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bra sizing is wildly confusing. her company seeks to change that - cnn

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Story by Parija Kavilanz, CNN Business
Video by Bryce Urbany & Jackson Loo, CNN Business

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Bra sizing is wildly confusing. Her company seeks to change that

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Heidi Zak sought to make bra-shopping an easier, more rewarding experience. So she launched ThirdLove, an online bra retailer that lets women find the right fit and buy bras without ever stepping into a dressing room.

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Dismayed by a shortage of high-quality bras, and limited store inventory, Heidi Zak co-founded the direct-to-consumer (D2C) startup ThirdLove in 2013. The mission was simple: make shopping for a bra a better experience. With a strong focus on personalization, ThirdLove stocked a wide range of sizes and styles and used customer data to create an innovative buyer journey.

The company has been making waves ever since and was named to Forbes' "Next Billion-Dollar Startups" list in 2018. Josh Wolff, ThirdLove's vice president of customer, traced the path behind the brand's success. Hint: It's no secret.

eMarketer: What channels did you focus on at launch?

Wolff: Facebook has been the most potent channel for us and hugely valuable in acquiring our first million customers. It's no secret sauce-we were building a brand that didn't exist, and we had a clear value proposition for an addressable market we could target via Facebook.
eMarketer: You've grown a lot since 2013-is Facebook still a core channel?
Wolff: You can think of Facebook as a storefront on the prime corner in the middle of downtown. You can do a lot with the real estate when you first open, but there's only so much traffic. It's the cream of the potential crop, and ultimately you have to grow beyond it.
eMarketer: Have you shifted focus to other channels?
Wolff: We've reached a point in our development where we see value in moving beyond traditional digital channels to increase brand awareness and reach customers. We launched our first national campaign this year, which included out-of-home [OOH] and TV ads. We're also known as podcast advertisers, even to those who don't buy bras, and it's an area we'll continue to invest in.
eMarketer: We've seen a lot of D2Cs like Casper and Bonobos launching brick-and-mortar stores. Is that something ThirdLove would consider?
Wolff: I don't think any D2C should go the brick-and-mortar route simply for the sake of adding the channel. When brands do, it usually has something to do with creating a better experience or different product.

One of the great things about being a D2C is we know more about our customer than retailers do. Because of our Fit Finder, we know shopping history, what someone's size is, and whether it's changed, or whether they've exchanged something they thought was their size and wasn't. It gives us the luxury of being able to leverage data to give the best possible experience to the customer.

It's something that would be dramatically harder if we were in a normal retail environment where people might come in, try a product, and walk out without us ever knowing who they were or whether they liked the product.

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Direct-to-Consumer Brand ThirdLove Credits Its Early Success to One Key Channel - eMarketer Trends, Forecasts & Statistics

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Dismayed by a shortage of high-quality bras, and limited store inventory, Heidi Zak co-founded the direct-to-consumer (D2C) startup ThirdLove in 2013. The mission was simple: make shopping for a bra a better experience. With a strong focus on personalization, ThirdLove stocked a wide range of sizes and styles and used customer data to create an innovative buyer journey.

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Contrast Kyle's experience to that of Rachel Dolezal. Her motivations became the subject of much speculation, but ultimately it is clear that on some level, the black culture felt more authentic to her. What separates Dolezal's experience from Kyle Merker taking his lederhosen out for a spin despite his recent revelation about his Celtic heritage? Is the difference appropriation or appreciation? Ultimately, Rachel Dolezal's actions seemed to deny her own personal reality (in inventing a new ethnicity for herself, she disavowed her own).

Creating your own personal culture can be successful - but it can also be catastrophic. This is just as true for brands as for individuals, and the stakes are even higher given that brands act on a much bigger stage. As brands engage in cross-cultural products and general market fusion strategies, it's essential to be mindful of what's okay - and what isn't.

There are ways to adapt trending cultural phenomena without watering them down or divorcing them from context. Although authenticity is key, it can also be slippery. So we have compiled some tips for brands to reach today's multicultural audience in a way that's meaningful, honest, and engaging.
1. Make your effort a celebration, not a spectacle.

Simply put, be respectful . The aesthetics, traditions, dances, music and flavors of American subcultures all reflect the way real people really live. We all have something to learn from one another, and the things worth sharing are worth celebrating.

Part of that celebration is deferring to the experts. For example, it's good and valid to reach out to consumers of Mexican descent as well as general-market consumers using Day of the Dead aesthetics (including sugar skulls and papel picado) - as long as that aesthetic is accompanied by an appreciation of the history of Mexican folk art.

It's important to defer to the experts when making decisions about imagery choices and placement. This means talking to consumers and really hearing what they have to say.

2. Know why you're targeting this market: Establish connections that go further than the bottom line 3. Build empathy and empower through representation.
Urban Outfitters, for example has had some ongoing legal troubles regarding their use of sacred headdresses as fashion accessories. In contrast Walmart's representation of an affluent black family preparing a traditional holiday meal portrays warmth, joy and authenticity.

By developing products and advertising to reach multicultural and general market audiences, brands are, to some extent, inviting consumers to partner with them. In order for those partnerships to last, they must be built on mutual respect and trust.

By truly understanding multicultural markets that go beyond stereotypes and "common sense" into real, life experiences, brands can successfully establish relationships that are symbiotic: beneficial for everyone.

These relationships need to be marked by longevity and loyalty. It's important that brands are responsible for investing in the culture of their target, not to treat elements of custom and music like a mask or a trend that can be discarded at will.

Issues of identity-creation and discovery are especially high-stakes when reaching out to people of color and other historically disadvantaged groups. Traditionally, these groups feel they have been stripped of their voice.

To gain the trust of people who have not had their voices heard historically, consider giving them a platform to speak. Indeed, sharing the microphone is the only way to come to any kind of understanding of the way people truly live. Each individual is more than the sum of his or her demographics, and every story has the potential - and the power - to surprise and uplift. Brands can increase the visibility of people through traditional advertising as well as by highlighting the successes and contributions of their own team members.

Seeing that a brand truly respects and listens is motivating to consumers, especially Millennials. Greater representation also allows for a wider range of perspectives to be heard - including the crucial knowledge that cultural minorities are as full of joy, celebration, and love as everyone else. The exploration that follows from there is a reward in itself. There isn't just one story; there are millions. And while as human beings our similarities bring us together, our unique differences keep life interesting.

Ultimately, the difference between cultural exchange and cultural appropriation is respect. When interacting with a culture that is not their own, individuals and brands have the responsibility to act like invited guests. They are responsible for learning, listening, and honoring traditions that came before them. In so doing, they have the amazing opportunity to authentically connect with others, establish and build trust, and cultivate meaningful relationships that last. Furthermore, there's the intrinsic joy of cultural exploration at stake: just ask Kyle Merker how he felt putting on that kilt for the first time.

C+R has over 15 years of dedicated multicultural experience. Our trained and in-culture moderators leverage a broad range of qualitative methods to identify salient differences in the lived experiences of people from different backgrounds - and understand that people don't fit in a box.

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Three Keys to Ensure Your Brand Gets Its Multicultural Marketing Right

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As brands engage in cross-cultural products and general market fusion strategies, it's essential to be mindful of what's okay - and what isn't. There are ways to adapt trending cultural phenomena without watering them down or divorcing them from context.

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This is a guest blog post from Tasha Reasor, VP of Demand Generation & Customer Marketing at Iterable - a Movable Ink Exchange Partner.
These days, we live in a world of nearly infinite supply: Markets are flooded with businesses and brands offering the same solutions, services or products. How are marketers supposed to stand out in a sea of similarities?

By listening to consumers, of course! And 71% of consumers are saying that they prefer to buy from companies that embrace their values. If you think that's a big number, embrace another; 85% of Millennials stress the importance of value alignment. And they exercise that conviction.

Marketers who want to appeal to today's consumers, and stand out, need to master the foundation of mission-driven marketing: Inclusivity.

How can you make your marketing more inclusive? Read my list of five brands that got inclusive marketing right in 2020 (and why they made the list)!

And if you're a visual learner, you can watch my overview of inclusive marketing, which I shared at the (Re)Think conference by Movable Ink.

1. ThirdLove Shows that Love Is Love

Consumers have evolved from wanting to be sold an unrealistic dream and, instead, they want to see themselves in the brands they support-from models to marketing. Just take a look at ThirdLove. The intimate apparel brand has built a robust following with its body-positive, inclusive "To Each, Her Own" messaging to women of all ages, ethnicities, shapes and sizes.

But the brand doesn't stop there! Its marketing campaigns during COVID-19 were just as inclusive and evocative as their pre-pandemic advertising. Take, for example, this evocative "Love is Love" commercial during Pride Month 2020. Multicultural, multi-lingual, emotionally empowering and artfully done.

Considering that 70% of Millennials are more likely to choose one brand over another if that brand demonstrates inclusion and diversity in its promotions and offers, it's no surprise that ThirdLove's "Love Is Love" is on my short-list of 2020's best inclusive marketing campaigns.

2. Rare Beauty Is Makeup With a Mission

A beauty brand with a mission, Rare Beauty is dedicated to producing products that make people feel amazing in their own skin. Launched this year, the brand's makeup line features 48 shades of foundation and a swath of products that cater to a wide range of skin tones. But the difference between Rare Beauty and other inclusive makeup brands is the brand's focus on mental health and promoting a healthy body image (in addition to having accessible palettes).

This was the intention of the brand's founder and CEO, Selena Gomez, who has had a very public struggle with lupus, anxiety and depression. Selena's personal struggle inspired the launch of the Rare Impact Fund, with a "goal of raising $100M over the next ten years to help give people access to mental health services."

Rare Beauty's #WeAreRare campaign spotlights inclusivity and authenticity.

Strength and community are strong components of Rare Beauty's brand narrative; when social distancing norms meant that a traditional makeup photo shoot for her company launch was impossible, the brand made a virtue of it by asking a diverse range of models to send selfies showing off the brand's makeup with no lighting, professional help or Photoshop in its #WeAreRare campaign.

From marketing to mission, Rare Beauty's commitment to inclusivity resonates with a deeply personal company message: self-acceptance.

3. Rothy's Crowdsources COVID-19 Relief Efforts

Rothy's, the direct-to-consumer shoe brand known for its stylish, comfortable flats made from recycled bottles of plastic, is doing inclusivity right. Not only does Rothy's offer an eco-friendly brand promise and a wide variety of colors and patterns (up to 400), but the brand is also powered by an effective consumer engagement strategy.

How effective, you may ask?

As the name of one of its Facebook groups, " Rothy's Addicts", suggests, they have built a cult-like following; especially amongst women. Rothy's densest markets are where women commute in close proximity, and there's even a rumored "head nod" that fans do when they spot a fellow Rothy's wearer. Pretty cool, huh?

The power of community is a central component of Rothy's value proposition, and also a key indicator of a mission-driven and inclusive brand. Their new volunteer ambassador program, "The Collective" creates groups of passionate, empowered, influential women willing to spread the word about the brand.

This year, its community approach showed critical during COVID-19, when Rothy's crowdsourced ideas from their social networks on how they could repurpose their manufacturing operations to support healthcare workers. They also leveraged their platforms to share opportunities for consumers to get involved and support organizations providing COVID-19 relief.

Look no further than Rothy's Sustainability section of their website to see how they have committed and contributed to COVID-19 relief efforts.

Rothy's emphasis on community engagement had built an inclusive brand, founded on a sustainable product. And what's more? They're partnering to magnify their impact (no surprise that ThirdLove is also involved)!

4. Peloton's Incline to Inclusivity

Peloton, the fitness technology company, has for a long time focused on the expected: exercise. They also came under fire during the holidays in 2019, when they released a controversial ad that was deemed outdated and sexist. So what does an "expected" and "incendiary" fitness company have to do with my list? Read on.

The Incredible thing about inclusivity is forgiveness. Brands that make mistakes can learn from them. So when Peloton launched a new campaign featuring real riders for the first time, instead of actors, we celebrated.

Peloton's new ad series featured a school teacher, an NFL agent, a military veteran, a baker, a public defender, a grandpa and a nurse. Inclusive steps in the right direction and away from "model marketing."

But Peleton's ride for inclusivity didn't stop there. They recently partnered with Beyoncé, a long time icon of diverse and inclusive communities. As part of the collaboration, Beyoncé and Peloton will deliver a series of themed workout experiences commemorating Homecoming season, a tradition at Historically Black Colleges and Universities (HBCUs), and build relationships with schools for internship and undergraduate career opportunities.

The lesson here? In the pursuit of inclusivity, diversify your circle of influence. Sure, you don't have to partner with Beyoncé to be inclusive, but you can form meaningful and authentic collaborations with those who have already established trust in the community.

5. Calm Keeps Us Cool and Collected

Peloton, the fitness technology company, has for a long time focused on the expected: exercise. They also came under fire during the holidays in 2019, when they released a controversial ad that was deemed outdated and sexist. So what does an "expected" and "incendiary" fitness company have to do with my list? Read on.

While perhaps best known for their star-studded sleep stories ( "Dream With Me", featuring Harry Styles certainly comes to mind), Calm's brilliant ad placement this year, front and center of CNN's U.S. presidential election coverage, is what really puts them on the "Top 5" list.

Calm's advertising was a brilliant, tongue-and-cheek way to recognize the stress of the U.S. presidential election, which reminded people to "take a deep breath, and tune into themselves" while the vote counts continued.

From COVID-19 social distancing restrictions to political divisions, now is an apt time for Americans to encounter Calm's resources. In early October, the American Psychological Association reported that 68% of U.S. adults said the 2020 presidential election was a significant source of stress in their life, up from 52% who said the same prior to the 2016 presidential election.

Calm's marketing has always been strategic and insightful; they actively leverage celebrity spokespeople and social media to reduce the stigmas associated with mental health. But their political ad placement was a major inclusive milestone in normalizing these very real struggles with stress and stability, and I applaud them for keeping us calm in the most tense of moments.

How to Get Inclusive Marketing Right

When you work in marketing, you might think it's your job to answer a core question: "How do you get your message to resonate with everyone?" But that's a trick question. You can't!

However, what's completely within your power is making sure your marketing is built for everyone.

From presidential politics to the body politic, inclusive campaigns have been integral to upholding equality and representation. And with a year as disruptive as 2020 has been, it's the brands that have gotten diverse and inclusive marketing right that skyrocket to the top of my list.

