BIDABLOG: THE EVOLUTION OF IMPACT

It is an exciting time for brands and businesses: As consumers push companies to play an increased role in tackling pressing societal problems, enlightened business leaders are seeing significant opportunities for advantage. It points to an exciting and integrated future of business and social innovation. My recent article on this topic, "The Evolution of Impact", published on MediaPost’s Marketing: Causes, is below:

http://www.mediapost.com/publications/article/166463/the-evolution-of-impact-expanding-social-commitme.html

The Evolution Of Impact: Expanding Social Commitment To Drive Brand Advantage

I recently spoke on a panel about cause marketing at the Kellogg School of Management, where an MBA candidate asked a simple but fundamental question: “Who is driving cause in the marketplace, consumers or companies?” The answer: both. And things are about to get a lot more interesting. Marketers and brand builders take note: the future will be all about leveraging societal impact as a source of innovation and business advantage. Here’s a look at some key trends showing where things are headed.

We live in a time of expanding expectations, with people around the world increasingly demand companies do more than just make money. Consumers, employees, investors and other key stakeholders are expecting corporations to productively use their assets—whether money, products or know-how—to drive meaningful societal impact. This pressure is pushing companies to act and provoking questions across organizations about the appropriate level of corporate commitment. Leadership companies are expanding their involvement, going way beyond basic actions to pursue strategies that are ripe with business and social opportunity.

Recent research by my firm shows just how high consumer expectations have reached. The 2011 Cone/Echo Global CR Opportunity Study found more than 80% of consumers expect companies to address key social and environmental issues. An overwhelming 94% say companies must evolve their business practices to make positive impact. Just a tiny minority—only six percent—say companies should only make money.

Responding to this pressure, companies are increasingly stepping up to drive positive change. Whether doing simple things to save resources (e.g., no-brainer operational changes like reducing waste), or taking things to the next level (e.g., integrating cause branding and advocacy into brand and business strategy), companies are leveraging their corporate assets to tackle pressing societal issues. This is dramatically shifting corporate social responsibility straight into the heart of business strategy, as companies leverage commitments to positive societal impact to create business advantage. In the process, companies are expanding the scope of their corporate impact and leveraging societal commitments to create new markets—two important trends likely to gather momentum in 2012 and beyond.

Expanding Scope of Corporate Impact

Companies are increasingly taking on expanded roles in their communities by moving to address societal issues historically viewed as business externalities. In the process, they are redefining traditional boundaries between the company and its external environment, resulting in a dramatically expanded corporate impact footprint.

Consider the case of a company that took a unique approach to make the communities in which it operates in Central America more resilient. Realizing that when extreme weather and earthquakes, which are common in the region, destroy poor workers’ makeshift dwellings, families become displaced and the company’s workforce suddenly disappears. The company worked to solve the problem by investing in sounder employee homes made of easily assembled, prefab, reinforced concrete panels. Here, a modest social investment by the company protects its people and supply chain, preventing lost revenue.

Another example: a manufacturing company operating in an unstable country where travel to work is dangerous is significantly expanding its corporate impact footprint to protect employees well before they set foot on company property. Recognizing that the local government is unable to act, corporate security undertakes elaborate daily operations, with large numbers of workers meeting at ever-changing locations for transport under heavy security, all on the company’s dime.

Leveraging Societal Commitments to Create Markets

Increasingly, companies are using innovative approaches that build brands and drive incremental revenue, while delivering positive societal impact. Take the case of Google in Africa, where the company is dedicating resources to develop what it calls “a relevant, accessible, vibrant and self-sufficient Internet ecosystem.” This means investing in infrastructure, incubating start-ups, nurturing developers and increasing local content. A giant step forward for Africa? Absolutely. Also for Google, which has identified Africa as a significant growth opportunity. Remember, for Google’s business model to work, it needs people using the Internet as a core part of life—all so they can sell those ads.

Another innovative example: the push by shoe giant Adidas to develop low-cost, functional footwear for consumers in developing markets. A pilot in Bangladesh is now being expanded to rapidly growing India, where Adidas will leverage its manufacturing and supply chain know-how to bring shoes to the market under its Reebok brand that are designed to be durable, functional and, most importantly, affordable (they are rumored to cost only $1 per pair). Call this philanthropic market creation.

