Wednesday, November 20, 2019
Earlier this month, I had the opportunity to speak with Andrew Mangan, co-founder and executive director of the United States Business Council for Sustainable Development (USBCSD). As a Global Network Partner of the World Business Council for Sustainable Development, USBCSD works to create and deliver value-driven sustainable development projects.
As Andrew explained to me, “the USBCSD is an action-oriented and member-led business association that gives U.S. businesses a platform to mobilize boots on the ground and work together to design, implement and scale sustainability solutions.”
The Council currently has four areas of focus:
· Facilitating company-to-company industrial reuse opportunities that support the culture shift to a circular, closed-loop economy
· Establishing regional cross-industry carbon reduction collaboratives aimed at reducing carbon emissions and impacts while preserving and enhancing economic vitality
· Creating replicable business solutions for improving watershed collaboration between stakeholders to reduce shared water risks
· Identifying and implementing member-led projects to conserve or enhance ecosystems while creating new business value and benefit to communities where they operate
In my discussion with Andrew, he shared how he has seen the sustainability field shift in the past 30 years, as well as what excites him the most about it today.
MK: At USBCSD, you are facilitating a culture shift among organizations toward a circular closed-loop economy. Where is the U.S. in this shift? What more is needed to accelerate the shift?
AM: Here in the U.S., there is a lot going on; it’s a major shift and will require a lot of understanding from within companies – not just by the sustainability team but also the procurement, legal, and acquisitions teams. They are needed to actually implement the shift.
It is going to take a while, but a lot of good things are happening already. I’m seeing support from the top – from CEOs – for the concept of circularity. Government is also intrigued by the concept – especially State-level government given that they are the ones tasked with implementing the Federal Waste Management Regulations and submitting 2030 Waste Strategies to the U.S. EPA. Also, none of the States want to permit another landfill, and some states are really struggling with limited landfill space. The Council has been working with three states – Ohio, Michigan and Tennessee – with their State Environmental Commissions and State Economic Development Corporations and the private sector to establish systems that promote circular economies. Together, we are looking at recycling infrastructure, government funding incentives, and whether current regulations are preventing desired outcomes.
MK: Many of the initiatives that USBCSD has incubated have been regional – not sector-specific – in scope. What is the value of this approach?
AM: We find this approach works really well because companies that are in a region feel ownership of that region, whether its’s the Gulf Coast, Great Lakes, or New England – we find there is a real affinity for collaboration. It’s also a lot easier to get a company focused on a sub region of the U.S. than on the whole country. A lot of our regional efforts are bringing together companies that have common objectives – whether on water, materials, or carbon – but that aren’t organized to work together in an effective way. An example is in the Gulf Coast where we are bringing together companies around decarbonization. They have done a lot internally but not across industries, which is key to moving ahead.
MK: During your time with USBCSD, how have you seen the field of sustainability change?
AM: In the late 1980s, people weren’t really sure what sustainability was … it took 10 to 15 years to get agreement on what the issues, challenges, and opportunities were. Then, the discussion shifted to what do we do about it. A lot has been done internally within companies, but now there is a growing recognition that you can’t do it on your own or even within an industry. There has been an evolution in external engagement and finding effective ways to bring in other sectors – including the academic sector – to solve major challenges.
MK: Is there a greater sense of urgency than in the past to tackle sustainability?
AM: A big change recently is seeing the investment community really stepping up – from communications to CEOs on carbon, the circular economy, and natural resources. They are telling CEOs that if they don’t see their companies moving on this, they will pull them out of their investments. That is accelerating and making it more urgent for companies.
MK: What in the work among your members excites you the most and why?
AM: The Gulf Coast Carbon Collaborative. We will be launching in New Orleans in early December. It will be business-led, business-organized and business-driven.
MK: What impact will the US’ decision to leave the Paris Agreement have on the efforts of U.S. companies?
AM: It’s disappointing to see the U.S. pull out of a global agreement. But, it’s not impacting what we are doing. Companies are moving ahead and are driven by other forces. There is still strong corporate commitment to the agreement.
Thursday, November 14, 2019
This week, I connected with Jennifer Evans, a principle at the CKP group, a woman-owned integrated communications firm in Houston – which, by the way, is a city I’m eager to visit given that everyone I speak with is so passionate about what a wonderful place it is!
