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DIRECTIONS MONTHLY SUPPLEMENT MAY 07

CORPORATE RESPONSIBILITY AND BRANDS – A COAT OF FRESH GREEN PAINT OR THE NEW STRATEGIC BATTLEFIELD?

COR POR ATE R E AN SP D B ONS IBI RA LIT ND Y S

TRENDS AND ISSUES IN THE WORLD OF CORPORATE REPORTING

Directions Monthly May 2007

Issue 12

Corporate responsibility in advertising With just about every brand now rushing to promote its environmental, ethical and responsibility credentials, we thought it was time to assess how much substance there really is to it all. In this specially extended edition of Directions Monthly we take a look at how deep CR really does go in these organisations and we try to identify what is strategic, and therefore likely to be sustainable, versus what is just opportunistic greenwash. To do this we have taken a (admittedly unscientific and subjective) look at advertising campaigns from around the world. These are our views as practitioners in the field of CR. But we don’t have to produce advertising for these companies, so we’ve also got an expert’s view. We have invited Cilla Snowball, Chairman of AMV.BBDO, to give us an insight into how two of her agency’s clients have approached the integration of aspects of CR into their consumer propositions – and it’s interesting stuff.

Nigel Salter

Lucie Harrild

With corporate responsibility now playing a key role in mainstream consumer advertising there can no longer be any doubt about its contribution to a company or a brand’s reputation and success.

Nigel Salter Director, salterbaxter

Mass market campaigns now feature messages from the full range of CR issues: ethics, environment, social responsibility, climate change, and values are all being used to help market products. And there are some obvious reasons why this new wave of ethical adverts are being produced. A MORI poll in January 2005 reported that only 5% of the UK population said the environment was ‘the most important issue facing Britain’. In January 2007, this had nearly quadrupled to 19%. And a new WPP study shows that climate change is now the number one issue that UK consumers are hearing about – with 85% hearing about it. A recent report by management consultancy Arthur D Little also explained how it saw leading companies and innovators moving beyond the original parameters of corporate responsibility. The report argues that real innovators are now focusing on what it terms the corporate responsibility opportunity or CRO. Their insight is accurate although their terminology is pure jargon. This all points to the fact that CR now has fully fledged commercial wings and it’s not rocket science to work out why. We think the real challenge is to identify what actually works and how to tell the difference between hot air and hot ideas...

A MORI poll in January 2005 reported that only 5% of the UK population said the environment was ‘the most important issue facing Britain’. In January 2007, this had nearly quadrupled to 19%.

Directions Monthly May 2007

Issue 12

An overview from salterbaxter… (A selection of campaigns reviewed and dissected)

salterbaxter green rating guide

1 Dove

Bleeds green

The campaign for real beauty (www.campaignforrealbeauty.co.uk)

Wishy-washy green

Deep green

Puke green

What I like about this campaign is that it isn’t a defensive response to an awkward subject. It’s true there was an issue for all fashion and cosmetics brands to think about – but this wasn’t an obvious response. This is a good contrast to the effective but slightly defensive response of oil firms talking about future energy sources. Dove’s campaign features real women (not models) and celebrates each one’s unique beauty. This taps into the very real debate about how female models are too thin and how the world’s preoccupation with skinny waifs has contributed to undermining female self-esteem. Dove’s ads have also been adapted in clever ways to suit different markets and challenge local stereotypes. In Japan the campaign broached the subject of eyelid surgery and in Brazil they featured a woman with small breasts. Dove has also now launched a fund to help organisations which address eating and self-esteem issues. To me this campaign is genuinely strategic as it has completely re-directed the way in which this brand is talking to its customers. It’s got substance. It’s focused on well defined issues which are relevant. It’s groundbreaking and it has got proper follow through outside the purely marketing aspects. This one works – and I’d go further. This is one of the best examples of the social and commercial combining to make a brand story more effective.

