Stupidy or Sustainability - Collapse of Systems

Lately I’ve been teaching leaders about sustainability (see The Top 10 Things Every Leader Should Know About Sustainability).  A good working definition of the term is “to act so that what you do today does not diminish others’ chances for achieving equal goals in their future.”  Another way to say it is, “Don’t be a greedy jerk.”  You see it’s really thoughtless greed that threatens our future.  The oldest motive of mankind is, “I’ve got mine…tough luck for you.”  Any way you say it, sustainability is a concept that is based on the ideal that everyone should have a chance for a decent life.  Today that is a big issue.

But it’s actually possible that it’s going to be tough luck for all of us.  Especially for our children.  Of course I understand there are loud critical voices that say any warnings of climate change, water shortages, increasing range fires, and a northward movement of tropical pests and disease as overblown.  They believe our current system of turning everything into money is the greatest ideal of humanity.  They shout that any change to the status quo will cost us jobs, wealth and comfort.  What they don’t account for is that the current banking crisis has cost us more jobs and wealth than any environmental regulations have.  Polluting our air, wasting our water and living with reckless disregard for future consequences is just plain selfish.  Stupid too.

What most of us don’t understand is the process that leads to collapse of systems.  Conditions in nature, in the economy, and in our lives don’t just gradually get worse indefinitely.  More often there is a tipping point when there is a general collapse.  Our job might be bad, but then, boom, we’re fired.  The economy might be fine on the surface, but when the rotting foundation collapses, crash.  We may be feeling a growing distance in our marriage, and then suddenly, “I want a divorce.”

The model of human history and natural systems is that if we abuse people, nature or ourselves long enough something very bad will suddenly happen.  All the big things have long-term warning signs usually ignored and then, wham!  Pearl Harbor, 9/11, The Crash and Recession of 2008, and millions of famine refugees in Africa are all examples of hellacious consequences to ignoring real problems because they require change.  The challenge before all of us is to create a sustainable future.  Not one of vicious scarcity, but one of abundance.  True abundance is one of those ideals none of us should be against.  And sustainable abundance should be mankind’s greatest goal.

Sustainability has many faces.  Environmental sustainability requires we don’t exploit nature’s resources so we don’t create a world that is a hunk of barbecue charcoal for our children.

Social sustainability means that we create a world that offers realistic hope, opportunity and education so that war, terrorism, and drug dealing are not better options than community building.

Economic sustainability means we create economic systems that don’t require insane levels of consumption or routine waves of mass job destruction to give everyone a shot at abundance.

Personal sustainability means that as individuals we live fulfilled lives without skin-wrinkling, brain-deadening stress, fractured relationships, drowning debt and self-destructive health habits.

As you can see, sustainability is holistic.  Everything is connected to everything.  Damn.  It’s hard to think about all the moving parts, but we must.  Our world is not the same as it was 50 years ago.  We need to think differently and act differently now.

And we are.  Change is happening.  It’s happening everywhere.  More people are choosing to buy more sustainable products.  The recession has caused many to strengthen social ties with family and friends.  Most of us are more engaged in at least psychologically hugging trees.  We openly value the environment and criticize people and companies who don’t.  And more of us are reconsidering our lifestyle and “life pace” so that our everyday lives are sustainable and fulfilling.

Change, radical positive change, is happening everywhere. The collective impact of millions of people doing small things is huge.  Let’s keep it rolling.

Nike is Just Doing It!

Leadership matters. It always has and always will. There was an insightful article recently about Nike’s CEO Mark Parker in USA Today telling how Parker has kept Nike growing during our Great Recession. Nike has not just grown; it’s blitzing its competition by playing offense and defense at the same time. This is nothing short of remarkable at a time when people are not anxious to spend $100 on a pair of sneakers. But Parker is smart enough to use the economic downturn as a chance to turn up the pace on investing in the future. Of course he’s done the obvious things like expanding in China, but he’s also done some wildly disruptive things that are crushing his slow-to-react competition.

