Understanding B Corp certification for large enterprises
Completing a Business Impact Assessment (BIA) is a critical step in your B Corp certification journey. But for large businesses, it is not the first step. It’s not the second step either. In fact, it could be up to the seventh step on your certification pathway. The BIA is a free self-assessment questionnaire. It provides valuable insights and action into driving your business towards B Corp certification, and is a great way to learn the questions, data and information B Lab Global will require as part of the certification process. However, larger enterprises with more that USD$100 million in revenue, operating in two or more industries, five or more countries, or those with more than 10 subsidiaries, need to take a step back and complete some preliminary work that will save time, costs, and headaches in the future. Understanding B Corp Certification for Large Enterprises Where to start on your B Corp certification It is critical to choose your certification pathway carefully at the early stages. The BIA is a decision-tree style questionnaire. Once you start, there are up to 74 different tracks and many, many more questioning pathways on which you could find yourself. If you need to change path, B Lab Global needs to do it for you. You can’t do it yourself. That’s why B Lab Global wants to get your organisation on the right path and help you avoid backtracking and unnecessary rework. Initial scoping to determine the certification approach, through to a preliminary risk review, risk screening and eligibility review all come before starting your BIA. This is where a B Consultant like The Growth Activists can help you navigate the complexity of B Corp certification. We’ll act as your mentor, put you on the best certification pathway, and offer guidance to achieve the outcome you want. What to expect on your B Corp certification pathway B Corp certification is a complex process. It takes an average of six to 12 months from initial assessment to submission. Through the BIA, you will need to achieve a minimum of 80 points prior to submitting to B Lab Global. At that point, a formal verification and audit will be undertaken by B Lab Global to verify all claims and points via documentation and evidence from you. As a large business, if you choose to certify you will pay fees for the steps supported by B Lab Global (steps 1-8 as detailed below). You’ll also pay for support from B Consultants like The Growth Activists. Our clients tell us this is still more cost effective than hiring a team, or diverting key people, to do the work. Understanding your B Corp certification pathway The Growth Activists can help guide you through an 11-step B Corp certification pathway. Here’s an overview of the process: Stage Stage Description Role 1 Discovery and Initial Scoping To determine the certification approach based on size, structure and operations. 2 Presentation from B Lab ANZ A detailed, tailored presentation to the company and discussion of what is involved towards B Corp certification. 3 Application and Preliminary Risk Review Completion and submission of the application, payment of fee, followed by preliminary risk review. 4 Risk Screen A deeper risk screen if determined necessary for companies that potentially operate in a controversial or sensitive industry. 5 Eligibility Review Evaluation of issues identified in the risk screen to decide on eligibility for B Corp certification. 6 Full Scoping Comprehensive analysis of the business to determine the number of BIAs, the scope of each BIA, the legal entities required to fulfill the legal requirement, and other implications. 7 BIA Performance Consultation An optional consultation with a B Lab Senior Business Analyst for customised advice. We find that companies gain value from this and we guide them through it, often taking on the load for them. 8 Assessment and improvement This is the point when you complete your BIA and submit. You need at least 80 points to submit. On average, it can take six to 12 months to get to this point. 9 Verification Your BIA is reviewed by a Business Sustainability Analyst from the Certification & Verification Team 10 Certification You sign B Corp Agreement and Declaration of Interdependence after Verification and you progress to adopt the legal requirement to change your governing documents within the required time frame. The details vary depending on the country of the legal entity that is certifying for the enterprise 11 Continuous improvement In order to recertify every three years, it’s important to stay on top of changing standards. You’ll need to be ready with further improvements when you renew in year three. The Growth Activists is an experienced B Consultant. We’re here to support organisations through the complex B Corp certification process with the right advice for your business. Get in touch to learn more about how we can help.
