Your Award Awaits

Who doesn’t like a good reward? As we have reached a tipping point in the age of cause marketing, it seems this holiday season among the ever growing Facebook voting contests for “your favorite charity” and the donation with holiday sales promotions, more companies are rewarding customers who participate in their cause marketing efforts with gift cards, raffle prizes, even cash… I certainly appreciate the need to differentiate but is a monetary reward the right direction?

Don’t get me wrong, I see cause marketing as a fundamental part of supporting social programs in this decade and participation is key. It will be interesting to see if this new trend of rewards increases participation. However, as the space and formats develop, I encourage companies and non- profits alike to explore campaigns that further illuminate the programs and solutions supported by donations. This will make participation in cause marketing a richer experience for the consumer. You have their attention. Reward them with substance.

I would like to propose another kind of reward – not the monetary kind. I like the idea of a cause marketing campaign that rewards those who participate (buy, give, vote) with something of use – real connection to those they are helping, real education about the issue they support, real resources for early detection of the disease research their donation will fund.

How about giving the consumer not only the ability to feed a hungry family for a holiday meal but educating us on long-term sustainable solutions to hunger?

The work of the organizations who benefit from cause marketing is deep – offering solutions to many social and environmental problems. It seems we are missing an opportunity to learn from these groups with impactful programs and important missions if our only engagement is a vote on Facebook then a gift code comes to our inbox from the sponsoring corporate partner… where do you think the majority of browsers go? Shopping or to learn more about the cause?

 

Copy Cats

I have a vivid memory of Kindergarten. I was sitting at the drawing table, markers in hand, creating what I thought to be the most beautiful rainbow ever when to my horror I look to my right to see my neighbor drawing the exact same picture. She was peering over my shoulder, copying not only the standard order of my color choice (you know, red, orange, yellow…) but the width of the lines and the clouds on the each end. She grinned. I cried.

You can guess what happened. My teacher and, then my mom, comforted me with the wisdom that when someone copies you it is a complement, they like what you are doing so much that they want to do it too. Back in the classroom that meant a wall full of rainbows and, once I got over my ego, I realized that’s not such a bad thing.

So, how does this relate to corporate social responsibility (CSR)?

I recently came across Subaru’s latest version of its Share the Love event where the company donates $250 per car sold in a two month period to the charity chosen (pre-selected by the company) by the customer. This year they are adding a voting component via Facebook to have the public nominate and vote for the “People’s Choice” charity to be added to the three existing choices. With $5 million expected to be donated this year, this democratized opportunity for a charity to be chosen to be the beneficiary of such a high-profile program is huge.

But my first thought was… I smell Pepsi Refresh.

Pepsi pioneered the concept of voting for ideas and organizations online, allowing the public to choose who the company supports. It was big news when it launched and continues to be a forum for those seeking funding to mobilize their base to vote and, hopefully, get funding as a result. This model presents a whole new format to merge social impact with community participation that leverages technology. There are some critics who argue that the format can cause organizations who do not “win” to use resources and engage their base for nothing, but overall what Pepsi has done is create another mainstream way for good to be done through philathropic donations and for companies, like Pepsi, to benefit from CSR (by way of positive PR, capturing more data and consumer interaction) that didn’t exist previously.

What Subaru is doing is equally as good as they are embracing this format and customizing it to their needs. There is no doubt that non profits are now mobilizing to participate and Subaru will enjoy the buzz of more fans and increased conversations about the Share the Love program. They are even addressing the issue that plagued many non profit leaders, Subaru will donate $.10 per vote so every vote counts.

I say, great. Good for Subaru for watching what others have done and making it work for them. They took a concept, tweaked it, made it their own, and good will be done.

A movement begins with copy cats. Momentum increases as more people not only learn about what a group is doing but internalize their ideas so much they actually draw from it and copy it to some degree within their own business. The collective of the similar programs stemmed from the original idea then  reaches a tipping point and – Voila! – we have a new standard. In the case of CSR this means more concrete initiatives to positively impact social and environmental issues through increased donations to charity, more public awareness, and more lives improved.

