BRANDfog

CSR Holiday Gifts for the Conscious Consumer

2010-12-31T15:38:00.000-05:00

As we enter the season of holiday giving at work, we are confronted with the dilemma of deciding how to celebrate with colleagues without trivializing the challenges of the crippling economy. With every gift shipped to customers, a message is sent about a brand's core values. Against a backdrop of suffocating unemployment and unprecedented hardship, smart companies are looking for ways to demonstrate social consciousness while establishing an emotional connection with customers.

As 2010 comes to a close, the stage is set for a more enlightened year of corporate giving. The logical alternative to the proverbial fruit basket is Corporate Social Responsibility Gifting (CSR Gifting). CSR Gifting offers the opportunity to provide unique and thoughtful gifts for clients while serving a broader social purpose.

In this holiday spirit, I present twelve CSR Gift ideas for companies with a social conscience:

1.The Kate Spade Hand in Hand Bracelet - A beautiful, tasteful gift that was designed as part of the Women for Women International partnership, 25% of sales are donated to help women survivors in war-torn countries.
2.Fledgling Wine - Twitter and CrushPad are offering Fledgling Wine from renowned California wineries. A portion of the proceeds goes to Room to Read, a non-profit organization promoting literacy for children worldwide.
3.Rickshaw Bags - Rickshaw Bags crafts beautifully designed, highly functional sustainable fashion bags and iPad cases for urban commuters that are made in San Francisco from recycled, sustainable materials.
4.TOMS Shoes - Fun and stylish, for every pair of TOMS shoes sold, founder Blake Mycoskie donates a pair of shoes to a child in the developing world.
5.Nike Livestrong Jacket - The Nike Livestrong running jacket makes a great gift. A portion of the proceeds go to help the Lance Armstrong Foundation to fight cancer and to support cancer survivors.
6.Dancing Deer Baking Company - Dancing Deer offers wonderful cookies, gingerbread and dark chocolates. 35% of the proceeds go directly to helping homeless mothers and their children.
7.Viva Glam Holiday Products Line - Viva Glam Cosmetics supports the M∙A∙C AIDS Fund. The Fund was started in 1994 and donates every dollar of its sales to help support families living with HIV/AIDS.
8.Do Something!: A Handbook for Young Activists - Book proceeds support the innovative organization DoSomething.org, a nonprofit focused on promoting teen and youth volunteerism.
9.Tavern Direct Gifts - Tavern on the Green offers gift sets including marinades, finishing sauces and flavored oils coupled with authentic recipes from the famous NYC restaurant. Donations go to the National Center for Missing and Exploited Children.
10.Lakshmi's Designer Ornament - Top Chef host Padma Lakshmi designed this exotic ornament to bring a touch of India to any holiday tree. Proceeds from the sale benefit St. Jude's Children's Research Hospital.
11.ONEHOPE Wine - ONEHOPE offers award-winning wine with 50% of the profits going the National Breast Cancer Foundation and Children's Hospitals.
12.Classy Cookies - Cookies for Kid's Cancer offers several delicious cookies as well as the special Box of Hope. Cookies are packed in beautiful gift boxes and include a note explaining the significance of the gift. 100% of the profits funds pediatric cancer research.

In challenging economic times, it is more important than ever to show appreciation for customers, but perhaps the days of simply throwing money around to make an impression are over. We may have unwittingly arrived at the dawn of a new era in business, where genuine connections between brands and customers are forged based on a shared belief in social purpose. As Winston Churchill once said, "We make a living by what we get. We make a life by what we give."

The Making of a Modern CEO

2010-11-23T18:26:00.001-05:00

The new normal in this economy is shaping up to be anything but normal. Businesses that have thrived for decades as industry icons are now permanently upended by the forces of the Web, social media, and new technologies that are crashing over the economy like a tidal wave.

Industries are experiencing systemic failure as a result of the digital revolution, coupled with an economy stuck in reverse. As noted in the book Macrowikinomics: Rebooting Business and the World [1], many industries have simply come to the end of their natural lifecycles, and business is going to have to be reinvented around a new set of principles including transparency, integrity, and collaboration.

As a result of these changes, the role of the CEO must evolve as well. The next generation of business leaders [2] will require new talents and a different set of skills to successfully grow business over the next decade. A modern CEO will focus on creating a business culture that's expansive, mapping a social purpose to the creation of goods and services. The new CEO will also change the way we think about leadership, and create a bulwark against the tide of business challenges coming our way over the next decade.

Here are three key characteristics for the modern CEO:

1.No Fear Communications-- The Modern CEO must shake off the "analysis paralysis" and listen and engage with social media. While it sometimes seems impossible to manage the fire hose of information, social channels provide what CEOs need most - unfiltered feedback. What's more, social media is the gift that keeps on giving. It's an early warning system, an instant feedback loop, and a brand sentiment barometer. Although CEOs are increasingly discussed in online venues, few are actually using social media to spread their own message. In a Weber Shandwick [3] Study, nearly two-thirds of CEOs were not engaging online at all, yet those who are enjoyed a better reputation with customers. CEOs need to blog, tweet, fan, follow, and friend their way into the hearts and minds of stakeholders.

2.No Fear Ambition-- A Korn Ferry [4] Study challenged organizations to identify future CEOs by distinguishing between blind ambition and true potential, the latter often being harder to identify. Today's CEO has to be comfortable in the digital realm, with ambitions to embrace mobile and social technologies and be willing to take a company in new directions. TechCrunch [5] notes that it is critical that Chief Executives have the right kind of ambition. That is, ambition for the success of the company rather than ambition for themselves. In 2011 we need to take this one step further. A Modern CEO needs to have ambition for the success of its employees, suppliers, the company, the community, and the planet.

3.No Fear World View -- To achieve success today, CEOs need to cultivate an external world view which guides the company in the broader context. For the Modern CEO, The Triple Bottom Line has become the ubiquitous measure of success: People, Planet, and Profits. The Edelman 2010 goodpurpose® Study [6] provides excellent insights into the rapid globalization of Corporate Social Responsibility (CSR). Consumers in developing countries are leading the way in their drive to buy from companies that are sustainable, and demonstrate a global consciousness. Consumers in Brazil, China, India and Mexico are all more likely to purchase and promote brands that support good causes, outpacing peers in the west. U.S. companies can take lessons from these emerging markets, where eight out of ten consumers expect brands to donate a portion of their profits to support a good cause.

The characteristics of a great CEO will continue to evolve as society changes, and for a while it will be rough sledding. There is no doubt that a change is imminent however, as consumers and shareholders demand it. Right now 64% of consumers believe that it is no longer enough for corporations to give money; they must integrate good causes into their everyday business. While CEOs still need to set vision and strategy, going forward that vision will be mapped to the social purpose that the company actually serves. These are the realities of a global, interconnected world.

Leadership: Vigilantism 2.0

2010-11-23T07:30:00.000-05:00

Imagine that you're the CEO of a Fortune 500 company, running a multi-billion dollar organization with its many moving parts. One day your Google alert shows an article stating that your company's operations in Asia are employing child labor, with young children working long days in harsh conditions. By the next morning there are 62 articles and 305 mentions of this story. By afternoon there's a Facebook boycott with 10,000 fans. The Twittersphere has lit up with Tweets and hashtags like #slavelabor, #boycott, and #savethechildren--terms that are now unfortunately tied to your brand. You've been "Inter.outed," a term used to describe how a company is "outed" on the Internet for doing very bad things.

