Changing Business from the Inside Out: How to Pursue a Career in CSR and Sustainability

07 Monday Jul 2014

Posted by in CSR

≈ Leave a comment

Tags

, , , , , , , , , , , , , , , , , , , , , , , ,


What does one do to get a job in the field of corporate social responsibility? And moreover, how do you excel at something so nebulous and undefined?

I’ve spent the last eight years trying to decode these issues and report about what companies are doing to not only embrace the essential message underlining CSR but also integrate a sense of responsibility within their culture. I interviewed practitioners, researched numerous CSR reports, and conducted multiple surveys on the issue to identify what exactly translates into a “CSR career” or “CSR job”.

While feedback, comments and social media indicated that my reporting was helping raise awareness and compelling professionals to think about their choices, I realized that what we needed was a reference guide, an encyclopedia of sorts, a How-To of practical tips from executives who are embedded in large corporations and have experience influencing change, leading behavior change and staying patient when the profits vs. CSR debate rears its head.

Turns out, Changing Business from the Inside Out: A Treehugger’s Guide to Working in Corporations is the handbook I was looking for.

Written by Tim Mohin, Director of Corporate Responsibility at AMD, the book offers critical pieces of advice and practical tips for current and aspiring professionals who believe they can make a difference through their careers.

Tim_MohinAnd that is the segment that Mohin wants to target. He told me a couple of years ago that he wanted to write a book aimed at people who “want to change the world through business.” Then, jobs were  few and we were struggling as an economy. Occupy Wall Street was yet to take shape.  And corporations were focused on surviving a deep recession not worrying about their social responsibility quotient.

But as we know today, this recession has not only furthered the divide between consumers, employees and corporations on a whole host of social, environmental and economic issues, but also pointed the finger to each and every one of us. Where does the blame lie? How did we get here?

In this vacuum of trust in the marketplace, Mohin’s book is a much-needed antidote for professionals and students who want to restore our economy, while protecting the environment and benefitting society, but lack the practical advice.

Changing Business from the Inside Out: A Treehugger’s Guide to Working in Corporations

We sat down for a heart to heart about the book, his tips, his journey at AMD and much more.

“The book is meant for people who want to use their careers to change the world. I want to enable the next generation to create the change they want to see happen,” he began. For Mohin, a vocal co-supporter of student-led organization Net Impact whose conferences attract thousands of job seekers, students and professionals each year, the field isn’t as “rosy as it looks.” [Note: Net Impact members get a discount!]

“Increasingly I felt that people who wanted to have a meaningful career didn’t understand what the field involves. There are certain sets of skills that need to be acquired,” he added.

The CSR field is growing. And companies are starting to respond to what was primarily a movement driven by activists, students and academia, by creating CSR departments and integrating corporate citizenship into business strategy.

Each of these points of integration, implementation and planning however, requires specific skill sets. And as more job opportunities emerge, Mohin believes it is up to the incumbents to educate and mentor an “army of professionals who can work in CSR and sustainability.”

Should Companies Create CSR Departments?

He likened the evolution of CSR to the quality movement in the 1980s when every company responded by starting a quality department. “Today, large companies realize that they must have someone in charge of CSR. It’s not a new department per se but builds upon the community, public affairs or environmental teams and adds on other parts of corporate citizenship,” he said.

Now, the question of having CSR departments has always triggered opposing reactions among professionals, executives and job seekers. Should CSR be a separate department? Or an integrated element of everyone’s job description? Or a C-suite led initiative?

For Mohin there is no debate, contrary to what several of his peers in corporate America have told me.

“I do think we need a department: it should be senior, small and strategic. Fundamentally, what that department is doing is setting direction, vision and key performance indicators [KPIs]. But the real work is being done by traditional line management functions.”

“For example, most companies need to have a CR council and together we work through top-level  goals to meet our vision, execution and measurement. When you look at CSR, it’s too broad for any one manager to manage. By nature, it’s a cross cutting service group that works with others to get the job done,” he emphasized.Tim_Mohin_Book

“But if there is no one in charge, it gets lost and nothing gets done.”

