News

Lessons in recessions

Wed, 10 Jun 2009 22:48:00 GMT

The ‘r’ word is all pervading and persuading. Last month, Prime Minister Kevin Rudd finally admitted what most of us had already interpreted through the broadcast media. It would be virtually impossible for Australia to avoid slipping into a recession.

“It is clear that the impact of a worsening economic global recession will make it virtually impossible for Australia to sustain a positive economic growth for the period ahead, with impacts, of course, for budget and employment, which underlines the importance of global action in response to the global recession,” Prime Minister Rudd said.

While words like the economy and recession continue to be thrown about with such alarming regularity, it is taken for granted that everyone thinks like an economist and therefore knows how the economy is measured and what a recession is. In reality, they are concepts that few audiences fully understand and know how to define.

Business Matters spoke with economy experts in order to communicate the language of economics and define the term and process of a ‘recession’.

Technically, an economy is in recession if it experiences two consecutive quarters of negative growth in the country’s gross domestic product (GDP).

However, the broad definition is not universally agreed upon because the word itself had wider meaning. Generally, all markets tend to go down when there is a recessionary period and markets go up when it is climbing out of that period so consideration must be given to a broad range of economic indicators.

According to the Australian Bureau of Statistics, changes in the Australian economic indicators to watch include national and international accounts; consumption investment; production; price indexes; labour force and demography; incomes and labour costs; finance markets; and state, national and international comparisons.

RECESSION OR DEPRESSION?

The old joke between economists states that a recession is when your neighbor loses his job, and a depression is when you lose your job. Jokes aside, a downturn across a wide range of economic indicators is generally labeled as a recession while an extended period of economic stagnation usually stops being referred to as a recession and becomes a depression.

The Great Depression in the 1930s lasted for many years, but prior to that, any downturn in economic activity was usually labeled as a depression. It was only during the Great Depression that the term recession was developed to differentiate the length of these phases.

Comparing the Great Depression to the current recession helps to put things in perspective. The 1930s witnessed the United States’ GDP drop by 33 per cent, while the current economic downturn has seen their GDP drop between just three and four per cent.

If we look at global GDP, it is clear that our country is not in such a bad space. Recent data released in Australia said that for the first time in eight years, GDP was well below market fall costs of 0.2 per cent, while experts predicted it would rise to between just negative 0.3 and 0.5 per cent. It would seem that Australia is a long way from any great depression.

FEAR FACTORS

Recessions, as well as depressions, can be activated by many factors. The most common factors are typically a sustained period of growth followed by inflation - price rises caused by a demand that exceeds supply - followed by rising interest rates. This reduces the enthusiasm for spending and therefore makes it difficult for businesses to raise their prices, which causes economic stagnation.

Refocus financial and lifestyle management director Neville Martens agreed that this cycle was the main reason behind why recessions had to occur.

“Normal economic decline would be as a result of high interest rates, a lack of spending and a drop in profits, share prices and market prices,” Neville said.

“At this point, it becomes necessary to look ahead and stimulate the economy again. In order to that, there tends to be a drop in interest rates because as they drop, mortgage and vehicle repayments become easier.

“By encouraging more spending and more credit, you push inflation up but at the same time, you have rising consumer confidence people where people feel good, investments and interest rates go up and then you have to slow the whole thing down again.”

Recessions can also be caused by a disintegration of the distorted perception in which people feel wealthier than they actually are, or value their assets at a higher rate than what they are actually worth.

“Recessions are driven by sentiment, by the way people feel. If they feel less willing to spend money that may be directly or indirectly related to where interest rates are on the interest rate cycle,” Neville said.

“Ultimately, putting that mix together you are going to have a situation where share prices drop, business turnover drops, there is no spending, which is usually driven by high interest rates meaning mortgage rates, large debts, and asset repayments rise, so you spend less elsewhere.”

Words like recession present daunting images of people losing their homes, losing their jobs, businesses closing, and general poverty across the board. When scare mongering and fanning the flames of a recession begin, it is hardly helpful.

The Cycle of Market Emotions is a perfect example that points out how volatility creates uneasiness, which eventually leads to panic. Neville explained that when people invest, they are usually pretty optimistic. The markets then start rising, and there is excitement about making a great investment. It becomes a thrill and there is encouragement to invest more money. However, this is where the market reaches the top and the point of maximum financial risk and people become euphoric about their investment.

At the point of maximum financial risk, the cycle turns and things start going down a little. People become a little anxious which is followed by denial and ultimately people become a bit fearful and desperate, then they may panic. It would seem we have reached this point.

“You speak to anyone about the value of their assets today. Their home, investments, they are all down. But if they understand why and how it will come right, then they shouldn’t panic or capitulate.”

It would be good to point out that the bottom of the cycle is also the point of maximum investment opportunity. According to Neville, it is crucial to apply logic and strip out emotion because if a decision is made by greed or fear, mistakes will be made.

“If common sense picks a fight with emotion, the latter stands no chance,” he said.

SUNNY SIDE UP

The 2008 CIA World Factbook has claimed that Australia’s economy is the 14^th largest economy in the world and reports from Bloomberg have revealed a clear pattern that the market in Australia always recovers from recessions strongly. The good news is that positive changes will start to happen but unfortunately, the bad news is that things might get a little worse before they get better.

“The sad thing is that if we look at the cycle, even job losses are necessary. It is understandably hard for those people, who have lost their job, but from an economic perspective, the economy will recover quicker, it will be healthier, and those people will be reemployed again,” said Neville.

“I wouldn’t give you a date but we are closer to the end than the beginning, by probably quite a long stretch. With the advent of computerisation, combined with stimulus packages, I think we will slowly start to climb out of this recession.

“In the next few years we are going to get some great returns and we will probably look back and say that this was the best investment period of our lives.”

Neville also added that the opportunities that lay ahead were exciting.

“It has been such a massive, negative impact and usually as a result of that impact you have a massive opportunity for investment and to make money. As much as it hurt going in, it will be great fun coming out of it,” he said.

As the economy picks up again, try to remember what they say: the bigger the party, the bigger the hangover.

WHAT’S THE TIME?

The concept of the investment clock has been around since 1937, and can be used as an indicator for understanding the cycle of the economy. According to the Australian Securities Exchange, the current economic cycle has been so volatile that the time on the clock has moved from 12 to seven in just 17 months.

Business Matters talked to three economic experts to find out if they were able to name the time on the economic clock, as well as provide their views on the clock’s value.

Neville Martens, financial planner, REFOCUS

“I think we are about at seven. Usually in a cycle there is a period where interest rates start very low. As they go up there is a slow down in the economy and a slowdown in people spending money. The broad overview is you know it must be seven because of where interest rates are, and where inflation and GDP is heading. We also have the benefit of hindsight.”

Bob Mark, financial planner, ABN AMRO MORGANS

“The economic clock is not really exact, especially because the causes of this recession have come from left field. It is not really a tool that we use because it is also difficult to identify how long it is between each of the steps. But by and large, the cycle of the economic clock holds true and is appropriate.”

Andrew Buhk, financial advisor, DBSN GROUP

“My view of where we are is about 4.30 to 5, only because I think we still have some more pain to go before we begin economic recovery. With the stimulus that has been put in across the world, I see us potentially climbing towards recovery by the end of the year. The biggest issue is that nine tenths of the world have not experienced this kind of financial turmoil so I believe that this creates uncertainty as to whether we come out quickly or slowly.”

