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Written by Emily Kane Miller
Chief marketing officers are exposed to reports on noteworthy trends.
Socially conscious employees, especially younger employees and customers, are leading marketing executives to measure and report their companies’ “social impact.” This is a broad category that includes everything from a product’s environmental impact to workplace diversity.
From AI to regulatory mandates, there will be many new “social impacts” in 2024.
Cooperation over competition
The rivals are working together to advance environmental and other social justice initiatives. For example, The Footwear Collective is a consortium of supposedly competing brands (Brooks, New Balance, On, Vibram, Crocs, Ecco, Reformation, Target) to promote sustainability in the footwear industry.
For-profit organizations often partner with nonprofit organizations. Consider the World Surf League’s WSL One Ocean Initiative. This initiative aims to protect our oceans and ensure that future generations can surf in safe waters. “Celebrate your partners and all those who join or amplify your company’s efforts. Our ESG report supports local communities, First Nations and First Nations, surfers and our is focused on a coalition of more than 100 organizations that have helped make an impact,” said John Suhar, vice president of environmental and social impact at WSL. “It’s not just about achieving sustainability milestones. It’s about fostering lasting relationships and advancing a collective movement towards a healthier planet, empowered communities and sustainable practices. is.”
Retail circularity
Recycling is being replaced by ‘retail circulation’, where customers buy back goods they no longer use. After undergoing rigorous quality assurance, the retailer puts the item back into stock and allows new customers to purchase the old item. This not only creates a new revenue stream for stores, but also reduces the demand for new, unused materials.
Poshmark is one of the pioneers in the recommerce space. “Circularity isn’t just a buzzword for niche companies and brands,” said Kelly Mason, Poshmark’s head of communications. “There are obvious participants in the circular economy, as they are manufacturing products that can be easily reused and resale marketplaces like Poshmark that allow consumers to keep goods out of landfills. ,” Mason said. “Consumers want products that last and want to know they have options to reduce their impact on the environment.”
Tightening regulations
The European Union’s Corporate Sustainability Reporting Directive, also known as “CSRD”, came into force in 2023 and requires large publicly traded companies in Europe to track and disclose sustainability metrics. The Biden administration is likely to follow suit. Many American companies operating in the EU are already legally bound by this obligation. According to PwC, “A company headquartered outside the EU is required to have a consolidated sustainability report at a global level if it has at least one EU subsidiary or branch that generates certain revenues within his EU and meets certain criteria.” is required.”
Proponents of corporate sustainability scores argue that this data allows companies to make better decisions. Businesses already use data and predictions to buy products, develop marketing campaigns, and reduce risk, so social impact data can also be leveraged to build more robust business strategies. .
“As practitioners, we need to see these regulations not as constraints, but as catalysts for positive change to strengthen our commitment to social responsibility and champion the cause for the planet. “Yes,” said Christina Beckman, senior manager of ESG at Culligan International.
Of course, these regulations will increase costs at a time when consumers in both Europe and North America say they are worried about rising prices and slowing economic growth.
impact investing
“[Our] Our analysis shows that financially successful companies that incorporate environmental, social, and corporate governance (ESG) priorities into their growth strategies outperform their peers, provided they also have strong fundamentals. McKinsey’s report states. Investing in ESG initiatives at the corporate level is beneficial, and individual investors are no exception.
That said, politically conscious consumers are less concerned with the shareholder situation and more concerned with how stakeholders are affected. They want to know who the beneficiaries of impact investing are, what outcomes will materialize, and ensure that their spending is meaningfully allocated.
Impact investing is a vehicle that can quickly deliver results that are typically difficult to achieve in more bureaucratic structures such as nonprofits and government agencies. “At Chime, we have a program called Chime in for Changemakers, and our goal is to invest in organizations that are driving system-level change. It’s accelerating it,” said Kira Traore, head of corporate social impact at fintech company Chime. “We may need to rethink how partnerships come about, but I don’t think donations are the only avenue we should pull anyway.”
Ethical AI usage
AI raises both legitimate concerns (white-collar jobs will be replaced by AI automation) and ridiculous fears (AI will start a nuclear war on its own, as in the 1983 film “War Games”). Although it has had a huge impact, some believe that AI can actually be used to create a fairer and more inclusive hiring process. Unilever is using AI to combat discrimination in the hiring process by avoiding hidden biases that prevent women and minorities from getting that all-important first job interview.
“The social impact space in 2024 will be shaped by major challenges, such as climate change, and opportunities, such as the growing adoption of AI,” said Justina Nixon Saintil, chief impact officer at IBM. Ta. She said: “The demand for AI and sustainability skills is already increasing and I think this will be a key driver of efforts across the industry.”
The vast scope of social impact initiatives will keep chief marketing officers busy throughout 2024.
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