Archive for the 'Worldchanging biz' Category

What is Responsible Business, Really? Perspectives from Stonyfield Farms and Clif Bar Founders

Thursday, May 1st, 2008

Tuesday night sustainability leaders from all over the Bay Area made their way to the Berkeley facility of Clif Bar and Company to hear Gary Erickson, Kit Crawford (the husband and wife co-owners of the pioneering Clif Bar and Company) and Gary Hirshberg (President and CE-Yo of the tremendously successful and equally pioneering organic dairy producer Stonyfield Farms). The event, organized by the Good Business Network of sustainability decision makers and thought leaders, aimed to reveal the stories behind the entrepreneurs whom built wildly successful companies, from both financial and non-financial perspectives. The stories they shared were inspirational, of course, many of which I’d heard before or read in their books, Stirring It Up: How to Make Money and Save the World, published this year by Hirshberg, and Raising the Bar: Integrity and Passion in Life and Business: The Story of Clif Bar & Co.. I left convinced, however, that Clif Bar and Company and Hirshberg fundamentally disagree on the role of social responsibility in a company. The event by no means turned into a bloody fist fight (in which case my money would have been on on Kit), but left at least a few of us with an unsettled feeling that even some of the most respected people behind values-driven companies aren’t really working together.

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Check out my response to Adam Werbach’s “Birth of Blue” on Triple Pundit

Monday, April 21st, 2008

Triple Pundit LogoI’ve posted a response to sustainability thought leader Adam Werbach’s speech on “The Birth of Blue” on Triple Pundit, a well-read blog on green business and design from one of the creators of Treehugger.

Check out the post to learn about the movement that will soon supersede the taking-the-world-by-storm green phenomenon.

The Comcast Twitter attack

Tuesday, April 8th, 2008

Earlier this week, prominent blogger Michael Arrington lashed out on Comcast after his service went down. Then something happened that I’ve never seen before.

Michael posted his frustrations on Twitter, a microblogging service that does what it sounds like it should do–enables blogging–but is limited to 140 characters and can be posted to via the web and SMS message. Twitter is commonly used to share quips and aha moments, especially those in the web’s public eye (like Arrington). He twittered:

Then, after 36 frustrating hours of downtime, many calls to Comcast’s customer service, who had kept him on hold for 30 minutes at a time and misinformed him that they were experiencing a California-wide outage (he had visited a nearby friend’s home whose Comcast service was functioning perfectly), he received a call. On the other end was a Comcast executive in Philadelphia who, claiming that the company monitors Twitter and blogs, sent a team out to his home to immediately fix his service.

In just a matter of minutes, a wildfire had erupted and been extinguished, thanks to Comcast’s reactive efforts.

The fire burning:


And finally:

In his follow up post on TechCrunch, Arrington then declares Twitter “an early stage warning system for brands and companies” and instructs readers to “skip the hold time on their customer service line and go on the attack at Twitter instead.” But Arrington is dead wrong, Twitter and the blogosphere are late stage warning systems. Sure, by following Twitter, Comcast was able to intervene before Arrington and his angry mob had followed through on their threats. But had Comcast proactively engaged in a dialog with its consumers, its failure to meet customer service expectations would have been made clear years ago (check out this YouTube video for one story).

It is natural to assume that someone with as powerful a voice as Arrington would expect companies to monitor and respond to his rants, but for the rest of us without 700,000 RSS subscribers and 12,000 Twitter followers? Reactive communication is not the answer.

Update: Comcast is actively participating in conversations with consumers via Twitter. This definitely doesn’t scale but is very interesting to watch unfold.

Starbucks ideas, open for conversation

Thursday, March 20th, 2008

Starbucks has just launched My Starbucks Idea, the Salesforce Ideas-powered platform that lets consumers shape the future of its business. This new effort arrived just in time, as its brand and experience turned bland, trading quality and connection with consumers for explosive, world domination aimed growth.

Just like the platform that Salesforce built for Dell, My Starbucks Ideas allows consumers to suggest product, experience, and social responsibility ideas, engage in discussions with Starbucks representatives about them, and vote which ones are worth the company’s real consideration. Ideas that stick, theoretically, will be implemented.

