SOCIAL GOOD
SEPTEMBER 2011
TABLE OF CONTENTS Executive Summary ...................................................................................... 3 Social Good .................................................................................................. 5 The End of Goodwashing ........................................................................
........................................................................ Things to Watch: Buy One, Give One Away ............................................ Creative Urban Renewal ........................................................................ Ripping a Page From the For-Profit Playbook ............................................ The Global Do-Good Generation ............................................................ Things to Watch .................................................................................... Gaming for Social Good .................................................................... Beyond Slacktivism: Incentivizing Online Engagement ............................ Donation Channel Innovation ............................................................ Case Studies ........................................................................................ Appendix ........................................................................................................ Learn More About Our Experts and Influencers .............................................. Additional Charts .......................................................................................... The Rise of Shared Value
6 12 18 19 27 32 35 35 37 38 41 44 45 49
A note to readers: To make the report easy to navigate, we’ve added hyperlinks to the Table of Contents and Executive Summary, so you can jump immediately to the trends that most interest you. We’ve also added summary pages of each trend where, again, you can click items on the pages to jump to more information (or alternatively, you can read the material straight through). This is a report from JWTIntelligence. Go to JWTIntelligence.com to download this and other trend research.
SOCIAL GOOD
EXECUTIVE SUMMARY With leaders of multinational organizations embracing socially responsible practices as good business strategy, nonprofits taking a page from the for-profit playbook to drive results and a socially conscious generation coming of age, we’re seeing new energy and increasingly innovative initiatives in the area of social good. This report explores how macro trends—including the call for radical transparency, rapid urbanization and advancements in technology—are influencing social good initiatives across the globe. For instance, expect less “goodwashing,” more creative strategies for urban renewal and corporations embracing “shared value.”
• The End of Goodwashing: Cynical and savvy, today’s consumers expect greater accountability from nonprofits as well as brands involved in cause marketing—e.g., exactly where the money is going and what impact it’s having. More transparency will mean more focus on effecting real change and less “goodwashing.”
• The Rise of Shared Value: Rather than simply doling out checks to good causes, some corporations are starting to shift their business models, integrating social issues into their core strategies. The aim is to create shared value, a concept that reflects the growing belief that generating a profit and achieving social progress are not mutually exclusive goals. By reconsidering products and target demographics, forging partnerships with local groups and improving productivity in the value chain, companies can become a force for positive change while enhancing their long-term competitiveness.
• Creative Urban Renewal: Human environments will become increasingly important as the global population becomes more urbanized over the next few decades and cities boom. Brands will become key partners in enabling creative strategies for urban renewal—improving local environments, adding beauty or helping to bring communities together.
• Ripping a Page From the For-Profit Playbook: Nonprofit organizations are increasingly adopting for-profit tactics, fusing social consciousness with business acumen and focusing on achieving visible change. The shift from blanket or black-hole benevolence to targeted giving and venture philanthropy places more emphasis on cause and effect, measurable results and return on investment. The four macro trends above represent the driving forces in social good today. In addition, this report outlines things to watch in this space, including gamification, new ways to incentivize online engagement and donation channel innovation. We also highlight a number of standout case studies from around the world. METHODOLOGY JWT’s “Social Good” report is the result of quantitative, qualitative and desk research conducted by JWTIntelligence in partnership with EthosJWT, a unit specializing in brand strategy, ideas and activation for social change and societal benefit. JWTIntelligence and EthosJWT interviewed experts and influencers from the nonprofit and corporate social responsibility sectors and conducted quantitative surveys in the U.S., the U.K. and Canada. The surveys used SONAR™, JWT’s proprietary online tool, to poll 908 adults aged 18-plus from June 28-July 6, 2011.
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SOCIAL GOOD
MIT
David Belt
EXPERTS AND INFLUENCERS*
DAVID BELT, executive director and founder, Macro Sea
NATHAN EAGLE, founder and CEO, txteagle
VANESSA EDWARDS, head of corporate responsibility, WPP
TIM FAVERI, director, sustainability and responsibility, Tim Hortons, Inc.
KIM FINN, vice president and managing director, EthosJWT, Toronto
STEVE LEWIS, CEO and co-founder, Living PlanIT
IRA LISS, CEO and co-founder, AOK
CHARMIAN LOVE, chief executive, Volans
YAO-HUI HUANG, CEO, Win4Causes
WALKER MORRIS, Malawi country executive, Clinton Foundation
ALEXIS OHANIAN, co-founder, Reddit; founder, Breadpig
MILTON PEDRAZA, CEO, Luxury Institute
TONY PIGOTT, president and CEO, JWT Canada; global director, EthosJWT; co-founder, Brandaid Project
KRISTINE SHINE, vice president, PopSugar Media *See Appendix to learn more about these experts and influencers.
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SOCIAL GOOD
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THE END OF GOODWASHING DRIVERS
Consumer cynicism
Expectation of radical transparency
Reading the fine print
Social media
Competitive and government pressures More monitoring organizations and watchdogs Digitally enabled advocacy groups
TREND
MANIFESTATIONS
}} Cynical and savvy, today’s consumers expect greater accountability from nonprofits as well as brands involved in cause marketing—e.g., exactly where the money is going and what impact it’s having. More transparency will mean more focus on effecting real change and less “goodwashing.”
More (and easier-to-digest) labeling and reporting (sustainability indexes, Tesco green labeling scheme, Starbucks Global Responsibility Report, Apple’s environmental footprint, Patagonia’s “The Footprint Chronicles,” Best Buy CSR and sustainability webinar)
Benefit Corporations taking a holistic approach to social good
SIGNIFICANCE/RELEVANCE
It’s no longer enough to simply claim virtuous actions after some token efforts. As consumers learn all they ever wanted to know about the impact of their donations, volunteer efforts and cause-related purchases, brands and philanthropic organizations will need to ensure their credentials are up to the scrutiny. This goes for internal operations as well as partnerships. Better to acknowledge flaws in CSR programs and business operations—along with plans on how these issues will be addressed—than to be found out by watchdogs or engaged individuals and have reputations smeared across the media.
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THE END OF GOODWASHING
TREND Cynical and savvy, today’s consumers expect greater accountability from nonprofits as well as brands involved in cause marketing—e.g., exactly where the money is going and what impact it’s having. More transparency will mean more focus on effecting real change and less “goodwashing.”
Consumer cynicism: Today’s consumers have seen plenty of “goodwashing,” or dubious PR- or marketing-driven efforts, such as BP’s $125 million investment to position itself as environmentally responsible prior to causing a catastrophic oil spill. So people are more apt to question brands’ commitment to the causes they support: Just over half of respondents to our survey agreed with the statement, “I’m skeptical of brands that are aligned with charitable/social causes; their efforts seem somewhat halfhearted.”
Amy Phetamine
DRIVERS
People have also seen nonprofits being taken to task—from Madonna’s Raising Malawi to the foundation set up by Three Cups of Tea author Greg Mortenson—so they are somewhat cynical about charities as well. For example, 88% of our respondents said they are “sometimes suspicious about how much of the money I donate actually goes to people in need, as opposed to management and administrative costs.” (See figure 1a; for country breakdowns, see Appendix, figures 1b-d.)
“Brands are becoming far more discerning about who to cooperate with in terms of institutions. Madonna had a problem with her charity, and so did Oprah. So before brands step in to sponsor a charity, it has to have impeccable credentials, have substance.” —MILTON PEDRAZA, CEO, Luxury Institute
Expectation of radical transparency: With the rise of Maximum Disclosure—brands telling consumers more about everything from calorie counts to carbon footprints—consumers are growing to expect greater transparency from the philanthropic world as well. More than eight in 10 of our respondents agreed that “Brands that are aligned with charitable/social causes need to do a better job of telling me how my donation is benefiting the cause.” And threequarters of our respondents agreed with the statement, “Brands and companies don’t disclose enough information about their charity/social cause programs.” (See figure 1a.) Reading the fine print: People are putting more time and energy into research—they are increasingly apt to seek out more details about programs and brands that attract their attention and discover additional information about environmental impact, business practices and more. Indeed, 55% of our survey respondents reported doing research to learn how their funds are allocated before donating to a charitable organization; Millennials and Gen Xers are the most diligent cohorts, with around 60% in agreement. (See figure 1a.)
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Figure 1A: RISE OF CONSUMER CYNICISM AND EXPECTATION FOR TRANSPARENCY (U.S., U.K., CAN)
“My sense is that, with the younger generation, if they cannot read things about your company on the Web, you have very little credibility in their eyes. … It is almost like they do not believe you unless they can read it for themselves and get comfort that someone out there has blogged or given the issue the ‘Like’/thumbs up.”
Percentage who agree with each of the following Millennials (18-33)
Gen X (34-46)
I’m skeptical of brands that are aligned with charitable/social causes, their efforts seem somewhat halfhearted
Boomers (47-66)
}
53% 49% 55%
52%
I’m sometimes suspicious about how much of the money I donate actually goes to people in need, as opposed to management and administrative costs
85% 87% 92%
Brands that are aligned with charitable/social causes need to do a better job of telling me how my donation is benefiting the cause
–TIM FAVERI, director, sustainability and responsibility, Tim Hortons, Inc.
Brands and companies don’t disclose enough information about their charity/social cause programs
Social media: Facebook, Twitter and other social platforms have made it easy for anyone to become an agent of social change. With a quick click, activists, watchdogs, thought leaders and average Joes can disseminate their perspective to the masses, bringing varied points of view to light and limiting an organization’s ability to gloss over less flattering facts.
I do background research to learn exactly how my funds are allocated before donating money to a charitable organization I wish there was an easier way to see the direct impact my time/monetary donations have
86% 84% 83% 71% 77% 77% 60% 61% 45%
}
}
} }
88%
84%
75%
55%
86% 84% 83%
}
84%
Competitive and government pressures: Legal requirements and competitive pressures are forcing businesses as well as nonprofits to more fully disclose everything from carbon footprints and labor practices to metrics charting a charity’s effectiveness.
“We are being pushed by socially responsible investors and other stakeholders to measure the ‘impact’ or ‘outcomes’ of our social/community programs. I think this will be a big area of interest and focus in the next few years.”
More monitoring organizations and watchdogs: Third-party organizations are making it easier for people to find out more about individual charities and how they stack up. Guidestar, for instance, has aggregated information on more than 1.8 million nonprofits and 6.6 million people in the sector with the hopes of getting organizations to share their information more “openly and completely.” Charity Navigator evaluates more than 5,500 American charities based on their organizational efficiency and how well they sustain their programs over time, while the more stringent American Institute of Philanthropy (billed as “the pit bull of watchdogs”) is on a mission to “educate the public about the importance of wise giving.”
charitynavigator.org
—TIM FAVERI, director, sustainability and responsibility, Tim Hortons, Inc.
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Digitally enabled advocacy groups: Digital media is helping advocacy groups reach a broader audience with messages about avoiding brands that use offending ingredients, unsavory labor practices and so on. With so much information out there, these groups help simplify issues for consumers while pushing corporations to keep it clean. The Rainforest Action Network, for instance, relies on aggressive marketing campaigns against practices perceived as harming rainforests and natural resources; its mission is to get companies to “balance profits with principles, [and] to show that it is possible to do well by doing good.”
ran.org
goodguide.com
Aiming to build a more transparent marketplace, GoodGuide is a website that uses a staff of researchers (chemists, toxicologists, nutritionists, etc.) to rate consumer products based on a wide range of criteria. Its mobile app allows consumers to scan products and get instant ratings to help them “Find safe, healthy, and green products,” as GoodGuide’s tagline states. In 2010, GoodGuide announced plans to build a portal where manufacturers can learn how to boost their ratings.
MANIFESTATIONS More (and easier-to-digest) labeling and reporting: Some of the world’s leading brands are making the environmental impact of their products and operations more transparent. At the same time, reporting is becoming more visually driven, making sometimes complex information more digestible.
• Sustainability indexes: Since 2009, Walmart has been working with vendors to develop a sustainability index for all its products. The retailer sells so many products and has such an extensive global presence that the initiative could eventually be a tipping point for universal eco-labeling. IKEA recently announced a “Sustainability Product Score Card” for its products, saying that by 2015, it aims to make the bulk of its home furnishing products more sustainable than predecessor or competing products.
• Tesco green labeling scheme: Under this government-led voluntary program, the U.K.-based retail giant is working to label the 70,000 products on store shelves with carbon emissions data. So far Tesco has labeled more than 500 products.
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• Starbucks Global Responsibility Report: Among the annual responsibility reports that companies publish, which include updates on progress toward CSR and related goals, some stand out for their ability to make the information more digestible. Starbucks, for example, uses a visually driven format to reveal its progress in the areas of coffee purchasing and farmer support, community involvement, cup recycling and energy and water conservation; this is viewable under the Responsibility tab of the company’s website.
• Apple’s environmental footprint: Apple’s website reveals its greenhouse gas emissions and outlines the environmental footprint of all its products in a visually appealing way.