So I say, be a copy cat. Look around you. What are the CSR programs that resonate with you? Can you share some of these principles with the brands you associate with – as an employee, as a customer – and get them to leverage these ideas within their own businesses to improve the world?

I say YES and am happy to help.

Converted : How do you select a brand?

I don’t consider myself much of a consumer. I don’t buy a ton of products, I am not picky about much of anything, but, nevertheless, I am American and I run a household so by default I must be a one. 

As I think about the synergy between business and social impact, I have become increasingly curious about how we pick our brands and the degree to which a company’s corporate social responsibility (CSR) platform makes a difference in our choices. When do we notice CSR and what role does a company’s efforts to give back play in our choice to buy their products? At conversion, at each purchase, never?

 I feel good that the companies where I choose to spend my money –Whole Foods, Target, Subaru, Chase Bank, Southwest Airlines – all have one CSR strategy or another.

 But even as a loyal consumer, I am not sure I would know about some of their efforts without research on my part. I want to be engaged. I want to know that these companies are leveraging their expertise and market exposure to improve the world. I don’t just want to see a blurb in an annual report, I want authentic programming.

 How can these brands – and all others for that matter – use the breadth and strength of their influence to do more to connect with consumers like me for further impact? A round up at check out or voting on which charity should receive funding is a start. But in a new world, there is more that can be done for measurable, meaningful social impact.

 If a good CSR strategy combines impact with business results, making existing customers part of that strategy and leveraging that platform to find new customers through engagement, brand-alignment and clear communications must be a priorities. I contend that as a customer I will be converted sooner and will be more loyal with such engagement. I want to know what a company stands for, how they use their core competencies for good, what the outcomes are, and, if I can participate, even better.

 A perfect example is Panera Bread. After learning about  Panera Cares – the company’s initiative to run cafes where those in need and those with means dine together and pay on a voluntary basis, Panera Bread now stands out to me from the crowded space of bakery/coffee shops. The belief that restaurants offering high-quality meals in a pleasant, mainstream environment should be accessible to people without means and that customers who can afford such meals will voluntarily pay more for them to support a fellow diner, speaks to me. The faith in humanity, business risk, and tangible opportunity for Panera customers to engage in helping others on such a basic level is such an unusual strategy for a corporation to invest in that I am sold. Even though there is not yet a Panera Café in my area I am now a customer of the brand and, frankly, wouldn’t have been before. In the markets where these cafes exist sales are booming so clearly others agree.

 So I ask you, how much do you care about the social impact efforts of the brands you buy? Please leave your thoughts below

Livin’ on the Edge

In the past few weeks whenever I go running the sage words of Aerosmith keep playing in my ears. “Livin’ on the edge” keeps rolling about as the mantra that defines my professional point of view. I do my best thinking while running (without an Ipod by the way), so it is not surprising that this articulation of where I stand – as a specialist, advising companies and non profit organizations on that fine line where business meets social responsibility – keeps creeping into my consciousness. It is high time I explore this “edge” on which I am “livin’”.

 Truthfully, I am finding more and more that the line that separates business from society and, therefore, business results from social impact, is disappearing. With the rise of social media, cause marketing, and brands that speak to the very essence of who we are, it has become harder to draw that line. On a structural level B corps and L3Cs are becoming main-stream, in academia degrees in social entrepreneurship are in hot demand, in daily life it is unique to find a company that does not give back in some way. What is striking, however, is that we are still defining this confluence and exploring it rather than just accepting it as our new normal much like recycling or smart phones. We have not yet reached that tipping point where the line truly disappears and doing better by doing good is standard  business.

