his was Baptista’s revenge protest against a betting industry he claims regularly exploits people like him—those that have lost thousands of pounds betting on FOBTs and are encouraged to keep doing so, regardless of the consequences.
His actions, while destructive and illegal, garnered a wealth of sympathy across the media, raising serious ethical questions about the validity of FOBTs in high street betting shops. A lunchtime flutter on the horses has become legend across the generations. But offering the option of pouring hundreds of pounds into an algorithm- controlled giant computer is a relatively new phenomenon—and one that has raised concerns, particularly among local councillors and MPs. They continually face questions as to the social benefits (or otherwise) of betting shops popping up on every high street across the UK, especially when two million people are said to be addicted to gambling or at risk of developing a problem.
Of course, it is a narrative of which the gambling industry is only too aware. Being a socially (and environmentally) responsible business that plays a useful role for people and the communities in which they live, is front of mind for many CEOs—even those running companies in a sector constantly battling claims it is devoid of any positive social value whatsoever.
For those of you still unsure about whether it's worth ‘doing sustainability’ (largely defined as investing in measures to ensure your organisation is fit, proper and able to stay competitive for the long-term), you can stop it right now. More and more evidence suggests that those companies proactively looking for ways to make sure they are viable and attractive entities 50 years from now are already reaping the benefits. Just look at the consumer goods giant Unilever.
When addressing shareholder meetings, the softly spoken boss Paul Polman sounds more like Bono than a CEO, opting for soliloquies on global warming rather than detailed analysis of quarterly financial returns.
For the past six years the business has been building what it calls ‘Sustainable Living’ (SL) brands, such as Lifebuoy, Ben & Jerry’s, Dove and Hellmann’s—businesses with a social or environmental purpose strongly attached to their operations or customers. For example, the ice cream maker Ben & Jerry’s exists to “make and sell the finest quality ice cream” all the while sourcing natural ingredients and making sure its operations have zero negative impact on the planet.
All of the company’s brands are said to be focused on reducing their environmental footprint and boosting their positive social impact. Those that are furthest ahead are tagged as ‘SL brands’ and, collectively, they grew over 50 per cent faster than the rest of the business last year, delivering more than 60 per cent of Unilever’s growth. “Our results show that sustainability is good for business,” says Polman, pointing to a spurring of innovation, strengthened supply chains and reduced costs.
The telecoms business BT is another good example. It has spent plenty of energy and resources in recent years making sure its product and service offering can help its business customers be more responsible and efficient too. As part of its 3:1 goal, BT's consumer operations and products that contribute to carbon savings now represent 22 per cent of annual revenues and are worth more than £5 billion.
Waking up to the realisation that customers, of all shapes and sizes, care about what it is their favourite brands are doing to create a better world, or not, companies should know that CSR (Corporate Social Responsibility—or whatever you want to call it) is increasingly valuable.
And that’s largely because the next generation of consumers and customers want to know why companies exist, how they operate and whether their core business is having a negative impact on people and planet. A new study by Cone Communications reveals that 87 per cent of consumers say they would purchase a product because a company advocated for an issue they cared about, while more than 75 per cent say they would boycott a product or company if the brand supported an issue contrary to their ethics and values.
It is a trend only likely to grow with Millennials and the Gen Z putting their money where their mouths are, purposefully backing more socially responsible brands over any others. Even if they don’t care about issues like climate change, pressured by peers on social media, they know they ought to so are more easily swayed to ‘do the right thing’.
So, if CSR has real value, why aren’t more companies talking about the good, positive things they are doing?
A lack of confidence and an absence of good, simple storytelling lies at the heart of the lacklustre response by all but a handful of progressive businesses. Ultimately, customers want their relationships with brands to possess the very same qualities they value in their personal relationships: Trust, empathy, respect, openness.
But in a corporate world defined by quarterly growth stats, companies blindly believe that acting more human will destroy any chance of economic success—a view that flies in the face of a growing mountain of evidence.
Maybe it’s too early for the likes of William Hill and Ladbrokes to gamble on ripping out their valuable FOBTs, a move that would stake a claim to the moral high ground.
But what might the future CSR payback look like among a consumer base keen to defend and support companies that take an ethical stand? Might we see gamblers flock in unison to any betting shop willing to gamble on first mover advantage in positively responding to Baptista’s argument that they in fact may be destroying the lives of society’s most vulnerable.
In a world of continued divestment from companies unwilling to accept and respond to environmental and social risks, the corporate world can no longer bury its head in the sand.
Instead, it must rise in response to the big challenges the world faces—from poverty and human rights abuse, to global warming and water scarcity. To avoid being left behind forever, companies must change their course. But in doing so they must engage their customers effectively—a task that demands transparency, accountability, honesty and, above all else, fantastic communication and storytelling to bring them along for the ride.
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