Africa – The Force of Change

‘As I have said, the first thing is to be honest with yourself. You can never have an impact on society if you have not changed yourself…Great peacemakers are all people of integrity, of honesty, but humility.’ Nelson Mandela

The energy and enthusiasm about Africa was running high at the first US-Africa Tourism Seminar on 2/27 developed by The Corporate Council on Africa and Africa Travel Association. While Africa has its fair share of political, economic and humanitarian challenges, the continent is poised to be a major travel destination and location for investment and business exploration.

In conjunction with the ‘Greening’ of the travel industry, Experiential Tourism, a growing sector beyond ‘sun-and-sand tourism,’ is expected to grow to 25% of the world’s travel market within six years - $473.6 billion a year.

As Gregg Truman, vice president of marketing for South African Airways pointed out, Africa commands only 2.4% of global travel market share, with only 64 million people taking trips to Africa.

With a new breed of ‘sustainable tourists’ seeking culturally authentic travel experiences that protect the environment and integrity of the destination, VolunTourism and travel philanthropy opportunities are on the rise. Africa is rich for its natural resources, tourism and wildlife, dancing and music – among others.
Opportunities for ‘Doing Good in Africa’:

Corporations and individuals have abundant opportunities to make a difference by addressing causes in need and making a personal connection with African communities. Some suggestions include:

• Engage in ongoing education for the public about the realities and opportunities
• Encourage family and stakeholder visits to see communities with causes in need
• Align with NGO/non-profits to help mitigate extreme poverty, disease, threats to wildlife and tourism, and infant mortality
• Provide benefits and incentives for local businesses, workforce, products and services
• Donate funds and/or volunteer in communities

A special thanks to my fellow panelists’ on Experiential Tourism, their engaging presentations and fascinating work. Sean Barlow - Afropop Worldwide, El Hadji Aziz Gueye – Senegal Tourist Office, Lelei LeLaulu - Counterpart International, Dr. Lawrence Martin - Stony Brook University, Sharr Prohaska - New York University, Kevin J. Wright - World Religious Travel Association.

The Corporate Council on Africa (CCA) and Africa Travel Association (ATA) Host First US-Africa Tourism & Sports Seminar in New York

The seminar theme - Making Africa the World’s Next Premiere Travel Destination - will provide more than 200 leaders from the public and private sectors an inside look into the vast array of business exploration and investment opportunities in the travel and tourism industries in Africa.

Africa is poised to increase its world market share in tourism and this seminar will help lay the groundwork placing Africa top-of-mind among American tourists and investors.

Currently sub-Saharan Africa accounts for 1.3% of the world market share in the travel and tourism industry. In 2007, the sector generated close to $90 billion in economic activity and is expected to exceed $185 billion within the next 7 years for the region, demonstrating positive growth and investment opportunities.

Sam Taylor, founder of Reputation Dynamics and Associate Partner of Corporate Donor Travel for Elevate Destinations, will be participating in a workshop and address the growth of Experiential Tourism in the context of alignment with economic, social and environmental responsibility trends. Experiential Tourism, encompassing eco-, nature, heritage, community and adventure tourism, is expected to grow three times faster than the tourism industry as a whole. In fact, beginning in the 1990s, this sector has grown 20-to-34% per year and could grow to 25% of the world’s travel market within six years, taking the value of the sector to $473.6 billion a year.

Event topics include sports and tourism, infrastructure development, marketing Africa, traveler perception, travel industry-related investment opportunities, airline and hotel development, as well as travel trends in Africa.

CCA, established in 1993, is a nonpartisan 501 (c) (3) membership organization of nearly 200 U.S. companies dedicated to strengthening the commercial relationship between the U.S. and Africa. CCA members represent nearly 85 percent of total U.S. private sector investments in Africa. The organization is dedicated to bringing together potential business partners and to showcase business opportunities on the continent. For more information on CCA, seminar and agenda visit www.africacncl.org.

The seminar will be held February 27-28, 2008 at the Jacob K. Javits Convention Center in New York, immediately preceding The New York Times Travel Show 2008.

Statistical Reference: World Tourism Organization (WTO).

Reputation Dynamics Joins United Nations Global Compact

Reputation Dynamics today announced that it has signed the United Nations Global Compact, reinforcing the company’s commitment to help companies advance their corporate social responsibility agendas among key stakeholders (employees, customers, board members, investors and suppliers).