Bringing the Humanity into SME Banking
Consumer banking is well and truly entrenched into the world of self-service, online, faceless, commoditised financial services products. When it comes to SME banking, this segment in which businesses can range from a one-person florist to a construction company with revenues of $45 million, a counter trend is emerging. Bringing the humans and humanity into SME banking is being led from an emerging, unexpected sector – fintech and neobanks. As an HBR article from April, 2020, entitled ‘A Way Forward for Small Businesses’, stated ‘This is a time to be human with people.’ In partnership with the Trans-Tasman Business Circle, The Growth Activists recently sponsored an online event with the two Co-Founders and Co-CEO’s of Judo Bank, Joseph Healy and David Hornery. Having raised a total of $770 million in equity over three rounds, demonstrates the confidence investors have in this sector, particularly during a time of volatility with the existing Big 4 in Australia. But this success has not diluted the humanity nor the humility against which the bank measures its success. Bringing the Humanity Into SME Banking The Founders Vision ‘We felt there had been a dehumanisation of relationship services from the banks to the customers,’ says Joseph Healy, commenting on what he called the industrialisation of the traditional banking model. ‘In the SME economy, in particular, relationships still matter.’ For any SME that has attempted to navigate the structures of traditional banks, this would be a refreshing stance for a challenger SME bank to take. This is clearly highlighted in their mantra – Judo Bank is a challenger bank purposefully built to make it easier for Australian businesses to get the funding they need and the service they deserve. The Connection to the Customer Healy states, ‘People more than capital and more than technology was going to be absolutely critical to our success.’ And this has been clearly demonstrated with their commitment of moving from 60% to 75% of their staff to be client-facing. He continues to state that now, more than ever, banks need to know and understand their customers. He states, ‘Nothing beats sitting across the table from the customer and just going through the things that they should be thinking about, watching their body language to make sure that they are on top of things, and not sticking their head in the sand.’ With SME’s (less than 20 employees) accounting for 35% of gross domestic product and employing 44% of Australia’s workforce, this is not an insignificant sector. One in ten small business owners wants to see added value in the relationship with their bank, according to the 2019 SME Banking Insights Annual Report. Removing a perceived barrier of access to that relationship is key for Judo Bank, ensuring that the Bank recruits talent that is committed to banking and the traditional relationship values that drive success for both the Bank and for an SME. The team that has been built at Judo would agree, as over the last 3 years and with a team of 250 people, only 3 have left. Establishing a New Ethical Benchmark ‘We are committed to banking as a profession,’ states Healey. The question is not a new one, with an article published over a century ago in ‘American Banker’ raising that question: Taking into consideration the important functions performed by the banker, his influence in business and industry and the necessary intellectual and moral equipment to make banking a success, is it not time to assign the vocation of a banker a place among the professions? As ethics and responsible corporate behaviour accelerate to the top of business agendas, Judo Bank’s commitment to being a leader in ethical banking behaviour will be powered by a new stream of ethically-driven Millennials and Gen Z’s as they pursue their business interests and seek to align with like-minded businesses. ‘We want people who are committed to banking as a profession who have committed to the bank and finance ethos and the ethical standards that are critical to any profession. And we want people who are proud to be bankers and who are, and can, demonstrate that they are not just salespeople are pushing products, but they’re deeply, deeply customer-centric,’ says Healey. Judo Bank’s commitment is clear. Every person at Judo has signed and is committed to the Banking + Finance Oath. Commitments have also been made for team members to complete the Chartered Bankers course through FINSIA. What next? Judo Bank is clear that it is never going to be the biggest in Australia, and it doesn’t want to be the biggest. What is very apparent is that Judo Bank is determined to become the best SME bank in the country, built on solid, ethical principles, and in doing so is hoping to answer that 100 year old question. States Healey, ‘I’ve got the appetite to take on the giants in the industry to build a new bank. That’s going to be a great legacy that we are going to feel really proud to be part of.’ SME’s around Australia can’t wait.
