Use of the term “sustainable” has been increasing in the business world. By definition, “to sustain” means to give support or relief. “Sustainable” businesses function to maintain or improve the present and future quality of people's lives. Companies are beginning to realize that consumers are spending their money consciously, considering more than just the material goods they take home from the store. Consumers are beginning to realize that when they support sustainable businesses, their dollars can impact social and environmental concerns. An emerging group of consumers referred to as LOHAS (Lifestyles of Health and Sustainability) seeks out companies that share their health, social and environmental interests and priorities.

    In America, the LOHAS consumers make up a $230 billion (and growing) marketplace for goods and services. LOHAS consumers are also commonly referred to as “Cultural Creatives,” a term coined in 1996 by Paul Ray, a sociologist, and Sherry Anderson, a psychologist, who conducted a study of American values and identified this emerging societal group. Ray and Anderson determined that Cultural Creatives value health, the environment, social justice, personal development and sustainable living. This group represents approximately 30 percent of the adults in the U.S., or 63 million people.

    American companies are beginning to recognize the importance of making decisions that consider their economic, environmental and social impact in order to capture the LOHAS audience. Although sustainable businesses represent only a small percentage of the national business community, this percentage is a fast-growing segment of the market-place. Anticipating continued expansion at a healthy pace, sustainable businesses are projected to reach $1 trillion annually by 2020.

    Examples of large corporations that are reaching out to the LOHAS consumer include:
• Nearly 30 large U.S. corporations, including Nike, Estée Lauder, 3M and Hewlett-Packard – which account    for over $1 billion dollars of the annual U.S. market for paper, pulp and packaging – have made a commitment    to stop selling products or using packaging made from old-growth trees with a promise to influence their    suppliers to do the same.
• Nike is making organic sportswear.
• Gaiam® is a lifestyle company that sells products relating to health, wellness, fitness, yoga and other natural    living materials. The company demands that its suppliers adhere to the Social Accountability 8000, a system for    managing ethical workplace conditions throughout global supply chains developed by Social Accountability    International, an organization promoting human rights for workers around the world. Gaiam® employees    participate in an environmental and social-action group that identifies local and global causes where they can    make a difference.
• Ben and Jerry's, the makers of the well-known ice cream, promotes a variety of causes including rainforest    protection, world peace and community-economic development. The company established a foundation that    donates a percentage of its profits to charities all over the world. In addition, ingredients for its ice cream are    purchased from companies that employ homeless people and recovering alcoholics and drug addicts, as well as    fledgling companies in developing countries.

    All the above companies have a growing interest in addressing the desires of the LOHAS market, a powerful, values-driven group of consumers. They know that these consumers want to do business with companies that share their interests and values, and they are willing to do what it takes to acquire them as customers. Consumers not only can stand up and applaud this shift in corporate values but they also can spend their dollars consciously in order to positively impact the environment and society.

Colette Chandler is the owner of The Marketing Insider, a virtual marketing and communications consulting firm that provides non-traditional ideas and creative solutions to make businesses thrive from the inside out. The company specializes in assisting companies of all sizes in attracting and retaining consumers who believe in natural health and wellness. The company recently commissioned the first Ohio Health and Wellness Report. Colette Chandler can be reached at (614) 771-9693 or cchandler@marketing-insider.com. Order the report at www.marketing-insider.com.