John Rooks did an amazing job presenting a compelling argument on a civic approach to branding that drives behavior change. It was one of the most favorite sessions of last year's LOHAS Forum for me. Check out all the old commercials and movie clips playing behind him. Not many people new it but he had a VJ behind the screen  following his talk and splicing the clips together in real time. Very edgy and very cool! I can't wait to see what John has up his sleeve for the 2012 LOHAS Forum.

John Rooks: Sustainable Economy- LOHAS 2011 from The SOAP Group on Vimeo.

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
The 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”
There 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
Hybrids 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 billion 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.

"The 'less is more' trend continues to resonate with consumers," confirmed Steve French, managing partner at NMI. "Marketers can maintain current and attract new consumers by using less packaging and 'greener' packaging materials. Specifically, 'renewable' and 'plant-based' materials are rated most environmentally-friendly among consumers." Based on these results, he and his team suggested businesses to incorporate new environmental materials where applicable and promote any use of post-consumer recycled packaging. However, while consumers favor eco-friendly options, companies should be careful not to adopt environmentally friendly packaging at the expense of the product or its experience, according to NMI. NMI will be providing more details on thier annual consumer studies at the annual LOHAS Forum June 12-14th in Boulder. The premiere event focusing on the LOHAS market.

I 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.

You 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.

LOHAS has opened its doors for registration, speaker submissions, scholarship applicants, exhibitor reservations and sponsorship for 2012. This LOHAS Forum will be quite different from other LOHAS events of the past.

Early Bird 2 for 1 Special Rate
Registration is now open and we are offering a kick-ass special for the first 25 who register. The first 25 registrants receive a 2 for 1 price on the full priced attendee or nonprofit choices. This does not apply to single day registration. This is going to be a very different LOHAS Forum from years past you won’t want to miss! Read on for details on some of the changes. Register here.

New Location(s)
We have consistently observed that over half of the business attendees who participate in the LOHAS event are from out of town and many are Boulder newbies. Being what Boulder is it has an international LOHAS appeal as being the cradle of where LOHAS was originated. The progressive city has been recognized for many features including its healthy lifestyle, as being a natural and organic food hub, home of Colorado University and as an entrepreneurial mecca. In the past attendees have had to make an effort to go out and experience Boulder in between conference events. Not this year! We have decided to bring Boulder into the LOHAS experience by holding our events at various historic locations that are all in the down town area and within easy walking distance from each other.

Our morning keynote sessions will be held at the Boulder Theater. Opened in 1906 it is classic in design, with prime sound and an impressive tradition of the best in entertainment. Lunches will be served at nearby, locally owned restaurants along Pearl Street mall that serve organic meals and/or are sustainably focused. 

Our exhibit hall and infamous gift room area will be located at the Rembrant Yard which is the original location of the New Hope Media offices. New Hope runs the massive Natural Food and Products Expos. They have since moved to another location nearby and the Rembrant is now a beautiful art gallery used for wedding receptions and meetings.

Two doors down from the Rembrant Yard is the Shambala Center that is a part of an international community of urban meditation and rural retreat centers founded by the Venerable Chögyam Trungpa Rinpoche. The temple on the top floor is amazing. We will hold morning meditations here for those interested in starting off their LOHAS Forum days in a calm collected way.  We will also hold afternoon breakout sessions here that focus on personal development and spirituality as they relate to business.

The Boulderado Hotel is our hotel that we will direct people to reserve rooms and will be where the opening reception is held. The hotel has become a National Register Landmark and is a member of the National Trust's Historic Hotels of America.  It has a Victorian elegance that will embrace you from the moment you step foot into the lobby. Check out the stained glass ceiling and cantilevered cherry wood staircase. We will also have our speaker/sponsor lunch here at Q’s and afternoon breakout sessions. For St. Julien diehards we also have a room block reserved for you but it will be off the beaten path a bit. Room reservation details for these hotels and others nearby can be found on our travel/hotel page.

