ASB Magazine

By Rick Segel

In an era when rampant and widespread corruption has spread from the government to big business and back, ASB columnist Rick Segel focuses on the continuing importance of practicing responsible business ethics.

BEWARE! There is a stranger in town!

These are the words you used to hear in old western movies. But I’m beginning to believe those words are passing through the minds of our customers every time they see another national chain settle into their community.

The first few days, or even months, that the store is open, the manager usually tries to make some attempt to become part of the community. They will join the chamber of commerce or show up for the merchant meetings, or even run some local advertising. But before you know it, they abandon their involvement because they become busy.

Busy is good. We want businesses to do business, but what are they really saying? They are too busy to bother with the “dumb” local stuff; after all, their advertising and promotions are national or regional in scope.

When Jordan Marsh Stores in the Boston area was bought by Macy’s in New York, their advertising became the same advertising that Macy’s used in the New York stores. It wasn’t a big deal, but those of us who are purists liked seeing scenes of Boston in the background, instead of the high rises of Manhattan. Please understand that this is in no way a knock on Macy’s, because they have been a wonderful corporate citizen. It’s just the continuation of the homogenization of America. Every region of our country is starting to look the same. We are losing our regional differences.

So much for standing on my soapbox and trying to bring back the good old days. This article isn’t about being good or caring or concerned about the world around us. This article is about making money—increases in revenue and decreases in operating costs, the stuff that makes executives rich from bonuses.

But as the words of the great contemporary lyrical prophet of my time, Bob Dylan, said in song, “The times, they are a-changing.”

The audience who first heard that song is now the generation of power. We are a generation that has made an impact on our children because of what we believed.

Those children are now starting to have their voices heard and the rules are starting to change. Companies in America are starting to succeed because of the good they do, from Anita Roddick at The Body Shop, who assures her customers that her cosmetics are environmentally sound, to Ryka Athletic Footwear, a women’s sneaker manufacturer that donated a portion of every sale to battered women’s’ shelters. The hottest and most difficult franchise to obtain is one from Great Harvest Bakery. It turns down 93 percent of its applicants and wants its franchisees to donate 20 percent of what they bake to charities in their community. Another example is the price leader of the century, Wal-Mart, whose ads are not just focused on price, but on their contributions to the community.

By now, you’re scratching your head wondering where in the world this piece is going. From strangers to the town, to profits, to socially-conscious activities, how do all the pieces fit together?

A few years ago, they didn’t fit in at all, but now our research tells us something different.

Customers care.

They care about their environment, they care about people, and they care about the communities in which they live. No longer is there a separation or a line, with business on one side and social responsibility on the other. The two are coming together. The term “a good corporate citizen” is relatively new and very much in vogue.

What I am saying is that being good is good business.

Due to the amount of competition we all have today, the differences between stores are less than ever before. Did corporate responsibility find us or have retailers discovered it? I believe, as I stated earlier, being a good corporate citizen has been an evolutionary process that is no longer just a nice thing to do—it has become the right thing to do, and a necessary thing to do.

Last year, I helped to start the RAMAE Awards: The Retail Association Awards of Excellence. We had seven winners from these five categories: Rookie of the Year, Advertising and Promotion, Community Service, Display, and Retailer of the Year.

The interesting thing about all of the winners was their contribution to their communities. The other intriguing thing about it was that not one of these stores had any problem finding qualified employees. As a matter of fact, one of the stores had so many people apply for jobs that they started to take volunteers who wanted to donate their time. This is unheard of, especially in these times of low unemployment. If people are willing to work for nothing, do you think the customers are loyal as well?

You bet they are!

It’s not just donating to a charity anymore; it’s getting involved in the community in which you do business.

The concept of account-specific promotions is starting to permeate large manufacturers who offer co-op advertising programs.

These promotions are designed for the specific retailer, not some off-the-shelf promotion that is designed for every store which the manufacturer supplies. The manufacturer takes the time to design a program that only their store or stores can use -—a program that is in keeping with the values and needs of the account. It works great!

Why? Well, first of all, it makes the account feel special because it was designed just for them. Second, the account can change the program as they see fit. It doesn’t affect anyone else but them. All in all, it’s a highly-successful program.

What I am proposing is simply taking the concept of account-specific and making it community-specific.

Let’s start to make our stores more responsible to the areas in which they serve.

Let’s make a difference by sponsoring contests that foster community involvement.

Let’s honor our employees who give back to their communities.

Good business is doing good. Customers want it, respect it, and more important than even those two points, they support and shop stores and businesses who care about their communities.

Will there be retailers who will do good for all the wrong reasons?

Probably, but who cares? Do it long enough and the spirit of giving captures you. But be careful; remember it is community-specific that works the best. You might think it is important to save the rain forest in Guatemala, but the best promotion is the one in your own backyard. Selecting the Mother of the Year for Mother’s Day or the Best Dad is more important.

When a supermarket in a strip center sponsors a beautiful window competition in the center to make their center more attractive, people notice.

Big Y, a supermarket chain in Western Massachusetts, recently did a promotion called Education Express. They asked their customers to select a school to which they would like a donation made. Customers earned points for their school by selecting different products that manufacturers would co-op with donations. At the end of the year, they were able to give over $2,000,000 to local school charities. These programs become a Win/Win/Win affair. The charity benefits, or if it is a case of a contest, you have a winner. The shoppers win. And yes, of course, the store ends up doing more business while they have done something good.

What a way to do business!