Bill Shireman, President & CEO, Future 500
Does corporate sustainability build brand value on store shelves? Does "doing good" meaning doing well on Wall Street? That depends. The qualities that make up a brand can be almost as varied as those that make up a person. Child labor in a food brand's supply chain might be damaging, but for a toy company it could be devastating. Organic certification might be optional for bananas, but an imperative for baby food. How can companies measure and assess the risks and opportunities posed by sustainability and supply chain issues? How can they estimate the return on their social investments? Gain insights from the experiences of companies like McDonald's, Avon, Trader Joe's, Mitsubishi, Starbucks, Coca-Cola, and Nestlé.
7. Top 100 Brands
Selected Leaders and $ Value
Product Brands
$78B
$77B
$40B
$27B
$15B
Retail Brands
$141B
$25B
$23B
$19B
$14B
8. Cost of a 1% Decline
Selected Leaders and $ Value
Product Brands
$780M
$770M
$400M
$270M
$150M
Retail Brands
$1.4B
$250M
$230M
$190M
$140M
9. Exxon 1989 Valdez Spill 5% stock decline
Nike 1990s Child Labor 1996-2000 market share
drops from 55% to 39%
Shell 1995 Brent Spar 50% sales drop Germany
Mattel 2007 Lead Scandal 7% stock decline
Mattel 2008 3 recalls/4wks 7% stock decline
BP 2010 Gulf Spill 35% stock decline
Recovery is hard to isolate; perhaps 40-100%
Cases of Brand Cost
10. Why Blame Companies?
1. The Psychology
Belief: Companies are selfish – they maximize profits
Liberals: People are selfless - when they do bad,
they’ve been corrupted by selfish (corporate) forces
Conservatives: People and companies are both selfish.
When they do good, they’ve been disciplined by a higher
force: religion or market competition
11. Why Blame Companies?
2. The Strategy:
Government is gridlocked –
corporate pressure yields more results
12. Why Target a Brand?
The brand is NOT the product, its features, the
company, or the logo
The brand is the SOUL –
the human personality
16. Five high risk issues
(and high opportunity)
Safe & Healthy
Food
Broadband &
Transparency
Toxic Materials
Climate, Energy
& Water
Forestry
17. Five high opportunity frames:
$12 trillion total buying power 2012
Women’s
Power Center
73%
of buying power
Healthy
Green
Creatives
26%
of consumers
Minority
Majority
37%
of consumers
Millennial
Generation
37%
of workers
Political
Uncommitteds
70%
of voters
(hard right 16%
hard left 14%)
18. If you seize the
opportunities of these frames,
you can reduce the
risks from these issues
(your brand goes here)
FRAMES
Issues
19. Women’s
Power
Healthy Green
Creatives
Minority
Majority
Millennial
Network
Political
Uncommitteds
BRANDS
THAT CAN
BENEFIT
TOP ISSUE
RISKS
Safe & Healthy
Food
Climate, Energy, &
Water
Rights &
Entitlements
Personal
Freedom
Personal
Discipline
OTHER
ISSUE RISKS
GMO’s and
Industrial Ag
Safe & Healthy
Food
Immigration Community
‘s
Responsibility
Individual‘s
Responsibility
Obesity and
Sugar-Fat-Salt
Fossil Fuels (coal,
tar, fracking)
Marriage
Freedom
Value Families Family Values
Children &
Families
GMO’s and
Industrial Ag
Healthy
Families
Pro-Choice Pro-Life
Work-Life
Integration
Obesity and
Sugar-Fat-Salt
Fix
Entitlements
Fix
Entitlements
Fix Entitlements
Health &
Sustainability
Women’s
Empowerment
Women’s
Empowerment
Women’s
Empowerment
Reduce Issue Risk through
Brand Framing
20. Healthy Green Creatives
+ Millennials $7 trillion?
Healthy Green Creatives drive
the Sustainability Movement.
Millennials
share many views but are
pro-technology and prosperity
Safe & Healthy Food
GMO’s and Industrial Ag
Work-Life Integration
Health & Sustainability
Healthy
Green
Creatives
26%
of consumers
Millennial
Generation
37%
of workers
21. Women’s Power
$9 trillion
Engaging on
Women’s Empowerment
can build the brand
and reduce risk over:
Safe & Healthy Food
GMO’s and Industrial Ag
Obesity and Sugar-Fat-Salt
Children & Families
Work-Life Integration
Health & Sustainability
Women’s
Power
73%
of buying power
22. Women’s Power
Engaging on
Women’s Empowerment
can build the brand
and reduce risk over:
Safe & Healthy Food
GMO’s and Industrial Ag
Obesity and Sugar-Fat-Salt
Children & Families
Work-Life Integration
Health & Sustainability
23. Women are the CFO’s of
the consumer marketplace
73-83% of all consumer dollars spent
•62% of all new cars
•92% of vacations
•90% of food
•55% of consumer electronics
•93% of health-care spending
•94% of home furnishings
Source: Maddy Dychtwald, author of "Influence: How Women’s
Soaring Economic Power Will Transform Our World for the Better."
24. In developing world markets,
women are growth drivers
• Women spend 90% on families and communities (men 30-40%)
• Educating women would raise per capita income 14% by 2020
• Each 1% rise in female education = 0.4% rise in GDP
• “The third billion” – China, India, and Women emerge
Source: Sandra Lawson, Goldman Sachs
http://www.goldmansachs.com/our-thinking/focus-
on/investing-in-women/bios-pdfs/women-half-sky-pdf.pdf
25. Women’s Empowerment:
What women want to know you support:
• Family and Children
• Health – including nutrition and fitness
• Education – including on-the-job
• Environment – clean air and water, safe products
• Enterprise – more microfinance, less red tape
• Community – shared child care, start-up enterprise
Sources: Sandra Lawson, Goldman Sachs
http://www.goldmansachs.com/our-thinking/focus-on/investing-in-
women/bios-pdfs/women-half-sky-pdf.pdf
27. The 7-Step Engagement Program
1.Set your business objectives
2.Inventory and map your stakeholders – by category,
risk, opportunity, and modes of engagement
3.Select priority and strategic stakeholders
4.Engage informally
5.Engage formally, only when necessary
6.Validate leadership opportunities; share ownership
7.Follow through: lead change, and share credit
28. 1.Rank ISSUES (Risks) and FRAMES (Opportunities)
2.Inventory, map, and prioritize STAKEHOLDERS
3.Outline a brand-building ENGAGEMENT plan
The 3-Step Quick Start
32. Then plan and ENGAGE
Key points to remember when engaging: RULES OF
1. Meet casually and informally, at least at first
2. Listen – ask questions
3. Admit imperfection – show humility – humanize
your company
4. Attribute an impact to them – give credit
5. Point to the systemic causes – common ground
6. Ask for confidentiality, but don’t expect it
7. Follow through