Is a carrot better than a stick?

   For many companies it is the fear of reputational damage that causes them to engage actively in corporate responsibility. They fear the power of consumer boycotts and information campaigns relating to bad practices.

   I came across an interesting idea today called Carrotmob. The thinking is that instead of boycotting companies for bad practices we reward them for good practices through organised consumer spending. Watch a real example of carrotmob in action here. It’s a fantastic idea that originated in the San Francisco area. (Isn’t that area a hotbed for business creativity? If anyone has a short-term contract for a CR consultant there I’d love to go!)

   It will be interesting to watch how Carrotmob develops. On their website it says that all companies like all people are a mixture of good and bad. For example a company may have great environmental policies and good sourcing but some poor HR policies. Rather than berating them for the poor HR policies let’s praise them for the good stuff they’re doing and hope that’ll encourage them to get better in all areas. It got me thinking that it’s a bit like how we treat people. In choosing friends or lovers we know they’re not perfect but we make decisions on whether the good stuff outweighs the bad. If they’re lovable enough we stick with them and maybe over time even influence their behaviour in some of the less lovable things they do. It seems Carrotmob is treating businesses just like this.

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