A Cautionary Tale of Corporate Social Responsibility

on understanding and addressing motives

Posted 2010-12-16 14:54 in branding, business, business models, economics, energy, environment, improvements, marketing, politics, research, sustainability, transportation


A few years ago, I was consulting for a well-known company with a large vehicle fleet. Higher-ups were interested in the company’s environmental impact, and wanted to know the best way to reduce their carbon footprint given “X” dollars of investment. They were thinking of maybe of replacing their vehicles with hybrids. My team and I, being the intrepid businesspeople that we were, collected figures, ran some numbers, and came to a solid and convincing conclusion about what they should do.

Standing before company execs, we went through a number of concise charts and calculations demonstrating our work. Then we stated— with some sense of pride for our thoroughly researched and unintuitive conclusion— our genius strategy: on retirement of vehicles, the company should replace its gasoline powered vehicles with diesel powered vehicles.

It was in the moment of silence that followed that I believe we lost them.

Sure, we told them:

But ultimately, we sensed that something hadn’t quite translated. There were some questions and some comments by the company’s representatives, but they didn’t look convinced or excited by our presentation. The question of what happened, of course, is blindingly obvious to the onlooker. The company had already made up its mind about its strategy— they were going to get hybrids—, and our proposal simply did not fit into their plan. More to the point, we simply took their words about wanting to reduce environmental impact at face value, without taking careful stock of what their motives might be.

If you look at the business environment with regards to carbon footprints, the United States tends to be fairly hands-off at the moment. Generally there aren’t very many penalties for generating negative externalities as long as your company happens to create jobs and contributes to the economy. That is, no company is going to face government intervention because employees create air pollution while they drive around; the penalty for driving around comes almost exclusively in the form of fuel expenses and maintenance costs of the vehicles. Thus, any potential benefit that comes from reducing carbon footprints comes from these cost savings— and from creating a positive impact in the PR department.

Ah! The PR department. That was the critical element that we had missed. Somewhat naively, we had overlooked that the main intent of the carbon footprint reduction initiative was not the reduction itself, but in looking good for doing it. We had yet to learn that part of marketing is understanding that it’s as much about the story you can tell as it is about the reality. And the bottom line here was that “we care about the environment so we’re going to buy, errrr, smog-spewing diesel trucks” was not as compelling a story as “we care about the environment— that’s why we’re replacing our gas-powered vehicles with green technology hybrids!”

In other words, while doing the right thing is without a doubt a good thing, effective sustainability campaigns will definitely need to place the image factor high on the set of priorities. Something to keep in mind.

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Cultural Limitations of Growing the Emerging Bicycling Market

why building bicycle infrastructure is only a partial solution

Posted 2010-11-20 15:01 in business, culture, economics, energy, environment, experiences, law, marketing, politics, research, sustainability, transportation


PROLOGUE: THE NEED FOR RETHINKING THE CONVERSATION ON ENERGY AND BICYCLE GROWTH
At the recent Energy Hub Conference, held in mid-October in Madison, WI, Skip Laitner, Director of Economic and Social Analysis for the American Council for an Energy-Efficient Economy (ACEEE), argued in a keynote address that the vast majority of our nation’s conversation about solving energy problems assume that it’s all about employing amazing new technologies like solar power, hybrid vehicles, wind power, microscopic energy-producing organisms, and the like. Point taken— in fact, just moments before his talk, the audience was subjected to a five-person panel of scientists and businesspeople who took turns promoting their new and wonderful energy technologies, and who tried to convince us that their innovations were going to be key elements in the high growth energy markets that drive the American economy and which will prevent the energy disaster looming on the horizon.

Laitner, however, was skeptical of this viewpoint. He argued, quite convincingly, that we need to wipe clean the slate on which we have written the dominant narratives about energy independence and we need to rethink it from the bottom up. One of his central points was that that we need to seriously think not about creating more energy, but in using what we have more efficiently. In general far too much attention has been paid to looking to the future technologies, and too little has been spent in understanding and addressing, in his words, the “cultural and anthropological” aspects. In short: We have a tendency to think of improvement in terms of technology, not in terms of behavior.

