sustainable brands in sydney, australia
TRANSCRIPT
SIMONMAINWARINGWEFIRSTFOUNDER&CEO
©2016 We First Inc.
Activatingpurposetobuildyourbrandandsocialimpact.
@SimonMainwaring©2016 We First Inc.
First, the world we live in.
©2016 We First Inc.
Every company, brandand marketer is facingnew challenges to reach,engage and sell to hyper-connected, media-savvy, andalways-on consumers living ina challenging world.
©2016 We First Inc.
Culture has changed…
– Climate change– Wealth inequality
– Water scarcity
– Over-population– Healthcare costs
– Environmental damage
– Loss of biodiversity
– Gender inequality
Marketing has changed…
– Digital disruption – Quantified self
– Social media – Peer-to-peer– Mobile commerce – Big Data
– Internet of Everything – Wearables
Consumers have changed…
– Media-savvy– Well-informed
– Socially-conscious
– Hyper-connected
– Consumer activists
– Mobile focused
– Values-driven– Always on
©2016 We First Inc.
Consumers as content creators, producers and distributors.
©2016 We First Inc.
Shift from Me First to We First branding.ME FIRST BRAND
Opaque
Defensive
Disingenuous
Self-directed
Isolated
Profit for profit’s sake
Traditional mindset
Reactive
Schizophrenic
Shareholder
Dysfunctional
Broadcast
Status quo
Promotes advertising
WE FIRST BRAND
Transparent
Accountable
Authentic
Community-facing
Connected
People, planet, profit
Innovative mindset
Proactive
Consistent
Stakeholder well-being
Purposeful culture
Innately sharable
Future facing
Shapes culture©2016 We First Inc.
Havas Media, Meaningful Brands Report 20153
Most people would not care if 74% of all brands disappeared.
The business casefor purposeful storytelling.
©2016 We First Inc.
(Noun) The reason for which something is done or created or for which something exists.
(Verb) One’s intention or objective.
Purpose:
©2016 We First Inc.
2016 Edelman Trust Barometer
80% agree
“An organization can take specific actions that both increase profits and improve the economic and social conditions in the community where it operates.”
up from 74% in 2015
Consumers expect companies to do more than just make a profit.
©2016 We First Inc.
76%
74%
74%
69%
64%
53%
72%
74%
71%
64%
58%
42%
79%
75%
77%
75%
70%
64%
Government
Businesses
Consumers
Non-Profit Organizations
Charities and Philanthropists
Religious Organizations
All 6 Markets Developed Countries Developing Countries
…and that everyone must play a role -including business and consumers.
Re: thinking Consumption Report, BBMG, SustainAbility, GlobeScan
3 in 4Consumers agree that improving the environment & society is a shared obligation across government, private sector, non-profits & consumers
©2016 We First Inc.
Globescan Regeneration Consumer Study
Consumers want to be part of the solution.
67% consumers
globally
are interested in sharing ideas, opinions and
experiences with companies to help
them develop better products or
create new solutions
72% consumers
globally
believe in voting and advocating for issues important to
them
©2016 We First Inc.
How purpose drives profit.
Purpose defines the values of a company.
Relationships determine the productivity, profit,and impact of the brand.
Values define how stakeholders relate toeach other.
©2016 We First Inc.
EMPLOYEES
CUSTOMERS
CONSUMERS
MARKETINGCULTURE
PURPOSE
Putting purpose to work for you.
©2016 We First Inc.
EMPLOYEES
1. Define your purpose in simple, consistent and scalable terms.
2. Share your purpose throughout your organizations.
3. Give employees choices for how to bring that purpose to life.
Action steps:
©2016 We First Inc.
Purpose Increases Employee Loyalty & Tenure.
2015 Imperative & NYU Workforce Purpose Index
purpose-oriented workers at work 14
2015 Workforce Purpose Index • © Imperative
Purpose-Oriented Workers Have Longer Expected Tenure
Purpose-Oriented Workers expect to stay in organizations longer than their peers. Tenure is a critical mea-sure for the workforce as it relates to both the costs of turnover to employ-ers as well as job satisfaction.