2 Peugeot The Peugeot 206 HDi – ‘Le Mouton’ (www.peugeot.fr) Run in France, this campaign shows a car parked in the countryside. It gets sprayed in mud and is then approached by a sheep. The sheep looks at the mud then wipes

itself along the side of the car to clean it all off. The ad finishes with a focus on the line ‘Peugeot 206 HDi – Clean technology. Nature will remember’. This is a classic case of a company simply trying to paint on some environmental credentials. There may have been some improvements to the car’s technology but in essence it’s the same product that has been marketed without the environmental credentials for years. This is the sort of opportunistic adoption of a topical subject that most consumers see straight through. Not strategic and not particularly imaginative.

3 Chevron Will you join us (www.willyoujoinus.com) This campaign has been run across most media but it all ties in to a website where Chevron state ‘To deliver the world’s energy, we need yours first’. The site also features a brilliant counter device which shows how much oil and gas has been consumed globally during your visit to the site. The site is then basically a debate forum which airs views and analyses all the issues relating to the subject of the world’s energy needs. As mentioned earlier, whatever the oil companies do has a hint of the defensive because of the nature of this debate, so cynics could just brush this campaign aside as ‘they would say that wouldn’t they’. But there is real substance here and the openended debate approach could be argued to be less arrogant than BP’s ‘beyond petroleum’ positioning. This campaign is thoughtful, it has serious contributions from academic and other sources and it doesn’t shirk some of the difficult points. A good reference point for any company seeking to engage in a debate rather than just pontificate.

continued >

Directions Monthly May 2007

Issue 12

An overview from salterbaxter continued

4 GE

6 HSBC

GE ecomagination (www.ge.com/ecomagination)

HSBC Green Sale

This was a special campaign run from December 2006 to January 2007 featuring a green paw print and explaining that for every product bought through the green sale a sum of money would be From water desalination to energy efficient donated to nominated charities. I was lighting GE is now pouring millions of rather surprised by this campaign as HSBC dollars into new products that help to have taken a generally sensible position in tackle environmental/sustainability issues. the CR debate. So this is grounded in real change and is possibly the most impressive commercial As far as I can see, this campaign is just response from any major industrial opportunistic – a poor attempt to sell more company to this issue. There is obviously products on the back of donations to huge financial potential in getting this charity. This isn’t innovative and I’d be very right too, so the advertising is crucial. surprised if it worked (happy to be told otherwise though). Surely most people just And the campaign doesn’t disappoint. see through this type of approach. There are numerous different ads and they all paint an exciting picture of how The campaign was also confusing as it technology can be applied to solve some didn’t really make clear which products big environmental challenges. There’s a it related to anyway. real spirit of adventure to the campaign and it shows that green issues and All in all I think this is pretty disappointing technology don’t have to be boring. and it certainly doesn’t communicate a clear-sighted, planned strategy from the This is again a perfect example of a bank. Surprising, as much of the work company working on the CR opportunity, they’ve done in the CR field is based on bringing commercial thinking to bear on good substance. some serious CR issues. I was just slightly concerned that some of the reality of what was being done wasn’t matching the hype – but I don’t want to be too cynical. This is firmly rooted in business strategy and is a powerful commercial proposition. Diesel Climate change ready (www.diesel.com/#/globalwarming) I’d also like to make a special mention of the new Diesel ‘Climate change ready’ campaign. Featuring it’s range of skimpy and cut back summer clothing this campaign Ford Escape Hybrid should stand as the best reminder to all of (www.ford.com) us not to take ourselves seriously – and A US ad for the hybrid mini 4x4. I don’t that irony and humour are rarely out of want to pick on the car industry but this is place. Top marks. an appalling example of some green gloss being applied. Yes the car is more fuel efficient but the ad actually features Kermit the frog (for no other reason than he’s green) and then at the end of the ad the blue Ford logo turns green before your eyes! To my mind this ad actually does a complete disservice to the technology that’s been applied to the car. This is almost a caricature of the stereotyped view of environmental issues – unless it’s being ironic? Possibly the best example I’ve seen of how not to address the CR/environmental agenda in marketing. GE made a big noise about its investment into R&D for green technologies and this is the campaign that backs it all up.