• Best Buy CSR and sustainability webinar: In mid-2011, Best Buy took a brave leap into transparency by hosting a discussion of its annual sustainability report with a live audience via Livestream and Twitter. Benefit Corporations taking a holistic approach to social good: While capitalism in the past century blossomed around the idea of increasing shareholder value, a new crop of corporations known as Benefit Corporations (or B Corps) operates under recently adopted legal provisions that make it easier to put sustainability and accountability at the center of the business model. B Corps can legally consider all stakeholders when making decisions, not only stockholders.
apple.com/environment
brand details the environmental impact of its products, listing “the good” and “the bad” for each (e.g., the Nano Puff Pullover jacket’s water-repellent finish contains a “synthetic chemical that is now persistent in the environment”).
starbucks.com/responsibility
• Patagonia’s “The Footprint Chronicles”: The outdoor-gear
To become a B Corp, companies must be certified by B Lab, a nonprofit that evaluates a business’s operations and legal framework to ensure that doing good is ingrained in the DNA. There are nearly 450 B Corps across North America and the EU—including Method and Seventh Generation—and they generate $2.18 billion in revenue across 54 industries, according to bcorporation.net.
“The answer is not to play ‘gotcha’ at the back end. The answer is getting in front of the problem and preventing situations in the first instance.” —TIM DELANEY, president, National Council of Nonprofits, “Can You Know Where Your Charity Dollars Go? Not Easily,” npr.org, May 6, 2011
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SIGNIFICANCE/RELEVANCE It’s no longer enough to simply claim virtuous actions after some token efforts. As consumers learn all they ever wanted to know about the impact of their donations, volunteer efforts and cause-related purchases, brands and philanthropic organizations will need to ensure their credentials are up to the scrutiny. This goes for internal operations as well as partnerships. Better to acknowledge flaws in CSR programs and business operations—along with plans on how these issues will be addressed—than to be found out by watchdogs or engaged individuals and have reputations smeared across the media.
POTENTIAL With consumers on high alert, claims must be solid: Consumers will see through “goodwashing” and similar practices. And transparency is essential too. It’s likely that simply being open will matter more to consumers than the specific information revealed. As more corporations spell out their CSR credentials and nonprofits more clearly illustrate their mission, it will become increasingly important to practice Visual Fluency—that is, convey complex information in an easily digestible way. People in today’s attention-scarce economy prefer a graphic synthesis of information to an avalanche of data and reading material. Watch for more businesses to follow the lead of companies like Best Buy, which is opening up a two-way dialogue about its CSR reporting; Patagonia, which divulges the shortcomings of its products in addition to their green credentials; and Starbucks, which lets consumers easily check the company’s progress toward self-imposed CSR goals. Such efforts will help companies differentiate themselves from the cacophony of CSR messaging. Meanwhile, brands with the cleanest credentials can ramp up efforts to educate consumers about why they should care and apply competitive pressure on organizations that have been slow to adopt the “Do no evil” creed or are still practicing old-school philanthropy. Brands that don’t become more responsible for their social impact and act more sustainably will lose ground.
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THE RISE OF SHARED VALUE DRIVERS
New opportunities in emerging markets
Pressure to cut costs and carbon emissions
Blurring lines between business, nonprofits and government
TREND
}}
Looming resource shortages
Consumer expectations
The Millennial outlook
Rather than simply doling out checks to good causes, some corporations are starting to shift their business models, integrating social issues into their core strategies. The aim is to create shared value, a concept that reflects the growing belief that generating a profit and achieving social progress are not mutually exclusive goals. By reconsidering products and target demographics, forging partnerships with local groups and improving productivity in the value chain, companies can become a force for positive change while enhancing their long-term competitiveness.
MANIFESTATIONS
Reconceiving products to address social issues (Campbell’s Nourish, Philips’ “Sustainable Energy Solutions for Africa,” GE’s Vscan)
Reconceiving supply chains (Sabritas’ Educampo project, Marks & Spencer’s “Plan A,” Walmart’s fuelefficient trucks)
SIGNIFICANCE/RELEVANCE
By putting shared value at the center of their strategy, brands can benefit their business, their customers and society in general. Companies should identify needs and develop products, services and/or processes to meet them; invest in the charitable, nonprofit and/or NGO space; and seek ways to reduce fuel consumption, which reduces costs and emissions. In the long term, these strategies can expand companies’ market presence, insulate them from shocks in the supply chain and improve the way they are perceived by consumers.
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THE RISE OF SHARED VALUE
TREND Rather than simply doling out checks to good causes, some corporations are starting to shift their business models, integrating social issues into their core strategies. The aim is to create shared value, a concept that reflects the growing belief that generating a profit and achieving social progress are not mutually exclusive goals. By reconsidering products and target demographics, forging partnerships with local groups and improving productivity in the value chain, companies can become a force for positive change while enhancing their longterm competitiveness. DRIVERS New opportunities in emerging markets: As businesses seek new sources of revenue in emerging markets, they are coming to see that they can generate opportunities for growth if they help to address some of the endemic problems they find (for example, by creating relevant products and services and investing in sustainable manufacturing processes). In Africa, for example, where an estimated 560 million people live without electricity, new solar-powered technologies offer a cheap way to provide families with lighting. Pressure to cut costs and carbon emissions: Companies are developing more sustainable,low-cost manufacturing and transport practices as they seek ways to both reduce costs and fall in line with pressures to cut carbon emissions. These practices,and others focused on stewarding natural resources,can be both economical and effective,cutting pollution and improving local living conditions.
“The concept of shared value can be defined as policies and operating practices that enhance the competitiveness of a company while simultaneously advancing the economic and social conditions in the communities in which it operates. Shared value creation focuses on identifying and expanding the connections between societal and economic progress.” —MICHAEL E. PORTER AND MARK R. KRAMER, “Creating Shared Value: How to reinvent capitalism—and unleash a wave of innovation and growth,” Harvard Business Review, January-February 2011
“We have observed that companies that choose to take on a more proactive approach in the form of ‘social innovation’ are capturing much greater competitive advantage. This competitive advantage is rooted in an ability to create new products and services that deliver social and environmental impact alongside financial impact, gain access to new markets, engage and retain their internal talent, as well as build brand differentiation in the market.” —CHARMIAN LOVE, chief executive of social innovation consultancy Volans
Blurring lines between business, nonprofits and government: Corporations are partnering with governments and nonprofits—from academic institutions to development organizations—in alliances that advance the objectives of all parties. As part of The Cocoa Plan, Nestlé, for example, has partnered with NGOs, governments and private companies in an effort to help cocoa farmers run profitable farms, improve production, respect the environment and better their local communities. We’re also seeing more social business enterprises—organizations that comprise both for- and nonprofit components—such as Waste Concern, which promotes recycling and waste management in Bangladesh, and Terracycle, which helps to collect waste in more than a dozen countries and upcycles it into sellable products. As Michael E. Porter and Mark R. Kramer wrote in Harvard Business Review earlier this year,“The principle of shared value creation cuts across the traditional divide between the responsibilities of business and those of government or civil society. From society’s perspective, it does not matter what types of organizations created the value. What matters is that benefits are delivered by those organizations—or combinations of organizations—that are best positioned to achieve the most impact for the least cost.”
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“We’ll see a growing recognition (at least among the most progressive companies) of the opportunities associated with sustainability and a greater commitment to creating ‘shared value’ for business and society. In terms of implementation, partnerships are often essential because of the complex nature of the challenges being addressed.” —VANESSA EDWARDS, head of corporate responsibility, WPP
Looming resource shortages: In today’s globalized environment, demand for resources is growing exponentially, and experts are sounding warnings about looming shortages. In Africa, for example, political instability and antiquated farming techniques mean volatile supply chains and greater risk for companies. Corporations are trying to ensure the long-term viability of key resources by improving living conditions and providing communities with new, more sustainable technologies. Consumer expectations: Consumers care about social responsibility and expect corporations to care as well, as our data shows: 87% of respondents across the markets surveyed agreed that “Brands and big corporations should take responsibility for improving the world.” Moreover, 90% felt that “Companies need to do more good, not just less bad.” (See figure 2a; for country breakdowns, see Appendix, figures 2 b-d.)
Figure 2A: CONSUMER EXPECTATION FOR RESPONSIBLE BUSINESS (U.S., U.K., CAN) Percentage who agree with each of the following
Millennials (18-33)
Gen X (34-46)
Boomers (47-66)
Brands and big corporations should take responsibility for improving the world
84% 89% 87%
Companies need to do more good, not just less bad
88% 88% 93%
I believe brands are able to be both powerful/ profitable and kind to the world at the same time
88% 88% 92%
} } }
87%
90%
90%
The Millennial outlook: Millennials, who tend to be optimistic, entrepreneurial and socially engaged, are entering the business world and bringing this mind-set with them. This globally connected generation wants to effect social change and use intuitive, commercial strategies to do so. (See “The Global Do-Good Generation,” page 32.)
MANIFESTATIONS Reconceiving products to address social issues: Global brands are developing products and services tailored to address issues prevalent in the markets where they operate.
• Campbell’s Nourish: Distributed in Canadian groceries, Nourish is a single-serving can of soup designed to provide a complete daily serving of three key food groups at a low cost. Campbell’s considers the product both a commercial opportunity and a way to address hunger and food security issues. Additionally, the company donated 200,000 cans of Nourish to Food Banks Canada. Campbell’s has developed partnerships with nonprofits such as the World Food Programme and local governments, and is considering rolling out Nourish in other markets.
• Philips’ “Sustainable Energy Solutions for Africa”: As part of this solar-focused effort, Philips is partnering with the Dutch government in a bid to provide affordable, sustainable energy solutions to some 10 million people across
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wfp.org
lighting.philips.com
THE RISE OF SHARED VALUE
10 sub-Saharan African nations by 2015. The Solar Home System, for instance, is a low-cost, highly efficient light for homes and small businesses. Its solar-charged battery pack powers two LED lamps, and a full day’s charging in the sun can provide more than five hours of light. A cheap, lightweight solar reading light is designed to help children complete their homework at night or allow people to read in the evening.
• GE’s Vscan: GE started selling this smartphone-sized imaging tool, which brings ultrasound technology to physicians’ pockets, in 2010. The device has an hour’s worth of battery life, allowing medics to diagnose patients in the field—most notably in crisis zones where access to power is limited—and along bedsides. With a price tag just under $8,000, the Vscan offers a considerably cheaper alternative to standard ultrasound machines, which can cost upward of $100,000.
Projects that create shared value “sidestep the age-old debate about whether business is good or evil. ... They just want to solve social problems in the most effective way they know how, and engaging business know-how, resources and the profit motive turns out to be an important part of many solutions.” —LESLIE R. CRUTCHFIELD, JOHN V. KANIA, and MARK R. KRAMER, “Do More Than Give: The Six Practices of Donors Who Change the World,” as reprinted in Fast Company, March 2011
Reconceiving supply chains: Faced with rising manufacturing and transportation costs—especially as the price of oil increases— businesses are starting to reduce packaging and reconfigure their logistics systems, steps that both save money and lower carbon emissions. sustainability of its corn supply, Sabritas works with farmers close to its factories in Mexico, in collaboration with the Mexican Foundation for Rural Development. The PepsiCoowned snack brand provides seeds, fertilizer, water usage guidelines and agrochemicals to help farmers increase their yields. Between 2008 and 2010, the project helped close to 300 small families, and the average corn yield more than doubled. Meanwhile, PepsiCo was able to lower transportation costs while ensuring access to the type of corn best suited to its
Vscan Primary Care Online Brochure
• Sabritas, Educampo project: As part of efforts to improve the
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THE RISE OF SHARED VALUE
needs. The company runs similar agricultural programs in other countries, including Russia and China. Spencer has committed to the lofty goal of becoming the world’s most sustainable major retailer by 2015. The company reported that in 2010/2011, this ongoing initiative contributed to a net benefit of £70 million for M&S. Among other strategies, the retailer switched its delivery fleet to 50% bio-diesel fuel and implemented a “‘green’ business travel policy to reduce CO2 emissions caused” by travel. It is currently upgrading its refrigeration systems in stores, leading to a reduction in greenhouse gas emissions.
pepsico.com
• Marks & Spencer, “Plan A”: The British retailer Marks &
double its truck efficiency by 2015 (based on a 2005 baseline), switching to fuel-efficient tires, recalibrating engines and adding aerodynamic elements to truck carriages. It has also replaced two-thirds of its nearly 7,000-truck fleet with fuel-efficient tractors and used detailed analysis to shorten its route network, by 49 million miles. In 2010, these initiatives helped the company cut its fuel costs and save almost 40,000 metric tons of CO2 emissions.
Walmart Stores
• Walmart’s fuel-efficient trucks: Walmart is working to
SIGNIFICANCE/RELEVANCE By putting shared value at the center of their strategy, brands can benefit their business, their customers and society in general. Companies should identify needs and develop products, services and/or processes to meet them; invest in the charitable, nonprofit and/or NGO space; and seek ways to reduce fuel consumption, which reduces costs and emissions. In the long term, these strategies can expand companies’ market presence, insulate them from shocks in the supply chain and improve the way they are perceived by consumers.
