So it’s Advertising Week here in NYC, and amidst all of the marketing jargon being thrown around, there was an event entitled “Team Earth: Empowering a Sustainability Movement.” AdAge called it “an event to seek out,” and a last-minute scheduling snafu did not get the even as much publicity as it probably deserved, but it did allow me a seat.
And, it nicely commenced at 5pm, getting me out of the office and on my way to Locanda Verde to meet BG for dinner.
Anyway, the panel was led by some guy at CNBC that I’ve never heard of. The panel consisted of the Chairman of Conservation International, Peter Seligmann, the CEO of Starbucks, Howard Schultz, and the Chairman of Wal-mart, Rob Walton. These heavy hitters in the conservation movement were talking about sustainability and how it has to play a crucial role in business moving forward.
Seligmann threw out a few interesting points. His first point was that the quality of the environment is going down. I guess we all knew that anyway, but he reiterated it. But, he said that engagement, awareness, and understanding is up, and that’s a good thing. The public only really dedicates something like 17% of its interest to the sustainability movement, which is shockingly low, considering that every person on this planet is directly affected by what we’re talking about here. He also stressed the importance of including corporations, hence his sitting on a panel with C-suite execs from two huge global brands.
Schultz, who can’t seem to catch a break these days, despite all of the advertising efforts (did anyone see the Businessweek brand rankings this week– they’re down 16% in brand value), echoed Seligmann’s sentiments, saying that sustainability will simply be part of the rules of engagement moving ahead. There is a balance needed, he said, between making money and having a social conscience. Since everyone refers to coffee as “tall” and “grande” these days, maybe he should have had a social conscience back then when he made us sound like losers when we want a small coffee.
He went on to talk about how people are willing to pay to support it and it has to be a real business change, and not just a marketing ploy. It has to be a truly integrated strategy, part of the company’s DNA, and so on. Now, coming from him, who convinced the country that four bucks is a perfectly acceptable price for a cup of coffee, I’m not sure that he can speak to “willing to pay for it” from the right perspective. If people are willing to pay $4 for a cup of coffee, they will probably still pay $4 for a very slightly smaller cup of free trade coffee. Or $4 for a smaller cup of coffee and a series of about 40 advertising panels in the tunnel between Times Square and the Port Authority. Either way, people do have a social conscience, and by paying a little extra, they think they are helping.
Lastly, Rob Walton talked about Wal-mart’s commitment to sustainability. The thing about Wal-mart is that when they talk, people listen. I personally am not a huge fan of Wal-mart. I’ve been to one once, and I didn’t enjoy the experience. I think their business practices are questionable, and I think they ruin neighborhoods. All of that aside, I do applaud them for what they are doing to drive the food industry around the world to embark upon a path to more environmentally conscious production (remember that whole “when they speak…” bit?).
Now, being the businessman he is, Walton said that what got Wal-mart involved was the opportunity to make a difference… in a profitable way. Wal-mart got you again! But, seriously, that’s the only way to make big business change their tune. At the end of the day, a business is there to make money. For any of this sustainability stuff to stick, it’s going to have to make someone some Benjamins. Even Seligmann admitted that you’ve gotta keep your feet on the ground and not keep your head in the clouds with some pipe dream. For the big guys to get involved, you’ve gotta tell them what it’s going to mean for them business wise. It it don’t make dollars, it don’t make sense.
Anyway, interesting stuff. Check out Team Earth. It’s like a feel-good forum for big companies.
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