemplified Wal-Mart and Amazon not dominating the fast-growing social media space today despite their size and history because “you have to be born social to be social.”

Web 2.0: Banking on Social

KickstarterPrimarily “Second Internet” or Web 2.0 companies are all about facilitating sharing, he emphasized. Facebook is the dominant platform for these activities, he continued, adding that Twitter, Tumblr, LinkedIn, Pinterest and YouTube represent formidable platforms in their own user following and growth.

In this landscape, brands can no longer buy audiences. “They have to earn them because users choose what messages they’ll share with their social network,” he argued. Example: Gaming company Zynga’s ability to drive Cityville to 100 million users in just seven weeks by leveraging Facebook users’ willingness to share their passion.

Smart brands understand people with high social media influence can do a lot to help or hurt their brand with a simple tweet or Facebook post. Klout is the perfect example of this growing niche of influencers. In its short existence, Klout has rated over 100 million individuals’ influence on social media and devised a score that Kerner termed as the equivalent of a FICO score for the Internet.

The Palms Hotel in California, in fact, is using these scores to decide who gets an upgrade. Some airlines are using it to decide who gets bumped from a flight, he added.

Social Media: Fad or Opportunity?

Offering up a recent study of Facebook usage, Kerner noted that 16 percent of Facebook users’ time spent online was on Facebook. Further, that time spent online was up 40 percent from the year before. Compare this, he said to Facebook’s latest product, Frictionless Sharing, which allows you to share content with your Facebook network without actually being on the Facebook platform. The opportunities? Endless.Zynga_s_Cityville

Twitter’s uniqueness, on the other hand, is in the immediacy it offers users. This, according to Kerner, is only going to grow. Pointing out that news organizations were one of the weaker members when it comes to using social media, he added: “Of the top news organizations, 93 percent have Twitter links going back to their own content and only 2 percent have links that send them someplace else.” For Kerner, this emphasis on pushing out content and resulting failure in engaging their audience in real dialogue translates as lost revenue.

We’re already using social media to channel our passions, thoughts and build deeper relationships. So, why not also to fund projects and new ideas?

What do you think? Could crowdfunding be the way forward for budding entrepreneurs tired of working in a closed-door market?

Originally written for and published on CSRwire’s Commentary sectionTalkback on February 28, 2012.

Advertisement

The Makings of a CSR Program: In Conversation with Avon, LinkedIn & Jones Lang LaSalle

02 Wednesday Jul 2014

Posted by in CSR, CSR reporting

≈ Leave a comment

Tags

, , , , , , , , , , , , , , , , , ,


That was the focus of one of the panels at Net Impact 2011 featuring Avon’s VP of Sustainability and Corporate Responsibility, Tod Arbogast; LinkedIn’s Head of Employment, Branding and Community, Meg Garlinghouse; and Jones Lang LaSalle’s SVP of Sustainability Strategy, Michael Jordan.

Representing companies that are often called out for their out of the box thinking on social responsibility and sustainability, the speakers discussed a range of topics including the always debatable definition of corporate social responsiblity, measuring employee engagement as well as the skill sets that go into the makings of a CSR director.

Main highlights:

CSR: Burden or Boon?

“CSR should die as a term. CSR departments tend to take away from possible impact. Just like ‘global’ is part of everything we do at LinkedIn, so is CSR,” Garlinghouse emphasized, noting, “Employee engagement is key for CSR, not separate departments.”

Jordan picked up where Garlinghouse left off adding that businesses must leverage engaged employees and identify champions early on for successful CSR programs.

“CSR has a direct tie-in with our business. After you’ve built the business case and identified regional champions, work together on identifying and building in efficiencies,” he advised.

“Build friendships, be seen as pragmatic and capture early wins. Then leverage those to go further and faster,” Arbogast said.

Measuring Employee Engagement

But how do you measure the efficacy of employee engagement?

A survey I conducted a few months ago with Smartbrief on Sustainability asked whether companies were measuring employee engagement on CSR. With over 70 percent of respondents saying they did not measure employee engagement, how were these panelists identifying wins and scale?

Once again, there was a healthy difference of opinion across the panel. While Garlinghouse emphasized company mission, the other two focused on operational procedures and policies.

“We recruit on the notion of social impact. These conversations happen during the interview process,” Garlinghouse alluded, noting LinkedIn’s entire modus operandi is based on “creating economic opportunities.” LinkedIn also offers employees the opportunity to do whatever they feel passionate about one Friday a month. “They have to come to work but they can pursue whatever they are interested in,” she said.

“For us, measuring the progress of your platform from awareness to implementation to operational strategy has always been key,” added Jordan.

Defining CSR With Strong Stakeholders

Responding to an audience question about resourcing for CSR initiatives, Jordan emphasized that most of Jones Lang LaSalle’s sustainability activities have been client-driven. “There is a clear business case because our clients are demanding sustainability strategies,” he said.