We've all heard the horror stories about how brands can be derailed through negative social media. Remember the Domino's Pizza nose-picking YouTube video, and "Motrin Mommies" digital disaster? Last week, The Gap was caught with its khakis down in a logo design backlash. In less than 48 hours of social pressure, the Gap withdrew its new logo. There are also more serious examples. Whole Foods suffered a Facebook, Twitter, Flickr, and YouTube boycott as well as bloggers who labeled them "A-Hole Foods" after the CEO stated that not everybody deserves health care. British Petroleum now has a worldwide Facebook boycott of more than 600,000.

While these boycotts can damage a brand, up until now business has not yet experienced the full force of Internet vengeance. There exists certain lawlessness on the Web, and individuals are only starting to understand the mighty influence they wield when they mass together in groups. Internet communities are still in their infancy, and users have yet to grasp the full depth of the power they have on the Web.

The New York Times reported on "cyberposses" in China, who dole out online vigilante justice by hunting down and punishing people. Internet vigilantism is often activated not for illegal behavior, but for socially reprehensible behavior. "The Kitten Killer of Hangzhou," for example, became the target of cyber sleuths who tracked her down and outed her. She lost her job, her apartment, and was made to leave town.

It's not much of a stretch to imagine that Internet vigilantism will soon cross over from individuals to organizations. Social activists use every media channel available to express disapproval for unfair or dishonest business practices. Users could easily turn to online vigilantism to punish companies who have attracted their wrath. The web is a great repository for track records, and has a long memory. If resentment over exorbitant Wall Street bonuses juxtaposed against illegal housing foreclosures ever boils over, vigilante groups could easily launch cyber-attacks on the banks they deem responsible. If a company employs sweatshop labor, is toxic to the planet, or mistreats its employees, tech-savvy users can crash servers, take down websites, and disrupt e-commerce business. Moreover, they can wage a ferocious battle for the hearts and minds of consumers to damage brand reputations.

So what is a CEO to do?

In this brave new world, CEOs need to prepare for the era of total transparency. Here are five steps a company can take to protect itself by strengthening its relationship with stakeholders:

• Clean house. Make sure your company is acting in good faith with customers, partners, and suppliers.

• Examine the supply chain, and make sure you are in compliance with all environmental and employee issues.

• Elevate your corporate social responsibility (CSR) programs to front and center. Integrate socially responsible initiatives directly into the core DNA of your company.

• Humanize your brand. Use Twitter, LinkedIn, and blogging to address issues directly, take user concerns seriously, and respond quickly and thoughtfully with no marketing spin.

• Always tell the truth.

On the web, all transgressions are trackable, and no corporate misdeed will ever be forgotten. Companies must embrace the new culture of transparency for survival, since Netizens are willing to fight hard for anything they believe in--even if it's just a logo.

New York City • Great Leaders Conference • BRANDfog

Sometimes Big Change Comes in a Little Blue Box

2010-10-09T10:08:00.000-04:00

From Fast Company

http://ht.ly/2R2tn

There's nothing like a brush with death to focus your attention.

The global economic collapse has been like a brush with death for business. It has changed our perspective and will have lasting aftereffects on our behavior. Last week I read a report called "Responsible Luxury" released by the World Jewelry Confederation. The report argued that because of the economic downturn, there are new motivating factors behind consumer decision making. We have entered an era where consumers prefer to buy products from a company with a good reputation for social responsibility. The report also suggests that this turn of events will propel companies in the distressed luxury market to adopt conscientious business practices as the only option for survival.

This is good news for the diamond industry, which has long been criticized for fueling unrest, particularly in diamond-rich central and western Africa. More to the point, it's great news for the countless families, communities, and countries ravaged by the effects of 'conflict' diamonds.

Influential industry brands are stepping up to support the "responsible luxury" trend. Recently Tiffany & Co., the world's premier jeweler and the gold standard (pun intended) of the luxury industry , stated that they are actively embracing corporate social responsibility (CSR). As regards large-scale mining, Tiffany pledges to strive to source gemstones and precious metals from mines that operate at the highest standards of social and environmental responsibility.

This is important because Tiffany has a 19 percent share of the global jewelry market. This move is sure to be a catalyst for change. What it means is that Tiffany has the opportunity to set standards for best practices. Ethical jewelry currently accounts for less than 1 percent of the $56 billion market in annual jewelry sales. But when a revered brand like Tiffany proactively engages in CSR, it is bound to have powerful cascading effects across the entire luxury goods industry.

This is also a smart business move for Tiffany, because consumers are becoming increasingly conscientious about the origins of the products they buy. An excellent study on this topic from Cone titled "Consumers Like Companies With Cause," states that causes help to convert new customers and revealed that 83 percent of U.S. consumers have a more positive image of a product or company when it supports a cause they care about. What's more, the study reveals that consumers are asking for transparency; 90 percent of consumers surveyed confirmed that they want companies to tell them about the ways in which they are supporting causes.

On the consumer behavior front, 80 percent of Americans say they are likely to switch brands to buy a product equal in price and quality from a company that supports a cause, and 19 percent will even buy a more expensive brand. This should be music to the ears of the luxury goods companies, which desperately need to spark beleaguered consumers to spend more this holiday season.

These are still early days to demonstrate the inherent value of CSR from the perspectives of consumer mindshare, market share, and profitability. It will take time for C-suite and boardroom discussions to reevaluate a company's social contract with the environment and the communities in which they do business.

Still, I often talk about CSR being a tsunami that will wash over business and change everything. I firmly believe this is so. Tiffany is leading a big change by setting an example in a little blue box.

Michael J. Kowalski, Chairman and CEO of Tiffany & Co put it this way: "Tiffany & Co. is committed to crafting our jewelry in ways that are socially and environmentally responsible. It is simply the right thing to do: Our customers expect and deserve nothing less."

New York City • Great Leaders Conference • BRANDFog

Philanthropy Is the Gateway to Power

2010-10-04T06:23:00.000-04:00

BY Fast Company CSR Expert Blogger Ann Charles

While catching up with old episodes of "Mad Men," I was brought up short by a show-stopping quote from Roger Sterling. Sterling, the senior partner at the Sterling Cooper Agency, tells Creative Director Don Draper that he's been invited to join an arts foundation board. Looking puzzled, Don asks "What does that mean?"

Without skipping a beat, Roger says "Philanthropy is the gateway to power."

Then he elaborated: "There are few people who decide what will happen in our world. You have been invited to join them--pull back the curtain and take your seat."

And so it was. For generations, traditional philanthropy was the exclusive domain of the wealthy and powerful. Many of the great benefactors of the early 20th century made their fortunes from the railroad, steel, and oil industries. These industrial giants sat on boards of nonprofit foundations that they themselves established to oversee how their treasure troves would be dispensed. They determined which causes were worthy. Much of the philanthropic activity was focused on large, sweeping gifts to benefit big institutions like the New York City Public Library, the ballet, universities, and art museums.

