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The role of public relations in sustainable development

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The role of public relations in sustainable development

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Content “The Role of Public Relations in Sustainable Development”
BY
BELÉN CASTILLO
A Thesis Presented to the FACULTY OF THE USC ANNENBERG SCHOOL OF
JOURNALISM AND COMMUNICATION AT THE UNIVERSITY OF SOUTHERN
CALIFORNIA In Partial Fulfillment of the Requirements for the Degree MASTER OF ARTS
IN STRATEGIC PUBLIC RELATIONS
December 2021
Table of Contents
List of Figures................................................................................................................................................ii
List of Tables..................................................................................................................................................ii
Abstract..........................................................................................................................................................ii
Introductions..................................................................................................................................................1
The Economic Advantage of Sustainability......................................................................................2
The Role Public Relations and Marketing in Sustainable Development…………………………..2
Triple Bottom Line……………………………………………………………………………..…..5
The Power of Sustainable Marketing Orientation (SMO).............................................................................5
Strategic Integration……………………………………………………………………………….8
.
Societal Engagement…………………………………………………………………….,………..9
Ethical Capabilities………………………………………………………………………………..9
Additional Analysis: PESO ………………………………………………………………………12
Examples…………………………………………………………………………………………………..12
Patagonia…………………………………………………………………………………………………..12
Overview………………………………………………………………………………………….12
Implementation of the Sustainable Marketing Orientation……………………………………….13
Additional Analysis: PESO……………………………………………………………………….19
Grounds For Change………………………………………………………………………………………23
Overview………………………………………………………………………………………….23
Implementation of the Sustainable Marketing Orientation……………………………………….23
Additional Analysis: PESO……………………………………………………………………….28
Creating a New Company With Sustainable Marketing Orientation……………………………………...38
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Alokino…………………………………………………………………………………....……....33
Overview……………………………………………………………………………………….....33
Implementation of the Sustainable Marketing Orientation and PESO……………..…………….34
Conclusion…………………………………………………………………………………………..…….51
List of Figures
Figure i: Marketing’s Contribution to Economic Well-Being
Figure ii: Examples of Sustainability Marketing Activities
Figure iii: Sustainable Marketing Orientation
Figure iv: Beach Clean-up Template
Figure v: Brand Partnership - Siam Circle Example
Figure vi: Supply Chain Transparency Template
Figure vii : Schedule of Local and Alokino Template
Figure iix: Fundraiser Template - Surfrider
Figure xi: Alokino Brand Values Template
List of Tables
Table i: Sustainable Marketing Orientation
Table ii: Sustainable Marketing Orientation - Patagonia
Table iii: PESO Model - Patagonia
Table iv: Sustainable Marketing Orientation - Grounds For Change
Table v: PESO Model - Grounds For Change
Table vi: Sustainable Marketing Orientation - Alokino
Table vii: PESO Model - Alokino
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ABSTRACT
As sustainable development becomes essential for business globally, it is apparent that Public Relations
plays a key role. In this paper, I will discuss the specific role of Public Relations in sustainable
development. Then, I will analyze Patagonia, a highly successful sustainable clothing company and one of
their partners Grounds for Change using the Sustainable Marketing Orientation framework (SMO) by
Andrea Lucic. Finally, using these findings, I will implement the SMO framework along with Public
Relations strategies and tactics for a new sustainable gelato company, Alokino.
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“Waste does not exist in nature, because each organism contributes to the health of the whole. A
fruit tree’s blossoms fall to the ground and decompose into food for other living things. Bacteria
and fungi feed on the organic waste of both the tree and the animals that eat its fruit, depositing
nutrients in the soil that the tree can take up and convert into growth. One organism’s waste
becomes food for another. Nutrients flow perpetually in regenerative, cradle to cradle cycles of
birth, decay and rebirth. Waste equals food.” – William McDonough, Architect, Co-Author of
Cradle to Cradle: Remaking the Way We Make Things (2002).
Introduction
The term “sustainability” stands for “the development that meets the needs of current
generations without compromising the ability of future generations to meet their own needs,”
according to the United Nation’s report “Our Common Future.” The United Nations also
announced that we are the last generation that will be able to stop the course of climate change.
The need for a societal shift to sustainable development is not only clear but also essential. The
urgency of our situation is painted perfectly in Harvard MBA professor Rebecca Henderson’s
book “Reimagining Capitalism in a World on Fire:”
“The world is on fire. The burning of fossil fuels—the driving force
of modern industrialization—is killing hundreds of thousands of people,
while simultaneously destabilizing the Earth's climate, acidifying the
oceans, and rising sea levels. Much of the world's top soil is degraded, and
demand for fresh water is outstripping supply. Left unchecked climate
change will substantially reduce GDP , flood the great coastal cities and
force millions of people to migrate in search of food. Insect populations are
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crashing and no one knows why—or what the consequences will be. We are
running the risk of destroying the viability of the natural systems on which
we all depend.”
In the face of any major crisis lies the potential for reinvention. We have the opportunity to
imagine and create a world where humans live in harmony with their surrounding environment.
In many places worldwide, the shift to a circular economy has already begun. Now we just need
the tools and strategies to complete the journey.
The Economic Advantage of Sustainability
In business, sustainable development is not only growing in popularity but it will be
necessary for a company’s future survival. Companies are realizing that becoming more
sustainable provides economic advantages (Auger, Devinney, Louvierre, & Burke, 2008; Hampl
& Loock, 2013; Hult, 2011; Kolk, 2016; Peloza & Shang, 2011) and increases their value
(Hillman & Keim, 2001; Klassen & McLaughlin, 1996; Koehler, 2006; Mathur & Mathur, 2000).
Research shows ⅔ of the “Globe’s Top 100 Most Sustainable Corporations” have been
consistently outperforming their less sustainable competitors (D. K. Nguyen and S. F. Slater).
Also, according to Edelman's Trust Barometer, trust is essential to innovation; sustainable
companies are the most trusted companies in their sectors. Creating a sustainable enterprise in
our modern world requires time, awareness and commitment throughout every level of a
company; it requires a holistic approach that engages every aspect of an organization.
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The Role of Public Relations and Marketing in Sustainable Development
Public relations and Marketing play a key role in the process of sustainable development.
Practitioners in these fields not only manage a company’s relationship with their customers, but
also with their stakeholders and provide key value to a broader set of economic, environmental,
and social issues. Inside a company, public relations activities should be used to create a
corporate philosophy that guides the way employees think and behave; this is a key focal point in
a company’s pursuit of sustainable development (S. D. Hunt, 2017).
