csr presentation

PMA Board Meeting

Corporate Social ResponsibilityOctober 7, 2008

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• What’s Our Agenda?

• What’s Their Agenda?

• What’s PMA’s Agenda?

AGENDAAGENDA

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WHAT’S OUR AGENDA?WHAT’S OUR AGENDA?

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Save Now !

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– we want to feel more confident about the economy

– we are concerned and want accountability for food, health, products, environment

– we want green products that are real solutions

– we don’t want to be guilty

– we don’t want to leave a mess for our kids

‘‘Our’ Agenda is….Our’ Agenda is….

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• 50 million Americans

• Strongly aware/deeply concerned about issues facing planet– Taking action to address them

• Focus on health, well-being

• Wiser consumption

Source: Cultural Creatives, by Paul Ray/Sherry Anderson, culturalcreatives.org

“Cultural Creatives”

Who are ‘we’?Who are ‘we’?

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Lifestyles of Health and Sustainability (LOHAS)

Source: LOHAS, lohas.com

• Integrate social, political and economic values with their actions in the marketplace

• Roughly 1 in every 3 people in U.S.– 58 million adults

• Authenticity and transparency key

Who are ‘we’?Who are ‘we’?

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(1) Healthy lifestyles: organic & natural foods

(2) Ecological lifestyles: ecotourism, eco-products

& natural building/green design

(3) Sustainable economy: self-sufficient, eco-friendly

• Alternative healthcare

(5) Personal development: yoga & spas

5 key LOHAS market 5 key LOHAS market segmentssegments

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6 MRI segments6 MRI segments

SEGMENT %

Green advocates 2

Green at their best 16

Green but only if 6

Green in theory 18

Green at the market 10

Ungreen 48

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Roper segmentsRoper segments

True-Blue Greens: Environmental leaders and activists most likely to walk the green talk representing almost one third (30%) of the population.

Green-Back Greens: Do not have time to be completely green and are not likely to give up comfort and convenience for the environment, but are willing to buy green products. They represent 10% of the population.

Sprouts: Environmental “fence sitters” who buy green only if it meets their needs; they account for just over one quarter (26%) of the population.

Grousers: Generally uninvolved and uninterested in green issues, this segment believes individual behavior cannot improve the environment. They form 15% of the population.

Apathetics: Not concerned enough about the environment to take action, this segment believes that environmental indifference is the mainstream. This group represents 18% of the population.

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Yankelovich segmentsYankelovich segments

▪ Green-less (29%) Unmoved by environmental issues and alarms

▪ Green-bits (19%) Don’t care but doing a few things

▪ Green-steps (25%) Aware, concerned taking steps

▪ Green-speaks (15%) Talk the talk more than walk the walk

▪ Green-thusiasts (13%) Environment is a passionate concern

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but….

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Every ecological system is in decline– Habitat destruction & poor land use decisions– Air & water pollution– Over fishing or harvesting

Rapid loss of biodiversity– 90% of food supply from 15 food crops & 8 species of livestock

Our food system isn’t sustainable– For every calorie of vegetables raised, more than 10 calories of

hydrocarbons (oil) are needed– For every calorie of beef, more than 50 calories of energy are

needed

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WHAT’S THEIR AGENDA?

(how do you perceive these efforts?)

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?

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Bank of America: Green Bank or Greenwash?posted by Nell in Global Finance on April 3rd, 2008Or at least that was the question on the mind of Fortune Magazine’s Marc Gunther, in his “Black, White or Green?” blog post yesterday. On the same day as we awarded Bank of America CEO Ken Lewis the Fossil Fool of the Year award for being a lead financier of new coal-fired powerplants and mountaintop removal, he was in NY to accept an award from NRDC for the Bank’s new “green” skyscraper and their $20 billion commitment to renewable energy. The coincidence compelled Gunther to ask: “So is the Bank of America an environmental hero? A villain? Both? Or neither?”

As corporations and financial institutions begin to respond to the demand for action on climate change, it seems we are always in a state of wondering where a company stands on the green line. How can we tell with Bank of America? Well, just as Bank of America measures their bottom-line with ones and zeros, we’re measuring their environmental impact by where their money is. As of 2006, every $1 Bank of America invested in renewable energy was matched by another $100 spent on dirty energy. To use an appropriate cliché, perhaps its time they put their money where their mouth is.