 But, I know we are close. After a 4 hour discussion with two friends who are cutting edge thinkers on this topic – Dana Mortenson Co-Founder and Executive Director of World Savvy and Peter Genuardi of Giveo – I am certain the change is coming as a new generation of non profit leaders and innovators see the intrinsic value of overlap between business and social responsibility. As an example, World Savvy is a pioneer of global education for American youth by setting the standard for global competency and creating technology-based engagement programs to inspire students. With Dana and Peter, our conversation revolved around how World Savvy can align itself with corporations seeking to support global education. Quickly the conversation diverted from one of traditional corporate philanthropy and securing funding to the revelation that when it comes to educating youth on the world and leveraging technology to do so — World Savvy’s interests ARE corporate interests. Communications and media companies in particular, though the motive may be slightly different, share the same goals and seek the same outcomes as World Savvy – to utilize technology to tie the world together to make us all more globally competent – opening the door for more synergy, more alignment and, ultimately, more impact between business and mission. Picture the Cisco commercial with Ellen Page where a small-town American classroom communicates with its Chinese counter-parts – Ni hao! Now imagine World Savvy using this platform in urban schools across America.

 This conversation reflects that the current generation of non profit leaders, such as Dana, has evolved. They have structured their programs to meet the current needs of our culture and are not timid to use the tools available to them to realize their mission. The result is a change in the corporate/non profit paradigm. Innovative non profit leaders are creating challenge equations for corporations that make sense for businesses to tackle. Corporations can participate in programs like those of World Savvy by providing in-kind support and intellectual capital that actually enhances their own business model, blurring the line of business and charity and, ultimately, improving the work of both organizations. The impact will be greater, the engagement more fruitful and the world a better place if we all embrace this new reality.

 So…back to Aerosmith, that edge still exists but we are getting closer to seamlessness as businesses and non profits alike move toward the middle and see their shared goals and mutual benefits of partnership. I am here to help both parties with this timely opportunity.

Hot Tips for Cause Marketing – A Case Study of Kick Start

Skirts Sports’ Kick Start program wasn’t supposed to be a cause marketing initiative but it has proven to be a very successful one. A women’s athletic apparel brand with its roots in running, Skirt Sports led by charismatic CEO Nicole DeBoom has a strong commitment to give back to women and empower them to get fit.
In early summer of 2010, Nicole hired me to create a program that would help women with barriers to fitness – from health to lifestyle to income – whom “otherwise wouldn’t or couldn’t” train for and complete a 5k running race.

After strategically reviewing Skirt Sports’ options, capacity and budget, we came up with a cost-effective, in-house program that not only has produced stellar results from a social perspective — 95% of Racers reported they would not have engaged in exercise without Kick Start, 100% said Kick Start changed the way they approached fitness, 26 out of 30 racers completed their race goal — but from a cause marketing one as well — expanding the Skirt Sports customer-base, deepening customer loyalty, diversifying media coverage and increasing sales. The key to Kick Start’s success on both fronts can be articulated in the following tips.

HOT TIPS for creating a successful cause marketing initiative:

Be authentic – Make sure the cause you select fits your brand and matters to your leadership. Many companies make the mistake of selecting a cause that is not brand-aligned or doesn’t resonate with stakeholders resulting in a weak connection between the brand and the cause and, ultimately, having little impact on business results you want – such as differentiation from the competition, improved name recognition, more media coverage, and increased sales.
Make it engaging – A cause marketing initiative is most successful when it engages stakeholders not only at a point of sale but in furthering the cause itself. Consider calls to action to volunteer, to advocate, to select the company’s priorities as ways to get stakeholders to view your business as a leader in not only supporting but shaping a cause. In the case of Kick Start, by strategically involving existing customers as mentors for new runners, Skirt Sports deepened the loyalty of these women by giving them more opportunity to become involved with the cause they care about – inspiring women with barriers to fitness to get healthy

Have impact – To be successful a cause marketing initiative must not just be a marketing initiative. It is fundamental that a brand commit enough resources and attention to a cause to be able to demonstrate the positive influence of its involvement. A company should clearly identify the outcomes it will have on a cause and measure them. With Kick Start, there is a direct link between Skirt Sports’ intervention – providing training plans, free race entries and mentors – and the improved health of the women served by the program.
Be different – Cause marketing is not new but your initiative can be. Follow the above tips and chances are the initiative will be different from what’s out there.