POTENTIAL There are more than 3 billion low-income consumers worldwide, according to estimates by Nestlé, and as global population growth explodes, this number is set to spike. By creating products and services to meet the needs of this segment, brands have a huge opportunity to expand outside developed markets. And by investing in emerging markets, brands can create a virtuous circle, where employed locals become aspiring middle-class consumers. Brands can innovate by scaling down existing offerings into lower-priced versions. GE’s two-year-old Healthymagination project, for instance, which aims to lower the cost of health care, has already birthed several economical devices. One
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example: The Brivo DR-F, a digital X-ray machine with a space-saving design, costs 30% less than premium systems and is also more energy efficient than typical film-imaging systems. Brands should consider how to best educate shareholders about the potential of these kinds of ventures. This can be done by emphasizing the importance of a long-term business strategy, highlighting learnings about new areas for product development and making incremental changes to corporate practices. At the same time, expect a new group of shared value auditors, which will develop new metrics that assess companies’ performances in terms of social impact and shared value generated.
“Shared value is not social responsibility, philanthropy, or even sustainability, but a new way to achieve economic success. It is not on the margin of what companies do but at the center. We believe that it can give rise to the next major transformation of business thinking.” —MICHAEL E. PORTER and MARK R. KRAMER, “Creating Shared Value: How to reinvent capitalism— and unleash a wave of innovation and growth,” Harvard Business Review, January-February 2011
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THINGS TO WATCH Buy One, Give One Away
betterworldbooks.com
warbyparker.com
sirrichards.com
Watch for more companies to adopt the novel buy-one, give-one away model pioneered by TOMS, which donates one pair of shoes for every pair it sells (more recently the company expanded into eyewear). This strategy offers consumers a powerful incentive to become customers while also contributing to the greater good.
Warby Parker: To help low-income people with vision problems increase their earning potential, Warby Parker donates one pair of eyeglasses for every pair sold. So far, the company has given away more than 50,000 pairs to people around the world. Sir Richard’s Condom Company: This company claims to offer the “first ever buy-one, give-one condom.” For every condom sold, it donates another to a country in need to help meet the world’s unmet demand for condoms. Better World Books: In August 2011, this online bookseller—which seeks to improve literacy rates by collecting and donating books to partner organizations—began donating a book for each one purchased on the site.
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CREATIVE URBAN RENEWAL DRIVERS
Fastest urban boom in history
Government stagnation and lack of funding
Empty retail space
Environmental concerns
DIY ethic
“We vs. me” mind-set
Brand involvement in community is expected
TREND
MANIFESTATIONS
Creativity bubbling up (ArtBridge, Guerrilla Gardening, Greenaid, Macro Sea, Detroit’s Imagination Station and Loveland, Favela Painting project)
}} Human environments will become increasingly important as the global population becomes more urbanized over the next few decades and cities boom. Brands will become key partners in enabling creative strategies for urban renewal— improving local environments, adding beauty or helping to bring communities together.
Techie urbanites leveraging data (SeeClickFix, Give a Minute, Roadify, Code for America)
Brands supporting Creative Urban Renewal (KFC, Apple, Kia, Dulux Paints, Planters, Levi’s, BMW Guggenheim Lab)
Giving new life to dead space (Absolut Stairwell Gallery, Wasted Spaces, “I Wish This Was”)
Corona’s “Save the Beach” project
SIGNIFICANCE/RELEVANCE
Brands will be key partners in enabling creative strategies for renewal, taking local CSR initiatives to the next level. Brands can show their creativity, innovative spirit and community-mindedness by tapping into the “urban hack” mind-set.
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CREATIVE URBAN RENEWAL
TREND Human environments will become increasingly important as the global population becomes more urbanized over the next few decades and cities boom. Brands will become key partners in enabling creative strategies for urban renewal— improving local environments, adding beauty or helping to bring communities together.
DRIVERS Fastest urban boom in history: With cities booming, there’s never been a more pressing need to rethink them. In the developing world, people are drawn to new opportunities in urban centers, which are adding an average of 5 million people per month, according to UN-HABITAT. In Asia, Foreign Policy estimates, about half the population (1 billion people) will migrate from the countryside to urban centers by 2030. Meanwhile, the U.S. is seeing “bright flight,” with younger, educated Americans reversing the trend among their parents and grandparents to leave cities for the suburbs; among first-time home buyers, 77% say they want to live in urban areas. Government stagnation and lack of funding: Despite government stimulus funds earmarked for infrastructure, many officials cite lack of money as a key barrier to infrastructure investment—a reality that is leading to citizen frustration. Nearly seven out of 10 respondents agreed with the statement, “My local community is in need of a lot of care, and the city government has been slow to act”; discontent is even higher among British Millennials, with three-fourths in agreement. (See figure 3a; for country breakdowns, see Appendix, figures 3b-d.) The private sector can boost the speed and effectiveness of government projects to upgrade infrastructure. Governments in emerging markets “have plans to have private companies take a larger role,” according to a Bank of America Merrill Lynch study on investing in emerging market infrastructure. Empty retail space: As so many chains have declared bankruptcy and closed stores, developers have been forced to consider repurposing excess retail space for activities other than shopping. They are recognizing the importance of utilizing these spaces, which, if done correctly, can encourage foot traffic and maintain the vitality of urban areas.
David Belt
“The whole idea of dead retail space is pretty prevalent in the downturn. Artists used to go in and take over warehouse spaces. Now warehouse spaces—at least in cities—are often expensive. So maybe the next move is to take over some of these huge areas of strip malls that are so inexpensive or dead malls and create art studios. … I think people would love to take some of these spaces and turn them on their heads. … A lot of what happens in art these days is about appropriation, so if there was a way to rethink junk space and let the community use that, without too much money or intervention, [brands] could create an interesting place for [people] to go that’s sort of the anti-mall.” —DAVID BELT, executive director and founder, Macro Sea, a development firm that uses everyday objects to create unexpected interactive urban projects
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CREATIVE URBAN RENEWAL
Environmental concerns: Public awareness surrounding environmental degradation is leading many to rethink urban spaces. DIY ethic: People are losing faith in big institutions and governments, becoming more motivated to implement their own, often unorthodox ideas for change. Indeed, 82% of our survey respondents agreed with the statement, “It’s better to take local community projects into your own hands rather than waiting for big institutions or city government action.” This figure jumps to 88% among British Millennials. (See figure 3a.) Figure 3A: CONSUMER DESIRE FOR BRAND INVOLVEMENT IN LOCAL COMMUNITY (U.S., U.K., CAN)
“We vs. me” mind-set: There’s a growing belief in collectively driven positive change, both among professionals (designers and architects, developers, urban planners, etc.) and everyday folk driven to better their environs. Brand involvement in community is expected: Renewed interest in local provenance and community building has spotlighted the impact a multinational corporation can have on communities. As a result, consumers are beginning to hold these organizations to a higher standard. Our survey found that 84% of respondents agreed with the statement, “Brands and large corporations have a responsibility to improve the local communities in which they do business.” And nearly seven in 10 respondents said they felt that big business and corporations should be more involved when it comes to supporting charitable, social and/or environmental causes in local communities.
Percentage who agree with each of the following Millennials (18-33)
Gen X (34-46)
Boomers (47-66)
My local community is in need of a lot of care and the city government has been slow to act
68% 67% 67%
}
68%
It’s better to take local community projects into your own hands rather than waiting for big institutions or city government action
81% 83% 83%
Brands and large corporations have a responsibility to improve the local communities in which they do business
82% 83% 86%
I wish a brand or company would help by making substantial investments to improve my local community Members of my local community are willing and able to roll up their sleeves and work on projects that will improve our town; we just need the tools and leadership to do it
76% 80% 80% 75% 80% 75%
} } } }
82%
84%
79%
77%
MANIFESTATIONS Creativity bubbling up: So-called urban hackers, artists, environmentalists and nonprofits have traditionally dominated this movement, challenging the status quo by re-creating spaces. Often, the ideas involve simple ways to beautify spaces.
• ArtBridge: This nonprofit public arts organization is working to turn overhead construction scaffolding in New York into showcases for emerging local artists.
• Guerrilla Gardening: This U.K.-based group uses the motto “Let’s fight the filth with forks and flowers!” and says it’s for “anyone interested in the war against neglect and scarcity of public space.” The movement is picking up adherents in the U.S.
• Greenaid: In Los Angeles, this grassroots environmental campaign makes “candy machines loaded with ‘seedbombs’” for people to toss into unused plots of land.
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CREATIVE URBAN RENEWAL
• Macro Sea: This development company is bridging the gap between the creative grassroots and the private-sector approach, utilizing materials (oftentimes junk) and space in unexpected and visceral ways. One project turned Park Avenue in midtown Manhattan into a “lo-fi country club that featured dumpster swimming pools, cabanas, bocce ball and barbecues.” decline, a wave of artists have hijacked the city, turning it into a center of urban and artistic experimentation. The Imagination Station, a nonprofit group of artists and designers, aims to “reclaim” ruined properties, creating community centers and public art spaces. Loveland is a “micro real estate and entertainment fundraising startup,” with “inchvestors” from around the world invited to buy a square inch of property in Detroit; an online community then decides what should be done with the physical space. The project aims to “provide a fun, game-like ownership experience while creating entertainment fundraising, community collaboration, and social mapping tools that work at any scale.”
Antonia Wagner
• Detroit’s Imagination Station and Loveland: In the wake of Detroit’s
• Favela Painting project: European artists Haas&Hahn have been beautifying Brazilian slums since 2005. The organization behind this, Firmeza Foundation, “supports the creation of striking artworks in unexpected places. It collaborates with local people to use art as a tool to inspire, create beauty, combat prejudice and attract attention.” Techie urbanites leveraging data: Empowered by technology, urbanites are setting out to improve real-time access to information, often bypassing city agencies, by making data mobile, collaborative and social.
• SeeClickFix: This service allows anyone to report and track nonemergency issues such as downed trees, broken streetlights and potholes anywhere in the world. In April 2011, it launched a Facebook app, awarding “civic points” for each community-related effort done through SeeClickFix. The Facebook platform includes gaming elements, showing users how they stack up against friends and the SeeClickFix community. San Jose, Calif., Give a Minute is akin to a virtual community board; it provides a platform for people to share ideas on improving their city with community leaders, who respond to the best submissions.
• Roadify: This SMS-based service—currently operating in parts of Brooklyn—compiles user-generated data to provide real-time status updates on parking spots and public transit.
youtube.com/LocalProjects
• Give a Minute: Currently operating in Chicago, Memphis, Tenn., and
• Code for America: This new nonprofit similar to Teach for America and supported by Yahoo! and Microsoft, among others, taps Americans’ newfound sense of DIY civic reform. This year 20 idealistic techies are partnering with four U.S. cities—Boston, Philadelphia, Washington and Seattle—to create efficient and saleable Web-based solutions that address core civic problems and will help make cities “more efficient, transparent and participatory.” The goal is to help bring American cities into the 21st century while bridging budget gaps created by the recession.
22
CREATIVE URBAN RENEWAL
MIT
“I believe this massive amount of data that’s being generated can be used to better design cities, to build better disease surveillance models, to do things that ultimately are going to improve the lives of billions of people.” —NATHAN EAGLE, founder and CEO, txteagle, which creates opportunities for mobile subscribers in the developing world to generate income via their phones
Brands supporting Creative Urban Renewal: With local municipalities strapped for cash, multinational brands are partnering with local city agencies to fund urban improvements.
• “Re-Freshed by KFC”: In the absence of government funding, KFC donated money to help fill some of the potholes
BizCommunity.com
in and around Johannesburg, South Africa, and sponsored pothole and road repairs in five U.S. cities; the repairs were stamped “Re-Freshed by KFC” with a nonpermanent stencil.
• Apple’s transit station renovation: Before opening a Chicago store, Apple spent $4 million renovating a nearby transit station that was in terrible condition; it now has a new façade and park-like plaza, with Apple granted advertising rights.
• Kia’s “Drive Change” campaign: In Canada, Kia built its “Drive Change” campaign around renewal projects, with spots showing Kia teams making over two rundown spaces each in the course of a day.
• Dulux Paints’ “Let’s Colour Project”: Taking a cue from nonprofits such as Publicolor and Favela Painting, Dulux Paints embarked on the “Let’s Colour Project” in March 2010, supplying material and organizing communities in Brazil, France, the U.K., South Africa, Turkey, India and the Netherlands to help paint schools, homes and public spaces. Planters is sponsoring the creation of peanutshaped community parks, dubbed Planters Groves, in four U.S. cities as part of the nut brand’s “Naturally Remarkable” campaign and a national tour to promote sustainability. The parks are constructed on unused land with recycled materials, and local volunteers come together alongside Planters employees to work on them.
prnewswire.com
• Planters’ community parks: Throughout 2011,
23
CREATIVE URBAN RENEWAL
• Levi’s donations to a Rust Belt town: Braddock, Pa.—a town hurt by the decline of jobs for the skilled blue-collar worker— is the beneficiary of Levi’s Creative Urban Renewal project. The brand, which showcases Braddock locals in its national “Go Forth” campaign, agreed to fund a refurbishment of the Braddock town community center and to support an urban farm that provides inexpensive produce to residents.