1. Parker is first a designer who knows great products are the foundation of growth and prosperity…so he has turned Nike’s formidable websites into consumer innovation studios that enable and encourage consumers to design their own shoes and apparel. Nike’s margin on this zero inventory direct-to-consumer mass-customization business model blows away any known success metrics traditional consumer businesses operate by. More importantly, it’s a volcano of consumer design input that informs their traditional business. “Let’s see what happens if our consumers design what they buy…would they pay top price for it?” Yes, they would. Simple.
2. They are creating new standards of large-scale sustainability in product standards. Their design parameters require every shoe to meet their sustainable sourcing materials and manufacturing standards by 2011. This saves money, inspires their workforce and impresses consumers.
3. They continue to humanize their products by endorsing champions and championing causes that matter. Using their athletes as ambassadors, they’ve helped the Lance Armstrong Foundation raise $350 million in pledges to fight cancer from governments and foundations around the world.
4. They are moving into new markets so they can be the brand of the future. Smartly, instead of buying their way into action sports like surfing and snowboarding, they are earning credibility by supporting young new athletes instead of writing huge checks to established stars. This long term, relentless commitment is paying off with keeping Nike’s brands on the front end of consumer cool.
5. Most importantly, Nike puts its wallet where its values are. They have always viewed sport as a powerful way to obliterate racial and gender prejudice. The Nike Foundation is committed to the Girl Effect, which is focused on helping 200,000,000 girls worldwide get access to education. For over a decade they have been grinding old shoes into new sports playing surfaces for low-income areas. Last year they sponsored the Homeless World Cup in Australia. And of course they have revolutionized cause marketing with their LiveStrong campaign.

All of this is very impressive, but the engine of all this success is inspired, courageous leadership. Leadership that’s not afraid to stop doing what’s wasteful, frivolous and irrelevant and start doing what the 21st century demands which means a full-blown commitment to sustainability, customer engaging design, and world changing social meaning. Yes, I have to say it…instead of just talking about it, Nike is going out and just doing it!

Top 10 Things Every Business Leader Should Know About Strategic Sustainability

1. Sustainable Abundance is good for business. Every product and every service needs to be re-invented to create a sustainable future.  This is the greatest economic opportunity in history.  (Consider automobiles, light bulbs, airplanes, energy…. everything.)
2. High Sustainability Standards and Maximizing Human Benefits can generate “leapfrog” designs to invent new products and new business models.  (Toyota was creating the Prius while other car companies slept.)
3. Sustainability Thinking saves money. The relentless challenge to improve durability, re-use parts and eliminate packaging brings bottom line innovation. (91% of old Xerox copier parts are reused in “new” Xerox machines.)
4. Removing the Bad attracts new customers. Consumers and business customers are stampeding to choose the benefits of non-toxic, no-waste products (Clorox’s non-toxic Green Works Cleaners is their fastest growing product portfolio.)
5. Create a Cause Bigger Than Your Brand. Over 80% of consumers say they choose brands that support good causes because it makes them feel like they are “voting with their wallet.” (ClifBar’s brand in the manufactured nutrition bar business repeatedly earns the highest loyalty rating.  They famously support the organic sourcing and the buy local food movement as well as women and fitness initiatives.)
6. Sustainability Obliterates Costs. When smart people consider how to satisfy a need or want without waste or even cost, new business models spring to life.  (When Apple designed the ipod, eliminating the cost/waste of CD manufacturing, shipping and distribution was the natural outcome.  The ipod led to the iphone, greener product design and tens of thousands of digital apps which create user loyalty without more cost.)
7. Sustainability Drives Game-Changing Business Models. When leaders consider solving huge problems in sustainable ways, new thinking creates breakthrough businesses.  Before the radio, who would have thought of music with a band?  Before the light bulb, who would have thought of light without a flame?  (Today micro-entrepreneurs are installing solar panels on huts in the world’s poorest areas because solar generated OLED light is cheaper than kerosene.  Power without the grid.  Is everything possible?)
8. Sustainability Creates Smart Marketing.  Engaging your customers in the benefits and breakthroughs of your green and sustainable products requires a new level and a new type of communication.  It’s called smarketing.  Marketing that makes your customer smart.  (GE recently asked design students to come up with creative ways to use GE’s new organic LED lights.  Tens of thousands have seen their video on YouTube and the product launch is still months away.)
9. Sustainability Attracts Top Talent. The best science, engineering and business schools report that top graduates only want to work for companies that are serious about making a difference in creating a sustainable future.  (Ask any college recruiter.)
10. If You Don’t Fully Embrace Sustainability, You Are Toast. The debate over green is over and green won.  Consider the failures of GM and the transformation of Wal-Mart.  It’s better to ride the wave than drown in the rip tide of change.

