Companies: simply being nice isn’t enough anymore.
Learnings from Sustainable Brands Madrid, 2018.
If businesses are going to help make the world a more equitable and environmentally considerate place for everyone, they need to be purpose-driven. It’s no longer enough for a company to just say what it does, it needs to say why it exists — and do it authentically.
This was the sentiment expressed over two days of talks from international businesses, local entrepreneurs, and academic experts at Sustainable Brands Madrid 2018. Every single person on that stage was an advocate for sustainability and many of them represented companies who consider themselves to be activists for change. The stories they shared were diverse, but each one was unified by their aim to inspire businesses to do better by providing their customers with planet-friendly goods and services.
Why, not what.
Take for example Antonio Espinosa, co-founder and CEO of Auara, a Social Enterprise born in Madrid. He sells water so he can fund projects that improve people’s access to clean water in Uganda.
Or Ynzo van Zanten, who makes and sells his own chocolate because he wants to inspire the entire chocolate industry to produce slavery-free chocolate.
But it’s not just small artisanal companies standing up for change. Big companies like IKEA, TOMS, and Patagonia are too. Joanna Yarrow, Head of Sustainable and Healthy Living, IKEA Group told us how IKEA is using design to create ‘circular’ products that are either made of recycled materials, or can be recycled into new products at the end of their life.
Lisa Hogg, Marketing Director for TOMS, told us how they have given away the equivalent of 86 million pairs of shoes via their local partners. Designed with weather and school uniforms in mind, these shoes ensure children in India aren’t excluded from school by strict uniform rules, and help children walk safely during the rainy seasons in Central America and Southeast Asia.
Lisa Pike Sheehy, VP of Environmental Activism for Patagonia explained how grassroots activism had sparked a 30-year commitment to local environmental activism that’s bold enough to sue the US President, and empowers its own employees to decide how grants are awarded.
Information is power.
Vizzuality was founded by two people who wanted to wake up everyday and know their work is empowering people to make positive changes. That’s why we create tools that make information accessible to everyone — so they have the knowledge they need to make choices that are good for our planet. Sergio, our co-founder and Chief Design Officer, used his moment on the stage at Sustainable Brands Madrid to demonstrate some of these tools.
Think in a new way.
Philip Kotler, Professor of International Marketing at Northwestern University, who joined the conference via videolink shared his opinion that companies need to be activists, and choose what kind of activism they want to pursue. For him, it’s no longer enough to simply be a nice company. Businesses can be an engine for creating a better life for everyone and it’s time they stepped up.
But change can be hard for leaders who’ve spent 30 years climbing the career ladder, and this was acknowledged by Sue Garrad and Charles Wookey from Blueprint for Business. To reform a system from within you have to change an entire way of thinking and do it in a way that is measurable and takes account of all stakeholders, not just the shareholders.
So what are the qualities of a business leader who can bring about change? We heard from David Grayson, author of the book All In: The Future of Business Leadership whose interviews have identified the following qualities:
- An authentic and clear company purpose
- A comprehensive plan for the entire value chain
- A culture that can last
- Collaboration
- Advocacy
Research has shown that brands who are purpose-driven are supported by consumers. Lisa Hogg from TOMS quoted a study that found 88% of Americans would buy the services of purpose-driven companies, and 85% of them would support that company in their community. However, companies also need to be authentic, because if they aren’t, people won’t believe their actions are honest.
To be authentic, business leaders have to identify which causes matter most to them, and help their employees find their purpose too. A big brand will always have its lovers and haters. It’s unavoidable. But, if a company’s purpose is based on deeply rooted principles and aims, they will have the longevity, sincerity, answers and actions they need to endure and continue inspiring change.
