Recently in Corporate Social Responsibility for Green Marketing Category

Movies and television are the key drivers to toy sales

Lionel Emerges From Bankruptcy As Entertainment Firm
The Wall Street Journal
Lionel LLC, which emerged from bankruptcy-court protection last week, will be an entertainment company and not just a toymaker, according to CEO Gerald Calabrese, a former Marvel Comics executive who shepherded the 108-year-old company through bankruptcy. "We're not the distribution and sales mechanism anymore," he says. "We're the intellectual property.

Breaking into the broader toy market is key to Lionel's growth, Calabrese says. During the company's stint under bankruptcy protection, sales for Lionel starter sets--kid-friendly systems that range in price from $129 to $300--more than doubled. Developing new products that appeal to children and getting them on the shelves at big retail outlets is only part of what Calabrese calls the pop-cultural segment of the toy market. He says that in today's marketplace, movies and television are the key drivers to sales.

There are lessns to be learned here for green companies that conduct research and development. Products are inherently appealing to consumers...but not all companies that are expert in research and development of products are also experts at marketing, distribution and corporate finance for global marketplaces.
  

"Transition" in business models is nothing new to green companies.  Traditional methods don't work.  New technologies must be bought, paid for and learned on the fly. New marketing methods adopted that emphasize transparency, reporting, FTC regulations about environmental messages...plus all the struggles to find qualified people with some green and sustainable business knowledge...and maybe a bit of experience?

Transition is also being faced by print media, and maybe there are lessons we can learn from these highly public companies that are having to make significant changes in full light of their communities:

Print-Online Transition Is Possible
The New York Times

Among the big questions currently hovering over the media industry is can print media survive the transition to the Internet? The question has taken on new urgency, as the tanking economy places even more pressure on newspapers and magazines (whose customers and advertisers were already heading to the Internet in droves even before the recession).

The experience of International Data Group, a technology publisher, suggests that it can be done. The privately held company claims to have successfully migrated its publications to the Internet, where online ad revenue now surpasses that of print. However, the transition was not seamless: It took years of investment, upheaval and changes in its journalism practices.

"The excellent thing, and good news, for publishers is that there is life after print - in fact, a better life after print," said Patrick J. McGovern, the founder and chairman of I.D.G. InfoWorld, the company's flagship publication, completely moved its operations to the Web a year ago. In April 2007 it generated ad revenue of $1.5 million on a slight operating loss. Today, the Web site makes $1.6 million a month with an operating profit margin of 37%. Overall, 52% of the company's revenue is from online ads, while 48% comes from print.  SOURCE:  NYTimes.com

It can take months of waiting nervously to see if significant changes take root and survive infancy to flourish:

The biggest single step in I.D.G.’s online shift came in 2007, when the last print edition of InfoWorld appeared and it became a Web-only publication.  The technology publisher has not just stabilized its business, but is also  growing at about 10 percent a year.

One strategy that transitioned over time is adopting an “online first” business model. Three years ago, the editorial staff was divided into three people who worked on the Web site only and the rest only on print. Today, there are no print and Web barriers. The total staff size, at 23, is one fewer than in 2005, but now most of them spend 80 percent of their time on the Web, while a handful of writers spend 80 percent of their time on the long centerpiece articles in the print magazine.

That same strategy can work for traditional companies that are transitioning into the green space.  By building an inside team who work through the transition one step at a time, they build the infrastructure, the corporate intelligence, and prepare the new managers for the new world. 

Larger, traditional companies have the luxury of this kind of transition, notwithstanding a corresponding problem that arises out of a fast transition to climate change regulations that necessitate a speedy response.

Smaller companies that are "totally green" don't have that traditional revenue behind them...nor do they have the legacy staff, the legacy shareholder expectations, or the legacy management to convince every step along the way.

But what is clear in the board rooms around the world, is that the green transition is of as great, or greater seachange than the Internet.  The survival of entire cities and corporate land holdings are just one of the dangers that are driving this transition. 