Preparing for a Career in CSR

But many of the skills, programs and business processes are transferable outside the CSR function, as I discover every time I interviewed a CSR executive and analyze their career’s trajectory. Mohin concurs. “Remember that most CSR functions simply report the news,” he told me, adding, “The news, though, is created in line management and mainstream corporate roles like procurement, HR, legal, and supply chain.”

Mohin’s advice hits home. For years, I have advised students and professionals that to forge a career in CSR, they must first develop a sector expertise, a specific skill set and then decide which element of CSR they can fit into. Using “I want to work in CSR” is never a good starting point.

For the author, it comes down to “Skills, Processes and Programs.”

“In chapter one, I identify how CSR has evolved at companies and how organizational structure affects the practice. Use this to figure out where you fit. Then turn to chapter two, where I list out the skills necessary for a successful career in CSR,” he said.

Once you’ve identified where you fit, chapter three and four offer a crash course in CSR strategy and how to respond to emerging issues. The rest of the book focuses on the many different programs under the umbrella of CSR. “So pick the one that applies to your skills and passion and then understand how to excel in that particular field,” he explained.

Apple, Gap & Nike: Supply Chain Crucial Area for CSR Jobseekers

For example, supply chain is an area that Mohin has devoted part of his career to while at Apple. But his emphasis – two long chapters – on the area of supply chain has more to it than passion or experience. “For me, this area is the No. 1 growth area in corporate responsibility. When you see the trend starting back a few years ago with Nike and Gap’s supply chain woes, and now Apple in the electronics industry, the critical importance of supplier responsibility becomes clear,” he said.

“Now it’s becoming embedded in companies more so than ever before because of outsourcing. Companies have found outsourcing to be cheaper and strategically more efficient for them. But accompanying that, we need a supplier responsibility program, therefore the growing demand for professionals who can understand all the nuances of both supply chain and social responsibility,” he said.

Another important reason that there are jobs in this area: Supplier responsibility is a big, complicated task. “One that requires quite a large team of skilled professionals. At Apple, it started with just me and I quickly hired a small ream but if you compare to Gap, I believe they have about 70 people in labor standards. Disney has even more,” he said, adding, “Now, imagine the scope and scale of managing all social responsibility for suppliers of all the Fortune 500 companies.”

Running a Data-Driven Program: Leading Through Influence

In order to drive a CSR program, however, whether it is supplier responsibility or environmental impact, every project requires a robust method set in place for the collection and analysis of relevant  data that can feed strategy and project the achievability of goals.

And that’s where Mohin places his bets for success.

A common thread at every company he has worked for, including Intel, Advanced Micro Devices and Apple, is managing data-driven programs. The ability to set quantifiable goals and measure progress has been a crucial aspect of his career in corporate responsibility. “[Data] has been a hallmark of my career,” he said.

So much so that Mohin has devoted an entire chapter on the need for establishing meaningful goals and knowing what to measure. In the book – chapter four – he uses the examples of Intel, Coca-Cola and Starbucks to exemplify his emphasis. In our conversation, he referred to lessons from his tenure at Intel.

“When I was the environmental manager at Intel, the first thing I did was establish Key Performance Indicators (KPIs) so that we could start measuring our global environmental performance and forecasting the future. As soon as we figured it out, senior management wanted to know. And because we were focused on the data, we were quickly able to identify the process changes and reductions that decreased our emissions even while production was increasing,” he recalled.

His advice?

“[You] need to be able to understand what’s important for your business and your stakeholders and how you can quantify progress in these areas to be successful. These metrics together become a dashboard seen by senior management regularly so they track the success measures and identify areas to improve. Running your program this way ensures that you will get the engagement and buy-in needed for a successful corporate responsibility strategy,” he said.

“Once you start to measure what’s important to your business and your stakeholders, you start to see alignment.”

