Corporate Sustainability

Don't Let Skepticism Stifle Your Interest

Monday, January 30, 2012 by Jacquelyn Ottman
green washing

Ask businesses why they don’t tout green achievements more often, and their answer will likely be fear of greenwash.

Before you let such fears deter you from making investments in sustainable technology or promoting your green achievements, consider how difficult it is for any advertiser to gain consumer trust.

Consumers have always been skeptical of advertising. Take the food industry, for example. Food brands have long been under government scrutiny for their advertising claims. Today, companies are getting smeared for overpromising health benefits, leaving consumers confused about what’s actually true. But we don’t call that “food wash.”

As I write in my book, The New Rules of Green Marketing, skepticism is so rampant in all industries that consumers trust each other more than they trust brands, ads and media messages in general. That’s one reason social media is soaring right now.

Skepticism is par for the course. Besides, a little skepticism is good – it keeps us on our toes. The now “Wild West” green marketplace will mature. But as is the case for many established industries, the potential to screw up will always be there.

So, proceed with caution. But for the sake of the planet and your business, do proceed. The following strategies will help you avoid greenwash and gain competitive advantage in the process:

1. Walk your talk.

Thwart the most discriminating of critics by visibly making progress toward measurable goals. Being proactive in responding to the public’s concerns and expectations starts with a visible and committed CEO. That’s because CEOs can create an emotional link between the company and its customers. Empower your employees, too. Educate them on environmental issues and the specifics of their company’s processes so they can fuel authentic communications about your company’s green initiatives.

2. Be transparent.

Provide access to details about your products and corporate practices, and continuously report on your progress. In the future, disclosure of environmental impacts may be required by law. Get a jump on competitors and regulators—and score some points with consumers—by voluntarily disclosing as much as possible. During this process, don’t hide bad news. Acknowledge your weaknesses and explain how you’re proactively trying to improve.

3. Don’t mislead.

Be specific, prominent and comprehensive so as not to confuse. Consumers may claim to know what commonly used terms such as “recyclable” and “biodegradable” mean, but they can be easily mistaken—creating risk for unsuspecting sustainable marketers.

The best advice for green marketers is to adopt specific standards for disclosure of green initiatives and to follow the FTC Green Guides or other appropriate government guidelines. If possible, consult with lawyers who specifically address green claims.

4. Enlist the support of third parties.

Let stakeholders in on the steps you’re taking, and educate the public on how they can help. You can also align positively with third parties that perform independent life-cycle inventories, certify claims and award eco-seals. Certifying your product under appropriate eco-labels lends credibility to environmental messages. When choosing eco-labels, be sure to choose wisely based on how relevant the label is to your brand image. If your product has multiple eco-labels, make sure the standards for each do not conflict with one another.

5. Promote responsible consumption.

It’s one thing to design a product to be greener, but you can’t minimize impact throughout the total product life cycle unless consumers eventually use and dispose of your product more responsibly. Enlisting consumer support for responsible consumption is a sure-fire way to build credibility and reduce risk. Products can be designed to make it easier for consumers to minimize resource use. In turn, people will appreciate your efforts to make responsible consumption more manageable.

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Jacquelyn Ottman is the founder and principal of J. Ottman Consulting, Inc., an expert advisers on green marketing to consumer product marketers and U.S. government labeling programs. She is the author of four books on green marketing, including the recently released The New Rules of Green Marketing: Strategies, Tools and Inspiration for Sustainable Branding (Berrett-Koehler, 2011).

Download a free chapter and get more information here.

LOHAS Trends 2012

Saturday, January 28, 2012 by Ted Ning

After reviewing the numerous trend articles out there and considering my own perspectives I have put together some that I think are relevant to LOHAS. Here are a few that I feel are relevant for the coming year:

1. Whiskey is for Drinking, Water Is for Fighting Over
droughtThe famous Mark Twain quote will become more prevalent in society as new realities of its scarify will become better known to an ever growing global thirst.  Everyone will talk about it but few will do anything. Sadly, it may only start to take off if humanitarian crises hit.  A focus on water use is an admission that climate change is our new reality and it's time to start managing its effects. The material risks associated with increased droughts and flooding will be among the most poignant effects of climate change. You may already be talking about this with the lack of snowfall around the country during the early part of this year.

2. Capitalism as We Know is Changing and it Should
Since the Industrial Age, businesses have built their wealth off of the extraction of natural resources. Unless businesses start to value and protect these resources, this cycle will have a devastating impact on the lives of our children and grandchildren.  Richard Branson echoes this sentiment and also believes it cannot survive in its current model. This can also cause possible ecoflation that was identified in 2008.  Many people are beginning to realize that business as usual is no longer an option. What is an option is to reinvent capitalism to truly be a force for good in the world. Certification groups such as FairTrade and Benefit Corporation are working to use the power of business to solve social and environmental problems.  The current changing economic scene provides unique opportunity for innovation and success in unconventional settings. The sky is the limit as new ways to do better business are taking root everyday.

3. Blurring the Differences Between “For-Profits” and “Non-Profits”
nonprofit forprofitThere has been a surge of entrepreneurs providing innovative business solutions with the purpose of “doing good”.   In these tumultuous times where unemployment is high many are turning their backs on the job fairs and putting their efforts into creating new businesses that fill needs such as TaskRabbit, and Viatask.   Non-profits will incorporate more for-profit business models into their programs. There is a strong growth in social entrepreneurialism globally and this will increase with the emergence of new solutions for world issues. Groups like the Social Venture Network, Sansori and Unreasonable Institute will increase to provide resources for start ups. Social enterprises will encompass the very definition of business and 2012 will be an important year.

4. Gamificating Your life
Expect and increase in the game addiction methods to make a world a better place this next year. Game and point system rewards programs such as My Recycle Bank , My Energy and Greenopolis will see newcomers such as Ecobonus that rewards points to green and organic shoppers. More smart apps will be provided for LOHAS shoppers and energy efficiencies for homes and automobiles. 

5. Evidence Based Sustainability
Proof of sustainability will be emphasized more than ever as businesses will seek cost effective measure to reduce bills and be a good environmental citizen. Purchasing departments will be requiring vendors to document how they address sustainability issues within their own businesses will become more commonplace. As facilities and businesses increasingly operate in a more sustainable manner, they will turn to "dashboard" systems to help measure, manage and report progress.

6. We'll All Want to Plug in to Plug-in Hybrids
plugin hybridHybrids are not new but the latest improvements in technology will allow them to be more affordable to the average consumer. If electric cars like the Nissan Leaf and Chevy Volt are the trail-blazers, plug-in hybrids could be the game-changer the auto industry has been looking for. The prospect of a car than can travel distances of up to 40 miles using electric power before switching to a gas engine for longer journeys promises to overcome the biggest objection to electric cars: the fear the battery will run out mid-journey.  Design also looks exciting. We only need to look into BMW i8 roadster concept and visualize where this might take the car industry in near future. The high profile Vauxhall Ampera and Toyota Plug-in hybrid will create a lot of buzz this year and assuming the cars offer reasonable performance they could quickly become the default option for green-minded motorists and cost-conscious fleet operators

7. More Fun with Sharing Stuff
Sharing will not only be a part of social media but of reality. Considerations of downscaling due to financial, lifestyle reasons or social pressures will increase in sharing the excesses of the past decade as we become more conscious of what we have that we don’t use that others can borrow. Rent Stuff, Loanables andRent Stuff Easy allow you to do exactly what they say to others online.  A while back Sharable listed eight ways to share your stuff. That's about few of those thousands of ways of giving your stuff (or money) away for charity. Couchsurfing connects travelers with people who offer their homes as an economical place to stay. Rising oil costs will put pressure on transportation and the demand for shared and public transportation. Transportation share programs such as Zipcar, Bixi or Bcycle will increase. In four years the number of registered users have gone up from less than one million to more than four million. By Carpooling shared trips have gone up from less than three million to almost eight million.
 
8. Responsible Profitability Attracts Attention
Responsibility has been strongly associated with greater profitability, equity and asset returns, and shareholder value creation. But that’s no longer good enough. Today, the bar is being raised; success is itself changing. Companies are beginning to be judged against a whole new set of criteria by customers, governments, communities, employees, and investors. They’re already saying, so you made a profit. Yawn. Did you actually have an impact? Did what you do have a positive, lasting consequence that was meaningful in human terms? Several studies have provided evidence suggesting that betterness yields greater equity returns, asset returns, and profitability. This not only makes sense for those who are mission oriented but also for risk management.  One recent study found Firms that score strongly in terms of corporate social responsibility (CSR) find that their cost of equity capital financing is consistently lower than firms with weaker CSR track records. Responsibility fuels outperformance because it is risk management: better insurance against adverse future events.

9. Emphasis on Corporate Culture
Successful startup companies such as Method, Zappos and New Belgium Brewery are all preachers of their unique culture developed around their workplace. They preach not to chase the profits but to chase the dream. Engaging employees as a collective of ideas and not compartmentalization is a new form of corporate structure. It is not just about the fun office parties and surroundings but understanding the larger mission of the company and empowering employees. Creative agencies and culture builders have seen the need to train and educate companies on these emerging traits that are attractive for the young new work force.

10. Natural Disasters Will Continue
Expect your homeowners insurance rate to rise in 2012 as weather related damages cost $70 natural disastersbillion in U.S. economic losses in 2011.  All the indicators on climate risk are pointing the wrong way.  The financial and human cost of extreme weather and climate-related disasters is on an unmistakably upward trend. Meanwhile, our energy infrastructure remains as risky as ever with the Fukushima disaster following the BP oil spill in highlighting how fragile our energy supplies really are. It is a safe bet that 2012 will again be marred by a large-scale environmental tragedy of one form or another. Meanwhile, sensible businesses and policymakers will start taking climate adaptation more seriously.

References for these trends are:
Ecopreneurist.com
Taombo.com
Greenbiz.com
Huffington Post
PR Newswire

Are there any missing? Let me know what others trends you forsee for 2012 and LOHAS.

Delivering Happiness

Tuesday, December 20, 2011 by Ted Ning

Tony HseihI recently attended a conference where the keynote speaker was successful entrepreneur Tony Hsieh, CEO of the successful online apparel shop Zappos.com. In 1999, at the age of 24, Tony Hsieh sold LinkExchange, the company he co-founded, to Microsoft for $265 million. He then joined us as an advisor and investor, and eventually became CEO, where he helped us grow from almost no sales to over $1 billion in gross merchandise sales annually, while simultaneously making Fortune magazines annual Best Companies to Work For list. In November 2009, Zappos.com, Inc. was acquired by Amazon.com in a deal valued at $1.2 billion on the day of closing. I was very interested to know what makes Zappos so unique.

