3. 3
3 in 4 Employees Want to “Do Good”
and Looking to Employers for Purpose
“Commitment to social issues” is a major factor for Americans deciding…
52%
40%
48%
+20%
+26%
+29%
0% 25% 50% 75% 100%
Wish my
employer would
do more for
social causes
How I invest
Where I work
2001/04 survey 2007 survey
77%
66%
72%
Source: ConeCause survey of 1096 consumers in 2001, 2004 and 2007
4. 4
Customers and Investors
Want to Buy and Invest HIP
INVESTORS
66% see “doing good”
as positive indicator
19% REFUSE to invest
if firms not “doing good”
CUSTOMERS
65% want to “do good”
by BUYING
49% DON’T buy if
not good
38% tell a friend
Source: Cone survey of 4000+ consumers, 2007-2008
5. 5
But CFOs, Investors & Corporate
Managers Unclear on $ Value
McKinsey surveyed 238 CFOs+investors
& 127 CSR leaders:
• 85% see long-term financial value from eco-
initiatives…
• BUT, 45% of CFOs and 51% of investors see
them as less important to financial value during
this crisis!
6. 6
But CFOs, Investors & Corporate
Managers Unclear on $ Value
McKinsey surveyed 238 CFOs+investors
& 127 CSR leaders:
• And, 53% of CSR professionals “don’t know” the
shareholder value of eco-initiatives.
• Finally, 14% of CSR managers prioritize charitable
giving as more important than revenue growth, at
12% (!!)
Brand enhancement, talent management and society’s expectations
are quoted as the top 3 ways that ESG programs deliver value
10. 10
Always Ask: “HOW HIP IS IT?”
• What human problem
does this solve?
• How do you design for both
Human Impact + Profit?
• What management practices
are in place to be HIP?
13. 13
1) Health: Clean Doesn’t Smell
Clorox GreenWorks + Sierra Club
Solves Human Problem:
* Non-allergenic (health)
* Affordable, small premium (wealth)
* Eco-stable cleaner (earth)
Delivers Environmental Benefit:
* Meets EPA “design for environment”
(DfE) standards
* Biodegradable = 100% renewable
Profitable for Investors:
+ 42% category market share
+ $200 million annual sales
+ Doubled the category size since
Dec. 2007 launch
14. 14
1) Health: Maximizing Life
GE’s Logiqbook XP Ultrasound
Customer Affordability
$16,000 retail price
Lease for $339 per month
Employee Satisfaction
Solving a Human Problem…
Investor Delight
…for Profit
+ New market, high-growth,
+ lower manufacturing cost,
+ increased margins
15. 15
2) Wealth: Increasing access to capital
Wal-Mart Debit Card
• Unbanked = 10% of US
families; 10 MM
households
– Frequently pay high fees relative
to frequent transactions
• New services increase wealth for
customers:
– Lower check cashing
fees
– Easier shopping at WMT,
car rentals, hotels
– Trusted remittances to
family abroad
– Access to ShareBuilder
investments
17. 17
3) Earth: Saving Money + Carbon
in Green Data Centers (SUN)
• Sun optimized its data centers in Silicon
Valley
– Enabled “virtualization”
– Arranged for energy efficiency
– Implemented energy sensors
– Reduced 2,177 servers to 1,240
• Saving both operating + capital $$$
– Avoided $9.3MM in new construction
– Retrofit payback in 3 years or less
– $1mm utility incentive payment
• Positive impact on environment satisfying
growing customer need
– Eliminate 4100 carbon tons yearly
http://blogs.business2.com/greenwombat/2007/08/sun-greens-the-.html
20. 20
5) Trust: Transparency of Supplier
Sourcing and the Entire Carbon Chain
Solves Human Problem:
• 100% traceable gold and silver
• Personalized map of your purchase
at: www.LoveEarthInfo.com
Delivers Environmental Benefit:
• Supplier scorecard also tracks CO2e
(carbon) associated with mining,
refining, transport, crafting, delivery
• Target: Zero waste; minimize water
Profitable for Investors:
+ Positive growth of product line in
declining category
+ Targets 10% of jewelry line by 2010