It is in this spirit of rethinking that I write this essay, in the hopes that it can better articulate why bicycling, a practice that in theory could be very instrumental in accelerating energy independence, requires a new approach in promoting its growth. I hope that in examining this issue and proposing marketing strategies, I can do my part to illuminate how the growth of the bicycle market can be not only be hugely profitable, but also culturally valuable to the American populace in a number of salient ways, not least in reducing energy dependence.

UNDERSTANDING THE BICYCLING MARKET AND ITS BARRIERS TO GROWTH
One of the highest product growth markets in the United States from 2000 to 2008 was bicycles.1 Indeed, the number of bicyclists on American streets has grown exponentially, and the prominence of bicycling in the mainstream consciousness has been increasing quite rapidly. Lance Armstrong is now a household name, and his athletic abilities have been held in high regards by Americans, who view him who is reinforcing American excellence on the world stage in competitive games like the Tour de France.

However, the growth of bicycling is starting to plateau; it experienced a rapid rise, but is now butting up against formidable barriers. The bicycle industry and bicycling-related groups are now finding themselves facing a seriously uphill battle in breaking bicycles into the American mainstream.

Three Major Sources of Consumer Resistance to Bicycling
As an avid cyclist myself, I have spent much time considering how advances in bicycle ridership could occur, and I have uncovered three distinct areas that require attention:

  1. Serious attention to improving bicycle design
  2. Improved transit infrastructure and bicycling amenities
  3. Greatly increased focus by bicycle companies on understanding the cultural barriers in bicycle growth, and addressing them in meaningful ways

The first of these issues is one that I have written about before, and which might be of interest. To quickly summarize, it seems apparent to me that most R&D and innovation at bicycle companies go towards efforts like reducing bike weight. While this is certainly something that is of concern to road bicyclists and many others that currently make up the core market of bicycle buyers, this is not a concern for the massive potential market that U.S. bicycle companies seem to be completely oblivious to. There are other, seemingly minor concerns regarding bicycle design that I strongly suspect are at least partially responsible for preventing an explosion in bicycle sales that would exponentially grow the entire bicycle market. While it is critical to understand this argument, it is not the focus of the essay here.

The second of these issues, the lack of bicycle infrastructure, tends to be the one that bicyclists fixate on. There are constant laments from cycling quarters that not enough money is being spent by city, state, and federal governments on improving transit infrastructure for bicycles despite its growing popularity. As a result, cyclists and bicycling advocacy groups have been relentless in pushing new projects like bike paths, bike lanes, and other amenities for cyclists. While I agree that these amenities would be nice, pushing this angle also implicitly argues that bicycling is an alternative form of transport that requires special and additional facilities to accommodate. This is a false assertion, and one that needs to be seriously questioned. Bicycles could easily make use of infrastructure that is already in place, and theoretically, even infrastructure that cars couldn’t use (like sidewalks and narrow alleyways). The United States has already built more than 4 million miles of public roads, almost all of which are currently allocated to cars. However, the ownership of this space by cars is not generally a legal designation so much as a cultural and psychological one, which brings me to the third point, which I think is the one that most seriously needs to be addressed: cultural barriers.

The recent increases in bicycling have rather unexpectedly hit a sensitive cultural nerve for something that might appear from the sidelines as an innocuous hobby. This is because bicycling is a phenomenon that touches heavily on a number of issues that are central to American culture, identity, and outlook, and like many of the other highly controversial issues on our collective table, is creeping rather nastily into the messy purview of the culture wars. In this article, we will examine many of the issues surrounding the controversies and cultural warfare that has erupted somewhat unexpectedly from bicycling, while situating the conversation in a socio-historic context. My hope is that understanding the resistance to bicycling from the mainstream can help bicycling manufacturers and advocacy groups reposition cycling to be a more attractive pursuit to the mainstream consumer than it traditionally has been.

RECURRING THEMES IN OUR CULTURAL DIALOGUE ABOUT BICYCLES
With the socio-cultural context of American streets as a backdrop, it is interesting to note that there has been a massive increase in interest in bicycles over the past decade. The reasons for this are not entirely clear, but it likely has a lot to do with young people being more environmentally-conscious than their parents, economic woes forcing people to adopt cheaper forms of transport, our culture’s increasing focus on ‘authentic’ lifestyle choices as being more status-conferring than traditional wealth-oriented consumption patterns, and the internet’s help in fomenting communities. It doesn’t hurt that city planners have been spending more time thinking about how cities can better reflect the needs of people through initiatives that encourage civic pride.

