We hear lots of talk about being customer-centric—but then we see far too many examples of companies that DON’T walk their talk. I still remember seeing a sign inside a Blockbuster Video store, maybe 20 years ago, talking about their empowered employees. I went up to the counter clerk and asked permission to snap a picture of the sign; I wanted to use it as a positive example in the customer service section of the marketing book I was writing—and the clerk said I’d have to call corporate headquarters. What kind of empowered employee is that? I was so disgusted I never set foot in another Blockbuster.
Most companies will need to make three shifts at the same time to become truly customer-centric. All three are challenging but bring very big returns.
  1. Create a culture where employees feel valued and listened to—where what they do makes a difference. Empower them not just to fix customers’ problems but to harness their own creativity to create preemptive change. IN the trenches every day, employees often have the best ideas for improving things. But they will only share those ideas if they think management will pay attention and that they won’t get punished in any way. No matter how crazy an idea may seem, give it a full airing. Often, you can modify it to be practical, and implement those pieces. Consider implementing a reward system for any idea. The reward doesn’t have to be monetary. It could be as simple as naming the employee with the best idea, or with the most ideas, Employee of the Month. However, if the idea saves or makes the company a big pile, the originator should get a money reward too. For hierarchical companies, this means letting go of command-and-control and making line employees feel that management really wants their ideas—which can be discussed in public meetings/assigned to study/IMPLEMENTATION committees and NEVER dismissed out-of-hand by a manager either 1:1 or in public. This takes training, of course.
  2. Really listen to your customers. Don’t just wait for them to complain. Go out and ask them what they love about working with you, and what they’d like you to improve—and why.
    A woman on a customer service call, taking handwritten notes
    A woman on a customer service call, taking handwritten notes

    Treat this seriously and publicize the way their suggestions become innovations (including honoring them by name, if they consent). Not only will this show how responsive you are, it encourages more people to jump in with their own ideas.

  3. Align your company with a higher purpose. If people feel that you’re making both a difference and a profit, they will become much more enthusiastic Employee turnover drops while productivity goes up, customer retention increases, and you might even become a media darling. For instance, can you identify, develop, and market a profitable product or service that actually helps turn hunger and poverty into abundance, war into peace, or catastrophic climate change into planetary balance?
  4. Bonus tip, because I like to overdeliver: shift from a scarcity to an abundance mindset. Replace “yes, but” with “yes, and”: expand the possibilities, build off that suggestions until you’ve co-created something wonderful. Then go implement it!

Need help? This is what I do in my consulting, writing, and speaking. I’m really good at finding opportunities for almost any company to “do well by doing good” (old Quaker saying): to find profitable niches that make the world better, and to create the products and services to fill those niches. Here’s my contact info. Want to learn more? Drop by https://goingbeyondsustainability.com/ and have an explore.

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Do corporations treat innovation as a “virus”–a threat?Even a virus can look beautiful. Chanvge the perception of yur inovationn form a virus to a beautiful opportunity.

That’s the intriguing question Stowe Boyd asks in today’s newsletter. Along with Seth Godin, Stowe often helps me start my day.

Never Under-Estimate the Immune System | John Hagel warns us of the almost reflex rejection of new ideas by the innately conservative culture of organizations, and which may be the central weakness of organizations to the world of today:
Every large and successful institution has an immune system– a collection of individuals who are prepared to mobilize at the slightest sign of any “outside” ideas or people in order to ensure that these foreign bodies are neutralized and that the existing institution survives intact and can continue on course. Just like the immune system all organisms have, this institutional immune system is adept at recognizing foreign bodies as soon as they appear and very effective at protecting the institution from infection. It is in fact what has helped large institutions to survive – they are in fact “built to last.”
But here’s the paradox: the immune system that has given large institutions extraordinary resilience in the past may be the very thing that makes these institutions so vulnerable today.

