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Understanding the forces of innovation that brought us to our present world condition helps us to understand the sustainable choices available for the future. A look at current corporate and consumer behavior and communication. Suggestions for the SME who wishes to authentically position his company as a sustainable business.
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What does sustainability
mean for you?
Ellen Pabst von Ohainwww.phoenix-english.com
Hi! My name is Ellen Pabst von Ohain.
I’m an International Communications Coach and Consultant and a Lecturer for sustainable and authentic business practices and marketing. I'm on the Board of Directors for a non- profit, worldwide youth organization.
I work with CEOs and management in the German Mittlestand (small business owners). My team and I analyze and pick out the golden nuggets of what these companies do best and examine how they conduct their business. Then we develop a marketing message. That message is particularly aimed at other businesses and consumers who have a measurable interest in sustainability. It is also designed to attract those consumers and businesses who are less aware of the issues and concepts of sustainability.
Why waste time trying to reach those who are less interested or informed?
Because when consumers are better informed they are able to make better choices. Then they look for those golden nuggets.
This deck was prepared for a presentation on May 18, 2014 about Sustainability Trends. The audience was German
businessmen and businesswomen.
For a full transcript and explanation of the slides,
please contact me.
4
WAVES OF INNOVATIONTraditionally: Asset based
Inaccurate Costing
What it means for you
LOHAS
A Coupla Questions
Free Golden Nuggets
1 2 3 4 5
How‘d we get here?
The Players
Redefining Key Words
The Triple Bottom Line
Where‘s it going?
What does this meanfor the future of Business?
The Purpose Economy
The Triple Bottom Line
CSR
Overview
A Coupla Scary New Concepts
123
Introducing the Purpose Economy or..
Capitalism 2.0
THE PLAYERS7
GovernmentCompaniesShareholdersSuppliersEmployeesHost countries: raw materialsEducational InstitutionsNGO/NPOsCommunity MembersConsumersMom (Natural Capital)
THE PLAYERS8
GovernmentCompaniesShareholdersSuppliersEmployeesHost countries: raw materialsEducational InstitutionsNGO/NPOsCommunity MembersConsumersMom (Natural Capital)
CompaniesShareholders
Consumers
04/07/2023
9http://shrinkthatfootprint.com/shrink-your-product-footprint
OR
Cradle to Grave
WASTE
04/07/2023
10http://shrinkthatfootprint.com/shrink-your-product-footprint
ReuseRecycleReduce
04/07/2023
11http://shrinkthatfootprint.com/shrink-your-product-footprint
ReuseRecycleReduce
Cradle to GraveCradle to CradleTRIPLE TOP LINE (RE)DESIGN
http://www.flickr.com/photos/denisdenis/7585813810
Scary new concept #1:
Calculating the true costs
13
TOO MANY CLASSIFICATIONS WITH TOO LITTLE INFO –
TOO CONFUSING
ORGANIZATIONS WORKING TO SIMPLIFY AND STREAMLINE: B CORP (USA)
14
THE SEALS OF APPROVAL
Consumer Recognition = 25% of adult population
http://www.flickr.com/photos/11013798@N05/4227355757/
Scary New Concept #2:
Products rated on the value, cost and benefit they bring to society as well as the individual.
Scary new concept # 3:
Value for the Shareholders shift to include the Stakeholders
Redefine and measure value
http://edition.cnn.com/2012/03/23/opinion/fear-failure-kelsey/
18http://www.youtube.com/watch?v=V-VFZUFJwt4http://www.bcorporation.net/
COMPANIES THAT GET B CORP CERTIFICATION ARE NOT REQUIRED TO FOCUS SOLELY ON PROFITS.
Ernst & Young Survey 2011
Shareholders Proposals
And Concerns Today
04/07/2023
20
CITIGROUP INC. 2014 Annual Meeting of ShareholdersTuesday, April 22, 2014
04/07/2023 21
PAY RATIOS
From 2006-2012, Ocean Tomo designed and managed an investment index that tracked public companies with a high intellectual property and intangible ratings. During this period, the index rose 7% even as the S&P 500 index declined.