Established in 2000, the Global Compact, the world’s largest voluntary corporate citizenship initiative, brings together nearly 3,700 companies from more than 120 countries to advance ten universal principles in the areas of human rights, labor, environmental sustainability and anti-corruption. Through the power of collective action, the Global Compact seeks to promote responsible corporate citizenship and integrate these ten principles in business strategies and operations around the world so that business can be part of the solution to the challenges of globalization and sustainable development.

Joining the Global Compact is an extension to Reputation Dynamics corporate responsibility advisory services and current initiatives such as Conscious Commerce - an innovative business model and methodology to help companies properly align and market stakeholder-driven programs - and it’s strategic alliance with Elevate Destinations providing corporations with opportunities to visit destinations where they have business and/or philanthropic interests (http://www.elevatedestinations.com/).

Additionally, Reputation Dynamics engages in education and advocacy by providing perspectives to help companies align ‘Doing Good in Society’ with competitive business edge via this popular blog.

"We are proud to be supporting the organization’s 10 principles and its efforts to advance corporate citizenship and challenge business to take a responsible leadership position," said Samantha Taylor, Founder of Reputation Dynamics. “This is well-aligned with our core values and corporate vision."

More information about the Compact can be found at www.unglobalcompact.org.

Fast-Tracking Kenya’s Recovery….

It seems just like yesterday when my mother and I were driving to our home outside of Nairobi barely making the curfew deadline. Our heads were slightly ducked behind the car windscreen as my mother revved the accelerator past the security checkpoint.

In 1982, my family witnessed the devastating effects to a country and its people of a Kenyan coup d’etat attempt, which failed to overthrow President Daniel arap Moi’s government. On August 1, a group of soldiers from the Kenya Air Force took over the local radio station and announced they had overthrown the government. Sending Nairobi into utter chaos, about 145 people were killed and losses from widespread looting and destruction of property amounted to $111 million. My family was forced to hide out at home ‘on rations.’

Some parallels can be made between the ‘Hours of Chaos’ in 1982 and recent events surrounding President Mwai Kibaki’s disputed re-election, violence and deaths.

Of note, the poorest living in the slums of Nairobi and in rural areas, had all too little to lose in the violence and life for Kenyans once again more difficult.

The Kenya Presidential Elections of December 2007, are potentially the most damaging episode to national unity since the assassination of Tom Mboya in July 1969.

While there is celebration among select supporters for President Kibaki, the fear gripping the country is almost unprecedented in its 44 years of independence - as the Government and ODM continue to differ over the way forward for a peaceful settlement to the political crisis.

And, this is such bad timing for Kenya…..

Considered one of the most beautiful and more prosperous regions of Africa, Kenya has an estimated GDP growth of 6.7 percent and its unique landscapes, natural world and wildlife attractions brings in $900 million in tourism a year.

Kenya’s economy has been devastated by the violence and its reputation as a stable haven tarnished in a matter of weeks. As of 1/7, the economy was reported to have lost approximately $1 billion as a result of the post-election violence.

Some Perspective…

Kenya’s transition from dictatorship to democracy continues to be a tumultuous journey owing to its deeply rooted history in the political economies of colonialism, neocolonialism and neoliberalism. The country is further tainted by ongoing corruption and scandals under the rule of former dictators’ such as President Daniel arap Moi.

The first Kibaki government was elected in 2002 on a strong anti-corruption platform at a time when the country wanted a transparent government, justice brought to former corrupt officials and focus on economic development. While new corruption scandals occurred, the Kibaki administration delivered on the economy – jumping from 0.6% in 2002 to 6.1% in 2006. Despite its economy, Kenya still has some serious social issues and extreme poverty.

In 2006, the government unveiled Kenya Vision 2030, a development blueprint to turn Kenya into a newly industrialized ‘middle income country providing high quality of life for all its citizens by the year 2030.’

Kenya needs fast-track solutions to restore social harmony and aid recovery:

• Mwai Kibaki and Raila Odinga enter negotiations to find quick resolution to end violence and restore peace to its people
• More British and international intervention to help a humanitarian crisis
• Contending parties agree to a binding independent and monitored investigation of the election results
• Establish stronger anti-corruption platforms, transparent and accountable legal/government systems
• A new parliament should be called into session with the new post of Prime Minister directly answerable to Parliament
• Restore tourism and confidence
• Corporations and NGOs/non-profits should align social, economic and environmental responsibility programs with causes in need

The country’s economy will continue to lose hard-won ground if the political situation is not resolved quickly.

Harambe.

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.