Tony shared with the audience that he views things differently than most. He perceives Zappos as not a shoe company but rather a service company that happens to sell shoes. One of the key things I heard Tony say was that they take funds that are typically set aside for advertising and apply it to customer service. In 2008 over $1 billion of sales was done with repeating customers and word of mouth. What was it that makes people come back to buy things at Zappos? Tony stated it was because they consider customer service as the number one priority. This is nothing new to sales and marketing.  I think we have all heard this before but what Zappos does differently is apply it to their corporate culture. Instead of viewing customer service as what the customer receives they view it as to what the customer experiences. Because Zappos is an online store their phone service is vital for success. They have their number in big numbers on every page of their website so people can easily find it and call. They recognize that the customer service must be good. But the people who call don’t often result in a sale and this is not the focus of the call center. Instead Zappos uses the call center as a branding opportunity. Yes sales do happen through the call center but that is not the call center’s primary focus. This is a very different way of looking at a call service center. They also provide overnight shipping anywhere in the U.S. They recognize this is expensive but it adds to the customer experience and out paces competitors. Zappos considers the extra costs as a marketing cost rather than an additional expense.

Corporate CultureYou would think the mantra in the company is all about customer service. It is a strong component of what Zappos is all about but the larger priority is creating a strong corporate culture and they work on maintaining, nurturing and protecting it. Zappos human resources department has an interview on culture for new employees to see if they are a good fit. Once they are accepted by Zappos the new hires go through a 5 week training course and once the training is complete they are given a choice to either join the company or be given $3,000 on the spot to leave. This process weeds out those who are focusing on the paycheck and not committed to the Zappos culture. Internal annual performance reviews value 50% based on culture and growth within the company. They want employees to contribute to the success of the Zappos culture with recommendations and initiatives.  All new hire training covers history of the Zappos culture and experience in their call center.  Customer service is not just a department but part of the whole company. All have to answer calls and understand the skills it takes which include executives, accountants, IT and other non-customer service related departments. When customers get the perfect fit of all of these it equals happiness. If customers get what they want and have a tremendous experience they feel happy. Therefore Zappos believes they are delivering happiness.

Zappos created 10 core values for their company. Tony stressed that it is important to not make these values meaningless. They must be committable core values. At Zappos they are used for hiring and firing people.

Here are Zappos 10 Core Values:
1. Deliver WOW Through Service
2. Embrace and Drive Change
3. Create Fun and A Little Weirdness
4. Be Adventurous, Creative, and Open-Minded
5. Pursue Growth and Learning
6. Build Open and Honest Relationships With Communication
7. Build a Positive Team and Family Spirit
8. Do More With Less
9. Be Passionate and Determined
10. Be Humble

This results in every employee living the brand alignment of value and in doing this it equates to long term sustainable growth. Zappos is now educating other companies on culture with online tools and seminars. Recently a refrigerator company has gone through the training and have seen their sales increase.

Another ingredient for success is to focus on a higher purpose beyond profit. It is important to think bigger than money and focus on what motivates you? Create that vision and chase the vision not the dollar. Perhaps it is being a good parent or good citizen. Tony stated in his talk, “Don’t chase the paper, chase the dream.”

He also pointed out the difference between motivation and inspiration. Motivation can be used to a point and makes up a large part of how leaders relate to their teams. But there also needs to be elements of inspiration that tap into the deeper and stronger soul energies of a person.

With today’s technology and digital aspects of sales there is a difference with high touch compared to high tech. High tech provides broader and faster access to customers and is a good tool. But it is only a tool. High touch provides an emotional connection with people to ensure their experience with a company is top notch. Zappos focuses on the high touch because it believes it makes customers happier. An example of a company that does this well is Cirque de Soleil. They are not in the circus business they are into the experience and emotions business.

Zappos is currently creating a new community building imitative in Las Vegas where they are based. Rather than go the Nike and Google campus model Zappos will integrate their main headquarters into the existing local community and use existing buildings. They plan to build residential businesses and use existing areas to build other business opportunities around Zappos with the Zappos mission. They offer daily tours of their headquarters to anyone interested. They will pick you up from the airport and share their story with anyone willing to listen.

Tony said according to happiness research we are really bad at predicting what will make us happy. For example most think that winning the lottery will provide happiness. But studies have shown that many winners are not happier than they were before. In fact in some instances it has caused more problems than benefits.

Why is happiness so mysterious to attain? It is because our current society messaging values perceived control and progress which are to demonstrate accomplishment which we are told will make us happy. Instead we should focus on connectedness and meaning which give us a sense of community, well being and contentment.

There are three types of happiness:  1. The Rock Star lifestyle with riches and fame where everyone loves you and what you do. This is very rare.  2.  Flow which is when someone is in synch with their challenges. Athletes talk about this when they are in the zone. This is not as rare but more sporadic and based on the correct circumstances. 3. A clear understanding of meaning and higher purpose. This is something that can be called upon from an individual at all times and anywhere. This is much more long lasting and sustaining.  

But people always aim for rock star.  We should reverse our efforts – meaning, flow, rock star. Once we do this happiness will ultimately follow.

American Ingenuity

Friday, November 4, 2011 by Ted Ning

Contributed by Scott James

EPA designThis month I spoke with Matt Bogoshian in DC. He is the Senior Policy Counsel for the Environmental Protection Agency. One of the ways I reconcile being apolitical and staying as far away from DC as possible is because I know I have kindred spirits like Matt fighting the good fight there. He works quite a bit with businesses, so I asked him about CSR this month.

Scott: Tell me about a company that is doing something in CSR that would be a model for the future.

Matt: Staples and Wegmans are two recent examples who, in a partnership with us, worked collaboratively with the thermal paper manufacturers to explain that a key to their business model is supplying products that people want to buy because they are safe and healthy. The retailers convinced these suppliers that thermal paper with bisphenol A (BPA) does not meet their needs as it is associated with adverse effects in the environment and may be problematic for people. Thanks to these business leaders, the EPA is now examining 19 alternatives to BPA with the active engagement of the full supply chain.

Scott: So Staples and Wegmans have made a real commitment to that project.

Matt: Yes. I’d like to see a corporate model for the future that incorporates sustainability much more broadly and deeply than what some might consider CSR being capable of doing.  Model companies in the future will be ones that make more money than their competitors by producing products and services that directly or additionally address social and environmental needs.

Scott: Tell me about a specific CSR effort in another country you find inspiring, that could serve as a model for the US.

Matt: Our sustainability efforts with American manufacturers routinely afford us an opportunity to see the positive effects of corporate sustainability efforts both domestically and abroad. Take Steelcase Furniture in Grand Rapids, Michigan as an example. Under our Green Suppliers Network program – which is designed to improve manufacturing supply chains’ process efficiencies and environmental performance – we’ve seen their sustainability efforts result in $1MM+ annual savings for seven of their powder coating lines. Steelcase has now taken these lessons learned and is applying them to their operations in Germany, France, Mexico and China.

We also watch with interest the water conservation efforts of Coca Cola and other large corporations as they demonstrate sound corporate social responsibility for water conservation in India and other countries.

Scott: And how about the other way around? Is anyone internationally watching the US for CSR inspiration?

Matt: Yes, sometimes we learn from our friends abroad about efforts underway here in the US which inspire them, and give us extra energy to expand what we have already begun to do. Brazil, Chile and Singapore were excited to find out from us about one of our newer efforts called E3, which stands for Economy, Energy and the Environment. E3 draws together the resources of five U.S. federal agencies, the utility industry and local communities who then work together to help tune-up factories to reduce wasted time/motion/material/energy to help them become more profitable and sustainable at the same time.

Scott: Wow. That’s a lot of coordination! Tell me another example of what we are doing right here in the US.

Matt: Well, the EPA has a mark, a label called Design for the Environment (DfE). We evaluate products that have been designed or reformulated to contain safer chemicals and allows these products to display the label.

More than 500 companies with serious CSR leadership have reformulated more than 2,700 products to meet EPA’s stringent, science-based criteria so that their products can display the DfE label. They do this because they see a substantial return on their investment and the DfE label opens doors to new markets.

Scott: What new markets?

Matt: States and municipalities adopting green purchasing requirements, retailers who demand greener and safer products to enhance their sustainability profiles, and citizens who want products that are safer for their families and the environment. Companies large and small – from Colgate-Palmolive, Clorox, S.C. Johnson to Jelmar (CLR products), Phurity and Earth Friendly Products – are willing to invest heavily to earn the DfE label. DfE also fuels innovation among chemical manufacturers, such as BASF, Dow, and Akzo-Nobel, who have developed chemical ingredients to meet the stringent DfE criteria for use in DfE-labeled products. So in addition to gaining new market share, the DfE label helps companies meet independent sustainability measures like the Dow Jones Sustainability index.

Scott: OK, let’s talk about where we could improve. Could you illustrate one of our failures and what we can learn from it…where we are not succeeding as much as we could?

Matt: We have collectively failed to build genuine American consensus between citizens, businesses, governments, NGOs and others that ensures America will continue to be the leading economy and example for decades to come. The world is evolving from the agricultural, industrial and information ages toward the age of sustainability and we want to continue to lead in this new age. The good news is that useful lessons can be drawn from the many innovative sustainability efforts already underway by people and organizations throughout the nation.

Scott: In that vein, what question are we not asking ourselves that we should? And what would you imagine the results to be if we did ask ourselves that question?

Matt: We should be asking ourselves, “Is there a smarter, more sustainable way, to make and grow the things we need?” Sticking with the manufacturing sector as an example – with the possible exception of the electronics industry – many manufacturing processes have changed little over time. This may be due to unchanging manufacturing specifications, economic uncertainties or just plain human reluctance to change. Whatever the reason, these barriers are man-made and must be overcome.

If we answer that question with American ingenuity and innovation, we will see our manufacturing sector grow and lead our economy toward the kind of long term strength and prosperity we have come to enjoy for so many decades.

Mindfulness in the Workplace

Monday, October 24, 2011 by Ted Ning
Meng and I Ted Ning LOHASI recently had the opportunity to present at Naropa University in Boulder with Google’s Chade Meng Tan who has a job that I wish I had. He gave me his business card and his job title is Google’ Jolly Good Fellow (which nobody can deny). Really! He is one of the earliest engineers hired by Google and his job description is "Enlighten minds, open hearts, create world peace". I had a chance to speak with him about his role and his goals. The guy is a real gem - funny, unassuming and very approachable.

How did you come up with your job description?
One of the unique work policies at Google is the ‘20 percent time’. This means that throughout your work time at Google they allow employees to work 20 percent on anything that they want. One day I went on a walk and decided that I want to work on world peace through compassion.

That is great. Many people have dedicated their lives to this cause. How does yours differ?
My approach is a little different since I am an engineer and hardwired in logic and practicality. I want compassion to be a part of modern day living in the U.S. I believe that in order for this to take root it needs to have proven positive results.

Wouldn’t we all? Do you have an example of this?
In 1927 Harvard created the fatigue lab and wanted to study exercise to prove exercise is healthy. At the time this was thought of as nonscientific and no one would support the funding of the research. The only support they got was from the Army. The study had some amazing results and found that a fit person is a fit person is physiologically different from an unfit person. Today health is universal and everyone knows the following: 1. Everyone knows health is good. 2. All know how to get fit and information is available and accessible. 3. People can do it at work. 4. It is completely integrated into society. My goal is to apply the same principles to meditation.