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5 Brands That Got Inclusive Marketing Right in 2020

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This is a guest blog post from Tasha Reasor, VP of Demand Generation & Customer Marketing at Iterable - a Movable Ink Exchange Partner. These days, we live in a world of nearly infinite supply: Markets are flooded with businesses and brands offering the same solutions, services or products. H

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Have you ever had trouble relating to ads, TV, or other media because it told stories of people with lives that were vastly different from your own? If so, you're not alone.

Growing up in a small town with partial blindness, the only people I could relate to were characters on TV or in ads. These characters, which included Mr. Magoo, often fit into a specific mold that many people would consider offensive today. They were usually elderly, clumsy, and regularly put themselves into danger by walking into certain situations.

It wasn't until recently, when I was watching an NBC show called , that I found a character that I could relate to. The current season follows a blind character over the course of his life -- from birth to adulthood. Although he faces challenges as a blind man, he grows up to be an independent musician living in a city.

While I enjoy having a TV character that I can relate to, what I admire most about the show is that it actually cast a blind actor for the role. This has been fairly unseen in the blind community. In fact, This Is Us is one of the first in history to cast a legally blind actor in a leading network series role.

The results? Notable advocates and organizations, such as the Carroll Center for the Blind, began discussing and celebrating the casting on social media channels.

If I wasn't already hooked on This Is Us, I would've probably started watching when the character was introduced.

As a marketing blogger, the reception of this show made me wonder, "if simply identifying with a unique character on a TV show gets people to tune in each week, what could inclusivity could do for a brand?"

Inclusivity can help brands connect on a deeper, more meaningful level with their audiences -- which can be a major asset to marketing campaigns in 2019 and beyond.

Diversity by the Numbers

In the United States alone, racial and ethnic minorities make up nearly 40% of the population. And this number is likely to grow as 51% of children under 15 were considered part of a minority in 2019.

But the country's diverse population doesn't just include people of different races or ethnicities. Roughly 4.5% of U.S. adults identify as LGBTQ, and more than 40 million Americans have a disability.

Odds are, some or many people within your audience have something unique about them that makes them different, whether it be related to race, ethnicity, gender, sexuality, or physical abilities.

In 2019, inclusive marketing is a no brainer because it reflects the actual world we live in, rather than a fictional place filled with unrealistically perfect models.

Research has even backed up the idea that inclusivity is beneficial in the advertising world. Recently, a Kantar study found that ads that are considered progressive are 25% more effective. The study judged effectiveness by how pleased viewers were, the memorability of the advertisement, and actual metrics related to progressive campaigns.

With successful inclusive marketing campaigns, marketers aim to break advertising norms by highlighting people or groups that might be under- or misrepresented, such as people of color, those who identify as LGBTQ+, those who affiliate with various religions, those who are disabled, or even people of certain ages and genders.

But, inclusive marketing isn't always easy to do right. An inclusive or thought-provoking campaign takes time, effort, and careful thought to be successful. And, it's not just about picking the right stock image and giving yourself a gold star. It's about making a solid effort to include or properly represent diverse people in your campaigns.

As Google noted in a recent post, "Diverse marketing isn't just a box you can tick. There are so many layers to diversity beyond gender or skin color. It's also about age. Geography. Socio-economic diversity. Relatable jobs. Abilities. Sexuality."

But, what exactly does inclusivity look like in the marketing world? Keep reading to learn about how seven brands, including Google, absolutely nailed inclusive marketing in their campaigns.

Examples of Successful Inclusive Marketing

1. Procter & Gamble

While P&G is known for its ownership of a variety of cleaning and toiletry companies, including Tide, Dove, and Gillette, the major corporation also creates initiatives to ensure inclusivity in its marketing and products.

Not only do some P&G ads include people from diverse backgrounds, but they also use their platform to tell stories that spread powerful messages about equality, tackle controversial issues, and discuss topics related to diversity and identity.

One example of P&G's inclusive commercials is a 2018 Emmy-winning ad called "The Talk."

The hard-hitting commercial -- which corresponded with P&G's "Black is Beautiful" and "Proud Sponsor of Moms" initiatives -- depicts African American mothers in multiple decades as they have difficult conversations with their children about racism.

At the beginning of the ad, a mother brushing her daughter's hair ominously tells says, "It's not a compliment."

As you might wonder what she's referring to, you start to see scenes of other black mothers talking to their children about racism and judgement that they'll face in life. For example, one mother tells her son, "There are some people who think you don't deserve the same privileges just because of what you look like. It's not fair. It's not."

The ad begins to get darker as you see mothers instructing their children of what to do when they are pulled over to avoid police brutality.

At the climax of the ad, it's revealed that the daughter featured at the beginning was called, "Beautiful for a black girl." Her mother tells her not to accept this compliment and concludes, "You are beautiful, period!"

The ad ends with text in all caps stating, "LET'S ALL TALK ABOUT 'THE TALK' -- SO WE CAN END THE NEED TO HAVE IT."

This commercial doesn't beat around the bush. Instead, its goal is to expose the unthinkable closed-door conversations that African American mothers need to have with their children to keep them safe and strong in the face of racism. By informing people of these conversations, P&G aims to create a discussion that might create change or end the need for mothers to feel they have to prepare their children for racism or judgment.

When it came to the commercial's goal of creating a discussion, "The Talk" was a success in that it was chattered about by social media users, advocacy groups, and major news outlets.

During an interview about the ad, P&G's Global Communications Director, Damon Jones told AdAge, "We know that bias is not just an African American issue. It's an issue that takes on many shapes and forms, across gender, race, age, weight, sexual orientation, and more."

"Our goal with 'The Talk' is to help raise awareness about the impact of bias," he added. "We are also hopeful that we can make progress toward a less biased future by recognizing the power of people of all backgrounds and races showing up for one another."

To learn more about "The Talk" and other Emmy-award nominated campaigns, check out this rundown.

2. Google

In a 2018 ThinkWithGoogle post, Lorraine Twohill revealed that the tech giant did a deep dive to determine the level and quality of diversity in its campaigns. The project, which was done with help from machine learning and experts at the Geena Davis Institute, allowed a task force to analyze diversity related to race, gender, and socioeconomics.

"Our images had lots of racial diversity. But everyone looked like they worked in tech and lived in a hip, urban neighborhoods," Twohill wrote in the post.

Along with socioeconomic disparity, Twohill also revealed that Google needed to up its game when representing gender as well.

"My team brought me a new campaign to review. Dad was cooking in the kitchen. Great! I was proud that they had flipped a stereotype," she explains. "But the next image showed he was there because mom was in the hospital having a baby. Sorry, dad, but we had to reshoot. Mom was away because she was on a business trip."

To address issues related to misrepresenting or under-representing different backgrounds, Google launched a training course to tackle diversity in its campaigns. Twohill notes that 90% of her team and 200 agency partners have taken this course.

As a result, Google began to launch even more thought-provoking campaigns, including a Pixel 2 commercial called "The Picture-Perfect Life," which shows real photos of Google Pixel users from different backgrounds, while also tackling the tough topic of mental illness.

In the commercial, Google aims to show that although someone might seem happy in photos or videos, they might still be struggling with mental distress on the inside:

The ad, narrated by Logic, a Grammy-nominated rapper who spread awareness of a suicide hotline in his thought-provoking song, "1-800-273-8255," opens with images of seemingly happy people shot with the Pixel 2.

All of the photos you see look like the downright pleasant photos you'd see in any smartphone ad focused on highlighting a great camera. For example, you see crisp and clear shots of a man with his daughter, a girl making donuts, a man playing basketball, a mother singing in the car with her family, and a few people at parties with friends. But, as the commercial progresses, you learn that there's a hidden side to each person's story.

As the slideshow shows photos of each person, Logic introduces them and explains what the visuals are showing. For example, when the ad shows photos of a girl in an empty apartment, Logic explains, "This is Lauren, and this is her new place, which will soon be crammed with all of her friends."

But, towards the end of the commercial, you see a girl looking down at a smartphone screen that repeatedly says "1-800-273-8255." Logic says, "And this? This is the lifeline that all these people bravely called to find hope."

"Not every picture tells the whole story," Logic concludes. "Question your lens."

"The Picture-Perfect Life" aims to represent and identify with people dealing with mental illness while informing viewers that friends, family, or loved ones might seem happy or put together on the outside while still struggling behind closed doors. While this content might educate viewers about mental health, it also informs those with these struggles that Google identifies with them and that there are resources that can help.

Overall, the commercial is Google's attempt to present it's real customers while spreading a message that the tech company is trustworthy and supports its followers.

Like P&G's, "The Talk," this campaign and Logic's song, which played in the background of the ad, got heavy discussion and shares online. Since it originally aired during the Grammy Awards in 2018, it's gotten major online discussion and was also covered in publications like AdWeek and The Washington Post.

3. Microsoft

Recently, it came to Microsoft's attention that children with certain physical disabilities or missing limbs were having difficulty playing video games with traditional controllers. The company began working on an alternative controller which included touchpads instead of buttons and bright colors for the visually impaired. They also opened a channel of communication where disabled people who still couldn't use the controller could write to them requesting customizations.

This product launch culminated in a Super Bowl commercial where Microsoft interviewed the gamers about how the controller helped them and featured quotes from the engineers that led the project. The commercial, titled "We All Win," shows just how far the major tech company will go to help customers and prospects with all different abilities.

In the ad, a handful of children with physical disabilities introduce themselves and begin talking about how much they love video games and how it helps them bond with their friends.

"I love video games, my friends, family, and again video games," says one boy. Meanwhile, a young girl points out that she enjoys "the fun [video games] let you have when you're connecting with your friends."

At one point, a child's father adds, "It's his way of interacting with his friends when he can't physically otherwise do it."

While video games make these children happy, the commercial reveals that there's one underlying issue preventing accessibility: controller designs.

"When I'm playing with a regular controller, there are some things that don't work for me," says a boy with one hand.

Another boy who also has one hand says, "I never thought it was unfair. I just thought, 'Hey. This is the way it is and it's never going to change."

After establishing the issue of accessibility, the commercial shows children excitedly opening new adaptive controllers from Microsoft.

"What I like about the adaptive controller is that now, everyone can play," narrates one child, while another says "I can hit the buttons just as fast as [other gamers] can."

Another boy giggles and says, "I think I can crush my friends."

The commercial ends with inspirational text that says, "When everybody plays, we all win."

While the adaptive controller ad successfully shows off happy customers and Microsoft's newest technology, the overall campaign and product more importantly aim to empower young people with disabilities who might think that getting excluded from day-to-day activities is just going to be part of life.

Even if a viewer with disabilities isn't interested in gaming, they might watch this commercial and trust Microsoft's brand more because the company learned about the unique challenges of its customers and created a product just to solve those problems. Similarly, someone without disabilities might trust Microsoft brand more because they've seen the lengths that the company will go to to help unique groups of customers.

While the adaptive controller and Microsoft's agency, McCann New York, won a Clios for Design, Innovation, and Branded Entertainment, the video advertisement itself received 29.5 million views and 250 thousand likes on YouTube.

4. Coca-Cola

Coca-Cola is no stranger to embracing diversity in its ads. If you grew up in the 1970s or 80s, you might remember the company's famous "I'd Like to Buy the World a Coke" commercial. When filming the ad, Coca-Cola young adults from all around the world to sing the jingle, "I'd Like to Buy the World a Coke."

The ad was considered groundbreaking as it united people from all different races and ethnicities around the common interests of Coca-Cola and world peace. In short, it aimed to show that even though people can come from different backgrounds, everyone has something in common.

Since then, Coca-Cola has continued to create campaigns that link diverse people together with a simple bottle of Coke.

Since 2013, Coca-Cola has run the "Share a Coke" campaign where labels on plastic bottles of Coke say "Share a Coke with ..." and include names from around the world.
Source: Coca-Cola
This campaign celebrates names around the world and is highly shareable. For example, people regularly post images of bottles on social media when they see their own name or the name of someone they know.

Later in 2014, Coca-Cola launched an ad, titled "Together It's Beautiful," that gives you a small peek into the daily lives of U.S. residents who all share a similar sense of pride for the United States despite their vastly different ethnic or geographical backgrounds.

As the ad begins, you see a man on a horse with a cowboy hat in a rural area as you hear the opening line of, "America, The Beautiful" sung in English. Then, it shows children in a movie theater as the next line of the song is sung in Spanish. From this point, each lyric is sung in a different language as you see different scenes of people around the United States.

As you see each scene and hear the song, which embraces American pride, the commercial reminds you of how diverse the United States truly is.

At the pique of the commercial, you begin to see subtle Coca-Cola branding intertwined within each scene. At one point, children swim down to the bottom of a pool to pick up Coke caps. At another, you see the Coca-Cola logo painted on the wall of a building.

Similarly to the "I'd Like to Buy the World A Coke" ad noted above, Coca-Cola aims to unite people of different cultures around a few common things. While the 1971 ad connected people with a love of Coca-Cola and hopes for world peace, the 2014 commercial shows that even vastly different U.S. residents share the same love of Coke and a sense of American pride.

In 2017, Coca-Cola published a statement explaining the meaning of the ad:

"The premise of 'It's Beautiful' can be simply stated: America is beautiful and Coca-Cola is for everyone. It celebrates Coca-Cola moments among all Americans and features snapshots of American families," Coca-Cola writes. "We believe it's a powerful ad that promotes optimism, inclusion and celebrates humanity - values that are core to Coca-Cola. 'It's Beautiful' shows just a few of the ways Americans enjoy our brand and how Coca-Cola brings families and friends together every day."

One of the things that makes Coca-Cola's inclusive campaigns so successful is that they are able to identify and highlight the simple things that all sorts of people have in common. This commercial reminds us that Coke is a beloved and recognized brand, but it most importantly shows us that we all can find common ground regardless of how different we might seem from one another.

5. ThirdLove

ThirdLove is a lingerie company that aims to make items for all different body types. To enforce this brand message, they show real women of all ages, shapes, and races -- rather than touched up, high-fashioned models -- in their marketing assets.

Here's an example where ThirdLove's Facebook cover photo shows an older woman and a younger woman wearing items from its lingerie line.

ThirdLove also shows imagery on its site and social media platforms that show multiple women wearing bras from the company to show off the variations in body types that its clothing can be made for:

In an open letter published in the New York Times, ThirdLove's CEO and Co-Founder Heidi Zak discussed the company's strategy of depicting all women, how brands like Victoria's Secret should be empowered by diversity, and why inclusivity should be seen as a movement rather than a trend.

"We believe the future is building a brand for every woman, regardless of her shape, size, age, ethnicity, gender identity or sexual orientation. This shouldn't be seen as groundbreaking, it should be the norm," she wrote.