Finally, I asked him to list the top skills he believes anyone aspiring to excel in CSR and sustainability must have. [Buy the Book]

In Mohin’s words, you must be:

1. A Lifelong Learner

“In corporate responsibility, you have to be flexible and curious. You’re often working in areas that are not your strong suit but if you’re open to new experiences and unafraid to be the dumbest kid in the class, this field is for you. Not everyone has that kind of personality. You have to be comfortable in your skin. And, it helps to have a thick skin.”

2. Able to Lead & Influence Without Being the Decision Maker

“You must be able to lead and influence when you’re not making all the decisions leading up to the end goal. You must be able to understand the system well – such as identifying and building relationships with those who have the budget and the authority to get things done – and be able to work with them and influence across a broad spectrum of people and groups to work toward a common goal.”

3. Able to Communicate Well

“It is one thing to know your business and another to describe it to someone else who may not know your business as well. It’s like talking to your mother about CSR. To be able to do this job, you have to be a good communicator. It’s a critical skill in many fields but absolutely essential in CSR. CSR leaders are like the ‘de-coder ring’ in many companies because they have to understand the inner workings of many business groups and explain it to others.”

4. Social Media Savvy

“The world of communications has changed in fundamental ways and the future will be very different too. We need to stay on top of were communication is headed – and right now, that’s social media.”

“What I learned from social media is that I get more out of it than I put in. I learn something new every day through social media. Communication is happening in real-time with real content and being social media savvy is an essential element to be effective in many fields.”

5. Able to Understand the Importance of Stakeholder Relations

“Remember that the field of CSR is new, it’s evolving. But also remember that social media and hyper transparency are becoming the new normal, which makes stakeholder engagement not just a priority, but essential.”

“The world is watching and CSR is about our behavior as a company. If you’re not asking people ‘how you are doing?’ and ‘how you can get better?’ then you’re flying blind.”

Originally written for and published on CSRwire’s Commentary section Talkback on August 16, 2012.

Corporate Social Responsibility at Target: Behind the Red Bullseye

07 Monday Jul 2014

Posted by in CSR, CSR reporting, CSRwire, ESG

≈ Leave a comment

Tags

, , , , , , , , , , , , , , , , , , ,


Target released four new corporate responsibility goals in 2011:

  • Increase sustainable seafood selection
  • Improve owned-brand packaging sustainability
  • Increase diabetes HbA1c testing compliance
  • Increase reading proficiency

Now, Target’s 2011 CSR Report offers pages of graphs measuring the Minneapolis-based retailer’s progress against these goals. While the graphs look promising and underscore the challenges of operating in a competitive market with multiple layers of stakeholders, I wanted to understand the context behind these goals and what the execution would look like.

I sat down with Tim Baer, Executive Vice President, General Counsel and Corporate Secretary with Target, for a conversation about the goals and how his team plans to demystify complicated supply chains and motivate its employees and customers toward healthy and sustainable choices.

Aman Singh: While the PDF of goals and progress gave me a sense of exactly that, i.e., progress, it didn’t give me a sense of Target’s mission/values. Can you elaborate?

Tim Baer: At Target, we’re committed to positively impacting the lives of our guests and team members. Since 1946, our legacy of giving and service has been reflected in a commitment that today totals more than $3 million a week to our communities.

Tim_Baer_TargetAnd at the end of the day, by continuing to  serve our team members and communities, we ensure our future success. As a result of our giving model, we benefit from being a workplace and shopping destination of choice for our team members and guests. Not only do our guests value our commitment to communities and giving, but our team members do as well.

To bring our vision of strong, healthy and safe communities to life — which we can’t do alone — we work with community, business and civic partners who inform and share in our approach. We know we can make a meaningful impact, so we set goals to guide our work in three focus areas — helping to put more U.S. children on the path to graduation, reducing our impact on the environment and helping Target team members live healthy, balanced lives.

Why is education such a big goal for Target?

Education, specifically K-3 literacy, is important to Target for three primary reasons. First, we believe that every child deserves the opportunity to reach his or her full potential. And, we’re compelled to do our part to address the education challenge in America, putting more kids on the path to high school graduation.