Purpose-Oriented Workers Are More Likely to Be Leaders
Purpose-Oriented Workers were 55% more likely to hold Director positions, 39% more likely to hold Vice Presi-dent or C-Level positions, and 50% more likely to be in the top position in their organization. Even when controlling for other factors, Pur-pose-Oriented Workers were more likely to be in leadership roles than their peers.
% o
f Wo
rker
s W
ho E
xpec
t to
Sta
y Lo
nger
Tha
n 2
Year
s
100%
75%
50%
25%
0%
Purpose Oriented
Non-Purpose Oriented
79%69%
Expected Tenure by Work Orientation
Purpose-Oriented Workers are 50% more likely to be in the top position in their organization.
Percenta e i erence et een Purpose riented and Non Purpose Oriented Workers by Occupational Level
Intern
P • eve xecutive
ntr eve •
ssociate
anaer •
r ana
er
Directo
r
President •
• ner
100%
75%
50%
25%
0%
20%
-25%
-15%
5%
55%39% 50%
Purpose-oriented workers expect to stay in organizations longer than peers, and 50% more likely to be in the top positions.
©2016 We First Inc.
The Benefit of Purpose-Driven Employees.
2015 Imperative & NYU Workforce Purpose Index©2016 We First Inc.
Path of Service™
• Launched in 1992
• Provides full time employees up to 40 paid service hours per year
©2016 We First Inc.
Case Study: Timberland
In 2014, Timberland employees worldwide served
72,098 hours
of employees reported serving at least once in 201478%
©2016 We First Inc.
1. Create Opportunities2. Leverage Senior Leaders3. Recognize and Celebrate4. Foster Employee Ownership5. Tell Your Story
Timberland: Employee Engagement Roadmap
©2016 We First Inc.
CUSTOMERS(B2B)
1. Share your purpose with your customers.
2. Establish values alignment to mitigate risk.
3. Give them a positive story to tell -leverage storytelling to strengthen both parties’ reputation.
ACTION STEPS
©2016 We First Inc.
Action steps:
Purpose Increasingly Driving Reputation
Fig 5: The Changing Landscape of Reputation Driver Impact
The most notable developments in investor attention moving into 2016 was in their changing
interest in leadership qualities, underlying financial soundness, innovation and matters sus-
tainability and CSR. Uncertainty about the world economy and the pace of recovery at home
has refocussed attention on corporate leadership and financial robustness. It has also led to
a reduction in the importance attached to demonstrable innovation a traditional ‘recovery’
characteristic. Most significantly perhaps, the on-going rise of interest in social responsibility
points to increasing endorsement of its important to commercial success.
Reputation managers should aim to balance their communications and messaging in order to
secure and build at the same time. They need to view the circumstances of their own compa-
nies’ reputation assets through the lens of driver potential and value profile in order to establish
the messaging priorities that will deliver the greatest value impact on their market capitalisa-
tions. With that, reputation value management can be deployed in an increasingly effective
and economically impactful fashion.
Rela
tive
Drive
r Im
pact
Qua
lity o
f man
agem
ent
Fina
ncia
l sou
ndne
ss
Qua
lity o
f goo
ds &
ser
vice
s
Abilit
y to
attr
act t
alen
t
Long
term
inve
stm
ent
Cap
acity
to in
nova
te
Qua
lity o
f mar
ketin
g
Com
mun
ity &
env
resp
onsi
bilty
Use
of a
sset
s
8
2016 UK Reputation Dividend Report©2016 We First Inc.
Reputations are critical corporate assets but the premiums they deliver cannot be taken for granted…and itappears this may have started to happen.
Securing the value of reputation assets is about playing to the components that matter most to investors
Securing reputation value is not a zero-sum game in which a pumped up asset is automatically more valuableand a deflated one less so. Different messages resonate within the investment community to different degreesat different times and need to be supported accordingly if the value they have delivered is to be maintained.