The top ideas so far (as of Wed, March 19th):

  1. Loyalty rewards, like buy 10 drinks get 1 free program
  2. Free wi-fi
  3. Free drink on your birthday
  4. Automated drink order kiosk/system, to skip lines and pleasantries
  5. Healthier breakfast

But are all Starbucks customers self-serving, free cafe mocha demanding line skippers? Nope, check out the top ideas for Starbucks’ social responsibility:

  1. Recycle
  2. Travel mugs as part of the Starbucks experience
  3. Use less energy (suggested by a Starbucks employee who took the liberty of installing CFLs in his/her own store)
  4. Glass, plastic recycling and compost bins in stores
  5. Reduce waste–human health depends on environmental health

My Starbucks Ideas is a big, positive move for Starbucks for two reasons. First, Starbucks’ communication department tried to convince me last year that the company doesn’t need to invest in engaging its consumers online because it already touches millions of them in person every day. Wrong. According to the 2007 National Consumers League study, 79% of consumers are actively seeking information about companies’ social responsibility, looking online first. The conversation was simply happening online without Starbucks. Second, Starbucks’ focus on growth traded the authenticity of the brand and openness to feedback for higher, blander sales. Rather than listening to them, the company made consumers feel like activists for their concern about the environmental impact of their indulgences.

Social web technology is finally connecting people and companies again, as we connected with local store owners before the rise of globalization, big box retail, and the low, low prices we demanded. For example, the local coffee shops I frequent in San Francisco have listened intently to their customers, adding bins for recycling and compost, using biodegradable straws and to-go cups, serving drinks in real cups, implementing loyalty punch cards, and installing free wi-fi, because that is what consumers wanted. Meanwhile, Starbucks was building stores, serving blander coffee and experiences than ever before. Is it any wonder why Starbucks isn’t Wall Street’s favorite new toy anymore?

Yet, if Starbucks listens to what its customers and employees are saying, its dreams of a ubiquitous, Utopian experience that enriches lives might actually come true. Don’t take it from me, take it from Howard Schulz:

This is your place. Let’s see where we can take it together.

The Green Bubble: Concern for the future of Timberland and values-driven business

Monday, March 3rd, 2008

I’d like to consider something dismal. As we experience what many might call a “green revolution,” the most powerful companies in the world are reinventing their businesses to incorporate and communicate their values and commitments to use, waste, pollute less and do more for society in general. But what if the movement passes without any real progress, because consumers get overwhelmed with noise about carbon emissions, natural, organic, and products made from recycled content, and they simply can’t sift through the bullshit any longer? What if the companies truly dedicated to doing good never get their chance, drowning in the tidal wave of noise that they thought would lead their businesses to the opportunity to make a real impact on people’s lives?

While I’ve always hoped that principles of sustainability would be permanently incorporated in the core of successful business, I fear that the way they are communicated today is only deafening the ears of the American consumer.

The outlook of Timberland, a company that I have grown to love for its pioneering efforts as a responsible business, isn’t good. Well, there is both good news and bad news for the company.

The good news at Timberland is that they are still setting new precedents in responsible, transparent business. Timberland recently decided to cut out all the dense prose out of their reporting, which no one reads anyway, and to provide the cold, hard data that matters in a dashboard format on a quarterly basis, saving the analysis and summarizing for a report that is released every other year (don’t expect another one until 2009). This is good for stakeholders and it’s good for Timberland since data will be made available to stakeholders on a more timely basis and less of Timberland’s resources will be wasted on content that no one is reading anyway.

The bad news at Timberland is that, as the company’s revenues continue their decline, there is the possibility that the company could quickly lose sight of its values, especially those aspects of its brand with which consumers can create an emotional connection. I fear that the company could too easily turn itself into yet another company that makes products without any real meaning or substance as it receives increasing pressure from Wall Street.

From the outside, Timberland appears disturbingly confused. It’s a pioneer in sustainability and responsible business, yet few consumers really know it. And for those of us who do, and love what the company does, it’s hard to believe that Timberland is designing clothes for those of us who share its values. Its management could learn a lot from the fanatical consumer base of Seventh Generation, which has catapulted its revenues and appears to do everything in its power to create a meaningful connection with its consumers. Meanwhile, I can’t find a single Timberland product that I like (or can afford, since I pretty much rule out all $30 t-shirts on sheer principle). It appears that while the rest of industry is touting their achievements in green, Timberland, a leader with the disposition of an awkward teenager, is still trying to find its voice.