Get into Business - Franchises

Wed, 10 Jun 2009 23:04:00 GMT

Whether you are an experienced or inexperienced business owner, our ‘get into business’ series will provide you with a useful guide to understanding the main issues prospective business owners are faced with. The three-part series will feature the key options of buying a franchise business, purchasing an existing business, or building your very own business from the ground up. This edition will focus on buying franchises, which are a good option particularly for anyone that has not previously owned a business.

You open the paper, only to read more about companies laying off staff, rising unemployment, and businesses that are failing left, right and centre. While you realise that the media has been reporting economic disasters with over-enthusiasm lately, you still can’t help but wonder if your job is next. Your future is in your boss’ hands and you are tired of it. You have always wanted to go out on your own, wanted to be the one who calls all the shots and wanted to be your own boss.

With unemployment numbers continuing to rise, there is will be no shortage of perfectly experienced people hunting for work. During the process of finding another job, going out on your own may be the last thing on your mind during a period of economic downturn but believe it or not, now could just be one of the best times to crank up the entrepreneurial spirit and take the steps to owning your own business.

Without the security of solid employment, there has been a surge of interest in franchises as people are considering buying a business as the next step in career options. Franchising in Australia is a business sector that has achieved phenomenal growth, becoming a highly significant and dynamic business activity in the economy. In fact, never before in our country’s history has there been such interest in buying franchises.

Surveys conducted by the Franchise Council of Australia (FCA) indicated that the growth rate of franchise systems from 2006 to 2008 was 14.6 per cent, with an estimated 1100 in operation. The surveys also found that a total of 28 franchised organisations appeared in the 2008 BRW’s List of Top 500 Private Companies in Australia.

According to IBIS World, the franchising sector in Australia achieved revenues of over $150 billion during the 2008 financial year, and managed a six per cent growth against a GDP rate of 3.5 per cent. The top 20 growing franchises had revenues of just under $1 billion with an average growth rate of 66 per cent.

Evidence even suggests that franchises appear on track to do well despite a slowing economy. FCA executive director Steve Wright told the Sun Herald that in the 1992 recession, franchising performed well and he expected it to do well again now.

“The number one franchise buying and selling website franchisebusiness.com.au, has reported increases in site traffic and advertising by site members in the early stages of 2009,” said Steve. “Most importantly, (they) do relatively well in a downturn.”

“Statistics for failure in the franchise industry in Australia are quite low,” Steve said. “Five years after buying a franchise, more than 90 per cent of franchisees are still in business. Compared to the figures for small business, franchises are still an extremely good bet.”

Hallmark Business Sales principal Harvey Weyman-Jones explained the advantages of buying a franchise during the current economic conditions.

“This is probably the best time and best value to buy a business than what we have seen over the last 40 to 60 years,” said Harvey.

“Prices have come down a bit than from what they were two years ago ... so they are buying something that was a bit cheaper than it was two years ago, in whole price terms, but it is actually costing them less money to borrow to buy it. So, they are actually very good value,” he explained.

“If the business is sustainable and continues to trade profitably through these slower times, and comes out the other end as a successful business, then after a few years the buyer will say ‘that was the best thing that ever happened to me’.”

There are many reasons why a franchise makes sense, particularly for business people looking to get into owning a business for the first time. While the temptation of becoming your own boss will stand out to the entrepreneurially inclined, there are many other advantages that come with owning your own business.

Harvey explained the main advantage of owning a business was a sense of security.

“Business owners are the last to get fired and are not subject to anybody else making the decision for them to lose their job,” he said. “In other words, they are masters of their own destiny.”

“You are also buying yourself an asset that you can sell at some stage in the future, hopefully for a larger amount of money than what you paid for it,” he added.

Owning a franchise system can offer further advantages to being your own boss, with instant access to proven brand recognition, an established distribution model, wide networks, all the training you need, as well as a big hand with marketing.

“Franchises can be very good business, whereby they are a shoulder to lean on for the inexperienced business owner. There is someone to lean on to talk them through the problems which they may have had, which is part of paying the franchise fee,” said Harvey.

“You are also paying for a well known brand, as opposed to starting up a business with a brand name where nobody knows you,” he said.

Buying a franchise also allows the franchisee to buy support, systems and procedures that have proven to work and come with collective resources such as administrative head offices, call centres and warehouses.

Harvey explained that for the more inexperienced buyer, franchises were good because there was less risk involved.

“We tend to value franchises at a higher multiple of earning than your ordinary individual business,” said Harvey.

“For example, your Subway restaurant compared to your ordinary sandwich shop. Each one earns the same amount of money but the Subway restaurant would be worth more because of the perceived lower risk.”

However, buying a franchise can also present some limitations. According to the Retail Marketing Survival Guide, the fact that there is a strict Franchising Code of Conduct to be adhered to is one of the restrictions.

Franchises can also be quite rigid because there are things that need to be done a certain way. Most promotional initiatives must pass the franchisor’s approval, which does not always suit everyone.

“Alternatively, if something goes wrong with the franchise name, that has nothing to do with you, it could end up affecting you and that is a negative,” said Harvey.

While the franchise industry has an impressive success rate, it is worth remembering that there is no business venture that comes without risk. The best advice to get started out in franchising would be to do your research so that you are well prepared. Harvey suggested speaking to a professional, whether it was a lawyer, accountant, business advisor or business broker.

Organisations such as the FCA and the Australian Competition and Consumer Commission also provide extensive information about the franchise industry, franchising codes of conduct, advantages and disadvantages, obligations, checklists, questions and much more.

The necessary information you will need to get you started is available from:

The Franchise Council of Australia: www.fca.gov.au
The Australian Competition and Consumer Commission: www.accc.gov.au

Great Expectations for Customer Service

Thu, 11 Jun 2009 01:09:00 GMT

There is plenty of evidence confirming that exceeding your customers’ expectations can be a challenging task. In response to the collection of letters we receive about poor levels of customer service in retail, we have taken a closer look at how the experiences and expectations of consumers have shifted. Ellie Cummins sat down with marketing academic Debra Harker to discover if the level of customer service is deteriorating, or if customers are simply expecting much more.

Today’s world of retail is a turbulent one and there are many challenges that retailers need to understand and leverage. In addition to the consequences of a fluctuating economy, there is ferocious competition that has provided an overwhelming array of choices for customers.

University of the Sunshine Coast Associate Prof of Marketing Debra Harker said the past few years have seen significant changes in how Australian consumers shop.

“You go from 30 years ago when we didn’t have the internet and people just learnt through word-of-mouth and perhaps reading a bit,” Debra said. “Nowadays consumers are computer savvy and inform themselves all the time with the internet.”

As consumers become increasingly informed, a significant shift in the retail industry has taken place.

“People are also now more aware of their rights … when consumers know their rights you get this sense of consumer knowledge, which is very important for consumer confidence and consumer empowerment,” Debra said.

With more knowledge and power than ever, customers understand that they do not have to put up with poor customer service, so they move.

“People are much more willing to switch, so they are more likely to switch brand and store loyalty,” Debra said. “The costs of switching these days are much easier which makes people less brand loyal.”

Customer service has always been one of the crucial factors behind conducting a successful business with high-quality customer service helping to establish customer loyalty. Yet statistics released by the Australian Customer Service Awards (ACSA) revealed that the reason the average business turned away 68 per cent of its customers was due to poor service. ACSA director Alan Lowe said “if you don’t take care of your customers, someone else will.”