Communicate well – No matter how successful your cause marketing initiative is make sure you communicate about it to ensure that your company and cause are linked. Make sure to have a media plan and a way to let your stakeholders know what you are doing. A well-communicated effort will leverage your brand and increase your outcomes. Also, if your efforts are genuine and different, you are likely to get media coverage that you would never receive otherwise.  As an example, Kick Start was featured in Runner’s World allowing Skirt Sports to expand its empowerment program nationally through Kick it Forward  and get great product coverage in a national publication.

 

The ROI of CSR

Ok… I am sure you know, but just in case “The return on investment of corporate social responsibility”.. or simply put – how does a company determine – in objective terms – if its CSR campaign will improve business results while giving back to the community?

There are plenty of general stats…

Consumers Expect Marketing with Purpose – 86% of consumers around the world believe that business needs to place at least equal weight on societal interests as on business interests.  2010 Edelman goodpurpose
 
People Seek Authentic Corporate Commitment –  Globally 66% of people believe it’s no longer enough for corporations to merely give money away, but that they must integrate good causes into their day-to-day business.   2009 Edelman goodpurpose Consumer Study
 
Consumers Believe Companies Can Make a Difference – 60% of US consumers say businesses are in the best position to impact social issues, as opposed to government (14%).  2009 Waggener Edstrom Worldwide Consumer Research

Cause Increasingly Creates Differentiation – 79% of Americans say they would be likely to switch from one brand to another, when price and quality are about equal, if the other brand is associated with a good cause (compared to 66% in 1993). 2008 Cone Cause Evolution Study

… to illustrate that there is a widely held belief that CSR makes sense to attract consumers.

Then Google “outcomes of CSR” and the results are varied – some very specific, others just a definition of CSR not what its impact is or can be. The lack of  hard data drawing conclusions about the specific influence CSR has on business results seems to be due to two factors – 1) there are many permutations of CSR that are executed in a variety of ways with a range of intentions – from traditional philanthropy to cause marketing to business practices – and 2) to truly measure the success of a CSR initiative it must be measured against the goals set by the company itself.

A study by Harvard Law School – Investing in Corporate Social Responsibility to Enhance Customer Value does a good job outlining the outcome considerations company leadership should have selecting a CSR initiative with impact. It re-affirmed much of what I already know from my on the ground experience. Here some points morphed between the article and my own point of view:

• A CSR initiative must have actual, measurable social outcomes ie people trained, jobs created, lives improved, environments preserved. A company must be able to directly link their involvement or intervention to these outcomes.
• Define what you want to achieve from a business perspective when launching a CSR initiative . Is it to increase customer loyalty, grow your customer base, increase sales of a particular product, improve community connections to solidify a business relationship in a municipality, or something else? Create your program to address these goals and implement efforts directly correlated with these objectives.
• Stakeholder interaction with a CSR initiative will define its success. Know your customers to understand what will resonate with them – do they want to feel good about your efforts to help others or do they want to participate and receive something in return? A more engaged customer is a more loyal one. It is the same concept with employees.
• CSR programs need time to take hold and build brand awareness. Make a long-term, consistent, multi-faceted commitment to CSR. Your efforts must span your business and be integrated into all elements of your communications. The outcomes – more media, improved community reputation, ownership over social outcomes over a significant period of time, differentiation from your competitors – must be identified and tracked against your milestones to make sure the investment is working.
• Look to integrate your CSR initiatives into your core products or services to offer the most value and connection to stakeholders. This approach is also more innovative than traditional forms of CSR helping to make your company stand out.
• Don’t invest too much or too little in CSR. To substantiate your efforts you must invest in your cause, development, resources, personnel, technology but not so much that it detracts from your core business. The value of a CSR initiative is truly a cost/benefit equation.

Hopefully this is a useful start though I do feel even I am less specific than I want to be. To really dig into the ROI of CSR one must look at specific company and all its unique variables to truly ensure that the right idea is selected for the best results.

The Right Idea for Social Enterprise

Given my experience founding, developing and managing social ventures, I often get asked by non profit executives about how they can pursue an earned revenue strategy for their organization. A social enterprise is not always the right fit for an organization but I whole-heartedly support the exploration of what may be the right idea to increase an organization’s sustainability while furthering its mission.

