Equanimity

Over the last decade, there has been an undeniable trend towards promoting environmental sustainability, both for consumers and corporations. Environmental Leader (so, a somewhat biased source) states that the majority of consumers prefer to buy products from eco-friendly companies. Not only that, but employees also prefer to work for environmentally responsible employers.

But since we’re talking business, an important question to consider is: does sustainability translate to profitability?

This Vancouver Sun article talks about six B.C. businesses who would say yes. One of the examples is Vancouver-based Mountain Equipment Co-Op (MEC), about which the article said this:

In the case of MEC, a decision to ship its outdoor recreation equipment and clothing by train rather than truck led to a relative 38-per-cent reduction in greenhouse gas emissions and some cost savings.

Furthermore, MEC was nationally recognized for its environmentally sustainable practices in 2008. Another business mentioned in the article, Jawl Properties, improved building efficiencies in heating, ventiliation, air conditioning and controls programming, leading to cost savings of “23% with a four-to five-year payback on capital investment.”

"This symbol indicates {MEC} products that contain at least 50% organically grown cotton or recycled polyester, or are completely PVC-free."

MEC’s simple switch in transportation methods illustrates that it is not difficult for businesses to make the eco-shift, which could result in not only economic profit, but also a positive PR image, a winning point of differentiation with consumers. Moreover, MEC and other businesses have demonstrated that shifting to eco-friendly practices can lead to cost savings. Hopefully one day, sustainability will be the norm, rather than the exception.

Despite all its heralded success and popularity, there have always been questions surrounding Twitter and its ability to generate profits since it burst onto the scene in 2009. Twitter has been criticized for its lack of a profitable business model, despite strong venture capitalist backings and funding of $160 million.

With all the hype surrounding Social Media in the past year, especially as a business/marketing tool, it’s an important question to consider – when/how does the hype and popularity translate into monetary value?

Earlier this year, Twitter launched its advertising platform known as “promoted tweets”. Basically, companies can send out a tweet from their company accounts, and pay Twitter for the tweet to be at the top of search results in which the tweet appears. Sometimes, promoted tweets/hashtags also appear in the trending topics list.

That’s how I came across the hashtag #GroundRules, a promoted tweet from @JetBlue. For some reason it caught my eye, and clicking the tweet lead to this video:

I found this advertisement quite interesting because, rather than pushing the product, it is emphasizing a purpose: customer empowerment. This made me think back to class 1, when we discussed Ryanair and its many cost-cutting tactics. For being in an industry in which rising fuel costs and regulations are forcing airlines to charge for meals, pillows, blankets, and maybe even to use the toilet, JetBlue has chosen an interesting point of differentiation.

Currently, the jury is still out on whether Twitter’s promoted tweets are proving profitable for Twitter and the promoted companies. However, if Twitter and companies continue to work in tandem to create innovative and interesting content like above, I think there will be a time in the future when we finally stop asking, “is Twitter profitable?”.

From what I can see, tomorrow’s class will be all about Social Media in business. I’m excited, because I’m a bit of a social media nut (more so than your normal teenager). One of the preparation questions is, “Is Social Media a fad?” I immediately thought of this video when I read the question (and wouldn’t be surprised if they show it tomorrow):

While some of the figures and facts may be a little sensational (96% of Millennials? Try 96% of Millennials who have access to a computer…), I believe in the core message of the video – social media is so ingrained in so many of our lives today, that it’s hard to imagine existing henceforth without it. Kinda like the internet itself – it’s an innovation that is not going away.

The second question is: “Is social media useful for companies?”

Answering this question is not as straightforward as the first. While someone like me would be quick to jump to “yes”, part of me also wonders if there are any companies that would not benefit from using social media. Some companies don’t even have a choice – social media drags them in first, such as when Air Canada broke a boy’s wheelchair and when Southwest Airlines removed a passenger for “being too fat”.

Almost no company, brand or product is off-limits in the blogosphere/Twitter-sphere, and when you have a group of angry consumers Tweeting or blogging negatively about your company, you’d better learn how to harness the power of social media then and there, or else risk watching your brand crash and burn in a firestorm of Twitter outrage. This Mashable article offers some tips on how to avoid such situations.