How times have changed. Many of today's entrepreneurs are building their businesses based on the idea of fulfilling a new kind of social contract, one in which organizations voluntarily take responsibility for the "triple bottom line": people, planet, and profits. While corporate social responsibility (CSR) is not a new concept, it has new meaning in a Web 2.0 world. For consumers, the Internet and social media deliver a kaleidoscope view of a company's corporate culture. Given this new insight, consumers are exercising their right to patronize companies with values that mirror their own.

Companies today have to address questions that are external to their core business. Does the organization have a moral compass? Does it support worthy causes? Is it a good corporate citizen? Stepping back and taking a fresh look also gives brands a great opportunity to redefine themselves and optimize for the future. It should come as no surprise to corporate America that CSR has become a talent magnet, a sales magnet, and an investor magnet.

How is CSR a talent magnet? Research is revealing the none too startling news that people want to work for caring and ethical employers. According to last year's study by Kelly Services Inc., acting in a socially and environmentally responsible manner is what it takes to gaini top talent. Nearly 90 percent of respondents said they are more likely to work for an organization perceived as ethically and socially responsible. A more recent study opened eyes by revealing that one-third of workers would take a pay cut to work for a socially responsible firm.

How is CSR a sales magnet? Globally conscious consumers are changing the rules about consumerism. A 2010 CSR Branding Survey noted that consumers are much more likely to purchase a product with an "added social benefit." We are experiencing a trend in which consumers want companies to meet their needs and simultaneously have a positive impact on society. And why not? Enlightened consumers want their food to be organic, their coffee free trade, their purchases sustainable, and everything to be green. They are even willing to pay a premium for goods from socially responsible companies.

How is CSR an investment magnet? A slew of books and articles have come out recently that articulate the value of socially responsible investing, including the ubiquitous "Socially Responsible Investing for Dummies." The premise is that companies can do well financially by doing good. SKS Microfinance is an example of this concept. A recent New York Times article noted that SKS is aiming to raise $344 million in an initial public offering. This is being closely watched to determine if big profits can be made through the small micro-loans that are changing the lives of thousands of entrepreneurs in the developing world. The early financial results looks good. Socially responsible investment funds largely outperformed their benchmarks in 2009, according to Social Investment Forum data.

The corporate giants of our time are starting to follow in the footsteps of their industrialist predecessors. While yesterday's philanthropists were Getty, Guggenheim, Astor, and Carnegie, today's benefactors are Gates, Buffet, Turner, and Moore. These great leaders are working from a platform of social responsibility, and have started to address some of the most intractable problems of our time such as poverty, global illiteracy, and disease.

The next natural evolution of this trend is the new "social enterprise," a social mission-driven organization that applies market-based strategies to achieve a social purpose. In Andrew Carnegie's 1889 essay "The Gospel of Wealth," he stated that business and the wealthy are the caretakers of our future society. At the time Carnegie's ideas were the exception rather than the rule. Today, many small and large companies are still new to CSR. If the social enterprise enjoys financial success, CSR can become a fundamental principle for businesses rather than an afterthought.

To use a quote from Winston Churchill that even Don Draper would appreciate, "We make a living by what we get. We make a life by what we give."

Ann Charles is founder and CEO of BRANDfog, offering social media and corporate social responsibility strategy (CSR) for CEOs. She is also founder and producer of the Great Leaders Conference, an event honoring great leaders in CSR, social advocacy, sustainability, and innovation; speakers include Fast Company columnist Nancy Lublin, Yele Haiti Founder Wyclef Jean, Zappos CEO Tony Hsieh, Timberland CEO Jeff Swartz, among others.Fast CompanyEditor Robert Safian will help moderate Q&A sessions. Register today at Great Leaders Conference.

When Women Rule the C-Suite

2010-09-28T19:51:00.000-04:00

From Fast Company http://ht.ly/2LoxU

I have a theory. It is that once women rule the "C-suite," corporate social responsibility (CSR) will become the norm for U.S. business. Why? Call me sexist, but I think that helping others is a function of nurturing and comes more naturally to women than it does to men.

The idea that organizations have responsibilities beyond making payroll and profits is more intuitive for women leaders. Tending to the needs of communities, offering child care for employees, providing time for volunteerism and environmental consciousness--it all will be a given. When a woman inhabits the C-Suite, socially responsible thinking will be baked right into the organization's DNA.

Here are four proof points, which I stipulate are patently unscientific:

1. More Women Work in Nonprofits. According to the Chronicle of Philanthropy, women make up about two-thirds of the nonprofit work force. This may be because nonprofit employment allows for a life balance that appeals to women. It may also be true that it's easier for women to sacrifice pay and benefits for the opportunity to work for a cause they believe in. Whatever the reason, it seems that women are more likely than men to spend their time and energy focused on others.

2. More Women Volunteer. The U.S. Department of Labor report shows that women volunteer at a higher rate than men across all age groups, educational levels, and other major demographic characteristics. The psychologist Dr. Val Hannemann says that women volunteer because they are hard-wired to be engaged in their communities. Volunteering connects women, and expands their sense of community. They share, they empathize, and they adopt new strategies to make a difference in the world.

3. More Women Give to Charity. A study from the Center for Philanthropy on gender and generational differences in motivations for giving showed that women are more likely to give than men (85.6% compared with 80.7%), and that women feel a strong sense of responsibility to help those who have less in our society (30% versus 26%). Although it is widely assumed that women are more charitable than men, The Wall Street Journal poll puts a number on it: wealthy women give away nearly twice as much as of their wealth as their male counterparts.

4. More Women Join the Peace Corps. Founded in 1961, the Peace Corps sends volunteers to serve in countries all over the world. Health and safety risks are an inherent part of service as volunteers serve worldwide, often in very remote areas. Volunteers are asked to make a commitment to live in a foreign country and adjust to a new culture while helping locals with education, community development, and the environment. The conditions can be rough, with very few creature comforts. Peace Corps volunteers are 60% female and 40% male.

So how do we know women CEOs would embrace CSR? Frankly, right now we don't, because the sample size of women in CEO positions is statistically insignificant. As of this year, there are 28 women CEOs in Fortune 1000 companies. While women make up 56 percent of the American workforce, only 2.8% of the Fortune 1000 companies are led by female CEOs.

But I am ever hopeful. For the first time in 220 years, three women are now serving on the United States Supreme Court. If we can trust women to decipher our laws and ensure that the United States remains a land guided and governed by the Constitution, maybe one day we can trust them to run Procter & Gamble?

For those women who are patiently waiting to take the CEO reins and help change the world, here is a quote to live by from one notable woman at the top:

"There were two kinds of people: those who do the work and those who take the credit. You want to be in the first group; there is much less competition."

--Indira Gandhi

Ann Charles is founder and CEO of BRANDfog, offering social media and corporate social responsibility strategy (CSR) for CEOs. She is also founder and producer of the Great Leaders Conference, an event honoring great leaders in CSR, social advocacy, sustainability, and innovation; speakers include Fast Company columnist Nancy Lublin, Yele Haiti Founder Wyclef Jean, Zappos CEO Tony Hseih, Timberland CEO Jeff Swartz, among others. Fast Company Editor Robert Safian will help moderate Q&A sessions. Register today at Great Leaders Conference.