David Belt
generating ideas and bringing people together. BMW teamed up with the Guggenheim Foundation to build a “lab” that will spend six years traveling through nine cities worldwide, serving as “a public place for research, experimentation, and the sharing of ideas about major issues affecting urban life.” The project launched in New York in August 2011.
youtube.com/LevisReadyToWork
• BMW Guggenheim Lab: Some efforts focus on simply
“Just to put [your brand’s] name on a banner isn’t so interesting, but to take a leadership role where they’re raising money for a community garden or where they’re providing a creative space for people to interact with—that’s pretty empowering because it gives people the tools.
“I feel [brands] don’t have to accommodate that many people in order to have a tremendous impact and influence and get a pretty big bang for their buck, because if they have the right people in there the word really gets out and the ripple effect is felt.” —DAVID BELT, executive director and founder, Macro Sea, a development firm that uses everyday objects to create unexpected interactive urban projects
Giving new life to dead space: Developers and DIYers are repurposing excess retail space for activities other than shopping.
• Absolut Stairwell Gallery: This initiative was created as part of the Dead Space Living Artists initiative, which converted neglected spaces in Sydney into “culture pockets”; each month a staircase leading up to a popular bar displayed works from emerging artists. nonprofit “transforms vacant properties and other unloved [oftentimes retail] spaces into exciting art experiences,” placing smiley-face graphics on an abandoned storefront, for instance, and creating a public art installation that utilizes commands from Twitter users to power an image projected onto a wall. The organization also held an open call for ideas on intermediary uses for an abandoned shopping center.
wastedspaces.org
• Wasted Spaces: This London-based
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CREATIVE URBAN RENEWAL
• “I Wish This Was”: In New Orleans, artist Candy Chang launched this project in late 2010, encouraging community Corona’s “Save the Beach” project: Launched in 2009, this project was created to clean up the litter on one European beach each year. The initial year more than 120,000 people voted via the “Save the Beach” website, for Capocotta beach in Rome. In 2010, Corona—in partnership with JWT Madrid—decided to push the concept even further. To call attention to the litter issue in a unique way, it created a beach hotel made out of garbage, symbolizing what vacations will be like in the future if people continue to litter on beaches. The German artist HA Schult, known for his work with trash, designed the building, which included more than 12 tons of litter picked up from European beaches. The hotel began to receive bookings in the first few hours. This year, the cleanup took place in Litorali di Augusta in Sicily, Italy.
coronasavethebeach.org
members to tag abandoned buildings with stickers detailing how the space could be better used.
SIGNIFICANCE/RELEVANCE Brands will be key partners in enabling creative strategies for renewal, taking local CSR initiatives to the next level. Brands can show their creativity, innovative spirit and community-mindedness by tapping into the “urban hack” mind-set.
POTENTIAL At a time when CSR and more traditional marketing efforts are meshing, Creative Urban Renewal projects present ways for brands to both help communities/neighborhoods and craft an image as innovative, original and cool. These projects tend to be sustainable, fun, educational and interactive—key areas/attributes for brands. Our research suggests that consumers would be open to brand-sponsored community renewal projects, with 79% of respondents agreeing with the statement, “I wish a brand or company would help by making substantial investments to improve my local community.” (See figure 3a.) With today’s “we vs. me” mind-set and DIY ethos, there is ample opportunity for brands to partner with professionals, residents and nonprofits to spearhead innovative ideas and solutions. In our survey, 77% of Americans, Britons and Canadians agreed that “Members of my local community are willing and able to roll up their sleeves and work on projects that will improve our town; we just need the tools and leadership to do it.” (See figure 3a.) By creating opportunities for active participation in the revitalization of a space, brands can further generate goodwill by giving citizens a sense of ownership over the project and pride in their achievements. Large corporations can also leverage their economic weight on behalf of communities and side with citizens to spur local government action.
25
CREATIVE URBAN RENEWAL
The efforts must be substantial: This movement has roots in anti-consumerist notions, and skeptical consumers will quickly smell empty gestures. Additionally, with 89% of survey respondents in agreement, local citizenry must be involved in the decision-making process before brands or big corporations embark on projects to improve a community. (See Appendix, figure 3e; for country breakdowns, see Appendix, figures 3f-h.)
“Unfortunately, we’re still in the phase of insincerity. The next evolution of this is when some of those companies actually say, ‘Look, we need to do this because it makes great business sense for us, because it creates a meaningful environment in which to be employed.’ The more we push on creating change and improving quality of life for people through what we do best, which is technologies and business models and investments, the more comes to us. And the more that comes to us, the more we can reinvest. And it creates an acceleration of not only our business ethic and our business model, and our business, but also it starts to have real tangible, measurable impacts on people.” —STEVE LEWIS, CEO and co-founder, Living PlanIT, which builds large integrated technology platforms for managing city operations
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RIPPING A PAGE FROM THE FOR-PROFIT PLAYBOOK DRIVERS
A race for funding
Desire for self-sufficiency
Donor insistence on results
TREND
MANIFESTATIONS
}} Nonprofit organizations are increasingly adopting for-profit tactics, fusing social consciousness with business acumen and focusing on achieving visible change. The shift from blanket or black-hole benevolence to targeted giving and venture philanthropy places more emphasis on cause and effect, measurable results and return on investment.
Surge in public-private partnerships (Walmart and Treasure Coast Food Bank, IBM and Turkish nonprofit Toplum Gönüllüleri Vakfi, HP and mothers2mothers, micro-volunteering)
Surge in social enterprises (Me to We, Breadpig)
Venture philanthropy funds (Acumen Fund, International Finance Corporation)
SIGNIFICANCE/RELEVANCE
Nonprofits and other socially focused efforts will need more than good intentions to stay viable as supporters seek measurable change. Indeed, with the rise of social enterprises, we’ll see a more open-minded attitude toward the means that organizations use to achieve their ends, as long as that means real-world impact.
27
RIPPING A PAGE FROM THE FOR-PROFIT PLAYBOOK
TREND Nonprofit organizations are increasingly adopting for-profit tactics, fusing social consciousness with business acumen and focusing on achieving visible change. The shift from blanket or black-hole benevolence to targeted giving and venture philanthropy places more emphasis on cause and effect, measurable results and return on investment.
In the next few years, CSR and social change initiatives will evolve “from traditional development models of aid provided with an undetermined end-game for sustainability to a business-plan approach with a quantifiable baseline, benchmarks, outcomes and timeline for sustainability.” —WALKER MORRIS, Malawi country executive, Clinton Foundation
DRIVERS
During the recession, nonprofits found themselves in crisis when donations diminished and revenue streams dried up. (According to a 2010 report by The Nonprofit Research Collaborative, 37% of 2,500-plus organizations surveyed reported a decrease in funding during the first nine months of the year.) At the same time, more organizations require funding— in the U.S., for example, the number of registered nonprofits grew by nearly 380,000 between 1999 and 2009. There’s an excess of choice: 86% of respondents said they are overwhelmed by the number of social causes and charities out there.
tableatny
A race for funding: With more organizations vying for less money, nonprofits need impressive numbers to get the attention of donors and show why they’re the better investment.
Desire for self-sufficiency: Since private donations, grants and government funding often carry stipulations as to how they can be used, nonprofits are increasingly looking for ways to develop their autonomy. By creating steady self-generated revenue streams, they gain the flexibility and security needed to allocate funds as they see fit. Donor insistence on results: Today’s well-informed consumers expect total transparency from the nonprofits they support (see “The End of Goodwashing” on page 6 for more): They want to know not only how funds are spent but also exactly what kind of impact those funds are making.
28
RIPPING A PAGE FROM THE FOR-PROFIT PLAYBOOK
MANIFESTATIONS Surge in public-private partnerships: Instead of simply donating funds as part of their CSR efforts, more corporations and professionals are lending their know-how, boosting the ability of nonprofits to achieve their goals. Treasure Coast Food Bank leveraged Walmart’s famed logistical expertise to determine how to deliver more meals each week with their existing resources. Members of the Walmart distribution team helped the food bank build its warehousing capabilities, improve storage and more rapidly sort food; they also developed new truck routes to facilitate more frequent food deliveries. The food bank was able to increase its culinary partners from 140 to 200 and doubled the number of meals it serves weekly.
stophunger.org
facebook.com/wlamart
• Walmart and Treasure Coast Food Bank: In 2009, Florida-based
• IBM and Turkish nonprofit Toplum Gönüllüleri Vakfı: In Turkey, IBM volunteers partnered with the educational nonprofit Toplum Gönüllüleri Vakfı (Community Volunteers Foundation), using the company’s “Share project management skills” solution to help develop and teach a children’s literacy program. This and similar efforts are coordinated via IBM’s On Demand Community portal, which allows IBM volunteers to combine their skills and IBM’s technology. Since its 2003 launch, 170,000 IBM employees have logged more than 12 million hours of volunteer service via the site. of a new partnership with mothers2mothers—a South African group that works to prevent HIVpositive mothers from transmitting the virus to their children—HP is using its database, cloud and mobile technologies to digitize the organization’s patient records. This will allow mothers2mothers to share patient information across regions, helping counselors provide better education and support services, and eventually enable staff to collect and share basic data via mobile phones.
m2m.org
• HP and mothers2mothers: As part
skilled volunteers with nonprofits in need of relevant services, such as logo design, accounting help or membership development strategies. Examples include Catchafire and Sparked, both for-profits, and the nonprofit Taproot Foundation.
catchafire.org
• Micro-volunteering: A new crop of organizations connects
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metowe.com
RIPPING A PAGE FROM THE FOR-PROFIT PLAYBOOK
Surge in social enterprises: Entrepreneurs are starting philanthropy-driven organizations based around for-profit models.
• Me to We: Harnessing for-profit strategies to achieve socially responsible objectives, this retailer was launched by the
youtube.com/MeToWe
founders of Free the Children with the sole purpose of creating a steady revenue stream for the charity. It sells environmentally friendly and socially conscious apparel, self-empowerment books and music, and also coordinates adventure travel trips, donating half the profits to Free the Children and investing the other half back into the business. In 2010, Me to We donated $1 million in cash and in-kind contributions.
“With innovation as the driving force, Me to We is redefining how to do business, with big ideas that push the boundaries of social entrepreneurship. As a social enterprise, Me to We is a revenuegenerating business with a twist. We measure our bottom line by the number of lives we change. We calculate our return on investment by our social and environmental impacts.” —Me to We annual report, 2010
as magnets, clothing and posters at a profit then donates the proceeds to its nonprofit “allies,” which include Room to Read and the San Francisco SPCA. One of its objectives is to forge long-term relationships that include collaborative projects. Since it was founded in 2008, Breadpig has raised and donated more than $186,000.
breadpig.com
• Breadpig: This organization sells products such
30
RIPPING A PAGE FROM THE FOR-PROFIT PLAYBOOK
• Acumen Fund: Acumen provides loans or equity—but not grants—that typically range from $300,000 to $2.5 million, describing this funding as “patient capital.” To be eligible for support, organizations must provide low-income consumers with access to water, health care, housing, agricultural inputs or alternative energy. In 2007, for example, Acumen invested in Jamii Bora, a Kenyan microfinance organization that supported the construction of 750 low-income homes outside Nairobi; the organization repaid in full by 2010.
acumenfund.org
Venture philanthropy funds: These nonprofits are like venture capital organizations—they provide seed money to nascent businesses—except they invest exclusively in socially responsible enterprises. Once a company has developed, it must repay this investment, but interest rates are low; all returns from investments are directed back into the fund.
• International Finance Corporation: Part of the World Bank Group, the IFC supports sustainable economic growth in emerging markets by providing private-sector investment and advisory services. The organization will support only projects that, among other things, have good prospects of being profitable, benefit the local economy and are socially and environmentally sound. In fiscal year 2010, the IFC committed $18 billion to 528 projects across the globe. Average returns on assets and capital ranged from around 3% to 10%.
SIGNIFICANCE/RELEVANCE Nonprofits and other socially focused efforts will need more than good intentions to stay viable as supporters seek measurable change. Indeed, with the rise of social enterprises such as Me to We and Breadpig, we’ll see a more openminded attitude toward the means that organizations use to achieve their ends, as long as that means real-world impact.
POTENTIAL We’ll see more partnerships and collaborations between for- and nonprofits, allowing charities to leverage considerable resources. Organizations can even outsource the implementation of a project while handling the rest of the responsibilities. ColaLife, for example, turned to Coca-Cola to help in its mission to deliver hydration packs to impoverished communities in developing countries, since the company has one of the world’s most advanced distribution networks. ColaLife manufactures the packs and prepares them for shipping, while Coca-Cola aids the cause by providing access to its distribution network; the scheme is being tested in Zambia. Such relationships offer benefits to both parties: Brands can earn CSR points (at a relatively low cost, in some cases), while nonprofits become more efficient and effective.