For information on the speech or seminar, “Leading for Sustainability,” email candie@willmarre.com.

Planet Good Radio Interview with Will Marre

In all of my experience I have found that most people have a motive inside of them driving them to do good. Why they don’t pursue it is because they’re afraid. Fear can be a dangerous thing. Fear drives airplanes into buildings. Fear drives us to work 80 hours a week. Fear keeps us in our status quo. Whether it’s fear of being broke, being fired, or not being successful, fear keeps us from doing what we really want to do, what we were meant to do.

Yesterday I had the opportunity to speak on Planet Good Radio.

What I shared is that we must have the courage to act despite our fears. Let’s face it. I don’t think our fears will ever completely disappear and we can always come up with excuses of why we shouldn’t act, but the real rewards come from acting anyway. Once we release ourselves from our fears and become driven by service, our imaginations will explode. In my book, Save the World and Still Be Home for Dinner, I tell numerous stories of people who have done just that. None of the people I write about have any formal power or resources. Take for example:

• Chris who, though he couldn’t afford to build a school for all the Sudanese Lost Boys and support his own family, nurtured and paid for one Lost Boy’s U.S. college education.
• Martin, a global executive of a multi-billion dollar company, who reinvented himself as a revolutionary leader of environmental sustainability throughout North and South America turning his knowledge of business into a force for change.
• Kim who saved her struggling training school by enlisting the help of every employee and transformed the company into a powerhouse within eighteen months––without a single lay-off.

What these individuals have is courage, will and imagination.

Towards the end of the interview with Tea Silvestre, the question that I always ask others was turned on me. “What’s the best thing you can imagine doing?” It got me thinking. What’s the best thing I can imagine doing?

For me, I think it comes down to one thing. All of my speaking, writing, leadership development, consulting, and business works culminate to this…

Change the purpose of business. I think this is the fastest way to save the world.

So, what’s the best thing you can imagine doing? What can you do to transform your job, business or life to help create a sustainable future for all? If we all will stop waiting for the world to change and start changing it…if we turn the power of enterprise into the power of good, imagine the world we will create together.

Will Marre

Cause Marketing is the First Step in a More Virtuous Business World

Today everyone is trying to stand out. But just spending money on being famous is foolish. Marketing guru, Seth Godin in his TED speech, Seth Godin on standing out discusses how marketing must be remarkable.

He states, “The thing that’s going to decide what gets talked about, what gets done, what gets changed, what gets purchased, what gets built, is – is it remarkable?” He goes on to say that remarkable does not just mean neat, but it also means worth making a remark about. Increasingly what people notice is how much good a business does.

I think some cause marketing campaigns are indeed that, remarkable. If done properly, they benefit everyone involved. The for-profit creates a buzz about their product and recruits new customers who are aligned with the cause, and the non-profit gets wider attention and needed funding to support their efforts. For cause marketing to be truly remarkable, it has to be authentic. It has to represent the soul of the company that supports the cause.