Inglorious CEOs

2010-09-25T17:48:00.000-04:00

From Fast Company

Timing is everything. Could there be a worse time than now be a CEO? First the world economic calamity shined a light into the dark corners of the banking and finance industries. The heads of powerful institutions were called on the carpet to explain a thing or two about credit default swaps and collateralized debt obligations. Then, after companies deemed "too big to fail" suddenly failed, stalwart CEOs from the automotive, banking, and insurance sectors had to ask the American people for a bailout. Reverberations of this catastrophe have cost the economy eight million jobs and counting.

As each headline about corporate malfeasance is juxtaposed against record profits and bonuses, Americans become more jaded about the ethics of today's business leadership. Many CEOs seem to lack the emotional awareness to deal with their own image problem. Goldman Sachs' CEO claimed to be doing "God's work" before settling a fraud suit to the tune of $550 million for pushing a product that was designed to fail, all in an effort to boost record profits. Meanwhile, the economy spiraled in. After the Gulf oil spill, former BP CEO Tony Hayward famously said: "I would like my life back," presumably echoing the sentiment of those who died during the explosion.

Robert Thompson put it this way: "About the only villains left are terrorists and CEOs--and terrorists will probably be portrayed as sympathetic long before CEOs."

It's no wonder CEOs are vilified in the press as power-crazed, money grubbing scoundrels. We used to be amused by Donald Trump's "You're fired!" on NBC's The Apprentice. With unemployment stuck at 10 percent (some say it's more like 22 percent), it's not funny anymore. Then you have Mr. Burns from The Simpsons, a maniacal CEO caricature. One of his favorite sayings is, "What good is money if it can't inspire terror in your fellow man?" What, indeed!

Still, when it comes to CEOs, we can't seem to get enough of our idolization of the culture of money. The Wall Street Journal recently published a list of the top-paid CEOs of the decade. With perfect sleight of hand, the article noted that four of the top ten highest-earning executives ran companies whose shareholders lost money over the decade. Lost money?

It's "pay without performance," says Jesse Fried, a law professor at Harvard University. It's also the title of Fried's book, which is subtitled, The Unfulfilled Promise of Executive Compensation.

On the bright side, with the collapse of the global economy, it seems we have finally reached a tipping point in changing the culture of business leadership. Recently, a group of American millionaires has called for an end to the tax breaks for the very rich. In the spring of this year, the Responsible Wealth Project was launched. The belief at the bottom of this initiative is that the wealthy can and should pay more to help support the dwindling budgets for education, health, and other critical social services at the state and federal levels.

What's more, corporate social responsibility (CSR) and socially responsible investing (SRI) are both on the rise, showing support for holding companies accountable for the new "Triple Bottom Line": people, planet, and profits.

I like to ask CEOs, Would you rather be known for how much money you made, or how much you gave away? Andrew Carnegie, once the richest man alive, believed in being remembered for the latter.

Today's CEOs are often portrayed as larger than life. The truth is, they are probably not quite so evil nor as brilliant as they made out to be. And once in a while, they do something that truly surprises us. This month, Warren Buffett and Bill Gates announced that 40 of America's wealthiest billionaires have signed a "Giving Pledge" in which the undersigned vow to give away half of their wealth to worthy causes during their lifetime. This seismic shift in wealth transformation exemplifies the best of America's culture of ingenuity and success. Put simply, Americans like it when the masters of the universe set a good example for the rest of us.

Ann Charles is founder and CEO of BRANDfog, offering social media and corporate social responsibility strategy (CSR) for CEOs. She is also founder and producer of the Great Leaders Conference, an event honoring great leaders in CSR, social advocacy, sustainability, and innovation; speakers include Fast Company columnist Nancy Lublin, Yele Haiti Founder Wyclef Jean, Zappos CEO Tony Hseih, Timberland CEO Jeff Swartz, among others. Fast Company Editor Robert Safian will help moderate Q&A sessions. Register today at Great Leaders Conference.

Survival of the Kindest, Social Media and Corporate Social Responsibility

2010-02-03T10:29:00.000-05:00

In December, I read a story about social scientists who believe that as a people we are evolving to become more compassionate and collaborative in our quest to survive. This was called “Survival of the Kindest.” The theory states that sympathy is our strongest human instinct, and helping others is critical to the survival of the whole species. These days, corporations are starting to have the same realization.

Thanks to a social media culture that reveres transparency and demands accountability, companies today are seen through the critical lens of the Triple Bottom Line; people, planet and profit. Corporate Social Responsibility (CSR) states that businesses should act as stewards of society, the environment, and the economy. The social media spotlight brings accolades and new business for companies that give back, while brands behaving badly are pilloried in online communities like Twitter and Facebook, followed by the mainstream press.

Creating a CSR strategy has become a primary challenge for CEOs. Fortunately, social media can be an invaluable help to companies willing to commit to becoming better corporate citizens.

Here are 5 Steps to Develop a CSR Culture Using Social Media:

1. Commit & Lead - A CSR strategy begins with a long term vision and commitment from the top of the executive food chain. The CEO’s vision should be shared through social media channels, so supporters can engage with the brand, provide feedback and become evangelists.

Jeff Swartz, CEO of Timberland is the embodiment of CSR leadership. As the CEO of his family’s business since 1998, Swartz has been a long time activist for social and environmental issues. Swartz leverages Twitter and other social channels to engage communities and rally support for social justice on many fronts.

2. Listen & Learn – It’s important to assess the needs of the communities where you do business to determine which social issues to address. Employees that live and work in the community know the areas of greatest need. Many companies are reaping the rewards of providing assistance to neighborhood programs like school breakfasts, books for libraries, or food banks. The work humanizes the brand while strengthening the community.

For more CSR ideas, search Twitter hashtags #CSR, #sustainability, and read Business Ethics, the Magazine of Corporate Responsibility. You can also follow CSR news on Twitter @3BLMedia, and leading CSR blogger David Connor @davidcoethica, and Social Giving pioneer John Wood @johnwoodrtr from Room to Read.

3. Innovate – Some companies leverage social media to encourage spontaneous and innovative ways to help others. Last month Meg Garlinghouse (@megarling), Senior Director Yahoo! For Good wrapped up a successful campaign called Random Acts of Kindness. Like ‘Twitter for Kindness’ users and Yahoo! employees were asked to update their status with stories about helping others which were shared across the Yahoo! network. The CSR campaign received over 300,000 status updates and global participation from 11 countries. Other companies show their support for CSR by giving employees the time to participate in volunteerism. Chairman and CEO Patrick Vogt of Datran Media, a digital marketing technology company, this year provided 3 additional days specifically for employee volunteerism.

4. Communicate - Talk about what you are doing with CSR. CEOs can use social channels to tweet, blog and micro blog about CSR initiatives. Make it a key topic at Board meetings, employee meetings, press briefings, and trumpet it through all marketing channels. It’s critical to communicate CSR positions on your website to encourage brand enthusiasts to get involved. As Tim Sanders stated in Saving the World at Work, studies show then when you witness or hear about an act of compassion, you are more likely to emulate it.

The CEO of Alcatel-Lucent, Ben Verwaayen, communicates his vision for CSR on his website. “It is vital for all companies to act in a socially responsible manner and to be good corporate citizens. This involves more than ethical behavior; it means that all employees must become involved and demonstrate the company’s concern for society.”

