Earlier this month Thomas Friedman wrote on the New York Times about two very different groups trying to shape the economic environment worldwide.
The second group was the “square people”–according to Friedman, it includes mostly young people, who are aspiring to a higher standard of living and more liberty, seeking either reform or revolution in their country (depending on their existing government) and “demanding a new social contract.”
On the same day the article was published, describing the differences between the two groups, the Shared Value Leadership Summit was convened in New York. This was an interesting coincidence, as the premise of the summit was that shared value has the power to reinvent capitalism as we know it and become the bridge connecting “Davos men” and the “square people.”
This premise came from the speakers at the summit, many of whom are no strangers to Davos, who explained why it makes so much sense to address societal needs and challenges (of the kind that gets “square people” into the squares) with a profit-driven business model.
Marshall McLuhan famously said: “There are no passengers on spaceship Earth. We are all crew.” While it can be applied to every sustainable challenge, this notion is clearly reflected in business efforts to be socially responsible when it comes to the role of consumers.
The idea was and still is that companies’ increasing efforts to make their value chain more sustainable need to be complemented by a growing consumer consciousness about sustainability that will translate to a greater support of companies that move away from ‘business as usual.’ In other words: Companies can’t do it alone. They need consumers on board.
Now, if you look at studies exploring consumer attitudes, you find that consumers indeed seem to be more conscious about sustainability and are more willing to incorporate it into their decision-making process.
For example, according to a 2013 Cone Communications study, 87 percent of consumers consider a company’s social and environmental commitment before deciding what to buy or where to shop. Another study conducted by Nielsen found that 50 percent of global consumers surveyed are willing to pay more for goods and services from companies “that have implemented programs to give back to society.”
Yet, when it comes to actual behavior, (almost) all of these good intentions disappear somehow, and sustainability or corporate responsibility doesn’t seem to make much of a difference for most consumers. Hence my question is: Why is it that whenever we find ourselves at the store or the supermarket we forget all the good intentions we had back home?
“At H&M, we have set ourselves the challenge of ultimately making fashion sustainable and sustainability fashionable. We want to help people express their personality and feel proud of what they wear. I’m very excited to see the progress we’ve made so far and how this will help us to make you an even better offer – and create a more sustainable fashion future.”
You can take this statement with a grain of salt, especially after the tragedy in Bangladesh last year and given that it comes from the CEO of one of the world’s largest fast fashion retailers. Still, I think it’s also important to read what H&M does to make fashion sustainable. But before diving into the report, I was curious to see what Persson wrote last year, in H&M’s 2012 report, which was published shortly before the Rana Plaza Factory collapse in Bangladesh. Here’s what I found there:
“At H&M, we think of sustainability as a word of action. It’s an ongoing journey full of heart, drive and passion with sincere direction, constantly pushing the boundaries. We take a long-term view of our business. Looking beyond short-term profits and investing in sustainability makes good business sense – and is quite simply the right thing to do.” – Karl-Johan Persson, CEO
Last Thursday marked the one-year anniversary of Bangladesh’s tragic Rana Plaza factory collapse, where 1,129 garment workers were killed.
“If a positive can be found, it’s that Rana Plaza has been a turning point — the 21st Century equivalent of New York’s 1911 Triangle Shirtwaist factory fire, which killed 146 but led to a unionized, safe garment industry,” Dolly Jones wrote on Vogue earlier this month.
This tragedy resulted indeed in significant steps taken by individual companies and European and American coalitions, aiming to improve the safety of the garment workers in Bangladesh and ensure clothing supply chains are more ethical and transparent.
Still, even with all of these efforts to build what H&M describes as “sustainable fashion future,” one question is still hanging out there: Can fast fashion really be sustainable?
I thought about this quote while reading a new report, “How Taxpayers Subsidize America’s Biggest Employer and Richest Family,” published on April 15 (aka Tax Day) by Americans for Tax Fairness, a coalition of progressive organizations. The report estimates that Walmart workers relying on public assistance programs due to low wages cost American taxpayers $6.2 billion a year.
Another interesting figure presented in the report was that Walmart has captured 18 percent of the SNAP (food stamps program) market. Using that figure, the authors estimate that “the company accounted for $13.5 billion out of $76 billion in food stamp sales in 2013.”