That would be great! There are plenty of people who are stressed at work don’t you agree?
Yes indeed. At Google people wear stress as a badge of honor to show how strong they are and how much they can endure. I want to change the concept of stress reduction to a model of success. I want to create this to be customer focused and the by product will be world peace.
Meng at Naropa
So world peace is a bi product and not the focus?
Yes mindfulness leads to emotional intelligence. Emotional intelligence, if properly trained, leads to inner peace, inner joy and compassion.  All 3 are  needed. Inner peace alone will not do it. You must have all 3 at a global scale.

How do we implement this?
At Google we have the motto launch early and launch often. Some other engineers and I sat in the room trying to figure this out. We created the ‘Search Inside Yourself’ initiative and a building authentic relationship course and empathy course. This helped create the Google University.

Impressive! What does the ‘search inside yourself initiative’ teach?
The search inside yourself initiative focuses on attention. A calm and clear mind creates the foundation. How this is done is through mindfulness. Moment to moment non judging attention. A study was done on the brain. The amygdala is part of the brain that contains our emotions. If you perceive a threat your amygdala takes over. People with mindfulness training can downgrade the amygdala take over. When meditating we are calm and joyful. This joy is non energetic, is highly sustainable and subtle therefore takes a quite mind. This inner joy can be called on demand. Happiness is not what we pursue but what we allow.

And what do we do with our attention?
We create what I call ‘high resolution perception’. This causes subtle changes in process of emotional perception. We can experience the detection of emotion and create the option of choice. This leads to emotional mastery and develops confidence. Body emotional awareness increases empathy. Empathy reflects others emotions in and on my body and therefore I can view the emotional process. Emotions are physiological processes, and recognizing that allow us to change from ‘I am angry’ to ‘I am experiencing anger in my body’. The emotion is not a part of being. Kindness and goodness are mental habits. Compassion fosters habit of helping others. These are trainable. If you want to be happy change your interactions with others. What you think you will become.

How do you bring this to the corporate world?
We must bring science and statistics to it. We need to own the knowledge and be customer oriented and meet people where they are in order to have it be applied to daily life easily.

How can it be communicated in business to those who don’t believe in the theory or think it is too strange?
There are 3 things that need to be implemented to be affective. The first thing is the correct language. Language is extremely important. We cannot go beyond the current level of expertise of people or it will be over their heads. At Google ‘deeper awareness’ training has been reworded to ‘high resolution perception’ training. This is much more acceptable to employees and human resources department. Remember human resources is coming from a place of caution and risk prevention for the company. Therefore you need to have empathy for their point of view in order for them to support a companywide initiative. Secondly, we need to use the minimum affective dose. If we overdose we will push people away. We teach people a simple 2 minute meditation exercise. This is about the same amount of attention time that my 12 year old daughter has for this so I think it is a short enough time for people to practice. Thirdly, is to get an appropriate instructor. You need someone with a deep practice who owns the science and provides credibility and speaks the language of the audience. Saving the world will fail as a goal. But if you work on mindfulness and compassion it will be a byproduct of the end results.

How A Serial Entrepreneur Found Success By Practicing Responsible Capitalism

Thursday, October 6, 2011 by Ted Ning

by Scott James

Raising EyebrowsThis month I spent time with serial entrepreneur Dal LaMagna to ask him about his new book, “Raising Eyebrows, A Failed Entrepreneur Finally Gets It Right.” He’s been called an irrepressible capitalist (among other things) which made for an interesting conversation.

Scott: In your book you suggest that you were more successful with your company than you would have been had you not followed principles of Corporate Social Responsibility.  Talk to me more about that.

Dal:  Building Tweezerman as a company that practices what I call “responsible capitalism” resulted in a team of competent, happy employees, loyal customers, satisfied vendors, and a community that supported the company as much as the company supported the community.

Scott: I see the positive upward cycle of that. How did that contribute to your success?

Dal: My definition of success is the quality of life the company provides for me and for my employees.  As the company grew my empowered employees – a critical element of CSR – took over, and my work became more strategic and less mundane. I didn’t have to sell, collect money, go to trade shows or worry about much except the strategic trajectory of the company. Had it been up to me alone I would never have grown Tweezerman to a 65,000-square-foot facility with 250 employees. When you run a business that takes care of its employees, its vendors, its customers, and its community…well, all these stakeholders then take care of you.

Scott: What were the salient CSR practices that you felt made the difference?

Dal:  Employees sharing in the profits made a significant difference; after a trial period every one of them became shareholders in the company. We promoted from within and hired from the community. When things went wrong we concentrated on solving the problem rather than pinning the blame. We provided health and job security. It took the agreement of at least two of the top three managers to fire someone which we did rarely.

Scott: And how about outside of the company?

Dal: We respected our vendor’s right to make a living and did not exploit them. For example when we were late paying bills we added interest to the payment (equal to what we would have paid our bank).  We gave back 5% of our profits to the communities we served. We had a lifetime guarantee for all our products and didn’t even charge shipping when we repaired or replaced them. Over the years we found that people cared more and more about the kind of company they were doing business with. Loyal customers, vendors, and workers made a big difference during those times over the 25 years especially when things got tough.

Scott: I’ve heard you say several times that you sold your company for much more money because it practiced responsible capitalism. Why?

Dal: The company that acquired Tweezerman paid more because our brand had a great reputation not only for quality but also for practicing CSR. We developed employees who were empowered people from the President down to the worker who cleaned the bathrooms.  We delivered a turnkey operation. The company that acquired us, J.A. Henckels, a division of Zwilling, only needed to send in two people, a CEO to replace me and a CFO to work with our existing CFO to match up reporting to the home office. Initially eight bidders were involved and through mutual eliminations we ended with the one whose policies of CSR most closely matched our own. We sold the company for about 14 times earnings and 1.5 times sales.

Scott: Would what you’ve done – establishing Tweezerman as a CSR company – work for any company?

Dal: Every company is different, but I believe that most companies can benefit from some CSR practices. Part of being a CSR company involves paying a living wage. I would think that a company that sells a commodity would have difficulty in paying this. I had the capability to pay my employees well, provide benefits, share profits, make charitable contributions, and more because I created a brand, which commanded a solid profit margin.

Scott: What about the international aspects of your company?

Dal: How your company treats the supply chain is a crucial aspect of CSR. We paid a living wage in India (of course much lower than what a living wage is in the U.S.) and operated our factory responsibly. We paid our China supplier more money so they could improve working conditions for their employees. If your business model is to exploit foreign labor you are not a CSR company. The marketplace is constantly punishing companies that have a product that can be easily replicated. If you are the kind of person who wants to get more out of your company than money, and strives to build a company that practices responsible capitalism, then avoid situations such as unreasonably tight profit margins that force you to exploit everyone and everything to make your company work.

Top LOHAS-ish Fall Conferences for 2011

Thursday, August 18, 2011 by Ted Ning

LOHAS crowdHere it is mid August and already I have to start working on my conference attending schedule for the fall of 2011. It seems like I have to do this earlier and earlier each year primarily because there are so many LOHAS oriented conferences being added or are catching my attention that I did not know of before. I have done a post on what events I think are important the past 2 years and here is my 3rd installment of top green/health and wellness/social enterprise/sustainability/leadership conferences worth considering as you plan your conference schedule for the fall.

For those new to the conference scene, there are two seasons – fall and spring. There are associations and organization that provide 1 or 2 events a year usually during those months. This is primarily because summer is a time when many set up personal vacation time and winter has more holiday time and weather issues.

Conference strategy
In determining which event is best for you take a look at the speakers and topics that will be presented. It is also important to look at the sponsors and how the event is presented via the event website. This will give you a feel on the type of companies that will be attending the event and what type of audience the event is trying to attract. By viewing the agenda content you can get an idea on how in depth they plan on going on topics. Also look at the networking opportunities that are in the program. Some events consciously embed them in the program via receptions, meals and outings and others do not. It is really up to you to make the best of the time for your own networking purposes.

On site
I find attending events to be incredibly stimulating. However I also find them to be extremely exhausting. Make sure you eat right, drink plenty of fluids, keep to a good sleep schedule and maintain a steady energy balance. For the large trade shows make sure you wear comfortable and supportive shoes for those hours on the exhibit floor. There are plenty of after party events to attend at which you can have some great business talks. It is up to you to make sure you know what formula works best for you. Set up meetings in advance if you can. That way you have some anchors to build the rest of the day's plan around and not get too lost in the shuffle of things - especially if they are large trade shows.


Leadership
Women in Green - August 30-31st Santa Monica CA
Focuses on women in leadership positions that promote green business. Although all the speakers are women you don’t need to be of the double X chromosome to attend. This is the second year of the event and according to people who attended last year it was about 200 people. This year there should be more.

Conscious Capitalism - OCT 12-14 Austin TX
You need an invite to attend this prestigious event that brings many CEO’s together to discuss conscious leadership within organizations. It is a relatively small event with around 200 attending. John Mackey of Whole Foods co-founded this and has people ranging from the CEO of the Container Store to Jean Houston speaking on how business can drive conscious change.

Green
Green Initiatives Conference Sept 29-30th Ft Lauderdale FL
A new event on my radar that has some interesting presenters and sponsors. The event team that is putting this on look like they have a tech background and may be one of the main focuses of the event. There are larger corporations participating such as DOW, HP and Coca Cola. It looks like they will focus on sustainability within larger companies and case studies from experiences.

SXSW Eco Oct 4-6 Austin, TX
SXSW music festival looks to sing a new green tune this year with the addition of a green event. Former LOHAS speakers who will be presenting include Simran Sethi and Philippe Cousteau. This is thier first year and the B2B event looks interesting. A great idea tagging it onto SXSW.

Opportunity Green Nov 9-10 Los Angeles, CA
OG is in its 3rd year and brings together green business and sustainable design in LA. They have about 800 attendees from all walks of life – corporate, entrepreneurs, media and of course Hollywood. They hold a great green design competition and it is a high energy event with interesting sessions and booths ranging from LED lighting for studios to BMW to water filters.

BSR - Nov 1-4 San Francisco, CA
The big one for the larger corporations that has been around a long time focusing on the corporate responsibility of multi-national corporations. Last year they had over 1000 in attendance. If you are looking to connect with the bigger companies on CSR initiatives this is the one to check out.


Funding and Finance
SOCAP Sept 7-9 Fort Mason, San Francisco CA
A vibrant event focusing on investing into social entrepreneurship. This event brings together large funds and banks with social entrepreneurs. Competitions on business plans are submitted ahead of time for a competition for funding and there is great education on raising capital for the startup and social enterprises.