5. Invest– As it turns out, doing good is good for business. More companies are realizing the benefits of Socially Responsible Investments (SRIs). According to the Social Investment Forum (SIF), a trade association advancing the practice of socially responsible investments, about two thirds of socially responsible mutual funds in the U.S. outperformed industry benchmarks during the 2009 economic downturn, most by significant margins.

Social scientists believe that we are wired to be kind. It would seem that they are right, especially in light of the recent outpouring of generosity to Haiti. In today’s world, admiration is bestowed upon companies that look beyond short term financial goals to engage in long term commitments for the betterment of society.

As John D. Rockefeller once said, “Think of giving not as a duty, but as a privilege.”

The Business of Being Human

2010-01-01T22:10:00.001-05:00

A few years back, I worked for a multibillion dollar corporation that sold consumer electronics products and were pretty successful at it. At a town hall meeting, the global CEO asked the entire US audience in attendance if they had any questions. This is an Open Kimono culture, he said, so ask away. A colleague of mine raised her hand. Speaking timidly into the microphone, she asked if the company would ever consider providing on-site day care for children of employees, the way other companies sometimes did. Things went very quiet. Then the CEOs answered, “We are not in the child care business.”

Ouch.

More than 10 years later, this response still doesn’t make much sense. Company management had children, employees had children, and our customers had children. We even sold products targeted to children. The CEO’s answer was the linguistic equivalent of: We are not in the human being business.

Flash forward to 2010. Times have changed. A new leadership culture has emerged to address modern challenges. This year, a good company is defined as one that adds value outside the realm of financial success. As a result, CEOs are starting to create value systems that guide their company’s behavior across all disciplines. Companies are embracing programs that address the environment, poverty, literacy and hunger within their communities and beyond. Not incidentally, socially responsible practices are bringing back a renewed sense of employee pride, and attracting talent and new business. Best of all, customers are rewarding this behavior with patronage, loyalty, and an evangelical zeal that is spread through social media channels.

Social responsibility is finally on the rise because it’s good for communities, good for business, and good for the collective soul.

Thankfully, at the end of the day, we are all in the human being business.

Happy New Year.

Believe in Corporate Social Responsibility? You’re in Good Company

2009-12-10T10:05:00.002-05:00

As 2009 and the decade of the 00’s come to an end, it is interesting to think about what will make a truly good company in the years to come. In the past, companies that made a profit, paid taxes, and provided employment were thought to be ‘good’ based on financial success alone. When they exceeded financial expectations, they were considered great. The higher the profits, the stronger the brand image became.

Then the economic crisis hit, along with the potential destabilization of the entire system, and the wisdom of pursuing profits at all costs turned out to have a price tag after all.

Now once again, times are changing. Post our entry into the Great Recession, a ‘good’ company has been redefined as one that adds value outside the realm of financial success. At the same time, social media has deconstructed the closed corporate culture, creating a transparency that provides consumers with an inside look at a company’s guiding principles.

The rise of Corporate Social Responsibility (CSR) has taken hold, and consumers are increasingly choosing to support companies that hold dear their own values, rather than simply produce a profit.

Here is a current snapshot of Consumer Sentiment, courtesy of Tim Sanders in Saving the World at Work:

-65% of Americans are willing to switch to brands that are associated with a good cause if the price and quality are relatively equal

-Two thirds of recent college graduates surveyed claim that they will not work for a company with a poor reputation for social responsibility

-Almost half of all consumers say they use the Internet to figure out if the products they buy are socially responsible

As it turns out, CSR is good for business as well. A recent global McKinsey survey indicated that a corporation’s environmental, social and governance programs create financial value by enhancing the reputation of companies. New philanthropy is not about writing checks, but rather leveraging corporate resources to help the communities address problems like hunger, poverty, and literacy. Smart companies are satisfying customer needs while letting them feel good about their patronage.

Just like anyone who has gone through a crisis and come out the other side, Americans have recently grown up some. We now recognize the benefits of being outwardly focused, and are smart and connected enough to become very powerful advocates for change.

As we turn the page on this decade, it is encouraging to see that the change in ourselves as consumers has brought about a powerful change in the culture of American business. We now save our admiration for companies that deliver financially, but that are also grounded by a value system that mirrors our own. As Warren Buffet recently said at Columbia University, “Having sound principals takes you through everything.”

Let’s hope next year more companies start to realize that they can do well by doing good.

Winston Churchill is Now on Twitter

2009-11-10T20:44:00.000-05:00

Defining Leadership for the 21st Century

Winston Churchill was a leader that would fit right in with today’s social media culture. In his time, Churchill’s astute observations delivered with brevity and wit helped to build what would become his towering reputation. Although public speaking was the primary medium of the day, Churchill was a prolific writer who came up with some of the best, less-than 140 character quotes in history. Consider this example:

“History will be kind to me, for I intend to write it.”-Winston Churchill

A true leader can be defined as someone whom others are willing to follow, no matter the consequences. The ability to communicate a vision and set a new course of action during times of crisis is especially difficult. Churchill’s commanding presence on the world stage was a result of his talent to use language to persuade, convince and sway public opinion toward his way of thinking.

Today, the entire structure of communications as we know is irrevocably changed. While Twitter documents the minutia of our daily lives, Facebook showcases our weekend updates, and LinkedIn tracks our every career move. Corporate leaders have to work harder than ever to communicate their vision and get others to follow them. Social media has become the great equalizer. We now expect heads of companies to talk to us directly, to engage in online brand discussions, and to respond to questions in real time.

Many CEOs today are notoriously reluctant to engage social media. The confidence to share ideas and enter into public discussions through micro blogging does not come easily. The very idea of opening up to customers, constituents, and colleagues can be unnerving for business leaders. A common reaction is analysis paralysis. Companies decide to stay on the sidelines, opting for security over strategy.

Prior to the onslaught of social media, this may have worked. CEOs were shielded from public scrutiny. Companies controlled their message, and minimized communication channels. Today this is no longer an option. Companies can either talk about themselves, or somebody else will. The blogosphere is filled with commentary about brands, companies and the executives who lead them.

Those reluctant to engage in social platforms are missing the point. New ways to communicate directly with constituents is empowering. Leaders now have the potential to use words and ideas to build follower communities and brand enthusiasts. Micro blogging creates a personal narrative, which allows executives to be seen as real people. This skill can be learned and integrated into a company’s communications strategy. CEOs can directly influence public perception about themselves and their brands.

"There is no such thing as public opinion. There is only published opinion." -Winston Churchill

While many executives see only the risk of social media, others see the potential to demonstrate their commitment to customers and causes. Leaders like Tony Tseih of Zappos, and Jeff Swartz of Timberland are excellent examples of CEOs that successfully use Twitter to provide an inside look at their business. Mr. Tseih has been credited with a social media strategy that attracted the attention of Jeff Bezos, who acquired the company last summer. Mr. Swartz uses social channels to focus attention on climate change initiatives. Founder of Digg, Kevin Rose, is a prolific micro blogger. With over a million followers and 3,000 Tweets, Rose shares both business and personal insights on a daily basis. Like many early adopters, he uses Twitter as his own private broadcast network.