A perfect example is Nike’s and Lance Armstrong’s Livestrong campaign that has generated $63 million for cancer research and programs and has since expanded to include an entire line of products in which 100 percent of the profits go directly to the Lance Armstrong Foundation. I was recently at Nike doing a workshop for their executives and I was impressed at how broadly and deeply Livestrong had impacted their brand, their culture and the visibility of the need to beat cancer.

Other great examples of cause marketing include Product Red in which over $130 million has been raised for the Global Fund to fight AIDS in Africa, and Pampers and UNICEF who donate one tetanus vaccine per pack of Pampers sold and have already given 50 million vaccines and hope to reach their goal of 200 million over the next three years. Now that’s something worth talking about. Pretty remarkable.

In my professional work I often speak about the power of authentic cause marketing when the cause perfectly aligns with the brand and taps the six sources of brand energy: physical, emotional, mental, social, spiritual, and emotional. These six sources of energy separate brands we care about versus brands that are just famous. Consider your own energy when comparing Nike with Reebok. This doesn’t mean that Nike is good and Reebok is bad. But Nike’s mojo has been transformed since the mid-nineties sweatshop scandals to a company that is trying to help the world get fit, healthy and excellent and has scores of engineers trying to figure out how to have greener, leaner products, and much of that vibe has been accelerated by programs like Livestrong.

(For more on the subject read Author Will Marré Says Nike’s Livestrong Campaign is Compelling Case of Why Businesses Worldwide Should Adopt Cause Marketing Today).

Of course there is a lot of fake cause marketing going on, companies that pretend to be green when they are brazenly toxic or businesses who spend huge sums promoting their connection to a cause and little on the cause itself. Of course I have found myself rolling my eyes more than once at yet another cause marketing campaign such as Exxon Mobile’s mosquito net commercials during the Olympics. I have also come across a website, Think Before You Pink, that calls out “pinkwashing,” or companies that are attached to breast cancer cause marketing and actually contribute to the disease they’re supposed to be fighting against.

But when I get close to many of my clients’ motives, what I am finding is a genuine movement toward social good. What may have started as sponsorship or don’t-want-to-get-my-hands-dirty philanthropy is rapidly transforming to well-funded business innovation. For instance, Apples’ decision to market their products greenness has motivated their designers and engineers to go for more radical and responsible solutions to e-waste. Wal-mart’s efforts at recycling and waste reduction have helped save them gobs of money and spread best practice compliance with their suppliers. And just last week Exxon-Mobile announced their serious investment in bio-fuel development. 300 million smackers in promoting algae-based fuel. I know, we’ll see. But anything is possible.

Undoubtedly some cause marketing is dumb and counterproductive, but what I see happening is that marketing message is getting through to many of the sponsoring companies’ own employees and leaders. And they become a new generation of internal innovators creating new business solutions that turn cause marketing into a cause business strategy. Making sustainable profit by creating a sustainable world.

What’s the best thing we can do? Support the causes and companies that do the most good for the issues you feel strongly about. Contact the cause sponsor companies. Ask tough questions. Ask them to do more. The business revolution we need to create a sustainable future is being driven by consumers and employees. Cause marketing is a Trojan horse to get inside the strategic walls and retake the intellectual power of business leadership.

So what do you think? Is cause marketing a hoax or a needed step in the evolution of business to benefit humanity?

CSR Will Still Survive the Economy

This past February in my post, CSR Will Survive the Economy, I make a case for CSR initiatives still having a bright future despite the economic downturn.  But as the recession continues and companies struggle through recovery, it makes me wonder…Just how long will the triple bottom line prevail when profit is at the front of everybody’s mind?