April 28, 2008
Contact: Carol Goldberg (202) 265-7337

NEW JERSEY MODEL FOR PRIVATIZED TOXIC CLEAN-UPS FAILS AUDITS

Serious Violations Found in More than Two-Thirds of Audited Massachusetts Sites

Trenton — More than two out of three privately supervised toxic clean-ups in a Massachusetts program that New Jersey wants to adopt failed audits with serious violations, according to records released today by Public Employees for Environmental Responsibility (PEER). Despite these red flags, the New Jersey Department of Environmental Protection (DEP) is rushing to embrace further privatization of its troubled toxic remediation program as a cost-free panacea.

PEER argues that DEP has an unrealistic view of its plan to license private sector consultants to replace state employees in overseeing remediation of contaminated sites program by overlooking –

• The need to hire new state employees to license and oversee the private consultants. DEP is under a hiring freeze and does not have surplus employees to assign to run this new program;
• Privatization does not mean the program is free. DEP has disclosed no plan to plan for financing the program nor is it clear how the state will save any money in its operation; and
• Perhaps most importantly, DEP has failed to prioritize any of its more than 16,000 toxic sites – something DEP is legally required to do and has promised to do for the past two years. Without a ranking system, public health will remain secondary to developer interest in deciding where to invest scarce resources.

Communications should be two-way and transparent to be meaningful...and take us a bit closer to truths. That's what I believe...and because of my belief, I find the following letter the editor of the Arizona Daily Star RIGHT ON!

Re: the April 18 article "Viewers, critics irate over ABC's handling of Dem debate."

The flap over the last televised debate suggests to me that we need a debate where the candidates question the news people. That might be more revealing.

Theo Warmbrand

Tucson

Internet platforms that focus on identifying or predicting  environmental trends include
FT Predict,
intrade,
IdeaWorth,
newsfutures,
Popular Science Prediction Exchange,
ZiiTrend 

Add to that list Industry Standard (IS), a consumer-driven platform to predict the future. A “market” is simulated in which members place a bet on whether an event will or will not occur.  They use “virtual currency” called “Standard Dollars”.  The  “community consensus” is calculated as the weighted average value of the bets placed for or against the prediction coming true.

On May 7th and 8th, 2008, all eyes will be on Sacramento, California as residents, policymakers and leaders come together for the Great Valley Center’s 11th Annual Conference, “Green Momentum: Prospering in a New Economy”

Thriving in a challenging economy is not easy. But at this conference, you’ll be exposed to dozens of innovative strategies Valley businesses and residents are using to move their communities and businesses forward.

Don’t miss this opportunity for unparalleled access to the community leaders and regional innovators who are shaping one of California’s fastest growing regions.

Featuring more than 45 breakout sessions and 100 expert speakers, this is your chance to learn how the Valley’s economy, communi ties, and environment will be shaped by the emergent ideas of sustainability, long term planning and collaboration. It’s the kind of inspiration you won’t find anywhere else.

Topics include transportation, land use, green building design, the economy, air quality, water, health care, and education.

Great Valley Center events bring together individuals who hold diverse views on a wide range of issues. The opinions expressed by speakers or participants do not necessarily reflect the views of the Great Valley Center,

Additional Information:
Program, exhibition and sponsorship information, contact Heidi Arno
For media related inquiries, contact Richard Cummings

FEATURED SPEAKERS

Green Car Institute, a non-profit research and educational organization, has conducted a major study of the market for neighborhood electric vehicles (NEVs).

The study measures the potential for NEVs, focusing on their primary consumer market, master planned communities.

Green Car Institute’s background includes the landmark study of the electric vehicle market in California presented to the California Air Resources Board in September 2000: The Current & Future Market for Electric Vehicles. The study remains the most thorough publicly available research quantifying the market potential of, and analyzing obstacles to, the mass marketing of battery electric vehicles.