While ThirdLove's ads and visuals might be relatable to many different types of women, its inclusive brand has also seen 347% year-over-year sales growth, according to Shopify.

6. Bumble

You don't have to do a campaign just about diversity or equality to nail inclusive marketing. Sometimes, inclusive marketing simply entails showing off your wide range of real-life customers. Bumble's "Find Me On Bumble" campaign is a great example of how a brand can be inclusive just by highlighting its awesome customers.

With the campaign, Bumble launched a webpage, video campaign, Instagram account, and geographically targeted ads which highlighted a number of "inspiring" Bumble users from New York City.

In a video for the campaign, Bumble explains that the app sees a variety of great users in the New York City area and the company wanted to celebrate them. To do this, the company sought out some of Bumble's most interesting New Yorkers and brought them together to tell their stories.

"Every connection you make on Bumble is an opportunity to meet someone who can impact your life. Inspiring people are everywhere. We wanted to celebrate them," notes text at the beginning of the content.

As the video continues, you get a glimpse of different Bumble users posing for a photoshoot as you see short clips of interviews with them.

A few examples of the people shown in the Bumble video are a political operative, an entrepreneur, an opera singer, and a model and activist.

In each person's interview clip, they note a life lesson they've learned or given details on their backstory. For example, the political operative explains, "Lots of times, I felt like I had to be forced into a box. Now, I'm the type of person where I don't really care what type of box you put on me or what type of label you put on me, but I'm going to still do what I want."

At another point, an author and activist notes that she's gotten far in her political career by working for people she believed in. "Fifteen years ago, no one even knew who Barack Obama was. So think of all the people who we don't even know exist yet who could have such an impact," she explains.

While the video highlights all the people you can find on Bumble Date, Bumble BFF, and Bumble Bizz, it also recognizes the diversity in New York City. At one point, an orthodontist being filmed says, "I love that there's such a variety of different people here. Living in New York, you still get to meet people from all over the world."

The video ends with images of more people posing for photos with overlaid text that says. "Really New Yorkers, Really Inspiring, Really on Bumble." Then the content closes with a call to action of "Find them on Bumble."

The people invited to Bumble's photoshoot are also highlighted on the @FindThemOnBumble Instagram account.

Rather than marketing images of models or unrealistic people that you could match with on Bumble, the video, Instagram account, and overall campaign focus on real people that have made great accomplishments or embrace their inner confidence. Here's one example where a Bumble user says that the most important lesson they've learned is to be themselves:

The "Find Them on Bumble" campaign is a good example of how a brand can market its customer diversity as one of its biggest assets. When you see multiple people with different backgrounds and motivations using the same product, you might feel that the product is of good quality or you might just connect more deeply with the marketing.

If you're marketing any type of business that connects people to other people, highlighting your current customers or users could make prospects even more interested in working with your brand, especially if they're interested in meeting and learning from interesting people.

7. Axe

In 2016, Axe launched a commercial that embraced all men who used its body spray. While many commercials targeted at men in the past presented unrealistic-looking athletes and related masculinity to physical strength, Axe's ad argues that masculinity is about being confident with your own identity rather than being a stereotypical buff athlete.

The short commercial begins with a car pulling up on a street covered with billboards of buff male models. As a car pulls up with a man in it, a narrator exclaims, "Come on. A six-pack? Who needs a six-pack, when you got the nose?" At the end of the phrase, the man looks and smiles at the camera.

Then the commercial continues with, "Or a nose when you've got the suit?" as the man walks into a bar with a nice outfit. Then the narrator continues to state that a man doesn't need one thing, such as a nice suit, if they have another thing, like "great moves." As the narrator makes each statement, videos depict men doing an action, such as dancing, which goes along with what the narrator is saying.

For example, when the narrator says, "Who needs looks when you got the books?" the video shows a man holding a book titled, "The Power of the Banana" while his friend is shopping for records.

The commercial goes on to show images of all sorts of men finding their passions including a dancer wearing high heels and a man dancing with a woman in a wheelchair. The narration expresses that masculinity is about expressing yourself, embracing your passions, and being confident in who you are.

At the climax of the commercial, the narrator simply says, "And who needs all that when you get the door," as he shows a man opening the door for someone. It ends with the narrator saying, "Who needs some other thing, when you've got your thing. Now work on it."

Rather than encouraging men to work out or marketing to manly men, Axe embraces the idea that all men have different passions and encourages them to embrace the unique aspects of themselves. While some people might think another body spray which markets to strong muscular men is just for athletes and not meant for them, those who view this commercial from Axe might think that a number of people from all sorts of backgrounds use the body spray.

Tips for Building an Inclusive Marketing Strategy

As we've seen with some of today's most successful brands, inclusive marketing is about understanding what makes your audience or customers unique and embracing it. By highlighting what's interesting, inspiring, unique, or different about your audience and how your brand supports them, you might find new audiences that see your campaigns, start identifying more with you, and realize that your brand aligns with their lifestyle.

Here are three key strategies that you can take away from these examples when trying to create more inclusivity in your marketing campaigns:

Solving for your customers: Like Microsoft or ThirdLove, learn about the unique audiences in your following or customer base. Then, think of ways that you can solve a problem for them or better represent them in your campaigns.

Highlight real stories: If your brand has customers or even employees that have unique backstories or are driven by unique motivations, embrace these factors in your marketing campaigns. For example, you could take a note from Bumble and interview a few happy customers about what drives them to your product or service.

Unite people with things they have in common: In ads for Coca-Cola, the beverage company is notable for connecting multiple different stories together by highlighting the major things people have in common, such as a love of Coke, hopes for world peace, or national pride. If you have a diverse audience that uses your service or product, use marketing to highlight how your brand can help all sorts of people rather than a set of unrealistic models.

Now that you've read about inclusivity in marketing, you might be wondering how to get started on your own campaigns. If so, check out this post on how to devise a multicultural marketing strategy. Want to embrace diversity in your overall business? Learn about five benefits in this blog post.

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7 Brands That Got Inclusive Marketing Right

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Have you ever had trouble relating to ads, TV, or other media because it told stories of people with lives that were vastly different from your own? If so, you're not alone. Growing up in a small town with partial blindness, the only people I could relate to were characters on TV or in ads.

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Read the Spanish version of this article translated by Marisela Ordaz

Executive Summary

Skeptics of the Value of Corporate Responsibility

As the argument goes, doing what's best for society is usually at odds with increasing short-term profits. If that weren't the case, then issues of pollution and poverty would have been solved long ago by corporations seeking to maximize profits.

"Often, cutting corners, ignoring standards, trampling on communities, polluting, screwing the consumer and working staff into the ground can be profitable."

Berkeley professor Robert Reich asserts that we are living in the age of super-competitive capitalism, or "supercapitalism." For the modern firm, Reich argues, long-term earnings are irrelevant, and companies under supercapitalism do not have the discretion to be virtuous.

Business Case for Corporate Responsibility

Market value, share price, and risk reduction. Strong CR can increase market value by 4-6%, increase valuation for companies with strong stakeholder relationships between 40-80%, reduce share price volatility between 2-10%, avoid market losses from crises of around $378 million, and reduce systemic risk up to 4%.

Cost of capital reduction. CR has the potential to reduce the cost of equity by 1% and reduce the cost of debt by 40% or more.

Potential value for marketing, sales, and branding. CR has the potential to increase revenue up to 20%, increase the product price premium by up to 20%, increase commitment by 60%, and avoid revenue losses of up to 7% of the firm's market value

Potential value for human resources. CR has the potential to reduce staff turnover by up to 50%, increase productivity by 13%, and increase employee engagement up to 7.5%.

Implementation Recommendations

Choose a strategic cause that aligns well with the organization. Make CR commitments that fit your company's core attributes and your key stakeholders' expectations. The payoffs to companies who align CR into their business model are significantly greater than the cost savings for companies who choose to forgo it.

Don't launch an initiative just to cancel its effect in another. It's discrediting when your company launches a socially good initiative, only to cause harm in another. For example, Walmart created shared value in their sustainability practices, only to face allegations of unethical business conduct in Mexico.

Don't dabble; make a genuine commitment to address CR issues. For a specific CR activity, investors and customers prefer not to have too little or too much; a sweet spot of investment exists. Each company must find the right fit on their own.

Measure and quantify. Develop and manage your portfolio of CR practices as if it were an intangible asset. A part of proper management is continuous measurement of quantitative metrics. Multiple frameworks have emerged, including reporting standards bodies such as GRI, IIRC, SASB, and CDP. For more specific guidance, Harvard Business Review suggests this scorecard.

Introduction

For years, a debate has raged: Do corporate environmental and social initiatives drive or distract from financial performance? Can companies really do well by doing good?

In a famous 1970 New York Times Magazine article, economist Milton Friedman asserted that "There is one and only one social responsibility of business-to use its resources and engage in activities designed to increase its profits." However, today, corporations are expected not just to create quality products and services, but also to be good global citizens and active participants in developmental debates. This is the case especially as the private sector provides society with 60% of economic output and 90% of jobs.

Corporate consciousness is on the rise, though it's evolved. Companies often tout their own efforts to produce healthier foods and fuel-efficient vehicles, or to conserve resources in their operations. According to management theorist Michael Porter, corporations and their relationship with society have changed. First, philanthropy meant companies doing business as usual and then donating a portion of earnings to good causes. Then, corporate social responsibility (CSR) meant minimizing harm through sustainable, ethical practices. And now with corporate shared value (CSV), Porter suggests that companies can develop products or processes that meet key societal needs while also creating financial return. An interesting trend is the designation of B Corporations, organizations that meet a threshold of "impact" and agree that shareholder interests are not the only ones they account for. There are already over 2,000 certified B corporations, including Warby Parker, Unilever, and Patagonia.

What, then, are the economics of this increase in conscious capitalism? In this article, we put aside motive-of genuine altruism or self interest-and philosophical debates around moral obligation. Instead, we examine the results of studies around whether corporate responsibility initiatives positively impact profitability, examples of companies that have implemented such measures successfully, and recommendations for those looking to do so. We will refer to corporate philanthropy, CSR, and CSV efforts collectively as corporate responsibility (CR).

How Does Corporate Responsibility Affect the Bottom Line?

There are two major schools of thought on the issue: those who don't believe in CR's tangible value, and those who insist that it's possible for CR to yield tangible benefits. Below, we explore both.

Skeptics of the Value of Corporate Responsibility

Many express skepticism towards the tangible impact that socially good practices can have on businesses. According to an article in The Guardian, "There is indeed evidence that sometimes, maybe even often, the right thing is also the profitable thing. But often, cutting corners, ignoring standards, trampling on communities, polluting, screwing the consumer and working staff into the ground can be profitable too." As the argument goes, doing what's best for society is usually at odds with increasing short-term profits. If that weren't the case, then issues of pollution and poverty would have been solved long ago by corporations seeking to maximize profits.

In his paper, "The Case Against Corporate Social Responsibility," Berkeley professor Robert Reich asserts that we are living in the age of super-competitive capitalism, or "supercapitalism." For the modern firm, Reich argues, long-term earnings are irrelevant, and companies under supercapitalism do not have the discretion to be virtuous. To Reich, competition is so intense that corporations generally cannot accomplish social ends at a cost to their consumers or investors, as they will simply find better deals elsewhere.

A popular 2005 Economist spread also makes its case against corporate responsibility efforts. The article declares, "most CSR, in fact, is probably delusional, meaning that it reduces both profits and social welfare." It argues that since almost all efforts have some cost, if those managing the efforts merely go through the motions, delivering no new resources or giving employees and stakeholders no reason to think highly of it, it leads to a net loss of welfare.

One can't deny that CR initiatives don't always work in practice. Consider Indra Nooyi, Pepsi's former CEO. Nooyi believed that a shift towards healthier products would be beneficial for both society and for Pepsi's profitability, acquiring healthier brands like Tropicana and Quaker Oats. However, during her tenure, Coca-Cola's stock price doubled while Pepsi's stagnated. Pepsi even lost its number two position in the cola market to Diet Coke in 2010. Consequently, Pepsi eventually announced management changes.

The Business Case for Doing Good

Still, there is a growing volume of the data that supports the view that CR efforts yield positive effects. In general, "doing good" can result in cost and risk reductions, a stronger competitive advantage, branding wins, employee retention, and increased sales. Many of the world's biggest and most successful companies are partaking (see figure below).

A meta analysis of 300 studies conducted by Project ROI has concluded that corporate responsibility initiatives have tangible value for businesses. Project ROI statistically analyzed over 300 studies of existing academic and peer reviewed sources, as well as interviews with executives and CR practitioners. The analyses indicate a positive causal relationship between CR performance and financial performance, not just correlation. This central claim is echoed by the OECD, which asserts that "research shows that companies do well by doing good." A 2004 report that conducted a meta analysis of 52 studies, including a total sample size of 33,878 observations and eventually won the famed socially responsible investing Moskowitz Prize, also supported these findings.

Investors are paying attention. They respond to sound CR management practices by viewing CR as an indicator of strong management, competitive differentiation, employee morale, and innovation. According to the 2015 EY Global Institutional Investor Survey, investors are using companies' nonfinancial disclosures to inform their investment decisions. In a survey of over 200 institutional investors, 59 of respondents view nonfinancial disclosures as "essential" or "important" to investment decisions, up from 35% in 2014.

CR's Potential Value for Cost of Capital

The findings show that CR has the potential to reduce both the cost of equity and debt. A Harvard study corroborates these findings by explaining two reasons why this might be the case: 1) Superior CSR performance captures the firm's commitment to stakeholders, which can lead to reduced agency costs, transaction costs, and costs associated with team production; and 2) Firms with superior CSR performance are more likely to publicly disclose their CSR strategies by issuing sustainability reports, lending themselves credibility, reducing informational asymmetry, and resulting in lower capital constraints.

CR's Potential Value for Marketing, Sales, and Branding

The quality, management, integration, and communications of your company's CR approach affects sales and reputation outcomes. If properly aware and engaged, customers will increase their commitment to the company. Consumers, millennials in particular, will trust the brand more and are willing to pay a premium. In fact, Unilever's "brands with purpose" are growing at twice the rate as others in their portfolio.

CR's Potential Value for Human Resources:

Research finds that strong CR performance increases the motivation, fulfillment and morale of employees. This increased engagement and CR continually reinforce one another to enhance productivity, financial performance, brand value, and innovation.