Rainforest Action Network blog:

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BMW brought its not-for-sale-in-America 118d five-door to New York City to claim the 2008 World Green Car award... and that's probably the only time we'll ever see the thing on US soil. Immediately following the event, BMW packed up the car and put it on the boat back to Deutschland.

http://www.bmwusa.com//

http://www.bmw.com/com/en/newvehicles/1series/overview.html

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Clorox Green Works brought together a

reverse graffiti artist and a critically acclaimed documentary

filmmaker, to create an environmentally friendly work of art and a film about a philosophy

of clean.http://reversegraffitiproject.com

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Table of ContentsFrom the CEO 4The Timberland Footprint 6Summary of CSR Indicators 8The Organization 9Global Human Rights 16Environmental Stewardship 34Community Involvement 52Stakeholder Engagement 70Report Scope 72Standard Disclosures 78

At Timberland, we live by a simple challenge anda common commitment—“Make it better.” Everyday, we apply skill and passion to finding newways to improve our products. Strengthening ourrelationships with stakeholders. And enhancingthe communities where we live and work.“Make it better” is straightforward, practicaland common sense. It is a journey and not adestination. It can be found in small measures ofgoodness and in revolutionary breakthroughs inproduct technology. It’s the shoes we craft andthe green spaces we restore. And at the end ofthe day, our hope is that, through the people andplaces we touch, we do our share to create abetter world

THE TIMBERLAND COMPANY2006 CORPORATE SOCIAL RESPONSIBILITY REPORT


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Vodka with a “Green”

State of Mind

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Barbie® Introduces '‘Barbie™ BCause'' a Limited Edition Collection of Eco-Friendly Accessories for Girls

Barbie™ BCause Collection, Available Exclusively at Toys“R”Us Stores Nationwide, Reuses and Repurposes Excess Barbie™ Fabrics and Trimmings to Create Fashionable and Playful Handbags, Pillows, Diaries, Totes and Other Accessories

Environment & Earth DayEL SEGUNDO, Calif.--(BUSINESS WIRE)--Just in time to celebrate Earth Day in style, Barbie® introduces a collection of eco-friendly accessories for girls with the debut of Barbie™ BCause. The playful and on-trend Barbie™ BCause collection repurposes excess fabric and trimmings from other Barbie® doll fashions and products which would otherwise be discarded, offering eco-conscious girls a way to make an environmentally-friendly fashion statement with cool, patchwork-style accessories. Sold exclusively at Toys“R”Us stores in the Barbie® toy aisle, the Barbie™ BCause collection includes handbags, coin purses, hats, tote bags, pillows, diaries and more, each featuring its own unique variations and kitschy patchwork detail

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• “Food with integrity”

• Foods, design of restaurants, treatment of employees

• Vegetarian and vegan options

• Return on Investment & Return on Environment

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People crave transparency…

• U.K. McDonalds have built a campaign around “quality scouts”

• Unpaid volunteers take video of their findings, people can ask questions posted online– measures to counter documentaries such as “Fast Food Nation”

• Documented on website & in videos, communicated through ads & in blogs

www.makeupyourownmind.co.ok

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Deborah Doane, the chair of the Britain-based organization CORE Coalition (for "COrporate REsponsibility"), wrote an article for the Fall 2005 issue of the Stanford Social Innovation Review where she listed and debunked what she called "the four key myths of CSR." Those myths are:

1. "The market can deliver both short-term financial returns and long-term social benefits." According to Doane, not only are the interests of profit-seeking corporations and broader society often at odds, but socially responsible investments by corporations "are particularly unlikely to pay off in the two- to four-year time horizon that public companies, through demands of the stock market, often seem to require."

2. "The ethical consumer will drive change." Doane writes, "Most surveys show that consumers are more concerned about things like price, taste, or sell-by date than ethics."