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THE GLOBAL DO-GOOD GENERATION Millennials strive to be active and engaged in their world. A globally minded cohort, they’re already taking on today’s biggest issues, tackling them with an entrepreneurial mind-set, a “we vs. me” mentality, a belief in large-scale collaboration and an optimistic, can-do spirit.
“For the generation coming up now, there is a much stronger optimism and a much bigger desire to do well while also doing good.” —ALEXIS OHANIAN, co-founder of Reddit and founder of Breadpig, a U.S.-based social enterprise that sells geeky products and donates the profits to nonprofit organizations.
This generation—born between 1978 and 2000—is uniquely motivated to make a difference: They want to improve society but without compromising personal aspirations; do good, the thinking goes, and the personal benefits will follow. And as so-called digital natives, they’re uniquely equipped to make a difference: They have the tech savvy to create innovative solutions and to organize on a scale never before possible. And then there’s the sheer size of this generation: some 78 million individuals in the U.S. alone. Another key factor is that they’re the first “global generation,” with more overlapping values and shared experiences than any before them, thanks to globalization and the communication technology revolution. They are more likely than their elders to identify with and embrace people and cultures beyond their own borders.
This global do-good generation is quickly shifting attitudes and approaches to activism. Take organizations like U.S.-based DoSomething.org, which has nearly 2 million people under age 25 participating, or Causes.com, co-founded by a Millennial (Sean Parker of Napster and Facebook fame), which is the world’s largest platform for activism and philanthropy.
Causes.com
Technology enables young people to swap ideas, connect with like-minded individuals across borders and organize events. And social media helps to push social causes into the mainstream of Millennial consciousness: “Liking” a cause on Facebook or tweeting about injustice helps define who you are and what you believe in. (Although the verdict is still out as to whether this “activism-light” translates into any meaningful real-world change.) There are even social networks based around the idea of social good, like TakingITGlobal, which has more than 340,000 members working in nonprofits worldwide, and KooDooZ.com, a kids network. Nearly nine in 10 Millennials we surveyed acknowledged that they have the communication tools to make a huge difference in the world.
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THE GLOBAL DO-GOOD GENERATION And then there are the masses shaking up their leaders, often with the help of social media: The Arab Spring of 2011 was aided in large part by Millennials organizing via Facebook and other social networking sites. In Spain, tens of thousands of youth activists—termed “the indignant”—marched to protest austerity measures and other issues. And a massive social protest in Israel over the summer started with a Facebook post by a 25-yearold filmmaker. Marketers can tap into this spirit by creating movements around their CSR efforts and calling on Millennials for ideas. Brands and philanthropic organizations should enable these hands-on consumers to show passion for and engagement with the relevant cause or campaign. This means giving up a certain measure of control, letting local groups organize and create excitement, or outsourcing tasks. Empower Millennials with tools for involvement in a cause, helping them to spread their engagement by incentivizing social media posts.
“[Doing good] has become part of the Millennial DNA, and this generation is the driving force behind social change initiatives. Smart brands have recognized this and have started to tap into the power of this generation and the power of social change mapped to their brand identity as an important part of their business model and profits.” —KRISTINE SHINE, vice president, PopSugar Media
In many cases, the Millennials in our research expressed more concern than their elders about the impact of their actions on the world and on future generations. (This goes for Millennials in the U.S. and U.K. more than those from Canada. See figures 4a and 4b for U.S. and U.K. generational breakdowns; see Appendix, figures 4c and 4d, for combined country and Canadian generational breakdowns.)
UNITED STATES
90% 80% 80%
Millennials
responsibility to make the world a better place for future generations.
Gen Xers Boomers
89 %
82% vs.
Millennials
AGREE
FEEL it’s their
76% vs.
Gen Xers
Boomers
I think about the impact my decisions and actions have on the world around me.
“
”
UNITED KINGDOM
89% 85% 71%
Millennials
BELIEVE there’s a need to balance out inequalities around the world.
Gen Xers Boomers
69%
54 % vs.
Millennials
55 % vs.
Gen Xers
Boomers
My generation is more community-minded and
AGREE “open to thinking and acting collectively on social causes compared to other generations.
”
CANADA
71% 63% 59%
Millennials
to a charity or cause is a way of showing people around them that they’re a caring person.
Gen Xers Boomers
81%
69% vs.
Millennials
AGREE
FEEL donating
70% vs.
Gen Xers
Boomers
wealthy country, we have a duty to “helpAs athose less fortunate in other countries. ”
33
THE GLOBAL DO-GOOD GENERATION
Figure 4A: THE GLOBAL DO-GOOD GENERATION (U.S.)
Figure 4B: THE GLOBAL DO-GOOD GENERATION (U.K.)
Percentage who agree with each of the following
Percentage who agree with each of the following
Millennials (18-33)
Gen X (34-46)
Boomers (47-66)
} } }
I think about the impact my decisions and actions have on the world around me
89% 82% 76%
I feel it’s my responsibility to make the world a better place for future generations
90% 80% 80% 84% 78% 71%
It’s important to me to leave a legacy of goodwill My generation is more community-minded and open to thinking and acting collectively on social causes compared to other generations
73% 69% 66%
There’s a need to balance out inequalities around the world As a wealthy country, we have a duty to help those less fortunate in other countries Donating to a charity or cause is a way of showing people around me that I’m a caring person
}
66% 62% 56%
62% 60% 58%
}
69% 68% 51%
}
69%
60%
}
82%
I think about the impact my decisions and actions have on the world around me
83%
I feel it’s my responsibility to make the world a better place for future generations
78%
61%
63%
Millennials (18-33)
Gen X (34-46)
Boomers (47-66)
78% 76% 67%
81% 82% 70% 77% 70%
It’s important to me to leave a legacy of goodwill 54% My generation is more community-minded and open to thinking and acting collectively on social causes compared to other generations
69% 54% 55%
Donating to a charity or cause is a way of showing people around me that I’m a caring person
}
54% 71% 66% 56%
78%
59%
71% 77% 70%
74%
67%
89% 85%
There’s a need to balance out inequalities around the world As a wealthy country, we have a duty to help those less fortunate in other countries
} } }
} }
}
82%
67%
64%
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THINGS TO WATCH
THINGS TO WATCH Gaming for Social Good Philanthropic organizations are increasingly using gaming mechanics as a way to engage people in a cause and build communities of like-minded supporters. This is a manifestation of one of our 10 Trends for 2011, All the World’s a Game.
mechanism 4 in 10 “isAa rewards-based good way to get people SAY
involved in a cause.
”
Game-based schemes offer an inventive way to drive donations and improve long-term commitment to a cause, making participation more interactive and rewarding. For Yao-Hui Huang, CEO of Win4Causes—a platform set to launch this fall that helps nonprofits raise funds through auctions—the most integral element is the prospect of winning, which she says drives people to donate: “It’s making something fun, making it an experience. All that really is, if you want to boil it down, is applying emotion to an action.” For example: Tearfund: This platform, which provides financial and developmental support to impoverished communities in the developing world, is developing a game-based smartphone app in an attempt to engage more young people. The platform will reward supporters for their involvement and allow them to share this with other users via social networking tools. The aim is to make engaging with the U.K.-based charity more interesting and enjoyable, and help build long-lasting relationships with supporters. Gamification also enables people to view their standing in real time and compare this with peers’. In broadcasting their behaviors online, people are consciously or unconsciously engaging in social one-upmanship—“I’m more witty, worldly, in-the-know, on-the-go, etc., than you.” This is particularly the case with the hyper-social Millennials: According to a survey we conducted in October 2010, 56% of Millennial respondents in the U.S. and U.K. said they often compare their activities, purchases, habits or behaviors with those in their social circle, and nearly half said they often try to one-up those in their social circle. When asked about philanthropy in our July 2011 survey, three in 10 Millennials agreed that nonprofits could get more people involved by adding a layer of competition, almost double the proportion of Boomers who agreed. To target today’s increasingly connected and competitive consumers, nonprofits are introducing leader boards and scoring systems and integrating them with the social graph. For example: AOK: Founded in early 2011, AOK is a platform that aims to increase acts and observations of kindness through competitive elements such as scoring systems, leader boards and real-world rewards. Every time participants perform a good deed (anything from lending a car to a friend to donating old clothes), they create a log of it using their smartphone and upload it to AOK with pictures and descriptions. To challenge users to check on each other, players also get points for observing and reporting acts of kindness. AOK converts points into real-world donations to charities, and players have chances to win brand-sponsored prizes along the way. Users have a tally that updates in real time, and they’re encouraged to compare it with others. (cont’d. on next page)
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THINGS TO WATCH
THINGS TO WATCH (cont’d.)
“People really like that their efforts are getting rewarded instantly, so what we are hoping to do is provide people with an incentive in the form of gaming that literally translates into an impact immediately.” —IRA LISS, CEO, AOK
Playtogive: This enterprise provides nonprofits with a platform to create online games. Players can highlight in-game accomplishments and solicit sponsorship from friends. The website displays individuals’ scores and allows them to share these with their social graph. Players who garner the most donations or sponsors are nominated as “All Stars” and ranked on the site’s “Champions” page. Another approach is to use social games to boost awareness of issues or foster cause-centric communities. Evoke, for instance, is a “social network game” developed by the World Bank Institute in which players collaborate to conceive creative solutions to problems such as hunger and poverty. For brands, there is potential to tailor messaging to players engaged with relevant social issues. For example:
dailyfeats.com/partner/mtv
DailyFeats: Another points-based system for social good, Web-based DailyFeats partners with brands to offer coupons and other incentives to participants (currently, more than 129,000 local discounts and rewards are available in North America). As with AOK, participants can tag or categorize their “feats,” then upload them to the DailyFeats social graph. Marketers can create promotions tailored to specific actions. For example, in August, as part of an antibullying campaign, MTV encouraged people to be more inclusive and supportive by offering points for anti-bullying actions (such as standing up to bullies); the more points players accumulated, the closer they came to wining prizes, such as an invitation to MTV’s Video Music Awards. My Conservation Park: Created by Good World Games, a game development company that aims to change the world through games, this Facebook game has eco-conscious participants playing virtual managers of a wildlife reserve. Good World Games donates a percentage of revenue from in-game purchases to conservation efforts. Conspiracy for Good: Nokia sponsored this real-life game that incorporated the company’s augmented reality software in partnership with the organization Room to Read, which tackles illiteracy in Africa and Asia. As part of the game, conducted in spring 2010, participants played activists and supporters of a secret organization called Conspiracy for Good, completing tasks using Nokia smartphones and other devices. (cont’d. on next page)
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THINGS TO WATCH
THINGS TO WATCH (cont’d.) Nokia reported more than 900,000 worldwide downloads of the game’s app and a community of more than 4,000 dedicated users. At the culmination of the game, five libraries were established in Zambia and 50 girls were provided with one year of schooling. Gamification can increase loyalty and engagement, drive or change behavior or habits, push people to exercise influence over their peers and/or get them to consider donating something, doing something or going somewhere for the first time. And for nonprofits, the instant gratification helps address the issue of donors becoming disheartened when their support doesn’t result in quick change. We’ll see more organizations encouraging rivalry or a competitive spirit to motivate involvement, or adding a sense of play or fun into philanthropy. Small-scale philanthropy will become more social as supporters invite friends to play along. However, competition to reach today’s gamers is stiff, since they have a wide array of compelling options. Nonprofits seeking to fully leverage this budding trend will have to come up with compelling challenges that can compete against today’s blockbuster games, perhaps even leveraging the weight of gaming heavyweights such as Zynga or EA Games.
Beyond Slacktivism: Incentivizing Online Engagement
This fall, U.S.-based retailer Macy’s is currently donating $1 to DoSomething.org each time a customer scans an instore QR code within Macy’s mstylelab, the retailer’s teen clothing department. Doing so points users to video featuring Kelly Osbourne encouraging viewers to learn more about volunteer opportunities with DoSomething.org.
DoSomething.org
To get people connected to a cause, various brands and organizations have relied on basic one-off social media tactics to amass fans—take Levi’s recent campaign to support Water.org, in which the retailer pledged a donation to provide clean water for 8,000 people once 100,000 Facebookers clicked a “Pledge to support” button on Facebook. But prompting any more meaningful action among the digitally distracted is a challenge. Now some brands are upping the ante by making donations in exchange for deeper engagement with a cause—watching videos, reading articles, emails and so on, donating small amounts or calling on their virtual networks to spread awareness.