Case Studies in Profitable Corporate Responsibility

TOMS

TOMS is a great example of social entrepreneurship. Its now-famous business model was unorthodox at its inception over 10 years ago: For every pair of shoes a customer bought, TOMS would donate a pair to a child in need. TOMS is a for-profit organization, and was recently valued around $392 million. CEO Blake Mycoskie said the average retail price for a pair of TOMS is $55, while the notorious canvas shoes cost about $9 each to manufacture. According to BCG research, 50% of their customers are aware of and motivated to buy based on the element of social good. In 2014, Bain Capital acquired a 50% stake in TOMS and will continue the one-for-one business model.

According to Mycoskie, "For many retailers, their profit margins are low. They spend lots of money on advertising - whether it's paying celebrities to endorse your product or taking out significant billboards. Toms doesn't have any ad spend. A big portion of our spend goes on giving. But by giving, we build a community and people recommend through word of mouth and on social media."

GlaxoSmithKline (GSK)

GSK is a pharmaceutical giant looking to serve not just wealthy nations but also citizens of emerging countries. The company spent three decades developing a vaccine for malaria, which has ravaged much of sub-Saharan Africa. GSK has also partnered with the government of Botswana on an ambitious HIV treatment program. GSK prices drugs on the GDP of the 150 countries where it does business-and in dozens of the least developed nations, it reinvests 20% of profits in local health care infrastructure and worker training. Significantly, GSK makes money-nearly $16 billion in total operating profit in 2015.

GSK leadership is bullish on its strategy of slim margins on most products in the developing world and huge, growing sales volume. CEO Andrew Witty says, "Look at India, which I think is a brilliant example...Around 30% of everything we manufacture in our pharmaceutical business we sell in India...And it accounts for about 1% of our global revenue, and a little less than that of our profits...that business has gotten bigger and bigger and bigger. It makes more and more profit. And more people have access to fantastic medicines. We think that's an entirely sustainable model."

IBM

In 2008, IBM launched their Corporate Service Corps program. As part of the program, 500 IBM employees every year bring their core competencies in project management, strategic planning, or engineering to an entrepreneurial company based in an emerging market such as Brazil, China, or Ghana. IBM Corps teams tackles issues ranging from public safety to urban agriculture.

IBM states the program produces a $600 million return on a $200 million investment. While the regular staff turnover rate is around 12% per year, the rate for employees in the Corporate Service Corps is less than 1%. The company also highlights benefits such as talent attraction-the program is the third most influential factor; skills and competency development; and new market creation.

Implementation Recommendations

Overall, it seems that corporate responsibility can improve the bottom line, but those efforts by themselves will not guarantee success. Companies must execute them well and, as with every aspect of business management, some CR investments will succeed while others will fail. CR practices cannot replace the quality of your products and services. They also can't fully compensate for strategic and managerial deficiencies. However, the findings suggest that well-designed and managed practices can drive value in multiple ways. Below are some recommendations for effective implementation:

Choose a strategic cause that aligns well with the organization. Make CR commitments that fit your company's core attributes and your key stakeholders' expectations. According to the Federal Bank of St. Louis, the payoffs to companies who align CR into their business model are significantly greater than the cost savings for companies who choose to forgo it. These companies generate higher perceived value and buying intention, whereas unrelated efforts may decrease sales volumes.

Don't launch an initiative just to cancel its effect in another. This might seem obvious, but it becomes discrediting when your company launches a socially good initiative only to cause harm in a different area. For example, Walmart created shared value in their sustainability practices improving fuel efficiency by 87% between 2005 and 2014, only to face allegations of unethical business conduct in Mexico.

Don't dabble; make a genuine commitment to address CR issues. The market seems to respond positively to severe laggards with overall poor CR performance, but it responds even more positively to those that achieve high levels of CR. However, the market tends to punish those companies it perceives as putting forth a half-baked effort. For a specific CR activity, investors and customers prefer not to have too little or too much; a sweet spot of investment exists. It's important to note that there's no standard level of investment. Each company must find the right fit on their own.

Measure and quantify. Develop and manage your portfolio of CR practices as if it were a valuable intangible asset. Companies and their managers are able to exert some choice and control over the benefits that their CR initiatives will deliver. Companies should develop business-aligned and integrated CR strategies. A part of proper management is continuous measurement of quantitative metrics. Multiple frameworks have emerged, including reporting standards bodies such as GRI, IIRC, SASB, and CDP. For some more specific guidance around what a multicapital measurement system might look like, Harvard Business Review suggests the below.

Parting Thoughts

It's true-profit and public interest do not always align. It's also true that corporate responsibility makes for good public relations and that initiatives aren't always effective or profitable. It would be difficult for all companies to prioritize solving for prevalent societal issues over efficient business operations. Still, this doesn't detract from the fact that these programs and goals can work, especially when operational and socially good goals converge. Ultimately, it's crucial for individual organizations to conduct analyses around what initiatives could be strategic, value-add, and will be lauded by stakeholders, customers, and employees alike.

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Are Corporate Responsibility Efforts Profitable?

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Read the Spanish version of this article translated by Marisela Ordaz Skeptics of the Value of Corporate Responsibility As the argument goes, doing what's best for society is usually at odds with increasing short-term profits. If that weren't the case, then issues of pollution and poverty would have been solved long ago by corporations seeking to maximize profits.

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Corporate social responsibility (CSR) is a doctrine that promotes expanded social stewardship by businesses and organizations. CSR suggests that corporations embrace responsibilities toward a broader group of stakeholders (customers, employees and the community at large) in addition to their customary financial obligations to stockholders. A few examples of CSR include charitable giving to community programs, commitment to environmental sustainability projects, and efforts to nurture a diverse and safe workplace. 1

As more attention is being paid by outsiders to the social impact of businesses, corporations have acknowledged the need for transparency regarding their social efforts. In a recent survey, 74 percent of the top 100 U.S. companies by revenue published CSR reports last year, up from 37 percent in 2005. Globally, 80 percent of the world's 250 largest companies issued CSR reports last year. 2

Is CSR Socially Desirable?

Despite the apparent acceptance of CSR by businesses, many economists have taken a skeptical view of CSR and its viability in a competitive environment. Milton Friedman, in particular, doubted that CSR was socially desirable at all. He maintained that the only social responsibility of a business is to maximize profits (conducting business in open and free competition without fraud or deception). 3 He argued that the corporate executive is the agent of the owners of the firm and said that any action by the executive toward a general social purpose amounts to spending someone else's money, be it reducing returns to the stockholders, increasing the price to consumers or lowering the wages of some employees. Friedman pointed out that the stockholders, the customers or the employees could separately spend their own money on social activities if they wished to do so.

Friedman, however, also noted that there are many circumstances in which a firm's manager may engage in actions that serve the long-run interest of the firms' owners and that also have indirectly a positive social impact. Examples are: investments in the community that can improve the quality of potential employees, or contributions to charitable organizations to take advantage of tax deductions. Such actions are justified in terms of the firm's self-interest, but they happen to generate corporate goodwill as a byproduct. Furthermore, this goodwill can serve to differentiate a company from its competitors, providing an opportunity to generate additional economic profits.

Friedman's argument provoked economists to explore the conditions under which CSR can be economically justified. Economists Bryan Husted and José de Jesus Salazar, for example, recently examined an environment where it is possible for investment in CSR to be integrated into the operations of a profit-maximizing firm. The authors considered three types of motivation that firms consider before investing in social activities:

altruistic, where the firm's objective is to produce a desired level of CSR with no regard for maximizing its social profits, i.e., the net private benefits captured by the firm as a consequence of its involvement in social activities;

egoistic, where the firm is coerced into CSR by outside entities scrutinizing its social impact; and

strategic, where the firm identifies social activities that consumers, employees or investors value and integrates those activities into its profit-maximizing objectives.

In agreement with Friedman, Husted and Salazar conclude that the potential benefits to both the firm and society are greater in the strategic case: when the firm's "socially responsible activities" are aligned with the firm's self-interest.

Strategic CSR

Similarly, economists Donald Siegel and Donald Vitaliano examined the theory that firms strategically engage in profit-maximizing CSR. Their analysis highlights the specific attributes of business and types of CSR activities that make it more likely that "socially responsible" actions actually contribute to profit maximization. They conclude that high-profile CSR activities (e.g., voluntary efforts to reduce pollution or to improve working conditions for employees) are more likely undertaken when such activities can be more easily integrated into a firm's differentiation strategy.

Siegel and Vitaliano studied a large sample of publicly traded firms and classified them using the North American Industry Classification System codes into five categories. The five categories were:

search goods, whose quality can be readily evaluated before purchase, e.g., clothing, footwear and furniture;

nondurable experience goods, whose quality is experienced over multiple uses and frequent purchases, e.g., food, health and beauty products;

durable experience goods, which must be consumed before their true value can be determined, permit less learning from repeated purchases and require a longer period for the product's characteristics to be fully known, e.g., automobiles and appliances; and finally

experience services and credence services, which often involve strong information asymmetries between sellers and buyers, who may find it difficult to assess the service's value even over a long period, e.g., banking, financial counseling, auto repairs and weight-loss programs.

Siegel and Vitaliano found, using an aggregate measure of CSR involvement, that firms selling experience goods and experience and credence services are more likely to engage in CSR than those selling search goods. The difference in the intensity of CSR involvement across types of goods, they argued, is explained by the consumers' perception of a firm's involvement in CSR (even when the firm's product does not directly include a social component) as a valuable signal of the firm's reliability and its commitment to quality and honesty.

Using the same classification of firms as Siegel and Vitaliano did, the accompanying chart shows the proportion of firms in each classification that demonstrated relative strength in seven different social issues related to CSR as rated in 2007 by Kinder, Lyndenberg and Domini (KLD), an independent research firm that rates the social performance of corporations. 4 The chart reveals that the level of relative strength in the seven individual areas of CSR rated by KLD varies among the five classifications of firms. 5 In other words, firms choose to invest in different types of CSR when catering to different groups of stakeholders.

A greater proportion of goods-producing firms showed strength in the environment issue areas. This result is perhaps not surprising. Stakeholders in service firms are not likely to value CSR efforts related to the environment, since services probably have lower perceived environmental impact than manufacturing firms do.

In the community issue area-where strengths include giving programs, volunteer programs and support for local organizations-firms providing experience services performed quite well. Devoting resources to CSR activities in community relations can bolster reputation, on which firms that are classified in the experience services category typically rely as a form of brand differentiation. Banks, which constitute a large portion of the firms in the experience services category, can also excel in this area of CSR by committing a portion of their commercial loan portfolio to community development initiatives.

In the human rights issue area, the five categories of businesses have few, if any, firms that demonstrated relative strength. The only category with a sizeable proportion of firms was the search goods category. This is also understandable, as firms in this category face higher pressures from activists concerned about the working conditions of unskilled labor employed (usually in developing countries) in the production process.

Being Responsible ... and Profitable

Modern theoretical and empirical analyses indicate that firms can strategically engage in socially responsible activities to increase private profits. Given that the firm's stakeholders may value the firm's social efforts, the firm can obtain additional benefits from these activities, including: enhancing the firm's reputation and the ability to generate profits by differentiating its product, the ability to attract more highly qualified personnel or the ability to extract a premium for its products.

Figure 1

1. See General Mills Inc. for detailed examples of corporate CSR efforts. [back to text]

2. See KPMG. [back to text]

3. See Friedman (1962, 1970). [back to text]

4. A firm is considered to have a relative strength in an issue area when the fraction of strengths identified divided by the number of strengths considered exceeds the fraction of areas of concern identified divided by the number of concerns considered. [back to text]

5. The ratings in the seven social issue areas are provided by Kinder, Lyndenberg and Domini (KLD) from the 2008 KLD STATS database. KLD rates the largest 3,000 publicly traded U.S. companies in several categories of strengths and concerns in each issue area. The classification of firms by product or service provided used a listing of primary industry (NAICS) codes provided by the Center for Research in Security Prices (CRSP) database. Since some firms received no ratings from KLD or did not have a primary NAICS code listed in the CRSP database, the total number of firms considered is slightly fewer than 3,000. [back to text]

References

Friedman, Milton. Capitalism and Freedom. Chicago: University of Chicago Press, 1962.

Friedman, Milton. "The Social Responsibility of Business Is To Increase Its Profits," The New York Times Magazine, Sept. 13, 1970, No. 33, pp. 122-26. See www.colorado.edu/studentgroups/libertarians/issues/friedman-soc-resp-business.html.

General Mills Inc. Corporate Social Responsibility Report, 2008. See www.generalmills.com/corporate/commitment/NEW_CSR_2008.pdf

Husted, Bryan W.; and Salazar, José de Jesus. "Taking Friedman Seriously: Maximizing Profits and Social Performance." Journal of Management Studies, January 2006, Vol. 43, No. 1, pp. 75-91.

KPMG, International Survey of Corporate Responsibility Reporting of 2008, October 2008. See www.kpmg.com/SiteCollectionDocuments/International-corporate-responsibility-survey-2008.pdf.

Siegel, Donald S.; and Vitaliano, Donald F. "An Empirical Analysis of the Strategic Use of Corporate Social Responsibility." Journal of Economics and Management Strategy, Fall 2007, Vol. 16, No. 3, pp. 773-92.

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Corporate Social Responsibility Can Be Profitable | St. Louis Fed

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Corporate social responsibility (CSR) is a doctrine that promotes expanded social stewardship by businesses and organizations. CSR suggests that corporations embrace responsibilities toward a broader group of stakeholders (customers, employees and the community at large) in addition to their customary financial obligations to stockholders.

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by Ron Robins, Investing for the Soul
It is generally held that corporate social responsibility (CSR) could increase company profits and thus most large companies are actively engaged in it. But few executives and managers are aware of the research on this important subject. And as I review here, the research does show that it may improve profits. However, linking profit growth to abstract variables that are frequently difficult to define is a challenging task.

Most executives believe that CSR can improve profits. They understand that CSR can promote respect for their company in the marketplace which can result in higher sales, enhance employee loyalty and attract better personnel to the firm. Also, CSR activities focusing on sustainability issues may lower costs and improve efficiencies as well. An added advantage for public companies is that aggressive CSR activities may help them gain a possible listing in the FTSE4Good or Dow Jones Sustainability Indexes, or other similar indices. This may enhance the company's stock price, making executives' stock and stock options more profitable and shareholders happier.

Substantiating some of these beliefs is a study, Corporate citizenship: Profiting from a sustainable business, by the Economist Intelligence Unit (EIU) published in November 2008. Corporate citizenship is another term roughly equivalent to CSR.