It got me thinking that if a substantial number of Walmart’s employees in the U.S. (1.3 million in total) receive food stamps, then the company actually profits twice from paying low-wages – not only does it reduce its costs, but it also increases its income by receiving food stamps from its employees shopping at Walmart.
But is this really the case? Is Walmart that far away from the vision Nick Hanauer offers in quote? And if so, what does it say about its commitment to corporate responsibility or its “responsibility to lead”?
“We can’t do without government, but we do need it to be more effective,” Jennifer Pahlka, the founder and executive director of Code for America (CfA), told the audience in her 2012 TED talk. I guess some people would disagree with the first part of her statement, but probably 99.9 percent would agree with her about the second part.
But how do you do it? Well, for some it might look like an impossible mission, but to Palhka and her small army of talented developers, designers and researchers, who serve as CfA fellows working with local governments, this is a difficult yet doable challenge. “You just have to architect the systems the right way,” explains Pahlka.
Technology is definitely key in CfA’s work helping government become more engaging, user-friendly and effective, but I believe that there’s also a secret sauce that makes it work – empathy.
A great example of how Code for America successfully converges technology and empathy is the story of Promptly, a text messaging notification system that was developed by four CfA fellows working with San Francisco’s Human Services Agency in a project funded by the Vodafone Americas Foundation.
Summer seems so far away, especially if you live in freezing New York like I do, but we’ll get there eventually, and when we do it’s always better be prepared with an air conditioner on your side.
The good news is that, as of this summer, you can have not just a regular AC, but one that “gets smarter over time, learning from users’ schedules, habits, location, weather information and past usage.” Welcome to the age of Aros!
Presented earlier this month, Aros, which is described as a “truly brilliant air conditioner” (I guess “smart” didn’t feel right in this case), is the result of an ongoing collaboration between General Electric and Quirky. What makes Aros interesting is not just the fact that it is the first “brilliant” AC and how it advances the vision of Internet of Things, but also what it means in terms of the relationships between the new collaborative, open economy and the more traditional one.
Here’s a quick question: What’s your smartphone upgrade cycle? Or in other words, what’s the frequency with which you replace your older smartphone in a newer one?
If you’re like the average American, it’s a little less than two years (22 months in 2012, according to Recon Analytics).
This aggressive upgrade cycle is no secret, and it helps the mobile industry grow and generate impressive profits. At the same time, we all know this trend is not sustainable and hurts our wallets. In addition, writes Farhad Manjoo in the New York Times: “Smartphones have crossed the threshold from amazing to boring. High-end phones seem to have hit an innovation plateau, with each new iPhone or Samsung Galaxy just incrementally better than the last.”
Given these circumstances Manjoo suggests it might not be so wild to imagine a world in which we “buy smartphones with an eye to longevity.” In this world, he writes, consumers use their smartphones for more than two years (ideally three); try to repair them instead of replacing them when possible; consider buying used phones instead of new ones; and trade their smartphones in where they’re done with them.
I like Manjoo’s vision. It’s practical and at the same time offers a real change. The only thing I would change about it is aiming somewhat higher with the upgrade cycle to at least twice what we have now – let’s say four to five years. But even without this revision, is it really possible for the mobile industry to become a (more) sustainable closed-loop system, or is it just another green fantasy?
Earlier this month, the news was filled with stories about recent studies that showed the growing, and often devastating, impacts of climate change – from an increase in malaria cases in Africa and South America to heavier losses in global crop yields to spikes in crime.
Yet, Americans don’t seem to be overly concerned. A new Gallup survey looking at the degree Americans worry about different issues found that only 24 percent of Americans worry a great deal about climate change. Fifty-one percent of them worry about it very little or not at all.
So what do you think when you read that?
I know it’s very easy to get upset about these results or wonder if this is that surprising given the American record so far on climate change, but if you leave these emotions aside for a minute you can actually find some interesting lessons in this survey that might even give us a clue about the way to change these results.
You love your cell phone and can’t spend a minute without it, right? If the answer is yes, here are three facts you should be aware of.
First, in 2012 1.6 million Americans were the victims of smartphone-related crimes. Second, one in three robberies in the U.S. include the theft of a mobile device. Third, cell phone thefts are now the single biggest source of property crime in many American cities.
Is this inevitable? Not necessarily, according to a growing number of policymakers and law enforcements officers. They believe consumers deserve better and that a “kill switch” that would make smartphones useless when stolen is the best solution to the “epidemic of violent smartphone thefts,” as New York Attorney General Eric Schneiderman calls it.