How To Understand Shopper Behaviour During A Pandemic
Covid-19 has changed many things in 2020, and shopper behaviour is high on the list. With the pandemic still hanging like a dark cloud over the bricks-and-mortar retail environment, shoppers’ expectations have shifted. Relaxed in-store browsing has largely given way to a more focused approach. Consumers are now more likely to arrive in-store with a clear shopping agenda, and they expect a higher level of focused service when they do go into a retail outlet. Understanding how shopper behaviour is changing through the Covid-19 crisis is vital for retailers. But capturing these shifts in behaviour while still remaining ‘covid-safe’ has become a challenge, particularly for accompanied shops. In the pre-covid world, physically shadowing a shopper and observing their behaviours during an in-store visit provided many valuable insights into consumer behaviour. However, following a shopper around a store has become socially unacceptable during the pandemic and perceived as being risky. But that doesn’t mean Covid-19 has put an end to this valuable research tool. Here at The Growth Activists, our research team was recently challenged with undertaking pandemic-affected accompanied shops for a client project. So we tapped into that ubiquitous device – the mobile phone. Our researchers connected with shoppers on a mobile-based video call, and asked shoppers to direct their phones at what they were seeing in-store. There was a low barrier to getting research participants on board with this methodology as many had already had the experience of shopping and video-calling a friend or relative to get their opinion on a potential purchase. We found that conducting mobile phone-based accompanied shops provided surprising benefits. In fact, it was so successful that we’re not even considering going back to the traditional in-person approach. How to Understand Shopper Behaviour During a Pandemic Here are five key benefits of conducting mobile phone-based accompanied shops: If your organisation has put qualitative research on hold due to the pandemic, or has not yet trialled new research methodologies, there is good news for you. The innovations in methodology coming out of the pandemic are delivering insights that are better for your business across multiple fronts – faster delivery, greater geographic breadth, cost-effectiveness and improved reliability of insights. There has never been a more important time to be attuned to changing customer behaviours – these insights can make the difference between your brand just surviving or actually thriving in 2020 and beyond. This article was first published in Inside FMCG. Rob Shwetz is a Partner at The Growth Activists, and leads the Research & Insights practice. Rob has 25 years experience across customer and business insights, media, communications and customer experience with organisations including Fairfax, Publicis and Mediacom. To discuss your research strategy Rob can be reached at rob@growthactivists.com
Why Gen Z Hates Your Brand – And How to Win Them Over
A new breed of retail business is emerging to take the place of those who failed to innovate for the new economy.
Retail Leadership Skills of the Future
A new breed of retail business is emerging to take the place of those who failed to innovate for the new economy.
Hey, Retailer – Is a Unicorn Eating Your Lunch?
A new breed of retail business is emerging to take the place of those who failed to innovate for the new economy.
The 5 Levers of Growth REVISITED: How to activate them for your business post-COVID19
Recent events have played havoc with the growth plans of almost every business. As we collectively work through the 3 phases of the COVID19 crisis – Response, Recovery and Revival – businesses are required to put greater focus on growth strategy. But they are required to do it at a more rapid pace than ever before, whilst also remaining agile enough to keep evolving as market conditions change. In the Response phase, we saw fashion houses move into making personal protective equipment for medical staff, high-end restaurants doing meal deliveries, and bank tellers retraining as call centre support staff. It was an intense period of innovation by necessity, whilst fear and uncertainty reigned. At this point in time, the businesses who have survived are sitting between the Recovery and Revival phases. We have a much clearer line of sight into the changed conditions we’ll be facing in the next 6-12 months. We also have a firmer understanding that a number of our pre-pandemic activities and behaviours will never be quite the same again. We can consider emerging key trends and scenario-plan for multiple eventualities. This makes it the perfect time to start thinking about the levers of growth with greater clarity and intention. The 5 levers of growth have not changed. What will change is the emphasis placed on one over the another due to the changed market conditions and what may lie ahead. In the article that follows we have left our original piece largely intact, explaining the fundamentals of each lever – but we have also added new commentary around the key considerations in the current business environment. As always, we like to remind our clients that the best way to respond to the future is to create it. This has never been more true, particularly considering that after every crisis we see the emergence not only of new business models but entire new systems that challenge old ones. Post-GFC saw the rise of cryptocurrency, the sharing economy and the gig economy. The courageous who dare to innovate whilst tapping