To offset the growing competition in retail, many businesses are investing large amounts of time and money in finding ways to attract and retain customers. While most businesses have sound investments in advertising, marketing and promotions, consistent customer service seems to be an area where businesses often neglect. And there is hardly any sense in paying to get new customers into the store, if they are likely to be unimpressed when they get there.

There is no doubt that consumers have been trained to expect certain things during the retail experience. In general, consumers are not solely interested in the quality of the product or service being purchased, but they also seek the additional elements of service, which includes the obvious greetings, assistance when it is required and understanding when making a return. So, just where are businesses going wrong?

Debra said it was important to come back to basic marketing, with one technique being to mirror the staff with the clientele.

“If you have Generation Y store, then you staff it with Generation Y people because you are going to get Generation Y customers come in and they can understand each other,” she said. “I think empathy is a big thing … how would you like to be treated in that store?”

Many retailers have very detailed manuals that list what should be said as soon as a customer walks in the store but because everyone is different, people do not always relate to the textbook example.

“We need better trained staff rather than hiring the cheapest you can get. It seems obvious that you train your staff in things like body language and non-verbal cues,” said Debra.

For the more expensive, high-involvement purchases there are small things you can do that customers genuinely appreciate. Offer a cup of tea or coffee for those customers that are testing out the sofas and lounges in a furniture store. It is about finding those things that don’t take a lot of effort but delight the customers. The simple ways to manage and exceed customer expectations.

From the retailers’ perspective, staff may not be the only ones to blame for a dissatisfactory shopping experience. As generational changes occur, customers need to take some responsibility with old-fashioned manners and patience.

“You can’t always beat up the manufacturer,” she said. “People want things now and they can’t always have them now. There is a trade off between wanting it now and getting exactly what you want in terms of colour and finish, but you are going to have to wait for it.”

Overall, Debra believed that as consumers become more protected through legislation, the Trade Practices Act, Consumer & Governmental Affairs Bureau, and the Australian Consumers Association, customer service had actually improved.

“We all think customer service has got poorer but I actually think it has gotten better. The trouble is you notice bad service much more than you notice good service. It hits you in the face,” she said.

Unfortunately, consumers tend to tell more people about bad experiences than good experiences.

“Good marketers will use complaints as a way of improving business, building a relationship with the consumer, and as a way to gain market intelligence,” Debra said.

To become a business that is renowned for open communication, Debra suggested providing customers with a platform to tell them about their negative experiences.

“If you never ask, you will never know,” she said. “People don’t necessarily want to complain all the time but perhaps you need to have the negative feedback before you get the positive.”

Why businesses lose customers

Customer turned away because of poor service - 68%
Customer unhappy with product - 14%
Customer attracted by competition - 9%
Customer influenced by friends - 5%
Customer moves away - 3%
Customer dies - 1%

Source: Australian Customer Service Awards, 2009.

Marketing Myopia Revisited

Wed, 10 Jun 2009 23:04:00 GMT

When Harvard Business School academic and marketing king Theodore Levitt wrote Marketing Myopia back in 1960, there was a significant shift in the marketing landscape. The article was considered to be the turning point in the acceptance and respectability of marketing. We find out if the classic marketing read is just as applicable today, as it was almost 50 years ago.

Marketing Myopia was as much about strategy as it was about marketing, but it introduced the influential notion that businesses will perform better in the end if they focus on meeting customers’ needs instead of concentrating primarily on selling products. Levitt argued that businesses paid too much attention on producing their products and too little attention on satisfying their customers.

Notably, he introduced the famous question of “what business are you really in?” by pointing out that those in the train business had lost out to the businesses of planes and motor cars because they thought they were only in the business of running trains, rather than that of providing customers with transport.

“Railroad companies thought they were in the business of making trains. They invested heavily in developing a faster, more powerful and more comfortable product for their market. But people don’t wake up in the morning saying, ‘I want to ride a train today’. Rather, they say, ‘I need to travel across the country today’. Thus, the railroad companies were not in the business of making trains; they were in the transportation business,” Levitt wrote.

Levitt explained that it was the myopic perspective that has prevented the rail companies from seeing how cars and other methods of transportation had presented opportunities for the industry, and not just competition. Levitt argued that if those in the railroad business had adopted the perspective of being in the transportation business, had open minds and embraced the opportunities, the industry would have continued to grow and there would be a good chance that many would still exist today.

Learning from this lesson requires us to evaluate the example in our own current business context. It requires us to truly understand our target market and ask ourselves what they really need? Does our market really need a faster, more reliable product or service with additional features? Or would it be better to find an entirely different product or service to satisfy their real need? This, of course, will depend on understanding the current needs of the marketplace.

The reality is, in tough times consumers want greater value. With a global crisis, market volatility and nervous consumers with little confidence on our hands, we could potentially be entering a period where materialism and consumerism will be avoided. Instead of just going out and buying whatever they want, consumers are more sensitive and will compare prices and seek more value now.

Social researcher Hugh Mackay told AdNews last year that he thought an anti-materialism attitude had been brewing for the last couple of years.

“Consumers will be more cautious and values driven than value-driven,” Hugh said.

Hugh, who recently celebrated 30 years of publishing the Ipsos Mackay Report said the current climate was a tough time for marketers.

The Seed managing director Sean Adams was another researcher who had picked up on the fact that Australian customers were seeking more meaning. He also told AdNews, who are keen observers of the marketing and advertising industry, that we could expect to see a shift in people’s priorities.

“It will be less about keeping up with the Joneses’ and more about ‘leading a fuller life than the Joneses’. It will be less about buying things to make you look good and more about buying things to make you feel good,” he said.

So what does the changing consumer mood mean for businesses and what advice is available?

Chilli strategic marketing planner Carlee Driscoll said her advice for businesses in a world of post-materialist consumption, was to make your best offering easy and obvious to find.

“In these times where companies and their consumers are looking to tighten their belts, smart businesses are focusing clearly on niche products or services that will genuinely deliver revenue and prospects for them,” Carlee said.

“By understanding what you need to deliver for your business, you can focus on the product or service that delivers most,” she said.

Your unique selling position could be the product (or service) that drives the most revenue for you, the product that you are 'famous' for, the product that your ideal clients can afford, or the product that offers you the best opportunities to up-sell.

“For example you may be an accountant that services both the domestic and commercial markets. If your best revenue comes from your 'business strategy' work as opposed to 'annual tax returns', then wouldn't you spend most of your time and effort marketing and promoting your 'business strategy' line of work?” Carlee said.

“A slightly different and effective approach is to market the niche product or service that gets people through the door with a view that you will then up-sell them to your more lucrative products. That same accountant may find that offering monthly BAS services for medium size businesses is an ideal marketable entry point,” she said.

Carlee pointed out that this does not mean ignoring the rest of the products and services your business offers.
“By all means, your business should still be offering the full gamut of your products and services but this is about what you focus your time, money and energy on promoting. You can still service all the other inquiries but if they are not your core focus it may be uneconomical to devote significant marketing dollars in these areas,” she said.

Historically through the boom, large amounts of marketing spend could be afforded on broad, mass markets and multiple products and services, but stretching your marketing dollars in tight times may simply dilute the overall effect.

“It is unlikely that you can attract and please all people with all needs all of the time, so why spend marketing dollars trying to,” Carlee said. “Focus your budget on a specific market, allowing you to market with a greater frequency across a fuller media mix.”