Wharton School professor Alex Edmans compared the 1998-2010 financial performance of the S&P 500 index to companies in Fortune magazine’s annual list of Best 100 Companies to Work For. He found that if you had invested in the S&P index, you would have averaged an annual 4% return. If you had bought and held the 1998 list of Best 100 Companies, your average annual return would have exceeded 6%.
The Parnassus Workplace Fund invests in companies with good workplaces. Since its inception in 2005, its performance has roughly been double that of the S&P 500.
The socially responsible investment company HIP Investor has conducted research across a range of data, including women on the Board, ISO 9000 certification, and environmental performance. HIP’s overall finding: The more new metrics are measured and managed, the stronger and more resilient performance you can achieve – lower risk, enhanced return potential and competitive advantage.
Women-led tech companies achieve 35 percent higher return on investment, and, when venture-backed, bring in 12 percent more revenue than male-owned tech companies 17% of management and only 6% on Bd of Directors
CSR and the Sustainability Report
http://www.organicsoul.com/understanding-the-triple-bottom-line-its-shortcomings-and-the-solution/17
24
The Elephant (Authentic Sustainable Business
Practices) and the Blind Men
http://www.berteigconsulting.com/
26
90% of Australian consumers are highly sceptical of the health and
sustainability claims made by companies!
27
Companies are stating they are „green“.
Result: Consumers don‘t believe them!
Companies are trying to teach consumers about how products are
made. Result: Not many consumers care!
Why not?Mobium Group 2011-13 Australia
87% of North Americans say the #1 Sustainability issue is…
04/07/2023 28http://www.flickr.com/photos/39831157@N05/3696350373/in/photolist-6CCLbR-6Ez8zF-6EBP9c-6FLibU-6Hfuvi-6HjyqC-6Kiye6-6LiEW6-6MeMUP-6NNqSR-6Q7Tod-6Qpx1w-6Ronsz-6TaELy-6TYdxK-6UfXuL-6URAbM-6V4iuB-6V7Zcf-6W9FU1-6Wat41-6WgH8B-6X6pBN-6Z6mb3-6ZHk13-71snGy-72rcew-72Vp4N-73ougj-73YkmA-75oXtH-762n7Z-773u8e-77ofcR-77xbFX-78bZu3-78tQXh-78ZgNf-7b3KNb-7cdGnE-7cu74L-7cuLmC-7d5Ysk-7goJoR-7gs2Yq-7gBvSm-7ihDwR-7ijS4A-7iEknp-7jDRej-7kknme
87% of North Americans say the #1 Sustainability issue is…
04/07/2023 29http://www.flickr.com/photos/39831157@N05/3696350373/in/photolist-6CCLbR-6Ez8zF-6EBP9c-6FLibU-6Hfuvi-6HjyqC-6Kiye6-6LiEW6-6MeMUP-6NNqSR-6Q7Tod-6Qpx1w-6Ronsz-6TaELy-6TYdxK-6UfXuL-6URAbM-6V4iuB-6V7Zcf-6W9FU1-6Wat41-6WgH8B-6X6pBN-6Z6mb3-6ZHk13-71snGy-72rcew-72Vp4N-73ougj-73YkmA-75oXtH-762n7Z-773u8e-77ofcR-77xbFX-78bZu3-78tQXh-78ZgNf-7b3KNb-7cdGnE-7cu74L-7cuLmC-7d5Ysk-7goJoR-7gs2Yq-7gBvSm-7ihDwR-7ijS4A-7iEknp-7jDRej-7kknme
„..feeling connected to my friends, my family, my community.”
The Four Pillars of Sustainability from Human (Employee/Consumer/Community
Member) Point of View
Personal
Social
Environmental
Spiritual
CROSSING AGE, ECONOMIC AND
GEOGRAPHIC BORDERS; COMMON GROUND
UNDERSTAND THAT EVERYONE IS A LOHAS OR ISN‘T
THE LOHAS SPECTRUM
UNCONCERNED
EVERYONE IS A LOHAS, OR ISN‘T..and everything in the middle
What do they care about and how much?
