Social Responsibility Part II
May 19, 2008
Part II
Reputation Matters
Another motivating force for brands and media companies is the not-so-small matter of corporate reputation-an intangible asset that makes up more than 50 percent of a company's true market cap, according to Anthony Johndrow, managing director of the Reputation Institute in New York.
"Most companies are feeling the impetus to do something good," he says. "A few years ago, you couldn't have started a conversation about corporate reputation in the U.S., where we have [focused on] one bottom line."
To become a better corporate citizen and an effective cause marketer, whatever you do needs to be relevant to your business and your long-term vision. That means you can't just go out and pick any old cause.
A retail bank, for instance, should focus on greenbacks, not greenery. "Banks help people finance homes and educations and start new businesses - that's their space," says Johndrow. "Hearing banks talk about how green they're going just doesn't make sense in terms of messaging." On the other hand, an energy company today should be talking about alternative fuels and its vision of the future.
In the media industry, Johndrow says, it's not always clear which cause will have the most beneficial impact on reputation-although the task may be easier for tightly focused publications, channels and brands than it is for media conglomerates.
"As a result, the reputation landscape is tainted with screw-ups," Johndrow says. "Think about a big powerful media company prosecuting students for downloading songs or fighting with writers. Meanwhile, the consumer is saying, 'Why should I want them to make money?' It's not the best way to improve your reputation."
But there are many examples of natural alignment. Some voracious users of paper products, such as publishing companies, have gotten behind the forestry management cause. "We've been active in the sustainable forestry program for almost 10 years, looking at the whole supply chain," says David Refkin, director of sustainable development for Time Inc. The company's use of certified sustainable wood products has risen from 25 percent in 2002 to 70 percent last year.
Time Inc. also launched a study on the biodiversity of Canadian forests with supplier UPM, the University of Moncton and other partners to assess the impact of harvesting trees on songbird populations, with a full report expected in 2011.
Time is participating in a working group with other large paper users, including HP, Staples, Nike, Bank of America, McDonald's and Wal-Mart. "You learn by talking to other people seeing their challenges and coming up with innovative solutions," he says.
Refkin even goes to logging camps to talk to the big guys-lumberjacks-as well as the big companies. "At one meeting in Michigan's Upper Peninsula, there were 375 loggers who wanted to eat me for breakfast," he recalls. "But you have to engage in a two-way dialogue, and it's better to hear from people directly than through intermediaries."
Most media companies are far less concerned about the source of their paper-and that could be a big mistake, says Dave Deger, vp of marketing for Ohio-based NewPage Corp., the largest coated paper manufacturer in North America.
"Nobody wants to find themselves at a press conference explaining why the company's catalogs or year-end reports were printed on paper tied to potentially illegal logging practices, unfair labor or polluting mills," says Deger. "Reputations can be ruined in just a few minutes."
NewPage is launching a new campaign, "Paper Tells a Story," to educate paper buyers and specifiers about verifying sources of origin and sustainability protocols, such as the Sustainable Forestry Initiative® standard. "Historically, corporate marketers, agencies and printers didn't always have to think about the product their marketing messages are printed on from a sustainability perspective," he says. "We feel it's important to get on the radar of the advertising and design community, as well as companies that sell paper."
The initiative uses direct mail and advertising to drive people to a new microsite (www.papertellsastory.com). Deger calls it an on-ramp for creative types to learn about paper sourcing and production via a blog element, viral videos and podcasts. "As a paper company ourselves, we see direct mail married to online content as an optimum approach," he adds.
For more Social Responsibility coverage:
Part I: How Media and Brands Are Making a Difference
Part II: Reputation Matters
Part III: Consumers React