One of my favorite Twitter CEOs is Blake Mycoskie, the founder of TOMS Shoes. TOMS provides a pair of shoes to a child in need for every TOMS shoe purchase. Mycoskie tweets about the people he meets, international travel, and ideas that interest him. Continuous updates about work, play, and core values help to humanize a CEO, which in turn humanizes the brand. Over time this creates a new breed of loyalty; as customers begin to feel that they are following the tweets of a trusted friend.

A New Kind of Leadership

Winston Churchill’s style was to communicate constantly. He interpreted events as they unfolded, and explained what he intended to do about them. He was a real time communicator, which is analogous to today’s social media culture. During some of the worst bombing raids in Great Britain’s history, Churchill provided comfort to an increasingly desperate country with a few, well chosen words:

"These are not dark days: these are great days - the greatest days our country has ever lived."

Today we are all engaged in writing our own history, one micro blog at a time. That history includes defining who we are as people, as corporate citizens, and demonstrating values that go beyond bringing products to market. In a relationship economy, people are looking for a reason to work with you, to buy your products and to trust you. With the widespread adoption of social media, companies can shine a light on all the good they are doing for their business, community, employees and customers.

Leaders cannot be all things to all people, but they can certainly be true to themselves. Developing a culture where executives are forthcoming and transparent will change the leadership dynamic forever.

If Winston Churchill really were on Twitter, this would have been his most insightful Tweet ever.

“You have enemies? Good. That means you've stood up for something, sometime in your life."

In Wine there is Truth. Social Philanthropy has Arrived.

2009-10-19T09:19:00.002-04:00

Last week Biz Stone announced that Twitter will launch a program in partnership with Room to Read, the non-profit literacy organization headed by CEO John Wood. Crushpad, whose mission is to democratize the wine industry, will collaborate with Twitter, whose mission is to democratize access to information throughout the world.

Social Philanthropy has arrived. Twitter staff will participate in making two wines, a Pinot Noir and a Chardonnay with Crushpad (www.crushpad.com), a San Francisco based custom winery. We the people are invited to follow the progress of winemaking on Twitter, and pre-order the wine at a reduced $20 dollars per bottle here www.fledglingwine.com.

The best part is that $5 from every bottle will go directly to Room to Read, an organization that BRANDfog supports through our work and that of our CEO clients. Room to Read enables literacy programs in some of the poorest regions in the world. BRANDfog supports this organization based on one simple truth. If you can read, you can do anything.

You can follow updates, participate in a Social Philanthropy, and feel good all at the same time at: www.fledglingwine.com. What a great corporate holiday gift idea.

Panic Can Also Spread Virally

2009-10-06T14:29:00.000-04:00

This fall the H1N1 Swine Flu has the potential to cause irrational fear and widespread panic, in addition to the real threat of sickness and death. The government is trying to ready themselves for both aspects of the potential epidemic. The real risk is the spread of the contagion across the population, but health officials are also bracing themselves for misinformation that can spread fast and furiously through social media channels.

Swine Flu vaccinations began this week, and health care workers, pregnant woman and child care providers are among the first to be vaccinated. Although deemed perfectly safe by the C.D.C, officials are worried that unrelated health problems may mistakenly be connected to the Swine Flu vaccine. Separating the incidents of naturally occurring strokes, heart attacks, miscarriages and death from the coincidence of receiving the vaccine will be a big challenge for health officials this year.

Managing the public perception about the Swine Flu, and keeping the population calm and well informed is shaping up to be the Super Bowl of public relations challenges for the government . With incessant social media chatter and the 24 hour news cycle, serious consideration needs to be given to the question of how we can control the flow of global information during times of crisis.

Fortunately, the C. D.C. is prepared to provide rapid-fire communications and information which is widely available through many social media channels. Press conferences can be seen live on the agency’s website, flu.gov, and updates are available through many social media outlets such as Facebook , Twitter, MySpace, and YouTube. All of these channels and more can be found at http://www.cdc.gov/socialmedia/.

So what else can the C.D.C. do for population? In addition to providing an outgoing, one-way flow of information, the C.D.C. would be wise to take advantage of the higher level of engagement that social media offers. By monitoring and then quickly responding to trending topics on Twitter, Facebook, YouTube and the blogosphere, they can build credibility and defuse rumors and fears before they can spread virally and cause real harm.

Philanthropy is the Gateway to Power

2009-08-12T07:54:00.000-04:00

“Philanthropy is the gateway to power… there are few people who decide what will happen in our world. You have been invited to join them – pull back the curtain and take your seat.” Roger Sterling, Mad Men

While watching Mad Men Season 2 last week, suddenly, mid-episode, I was brought up short by a show-stopping quote from Roger Sterling. Sterling, the senior partner at the fictitious Sterling Cooper Agency circa 1962, tells his Creative Director Don Draper that he’s been invited to join an arts foundation board. Looking puzzled, Don asks “What does that mean?” Without skipping a beat, Roger Sterling says “Philanthropy is the gateway to power.”

And so it was. For generations, it was the wealthy and powerful that sat on Foundation Boards and decided how important resources would be distributed and determined who had the most urgent need. Philanthropists from that era supported societal institutions, like the New York City Public Library, the Ballet, and the Metropolitan Museum of Art. Less attention was paid to local community organizations that struggled daily with the more pedestrian problems of hunger, unemployment, and education.

But times have changed. With the emergence of global social media and the lightning speed of the Internet, the ease of mobilizing people through Twitter, Facebook, LinkedIn, and a hundred other channels is staggering. We can now use technology to unleash support and create awareness with a broad base of social givers. People of all stripes are engaged with causes, political events and environmental issues. The term for this is “new philanthropy,” which means employing accountability and entrepreneurship to address some of the most troublesome societal problems of our time, such as poverty, global literacy, and disease.

In my business, we help CEOs to get involved with philanthropy on a number of levels. Without exception, the CEOs we work with are high achieving, passionate, hard driving individuals by nature. Powerful and influential, they are natural-born leaders whom others tend to want to follow. When it comes to philanthropy, they lead by example.

When CEOs engage with a cause they care about, everybody wins. The philanthropic organizations benefit from the passionate enthusiasm of a leader who spreads the word and influences others to get involved. The CEO experiences a deep level of satisfaction from producing results, and truly making a difference in the lives of others. The companies enjoy the invaluable benefits of brand association with a philanthropic enterprise. Employees have the opportunity to get behind a good cause, and take ownership over what their brand represents to the outside world. Not a bad way to become a good corporate citizen.

To use a quote from JKF’s 1961 inaugural speech that even Don Draper would appreciate,

“The torch has been passed to a new generation of Americans…. The world is very different now, for man holds in his mortal hands the power to abolish all forms of human poverty. “

Social Media Engagement Leads to Increased Revenue

2009-07-22T22:14:00.000-04:00

In a compelling study just released by Charlene Li and the Altimeter Group, a link was firmly established between social media engagement and better financial performance for 100 most valuable corporate brands. This was accomplished by correlating the company revenues of these brands with their social media activities over the past 12 months. The brands that had the most strategic interaction through social media platforms enjoyed revenue increases of 18%, while the least engaged companies saw revenues drop by 6% on average over the same period.

To sum up the study’s findings, the key to brand success for the top 10 companies was effective engagement across more than 10 discrete social media channels, including blogs, Facebook, Twitter, wikis, and discussion forums. The winners took a conversational approach to social media channels, and really listened and responded to the comments of constituents.