A number of electric vehicle marketing studies for NEVs are available on the Green Cars Institute website at www.greencars.org/studies.html

ROI - Return on Investment

ROI is a powerful motivator -- "Return on Investment" is an accepted demonstration of value, but we don't think about how we invest for a return on emotions, or a setting, or a vacation.  We do invest for "well being". And buying  solutions to meet these basic human needs is a key driver for consumer purchasing.

In reading a recent article about merchandising for the outdoor living trend by P. Allen Smith ("Mecrchandising the Outdoor Living Trend", Lawn & Garden Retailer), the basics of "In Lieu Of" marketing struck me as  a very powerful way to help customers realize value.

"While it might seem that the most sensible thing to do is just hold steady and not change anything, experience has taught me that when customers feel they need to do some belt tightening, they often scale back on items such as travel and vacations but still look for economical ways to bring enjoyment and beauty into their lives....

"For half the money that they could spend on gas, lane tickets, food and accommodations -- all of which are temporary enjoyments -- homeowners can create outdoor settings with all the style and comfort of indoor living and gt that 'vacation feeling' for months, not just two weeks. But to help them see the advantage of what you have to offer, they need some encouragement."

ILO - In Lieu Of Investing

For HALF the money a consumer (and family) would spend on gas, plane tickets, food and accommodations, they can create a "vacation feeling" in their own backyard by creating a setting that is "in lieu of" a traveling vacation.

Do you want THIS or THAT?  Which will bring you more value...for a longer period of time, with more intensity, with greater pleasure?

RoS - Return on Setting

With the new majority of the world now being urban dwellers, "setting" has become more important than "gardening" (task oriented).  Outdoor living is one example of a new marketing opportunity:  creation of settings.  Whether we are creating an outdoor spa with a hot tub and water falls, or an executive office that maximizes productivity and prestige -- "setting" is the demonstration of a specific value.  

Hence, Return On Setting.  Ambiance.  Symbols.  The creativity and craft of creating a symbol that creates a mood that results in specific outcomes that provide emotional returns.

RoD - Return on Demonstration

I believe that everyone is "creative".  We can all imagine  solutions to problems.  We all have flights of fancy. What we don't all have is the ability to convert those ideas into demonstrable projects.  The merging of creativity with craft.   That's the power of "Return on Demonstration".

If your retail store can create an "outdoor room" that demonstrates a recipe that results in the desired feelings and situations of pleasure -- i.e., visiting with family and friends  --  you have a powerful marketing tool.  Demonstration is the bridge between creativity and craft -- and the opportunity for retailers to help their customers succeed at achieving their hearts' desires in a tangible way.  That's merchandising!  That's demonstration.

RoE - Return on Emotions

The best way to motivate people is to show them inspiring examples in which they can imagine themselves relaxing, enjoying, connecting, revitalizing themselves, succeeding, enjoying respect, enjoying health and vigor. All those outcomes are heavy on "emotional returns" or pleasure, the most motivating of human emotions. 

Add to those positive emotions the reduction of:  stress, cost, fear, exhaustion, health concerns, etc...and you cover the other half of the human psyche -- fear.

Together, when you offer both POSITIVE and NEGATIVE tools, you demonstrate how you deliver a solution with extra benefits.  Most solutions only demonstrate one side of the emotional equation. But a good marketing proposition provides both sides -- what is wanted, and what is avoided.

RoG -- Return on Green

Green is a confusing concept to most people -- even people involved in green companies.  And that's because we are in a high-innovation phase.  New technologies are being developed daily.  Green affects EVERYTHING -- and who can grasp everything?!  There's water conservation.  And air quality. And green building. And organic food. And recycling trash.  And buying recycled paper.  And...

Return on Green is about demonstrating a "setting" in which the "emotions" are rewarded with a better, simpler  claim to wellness.  Good friends. Family time. Good health. Pleasant visual surroundings. And how YOUR green strategies can deliver those things.  Give them a template, a plan, a list of materials...a recipe for greening their current goal.

