AMERICA’S KIDS NEED MORE PIE

World military expenditure in 2005 increased to $1,001 billion and the US is responsible for 80 percent of that increase. While America is first in nuclear defense capabilities and expenditures among industrialized countries to the tune of $30 billion annually, it is shocking that America’s kids are so woefully neglected.
The stark realities…..

Top Left: Government Pie Chart (Office of Management and Budget)

• 18 percent of all children (ages 0-17) live in poverty
• 9.3 million children are without health insurance
• A child dies before his or her first birthday every 19 minutes
• A child or teen is killed by gunfire every 3 hours

For more than 10 years, lawmakers mainly focused on sweeping welfare changes passed in 1996 that imposed time limits and strict work requirements on welfare recipients. This did not bode well for our poor children, despite President Bush’s proposal to continue childcare support at $4.8 billion per year, as part of his Welfare Reform.

In addition to the humanitarian aspects, there is also an economic case for reducing childhood poverty and it's impact on the US economy.

Children who grow up poor in the United States cost the economy $500 billion a year because they are less productive, earn less money, commit more crimes and have more health-related expenses.

Yet, according to experts, as much as $13 billion could be cut from U.S. nuclear spending without compromising our national security and strong position.

Can we please give our children a bigger slice of the American Federal budget pie?

There are several initiatives that need further funding and support to benefit our future generations. To name a few:

• Child care assistance to low-income families
• Health insurance
• Community and housing mobilization
• Expand the earned income tax credit and child tax credit
• Higher minimum wages
• Pre-kindergarten programs, elementary and secondary reforms

Let’s do right for America’s kids and society at large.

Stats Source: Children’s Defense Fund. ChildStats.gov. Washington Post Graphic.

GIVE THE CMO A BREAK

A recent Ad Age article (Blame CMO Turnover on Metrics Mania) states that CMOs are facing ‘Death by Data’ due an extreme focus on metrics getting in the way of creativity and innovation which is required to maintain competitive edge.

The headlines continue to be dominated with news, ad nauseum, about abrupt CMO departures, shortening tenures, turnovers galore and now re-defining the CMO role altogether.

A study conducted by the CMO Council, confirms a perception versus reality gap exists between the expectations that CEOs have of CMOs and actual performance.

While the good news is that CEOs still consider marketing to be a critical part of corporate strategy, two-thirds of CEOs say their top marketers don’t provide enough evidence about true performance and ROI.

Hmmm…did the CMO ever receive clarity about ‘true performance’ goals and ROI?

Today’s CMOs have a lot on their plate in our low trust environment.

Aside from presenting the numbers, they may be handling questionable ethics and business operations, brand reputation, keeping up with ‘Word-of-Mouth’ marketing and social networking, online commerce, maintaining a competitive edge, producing the next product and so on - all under the direction of a CEO who might be expecting too much and would rather keep the door closed.

Perhaps it is time for the CEO and the board to re-define their views and expectations of the CMO - fix the CMOs bruised Achilles heel.

With the Apple’s of this world leading the path of innovation, isn’t their enough to focus on and stay ahead?

After all, isn’t the CMO fundamental objective to market and sell more products/services? A few suggestions to help our CEOs and CMOs:

Functional Organization: Boards should stop creating CMO positions for the wrong reasons such as having them fix a fledging marketing organization or be a scapegoat for the reputation impaired. A Chief Ethics/Compliance Officer could be appropriate for fixing these issues and a good bridge for the CEO and CMO.

Open the Corner Office Door: Establish a better and regular dialogue between the CEO and CMO about marketing objectives, performance expectations and ROI tracking.

Focus: The customer is still king. As President and Founder of The CMO Club, Pete Krainik, recently commented, 'overcome the fact that in most companies the marketing group is not close enough to the product/service, nor close enough to the customer.' Know the product well, poll and take customer opinions seriously.

Social Responsibility: More than two-thirds of Americans say they consider a company’s business practices when deciding what to buy, according to a 2007 Cone Cause Evolution Study, and want their employers to support a social cause. Embrace the firm’s social and environmental purpose activities and integrate them holistically with business and marketing practices - top to bottom.

Stakeholder Liaisons: With customers and employees keeping track of their favorite companies and products, be sure to consistently communicate and demonstrate the value proposition.

CMOs live long and prosper.