I clicked through to the original article. Hagel continues:

In more stable times, institutional immune systems are very effective at keeping institutions focused and on course, resistant to the distractions that might lead to their downfall. In more rapidly changing and volatile signs, this same immune system can become deadly by resisting the very changes that are required for the survival of the institution…

I’ve been involved in large scale transformation efforts for decades now and there’s only one lesson that I really have to share from all that experience: never, ever under-estimate the power of the immune system of a large existing institution

[W]e need to craft approaches to transformation that have the ability to respect the power of the immune system and find ways to minimize the risk that the immune system will mobilize to crush the transformation effort. [emphasis in original]

Pointing out that threat-based change increases resistance, Hagel lays out a detailed transformational change action map that positions change as an opportunity. It’s worth reading.

Progressives and environmentalists often try to motivate negatively: through guilt, shame, and fear. And as I think about it, I realize the Right also uses negative motivations, notably fear and greed. Both sides are Chicken Littles, screaming that the world will end. So the far-Left gets people sunk and worried that the world will end, while the far-Right gets people on a treadmill of hatred, xenophobia, etc.

Neither of these approaches create positive social change. But Hagel’s focus on showing the opportunities does.

Boyd focuses on workforce issues, Hagel apparently on organizational transformation. My own focus is on opportunities for transformational social/environmental change to intersect and overlap with business profitability. In my own work, I often talk about the need to motivate positively. I’ve spent the last five years demonstrating those opportunities. I show business how to identify/create/market profitable offerings that turn hunger and poverty into abundance, war into peace, and catastrophic climate change into planetary balance–not through guilt, shame, and fear, but through enlightened organizational and personal self-interest. Thus, my speaking and writing focuses on building profitability through those social and environmental change products and services. A successful initiative:

  • Finds money in making the world better
  • Creates brand loyalty leading to repeat and ever-larger purchases
  • Encourages customers to spread the word about your good work, inspiring an army of unpaid brand ambassadors
  • Reduces operating costs and internal resource consumption (in keeping with Hagel’s challenge to avoid igniting the corporate immune system by minimizing new initiative’s need for resources )
  • And of course, actually does improve things for those suffering the consequences of crises like hunger, poverty, war, and catastrophic climate change

Want to know more? Please visit https://goingbeyondsustainability.com

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Guest Post by Wayne Stevenson Thomas, in San Antonio, Texas

[Editor’s note: We stayed with Wayne on our first trip to San Antonio many years ago, and have stayed in contact. I am always looking for examples of for-profit businesses that serve a greater good. If you’ve got an example and would like to guest-blog, please write to me through this site.]

Thrift Shop Interior
Thrift Shop Interior

Cliff Morgan was an executive at the local St. Vincent de Paul. They had a big operation of recycling the items they couldn’t sell or give to the poor. But he and the St. Vincent board found that the not-for-profit model didn’t allow him the flexibility he needed to operate. (Something about how all contracts or agreements had to go to the board as well as any expenditures above a fairly low number.)

So St. Vincent decided to spin off the operation into a for-profit, which Cliff owns. SA3 Community Recycling serves three communities of interest: Nonprofits who receive donations they cannot use, nonprofits who need items, and citizens (as represented by our governmental organizations).

He collects unneeded items from providing nonprofits. He pays them for clothing, shoes and bundled cardboard, generating a small revenue stream for them while allowing them to concentrate on their mission, rather than on disposing or selling unwanted material.

He contacts receiver nonprofits to provide them exactly the items they need from the stream of items he receives from the provider nonprofits. He provides exactly what they need. For instance, Dress for Success might need 5 size 16 Women’s business suits. SA3 would pull exactly that out of their stream and no more.

For the citizens as a whole, he contracts with governmental organizations to keep items out of the landfill. For instance he accepts cathode ray tube TVs from the providing nonprofits and disassembles them. He does the same with other electronics (if he doesn’t have another nonprofit that can use them.)

He generates income (as I understand it) by selling the clothing and cardboard for a bit more than he pays for it, and by selling the metal and other material captured from the electronics. He pays his staff, who do the pick-ups and supervise the volunteers who help sort the items that come through the door.