SRI in the Rockies OCT 2-5 New Orleans, LA
A flagship event for social responsible investing(SRI) that brings SRI funds together with financial advisors. They also bring in a mix of speakers who focus on humanitarian, social and environmental impacts such as Jane Goodall, David Bornstein, Hunter Lovins and Bill McDonough. If you want insights on SRI and where it is headed this is THE event to attend.

Slow Money OCT 12-14 San Francisco, CA
Slow Money is a network of food activists, investors and entrepreneurs who nurture a range of conversations in order to actively develop funding and investment channels for local and sustainable food enterprises. Like Slow Food, they have local gatherings and a larger main event promoting a slow and steady investment into businesses who are seeking an alternative to the conventional Wall Street type investor.  Speakers include David Suzuki, David Orr and Vananda Shiva.

Investor's Circle OCT 26-27 Philadelphia, PA
A membership organization that  support a great entrepreneurs that are addressing social and environmental issues. They look at 10-15 high impact deals that are seeking investment.  They also provide a due diligence process that starts once the event is complete. It is about 200 people in attendance who are angel investors, fund managers, family office managers, foundation executives and trustees, wealth, financial and philanthropic advisers and their clients and other accredited investors.

Industry Specific
EcoTourism and Sustainable Tourism Conference Sept 19-21st Hilton Head SC
With over 30 inspiring sessions, 50 leading industry partners, and impactful and engaging keynote presentations, the ESTC 2011 (Hilton Head Island, SC, USA, September 19-21, 2011) sets the platform for ongoing dialogue promoting innovative ideas and practical solutions, driving change in global tourism.

Expo East Sept 22-24 Baltimore MD
Attended by as many as 25,000 industry professionals and featuring thousands of exhibits, Natural Products Expo East is the largest natural, organic, and healthy products trade show on the East Coast. With the newest and best-selling products and branded ingredients available this show features the best in organic at All Things Organic/Organic Products Expo-BioFach America, offers an extensive retailer training program and provides an advocacy platform through a strategic partnership with Natural Products Association East. Natural Products Expo East is ranked as one of the top 200 tradeshows in the US.

Greenbuild Oct 4-7 Toronto Canada
Greenbuild is the green building industry's can't miss event. It's where we go to learn about what's new in green building practices through the extensive educational sessions, see the latest technology and innovation in the exhibit hall, and perhaps more importantly, where we go to do business.  Greenbuild is a one-stop shop for credential maintenance. From pre- or post-show LEED workshops to sector-specific summits, from green building tours to concurrent educational sessions, you will find the education you need at Greenbuild. Most sessions at Greenbuild will be approved for continuing education credits for LEED and other professional credentials, allowing you to maintain your credential with ease.


Beauty/Wellness
Natural Beauty Summit Oct 6-7 NYC
This is a smaller and formal event for the natural and organic beauty industry that brings together the mission driven companies such as Dr. Bronners and Weleda with the larger corporations such as Este Lauder, L’Oreal and Avon. It is more of a lecture format and a lot of presentation intake. If you are a data hound you will get your fill. If you are a networker you will need to work for it but there are good connections to be made. The group is a bit insular if you are an outsider but if you are seeking to enter the luxury skincare market it may be worth considering.

Green Spa Network - Oct 9-12 Sundance, UT
This event is made up of a group of spa resorts and products that want to go the extra mile in promoting green efforts in the spa industry. The event has about 100 passionate people who want to move the spa world in the direction of holistic and sustainable integration. They are a very open and friendly group that welcomes newcomers (and new members). Plus the events are always at pristine green resorts.

ISPA - Nov 7-9 Las Vegas
If you are in the spa industry you have to go where everyone goes which is the International Spa Association Conference. Every other year they have their annual event in Las Vegas which brings investors, products and service providers, spa techs and directors together. This is THE most well groomed event I have ever experienced with exhibitors providing facials, teeth whitening and massages. There is good data provided on the spa world and great sessions specific to spa owners and employees. ISPA provides great data on the spa market as well. 

Social Venture Network Oct 27-30 Philadelphia, PA
SVN is a membership organization of successful social entrepreneurs ranging from Ben Cohen and Jerry Greenfield, creators of Ben & Jerry’s, to Van Jones, former Green Czar to Obama, to Tom Szaky founder of Terracycle. It mixes sustainability with community building and innovation and a ton of passion. You can’t leave this event without 2-3 bonding hugs. It is a great place to seek mentorship, collect ideas and also potential funding from successful entrepreneurs and community leaders who are interested in helping others. This overlaps with the Investor’s Circle previously mentioned.

Net Impact Oct 27-29 Portland, OR
Net Impact is a large event that brings 2500 students and corporations together. They have chapters associated with Universities all over the country with a large membership and the event focuses on social enterprise, green business strategies, and nonprofit work.

Public Events
Yoga Journal Conference Sept 18-25 Estes Park, CO
For yoga die hards and trainers interested in the business of yoga or just to improve their own yoga practice. Famous yoga instructors such as Rodney Yee, Sean Corn and Shiva Rae have taught classes here. There is a vendor area as well.

Greenfestivals
Greenfests are the creations of Green America and a designed to celebrate green and diversity in various regions. Their flagship event in San Fran pulls in 30,000 attendees and they have some amazing keynote speakers such as Dr. Weil, Deepak Chopra, Amy Goodman, Jim Hightower and many more. Companies large and small mingle together with the public selling their products and services. I think these are great not only to see what is being sold but to see who is buying and the similarities and differences each region has as it relates to green. There is always a colorful audience at Greenfestivals.
New York  10/1-2
Los Angeles  10/29-30
San Francisco 11/12-13

Bioneers San Rafael, CA 10/14-16
Bioneers is where ecology meets activism meets celebration. I could spend hours in the parking lot just reading all the bumper stickers on people’s cars (mostly hybrids). If you are into fighting injustices of the underserved, hearing the wisdom of traditional cultures and the stories of animals and unique journeys of people this is an event for you. There are workshops on business, youth, art, peace and more.  It draws about 3-5,000 who are all there because of the larger mission Bioneers embodies. Networking is great but you will need to be selective on who you connect with since there are so many types of people there.

Of course these are just a few of the many events out there of interest to me. There are many others that are international that I did not include. If there are any other events you see I am missing please feel free to comment and add.

CSR Means True Partnerships

Wednesday, August 10, 2011 by Ted Ning

Written by Scott Jameseconomic hitman

This month I sat down with John Perkins, the author of the New York Times bestseller,  Confessions of an Economic Hit Man, and many other titles, and former chief economist at a major international consulting firm.

Scott: Tell me about your work with business students around the US, particularly as it relates to Corporate Social Responsibility.

John: We talk about what’s really important for any business leader to understand today. We have moved into a new era where people understand we’ve created a failed system.  When less than 5 percent of the world’s population live in the United States and consume more than 25 percent of the world’s resources, while roughly half the world is either starving or on the verge of starvation — the only way you can define that system is as a failure.

It’s not a model that we can sell to Africa or Latin America or India.  It’s not something we want to pass onto our children.  And an awful lot of business people are beginning to understand this.  Young people are getting it, including young MBA students. Those who are going to be running our companies in the future years are waking up to these facts. I’m very familiar with this, because I’m going out and meeting with them, speaking to them in large assemblies and at much smaller gatherings, going to classes with them, and teaching classes for them.

Any responsible executive today of any corporation needs to understand that this is the future.  And let’s face it: people who stay with the status quo have never been the really successful ones in history.  The ones who understand future trends have always been the ones to prosper most.

When city-states became nations, very few people understood the implications, but the Medici did. They knew that their bank wasn’t any longer just about Florence. They needed to go to Venice. They needed to go all over Europe. They got it, and as a result were very successful.

We’re in a stage like that today where things are changing radically.  We’re moving from this time that was defined, when I was a young person in the ’50s and ’60s, as the time to just continually expand materialism, produce things that seemed to make life easier – vacuum cleaners, dishwashers, mass-produced food, etc.  Now we’re moving into a time when people are really getting the fact that we have to be sustainable, that that has to be the driving force.

And sustainability includes social justice. So we can’t be sustainable if people in the world are starving and being exploited. That’s not working. It seeds the roots of turmoil, even terrorism, and it creates tremendous problems for our children. We’re now finally beginning to understand these new facts of life, and our young people are waking up the fastest.

Corporate executives who understand these new trends and steer their companies in directions that recognize(s) that they are not just about making profits regardless of the social and environmental costs will thrive.

When I went to business school in the late ‘60s we were taught that a good CEO is like a good soldier – he protects the long-term interests of his employees and the communities where they live and work, as well as looking out for the interests of his stockholders. That all changed in the ‘70s and 80’s with the adoption of what we now think of as the theories of Milton Friedman and the Chicago School of Economics. They said that the sole responsibility of business is to maximize profits regardless of everything else. They said: to hell with the long term and the idea of being socially and environmentally responsible! But today we are understanding that profits are not the sole responsibility of business.

We recognize – as our grandparents did – that to be responsible and successful, businesses are going to have to pay decent rates of return to their investors while taking into account the creation of a world that we want to pass onto our children; a sustainable world, a just world, a world where everybody can thrive on some level.

All executives – even executives of corporations that today appear extremely successful and profitable – need to understand that their corporations are very vulnerable to these future trends. They need to get on the sustainability bandwagon; the ones who do so are going to be successful in this new era.

But many business leaders who are already CEOs and CFOs, who graduated with my generation – 30 or more years ago, often take the attitude that this is their system, and that as far as they’re concerned, everything’s working just fine. They are wrong and ultimately they – or their companies – will pay a very high price for these outdated attitudes.

Scott: What does a world look like without CSR…where corporations are all simply responsible enough that we don’t need to tack a CSR department onto them?

John: We have a precedent in this country for that.  For the first hundred years that the United States was a nation, no corporation could get a charter unless it proved that it was going to serve a public interest.  Charters lasted on average for ten years.  There were exceptions – such as building a highway or a bridge –  but on average ten years.  Then the corporation had to go back and prove that IT had met the public interest and would continue to do so, in order to renew its charter.

That all changed in the 1880s when the Supreme Court decided that corporations had the rights of individuals but not the responsibilities, and we’ve been moving further and further in that direction ever since.  “Citizens United” is the most recent example.

There’s a backlash today. The general population – despite the recent Supreme Court rulings that seem to favor corporations – are really beginning to get it.  that backlash is going to increase as people decide they only want to support corporations that really are committed to creating a better future, to serving a public interest.

Scott: As this backlash is happening people are not only reacting against the negative but also moving towards the positive. What are the positive aspects within CSR that you’re seeing abroad from which the North American CSR community could benefit?

John: In the last decade, we’ve witnessed a revolution in Latin America against the form of capitalism that I call “predatory capitalism,” the Milton Friedman form of capitalism.  We’ve seen ten countries which represent roughly 80 percent of the population of South America vote during democratic elections for presidents who campaigned with the promise of reigning in the corporations.