All of these locations are within a block of each other and gives attendees a chance to see some different aspects of Boulder than we have provided in the past. Plus you get some Colorado fresh air intake between sessions!

Taking Home Some Meat (Vegans Too)
Not only will LOHAS have a change in location but our program will have some exciting new aspects. We will have several 2 hour workshops that allow participants to dive deep into subject matter. These workshops are very hands on and will provide tangible take away with regards to LOHAS. Check our program page for regular updates.

We are also excited to have some great keynote speakers lined up for the LOHAS Forum. These include Founder of Joie de Vivre Hospitality and book author Chip Conley. Chip has written a new book on Emotional Equations and has applied mathematical relations to emotions (ex. Joy = Love – Fear). Chip spoke at LOHAS 3 years ago on his book Peak; How to get your Mojo From Maslow and was voted by attendees as the most favorite speaker. We also have Barbra Marx Hubbard who has been a pioneer in conscious evolution. Buckminster Fuller has called Barbara Marx Hubbard “the best informed human now alive regarding futurism and the foresights it has produced.” She will be talking about the post 2012 society.  John Francis, otherwise known as the planet walker, will share his story on how he walked across the U.S and South America during a 17 year vow of silence. I have no idea how he could do this as my wife says I can’t seem to shut up for 5 minutes.

For corporate attendees who are reading this – don’t worry. LOHAS is not all touchy-feely (although you may get asked for a hug from someone). We also will focus on how to engage stronger corporate responsibility and communications with the LOHAS market. Toyota, one of our sponsors, will be discussing the latest technologies in the auto industry. Several strategic green marketing agencies will be presenting their latest data on consumer studies.  Google’s Gopi Kallalyi will be speaking on improving performances of teams to maximize revenues. I was introduced to him through the Jolly Good Fellow of Google who I met earlier this year.  Jane Iredale, founder of Iredale Cosmetics will share what it is like to be a woman CEO and how she deals with tough business decisions. Presidio Graduate School will be discussing the future of our upper education’s relevancy.

Call for Presenters
Our program will be developing and evolving over the next few months. For those interested in submitting a speaker for a breakout session or workshop you may do so on our website.

Sponsorship Opportunities
We have a variety of sponsor options including gift room placement, exhibiting and larger sponsor presence. For details download our sponsor materials or contact ted.ning@lohas.com.

Student Scholarships
This special program is for students who are studying classes with emphasis on LOHAS and who have plans to enter a LOHAS industry. If accepted the total registration fee will covered. Apply here. We will select winners in early May.

As you can see we have a lot going on and a lot to be excited about. To keep up on LOHAS Forum 2012 progress sign up for our weekly newsletter or come back to our blog to check things out. We are very excited about this year and hope to see you there!

Have you ever thought of applying logics of mathematics to the irrationalities of emotion? That is what Chip Conley has done in his latest book Emotional Equations. Chip is fonder of Joie de Vive boutique hotels which is the After experiencing some intense setbacks in his life including collapsing at during a presentation and flat lining for 30 seconds, Chip decided to take a step back and re-evaluate the direction of his life. He realized that he was a workaholic, denying his true self. He took his own research tour that included Bhutan to examine their national happiness index and presented his findings to his hotel staff.  Using brilliantly simple math that illuminates universal emotional truths, Emotional Equations crystallizes some of life’s toughest challenges into manageable facets that readers can see clearly—and bits they can control. Math is all about relations but no one takes the mathematical format and applies it to emotions. Making mathematics out of emotions may seem a counterintuitive idea, but it’s an inspiring and incredibly effective one in Chip Conley’s hands. Conley, dynamic author of the bestselling Peak, began using what he came to call “Emotional Equations” (like Joy = Love – Fear) to help him focus on the variables in life that he could deal with, rather than ruminating on the unchangeable constants he couldn’t, like the bad economy, death, and taxes. With his wit and personal story Conely explains various emotional equations and how they work and how to apply them to everyday life. The book is very inspiring and is a great way to reexamine some of the reasons why we may feel stuck and how we can reconnect with the inspired self if we adjust our emotional equations accurately. Chip will be presenting his thoughts on Emotional Equations at the upcoming 2012 LOHAS Forum in June.