Examples like these of blurring lines between societal impact and corporate self-interest point to an exciting, integrated future of business and social innovation. Consumers around the world are already there, holding a strong and overwhelming view that the role of business in society is to change it. Smart leaders will hear this mandate, integrating positive societal impact into the DNA of their brands and businesses to drive growth and advantage.

Craig Bida

http://www.mediapost.com/publications/article/166463/the-evolution-of-impact-expanding-social-commitme.html

BIDABLOG: MONEY FOR NOTHING

Maybe I’ve been flying so much lately that any remaining thrill has completely worn off. Or can it be possible that it is getting EVEN MORE unpleasant to fly? It’s definitely getting tougher out there for anyone hauling around a roller-bag:  Finding a spot in the overhead bins is getting more and more difficult as baggage fees drive people to shove as much as possible into suitcases—doing anything to avoid charges that go to +$40 a bag on some airlines. Settling into a flight recently on a whirlwind trip that had me schlepping from NYC to Boston to Miami to Montreal, I savored a last-minute, Hail Mary upgrade that plucked me from the mayhem of knee-to-chin seating and fighting for bin space in the back to the relatively more spacious calm of first class. Surveying the jammed-to-the-gills plane, a fellow road-warrior seatmate shook his head, saying, “If anyone thinks this life is glamorous…..”  And he was right. It’s not. Not even remotely.

Desperate to drive revenue and profit to combat rising fuel costs and declining travel, airlines are now seeking to extract additional money from  the remaining people who fly—and in turn are rapidly and systematically degrading the flying experience. I can’t think of another category in which the major players consistently make moves that make the experience worse.  Technology, hospitality, automotive…all these industries seem focused on innovation and improvement—driving better value and experience for consumers. Meanwhile, the airlines steadily chip away, layering fee upon fee for bags, scheduling changes, leg room, aisle seats, food, you name it….

A recent NYT article about how airlines are starting to use social media to allow passengers to connect (http://www.nytimes.com/2012/02/24/business/global/selecting-a-seatmate-to-make-skies-friendlier.html?_r=1&src=me&ref=business), showcased one of the latest innovations in air travel. Some airlines in Asia and Europe are now charging passengers up to $60 to let them request to have an empty seat next to theirs. Wow. Passengers are now paying, literally, for nothing.  Somewhere, the accountants are doing handsprings.   

Craig Bida

www.craigbida.com

BIDABLOG: LEVERAGING BUSINESS OPERATIONS AS A FORCE FOR GOOD

Global retailers like Wal-Mart are likely salivating over this week’s big (some say long-overdue) decision by the Indian government to allow foreign retailers to operate in the country. Foreign supermarket chains will now be able to own up to 51% of joint ventures with Indian partners.

This is significant from a global expansion perspective—as global retailers confronting low growth in developed markets will likely quickly move in to exploit the rapidly growing Indian economy. It’s also a milestone in India’s economic and political history, given the country’s long history of state control of the economy and restrictions on foreign investment.  

But there’s another important aspect of this decision: The shift could have a transformative social impact. If you’ve traveled in India, you don’t have to go far—whether in major cities like Kolkata, or smaller cities and villages—to encounter numbing starvation and malnutrition. Yet, surprisingly, food spoilage and waste are a major issue, with the New York Times reporting that as much as “35 percent of Indian fruits and vegetables spoil before they get to market, largely as a result of an antiquated supply system….” The current system also is unstable, leading to pain for poor consumers when prices rise in response to supply disruptions.   

Here’s the good news: As major retailers enter the Indian market, it is expected that they will bring with them significant investment to create and maintain the efficient supply chains that they use to operate their businesses elsewhere around the globe. This is will result in large-scale improvements in food processing and logistics that will likely force competitors to up their game, magnifying the positive impact even further.

Net, as global retailers enter India, society will benefit hugely from simple supply chain innovation as more, and better quality food will more dependably reach the marketplace. It’s a simple yet powerful example of how market forces and evolved business operations can drive social good.

For the full New York Times story, go to: http://www.nytimes.com/2011/11/25/business/global/india-to-allow-foreign-retailers-to-own-stores.html?_r=1&scp=1&sq=india%20retailers&st=cse

Craig Bida

www.craigbida.com

BIDABLOG: EXPERIENCES, OBJECTS...OR LIFE LESSONS?