As a result of this, there has been a great increase in bike-related stories in news outlets. In recent years, I’ve lost track of the number of articles about bicycling public policy, government proposals about allocations of money to bicycling projects, details of bicycling accidents, opinion articles about bicycle culture, advocates raising the merits of bicycling, and other bike-related coverage that I’ve come across without even looking for them. Clearly, something is happening in the public consciousness with regards to bicycling. I’ve noticed that many of these stories—and the comments made about them on sites that allow user comments— involve explicit or unstated tensions, pitting bikers against other members of the community. The following are themes that I’ve collected, and which I think it is extremely important for bicycle advocates and bike manufacturers to take note of and to address in a serious and focused manner if we are to look at cultural barriers.

Photo by Duncan Rawlinson

Photo by ItzaFineDay

Photo by Jeff Hitchcock

Photo by Kyknoord

EXAMINING CAUSES OF CONSUMER RESISTANCE
Without a doubt, over the past decade, there has been a rapid ascent in DIY culture that has privileged simplicity, customization, authenticity, and other crucial characteristics of consumer goods; these qualities are ones that make bicycles an attractive, cheap, and fashionable mode of transportation amongst members of certain demographics and psychographics. However, there is much resistance to widespread bicycle movements in areas outside of progressive hubs like Portland, Oregon; Davis, California; Boulder, Colorado; and Madison, Wisconsin. As I have already mentioned, some of the problem is infrastructural in nature (though truthfully, the U.S. has some 4 million miles of paved road, almost all of which is dedicated to motor vehicle traffic— an allotment that could be reapportioned given public support), and some of the problem is due to what I consider antiquated bicycle design; but a large part of the problem is cultural. As a society that has been heavily indoctrinated into car culture, we simply have a strong aversion to this alternative transport mode for reasons that aren’t easily addressed. For non-cyclists to begin adopting bicycling as a primary form of transport currently requires certain psychological adjustments that, depending on the person, range from minor to massive. The following are the specific barriers that are expressed through consumer resistance, and which play on the ideas mentioned above. For many, the idea of using a bicycle as a legitimate form of transport:

CREATING MARKETING STRATEGIES TO COMBAT CULTURAL RESISTANCE AND TO GROW THE BICYCLING MARKET
Clearly, there are many barriers to the growth of bicycling, and many different ways that growth can be facilitated. Here, I describe how a successful approach to popularizing bicycles— in addition to manufacturing better bicycles and improving city infrastructure— must adopt marketing strategies that encompass holistic views of the cultural elements of bicycling, and the behavioral inhibitions that face many potential and current bicycle consumers. What follows here is not meant to be an exhaustive exploration of marketing strategy, but rather a brief sampling of the types of avenues that should be explored by bicycle manufacturers, bike advocacy organizations, and bicycle consumers.

CONCLUSION
For cultural reasons, promoting the adoption of bicycles is not going to be an easy sell. Cultural attitudes are notoriously hard to overcome and are ingrained in entire thought patterns. Nevertheless, there are many reasons to believe that overcoming the hurdles can happen through a careful understanding of the cultural barriers and taking active steps towards addressing those barriers through effective marketing strategy. It will take some money, but a lot of work, planning, and relationship-building at the agency and aggregate level.

The above strategies are only a few ways to address the central issues. More effort should be put in my bicycle manufacturers and bike advocacy organizations in crafting strategies that take into account the cultural forms of resistance I have elucidated above. For reasons I have described, they are just as important (maybe more) as pushing for better dedicated bicycle infrastructure.

Do you have good ideas on how to address the cultural barriers to bicycle growth? Any important cultural barriers I have missed? Please let me know in the comments.



1 National Bicycle Dealers Association. “U.S. Bicycle Market Overview,” 2008.

2 The comparison of this particular theme is one that reminds me strongly of the origins of America’s attitude towards its drug policy. I’ve spent a fair amount of time reading up on the economic aspects of American’s longstanding (and largely failed) war on narcotics, largely because understanding how this war has been executed vividly demonstrates how ineffective demonstrations of brute strength are against all known economic and marketing theory. Yet, it’s hard for anyone who has spent any time reading about this topic to walk away without the feeling that generalizations about the politics of drug users had a major impact on how policy has played out. The use of drugs during the 60s and 70s was associated with liberals, hippies, intellectuals, and minority groups. All their talking about revolution and social upheaval was not an association that, say, the Nixon administration was eager to be bedfellows with— regardless of what objective studies said about these drugs. I strongly suspect that in a similar way bicycles are maligned in an unwarranted fashion by those on the conservative end of the political spectrum.