For Garlinghouse, employees have been the most forthcoming about corporate social responsibility initiatives. “Our CEO is very involved. Also, our employees are really committed to our company mission,” she said.

Skill Sets for a CSR Officer

Arbogast, who joined Avon in late 2009 after successfully leading Dell’s Giving program for a number of years, is a well-sought after speaker at the Net Impact conference each year. This year too, he was asked what aspiring professionals could do to become effective CSR officers. He laid out three crucial skills sets:

  1. People’s Person: Know how to communicate with people from all kinds of backgrounds and perspectives.
  2. Conflict Resolution: You must be a skilled mediator. Know that business cases will vary from group to group and you must be willing and diplomatic enough to finesse the tension lines and bring about resolution.
  3. Business Pragmatism: You must be a realist and know the business inside out. For CSR and sustainability programs to be effective, you need to understand what drives decisions and action.

Originally written for and published on CSRwire’s Commentary section Talkback on November 9, 2011.

The Unruliness of Corporate Responsibility & Hyper Transparency: Quotable Quotes from Net Impact & BSR 2011

09 Wednesday Nov 2011

Posted by in CSR, CSR reporting

≈ Leave a comment

Tags

, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,


I spent the last two weeks attending and speaking at the Net Impact and BSR conferences. As is typical at both conferences there is always too much to choose from and a lot to absorb. Since I cannot offer you a summary of each and every panel I attended/spoke at, here are some of the top line quotes heard at the conferences:

CSR: Always a Difference in Opinions

“CSR used to be about doing the right thing. Now it’s all about how it makes business sense.” – Campbell Soup’s VP for CSR Dave Stangis

“I hate the term CSR. It has slowed the movement and in many ways ensured that it is not built into systems, accounting, etc. I prefer [the term] sustainability although that’s not a big favorite either.” – Lynelle Cameron, Director of Sustainability, Autodesk

“We think CSR is good business.” – Suzanne Keel-Eckmann, National Director for Corporate Responsibility and Sustainability, Deloitte

A bag of sweet potato fries at Burgerville in Portland, Oregon: Social messaging done right?

“CSR should be led by charity and employee engagement, not CSR departments.” – Meg Garlinghouse, Head of Employment Branding and Community, LinkedIn

“Our CEO still believes that he is the company’s chief sustainability officer. But he realized that we need to be more organized and structured in our efforts because there is a lot to be done.” – Bea Perez, Chief Sustainability Officer, Coca-Cola in response to Reverse Cause Marketing: Coca Cola’s Pursuits in the Middle East

The Role of Business in Social Enterprise

“We must see social problems as business opportunities.” – Carol Cone, EVP, Edelman

“I worked on Wall Street, driven by greed. Regardless of what anyone says, greed is not good. You get so immersed in the system you forget what all you can do with your life.” – Charles Kane, Former CEO and Board Member, One Laptop Per Child

“A lot of charities are beginning to worry that a lot of the problems they have been trying to solve are not going away. Business still tends to be more sustainable.” – Steve Andrews, CEO, SolarAid

“In the last few years, business has lost tremendous trust in the marketplace. That we are GOOD now rests on us.” – Ofra Strauss, Chairperson and former CEO, The Strauss Group 

Personal Responsibility

“When you know what you’re doing is helping thousands, the payback is so much more fulfilling than any number of stock options and bonuses.” – Charles Kane, Former CEO and Board Member, One Laptop Per Child

“We need to change without giving up who we are. There are no riots against business that are profitable. We need to talk with them, not talk to them.” – Ofra Strauss, Chairperson and former CEO, The Strauss Group

“The more you peel the onion, the more you realize there is to be done. You just need to be constantly excited about peeling the onion.” – Brian Dunn, CEO, Best Buy

The Role of an MBA

“No profession exists to make the practitioners rich. There is always a higher purpose.” – Gregory Unruh, Director, Lincoln Center for Ethics, Thunderbird School of Global Management

“I don’t know if its [The MBA Oath] is going to work. But it is in the right direction and symbolizes a complete shift in mentality.” – Max Anderson, President and Cofounder, The MBA Oath

“I’m waiting to see the day when a new employee tells me they attended a class in college called Change Agent 101.” – Anonymous 

Transparency

“We’re from the Midwest. We don’t advertise our initiatives. But lately there has been a shift in this thinking and our communication style. Transparency is a journey and we are in the early stages of that.” – Kate Heiny, Group Manager of Sustainability, Target

“The priority should always be why not disclose instead of why disclose.” – Chris Jochnick, Director, Oxfam America

“When you are increasingly naked, fitness is not optional.” – Quoted by yours truly during a BSR panel on hyper-transparency. Citation: Macrowikinomics

Integrated Reporting

“For us, integrated reporting starts with the thinking within the company on how they will sustain their value in the future. Integrated reporting starts with integrated thinking.” – Jessica Fries, Director, International Integrated Reporting Committee