On a macro scale, public relations and Marketing in sustainable development provides a
variety of changes in everyday behavior, motives, value systems and needs (Rudawska, 2019):
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Figure 1: Marketing’s Contribution to Economic Well-Being. Source: based on W. L. Wilkie and
E. S. Moore (1999).
In this paper, I will focus on the value of public relations (hereafter PR) in sustainable
development on a micro level. It is important to point out that for many years the true power of
Public relations and Marketing in a company has been greatly curtailed - by using it to
superficially appeal to consumers rather than also using it to benefit society (Rudawska, 2019).
PR plays a key role in developing intangible assets, which include some of the most important
foundations in any organization, such as authentic customer relations, stakeholder networking,
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market position, corporate values, and managing brand and corporate image. PR professionals
are also closest to the consumer, which is one of the many reasons the road to sustainable
development should lead with PR.
Rather than solely focusing on functional or emotional values, the work of both public
relations and marketing should include ethical, environmental, and social values. The need for
this shift has been made apparent by the severity of broader global environmental and social
dilemmas, which have been driven by the current market. Instead of our current practices,
business processes should be designed in support of a global culture of sustainability. To
summarize businesses should work with PR professionals to perform the following (Rudawska
2019):
Figure 2: Examples of Sustainability Marketing Activities: Edyta Rudawska
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Triple Bottom Line
The Triple Bottom Line is one of the most common ways that a company measures its
sustainability strategies. Triple Bottom Line allows companies to report and analyze their
Corporate Social Responsibility (CSR) or overall sustainability efforts through three pillars:
people, planet, profit. The Triple Bottom Line provides a firm with a useful initial structure to
analyze their business strategies, but there has been a variety of documented critiques regarding
the limitations of Triple Bottom Line analysis. The goal of many of these critiques is to push
firms to not only see sustainability as an aspect of business but to profoundly embrace
sustainability into the framework or foundation of a firm (Shnayder, 2015).
The Power of Sustainable Marketing Orientation
The Sustainable Marketing Orientation Framework developed by Andrea Lucic (2020)
evaluates a company's communication strategies beyond the Triple Bottom Line pillars. Instead,
Lucic developed a triple responsibility approach to evaluate a company’s operations: strategic
integration, societal engagement, and ethical capabilities. This method can be used to more
specifically evaluate a company’s Public Relations and Marketing strategies. In general,
market-orientation of a corporation is defined as the ability to successfully achieve the highest
profitability and simultaneously create maximum value for its customers (Kumar, 2012).
However, sustainability-oriented business strategy is focused on the effective and efficient use of
global resources to reach these goals and also create competitive advantages through sustainable
efforts (Lucic, 2020). The sustainability-oriented approach allows a company to reconcile profit
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maximization with the goal of bettering the society we live in.
Figure 3: Sustainable Marketing Orientation: Andrea Lucic, 2020
Strategic Integration
Strategic Integration represents the incorporation of sustainability values and ethics into the
firm's strategy, including its mission of shared values. “Sustainable integration shifts away from
the conservative theory of sole profitability. Instead, operations are done based on triple
responsibilities - economic, environmental, and social” (Lucic, 2020). Rather than sustainability
just being an aspect of the company, strategic integration means internally building a sustainable
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culture and having a sustainability-embedded foundation. Essentially, strategic integration
represents the culture of sustainable marketing orientation.
Societal Engagement
Societal engagement stands for developing strategies that engage stakeholders in the process of
value delivery. Primary stakeholders include suppliers, current and potential employees, owners,
and customers; they are any individual that has a formal, professional, or contractual relationship
with the company (Lucic, 2020). A company’s own employees are one of the most valuable
stakeholders and should never be overlooked. Secondary stakeholders are important as well
because these groups have the potential to mobilize overall public opinion of the company.
Secondary stakeholder involvement could include active participation within the local
community. Marketing orientation that closely involves these stakeholders is necessary when
creating an establishment that prioritizes ethical decision making in public relations and
Marketing activities.
Ethical Capabilities
Ethical capabilities represent the broader concept of morality that must be implemented in all
sustainability oriented marketing actions. Ethical marketing capabilities are strategies that are
oriented towards “the right and the good” and fall within the consideration of the Triple Bottom
Line: people, planet, profit. Depending on the industry being examined, the ethical capabilities
and impact of a company’s actions will differ. For some companies, ethical marketing could be
applied through an emphasis on supply chain transparency, addressing specific climate change
issues with their product, or with strategizing with a goal to reduce poverty. Maximizing ethical
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capabilities requires a company to align all products, pricing, communication, and selling
activities to be aligned with the highest criteria of sustainability ethics (Lucic, 2020).
Methods
The following statements from Andrea Lucic’s publication of Measuring Sustainable Marketing
Orientation have been thoroughly analyzed and finalized as key indicators for measuring the
success of a company’s sustainable marketing orientation. For the primary research in this paper,
I have applied Lucic’s theories to three different case histories.
Strategic Integration
1 My department’s success is measured by the combination of financial, environmental and
social indicators.
2 Sustainable development is embedded into values of our department’s culture.
3 In my department employees are being motivated to achieve environmental and social
goals in addition to the financial ones.
4 We are committed to monitoring customer satisfaction.
5 We monitor the impact of our products/services on the environment.
6 We monitor the impact of our product/services on the community.
Societal Engagement
1 We work with various stakeholders in order to understand their expectations that have been
placed in front of us.
2 We select suppliers based on the set of environmental, social and economic criteria.
3 We encourage personal and professional development of our employees through training,
career planning etc.
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4 We participate in the development and preservation of the local cultural and historical
heritage.
5 We prefer the purchase and use of environmentally friendly products and services.
Ethical Capabilities
1 We act responsibly and ethically when pricing our products/services.
2 Our customers/clients always have full information about our offerings.
3 Attributes of our offerings are clearly, accurately and honestly communicated to
consumers.
4 We are ethical and honest in our sales activities in order to build long-term partnerships.
Summary of Sustainable Marketing Orientation
To summarize, companies who run their public relations and marketing in a sustainable way