Among the nonprofits he provides with items from his stream are: Habitat for Humanity (building material), the Diaper Bank (loose and packaged diapers), Dress for Success, Spare Parts (an arts nonprofit that provides used and repurposed items to local art educators) and Samministries (household items for families leaving shelters). He also provides items as needed to several St. Vincent operations in South Texas. I believe he sincerely wants to recycle as much as he can within the community (and have connected him with several other receiver organizations).

Wayne Stevenson Thomas is a former volunteer and assistant manager at Jefferson Thrift Store in San Antonio.

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Social-good products like this solar-powered LED lamp make a difference AND a profit
Social-good products like this solar-powered LED lamp make a difference AND a profit

Too often, businesses think of sustainability as a “have to” instead of a “delighted to.” Let’s change that attitude! Here are three among many reasons why business leaders should be thrilled to embrace deep sustainability:

  1. The powerful business case. More and more stakeholders are demanding that the companies they patronize address wider environmental and social issues; those who fail to do this are starting to lose market share. Not only that, but going green the RIGHT way can substantially lower costs of energy, raw materials, and other goods while building in customer loyalty and tolerance for higher prices. To say it another way, greening your company can significantly up profitability! Companies in the Fortune 500 figured this out some years ago. Pretty much all of them have sustainability departments (under various names) and have made huge progress in the past decade. Of course, we still have a long way to go. But many smaller companies are resistant. Because they see expenses, not income streams, they dig in with their old, inefficient ways. But certainly, the low-hanging fruit–taking the steps with quick payback–increases profitability directly, by raising income and lowering costs.
  2. The ability to market sustainable goods, services, and processes to three different types of consumer: the Deep Green, who makes purchasing decisions contingent on social responsibility; the Lazy Green, who will do the right thing if it’s convenient; and the Nongreen, who is indifferent or even hostile to a sustainability agenda, but who will happily buy green products and services if they are positioned as superior (more comfortable, more durable, less toxic, etc.). Of course, these three kinds of customers need three different sets of marketing messages–something many green companies don’t understand, and thus leave a lot of money on the table.
  3. The power of business to go beyond sustainability—to regenerativity. To actually make things better: identify/create/market *profitable* offerings that turn hunger and poverty into abundance, war into peace, and catastrophic climate change into planetary balance. Lifting people out of poverty (and creating new markets), ending war, solving climate change as ways to make money: how cool is that?

I’ve spent the last several years studying this trend and have written an award-winning book, Guerrilla Marketing to Heal the World, that shows how in detail. It’s been endorsed by over 50 business and environmental leaders, including Seth Godin and Chicken Soup for the Soul’s Jack Canfield. You can learn more at the Guerrilla Marketing to Heal the World page at GoingBeyondSustainability.com (I think it’s by far the best of my 10 books, several of which have won awards or been translated and republished in other countries).

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For decades, I’ve told anyone who’d listen that doing the right thing for the planet and its inhabitants can be the core of a highly successful business strategy. In my latest book, Guerrilla Marketing to Heal the World, I cite dozens of studies that show this.

Now, AdWeek reports on a powerful new study that reinforces this key truth. 65 percent of respondents—2 out of every 3 consumers—rate the need for brands to “take a stand on social issues” either very or somewhat important, and especially so when discussing brands’ social media presence. Of the self-identified “liberals,” the number went up to 78 percent, or nearly four out of five.

Concern for the planet—and the living things that ride "Spaceship Earth"—is good for business (picture of Earth and sun)
Concern for the planet—and the living things that ride “Spaceship Earth”—is good for business
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Seize the opportunity!

Tragic as it is, the wipeout of Puerto Rico’s fossil-based infrastructure via Hurricane Maria creates a powerful opportunity to do it right the second time. With its vast solar and wind resources, why not make this sunny, breezy island the pilot project to develop 100% renewability in buildings for a populous island—using microgrids to build in resiliency, so if part of the system goes down, the rest still delivers power?