The EIU study said that, "corporate citizenship [CC] is becoming increasingly important for the long-term health of companies even though most struggle to show a return on their investment from socially responsible activities... 74 per cent of respondents to the survey say corporate citizenship can help increase profits at their company... Survey respondents who say effective corporate citizenship can help to improve the bottom line are also more likely to say their strategy is 'very important' to their business (33 per cent) compared with other survey respondents (8 per cent)."

At the heart of the debate as to whether CSR improves profits is first how you define it. Besides the terms CSR and CC, another frequently used and related term is corporate social performance (CSP). In the above quoted EIU study, it provides the following definition of CC: "corporate citizenship is defined as transcending philanthropy and compliance, and is addressing how companies manage their social and environmental impacts as well as their economic contribution. Corporate citizens are accountable not just to shareholders, but also to stakeholders such as employees, consumers, suppliers, local communities and society at large."

The study of CSR and its relation to corporate profits is growing. The most recent study on this subject is by Cristiana Manescu. In her thesis, "Economic Implications of Corporate Social Responsibility and Responsible Investments," at the University of Gothenburg's School of Business, Economics and Law, Sweden, she wrote on December 6, 2010 that, "the results [of her thesis] reveal that CSR activities do not generally have a negative effect on profitability, but that in the few cases where they have a positive effect, this effect is rather small." Other studies add further perspectives.

Defining the experience of CSR in relation to different industries is this study, "The Economics and Politics of Corporate Social Performance" by David P. Baron, Maretno A. Harjoto, and Hoje Jo, published on April 21, 2009. The researchers found that, "For consumer industries, greater CSP [corporate social performance] is associated with better CFP [corporate financial performance], and the opposite is true for industrial industries... Empirical studies have examined the relation between CSR and corporate financial performance, and while the results are mixed, overall the research has found a positive but weak correlation."

However, reviewing individual empirical studies can be confusing. But by using the technique of 'meta-analysis,' many studies can be statistically analysed to determine collective results. A meta-analysis on CSR and its link to profits won the famed socially responsible investing, Moskowitz Prize in 2004. The study, "Corporate Social and Financial Performance: A Meta-Analysis," was compiled by researchers Marc Orlitzky, Frank L. Schmidt and Sara L. Rynes. It yielded encouraging data suggesting a positive link between CSR and increased profits.

Summing up their results, the researchers said, "we conduct[ed] a meta-analysis of 52 studies (which represent the population of prior quantitative inquiry) yielding a total sample size of 33,878 observations. The meta-analytic findings suggest that corporate virtue in the form of social responsibility and, to a lesser extent, environmental responsibility, is likely to pay off... CSP [corporate social performance] appears to be more highly correlated with accounting-based measures of CFP [corporate financial performance] than with market-based indicators, and CSP reputation indices are more highly correlated with CFP than are other indicators of CSP. This meta-analysis establishes a greater degree of certainty with respect to the CSP-CFP relationship than is currently assumed to exist by many business scholars."

So the research generally indicates that CSR/CC/CSP, no matter how you define it, does offer potential benefit to corporate profits. But there is another unanswered problem, and that relates to causation.

Do high profits enable greater spending on CSR, or is it that CSR itself creates higher profits? Referring again to the study, "The Economics and Politics of Corporate Social Performance," the researchers write that, "...the direction of causation remains an open question. That is, good CSP could cause good CFP, but good CFP could provide slack resources to spend on CSP. As the Economist wrote, '...whether profitable companies feel rich enough to splash out on CSR, or CSR [activity itself] brings profits.'" Hopefully, future research will be able to answer this question.
Ron Robins is Founder and Analyst at the website Investing for the Soul and a financial and economics columnist for alrroya.com, a leading Middle Eastern business portal/publication. This article is reprinted with permission. Copyright
On balance, surveys and the research literature suggest that what most executives believe intuitively, that CSR can improve profits, is possible. And almost no large public company today would want to be seen unengaged in CSR. That is clear admission of how important CSR might be to their bottom line, no matter how difficult it may be to define CSR and link it to profits.

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Does Corporate Social Responsibility Increase Profits?

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by Ron Robins, Investing for the Soul It is generally held that corporate social responsibility (CSR) could increase company profits and thus most large companies are actively engaged in it. But few executives and managers are aware of the research on this important subject.

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Defining and Prioritizing Stakeholders

Learning Objectives

By the end of this section, you will be able to:

Define corporate social responsibility and the triple bottom line approach

Compare the sincere application of CSR and its use as merely a public relations tool

Explain why CSR ultimately benefits both companies and their stakeholders

Thus far, we have discussed stakeholders mostly as individuals and groups outside the organization. This section focuses on the business firm as a stakeholder in its environment and examines the concept of a corporation as a socially responsible entity conscious of the influences it has on society. That is, we look at the role companies, and large corporations in particular, play as active stakeholders in communities. Corporations, by their sheer size, affect their local, regional, national, and global communities. Creating a positive impact in these communities may mean providing jobs, strengthening economies, or driving innovation. Negative impacts may include doing damage to the environment, forcing the exit of smaller competitors, and offering poor customer service, to name a few. This section examines the concept of a corporation as a socially responsible entity conscious of the influences it has on society.

Corporate Social Responsibility Defined

In recent years, many organizations have embraced corporate social responsibility (CSR), a philosophy (introduced in Why Ethics Matter,) in which the company's expected actions include not only producing a reliable product, charging a fair price with fair profit margins, and paying a fair wage to employees, but also caring for the environment and acting on other social concerns. Many corporations work on prosocial endeavors and share that information with their customers and the communities where they do business. CSR, when conducted in good faith, is beneficial to corporations and their stakeholders. This is especially true for stakeholders that have typically been given low priority and little voice, such as the natural environment and community members who live near corporate sites and manufacturing facilities.

CSR in its ideal form focuses managers on demonstrating the social good of their new products and endeavors. It can be framed as a response to the backlash corporations face for a long track record of harming environments and communities in their efforts to be more efficient and profitable. Pushback is not new. Charles Dickens wrote about the effects of the coal economy on nineteenth-century England and shaped the way we think about the early industrial revolution. The twentieth-century writer Chinua Achebe, among many others, wrote about colonization and its transformative and often painful effect on African cultures. Rachel Carson first brought public attention to corporation's chemical poisoning of U.S. waterways in her 1962 book Silent Spring.

Betty Friedan's The Feminine Mystique (1963) critiqued the way twentieth-century industrialization boxed women into traditional roles and limited their agency. Kate Chopin's novel The Awakening (1899) and the nineteenth-century novels of Jane Austen had already outlined how limited options were for women despite massive social and economic shifts in the industrializing West. Stakeholder communities left out of or directly harmed by the economic revolution have demanded that they be able to influence corporate and governmental economic practices to benefit more directly from corporate growth as well as entrepreneurship opportunities. The trend to adopt CSR may represent an opportunity for greater engagement and involvement by groups mostly ignored until now by the wave of corporate economic growth reshaping the industrialized world.

CSR and the Environment

Corporations have responded to stakeholder concerns about the environment and sustainability. In 1999, Dow Jones began publishing an annual list of companies for which sustainability was important. Sustainability is the practice of preserving resources and operating in a way that is ecologically responsible in the long term.

The Dow Jones Sustainability Indices "serve as benchmarks for investors who integrate sustainability considerations into their portfolios."

There is a growing awareness that human actions can, and do, harm the environment. Destruction of the environment can ultimately lead to reduction of resources, declining business opportunities, and lowered quality of life. Enlightened business stakeholders realize that profit is only one positive effect of business operations. In addition to safeguarding the environment, other ethical contributions that stakeholders could lobby corporate management to make include establishing schools and health clinics in impoverished neighborhoods and endowing worthwhile philanthropies in the communities where companies have a presence.

Other stakeholders, such as state governments, NGOs, citizen groups, and political action committees in the United States apply social and legal pressure on businesses to improve their environmental practices. For example, the state of California in 2015 enacted a set of laws, referred to as the California Transparency in Supply Chains Act, which requires firms to report on the working conditions of the employees of their suppliers. The law requires only disclosures, but the added transparency is a step toward holding U.S. and other multinational corporations responsible for what goes on before their products appear in shiny packages in stores. The legislators who wrote California's Supply Chains Act recognize that consumer stakeholders are likely to bring pressure to bear on companies found to use slave labor in their supply chains, so forcing disclosure can bring about change because corporations would rather adjust their relationships with supply-chain stakeholders than risk alienating massive numbers of customers.

As instances of this type of pressure on corporations increase around the world, stakeholder groups become simultaneously less isolated and more powerful. Firms need customers. Customers need employment, and the state needs taxes just as firms need resources. All stakeholders exist in an interdependent network of relationships, and what is most needed is a sustainable system that enables all types of key stakeholders to establish and apply influence.

People, Planet, Profit: The Triple Bottom Line

How can corporations and their stakeholders measure some of the effects of CSR programs? The triple bottom line (TBL) offers a way. TBL is a measure described in 1994 by John Elkington, a British business consultant ((Figure)), and it forces us to reconsider the very concept of the "bottom line." Most businesses, and most consumers for that matter, think of the bottom line as a shorthand expression of their financial well-being. Are they making a profit, staying solvent, or falling into debt? That is the customary bottom line, but Elkington suggests that businesses need to consider not just one but rather three measures of their true bottom line: the economic and also the social and environmental results of their actions. The social and environmental impacts of doing business, called people and planet in the TBL, are the externalities of their operations that companies must take into account.

The TBL concept recognizes that external stakeholders consider it a corporation's responsibility to go beyond making money. If increasing wealth damages the environment or makes people sick, society demands that the corporation revise its methods or leave the community. Society, businesses, and governments have realized that all stakeholders have to work for the common good. When they are successful at acting in a socially responsible way, corporations will and should claim credit. In acting according to the TBL model and promoting such acts, many corporations have reinvested their efforts and their profits in ways that can ultimately lead to the development of a sustainable economic system.

CSR as Public Relations Tool

On the other hand, for some, CSR is nothing more than an opportunity for publicity as a firm tries to look good through various environmentally or socially friendly initiatives without making systemic changes that will have long-term positive effects. Carrying out superficial CSR efforts that merely cover up systemic ethics problems in this inauthentic way (especially as it applies to the environment), and acting simply for the sake of public relations is called greenwashing. To truly understand a company's approach toward the environment, we need to do more than blindly accept the words on its website or its advertising.

When an Image of Social Responsibility May Be Greenwashing

Ben and Jerry's Ice Cream started as a small ice cream stand in Vermont and based its products on pure, locally supplied dairy and agricultural products. The company grew quickly and is now a global brand owned by Unilever, an international consumer goods company co-headquartered in Rotterdam, The Netherlands, and London, United Kingdom.

According to its statement of values, Ben and Jerry's mission is threefold: "Our Product Mission drives us to make fantastic ice cream-for its own sake. Our Economic Mission asks us to manage our Company for sustainable financial growth. Our Social Mission compels us to use our Company in innovative ways to make the world a better place."

With its expansion, however, Ben and Jerry's had to get its milk-the main raw ingredient of ice cream-from larger suppliers, most of which use confined-animal feeding operations (CAFOs). CAFOs have been condemned by animal-rights activists as harmful to the well-being of the animals. Consumer activists also claim that CAFOs contribute significantly to pollution because they release heavy concentrations of animal waste into the ground, water sources, and air.
Critical Thinking

Does the use of CAFOs compromise Ben and Jerry's mission? Why or why not?

Has the growth of Ben and Jerry's contributed to any form of greenwashing by the parent company, Unilever? If so, how?

Coca-Cola provides another example of practices some would identify as greenwashing. The company states the following on its website:
"Engaging our diverse stakeholders in long-term dialogue provides important input that informs our decision making, and helps us continuously improve and make progress toward our 2020 sustainability goals . . . We are committed to ongoing stakeholder engagement as a core component of our business and sustainability strategies, our annual reporting process, and our activities around the world. As active members of the communities where we live and work, we want to strengthen the fabric of our communities so that we can prosper together."
Let us take a close look at this statement. "Engaging stakeholders in long-term dialogue" appears to describe an ongoing and reciprocal relationship that helps improvement be continuous. Commitment to "stakeholder engagement as a core component of business and sustainability strategies" appears to focus the company on the requirement to conduct clear, honest, transparent reporting.

Currently 20 percent of the people on Earth consume a Coca-Cola product each day, meaning a very large portion of the global population belongs to the company's consumer stakeholder group. Depending on the process and location, it is estimated that it takes more than three liters of water to produce a liter of Coke. Each day, therefore, millions of liters of water are removed from the Earth to make Coke products, so the company's water footprint can endanger the water supplies of both employee and neighbor stakeholders. For example, in Chiapas, Mexico, the Coca-Cola bottling plant consumes more than one billion liters of water daily, but only about half the population has running water.

Mexico leads the world in per capita consumption of Coke products.

If consumers are aware only of Coca-Cola's advertising campaigns and corporate public relations writings online, they will miss the very real concerns about water security associated with it and other corporations producing beverages in similar fashion. Thus it requires interest on the part of stakeholders to continue to drive real CSR practices and to differentiate true CSR efforts from greenwashing.

The Ultimate Stakeholder Benefit

CSR used in good faith has the potential to reshape the orientation of multinational corporations to their stakeholders. By positioning themselves as stakeholders in a broader global community, conscientious corporations can be exemplary organizations. They can demonstrate interest and influence on a global scale and improve the way the manufacture of goods and delivery of services serve the local and global environment. They can return to communities as much as they extract and foster automatic financial reinvestment so that people willing and able to work for them can afford not only the necessities but a chance to pursue happiness.

In return, global corporations will have sustainable business models that look beyond short-term growth forecasts. They will have a method of operating and a framework for thinking about sustained growth with stakeholders and as stakeholders. Ethical stakeholder relationships systematically grow wealth and opportunity in dynamic fashion. Without them, the global consumer economy may fail. On an alternate and ethical path of prosperity, today's supplier is a consumer in the next generation and Earth is still inhabitable after many generations of dynamic change and continued global growth.

Summary

Most organizations must practice genuine corporate social responsibility to be successful in the modern marketplace. The triple bottom line places people and the planet on equal standing with profit in the mission of an organization. The genuine practice of CSR, unlike greenwashing, requires a commitment to an additional stakeholder, the planet, whose continued healthy existence is essential for any organization to operate.

Assessment Questions

Name the three components of the triple bottom line.

The three components are people, profit, and planet.

What does the California Transparency in Supply Chains Act require of businesses that operate in California?