These countries are not getting rid of the corporations, not nationalizing them, not driving them out – because they recognize that they need them – but saying to these corporations, “If you’re going to drill for oil here in Ecuador, or if you’re going to drill for gas here in Bolivia, or grow bananas in El Salvador, that’s okay, but you must share a larger percentage of the profits with our people.  You’ve got to pay higher taxes, and you’ve got to pay higher wage rates.  You must make sure that the people working on these projects are adequately compensated and that they’re not working as slaves to you. And you have to offer the same protections for our environment as those required in alaska and other states.”

The old model used to be that when a foreign corporation went into another country, it would set up a contract whereby it got about 80 percent of the profits, and the country got 20 percent. The new leaders are changing this. For example, Rafael Correa who’s president of Ecuador and has a Ph.D. in economics from the University of Illinois understands the system, he’s a capitalist. He’s not trying to get rid of corporations, but he is asking the corporations to stop externalizing the costs associate with destroying the local environment and exploiting local populations. Correa, like other latin leaders, is demanding that corporations internalize those costs and that they return a much larger percentage of the profits to the people. These presidents are not asking for a reversal of the 80-20 formula but they are asking for something that is fairer for their people.

Every one of these countries, for most of my lifetime, was run by brutal dictators often put into power by our own CIA. Now, in peaceful, democratic elections all that has changed. I want to point out that these countries are not opposed to the United States.  They’re not anti-American.  They’re not anti-corporation.  They’re just trying to say, “Listen, you’ve got to be socially and environmentally responsible if you want to work on our lands.”  And the interesting thing is that many of the corporations – the ones that will truly thrive – are getting it.

I recently was a keynote speaker at a conference which was held in Panama which was primarily CEOs and CFOs of extractive industries in Latin America, mostly Canadian companies.

Before I accepted the invitation, I asked them, “Why me?  What do you think I’m going to offer you?”

They said that policies in Latin America have changed. These elections have proven that business is not “as usual.” They told me, “We still want the minerals, and we understand we have to be good neighbors. We hear what they’re saying, and we want to cooperate.” these are very forward-looking senior business leaders saying they get it, and that they want to move forward. They want to be at the top of the curve, to continue to innovate and be the pioneers in this new and changing business environment.

That’s the real message today from all over the world – what I find in China and Latin America, Europe, and the Middle East. People understand that capitalism is a very effective system to channel human and natural resources and to apply creativity in areas that result in very productive activities. Now it simply needs to redefine its objectives. Capitalism must accept a goal not just of making profits but also of serving a public interest. When it does that, we arrive at a win-win, a true partnership. Those who understand this will become leaders in this new era. They will thrive, prosper, profit, and create beneficial environments for themselves, their customers, their suppliers, their employees, and the communities in which they work. And for their progeny.

Scott: Yes, definitely a more equitable and respectful relationship, one that can be sustained indefinitely. Any parting words of wisdom?

John: Simply this – that any truly responsible businessperson has to look to the long term. Bonuses may be measured by the quarterly profit statements but true success has to be long-term. As a society, as a species, it is imperative that we understand the importance of creating a world our grandchildren will want to inherit.

May You Live In Interesting Times

Saturday, June 25, 2011 by Pippa Sorley

The below article is brought to you as part of elephant journal’s ongoing coverage of LOHAS Forum. For our complete coverage, be sure to follow elephant on Twitter and Facebook.



Dr. Jean Houston woke me up this morning.

Normally, I don't like to be woken up. In fact, most people in my family stay as far away from me as possible before 10am. But, this was different. This was a powerful awakening...and everyone in the room felt it. Her too-short lecture at the 2011 LOHAS conference was received with hoots and hollers and a standing ovation.

Many of us believe that we are in the middle of a revolution. A revolution of the mind. And folks like Dr. Jean are the messengers. She, like many represent the 'Paul Reveres' of this revolution.
Bucky Fuller
I had the honor of literally bumping into Dr. Houston shortly after her inspiring speech (I'm not the most graceful of people). Her humility, her openness, her kind eyes, and the beautiful story written in the folds of her face fascinated me. Here's a woman who has spent years studying with the likes of Joseph Campbell, Margaret Mead, and Buckminster Fuller, and right now, here she is, taking the time to "see" me. Taking the time to listen to my rants about the hypocrisy of the Feminist Movement. I left our brief chat wanting for more, which, magically, I will get. I will interview her in more depth in 2 weeks, which I will post here for anyone who might be interested in what the messengers -- and maybe in this case the angels -- of the future have to say. How do we move elegantly and consciously through this current phase of Transition? What challenges do we, as humanity, need to address first? We know we have no road map, so where can we look for directions?
Just a few of the quotes that struck me:

"Do any of you feel as if your life is a micro-laboratory of what's going on in world?"

"We are the 'People of the parentheses' in the history of humanity"

"It's time to leave our life of serial monotony behind; rather, let's take this opportunity to prepare ourselves to become stewards of The Spirit."

"It's time to harvest the human capacity."

How fortunate we are to be living in such times. I have much gratitude to everyone attending this conference. The anticipation of change is palpable. Let's ride the wave. You ready?

** title of this article is taken from an ancient chinese proverb**

Pippa Sorley is co-founder of eConscious Market, one of the Internet’s leading online green retailers. She has 15+ experience working for both nonprofit organizations & corporations within the Natural Products, LOHAS, and Sustainable Business sectors. She lives in the Republic of Boulder, Colorado.

Our Kids See Stars In Our Eyes

Saturday, June 25, 2011 by Pippa Sorley

The below article is brought to you as part of elephant journal’s ongoing coverage of LOHAS Forum. For our complete coverage, be sure to follow elephant on Twitter and Facebook.


A Slam Poet at a Green Business Conference? What's the world coming to?

The title of this article was part of Theo Wilson's poem that tipped me over the edge. Sandwiched in between Friday's session(s) "Greening the Mainstream" and "FutureTopia",  Theo's stand-up routine ended with cheers and tears, hoots and hollers, and in my case, big 'ole goose bumps. In fact, I think I felt a tear drop dribble down my cheek by the end. Not what I expected when I dragged my (slightly hungover) self to "work" that morning. What a delicious surprise.

The annual LOHAS Forum, which just ended yesterday, represents a gathering of minds that really is NOT like the rest. The event directors gather the most eclectic group of luminaries, entrepreneurs, scientists, and non-profits out there, from slam poets and Evolutionaries, to internationally-renown Medicine Hunters and award-winning authors.

Attendees come to learn. But they also come to interact. I think that's what strikes me the most about how the LOHAS conference is unique -- it's a collaborative event. I feel as if I'm amongst my tribe of people here, even though most of them I've never met before. It is a true meeting of the minds -- a place where business and soul intersect. I mean, I challenge anyone to not be just a little intrigued by a panel titled "Liberating the Corporate Soul?"

LOHAS mindfulness conferences

Throughout the three day event, I was curious, how will  the conversation go between the executive at Coca-Cola and The Medicine Hunter, Chris Kilham? Will the young, hopeful entrepreneur seek out advice from the Non-Profit Executive Director at Pachamama Alliance? It was fascinating to witness lively conversations between folks who seemingly would never otherwise interact.

Good on you LOHAS folks. It's time that we start talking to each other, even if we don't think we want or need to. Thanks for providing us all with a forum to do just that.

Pippa Sorley is co-founder of eConscious Market, one of the Internet’s leading online green retailers. She has 15+ experience working for both nonprofit organizations & corporations within the Natural Products, LOHAS, and Sustainable Business sectors. She lives in the Republic of Boulder, Colorado.

What's New In Sustainable Materials?

Saturday, June 25, 2011 by Bud LOHAS

LOHAS: What’s New in Sustainable Materials?

elephant journal is proud to be the official new media partner with LOHAS Forum Click here for our ongoing LOHAS coverage , and be sure to follow our live coverage on Twitter .

Does it trouble you that styrofoam cups are still being used in the majority of PTA meetings around the country or church group gatherings?  How about these insidious cups ubiquitously showing up in the ritual coffee breaks of all the meetings you attend? Think of the thousands of construction site coffee breaks, when the whistle blows.  If you discover the only option you have at the office water cooler is a styrofoam cup, maybe you’ll decide to “blow the whistle” and green your company.

Challenge to Change

The stealth poisons lurking in those styrofoam cups cause havoc once inside the body. According to a 1992 U.S.D.H.H.S. study conducted by Jakoby, Claassen, & Sullivan, there is no internal biological mechanisms for metabolizing or eliminating the carcinogenic styrene from the human body.

Steve Davies of Natureworks, a company devoted to bringing a new family of performance “plastics” into the marketplace, gave a comprehensive overview of the challenges and opportunities we have to replace petroleum based packaging. Healthy alternatives to the use of conventional plastic are created from plant sugars, not byproducts from fossil fuels or oil. The value and importance of these new materials is simple to understand, they are compostable and need not end up in landfills where toxins fester for decades.

It’s not easy to transform conventional practices and change our standard way of doing things. If you think it’s easy, try changing your own habits.

Davies, Director of Marketing and Public Affairs for Nature Works LLC walked the audience through the trials and tribulations of Frito Lays efforts to change their packaging. At the launch of Frito Lay’s 100% compostable Sun Chips bag, their initial promotion garnered 115,000,000 million impressions in the main stream media in the first 2 days. That’s practically a Guinness Book of World Records in advertising parlance. The worlds first compostable chip bag was met with tremendous expectations and plenty of media hoopla. Then they came up against a fickle marketplace reaction. Consumers and critics decided the bags were too noisy. Frito Lay had to go through several attempts to “get it right” and deliver an eco friendly bag that consumers would embrace.

Many companies would have given up and been intimidated by so much push back. To Frito Lay’s credit, they persevered and working with Davies’ company they redesigned their bag without compromising it’s eco-friendly qualities. The solution was a sound deadening layer of rubber glue that mitigated the noise factor from 95 decibels to 70. ( I know, some of you want to know about the glue ) I just didn’t have the opportunity to ask that question.  My speculation is that it’s not toxic, based upon the rigorous scrutiny this product launch has received.

From Diapers to iTunes cards or high fashion fabrics to dietary supplement bottles, sustainable materials are showing up everywhere.  Stoneyfield, Walmart, Target, Coca-Cola, Frito Lay, Electolux and Danone are among several other major brand name companies beginning to use these substitute materials in their packaging . Even credit cards are moving away from conventional plastic.  Ingeo (Natureworks’ name for it’s biopolymer – plant based materials) is the substitute of choice. Here’s another example of an environmentally conscious conversion: all REI gift and loyalty cards, previously made with PVC, are now Ingeo based. Compared to PVC, Ingeo manufacturing emits 32 percent less CO2 and consumes 29 percent less energy.

In October of 2010 Stonyfield Farm, the global organic yogurt leader, replaced all of its petroleum-based multipack yogurt cups with plant based Ingeo cups. The new cups are a first in the dairy industry and reduced Stonyfield’s greenhouse gas emissions by 48 percent.