LESS LIP SERVICE FOR AFRICA IN NEED

We have all witnessed the buzz of media and celebrity-driven attention about the African continent in the context of lost hope, opportunity and social responsibility voyages. Vanity Fair’s July issue on Africa includes a plethora of celebrity cover photos (21) and profile interviews such as Brad Pitt with Desmond Tutu. Movies like The Last King of Scotland, Tsotsi and Hotel Rwanda demonstrate the harsh realities of African politics and suffering.

However, not enough is being done to address the issues facing Africans.

Some celebrity efforts are to be commended such as Oprah Winfrey opening a girl’s school in South Africa, and Madonna’s non-profit Raising Malawi.

While it is all well and good that celebrities have done a good job calling attention to Africa and creating individual social responsibility models, corporations should do the same.

I spent an impressionable childhood in Kenya. Aside from the beauty, people and wildlife, I witnessed the slums, poverty and under-nourished infants. Africa wasn’t on the map when I came to America 18 years ago. Top line Kenyan issues include a corrupt government and the demand for ivory diminishing what was once a healthy elephant population. Mr. Wainaina’s individual tale – ‘Generation Kenya’ http://www.vanityfair.com/ - illustrates Kenya’s rocky road.

Americans’ are increasingly traveling to Africa on safari, have life changing experiences and are in awe of it's beauty.

Today, many corporations are eyeing the continents resources - or - already have business interests – including operations, customers and employees. We need to better educate the public about the realities and opportunities of Africa. Also, enlist help to mitigate the extreme poverty, disease, threats to wildlife and tourism, and infant mortality.

Corporations, aside from donating funds, have the resources, on-site support, products and services to support programs on a fundamental level. These include providing shelter and care to orphans, saving newborn lives, education, drinking water, medical supplies, job creation and transportation.

It is timely for corporations to add Africa to the CSR agenda, engage stakeholders, and align with their cause-related marketing programs. Following are some top line realities about these issues and suggested organizations to support:

HIV/Aids, TB and Malaria: There are 25.8 million HIV/Aids sufferers in Africa and 8,000 people die every day - http://www.businessfightsaids.org/

Poverty: More than 70 percent of the continent’s poor people live in rural areas and depend on agriculture for food and livelihood. In Sub-Saharan Africa, more than 218 million people live in extreme poverty -http://www.irr.org/

Education: Ten African countries report adult literacy rates of less than 30%. In America, the adult literacy rate is 99% - http://www.oprahsangelnetwork.org/

Infant Mortality: Twenty-two African countries have infant mortality rates higher than 100 per 1,000 live births - http://www.savethechildren.org/

Wildlife: In 2006, as a result of poaching and mass slaughter in the 1980s, there are only 30,000 elephants in Kenya, down from 70,000 in the 60s - http://www.savetheelephants.com/

Corporations need to realize the longer term benefits helping combat a continent in suffering, supporting timely causes in countries where they operate, as well as ultimately protecting their business interests.

SWEATING IT OUT ‘IN THE TRENCHES’ WITH BROADWAY THEATRE PROJECT

I'm preparing for my yearly pilgrimage to help out with BTP’s musical theatre arts education program in Florida on July 8. This year, more than 200 talented students from 28 states, as well as Canada, England and American Samoa will be attending an intensive curriculum to properly prepare them for a professional career in the performing arts. Special guests and workshops this year include:

"Moving Story" - by Christopher D’Amboise. A contemporary method of theatrical storytelling combining music, song, text and dance. Apprentices will work to develop a section from a new musical and perform an informal presentation.

"Alice"- by Frank Wildhorn. Frank has created a new show inspired by the classic tale of Alice in Wonderland. Apprentices will work with Mr. Wildhorn and BTP founder Debra McWaters, on creating the main characters in innovative and modern ways. Brandi Burkhardt will play the title role in the workshop. Pieces created from the workshop will be presented in the final BTP performance at the Tampa Bay Performing Arts Center on July 28.

Founded in 1991, Broadway Theatre Project is the world’s most prestigious musical theatre arts education program for high school and college students. Under the artistic direction of Debra McWaters, students attend an intensive three-week training program focused on the key disciplines of musical theatre arts including acting, dancing, and singing, as well as the critical life skills necessary to work in the professional world of entertainment. For more information – http://www.broadwaytheatreproject.com/.