into changed sentiment and behaviours will emerge the victors, with truly future-fit businesses. So as we settle into the ‘new normal’, don’t forget that you play a role in shaping what that looks like through your selected growth pathway. “Only those who will risk going too far can possibly find out how far one can go.” T.S. Eliot How to Activate Them for Your Business Post-COVID19 Levers of Growth There are 5 key levers you can use to grow your business: 1. Geography All businesses market within particular geographic regions. Those areas of focus can range from global down to individual suburbs, depending on the scale of the organisation. Large FMCG brands like Coca-Cola sell in most countries of the world, telcos such as Optus or Telstra sell their services to people and businesses all around Australia while dentists have a hyper-local market with most of their customers coming from a few surrounding suburbs. Expanding outside the geography a business currently operates in enables the acquisition of an entirely new set of customers previously outside their reach. To activate this growth lever, a company must ascertain demand in the target geography. This will entail understanding whether their existing product or service will have traction with customers there, or whether it will need to be adjusted to be more locally relevant. In the case of modifications being necessary, it’s important to weigh up any lost economies of scale, and whether the expansion will deliver an acceptable return in the required timeframe. Moving into any international market can be a very attractive proposition, but when barriers to entry are high, it may be more prudent to extract growth in known environments by activating one or more of the other levers. Done well, opening up new geographic markets can deliver fast customer acquisition and grow overall business value. NEW CONSIDERATIONS: With cross-border travel grinding to a halt during the peak of the crisis, and international travel set to resume later in 2020 and under very changed conditions, entering new territories may be logistically challenging. At the same time, there will be international markets whose own changed conditions may have created a growing demand for your product or service. In this case, do utilise digital means for establishing and building the local relationships that will be essential to you opening in those international markets. AusTrade will be your friend – use any resources they make available. Keep in mind that even pre-COVID19 there have been businesses who have established new distributorships or license agreements internationally without setting foot in the new target market, so it can be done. In the short to medium-term, national (and Trans-Tasman) growth presents lower barriers to execution. But this must be evaluated versus the return on effort versus pursuing a more complex but potentially more lucrative international expansion. 2. Distribution Channel For many businesses, the advent of digital in the early 2000’s provided new channels to reach customers. Previously limited to retail stores or face-to-face sales for B2B, companies were limited in the ways they could sell to customers. With the rise in the ‘always on’ customer, it is important for businesses to make sure their product or service is easy to buy, by being just a click or walk away from wherever customers are. To activate this, Growth Lever organisations need to make sure they have recent customer research that answers the question of where potential customers want to be able to purchase (what they say they will do) and where they might purchase (what channels they are active in). If customer behaviour insights identify channels that may drive additional sales with existing customers or acquire new customers entirely, then the business should activate these new distribution channels as soon as feasible. Some of the distribution channels available include: NEW CONSIDERATIONS: The rapid adoption of new technologies during lockdown has clearly demonstrated a greater openness to online sales platforms as well. In the fashion industry,
The Top 5 Things to Consider When Choosing a Business Consultant
At one point or another in its journey, every business will need to reach out for help to improve its performance. Whether the problem applies to the total business or to one division, once it’s clear that internal attempts at improvement are failing, it becomes necessary to search out expert advice. But the questions business owners and leaders face is which advisor to select, how to decide and what they need to know when choosing a business consultant. We’ve identified the top 5 key criteria to consider in evaluating an outside advisor for your business. The Top 5 Things to Consider When Choosing a Business Consultant 1. Independent Business Consultant, Boutique Consultancy or Enterprise Management Consultancy? There are pros and cons that go with each of these choices. With the Independent Consultant you won’t find your business flooded with inexperienced first-year university graduates doing the initial assessment work. The level of direct involvement by the principal consultant will be high. But, if the scope of the project broadens there is a risk that it could stretch beyond the competencies of an individual consultant. With a consultant with a narrow field of expertise, you may find yourself having to reach out to other consultants to bridge the gaps. With Enterprise Management Consultancies there is rarely an issue with their breadth of competency. But the engagement will undoubtedly be an expensive one and the face-time with the organisation’s top talent can be very limited. The old adage is that these groups pitch with the A-team and deliver with the B-team. Depending on the size of the business and budget available, a boutique consultancy can be a good solution. These mid-sized consultancies are generally made up of a small group of senior advisors with a variety of skills, and with a strong network of external resources to bring in should the scope broaden. 