A storm-damaged pier. Courtesy freeimages.com
A storm-damaged pier. Courtesy freeimages.com

There’s already at least one island country we’ve all heard of that is near-100% renewable if you don’t count vehicles: Iceland (hydro and geothermal). Solar/electric entrepreneur Elon Musk has already converted several tiny, obscure islands, like Ta’u in American Samoa, and he says he can scale up to serve the 3,670,243 Puerto Ricans.

Of course, converting PR to renewables requires the re-invention of funding. We need mechanisms that allow a bankrupt country (technically part of the US) to front-load a huge infrastructure and then repay out of savings even when many pressing needs will be competing for those funds. The private sector won’t step up if they don’t have complete confidence that they’ll get paid back. Eco-economists, this is your moment!

But also, justice demands that a big chunk of financing come from outright grants, from the US government and various foundations and disaster relief agencies—just is occurred in storm recovery after other superstorms like Katrina, Rita, Sandy, and Irene. Even the heartless occupant of the White House, possibly the least compassionate and least competent man ever to hold that office, must not be allowed to marginalize Puerto Rico just because the population is Latina/Latino and the language is Spanish.

And wouldn’t it be cool if someone (Elon Musk perhaps?) stepped forward to fund a switch of the vehicle fleet to non-carbon-emitting sources? If the island had solar on every sunny room, it would be easy enough to supply the vehicles as well.

In some ways, converting the entire island to clean, renewable, resilient energy would actually make rebuilding cheaper and easier. Fossil fuel infrastructure is expensive, complex, and subject to environmental catastrophe. But if the money that would have gone to build tanker ports and refineries went to establishing on-island solar panel factories and training installers and to bringing in the raw materials to make millions of high-efficiency panels to deploy in every neighborhood in the Commonwealth, it’s doable.

I’m not the only and certainly not the first to say this. In addition to Musk, Time Magazine, Renewable Energy World, safe energy activist/author Harvey Wasserman, the deep-story news outlet Democracy Now, to name a few, have all said this is possible and desirable.

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If you read this blog regularly or have read any of my recent books (especially Guerrilla Marketing to Heal the World), you know I’m all about business as a tool to crate social change and profit at the same time.

This is social entrepreneurship, and it has a long and honorable history. 19th century chocolatiers the Cadbury brothers in the UK and Milton Hershey in the US founded their companies to model humane labor practices, for instance.

Still, I encounter lots of skepticism that business can create positive outcomes across the triple bottom line of People, Profit, and Planet. It’s the same kind of skepticism I used to hear a decade ago when I was making the case that business ethics could be a profitable business success strategy. Over and over again, I would hear, “Business Ethics—that’s an oxymoron!”

No, it’s not. And interestingly enough, I don’t hear that any more. The world is finally convinced that it is possible to be an ethical, profitable business. It’s convinced that you can run a profitable green business. I like to think my years of speaking and writing on this, and the ethics pledge campaign I ran from 2004-2014, had something to do with these shifts in thinking.

Now we have to take it further, beyond just being “sustainable” to creating a regenerative world. One way to do that is to develop and market profitable products and services that turn hunger and poverty into sufficiency, war into peace, and catastrophic climate change into planetary balance.

So on a recent flight, when I pulled the July Southwest Spirit out of the seat pocket and saw a big feature on combining social entrepreneurship with food, I was thrilled. You couldn’t really guess the social entrepreneurship piece from the title, “Good Food: To serve their communities, today’s top culinary minds are reaching far beyond the kitchen.”

Can’t say I’m surprised. I’ve admired Southwest’s commitments to ethics, service, leadership that continually honors its employees, eco-friendly features AND profitability for many years. And I was over the moon when the company purchased 1000 copies of my first book on business ethics as a success strategy, back in 2003.

While Southwest’s magazine reaches a far larger readership than my humble blog, I do think it’s important to spotlight a company that cares enough about other companies doing good to devote 13 pages to it, even semi-disguising it as a food feature.

Here are the businesses they spotlight, and what they’re doing. The article, of course, has a lot more details. Note: I’ve been a vegetarian for ethical reasons since 1973, but I recognize that is not everyone’s choice. I am including the meat businesses featured in the article.