Second, based on guest surveys, we know that our guests care about education more than any other social issue, and we’re committed to giving to communities in a way that positively impacts our guests and their families.

Third, we know that reading proficiently by the end of third grade is a significant milestone on the path to graduation. This is the time when a child transitions from learning to read, to reading to learn. A child who cannot read proficiently by the end of third grade is four times more likely to drop out of high school when compared with a child who can.

Ultimately, education is critically important to the success of our children and our economy. By supporting education, we are investing in developing an educated workforce that is prepared for today’s and tomorrow’s challenging work environment. At Target, our team is our competitive advantage, and preparing future team members with a quality education today makes good business sense.

CSR_Education_Target

Your data shows that you were not able to achieve your water reduction goals? Can you give us a sense of the challenges and where improvements need to be made?

To recap the report, Target used 3.45 billion gallons of water, representing a 0.3 percent reduction in water use per square foot from our 2009 baseline. Although our absolute water use exceeded our initial baseline, we also increased our total real estate square footage, which led to a decrease in water use per square foot.

The most significant challenges we faced in 2011 were drought-like conditions in some of our mature markets like Texas, Minnesota and Iowa, where we have a relatively high concentration of stores requiring increased irrigation. This negative impact was modestly softened by our rollout of several water-saving initiatives, which we estimate will contribute a reduction of 1.4 percent annually starting this year.

A few examples of our water-saving initiatives include:

  • Expanded installation of smart irrigation controllers that irrigate based on real-time local weather data in lieu of set times,
  • Use of ultra-low flow urinals and water closets, and
  • Elimination of continuously running dipper wells for ice cream and coffee stations at Target Café and Starbucks locations in our stores.

We’re also in the process of installing real-time water submeters in a number of stores to pinpoint the quantity of water a typical store uses for various operations. This will help improve our evaluation of water-saving opportunities moving forward.

Environment_CSR_Target

You have a goal of reducing owned-brand product packaging for at least 50 product designs by 2016. Is that aggressive enough?

While we’ve targeted 50 packaging designs, these changes will be implemented for a much larger number of items that use the same packaging.

We know environmental stewardship is important to Target guests, and our sustainable packaging designs will let them know that Target’s commitment to reducing our environmental impact begins before our products hit shelves.

Over the next five years, Target will be developing sustainable packaging designs that yield at least a 10 percent improvement in one of several attributes of our existing owned-brand packaging. We’ll do this in several ways, including reducing overall packaging, using more recycled or renewable content, and reducing product waste. We’ll also look to use more recyclable materials in our packaging, Sustainable Packaging at Targetcounting these improvements toward our goal only if the updated packaging is 100 percent recyclable.

The goals indicated regarding packaging are limited to your owned-brand products. Are there any plans to push your suppliers and CPG partners into more responsible, transparent and environmentally friendly actions?

We believe in leading by example and hope that by creating more sustainable packaging for our owned brands, we can inspire our suppliers, CPG partners and peers to implement more sustainable packages in their own products.

The report indicates strong progress toward empowering employees to be more health-conscious. Can you discuss some of the challenges behind the numbers?

For us, 2011 was a year of learning in regards to team member wellbeing.

We recognized goals specific to preventive service utilization rates were difficult to measure consistently and accurately, so we adopted HEDIS [National Committee for Quality Assurance’s Health Effectiveness Data and Information Set] measures. By doing so, we can support our wellbeing efforts by comparing our utilization rates to those of other employers or healthcare entities like medical groups or health plans.

The size and geographic distribution of the Target team member population reaches across 49 states, 1,700 stores, 37 distribution centers and nine domestic headquarters locations. We employ more than 365,000 team members and know they have varying degrees of health engagement, variable disease prevalence and differing perspectives on healthcare services. This is an opportunity for us to develop tailored programs that address these differences, more effectively reaching every team member, regardless of where and how they live and work.

Can you summarize the key highlights of the report?