Unconcerned 17%Conventionals 19%Drifters 25%Naturalites 19%LOHAS 19%
LOHAS
Know their own power Use Communities to Connect (Virtual and
Physical)
Willing to pay 20% more for (authentic) sustainable
products
Introduce and influence family/friends to sustainable brands
Concerned about transparency/Fair trade/recyclable materials and
renewable energy
Make choices and Purchase from companies/brands with similar values
to their own
34
23% of the adults in the U.S., or 50 million people,
are currently considered LOHAS
Consumershttp://www.gaiamtv.com/video/cultural-creatives-paul-h-ray
Japan: 29% or 37 million adults are LOHAS consumers
LOHAS is a brand in Asia whereas it is a
psychographic in the US. Asia has latched on
to the term and put its own spin on it.
15% of the consumers in Singapore are LOHAS consumers.
71% of all Americans now say they make it a point tobuy from companies whose values are similar to their own.
35
germany
A Sept 2013 survey in the UK suggests that
demand for green products appears to be increasing: three in ten (27%) respondents said they are more likely to
buy a sustainable product and/or service
than 5 years ago.
A Sept 2013 survey in the UK suggests that
demand for green products appears to be increasing: three in ten (27%) respondents said they are more likely to
buy a sustainable product and/or service
than 5 years ago.
38
Walmart
SAP
Unilever
Caesars
Apple
39
Holistic Approach and Balance THE TRIPLE BOTTOM LINE
Sustainable
PROFIT(Economic)
PLANET(Environmental)
PEOPLE(Social)
28
You never change things by fighting the existing reality. To change something, build a new model that makes the existing model obsolete.”
R. Buckminster Fuller
Time for some Golden Nuggets
BEING „GREEN“ IS BECOMING „UNCOOL“
43
BECOMING „GREEN“ IS COOL
HOW DO YOU BECOME AUTHENTICALLY „GREEN“?
HOW DO YOU SELL IT?
44
RETHINK YOUR COMPANY
FOR A HOLISTIC APPROACH TO
SUSTAINABLE PRACTICES,DON’T BE PIECEMEAL.
45
1
IDENTIFY AND ENGAGE YOUR STAKEHOLDERS.
DETERMINE WHO CARES ABOUT WHAT AND HOW
MUCH.
46
2
47
3
SEEK LEGITIMATE ACCREDITATION.
HAVE OTHERS DECLARE YOUR AUTHENTICITY.
THEN, DEVELOP YOUR MESSAGE AND COMMUNICATE TO YOUR STAKEHOLDERS
ABOUT YOUR ACTIVITIES, EACH ACCORDING TO THEIR NEEDS, BUT
MAKE IT RELEVANT TO THEM AND THEIR WORLDS
48
4
GET IN NOW. YOU DON’T WANT TO BE LEFT BEHIND OR CONSIDERED A
“FOLLOWER” WHEN THIS THING REALLY GETS ROLLING.
LEAD. JOIN OTHERS WHO SHARE THE VISION.
FORM ALLIANCES.
49
5
RECOGNIZE THE HERO
Finding out exactly what your customers and consumers know about the sustainability of your product is tantamount to positioning yourself as authentically sustainable.
If they don’t know enough, you owe it to them and to yourself, to educate them.
Main values for Germans are quality, product features and innovation, therefore products and services are sold on those points. Price and Image are also in the mix but the German Mittlestand does not rely on the brand marketing that large enterprises do.SME’s operate within a local physical community and literally face community members daily. In part, their survival greatly depends on local social acceptance.The value of sustainability is still a novelty feature and not yet a main product feature although Germans and Europeans are relatively further along than other Western countries regarding perception.
Summary
Redefinition of Value andBrand Renewal!
Authentic Sustainability equals Quality..
The Competitive Advantagefor Companies and
Communities…
CONCLUSION
Phoenix Sustainable Communications
International Communications Consultant, Coach
German Midsized firms, NPOs
[email protected] PABST VON OHAIN
THANK YOU!
