Month: October 2012
I enjoyed reading this TriplePundit article earlier in the week, Levi’s Quietly Announces Climate Change Strategy. It touches on a trend that I think a lot of us are observing: companies are actively addressing sustainability issues but they’re not really talking about it publicly. This is particularly true for climate change strategies. And as Mike Bellamente notes:
The unfortunate reality is that climate change remains such a high voltage issue for people that addressing it as a corporation can no longer be effectively marketed as a benefit to consumers….People don’t want to be saddled with the world’s problems when they are out buying jeans. In fact, consumer brands are more likely to risk alienating politically conservative consumers (53% of whom deny global warming) than they stand to gain in boosting sales for demonstrating leadership in corporate responsibility.
At the same time, companies are aware of the risks of climate change, and they are actively addressing them in their business strategies. As one sustainability communicator told me recently, until there is pressure from financial analysts to report on these issues, companies won’t take the risk.
This creates an interesting challenge for public relations departments that want to tell their companies’ stories, but part of the story brings too great a risk. Does the fact that companies are making a priority of sustainability and climate changes strategies obligate them to talk about it? One could argue that by not talking about it, companies are missing out on the opportunity to educate the public on the importance of these issues. And, that could explain, in part, why there is such a disconnect between business behavior and consumer behavior around global environmental issues.
The biggest challenge, of course, is the economics of sustainability. As long as green products cost more than other products, they will be considered a luxury. I appreciate a recent blog post by Robert Axelrod at Fleishman Hillard which suggests that green products be discounted. While this may raise questions among consumers about the quality of green products, it will certainly drive purchasing behavior.
I want to diverge a bit from sustainability to talk about an important case in nonprofit public relations. This morning I talked with a New York Times reporter about the Susan G. Komen crisis that unfolded earlier this year. As I was preparing for the interview, I was piecing together the timeline since the initial announcement by Planned Parenthood that Komen would no longer fund its cancer screening services. It is fascinating to me that after the crisis, corporate partners continued to support the organization, even increase their association with the organization, clearly indicating that Komen is a good cause marketing partner. But, the advocates and fundraisers at the local affiliates are seeing a significant drop off in funding for their Race for the Cure, a primary source of income for the local affiliates.
So, why the disparity? Why are corporate partners still onboard with the organization but local supporter are not?
Here’s what I think. No one anticipated that Komen would make a politically motivated decision with its funding (let’s set aside the debate over whether it was truly politically motivated, and let perception be reality). So it caught the public, supporters, and partners by surprise. When Komen reversed its decision, the public moved on pretty quickly, but local fundraisers, advocates, and supporters felt betrayed by the decision. Pink still sells products, because the investment is low. I can buy a pink product for the same price as another, so why not let some of the money go to a good cause. But, raising money for a charity or making a donation requires a higher level of involvement. Supporters of the local affiliates have raised hundreds of thousands of dollars for the nonprofit. Some feel that Komen’s decision revealed a political motivation, and they feel betrayed.
Add to that the unique circumstances in this crisis. The issue that Komen engaged was outside of its mission, and for some women, that issue is more critical than breast cancer research. So, while some past supporters may continue to feel good about giving to Komen to support cancer research, others feel good about NOT giving to Komen and thereby taking a pro-choice stand. Komen has created a dilemma for some groups, forcing them to choose between two important issues. Fighting breast cancer is a cause that brings people together, but abortion is a cause that polarizes them, and Komen introduced a source of conflict into its organization when it made the ill-fated decision.
So where did Komen go wrong in its public relations? Here are five key missteps.
- First, decision makers didn’t vet the idea broadly. Had they consulted with a PR agency (I believe Ogilvy was on retainer but was not told about the decision before it became public) they would have been advised to take a different approach to the issue. I’ve read that the board did ask senior management to project consequences that may result from the decision. Based on their research, management recommended Komen continue funding Planned Parenthood, but the board disregarded the recommendation (the issues with nonprofit boards is a topic all its own).
- Second, they didn’t own the story when it came out. They let Planned Parenthood own it.
- Third, they didn’t respond with full disclosure. If they had revealed their dilemma with pro-life supporters, the public may have been more receptive (it would have been most effective to talk about the dilemma publicly before the decision was made).
- Fourth, they didn’t engage with the media and publics quickly. Instead employees issued generic statements and deleted posts from the Facebook page.
- And, finally, they didn’t clean house quickly. The significant personnel changes that we’ve seen over the past few months should have happened right away in February.
What can we learn from the case? Nonprofits (or any organizations) must be transparent in their communication about decisions, especially highly contentious ones. The board should have known that the public would view the Planned Parenthood decision through a political lens. Either they missed it, or they misjudged it by thinking the public would be forgiving because of the good work they have done. It’s possible that they thought the story would never surface, but that, too, was naive.
The second lesson is this: engage with your stakeholders. The backlash that Komen is feeling right now comes from local supporters and fundraisers. If they had engaged with the affiliates before the decision, the outcome may have been better. I see Komen making much more effort to bring affiliates into the conversation now and even put the spotlight on the impact in local markets.
Will Komen’s reputation be completely restored? As long as abortion is a hotly debated issue, it may be difficult for the nonprofit to restore the relationship with a portion of its base. However, I see Komen trying to refocus on the outcomes of its research investments and the impact of its local affiliates, and that’s where the nonprofit needs to be focused right now. This will help restore its reputation.
Big celebration today because my book with Lee Ahern just published – Talking Green: Exploring Contemporary Issues in Environmental Communications. Check it out. The book explores strategies for motivating environmental behaviors by offering a number of thought pieces and research studies reacting to Tom Crompton’s (World Wildlife Fund – UK) white paper, Weathercocks and Signposts.
In the white paper, Tom argues for a greater focus on what he calls a “values-based” approach to environmental communication rather than a “marketing” approach. In a nutshell, the values-based approach taps into identity and associates environmental action with values that people already hold; the marketing approach asks people to take small steps that lead to larger commitments toward the environment.
The chapters explore different aspects of his arguments and add new insights to our understanding of the value and impact of environmental communication. I’ve enjoyed working on the project, and I’m happy to be able to share it with others now.
The Institute for Public Relations housed at the University of Florida is an excellent resource for public relations and communications professionals. Check out this excellent post on the IPR blog by Linda Locke at Reputare. She discusses the findings of a number of published research studies on the impact of sustainability and CSR on business outcomes, such at earnings and brand value.