The Tide Has Turned: 2008 Conscious Commerce Predictions by Sam Taylor, Founder of Reputation Dynamics

Social Purpose Alignment is a Strategic Imperative for Making a Profit

“In 2007, the business case for corporate responsibility (CR) was accepted in the business community,” according to Sam Taylor.

Key Corporate Responsibility Milestones in 2007:

• Companies ‘License to Operate’ obligations were forced to change due to world events, regulatory issues, compliance and environmental concerns
• Companies acknowledge that initiatives will have a major impact on business strategies over the next few years
• Growth of more evidenced-based research tracking the value and impact from multiple functions including brand, stakeholder relations, customer behaviors and reputation
• Increasing number of newly created executive positions
• Growth of dedicated resources and services including sustainability development firms, environmental, news services, academics and influencers’
• A plethora of social entrepreneurs, for and not-for-profit/NGO companies have provided concrete evidence that while striving to make a profit, they can make a difference
• Growth of multiple investment vehicles such as alternative energy mutual funds
• Philanthropic contributions polled among 136 large corporations by the Committee Encouraging Corporate Philanthropy’s ‘Giving in Numbers’ research found that the median dollar value of contributions increased from $29.5 million in 2005 to $32.6 million in 2006
• Cause-related marketing is a $1.44 billion business

Predictions for 2008:

Step up to the New Rules of Reputation Management: Social innovation, sustainable development, trust and transparency are the new currency for tomorrow’s companies doing business.

Evaluate and Measure Program Impact: Assess current initiatives, stakeholder relationships and impact in the community. Use this platform to design and implement sustainable programs aligned with business objectives, as well as determine benchmarks for results measurement.

Employee and Customers Want Businesses to Invest in Communities they Touch: While health, safety, price and quality are top-of-mind for conscious consumers, they want companies to meet their personal goals and positively impact society.

Philanthropy is an Integral Part of Doing Business: CEOs and their companies need to continue to invest strongly in their communities, responding to the growing expectations of employees, customers and other stakeholders.

Move the Needle on Social Issues: There are plenty of causes out there that need support both at home and in emerging markets. Some critical causes in need include HIV/Aids, TB and malaria, poverty, infant mortality, wildlife preservation and protecting indigenous peoples.

Unleash the Power of NGOs for Greater Good: Align more aggressively with non-profit social actors – NGOs, (UN Agencies, development agencies). Companies have a timely opportunity to collaborate with some competent NGOs who are already in the trenches addressing key causes.

Stakeholder Liaisons: Harness the power of key stakeholders and communicate with them regularly on and offline. Solicit the knowledge and opinions of customers and employees. It is a powerful tool to track and influence patterns of behavior, and, don’t forget tomorrow’s leaders – the younger generation and their social networking habits.

Give the Future of Green this Holiday Season: Your Investments

As we ponder 2008 resolutions under the shade of our volatile US economy, it might be prudent to consider alternative energy investments as part of re-balancing our portfolios. While the topic of ‘green’ continues to dominate the headlines, it is a good time to put ‘your money where the green is.’

According to a United Nations report in 2006 investors poured in $71 billion into companies in various fields of renewable energy and energy-efficiency technologies. Experts predict that it will rise to $85 billion this year.

While there was a rush to alternative energy investments during the oil crisis in the 1970s and tech bubble in the 1990s, the current sentiment is that these are here to stay – owing to the rising demand for power, concerns about oil resources, and climate change. Renewable sources today only produce only 2% of the world’s energy, but account for 18% of world investment in power generation. The rising popularity of alternative energy technologies and capacity will attract venture capital funding, legislative incentives and business support. Developments of note:

• The European Union is mandating that 20% of energy use comes from solar, wind and other renewable sources by 2020
• The U.S. House of Representatives passed an energy bill mandating that 15% of electricity from private utilities be generated from renewables by the same time
• Governments are providing subsidies, incentives and tax breaks to speed up the development of alternative energy technologies
• General Motors announced that 50% of its vehicles will use alternatives to gasoline within the next five years

You know that when Wall Street rises to the occasion, it is to be taken seriously. Several new exchanged traded funds have been launched to invest in alternative energy companies, as well as a new crop of mutual funds. These include a combination of ‘pure plays’ and ‘market leaders.’

