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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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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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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For the past 3-1/2 years, I’ve been not just thinking but taking steps to change the entire direction of my business from basic marketing consulting for green businesses to shaping profitable ventures that directly turn hunger and poverty into sufficiency, war into peace, and catastrophic climate change into planetary balance. In other words, showing how social entrepreneurship is a business success strategy that increases revenues and decreases costs. Obviously, more revenue plus lower expenses = higher profits.
Yeah, thinking big. Big enough so it took some serious time to get ready (far more than I thought it would. Here are some of the steps I’ve taken:
  • Hired a remarkable business coach, Oshana Himot, who helped me see that I didn’t have to wait until certain metrics were in place before dong this work that’s been in my heart for decades—and that if I did wait, I’d never get there. She has also worked with me on role-playing sales conversations, etc., to the point where now I really am ready.
  • Launched several new talk topics, including “‘Impossible’ is a Dare”—which I first gave as a TEDx in 2014; I’ve done it several times since, in longer (and once, shorter) formats. You can get a nice taste of it in my 4-minute demo video, if you’re interested: https://www.youtube.com/watch?v=tooSVbHQ5Ik&feature=youtu.be
  • Wrote and found a publisher for my 10th book, Guerrilla Marketing to Heal the World, and went to press (a year ago) with about 50 endorsements, Chris among them—alongside Seth Godin, Jack Canfield, and guest essayists Cynthia Kersey (“Unstoppable”) and Frances Moore Lappé (Diet for a Small Planet). The book has won two small awards so far.

    Cover of Guerrilla Marketing to Heal the World by Jay Conrad Levinson and Shel Horowitz
    Cover of Guerrilla Marketing to Heal the World by Jay Conrad Levinson and Shel Horowitz
  • Organized a very ambitious telesummit (also in 2014) that flopped utterly and made me realize I was NOT ready to go after clients in this new niche—and began to do more work to get myself ready.
  • Put up several websites to help me figure out where to put my energy: I had to develop https://transformpreneur.com and https://impactwithprofit.com before I figured out what I really wanted to say and to whom. The result is https://goingbeyondsustainability.com
  • Determined that small businesses were probably my most likely clients, but that they were not likely to have the budget freedom. Thus, I chose to go after larger companies who might sponsor me to work with their clients, suppliers, NGO partners, etc. Bought a program on how to get sponsors and created a fabulous proposal, driven by benefits to the sponsoring company, that (hopefully) will get my hired to speak and consult.
  • Created a list of ~200 companies I mention favorably in the book and hired someone to research the contact info.
  • Hired a designer to develop a log.
And now I’m finally at the point where it makes sense to reach out to those companies and see if I can get traction. I only need about three to say yes to a medium-to-large project to have a full pipeline.
To me, this is true sustainability; business has to survive—and thrive—in order to make that difference. But the business world often defines sustainability much more narrowly: as simply going green. In positioning my services, I wanted to make a statement that “sustainability,” under that definition, is not enough. It’s keeping things from getting worse, where I think we can make things better. Thus, the name, “Going Beyond Sustainability. And this logo:

https://goingbeyondsustainability.com logo and tagline
Going Beyond Sustainability logo and tagline

This, I believe, is the future of Corporate Social Responsibility (CSR): fundamentally reinventing society to better serve the needs of its planet and its people, self-funding through profitable products and services.

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Starbucks has been getting a lot of flack since announcing its “Race Together” initiative. People are mostly either calling the company self-serving or questioning why a cafe chain would want to take on an agenda that seems so unrelated to its core business.

Now, I’ve certainly criticized companies for cause marketing that seems to have nothing to do with its purpose. For example, I’ve publicly questioned why Ford has chosen to support a breast cancer charity rather than something related to, say, transportation access.

And I’ve given space to Starbucks critics like Dean Cycon of Dean’s Beans, who says the coffee giant could be doing a lot more on sustainability, fair trade, and organic.

But I actually think this time Starbucks did something sensible and good, and I was really pretty shocked at the negative media firestorm.