7 Diesel

5 Ford

So where’s this all taking us? Things appear to be moving very fast. I think that even 12 months ago the picture for this testing of the temperature would have given a remarkably cold reading. But there is no doubt that the full range of social and environmental issues are now factored into mainstream advertising and brand campaigns – and increasingly as the fundamental strategy. The Diesel campaign also shows it’s already being parodied, a sure sign it’s in the mainstream. The big public issue of our times is climate change and this will undoubtedly register as a big area of focus in the coming years. But does this usher in an era where companies will be competing on climate friendly credentials? I think it probably does. There appears to be a genuine transformation of the landscape taking place. The key in all this though is that consumers will see through the companies that are simply applying a light green wash to help re-package existing products. The test is whether or not the product is being dressed up or whether the approach has deeper strategic roots. Dove’s approach was a full re-appraisal and re-definition of the brand’s proposition. HSBC’s green sale was just opportunistic. I think responsible and ethical credentials are becoming the most important brand battleground for the coming years. But responsibility is becoming an essential though not sufficient ingredient for a successful brand. Innovators will see this and really get to grips with the massive opportunity presented. The followers will be found out. Miss out on this transformation, underestimate it or get it wrong at your peril.

Directions Monthly May 2007

Issue 12

The view from the practitioner…

We’re working on more and more CR campaigns with our clients and CR is definitely moving from corporate affairs silo to mainstream consumer and marketing priority. We’ve been working on CR programmes with our clients for several years now. It’s not a new phenomenon. Responsibility goes right to the heart of brand strategy and recognises the crucial role of business in making a difference in society. The ‘win-win’ is mutual and multiple.

Cilla Snowball Chairman, AMV.BBDO

Case study 1

Sainsbury’s Active Kids

Consumers are driving this and increasingly making ethical considerations in buying decisions. And they do so with conviction and enthusiasm – worthwhile doesn’t have to be worthy. Active Kids for Sainsbury’s shows what can happen when an organisation gives its thousands of colleagues and millions of customers the tools to make the difference. It is fun, worthwhile and it works at an individual and brand level, in schools and in the business. The Diageo Responsible Drinking initiative, whilst different in tone and message also recognises a commitment and ambition to address a major societal issue with compelling and relevant communication. We’re working on more and more CR campaigns with our clients and CR is definitely moving from corporate affairs silo to mainstream consumer and marketing priority.

We are a society obsessed by the food we eat and the health consequences of the wrong decisions. Many brands have been caught in the storm around unhealthy food and its particular consequences for our children. Media coverage is overwhelmingly about unhealthy food, but research showed that people were consuming fewer calories than in the past – the issue was they were exercising much less. Sainsbury’s believed that to compete in the future, retailers would have to get serious about health by focusing both on food and activity. A great cause-related idea would have two elements: 1 a scheme with genuine benefits to the cause; and 2 the involvement of Sainsbury’s shoppers to enable Sainsbury’s both to fund and profit from the scheme (a genuine win-win). We created a scheme dedicated to the cause of kids activity (not just sport), administered through schools – Sainsbury’s Active Kids. The more you spent in-store, the more vouchers you got. Customers decided which schools receive vouchers and hence which benefit most. Schools decided what to spend the vouchers on, ‘buying’ goods from a catalogue administered by a third party supplier.

continued >

Directions Monthly May 2007

Sainsbury’s Active Kids continued Each Sainsbury’s store had an Active Kids ‘champion’ – a colleague responsible for co-ordinating store activities, and reaching out into the community served by the store and working with local schools. Active Kids was communicated to Sainsbury’s customers in advertising and communication featuring Kelly Holmes. Active Kids was at the centre of the Sainsbury’s brand during the campaign period, advertised on TV and promoted in-store. Success for the cause 80% of UK schools are registered and 27,000 schools have placed 31,000 orders for equipment from the Active Kids catalogue. Active Kids has increased activity rates in schools, not only in primary schools, but also in the much tougher secondary school environment. Teachers have reported improvements in both these areas. 56% of primary school teachers and 34% of secondary school teachers report that kids have become more positive about physical activity. 64% of primary school teachers and 39% of secondary school teachers report that kids have become more interested in healthy eating as a result of the scheme. The simplest effect of the scheme has been to make physical activity more enjoyable for kids – 71% of primary school teachers report that this has been the case (it’s a tougher task in secondary schools, but 46% of teachers there report improvements).