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On Nuance and Intellectual Honesty

the importance of thinking in complex terms about subjects that are often denied it

Posted 2009-11-10 14:35 in consumerism, culture, economics, human nature, marketing, research, unanswered questions


In a world of soundbites, it’s hard to be nuanced these days. Every time you make an assertion that—wait— maybe Wal-Mart isn’t working hand in hand with Satan, or that materialism might not cause the downfall of civilization, you get dirty looks from people. It’s not that I believe that Wal-Mart is the greatest company ever or that I believe we should all be more materialistic. It’s that these are nuanced points of view that attempt to not be reductivist. By this I don’t mean to imply some wishy-washy sense of moral relativism that sidesteps taking hardlined stances on topics of public interest. It’s about being complete in an assessment before passing judgment. But in the modern world, we not only expect reductivist views that are partially based on political ideology, but we view non-reductivist views suspiciously, as if they are coming from someone with an ulterior and opposing motive.

Case in point: last night, I was engaged in conversation with some fellow graduate students, faculty, and area intellectuals. We were talking about Dan Ariely’s book Predictably Irrational, in preparation for his visit to this campus. The topic of conversation weaved a path around a number of subjects, but I found myself interjecting numerous times to offer a little bit of push-back towards certain culturally-driven assertions. I realize that doing this can make someone appear argumentative and contrarian, particularly in settings where they don’t know the people they’re talking to, but my goal is to elicit some level of thought in people who have strong, but largely unquestioned, points of view.

Unfortunately, pushing nuance means that people will interpret a political argument even where there isn’t one. Some topics are simply so ideologically loaded that you can’t talk about them in a complex and thoughtful way without people instinctively taking the side that most conforms to the talking points of their political ideology, and getting defensive when a statement impinges on it. Viewpoints that I often come in conflict with, and for which my rebuttals ruffle feathers, almost certainly cause people to form negative judgments about me (“obviously, this is a marketer talking” or “he’s clearly a member of such-and-such political party”); these impromptu acts of belief-formation on their parts are able to account for what otherwise may seem like— but aren’t!— needless and attention-seeking subversions of expectations on my part. The problem is that on hot-button issues, people assume that their conversation partners have political agendas that they want to push.

But in order to have a real dialogue, we have to abandon that way of thinking. We can no longer afford to have conversations that consist entirely of liberal/conservative/capitalist/socialist/pro-business/anti-corporation talking points. These talking points mean nothing because they are contextually bereft, and are selective ways of interpreting large amounts of complex information. But the real world is complicated. In my view, extreme points of view are common from people who haven’t done research on opposing views, and have not considered the aggregated knowledge in a meaningful way.

Perhaps you are wondering about the types of complex thoughts I’m talking about. Here are some points that I brought up last night, and which probably didn’t go over too well:

So, to the few of you who actually read this blog, I have one desperate plea: Question your own belief system rigorously, and be willing to think in complex terms, even if that means you arrive at conclusions that are unpopular among those in your peer set and social networks. It’s the only way to have honest dialogues these days.

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Data, data, everywhere...

why we should reject extreme views about data source validity in constructing knowledge

Posted 2009-04-16 13:03 in epistemology, research


Some academics are not secure about knowledge without having reams of “data” about it. But what exactly is data? To many people, it just means numbers that somehow tells us something about something else. Often, data is a proxy for information we can’t really get directly. If you ask someone how much they would pay for something, you’re trying to gain access to a hidden piece of information that you can’t access directly. You would like to be able to reach into someone’s head and grab the number, but you can’t. Instead, you have to ask. The problem with asking, however, is that the person may not really know how much they would pay. What they tell you and what they might actually do could be two very different things. Many researchers have issues with this, but I want to explain here why I think it’s misguided to categorically dismiss certain forms data.

