With growing awareness of sustainability and the SDGs, addressing social issues has become a major factor in a company’s brand image and business growth. However, many companies and local governments are struggling to continue their social contribution activities due to cost issues and a lack of human resources, making it difficult for such activities to take hold in Japan.
Under such circumstances, Dentsu Inc. has developed a system that uses NFTs to make the social contribution activities of consumers visible and allow them to connect with supporters, companies and local governments. The company has begun offering the “Tsunaga LOOOP” service.
In this article, we will explain the key points for continuing social contribution activities, and introduce the novelty of Tsunaga LOOOP, which expands the scope of activities, the specific value it provides, and the future it is aiming for.
Table of Contents
Is there a difference in attitudes toward social contribution activities between Japan and other countries?
Social contribution activities are activities that should be undertaken by companies, local governments, NPOs, and consumers working together. However, this area has yet to become widespread enough in Japan. We believe that this is due to deep-rooted issues in each sector.
Although NPOs have a strong will and passion to contribute to society, they often find it difficult to grow in size and operate sustainably due to a lack of awareness of their activities and the small number of people participating in them.
While companies are aware of the need to engage in SDGs activities that go beyond CSR, it is difficult to link these activities to their core business. They are struggling to circulate people, goods, and money, making it difficult for them to continue.
On the consumer side, the challenge is a lack of motivation to participate and continue.
Meanwhile, looking globally, there are an increasing number of examples of social contribution activities that utilize the power of technology. For example, there is a growing trend to use blockchain technology such as Regenerative Finance (ReFi) to solve social issues and provide economic incentives. However, there are currently few examples of this in Japan.
Additionally, in Northern Europe and other countries where social contribution activities are becoming more prevalent, there are examples of national governments taking the lead in establishing systems that provide incentives such as coupons that can be used for sports tickets or public transportation to consumers who participate in volunteer activities. However, in Japan, there is a strong tendency to feel reluctant to do something good for society for one’s own sake, and this is said to be one of the reasons why volunteer activities and the like are not widespread in this country.
In other words, in order to continue solving social issues and volunteering, and to truly create an impact that will change society, it is important to “balance what is good for society with what is good for you,” as can be seen in examples that have worked in other countries.
What is the system that turns what is good for the Earth into what is good for you and connects you with companies and local governments?
Amid these social issues and trends both in Japan and other countries, “Tsunaga LOOOP”* was developed to realize a worldview in which what is good for society is also good for individuals.
| * | This is a neologism made up from the words “tsunagaru” (connect) and LOOP. |
The goal of Tsunaga LOOOP is to realize social contribution activities that are effortless, fun, and allow people to participate on an ongoing basis. First, we will explain in four steps how companies, local governments, and consumers can get involved in social contribution activities using the Tsunaga LOOOP system.
It starts with the design of social contribution activities undertaken by companies and local governments. It is not limited to specific actions, but covers everyday social contribution activities such as cleaning, recycling, saving electricity, and choosing the best means of transportation.
One of the features of Tsunaga LOOOP is that it is flexible enough to allow the types of activities to be freely defined, making it possible to meet a wide range of needs. This facilitates linking up with CSR activities and volunteer activities already being carried out by companies and local governments.
With Tsunaga LOOOP, the social contribution activities undertaken by consumers are recorded as NFTs. These are “digital certificates” that utilize blockchain technology, and can store information on the social contribution that individuals have made in a way that cannot be tampered with. Companies and local governments can offer incentives (such as coupons or points) in return for proof of activity, encouraging consumers to continue participating.
The history of social contribution activities recorded through NFTs creates connections between companies and consumers, and between local governments and consumers. Each social contribution activity is connected, and participants can receive incentives from various companies and local governments.
Companies and local governments can achieve results by working together on social contribution activities. In this way, new relationships are formed between companies, local governments, and consumers to achieve good for society together.
Ultimately, the contribution to society (such as CO2 reductions and number of activity participants) of all of the activities undertaken through Tsunaga LOOOP, as well as that of individual companies, local governments, and consumers, can be recorded in NFTs and visualized as data. This transparency creates new trust, encourages further participation, and creates a virtuous cycle of social contribution.
With this design, Tsunaga LOOOP goes beyond being just a points service or CSR support; it is now possible to build an entirely new social infrastructure in which the track record of social contribution activities can also serve as credit information for consumers.
Creating new customer experiences with NFTs
We believe that Tsunaga LOOOP will help companies deepen and expand their social contribution activities. Specifically, there are three benefits to utilizing this system.
1. Strengthening relationships with consumers
By praising and supporting the social contribution made by consumers, companies can build stronger relationships than ever before. Rather than building relationships with customers through monetary value, we believe that the experience of “doing something good for society and then having my favorite brand recognize it” has great value in creating strong engagement.
2. Expanding participation and mutually complementary activities
For example, if a company’s SDGs activities are linked to Tsunaga LOOOP, participants from other companies and local governments will gather, creating an environment where mutual incentives can be provided. As a result, awareness of and participation in the company’s social contribution activities will increase, leading to a greater social impact.
3. Quantitative visualization of social contribution
Tsunaga LOOOP visualizes social contribution along two axes: “Connection contribution (e.g., number of participants, number of NFTs issued)” and “Impact contribution (e.g., amount of CO2 reduction, amount of trash collected).” This clarifies the value of a company’s social contribution, which was previously unclear, and can be used for ongoing public relations and communication.
A new option to promote social contribution activities for companies and local governments
“I want to continue to have fun while doing activities that benefit society,” “I want to deepen connections with people in my community,” “I want to show the results of my company’s efforts in numbers,” and “I want a system that can continue for the long term, not just be a temporary one”—Tsunaga LOOOP is the answer to such voices.
For consumers, their social contribution activities, such as eco-actions and volunteer work, will remain as a record, and they will also be able to receive incentives from companies and local governments, which will lead to something good for them. This is an experience that gives consumers a real sense of contributing to society.
On the other hand, for companies and local governments, by endorsing and supporting consumer activities, they can build relationships as partners building the future together, rather than being seen as simply “a disseminator of information.” This will build trust and lead to increased brand and regional value.
“When you do something for someone else, it will come back to you.”
The goal is to spread this positive cycle throughout society.
That is the future we want to realize with Tsunaga LOOOP.