Issue 12

Success for the business The scheme has generated an increase in fruit and veg sales, up 10% during the weeks of the campaign in response to the double points offer on these items. This was a unique part of the Sainsbury’s scheme and reflected a balanced commitment to healthy food and activity in tandem. The more Sainsbury’s customers have spent, the more vouchers they have been able to donate to local schools, building strong links between the store and the community. In 2007, the scheme will develop further, with the Active Kids catalogue available to Scout and Guide groups and now including cooking equipment to help promote the education of healthy eating. The long-term implications of Sainsbury’s involvement could be dramatic. Active Kids could be seen in the future as a turning point in the health of Britain’s kids as the creativity and scale of Sainsbury’s were applied to the problem to the mutual benefit of brand, business and cause.

64% of primary school teachers and 39% of secondary school teachers report that kids have become more interested in healthy eating as a result of the scheme.

Directions Monthly May 2007

Issue 12

Case study 2

Diageo Responsible Drinking The ambition: Treated responsibly, alcohol is associated with enjoyment and celebration, but it is common knowledge that excessive or inappropriate consumption can cause health and social problems for individuals and society. As the world’s leading premium drinks business, Diageo wants to be at the forefront of industry efforts to promote responsible drinking. Their approach is based on the following key principles:

• set world-class standards for responsible marketing and innovation • combat alcohol misuse, working with others on initiatives to reduce alcoholrelated harm • seek to promote a shared understanding of what it means to drink responsibly. AMV.BBDO work with Diageo to deliver integrated pan-European communication campaigns to fulfil the last of these principles.

The evaluation also demonstrated that consumers are eager for the drinks industry to play a role in promoting responsible drinking.

The idea ‘Mirror’ shows a young woman observing herself at a house party. At first she is having fun, but then she becomes ashamed by her behaviour, this is completed with the strapline ‘Make sure you like what you see’. A male execution ‘Many Me’ was also developed by the Irish agency Language. The two adverts were designed to reflect alcohol consumption both in the on and off trade.

The work ran as a pilot test in London, Manchester and Nottingham last year for two months and is planned to run throughout the UK from 1 May 2007 on terrestrial and satellite channels. Work that works Evaluation of the 2006 pilot revealed that communicating responsible drinking messages through advertising can be an effective way of raising awareness and changing individuals’ attitudes to alcohol consumption. The evaluation found that after watching the two executions:

• 57% of people said they would

reconsider how they drink as a result of the campaign • 75% said the campaign made them question their drinking habits • 93% thought it was important to consume alcohol beverages within sensible limits. The adverts have been recognised across the industry for their role in promoting responsible drinking, with ‘Mirror’ being awarded the 2006 Drinks Business Award for Responsible Drinking Message. The evaluation also demonstrated that consumers are eager for the drinks industry to play a role in promoting responsible drinking – in fact 92% of people surveyed thought it was good to see an alcohol beverage company advertising responsible drinking messages.

ABOUT US SALTERBAXTER ADVISE COMPANIES ON STRATEGY, BRANDING, CORPORATE COMMUNICATIONS AND DESIGN. Our clients are extremely varied and include FTSE 100 companies; some of the world’s most exclusive brands; independent, entrepreneurial businesses; world leading educational establishments; law firms; private equity firms and media companies. We name companies, re-invent companies, and re-position companies. We help companies communicate with shareholders and advise them on how to address corporate responsibility. We launch, brand and re-brand. A key area of our expertise is corporate reporting and we advise leading UK and European organisations on strategy and design for their financial and CR communications programmes. We currently work with 12 of the UK FTSE 100. Our offer to clients is a balance of genuine expertise in reporting and CR issues with a commitment to producing outstanding creative design. This has been recognised with our work receiving numerous awards including the ACCA award for innovation in sustainability reporting for our work with O2.

Contact: Nigel Salter [email protected] Tel: +44 (0)20 7229 5720

Lucie Harrild [email protected] Tel: +44 (0)20 7229 5720

Directions Monthly supplements our main Directions report. This report is published each year and is now regarded as the UK’s most comprehensive analysis of the trends and issues in CR communications. If you want a copy of the full Directions Annual Survey and Report, call us on the number below or email [email protected]

202 Kensington Church Street London W8 4DP

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