should do the following:
(1) Embed sustainability into the values and ethics of a firm's foundation.
(2) Deeply engage with the sustainability interests of a broad array of their primary and
secondary stakeholders while finding ways to motivate them to engage back with the
organization and issues that are being tackled.
(3) Integrate and maximize ethical sustainable practices by finding moral and sustainable
solutions at every level of a company’s functions.
Widespread mutual company understanding of the complexity and flexibility involved in a
long-term perspective is necessary to maximize sustainability efforts. Strong leadership and
culture are vital to embrace the opportunity cost of sustainable market orientation. By cementing
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a foundational framework based on sustainability a company will then be able to communicate
authenticity at the highest levels; this will ensure the credibility and trust that are so fundamental
to the success of public relations and marketing.
Additional Analysis: PESO Model
The PESO Model is an all-encompassing model that represents the 4 categories of
communication: paid, earned, shared, and owned. These four media channel categories serve as a
guide to analyze how to reach the stakeholders that matter, outside and inside an organization. In
addition to Andrea Lucic’s Sustainable Marketing Orientation framework, the PESO model
reveals how sustainable public relations and marketing efforts were communicated.
In the following sections, I will use the frameworks defined above to examine and analyze the
sustainable PR practices of three different companies: Patagonia, and Grounds for Change, then
apply the same rigorous analysis to a newcomer to the marketplace, Alokino.
Patagonia
Overview
Founded in 1973, Patagonia is an American clothing company that has anchored its entire
existence on being a brand that lives in purpose. Beginning with Patagonia’s foundational
value-based company culture, to its sustainable apparel, to the over 1,000 grassroots
environmental organizations it supports around the world - the company embodies many of the
elements in the Sustainable Marketing Orientation. Patagonia has a four-strand mission statement
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that guides every aspect of its marketing strategy: “build the best product, cause no unnecessary
harm, use business to protect nature, and not be bound by convention” (Patagonia, 2020). Alex
Weller, a Patagonia Marketing Director, stated, “You can’t reverse into a mission and values
through marketing. The organizations that are struggling with this are probably the ones that are
thinking about marketing first” (Weller, 2018). Patagonia has an intentionally challenging and
forward-thinking mission in order to push the boundaries of what currently exists - a mission
includes not only the planet and ecological crisis but also all of society and the people within it.
Also, Patagonia’s new CEO stated that the company vision board extends 100 years as the brand
thinks and plans over very long-term horizons. Patagonia strategists understand that Public
Relations and Marketing is deeply complex, and purpose driven initiatives and campaigns begin
at the root of a company: in its mission statement and community culture. The information
included in the framework is from Patagonia.com and Patagonia Annual Benefit Corporation
Report Fiscal Year 2019.
Strategic Integration
1 My department’s success is measured by the combination of financial, environmental and
social indicators.
- Patagonia is a certified B Corporation that uses the “B-Impact Assessment” to measure
the impact of its business practices. The Assessment is scored out of 200 possible points
and it comprehensively covers 5 categories: governance, workers, community,
environmental, and customers. In 2019 Patagonia scored 151.4 points and won several B
Corp Honors including the list for Best for the World Overall
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2 Sustainable development is embedded into values of our department’s culture.
- Patagonia’s main business statement is, “We’re in business to save our home planet.”
- “1% for the Planet” is a public commitment Patagonia makes: to contribute 1% of its
annual net revenues to nonprofit charitable organizations that promote environmental
conservation and sustainability. The company also calls it the “self-imposed Earth tax.”
- In 2019 Patagonia donated the full $10 million dollars they received as a result of the
Trump administration’s corporate tax cuts.
- $116 million has been given to support environmental work since Patagonia began
3 In my department employees are being motivated to achieve environmental and social
goals in addition to the financial ones.
- 450 Patagonia employees are actively involved in grant-making and choosing which
environmental organizations Patagonia supports.
- Patagonia employees are involved in 17 different groups that are working to improve
standards throughout the apparel and food industry, focusing on topics such as
responsible leather production, regenerative agriculture, organic cotton etc.
- During the timeframe I analyzed, Patagonia employees had spoken at 93 conferences at
universities, sustainable and eco-fashion events, outdoor industry gatherings, fabric and
textile conferences, and others to share company environmental goals).
- NYC and Connecticut retail employees spent 300 hours at nonprofit composting sites to
bring knowledge about composting back to their stores.
4 We are committed to monitoring customer satisfaction.
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- Patagonia guarantees that any item that doesn’t look or perform to satisfaction can be
repaired, replaced, or refunded.
- Reviews from customers are public on their website.
5 We monitor the impact of our products/services on the environment.
- Patagonia plans to be a completely carbon-neutral company by the year 2025.
- “The Cleanest Line” is a company made public blog that discusses various social and
environmental issues including Patagonia’s supply chain.
6 We monitor the impact of our product/services on the community.
- Patagonia is recycling to lower emissions: in 2019 68% of fabrics were made with
recycled materials, cutting emissions by 20,000 tons.
- Since 1996 all of Patagonia’s virgin cotton has been grown organically without the use of
harmful chemicals.
- Patagonia is investing and testing ways to reduce greenhouse gas emissions through
Regenerative Organic Agriculture practices.
- 100% of retail store receipt paper in the US is recyclable and printed with nontoxic ink.
Societal Engagement
1 We work with various stakeholders in order to understand their expectations that have been
placed in front of us.
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- Patagonia alongside Dr Bronner’s, the Rodale Institute and a coalition of like-minded
farmers, ranchers, brands, and nonprofits created the Regenerative Organic Certification.
With a board made up of experts in farming, ranching, soil health, animal welfare and
farmer and worker fairness, the Regenerative Organic Alliance will be regularly
reevaluating certification requirements.
- Patagonia is also on the B Corporation board that meets to shape short- and long-term
collective action plans to address the threats of climate change.
- 124 teams of university students (in Haas School of Business at UC Berkeley)
participated in the 2019 4th Annual Patagonia Case Competition to create solutions to
lessen the environmental impact of single-use packaging for the apparel and food
products by 2025.
2 We select suppliers based on the set of environmental, social and economic criteria.
- For the last 16 years Patagonia has posted a public list of all the factories they work with
worldwide, which remains a leading practice in the fashion industry.
- 54% of styles are now Fair Trade Certified, up from 24% in FY18.
3 We encourage personal and professional development of our employees through training,
career planning etc.
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- Employees at Patagonia have spent 14,312 hours volunteering with environmental groups