Okay, truthfully, I wouldn’t place a tremendous amount of stock in survey data. Often if you ask people about things that intimately relate to them, they have little insight or even self-awareness. This creates a problem in data accuracy. I once read a paper in which respondents were asked, among other things, how neurotic they considered themselves. What person is going to be able to answer this accurately? People have a vested interest in believing that they are not neurotic and are likely motivated to have an overly positive view of themselves; moreover, they probably don’t have any awareness of how neurotic they are. You could get this information much more reliably from asking the people who have to spend extended amounts of time with them. But beyond that, it gets even more complicated once you realize that people have different scales. A 7 to one person is a 9 to another. Over a group of people, these numbers end up muddled because of intersubjectivity. But often, it’s the best we have, and we have to make do with it. And generally, if you take the time to control for variables, you can minimize uncertainty.

Nevertheless, there are those who argue that “factual” data is the only way to go. This is stuff like scanner data (quantitative information about sales, for example— with no room for “interpretation”). This information, it is argued, consist of “facts.” They are not debatable, touchy-feely constructs dealing with emotions and nebulous latent thought patterns. Yet, in my opinion, numbers only tell part of the story. You can get a what from that sort of data, but it’s much harder to get a why. You can speculate, but speculation only gets you so far. Some might argue that getting a why from interviewing doesn’t work either. I can see why they might say that (perceived lack of generalizability), but nevertheless, one can still gain some valuable insights, especially over large sample sizes.

I know of a few researchers in marketing who do, almost exclusively, ethnographic studies. This means that they interview a usually small number of people and perform something akin to psychoanalysis to make sense of their comments, from which they extract broader level understandings about people and culture. This is a method that many people apparently view with skepticism and scorn. “How do we know that this stuff is true, and that it’s generalizable?” a colleague once asked me. This, to me, invites the question of how we “know” anything.

Knowledge is a strange thing. What does it mean to “know” something, anyway? The best explanation of knowledge that I’ve ever heard was featured in Michael Shermer’s excellent book Why People Believe Weird Things. In it, he offers a thought experiment.

There are a number of people who are vehement Holocaust deniers. They claim that this genocide never happened, and people who believe it did are ignoring mountains of evidence showing that it didn’t happen. These people then present certain pieces of evidence that they have collected that indicate that they are correct. A piece of evidence Shermer received from one denier was a photograph of a gas chamber that showed that the gas lines weren’t hooked up properly. Therefore they could not have been used. This was at one of the concentration camps with the most supposed casualties. The denier had numerous other similar forms of ‘proof’ as well.

So what are we to make of this?

Shermer’s response is rather remarkable for its simple but profound intuition: he states that knowledge is not produced from isolated pieces of evidence. It is based on a convergence of evidence from may different areas. It’s not just the millions of bodies found, it’s not just the thousands of witnesses, it’s not just the trove of photographs, it’s not just the millions of pages of documentation. It’s all of these things together that all point towards the same thing, which is that the Holocaust happened.

Isolated photographs don’t prove anything; human interpretation of knowledge is based on our assessment of what is most likely true based on all information available. One photograph of a disconnected gas chamber does not disconfirm all the aforementioned evidence, and to think that it does suggests the presence of motivated reasoning more than anything else. Even a hundred such photographs don’t show much— because the relative amount of evidence between the it happened group and the denier group is at such a disparity that it’s virtually impossible for an unbiased party looking at all the evidence to arrive at the conclusion that it didn’t happen.

Likewise, I think it’s very important for researchers to have a somewhat contemplative view of data. Despite the presence of “definitive” journal articles about certain subjects, one sample of data and its interpretation is not definitive; more important is the convergence of many different types of data onto one most likely truth. More data from more diverse sources ensures that any one piece is not biased, and isn’t misleading you in a certain direction. However, as anyone who has been collecting data for any amount of time will tell you, it isn’t easy to get data, much less many different forms of data that relate to the same constructs. But if you ask me, from an epistemological point of view, it’s the only way to establish knowledge; the more data you have that all point at the same thing, the more you can be certain about something. It’s a rather simple concept that forms the basis of the scientific method.

Even if some people find certain forms of data less reliable than others, all data collected in a responsible fashion can be useful in constructing truth— especially when combined with other relevant data. Every piece can play a role, just as each brick plays a role in building a house. True, not all data is perfect; in fact, very little of it is. But it is not productive to dismiss entire categories of data simply because it came from a survey or it is based on ethnographic information. It is a grievous research error, in my opinion, to make the perfect the enemy of the good; it undermines the role of information diversity in arriving at truth.

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