At the start of 2015, the single most valuable component of corporate reputations across the S&P 500 as awhole was perceptions of people management. Variances on that factor alone were making the greatest differ-ence as investors recognized that a company’s ability to win is increasingly dependent on its ability to attractthe talent it needs to operate. The second most valuable component is perceptions of management quality followed by long term investment potential. Individually, these factors account for $545bn, $483bn and $449bnof shareholder value across the index respectively.
Figure 4: Location of S&P 500 Reputation Value – the $3,329bn
Individual company reputations will present ‘risk profiles’ based upon unique strengths and weaknesses. Reputation managers need to be sensitive to that if they’re to be sure that their communications and messagingis directed towards the first ‘responsibility’, namely supporting the components of their reputation assets thatare contributing the most value balanced with the second, which is pursuing growth opportunities.
6
©2016 We First Inc. 2015 UK Reputation Dividend Report
CSR Represents 10.7% of the Value of S&P500 Companies
Case Study: Woolmark
©2016 We First Inc.
CONSUMERS(B2C)
1. Leverage purpose to create simple, emotional and sharable storytelling.
2. Consistently base storytelling on shared values.
3. Recognize and reward consumer participation.
ACTION STEPS
©2016 We First Inc.
Action steps:
2015 Cone Communications/Ebiquity Global CSR Study
Consumers believe their purchases make a moderate-to-significant impact.
©2016 We First Inc.
2015 Cone Communications/Ebiquity Global CSR Study
Consumers are likely to switch brands to those associated with a good cause.
2015 2013 2011
Very/Somewhat Likely (net)
90% 91% 94%
10
2015 2013
Which companies they want to see doing business in their community
What to buy or where to shop
Where to work
Which stocks or mutual funds to invest in
Which products and services to recommend to people
84% 85%
84% 86%
79% 80%
67% 66%
82% 85%
Given similar price and quality, consumers are likely to switch brands to one associated with a good cause:
Consumers consider a company’s social and environmental commitments before making important decisions. Very/Somewhat Important (net)
2015 CONE COMMUNICATIONS/EBIQUITY GLOBAL CSR STUDY 1110
©2016 We First Inc.©2016 We First Inc.
Case Study: Whole Foods
©2016 We First Inc.
MARKETING
1. Give consumers opportunities to co-own, co-author and co-create.
2. Engage mission-aligned influencers and ambassadors to increase reach/earned media.
3. Align ongoing tactics with a long-term purposeful strategy.
ACTION STEPS
©2016 We First Inc.
Action steps:
2015 Cone Communications/Ebiquity Global CSR Study
Consumers want to participate in brands’ purposein many ways.
©2016 We First Inc.
Case Study: Patagonia
©2016 We First Inc.
CULTURE
1. Transcend your products, services and culture to shape culture.
2. Define, frame and lead a cultural conversation.
3. Be a mission with a company, not a company with a mission.
ACTION STEPS
©2016 We First Inc.
Action steps:
Sustainable Mass Transportation.
©2016 We First Inc.
SharedPlanet
Starbucks: Shared Planet
©2016 We First Inc.
2015 ‘Fit for Purpose’ Report, Radley Yeldar©2016 We First Inc.
The result?
©2016 We First Inc.
“Socially responsible brands accounted for
half our growth in 2014 and grew at twice the rate of the rest of the
business.”
Paul PolmanCEO Unilever 2015
©2016 We First Inc.
2015 Driving Revenue Growth Through Sustainable Products and Services Report
“Between 2010 and 2013, revenues from company-
defined portfolios of sustainable products and services grew by 91%.”
For S&P Global 100 companies sustainable products revenue stream grew at 6X the rate of overall company results.
Purpose drives growth.
HBR 2015 The Business Case for Purpose Survey
Organizations that prioritize purpose experience significantly more growth than those that do not.
Organizations that prioritize & integrate purpose
Organizations that do not prioritize & integrate purpose
©2016 We First Inc.
EMPLOYEESProductivity
CUSTOMERSAlignment
CONSUMERSLoyalty
CULTURELeadership
PURPOSE
Results:
MARKETINGAmplification
©2016 We First Inc.
Activating purpose drivessustainable profit.
©2016 We First Inc.