Marketing Without Money authors John Lyons and Edward de Bono have also written about the importance of creating focused value in business, and understanding their influence on human behaviour.
In order to focus on understanding values, the authors claimed it was necessary to properly understand the four value drivers including convenience, quality of life, distraction and self importance values.

“The saying ‘you can’t please all the people all the time’ is true in business as it is in personal life. The goal may be to please some of the people all of the time. But the reality for most businesses is to please some of the people some of the time,” they wrote.

“The question arises: ‘For whom are we creating outstanding value?’ If we try to be all things to all people, we may be successful short term but soon we will be undermined by competition.”

During this period, which will undoubtedly affect customers’ purchase behavior and preferences, it will be wise to offer a variety of choices for those customers who want it but for the rest, it will be about making your best key product or service easy to find.

While business growth may be temporarily threatened, slowed, or stopped, there may be underlying profitable opportunities for those businesses that are customer-oriented instead of product-oriented. However, identifying those opportunities may just require a small step back to lose the myopia and gain a more objective perspective.

Which Town is Downtown?

Wed, 10 Jun 2009 23:03:00 GMT

Downtown. I can’t help but start singing Petula Clark’s “when you’re alone and life is making you lonely you can always go downtown” every time I even hear the word. Downtown is easy to find if you are in New York City but ever wondered where exactly ‘downtown’ would be on the Coast?

The local community got to answer this question by having their say on the Sunshine Coast Regional Council’s (SCRC) Position Paper and consequent plans to create a principal economic and social hub in the heart of Maroochydore. The first round of public consultation and talks ended last month, with Council now beginning the process of reviewing the submissions and considering recommendations.

As we await the results from the community feedback period, Business Matters discovered that both the official and unofficial opinions of the local community were varied in identifying the ‘downtown’ of our town.

In 2005, Maroochydore was identified as the region’s Principal Activity Centre under State Government’s South East Queensland (SEQ) Regional Plan 2005 – 2026 and more recently, under the Draft SEQ Regional Plan 2009 – 2031.

The role of Maroochydore as the Principal Activity Centre for the Sunshine Coast region was also recognised in the in the SCRC's Growth Management Position Paper and reconfirmed in the Maroochydore Centre Position Paper, which was unveiled in January, this year. The Maroochydore Centre Position Paper sets out the Sunshine Coast Regional Council’s vision to achieve this evolution from a coastal town to a distinctive and thriving coastal centre.
Upon release of the Position Paper, Sunshine Coast Mayor Bob Abbot said Council recognised the important role Maroochydore would play in managing future growth for the region, and the Paper was a significant step in the planning process.

“Maroochydore has long been earmarked as a regional focal point for business, residential and community activity with the potential to provide significant local and regional benefits,” Cr Abbot said.

Cr Abbot said the direction would ultimately provide Sunshine Coast residents with benefits like job opportunities, affordable and diverse housing, significant areas of open space and a range of community facilities and social infrastructure.

According to the project overview, in order for Maroochydore to fulfil its Principal Activity Centre role, the centre will need to create a true community and lifestyle hub; build a cohesive character and identity; attract the investment, employment and commercial activity, which will facilitate economic self-containment; and to foster a more sustainable future.

While Maroochydore appears to have claimed the ‘downtown’ title, I was curious to find out if the Principal Activity Centre was just a modernised term for CBD, which itself was once the modernised term for town centre?
In addressing the seemingly complex terminology surrounding the issue, SCRC Regional Strategy Unit project leader Tamara Clarkson assisted in clarifying the differences between the titles.

“The CBD is the central district of a city, usually typified by a concentration of retail and commercial buildings,” explained Tamara. “The term town centre is similar to CBD in that both serve the same purpose for the city, and both are seen by a higher-than-usual urban density as well as the often having the tallest buildings in a city. The town centre will often have a civic focus,” she said.

The current Draft SEQ Regional Plan has defined a Principal Activity Centre as centres that serve catchments of regional significance and accommodate key employment concentrations. The plan also states that Principal Activity Centres serve business, as well as accommodating regional offices of health, education, cultural and entertainment facilities that have governmental and regional significance. In addition, they also serve as key focal points for regional employment and in-centre residential development.

Representatives from the Regional Strategy and Planning Department highlighted what opportunities Maroochydore would present for those businesses both inside and outside of the Principal Activity Centre.
Senior Policy Officer Roma Stevenson said Maroochydore would provide the opportunity to create a heart for the Sunshine Coast, including vibrant regional businesses and a community hub that offered diverse and dynamic lifestyle opportunities.

“The provision of a diversified, viable and positive commercial environment maximises opportunities for a range of employment and business investment, particularly in innovative, knowledge-based businesses,” Roma said.

“Workforce and customer access will also be facilitated by significant local residential development, together with high quality, fast and frequent public transport service from all major residential centres throughout the region, including the hinterland.”

Roma also said that the response from the general community had been positive.
“Generally the response or reactions from the business and general community have been supportive of Council's initiative to establish a vision for the long term future of the Maroochydore Centre.”

However, not all locals have the same opinion on the issue. Nambour Chamber of Commerce president Alex Blake argued that Nambour was the historical town centre of agricultural and commercial activities on the Sunshine Coast.

“We can all make noise about which is and which isn’t going be the main activity centre but this has little to do with actuality,” said Alex.

“Nambour still has the main railway station, central hospital … all of the peripheral medical activities, five main high schools, the main show grounds,” he said. Nambour also hosts the administrative headquarters of the Sunshine Coast Regional Council.

“Our access is second to none on the Sunshine Coast and business investment is just starting. Nambour is currently listed in the top fifteen investment spots in Australia,” said Alex.

“Nambour may not be listed as the main activity centre by name, but watch this space.”

Business Matters contacted a number of businesses representing a wide span of industries located outside of the Principal Activity Centre, to find out how the announcement would affect their businesses. Most business owners and operators were unwilling to comment on the somewhat controversial issue. Two leaders in he business community were prepared to express their views, which have been published below.

TRAVIS SCHULTZ
SCHULTZ TOOMEY O’BRIEN LAWYERS
INNOVATION PARKWAY, KAWANA
What are your views on the announcement of the Principal Activity Centre?
I have no difficulty with Maroochydore being announced as the Principal Activity Centre. My only difficulty is with the notion that there should be one principal activity centre. History shows that certain industries and sectors tend to develop their own ‘business centre’ and it is naive to suggest that Maroochydore is a one-size-fits-all solution.

Maroochydore faces its own challenges particularly with respect to accessibility, parking, traffic and public transport. An attempt to intensify the use of Maroochydore as a principal business centre is only going to amplify the current problems to the point of gridlock. Why not announce Maroochydore as the Principal Activity Centre and acknowledge that there are others within the (now unified) Sunshine Coast region.

How will the announcement affect your business?
The announcement will not have a significant impact on a business like ours, which offers highly specialised services in various areas of law … our clients are more than happy to travel a short distance given that an alternative is often as far afield as Brisbane.

Any trend toward making Maroochydore the Principal Activity Centre will only amplify their existing woes, and there will be a real opportunity for growth by better positioned alternate activity centres, which have better infrastructure, transport, parking and accessibility by public transport.

In your opinion, where is the true town centre on the Sunshine Coast?
In my view, there are a number of business centres on the Sunshine Coast. Clearly Maroochydore has become a significant activity centre for retail and commerce. It is commonly regarded as a town centre but one with more than its share of issues. Why do we need a Sunshine Coast ‘town centre’? Can’t we all just accept that different regions will create their own industry niche?