THE GALICIA JEWISH MUSEUM: A CSR OPPORTUNITY IN A DYNAMIC INVESTMENT ENVIRONMENT

Most tourists visiting Southern Poland frequently seek out the remnants of Jewish life at the former camps of Plaszow and Auschwitz. However, one of Krakow's best kept secrets is the Galicia Jewish Museum, founded by British photojournalist Chris Schwarz in 2004. Housed in an old furniture factory, the Museum celebrates the renaissance of Jewish culture in Galicia.

The Museum’s arrival is in step with Poland’s rapid ascent as a prime target of foreign investment in Europe. With a highly educated workforce, the nation’s business capacities have developed at a sure and steady pace since it was accepted into the EEC. Poland is the largest of the new EU member states, with important labor resources, significant scientific and industrial potential, and a 38-million consumer market. According to one recent study, the country will become the manufacturing hub of Eastern Europe in the next decade and is set to join the Euro in 2008.

This economic blossoming is providing impetus to numerous cultural endeavors in many Polish cities. Krakow is no exception and has an important commercial history sustained by eminent groups of Jewish entrepreneurs, bankers, industrialists, and merchants since the 12th century.

Their legacy is evident in the Galicia Jewish Museum whose mission is to commemorate Polish Jewry from a completely new perspective, other than the Holocaust. The Museum also provides a forum for multi-cultural dialogue and for the dissemination of exhibitions and publications to audiences, both Jewish and non-Jewish, around the world.
The Galicia Jewish Museum’s address is: 18, Dajwor Street, Krakow 31-052, POLAND.
Link: www.galiciajewishmuseum.org

Posted by Anna Ray-Jones, VP, Donley Communications Corp. Anna is also a published author and writes frequently on arts and culture.

HIV/AIDS, Tuberculosis and Malaria Program Advancements – Company Awards Gala

On June 13, the Global Business Coalition (GBC) gave awards to eight companies. Abbott won the 'national action' award for it's partnership with the Government of Tanzania improving the country's health system to advance HIV testing and treatment. The company recently lowered the price on the key AIDS drug Kaletra by 55 percent in low- and mid- income countries.

The GBC also acknowledged several companies, including Dole for it's Stanfilco subsidiary work in the Philippines. The company trained a thousand people to implement the Tuberculosis Directly Observed Treatment Short-course (TB-DOTS), a program that calls for making complete and quality anti-TB drugs available (among other elements.)

For more information and to become involved – http://www.businessfightsaids.org/.

Conservancy Spotlight - Brooklyn Bridge Transformation

Visitors’ and jaded Manhattan residents are flocking to Brooklyn, drawn by the variety of neighborhoods, up-market stores, utilitarian streetscapes, renovated factories and buildings. Often considered the step child to Manhattan, Brooklyn is one of New York’s newer destination spots.

The Brooklyn Bridge Park area is about to undergo one of the most significant developments since Prospect Park was built 135 years ago, due to the Empire State Development Corporation's unanimous approval of the Park's General Project Plan and Environmental Impact Statement, paving the way for construction this year.

The 85-acre park, stretching 1.3 miles along the East River from north of the Manhattan Bridge to Atlantic Avenue, will be transformed into a public space including lawns, recreation, beaches, coves, restored habitats, playgrounds and landscaped areas.

The Brooklyn Bridge Park Conservancy annual benefit is on Thursday, June 7 - Sunset Splash. Information and tickets - http://www.brooklynbridgepark.org/.

Protect thy Land, Protect thy Rights

In keeping with Aveda’s commitment to environmentally and socially responsible business practices, the company is pioneering the way - on what is often overlooked or taken for granted – protecting the land rights and natural resources of the local indigenous peoples. This is termed - Indigenous Entrepreneurship.

Indigenous representation at the UN event on May 23, ‘A Dialogue for the Future,’ included the environmental, economic and social interests of the Brazilian rainforest, the aboriginal peoples of Western Australia, family coffee growers in Mexico and the Maasai Shompole from Kenya.

David Hircock, advisor to Aveda’s President, is deeply ‘in the trenches’ with their indigenous partners, around the world, working on equitable trade and conservation, guiding the company’s use and integrity of ingredients. Through his work, he has facilitated preservation and access to natural resources of over one million hectares of land, among other things. Initiatives underway include:

• In Brazil, the Yawanawa tribe began efforts to protect 125,000 acres of rainforest land from loggers.
• In Australia, the aboriginal peoples have gained land rights and access to natural sandalwood resources enabling them to increase earnings seven-fold.

