As the world rushes to the conclusion of another tumultuous year, it is time yet
again to take stock on the progress achieved, the innovations unlocked, and the
challenges and opportunities ahead.
Amidst the great resignation, new COVID-19 variants, an increase in violence
against certain communities (including
AAPI
and Jewish communities, among others), and on the heels of a heated
COP26,
business leaders are being called
upon
to deliver not only profit, but value for all stakeholders. What has become very
clear over the past 20+ months is that the world has shifted dramatically; and
with it, businesses have been forced to behave differently — not only to meet
new stakeholder demands, but to survive.
In today’s culturally conscious and rapidly evolving society, successful
businesses will be the ones that are profoundly curious about the needs of their
stakeholders and are always listening to the latest marketplace intelligence.
And not just business intelligence — but social and emotional intelligence, as
well. A new playbook for business is here and businesses must embrace this
directive in order to thrive. The businesses that take this moment and meet it
as an opportunity — not a risk or threat — will unlock new audiences, greater
market shares, and myriad occasions for innovation.
To capture the top trends of 2021, Porter
Novelli reviewed and analyzed a year’s worth of
Purpose-driven and stakeholder news, activities, campaigns and announcements to
deliver the latest in stakeholder intelligence. Through this, we distilled our
10 need-to-know trends for today and tomorrow:
1. Business becomes fourth branch of government
The lines between business interests and political interests have become
increasingly blurred — and more and more, stakeholders are demanding that
businesses speak out around specific legislation at a state and national level.
Indeed, 70
percent
of Americans believe the private sector has become a more central figure in
influencing government
legislation.
At the dawn of 2021 and in the wake of the US Capitol insurrection, we saw
myriad companies
pledge to stop donating to members of Congress who participated or encouraged
the acts of January 6. As the year unfolded, other companies spoke out on
divisive political issues — from the more than 100 business
leaders
who signed a civic alliance letter in support of voters’ rights — to specific
initiatives from companies such as
Bumble
and its relief fund for Texas women seeking abortions.
2. Tapping tech for climate solutions
When this summer’s IPCC report cried a “code red for
humanity,”
it became increasingly clear the urgency to address the climate crisis. This was
echoed by 73
percent
of Americans who say they are more concerned than ever about the impacts of the
climate crisis. In an effort to accelerate advancement, this year we saw
companies unite with tech and science giants to create new solutions to
environmental challenges.
From Tide’s collaboration with
NASA
to create detergent for water-scarce areas — to lululemon’s work with LanzaTech
to make the first fabric from recycled carbon
emissions
— new partnerships are leading much-needed technological advancements. And in a
culmination of 10 years of research, Carbios, L’Oréal, Nestlé
Waters, PepsiCo and Suntory Beverage & Food Europe announced the
successful production of “the world’s first food-grade PET plastic
bottles
produced entirely from enzymatically recycled plastic.”
3. Refocusing on climate through a justice lens
While the entire world reels from the impacts of the climate crisis, it is also
clear that marginalized communities are being disproportionately
impacted.
Indeed, new analysis by the
EPA
found that “American Indians and Alaska Natives are 48 percent more likely than
other groups to live in areas that will be inundated by flooding from sea-level
rise” and Black individuals are “40 percent more likely than other groups to
live in places where extreme temperatures will cause more deaths.”
Now, companies are looking at climate through the lens of equitable action —
case in point: TAZO Tea Company’s Tree Corps
initiative,
which is hiring local community members to plant trees, with the goal of helping
to combat climate change while creating new jobs in economically disadvantaged
neighborhoods and communities of color. Further, a bulk of
JPMorgan’s
$2.5 trillion investment to address climate change will go specifically to
investments to underserved communities.
4. From statements to action items
In
2020,
we saw companies of every shape and size make declarations in their support to
address racial justice. Companies, fueled by stakeholder demands, are going
beyond the statement to do actual work within their businesses and industries.
This is especially important when one considers 63
percent
of Americans believe companies can no longer make a statement of support without
also showing their actions to address social-justice issues.
In addition to new moderation and content guidelines to make
Pinterest
a safe and inclusive space, the social media platform built a $500,000
Creator Fund in April to uplift artists from underrepresented communities,
paired with strategy consulting and fair compensation for content. Also this
year,
Disney
committed to centering each and every partnership around multicultural
components and inclusive creative.
5. Rethinking employee benefits
Given the great resignation is still taking
place,
and with more employees rethinking where they work and why, it’s no surprise
companies are reimagining how to attract and retain great
talent.
Some companies leaned-in on traditional benefits, while others took new
approaches.
This year, we saw both
Walmart
and
Target
commit to cover 100 percent colleague tuition for its workers; while
Spanx
CEO Sara Blakely rewarded staff by providing every employee with two
first-class plane tickets and $10,000 cash. Meanwhile, White
Castle
listened to its employees when redesigning its uniforms, which now include
durags.
6. Accessibility in spaces for all
There are 1.2 billion people in the world with
disabilities, representing 15 percent of the global population; yet, many
individuals still face systemic barriers to participation in everyday
activities. While we have seen many brands enter the adaptive design
space
to better serve people of all disabilities through product innovation, a new
trend has developed to ensure brick-and-mortar spaces are more accessible and
inclusive, as well.
