It is interesting to see how during though economic times not just our wallet changes to adapt to the situation, but apparently so does our vocabulary.

The most used words from advertising to news articles to bumper stickers are: Recession, Stimulus, Bail Out, Foreclosure, Incentives. Not that we didn’t know these words before, it’s just that we didn’t use them as often. especially not in the same sentence, like now. Now that consumers’ loyalty is bought in exchange of a month of bills paid or the chance to win gallons of gas.

The message is clear: the financial crisis has arrived and is affecting everybody, and while Governments are elaborating solutions to get us out of this mess as quick as possible, we are left to figure out how to balance our choices in order to maintain our quality of life.

Bottom line is the quality of life. Recession or not, we still want to have fun, laugh at times, entertain ourselves, spend time with our family and friends. These things will never change.

For us marketers, the question is: Where are people going to choose to spend their money to maintain their quality of life? Or, how can we offer consumers a good quality of life during these though economic times?

Looking at past recessions,  after a while consumers got tired of being reminded of how less disposable income they had, or being terrorized about the increasing line to collect unemployment. They started to look for diversion and distraction.

So I believe that companies that will invest in programs that will allow consumers to enjoy their life, lighten their hearts and improve their quality of life, will win their devotion.

Corporate sponsorships of cultural or artistic productions that allow consumers to enjoy them free or at fairly low prices; contests that offer the chance to win a family trip somewhere that  otherwise could not be afforded, these are the things we should look at.

After all, this is the meaning of Sustainability: Improving quality of life for the current generations and the ones to come. If we don’t take care of the current generations, there is no hope for the ones to come.

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As disposable income decreases, consumers are increasingly become more conservative with their spending, and try more than ever to get the most bang for their buck. They also want to deposit their money with companies they trust, think will be around for a while, and share their values.

Sustainability may actually be the best defense against market volatility during uncertain economic times.

A recent A.T. Kearney analysis reveals that during the recent economic slowdown, companies that show a “true” commitment to sustainability appear to outperform industry peers.

Companies with a history in green innovation have reaped the most benefits. Those who continue to make meaningful investments will continue to prosper, both in terms of business results achieved and public perception.

Sustainability is the answer also when it comes to how companies can save money. In many ways, “being green” or sustainable business is smart business that focuses on efficiencies in energy, waste, and processes. Efficiency equals cost savings.

Sustainable practices are also a good way to retain employees, that feel more connected and able to make a difference on a bigger scale through the company they work for. TNT created the Planet Me challenge that involves the whole company worldwide and their employees. Toyota is asking its costumers to share their ideas about sustainability with its new campaign WHY NOT. Clorox Green Works leader in the market one year after launch.

Despite the economic recessions consumers will continue to make purchasing decisions, sustainability and CRS programs could very much be the ones that will impact their choices.

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As we have seen in recent weeks through voter polls, the record-setting voter turnout, and now the historic election of Barack Obama, the economy is a clear priority for Americans across the nation. In the midst of the imminent global recession and international efforts to salvage our economies, where do sustainability and corporate social responsibility lie in this equation? Is it an ideal of the past, or could it be the key to the future? In our current global climate, is it irrelevant, or more relevant than ever before?

According to the recent Best Global Brands 2008 report, companies from Honda to GE to BP have been earning a bump in their ratings due to significant investments in sustainable products and business practices. Among the top ten are companies that have significantly invested in sustainable practices or products, such as GE, Toyota, and Google.

According to Jez Frampton, global CEO of Interbrand, “The Best Global Brands 2008 ranking is a reflection of the global economy – the current credit crisis in the U.S., the growth of emerging markets and the increased emphasis on sustainability are all key trends that resulted in brands rising or failing on the list.” So even though consumers are deeply concerned with saving money, sustainability is still relevant and cannot be ignored. It continues to drive brand value across all sectors, but the key is smart sustainability.

Not only have these companies been earning a bump in their ratings, but a serious bump in their revenues as well. GE recently announced that revenues from its Ecomagination line hit $17 billion and rising, with sales likely to jump 21% in 2008.

Sustainability is critical in this new market for creating brand value, purchase loyalty, and influence—but it cannot be the main player in the equation. What will help ensure consumer loyalty and create brand value in this economic recession is not an emphasis on green, but an emphasis on the economic value of the product, which is augmented by the product or company’s sustainability.

But what do consumers think? How are they behaving?

While green products have been all the craze, market research has shown that mainstream consumers care more about the cost than about the environmental impact. Of course they are interested in the environment, but first and foremost is how the purchase impacts their wallet. This has been proven in products like Philips “Marathon” light bulb and the Toyota Prius, but it could not be more relevant in today’s economy.

Philips “Earth Light” light bulb, which emphasized the environmental benefits of the super-efficient bulb, had lukewarm reception, but when they changed the name to “Marathon”, primarily emphasizing the longevity of the bulb and secondarily emphasizing the environmental aspect, Philips saw a turnaround and boom in sales .

Another well-known example of a successful green product is the Toyota Prius. However, Toyota has learned that touting the Prius for it’s money saving efficiency has been far more important in winning over customers than advertising it for its “green” benefits, though the environmental aspect is far from ignored.

Bottom line: the financial crisis will create a ripple effect that not only calls for more regulation within the financial sector, but in all sectors of business as we will begin to see regulation regarding pollution, energy efficiency, waste, and recycling for business operations.

Staying ahead of the curve creates a competitive business advantage that can drive companies towards innovation while also creating value among share holders and consumers. It is also a bottom line argument—greening your operations saves money and creates value.

It’s a win/win situation.

A lot remains to be seen on how this global economic crisis will affect the green economy. But perhaps it might even do it some good. Could it be the force needed to weed through green-washing and over-saturation? Could it provide focus and direction for green products and companies forced to take a hard look at their product, mission, and operations? Will it trim the fat and produce a movement with real meaning and impact? Perhaps it will even be the key driver needed to pull us out of this global recession. Only time will tell. But let us not sit idly by…what will you do to get more green?

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