as part of Patagonia’s summer-long environmental internship program. The program
allows fully paid leave of up to two months to work for a non-profit environmental
organization.
- In 2018 Patagonia Europe launched its Earth University Program that allows employees
to work with some core company value questions through a series of experiences to help
figure out a way to solve the existing tension of growing a business and reducing impact
on the environment.
4 We participate in the development and preservation of the local cultural and historical
heritage.
- There are 166 organic cotton farmers involved in Patagonia’s Regenerative Organic
Certification pilots in India (Patagonia, Annual Benefit Corporation Report, FY19).
- Patagonia has donated $5,000,000+ in grants to groups fighting to protect lands and
waters.
5 We prefer the purchase and use of environmentally friendly products and services.
- 31% of Patagonia products are made out of recycled materials, 16% are made of cotton or
other plant-based materials, 5% are made of wool and the remaining 48% are made of
virgin petroleum-based products (polyester/nylon).
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- By running its business with high value for the environment, Patagonia has been able to
attract similar minded people who do not respond to superficial marketing triggers of
promotion and price reduction.
Ethical Capabilities
1 We act responsibly and ethically when pricing our products/services.
- Patagonia received a 9.12 out of 10 against its internal Patagonia Design Quality
Attributes rating system considering 212 new and redesigned products from Fall 2019.
2 Our customers/clients always have full information about our offerings.
- Patagonia has donated to the Ocean Wise Plastics Lab to investigate microfibers.
Microfibers are the tiny textile particles that fall from garments over their lifetime, and
the goal of the project is to research and understand them better in order to reduce them.
3 Attributes of our offerings are clearly, accurately and honestly communicated to
consumers.
- Patagonia’s values of adventure, functionality, and responsibility are recognized and
appreciated by customers who share similar values.
- Former Patagonia CEO, Michael Crooke, explains, “Customers become advocates of
brands because they develop an emotional connection with their core purpose. Brands
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that elicit advocacy provide a value beyond just product quality and experience. This
connection is something that deserves analysis, as it is the foundation of true loyalty.”
4 We are ethical and honest in our sales activities in order to build long-term partnerships.
- Patagonia has released over 40 product care and repair guides in six languages available
on WornWear.com to make products last as long as possible.
- Patagonia has 72 global product repair centers where they fixed over 100,000 items last
year.
- Patagonia has made a commitment to make sure all wages paid to apparel workers are
living wages (one that allows someone to afford decent food, water, housing, healthcare,
education, clothing, transportation, childcare and other essential needs including saving
for unexpected events).
- 50% of Patagonia board members are women.
Additional Analysis: PESO Model
Patagonia’s success both economically and in its sustainability, efforts can be attributed to the
public relations and marketing strategies. The PESO Model organizes all media channels into 4
categories: paid, earned, shared, and owned. This analysis shows how Patagonia communicated
its sustainability efforts to stakeholders.
Paid
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Media Channel Message
New York Times Advertisement ● “Don’t Buy This Jacket” Campaign
was one of the brands only and most
famous paid ads; Patagonia published
a full page advertisement on the NY
Times telling viewers to not buy its
products. Below an image of the
jacket the company exposed the
wasteful process necessary to make
the product. Sales rose 30% following
the campaign (Farre, 2020).
Facebook Ads ● Advertisements are promoting
community outreach and advocacy
campaigns.
● Patagonia has spent &999,213 on
Facebook Advertisements.
● Ex: “Join Patagonia grantee Center for
Biological Diversity in calling on
California decision-makers to protect
mountain lions under the state’s
Endangered Species Act. Add your
voice by April 16 to help ensure the
long-term survival of this iconic
species.”
● Educational advertisements about
plants, animals, and nature.
● Ex: “Join Patagonia grantee Rocky
Mountain Wild for a virtual discussion
on May 13 to learn about Colorado's
pika populations, threats to their
survival and how you can take action
to protect this vulnerable species.”
Earned
Media Channel Message
Patagonia.com/ambassadors ● Patagonia has a wide range of outdoor
activity athletes in their ambassador
program. Its athletes not only promote
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the product but are stated to be
integral to the company’s product
development and product testing. The
ambassadors work closely with the
design department to test, refine, and
validate products in some of the
harshest remote locations.
“V ote the a--holes out” tags on clothes ● Patagonia came up with a unique way
of motivating their customers to vote
and push their concerns for the
environment. Inside their 2020 Men’s
and Women’s Regenerative Organic
Stand-Up Short’s tags they wrote
“V ote the a--holes out” which was
directed at any party who denied or
disregarded the climate crisis and
ignored science. The tags were widely
shared on social media platforms and
news articles.
Recognition for sustainable practices ● The more Patagonia rejects
consumerism, the more the brand
sells. Patagonia’s sustainability efforts
have been recognized globally and it
remains one of the most successful
sustainable brands in existence.
Shared
Media Channel Message
Instagram: @Patagonia
(Also has location accounts that curate
contents for specific cities such as
@patagoniatoronto. These accounts post
about specific events happening in the
community to engage people in
environmental activities.)
● “Buy Less, Demand More”
Consumers have the power to change
the way clothes are made by buying
less clothes, buying used clothes, and
demanding more fair trade, organic,
and recycled products.
● User Generated Content
Patagonia reposts outside content
related to outdoor activity: hiking,
skiing, surfing etc. and landscapes to
promote nature's vibrancy.
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● V oting participation and activism posts
that are related to environmental
issues such as drilling in the arctic,
environmental racism, national park
protection etc.
● Educational posts that discuss topics
such as Greenwashing
Twitter: @Patagonia ● “Buy Less, Demand More”
Campaign is also promoted on Twitter
● V oting participation and activism
tweets that are related to
environmental issues such as drilling
in the arctic, environmental racism,
national park protection etc.
● Retweets of User Generated Content
related to outdoor activity and
landscapes
Facebook: ● Sharing personal user stories, articles,
and other content regarding
environmental activism,
environmental education, or outdoor
activities.
Owned
Media Channel Message
Patagonia.com ● Showcases brand and values before
product.
● “We’re in business to save our home
planet: Join Us”
Patagonia has resources on their
website to help you find and volunteer
with grassroot groups in your local
community based on your location.
Wornwear.patagonia.com ● Worn Wear is a site that fixes, sells
and exchanges used Patagonia items
and encourages consumers to extend
2 1
the life of their gear.
Films ● “Public Trust”
A film about the Fight for America’s
Public Lands.
Summary
Although Patagonia has famously told the public not to buy its products in an attempt to fight
mindless consumerism, the company continues to show an increase in sales year after year.
Patagonia is a value driven company that attracts a loyal customer base due to their authenticity
and the way they communicate it. The Sustainable Marketing Orientation analysis reveals that