But not everyone is convinced a kill switch this is such a great idea.
Are you into food porn? Well, you don’t have to admit right here right now, but given that there are more than 175 million food hashtags ond Twitter and Instagram, there’s a good chance you’re also part of this phenomenon.
For those of you who have no idea what I’m talking about, don’t worry–we’re not talking about porn that mixes sex with food, but about people sharing online photos of meals they’re about to eat at a restaurant or homemade food, from Krispy Kreme glazed donuts to peanut butter brownie pizza.
If you want to get a better idea about this phenomenon just go to Tumblr, Instagram or Twitter and search for #foodporn. What you’ll quickly notice is that most of the #foodporn photos on the various social media channels are of food that is not exactly the healthy type and include mostly fast food and fatty, sugary food.
Now, a new website wants to change that, one photo of kale at a time.
While the eyes of most of the world are on the Sochi 2014 Winter Olympics, some places are actually more focused on their own local events.
Take for example Tallinn, Estonia, where “February and spring is the perfect time for outdoor activities…and for attending musical events and festivals all the month long at the local concert halls and venues,” as the Tallinn.ee reports.
Now, it’s true that the Olympic Games might be a little more interesting than Tallinn’s upcoming BMX contest (Feb. 22-23), but the residents of Tallinn can be proud of having at least one thing the residents of Sochi don’t have: free public transit.
On Jan. 1, 2013, Tallinn, the capital of Estonia, became the first European capital to extend free public transport to all of its 430,000 residents. One of the main drivers was mobility for all, explained Allan Alaküla, head of the Tallinn EU Office. While pensioners and youths already benefited from free public transport in Tallinn, the city wanted to make it easier for people to travel in search of work, and for low-paid workers, who might choose not to take a job that they have to travel to if the cost of transport means it is financially not worthwhile.
So, does it really work? Is making public transportation free actually increasing mobility (i.e. getting people to use it more)? While it might take some time to evaluate the economic impact of this change, a new study of three researchers from the Swedish Royal Institute of Technology provides an initial outlook into the changes in ridership following the introduction of free-fare public transport.
Last week one of the largest fast food companies decided to remove a chemical from its food after a public outcry on social media led by an influential blogger. Now, you might have heard similar stories before, but what makes this one even more interesting is the identity of the company.
This time it is none other than Subway, the restaurant chain that prides itself on providing a healthier and better alternative fast food.
Azodicarbonamide, Hari explained, is used in yoga mats, shoe rubber and synthetic leather, the World Health Organization has linked it to respiratory issues, allergies and asthma, and it is banned as a food additive in Europe and Australia. However Subway, she added, uses it in the U.S. as a bleaching agent and dough conditioner in order to produce bread faster and cheaper.
If you’re a fan, just like me, of Natural Quaker Granola you might be surprised to find that your beloved granola brand has changed its name. It is no longer “Natural Quaker Granola” but “Simply Quaker Granola.”
Don’t worry, though. Other than the name, nothing has really changed in the granola. This is just part of a step PepsiCo, the company that produces the granola, has taken to replace the word “natural” with the word “simply” in all of its products. Its “Simply Natural” line of Frito-Lay chips for example will be called now just “Simply,” and so on.
Why has PepsiCo gone through the trouble of changing the names of so many of its products, omitting what seems to be a key part in the marketing strategy of these products?
According to Candace Mueller-Medina, a spokeswoman for PepsiCo’s Quaker brand, this is quite simple. “We constantly update our marketing and packaging,” she said. Apparently though, the answer is a bit more complicated.
Sometimes all you need is just the right framework to keep moving forward and reach your goals. This might also be the case in the fight to limit the increase in global temperatures to 2 degrees Celsius, the threshold experts agree will avoid the worst effects of climate change.
The framework, which was presented last week at the Investor Summit on Climate Risk at the U.N. was quite simple: All we need to do is to add $1 trillion in clean energy investment per year through 2050. According to the International Energy Agency (IEA) such an increase in clean energy investment will significantly increase the chances of maintaining the 2 °C limit.
But how do we do it exactly? This was one of the main issues on the agenda of 550 leading investors from all over the world who came to the U.N. to this biannual summit co-hosted by Ceres and the U.N. Foundation.