ANNE LAWRENCE
NOOSA BOARDROOM
EENIE CREEK ROAD, NOOSAVILLE
ANNE LAWRENCE, NOOSA BOARDROOM
We are heavily involved in the Noosa Business community and provide support to a variety of different business types, both large and small. Having the Principal Activity Centre in Maroochydore will not adversely affect our business. The Principal Activity Centre will attract some of the more industrial and heavier sectors to Maroochydore allowing more lighter environmental footprint type businesses to operate in the Biosphere region. Diversity is the key, and business opportunities will follow.

We would like to present business owners and operators with another chance to let us know which town on the Coast you believe is downtown. Please email the magazine at editor@mattersmagazine.com.au to have a say on behalf of your business.

Business Confidence Survey Results

Wed, 10 Jun 2009 23:05:00 GMT

At the beginning of the year, we reminded business owners and operators that we would need to turn down the opportunity to pursue any negativity and instead, move forward with determination to make the most out of 2009. The latest figures have revealed that this is precisely the attitude the majority of businesses have since adopted.

According to AEC Group’s Michael Campbell, businesses on the Sunshine Coast remain “boldly optimistic” compared to the rest of Queensland, after reviewing the Sunshine Coast’s first regional Business Confidence Survey undertaken by the Noosa Boardroom.

Mr Campbell said despite some signs of weakening performance, the mood on the Sunshine Coast remained overwhelmingly positive.

He said a clear majority of respondents, at 73 per cent, expected business to stay the same or improve over the next three months – in stark contrast to the findings of a recent statewide survey where only 53 percent of businesses indicated the same level of confidence.

The Sunshine Coast Business Confidence Survey consisted of five online questions targeting business owners across the entire Sunshine Coast region, to gain a representative view of business confidence across all sectors. According to the Survey, business confidence is a “unique barometer of economic activity”.

An impressive 502 businesses responded to the survey, which is expected to be conducted on a quarterly basis.

Co-owner of Noosa Boardroom Anne Lawrence said it was essential for local businesses to gain a region-wide perspective about the mood and performance of business on the Sunshine Coast, particularly in the current economic climate.

“We are aiming to create information based on actual business confidence on the Coast so that business may be more accurately informed prior to making strategic business decisions,” Ms Lawrence said. “The optimism reflected in the business survey is also indicative of the proactive nature of the Sunshine Coast business community”.

The survey results also indicated 40 per cent of the Sunshine Coast businesses expected an increase in revenue and profit in the future, whilst 63 per cent expected staffing levels to remained unchanged.

A Big Ant's eye view

Thu, 11 Jun 2009 01:07:00 GMT

The Sunshine Coast is set to welcome a new colony of ants to the region … ants that are far from small. Melbourne-based gaming creators Big Ant Studios will locate their new games development studio at the University of the Sunshine Coast’s Innovation Centre, providing the region with a chance to play in the global $70 billion video games industry.

Moving into the new $3.6 million Business Accelerator, the studio will use their new base to attract talent and experience from the promising Queensland games industry. With an estimated worth of more than $55 million, Queensland’s 40 per cent stake in the games industry is now leading the rest of the country in terms of employment and income from games development.

Innovation Centre chief executive Colin Graham said Big Ant studios, one of Australia’s largest game developers, planned to start a 30-person development team based from the Centre’s Business Accelerator offices, with plans to expand to at least 84 people over the next four years.

“I think the deciding factor behind Big Ant Studios’ move into the Innovation Centre was the close proximity to Brisbane and the games development hub that is already based in areas like Fortitude Valley,” Colin said. On top of this factor, “the Innovation Centre offers competitive, state-of-the-art offices, with a great location close to the university and to the business and technology precinct to be developed across the road.”

Colin said the business and technology precinct will have a massive potential for Sippy Downs and Kawana over the next 10 years.

Following the rise of the games industry in the local region, the Innovation Centre will be working closely with the tourism industry and emerging sectors such as IT, environmental technology, creative industries and professional services.

Colin said having Big Ant choose the Innovation Centre Sunshine Coast was a great demonstration of recognising what the Centre had to offer prospective tenants in the Business Accelerator or the Business Incubator.

“Not only can companies access students from the university, they can locate themselves at what is becoming the IT, green technology, creative and knowledge-based hub of the Sunshine Coast.”

The studio’s popular games such as Spyro, Hell Boy and the NRL and AFL franchises for the Nintendo Wii, Sony Playstation 3 and Microsoft Xbox 360 game consoles, would all be developed on the Sunshine Coast and available for release later in the year.

Big Ant Studios was founded in 2001 by Ross Symons, a software development pioneer with a professional history that stretches back to the 1970s when he first authored a number of internationally published books on the topic of programming and games.

Taking time out from a job that most people could only dream of, Ross took the time to share with Business Matters, the reasons behind his move to the Sunshine Coast.

The games industry is huge. How much bigger do you expect it to grow?

The industry has had year on year, double and triple digit growth for all of the time that I have been involved. In spite of the tough economic conditions that we have faced over the past year, the games industry grew 43 per cent and grossed more than DVD movies for the first time. This coming year also looks like a record breaker. I cannot foresee this growth declining any time soon and would not put a ceiling on it.

Just how big is Big Ant Studios position in the games industry?

Big Ant Studios are nearly as big as they come. We are currently Australia’s second largest independent developer of video games and are rapidly expanding. I would like to see us with a staff of 200 by June, 2011.

When were you first introduced to video games?

I first played video games such as Pong in the late 1970s, down at the local pub and I was hooked. Soon afterward, I wanted to create my own games and luckily enough for me, back then all you needed was a little computer and a lot of time. My first break into the industry however, was when I authored some books on programming games that were published in England and Europe.

What has been the biggest influence on your career?

The biggest influence on my career was the time I spent away from the games industry. I went out to get a real job and found that I just could not wait to get back to games. I have a real love and passion for the art of games. I love waking up and going to work every day, and I still cannot believe I get paid to do this.

What are the biggest challenges you see for the industry?

The biggest challenges the games industry face are the big budgets and long timelines required to produce games for the current generation of console platforms. The team sizes have more than doubled in the past four years but the price of the end product has not shifted dramatically.

What were the factors behind the decision to build a second base on the Sunshine Coast?

As the game industry has matured, so have our employees. They are getting older, getting married and have become more family oriented. It was paramount in our minds that the second Big Ant Studios office be located in a very family friendly setting, with great schools, affordable residential property, good natural amenities such as beaches and the like, with access to technical infrastructure. The Sunshine Coast, and in particular the Innovation Centre at University of the Sunshine Coast, was the perfect location and it ticked all the boxes we were looking for.

As the move is great news for employment in the region, what kind of talent will you be looking for in recruiting new employees?

The first wave of employees we are looking for are those with programming or 3D art/animation skills. I should say that we at Big Ant Studios pride ourselves on hiring on a ‘gut feel’, believing that if you have an attitude and aptitude, then we can teach you anything. Anyone applying should bear this in mind … we really want passionate people!

What opportunities do you see Big Ant’s move bringing local businesses?

I feel that Big Ant Studios will require a vast array of services from local business, as will its employees. Staff accommodation; equipment purchases, which we intend to make entirely locally; the supply of daily lunches for all our employees (we provide this free as part of employment); and the provision of technical support services that will be required to run the organisation and so on. I should add that we would be happy to hear from any local business that think they have the services we might need.