Here is a clip of when he presented 3 years ago at LOHAS.

Contributed by Scott James

This 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.

by Scott James

This 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.

Written by Jean Houston

As I travel around the globe speaking and training, I have consistently found that most people ask me the same question, ‘how do I discover my purpose in life?’  In the past, who you became was determined by your family and circumstances. You didn't have much choice. But now there is an open moment in history where you have the chance to tap into the soul of your purpose. 
 Millions of people right now are experiencing a yearning and desire to awaken to their unique gifts and offer them in service to the world—while living a life of joy and fulfillment. It's a surging of the human spirit, a virtual global awakening, at a scale that no one has ever seen before. Simply put, people are longing to finally feel fully alive and to fulfill their unique purpose in life.
So then why is living a life of meaning and purpose so difficult? It is because our current social systems have not been set up to prepare us to live a life of true purpose. That's because today's culture exists not to nurture our highest aspirations, but to ensure our basic survival.

Our educational system is designed to create good workers who will slot into jobs and careers later in life—not to empower fiery, creative people who are forging the path ahead together.

Our social contracts exist to perpetuate the status quo—not to encourage our highest potentials to blossom. Is it any wonder why so many people's best attempts to evolve themselves and our culture fall short of the goal? We simply haven't been trained in how to bring the possible future into the present.

It's not that they don't have the talent or interest to live purposeful, meaningful life. The issue is far simpler. People struggle to activate their "purpose code" because they haven't woken up to--or are only partially awake to--our situation as a human race. Most people hold on to old, limiting beliefs of themselves and our human story. Overwhelmed by all the changes in the world around them, most people live their lives within a "small story," and therefore confine themselves to a "small self." That's why so many people feel that they don't have a purpose, or that they aren't able to actually *live* the life they were born to live.

     There is a saying that “What the caterpillar calls the end of the world, the master calls a butterfly.” I believe that it is butterfly time.  Just as the guidance cells in the mush that is the caterpillar in its cocoon suddenly begin to activate the transformation of mush into butterfly, so too this is the time when we realize that the guidance or imaginal cells of our bodies, our communities, and, yes, even of the cells of our planet are calling us to come together in all our parts to form something gorgeous, interdependent, living lightly on the Earth, cross pollinating cultures, ideas, spiritual forms, glowing with the light that suffuses us, becoming transparent  to transcendence.  And to rise out of the mush we have been caught in these many hundreds of years and to take flight in the air of the new story which is emerging in our time. 

 For the fields we traverse, the many flowers of mind states and soul knowings we now enter are those that belong to the whole, earth, to many cultures, to what I am calling PanGaia. And as the butterfly pollinates and cross pollinates from place to place, flower to flower, so do we also if we have the will and the willingness to discover our purpose and  be part of this extraordinary moment in time.

Three Keys to Empowering New Beliefs

 The first key to activating your life's purpose is to hold new beliefs about yourself and about your role in the Great Story of where humanity is headed.

       Living a great life, requires that you understand the challenges and opportunities of our moment in history. To understand this for myself, I've gathered information from my work in over 100 countries and 40 different cultures and what I've discovered has served as a sure guide on my path. Specifically, I have found five great shifts in our understanding of the story of our time that are affecting everything we do today.  I believe that awakening to the power of these shifts will help you cultivate your sense of compassion and of the infinite possibilities of this moment.

The five shifts are:
• Our understanding of who and what we are and what we need to become in order to be able to deal with the complexity of our time is evolving.