If I were Jeffrey Swartz, Timberland’s CEO, I would build an entire department (how about a VP, Consumer Relationships) to focus on creating a meaningful connection with consumers (online, duh, it’s 2008), and let those connections guide the future of Timberland’s products, not the other way around.

I fear that as the green arms race presses on, consumers will become desensitized to companies’ achievements in sustainability because the medium, traditional advertising, trades authenticity for distribution, while never really engaging consumers in a meaningful way. I am scared by the possibility that Timberland and other values-driven companies will never drive or influence the future of business because when consumers were listening most intently, an army of companies sounded fog horns from inches away, without thought or knowledge of what the consequences might be, turning green into a throw away love affair, when it could have instead led to a wonderful long term, committed relationship between enterprise and our Earth.

Disclaimer: I value your trust in the objectivity of my writing. Please note that our company, BIG Inc., has relationships with and is in discussions with Timberland about its CSR communications. Yet, I didn’t sugar coat my thoughts above and was, if anything, more critical. I guess you could call it a bit of tough love.

YouTube transparency: the disgusting state of meat, crackdown begins

Monday, February 18th, 2008

Its all over the news. The largest recall of beef in history has been ordered, 143 million pounds, by California meat producer, Westland/Hallmark Meat Company.

The video, taken by a worker at the cattle slaughterhouse, was released by the Humane Society, reveals cattle too sick to stand or walk (called “downers” by industry) being “kicked, beaten, dragged with chains, shocked with electric prods, sprayed in the face with hoses, and rammed by forklifts in efforts to get them to their feet to pass USDA inspection.” Basically, we’ve been eating beef that would not have otherwise passed USDA inspection, and that includes school children too, if you hadn’t yet lost your appetite.

The video that started it all, showing a sick cow
being rammed by a forklift. Ouch.


The meat of this story actually has nothing to do with the recall.
The Times quoted Dr. Richard Raymond, the Agriculture Department’s under secretary for food safety, saying “the great majority has probably been consumed,” and I’m betting that less than 1% of the meat will actually be disposed of. This story is about YouTube transparency. Whether we like or not, consumers now have more access to the vivid footage and raw information that will continue to put into question the moral and social implications of our behavior, as individuals, society, and corporate America at large. While we may have been able to remain comfortably oblivious to the real story about how our meat actually got to be wrapped in cellophane and styrofoam yesterday, today we get to see the YouTube compliment to Michael Pollan’s Omnivore’s Dilemma, and it makes one’s stomach turn.

This is just the beginning. If CEO John Mackey says that even the farms that supply the health (but not so much price) conscious shoppers of Whole Foods have “a long way to go,” the media explosion we’re watching right now is only an indication that the information gap between consumers and farmers is about to be closed, or at least significantly narrowed.

It comes down to transparency, not standards. Westland/Hallmark has replaced its entire website with a public statement made by its President, Steve Mendell. Clearly, farmers are a decade or two behind in their corporate communication strategies. The hugely disappointing aspect of the response isn’t its “safe” or somewhat defensive nature, arguably a cause for more consumer distrust, but its focus on food standards. This recall isn’t about FDA standards–apparently, those can be manipulated–it is about the complete lack of transparency and information that has led us to eat food that we likely would not have otherwise.

CEO Mendell’s letter on Westland/Hallmark’s website:

WESTLAND/HALLMARK MEAT CO.

February 3, 2008

As President of Westland/Hallmark Meat Co. I want to reassure our customers and consumers that our company has met the highest standards for harvesting and processing meat under the Federal Meat Inspection Act. A fulltime USDA veterinary medical officer has been assigned to our facility for many years, and he oversees the work of three inspectors in the harvest operation and another inspector assigned to the processing operations. In addition, we have had a full time official from the USDA’s Grading Service in our operation for the purpose of ensuring contractual compliance for the meat we sell to the USDA commodity program.

During 2007, we had 17 third party audits of our operation to confirm that we meet the statutorily mandated humane handling and food safety standards. In addition we have conducted 12 internal audits by our own personnel to ensure that such standards are met. We also, conduct weekly humane handling audits based on standards set forth in the American Meat Institute’s (AMI), Recommended Animal Handling Guidelines and Audit Guide 2007 Edition, which was authored by Dr. Temple Grandin, a world renowned expert of humane handling practices. Complete documentation of this activity has been made available to the USDA investigation team currently at our plant.