The reason I like this study is that it helps to validate the ROI of Social Media Branding for companies, and from there it is just a short intellectual leap to understanding the importance of Social Media Branding for CEOs as individuals.

Others have written about the urgency for professionals to make the most of their own unique “personal brand” to advance their careers. I know from experience that executives can derive great benefits from leveraging social media to brand themselves, and to use this platform to wield a great deal of influence among their peers. In other words, social media can solidify personal brand reputations and help executives realize their full potential in the marketplace.

If there is one thing we’ve learned at BRANDfog, it is to believe in the power of social media branding as a tool to broaden life experiences, reshape reputations, and cultivate a wider circle of influence. Social media branding provides senior executives with the means and opportunity to become thought leaders, influence the market, attract new talent, build relationships and expand professional networks.

Using Social Media to Do Good

2009-06-26T14:04:00.000-04:00

We've all seen Ashton Kutcher rise to Internet glory by amassing a Twitter following that now numbers more than 2.3 million. So in a year of soaring unemployment, housing & health care misery, and political instability, who cares about a movie star with a megaphone?

Well sometimes people can surprise you.

A few celebrities and big brands are turning their captive Twitter audiences into “followers” of another sort, by asking them to join into conversations about helping others and donating their time to worthy causes.

Ashton Kutcher and Demi Moore are working with KelloggCares to raise funds to feed the hungry in the US, and using their substantial Twitter following to get people involved. Mashable is transforming social media influencers into cause-marketing advocates by launching The Summer of Social Good. This is the first large scale online charitable campaign to raise funds strictly through the power of Social Media and the Internet. The best part, 100% of the funds collected will be donated to four charities, including Livestrong and the Humane Society.

Social media, celebrity endorsements and the interactive Web have enabled many charitable organizations to extend their geographic reach and increase awareness for many of the philanthropic causes that are especially relevant in today’s economic climate.

It’s always a good time to unite people toward the common good.

Twitter, YouTube and the Iranian Revolution

2009-06-23T08:45:00.000-04:00

The central principle of any dictatorship is control. Dictators want to control what people say and do, by controlling what they see. They also want to control all the money, but that is a different story.

Transparency is the enemy of a totalitarian state. What is so fascinating about the Iran revolution is that Twitter and YouTube are playing such an integral role in the overthrow of a dictator in an ancient civilization.

By the way, I'm not sure from my reading that the guy they want in is any better than the guy they want out. But technology and the Web are emboldening and facilitating what would have simply been repressed and silent rage at a fraudulent election. http://tiny.cc/atmKf

When the Agency Model Breaks

2009-06-02T08:55:00.000-04:00

When demand for hard data from Brands reaches critical mass, the agency model will break and be rebuilt around two fundamentals, Best Creative and a Technology Data Practice.

Advertising's new model

Clock-watchers no more
May 14th 2009 | NEW YORK
From The Economist print edition

A movement to pay advertising agencies for value, not hours, takes off

EMMA COOKSON, the boss of BBH, a global advertising firm, says her industry has been “approaching and avoiding” a change in how it is paid for many years. Avoidance, however, may no longer be an option. On April 20th Coca-Cola said it would adopt a “value-based” compensation system for the advertisers that do work for its 400 brands. Rather than paying advertising agencies for hours worked, Coke will pay for results achieved.

The industry, already sick because of the recession, turned a bit bluer in the face at the news. Global ad spending is expected to decline by nearly 7% in 2009, according to ZenithOptimedia, and by around 9% in America. Carmakers and other faltering firms have cut marketing budgets, and work is harder to come by. There have been lay-offs. It is hardly an opportune time to discuss a change in compensation models. Billable hours have been the standard way of doing things since the 1970s. Assessing a campaign’s value is much harder.

Coke, however, thinks it can do just that. Its new model guarantees to cover advertising agencies’ costs, plus a bonus of up to 30%. The bonus depends on a number of metrics, including the agency’s overall performance, and the sales and market share of the products being advertised. Coke insists that its aim is not to cut costs but to inspire creativity and efficiency. Procter & Gamble, a consumer-goods giant which has also ditched hourly fees in favour of performance-related fees for 12 of its brands, says the same thing.
Coca Cola

What is it worth?

Although the recession may give companies an immediate reason to reassess how they pay their advertising agencies, it is not the sole impetus for the switch.

Discussions about finding better ways to reward agencies for their creativity have been going on for years. The American Association of Advertising Agencies estimates that about 10% of compensation agreements are value-based. Coke’s announcement of its new approach will probably spur other firms to follow suit, and Coke has said that it wants its model to become the standard for the industry.

The shift away from the billable hour, however, may take a while. Some agency executives are sceptical about being paid for value, because it is so subjective. They interpret talk about value as code for cost-cutting. Jeff Goodby, co-founder of Goodby, Silverstein & Partners, an advertising agency, dislikes the fact that Coke’s new policy guarantees only recouped costs. If he is going to take on a project in which he assumes risk by not knowing his profit margin in advance, “There has to be a big pot at the end of that rainbow,” he says.

But some advertising agencies have voluntarily moved away from billing by the hour and towards contracts that reward value. Jeff Hicks, chief executive of Crispin Porter + Bogusky, says this approach has helped his agency work more closely with clients by aligning the agency’s compensation and the advertiser’s profitability. Others, sensing the limitation of being paid by the hour, are trying to develop new ways to capture the value their work can create. For example, BBH recently launched a unit, called Zag, which designs and markets its own products, such as ready-made foods.

Advertising is not the only industry where there is discussion about whether to pay for time or results. Some accounting, consulting and law firms are also scrapping the billable hour, often at the request of their clients. Ron Baker, author of “Pricing on Purpose”, a book on pricing strategies, thinks service agencies need to grasp that they sell ideas, not time, and that ideas should be generously compensated. Imagine, he says, if J.K. Rowling had been paid by the hour to write about Harry Potter.

A Kinder, Gentler Logo for Hard Times

2009-05-31T08:28:00.000-04:00

Warmer, Fuzzier: The Refreshed Logo

Bill Marsh and Alicia Parlapiano

Published: May 30, 2009
The world economy is in mid-swan dive. Wallets are in lockdown. So how does a company get people to feel just a little bit better about buying more stuff? (And perhaps burnish a brand that has taken some public relations lumps?)

Behold the new breed of corporate logo — non-threatening, reassuring, playful, even child-like. Not emblems of distant behemoths, but faces of friends.

“A logo is to a company what a face is to a person,” said Michel Tuan Pham, a professor of marketing at the Columbia Business School. “It’s hard to memorize facts about a person when you only know their name but you haven’t seen their face.” So logos remind consumers about companies’ traits and pluck at emotions — “the glue that ties all the information about the brand name together,” Mr. Pham said.

The economy, environment, image repair — new logos may address all of these. They are also meant to stand out in a crowd, but there are striking similarities among recent redesigns.

TONED-DOWN TYPE Bold, block capital letters are out. Their replacements are mostly or entirely lower case, softening the stern voice of corporate authority to something more like an informal chat.

“Logos have become less official-looking and more conversational,” said Patti Williams, a professor of marketing at the University of Pennsylvania’s Wharton School. “They’re not yelling. They’re inviting. They’re more neighborly.”