RoS - Return on Solution

The marketer's challenge is to craft a creative solution for each customer (or customer group).  How to partner with supporting companies to create a complete setting, a DEMONSTRATION that appeals to the customer.  An alternative, an In Lieu Of proposition that costs half as much, delivers twice as much -- or is measurable in some appealing way.  What you deliver isn't just cost related -- it is also EMOTION related. 

• Simple pleasures.  "Enjoy a nap that gives you hours of additional energy"
  
• Higher energy. "Increase your stamina measurably"
  
• Better complexion. "Clear the zits in 2 days and go to that party embarrassment-free"
  
• Lower energy costs. "Decrease your lighting costs by 75%"
  
• Open spaces. "Remove half the clutter"
  
• Less travel. "Enjoy more weekend time with your family"
  
• More rewarding work...that makes a difference. "Deliver practical results that your customers can want"
  
• Happier children. "Take the stress out of homework and improve concentration by 50%"
  

... you get the picture. Create pictures. Demonstrate "returns." Focus on the RETURNS that people work for. The returns they shop for. Hunt for. Work for. When you infuse green solutions into these demonstrable, real life  settings, you are  fulfilling very human desires with green marketing and green results!

A group of businesses and organizations have gathered together to encourage the federal government to enact legislation for significant reduction in greenhouse gases. that have come together to call on the federal government to quickly enact strong national legislation to require significant reductions of greenhouse gas emissions.


USCAP has issued a landmark set of principles and recommendations to underscore the urgent need for a policy framework on climate change.


is the result of a year-long collaboration. It lays out a blueprint for a mandatory economy-wide, market-driven approach to climate protection.

We Know Enough to Act on Climate Change

In June 2005, the U.S. National Academy of Sciences joined with the scientific academies of ten other countries in stating that “the scientific understanding of climate change is now sufficiently
clear to justify nations taking prompt actions.”

Each year we delay action to control emissions increases the risk of unavoidable consequences that could necessitate even steeper reductions in the future, at potentially greater economic cost and social disruption. Action sooner rather than later preserves valuable response options, narrows the uncertainties associated with changes to the climate, and should lower the costs of mitigation and adaptation.

For these reasons, we, the members of the U.S. Climate Action Partnership (USCAP) have joined together to recommend the prompt enactment of national legislation in the United States to slow, stop and reverse the growth of greenhouse gas (GHG) emissions over the shortest period of time reasonably
achievable.

The USCAP ...  believes a U.S. policy framework must include the following:

• Mandatory approaches to reduce greenhouse gas emissions from the major emitting sectors including emissions from large stationary sources, transportation, and energy use in commercial and residential buildings that could be phased in over time, with attention to near-, mid-and long-term time horizons;
• Flexible approaches to establish a price signal for carbon that may vary by economic sector and could include, depending on the sector: market-based incentives; performance standards; cap-and-trade; tax reform; incentives for technology research, development, and deployment; or other appropriate policy tools; and
• Approaches that create incentives and encourage actions by other countries, including large emitting economies in the developing world, to implement GHG emission reduction strategies.

The Environmental Goal

U.S. legislation should be designed to achieve the goal of limiting global atmospheric GHG concentrations to a level that minimizes large-scale adverse climate change impacts to human populations and the natural environment, which  will require global GHG concentrations to be stabilized over the long-term at a carbon dioxide equivalent level between 450–550 parts per million.

They propose that the environmental goal and economic objectives can best be accomplished through an economy-wide, market-driven approach that includes a cap and trade program that places specified limits on GHG emissions. This approach is proposed to ensure emission reduction targets will be met while simultaneously generating a price signal resulting in market incentives that stimulate investment and innovation in the technologies that will be necessary to achieve the stated environmental goal. The U.S. climate protection program should create a domestic market that will establish a uniform price for GHG emissions for all sectors and should promote the creation of a global market.