• Human societies are in the process of re-patterning. Social constructs are dissolving and whole new stories are trying to emerge, such as the rise of women to a full partnership with men across the globe, and many others.

• How we conduct business and governance is shifting in the midst of vast ecological and financial changes.  This is perhaps the most important social event of the last five thousand years, because these issues  impact almost everything in our lives.

• The rise and fusion of different cultures--we are swiftly moving towards a planetary civilization that accentuates the uniqueness of each culture while blending them together. Think of the great fusions of food and of music and of beliefs.

• Whole new orders of spirituality are emerging that are not about religion. The new cosmologies are giving us a view of ourselves that we never had before. For the first time ever, we find that we don't just live in the universe, but that the universe lives in us.
      

This journey begins by letting go of old beliefs and patterns to make room for the new beliefs and capacities that will empower you to awaken to and live your higher purpose.

 The Second key allows you to discover and realize the vast field of inner intelligences—using multiple means of knowing and being in order to gain insight into life at a level to which that most people rarely have access.  These skills are to be found on four levels of your human capacity, sensory-physical, psychological-emotional, mythic-symbolic, and unitive-spiritual. As you learn how to utilize the extraordinary capacities to be found at each of these levels you literally move into new ways of being.  For example, you will learn how to play with time in such a way as to take five minutes and experience it internally as hours—these are "hours" you can use to develop a skill or move a project forward.

You will learn to access "inner experts", willing helpers or personas that will help you navigate the complexity of life with elegance and confidence.
 
The third key gives you the means to break free from unconscious, habitual ways of reacting to life that were born thousands of years ago, and embrace higher ways of being for a new era.You will discover ways to move through life with ebullience in your bones and an appetite for celebration—seeing everything as an expression of the Creator. You will move through life, motivated not by guilt or obligation, but by gratitude and an abiding zest for doing the things that are called forth by living out of your higher purpose.

Dr. Jean Houston is presenting a FREE 75 minute downloadable audio seminar entitled 3 Keys to Discovering and Living Your True Purpose Available Now at www.DestinyandYou.com .

Dr. Jean Houston is a Scholar, Philosopher and one of the foremost visionary thinkers and doers of our time. She is considered one of the principal founders of the Human Potential Movement. A powerful and dynamic speaker she has served as consultant to several agencies of United Nations including UNICEF and the UNDP. She has worked in over 100 countries training leadership at every level to enhance skills and purpose so as to bring a new mind to bear upon challenging issues. A prolific writer and author of 26 books including A Passion for the Possible and The Mythic Life, Dr. Houston has recently joined the faculty of Evolving Wisdom, today's fastest growing global e-learning company specializing in transformative education, to provide her wisdom online in a cutting edge format.
www.DestinyandYou.com

Written by Scott James and repubilshed from Forbes

This month we have a tale of civil disobedience and the corporate response that touches nearly every household in North America.  It stretches from old growth forests of Canada to corporate boardrooms in Dallas. Oh, and a visit from Dr. Seuss’ Lorax. But first, my guest for this month’s interview, Dr. Michael Conroy.

In addition to being one of the go-to experts on product certification systems (his book on the topic stays in the short book stack on my desk for frequent reference), Dr. Conroy is a retired professor of economics, a board member of the Forest Stewardship Council (FSC) and an established “big picture” thinker. One of my companies produces an FSC-certified product, which gave Michael and me an excuse to reconnect recently. I asked him about the CSR movement here in the States, as well as what he sees abroad.

Scott: You travel internationally way more than I do, Michael. Tell me about where we (the US-based CSR community) are succeeding in relation to the rest of the world.

Michael: I’ve got an interesting story for you that starts in 2004. Back then a group of advocacy NGOs – led by Greenpeace – began campaigning to get Kimberly-Clark to reduce its impacts on intact forests and old growth forests around the world by purchasing its fiber from eco-certified forests and/or recycled paper sources. Kimberly-Clark (KC) is arguably the largest purchaser of wood fiber for tissue products in the world; and it has some of the best established brands in the world, including Kleenex, Scott, Cottonelle, and more.