The California Act requires businesses that operate in California to describe for consumers all components and activities of their supply chains.

True or false? Corporate social responsibility is a voluntary action for companies.

The Dow Jones Sustainability Indices provides information for ________.

1. investors who seek quick profit

2. investors who seek long-term returns

3. investors who value CSR in companies

4. marketing promotions of each of its members

Endnotes

1Victoria Knowles, "What's the Difference Between CSR and Sustainability?" 2degrees, March 25, 2014. https://www.2degreesnetwork.com/groups/2degrees-community/resources/whats-difference-between-csr-and-sustainability/.

2 "Dow Jones Sustainability Indices," RobecoSAM. http://www.sustainability-indices.com/index-family-overview/djsi-family-overview/#tab-1 (accessed August 5, 2018); "Results Announced for 2017 Dow Jones Sustainability Indices Review," RobecoSAM, September 7, 2017. http://www.sustainability-indices.com/images/170907-djsi-review-2017-en-vdef.pdf.

3 Kamala Harris, "The California Transparency in Supply Chains Act. A Resource Guide," California Department of Justice, 2015. https://oag.ca.gov/sites/all/files/agweb/pdfs/sb657/resource-guide.pdf.

4 Coca-Cola Company, "2016 Sustainability Report: Stakeholder Engagement," August 18, 2017. http://www.coca-colacompany.com/stories/stakeholder-engagement#2.

5Martha Pskowski, "Coca-Cola Sucks Wells Dry in Chiapas, Forcing Residents to Buy Water," Salon, September 16, 2017. https://www.salon.com/2017/09/16/coca-cola-sucks-wells-dry-in-chiapas-forcing-residents-to-buy-water_partner/.

Glossary

greenwashing

carrying out superficial CSR efforts that merely cover up systemic ethics problems for the sake of public relations

triple bottom line (TBL)

a measure that accounts for an organization's results in terms of its effects on people, planet, and profits

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Defining and Prioritizing Stakeholders By the end of this section, you will be able to: Define corporate social responsibility and the triple bottom line approach Compare the sincere application of CSR and its use as merely a public relations tool Explain why CSR ultimately benefits both companies and their stakeholders Thus far, we have discussed stakeholders mostly as individuals and groups outside the organization.

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16 Brands Doing Corporate Social Responsibility Successfully | Digital Marketing Institute

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Corporate Social Responsibility (CSR) allows businesses large and small to enact positive change. Here are 16 great examples of brands doing CSR successfully.

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Corporate social responsibility is back - and that's bad news for anyone who cares about corporate behaviour. August's US Business Roundtable statement embracing stakeholder capitalism is only the latest iteration of a mantra gaining currency around the world. On the surface, the brief statement offered bromides about pleasing customers, investing in employees and supporting communities. But its real significance comes in how shareholders drop to last in its list of stakeholders.

Putting shareholders last is an open repudiation of the " Friedman doctrine ", articulated by the Nobel Prize-winning economist Milton Friedman in 1970. "There is one and only one social responsibility of business - to use its resources and engage in activities designed to increase its profits," Friedman declared. It was fine for individuals to pursue social goals in their own time, he went on. But to do so through the framework of the corporation carried numerous risks and would complicate the already difficult task of measuring performance. Keep it simple, Friedman advised. Executives should focus on maximising profit.

In subsequent years, this single-minded focus on shareholder value was undoubtedly important to many corporate leaders. But just as often, the Friedman doctrine was observed in the breach, or trotted out as an example of misguided wisdom. Chief executives from Whole Foods' John Mackey to Apple's Steve Jobs framed their moneymaking activities as contributions to the larger good. Fame and fortune went to business leaders claiming to make social progress, not simply money.

Corporations are not just profit-making machines. They are complex social organisms, embedded in the society from which they grow. And as such they have both obligations and rights. But bringing back the Friedman doctrine would bring much-needed clarity to discussion of the role of the corporation. Americans are just waking up to the possibility that many big tech companies are not public-spirited entities that just happen to make a profit on the side. Would this recognition have come sooner without what Friedman called "the cloak of social responsibility"?

What if Facebook explained and justified its actions in terms of shareholder value rather than the larger mission of " bringing the world closer together"? Would e-cigarette maker Juul have been welcomed into high school classrooms if its stated intent was to make money off kids, rather than improve their health? Would WeWork have got so far so fast if its founder's effusions about social mission were taken as evidence of organisational over-reach rather than standard expressions of corporate good intentions?

The idea of benevolent corporations serving the public good has also muddled a distinction that was clear to earlier generations. Young professionals used to recognise the need for a choice. Some careers were lucrative, but largely devoid of meaning - hence the inflated salaries and fancy recruiting dinners of investment banks and consulting firms. But now that trade-off has faded away. Working for a tech company is not only lucrative, it is supposedly a way to save the world. There's no need to live in penury, to spend time studying foreign languages, to get to know people different than you. Now you can make a difference from the comfort of your keyboard.

Bring back the Friedman doctrine, and maybe we'd have a more honest conversation. Do I want to dedicate myself to maximising shareholder value? Or do I want to consider one of the other institutions - from universities, to non-profits, to public service - which truly are mission-driven? But if we freed corporations from the need to do more, then the rest of us would have to act.
The writer, an associate history professor at Stanford University, is working on a biography of Milton Friedman
Letters in response to this article:
Profits' source and nature need to be understood / From Prof Mehdi Al Bazzaz, Alexandria, VA, US Business has got stronger, governments weaker / From Paul Dickinson, Brighton, UK 'Corporate profitability' quote was qualified / From Peter Muchlinski, SOAS, University of London, UK Friedman failed to make it clear that companies should 'do no harm' / From Prof Jeffrey D Sachs, Columbia University, US In fact, Friedman made the case for CSR policies / From Theo Vermaelen, Professor of Finance, INSEAD, Fontainebleau, France

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Companies should concentrate on maximising their profits

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Corporate social responsibility is back - and that's bad news for anyone who cares about corporate behaviour. August's US Business Roundtable statement embracing stakeholder capitalism is only the latest iteration of a mantra gaining currency around the world. On the surface, the brief statement offered bromides about pleasing customers, investing in employees and supporting communities.

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In the wake of U.S. corporate scandals, many are questioning the assumptions underlying the triumph of stock-market capitalism. Should the market no longer be king? Success no longer measured in terms of shareholder value? And profit no longer suffice as an end in itself?

The recent scandals aren't just a matter of rogue companies fudging the odd billion. And the cure won't come solely from tougher regulations. We must ask more fundamental questions: What is business for-and for whom?

Enlightened companies answer that they exist not just to make a profit, but to use profit to achieve a nobler end. That end? To do something better, more useful, or different than anyone else. To make the good things of life available to ever more people.

Companies achieve this purpose by gathering a community of individuals who want to accomplish something collectively that they couldn't do separately-people eager to make contributions to society. And they see those individuals as assets to be cherished and grown, not costs to be minimized.

Unless American business rediscovers this higher purpose, more people will view capitalism as a rich person's game, interested mainly in itself and its agents. High-minded talent may shun it, customers desert it, and government begin controlling its every move. In such a scenario, everyone loses.

The Idea in Practice

How to begin defining your firm's true purpose-and repairing the damage to capitalism's image? Consider these guidelines:

Put shareholders in perspective. Shareholders provide essential fuel in the form of investment capital. But they have none of the pride or responsibilities of ownership. Resist the urge to define your firm's purpose solely as meeting shareholders' financial expectations.

Cherish and reward community members. Good businesses are communities with a purpose. Communities consist of members (not merely employees) who have the right-indeed, the responsibility-to tell the truth, express their views, and be rewarded for their time, talent, knowledge, and skills.

More companies are rewarding members for their intellectual contributions by sharing income streams: portions of after-tax profit, bonuses, royalties. This practice reveals the connection between efforts and results, strengthening members' commitment and desire to contribute even more toward the community's purpose.

Extend sustainability from the environmental to the human level. To survive, business needs a sustainable planet and human society. When companies demand that employees forgo the rest of their lives for work, they risk losing key members and damaging productivity. Consider, instead, Europeans' five to seven weeks of annual vacation, less-than-40-hour work weeks, and mandated simultaneous maternity/paternity leaves.

Measure corporate success in terms of outcomes for others, as well as for your company. By creating new products, spreading technology, and enhancing quality and service, business has always been an agent of progress. In itself, this is a noble cause. To make more of it, ask whether your firm is making the good things in life accessible to more and more people-in addition to providing adequate returns to those who risk their money and careers.

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In the wake of recent corporate scandals, it is again time to ask ourselves the most fundamental of questions.

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Women and their exceptional role in business

Women aren't just our relatives or intimate companions but they are outstanding when it comes to business and finance.

"More than five million women-owned businesses, the fortune 500 firms of the 21st century generate more jobs than big corporations on that over-esteemed list." Patricia Aburdene & John Naisbitt

From the scratch, most women are programmed to always let men triumph but all this has brought a lot of setbacks and obstacles in giving the women less privilege to do things on their own, most of them from the early stage also criticized themselves for showcasing their power while men were in tone.

But, the question always rings in some women's minds that why will a woman deprive herself of who she really is?

And why do they pretend to be cowards?

"The idea that women are the weaker sex has been one of the biggest con jobs in the history of humanity. If we are measuring strength in terms of muscle and potential violence, I might agree, but it is also clear that if our civilization is to evolve to a higher state we need to change the yardstick by which we measure " strength". Robert Kiyosaki

The fact is when women join the workforce, almost everyone benefits.

The article which was published by weforum.org in 2018 states that.

When we talk about:

Higher productivity: when interpreting past data in situations where the gender gap has been narrowing over time, the contribution to growth from improved efficiency (or total factor productivity gains) is overstated.

A portion of the gain attributed to productivity is actually due to the increased participation of women over time.

They continue that the outcome of successful wages will also increase as a result of greater inclusion of women in the labor force since productivity increases.

This is as a result of removing obstruction that holds women back from decent work.

Maybe you never know from scratch that women are great in any financial organization, they are wise and intelligent in sales, marketing, and finance.

Women bring a lot of ideas in finance and financial security: Every woman has the motive of making financial education to enlighten people and also believe that finance is not just to acquire wealth but also to make a difference in the life of others in the field of small or large scale business.

Women never stop learning: Women believe in intellectual stimulation as a motivating factor in their careers.

Elle Kaplan is an American entrepreneur and the chief executive officer and founding partner of lexION capital, she is also a new York-based fiduciary wealth management firm, in 2013, she was named an enterprising woman of the year by enterprising women magazine

She has also been featured as a keynote speaker for several entrepreneurial and enterprising organization.

As KAYCE HUNT says in her interview with FORBES, her work leading the finance team at vision has been exciting, precisely because it affords opportunities to learn "I love the ability to analyze and model data to predict the outcome" she said.

She also encouraged women who might be interested in a finance career to gain a broad understanding of the different functions available so that they can go down the path that interests them most "as she has done".

WE ALL BELIEVE WOMEN ARE CREATING THE FUTURE OF BUSINESS AND FINANCE!

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Women And Their Exceptional Role In Business | Exceptionalways

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Women and their exceptional role in business Women aren't just our relatives or intimate companions but they are outstanding when it comes to business and finance. "More than five million women-owned businesses, the fortune 500 firms of the 21st century generate more jobs than big corporations on that over-esteemed list."

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When considering challenges for women in business, the list is surprisingly long. The result is an environment in which women must be strategic and hardworking to overcome barriers. Gender-based challenges hinder everything from finding fulfillment at work to securing small business loans . Here's a look at some challenges women in business currently face:

Gender Discrimination and Stereotyping Remain Challenges for Women in Business

According to Pew Research, over 42 percent of women in the U.S. workforce have experienced some form of gender discrimination. This can include pay disparities, demotion, or lack of advancement due to family or childbirth-related purposes. Discrimination is one of the top challenges for women in business, with just 22 percent of men sharing similar experiences. The most common forms of discrimination involve:

* Earning less than male counterparts
* Being treated as incompetent
* Experiencing repeated small slights
* Receiving less support from senior management

In many cases, these challenges stem from stereotyping and long-held assumptions revolving around gender roles. For example, holding the belief that women are naturally suited to specific job roles can lead to the assumption that they will be less competent in other positions.

Gender biases continue to cause challenges for women in business. And overcoming these biases can be extremely difficult. Women must perform outstandingly enough to overwhelm the assumptions and stereotypes people hold about their role in the workplace.

Pressure in Balancing Career and Family Priorities

Balancing family priorities with their career is one of the most common challenges for women in business. On a personal level, individuals have made considerable progress on equality and balance in gender roles within the family. A separate Pew Research study found that 57 percent of fathers and 58 percent of mothers believe parenting is extremely important to their identity. However, there is still an imbalance between the time mothers spend on family activities vs. fathers. Based on national averages, mothers spent 9 hours per week performing paid work in 1965, compared to 46 hours for fathers. In 2016, those figures shifted to 25 and 43 respectively.

Additionally, mothers spent 32 hours per week on household chores in 1965, compared to 18 in 2016. That's significantly more time than dads, who devoted only 10 hours weekly on household chores in 2016.

Although there's more balance in the household, women working full time still face societal and relational pressures to take on a heavier workload at home. This can make it difficult for them to maintain a healthy work-life balance .

Gender discrimination can exist in a variety of industries and for many reasons. Some sectors tend to be biased toward men because of prejudices about the type of work being done. For example, the finance and technology industries and jobs that require physical labor, like landscaping, plumbing services , and construction, have all been traditionally male dominant. In another example, a Brookings study found that men tend to dominate high-level digital jobs in engineering, while women are favored in mid-level positions demanding those digital skills.

However, the clearest measurement of inequality within an industry is evident through pay disparities. What a woman earns in pay compared to her male counterpart remains one of the top challenges for women in business. MSN analyzed U.S. Census data to identify the sectors with the largest discrepancy in pay, based on median earnings:

* Finance and insurance: Women's salaries are 60.4 percent of men's.
* Management in business and enterprise sectors: Women's salaries are 65.8 percent of men's.
* Professional, scientific, and technical services: Women's salaries are 67.4 percent of men's.
* Health care and social assistance: Women's salaries are 71.5% of men's.

Gaining access to capital for entrepreneurial endeavors is one of the top challenges for women in business. A PitchBook study found that all-female teams received just 2.2 percent of venture capital funding in 2017. Another 12 percent of funds went to mixed-gender teams, but 79 percent of venture capital investments went to all-male teams. A portion of funding went to teams with unconfirmed gender makeups. This is not only an unbalanced situation but also one that is worse than in the past.