Consider this:

  • In the post-Ferguson climate, where black communities are showing righteous anger about police violence, race is back on the agenda
  • Many legislative bodies are imposing onerous barriers to registering and voting, ostensibly to stop “voter fraud” (which is close to zero)—but whose deeper agenda seems to be denying the vote to people of color and those with low incomes
  • As a culture, when we want to talk things over, we do so over coffee—so what better place to start a national conversation?
  • Starbucks has thousands of locations in cities—Ground Zero for the recent race incidents; thus, the company has a vested interest in de-escalating tensions and opening dialog so those stores continue to thrive, in addition to the moral grounds it cites

While writing the message “Race together” on cups ends today, Starbucks continues to see fostering dialog on race as a priority. In a public letter yesterday to the company’s employees, CEO Howard Schultz wrote,

We have a number of planned Race Together activities in the weeks and months to come: more partner open forums, three more special sections co-produced with USA TODAY over the course of the next year, more open dialogue with police and community leaders in cities across our country, a continued focus on jobs and education for our nation’s young people plus our commitment to hire 10,000 opportunity youth over the next three years, expanding our store footprint in urban communities across the country, and new partnerships to foster dialogue and empathy and help bridge the racial and ethnic divides within our society that have existed for so many years…The heart of Race Together has always been about humanity: the promise of the American Dream should be available to every person in this country, not just a select few.  We leaned in because we believed that starting this dialogue is what matters most.  We are learning a lot. And will always aim high in our efforts to make a difference on the issues that matter most.

If this is self-serving, I say we need more of that kind of self-serving.

 

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This is big: The Guardian reports from Davos that Unilever is actively considering going for B Corp certification.

If you’re not familiar, B Corp is a legal definition of a profit-making corporation set up to promote environmental and social responsibility rather than a primary goal of maximizing short-term shareholder value and damn the torpedoes. In other words, it is legally allowed to pursue the greater good, even as most corporations are restricted by law and their charters. Maryland became the first of 28 US states to pass B Corp enabling legislation, in 2010.

It’s still a new movement. Only 1203 certified B Corps exist in the world, as of late January, 2015. Unilever’s Ben & Jerry’s unit was one of the first B Corps, back in 2012—and Ben & Jerry’s CEO Jostein Solheim is leading the effort, apparently with strong support from Unilever’s sustainability-minded CEO, Paul Polman.

The B Corp certification process is long and arduous for an entity as complex as Unilever, one of the largest consumer products corporations in the world; it’s likely to take years. But just the act of engaging in the conversation is a game changer:

  • Unilever’s tacit endorsement of the B Corp movement confers legitimacy; if one of the largest and most successful business organizations in the world can embrace it , other companies will say, “perhaps we should look into this.”
  • The B Corp movement is still not very well known, compared to similar movements such as Fair Trade. With Unilever coming onboard, a lot more people in the business world will hear about it—and take it seriously.
  • It will provide Unilever with substantial marketing advantages for several years. If the company is able to harness them properly, it can expect to sway many now-neutral customers to Unilever’s vast portfolio of brands. (As a marketing and profitability consultant to green/socially conscious businesses and the primary author of Guerrilla Marketing Goes Green, I can speak with some authority on this :-). )
  • Most importantly, it will show the entire business world that corporations don’t have to be rapacious; they don’t have to put short-term gain above the earth and its citizens (human and otherwise). It could even provide major leverage to overturn the body of corporation law that says corporations are legally required to put short-term profit ahead of all other considerations. And since most business people actually do want to do good in the world and many have felt burdened by this charter, this could create a seismic shift throughout the entire business community. (Some on the hard left will disagree that most business people actually want to do the right thing. Go ahead; the comments field is waiting for you.) Of course, there are a myriad of profit-making opportunities out there for activist companies willing to create and market goods and services that meaningfully reduce hunger, poverty, war, catastrophic climate change, and other suffering—you don’t need to be a B Corp for that. But as B Corp certification slowly becomes the default, it will speed that change.

In short, I’m heartened and excited by this news, and wish them success.

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“Imagine Walmart doing distribution for food banks…in which The Gap runs thrift shops…in which The Home Depot is involved in rebuilding.”

This challenge comes from Ron Shaich, CEO of Panera, as he closes a wonderful talk at Sustainable Brands about Panera Cares, a series of pay-what-you-want stores aimed at alleviating hunger. So far, his first charity store, in St.Louis, is more than self-supporting, and they’ve opened a second location in Dearborn (metro Detroit)—both in economically diverse neighborhoods. The idea is that some who can afford it will pay more than the suggested amount, subsidizing those who pay less. And so far, it seems to be working.

Great to see this sort of abundance-based thinking from the CEO of a major restaurant chain.

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