If games take up your business life, what do you to achieve a work/lifestyle balance?

Games do take up my business life but also a lot of my personal life, too. Like a lot of developers, the first thing I want to do when I get some ‘me’ time is play games. When you add to the mix that I have four children whom, not surprisingly, love playing games, I am never far from a controller. The line between my business life and personal life are so often very blurred that I have implemented strict rules about how much time I spend near a computer or the internet so that technology does not rule my life. I am looking to spending a lot of time exploring the Sunshine Coast with my children.

Between the flags

Thu, 11 Jun 2009 01:17:00 GMT

Nowhere else in the world are the red and yellow colours represented in the same way as they are in Australia. The identity of Australia would be incomplete without featuring images of blue ocean and white sand, with the red and yellow flags that have most resonance and are at the heart of how we recognise our beach culture. This year is a pivotal milestone in history for the red and yellow that represents surf life saving, as Queensland celebrates 100 years of rescues.

The first recorded surf rescue in Australia took place on Coolangatta Beach on 21 February, 1909. Growing from a fragmented voluntary surf rescue service during this time, Surf Life Saving Queensland (SLSQ) has since achieved worldwide recognition for the outstanding service and courage of its service members.

Today, SLSQ is one of the largest volunteer-based community organisations in the State, with over 31,000 members of the surf life saving clubs, and another 200,000 members of the associated supporters’ clubs.

SLSQ currently represents 59 affiliated surf life saving clubs, with more than 8000 active surf life saving members patrolling the beaches along Queensland’s coastline. Each year, there are about 30 million visitations to beaches up and down the coast, resulting in surf lifesavers performing over 3000 rescues and saving equally as many lives.

The Sunshine Coast branch of Surf Life Saving Queensland is the largest branch in the State, comprising fifteen surf life saving clubs (SLSC) between Clontarf Point in the south, and Inskip Point in the north.

President of Mooloolaba SLSC Steve Miller has been an active member of the club since the early 1970s and is proud of the internal history and spirit of the club.

“Lifesaving is a massive part of the Australian lifestyle but it is especially strong on the Sunshine Coast,” said Steve. “I am still fascinated at how big it has grown.”

Originating in 1923, in just a timber hut on the beach, Mooloolaba SLSC now has over 1300 active members, with 440 of those being proficient members who share patrol of the Mooloolaba beach.

“The club has changed significantly over the last 20 years,” said Steve. “At least, 95 per cent of the lifesavers used to come down from Brisbane for the complete lifestyle. It was about being a lifesaver, patrolling the beach, sleeping at the club and spending the whole weekend here.”

“Now, 95 per cent of our lifesavers are local residents,” he said.

Steve has also witnessed significant advancements in the technology and techniques behind surf life saving.

“Before helicopters, inflatable rescue boats, jet skis and rescue crafts, there was only one way to rescue and that was to swim out and swim back with the reel and line,” he said.

“That is why, these days, the competition side of surf life saving is important as it encourages members to train to remain physically fit, healthy and proficient.”

On top of the regular community service that lifesavers perform, they engage in regular competition to improve their skills across a number of surf life saving disciplines. The three main areas of competition include beach events, surf swimming events and surf craft events.

With more than a thousand participants in regular surf life saving carnivals on the Coast, a healthy rivalry exists in the competitions between the local surf life saving clubs. However, beyond the competition scene, Steve points out that the focus always comes back to providing for the community by patrolling the beach.

“In the end, it doesn’t matter what club you join, surf life saving is what is all about,” he said.

With Alexandra Headland SLSC and Maroochydore SLSC just around the corner, the Sunshine Coast is home to three of the biggest clubs in Australia.

“Between the three clubs there is a network of over 3000 families,” explained Steve. “No other organisation provides the level of family involvement as surf life saving. We have second, third and fourth generations of families in the club.”

“No matter what stage of life you are in, there is room for everyone in lifesaving,” he said. “It doesn’t matter how old you are … one of our mature members is in his eighties.”

The owner-manager of the Bank of Queensland’s Noosa branch, Scott Armitage, signed up to become a member of the Noosa SLSC when he moved to the local area.

“When I moved to the Coast, I joined my son up to be a part of Nippers – the junior life saving program,” Scott said.

Children are eligible to join the Nippers program from as young as seven years old where they are taught surf awareness and surf safety skills so that they can keep themselves safe at the beach. Nippers members learn how to board paddle, surf, swim, run and other skills that allow them to compete in club, regional and state surf lifesaving carnivals.

“From there, I wanted to get involved and assist with the club,” Scott said.

After obtaining his ‘Bronze Medallion’, Scott now participates in beach and jet boat patrols.

Scott also finds balancing his club membership and business is manageable, as normal members only have to do their patrol for just five hours a month.

And what does he get out of volunteering his time on weekends?

“It is about helping people and giving back to the community,” explains Scott. “On top of that, there is always enjoyment that comes with being on the beach.”

It is important to remember that you do not have to be a champion swimmer to be a part of surf lifesaving. The clubs are always in need of supervisors, water safety officers, rescue craft operators, radio operators, coaches, drivers and officials. It is only when these functions all come together, that our beaches can be patrolled efficiently.

In addition to volunteering time, many local businesses have become involved through sponsorship deals which provide financial assistance to the clubs, to help pay for the expensive resources needed for surf life saving. Sponsorship also assists in displaying the surf life saving club’s many activities and services to a broader audience.

In the one hundred years that surf life saving records have been kept, more than 500,000 people have been rescued one our beaches. An independent economic study conducted in 2005 concluded that if not for the presence of surf lifesavers, 485 people would drown each year, and 313 would be permanently incapacitated as a result of accidents in the surf.

In acknowledging the Surf Life Saving Queensland’s centenary, Premier Anna Bligh described the efforts of surf lifesavers.

“Having lifesavers on hand to select the safest spots for swimming and surfing makes life at the beach today that much safer and … more fun. In fact, it is hard to think of going to the beach without the benefit of the watchful eye of lifesavers,” Mrs Bligh said.

“The centenary gives us the opportunity to pause for a moment and reflect on the contribution surf lifesaving clubs and their remarkable volunteers make to our great Queensland lifestyle every year.”

Despite Queensland’s surf life saving clubs offering world-class surf safety and rescue, unfortunately, there are still people that get injured or drown on our beaches.

As the State’s peak beach safety and rescue authority, Surf Life Saving Queensland continues to set the benchmark for coastal safety by striving to meet the target of ‘Zero preventable deaths and injuries on Queensland beaches’.

By getting involved with one of the local surf life saving clubs, it is an opportunity to serve the community by watching over and potentially saving the lives of the thousands of people who use Sunshine Coast beaches.

According to Steve, surf lifesaving is as good as it gets.

“The red and yellow safety system is recognised around the world but nowhere is the volunteer lifesaving system like it is in Australia,” he said. “In my opinion, surf lifesaving is the best community-based club in Australia. If you can’t enjoy being involved with a surf lifesaving club, you won’t enjoy anything.”

Evolution of the responsible business

Thu, 11 Jun 2009 01:09:00 GMT

Many multinational corporations have already proven that by practicing corporate social responsibility, they can differentiate the reputation of their brand and generate significant returns to their business. Taking responsibility for the wellbeing of society is not a role limited to the larger corporations, with the question arising, can small to medium businesses really afford not to embrace corporate social responsibility?