All of Target’s corporate responsibility objectives ladder up to our larger goal of creating a brighter future for our team members, our communities and the world we live in. Target is here for good. Through all of these initiatives, we’re committed to positively impacting the lives of our guests and team members.

Additionally, Target’s 2011 Corporate Responsibility Report is the most transparent corporate responsibility report we’ve ever released. It represents the first time Target declared a GRI Application Level and obtained a GRI Application Level Check. [For more information, Target’s GRI Application Level/Check Statement from GRI were posted on www.Target.com/hereforgood on July 13, 2012.]

Why bother reporting on this set of internal goals? How do you measure the “success” of your CSR report?

Our commitment to our guest extends far beyond our stores, and we believe truly great service includes supporting the communities where we live and work. In business, Target collaborates and innovates to drive results. Key to that collaboration is transparency when it comes to measuring and reporting progress toward goals, allowing us to grow as a company.

Originally written for and published on CSRwire’s Commentary section Talkback on August  6, 2012.

Examining Humana’s 2011 CSR Report: Targeting Well-being, Increasing Focus on Supply Chain

07 Monday Jul 2014

Posted by in CSR, CSR reporting, CSRwire, ESG

≈ Leave a comment

Tags

, , , , , , , , , , , , ,


Humana_2010-2011_CSR_ReportHumana recently released its 2010 and 2011 CSR report. What’s news about that?

For one, with this report, the health insurer became the first in its sector to follow GRI guidelines. Second, it lays down the foundation for upcoming efforts in building a sustainable supply chain and consciously partnering with NGOs and nonprofits in furthering well-being for all.

I sat down with Jim Turner, Humana’s Director for Media and Public Relations and Catherine McGlown, Humana’s CSR Lead to discuss the report — and what’s ahead for their teams.

How does Humana define CSR?

Turner: “Humana defines CSR as our dedication to making business decisions that reflect our commitment to improving the health and well-being of our members, our associates, the communities we serve, and our planet. Our CSR platform – Healthy People, Healthy Planet, Healthy Performance – represents that.”

What’s the significance of being the first company to issue a GRI report in the health insurance industry?

McGlown: “We’re excited about it, as you might expect. We won’t be surprised to see other insurers at least seriously consider following suit. As stakeholders demand increasing transparency and accountability, reporting with a recognized framework is one way our industry can continue to build trust with our members, associates, shareholders, regulators and the community at large.

“The publication of Humana’s 2010 & 2011 CSR Report using GRI guidelines (self-declared at a level C) shows that Humana is leading the health insurance industry in the larger trend of reporting out on environmental, social and governance data. CSR reporting is growing, both internationally and nationally. GRI estimates the number of North American reports with a GRI index increased by 35 percent between 2010 and 2011; we are proud to be a part of that growth.”

What metrics are discussed within the report?

  • Humana’s pledge to reduce building energy consumption, greenhouse gas emissions and annual energy expenses by 10 percent each, over the course of 2012, from a 2009 baseline.
  • Formation of Humana’s Network Resource Groups for African-American associates; Hispanic associates; caregivers; and gay, lesbian, bisexual and transgender associates. Since the report publication, Humana has launched another group for military veterans.
  • Humana’s report also discusses the company’s plan to hire 1,000 or more veterans and/or their spouses for a variety of roles across the company, as part of the Humana Veterans Initiative. Humana has hired more than 400 military veterans and military spouses since the initiative began in August 2011. Military Times EDGE named Humana Military Healthcare Services as one of its 2012 “Best for Vets” employers. On this year’s list, Humana achieved the highest ranking of any health care company.

What have been some of the challenges of CSR reporting in a highly regulated industry?

Turner: “We’re used to being very careful about how we handle people’s health and well-being information. We have to be. This was no different as we compiled information and data for this year’s CSR Report. We wanted to be extra sensitive to how our associates and external stakeholders would view the report and how we frame sometimes-sensitive issues.”

Does Humana have community engagement initiatives only in the markets you do business?