“Are you looking for experiences or objects?” my friend James Robertson, a well-traveled transplant to India, asked the day I arrived in Delhi in September. “Experiences,” popped first to mind, as I had no plans to acquire anything—and my trip to India until that point had been one remarkable, unending, unforgettable series of experiences. “Well….. I guess objects too,” I thought, the latent consumer in me springing hastily to life, “So, what is there to buy here anyway…?”

That’s how I ended up two days later, soaked to the skin in a pounding monsoon, huddled under a parapet, waiting for the heaviest rain in 100 years in Delhi to let up, cradling a plastic-wrapped tube of vintage Bollywood posters. In a little, dusty underground shop, hours of combing through knee-high piles yielded a dozen prized pieces—colorful, exaggerated and exotic.  In the days that followed, more treasure-hunting unearthed colorful, +100 year-old hand-colored prints of Hindu deities and yellowed old maps from British colonial days. I found a funky, patterned batik shirt perfect for casual Fridays. At a music store I picked up some addictingly saccharine Bollywood music that now drives my girlfriend crazy. In a bad way. I didn’t stop until my suitcase was full....

Post trip, the Robertson Question keeps coming back:  Experiences or objects...?  With my bags long emptied, that trove of prints, maps and posters semi-forgotten, it’s definitely not the stuff that stands out from my trip to India, but rather the experiences. By a mile. Wrestling with the extremes of gleaming wealth and grinding squalor, inspired by schoolteachers lifting rural villages out of illiteracy, seeing the splendor of sacred temples, the slick, polished opulence of the wealthy, and experiencing the intense, fragrant kaleidoscope of life in a teeming, developing nation—a chaotic maelstrom of people, cars, trucks, tractors, camels, elephants, cows, limping dogs, scooters, busses, monkeys, and vehicles of all kinds hauling everything imaginable: lumber, toilets, bamboo, bricks, animals, giant pieces of equipment and machinery....

But there is so much more to India—if you are open to it—beyond this rich, experiential array. Listen and India will teach: Life lessons, rooted in spirituality, derived of pragmatism. I asked a native, a successful businessman from the North, now living in Delhi: What can someone like me learn from a place like India?  He quickly answered. Two things: Let go. Transact less.

• Let go. This, he said, is about productively inhabiting a world that is neither good nor bad, but just is. India—where things somehow work, despite the teeming frenetic disorder—requires seeing human existence as a complex system of interrelated, striving parts. Adaptability is about being able to focus on what you can influence, not on what you can’t.
• Transact less. This, he challenged, means shedding a relentless, reflexive need to compensate and control generosity. Westerners living in India distinguish themselves—and not in a good way—by expecting and giving in return. There is another path. It means abandoning a deeply conditioned quest for equivalence. Always you give, only sometimes you get; freeing yourself comes from not keeping track.

Good lessons. Everyday wisdom that has become a new mantra.  Confronting life’s indignities large and small, dealing with conflict, encountering inevitable petty dealings and machinations, trying to be generous while expecting nothing: “India,” I say, sometimes out loud, sometimes to myself, “Let go. Transact less. Be more.”

Craig Bida

www.craigbida.com

9/11 MARKETING: TIME TO TURN THE CORNER

Two months after 9/11, the heated discussion about cause marketing and 9/11 that occupied marketers and the media earlier this fall has died down—perhaps until we hit another major milestone or anniversary. It’s further evidence of the opportunity for companies to play a leadership role in helping address real, persistent needs related to the tragedy. For an approach to doing this based on some fundamental principles of Cause Marketing, see my article below published on CommPRO.biz earlier this fall (http://blog.commpro.biz/?p=2869):   

With the tenth anniversary of 9/11 upon us, there has been some debate as to whether or not marketing linked to this national tragedy is appropriate—or a tasteless violation of principles of decency. Companies and brands (and the agencies that support them) are right to be concerned about being perceived as exploiting a searing national tragedy for corporate gain.

But given the fact that a decade has passed, that real needs persist related to the tragedy, and that consumer appetite for cause has never been stronger, we are at a point where companies can, and should, market around 9/11—provided they go about it in a principled and thoughtful way.