3. "There will be a competitive 'race to the top' over ethics amongst businesses." While CSR efforts often "offer good PR," which companies of course like, "in some cases businesses may be able to capitalize on well-intentioned efforts, say by signing the U.N. Global Compact, without necessarily having to actually change their behavior."

4. "In the global economy, countries will compete to have the best ethical practices." Although companies often claim that their presence in "developing" countries will improve health, environmental and labor conditions, Doane counters, "companies often fail to uphold voluntary standards of behavior in developing countries, arguing instead that they operate within the law of the countries in which they are working.”

BUT….

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How about these #’s?



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…and these #’s?

63% are concerned about the environment in general

67% about their car’s gas consumption

46% global warming

65% recycle

49% look for energy-efficient labels on products

21% say the green movement is just a fad

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… and these #s?

70% of people are skeptical about marketer’s claims that they help the environment and society

Over one-third of CMOs are not aware of their company’s CSR initiatives

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A Few Questions?

• Who’s doing it right?

• Who’s doing it right in the mainstream?

• Is it ‘marketing’ or something else?

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WHAT’S PMA’s AGENDA?

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Some Competition



The Sustainable AdvantageWharton

Nov 13-15 Philadelphiawww.netimpact.org/conference








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AGENDA OPTION #1: IGNORE

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AGENDA OPTION #2:CAPITALIZE

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• Planet (environmental)– Enhancing, restoring and conserving nature

• People (social)– Customers, workers, vendors, investors

• Profit (financial)– Reinvesting for the future

The “Triple Bottom Line”The “Triple Bottom Line”

AGENDA OPTION #3: ENLIGHTEN

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pre-consumption

consumption

post-consumption

AGENDA OPTION #4: VALUE CHAIN

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1. Energy Efficiency,Conservation & Renewable

2. Water Efficiency & Conservation

3. Recycling & Composting

4. Sustainable Food

5. Pollution Prevention

6. Green Building & Construction

7. Stakeholders

Sustainability AgendaSustainability Agenda

AGENDA OPTION #5: DO IT ALL!

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AGENDA OPTION #6: COMMUNICATE BETTER

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PMA’s AGENDA?

Option

1. ignore

2. capitalize

3. enlighten

4. value chain

5. do it all

6. communicate better

7. ???

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PMA’s AGENDA?

Help members craft their company’s CSR agenda

Help members manage/execute their company’s CSR agenda

Help members fire up (align) their fellow employees around their company’s CSR agenda

Help members measure their CSR effortsHelp members develop the appropriate

communications/marketing to their customers

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Our Reco

The PMA can help member companies…

... define, design and implement their sustainability agenda… as a key function of their integrated marketing efforts

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Our Reco: Webinar Schedule• January 13, 2009: Contributing positively as a competitive advantage- Setting

Your Agenda- Ben Packard, Environmental Affairs Manager at Starbucks

• March 03, 2009: Sustainability equals corporate social responsibility- Being Realistically Bold- Sarah Severn, Global Director, Corporate Responsibility Horizons at Nike

• May 05, 2009: Changing the game: Movement marketing- How Consumers Are Thinking/Acting- Alex Petrov, SVP, General Manager at Lucerne Foods

• July 07, 2009: Brands and their impact: Practical approaches to changing the way we think and operate- William McDonough, Activist, visionary, author, consultant

• September 01, 2009: The concept of Sustainable Value Networks- Inside-out Agenda- Susan Chambers, Executive Vice President - People Division at Wal-Mart

• November 03, 2009: Open communication culture inside-out - a case study of the Patagonia Footprint Chronicles- Rick Ridgeway, VP Environmental Programs & Communications at Patagonia

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Our Reco: Specifics

- Turnkey chapter meeting materials from the webinars

- A way to assemble a virtual resource center (?)- Trend research specific to CSR/marketing

- Of consumers and their reactions to company/brand efforts

- Of marketers and what they’re doing/seeing and how it’s working

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Next Steps

• Board Approval to a ‘hybrid’ CSR CoE• Build out the webinar series speakers• Ensure the materials, recordings etc are

available to the chapters• Determine the feasibility of an online

resource center for CSR• Determine how best to do trend

research

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Thank You

[email protected]

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