McGlown: “Through our Medicare operations, Humana does business in all 50 U.S. states, so the answer is yes. That said, we certainly consider markets where we do business and where our associates live and work when evaluating community engagement initiatives, but those are not the only qualifying criteria. Humana’s dream is to help people achieve lifelong well-being – regardless of where they live. As Humana is now a national company, we’re working hard to become good corporate citizens in all of the communities where we do business.”

A few examples:

  • Humana has partnered with the nonprofit KaBOOM! to build multigenerational playgrounds across the country – with the most recent build in Marion, Iowa – they have built a total of 11.
  • The Humana Well-Being Tour is travelling the country for eight months, stopping in different communities and meeting people where they live to give them a fresh perspective on healthy living. This national mobile health initiative includes pedometer distribution, biometrics stations and virtual games focused on health.
  • If enrolled in a Humana health plan, Humana associates and their families can participate in an incentive-based program called HumanaVitalitySM. Rooted in science, this program encourages individuals to create a goals-based health plan and rewards individuals for healthy choices—such as losing weight, staying active and eating better—by awarding points redeemable for purchases. In addition to benefiting Humana associates, this program enables Humana to build the business case for workplace wellbeing and encourage other companies to invest in employee health.
  • Humana’s Signature Program Team Up 4 Health, located in Eastern Kentucky, uses the power of personal relationships to influence people’s behaviors towards better health and lifelong well-being. Its mission is to curb chronic diseases—such as diabetes, cardiovascular disease and obesity—which are among the most common, preventable and costly health problems in the United States. This two-year pilot is a partnership with Microclinic International, Citizen Effect and community partners.

How do you see the company’s commitment to community engagement helping Humana’s long-term sustenance?

McGlown: “Well-being is much like CSR in that it is a journey, not a destination. We prioritize walking alongside people in their journey, and one of the ways through which we can continue to drive wellbeing is through community engagement. Meeting people where they are and encouraging them to make changes in their lives that yield lifelong well-being (purpose, belonging, health and security) is a win-win.”

What CSR initiatives will Humana focus on in the next two to three years?

McGlown: “Humana will spend the next two to three years building upon the foundation we have set. One area of focus for Humana is its supply chain. Humana is identifying ways to deepen its sustainable procurement efforts, as follow-up to a supplier assessment conducted in 2011, as well as ways to increase its spend with diverse suppliers.”

Turner: “In terms of environmental work, in addition to our energy-savings targets, Humana is working on a green real estate project. For our owned facilities, we’re developing a scorecard to determine the highest-impact locations for green retrofits. For potential new properties, we’re integrating consideration of LEED potential into our RFPs and site searches.

“We have also made a multi-year commitment to continue our work with KaBOOM! Over the next three years, we will build more than 40 multi-generational playgrounds in high-need communities to encourage well-being through play.”

What do you hope to get out of your CSR report?

Turner: “The establishment of our formal CSR efforts began with both senior-leader support and organic associate activities – our CSR platform of Healthy People, Healthy Planet, Healthy Performance reflects who we are. Humana’s stakeholders – including our members, employees, and the communities in which we do business – expect a certain level of transparency from us¸ and we aimed to provide them with that through our CSR Report.”

McGlown: “This first GRI report was a tremendous learning experience. Going forward, we’re looking for ways to deepen our reporting, including possibly striving to report at the B- level in our next report.”

Originally written for and published on CSRwire’s Commentary section Talkback on June 28, 2012.

Bagels With the Tall Guy: In Conversation with Green Mountain Energy

07 Monday Jul 2014

Posted by in CSR, CSRwire

≈ Leave a comment

Tags

, , , , , , , , , , , , , , , , , ,


Green Mountain Energy, founded in 1997, is the longest selling retailer of carbon offsets in the country with a lofty mission: To change our dependence on power generation from coal and nuclear energy to renewable sources.

With a clear environmental mission and a dedicated consumer base, why would a company like Green Mountain Energy [GME] bother publishing an annual sustainability report?