I was recently asked by Social Venture Partners of Boulder County to participate in their Ask-An-Expert initiative on earned income. Check out my response on how an organization can find the right earned revenue strategy for their organization.

The Social Impact of Technology

We all know the impact technology has had on our lives from the Facebook updates we enjoy from elementary school friends with whom we lost touch years ago to the ease of buying airline tickets to 24 hour access to the latest news story or pop culture trend. But when it comes to social impact there is still a huge connection to be made.

Technology – social media, interactive websites, online games, and platforms for crowdsourcing to be more specific – present new opportunities for those seeking to improve the lives of others. On a human level, such technology can reach individuals in need of a service – from financial management skills to healthcare information – through the internet. While access to hardware is still not perfect it has improved drammatically in recent years and, like never before, people at all socio-economic levels cannot only be found and communicated with via the internet, social media, and SMS, their lives can actually, measurably be improved through program-based technology.

This new reality presents a whole new dynamic to a company’s CSR potential.

First, even non-technology companies can take advantage of a technology-based program in a cost-effective way to bring about improvement in their community. Great examples include – Skirt Sports’ Kick it Forward program that inspires women with barriers to fitness to get active through an online resource center to ING’s game-based program to teach kids to save.

Second, technology-based social impact programs allow for companies to interact directly with those they want to reach and help instead of requiring an intermediary. This allows a company to own and measure it’s impact like never before without requiring huge overhead or management resources.

Third, technology allows for more creativity and innovation.

Fourth, as technology-based programs begin to have impact, they are more easily communicated to a wider range of company stakeholders allowing for a stronger awareness of a company’s commitment to social impact resulting in improved business outcomes.

My advice – When looking to develop a CSR program, for all the reasons stated above, a company should look at what they want to achieve and the opportunity to incorporate a technology-based initiative to make it happen.

Enlightened Self Interest

Enlightened self interest simply put : It is part of human nature in western culture that people do things for others because they get a benefit themselves.

From my years as a job developer at The Doe Fund identifying employers who would hire the formerly homeless men graduating from the Ready, Willing & Able program to my current role consulting for companies on how to align their corporate social responsibility (CSR) initiatives with their own business goals, enlightened self interest has always made sense to me. I am not a cynic and I know there is good for the sake of good but in the organizational world, especially when marrying business with a social mission, I have found that understanding and embracing enlightened self interest makes good, practical sense.  

We all want to be fulfilled by the choices we make and partnerships we pursue – this is one of the hallmarks of being human. The same applies for furthering organizational goals whether in the corporate world or for non profits. For CSR to truly be successful, companies must see the benefit of their good works not just for the sake of giving back but for the impact they have on their business results. Therefore, it is good business for companies to invest in a brand-aligned, outcome-based CSR strategies that achieve social and business goals. Companies should not be apologetic that they care about business results such as a larger customer base, increased customer loyalty, more positive PR, or increased sales as a direct result of a CSR strategy. Of course, there must be actual social or environmental impact and improved outcomes for those touched by the program, but, at the core, if companies do not experience a boost from CSR can it really be sustainable? And if not sustainable, isn’t it just a waste for all of those involved? A missed allocation of resources?

On the non profit front, it behooves organizations to accept the reality that for their mission to be truly furthered by the support of corporate partners, donors, volunteers and other stakeholders, they must also understand and embrace the reality that they need to offer value for the stakeholders they engage. Whether this is through impacting business results or offering tangible evidence of each dollar a donor has invested, a non profit, cause-driven organization cannot simply expect that it is enough for their partners to feel good. As a result, non profits should strategically seek out partners for whom their mission and programs can provide such connection and benefit.

Enlightened self interest is a great motivator. It is the foundation for some of the best innovations and solutions out there. The trick is to harness its power and DO BETTER BY DOING GOOD. It is my mission to do just that.

Who would have thought?!

I am a blogger. Yes, it’s true. I have taken the plunge. Now, what to say…

Well, it is really pretty simple. The purpose of this blog is to share with the world my passion – creating alliances where business and social interests can unite and thrive. I will use this space to share my thoughts, observations, and points of view on what works, what’s innovative, and how to do better by doing good.

Stay tuned.