Corporate social responsibility or CSR, as it is commonly referred to, has reached the point where it is increasingly important to all businesses. While CSR has no consensus definition, the concept involves an organisation’s continuing commitment to behave ethically and contribute to development, while improving the quality of life for its employees, community and society. Put simply, being a good corporate citizen is about a company making a lasting commitment to give something back to the community.

A growing body of research has revealed a pattern that indicates businesses will do well if they are doing good. ‘Doing good’ in this sense, refers to the businesses that actively demonstrate ethical behaviour by regularly contributing to society.

Researcher Charlie Nelson of Foreseechange, has been looking into the growing surge of corporate social responsibility (CSR) and ethical consumerism for almost 10 years. He rates CSR as a high priority for a growing segment of the population.

“There is strong support for the idea companies shouldn’t just be concerned with making profits,” he said. “There is definitely strong support for the notion companies should, in fact, do good.”

Foreseechange figures revealed that 40.6 per cent of Australians strongly agree with the statement, “I take a company’s reputation for social responsibility into account when purchasing products,” while an additional 31.4 per cent, “agree a little.” A quick calculation later, and it is easy to see that over 70 per cent of the population is actually in favour of socially responsible businesses.

And that is not all. A worldwide report by The Nielsen Company, discovered that Australians were among the most concerned global citizens on the issue of climate change, and were as eager to search into companies’ human rights and environmental performance when making their purchase decisions.

Australians were also more to say they would refuse to buy products from a business or foreign country with a reputation for running sweatshops, using juvenile labour or unfair trade agreements, cooperating in human rights abuse, or involved in practices that damage the environment.

Results from the Fair Trade Association of Australia and New Zealand also show Australia is the fastest growing market in the world for fair trade products, with the value of the fair trade industry growing from $146,308 in 2003, to over an incredible $6.5 million in 2006.

The coffee sector provides a good example because even the coffee served at McDonald’s outlets in Australia is only made with beans sourced from Rainforest Alliance Certified farms that meet strict environmental and social standards.

As Australians increasingly become more concerned with issues such as the environment, human rights, working conditions and animal rights, the attitudes within society are also changing. And as attitudes change, the demands of what organisations should and should not do are also growing considerably, with increasing expectations for businesses to move beyond pursuing the sole mission of profitability.

When we think of the way businesses operate, regardless of the size, the word ‘profit’ immediately comes to mind. Irrefutably, profits are a crucial element needed to achieve success and for many companies, the direct pursuit of profit is their dominant focus.

However, these days, demands from society are requiring businesses to shift their focus away from short-term profits by instead, maximising the activities that serve the long-term interests of all of its stakeholders.

Added to this, the ever-present connectivity that came with the rise of the Internet and technology has resulted in a greater transparency, shifting the balance of power away from business and toward society. Endless amounts of information and opinions about organisations and their products and practices are now available across the globe, all day everyday, making it harder to conceal information from the public. With greater transparency and visibility, more businesses are being forced to consider just how positively their behaviour, actions and overall impact on society is being perceived in the marketplace.

Yet, despite the increase in visibility of companies’ actions and a quest for information by a burgeoning number of consumers, research has revealed that at least 75 per cent of businesses admit they don’t understand their customers’ expectations of CSR.

While the very principle of CSR was initially developed in response to the incredible power and influence that large multinationals corporations have, CSR is no longer the domain of the corporate sector. Small to medium businesses must also realise that CSR can produce a competitive advantage.

Specialists in soil regeneration and animal nutrition, AgSolutions is showing that there are plenty of rewarding opportunities for businesses to adopt a socially responsible approach in the agricultural sector.

Gympie-based AgSolutions general manager Julie Williams explained the reasons behind the company’s approach to conduct business with a cause-based approach.

“Our company was established by my parents, who founded it on strong family values,” Julie said. “Over the past 20 years, the company has continued to grow on that ethos.”

“However, no matter how big the company grows, the fundamental principles will remain the same. Therefore, our suppliers, distributors, customers and the communities in which they belong are an extension of that belief system. We are one growing family.”

Julie also emphasised how important it was to commit to behave ethically and contribute to development.

“It is vitally important for us to operate in a way that has a positive impact on the land, the people that live and work on the land and the surrounding communities,” she said. “We are just one facet of the whole equation and everything we do must work in with the whole equation.”

“I get an enormous sense of satisfaction knowing that the work we do contributes to helping Australia grow,” Julie said.

More than just kindness, community participation or strategic philanthropy, CSR is a legitimate attempt made by a company to build lasting relationships between the corporate sector and the rest of society. Genuine corporate responsibility is achieved when a business adapts all of its practices to ensure that it operates in a way that meets or exceeds the ethical, legal, commercial, and public expectations.

Buderim Ginger, located in Yandina, provides the perfect example of how such theory works in practice, showing how a local business can adopt innovative processes not just to improve credentials, but to also improve profitability.

A couple of years ago, Buderim Ginger announced the opening of a new wastewater treatment plant at the company’s Yandina site, which was the first initiative of its kind in Australia. The company, which is listed on the Australian Stock Exchange, invested hundreds of thousands of dollars into creating a wastewater treatment facility that removed pollutants from the water with unique organisms that had been suspended above the ground.

A few years after its construction, the facility now treats up to 22,000 litres of water per hour, which has enabled Buderim Ginger to reduce its annual water discharge by 22 million litres of water each year. The reduction in water and waste charges has offered considerable cost reductions to the company’s operations. During the process, it was reported that Buderim Ginger was also eligible to receive a $150,000 rebate from the EPA’s ecoBiz program that recognises responsible corporate citizens who invest in processes that will reduce water and energy use.

At the time, Buderim’s managing director Gerard O’Brien commented, “Companies like us have to have trust in the consumer’s mind that the product will not only be good but it’s made in the right way.”

“We are in a niche market and have had to be innovative in our product development,” Mr O’Brien said. “These kinds of initiatives are a very public example of our process innovation that is socially and environmentally responsible.” This year, sales at Buderim Ginger will be expected to reach in excess of $50 million.

The characteristics and circumstances of individual businesses are different, so the way CSR is put into practical action varies between each company. It is important to note here, that being a responsible business does not require spending huge amounts of money trying to weld CSR into a business’ strategy or culture. For those businesses wanting to be a better corporate citizen and are considering incorporating CSR into their business model, the following examples are simple ways to commit to responsibility.

The first steps to establishing a business as a good corporate citizen involve activities like investing in community projects and partnering; public education and mentoring programs; charities and volunteering; research initiatives; occupational health and safety measures; cause-related marketing approaches; pro bono work; and of course, ways to prevent environmental pollution, not compromise public facilities, nor harm the surroundings.

Just one of the ways the retail industry tends to undertake their CSR obligation, is through their commitment to the environment. As part of their obligation, most shops now offer ‘green bags’ as an alternative to plastic bags. Better yet, some shops will not offer a bag to those customers with only minimal purchases, while others have actually started to charge for plastic bags. In fact, as of January 2009, government legislation has required all Victorian retailers to charge a minimum of $0.10 for each plastic bag, with other State, Territory and Commonwealth Environment Ministers making similar commitments to begin phasing out single-use plastic bags.

Whether businesses are taking the necessary action in order to be more attractive to their customers and employers, or simply because of the ethical desires of the business owner, any positive changes come back to businesses becoming more socially responsible.