Scott: I know from time spent in Texas that they’re in Dallas and have sales of $15B+ [It was actually almost $20B for 2010 when I looked this up later, but what's a billion or two between friends].

Michael: Greenpeace and company created a campaign called Kleercut to mimic the Kleenex brand.  Over the course of the campaign more than 50 activists were arrested for peaceful civil disobedience linked to KC.  The campaign focused on equating “Kleenex” with “Kleercut” and the forest damage created by the companies selling to KC.  They proceeded to drum up support across grocery stores and college campuses, and succeeded in media hits as big as CNN Money and Fortune Magazine.

Scott: Is this the Dr. Seuss thing?

Michael: Yes. You’ll remember that in The Lorax Dr. Seuss has trees speaking for the plight of the environment.  They rewrote the story to “personalize it” around KC and its suppliers, and then they acted it out, in costume, in front of the offices of KC board members!  It always drew a great local media response.

Scott: So did it work?

Michael: Yes, the campaign succeeded in bringing KC to the table and in August of 2009, KC and Greenpeace jointly announced new sourcing policies for KC fiber that included a goal of ensuring 100% of the fiber used in all its products was from environmentally responsible sources, with a clearly expressed preference for FSC fiber. It pledged by 2011 to increase its use of recycled and FSC-certified fiber in North American products to 40%, and by 2012 it would no longer use any pulp from Canada’s vast boreal forest (a principal source at that time) unless it was FSC certified.  By the end of 2010, well ahead of the target date, it had already reached 57% of its North American sourcing from FSC-certified or recycled fiber.

Scott: What implications and impact did that have on the rest of the industry, beyond the Canadian borders?

Michael: As a direct result of KC’s rewritten fiber sourcing policy, some of the largest forest products companies in the world are now actively seeking FSC certification of their supplies of wood chips and fiber.  This includes companies that had actively opposed FSC standards as too demanding and too costly to implement.

Both of the largest forest products companies in Chile (Arauco and CMPC/Mininco) which account for 80% of Chile’s forest products industry, are in the midst of the FSC assessment process, changing their practices to meet FSC standards, at a cost of millions of dollars in re-tooling and re-structuring their operations.  Both of those companies were co-founders of Chile’s competing forest products certification system, CertFor, and had resisted FSC certification for years.  But they had begun to find that markets placed little or no value on CertFor certification, whose standards were weaker and less demanding.

It has taken both Arauco and CMPC/Mininco more than a year to design and implement the changes needed to meet the standards.  And both companies, in private conversations, have told me that changes in purchasing policies of major companies like KC have made them realize that they needed to be FSC certified if they want to be able to sell to the leading branded manufacturers of wood and fiber products worldwide.

In Brazil, the pulp and paper industry, major suppliers of KC and other tissue manufacturing companies, have become so focused on FSC certification that their industry association, Bracelpa, has become a major contributor to the costs of FSC-Brazil’s office and a supporter of training workshops that inform the Brazilian paper products industry on the “whys and wherefores” of FSC certification.

Scott: Tell me more about the “whys and wherefores” and the benefits to both the forests and the companies doing business in forestry products.

Michael: Well, on the ground this means a number of important things. FSC requires respect for, and protection of, the rights of indigenous peoples, at levels often beyond the requirements of national legislation. Indigenous groups have now found that FSC is a new and powerful tool in their negotiations with forest products companies about access to, and use of, traditional lands.

FSC also has more stringent rules on environmental management, protection of biodiversity, and reduced areas of clear-cutting, greater setbacks from streams, rivers, and lakes than any other certification system, and stronger than almost any national legislation around the world.  It requires engagement with local communities, protecting them from the negative impacts of logging (i.e. roads and bridges damaged, water polluted, etc.) and encouraging active hiring of local service providers, local technicians, and local labor.