FACTOID: even cold cups made of paper are plastic lined with polyethylene – not something you want to ingest. At the urging of college students and other consumers, who happen to consume a fair amount of Coca Cola, the company is moving to an Ingeo lining as a replacement for all their food service cups supplied to facilities with the capability for composting. The truth is, with enough consumer demand and courageous corporate leadership, we have enormous opportunities to reduce our use of non-renewable resources by using plant based renewable materials.

The proliferation of Paper Cups

In addition to concerns about the trash factor… disposal of conventional plastics… there are growingconcerns about Phthalates leaching into our water, food and ultimately being absorbed by our bodies, disrupting our endocrine system. Phthalates are the chemicals used to make plastic soft and flexible. Here is what the American Chemical Council says about Phthalates on their official web site:

With more than 50 years of research, phthalates are among the most thoroughly studied family of compounds in the world and have been reviewed by multiple regulatory bodies in the United States. The American Chemistry Council is proud that the products of chemistry are among the most thoroughly evaluated and regulated in commerce and continues to support ongoing research into the health and safety of phthalates.

Sherry Rogers, M.D. begs to differ. In her provocative book Detoxify or Die, published in 2002 she states: “Phthalates off gassing from plastic…damage hormone receptors, leading to loss of sex drive and energy. They damage brain chemistry leading to learning disability and hyperactivity, or they accumulate in organs and trigger cancers of the prostate, breast, lung and thyroid.” (page 2). In EPA studies Phthalates have been found in the human body in concentrations 1000 times higher than any other harmful substances including heavy metals and pesticides.

The Chemical Council goes on to say that “Science Protects Our Health”. Does this remind you of the Du Pont ads from a decade ago “Better Living Through Chemistry?”

They go on to say:

“A responsible and rational regulatory framework in government is based on science and evidence, not on public or political opinion.”

Right, do you suppose that is why the European Union banned the use of Phthalates six years ago? Makes one wonder who’s science reveals the truth about toxins in our environment.

At a recent public meeting at the Aspen Institute, Maggie Fox (the wife of Senator Mark Udall and former senior attorney for the Sierra Club) stated that virtually all of the regulatory agencies in the U.S. have been thoroughly manipulated by corporate interests to maximize profits for the past 3 decades at a minimum. She suggested that citizens need to be the watch dogs.

Keep an eye out for this logo and maybe you’ll be able to be a catalyst for change. The next time you encounter plastic products that you’d rather eliminate from our world, be proactive and write a letter or call the culprit company and recommend they convert their use of harmful chemicals. Invite them to join the movement for a healthier world.

The plant based "plastic" alternative to oil

The Ingeo “Plastic Pellets” created  by Natureworks LLC are plant based polymers. Without having to go back to school or chemistry class, these long chain molecules all come from plant sugars. They happen to perform like plastic without the negative impact on the environment that petroleum based plastic products embody.

Annually, one Billion lbs. of corn starch is used by the paper industry.  By comparison, less than .1% of the entire U.S. industrial corn crop is used by Ingeo to create 140,000 tons, or 300,000,000 lbs., of Ingeo on an annual basis.

So here is a hint, the path to a healthy future in a consumer based economy is this: All products have to work well and carry impeccable environmental credentials. Private corporations are learning to live by public permission.  No green washing, no kidding.

Onward with courage

Bud Wilson Bud Wilson was a student-athlete-activist during the tumultuous era at Harvard University and emerged with an interdisciplinary degree combining, child development, innovative education and urban social policy.  He the Global Director of Bio-Regional Leadership and an awareness instructor and wilderness guide for Sacred Passage and The Way of Nature. Bud has devoted his passion and energy to raising awareness (including his own) and shifting human consciousness to appreciate that we are all living in an interdependent, interconnected world where there is more than enough for all of humanity to live in peace and harmony. A proud dad of 2 wonderful grown children! 

Post-Game Wrap-Up

Friday, June 24, 2011 by Michael Levin

The below article is brought to you as part of elephant journal’s ongoing coverage of LOHAS Forum. For our complete coverage, be sure to follow elephant on Twitter and Facebook.

Green can't be cliche or a lifestyle option to work, for lack of better words. It has to be practical, cheap and easy. That's the key.


So, today is the LOHAS wrapup. I attended a bunch of sessions. There was one called "Surfing..." which talked about taking trailing advertizing dollars and using them to ramp up community efforts like making parks. So much money from the major corporations, with the right management, can be leveraged off the tube and out to your community.

Another forum was called "Following Lance" and the high point was that you don't have to sell "green," but that you could push green by talking practicality. Dollar savings, ease of use, etc. These are points that the masses respond to. Green can't be cliche or a lifestyle option to work, for lack of better words. It has to be practical, cheap and easy. That's the key.

Another speaker shared about electric vehicles and the future. Imagine car parks where your car feeds off of and into the grid! That's the future.

I also heard a new catchphrase: "greenwashing" which, as you can probably guess is what a company might do that presents itself as green but really isn't.

All in all, LOHAS gives a chance for speakers and companies to share their ideas about how to make our already rich lives richer by introducing thought, sustainability and health into the equation. It's all good.


Michael Levin profile photo
Michael writes for Elephant Journal and founded a "dangerously organic" community called Zoobird. He loves sharing what he's learned about organic lifestyles like living off the grid and bicycle commuting. He calls it "lifestyle entrepreneurship". He's into organic gardening, mindful living, and realizes that we only have this life and each other. His favorite quote is "The master in the art of living makes little distinction between his work and his play, his labor and his leisure, his mind and his body, his information and his recreation, his love and his religion. He hardly knows which is which. He simply pursues his vision of excellence at whatever he does, leaving others to decide whether he is working or playing. To him he's always doing both." (James A. Michener)

Greener Health with Integrative Medicine

Friday, June 24, 2011 by E. Feigenbaum, Ph.D.
Do fish need antidepressants? Well, they are getting them. Through un-metabolized human waste and the disposal of unused medications, numerous pharmaceuticals end up in waterways and soil tests all over the US.  Though chemical levels are in trace amounts, few studies have considered the potential harms that can result from long term exposure among humans and other species, or the impact these materials may have on the overall chemical load in the environment.  Currently, federal regulations require no testing and have no safety levels set for trace pharmaceuticals.  

Since these substances may interact in unpredictable ways with each other or water additives like chlorine, the LOHAS community may have some legitimate concerns about the trends for increased US prescription drug use.  This connects personal health choices and commitments to sustainability and environmental health to what happens when a patient enters a doctor’s office, especially among people looking for options to improve health through non-invasive, natural, and lifestyle oriented solutions.  Yet for those who inquire about stress management with the majority of conventional doctors, they may be more likely to receive advice about anti-anxiety prescription options than a suggestion about exercise or styles of yoga to try.  Though pharmaceuticals play a key role for some conditions, many people would prefer making lifestyle changes to improve their health when possible.  

The result of an exclusively traditional benefit plan may leave people opting for a lack of follow-up or no care at all if they prefer holistic alternatives.  For LOHAS companies, ideas are brewing over how to connect cost-effective benefit planning to corporate values by offering benefit plans that provide options to include types of care that employees want and need: care that focuses on preventive medicine and whole person health, like holistic or integrative medicine.  Investing in integrative medicine has the potential to capture the best of both fiscal and value-driven goals. 

Interview with Marc Barasch: Let's Just Save the World Already, Dammit.

Thursday, June 23, 2011 by Lopa Brunjes

elephant journal is proud to be the official new media partner with LOHAS Forum. Click here for our ongoing LOHAS coverage, and be sure to follow our live coverage on Twitter. [Our editor Waylon Lewis is honored to serve on two panels during this event.]

[youtube]http://www.youtube.com/watch?v=lDkT3fPRn3U[/youtube]

elephant journal:  Tell me about your experience with LOHAS.

Marc Barasch:  I’ve been around since almost the beginning.  New age business had been bifurcated, and suddenly people were beginning to figure out how to put their spiritual ideas into business.  It started with good ol’ tofu companies, small granola businesses just beginning to advertise and act like real businesses.

elej: How have you seen it change over the years?

MB: It’s been a mixed blessing. You lose some of the authenticity of the core intent as companies sell to larger conglomerates.  It’s wonderful thatit propagates the meme and distributes the products at a scale that a small company never could have done.  There are tremendous benefits to that.  But from my somewhat outside observation, you also lose some of the integrity. For example, if you look at Ben and Jerry’s, when they were acquired by Unilever, I believe they intended to keep a very progressive business model, including a fixed ratio of how much top executives were paid. However, that model was not kept.

So the LOHAS community needs to ask:  how can LOHAS not replicate some of the disparities and discontinuities of the prevailing system that are collectively driving us off a cliff?  I think it’s time for companies to not just look at the sustainability and humanity of their organizational development, not just as a CSR add-on or a laudable afterthought, but something that’s included in the raison d’être of the company itself?  I think that’s the question that we need to be asking. What does the company do?  What is the product?  How can we ensure that it’s not increasing consumerism?

How does this push forward a new emergent model, without pushing forward the parameters of a dysfunctional system?  How does it value and push forward what needs to be done in the world?  And quickly?  We need to step out of the matrix and look at this from some zero point and reverse engineer it.  What does the world need, and how do these entities—businesses and corporations—directly serve that need?

In an era where money is de-realized into nothing but bits and bites, a fictive system based on number magic, the priests of the numerate have always worked abstract magic on the masses, and become the elite through magical hand gestures—in this case, tapping on keyboards.

I’m very personally interested in complementary currencies.  Look at Switzerland, for example.  One reason that they’ve been so stable economically is not just because they are neutral, but because they have some very sophisticated complementary currencies to meet social needs, as well.

elej: What do you think we need now?

MB: I think it’s time for radical experimentation, we need hybrid or fusion companies, with nonprofits using the profit system and businesses founded with a social mission first, such as Patagonia.

How do we take on the really large social mission of true transformation, and not just nibble around the edges of real change?  I think that’s not just grandiosity.  It’s necessity.

How do we model as organizations that meet emergent civilization?

elej:  How are you modeling an organization that meets the emergent civilization?

MB: This might sound pretentious, but I really took a cue from something Thomas Keating once said, something to the effect of, “I get up every morning, and I decide what will do the most good.  This simplifies things tremendously.”

6 years ago, when Field Notes on the Compassionate Life came out, I thought, “If I’m talking about compassion, I need to enact it.”  So I stopped my entire career trajectory from that point forward, and asked how I could do the most good and accept whatever answer I was given.  I asked myself, "what does the universe want?" And I’ve followed that question pretty loyally for these last 5 years.

That lead to a lot of coincidences, that eventually led me to planting trees in Ethiopia, to start.  I started the Green World Campaign, and watched it grow into a mostly volunteer-driven organization that’s now operating in 5 countries (Kenya, Ethiopia, Mexico, Philippines, India).  We’ve planted close to 500,000 trees.  We’re involved in regenerating communities.  We’re restoring the economy and ecology of the world’s poorest places, doing work that serves people and planet.  In the model of agroforestry that humans and nature have been co-creating since the beginning.