Blogs and e-mail, Ms. Williams said, may be encouraging a quieter, calmer, lower-case branding vernacular. Who isn’t tired of screeds that assault the reader via THE CAPS LOCK KEY?

Letterforms in many new emblems are lighter and rounder — an extended family of homogenized fonts that would be comfortable on a local newsletter or generic Web page.

FRIENDLY FLOURISHES Kraft Foods has joined Amazon.com and Hasbro, all represented by logos that smile. And to further lighten the corporate mood, whimsy in the form of sprigs and bursts has been appended to several big brands.

Wal-Mart’s old mark was navy blue, but it felt Red State. The company has been under heavy attack for its labor and environmental practices, bruising its brand in bluer quarters.

A major image overhaul is under way, and a new logo is starting to appear across the country. The military-style Wal-Mart star has given way to a yellow twinkle that punctuates a new message: this is a company that cares, with fast and friendly service and a fresh, innovative outlook, according to Linda Blakley, a Wal-Mart spokeswoman.

Ms. Williams, of Wharton, said the softer Wal-Mart logo serves another purpose: to stand apart from the bright reds and louder typography of its main competitors, Kmart and Target. While Target’s design says bold and cutting-edge, Wal-Mart’s sends a signal that it is approachable and sincere, she said.

HAPPIER COLORS “The economy is the No. 1 influence this year,” said John H. Bredenfoerder, a color expert and design director at Landor Associates, the brand-consulting company that produced the new Cheer detergent emblem. Amid all the gloom, he said, “people need a little joy in their lives.”

Cue the new logos: electric blue type with accents in school bus yellow, red, purple, orange and green.

Last year’s top influence, green for sustainability, remains; leaves still sprout across the corporate landscape.

Mr. Bredenfoerder said that blue was also gaining as a stand-in for the environment (think of earth’s blue orb as seen from space, or clear blue waters) as well as for fresh optimism. But please, make it a joyful sky blue — not dark, corporate-titan navy.

If Obama Were a Brand, He'd Be a Porsche

2009-05-27T12:58:00.000-04:00

Let’s face it. President Obama is one cool customer. Through a global economic meltdown, two wars, and a potential pandemic, Obama is a study in composure and confidence. With the intense media coverage of the First 100 Days, the President remains poised and polished. He genuinely appears to be comfortable in his own skin. At a press conference last month, Obama calmly diffused the growing panic over the Swine Flu by telling Americans to wash their hands. No kidding. And the press responded as though he had imparted great wisdom.

What’s more, Obama really seems to be enjoying himself. He is frequently seen laughing his head off with David Axelrod, or playing basketball with Reggie Love, or simply relaxing with his kids and the first family dog. In his appearances on both 60 Minutes and Jay Leno, Obama demonstrated his intellectual acumen in global matters, while tossing off jokes about everything from Air Force One to the over-protectiveness of the secret service. Last week at the White House Correspondent’s Dinner, Obama joked that Dick Cheney couldn't make the event because he was working on his memoir entitled “How to Shoot Friends and Interrogate People.” He also playfully hinted that Hilary Clinton would like very much for him to contract the Swine Flu.
Obama’s unflappable style has now crystallized into his personal brand. Like all good brand-makers, he has established his reputation through consistency, always appearing thoughtful and resolute in the face of adversity. We know Obama is reflective. We know he will speak calmly and pause before answering any questions. No wonder Saturday Night Live continues to make fun of his cool, controlled demeanor and lack of temper. In a hail storm of calamities both big and small, Obama wears sunglasses.

The branding of Obama on the digital airwaves began early and without his consent, back when the Obama Girl video hit YouTube in the summer of 2007. It was viewed at least 13 million times on YouTube, twice the number of views for any of the official campaign videos. The video was followed by the Obama Hope poster, which was created by a graffiti artist and was by definition user-generated content. The poster became an iconic campaign image for the first African American president of the United States, effectively linking Barack Obama’s image with the word Hope. In a weird Internet-culture moment, the Hope poster also went viral and together these two pieces of content seemed to solidify the pop-icon status of Barack Obama.
If you compare political branding fundamentals with that of commercial brands, you will see that the goals are not much different. Corporations desire a strong brand image in order to sell products, while politicians sell ideas. Just as Obama’s image will shape the perception of America on the world stage, the brand image of business leaders formulates the perception of their products and companies. With today’s powerful social media tools, it is critically important for corporations to develop brand personalities that positively represent the company.
There are many CEO personalities that enrich a company’s culture, and help to establish a brand’s reputation. Think of Richard Branson, Martha Stewart, Steve Jobs, and Larry Page and Sergey Brin. These companies benefit from the strong association between leader and company. Brands that do not have an iconic founder handy can still participate in this game. With the emergence of so many new social media channels, it is becoming mandatory that brands develop and groom executives to represent the company across the web. A smart and trustworthy spokesperson will become the public face of an organization, and will humanize a brand within social media circles.

Today, social media for business is like one big American Idol contest. New platforms enable companies to amplify their message and promote their best talent, but ultimately customers will vote on what they like and don’t like. Too often public chatter about a company is largely ignored by senior executives until it is too late. A company’s silence in the media-sphere creates a vacuum which is naturally filled with user commentary. A few individuals can create a great deal of pain for a brand by spreading inaccuracies and disinformation, which then gains traction through repetition across the blogosphere. Conversely, active participation by a company’s management can insulate a brand from one-sided, unflattering content. Brand perception can be influenced by engaging directly with customers through many digital channels.

Obama is the first president to extend his brand image through social media. In a role reversal of the usual formula, the new administration is leading, rather than following private industry with the adoption of social media. The tech-savvy Obama team has established a presence on many networks including Facebook, Twitter, MySpace, Friendster, LinkedIn, YouTube, and iTunes. They have even created an official White House flickr channel to disseminate photographs in real time, along with a White House blog. With these initiatives, Obama has ushered in a new generation of leadership. He is creating a government that is accessible and participatory, using multiple Internet channels to quickly and effectively connect with the public.

Our business leaders have to be on the forefront of this movement as well. We need to understand Internet technology, mobile platforms, and the inherent ramifications of social media, and become active members in these communities. We are fast becoming a micro blogging culture, where the minutia of everyday life is shared with the world. Some call this the era of social colonization, where all products and services are reviewed by consumers in real time. Relinquishing the idea that it’s possible to control all brand communications is the first step to understanding the new rules of the game. We do know that customers expect to hear from brands on a consistent basis. Companies that satisfy this need will move forward quickly and experience a whole new level of customer engagement. Those who do not will continue to struggle.

One thing great leaders and great brands have in common is transparency. If you’ve delivered on the promise of the brand, then people will believe in you and they will trust you. That’s how you know that your branding is working. And although we have still difficult days ahead, the polls continue to show that as a nation we are feeling very hopeful. That’s how you know that leadership is working.

Ironically, journalists have likened Obama’s style to both Abraham Lincoln and Spock from Star Trek. A few publications have written extensively on the Spock analogy, describing the president’s ability to balance his finely tuned intelligence with a talent for restoring order and inspiring confidence. In the new Star Trek prequel, Spock’s father tells him “You will always be a child of two worlds.” Just like Obama, who was recently called “a cultural translator” by Salon magazine. That my friends, is branding.