Taking Advantage of Opportunities

There are several challenges for women in business. But several leading organizations are motivated to change the status quo. As of 2017, more than 11.6 million firms are owned by women, employing nearly 9 million people, and generating $1.7 trillion in sales.

Ben Gold is president of QuickBridge, a privately-held financial services firm providing "small business loans" and short-term working capital funding solutions for small-to medium-sized businesses nationwide. Based on its growth, QuickBridge has ranked two consecutive years on the Inc. 500 Fastest Growing American Companies list. Ben is a thought leader in the financial tech. industry and a contributing member of the Forbes Finance Council.

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Top challenges faced by women in business | AZ Big Media

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When considering challenges for women in business, the list is surprisingly long. The result is an environment in which women must be strategic and hardworking to overcome barriers. Gender-based challenges hinder everything from finding fulfillment at work to securing small business loans.

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Even the guilty have a right to life, but that is not the only reason to stand against capital punishment.

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Public support for the death penalty, which reached a four-decade low in 2016, has increased somewhat since then. Today, 54% of Americans favor the death penalty for people convicted of murder, while 39% are opposed, according to a Pew Research Center survey conducted in April and May.

Two years ago, 49% favored the death penalty for people convicted of murder, the lowest level of support for capital punishment in surveys dating back to the early 1970s.

While the share of Americans supporting the death penalty has risen since 2016, it remains much lower than in the 1990s or throughout much of the 2000s. As recently as 2007, about twice as many Americans favored (64%) as opposed (29%) the death penalty for people convicted of murder.

Since the mid-1990s, support for the death penalty has fallen among Democrats and independents but remained strong among Republicans.

About three-quarters of Republicans (77%) currently favor the death penalty, compared with 52% of independents and 35% of Democrats.

Since 1996, support for the death penalty has fallen 27 percentage points among independents (from 79% to 52%) and 36 points among Democrats (71% to 35%). By contrast, the share of Republicans favoring the death penalty declined 10 points during that span (from 87% to 77%).

The trends look somewhat different when considering a more recent time frame. Since 2016, opinions among Republicans and Democrats have changed little, but the share of independents favoring the death penalty has increased 8 percentage points (from 44% to 52%).

Support for the death penalty has long been divided by gender and race. In the new survey, about six-in-ten men (61%) say they are in favor of the death penalty and 34% are opposed. Women's views are more divided: 46% favor the death penalty, while 45% oppose it.

A 59% majority of whites favor the death penalty for those convicted of murder, compared with 47% of Hispanics and 36% of blacks.

Young people are somewhat less likely than older adults to favor capital punishment. Those younger than 30 are divided - 47% favor and 46% oppose it - but majorities in older age groups support the death penalty.

There are educational differences in views of the death penalty. Adults who have a postgraduate degree are more likely to oppose the use of the death penalty in cases of murder (56%) than those whose education ended with a college degree (42%) and those who never received a postsecondary degree (36% some college experience; 38% high school degree or less).

White evangelical Protestants continue to back the use of the death penalty by a wide margin (73% favor, 19% oppose). White mainline Protestants also are substantially more likely to support (61%) than oppose (30%) the death penalty. But among Catholics and the religiously unaffiliated, opinion is more divided: 53% of Catholics favor capital punishment, while 42% oppose it. And while 45% of those who are religiously unaffiliated oppose the death penalty, 48% support it.

In 2015, a more detailed study of attitudes toward capital punishment found that 63% of the public thought the death penalty was morally justified, but majorities said there was some risk of an innocent person being put to death (71%) and that the death penalty does not deter serious crime (61%).
Note: The full methodology and topline for the April 25-May 1 survey are available here (PDF).

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U.S. support for death penalty ticks up in 2018

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Public support for the death penalty, which reached a four-decade low in 2016, has increased somewhat since then. Today, 54% of Americans favor the death penalty for people convicted of murder, while 39% are opposed, according to a Pew Research Center survey conducted in April and May.

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Suffragette (2015)
Norma Rae (1979)

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Female Business Leaders: Global Statistics

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GENEVA (ILO News) - Businesses with genuine gender diversity, particularly at senior level, perform better, including seeing significant profit increases, according to a new report from the Bureau for Employers' Activities of the International Labour Organization (ILO).

The report, Women in Business and Management: The business case for change, surveyed almost 13,000 enterprises in 70 countries. More than 57 per cent of respondents agreed that gender diversity initiatives improved business outcomes. Almost three-quarters of those companies that tracked gender diversity in their management reported profit increases of between 5 and 20 per cent, with the majority seeing increases of between 10 and 15 per cent.

Almost 57 per cent said it was easier to attract and retain talent. More than 54 per cent said they saw improvements in creativity, innovation and openness and a similar proportion said effective gender inclusivity enhanced their company's reputation, while almost 37 per cent felt it enabled them to more effectively gauge customer sentiment.

Companies should look at gender balance as a bottom line issue, not just a human resource issue."
Deborah France-Massin, Director of the ILO Bureau for Employers' Activities

The report also found that, at national level, an increase in female employment is positively associated with GDP growth. The finding is based on an analysis of data from 186 countries for the period 1991-2017.

"We expected to see a positive correlation between gender diversity and business success, but these results are eye-opening," said Deborah France-Massin, Director of the ILO Bureau for Employers' Activities. "When you consider the efforts companies make in other areas to get just an extra two or three per cent in profits, the significance is clear. Companies should look at gender balance as a bottom line issue, not just a human resource issue."

Gender balance in senior management is defined as 40-60 per cent of either gender, the same as in the general workforce. The report says that the beneficial effects of gender diversity begin to accrue when women hold 30 per cent of senior management and leadership positions. However, almost 60 per cent of enterprises do not meet this target, meaning they struggle to reap the rewards. In addition, in almost half of companies surveyed, women account for less than one in three of their entry-level management recruits - meaning that the pipeline to senior management may not deliver the talent needed.

Almost three-quarters of the enterprises surveyed had equal opportunity or diversity and inclusion policies, however, the report says more specific actions are needed to ensure that women are visible and promoted to strategic areas of business.

In an era of skill shortages, women represent a formidable talent pool that companies aren't making enough of."
Deborah France-Massin

Some key factors preventing women reaching decision-making positions were identified. Enterprise cultures that require "anytime, anywhere" availability disproportionately affect women, relative to their household and family responsibilities, while policies that support inclusivity and work-life balance (for both men and women), such as flexible working hours and paternity leave, need to be improved.

Another factor is the "leaky pipeline", the tendency for the proportion of women to decline as the management grade rises. The "glass wall" describes the incidence of women managers in roles such as HR, finance and administration that are considered less strategic and less likely to lead to chief executive and boardroom positions. Fewer than a third of enterprises surveyed had achieved the critical mass of one third of women board members. Around one in eight reported they still had all-male boardrooms. More than 78 per cent of enterprises who responded had male CEO's, and those with female CEO's were more likely to be small enterprises.

"The business case for getting more women into management is compelling," said France-Massin. "In an era of skill shortages, women represent a formidable talent pool that companies aren't making enough of. Smart companies who want to be successful in the global economy should make genuine gender diversity a key ingredient of their business strategy. Representative business organizations and employer and business membership organizations must take a lead, promoting both effective policies and genuine implementation."

Promoting women in business and management

For more information and to arrange interviews please contact the Department of Communication and Public Information at +4122/799-7912, communication@ilo.org.

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Women in leadership bring better business performance

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GENEVA (ILO News) - Businesses with genuine gender diversity, particularly at senior level, perform better, including seeing significant profit increases, according to a new report from the Bureau for Employers' Activities of the International Labour Organization (ILO). The report, Women in Business and Management: The business case for change , surveyed almost 13,000 enterprises in 70 countries.

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With an increasing number of well-known organizations like IBM, General Motors, and Mondelēz International appointing female CEOs, the trend towards women in leadership positions seems to be on the rise. In fact, there are more women running 500 businesses today than at any point in the 63-year history of the Fortune 500.

However, when put in context, that's still only 6.4% of these leading companies. And with recent high-profile stories revealing the BBC's gender pay gap and tales of female entrepreneurs citing an imaginary male co-founder for credibility, it's clear women's inequality is still a big business problem.

We recently hosted a webinar with a panel of business women at different stages in their careers to discuss these issues. To hear their advice and learn from their own personal stories about combating gender stereotypes and championing the cause of women in the workplace, you can watch the webinar below. Or read on for an overview of the advantages, challenges, and opportunities for women in business in 2017.
Our webinar panel consisted of Tessa Misiaszek, Associate Dean at Hult and professor of international marketing and entrepreneurship on our Boston campus. Tessa comes to us with an incredible wealth of business experience, having served as the CEO of Empathetics, run a number of start-ups, and worked as a consultant for Korn/Ferry International. She was joined by current Hult student, Rosey Singh, who has worked in the banking industry for 10 years and is the current president and co-founder of the Gender Equality in Leadership Club on the San Francisco campus. Justine Stacey, an alumna of our MBA program, also joined. Before earning her MBA, Justine spent several years working as an advocate for women's health and empowerment around the world as VP for Girl's Globe. Now, Justine is a marketing strategy manager for a leading financial company.
Advantages of women in business

Diversity-from gender diversity to culture, age, and race-has been shown to foster creativity and innovation. From PricewaterhouseCooper, to Disney and L'Oreal, organizations across industries are seeking to prioritize and benefit from a diverse and inclusive work environment.

Men and women will inevitably have different experiences and backgrounds, which shape their approach to business. Challenging each other and collaborating with people who think differently can breed creativity and promote the innovative ideas that push organizations forward.

"Even with the very best of intentions, we have a tendency to gravitate towards people who are like us. It takes a real leader to say 'I need someone to challenge me.' That challenge can spawn new creativity, innovation, and growth."

- Tessa Misiaszek, Associate Dean, Hult International Business School

While technical skill and knowledge are fundamental to career success, CEOs consistently cite soft skills as the most desirable professional attributes. Although characteristics like effective communication, empathy, and self-awareness are difficult to measure, they are highly valued and can make a real difference to the bottom line. Recent research has drawn a connection between strength of character and business performance-with CEOs who rank highly for attributes like compassion and integrity also enjoying a 9.35% return on assets over a two-year period.

Soft skills and emotional intelligence may prove a key competitive advantage for women in business. A 2016 study published by the global consulting firm Hay Group found that women outperform men in 11 of 12 key emotional intelligence competencies. These competencies included emotional self-awareness, empathy, conflict management, adaptability, and teamwork-all essential skills for effective leadership in the workplace

It's been estimated that women contribute in excess of $20 trillion in consumer spending every year, representing a bigger growth market than China and India combined. Women also account for 85% of consumer purchases.

Despite this, only 11% of creative directors in advertising are women-up from just 3% in 2008. When Boston Consulting Group did a comprehensive study of the "female economy" it's unsurprising that they found women feel undervalued and underserved by the marketplace. With the power of the female consumer in mind, it's evident that women are best placed to tap into that opportunity and bring valuable consumer insight to the table.

Tapping into the insight both men and women offer can make products and services more marketable and a business more profitable. In fact, recent research from McKinsey shows that gender-diverse businesses are 15% more likely to outperform financially above the industry median.

Challenges for women in business

While a number of industries are showing trends of a growing female workforce, sectors like finance, engineering, and tech still tend to be strongly male-dominated. In STEM (science, technology, engineering, and math) industries overall, women make up just 24% of the workforce in the U.S. and less than 15% in the U.K.

Women's under representation could be down to the continued stereotype that an interest in "hard science" is unfeminine. But with STEM occupations projected to be among the fastest growing and best paid, it's important that women feel empowered to gain the skills and embrace the opportunities afforded by a career in science, tech, and related fields. Organizations like the National Girls Collaborative Project and Girls Who Code are working to inspire women to pursue computer sciences and engineering and close the gender gap in STEM industries.

While most executives agree that the best person-regardless of gender-should get the job, the stories of women finding more success with a male or gender-neutral name on their CV demonstrates that unconscious bias still exists.

The women who are in or want to position themselves for leadership roles often feel they come under particular scrutiny. Where men may be encouraged to be ambitious or assertive, women are programed from a young age not to be " bossy ". Underlying gender bias means the same behavior and characteristics-initiative, passion, and taking charge-can be interpreted differently in men and women in the workplace.

Women's own reluctance ask for higher pay is often cited as a factor behind the gender pay gap. When Glassdoor did a recent survey on salary negotiation, it found that 68% of women accepted the salary they were offered, while nearly half of the men surveyed negotiated before accepting a role. It also revealed that when women did try to negotiate their starting salary, the outcome was generally less favorable.

Challenging the notion that women don't ask for raises, a 2016 study from Cass Business School, the University of Warwick, and the University of Wisconsin, found that women are equally as likely as men to ask for a wage increase. But they're also 25% less likely to get one.

It's almost an accepted truth that men have a better sense of self-belief when positioning themselves for leadership roles or negotiating pay. Even highly successful women suffer from "imposter syndrome", feeling inadequate and underestimating their worth. Women believing in their own value and demanding a salary that reflects it is an important step in closing the wage gap, while greater pay transparency can also help to level the playing field.

"Start the process today of understanding that, really, nothing is off limits for you. You can learn any skill. You can speak to anyone. Everything is within your ability. Nourish this growth mindset-that will make you successful in your MBA and applies right into the workforce."

- Rosey Singh, Hult MBA Class of 2017

Opportunities for women in business

For many of forward-thinking organizations, gender equality is becoming a matter of policy, whether it's committing to equal representation of women in the boardroom or hiring diversity officers.

Discouraging and circumventing bias through hiring policy can help organizations to reap the benefits of balance and equality. Rather than political correctness or buzzwords, if diversity, inclusiveness, and gender equality become policy and are embedded in business strategy, businesses thrive.

Making a commitment to things like equitable gender representation, inclusive company culture, and work-life balance-including maternity and paternity benefits-also help organizations to attract top talent. These are a few reasons why companies like Salesforce, General Electric, and Deloitte are cited as excellent places for both women and men to work.

For a growing number of women, the fastest route to the c-suite is launching their own business. In the United States, the number women-owned businesses have increased 74% over the past 20 years-1.5 times the national average. Today's start-up culture empowers women to be their own boss and pay their own salary, defining how they want to work and making the balance of career and family life easier. Entrepreneurship presents a path for women to close the pay gap and rise to leadership positions, on their own terms.

Running their own company also offers the opportunity for women to collaborate with and hire other ambitious, like-minded women, fostering a new generation of women in leadership roles.