Patagonia’s brand authenticity is true to its core.
The next company I am going to analyze is a partner company of Patagonia named Grounds for
Change.
Grounds For Change
Overview
One of Patagonia’s partners is a family-owned and operated coffee roasting business named
Grounds for Change. Grounds for Change Coffee makes 100% fair trade, organic coffee that is
roasted in small batches to ensure the highest quality possible. Grounds for Change is located in
Seattle but has a network of global stakeholders that are committed to sustainable business
practices. The following information was taken from the company website
(groundsforchange.com).
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Strategic Integration
1 My department’s success is measured by the combination of financial, environmental and
social indicators.
- Grounds for Change is a certified B Corporation.
- All of our coffee is certified Fair Trade and carbon-free.
- Grounds for Change organic certification meets the strict Organic Processor Standards
enforced by the USDA and the Washington State Department of Agriculture.
- Grounds for Change is on the board of the Green America Business Network Leadership
Forum.
2 Sustainable development is embedded into values of our department’s culture.
- Co-Founder of Grounds for Change Kelsey Marshall stated, “Do what you feel is right
for people and the planet. That will help you maintain a loyal customer base and help
expand positive change in the world.”
3 In my department employees are being motivated to achieve environmental and social
goals in addition to the financial ones.
2 3
The following are examples of tangible company actions being completed to achieve their
sustainability goals. At Grounds for Change, we:
- Use 100% renewable energy and off-set all of our CO2 emissions, including those from
operations, packaging, inbound freight and outbound shipping to customers.
- Compost all of our organic waste including coffee grounds, coffee filters and food scraps.
- Purchase and print on paper made from 100% recycled content and recycle all office
paper, toner cartridges, cardboard, glass, metal and plastic.
- Recycle all of our empty burlap coffee bags by donating them to local organic farmers for
weed suppression and erosion control;
- Reuse, all of our coffee chaff, the organic by-product of the roasting process, by giving it
to local, organic farmers to be used as a nitrogen-rich soil amendment; and
- Reuse all inbound freight pallets by donating them to a local business that rebuilds them
for reuse.
- Donate well over 1% of our gross annual sales to social and environmental organizations
as part of our membership with 1% For The Planet.
- Work closely with organizations promoting positive change including Rainforest Trust,
Seattle Audubon Society, Save Our Wild Salmon, Global Partnerships, Cafe Femenino
Foundation and many other local and national non-profits
4 We are committed to monitoring customer satisfaction.
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- Grounds for Change features a review system on its website along with a link to contact
their customer service team.
5 We monitor the impact of our products/services on the environment.
- We specifically require that all producers have a Fairtrade Labeling Organization (FLO)
Certificate that is in good standing, the validity of which is verified on a regular basis.
6 We monitor the impact of our product/services on the community.
- The B Impact Ratings System sets a benchmark for social and environmental impact.
- We strive to work with the same fair trade coffee growing cooperatives every year to help
provide predictable sales volumes to these smallholder producer groups. In several cases,
we have worked with the same groups every year since their own formation.
Societal Engagement
1 We work with various stakeholders in order to understand their expectations that have been
placed in front of us.
- As a Certified B-Corporation Grounds For Change meets formalized requirements set by
the organization in order to meet the highest environmental and social standards possible.
2 We select suppliers based on the set of environmental, social and economic criteria.
2 5
- Fair Trade and B-Corporation certification requires Grounds For Change to carefully
monitor the environmental, social, and economic effects of its supply chain.
3 We encourage personal and professional development of our employees through training,
career planning etc.
- Grounds for Change is family owned and operated. Employees are empowered as human
beings before workers.
4 We participate in the development and preservation of the local cultural and historical
heritage.
- Local coffee-growing communities directly benefit from the purchases of Grounds for
Change coffee due to careful sustainable practices.
5 We prefer the purchase and use of environmentally friendly products and services.
- Grounds for Change only produces 100% Fair Trade coffee that is also Carbon Free
Certified. Additionally, most of the coffee is grown in shaded conditions that help support
a healthy habitat for migratory birds.
Ethical Capabilities
1 We act responsibly and ethically when pricing our products/services.
2 6
- Like Patagonia, Grounds for Change follows 1% for the Planet meaning over one percent
of total annual sales are donated to environmental non-profit organizations.
2 Our customers/clients always have full information about our offerings.
- We promote many of the cooperatives and their internal accomplishments to our
customers and work with our importers to advocate for close communication relating to
quality and desired cup profile.
3 Attributes of our offerings are clearly, accurately and honestly communicated to
consumers.
- Grounds for Change supply chain information and coffee sourcing location can be found
at groundsforchange.com.
4 We are ethical and honest in our sales activities in order to build long-term partnerships.
- Since 2004, Grounds for Change has partnered with women coffee growers in Cafe
Femenino, located in rural Peru. Women don’t often benefit from Fair Trade programs, so
Grounds for Change promises to give the women in this area agency on how the money
traded for coffee beans is spent. Strengthening communities in coffee-growing areas of
Latin America and Africa is a vital part of the Grounds for Change vision.
2 7
Paid
Media Channel Message
Facebook Advertising ● Advertisements promote their
certifications and production process.
● Grounds for Change has spent $2,762
in Facebook Ads.
● Ex: “Every single bean that we roast is
fair trade certified, organic certified,
and carbon free certified. Freshly
roasted every day since 2003.”
● Ex: “We want to draw attention to
FAIR labor practices on this Labor
Day weekend. Grounds for Change
has been roasting exclusively fair
trade organic coffee since our
inception 16 years ago.”
● “Giving Tuesday: We donate $5 per order
to Rainforest Trust for every order placed
today. No coupon necessary.”
Earned
Media Channel Message
Groundsforchange.com ● As well as listings for products and
locations, Grounds for Change has a
thorough explanation of their
sustainability efforts included in their
website.
Shared
Media Channel Message
Instagram: @groundsforchangecoffee ● Caption: “TFW your Fair Trade
auditor says ‘Congratulations, it's the
first time I’ve seen 100%.” Photo
included shows Grounds for Change
2 8
Fair Trade scoring.
● Post promoting coupon code
‘FOUR-ACRES’ that saves buyers
10% off coffee, plus all uses of the
coffee will be tallied to go towards
protecting four acres of rainforest.
Other promo codes with similar
donations for various non- profits.
● Posts including descriptions of the
various national parks and nature
reserves that buying coffee from
Grounds for Change is helping.
Facebook: Grounds for Change ● The same posts from Instagram are
also posted on Grounds for Change
Facebook page.
Owned
Media Channel Message
groundsforchange.com ● Showcases brand and values before
product.
● Under ‘About Us’ Grounds for
Change carefully lists its sustainability
efforts with tabs including: ‘About
GFC’, ‘B Corporation, 1% For The
Planet’, and ‘Coffee Sourcing’.