  • Cala, a high-end San Francisco Mexican restaurant that seeks out ex-felons to hire
  • Portland Fruit Tree Project, matching urban homeowners who have surplus fruit with volunteers who come to pick the fruit, keep half, and give the other half to food pantries, food banks, and health clinics
  • The director of Rocky Mountain Institute of Meat, who set up a training program serving soldiers stationed far away—to make sure they could learn safe, sanitary procedures as well as discover ways to use the entire animal, with nothing wasted
  • Southwest's illustration for the Community Ovens profile (screenshot)
    Southwest’s illustration for the Community Ovens profile (screenshot)
  • A community oven project founded by the White Bear Lake, MN United Methodist Church, building community while providing a place to bake bread
  • Rooster Soup Co, a tony Philadelphia establishment that adds fresh turmeric to make soup from chicken parts that would have been thrown out; all profits fund Broad Street Ministry, a social service organization

Kent, Washington’s Ubunto, hiring and training refugees and new immigrants from many cultures, all learning each other’s food traditions

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Seth Godin’s post this morning listed “17 Ideas for the Modern World.” It’s a great list, and I recommend you click through to get the longer explanations of each one. And if you aren’t subscribed to his daily bulletin, you really should be. He’s always challenging us to find the deeper meaning, and I find that not only excites my brain but often creates action.

I engaged in dialogue with him on one of the items, and I wanted to share that with you:

Seth Godin. Photo by Jill Greenberg. Courtesy of Seth Godin.
Seth Godin. Photo by Jill Greenberg. Courtesy of Seth Godin.

 

On Sat, Jun 24, 2017 at 5:18 AM, Seth Godin wrote:

See the end before you begin the journey

I’ll add a Part 2: –but recognize that what looks like the end when you start may turn out to be a way station

That has been key for me, as projects and goals evolve the more I learn and take me to places I could not have imagined.
The work I’m doing now about connecting business with profit opportunities addressing hunger, poverty, war, climate change, etc. (and thank you once again for endorsing my book on this, Guerrilla Marketing to Heal the World) started as an insight in 2001 or 2002 that the frugal marketing strategies I’d been championing for years also created a path for business to succeed by being ethical. By 2003, I had a book out on that. If I had thought it this far out, I would have never gotten started. It would have felt much too big and unachievable.
Back then, when I described my work, I used to often hear “business ethics? That’s an oxymoron!” I rarely hear that now (maybe once or twice in the past five years) and I like to think I had something to do with that change.

These days, I find people start with “oh, you can’t fix hunger, poverty, war, or climate change, we’ve been struggling with them for thousands of years.” And then they listen for a bit. And then as I lay out a few examples of businesses profiting by changing the world, they see that it can actually work, changing one business at a time. Their skepticism turns into enthusiasm. I’d love to figure out a way to scale that up.

PS: I only count 16. Did you drop one at the last minute? I’d love to know what it was.

Warmly,

Shel Horowitz – “The Transformpreneur”(sm)
________________________________________________
Watch (and please share) my TEDx Talk,
“Impossible is a Dare: Business for a Better World”
Contact me to bake in profitability while addressing hunger,
poverty, war, and catastrophic climate change
Twitter: @shelhorowitz
* First business ever to be Green America Gold Certified
* Inducted into the National Environmental Hall of Fame
mailto:shel at greenandprofitable.com * 413-586-2388
Award-winning, best-selling author of 10 books. Latest:
Guerrilla Marketing to Heal the World (co-authored with Jay Conrad Levinson)
_________________________________________________
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Here’s a letter I wrote to US Cabinet Secretaries Tillerson, Perry, and Pruitt (State, Energy, EPA), and to Massachusetts Governor Charlie Baker (with a different subject line). Please write your own letter. You are welcome to model mine. Click to send an email directly to Pruitt and Perry and link to Tillerson’s contact form.

