The walls are coming down between for-profits and cause-driven organizations—and it’s leading to co-creation we never imagined possible.

By G. Michael Maddock and Raphael Louis Vitón

A few weeks back, we talked about co-creation innovation. That’s what we call the practice of finding a synergistic partner and creating something together. Our favorite example involves Procter & Gamble (P&G) and Clorox. Although traditionally fierce competitors in the cleaning category, P&G was sitting on technology that could enhance the performance of trash bags—but it didn't sell trash bags. Meanwhile, Clorox owned Glad, a leading bag brand. The two got together and the combination created a much better bag and hundreds of millions in new revenue. As we said, we think of co-creation as a 1+1=4 equation; win-win. It often creates unexpected unions, and it's going to change our world for the better.

And that is our point here. Not only, as the case above shows, can co-creation succeed between profit-driven companies and between non-profits (as is the case with “Feeding America,” working with more than 61,000 local charitable organizations), but it also can work between profit-driven organizations and cause-driven ones as well.

We know. We know. There is a natural tension when the motives and missions that drive organizations are vastly different. Unfortunately, this tension too often gets in the way of big ideas that would be good for the bottom line and good for the planet. But co-creation offers an opportunity to create a bridge between two unlikely partners. It is a way to alleviate misunderstanding, conquer fear, build trust and align towards mutually beneficial goals.

There is already evidence of that working in the profit-driven/cause-driven space. Consider:

1. Act Now! and Walmart. Adam Werbach was the youngest-ever president of the Sierra Club. He also ran his own sustainability consultancy, Act Now! Walmart approached his company to guide their process of greening (and public redemption). The partnership yielded co-creations like the PSP or public sustainability pledges that Walmart employees make to each other and promise to live by. These pledges have had a marked impact on employee morale and health (many pledged to commute by bike, stop smoking, etc.). And as we have written about in a previous Bloomberg Businessweek piece on "Going Green's Unexpected Advantage,"  these initiatives complemented Walmart’s successful launch of major efforts to reduce energy consumption in its stores and in its fleet.
2. Duke Energy and the EDF. Duke has teamed with the Environmental Defense Fund (EDF) to achieve its goal of decarbonizing by 2050. Duke gains by leaning on the expertise and political integrity of the EDF. The EDF, meanwhile, levers Duke’s power as a leader in “dirty” energy to help push through legislation requiring other energy producers to follow suit.
3. Hasbro and Points of Light. The toy company, and the nonprofit designed to encourage service to others, have joined forces to create “GenerationOn,” to inspire young people (preschool through high school) to “make a difference through volunteering” by tutoring those who need help, or by working in shelters, for example.

At Maddock Douglas, we’re not just talking about this opportunity—we’re acting on it. Earlier this year, we purchased Change,  a Vancouver-based firm that focuses on building green, for-profit brands. And earlier this month, we purchased another firm in Vancouver, BIRO Creative. BIRO, an online creative agency, helps cause-driven organizations create positive change for the planet. Why would a for-profit company focused on innovation (ours) acquire a green branding consultancy and an online movement firm? Because more and more people are supporting companies that want to create products, services and business models that are good for the bottom line AND good for the planet. In turn, these companies are beginning to see what happens when leaders identify and co-create with the passionate advocates who are more connected, vocal and aware than ever before.

People Support What They Create

Today, the best innovation practice looks like this: first, you find a significant need or white space; next, you invent a product, service or business model that serves that need; and finally, you go to channel partners, customers or consumers and encourage them to buy it. In the not-too-distant future, we believe the most successful companies will intentionally enhance this model by including passionate advocates. These advocates will work with the partner, customer or consumer to create the idea together. They won’t have to sell it because their customer had a stake in creating it. Best of all, the co-creation process will include cause-driven and for-profit organizations.

If you think this sounds naïve, you’ve been missing a growing groundswell (see "Profiting from a Green White Space").

More and more people are supporting companies that want to create products, services and business models that are good for the bottom line AND good for the planet."

Don’t take our word for it. Listen to some of the findings from Edelman’s fourth annual Global Consumer Study.

• 86% of consumers worldwide believe that business needs to place at least equal weight on society’s interests as on those of business.
• 71% believe brands and consumers could do more to support good causes by working together.
• 62% of consumers said they would switch brands if a different brand of similar quality supported a good cause.
• 61% said, “I would help a brand to promote their products or services if there is a good cause behind them.”

And the biggest companies are listening and doing well by doing good. We see progressive leaders forging unlikely partnerships for co-creation as just one more fascinating facet of this evolution.

G. Michael Maddock is chief executive officer and Raphael Louis Vitón is president of Maddock Douglas, an innovation consultancy that helps clients invent, brand and launch new products, services and business models.

Have you seen the Maddock Douglas home page?

Follow Maddock Douglas on Twitter