2. Experience & Credentials The first consideration is whether the consultant has competencies that stretch beyond what you already have in your organisation. Or would they be another pair of hands helping you to work on a problem? If it’s the latter, your risk not getting the value this type of investment should produce. You want to be certain that they are asking the sorts of questions that no one else is asking. And they are sharing the type of knowledge that is currently absent in your business. Your consultant should also be capable of taking a holistic business view. Will they understand complex key stakeholder relationships and expectations? Particularly for projects where stakeholders extend beyond the immediate organisation – they might include shareholders, investors, suppliers or community groups – your consultant should have experience managing stakeholder expectations at critical milestones throughout the process. As for validating experience, whilst case studies are valuable, it’s important to go a step beyond and ask deeper questions. Ask what type of process the consultant applied and how challenges were overcome in the course of a project . References can be invaluable. Direct introductions to project leaders within the organisation in the case study is a great way to assess the experience of working with the consultants. 3. Flexibility The process for running a successful consulting project must have the discipline to keep agreed outcomes on track. But it mustn’t be so inflexible as to not allow for the specific characteristics of your business culture and go-to-market approach. Is the approach proposed by the consultant respectful of the unique aspects of your business? Does it consider what is currently effective and important to team engagement and performance? Or is the consultant applying an inflexible boiler-plate process against your project? If so, you may want to re-evaluate their suitability. With the speed of change in business increasing rapidly it is critical that your consultant has their finger on the pulse of the evolution of business. Do they deeply understand what it takes to thrive in the new economy? Beyond this, will they undertake the project with enough agility and flexibility to ensure that any unexpected discoveries get acknowledged and addressed? You want to be certain that their approach is outcome-focused versus process-centric. 4. Critical Thinking The biggest difference between outstanding consultants and the rest is their problem-solving capability. You are engaging a consultant to solve a business problem, so ultimately you need creative problem-solving skills. Beyond the case study outcome, you must look for evidence about how insights were interpreted in a novel way. Even more importantly you will want to see how the application of innovative solutions created a significant advantage in moving the organisation forward. Take the time to get to know the team who will be working on your project. Look for evidence not only of exceptional analytical skills, but also the ability to apply creative and imaginative solutions to problems, in a way that will create value. That value may manifest across a diverse range of critical metrics that underpin the success of the project. 5. Principled & Purposeful Finally, you will be looking for exceptional professionalism. Or what is often referred to as an ‘unimpeachable character’. The consultant must demonstrate that they are able to put the client’s best interests ahead of their own. This comes down to individual and organisational purpose. You will want to explore whether the consultant and the organisation they work for are genuinely driven by the desire to help organisations fulfil their potential, or whether other motivations are at play. A principled consultant will be highly empathetic and will care deeply about their client and their goals. A principled consultant must also be willing to tell the client things that they may sometimes not want to hear. Often these unwelcome messages outline changes needed to achieve the desired outcomes. This entails putting honesty before politics, even if it means risking future business for the consultant. This type of candour, whilst sometimes confrontational and difficult to digest, should be highly valued. Conclusion Your criteria for choosing a business consultant should reflect the priorities and values
Insight on Research Insights