To raise funds for after-school activities, JCPenney is challenging consumers to donate $1 million in pennies by matching this amount if the goal is reached, as part of its “Pennies From Heaven” campaign. Participants can donate either by rounding up the total of real-world purchases or by earning virtual pennies by engaging with the (cont’d. on next page)
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THINGS TO WATCH
THINGS TO WATCH (cont’d.) campaign site. Interacting directly with the retailer online—joining a mailing list, reading campaign emails, logging into the site, watching cause-related videos, etc.—earns participants virtual pennies. Users can also engage their social network (and rack up more virtual pennies) by sending a virtual “lucky penny” via Facebook. Since the campaign launched in July, players have raised more than 14 million real and virtual pennies. As part of the Great American Condom Campaign, which encourages safer sex among American youth, Trojan promises to donate condoms to people at high risk of sexually transmitted diseases and unintended pregnancy if visitors engage with the content on trojanvideos.com. Trojan donates one condom each time someone opts in for offers or posts a comment on the site and two condoms for users who go the extra mile (embedding a video, rating a video, completing a sexual IQ quiz and so on). Trojan is now more than halfway to its goal of donating 1 million condoms. While many have criticized social media activism as a minimalist form of engagement (slacktivism, anyone?), the next level of engagement can be fostered among those with a greater degree of interest in the cause. Brands can incentivize the more passionate cause-minded people to do some heavier lifting than the average online activist—things they might be doing anyway, but now on the brand’s behalf. By targeting this group, brands are more likely to encourage others to get involved.
Donation Channel Innovation Technology is having a tremendous impact on the way consumers donate to organizations and social causes. Additionally, traditional cash donation campaigns are innovating to better engage donors.
Mobile As the mobile phone evolves into an Everything Hub, it is making a profound impact on the ways people give, streamlining the steps between charitable impulse and actual donation.
justgiving.com
SMS donations: Back in 2004, following the Asian tsunami, U.S. mobile users generated $200,000 through text-based donations. In the seven years since, this channel has become mainstream, with the Red Cross pulling in $4.5 million from text donations in response to the earthquake and tsunami in Japan. Last May, Vodafone U.K. and online donation platform JustGiving launched a program that allows smaller nonprofits to set up text-based donation campaigns for free. In less than two months, more than 8,000 charities had signed up for the service. QR code donations: Smart nonprofits and brands are taking advantage of QR codes to encourage donations— for example, Macy’s partnership with DoSomething.org (see page 37 for details). In pedestrian-heavy New York, the local nonprofit City Harvest places QR codes on phone booth and bus shelter billboards. The code brings
(cont’d. on next page)
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THINGS TO WATCH
THINGS TO WATCH (cont’d.) interested passersby to a simple page featuring videos explaining “how City Harvest helps feed hungry New Yorkers” and other aspects of their work, with links to donate online or over the phone.
blog.ovi.ocm
Donation apps: In-app donations remove the extra layer of going to a website. In the wake of the earthquake and tsunami in Japan, SoftBank created an app to help collect funds for disaster relief. And late last year, Oxfam International partnered with Nokia on “Oxfam Donate,” an app that spotlights the charity’s work on five projects around the world, with progress reports and fundraising levels, and an easy way to donate directly to any of them. In some markets however, such as the U.S. and U.K., Apple bans donation apps for iPhones.
Contactless payments
newsroom.barclays.com
These can be made via phone (usually using NFC technology, which allows for wireless communication between devices that support it) or cards, which typically use RFID chips. Juniper Research estimates that, by 2014, one in six mobile users worldwide will have NFC-enabled phones. The ability to make contactless payments means an ability to make on-the-go donations. As the notion of cashless societies grows closer to reality, we’ll see innovative ideas that allow people to make quick electronic donations on the street (last year Barclays promoted its contactless technology in London with a street performer who accepted only card-based donations for Help a London Child on a specially designed guitar) or even underground (also in London, a student project proposed a dedicated gate at tube stations where commuters swiping their contactless Oyster cards would add a penny for charity).
TV donations Nonprofits are turning Internet-enabled televisions into a channel for giving. In May, Dish Network—a satellite service in the U.S.—launched on-demand channels such as “Donate Storm Relief” and “Donate to Japan Here,” allowing viewers with Web-connected TVs to contribute by clicking a remote-control button. After following onscreen instructions, customers can add a $5 donation to their monthly bill. A similar technology has existed in the U.K. for over a decade. Certain channels allow viewers to press a button to activate interactive services, opening the door to TV-based donations. In 2009, for instance, the BBC’s annual “Children in Need” campaign collected more than £318,000 in four days from viewers who used their credit cards via an interactive app. While customers currently need an Internet connection to make donations, expect this kind of mechanism to become more popular as 4G and other untethered technologies help to drive set-top-based giving. (cont’d. on next page)
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THINGS TO WATCH
THINGS TO WATCH (cont’d.)
ATM donations This convenient method of giving, already a familiar practice in places including Mexico and Colombia, is expanding to more markets. In May, U.K. banks and the LINK network reached a decision that will allow holders of LINK-enabled bank cards to make donations via ATMs—officials hope the practice will take root when the feature is implemented in 2012. The potential for raising significant sums is great, as evidenced by Wells Fargo, which collected more than $1 million in 10 days for the American Red Cross relief effort in Japan after adding an ATM donation option last March. This was the first time an American bank had offered the feature nationally.
Cruz Roja Mexicana, “Your Help Can Keep Us Going”: Often people feel as though their small donations won’t make much of a difference, so they don’t give at all. The 2010 national fundraising drive for Cruz Roja Mexicana (the Mexican Red Cross) demonstrated that each coin can make a difference while providing the donor with a fun experience. Coinoperated kiddie rides, shaped like ambulances, helicopters and boats, each featuring the Red Cross logo, served as collection boxes. Placed in public areas such as parks, stores and malls across Mexico, the rides were accessible to a broad spectrum of people. Parents who put money in the machines were able to give their child a ride, make a donation and let their child play at being a hero.
jwt.com
New Ways to Collect Coins
The campaign, from JWT Mexico City, helped increase donations to Cruz Roja Mexicana by 23% in 2010, despite the deep recession that year, and won silver and bronze Lions at the Cannes Lions festival. In 2011, a new iteration, “Your Coin Saves Lives,” involved coin-operated claw machines that allowed people to “rescue” a doll inside from various catastrophes. Donations increased 7.5% over 2010, and people learned that even their small donations could make an impact.
jwt.com
UNICEF, “Change for Haiti”: In 2010, Unicef was focused on raising awareness and funds to help rebuild Haiti after its devastating earthquake; one big issue facing Haitians was the scarcity of clean water. Unicef believed the reason people often fail to donate is that they just don’t get around to it—donating is too involved and time-consuming. So in Spain, JWT Madrid created an almost effortless way to give, labeling one button on vending machines “Agua para Haiti” (Water for Haiti). People could press it to donate their change in a quick and direct way, helping to provide Haitians with water as they were purchasing their own beverage. Within the campaign’s first week, one in three vending customers was donating their change and the campaign has since inspired imitations all over the world.
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CASE STUDIES
CASE STUDIES
We scanned the globe for innovative efforts—from JWT and beyond—that focus on promoting
social change.
To spread the word about Fair Trade, earlier this year Ben & Jerry’s ice cream, which has been championing fair trade ingredients since 2005, decided to leverage unused characters in tweets— those that fall short of 140 characters. “Just like putting together good combinations for our flavors, our goal was to combine a popular social media tool with our effort to educate about Fair Trade,” the Unilever brand explained. Initially, the browser extension allowed people to donate unused Twitter characters to spread the message about World Fair Trade Day on May 14. Subsequently, Fair Tweets is being used more generally to enhance awareness, with messages linking to an article about the Fair Trade movement. Fair Tweets are available for any amount of leftover characters. So far, more than half a million characters have been donated.
Brandaid Project
brandaidproject.com
It is estimated that artisan communities in the developing world receive only 2-8% of the retail value of their work, and the statistics for other sectors of the handmade economy are similar. The Brandaid Project works to shift this imbalance, applying modern marketing and branding to help artisan communities increase their revenue, retain profits and effectively access a multibillion-dollar market. Working with advertising and design agencies, Brandaid helps artisans create brand and marketing assets, codesigns unique collections and helps generate sustainable retail sales at substantially better pricing. Brandaid Project was piloted in Haiti in 2009 with the launch of two micro-enterprise brands and collections. Croix-des-Bouquets and Carnival Jakmèl were showcased at high-profile media events in Los Angeles and New York in partnership with Vanity Fair magazine and the endorsement of celebrities such as Diane Lane and Diane von Furstenberg. After the earthquake in Haiti, Brandaid brokered a deal with Macy’s to carry a line of Haitian home decor products under the “Heart of Haiti” brand. Currently, with the support of the Canadian government, Brandaid is developing brand and launch programs for nine artisan small businesses as part of Haiti’s economic recovery plan.
takecaretakecharge.in
fairtweets.com
Ben & Jerry’s, Fair Tweets
Garnier and The Times of India, Take Care, Take Charge Indians are waking up to the reality of climate change, partly because of media exposure but mostly because they’re seeing its impact firsthand. As a result, a small but growing population (mainly youth) are motivated to do their bit for the planet, be it reducing their carbon footprint or starting green groups in schools and colleges. In 2010, Garnier, the mass-market brand of L’Oréal, joined hands with India’s leading English daily, The Times of India, to promote green ideas among Indian youth. The Take Care, Take Charge initiative, which kicked off on April 22 (World Earth Day), sought to build a greenhouse of ideas for a greener planet. For every idea received, Garnier and The Times of India bought 10 kilograms of used paper. On June 5 (World Environment Day), the campaign culminated with an entirely recycled special edition of The Times of India. The winning ideas were shared with organizations aligned to the campaign and recommended to government bodies for further development.
Brandaid’s ultimate vision is of a multicountry, multiyear program to launch hundreds of micro-brands and showcase products and cultural narratives from dozens of developing nations.
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CASE STUDIES
CASE STUDIES
(cont’d.)
Miracle Whip, Miracle Machine
facebook.com/WhippingUpMiracles
“We can do amazing things when we all pitch in!” says the Facebook page for Miracle Machine, a Philippines-based initiative from Kraft’s Miracle Whip, working with JWT Manila. The project, which fits into a trend we’ve termed Collective Consciousness (the idea that people are thinking less about “me” and more about what “we” can do collectively), was launched on Facebook in December 2010. The aim is to use the social network to make “miracles” happen, with participants spreading the word among their networks about specific needs and hoping someone might have the resources to help. The project was initially launched with the goal of making 12 listed “miracles” happen in 12 days. Participants who felt they were able to help could sign up to be “miracle workers” through Facebook, select a case, then explain on the wall how they could pitch in. The first “miracle” achieved involved granting the wish of a sick child who wanted to meet a pilot. Others included collecting books for a group that helps stock libraries in public schools and organizing a potluck party for kids at a charity home. The long-term goal is to evolve into “a platform where people can come together online and combine resources to make miracles happen for the less fortunate.”
For-profit chains, nonprofit stores
In August, U.S. luxury department store chain Nordstrom opened a New York City concept store dubbed Treasure & Bond where 100% of proceeds go to local charities focused on children. Inventory is perhaps a bit funkier than the merchandise sold at Nordstrom and runs the price gamut—jewelry and designer clothing carry lofty price tags, while some housewares are under $20—allowing a range of customers an opportunity to help New York kids in a unique way.
twitpic.com/67866e
Two distinct retail chains are pioneering an innovative idea in corporate social responsibility, tweaking their normal retail operations into nonprofit endeavors that leverage what the companies do best to benefit community organizations. Customers take part by simply consuming as normal.
Meanwhile, patrons of Panera Cares restaurants enter an alternate universe in which they choose what to pay for their food, with profits going to charity. While the restaurants look and feel like the other Panera sandwich outlets, they include a donation box by the register and suggested rather than fixed prices.
puroticorico
Panera Bread Company created its first such restaurant in May 2010 in its hometown of St. Louis and now operates two more branches, with plans to launch about four more a year. “We were doing this for ourselves to see if we could make a difference with our own hands, not just write a check, but really make a contribution to the community in a real, substantive way,” said Panera’s founder and executive chairman, Ronald Shaich. The restaurants are funded by Panera’s charitable foundation, and the proceeds go to a job-training and life-skills program for youths who would otherwise have trouble finding and maintaining jobs. While it’s easy to abuse the paywhat-you-want system, Panera Cares patrons have proved conscientious: Panera says that 20% actually pay more than the suggested price, and another 60% donate the suggested amount.
With today’s consumers expecting brands to become more responsible for the well-being of the communities in which they do business, watch for the nonprofit store to gain wider adoption.