The idea that our relationship to the natural world is to avoid keeping our own destructive hands off it, is inadequate, completely. We’re supposed to work in an integral way together. Renew communities as we renew the environment.

How do we take the holistic model that we all ascribe to philosophically and apply it in the real world, particularly at the bottom of the pyramid, with the people and places that our collective fate is inextricably entwined?  Collective enactment of the global village.

As a critique, we’re very good at created “enlightened, green-gated communities”.  But how does this affect the poorest of the poor?  Trickle down economics.  Everything is connected.  Everything should be seen as interactive parts of a whole.

Reforestation is a quantifiable healing strategy.  We are using interactive new media and new technologies.  It’s part of the DNA of GWC.  We have an alliance with Digital Globe, the largest satellite imaging company, to be able to show donors over time degraded areas turning green.

A tree is a deeply embedded meme in the human psyche.  We’re a tree-planting species.  We always have been.

We’re operating in many domains, whether it’s carbon credits for eco-stoves, creating social enterprises by sourcing commodities like herbs and teas, non-timber forest products, how to partner with indigenous communities in a way that empowers them and also introduces appropriate technology and new agronomic strategies that are harmonious with their traditional agricultural practices.

We are not only providing environmental education, but also working on linking that up with schools in the US, so kids can get a sense of the global village.  I’m big on creating positive feedback loops in a way that empowers global citizens. Doing good doesn’t have to be only through large corporations and large environmental groups.  How do we self-aggregate and do something that we can see that benefits all of us?

How do we all learn from each other?  I’m taking pains to pick and search partners that are mission-aligned and have a real global citizen mindset.  Some sort of understanding of the spiritual underpinnings of human existence, if you will. We’re not aiming to be USAID.  We want to work with the LOHAS community.  We’re propagating ideals in the context of the developing world that are really building global community that includes the poorest of the poor.

Our model is infinitely scalable.  With proper funding, we could scale this up almost immediately.

I call this work Green Compassion.  And the movie “I Am” also relates to this.

elej: Tell me about I Am.

MB: I got a call from Tom Shadyac, who wanted to make a film about the book.  A large part of the film is based on the book.  Here’s a guy who had earned about $2.1B dollars gross for the studios thru his Jim Carey and Eddie Murphy movies.  As much as possible, I want Green World Campaign to be congruent with the ideals presented in the movie and the book. Everything I do is informed by my own healing work and experience, and my background in Buddhism.  It all stems out from that.

Interviewer's note:  And that's what it's all about.

Marc Barasch rockin' a slanted beret FTW.

Can Opinion Leaders and Business Gurus Bring on a Sustainable Culture?

Wednesday, June 22, 2011 by Bud LOHAS
That's the question the folks in the natural products industry and other big brand businesses are exploring in Boulder, Colorado this week! LOHAS is the acronym that translates to Lifestyles of Health and Sustainability.  Stay tuned for the latest cutting edge ideas coming from the heart of "Organic Land".  

Changing individual human behavior is the key to our future. Improving the quality of life is often the purpose of non-profit organizations. Julia Butterfly Hill ( the courageous activist / protector of Redwood trees) likes to call those entities For Benefit Organizations! That's a really nice way to think about the essence of their work.  

In Boulder, the for-profit sector will be exploring how their business practices can affect our society for the better.  Anyone interested in the triple bottom line approach to corporate social responsibility will find many members of their tribe at the St. Julien Hotel for the next few days! Astute observers will be watching to see if they can truly green our world, once and for all.

Time to Green our World

Whole systems, ecological thinking will most definitely be in vogue.

Convincing one another that cooperation and collaboration is the key to success is the first order of business. Reinventing business for the 21st century will require a radical transformation of "business as usual". We'll see if this crowd of motivated and energetic entrepreneurs is up to the task.
Reaching out to the main stream is the next challenge! Stay tuned.


_________________________________________________________________

Bud Wilson Bud Wilson was a student-athlete-activist during the tumultuous era at Harvard University and emerged with an interdisciplinary degree combining, child development, innovative education and urban social policy.  He the Global Director of Bio-Regional Leadership and an awareness instructor and wilderness guide for Sacred Passage and The Way of Nature. Bud has devoted his passion and energy to raising awareness (including his own) and shifting human consciousness to appreciate that we are all living in an interdependent, interconnected world where there is more than enough for all of humanity to live in peace and harmony. A proud dad of 2 wonderful grown children! 



Five Ways to Improve Your Marketing

Monday, June 13, 2011 by Margaret McAllister
If your marketing plan for 2011 looks like last year’s model, you may want to step back and take a bigger look at where your business needs to go in the coming years. We all get myopic especially when we haven’t seen a business climate or consumer marketplace like this – ever! Four game-changing trends followed by five plan-changing ideas:

 

Demographics Are Gross   Lumping people together according to their age, household income, or education level was fine in the heyday of mass marketing. But demographics aren’t a fine-enough filter in our multi-channel media-saturated world. It’s not enough to know, in the broadest of terms, who your target audience is. Now you need to know how they are and, most importantly, why they buy. And if you don’t know, you may be watching your competitors eat your market share for lunch.

 

Technology Converged    Personal computer plus Internet plus social networks plus mobile phones equals a convergence of technologies into one massive, uncontrolled, 24/7, global communications platform. At least two things happened: it empowered consumers to talk (or talk back) to brands. And it created new inter-connected means for brands and consumers to connect.  Five years ago, we didn’t have to consider how our big branding ad was going to play out as a streamed Internet video linking to a geo-targeted 2-fer coupon accessible via smart phone! The accelerating number of possibilities is enough to keep any savvy marketer awake nights.

 

Mad Men Meet Joe YouTube   You gotta love Don Draper. After a night of drinking, smoking and fooling around, he can show up for a major campaign presentation, pull a single concept out of his fedora, and have the client eating out of his hand. From the 60s to the 90s, big splashy ad campaigns reigned. Did they work? Sure, many did, especially when advertisers threw a ton of money behind them. Especially the funny ones. But then along came YouTube. Now any bloke with a slightly warped sense of humor, a flip camera and a log-in can generate as much buzz as a multi-million dollar Super Bowl ad. That can give marketers heartburn as they re-think how to allocate their budgets.

 

Consumers Rule   Marketing used to be easier. You created a product, you advertised, it you sold it. Back then, it didn’t matter much who bought it as long as enough bought it. It didn’t matter how it was made as long as it didn’t break before it got home. It didn’t matter if the means to the end were sustainable as long as the bottom line was. But in today’s world, consumers’ peer-to-peer influence on your top line is unprecedented.  What they don’t like, they don’t buy and they don’t hesitate to yelp their reasons why. And, by the way, most of those consumers controlling the cash are women. Well, three-quarters of it anyway, even when spending is down.

 

What Now?

The future is now and you can’t afford to wait. Visionary companies are searching for new ways to step up their marketing and engage new consumers using new technology. Here are five things you should consider.    

 

Consumer Centricity   Make your business revolve around the consumer not the other way around. Your product is not the centerpiece of your brand. Your customer using your product is.

 

Know Your Consumer Inside and Out   To build your marketing around your consumers, you need reliable, actionable intel. Research tools like Roberts Worldview Assessment, for example, provide psychological insights into various consumers’ values and behaviors and direction on how to engage them.

 

Total Consumer Engagement   Every consumer touch point becomes part of the brand. From the product itself to the ways the consumer can learn about it and interact with it to the retail or etail service experience.  Your internal and external support teams need to understand that entire experience and make sure every part of it delivers your brand effectively.

 

Brand Response    Before the Internet, tracking results was a bit sketchy. But with online analytics, the guessing is over. That’s why all advertising roads need to lead to the Internet. We call it Brand Response, the blend of brand ads to get attention, direct response to drive the action and online interactivity to make the sale. Great advertising and accountability ARE possible.

 

Change the House Rules   Look at your corporate culture. Are there any fresh marketing ideas being generated? If not, a more holistic process and a less silo’d organization can help. Sharing best practices to engage consumers should be a full team effort. 

 

10 Things That Make the LOHAS Forum Unique

Wednesday, June 8, 2011 by Ted Ning
1. Cross section of attendees is like no other event. Where else will you find Fortune 500 companies shoulder to start up entrepreneurs next to mainstream media and celebrity. It is a great networking event for those who want to stretch their comfort zone and meet new people.

2. Permission to drop the armor of image is granted and expected. Everyone at the event wants to know who each other is at heart first and then get to professional interests second. This makes the attendees really open to each other and sincerely attentive to each other’s needs.

3. On the cutting edge of what is next. Many events have large corporations as the core of their speakers where at LOHAS you see more of the larger corporations in the audience learning how to enter the LOHAS market.

4. Boulder City is the epicenter of LOHAS activity. Despite being just over 100K in population it is the hub of organics, clean tech, outdoor industry, spirituality, alternative medicine, technology, entrepreneurship and is beautiful place to be in June when the LOHAS Forum occurs.

5. St. Julien Hotel & Spa is the best hotel in Boulder and has a very accommodating staff and has fully embraced sustainability. They provide the measurements for landfill alleviation for the LOHAS forum and organic and locally sourced meal options. Last year we were able to recycle 87% of our waste from the event. We strive to do more this year. The spa is top notch as well. 

6. The LOHAS gift room is legendary. Rather than provide a pre stuffed conference bag of brochures that are typically dumped in the hotel room we provide a gift room of various items from LOHAS companies that attendees can pick and choose from. Attendees love this and the gift bags are usually quite stuffed when people leave the room!

7. Market data worth thousands of dollars is presented by a variety of green market trend specialists. Those that are interested on what is happening in the LOHAS space can collect a tremendous amount of insight from these highly sought presentations.

8. Program content transcends green business
 to include elements to connect with the human spirit and community in a way that is energetic and inspiring.

9. A paperless program for this year and digital signage. The program will be on an app that is also a mobile website. The app will be downloadable on iTunes and will allow those who are not attending to see what is happening by reading the social media feeds, text alerts and uploaded images by attendees. Conference signage are flatscreen monitors that double as media centers for video.

10. Not just a conference but a community celebration! We have a variety of ways built into the event ranging from morning yoga and meditation to musical entertainment to after parties to engage the senses for attendees.

If you are an attendee and have other elements I have forgotten I would love to hear them. Please share!

New York Times, Take This!

Thursday, May 26, 2011 by Jennifer Schwab of SCGH

A recent New York Times article, in classic "all the news that's fit to print" fashion, declared that the bevy of green consumer products introduced over the past five years is going the way of the buffalo and Circuit City, i.e. headed for extinction. It should be noted that normally, I consider the New York Times to be the best journalism around (along with ProPublica) so much so that I am happy to pay over three dollars a week to read it via iPhone.

Not surprisingly, this got a number of folks from the green movement -- including yours truly -- up in arms. Not only do I strongly disagree, but, to borrow not quite literally from Mark Twain, reports of the premature demise of green products have been greatly exaggerated.