Planet
Fitness
partnered with Paralyzed Veterans of America, National Council on
Independent Living, and the American Council of the Blind to add
accessible exercise equipment to all of its gyms; while AMC
Theatres
announced it will offer on-screen captions at 240 of its theaters. Disney also
created enhancements to its Disability Access
Service
at parks, allowing individuals to enroll for accommodations 30 days before
arrival through a live video chat with a cast member.
7. Making space for mental health
It’s no surprise the ongoing effects of the pandemic are taking a huge toll on
mental health globally. In fact, in the US, depression rates have more than
tripled
from pre-pandemic numbers. As individuals and organizations struggle with this
reality, businesses are addressing the issue head (and mind) on.
Stemming from the insight that more than half of people in the country have not
used their vacation time during the pandemic,
Jameson
encouraged individuals to take St. Patrick’s Day off from work — and paid each
person $50 to do so. Meanwhile,
Pinterest
prioritized emotional wellbeing during Mental Health Awareness Month by
highlighting content from mental health advocates and creating a $10 million
commitment to “fund
organizations
that are increasing awareness of mental health and wellbeing challenges.”
Finally, over 200 businesses — including Univision, Uber, Kenneth
Cole and NBCUniversal — joined together to create the inaugural Mental
Health Action
Day
on May 20.
8. Putting consumers at the heart of circularity
The concept of a circular economy is certainly nothing new in the sustainability
world, but what was novel in 2021 was the sheer amount of product launches that
put reusability and circularity in front of
consumers.
This is increasingly important as 71
percent
of Americans want companies to help
them
take more sustainable actions in their everyday lives.
This year, we saw
Dove
launch a stainless steel, refillable deodorant; and McDonald’s and
Loop
create a reusable cup program in the UK. And ensuring consumers have a
choice to go circular, beauty brand Ulta
partnered with
Loop
to create the first-ever global reuse platform that allows customers to shop
specifically for beauty and personal care products in “durable, sustainable
packaging
which will be refilled and reused.”
9. Funding the green bond boom
To meet the huge advancements that must be made for climate-crisis mitigation
and adaptation, major investments need to be made in this space. This year, we
saw a number of companies — both in and outside the finance industry — issue
green bonds to accelerate investment and progress in environmental finance.
Indeed, some experts estimate the sustainable finance space will see 55
percent
growth by year-end.
This year,
Walmart
issued its first-ever green bond — putting $2 billion to fund “projects
enabling the company to reach its sustainability goals;” while
Verizon,
which has funded green bond projects in the past, announced another $1 billion
to renewable energy projects. PNC Financial Services
Group
also invested in environmental finance with a five-year, $20 billion commitment
to the pillars of green building, renewable energy, clean transportation, and
environmental sustainability-linked bonds and loans.
10. From moment in time to all the time
In the past, it was common practice for companies to focus campaigns, efforts
and announcement around affinity months and days — whether that be Black
History
Month
in February, Asian American and Pacific Islander Heritage Month in May or
Pride
in June. Yet, it’s increasingly clear that commitments that only see the light
of day one month (or day) a year are falling far short in impact and
authenticity.
Now, brands are celebrating communities all year long — whether that be
Doritos' viral Día de los Muertos
ad,
which is part of the brand’s #PrideAllYear initiative to uplift the
LGBTQIA+ community beyond the month of June — or Target’s
commitment,
which spans beyond Black History Month to spend over $2 billion with
Black-owned businesses by 2025.
While many have been sold on the concept of purpose and stakeholder
capitalism
for quite a while now, the time has come to put this into practice. We’ve gone
from a theoretical belief that business must operate differently, to a very
tangible and real moment where companies must be prepared to turn their
convictions into measurable
action
— to not only stand for more than what they sell but prove exactly how. As these
trends show, statements must be backed with movement and commitments must in
turn reveal results. As we head into 2022, it will become increasingly
imperative for companies to close their say-do gap — to continue to bring
stakeholders along for the ride.
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Senior Vice President, Marketing, Research & Insights
Allison
With nearly 15 years of experience in the purpose/ESG/impact space, Whitney Dailey is a leading practitioner at the intersection of purpose and communications.
At Allison+Partners, Whitney serves as Executive Vice President of Purpose and leads the agency’s newly formed Purpose Center of Excellence – a dedicated team specializing in Purpose brand strategy and ESG leadership, backed by A+P’s global network of more than 500+ creatives and storytellers. In this role, Whitney helps clients establish, communicate and measure ESG goals and strategies, as well as build breakthrough social impact programs and thoughtful, strategic Purpose programs and initiatives from the ground up.
Kate Cusick brings 15 years of integrated communications experience to her role as Porter Novelli’s CMO and Director of Global Business Development. Prior to Porter Novelli, Cusick spent three years as partner, director of project management with Gardner Nelson & Partners in New York, leading both the business development group as well as the account management team. Before that, she spent nearly two years with (Red) as director, brand and integrated marketing, where she was responsible for redefining, communicating and growing the (Red) brand across all media, influencers and partner companies globally. Prior to that, she was senior vice president, director of integration with Team Omnicom/BBDO, serving a major banking client.
Published Dec 14, 2021 10am EST / 7am PST / 3pm GMT / 4pm CET