The Role of Social Media in Sustainability Oriented Practices

Who We ARE?

Monday, August 19, 2013

Avvari V. MohanAssociate ProfessorNottingham University Business School

Fahad RamzanMBA Entrepreneurship StudentNottingham University Business School

Agenda

The Role of Social Media in Sustainability Oriented Practices

Introduction

Background Literature

Initial Framework

Methods

Findings

Proposed Model

Conclusion

Introduction

Firms need to facilitate consumers with “social media communities or networks where they can be guided and interact in social environment”.

Ted Leonsis, AOL Executive, 1997

Introduction

Firms need to facilitate consumers with “social media communities or networks where they can be guided and interact in social environment”.

Ted Leonsis, AOL Executive, 1997

Social Web (Web 2.0) =

Listening +Learning +Sharing

Introduction

Image by: Ted Nguyen USA

Introduction

Environment / Planet Equity / People Economy / Profit

What’s in there for “CSR”

Introduction

The main goal of organizations is not to make profits alone but also to create a positive relationship with the environment .

Melissa, 2009

Introduction

Melissa, 2009

These CSR/ sustainability efforts are to be practical and should involve the relaying of information to the stakeholders.

Langely, Ortt and Pals, 2010

Introduction

Melissa, 2009

Langely, Ortt and Pals, 2010

Formal written reports communicate CSR / Sustainability Strategies

Introduction

Melissa, 2009

Langely, Ortt and Pals, 2010 Problems

One-way Communication Time Consumption Wastage of Material/Resources Non - Interactive

Introduction

Factors Influencing Change

Image by: huffpost.com

Introduction

Social media technologies have completely changed the way we act online and given every individual a belief that they can make a difference.

Salo, Lahteenoja and Lettenmeier, 2008

Introduction

Social Media could also provide Consumers and other stakeholders first-hand and real-time information as available on internet .

Grevet and Mankoff, 2009

Introduction

Social Media could also provide Consumers and other stakeholders first-hand and real-time information as available on internet .

Grevet and Mankoff, 2009

Is it really happening?

Introduction

“To explore and identify the key areas of social media implications on CSR / sustainability efforts.”

What is Social Media?- Internet based programs or based on “User Participation” & “User Generated Content”.

Characteristics- Interactive, Two-way Communication

and Real-Time, Fast-moving & Mobile. (Lorenzoni, Nicholson-Cole, and Whitmarsh, 2007))

Who is using Social Media?

Harvard Survey79% of 2100 companies are using Social Media

– Increased corporate website visits– Increased awareness and Positive perceptions– Companies accessed better market insights– Able to access early warning on social concerns

(Harvard Business Review, 2013))

Social Visualization / Activism- Open Structure that can be used to to facilitate the desired change in the society.

(Shangapour, Hosseini, Hashemnejad, 2010)) - Individuals can be encouraged to be proactive in adopting sustainable behaviour.

(Mankoff and Grevet, 2008)

Issues- Negative Feedbacks, Double-edged

SwordWestlake, 2008

- One user can influence other individuals concerning a company.

Froehlich et al, 2009

- Lack of Credibility, Transparency and Authenticity

Froehlich et al, 2009

What is Sustainability?

A Dual Construct

Jeremy Moon, 2009

In SimpleWords?

Image by: LeanBlog.org

Companiesfocus into the advancement of living standard and also preserve natural and human resources for next generations to produce an overall positive impact on society.

(Reilly, 2010)

Telling the Story- 30 percent of Global Fortune 500 firms

started issuing sustainability reports in 2007

(Sustainable Life Media, 2008)

- Most consumers respond positively to sustainability.

(David Langley and Tijs van den Broek, 2008)

Social Context- To promote sustainability an organization

must be aware of cultural, social and political factors.

(Kinderman, 2008)

Problems- One-way Communication- Lack of Knowledge and Interest- Disbelief- Blame and Helplessness

(David Langley and Tijs van den Broek, 2008 ; Kinderman, 2008)

“Constant Communication with Stakeholders is needed.”

Social Media and Sustainability- Private media -> egocentric, All about

profits(Art Silverblatt, 2004)

- Social media can re-establish the role of a social institution

(Ellison, Steinfield & Lampe, 2007)

- Social media offers an effective and reliable channel to communicate the sustainability initiatives with stakeholders

(Lorenzoni, Nicholson-Cole & Whitmarsh, 2007)

Social Media and Sustainability- Social Media will change the organizational

behaviour of companies to involve sustainable initiatives benefiting the public

(Beenen et al, 2004)

- Social Media depicts a channel where individuals can communicate and participate actively; pressure from participants increase the number of individuals participating in sustainable initiatives

(Miller, Fabian and Lin, 2009)

Initial Framework

Social Media Optimization

Presenting Relevant

Information/Achievements

Online

Sharing Right Content with

Right Audience

Change in Behaviours

Simplicity of Action/Joining for Audience

Sharing and Interactivity Options for Audience

Sustainability Impact

Initial Framework

Presenting Relevant

Online

Right Audience

FatalismA lack of belief on the part of potential participantsthat a sustainability initiative will have a significant impact

Lorenzoni et al. 2007

Initial Framework

Presenting Relevant

Online

Right Audience

BusynessBusyness is thetypical state of the majority of the population whereby other priorities do notallow them the time and energy needed to act on their pro-sustainability attitude.

