“Those of us who have looked to the self-interest of lending institutions to protect shareholder equity…are in a state of shocked disbelief.” Stockholder Capitalism vs. Stakeholder Capitalism Alan Greenspan, Oct. 2008 “The whole intellectual edifice collapsed. This modern risk-management paradigm that held sway for decades, the whole intellectual edifice collapsed.”
Revolutions Reality Changes Old models don’t work. Old assumptions don’t produce results. Collapse of business as usual. Source: Tim Sanders, Saving the World at Work 1
We Have a Problem 83 % Say companies have a responsibility to solve social and environmental problems. 86 % View Business as Negatively Impacting the Public Good 88 % Distrust Big Companies CONSUMERS 87 % Say they would switch to brands that are socially and environ- mentally responsible. problems. Sources: McKinsey & Co., Cone Marketing, Harris Have observed illegal or unethical conduct by their employer in past 12 months. 76 % Want to work for companies that directly contribute to solving social and environ. problems. 80 % 81 % Say they want to personally create social/environ. benefits but aren’t sure what to do. Don’t believe their company honors their values and commitments. 80 % EMPLOYEES Believe business has a direct responsibility to help solve social and environ. problems. 84 % Say they need to do better to fulfill their social and environ. Respon- sibility but aren’t sure what to do. 75 % LEADERS
Revolutions Values Innovation 1776 - Bill of Rights - Personal Freedom 1860’s - End of Slavery - Human Rights 1933 - Social Safety Net - Civic Social Responsibility 2008 - Sustainable Future - Corporate Social Opportunity Source: Tim Sanders, Saving the World at Work 2 Counterforce: Monarchists - Counterforce: People are Property Counterforce: Tough luck is just tough. Counterforce: Green Washing
We will no longer tolerate the or the as necessary for progress. We will no longer tolerate the or the as necessary for progress. destruction of our environment exploitation of our lives New Business MODEL
Responsibility Corporate Social A business commitment to environmental, social, and economic sustainability.
Corporate Social Responsibility is incomplete thinking.
Mission Statements Values Statement Business Objectives What Gets Measured/Rewarded What People Really Do Reality of Current Marketplace OFFICIAL STORYTRUE STORY Create a New Success Story ORGANIZATIONAL DRAMA Drama
People + Planet Sustainable Profit Abundance The new goal of humanity is Sustainable Abundance
1.Commitment to Organization’s mission and goals. 2.Employee pride of belonging. 3.Willingness to give ones full and best efforts. Full Engagement Commitment | Pride | Performance Source: Towers Perrin 2007-2008 Global Workforce Study
The power of a brand comes from Your Motives CHANGE THE WORLD - My work expresses my core values. ACHIEVE GOALS - Grow and excel. BEAT THE COMPEITION - Win SURVIVAL - Save my job. 1. 2. 3. 4. Levels of Organizational Motivation
The New Movement: CSR - CSO Improve Lives of People Health of our Planet To Make a Sustainable Profit TRIPLE BOTTOM LINE This is the
REPUTATION (Cause Marketing) CLUELESS (What cause?) STRATEGY (THE CAUSE) A Million Dinosaurs Exxon Chevron Fast Followers Early Adopters Toyota Virgin Air Apple GE Nestle Patagonia Clifbar Starbucks Grameen Bank Newman’s Own Whole Foods DOW GM Unsure Laggards
GIVE GROW GAIN Image Vision is a Metric Acquire, Fire, Divest Leadership of the Past Moral justification of unrestrained self-interest. Ebita Leverage AssetsPublic Relations
Revolutions Business Innovation Disruptive innovation creates new products, new methods, new solutions and… Steals dinosaurs’ customers. 3
REALeadership Take Responsibility Promise to Make Your Difference R esponsible E thics Greatest Total Value Good, Grow, Gain A bundance Unique Value Eliminate Waste L egacy Design, Desire, Drive Extreme Expertise Sustainable Abundance
Be Responsible. Be Relevant. Stakeholder Concern Engage Strategic Excellence Brand Soul Unique Engagement Unique Value Violence PeaceHealth Disease Environment Collapse Education/Arts Ignorance Human Rights Oppression Poverty Wealth
Environment Stakeholder Concern Engage Strategic Alignment Execute ConservationRenewable Energy Global Warming Green Business Pollution Abatement Water & Resource Depletion
” “ When our thinking is no longer limited by what you think you can afford we are free to create unlimited value that becomes the source of growth and prosperity … The Personal Revolution of Both+And Values is a Profound Leadership Moment
GAINGROWGOOD Improve the Quality of Everyone’s Life Innovation to Benefit Humanity Unique Value Advantage GTVCreate New Value Sustainable Abundance Strategic justification of morality. Leadership of the Future
BENEFITS Easy to duplicate, highly competitive. Socially-Strategic Branding VALUES Noble Intent Hardest to duplicate and to do well, source of greatest brand loyalty. IDENTITY (EMOTIONAL) Good for all. FEATURES Easiest to do - Many others do the same thing. FUNCTIONALITY (RATIONAL) Good for me. YOUR CAUSE IS the “Secret Sauce”!
High Purpose Branding 6 SOURCES OF HUMAN ENGAGEMENT Turning Your Cause into Your Business Model EMOTIONAL Story PHYSICAL Design SOCIAL Connecting MENTAL Growth IDENTITY Fulfillment SPIRITUAL Values + +
1. Creator - Martha Stewart 2. Ruler - AmEx 3. Sage - Oprah 4. Innocent - ClifBar The Hero and the Outlaw Archetypes are “Blueprints of Meaning” 5. Hero - FedEx 6. Outlaw - MTV 7. Magician - Google 8. Explorer - Jeep 9. Caregiver - Mayo Clinic 10. Regular Guy/Gal - Ben & Jerry’s 11. Lover - Godiva 12. Jester - Las Vegas Risk & Mastery Stability & Certainty Belonging & Enjoyment Fulfillment & Independence Source: Margaret Mark: Strategic Insight
ICE AGE HOT ZONE COOL ZONE Solve environmental problems & shortages. CSR - Corporate Giving, Volunteering, Compliance Improve human quality of life.
How Great Do You Want to Be? GONE GOOD VERY GOOD BEST IN CLASS BEST IN WORLD
Both + And ALL COMPETITORS Features Benefits Better Band Aids Z = Health + Human Performance PLANET PEOPLE Johnson & Johnson Costs Process Band-Aids Tylenol Realize Tylenol P.M. Rx CVS Bandages Walgreens Baby Powder Excedrin Advil PM NyQuil Generics Abundance: What’s Your “Z” Factor?
PEOPLE PLANET PROFIT INVITEMARKETPLACE INVENT WORKPLACE IDEALIZE COMMUNITY ++ ++ GOODGROWGAIN New Leadership Paradigm New Business Model New Innovation Framework
STRATEGY BRAND CULTURE Marketplace Community Workplace WE 2.0 Engaging customers, employees and the community in your unique value (Z Factor), online and in-person. WE 2.0 Engaging customers, employees and the community in your unique value (Z Factor), online and in-person. Getting to the Whole Enterprise Transformation