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CASE STUDIES
CASE STUDIES
(cont’d.)
tide.com
Human Rights Watch, petition to free Burma’s political prisoners, “Behind Bars in Burma”
Days after a deadly tornado hit Joplin, Mo., in May 2011, Procter & Gamble set up a Tide Loads of Hope mobile laundry service in an empty Walmart parking lot. The service processed 764 loads of laundry in its first day, the most since the disasterresponse program started in 2005, after Hurricane Katrina hit New Orleans. Catering to victims whose clothes are left wet and dirty, the service washes and folds clothes free of charge. The Loads of Hope truck contains 32 energy-efficient washers and dryers, and about 10 staffers, as well as local help, do the laundry, processing an average of 300 loads a day. Tide also leases local laundromats to provide additional free washing and folding services. “Tide has cleaned clothes for Americans every day for the last 65 years, and this is so core to our purpose as a brand,” says Mandy Treeby, external relations manager for Tide and director of the program.
jwt.com
Tide, Loads of Hope
As part of Human Rights Watch’s “Behind Bars in Burma” campaign to release 2,100 political prisoners, an interactive installation was built in New York’s Grand Central Terminal in June 2010. Small images of prisoners were projected behind what looked like real-life bars but were actually pens—passersby could remove these (symbolizing the freeing of a prisoner) and then sign a petition. Thousands of people, from 86 countries, participated. The installation raised awareness and attracted media attention around the world. The experience was replicated in an interactive way online so more people could participate. The campaign was created by JWT New York, which won six international awards for the effort. Human Rights Watch sent the petition book to the United Nations secretary-general and leaders of countries with close ties with Burma. While Burma continues to repress freedoms, more than 150 political prisoners have been released since the campaign, including opposition leader Aung San Suu Kyi.
youtube.com/ToyotaUSA
Toyota, Ideas for Good This initiative, launched in November 2010, asked people to submit ideas on how Toyota’s technologies could be repurposed to effect positive change. Proposals could fit into one of five technology categories, such as the Total Human Model for Safety and Advanced Parking Guidance System. Over a four-month period, Toyota received more than 4,000 submissions. These were reviewed by independent judges and then voted on by the public at an “Ideas for Good” website. Winning ideas included taking advantage of Toyota’s injury-simulation software to build a better bike helmet and using the cameras and ultrasonic sensors of Toyota’s advanced parking guidance system to create an extension ladder for firefighters with accurate positioning for roofs and buildings. The winners in each category received a Toyota vehicle (they had their choice among three models) and were invited to a prototyping session, held in partnership with Carnegie Mellon University. Students and faculty at Carnegie Mellon continue to work on the prototypes, thanks to a $100,000 donation from Toyota.
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APPENDIX
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APPENDIX LEARN MORE ABOUT OUR EXPERTS/INFLUENCERS
DAVID BELT, executive director and founder, Macro Sea
David Belt
Belt, executive director and founder of Macro Sea, has become increasingly interested in transforming junk spaces and objects into fully utilized places of recreation and culture. He conceives and formulates each project’s concept and vision, and oversees design and implementation. The first project from the New York-based firm, whose ventures combine elements of art, environmentalism and urban renewal, involved converting dumpsters into mobile swimming pools. This evolved into a more recent endeavor: the Mobile Pool project in New York City, where dumpsters-turnedpools, flanked by decks, were set up on Park Avenue as a sort of country club. Next up? A found object skate park in Detroit. NATHAN EAGLE, founder and CEO, txteagle Eagle’s research involves engineering computational tools, designed to explore how large-scale human behavioral data can be used for social good. MIT
As a research scientist at MIT and Fulbright professor in 2006, he launched MIT’s EPROM (Entrepreneurial Programming and Research on Mobiles) initiative, developing a mobile phone programming curriculum that has been adopted by 12 computer science departments across sub-Saharan Africa. Thousands of African computer science students have gone through his curriculum, leading to hundreds of mobile applications designed specifically for the African market, as well as a significant number of local startups. One such startup is txteagle, a company he formed in 2008 with the goal of enabling the 2 billion mobile phone subscribers living in the developing world to generate income using their phones. He holds a bachelor’s and two master’s degrees from Stanford University’s School of Engineering; his Ph.D. from the MIT Media Laboratory on Reality Mining was declared one of the “10 technologies most likely to change the way we live” by the MIT Technology Review. In 2008, Nokia named him as one of the world’s top mobile phone developers, and in 2009, he was elected to the TR35, a group of the top innovators under 35. His academic work has appeared in Science, Nature and PNAS; his research has been featured in The New York Times, The Wall Street Journal, Businessweek and CNN. He is a visiting assistant professor at MIT, a research assistant professor at Northeastern and an Omidyar Fellow at the Santa Fe Institute. VANESSA EDWARDS, head of corporate responsibility, WPP Edwards has held her current role at WPP for the past decade. She was instrumental in producing WPP’s first corporate responsibility report 10 years ago, which until last year was the only report of its kind produced by a marketing services company. Edwards is responsible for WPP’s entire corporate responsibility strategy across the areas of environmental, employment, social investment and marketing ethics. WPP employs 153,000 people across 2,400 offices, with 2010 revenues of $9.3 billion and billings of $42.6 billion. Prior to joining WPP, Edwards was head of public affairs for HSBC Investment Bank in London.
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TIM FAVERI, director, sustainability and responsibility, Tim Hortons, Inc. Faveri is responsible for cross-functional execution of this Canadian fast casual restaurant chain’s comprehensive sustainability and responsibility strategy, stakeholder engagement and corporate sustainability reporting.
KIM FINN, vice president and managing director, EthosJWT, Toronto EthosJWT is a specialized practice devoted to developing social strategies that can position organizations and brands as sources of trust, value and values. An expert in social branding and communications, corporate social responsibility, signature program development and nonprofit partnership development, Finn has worked extensively with not-for-profits, corporations, governments and institutions. She has developed strategies and campaigns focused on issues such as affordable housing, the environment, health care, education and international development for leading brands including Heart and Stroke Foundation, Microsoft, Walmart, Sick Kids and Habitat for Humanity.
STEVE LEWIS, CEO and co-founder, Living PlanIT Lewis previously served as general manager of market development at Microsoft and co-chair of the Microsoft Business Development Forum. He was primarily responsible for understanding key market trends and developments. Before joining Microsoft, Lewis worked in the finance and investment industry, focusing on areas including due diligence, mergers and acquisitions, and participated on the boards of numerous companies. He also served as general manager of the Lotus Messaging and Collaboration division of IBM Corp. Currently Lewis is an active member on several boards of commercial corporations, philanthropic foundations and government bodies. He relocated to Portugal to establish Living PlanIT’s operations in June 2008. IRA LISS, CEO and co-founder, AOK Liss co-founded and runs AOK, a “social game for social good” played online and in the real world that offers virtual and real rewards to players who capture, post and share acts and observations of kindness. He is also an entertainment consultant and responsible for strategic partnerships at The Golden Opportunity, a video community that empowers individuals to perform and share meaningful microacts aimed at achieving a personal or social goal. His experience includes packaging creative content, consulting with and building artists’ careers, and developing and selling digital media businesses, including the sale of the TV series Mad Men. CHARMIAN LOVE, chief executive, Volans Prior to joining Volans, a specialist consultancy and think tank business focused on social innovation, Love was a consultant with The Boston Consulting Group. Throughout her career she has worked on a range of projects focused on innovation, economic development, social entrepreneurship and social finance. Love is past chair of the Flavelle Foundation, an advisory board member of the Queen’s School of Business Centre for Responsible Leadership and a Fellowship Council member at the RSA. She holds a degree in art history from Queen’s University and an MBA from Harvard Business School.
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YAO-HUI HUANG, CEO, Win4Causes Huang is an entrepreneurial executive who works with businesses and startups in many industries with a focus on technology. She has started and run companies in the technology, digital media and venture space and is co-founder and managing director of The Hatchery, a venture collaboration organization with international reach that bridges the gap between entrepreneurs and investors through access, advisory, funding and building communities. She currently works with eight countries and their trade and investment agencies to help their tech companies launch in the U.S. Huang has a particular passion for helping entrepreneurs, women and social causes with projects in place to build global communities, push more women into executive positions, and fund causes in a scalable, recurring way with Win4Causes, a platform set to launch in fall 2011. WALKER MORRIS, Malawi country executive, Clinton Foundation Walker Morris has served since 2008 as the Malawi country executive of the Clinton Development Initiative, a program of the William J. Clinton Foundation focused on developing sustainable business solutions that help to alleviate rural poverty. He joined the Clinton Foundation in 2006, serving as director of business development for the Clinton-Hunter Development Initiative in Malawi and Rwanda. He also serves as private sector program manager of the foundation’s work in Haiti, where he is involved in recruiting international business investment and supporting increased international sourcing from Haitian producers. Prior to joining the Clinton Foundation, Morris worked in the broadcasting business. Since 1983 he has been president and primary shareholder of Muirfield Broadcasting, Inc., which operates radio stations in central North Carolina. Morris has a master’s in education from Duke University and a bachelor’s in English from the University of North Carolina at Chapel Hill.
ALEXIS OHANIAN, co-founder, Reddit; founder, Breadpig Ohanian describes himself as a “startup guy” who would “like to make the world suck less.” He cofounded Reddit after graduating from UVA in 2005. Breadpig is a U.S.-based nonprofit that sells sustainably developed products and donates the proceeds to nonprofit organizations. Ohanian also helped launched Hipmunk, a flight and hotel search site, serves as “ambassador to the East” for Y Combinator and is an angel investor at Das Kapital Capital. He makes regular TV appearances as a contributor for Bloomberg TV. MILTON PEDRAZA, CEO, Luxury Institute Through the use of proprietary surveying techniques with high-net-worth consumers, Pedraza has established the New York-based Luxury Institute as a ratings, research and luxury CRM consulting institution. Luxury goods and services firms, luxury professionals, high-net-worth consumers and the international press rely on the institute for its impartial ratings and best practices insights on how to better serve high-net-worth clients globally. Pedraza is a world-class expert CRM practitioner. Prior to founding the Luxury Institute, he served in finance, marketing,
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sales and senior management positions at Fortune 100 companies Altria, PepsiCo, Colgate, Citigroup and Wyndham Worldwide. In charge of CRM for a major division of Citigroup, Pedraza was assigned to run Citi’s first global CRM project and won a Global Marketing award for his results. At Cendant (now Wyndham), he was also assigned to run the company’s first CRM project in addition to running luxury segments. He has licensed his proprietary and continuously updated CRM methods, intellectual property and best practices to the Luxury Institute in order to serve the luxury industry and its consumers. An author and speaker, he frequently presents at conferences globally on the topics of financial services, travel and leisure, real estate and luxury. As an executive and private investor, he has conducted business in more than 90 countries and speaks several languages.
TONY PIGOTT, president and CEO, JWT Canada; global director, EthosJWT; co-founder, Brandaid Project As CEO of JWT Canada, Pigott launched JWT’s social change practice, EthosJWT, in 2002. It is the center of excellence for social strategy and communications for the agency globally. Corporate clients have included Walmart, Shell, Tim Hortons, Nestlé, Microsoft and HSBC; NGO and institutional clients have included Canadian Cancer Society, CARE, Participaction, Heart and Stroke Foundation and the University of Toronto. Pigott has also worked on global projects with UNESCO, leading a communication initiative between UNESCO and JWT Global that was presented at the World Summit on Sustainable Development in Johannesburg. More recently, the director general of UNESCO selected Pigott as a global adviser on the organization’s World Report on Cultural Diversity and Intercultural Dialogue, published in 2010. Pigott also has hands-on experience in social enterprise, co-founding Brandaid Project, which brings modern marketing, branding and market access to master artisan communities in least developed countries.
KRISTINE SHINE, vice president, PopSugar Media In her role at PopSugar Media, an online leader in original content and social media for Millennial women, Shine has been responsible for creating solutions for brands to engage and interact with this demographic. Shine looks at what resonates most with this generation and how brands can get these influential women to become their evangelists. She blogs about her thoughts on this demographic on Why Y Women: Marketing and Millenials and contributes to MediaPost’s Engage:GenY blog. Prior to joining Sugar, Shine was at Spotrunner, Microsoft and Businessweek.