Since the start of the year, this small but growing pool of funds have posted solid returns, and in many cases outperforming the S&P 500. Of note:

• New Alternatives Fund (NALFX)
• Guinness Atkinson Alternative Energy Fund (GAAEX)

Some resources for homework and due diligence - www.energytechstocks.com - www.altenergystocks.com - www.greenchipstocks.com.

There’s still time for a green shopping spree………………….

Sustainable Business Growing in Importance and so is the Link to Reputation – Do You Know Yours?

The 'Call to Action' messages and marketplace research continues to echo in the growing corporate responsibility community – corporate – academia – non-profit - NGOs……..

At a Social Enterprise Conference at Columbia Business School last Friday, a headline message presented at a keynote address by Patrick Cescau - President Group Chief Executive of Unilever - following a special tribute to Anita Roddick of The Body Shop:

“Corporations of the future will not survive unless they adopt and support social innovation and sustainable development objectives”

An advocate of ‘Doing Well by Doing Good’ and Recipient of the 2007 Botwinick Prize in Business Ethics, Unilever has demonstrated commitment to its social and environmental sustainability initiatives via its alliances with The Rain Forest Alliance and World Food Programme – http://www.unilever.com/.

That same week, Business for Social Responsibility (BSR) announced the results of a survey in conjunction with their annual conference in San Francisco where more than 330 participants were polled out of 1350 leaders from 50 countries in attendance - www.bsr.org/conference. Key highlights included:

• 82 percent – private sector executives, NGOs and policymakers around the world say they will make corporate social responsibility a core business strategy in the next five years
• 47 percent said a core reason for focusing on sustainable business is consumer behavior and concerns about reputation
• 31 percent said energy efficiency and renewable energy are at the heart of their corporate climate change effort
• 69 percent said China is the country that will most influence the evolution of corporate responsibility in the next five years

Corporate responsibility is climbing higher and higher on the business and public agenda…..

So, what is the fundamental next step to properly create the CR road map?

We, at Reputation Dynamics, suggest a brand reputation analysis and stakeholder evaluation to provide the strategic foundation for the development of a sustainable, long-term program.

Unleashing the Power of NGOs for Greater Good

As companies continue to respond to the power of private citizens and their quest to improve society, they are also being forced to re-evaluate their partnerships and accountability of their contributions to the community.

Never has there been a greater time to align more aggressively with non-profit social actors – NGOs (UN Agencies, development agencies and civil society organizations).

The business focus of NGOs includes critical initiatives such as healthcare, disease, energy efficiency, agriculture, environmental quality protection, children’s’ poverty, civil rights and so on. However, some NGOs are considered to be disorganized, bureaucratic and have fragmented communications.

It’s not all about philanthropy...............

Collaborating and aligning with these businesses’ are important avenues for giving, can both benefit and mobilize the public at large in advancing good causes.

Companies have a timely opportunity to review and collaborate with some competent NGOs thanks to The United Nations Global Compact, Dalberg Global Development Advisors and the Financial Times.

The companies aligned to identify and analyze a group of non-profit social actors who have proven competence in partnering with companies. Dalberg received 865 valid partnership ratings from 445 companies in response to a survey distributed to more than 20,000 companies worldwide about their partnership experiences - rated on adaptability, execution, and communication. Key highlights of the findings:

• 73% concluded that corporate partnerships would be important for their own company over the next 3 years
• The majority cited successful implementation of effective and relevant CSR programs as the main reason for partnering with NGOs
• Core business and advocacy partnerships are perceived to have higher impact than those focused on philanthropy

The three most pursued areas of partnership were in Education, Environmental Protection and Communications, while Microfinance received high interest.

Lions Club International, Environmental Defense, WRI and TechnoServe ranked among the top 34 global organizations listed. Additionally, 53 local/regional NGOs emerged as leaders.

Proper collaboration and alignment with the NGO community as a key component of a company's responsibility initiatives, represents considerable advantages and benefits for both parties. These include increasing the profits of their businesses and donor acquisition, and for NGOs to take advantage of corporate resources, expand these markets, make contributors' money go further and.......enable greater community impact.