Words cannot accurately express how shocked and horrified I was at the depictions contained on the video that was taken by an individual who worked at our facility from October 3 thru November 14, 2007. We have taken swift action regarding the two employees identified on the video and have already implemented aggressive measures to ensure all employees follow our humane handling policies and procedures. We are also cooperating with the USDA investigators on the allegations of inhumane handling treatment which is a serious breech of our company’s policies and training.

As part of our own investigation, we have retained an outside consultant to take an independent look at our operations. He is a veterinarian who worked for FSIS in a supervisory position for 26 years all over the U.S. He spent two days in our facility with full and free access to all documentation and plant personnel. He told us in a written report that our records and programs are “the best he has ever seen in any plant.” We have provided his report to the USDA.

We have voluntarily suspended our operations pending the completion of the USDA investigation. We are dedicating our full efforts and resources to fully cooperate with the USDA investigative team that has been assigned to our plant.

Finally, I proudly assure our customers that we comply with all USDA requirements, including the requirement that only ambulatory livestock may enter the harvest facility to be processed for human food. I am confident that we have met this high regulatory standard.

Steve Mendell

President

Westland Meat Co.

Hallmark Meat Packing

Welcome to the future of corporate social responsibility (CSR). It’s changing the way we live, work, and now… eat.

Intel welcomes the green spotlight

Wednesday, January 30th, 2008

Corporate social responsibility is competitive advantage.

On Monday, Intel featured its big announcement about its enormous purchase of renewable energy credits on its slick new environment site on Intel.com. These initiatives champion new standards in Fortune scale renewable power use, as well as corporate communication, by adding detailed information about the company’s commitments to reduce the impacts of its products and activities on the environment. Meanwhile, many companies have yet to feature corporate social responsibility (CSR) information, in a prominent way, on their websites.

Intel Environment site

With 79% of us (consumers) seeking out information about companies’ social responsibility, using the internet as our primary resource, the ways in which companies communicate this information is a new arena of competitive advantage for 21st century business. Many of us are looking for CSR and environmental impact-related information first when we arrive at companies’ websites, and this information is now translating to real desire to work for, invest in, and buy from pioneering companies.

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Does corporate social responsibility (CSR) reporting matter?

Friday, January 4th, 2008

As companies like Whole Foods, Virgin, Google, and even Wal-Mart invest in doing the right things for society and the environment through buying wind energy, installing gargantuan solar panel systems, and reducing packaging waste, the hottest trend is to package it all up into 50-100 glossy pages of lawyer-proofed corp speak and heart warming pictures, touting the significant accomplishments of one’s own company. Welcome to the somewhat controversial yet big business of CSR reporting.

Does anyone read CSR reports? Do they actually accomplish anything? Are some companies focusing so much on reporting that they are forgetting to look deeper into their businesses for opportunities to do the right things for society and the environment? Join me as I call bullshit at OpenEco Energy Camp 2008, when I’ll be leading a breakout session with Marcy Lynn, Sun Microsystems‘ CSR Program Manager, who coincidently hopes that CSR reporting as we know it is something we will look back on and laugh about a few years from now, since no one is reading anyway (compare the less than 1,000 who read the CEO letter on the first page to Sun’s 33,000 employees).

Event details:

What: OpenEco Energy Camp, sponsored by Sun Microsystems
When: Thursday, January 10, 2008, opening session starts at 10:00 am
Where: Mission Bay Conference Center in San Francisco, CA
Cost: Free

Featured guests:

What are you waiting for? Register here and pass it along on Facebook.

MIT physics professor is a web star, why isn’t your company?

Wednesday, December 19th, 2007

Today, the New York Times featured the 71-year-old physics professor, Walter H. G. Lewin, who has emerged as an international internet sensation though MIT’s OpenCourseware, which offers videos and materials of lectures to the world, for free. The videos are syndicated, along with those of Berkeley, Stanford, and other prestigious universities on iTunes U, a new section of free videos on iTunes (theoretically they actually could start charging for these, but my hope is that they’ll always remain free).

If this 71-year-old physics professor, with his thick accent, glasses and crazy hair, and all his talk of propulsion and electrostatics can make him an international web star, why aren’t your CEO and the other charismatic people behind your company out in front, connecting to consumers as easily as they do each other on social networking sites like Facebook?