48
APPENDIX
ADDITIONAL CHARTS FIGURE 1B: RISE OF CONSUMER CYNICISM AND EXPECTATION FOR TRANSPARENCY (U.S.) Percentage who agree with each of the following
Millennials (18-33)
Gen X (34-46)
I’m skeptical of brands that are aligned with charitable/social causes, their efforts seem somewhat halfhearted
Boomers (47-66)
56% 43% 52%
}
50%
I’m sometimes suspicious about how much of the money I donate actually goes to people in need, as opposed to management and administrative costs Brands that are aligned with charitable/social causes need to do a better job of telling me how my donation is benefiting the cause
89% 83% 81% 77% 73% 70% 68%
Brands and companies don’t disclose enough information about their charity/social cause programs I do background research to learn exactly how my funds are allocated before donating money to a charitable organization I wish there was an easier way to see the direct impact my time/monetary donations have
}
83% 82%
61% 71% 59%
} }
}
85%
80%
70%
63%
83% 84% 80%
}
82%
49
APPENDIX
FIGURE 1C: RISE OF CONSUMER CYNICISM AND EXPECTATION FOR TRANSPARENCY (U.K.) Percentage who agree with each of the following
Millennials (18-33)
Gen X (34-46)
Boomers (47-66)
I’m skeptical of brands that are aligned with charitable/social causes, their efforts seem somewhat halfhearted
51% 53% 62%
}
55%
I’m sometimes suspicious about how much of the money I donate actually goes to people in need, as opposed to management and administrative costs Brands that are aligned with charitable/social causes need to do a better job of telling me how my donation is benefiting the cause
90% 93% 90% 85% 84% 82% 72%
Brands and companies don’t disclose enough information about their charity/social cause programs I do background research to learn exactly how my funds are allocated before donating money to a charitable organization I wish there was an easier way to see the direct impact my time/monetary donations have
78% 76% 62% 48% 33%
}
}
}
}
91%
84%
75%
48%
89% 79% 77%
}
82%
50
APPENDIX
FIGURE 1D: RISE OF CONSUMER CYNICISM AND EXPECTATION FOR TRANSPARENCY (CAN) Percentage who agree with each of the following
Millennials (18-33)
Gen X (34-46)
I’m skeptical of brands that are aligned with charitable/social causes, their efforts seem somewhat halfhearted
Boomers (47-66)
52% 51% 50%
}
51%
I’m sometimes suspicious about how much of the money I donate actually goes to people in need, as opposed to management and administrative costs Brands that are aligned with charitable/social causes need to do a better job of telling me how my donation is benefiting the cause
81% 86% 96% 90% 88% 91% 70%
Brands and companies don’t disclose enough information about their charity/social cause programs I do background research to learn exactly how my funds are allocated before donating money to a charitable organization I wish there was an easier way to see the direct impact my time/monetary donations have
85% 89% 58% 61% 46%
}
} }
}
88%
90%
81%
55%
86% 89% 91%
}
89%
51
APPENDIX
FIGURE 2B: CONSUMER EXPECTATION FOR RESPONSIBLE BUSINESS (U.S.) Percentage who agree with each of the following
Millennials (18-33)
Gen X (34-46)
Brands and big corporations should take responsibility for improving the world
Companies need to do more good, not just less bad
Boomers (47-66)
83% 82% 81%
}
82% 79% 89%
I believe brands are capable of being both powerful/profitable and kind to the world at the same time
88% 82% 90%
82%
} }
83%
87%
FIGURE 2C: CONSUMER EXPECTATION FOR RESPONSIBLE BUSINESS (U.K.) Percentage who agree with each of the following
Millennials (18-33)
Gen X (34-46)
Brands and big corporations should take responsibility for improving the world
Companies need to do more good, not just less bad
Boomers (47-66)
87% 96% 87% 89% 92% 92%
I believe brands are capable of being both powerful/profitable and kind to the world at the same time
84% 92% 90%
} } }
90%
91%
89%
52
APPENDIX
FIGURE 2D: CONSUMER EXPECTATION FOR RESPONSIBLE BUSINESS (CAN) Percentage who agree with each of the following
Millennials (18-33)
Gen X (34-46)
Brands and big corporations should take responsibility for improving the world
Companies need to do more good, not just less bad
Boomers (47-66)
83% 89% 92%
}
94% 94% 96%
I believe brands are capable of being both powerful/profitable and kind to the world at the same time
92% 90% 98%
88%
} }
95%
93%
53
APPENDIX
FIGURE 3B: CONSUMER DESIRE FOR BRAND INVOLVEMENT IN LOCAL COMMUNITY (U.S.) Percentage who agree with each of the following
Millennials (18-33)
Gen X (34-46)
My local community is in need of a lot of care and the city government has been slow to act
Boomers (47-66)
65% 60% 62%
}
62%
It’s better to take local community projects into your own hands rather than waiting for big institutions or city government action
79%
Brands and large corporations have a responsibility to improve the local communities in which they do business
79% 74% 77%
I wish a brand or company would help by making substantial investments to improve my local community Members of my local community are willing and able to roll up their sleeves and work on projects that will improve our town; we just need the tools and leadership to do it
}
86% 80%
73% 72% 72%
}
}
82%
77%
72%
79% 84% 72%
}
78%
54
APPENDIX
FIGURE 3C: CONSUMER DESIRE FOR BRAND INVOLVEMENT IN LOCAL COMMUNITY (U.K.) Percentage who agree with each of the following
Millennials (18-33)
Gen X (34-46)
My local community is in need of a lot of care and the city government has been slow to act
Boomers (47-66)
75% 68% 64%
}
69%
It’s better to take local community projects into your own hands rather than waiting for big institutions or city government action
88% 80% 82%
Brands and large corporations have a responsibility to improve the local communities in which they do business
86% 89% 87%
I wish a brand or company would help by making substantial investments to improve my local community Members of my local community are willing and able to roll up their sleeves and work on projects that will improve our town; we just need the tools and leadership to do it
80% 84% 78% 78% 75% 66%
}
}
} }
83%
87%
81%
73%
55
APPENDIX
FIGURE 3D: CONSUMER DESIRE FOR BRAND INVOLVEMENT IN LOCAL COMMUNITY (CAN) Percentage who agree with each of the following
Millennials (18-33)
Gen X (34-46)
My local community is in need of a lot of care and the city government has been slow to act It’s better to take local community projects into your own hands rather than waiting for big institutions or city government action Brands and large corporations have a responsibility to improve the local communities in which they do business I wish a brand or company would help by making substantial investments to improve my local community Members of my local community are willing and able to roll up their sleeves and work on projects that will improve our town; we just need the tools and leadership to do it
Boomers (47-66)
65% 74% 76%
}
72%
77% 83% 86%
}
} } }
81% 87% 92% 77% 83% 90% 75% 81% 87%
82%
86%
82%
81%
56
APPENDIX
FIGURE 3E: CONSUMERS WANT THEIR VOICES HEARD IN LOCAL DECISION MAKING (U.S., U.K., CAN) Percentage who agree with each of the following
Millennials (18-33)
Gen X (34-46)
Boomers (47-66)
If brands and big corporations embark on projects to improve the local community, it is important they involve the locals in the planning and decision-making process Local government should let the people take a more active role in deciding how “junk space� (abandoned plots of land, parking lots, retail and office spaces, etc.) is used I wish there was an easier way for me to share ideas on how to improve my community with officials
I prefer to donate to charities where I can see the actual results (e.g., a new park being built in my town)
} }
85% 89% 93% 87% 88% 90% 76% 70% 62% 76% 74% 75%
} }
89%
88%
69%
75%
57
APPENDIX
FIGURE 3F: CONSUMERS WANT THEIR VOICES HEARD IN LOCAL DECISION MAKING (U.S.) Percentage who agree with each of the following
Millennials (18-33)
Gen X (34-46)
Boomers (47-66)
If brands and big corporations embark on projects to improve the local community, it is important they involve the locals in the planning and decision-making process Local government should let the people take a more active role in deciding how “junk space� (abandoned plots of land, parking lots, retail and office spaces, etc.) is used I wish there was an easier way for me to share ideas on how to improve my community with officials
I prefer to donate to charities where I can see the actual results (e.g., a new park being built in my town)
} }
81% 84% 86%
84%
88% 81% 83% 79% 64% 57%
} }
84%
67%
81% 77% 76%
78%
58
APPENDIX
FIGURE 3G: CONSUMERS WANT THEIR VOICES HEARD IN LOCAL DECISION MAKING (U.K.) Percentage who agree with each of the following
Millennials (18-33)
Gen X (34-46)
Boomers (47-66)
If brands and big corporations embark on projects to improve the local community, it is important they involve the locals in the planning and decision-making process Local government should let the people take a more active role in deciding how “junk space� (abandoned plots of land, parking lots, retail and office spaces, etc.) is used I wish there was an easier way for me to share ideas on how to improve my community with officials
I prefer to donate to charities where I can see the actual results (e.g., a new park being built in my town)
86% 93% 94% 91% 94% 91% 74% 76% 58%
}
80% 70% 69%
} }
91%
92%
69%
}
73%
59
APPENDIX
FIGURE 3H: CONSUMERS WANT THEIR VOICES HEARD IN LOCAL DECISION MAKING (CAN) Percentage who agree with each of the following
Millennials (18-33)
Gen X (34-46)
If brands and big corporations embark on projects to improve the local community, it is important they involve the locals in the planning and decision-making process Local government should let the people take a more active role in deciding how “junk space� (abandoned plots of land, parking lots, retail and office spaces, etc.) is used
Boomers (47-66)
} }
88% 90% 99% 83% 89% 95%
} }
I wish there was an easier way for me to share ideas on how to improve my community with officials
75% 70% 71%
I prefer to donate to charities where I can see the actual results (e.g., a new park being built in my town)
69% 76% 79%
92%
89%
72%
75%
60
APPENDIX
FIGURE 4C: THE GLOBAL DO-GOOD GENERATION (U.S., U.K., CAN) Percentage who agree with each of the following
Millennials (18-33)
Gen X (34-46)
Boomers (47-66)
73%
79% 77%
It’s important to me to leave a legacy of goodwill
67% 61% 61%
}
79%
63%
83% 79% 75%
There’s a need to balance out inequalities around the world
Donating to a charity or cause is a way of showing people around me that I’m a caring person
}
74%
66%
As a wealthy country, we have a duty to help those less fortunate in other countries
81%
78%
83% 82% 79%
I feel it’s my responsibility to make the world a better place for future generations
My generation is more communityminded and open to thinking and acting collectively on social causes compared to other generations
} } }
81% 82%
I think about the impact my decisions and actions have on the world around me
73% 66% 61% 71% 66% 56%
} }
67%
64%
61
APPENDIX
FIGURE 4D: THE GLOBAL DO-GOOD GENERATION (CAN) Percentage who agree with each of the following
Millennials (18-33)
Gen X (34-46)
Boomers (47-66)
87% 76% 77%
I feel it’s my responsibility to make the world a better place for future generations
85% 88% 76% 82% 76%
It’s important to me to leave a legacy of goodwill My generation is more communityminded and open to thinking and acting collectively on social causes compared to other generations
65% 65% 74%
Donating to a charity or cause is a way of showing people around me that I’m a caring person
}
}
81% 69% 70% 71% 63% 59%
}
80%
83%
78%
68%
86% 85% 90%
There’s a need to balance out inequalities around the world
As a wealthy country, we have a duty to help those less fortunate in other countries
} }
76%
I think about the impact my decisions and actions have on the world around me
}
}
87%
73%
64%
62
About JWT: JWT is the world’s best-known marketing communications brand. Headquartered in New York, JWT is a true global network with more than 200 offices in over 90 countries employing nearly 10,000 marketing professionals. JWT consistently ranks among the top agency networks in the world and continues its dominant presence in the industry by staying on the leading edge—from producing the first-ever TV commercial in 1939 to developing award-winning branded content for brands such as Smirnoff, Macy’s, Ford and HSBC. JWT’s pioneering spirit enables the agency to forge deep relationships with clients including Bayer, Bloomberg, Cadbury, Diageo, DTC, Ford, HSBC, Johnson & Johnson, Kellogg’s, Kimberly-Clark, Kraft, Nestlé, Nokia, Rolex, Royal Caribbean, Schick, Shell, Unilever, Vodafone and many others. JWT’s parent company is WPP (NASDAQ: WPPGY). About EthosJWT: We think there is an emerging marketplace: the Marketplace for Social Change. It is evident in the public’s concerns on issues from climate change to community. It is evident in the actions of leading corporations, governments, nonprofits and brands. This is why we started EthosJWT 10 years ago. EthosJWT is a nationally and globally recognized expert in helping organizations create breakthrough social strategies against a broad range of social contexts and stakeholder demands/needs. An integrated practice within JWT, EthosJWT helps our clients harness the power of brand strategy, ideas and activation for social good/social change. The goal is to make a true impact on the issues most relevant to our clients, their key audiences, and the communities in which they live, and in the process add new depth and meaning to the organization and its brand. EthosJWT provides a full range of strategic marketing, advertising and communications services utilizing talent of JWT including:
• Leading CSR/citizenship platforms/programs • Igniting social issues and causes • Animating/activating social movements • Unleashing brand/consumer power for social good/social change
SOCIAL GOOD 466 Lexington Avenue New York, NY 10017 www.jwt.com | @JWT Worldwide www.jwtintelligence.com | @JWTIntelligence www.anxietyindex.com | @AnxietyIndex
160 Bloor Street East Suite 800 Toronto, Ontario M4W3P7 www.ethosjwt.com
Lead writer and researcher Jessica Vaughn Co-writers
William Palley Sarah Siegel
Director of trendspotting
Ann M. Mack
Editor
Marian Berelowitz
Proofreader
Nick Ayala
Design
Paris Tempo Productions
JWTIntelligence contacts: Ann M. Mack 212-210-7378 ann.mack@jwt.com @annmmack Jessica Vaughn 212-210-8583 jessica.vaughn@jwt.com @jess_vaughn
EthosJWT contact: Tony Pigott President and CEO, JWT Canada Global Director, EthosJWT 416-926-7383 tony.pigott@jwt.com
(c) 2011 J. Walter Thompson Company. All Rights Reserved.