However, at times, there tends to be a high degree of skepticism among the public regarding the real motivation behind CSR activities. To avoid the suspicion and to be considered effective, CSR activities should be a core part of the business’ goals, rather than being seen as a one-off marketing or public relations exercise that uses a charitable or worthy cause as a strategy. CSR efforts must be substantially integrated into day-to-day business operations; engage and support all stakeholders, conform to ethical behaviour; and obviously, obey the law.

Some tips to take with you in regard to practical action of CSR includes:

Draft and apply a code of ethics to your business operation
Articulate an organisational philosophy and incorporate it into your business’ mission, vision and values statements
Revise stakeholder and community relations strategies
Conduct social and environmental reports and audits
Ensure your CSR program results in verifiable benefits for the community
Communicate the benefits of your CSR program in a cost-effective way

By building CSR into the business as long-term value, stakeholders including customers and employees are more inclined to accept the trustworthy intentions of a company, in both the good times and bad. Developing a culture of trust enhances an organisation’s reputation and relationships with a variety of publics. After all, a business’ operations exists within the communities of people, so all businesses have a responsibility to pursue their focus while acting responsibly to meet the social, economic and environmental interests of the communities in which they operate.

It will only be a matter of time before all privately held businesses have to surrender to greater pressure to do business in a more socially responsible and transparent manner. Many people believe it will be the changing behaviour of small to medium businesses most likely to make the greatest impact on global CSR. So, as businesses begin to rethink their values, CSR should be viewed as a ‘corporate social opportunity’.

Tourism Sunshine Coast CEO position filled

Thu, 11 Jun 2009 01:14:00 GMT

Tourism Sunshine Coast, the regional organisation responsible for marketing and developing the Sunshine Coast as a vibrant tourism destination, recently welcomed long-time industry professional Russell Mason as the its newly appointed chief executive officer. Mr Mason discussed the key strategic planning initiatives that are in place for the year ahead, with Business Matters.

With stunning imagery of the region’s white sandy coastline, sun-drenched beaches, sparkling waters, and lush rainforests and waterfalls to persuade mass audiences nationally and internationally, Tourism Sunshine Coast’s (TSC) promotion of the region leads to over three million visitors flocking to the Sunshine Coast each year. However, with a difficult forecast for the approaching year, TSC will need more than appealing pictures to secure visitor numbers this year.

So, with the tourism industry facing significant challenges such as anticipated visitation declines, increased competition and threats to tourism jobs within the next 12 to 24 months, Mr Mason’s appointment and subsequent visions as CEO are timely for the organisation.

“The Sunshine Coast is an incredibly diverse destination and TSC is well placed to deliver exciting tourism development outcomes for the region, our partners and tourism operators,” said Mr Mason.

Mr Mason also said he was looking forward to develop continued visitor growth and productive partnerships for the region.

“TSC is now recognised as a leader in regional tourism marketing and I am looking forward to working collaboratively with the team and its partners to establish a strong tourism industry and ultimately drive greater sustainable visitation to the region,” he said.

TSC chairman Graeme Pearce said that Mr Mason was an excellent choice for the organisation’s CEO.

“Russell has the right mix of vision, knowledge and professionalism to lead TSC and our region’s tourism industry,” Mr Pearce said. “Russell is highly regarded within the industry and we have complete confidence in his ability to deliver greater tourism outcomes for the Sunshine Coast. He has an impressive track record in a variety of tourism roles and will ensure that TSC continues to build strong partnerships with our regional stakeholders, tourism partners and industry operators.”

Mr Mason brings extensive experience to the position, with a strong background in regional, state and private sector tourism, including his most recent role as general manager of operations for Skyrail-itm, based at Taronga Zoo in Sydney. Mr Mason is also well known for his senior management and development roles at Parks Victoria and Geelong Otway Tourism.

Mr Mason intends to guide TSC through a number of key strategic planning initiatives including the development of the Fraser Coast and South East Queensland marketing zones, and the establishment of strong partnerships with the Sunshine Coast Regional Council and local tourism organisations.

TSC will also support the outcomes from the Stafford Report, to develop a funding and membership model, which will maintain the region’s sense of community, retain tourism jobs, deliver stronger marketing campaigns and support the tourism industry with relevant development programs.

One of Mr Mason’s goals for the year ahead will include assisting TSC in their commitment to working closely with the Sunshine Coast Regional Council, tourism partners and the tourism businesses.

“The main goal for this year will be to assist in the creation of a unified regional body,” explained Mr Mason.

As well as the advancements of strong marketing, sustainability and industry development plans for the region as a whole, this approach will attempt to recognise local tourism destinations, brands and environments.

“I have been working closely with the chief executive officers of local associations to work out where we want to be in 12 months,” Mr Mason said. “To ensure a unified approach, I am also working with the Sunshine Coast council's chief executive officer John Knaggs and Mayor Bob Abbot to clearly articulate the ‘how’ of how to create a regional body.”

“We will be coming out soon with the detailed intentions for those plans,” he said.

Mr Mason also acknowledges the challenges that are ahead in working to unify so many local bodies.

“There is a lot of work to be done and it won’t happen overnight. There are already an enormous number of well-funded and well-managed local bodies,” he said.

“While there will be different expectations from them, we will articulate the benefits of a united approach from a financial, environmental and social perspective.”

“It will be all about coming together for the regional good.”

Mr Mason said TSC will also aim to actively engage the community to develop a ‘sense of ownership’ amongst local businesses and residents, in an attempt to achieve greater awareness of the value of tourism on the Sunshine Coast.

“Tourism currently represents 22 per cent of the Sunshine Coast gross domestic product (GDP),” said Mr Mason.

“Even if you are not in the hospitality industry, everyone is indirectly linked via other associations. Whether it is in retail, construction, education or government departments, everyone is a powerful part of tourism.” After all, tourism is the major employer on the Sunshine Coast with up to 40 per cent of coast residents employed as part of the region’s $2 billion tourism industry.

Mr Mason also emphasised the importance of truly understanding the local community’s view on tourism.

“Tourists are essentially playing in the locals’ backyard so it is important to focus on an acceptance of tourism development,” he said. “To understand and embrace that, everyone must feel comfortable. While there are some places we want to heavily promote, we understand there are places that should be conserved and maintained, so we want to work with the locals to protect that.”

As TSC works with the local community to develop and implement environmental sustainability programs aligned with the community’s view, Mr Mason also highlighted the opportunities for locals to ‘holiday at home’.

“The Sunshine Coast offers the quintessential Australian experience,” he said. “People come from all over the globe to find these facilities including world-class restaurants, spa and wellbeing retreats, beaches and golf courses, right on our door step.”

“The attraction is the diverse opportunities that are only a short distance away, and meet every single holiday need.”

In understanding that there are significant challenges for TSC ahead, he was also excited at the opportunities that are available for the future of the Sunshine Coast.

“The Sunshine Coast occupies a huge competitive advantage on the world stage … we have the greatest natural assets you could ever ask for,” said Mr Mason.

“So, in the long-term, it is the region’s green credentials and the community’s passion for a sustainable approach that will be the most important part of our future.”

In the short period since Mr Mason accepted the position as CEO, he revealed that there have been a number of positive aspects.

“The highlight has definitely been moving to such a beautiful destination,” said Mr Mason.

“More than that, I have received such an extraordinary warm welcome from the tourism industry and community.”

Along with his wife and two children, he has also already discovered a few favourite family hotspots.

“My favourite beach has to be Kings Beach at Caloundra,” said Mr Mason.

“My wife and I also love the Maleny cheese experience and as a family, we can’t go past the Eumundi markets.”