This column highlights the top economic stories of the week.

One way in which today’s corporation is becoming enlightened to the fact that green manufacturing CAN equal more profitable manufacturing is through a new concept called “lean manufacturing“.   In the 1980’s, JIT, or just-in-time techniques became all the rage in management circles as they shaved costs from production by eliminating the need for high levels of inventories by focusing on using just what was needed, when it was needed. More on this story here.

Economists are examining the argument for imposing special taxes on goods and services whose prices do not reflect the true social cost of their consumption, are now considering a tax on junk food. But while it might seem obvious and logical, some argue that a tax on junk food might even increase obesity, especially among the physically active. More on this story here.

Does Cause Marketing thwart social change? In the “The Hidden Costs of Cause Marketing” in the Summer issue of theStanford Social Innovation Review, Angela M. Eikenberry argues that cause marketing is “consumption philanthropy,” connecting shopping with a social good, whereas high-levels of consumption in the developed world could be hurting philanthropists’ efforts to save rain forests, fisheries, etc. And it may be counterproductive in increasing empathy for people in need and a sense of responsibility to help. More on this story here.

China’s economy grew nearly 8% in the second quarter of 2009, the government said, in a stunning turnaround for the Asian powerhouse that offered some hope for the rest of the world. Analysts said the rebound in China would offer a boost of confidence for the global economy as it struggles out of the worst economic crisis since the Great Depression of the 1930s. To fight the downturn, the government had begun implementing an internal infrastructure stimulus package that invest heavily in renewable energy.  More on this story here.

Hollywood has unleashed a new wave of disaster films that focus on what will happen after the apocalypse. But even when they tackle serious issues, most of the new disaster movies and TV shows take pains to avoid moralizing, which can be toxic at the box office. Issue-oriented films, such as “In the Valley of Elah,” starring Tommy Lee Jones, and Tom Cruise’s “Lions For Lambs,” have tended to fare poorly with audiences. More on this story here.

Much like California, Guangdong province in Southern China, is the incubator of a large, innovative and dynamic economy far from Beijing and Shanghai, China’s centres of political and financial power. With an official population of 95.4m, it leads the country in economic output and exports, though the latter have fallen about 20 per cent from pre-crisis levels. The Chinese Communist party’s leader, Wang Yang, uses this as an opportunity to carve a cleaner and greener Guangdong. More on this story here.

Cause Marketing Generally Works for Marketers

I’ve been a fan of cause-related marketing programs (although I typically work with smaller entrepreneurial businesses and not the Project Red and Pink Ribbon campaigns in the market). It’s clear why those of us with a marketing perspective would find a lot to love. As MC Milker wrote in our Network, consumers are interested in products tied to a cause. Since consumers respond, corporations are getting involved. Eikenberry cites IEG Inc, reporting, “Cause marketing expenditures went from almost zero in 1983 to and estimated $1.3billion in 2006″.

But for a moment, let’s think about the perspective of nonprofit organizations and fundraisers (and maybe even philosophers). Eikenberry says cause marketing “devalues the moral code of philanthropy by making virtuous action easy and thoughtless”.

Can Philanthropy Leading to Social Change?

Eikenberry is skeptical of that consumers can right the world’s wrongs. When they are buying and fulfilling their material needs and desires, “they generally have little impetus to consider…’the public good’”. She sites two studies that show that when consumers have bought a cause-branded product they are less likely to make charitable contributions and feel they have “already done their philanthropic share”. So does cause-marketing decrease or increase the amount of money going to charity? ‘hard to know, but it is definitely shifting where the money goes.

Read more of this story »

Our focus on natural ingredients was, in retrospect rather laughable as we included all sorts of what we now call, toxic ingredients, but promoted the “natural” additives. We looked for opportunities to tie into events and with charities that focused on green initiatives with an eye toward increasing sales.

In many ways that hasn’t changed.

Brands across categories, but particularly in the natural products industry are choosing charities with which to align themselves. In most cases this is an exercise in determining what the brand will stand for. The bigger the brand, the larger the charity and the more thought is given to this exercise as seen in the almost perfect launch last year of Clorox Greenworks brand.

But many brands have turned this reasoning on it’s head now and are looking at their social responsibility as the primary raisn d’etre for being. Is this a viable strategy?

Read more of this story »

…the Gates Foundation is set to expand its involvement and spend more money on influencing popular culture through a deal with Viacom, the parent company of MTV and its sister networks VH1, Nickelodeon and BET. It could be called “message placement”: the social or philanthropic corollary to product placement deals in which marketers pay to feature products in shows and movies. Instead of selling Coca-Cola or G.M. cars, they promote education and healthy living.

For years, those of us involved with cause marketing have relied on inking deals with manufacturers to support our causes and relying on government funding, public service announcements, paid advertising and public relations efforts to get our message to the people. Now a whole new era of personal responsibility has opened up new doors to new ways of getting the word out.

James Steyer, chief executive of Common Sense Media, which promotes family-oriented entertainment, said foundations typically seek to mold television programs with just advice and prodding.

“The difference here is the Gates Foundation is paying for this, that they are actually willing to pay for programming,” Mr. Steyer said.

Read more of this story »

Raising a child is difficult enough without having to shoulder the load of school budget cuts or administration downsizing in equipping classrooms with the supplies they need.  Yet a staggering number of schools rely on donations from parents, contributors or out of their own teachers’ pockets to ensure that even the most basic items are in supply.

In an effort to bring this issue to the forefront and create a vehicle for parents, teachers and schools to work together in identifying and securing the contributions they need, WellGood LLC created ClassWish.org, a place where wishes come true everyday in the form of books to art supplies.  So, I reached out to Robert Tolmach, President, whom I’d also had the pleasure of interviewing over the holidays about their ChangingthePresent.org initiative, to learn more about ClassWish and how people can get involved to help advance this important cause.

Read more of this story »

74% increase in actual purchase for a shampoo brand when associated with a cause

(47% of participants who saw the cause-related message chose the brand while only 27% of those who saw the generic corporate advertisement chose the brand)

28% increase in actual purchase for a toothpaste brand when associated with a cause

Triple bottom line entrepreneurs, of course, already know that, or at least have hoped that their efforts to give back will make a difference in sales. But, just giving back isn’t always enough.

Qualitative consumer responses showed that the issue, the nonprofit and the inherent nature of products were key factors in making cause-related purchasing decisions and helped explain why movement in (some) categories was not significant.

In other words, choose well and choose wisely, not only in the non-profit you plan to support, but in how you promote your connection and how you market your product.

Read more of this story »

The music-industry-focused marketing agency says its mission is “Effect Marketing™ (it’s what comes after Cause Marketing).” That means going beyond selling an idea that’s good for the environment or society, and getting people to actually do things that are good for the environment or society.

Read more of this story »