To stand out in a competitive job market, many women hone the knowledge and expertise they need through a business degree. The number of women enrolling in business school is steadily on the rise. Whether it's undergraduate study, an MBA, EMBA, or Masters degree, business school offers a valuable platform for women to become subject-matter experts, practice leadership skills, and gain the confidence they need to step into the boardroom.

Business school is also an invaluable networking opportunity and a chance to meet mentors in fellow students, professors, and campus speakers. A mentor can offer industry advice and serve as a sounding board for new ideas. Mentors can also become important career sponsors, offering professional opportunities and helping ambitious and talented women to take their next step up the career ladder.

"The biggest thing I left my MBA with, beyond the hard skills, was this better sense of confidence in myself. Business school was so much more than learning about finance and accounting. It can be intimidating when you're one of the only women in the room at a work meeting. I have a lot more confidence when I'm in those situations now."

- Justine Stacey, Hult MBA Class of 2016

At Hult International Business School, empowering women to lead in business is high on our agenda. We offer courses focused on gender equality and leadership, an active Women in Business club, as well as on-campus events and seminars, discussing, inspiring, and celebrating women in business. Each year we're proud to award scholarships to attract and support the promising women business leaders of tomorrow. Find out more about the programs we offer.

Tessa Misiaszek is Associate Dean for Hult's Boston campus and Professor of International Marketing and Entrepreneurship. Tessa previously served as the CEO of Empathetics, run a number of startups, and worked as a consultant for Korn/Ferry International.

Justine Stacey is an alum of Hult's MBA program. Before earning her MBA, Justine spent several years working as an advocate for women's health and empowerment around the world as VP for Girl's Globe. Now, Justine is a marketing strategy manager for a leading financial company.

Rosey Singh is a current MBA student at Hult. She has worked in the banking industry for 10 years and is the current president and co-founder of the Gender Equality in Leadership Club on Hult's San Francisco campus.

Hult contributing blogger Katie Reynolds is a freelance writer based in London. Originally from Michigan in the U.S., she relocated to the U.K. in 2010 to pursue a master's degree at Hertford College, Oxford. Today, she writes on topics including business, higher education, healthcare, and culture.

Hult offers a range of highly skills-focused and employability-driven business school programs including a range of MBA options and a comprehensive one year Masters in International Business. To find out more, take a look at our blog A Way Up for Women in Business. Download a brochure or get in touch today to find out how Hult can help you to learn about the business world, the future, and yourself.

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Women in business: advantages, challenges, and opportunities Hult Blog

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With an increasing number of well-known organizations like IBM, General Motors, and Mondelēz International appointing female CEOs, the trend towards women in leadership positions seems to be on the rise. In fact, there are more women running 500 businesses today than at any point in the 63-year history of the Fortune 500.

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"Why do some people support capital punishment while others strongly opposed it?"

Present: Monday Week 5

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It's been a historic year for women. There are more serving in Congress than ever before, and a record number are currently running for president in 2020. But even with these significant gains, women-both in the U.S. and around the world-can still find gender equality elusive.

For International Women's Day this year, we asked some of the most interesting women we know-including several of those aforementioned lawmakers and presidential candidates-to tell us: What do you think is the biggest challenge facing women in the U.S. today? And what do you think is the biggest challenge facing women internationally today? Here's what they had to say.

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One of the struggles that underlies all of our policy battles is the continued lack of women in positions of power. From corporate boardrooms, to the courts and political leadership around the world, the lack of women in senior positions continues to stymie progress on issues from pay to humanitarian aid to discrimination in all its forms. The sooner we understand that the lack of women in leadership roles holds back not only women, but all people, the sooner we will be able to advance society as a whole.

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Patriarchy
Keisha N. Blain teaches history at the University of Pittsburgh and currently serves as president of the African American Intellectual History Society. She is author of Set the World on Fire: Black Nationalist Women and the Global Struggle for Freedom (2018) and co-editor of several books, including To Turn The Whole World Over: Black Women and Internationalism (2019).

The biggest challenge facing women in the United States today is patriarchy. This is especially evident in the realm of politics. Regardless of a woman's experience, education or abilities, the patriarchal nature of U.S. society fosters the perception that women are less qualified and less competent than men. What patriarchy has done is convince people that a strong and intelligent woman represents a problem; a disruption to the social order rather than an integral part of it. Biased media coverage of women politicians-stories that focus on women's fashion and looks at the expense of their ideas on policy-underscores this point. It is therefore no coincidence that the U.S. is completely out of step with the rest of the world when it comes to electing a woman as president. While women have maintained the highest office of leadership in Liberia, India, the United Kingdom, Dominica and many other nations across the globe, the same cannot be said for the United States.

From a global perspective, one of the biggest challenges facing women is educational inequality. Despite the many gains of modern feminist movements in the Americas, Africa, Asia and beyond, many still believe that women are less worthy of the same educational opportunities afforded to men. While there is no denying that poverty, geography and other factors contribute to huge disparities in education, patriarchy justifies this denial of opportunity. It feeds the message that men should wield the power and women should occupy a subordinate position in all areas of society. This outdated, yet persistent, point of view fuels educational inequality and a host of other disparities along the lines of gender on national and international levels.

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I don't think it's possible to name just one challenge-from the economy to climate change to criminal justice reform to national security, all issues are women's issues-but I believe a key to tackling the challenges we face is ensuring women are at the table, making decisions. Something I've seen over and over again in my own career is that women in power bring a different perspective, an essential perspective. We made great strides in 2018, with an unprecedented number of women running for office, and over 100 women sworn in to the 116th Congress. But we still have a long way to go; the U.S. ranks 75th out of 193 countries in terms of women's representation in government. And, this is truly a global issue. If you're trying to tackle the world's problems, you should hear from half the world's population. So, we need to keep speaking up on behalf of every woman's right to be heard and realize her power. My mother used to tell my sister and me, "You may be the first, but make sure you aren't the last." I've never forgotten that.

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The extremely potent combination of sexism, racism and economic inequality-this may seem like too broad an answer but it pretty much covers it on both a domestic and global front. All of the individual challenges we may be tempted to rank are symptomatic of these massive systemic power imbalances, working in tandem.

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Trauma-centered feminism
Christina Hoff Sommers is a resident scholar at the American Enterprise Institute. She is the author of several books including Who Stole Feminism? and The War Against Boys. She co-hosts The Femsplainers. Follow her @Chsommers.

The threat of harm is a human constant, but by any reasonable measure, American women are among the safest, freest, healthiest, most opportunity-rich women on Earth. In many ways, we are not just doing as well as men, we are surpassing them. But everywhere, especially on college campuses, young women are being taught that they are vulnerable, fragile and in imminent danger. A new trauma-centered feminism has taken hold. Its primary focus is not equality with men-but rather protection from them. This past June, the Reuters Foundation released a survey announcing that the U.S. was one of the top 10 most dangerous countries in the world for women-more dangerous than even Iran or North Korea. The study was ludicrously flawed and turned out to be a survey of "perceptions" of unnamed "experts." But in the current environment of fear and panic, multiple news organizations reported the absurd findings. This new ethic of fear and fragility is poisonous and debilitating-but it's gaining ground. American women should resist the urge to pretend the world is rigged against us when it is not.

The picture is different in the developing world. In countries like Bangladesh, Saudi Arabia, Cambodia and Egypt women are contending with practices such as honor killings, genital mutilation, acid burnings, child marriage and gender apartheid. However, there is good news. The number of educated women in these countries has reached critical mass and they are making their presence felt. Wajeha Al-Huwaider has been called the "Rosa Parks of Saudi Arabia." In 2008, she created an international sensation by posting a video of herself driving a car. Until a few months ago, women were not allowed to drive in Saudi Arabia. Because of women like her, the laws are beginning to change. Dr. Hawa Abdi, a 71-year-old Somalian doctor and lawyer, is said to be "equal parts Mother Teresa and Rambo." She founded a hospital and refugee camp in rural Somalia that offers a safe space to nearly 100,000 of the world's most imperiled men, women and children. Under her leadership, the settlement is evolving into a model civil society. The challenges facing women in the developing world are daunting. But for the first time in history, a formidable army of brave and resolute women is on the march.

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As the former executive director of the World Food Program I was often humbled by women in conflict or crisis situations who, when asked about their needs, wanted nothing for themselves but asked that we educate their daughters. Education, these mothers believed, would provide their daughters with opportunities they, because of their gender, were denied. Unfortunately, even with adequate education, women here in the United States as well as women across much of the world still lack equal access to opportunity.

Despite decades of notable progress, at home and abroad, a reality in which opportunities are not defined by gender has yet to be universally achieved. Even more disconcerting, in too many places around the globe, women exercising or even seeking their basic rights is interpreted as a direct and destabilizing challenge to existing power structures. Some regimes are now trying to roll back the hard-won rights of women and girls.For this reason, today I join the voices of women leaders from around the world demanding governments, the private sector and civil society reinvigorate and reinvest in the policies as well as in the legal and social frameworks that will achieve worldwide gender equality and inclusion.

Here in the U.S. we recently elected a record number of new congressional representatives. In other parts of the world, political forces threaten to erode the progress that we have made at both the national level and through landmark global agendas. Whether these forces succeed will depend on whether women leaders and advocates of today and tomorrow, and all who stand with them, recognize the urgency and peril of inaction. Mothers and fathers whether in South Sudan or the South Side of Chicago, are doing their part to demand quality education for their daughters. It is up to women leaders and advocates, including the newly minted congressional leaders, many of whom benefit from past collective effort and stand upon the shoulders of so many, to push and hold wide open the doors of opportunity. Ensuring every woman and girl a possibility to lead life to her fullest potential.

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Women in the United States who are caregivers-for children, parents, spouses, siblings or extended family members-have two full-time jobs, while trying to compete with men who have one. And over half of us are the primary breadwinners in our households. The standard response is to persuade men to "help" more. But we need a sea-change, one that can happen only with a normative revolution around the value of care. We must come to see care work-the work of investing in others through physical care, teaching, coaching, mentoring, connecting, advising and navigating-as work that is every bit as hard, important and rewarding as the more individualist work that focuses us on investing in ourselves. We must value care monetarily, by paying far more for it through government and private investment, and socially, by raising the prestige of caregiving at home and care careers (which are among the fastest growing job categories and relatively automation proof). In other words, we must come to see traditional "women's work" as truly equal to traditional "men's work."

Women in the world, particularly in developing and middle-income countries, face the far more elemental problem of still being considered property. Saudi Arabia's system, for one, is open about this relationship, requiring women to get the permission of their male "guardian" to enroll in school, travel or take a job. But in many countries, women are still forced to be legally and socially subservient to men, with no means of gaining financial or social independence, much less equal agency. A global women's movement must thus focus on creating legal and social conditions in which women and men have equal access to nutrition, health care, education, jobs and the ability to control their bodies and choose a mate. We will be making progress when parents around the world greet the birth of a girl with equal pleasure and expectation as the birth of a boy.

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As a working mother of two young children, I believe that the big challenge facing working women is navigating career opportunities while maximizing motherhood. The good news is that economic and political freedom for American women of all races and socioeconomic backgrounds is the highest it's ever been. Working moms do have the luxury of "leaning in" to either their careers or motherhood, but rarely both at once. Enabling a mother to re-enter the workforce where she left off should be commonplace. But solving the "on-ramp problem" for talented women who choose to pause their careers to prioritize family life still eludes us.

The biggest challenge facing women internationally is the fundamental inequality of political and economic opportunity that the majority of women in the world face, but that Americans take for granted. A 21st century feminism should work to extend the human rights, political freedoms, economic opportunities enjoyed by women in the West to our sisters globally.

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Increasing rates of maternal mortality
Daina Ramey Berry is the Oliver H. Radkey Regents Professor of History at the University of Texas at Austin and co-author of the forthcoming, A Black Women's History of the United States (Beacon, 2020).

One of the greatest challenges women in the U.S. and women throughout the world face today are increasing rates of maternal mortality. According to the World Health Organization, 830 women die every day from "preventable causes related to pregnancy." These statistics are even more staggering in developing countries and among women of color in the United States. Black women in particular are the most affected, dying at a ratio of 25.1 deaths per 100,000. According to the Journal of Perinatal Education, the rates for black women did not improve between 1980 and 1990, and these rates are not much better today. Some believe such disparities occur because of a racially divided society in which black women experience higher levels of stress and marginalization causing many of their health concerns to go unrecognized. This leads to untimely and preventable deaths.

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The greatest challenge confronting women in America is a campaign to normalize misogyny and take women's rights backward. It starts with a president who has a long track record of making disgusting and demeaning statements about women. Perhaps even worse, his administration has translated these attitudes into concrete action. For example, despite the rise of the MeToo movement, the Department of Education has actually introduced measures to provide greater protections for college students accused of committing sexual harassment and assault by undermining Title IX. President Donald Trump has also hurt working women and their families by suspending a federal rule designed to close the gender pay gap, introduced significant restrictions on reproductive freedom, and threatened the future of Roe v. Wade by nominating Brett Kavanaugh to the Supreme Court.

On the global front, perhaps the most important issue for the international community is empowering the voices of women. Right now, women and young girls everywhere face an immense range of challenges-from the inability to access food, education and employment to the threat of gender-based violence. Their perspectives and experiences must help shape our collective future. If we want to forge the best solutions for expanding peace and security moving forward, then we need to give smart, dynamic and strong women a seat at the decision-making table-both here at home and around the world.

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Women are the primary or joint breadwinners for a majority of American households. But right now, this economy and our government is not working for them and their families. Today, a woman earns 80 cents for every dollar a man earns, and the pay gap is even worse for black and Latina women. Wages are barely budging in this country but the cost of child care has gone up so much that it's now more expensive than in-state college tuition in most states-making it harder for women and men to work if they want to. Reproductive rights have been under relentless attack even though we know that access to safe abortion services is critical to the health and economic futures of millions of women.

These core economic issues are a huge burden on women and their families. More young women go to college than men, but unequal pay makes it harder for them to pay back student loans. More women are minimum-wage workers than men, but the minimum wage no longer keeps a mom and her baby out of poverty. I don't even want to think about how many women-and men -have been sidelined from a bright future because they couldn't find a decent child care option for their kid. We've got to make this economy work for women and families all across this country.

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What Are the Biggest Problems Women Face Today?

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It's been a historic year for women. There are more serving in Congress than ever before, and a record number are currently running for president in 2020. But even with these significant gains, women-both in the U.S. and around the world-can still find gender equality elusive.