In Bonus Rage and its Pitfalls John Robertson discusses how new restrictions for top executives has a downside, social responsibility initiatives in particular taking a big hit.  He contends that in order for companies to operate under the triple bottom line of people, planet, profit, executives need the freedom to exercise judgment.  He states, “If companies were to be more than simply cash registers, executives had to be empowered to make choices. Directors needed to decide how the value being created should be divided up: how much to employees, how much to suppliers, how much to shareholders, how much to deserving community organizations and at what cost to the physical environments in which the company operates.”  He continues, “Unfortunately, this is precisely the discretion being stripped from the repertoire of the modern corporate executive as he is forced to make an unequivocal commitment to financial success.”

Robertson also contends that this won’t get better any time soon with governments looking to maximize the financial returns from their recent equity purchases, executives trying to repay loans as quickly as possible, and employees too scared of losing their job to demand better from their employer.

While Robertson makes a convincing argument, I believe that it’s only an excuse, a reason for leadership to free themselves of any obligation to humanity and the environment.  You see, this viewpoint stems from the idea of corporate social responsibility being solely a cost, rather than an integral, revenue building part of the business model.  Companies and leaders alike that still hold to the belief that CSR is merely writing a check will most likely cut back or quit their CSR practices altogether in the name of financial strife.

On the other hand, however, there are others who will strongly embrace the great opportunities social responsibility presents and come out stronger on the other side of this recession. Will Marré, CEO of REALeadership Alliance, states, “When times are tough it’s hard not to be hijacked by fear. Thinking about how much good we can do becomes downright unnatural when we’re genuinely afraid we won’t have what we need.  But what if we turn that fear upside down?  Imagine that the key to security, prosperity, and happiness comes from doing good.  As much good as possible.”  According to Marré, now is the time to invest in social responsibility.  In fact, he contends that saving the world is the greatest economic opportunity of our time.

I do indeed stand by my original posting…CSR will survive the economy.  We cannot allow our values to be turned on and off depending on the weather of the current situation.  The triple bottom line is a way of doing business, not a fad that has run its course.

Socially Responsible Leadership

It takes strong leaders to transform business and change the world.  But it can be done…and must.

In Five Features of Great Socially Responsible Leadership Mallen Baker gives a great list of strong socially responsible leadership qualities.
1) Being prepared to challenge the logic of your industry.
2) Doing something because it is the right thing to do, and then working out how to make it pay.
3) Understanding that the leaders sets incentives - and sometimes the bottom line is the wrong incentive.
4) Understanding when to follow the rules, and when to use common sense in the face of unintended outcomes.
5) Knowing that just because people around you see you as a leader, it doesn’t mean you’re a good one.

Will Marré also asserts a socially responsible leadership model in his recent article, CSR and the Four Ideals of Socially Responsible Leadership, he calls REALeadership.  The model is based on four principles:
R—Relevant.   A leader’s impact is long.  Their decisions weigh more than others.  So they must be wise enough to constantly see the big picture, to carefully consider the impact of their decisions on employees, customers, suppliers, the environment, the community, and the generations of unborn.
E—Ethical.  To be ethical is to be moral.  The moral standard is do as much good as you can.  Create the Greatest Total Value you can.  For everyone, all the time.  Why else lead?
A—Abundance. Sustainable Abundance requires more than innovation.  It demands invention.  It requires creating something with unique value that genuinely benefits humanity and heals the environment.
L—Legacy. A leader’s legacy is his or her impact on the future.  The world needs saving.  We need new solutions we can implement as fast as possible.

Leadership, especially in today’s world climate, is indeed a great responsibility, but it’s also a great opportunity to do something really amazing.  I think Marré says it best in the conclusion of his article, “If you aren’t going to save the world then get out of the way and make room for someone who is.” Are you up to the challenge?

Corporate Social Opportunity Rules

I’m always talking about changing the view of corporate social responsibility into corporate social opportunity.  How if done right, companies don’t have to choose between profits, people, and the planet.  This is what I mean.