Lorenzoni et al. 2007

Initial Framework

Social Media Optimization

Presenting Relevant

Online

Right Audience

Change in Behaviours

Sustainability Impact

Methods

Objective 1- Identifying the role of social media in

influencing sustainable practices.

Objective 3− To propose a model for organisations to

use Social Media for their CSR practices

Objective 2- The influence of social media on firms in

Malaysia

Methods

Previous Studies

Framework

Global Cases

Malaysian Views & Perceptions

Findings

Proposed Model

Research Design• Qualitative• Interpretivist• Case Studies• Interviews

Methods

Previous Studies

Framework

Global Cases

Findings

Proposed Model

Cases Selection• Dow Jones

Sustainability Index (DJSI)

• FTSE4Good

Methods

Previous Studies

Framework

Global Cases

Findings

Proposed Model

Participants• Researchers• Practitioners• Key Executives• Communication

Executives

Findings

Findings-Cases

Cases1. Levi’s2. Banco Bilbao Vizcaya Argentaria

(BBVA)3. eBay4. Danone5. General Electric6. Pepsi Co7. Ford8. Marks & Spencer9. FedEx10. Microsoft

Levi’s

Levi’s introduced new WaterLess jeans concept via dedicated social media channels which increased their responsible image fourfold

WaveMatrix, 2011

Water<Less

Levi’s

This firm has not only used social media to work for causes, but its engagement with consumers, interactive media, authentic and transparency information is also leading the way to solve social

problems.Network For Good, 2012

WaveMatrix, 2011

Pioneer for Responsible Banking and Active Management on Social Media• “BBVA Centro de Innovacion”• Bancaparatodos• Smart Cities• Open Mind• BBVAFF (Friends&Family)

• Spread banking and financial knowledge in more open, broad and interactive way.

• Allows consumers to create communities that pursue to share knowledge and practices for a better future

• Consumers define their goals with desired timeline with their objectives.

• Right tools to describe project outline, raise its awareness amongst communities and receive funds from secure resources guaranteed by BBVA.

Most popular e-Tailer • eBay Give. Good. Green

eBay was established on the noble credence that people are basically good.

Internet Market Head (Robert Chatwani)

• Second –hand Store that has seen resale of over 38,000 clothing products online.

• Common Threads Partnership Pledge – Encourages consumers to bring more products back into the circle.

Firm has used its Social Retailing Experience very

well and as a result 53,000 Patagonia products are circulating in the process, where otherwise such products have

been wasted in a closet or landfill Alan Marks, 2013

Danone

French food-products multinational• Down to Earth• Social Business Networks

Danone

• Long running Project started in 2006• Offers funding for Social Business Initiatives

Danone

They have proved that company’s practical and creative story telling (using photos, videos, short texts) are productive in highlighting the sustainable efforts and are more likely to circulate on social media.

Kruglianskas, 2013

GE – General Electric

GE Reports• Healthymagination• Ecomagination• Data Visualization• Txchnologist.com

GE uses this magazine and platforms under it to raise public awareness on health, technology, future innovations

and environment.

Global #GetFit competition• Encourages participants to share their personal stories and

experiences of staying fit and healthy.

GE Reports is a great example of how interactive and thought-provoking content based social media publishing with the help of experienced and qualified editors can influence firm’s sustainable practices

Internet Market Head (Robert Chatwani)

Pepsi Co.

We implemented Social Media tools to promote responsible business practices because our research indicated that a majority of users, active on social networks, voluntarily participate and contribute for cause-related groups or organizations. This helped us to figure out the potential, we only needed to recruit.

Jackie Millan, VP and Senior Director of Corporate Contributions for PepsiCo Foundation

Pepsi Co.Image by: emilykamischke.com

FordImage by: emilykamischke.com

Marks & SpencerImage by: emilykamischke.com

A new social innovation campaign, “SHWOPPING”, in collaboration with NGO Oxfam, to sell unwanted clothes in UK where consumers discard 2Million tons of cloths every year.

Department for Environment, Food and Rural Affairs, 2012

M&S has donated 5500 tons (equivalent to five jumbo jets) of clothes through “Shwopping”

Justmeans, 2012

FedExImage by: emilykamischke.com

MicrosoftImage by: emilykamischke.com

In March 2013 the research-based Ethisphere® Institute published their 7th annual list of world’s most ethical companies. Out of 145 companies in the list, only five computer software companies made to the ranking and Microsoft is one of them.

Ethisphere 2013

YouthSpark launched in 2012, has generated a buzz in CSR communities on social networks with an aim to help

300M children in more than 100 countries with

quality education, find jobs or launch their own

start-ups.

1. Give for Youth – A micro-funding web portal

2. Innovate4Good – A Global Community to share ideas, find right teams and change the future

Summary Image by: emilykamischke.com

• Blogzine Formats

• Games, Apps & Maps

• Emerging Channels

• Personalized Approach

• Big Cloud Ideas

Blogzine Formats Image by: emilykamischke.com

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