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20 June 2011

Doing the right thing: for the planet or for your business?

During the Business of Sustainability sessions last week I was asked about the green executives I had interviewed for my book, The Green Executive - were they doing what they were doing because they felt it was the morally correct thing to do, or was it because it was just good business sense?

The answer of course is "both" - they were passionate about their values AND it was good for the business.

But the reality is a bit more subtle than that. The executives were almost all highly passionate about doing the right thing, but they were astute enough to realise that if what they proposed wasn't good for the business then it wouldn't be sustainable in the small 's' meaning of the word. A dose of healthy business pragmatism was required.

In other words there is a "sustainability sweet spot" where personal passion for the planet and business acumen overlap - see my Venn diagram below.

If you are passionate about the planet, but ignore the business case, then either you will be ignored yourself or ultimately you will damage your business (or organisation). On the other hand, if you are only coming to sustainability from a purely business point of view you will probably lack the vision and perseverance to deliver real change. If you hit the sweet spot then you are a true Green Executive - and this is what sets the guys I interviewed for the book apart from the also-rans.

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20 August 2009

Whole Foods Boss Does a Ratner

Whole Foods Markets claims to be the world's leader in natural and organic foods. A look at their website shows a family, planet, people-friendly business extolling the benefits of their products and their values in a confident, engaging way. So far, so good - the sort of business paragon we like to use as examples to our clients.

But CEO John Mackey seems to have blown a hole in the ship below the waterline. An op-ed article in the Wall Street Journal attacked President Obama's healthcare plans and proposed a free-market alternative that some have described as 'Darwinian'. The reaction has been brutal - a Facebook group calling for a boycott of Whole Foods has over 19,000 members as of this morning and the story is all across the popular press. The last time we saw something like this was when UK highstreet jeweller Gerard Ratner brought down his business by joking in a speech that the company's performance was "not bad for selling crap".

Top management guru Tom Peter has commented that it would be a shame if CEOs couldn't give personal opinions in the future, but I think he his missing the point. The Whole Foods brand makes a big fuss over its progressive values and their core customer base is exactly the sort of person who would support Obama's plans. I can't see why the WSJ would have bothered publishing the article if Mackey wasn't CEO of Whole Foods. The gulf between the values being projected to those customers (we understand and care for you and your family) and the values expoused in the article (I think you're a bunch of loony socialists) makes the Grand Canyon look like a crack in the pavement. Result - potentially fatal brand damage, and all for what?

So, lessons to be learnt:

- customers really don't like feeling that they've been swizzed
- the press and the blogosphere thrive on perceived hypocrisy
- if you are going to expouse values, it's helpful if you really believe in them yourself
- if there is a gap between your personal values and your corporate values, don't use the business as a platform to promote the former (is that not really obvious?)

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