As for Jenn, she has spent 25 years as a marketing and communications professional, during which time she has witnessed the shift in corporate social responsibility (CSR) from a “nice to have” to a “must have.” She also believes that Houstonians place a particular emphasis on community investment, which has been borne out by the number of Houston-based businesses consistently ranked on the Chronicle of Philanthropy’s annual Charity Navigator index.
She shares her insights here. Enjoy!
MK: How do you define CSR?
JE: At CKP, we define Corporate Social Responsibility as "an entity’s responsibility to operate in an ethical and sustainable way and be responsive to its community impact—whether the impact or potential impact be environmental, social or economic.” This is our collective leadership team worldview and it permeates every aspect of our business.
MK: How have you seen CSR change over the past two decades?
Today, smart companies have tenured professionals who lead all or most of these functions under one stand-alone umbrella and basically in service to the company and its many departments. Sure, there have always been global brands that were pacesetters for these changes, but regulations and public scrutiny have changed the rules of engagement.
MK: Who is driving the push for greater focus on social and environmental performance amongst your clients?
JE: In our work with clients, particularly those in heavily regulated industries like energy and manufacturing, we see priority and focus coming from all aspects of the internal organization. Mitigation and remediation certainly put pressure on businesses and more so in industries such as energy, health and bio-tech.
What we see in our brand management role with clients in multiple markets is a voracious appetite in the court of public opinion—which now plays in social media—for disclosure and pro-active communications. Consumers and customers in general—whether B2B or B2C—are going to be the loudest group and will ask questions sooner or later. Issues management strategy can help in managing activist groups. But if your potential or existing clients challenge you, be prepared to lose them to other brands if they don’t like what you say. That’s not to say that employees and investors don’t play key roles in managing your risks and being responsible. But when you remove or reduce the power of financial gain to win favor, we are all consumers and we vote with our feet.
Footnote: Gen Z, our youngest marketplace-viable generation, is unbelievably astute, and I expect their demands and expectations of accountability to have a stronger impact than Millennials. Social and political demographers continue to forecast that this next generation will have the rage of Gen Y, the tenacity of Gen X and the loyalty (and lack of forgiveness) of the Boomers. Their role as consumers will overshadow the rest. And their advocacy will make or break brands. Best be prepared.
MK: What advice do you have for creating successful partnerships?
JE: Regardless of whether you work for a global business or a single stand-alone shop, you should collaborate with partners that are open and willing to support you. I often see businesses make social investments that don't align with one or more of these groups' passions and engagement. This usually results in a one-time engagement and a failed relationship.
We recommend first doing the internal work to identify the values you want to promote, the social impact you may have and where, and the categories of nonprofits and public/private groups that make sense. Once you've got that strategy in place, it's much easier to research and identify potential partners.
Treat it like hiring an employee. Get to know each other and transparently discuss your challenges and concerns. Then, the magic happens. Real, vibrant partnerships develop and they are much bigger and better than a cookie cutter sponsorship package that a random organization asks you to fund.
MK: What is your advice for brands and businesses in industries that aren't heavily regulated? What's the ROI in being bold about your business position on CSR for such companies?
JE: CKP was founded in Houston, Texas, which consistently ranks at the top of the Chronicle of Philanthropy’s annual Charity Navigator index. I have lived in several large and small communities, and I’ve not seen the attention to which people doing business in Houston pay to how others invest in the community.
We work with large global brands and small start-ups, and the single thing all businesses have in common is the need for third-party endorsements. Whether a business produces cookies, renewable energy, marketing and public relations services (like CKP) or something else, savvy business leaders know that your close rate is higher and reputation is more protected when others with strong brand reputation back you. Our team at CKP counsels many clients in their sponsorship, CSR and partnership negotiations and communications.
In any household or business, we must budget to protect, care for and to give to the things that matter to us. Defining what matters early on and having it resonate with internal and external stakeholders is just good business. We’ve got some excellent case studies at CKP and the consumer marketplace at large too—from small emerging industry, locally owned, as well as reputation-challenged large businesses—that show how real partnerships and social investments benefit everyone.
Regulations are present in all industries, and stakeholders are a given no matter what kind of business you run. We frequently hear from clients that wish to begin organizing their reporting and messaging, in anticipation of public exposure and changing politics. Preparedness is key. Don’t wait to be called out to communicate your community impacts.