[vc_row full_width=”stretch_to_container”][vc_column][vc_column_text]A while ago, I was working on the strategy team of a large media buying company. A media buyer, in a panic, came running up to our desks.[/vc_column_text][vc_single_image image=”3111″ img_size=”full” add_caption=”yes”][vc_column_text] ‘I need some insights.’ ‘What?’ was my response, obviously not having noticed the ‘Take a Number for your Insight’ queue that had been set up that morning, under a sign titled ‘The Insight Factory.’ ‘I’m presenting to a client this afternoon and I need some insights. Here’s the deck. If you can just pull together some insights, that would be fab.’ We postponed the presentation. [/vc_column_text][/vc_column][/vc_row][vc_row full_width=”stretch_to_container”][vc_column][vc_column_text css=”.vc_custom_1678710525220{margin-bottom: 0px !important;}”] Insight on Research Insights Along with terms such as ‘strategy’, ‘disruption’ and ’innovation’; insight is loosely used, poorly understood and undervalued. A consistent definition of what an insight is, along with an understanding of the value an insight can bring, unlocks new opportunities across marketing, business strategy and customer experience. Deep insights are essential for powerful and effective strategy.[/vc_column_text][vc_row_inner][vc_column_inner][vc_column_text css=”.vc_custom_1549925040694{margin-bottom: 0px !important;}”] Defining an Insight Often an insight is defined by what it is not – It’s not data, it’s not an observation (more on that later) and it’s not the ramblings of a focus group participant just there for the sandwiches. An insight is the why behind all of these. An insight delves deep into the Why. Why is a particular behaviour occurring, why have certain statements been made, why is the data what it is. My definition of an insight is: ‘A deep and previously undiscovered perspective that tells us why. Why a behaviour exists anchored in a core human truth.’ It’s at this point, the insight should set off the light bulb ‘a-ha’ moment.[/vc_column_text][/vc_column_inner][/vc_row_inner][vc_single_image image=”3118″ img_size=”full” add_caption=”yes”][vc_column_text] An example. I was working on a frozen meals brand and looking to understand the choices that shoppers would make at the supermarket. With the target audience being young, single females, we noticed that she would start at the freezer section to choose the frozen meals and then carry on to finish her shopping. Most of the shoppers we observed used hand carry baskets for their items, and we made an assumption that the frozen meals were shopped first and then fruit and veg to complement the meal. The truth was a little different – when questioned afterwards as to why they shopped frozen meals first, the response was that they didn’t want other shoppers, particularly male, to think they couldn’t cook and had to rely on ready made frozen meals. They were embarrassed at having to purchase them, so they hid them at the bottom of their shopping basket! This had a significant impact on key messaging for the communications we developed, shifting from ‘convenience & speed’ to ‘its OK to have a break in your busy life’. [/vc_column_text][vc_single_image image=”3119″ img_size=”full” add_caption=”yes”][vc_row_inner][vc_column_inner][vc_column_text] 4 Steps to Great Insights 1. Define the problem from the user’s perspective Your problem – declining sales, increased competition – is not their problem. And frankly, they don’t care. Our shoppers problem was not wanting to be perceived as a lazy or bad cook because they purchased frozen meals. Framing and defining the problem from their perspective puts you in their shoes. 2. Understand why the problem is a problem. For young, image-conscious women, maintaining their image is crucial in all situations – even in the supermarket. They want to create a certain perception and believe that their shopping basket influenced that perception. Articulating the why begins to unlock deeper, emotional and human reactions for behaviour.[/vc_column_text][vc_single_image image=”3120″ img_size=”full” add_caption=”yes”][vc_column_text] 3. Define the underlying motivations End users are ultimately motivated to solve problems in their lives. And looking for the easiest path to the result. These motivations are will rise to the surface as frustrations, sometimes exasperations and at time even anger. For example, paper towels – highly functional and used to clean up a mess. But a paper towel company in Germany researched the key motivators behind the use of paper towels, and what they found was a powerful insight. Paper towels are used to diffuse upsetting family situations. Think about a child spilling a drink and the chaos and tears that ensue – paper towels come in to save the day. This went on to impact messaging and packaging for the brand, including printing happy images of teddy bears and butterflies.[/vc_column_text][vc_single_image image=”3121″ img_size=”full” add_caption=”yes”][vc_column_text] 4. Imagine the Perfect Outcome for your user Imagine their problem has been solved. Think about how they would feel once their problem has been solved, and what role you can play in solving that problem. You will know you have landed on a valuable insight that unlocks opportunity when it; Creates a solution for a real problem for your end user Motivates the user to action, as they can see the clear goal Provides a unique perspective into the user’s life, goal, and emotional state Finding a truly valuable and unique insight is not easy, and needs constant challenging of assumptions, customer behaviour and nailing the ‘why’. But it pays dividends as powerful insights drive competitive advantage for your business. You can explore more of our case studies and articles here.[/vc_column_text][/vc_column_inner][/vc_row_inner][/vc_column][/vc_row]
When CEOs Become Activists