In the story, the dramatic rise then decrease in sales of Clorox Green Works is cited as the most overwhelming proof of the Times' assertion. It is true that GreenWorks home products took off like a Roman candle when initially launched in 2008, and sales were down nearly 40 percent from that peak as of last year. (I should note here that Green Works has an endorsement from Sierra Club). Being very close to this subject at Sierra Club Green Home.com, I can tell you that indeed, consumers are spending less on elective premium priced green products as a result of the recession. If a green product does not offer marginal utility vs. a non-green competitive product that sells for less, odds are it will be second choice for a general public that is struggling with $4 gasoline and skyrocketing grocery prices.

That said, just this week I saw a brand new launch ad for a green motor oil, of all things. Valvoline introduced its NextGen motor oil made with 50 percent recycled content. It will be sold right next to comparable Valvoline and competitive products, and at the same price! This is great news because our research at Sierra Club Green Home.com shows that over 70 percent of consumers are sympathetic and supportive of using green products -- so long they perform the same as "regular" products as it does not cost them a premium. Valvoline seems to really understand this with the pricing and positioning of their new recycled product.

"Making An Impact" by Valvoline

Another potentially important new product introduction is from Alcoa; it's an aluminum architectural panel with special titanium dioxide coating that literally "eats" smog when sunlight contacts the surface. In sunny weather, the chemical reaction with the panel actually cleanses the air, says Alcoa. Then when it rains, harmless matter collecting on the panels is washed away. Alcoa is not often accused of being green, but it should be noted that they were one of the very first major corporations to promote recycling. The Pittsburgh-based aluminum giant ran programs in support of aluminum can recycling as early as 1980. Remember Armstrong floor and ceiling tiles? They just announced a new formaldehyde-free ceiling tile, which improves indoor air quality. Admittedly these products would most likely be found in office buildings where consumers work as opposed to your home.

Back to consumer "everyday" products. Pentel sells its RSVP retractable pens, made from 59% recycled plastic. This product is doing well in sales, as are Earth by Staples notebooks made from 80 percent sugar-cane based recycled waste. They are offered in a variety of earth tone colors and interestingly, are made in Egypt. At a $2.49 price point, they are cost competitive with comparable items. In fact, they are cheaper than fashion notebooks which are made with coated plastic over cardboard.

The Times used Clorox Green Works as an example of green products costing a lot more; the Staples Sustain Earth brand is actually less expensive than non-green national brands at $1.99 for their multi-purpose cleaner. I could go on -- and on. The point is, these are not "fringe" products from tiny mom and pop green firms. These are all important product launches from major national companies.

The Times story was based upon a study which concluded that green products sold by major national marketers are on a serious downward trend. We would submit that the examples cited above are but a few of dozens and dozens of current and planned introductions of new green products by national marketers. If they didn't think these products can be profitable and grow market share, they would not spend the time and effort to introduce them. To paraphrase leading green industry researcher Suzanne Shelton in a recent blog, the key is for marketers to research, position and price their green products carefully and strategically. Finding that sweet spot of all these variables can be a challenge, but we are confident that ultimately, there will be many more success stories about green products that consumers can't live without in coming years.

What is your experience with green consumables? Are you willing to pay more for them? Please comment to let us know your thoughts, and as always, thanks for reading!

 

Follow Jennifer Schwab on Twitter: www.twitter.com/SCGreen_Home


Cautiously Optimistic at Laguna Niguel

Tuesday, April 26, 2011 by Jennifer Schwab of SCGH

LAGUNA BEACH, CA – “FORTUNE Brainstorm Green” is probably the number one environmental business conference in the world. A host of top CEOs, heads of NGOs, and a variety of consultants, private equity investors, venture capitalists and journalists descend upon the spectacular Ritz-Carlton Laguna Niguel each April — this was my third annual event — to examine the state of green biz.

Fortune Brainstorm Green 2011

There was still optimism in the room on April 4-6, but with a strong dash of reality check. As in, many of these guys are not making the returns they expected by now, and a lot of them have tens if not hundreds of millions invested in “Greentech” companies. That said, they still seem confident that their investments will ultimately pan out, even without federal energy legislation.

Many of the firms represented are major, well-established corporations who seem to be making sincere and in many cases effective efforts to operate sustainably. It is impressive that more and more major companies are adding the title “Chief Sustainability Officer” to the C-Suite, as CSOs from dozens of firms were on the attendee roster.

Not surprisingly, a dominant underlying theme was that unless they’re good business, sustainable policies won’t pass muster with management or shareholders. “The key is cheaper. Sustainability is nice but it’s not the driver,” observed Bill Joy, a founder of Sun Microsystems, now a partner and leading greentech investor with the ubiquitous Silicon Valley venture capital firm, Kleiner Perkins. This sentiment was echoed throughout the conference by various speakers in sessions ranging from “The Future of Climate Policy,” with Environmental Defense Fund President Fred Krupp and James Rogers, CEO of Duke Energy; to “Sustainable Seafood, It’s Not A Fish Story” featuring Greenpeace USA Executive Director Phil Radford and Bumble Bee Foods CEO Chris Lischewski, among many more over two and a half days of speeches, round table discussions, networking and even entertainment.

None other than the Allman Brothers and Rolling Stones keyboardist Chuck Leavell performed with his band, although he was not just the musical interlude. Leavell has written no less than four significant books about the environment, his latest being Growing A Better America, which examines how we can balance population and business growth with the need to offer everybody clean air, water, plentiful food and adequate natural, open land.

A session of particular interest to me was “Urban Green,” which aired out the tremendous population explosion expected in major cities by 2050 and what we can do to keep some semblance of green in the face of crowding and gridlock. “We expect 80 percent of the world’s population to be city dwellers by 2050,” said legendary architect, urban planner and sustainability expert William McDonough. “Beijing will double in size within five years from 20 to 40 million. How do we provide sewage plants? How do we give everyone the basics of clean air, fresh water and adequate food?”

Laura Turner Seydel, Trustee of the Turner Foundation and yes, daughter of Ted, said Atlanta has become a model of the sustainable city. “It takes a concerted effort from government, business and non-profits. Atlanta received matching funds from Coca-Cola and the Turner Foundation, got Atlanta airport to recycle, now the whole city recycles.” This was echoed by Cindy Ortega, Senior Vice President of Energy and Environmental Services for MGM Resorts, developer of Las Vegas’ City Center, the country’s largest LEED-certified development. “Green is being embraced by corporate America, because waste of natural resources is not good for the bottom line.” The overall thrust was that with skyrocketing urban population growth, only a true partnership of city government, NGOs and local corporations will be able to maintain a sustainable way of life.

Security was tight at this green conference, and rightly so, as luminaries such as Richard Branson, former Siebel Systems founder/CEO Tom Siebel (who is now doing a green startup, C3), Wal-Mart EVP Leslie Dach and NRDC President Frances Beinecke, among many others, appeared as speakers and panelists. Even Theodore Roosevelt IV (yes he does look like his great great grandfather) was on hand, he is Chairman of Barclays Capital Cleantech Initiative.

The conference closed with motivational words from pro surfer, fitness expert and all-around-athlete Laird Hamilton, who is otherwise known as the “Force of Nature,” also the title of his book, which chronicles the way to a truly healthy lifestyle (no you won’t look like Laird even if you follow the diet and exercise plan). When asked how the average person can follow his program and achieve true fitness, Hamilton reminded us that the old tenet, “no pain, no gain” is really the answer. “My food often tastes like crap, the workouts are hard, they hurt. But you have to push yourself to the next level if you want to improve your results. Potato chips in, potato chips out … you need to eat jet fuel to do these workouts.”

Indeed, our path to a truly sustainable future will also follow his edict: no pain, no gain. It won’t be easy, it won’t be cheap, and it will take sacrifice on everyone’s part. The conference left me with a feeling that we do have the talent, capital, entrepreneurship, science and dedication necessary to make our society — and the developing world — a sustainable environment with adequate natural resources and energy to meet the needs of all citizens.

Here’s hoping I’m right…


Vanilla Ice, Skinny Jeans and Complexity: On New Marketing Programs for the LOHAS Consumer

Thursday, March 31, 2011 by John Rooks

My company has been firmly planted in the green space since our birth in 2003.  We were not first, but we were pretty early.  A lot has changed.

 

We have made our way through the rapid change by studying the culture.  We produce content that is relevant to the various sustainability movements (there are multiple) taking shape around us.  Here are some examples of the type of content we produce to understand it all:

 

  • Biennial Green Language Survey of 100 Print Ads
  • Pop-Culture Lens studies exploring the meaning of sustainability in our culture
  • Our soaplabs design, test and prove innovative strategies with very trusting clients
  • An upcoming report that breaks emerging marketing trends into 6 narratives

 

Our latest green language study will be available (for free) later this month (if you’d like an advance copy, let us know here).  As a sneak peak, here is one of the findings: 

 

Green is no longer a driving element in print ads.

 

As we write the report, I’m reminded of a talk I gave at the LOHAS Forum in 2007.  The talk was called A Beautiful Ambiguity: Language, LOHAS and the Mainstream (If you’d like to download the nostalgic pdf, go here).  I remember saying to the crowd, "once green is mainstream our competitive advantage is gone."  My point was that we were all hyper focused on green as THE thing.  And at the time it was THE thing.  But at some point the rest of the market was going to catch up with us, and we would need to evolve.  That time has come.

 

I used pop-culture to illustrate the point and show how trends evolve.  For example, when bubblegum pop music starts using hardcore street language (or gang signs), the street must change how it represents itself – it’s no longer dangerous. It pushes it further.  When the skinny suburban kid steals your language, urban kids don’t want it back.  Or, more contemporarily, when your mom comes home in skinny jeans, things must change.  This is the way culture evolves – change happens in the margins, mainstream absorbs and the margin pushes it further. 

 

Fringe – Margin – New Fringe – New Margin – New New Fringe – New New Margin…and so on.

 

And throughout this continuous cycle of cultural evolution, the entire system becomes more and more complex.  It’s not unlike energy efficiency. The first 40% of efficiency (perhaps sustainability in general) was the easiest.  But by now we have changed the light bulbs and weatherized the house.  The next 40% will get progressively more complex and challenging.  It will require new technologies, processes, innovations and ways to measure impact. 

 

Similarly, sustainability marketing  programs need to engage consumers in new ways.  They need to be measured in new ways.  They must push the dialog further.  The programs that companies design to embody LOHAS are growing in complexity out of necessity.  I think this is a good thing.  It is part of cultural evolution.  One of the projects that graduated our soaplabs was More Than Promote - a strategy that measures marketing by its corporate, civic and cultural impact. 

If we’re not innovative in how we fundamentally approach marketing, we end up looking like a modern version of Vanilla Ice sampling Vanilla Ice sampling Queen. 

 

By John "Ice Ice Baby" Rooks