Category Archives: Stakeholder Engagement

To compost or not to compost

So, I was going to write an article about Frito-Lay/SunChips’ new biodegradable bag (which I purchased for the first time last week), and to initiate a discussion about whether or not, from a cause marketing point of view, the company has done a strategic job of leveraging their CSR efforts to their best business advantage.  But when I sat down to read up about SunChips’ marketing process, I learned that the biodegradable bag had been yanked due to noise levels!

Indeed, I noticed right away that the bag was noisy.  Like a freight train actually.  But as an environmentally concerned consumer, I felt good knowing that I could put the bag in my green bin. In fact – I wasn’t much of a SunChips enthusiast before the bag hit the shelves.  I bought the chips because of the bag.  And I suppose that was part of the company’s motivation for introducing a compost-able bag in the first place.  Again, as an environmentally concerned consumer, I was shocked that feedback over the bag’s noise level would have been enough to prompt an overhaul of SunChips’ heavily hyped and costly compost-able bag rollout. 

So what exactly is going on here?  Why all of the corporate flip-flopping around a fairly compelling and cutting-edge green packaging initiative?  My best guess is that Frito-Lay determined (after an assessment of focus groups and initial reactions) that the bottom line business gain resulting from their CSR efforts (after all, lots of folks like me would have probably continued buying the chips in spite of the noise) was going to be eclipsed by the broader public’s reaction to the bag’s noise level.  In other words, good business sense trumped the company’s interest in doing good

Frito-Lay is going to reintroduce a quieter version of their biodegradable bag soon enough, so they haven’t abandoned ship altogether.  But there is a fundamental lesson to be learned – that is, CSR efforts must be strategic.  They have to integrate with the bigger business picture.  They have to consider the needs and interests of target markets and corporate stakeholders.  In other words, while they have to be authentic, they ultimately have to help drive business (and certainly not undermine it). 

Sounds like basic stuff.  Also sounds like Frito-Lay learned the hard way.

Passion Points:

  • When considering a CSR or sustainability strategy, don’t lose sight of the business bigger picture
  • Consider the demographic of your key stakeholder groups – what are their priorities and interests, how will they react to your CSR platform?
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Green and Generosity – 2 New Envy Trends

There are significant CSR implications in Statusphere, the latest offering from trendwatcher.com – one of the world’s leading consumer trends firms. Based on the premise that “consumers are finding increasingly diverse ways to get their status fix,” it identifies five new areas in which consumers are vying for bragging rights.

One of them is Generosity. Perhaps as a reaction to the impact of greed on the latest economic meltdown, giving now trumps owing as a mark of prestige. Not only are consumers feeling a need to express their more altruistic side, they want to share the experience with others. Giving circles, crowdsourced giving and collaborative giving models abound. Online initiatives that allow individuals to choose the beneficiaries of corporate philanthropy are becoming increasingly common.

As it relates to CSR, many companies are recognizing that corporate philanthropy alone isn’t enough. A more strategic approach dictates a path of stakeholder engagement where customers are an integral part of the giving program – helping to make making decisions and given an opportunity to share experiences. (See Pepsi’s Refresh Project)

Another area identified is “Green Credentials and Unconsumption.” Increasingly consumers are anxious to demonstrate their “eco-credentials” to their peers. The latest ecological symbols and obviously eco-friendly products are taking on the status previously reserved for labels like D&G, Coach and others. And ecologically friendly services (from landscaping to roofing to banking) are taking on the same appeal. Just as in the case of Generosity, consumers are seeking the forums to tell the world they are truly green with envy. The days of the gas guzzling SUV as a badge of accomplishment are gone. Hybrid is the new hot auto label as consumers try to outdo their peers by consuming less.

Most companies have recognized that the green plank is essential to any CSR platform. The truly enlightened players are providing stakeholders with products and services that can express both the company’s and the individual’s eco-interests. Moreover, they are providing ways for stakeholders to share the experience by becoming actively involved and expressing their opinions. (See TD Friends of the Environment)

Passion Points:

  • Meaningfully involve employees and customers in your company’s philanthropic efforts.
  • Make sure your communications plan trumpets their successes and provides the forums for them to share their experiences
  • Ensure that your company’s eco-initiatives are well publicized and well-known by employees.
  • Wherever possible include a respected eco-certification with your green products and services
  • Provide employees and consumers with ways to be active partners in your ecological or sustainability efforts.