As I have said before, blogs aren’t the answer, they just add more noise to consumers’ lives. Most companies don’t have the discipline to maintain a blog that can effectively compete for consumers’ attention.

The next knee jerk reaction for many of us is to go where consumers are. The problem is that consumers use existing sites like Facebook and Myspace to interact with their friends and colleagues, not companies. On these sites, our companies’ participation is a distraction, not part of the core value proposition for their users. The community “culture” isn’t much of a cultural fit either, since users might go from commenting on how cute their friend looked in her New Year’s Eve dress to one about the environmental impacts of the materials our company might use, which we’d hope to be thoughtful and objective. Instead, we act surprised when comments range from “cool” to “sweet” or “this is stupid.”

Why does Lewin have a fan club who writes him “I walk with a new spring in my step and I look at life through physics-colored eyes” or “through your inspiring video lectures i have managed to see just how BEAUTIFUL Physics is, both astounding and simple,” from all over the world? I believe that the answer is that Lewin makes his content personal, and it’s driven by passion. Why else would he “fire a cannon loaded with a golf ball at a stuffed monkey wearing a bulletproof vest to demonstrate the trajectories of objects in free fall,” or “ride a fire-extinguisher-propelled tricycle across his classroom to show how a rocket lifts off?” The guy is bursting at the seams with passion, and you can bet that the minute he might try to sell something to his fan base, that authenticity that led to this powerful connection he created with his online audience would be lost forever, as it would in real life. Social web technology simply enables him to scale the personal interaction he creates within his classroom all over the world.

Remember the last company or division-wide meeting you had, with the executive who left you all feeling so pumped that when you returned to your desk, your job, and your life, your entire perspective had shifted? Imagine sharing that feeling with the world. Now you can.

Consumerism and the holidays

Friday, December 14th, 2007

During the holidays, in my family, we exchange gifts, decorate a tree, and lose ourselves in conversation with each other, catching up for any lost time. A couple times during the holiday season, I indulge in Peppermint Mochas at Starbucks. What makes the way we celebrate a bit untraditional could be our Christmas trees, which usually stand a foot or two tall, or our wish lists, which contain inexpensive items such as new running shoes for myself, a new hand vacuum for Nana (to replace the one we gave her a decade ago that has since died), maybe some new clothes.

When I see holiday advertisements that tell me that the only way into the hearts of those I care about is through diamond-laden jewelry (does “Every kiss begins with Kay” ring a bell?), or a new Mercedes with a big red bow on it, it makes me wonder less why consumers seem to be buying less each year, and why traditional advertising just isn’t effectively moving products any more. At some point, didn’t we all have to wake up and ask ourselves “do we really need all this crap?”

It was recently discovered that a Wal-Mart supplier has been employing sweatshop labor to satisfy the enormous demand of Americans for holiday ornaments. Would it have been a big story if the supplier didn’t sell to Wal-Mart… say, perhaps Ace Hardware? Probably not. But despite all of Wal-Mart’s efforts to ensure that its products are supplied from producers that can make cheap products, without breaking ethical rules, clearly this story has shown that their work isn’t yet done. Thanks to cell phone cameras, a brave factory worker, and the internet, we’re able to see firsthand why it is so important to encourage socially sustainable manufacturing. [See more pictures, video, and even what a sweatshop paycheck looks like here (hint: they bring home less than $1000 a year.)]

So what? Well, this week I had a chance to hear Warren Buffet talk about why he cares so much about investing in social equality. He said that each of us, in the beginning of our lives pull our ticket in the “ovarian lottery.” The ticket we select decides nearly every aspect of our lives–our gender, race, social status, the community in which we are born. If each of us were forced to pull a new ticket, we’d sure as hell want know that everything possible was being done to provide the same opportunities to live healthy, happy lives, to all of us, regardless of which ticket we chose. So, I am not, after all, telling you to boycott Wal-Mart. Just focus on what is most important this holiday–the people you care about, the spirit of expressing our affection for them, and the knowledge of how fortunate we are to have pulled tickets that have afforded us with everything we could possibly need. Do that, and maybe leave the crap that will end up in next year’s garage sale or at Goodwill anyway on the shelf, if you are so inclined.

Happy holidays!