While progress is being made, there are still diverse issues facing these indigenous entrepreneurs as they tackle opportunities and challenges partnering with corporations, donors, lending institutions and business development agencies. These include access to markets, funding, education, business acumen, political, legal and social issues.

Concluding the panel discussion, President of Aveda, Dominique Conseil, provided the following comments:

• Doing good for community should be a key part of business purpose.
• Need for greater collaborative effort to help reduce poverty, eliminate infant mortality, have access to education, healthcare and food.
• Communities that bring people together will enable a healthier living environment and ultimately gain economic benefit.
• This is not, nor ever should be, a commodity-driven business and requires a selective strategy, supported by selective investment.
• Social disintegration doesn’t need big business approach and needs value-based partnerships.

Time for business leaders to embrace their indigenous wisdom. There is a lot more work to be done ‘in the trenches’ conducting their business operations in a socially and environmentally conscious manner.

And, as for those Maasai, allow me a childhood memory indulgence that is well deserving of a separate blog - to follow shortly.

UN Permanent Forum - Indigenous Entrepreneurship

Aveda and its Partners Discuss the Opportunities and Challenges - A DIALOGUE FOR THE FUTURE

The open forum held at the United Nations Headquarters, on May 23, spotlights the development of five indigenous business projects, focusing on land rights and natural resources in partnership with international businesses and non-governmental organizations (NGO’s). Speakers will present challenges and opportunities in these partnerships, and explore new paths to sustainable development that respect land rights and natural resources as the key to the survival of indigenous peoples. Panelists include: Dominique Conseil, president of Aveda, Veneranda Xochitl Juarez-Varela from Café La Selva, Mexico, Manuel Quezada IX from Community Tours Sian Ka’an, Mexico, Ole Petenya Y. Shani from the Shompole Community Trust in Kenya, Dr. Richard Walley of the Nyoongar people in Australia and Tashka Yawanawá, Chief of the Yawanawa tribe in Brazil. This event is an opportunity to celebrate the accomplishments of three communities recognized by the Equator Prize: Café La Selva, Community Tours Sian Ka'an from Mexico, and the Shompole Community Trust from Kenya.
Info - http://www.csrwire.com/News/8615.html.

Reputation Dynamics will report back on this event and learning's about sustainable development.

It’s not all about the PR – CRO Conference

Kudos to Jay Whitehead and The CRO team for rallying up the diverse panelists, attendees and topics at last Thursday’s corporate responsibility conference. No wonder Jay’s impressive moderation stamina is attributed to running marathons. Focus is the name of the game, after all.

Notable company CSR initiatives and discussion topics included reducing water, waste and energy consumption, philanthropic and community support, health and safety, labor practices and Sarbanes Oxley compliance.

‘Slay False Gods’ could not have been a more appropriate term stated by Douglas Baker, CEO & Chairman of Ecolab. The major takeaways of the day were all about stepping out from under the veil, getting real about the issues and sustainability.

It goes without saying that CEO’s of companies need to make profit and justifying the business reasons for CSR still remains a challenge for some. CSR should be considered a long-term solution, rather than a short term gain – still the current mindset. However, companies are making major strides towards changes in business operations and transparency - and rightly view this as an ongoing ‘improvement’ process.

Following is some ‘food for thought’, as companies continue to evolve in this new management paradigm:

Call for greater leadership: CSR programs need to be endorsed at the top, as a key part of the corporate agenda, and then infused throughout the organization - business, marketing and communications. How else can we rally the troops?

Stakeholder liaisons: Harness the power of key stakeholders and communicate with them regularly. Solicit the knowledge and opinions of customers. It is also a powerful tool to track and influence patterns of behaviour.

Sustainability: Adopt business practices and create programs that are for the long term. To coin the old phrase – ‘Rome was not built overnight.’

Company culture and values: Conduct a cultural assessment of employees and poll them about social causes of most concern to them. Then, include them in initiatives as a motivational incentive. Several companies have demonstrated improved employee performance and satisfaction.

The PR machine: Stakeholders want the facts and PR should be engaged at the right stage of CSR program evolution. Also, ensure authentic positioning, messaging and proof points. It is a vital component of risk mitigation and will enhance recognition and acknowledgement for a company really 'Doing Good in Society.'

