Brad Burgess

Sustainability as a concept has been around for quite some time. In 1987, the United Nation's Brundtland Commission created a report with the intention of distributing resources and equity around the world. "Sustainable development," a key term coined by the group over two decades ago, has since grown to become a household term almost akin in popularity (or notoriety) to the "rise of China."

Indeed, one cannot open a newspaper or Web page now without seeing the announcement of an organization "greening" itself or demonstrating its commitment to sustainable practices. "Moving Consumers from Green Interest to Green Action," a recent study conducted by Insight Research Group, reports that 81% of respondents maintain the current focus on environmental or "green" issues is "here to stay" rather than a "passing fad," and 78% of respondents said they are "willing to make a lifestyle change for the good of the environment."

The popular consensus, with only a few dissenting opinions, is that incorporating sustainable practices into your business is not only a good way to earn respect with your stakeholders but also delivers concrete returns on investment. Having swept the Western world, sustainability is now nearly an equally important force driving business and political decisions in China.

In modern China, as in the world at large, electronic communication in the form of bulletin board systems, blogs and SMS text messages often carry more sway than traditional media. Many people are increasingly skeptical of the business community, and they have the ability to analyze situations for themselves. This grassroots influence means that companies have the opportunity to make an impact on how consumers perceive their brand, but only if sustainability efforts come across as meaningful and authentic.  

China Trends

2008 is an important year for China with the coming Olympics. The Games have undeniably brought exceptional attention to the capital, and this includes a renewed interest in improving programs to ensure Beijing’s sustainable development.

China's government leadership not only approves of programs that demonstrate sustainability but has taken active steps to guarantee that China will be well taken care of now and in the future. In China’s 11th Five Year Plan, the country set out to not only develop “harmoniously”—as government leaders have pledged to—but also move toward becoming an innovative nation rooted firmly in the principles of sustainability.

Energy efficiency and environmental care remain the largest priorities, especially in light of China’s recent environmental challenges, from the environmental impact of the Three Gorges Dam to polluted air in Beijing. Safety standards have also been a key issue this past year. Recent news that only half of China's new buildings being constructed meet national standards was a serious setback to China reaching its goal of making buildings 50% more efficient by 2010.

It is encouraging that the National Reform and Development Commission—which is charged with promoting sustainable development strategy—has presented a series of industry sectors that are to be prioritized going forward, including oil and chemical, renewable energies, material sciences and environmental technologies.

The case for sustainable development in China is strong. The government is behind it, and forward-looking businesses are aligning themselves with it.

Considerations for building a sustainability program

For companies doing business in China, sustainability should be a key ingredient of corporate social responsibility (CSR). Traditionally, CSR activities have focused on philanthropy rather than active engagement. Now, numerous MNCs are offering CSR programs that emphasize the environment, the community and employees.

Also, there is a growing tendency toward “owning” an area of CSR. This approach will be increasingly important for companies looking to stand out from the crowd as more organizations look to demonstrate commitment to China through sustainability. Instead of holding sporadic, one-time events or sponsorships that are unrelated to the company’s business strategy in China, CSR programs—including sustainability initiatives—must be clear, integrated and seamless.

Steps to sustainability

Here are specific recommendations for companies building sustainability positioning in China:

	Make a well-informed and well-researched decision to choose a particular area of sustainability-related CSR that is strategically worth pursuing in China and then seek to own it.
	Seek a trustworthy, established partner, such as a Chinese government agency that is trusted for long-term relationship building and joint program creation.
	Tie in strategy with employee relations, allowing China staff to become engaged.
	Ensure that benchmarking is built into the system. As Chinese become savvier about sustainability, they will also become more skeptical. It will be essential to make available hard data on just how sustainability initiatives deliver results rather than just engaging in promotional activity.
	Develop comprehensive intelligence around the “owned” sustainability property and build thought leadership around that approach.
	Proactively communicate what you are doing.

Clearly, sustainability and environmental issues are not going away any time soon. China has much to do as it moves from being a developing nation to being a fully developed country. Companies and organizations are wise to align their business strategy with the country’s sustainability trends. Those that do will win.

Beware of skeletons in your Internet closet

Media magazine recently carried a letter to the editor written by Wade Lundin, associate director of GolinHarris in Hong Kong. In his message, Lundin points out the power of the Internet to resurrect information and what this means for corporate reputation.