● Grounds for Change thoroughly
explains what and how they are
fighting to protect the environment
through their coffee business.
2 9
Creating a New Company with Sustainable Market Orientation
By analyzing a well-established company like Patagonia, similar frameworks, elements and
tactics can be used to structure a new company’s public relations and marketing strategies while
prioritizing sustainable development. The following plan reflects the lessons learned from both
Patagonia and Grounds for Change.
Alokino
Overview
Alokino is a new, sustainable, plant-based gelato company opening in Venice, California in 2021.
Inspired by beach life, Alokino is a native Hawaiian word that means “physical presence” when
translated to English. The business’s founder, Carlo Santarelli, is an italian native who prides
himself in being an environmentalist and surf fanatic. Alokino is developing to become a pioneer
in its industry, as only a handful of ice cream brands are able to call themselves truly sustainable.
Alokino will be based in Los Angeles, a city home to a growing population of conscious
consumers that are using their purchasing power to create the lasting change they want to see in
the world. Alokino’s main target audience will be active, health and environment conscious
people of all ages in the Los Angeles area. Alokino gelato comes in 12 flavors that can be
customized to create a gelato “mood”. Some moods have already been created such as “After
Surf” which is a blend of coconut, dark chocolate, and almond flakes. These “moods” will allow
customers to tailor their gelato experience based on their activities or by the way they feel that
day. Alokino’s ingredients will be locally sourced from a farm in Malibu and prepared in their
3 0
kitchen in downtown Los Angeles. Sustainable values along creative, fun marketing will set
Alokino apart from its competitors, and the use of the Sustainable Marketing Orientation model
will be used to help organize its public relations and marketing strategies.
Strategic Integration
1 My department’s success is measured by the combination of financial, environmental and
social indicators.
- Alokino will become a certified B Corporation by 2022 by completing the B-Impact
Assessment. The BIA Assessment will assess the impact of both Alokino’s day to day
operations and its business model. The Assessment is scored out of 200 possible points
and it comprehensively covers 5 categories: governance, workers, community,
environmental, and customers.
- Alokino Gelato’s ingredients and packaging will have Fair Trade Certification.
- Alokino will be monitored by the Regenerative Organic Alliance who will be regularly
reevaluating certification requirements.
2 Sustainable development is embedded into values of our department’s culture.
- “We are in business to save our planet”
- “1% for the Planet” is a public commitment Alokino makes to contribute 1% of their
annual net revenues to nonprofit charitable organizations that promote environmental
conservation and sustainability. The company also calls it the “self-imposed Earth tax.”
3 1
Alokino will donate to The Environmental Defense Fund, Heal The Bay, and Surfrider
Foundation.
3 In my department employees are being motivated to achieve environmental and social
goals in addition to the financial ones.
- Employees are actively involved in choosing brands and non-profits that Alokino
supports. Every 3 months Alokino will email an online survey questionnaire for
employees to vote on the brands and non-profits the company will partner with and
donate to. Employees will be able to suggest new brands and non-profits as well.
4 We are committed to monitoring customer satisfaction.
- Alokino provides samples in store to all customers before purchase.
- Alokino guarantees that any item that doesn’t look or perform to satisfaction can be
replaced or refunded.
- Reviews from customers are public on their website and Yelp.
- Alokino’s website provides a way for customers to provide any feedback or comments
about the product and business.
- After purchasing Alokino gelato in-person, the monitor used to submit your payment will
ask you to rate your satisfaction with the in-store experience from 1 to 5.
- Social media comments and direct messages will be regularly monitored to collect
customer feedback.
3 2
5 We monitor the impact of our products/services on the environment.
- Alokino Gelato plans to be a completely carbon-neutral company by 2025 by achieving a
closed loop supply chain. Over the next several years, Alokino will begin a farm in
Malibu in order to locally grow its fruit trees and other ingredients in order to eliminate
harmful environmental impact.
- Alokino cups are biodegradable and recyclable.
- Alokino also encourages customers to reuse their gelato cups by making social media
contests for creative ways to reuse the packaging.
- 100% of retail store receipt paper in the US is recyclable and printed with nontoxic ink.
- Gelato ingredients are locally farmed in Malibu and the Alokino kitchen is currently
located in downtown Los Angeles.
6 We monitor the impact of our product/services on the community.
- Alokino prioritizes hiring and producing local rather than abroad in order to help and
invest in the local community.
- Alokino is also running many activities to enrich the life of the local community in Los
Angeles including yoga classes and beach cleanups.
3 3
- Alokino’s upcoming Malibu farm will be company run in a way that prioritizes
well-being of the surrounding community. In the farm, Alokino will be testing ways to
reduce greenhouse gas emissions through Regenerative Organic Agriculture practices
Societal Engagement
1 We work with various stakeholders in order to understand their expectations that have been
placed in front of us.
- The company will partner with nonprofits that specialize in sustainable supply chains to
regularly evaluate their business practices. By committing to obtaining the Regenerative
Organic Certification and B Corp Certification, Alokino will be evaluated by a board
made up of experts in farming, ranching, soil health, animal welfare and farmer and
worker fairness will be consistently reevaluating these certification requirements.
- Alokino also sees all employees as important stakeholders in the company. By holding
weekly monthly focus groups with employees, Alokino can empower these internal
stakeholders, meet their needs, share their ideas and create value within the organization.
- Alokino will also partner with V oiz, a non profit organization made up of college students
who rate a variety of products and services based on their level of sustainability. V oiz will
monitor Alokino and help the brand meet their sustainability goals.
2 We select suppliers based on the set of environmental, social and economic criteria.
- Alokino publicly posts all suppliers that they work with on its company website.
3 4
3 We encourage personal and professional development of our employees through training,
career planning etc.
- Alokino believes in empowering employees to become the best version of themselves
professionally and in their lives overall. HR at Alokino will be in charge of making sure
employees needs are met and while in the company and throughout their next career step.
- Alokino will host yearly employee retreats in our Malibu Farm where thought leaders and
prominent figures in the environmental movement will be invited to speak and network
with the Alokino family.
- Alokino will provide 2 weeks of paid leave if an employee decides to embark on a
volunteer work retreat for a non-profit.
4 We participate in the development and preservation of the local cultural and historical
heritage.
- Alokino will partner with environmental organizations to organize local beach, pier, and
street clean ups in local areas like Venice, Santa Monica, and Marina Del Rey.
5 We prefer the purchase and use of environmentally friendly products and services.
- Alokino prides itself in its vegan ingredients that are significantly less harmful than
normal gelato’s dairy products.
3 5
- By running its business with high value for the environment, Alokino has been able to