For more information about this study – www.dalberg.com
‘Business guide to partnering with NGOs and the United Nations’

Please Sir, Can I have Some More?

The fact of the matter is that there are still more than two million New York City residents across the five boroughs at risk of hunger. Despite the city’s emergency food programs (EFP’s) – approximately 900 soup kitchens and food pantries in New York - providing food to half of them, there is still a dire food shortage.

A couple of other statistics:

• Approximately 500,000 city residents are eligible but not receiving food stamps, many of whom may be turning to EFPs instead. Less than one-half (46 percent) of all EFP participant households are enrolled in the federal Food Stamp Program.


• Of all EFP participant households, about one-third (34 percent) choose between food and housing, about one-third (34 percent) choose between food and utilities, and more than one-fifth (22 percent) choose between food and medical care.

I bring you attention to The Food Bank’s NYC upcoming hunger awareness Go Orange campaign taking place on October 15-19. The campaign is calling upon all New Yorkers’ to do what they can do to help raise funds for the holiday season and the goal is to raise one million meals.

This year, city landmarks, media partners, corporations, musicians, restaurants, supermarkets, retail stores and more are Going Orange throughout the city to help raise these funds and awareness for hunger relief. New York’s skyline will also Go Orange including its most famous landmarks and towers such as The Empire State Building.

For further information about how to participate and take action: http://www.foodbanknyc.org/

A little Orange anyone?

Source: Hunger Safety Net 2004, Hunger in America

How ‘Doing Good in Society’ Increases Competitive Business Edge - Audio Presentation

Companies ‘license to operate’ obligations have changed dramatically due to world events and the globalization of our economy.

The headlines are dominated with news about everyone trying to be green, product quality and safety, corporate reputations and performance. With recent books such as ‘Giving’ by Bill Clinton, and ‘The Triple Bottom Line', co-authored by Andrew Savitz and Karl Weber corporations key stakeholders’ are more educated than ever about the contributions and impact of corporations on society, economy and the environment.

Companies are now expected to be good corporate citizens not only by their shareholders and government regulators, but by their customers.

However, doubt still lingers in the business and financial community about justifying ‘Doing Good in Society’ and the point of sustainability. The fundamental challenge for them is whether it distracts from core business focus areas, provides long term growth and returns to investors.

The tide is turning for the naysayers.........

A recent national survey conducted by Grant Thornton among 500 business executives uncovered that 77 percent said they expected corporate responsibility initiatives to have a major impact on their business strategies over the next several years. Furthermore, the three greatest benefits of enacting CSR are: improves public opinion and customer relations, as well as attracts/retains talent. For survey results, go to www.grantthornton.com - Corporate responsibility becoming integral to business strategy.

We invite you to listen to our audio presentation that provides a perspective on how and why corporate social responsibility (CSR), is becoming an increasingly critical component of reputation management and competitive business edge.

http://www.podcastnowproductions.com/dx/node/515

The CRO Conference Addressing 'Operationalization' of Sustainability on September 12

The CRO has a stellar line up of speakers and timely topics at a one-day fall conference to be held at the Union League Club in Chicago tomorrow.

Topics will cover stakeholder engagement, supply chain, and alignment of CSR with the bottom line. Also, they will address two major trends facing corporate social responsibility officers, in the growing $32 billion CR industry; the expansion from merely defense in the face of regulatory challenges to offensive functions, or making sustainability efforts operational.

Featuring keynote speaker Murray Martin, CEO of Pitney Bowes, the conference will also include a special multi-level company session with a board member, marketing communications expert and manufacturing executive from a global corporation discussing their global sustainability efforts—from board room to execution.

A panel featuring Susan Graff, Principal of ERS along with the CEOs of Baxter Healthcare and Interface Group will share learning’s about setting and surpassing sustainable practice benchmarks.

The CRO is a membership media platform for corporate practitioners, professional service providers and non-profit influencers' in corporate responsibility. Example members include IBM, Avon, Starbucks, Intel, Pepsi, and Harvard.

For more information - http://www.thecro.com/conferences.