Board's Eye View of CSR

Practitioners, thought leaders, and companies from CRO magazine's '100 Best Corporate Citizens' will be convening at the Marriott Financial Center in New York on May 10 for CRO's Spring Conference. The focus will be on successful corporate social responsibility strategies for protecting and growing companies.

Keynote speakers include Tim Solso, CEO and Chairman of Cummins and Douglas Baker, Jr., CEO and Chairman of Ecolab.

Research conducted by the Social Investment Research Analyst Network (SIRAN) and KLD Research & Analytics, Inc. (KLD) on environmental and social performance reporting of US companies, recently reported that nearly half (49) of US companies in the Standard & Poors (S&P) are now disclosing information about their environmental, social and governance (ESG) performance. That is a 14% increase of S&P 100 companies issuing reports over the previous year's study.

Another milestone reached in the evolution of this new management paradigm as companies respond to the widespread demand for greater transparency.

Myself and fellow trustmeister Jarvis Cromwell will be attending and report back on developments, case studies and trends. So, stay tuned for a candid take....

For more information on the conference agenda -- www.thecro.com/conferences.

Not-for-Profit Spotlight - Broadway Theatre Project

Broadway Theatre Project, founded in 1991, is a musical theatre arts education program for high school and college students. Each year BTP, under the artistic direction of Debra McWaters, selects 180 aspiring young actors, dancers and singers by audition, from around the world, to attend an intensive three-week program every July at the University of South Florida. Master classes have been taught by stars such as Julie Andrews, Ben Vereen, Jeff Goldblum, and Patrick Wilson among others. For further information and sponsorship of this years program go to www.broadwaytheatreproject.com.

Just do it

I spoke last week with a senior ad executive who told me that her company had won a substantial global piece of business because they had been able to provide – on request - an existing CSR presentation that addressed all aspects of their business and client relationships. None of their competitors had established a CSR point of view. Their big thinking had paid off handsomely with a relatively small amount of effort.

I suggest that all new business and client relationships should by default include an understanding of the CSR positions of both sides. And all corporate departmental planning and budgeting should be required to include a CSR component. This can start small – it needn’t be hard. As Sam says it can take its cue from shareholders and employees – this has the potential for dramatically improving those bonds of loyalty. Weave it into the existing systems of a business and it will become engrained. It will make managers and buyers feel good and it will make them think anew about their company’s position in the larger world.

The upside is huge for corporations and for the world.

Michael Pollock
President, The Cyrano Project (www.cyranoproject.org)

Navigating the 'CSR Buzz' for Reputation Advantage

Advancing society's interests is influencing investment decisions globally due to the increasing power of consumers and employees advocating for their favorite brands to be more transparent and accountable for their business operations.

Against the backdrop of our lowest trust environment ever, caused by a polarized political climate, disturbing world events, untrustworthy social and business practices, companies are being further impacted in an already challenging operating environment - creating a 'show and prove it' to me marketplace among key stakeholders.

In fact, according to research conducted by Gallup International, 62% of people around the world do not trust large national or global companies to operate in society's interest.

As a result, CEO's and their management teams are being increasingly bombarded with multiple issues that need to be addressed such as compliance, governance, environmental responsibility, diversity, responsibility-driven marketing, as well as accountability for their charitable contributions. All in conjunction with providing healthier returns for investors.

With e-marketing and 'Word-of-Mouth' marketing further driving stakeholder empowerment and demand for greater transparency, companies need to engage with their social purpose as both a necessity and business opportunity.

'Conscious Commerce,' now a $31.7 billion services market, is the evolution of a management paradigm for CEO's and their management teams to help safeguard a company's reputation and business operations. Also, it is a vital extension to the corporate agenda.

Early adopters such as Patagonia and Microsoft, who created and implemented sustaining programs, have enjoyed positive results and well deserved acknowledgement. While other companies have been quick to postpone costs and and/or are flocking to the cause with fragmented approaches that can lead to consequences down the road.

From the outset, it is critical to identify and prioritize social issues that matter the most to stakeholders. Then, properly align them with a company's reputation management and performance.

Companies that implement sustaining, long-term programs will mitigate reputation risk and harm to its business, people and the environment. Also, they will win back stakeholder trust and loyalty, boost performance and competitive edge.