The chain-of-custody certification in the FSC system provides strong assurance that products produced in compliance with the standards can be traced from the forest, through any and all processing, and right down to the final product sold to consumers.

The number of acres certified to FSC standards in North America is now more than 135 million, about one-third of the acres certified worldwide. In terms of the effect on other industry players besides KC, demand for FSC-certified wood and fiber products is booming worldwide.  Our closest aggregate measure of demand for the FSC products is the demand for Chain of Custody certificates, required of companies processing certified wood and fiber for products taken to retail markets with the logo. These have grown from 16,000 worldwide to more than 22,500 (50% growth) over just the last 18 months.

Scott: And how did KC come out of all this?

Michael: KC rolled out its first KC Professional FSC toilet paper and other products in late 2010 (KC Professional serves hotels and other business/institutional buyers).  It began selling Kleenex with an FSC logo on the bottom of the box at Costco stores late last year, and it is now going national throughout the US, supplying “FSC Kleenex” to virtually all consumer outlets.  An amazing transformation in just two years!

Scott: Excellent. It will be interesting to watch the response of consumers to the logo. Thanks for your time, Michael!

Here 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.

Written by Scott James

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.

By Nathan Rice of Haberman

Where does a pioneering filmmaker with the idea to celebrate agriculture in the U.S. go for funding? What about a scientist with an innovative plan for improving the growing potential of urban gardens? What about someone kicking around a design for a new farmer’s market? Kickstarter.com, or its crowd-based funding brethren Kiva, is a great place to start. Kickstarter (www.kickstarter.com) is a relatively new website designed specifically to support the funding of creative projects. These projects can range from promising innovative concepts to some that might be categorized as duds. That is the beauty of the system – those with a pioneering attitude and an entrepreneurial spirit can both get funding, while kicking the tires on an idea at the same time.

The inspiration behind Kickstarter is to get a large community of people backing a project in an all-or-nothing funding style (i.e., only fully-funded projects receive the money donated to them). Users of the platform offer various incentives to encourage backers to rally for their product. These incentives can vary significantly – a personal visit from the funder to report the results directly to you, a DVD of a documentary of a film, a personalized thank you card, or in one case of a $1 donation to help scientists study soil saturation in an urban garden – “a wink and a nod for being sustainable.”

A few examples of some kick-starters from food pioneers shows the great thinking and innovative concepts seeking crowd-sourced funds:

Small Farm Rising is a documentary short “inspired by first generation farmers who are redefining agriculture in America.” It is also a recipient of 103 microloans totaling more than $14,000 to help get the film finished. They blew past their goal of $9,000, giving these filmmakers both the funds and the inspiration to carry out their objectives. Thanks to the micro investors on KickStarter.com it looks like the  story will get told.

Even the big boys are getting involved. Earlier this year, Sundance Films partnered with Kickstarter and Facebook in an initiative to help their aspiring film makers get a leg up through crowd-based funding.

Seeing Green: The Value of Urban Agriculture is a research project designed to “measure storm water management potential of two urban farms; Brooklyn Grange (a rooftop farm) and Added Value (raised beds) in NYC. The project is currently $2,600 short of its $12,000 goal. This looks like a cool project but fundraising is still fundraising whether it is online or offline – investors need to be inspired.

Atwater Village Farm Market (Northeast Los Angeles) is billed as a connection point between neighborhood, community, city and the environment. The village is projected to allow for “a healthy lifestyle to be sustained or developed,” a truly LOHAS-inspired goal. The group behind the idea is seeking funding to purchase things like refrigeration, food storage and equipment. The project has already received donations totaling  $11,000 but is still short of its  $20,000 goal with 34 days to go.

As innovators seek funding to expand their ideas and grow the market-share and awareness of Lifestyles of Health and Sustainability, digital, crowd-based funding offers exciting possibilities.