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Everybody is doing it. Are you? Even Gordon Brown is doing it, he delivered his first 'Green Budget' recently in Parliament. Consumers are demanding a greater range of organic food on the shelf, less chemicals in consumables and are starting to think twice about who and what they will buy based on ethical and environmental issues related to the product or the company behind the brand. In a piece of proprietary research that Millward Brown conducted in 2002 on 'Corporate Ethics and Brand Purchasing', three-quarters of a sample of UK consumers said that they had either boycotted a brand, or actively chosen to buy a brand, because of the way the company making it behaves. 67% agreed, "It is important that a company acts ethically". Those with forward thinking can see that the current movement addressing global warming, climate change and reducing emissions is the tip of an inevitable change in the way we do business. Guidelines from the EU are driving us towards more responsible manufacturing and waste management. The Waste Electrical and Electronic Equipment Directive (WEEE) aims to minimise the impacts of electrical and electronic equipment on the environment during their life times and when they become waste. It sets criteria for the collection, treatment, recycling and recovery of waste electrical and electronic equipment. It makes producers responsible for financing most of these activities. Nokia was one of the first mobile phone companies to respond with a WEEE initiative, providing customers with a 'return your phone to us for safe disposal' service to every Nokia phone user worldwide. Just as Fairtrade is one of the fastest growing consumer and retail sectors in the UK, over the past 5 years, annual growth has been at 50% with Fairtrade retail sales in the UK now worth sterling 200 million; it is starting to make commercial sense for organisations to be part of the new ethical wave in business. Two significant moves into the ethical brand market by multi nationals this year are the purchase of Green & Black (the organic chocolate company) by Cadbury and the sell out of The Body Shop to the French giant L'Oreal. Both transactions providing substantial footholds into the retail ethical brand market and a confirmation of where consumer trends are heading. Case Studies Ethical business can come in many forms. I have a client specialising in the management of air quality who have equipment that can make a real difference to the health of those in parts of the world where respiratory airborne infection is a major challenge. In order to both generate sales into a new sector and create an opportunity for the same company to contribute to a global cause; we are in discussion with a national provider whose staff in the UK will benefit from working in better quality air and who also have a charity they support to improve health in Africa. For every unit sold, the company charity receives a contribution to their charity by way of equipment that would really make a positive difference to the health of many. It is a win win for everyone. The Tesco Computers for Schools project, for which Tesco is most well known, has become the benchmark for Cause Related Marketing. Over the last 10 years the scheme has developed year on year and has delivered over £84 million worth of Information Communications Technology (ICT) equipment to schools in Britain, which includes over 52,000 computers and almost 550,000 items of additional ICT equipment. In doing so, Tesco attracts customers whose children would benefit from the scheme, whilst genuinely giving back and contributing to the education of many. Ethical Business Partnerships For some companies, this means entering into partnership with a charity or non-profit organisation. However, other types of corporate in-kind donations - ones that do not necessarily involve long-term relationships between organisations - can also have a big impact, particularly for smaller charities and non-profit organisations. This can take the form of awareness campaigns and events, services to support campaigns, providing essential equipment, time given by employees and volunteers, and ethical products generating revenues. This doesn't mean that companies are writing blank cheques. Instead, they are trying to get the most out of the causes they support by focusing on initiatives that relate to their businesses. For example, Shell, the oil company, supports transport initiatives in Mexico City; Apple, the IT business, puts computers into schools; and Vodafone, the telecommunications giant, supports autistic charities in the UK. As Richard Branson says about Virgin Unite, "So who are we? - A group of passionate people driven by the belief that we have a role to play in tackling some of the tougher social challenges by uniting people and Virgin's global resources and of course having a bit of fun in the process too." Commercial and ethical sense Well thought out and targeted ethical marketing projects make both commercial and ethical sense. American Express is attracting a new genre of customer to their 'Red' card. Inspired by Bono, the Red card gives 1% of every £5000 spent to health related projects in Africa. Offering a selection of highly original lifestyle deals and packages, 'Red' is an aspirational credit card with a huge contemporary customer appeal. Smart thinking. To discover and plan your next ethical marketing opportunity you can contact consultant Elizabeth Jones on contact@elizabethjonesmarketing.co.uk
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