Thursday, November 7, 2019
It’s not every day you meet someone who turns away 80 percent of business that lands on her desk. But that is just what Melissa Orozco, founder of Vancouver-based Yulu Public Relations, does to ensure she stays true to her values and those of her company. Started in 2011, Yulu champions socially innovative organizations that are making a positive social and environmental impact.
Melissa is also a driving force behind the emerging field of
MK: First of all, can you explain why you called your firm Yulu? Is there a meaning behind this?
MO: Contrary to popular belief, Yulu is not an acronym. Yulu has Chinese origins, meaning “the journey of words.”
MK: You are very involved in the Impact Relations field. Can you share what this is and how you got involved?
MO: Yulu’s roots were with nonprofits and social enterprises, including the Vancouver Farmers Market and Fuck Cancer, from the start. While we recognized the public’s growing hunger to support brands that were built on transparency, positivity, solutions and authenticity, it was still a time when terms like “social impact” and “social innovation” were considered aspirational and bad for the bottom line. In 2014, this inspiration and hunger began to take on the undeniable shape of a new industry, a new way of doing PR. That was when we developed Impact Relations. One year later, we committed to a portfolio of 100 percent cause-based clients –- the same year we became the first PR agency in Canada to become a certified B Corporation and recognized by PR Daily as North America's Top PR Agency for Corporate Social Responsibility.
MK: As a communications professional, you help clients raise awareness of their positive impacts on society and the environment. However, there is always the risk of green washing, blue washing, etc. What is your approach and counsel when you suspect this may be happening with a client?
MO: Yulu has a strict client-vetting process, which results in us turning away about 80 percent of the new business opportunities that come in our door. One of the ways we establish authenticity from brands and companies that come to us to build a purpose-lead strategy is by ensuring we have access and complete buy-in from the leadership team. It is also important that while building out our strategy, we allow time for implementation throughout the company so that the strategy is not positioned or executed as a standalone PR initiative. Our process always begins with a deep-dive assessment where we explore how the company is already creating a positive impact within the communities that they serve. We follow this process by reviewing the issues that are impacting their target audience groups to determine how the brand or organization can add the greatest value and impact.
MK: Have you seen a shift or evolution in how your clients are approaching CSR or sustainability in recent few years?
MO: Consumer demand and customer behavior have absolutely influenced the organizational brand purpose movement. Companies are increasingly seeing that having an authentic social purpose and positive impact is not only a “nice to have” but it's a “need to have,” in order for them to stay relevant, competitive and engaging with their customers. You can find many examples of this on the Impact Relations website here.
MK: Do you notice a difference in approach by sector?
MO: Brands are implementing social and environmental strategies around the globe in response to the climate crisis that is affecting all nations and communities. When it comes to social justice issues that brands are tackling, strategies will vary significantly depending on the issues that are impacting the communities around them. For instance, in the U.S. you will see brands championing issues such as prison reform, gender equality, and racial justices, while other markets such as Canada may have a heavy focus on issues like indigenous rights and immigration reform. Of course, that’s not to say there isn’t cross-over of support from brands looking to solve issues that are universal in scope.
MK: Are companies taking a different approach given the particular urgency in addressing ESG issues?
MO: Climate change is at the top of the agenda for many organizations, more than ever. Through the UN’s Global Compact initiative, brands are rallying and collaborating to address climate action-related SDGs.
If there’s ever been a time to use our voice and communications to inspire and move people to action, it’s now. The good news is there is a groundswell of businesses using their expertise, resources and influence to positively impact social and environmental change. Realizing we can’t rely solely on government, nonprofits and NGOs to solve all of the issues impacting society and the environment, corporations are stepping up to play a critical role in building a more prosperous and regenerative economy. Global brands like Ben & Jerry’s, Tesla and Patagonia are among the thousands of companies placing “social” at the forefront of their enterprise – putting purpose alongside, or even ahead of, profit. Brands are collaborating with competitors more than ever for collective action to address global issues and improve industry standards. It’s no longer about philanthropy; it’s about creating systemic and meaningful change.
In terms of CR, what should corporate leaders do more of?
Lead with their values and be comfortable advocating for what’s right, not just what’s going to drive sales or satisfy investors.
\What should they do less of?
Don't wait on advocating for an important issue until other brands are leading the way – pave the way!
What CR trend will we continue to see more of in 2020?
Climate action and collective action.
What are two to three companies leading the way in integrating purpose with corporate strategy?
Name a corporate leader you admire.
Ben & Jerry's chief executive officer, Matthew McCarthy