"I wrote a letter to the US government" (picture of handwriting)
“I wrote a letter to the US government”

As a business owner, I ask that you maintain the US’s role in the Paris Climate Accord. The Paris Accord marks a wonderful opportunity for American business to make headway against the widespread perception that European businesses are more environmentally focused. American businesses cannot win back the international market share they’ve lost to environmentally forward-thinking European companies if our own government is seen as sabotaging progress. It would not even shock me if, should the US pull out, activists start organizing boycotts on all US-based companies. Boycotts like this are economically disastrous for the US, just as similar boycotts created enormous pressure on South Africa during the apartheid years and are now beginning to affect the economy of Israel over its presence in Palestinian territories.

I am a consultant to green and social change companies, and I see the positive bottom-line impacts of meeting or exceeding climate goals over and over again. Industries have found that climate mitigation, done right, lowers costs and boosts revenues, thus increasing profitability. I recently attended a conference with speakers from Nestlé, IBM, Google, Pirelli, Coca-Cola, Paypal, clothing manufacturer VFC, and many other global corporations, and the message from every speaker was about the bottom-line benefit of greening their company. This is why companies as diverse as Monsanto, Intel, Dupont and General Mills are among the 1000 companies that signed a public letter this winter urging the US to stay in the Paris agreement.

Progress on climate will also have beneficial effects in the wallets of ordinary Americans–because it will improve health. Reducing asthma and other carbon-related diseases means more discretionary spending and thus an economic boost.

Finally, the long-term picture of addressing climate change in a meaningful way means the creation of hundreds of thousands of new jobs in the energy, manufacturing, and agriculture/food sectors as well as a more livable world for our children and grandchildren. If anything, the Paris targets should be seen as a starting point. And if the US embraces this fully and uses its technological leadership, it will create market opportunities around the world for US companies selling the technologies to make this transition.

Sincerely,

Shel Horowitz – “The Transformpreneur”(sm)
________________________________________________
Watch (and please share) my TEDx Talk,
“Impossible is a Dare: Business for a Better World”
https://www.ted.com/tedx/events/11809

Contact me to bake in profitability while addressing hunger,
poverty, war, and catastrophic climate change

Twitter: @shelhorowitz

* First business ever to be Green America Gold Certified
* Inducted into the National Environmental Hall of Fame

https://goingbeyondsustainability.com
https://transformpreneur.com
mailto:shel@greenandprofitable.com * 413-586-2388
Award-winning, best-selling author of 10 books. Latest:
Guerrilla Marketing to Heal the World (co-authored with Jay Conrad Levinson)

_____________________________________________

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Found this list of 25 “Greenest Brands in America“—but frankly, I’m skeptical.

It’s based on reader votes. In any kind of reader popularity contest, the votes go to companies the most people are familiar with—or those whose marketers actively campaign and tell their fans to go vote for them.

Certainly, all these corporations have major environmental achievements; by now, every major corporation does. In fact, I attended a conference last month that focused on the profitability case for green action. Several of these 25 had speakers. I even moderated a panel that included Coca-Cola.

But this kind of survey pushes away the small companies with smaller followings but very green practices (Interface, Timberland, Patagonia, etc.) Only two such companies made the list: Tom’s of Maine and Ben & Jerry’s, and both are owned by much larger companies.

Patagonia's fish/mountain range-shaped logo
Patagonia’s fish/mountain range-shaped logo

I was also struck by three absences I would have expected to be there: Walmart, which has done more to green the supply chain and its own operations than any other player, but whose demographic doesn’t typically participate in sustainability surveys (and which has serious issues on other parts of the social entrepreneurship spectrum, especially on labor and supplier policies), Starbucks, which talks a great line to the right demographic, but whose practices don’t always mirror its rhetoric, and Whole Foods, whose entire mission intersects so well with green practices. Also kind of surprised to see Apple included. Either they’ve cleaned up their act or people give them more kudos than justified because their products are so cool and their fan base is so strong. To go from the Foxconn scandal to being named on a Top 25 list for green practices in just over two years is quite remarkable.

Even in surveys based on research, what you measure influences your conclusions. For example, Monsanto often wins data-driven corporate responsibility awards (and loves to brag about them), yet to many food activists, its policies are anything but responsible; they would call this award greenwashing.

 

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