	Wade Lundin   Dear editor, Everyone talks about how the Internet spreads awareness faster than ever before. But what it also provides—for better or for worse—is shelf life. In January, a colleague showed me a front-page story in a major international daily about a prison in Cebu where officials make 1,500 inmates dance to Michael Jackson every day in order to curb aggression. But as he pointed out, this wasn’t really “news” – the “Thriller near Manila” had been on YouTube and was covered by CNN and BBC at least six months prior. A week later, Greek-Cypriot tennis player Marcos Baghdatis found himself in the middle of a firestorm at the Australian Open. He had been caught on video chanting “Turks out of Cyprus” with a number of Greek friends at a backyard barbeque in Melbourne. But that one had first been filmed over 10 months ago. Internet-fueled shelf life is a good thing when the subject is something positive like cutting down on violence in Filipino prisons. But for Baghdatis, not so much. It also isn’t good for companies whose issues have been reported on in the past. Back in the day, if a magazine or newspaper ran an inaccurate story that hurt your reputation, at least you had a chance to get a retraction. Retractions are great, but they rarely happen on the Internet. There are numerous businesses out there—energy, shipping, airline and so on—that deal with human lives every day. Thanks to that great ether filing cabinet, people are only a few clicks away from accessing all sorts of stories from years past that aren’t anywhere close to their sell-by date. Know what stories about you are out there, and don’t assume they’ll stay dead forever. You never know when those skeletons will come dancing out of your Internet closet. Wade Lundin Associate director, GolinHarris

GH Chat Room: A day in the life of Aoi Okada's mobile

In Japan, the professional’s mechanical appendage du jour is the mobile phone. Mobiles, now the most ubiquitous electronic item in Japan, have rapidly developed from the low-budget, limited-range PHS of the mid-1990s to state-of-the-art super gadgets, featuring 1seg terrestrial digital AV and high-tech data broadcasting. A public relations practitioner in Japan might not make it through the day without one of these devices, which at times seem to acquire the value and importance of an actual human being. Assistant coordinator Aoi Okada at GolinHarris in Tokyo relies on her Sony Ericsson W51S for fulfillment of her basic—and not so basic—needs. Her mobile is so busy, in fact, that it has its own schedule: 6:50 a.m.: My alarm clock mechanism kicks in and vibrates. I futilely attempt to wake my owner. 7:50 a.m.: I vibrate for the umpteenth time and finally get manually deactivated. 8:47 a.m.: I get swiped along a ticket barrier sensor at the train station, automatically transferring funds to the railway company. 9:02 a.m.: I transmit breaking news snippets from the Asahi Shimbun service, which allows my owner to do some morning tracking of media coverage while traveling on a jam-packed train. 12:23 p.m.: I download the latest hit single from the Radwimps and register the tune as the ring tone for incoming messages. 4:49 p.m.: I process a digital image sent from one of 693 contacts stored in the memory chip. 9:04 p.m.: I exchange profiles through the infrared data port with a new contact at a party—number 694. 11:13 p.m.: I am used to purchase concert tickets, yogurt and grapefruit juice at the local convenience store. 12:12 a.m.: I am dropped but don’t break. Again.

The Perfect Pitch

Lydia Lee

Name: Lydia Lee
Position: Director
Office: GolinHarris, Shanghai
Client: Nederlander New Century (NNC) Company
The Brief: Helping to promote a Broadway musical, "42nd Street," across large and smaller cities across China.

What made the pitch so interesting?

To win the task of launching a Broadway show across China, it was crucial that our pitch demonstrate a nuanced, insightful and highly creative approach. We had to show that we could successfully market an American form of entertainment to a culture and people wary of Western influence—as well as demonstrate our own grander commitment to the success of performing arts.

How did you pull off the plan?

We formed a task team to evaluate our strengths and best selling points. The resulting strategic proposal was tailored to appeal to people in the business of performing arts. It included an impressive industry and media audit, a comprehensive plan to maximize exposure and ticket sales, and positioned GH as not only a media, but cross-cultural strategist with a passion for theater and business.

Who was there?

On stage, key representatives from the GolinHarris team in Shanghai, and in the audience, the potential client.

How did you create the buzz?

We packaged our proposal in an original and exciting way—in the form of a "Playbill" booklet like those passed out at Broadway shows. Also, during the pitch, we incorporated the music from "42nd Street" into the creative portion of our presentation.

What made the pitch succeed?

It was the combination of all the elements I've described—our knowledge-base, creativity, passion and insight—that made this pitch a winning one. We strongly communicated our ability to apply these assets to the client’s future campaign.

What were the client's metrics on success?

The client was seeking a PR agency that understood the spirit of Broadway musicals and could communicate that spirit to Chinese audiences with positive reception.

What were the results?

We won it! Our team then got started on planning a multi-pronged, large-scale campaign to bring "42nd Street" to stages across nine cities in China.

Why was this a pitch to remember?

The creative and strategic work involved in the making of this pitch produced a unique, impressive product that foreshadowed the success of the PR campaign that followed. At the close of the campaign, the client named us "Best Partner." We are extremely proud of the results!