attract similar minded customers, partners, and ambassadors who do not respond to
superficial marketing triggers of promotion.
Ethical Capabilities
1 We act responsibly and ethically when pricing our products/services.
- When buying Alokino you are not only buying ice cream but also contributing to support
efforts towards environmental activism.
- Alokino gelato will be priced at $12.50 a pint. The cost of goods (COGS) is 13% this
price point in order to support the company’s sustainability efforts.
2 Our customers/clients always have full information about our offerings.
- Our supply chain will be clearly documented on our company website.
3 Attributes of our offerings are clearly, accurately and honestly communicated to
consumers.
- Alokino’s values of adventure, quality, and responsibility are communicated through their
product, website, social media accounts, and advertisements. They are recognized and
appreciated by customers who share similar values.
3 6
4 We are ethical and honest in our sales activities in order to build long-term partnerships.
- Alokino has made a commitment to make sure all wages paid to company workers from
farm to kitchen are paid stable, living wages.
PESO Model
Paid
Media Channel Message
Instagram Ads ● Alokino’s paid advertisement on
Instagram will be to promote
volunteer work or spread awareness
about ways locals can help contribute
to the climate crisis.
● V olunteer work such as local beach
clean-ups, charity partners, or
fundraisers will be targeted to users in
LA County.
● These ads will help familiarize
Alokino’s consumer base with the
company’s values and mission to not
only sell gelato but contribute to
saving our environment (beach clean
up flyer example below).
Earned
Media Channel Message
Alokino ambassadors ● Alokino will have a wide range of
ambassadors and partnerships who
embody Alokino’s values. ex.
professional surfers and other athletes
● These ambassadors will not be chosen
by popularity or the size of their
3 7
following but by the values they
represent as athletes or activists.
● Partnership Example: Siam Circle.
Siam Circle is a platform that sells
upcycled clothing. Alokino aligns with
its sustainability values and will
provide free gelato at their fashion
event (flyer example below).
Shared
Media Channel Message
Instagram @alokinogelato ● Sharing personal user stories, articles,
and other content regarding
environmental activism,
environmental education, or beach/LA
activities.
● Fundraisers for non-profit partners,
beach clean-ups and other volunteer
work will be promoted in posts.
Owned
Media Channel Message
Alokinogelato.com ● Showcases brand and values before
product.
● Company website will not only
promote products and locations, but
also include ways for site visitors to
contribute to helping our global
climate crisis.
● Company website will also promote
brand transparency by displaying a
video of the gelato production process,
from farm to kitchen to customer.
3 8
Media Content Examples:
3 9
Figure 4: Beach Clean-up Template
4 0
4 1
Figure 5: Brand Partnership - Siam Circle Example:
Figure 6: Supply Chain Transparency Template:
4 2
Figure 7 : Schedule of Local and Alokino Template:
4 3
Figure 8: Fundraiser Template - Surfrider:
4 4
Figure 9: Alokino Brand Values Template:
4 5
Alokino will measure success based on the following KPIs in the month of April 2021
(will be adjusted due to brand growth over time):
● Social Media Engagement
○ How many shares, comments, likes on all content we generate regarding our
sustainability efforts.
■ Minimum: 100 likes, 20 comments, 10 shares / per post
○ How many unique accounts our profile and each of these posts reaches.
■ 10,000 unique accounts / per month
○ Engagement rate, or number of people who actively engage with posts divided by
total number of followers.
■ 8% engagement rate
● Website Engagement
○ How many overall visits to alokinogelato.com.
■ Minimum: 10,000 / per month
○ How many unique visitors the website reaches.
■ Minimum 3,000 / per month
○ Average page time on each page on the website focused on sustainability
■ 3 seconds.
○ How many clicks on each post regarding sustainability, volunteer work or other
forms of climate activism.
4 6
■ 1000 clicks on ‘philosophy’ section of the website / per month
○ Number of search appearances on search engines such as Google or Bing.
■ 2000 search appearances / April 2021
● Activism Engagement
○ How many new volunteers Alokino can mobilize to participate in local climate
activism.
■ 30 people per Alokino Beach Cleanup / per month
○ How many partnerships with other sustainable companies we create
■ 3 partnerships with sustainable companies / per month
○ How many partnerships with non-profit organizations we create
■ 2 partnerships with nonprofit organizations / per month
● Sales
○ Overall Sales per person
■ 20$ per potential client or 4 pints per client
○ How much ice cream sales grow after notable sustainable PR efforts (fundraiser,
beach clean up, pop-up shop)
■ ~ 15% overall sales increase for week of event
4 7
Conclusion
With the urgency of our planet's current situation heightening, it is time to prioritize
sustainable development as much as economic growth. Patagonia and Grounds for Change have
proven that with a quality product and value driven public relations, sustainable development can
lead a company to success and profitability. Venice-based gelato company Alokino will also use
its sustainable value-based approach in the development of its business, while following the
guidance of The Sustainable Marketing Orientation Model. Alokino must:
(1) Embed sustainability into the values and ethics of Alokino’s foundation.
(2) Deeply engage with the sustainability interests of a broad array of primary and secondary
stakeholders while finding ways to motivate them to engage back with Alokino and the issues we
are tackling.
(3) Integrate and maximize ethical sustainable practices by finding moral and sustainable
solutions at every level of Alokino's functions.
The role of PR in sustainable development begins in creating the value-based framework
of a business and continues through every level of the organization in order to engage
stakeholders and find the most effective and ethical business solutions. PR professionals are
equipped with the social and technical skills necessary to help companies create an empathetic
4 8
and ethical internal culture which in turn effectively betters society. By using frameworks like
the Sustainable Marketing Orientation, public relations professionals can play a key role in
transitioning businesses from profit-chasing to purpose-driven businesses.
As one of the most iconic brands of our time, Patagonia has proved that by authentically
living your brand values through every corner of your organization you can create a successful
business that helps the world. Similar excellence but on a smaller scale can be seen in Grounds
for Change, which will be used to more directly relate to gelato start-up Alokino. Grounds for
Change’s public relations strategies including its environmental advocacy efforts and public
supply chain transparency will inspire Alokino’s campaigns for the upcoming months as the
brand continues to grow. Eventually, Alokino aims to grow to be a global brand and carry a
reputation as respected and trusted as Patagonia’s. Alokino’s goal as a company is to prove that
businesses can work together with nature and be used as a tool to better society.
My hope for this thesis is to showcase the limitless possibilities for businesses as agents
for positive change in our world in regards to environmental activism, and the dynamic role that
public relations professionals can play within these organizations. The role of public relations
professionals is constantly redefining itself as our world advances and new global problems arise
for our society to face. As a public relation professional for Alokino, I will use the tools I learned
writing this thesis to collaborate with my team and build a successful brand that prioritizes
community and contributing to a cause much greater than itself while hopefully paving the way
for other businesses to do the same.
4 9
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5 2