Ten years later, 9/11 is very much still with us. Wounds caused by 9/11 are still raw (especially for those who suffered loss of family, colleagues or loved ones), Ground Zero is still a construction site, and America is still enmeshed in wars in Afghanistan and Iraq connected to that fateful morning. But the wheels of time are starting to turn. As former President Bush recently described, although 9/11 will always be an emotional trauma for those who lived through it, one day people will look back and this will be another date on the calendar, viewed through a lens of historic distance, like Pearl Harbor. Today, we are partway along that journey.

At the same time, 9/11-related needs persist. Communities and individuals still impacted by the events include children and families of 9/11 victims, first responders and law enforcement, even the rescue dogs who combed the rubble are now aged and in retirement. And let’s not forget supporting our military personnel, who regularly risk their lives to keep our country safe and prevent tragedies like 9/11 from happening in the first place. Exemplary nonprofits like Folds of Honor and Paralyzed Veterans of America strive to provide support to individuals and families who have made the ultimate sacrifice of life or injury to protect their country (In full disclosure, I am proud to say both of these terrific organizations have been clients).

Finally, for consumers, corporate commitment to all forms of societal impact has never been more important. Based on research conducted by Cone over the past 20 years, now more than ever people expect companies to commit to meaningful ways to drive positive societal impact. As recently as 1993, only 66% of people thought it was OK for companies to link support for causes to marketing of products; today that number has risen to 88%.

The convergence of these factors creates a unique opportunity for companies. With ten years gone by, so many needs out there, and strong interest among consumers in supporting causes, doing nothing out of fear of being perceived as overly commercial seems like playing it way too safe. The real question that marketers should be asking on this somber anniversary is not IF they should be supporting programs that commemorate the 9/11 attacks, but rather HOW they might they be leveraging their resources to pay tribute to the sacrifice of others and to strengthen our country’s future.

Take the American Express “I Will Volunteer” program, powered by a Facebook application that makes it simple for people to volunteer in their communities—paying tribute by dedicating time to helping others as part of the federally recognized 9/11 Day of Service and Remembrance. It’s hard to argue that this is exploitative when American Express is partnering with legitimate nonprofits like MyGoodDeed and the HandsOn network and backing up their efforts with a real commitment to impact by providing a $1 million grant for service projects to commemorate 9/11. This is on top of an already considerable track record of support for 9/11 rebuilding (American Express was directly impacted by the tragedy, losing employees and facilities in the attacks on the World Trade Center).

Other examples have begun to crop up recently. A chain of health clubs advertising a discounted rate for first responders and the military, a New York winery donating a chunk of proceeds on specific products to the 9/11 memorial, etc. The key question is: What will consumers take away when they experience these? Crass exploitation? An attack on principles of common decency? Probably not. More likely that these brands and companies care, are committed to helping others and are doing something to make the world a better place.

That’s not to say that anything goes. Companies that want to do something to commemorate the 9/11 tragedy—now or in the future—need to go at this carefully and thoughtfully. Said simply, this means understanding their assets, crystallizing their intent, and clearly identifying their desired impact. Here are five fundamental principles of cause branding that are particularly relevant for companies considering any 9/11-related promotion:

1. Be authentic: Make sure that you deeply understand your brand’s unique equity, mission, purpose and values and act in a way that supports these.
2. Embrace risk: Leadership today is about standing up AND standing for something. This may mean taking on difficult or controversial issues. Remember there was a time when breast cancer, AIDS, and a host of other issues that are now part of our daily fabric, were taboo.
3. Be unique: Find your unique take on an issue, identifying a specific challenge that you want to help solve. For example, supporting military families is broad; providing scholarships to families impacted by military service, is more specific and actionable.
4. Don’t go it alone: Nonprofit partners provide critical credentialing and expertise in achieving social impact. Given concerns about exploitation and 9/11-related marketing, this support is even more critical than usual.
5. Communicate impact: Consumers want to know what you are doing to drive change and how their support for your brand will translate into action. Be clear about your impact and think carefully whether this will perceived as meaningful and actionable by consumers and other stakeholders.

Our experience over the decades shows that by taking on substantive and emotionally powerful issues in an authentic fashion, companies can earn consumers’ support, respect and loyalty. Although 9/11 continues to be a pivotally significant event in our nation’s history, companies shouldn’t shy away from engaging their resources to commemorate and drive positive change—as long as they go about it in the right way.

Craig Bida

www.craigbida.com