BZZZZ – THE BUZZ ABOUT SUSTAINABILITY

Marketers’ Views Remain Bright on the Topic of Sustainability, Despite Gloomy Economy
April 2009 (American marketing Association and Fleishman-Hillard, Inc.)

SUMMARY
The power of the newest media buzzword literally makes marketing people happy.

A survey of people in marketing and public relations jobs found them optimistic about the future of “organizational sustainability” and “sustainable development.”

The American Marketing Association and Fleishman-Hillard collaborated on the survey. It sought a better understanding of: (1) Current perceptions in the marketing and PR world about sustainability; (2) the potential for investment in sustainability and sustainable business practices; (2) the organizational and business forces driving the adoption of sustainability practices; and, (4) short- and long-term payback potential for sustainable business initiatives.

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53% of the “communicators” (marketing and PR people who took the survey) define sustainability as the need to balance financial, human and natural resources for the long-term benefit of business and communities. The other people who answered questions about sustainability define it as environmental protection (23%), cutting emissions and fighting climate change (7%), increased Energy Efficiency (10%) or New Energy development (3%). 5% chose "none of the above."

Survey numbers come from a web-based questionnaire. They were collected from January 14 to February 19, 2009, from 270 respondents in marketing, public relations, advertising, sales, operations and administrative positions. 20% of the respondents were in marketing and communications businesses. The others were from a wide variety of other sectors. 28% were from big companies (1,000+ employees), 41% were from mid-seized companies (20-to-999 employees), and 31% were from small companies (less than 20 people).

Almost two-thirds of the respondents believe the Obama presidency will drive rising concerns with sustainability.

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COMMENTARY
The survey results indicate marketers and PR people take a long-term view on the topics and expect investments in organizational sustainability to pay off beyond the 2009-10 tipping point period.

Tipping point was last year’s buzzword.

Some of the survey highlights:

58% of the “communicators” say their organizations will maintain or increase involvement in sustainability in the next 12 months. 43% expect investment and increased marketing of sustainability. 20% say their organizations have already put “considerable efforts and resources” into sustainable development.

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73% believe corporate reputation will drive sustainability. 69% believe corporate culture will drive sustainability. 71% believe technological advancements will be the driver. 60% think marketing considerations encourage sustainability practices.

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43% say their companies will increase focus on sustainability. They have a variety of reasons, ranging from "because it is the right thing to do" to "because customers ask for it" to "because it supports what the organization is about." As would be expected from a business-oriented group, "because it gives the organization a clear, distinct business advantage” also seems like a good reason to move to sustainability.

Only 22% feel that their organizations have put considerable efforts and resources into sustainability issues in the past.

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63% believe the Obama administration’s policies will accelerate the emphasis on sustainability but only 40% believe consumers will pay more for sustainable products while the recession goes on.

49% do not think the development of sustainability practices and programs will accelerate in the present down economy. Almost the same number, 50%, said “economic realities” encourage sustainability practices while only 29% said “economic realities” work against sustainability.

A lot depends, apparently, on what the respondents see as "economic realities."

27% believe his or her organization intentionally keeps a low profile on sustainability efforts. "Stealth" sustainability could be a whole new marketing concept. The person in the office in charge of the program could be (que the James Bond theme music): Agent 0007 - licensed to recycle.

A majority of the respondents believe they will be doing more communication to employees and customers about sustainability. 58% say increased communication on the subject will be focused on employees and 43% say it will be directed at customers. Only 33% say there will be little or no change of emphasis.

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Bottom line: This is a market in which the media-makers are just beginning to figure out how to do business. It is rife with landmines for the pitch, like moral considerations and quickly reversing cost factors. The poll results show, however, that the "communicators" on the firing line see exciting potential.

QUOTES
- From a Fleishman-Hillard summary of its survey: “When it comes to new and potentially expanded opportunities for sustainable development, communicators — primarily those who hold marketing or public relations jobs – remain optimistic for the future. This optimism is a welcome bright spot in a time of increasing global economic uncertainty and rising climate crisis.”
- From a Fleishman-Hillard summary of its survey: “Marketers and communicators believe that their organizations’ commitments to sustainability are important not only to support the dynamic function of the natural world in positive ways, but also to create business success through increased cost and production efficiencies, enhanced brand image and relationships with stakeholders and competitive differentiation.”