Abstract (if available)

Abstract As sustainable development becomes essential for business globally, it is apparent that Public Relations plays a key role. In this paper, I will discuss the specific role of Public Relations in sustainable development. Then, I will analyze Patagonia, a highly successful sustainable clothing company and one of their partners Grounds for Change using the Sustainable Marketing Orientation framework (SMO) by Andrea Lucic. Finally, using these findings, I will implement the SMO framework along with Public Relations strategies and tactics for a new sustainable gelato company, Alokino.

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Asset Metadata

Creator Castillo, Belén (author)

Core Title The role of public relations in sustainable development

School Annenberg School for Communication

Degree Master of Arts

Degree Program Strategic Public Relations

Publication Date 12/03/2021

Defense Date 12/03/2021

Publisher University of Southern California (original), University of Southern California. Libraries (digital)

Tag OAI-PMH Harvest,Public Relations,sustainability

Format application/pdf (imt)

Language English

Contributor Electronically uploaded by the author (provenance)

Advisor Leveque, Matthew (committee member), Lynch, Brenda (committee member)

Creator Email belencas@usc.edu

Permanent Link (DOI) https://doi.org/10.25549/usctheses-oUC17895962

Unique identifier UC17895962

Legacy Identifier etd-CastilloBe-10275

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Format application/pdf (imt)

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