I was reading an interesting article today of an interview with Rosabeth Moss Kanter, Professor Business Administration, Harvard Business School. She was asked a very good question, “Can one realistically expect values to prevail over profits?”  She answered, “It does not have to be principles over profits. In fact, principles often get you profits.”  She goes on to give an example of Banco Real, a bank in Brazil that has environmental and social responsibility criteria on loan applications.  By so doing, the bank has customers coming back to them with a plea to help them comply and also new customers who, because of this standard, won’t put their money anywhere else.

Another example Kanter cites is P&G and their water purifier called PuR.  At first, the company couldn’t make a profit out of it and many wanted to stop the project.  But instead the company embraced the product’s importance for people who don’t live near clean drinking water and created a non-profit organization to distribute it.  It turns out that after the tsunami, the demand skyrocketed so they not only recovered the cost but even more value came from employee commitment, demonstrating their values to customers, etc.

These two examples are proof that if we truly embrace our social responsibilities and transform them into social opportunities, the rewards will be endless.  The triple bottom line is not too idealistic…it works.

Social Responsibility vs. Greenwashing

Wow—greenwashing sure has been the subject of a lot of discussion lately.  I wanted to follow up on my recent post on the subject, War on Greenwashing.  It seems that while we are paying closer attention and trying to support green companies, we’re just as worried about being misled about who and what is actually as green as they claim to be. The “Green” Hypocrisy: America’s Corporate Environment Champions Pollute The World reports some disappointing news.  It states, “The irony of the “green” movement of US companies is that many of the firms that spend the most money and public relations effort trying to show the government, the public, and their shareholders that they are trying to improve the environment are also among the most prolific polluters in the country.”

The article goes on to list the Top Ten Greenwashers in America.  They are as follows:
1.    General Electric
2.    American Electric Power
3.    ExxonMobil
4.    DuPont
5.    Archer Daniels Midland
6.    Waste Management, Inc.
7.    International Paper
8.    British Petroleum
9.    Dow Chemical
10.    General Motors

Some are no surprise such as ExxonMobill (Read my post Exxon-Exoff), but all should be ashamed.  This time in history presents us with such an amazing opportunity to do something great in changing the world, in making a real difference in the lives of so many.  And when I see big companies with powerful leaders wasting this opportunity by flitting away their money on some bogus PR campaign or half efforts at protecting the environment, it drives me crazy.  Sure, things are bad right now, but at the same time we have the power to turn it around and give a real future to our children.  It’s exciting!  And if you’re not willing to rise above the herd and, as the saying goes, turn lemons into lemonade, then get out of the way and make room for someone who is.

We Can Change the World

I talk a lot about the power individuals have in changing the world, specifically as consumers, and that’s because I truly believe we can each make a difference that matters. And more and more consumers are starting to embrace their role in influencing companies to go green.  Consider these recent findings from “BBMG Conscious Consumer Report: Redefining Value in a New Economy” as reported in BBMG Study Finds ‘Green Trust Gap’:

•    77 % of Americans agree that they “can make a positive difference by purchasing products from socially or environmentally responsible companies.”
•    Nearly seven in ten Americans agree (67%) that “even in tough economic times, it is important to purchase products with social and environmental benefits,” and half (51%) say they are “willing to pay more” for them.
•    Seven in ten consumers (71%) agree that they “avoid purchasing from companies whose practices they disagree with”; and approximately half tell others to shop (55%) or drop (48%) products based on a company’s social and environmental practices.
•    Green factors are very important in purchasing a product: 47% energy efficiency, 32% locally grown or made nearby, 31% all natural, 29% made from recycled materials and 22% USDA, a significant growth over 2007.

These numbers are exciting and suggest a great change that is taking hold.  But at the same time, these numbers are only statistics unless the green revolution becomes personal.  Personal to each one of us.  Personal in a way that makes us change our own behaviors to become part of the solution.  So…what’s one thing you can do this week to make a difference?  What’s one thing you can buy or not buy?  Let’s make it personal and see the world change.

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