US Climate Action Partnership (USCAP)
For more information about USCAP, please contact The Meridian Institute
1920 L Street, NW, Suite 500
Washington, DC 20036
Phone: 202.354.6440

Lighthouse Consulting Group, LLC
1150 Connecticut Ave., NW, Suite 717
Washington, DC 20036
Phone: 202-822-2000

www.us-cap.org/

Communicating issues that apply to the Board of Directors of either a public or private company can be daunting for environmentalists.  Scientists, communications pros and even marketers focus most of their efforts on end applications and end users.  Yes, we know there's compliance and stock prices, but what do the members of the company's governance board need to know about going green and corporate social responsibility.

I spoke with a turn around board member about governance and green.  Here are the questions he said matter to board members:

Why is green a governance issue?
What are the benefits to my company by going green?
Is there a return on investment?
What makes social responsibility a governance issue?
How do I start?
What is the leading edge of green technology and practice?
What are other organizations doing?

Why is green a governance issue?

Those questions make good sense.  Board members focus on the performance evaluation of the president and chairman of the board.  How their operations are working.  They take note of issues the CEO is missing and bring these new concerns to his attention as team players. They look for risks and weigh them.

As large corporations such as General Electric, Wal-Mart and Interface go green and are methodically re-engineering their product lines and processes to conserve natural resources, we have to look at what moved these governing boards to approve of a green strategy.

Jeffrey Immelt, CEO and Chairman of GE stated in a 2007 news conference that he's not an environmentalist, he looked at the practical side of conservation of resources and the business opportunities they presented to his company and decided that green is the way of the business future. 

GE has since then divested itself of its chemical and plastic divisions.  They have enhanced their renewable energy and water processing divisions.  They are moving in the direction of renewable products and services rather than consumptive products that depend on oil.  That's risk avoidance.  And looking at ways to serve the world population's need for the basics of life:  water, energy, food and sanitation.

Governance Issues In Social Responsibility

Social responsibility affects meeting compliance and reporting requirements at the local, state, national and international levels.

Risk management affects insurance rates, losses due to changing weather patterns, increased cost of raw materials that are tightening as the easy pickings are plundered and essential materials are harder to harvest.

Performance of the President and CEO and their C-suite team depends on attracting quality talent -- and thinking, educated leaders are getting more concerned about the impact their employers are making on their families' well being.

The cost of doing business rises with the cost of raw materials and keeping pace with new technology. 

Toxic materials  affect the lifetime accounting costs that are being increasingly monitored by regional governments who must clean up brownfields and landfills long after the corporate players have left the playing field. And dumping toxic waste on unsuspecting countries around the world is coming under closer scrutiny.  Waste management costs are rising -- and can be a  source of  business revenue if handled in a socially responsible, green, and reclamation way.

Marketing as Social Responsibility

Marketing is not just about getting new customers.  Marketing is also about keeping customers because the cost of marketing decreases rapidly with repeat sales. Good marketing with social responsibility is good business.  Building mutually respectful relationships along the supply chain, across stakeholders, and in the communities of residence and commerce are socially responsible ways to support a board's fiduciary responsibility.  

Caring  is better than abuse.  It's that simple because someone has to pay the price for abusive policies and governments are increasingly able to track responsibility, regulate it, and put the costs back on the source of the costly problems.

Transparency is partly a  governance  task, and partly a marketing task.  Marketing communications affects customers, investors, potential investors, potential employees, leadership teams, and regulators who live in the communities affected by a company's "dirty laundry"... or respectful citizenship.


So "Why is green a governance issue?" Because green is about survival.  And survival is what puts food on the table and a roof over our heads.  Business is the productivity arm of our civilization...and if we don't work for a better tomorrow, and continue to bleed our resources dry, we won't have a society to buy our products in a few short years. 

Killing the earth's natural systems will be like killing the goose that lays the golden egg.