Why more business leaders are putting Purpose first. There was a time when no CEO in their right mind would dare make a statement that risked customer alienation. Back in 1990, when Michael Jordan was asked why he failed to endorse a local black candidate running against an openly racist incumbent, he was infamously attributed as saying “Republicans buy shoes too”. Even though it’s never been categorically proven that Jordan said this, the quote stuck. For years it was upheld as an exemplar for business leaders to heed. But times have changed. As the most progressive global organisations become increasingly purpose-driven, their leaders are also taking a more public stand on the issues that align with their companies’ values. Topics such as gender, race, sexual orientation, religion, immigration and the environment are no longer off-limits. Start With Why The primary driver for CEO’s becoming increasingly vocal on controversial topics is the evolution towards purpose-led business strategy . This business approach acknowledges that the corporation has a responsibility not just to shareholders, but to a broader group of stakeholders. These stakeholders include customers, employees, suppliers, local communities and the environment. This empowers the CEO to advocate on behalf of a larger group of stakeholders, and as a result to address a broader group of topics that affect them. There is also the fact that CEO’s understand that the general public expect more of them, and the businesses they represent, than ever before. The 2019 Edelman Trust Barometer demonstrates that trust in business sits at 56%, higher than trust in government or media which are at 47% each. This makes it clear to CEO’s that there is an expectation that they deliver on the trust invested in their organisations. This sentiment is particularly strong with influential millennials. 47% of them say that CEO’s have a responsibility to speak out on social issues. And 56% say that the imperative to be vocal is much greater now than in the past. Millennials are also more likely to buy from brands helmed by CEO activists and to stay as loyal employees with CEO activist bosses. And there is the growing frustration that governments do not make fast enough progress on key issues. Political gridlock, slow bureaucracy and failure to represent constituents are amongst the reasons business leaders are stepping up to lead public discourse. CEOs are using their positions to raise awareness for the causes requiring attention. And they’re wielding their economic power to influence policies and legislation. When CEOs Become Activists 3 Activist CEO’s Advocating with Purpose and Impact Marc Benioff – Salesforce Benioff has made headlines over the last few years, weighing in on topics ranging from taxes assisting the homeless in San Francisco to gun laws. But his most high-profile foray has been in support of the LGBTQI community. When the state of Indiana passed a controversial law allowing businesses to deny services to same-sex couples, he acted decisively. Benioff threatened that Salesforce would boycott the state completely. Other business leaders joined him and the bill was soon overturned. Benioff acknowledges he represents a broader group of stakeholders, saying, “CEOs need to stand up not just for their shareholders, but their employees, their customers, their partners, the community, the environment, schools, everybody.” His position on activism is that he only advocates for what is important to his people. He says, “My job as CEO is to listen deeply to my employees and customers and to respond to them effectively.” Rose Marcario – Patagonia Rose Marcario has tripled the company’s profits since stepping into the CEO role in 2009. She has also exponentially elevated the brand’s profile through relentless activism. As a certified B Corporation, Patagonia commits to countless courageous initiatives doing good for people and planet. But Marcario’s gutsiest move was to sue the Trump administration for its decision to reduce Utah’s Bears Ears National Monument by 85%. A company statement read: ‘This is not about politics; it’s about protecting the places we love and keeping the great promise of this country for our children and grandchildren. We won’t let President Trump tear down our heritage and sell it to the highest bidder’. When recently asked how the drawn-out legal proceedings have affected the company Marcario replied, “[The lawsuit] has been great for business. We’re going to have the best year ever.” Mark Parker – Nike Outgoing Nike chief Mark Parker is no stranger to divisive social issues. When Nike aired their Dream Crazy ad featuring Colin Kaepernick in 2018, both the media and the public were quick to react. Kaepernick had lost his job as a quarterback at the San Francisco 49’ers and had been deemed ‘unemployable’ by other NFL teams. He had deeply divided Americans by taking the knee during the national anthem to show his allegiance to the ‘Black Lives Matter’ movement. Nike’s decision to support Kaepernick ensured Americans clearly understood on which side of the divide the company stood. The ad ends with the line “Believe in something. Even if it means sacrificing everything”. And in creating the ad Nike was willing to walk the talk. The stock price initially took a hit, and the media fanned the flames of controversy by showing enraged conservatives burning their Nike shoes. But within days the stock climbed to an all-time high. By the end of the quarter, the sportswear giant reported a 10% jump in income , driven primarily by an increase in revenue. Nike’s results proved that taking a strong position can be very good for business. Parker, who approved the ad, defended the sportswear giant’s position. He commented, “There are values that are important to the brand and the company that we’re not going to shy away from. We support the views of our employees, our athletes. And yeah, we will put a stake in the ground and take a stand.” 3 Take-Outs For CEO’s who have embraced purpose and are exploring broader stakeholder advocacy, there are a host of considerations to ponder. Here are three they