“The [sustainability] report gives us an opportunity to write about everything we are doing. When you build a company of people who are passionate about the environment, the report becomes a forum to talk about everything we are doing,” says former President Paul Thomas.

The day of our interview, Thomas was still President of the company he has led since 2000. Two days later, news of his stepping down was delivered to my inbox along with a quote:

“I am extraordinarily proud of what we have collectively accomplished at Green Mountain and know that the potential for driving meaningful change is nearly limitless if businesses, like ours, can put market forces to work to solve societal problems.”

Thomas is referring to the recent acquisition of GME by New Jersey-based NRG Energy.

Merging Two Cultures & Winning Over the Skeptics

Paul_Thoms_GMEHow did the company overcome hesitance from employees, customers and investors alike about the acquisition?

“Our society is transforming as a whole from being oil-driven to something very different driven by renewable sources and technology. The question is how do we get from here to there as a society? NRG is a good example [of a company addressing] this dilemma. They are the largest investors in solar production in the country. Now, Green Mountain is a part of their initiative to make NRG a cleaner company – their activities are genuine and we fit well,” he explains.

What about shifting work cultures?

Thomas says the company has undergone several shifts since the 1990s. “We started with a lot of environmental enthusiasts with a low level of business skills. It would have been a lot of hot air if we didn’t drive value to customers. Today we are also a good sales organization, a customer-service driven company,” he says, transitioning from being an environmental company to a good business.

Sustainability Performance

But back to the 2011 sustainability report, which follows several other companies’ lead in shutting off downloadable PDFs in favor of an interactive all-you-can-consume website. The company has come a long way from its formation in the 1990s. According to the report, GME contributed to avoiding 4.5 billion pounds of CO2 emissions, which is “equivalent to not driving a car for six billion miles or planting 6.5 million trees.”

“Remember that in 1997, this was just an idea,” reminds Thomas. “We’ve also increased recycling and all our material now is made from 100% post-consumer recycled content,” he added.

Green_Mountain_Energy_CO2

GME also expanded its innovative Sun Club, which asks customers to pay an additional $5 a month to help the company invest in solar projects. The money donated is then distributed to fund solar projects nationwide in coordination with nonprofits. 2011 marked the biggest year yet in contributions.

But what is sustainability without employee engagement?

Transparency in Action: “Bagels with the Tall Guy”

GME encourages its employees to bike, bus or take the subway in its New York office and participants in 2011 doubled past years’ numbers, according to the report. The report also makes public GME’s paper and publishing standards as well as its contributions and partnerships with organizations like EarthShare.

Green Mountain Energy’s answer to town halls is what the staff quirkily call “Bagels with the Tall Guy.” Thomas explains:

“I’m 6’6” tall. My predecessor was bald so it used to be called “Bagels with the Bald Guy.” It is just an informal communication forum for employees to ask me anything that is on their mind. Nothing is off the table and the conversation is purposely unstructured.”

While all is fair game, Thomas admitted that not everyone attends every month. But what it does is allow “us to be transparent. I believe that employees are effective when they have more context of their job and how they are contributing. Their role makes more sense and there is less doubt about how they fit in and how they can make a difference,” he added.

Public Policy & Sustainability

GME_ProductsWith the Rio+20 Summit coming up, I asked Thomas what the government and public policy makers can do to help support the growth of businesses like GME.

Pointing to a fundamental disconnect, he said, “The public is ahead of policy makers because there is a fundamental misunderstanding between individuals who are concerned about the environmental and their willingness to make purchasing decisions.”

“In the last 10 years, we have seen a sea change in the public’s attitude. But policy makers have not caught up with that,” he continues, adding:

“Green Mountain can focus on market changes by aligning ourselves with the social and environmental benefits of our product. That’s a powerful combination. We’ve proven that green business works, that there is a market for us, and that we can drive a lot of societal benefit while providing good jobs and careers for individuals, and meaningful returns for investors.”

Thomas also cautioned activists and skeptics to keep in mind the regulatory barriers in the market for green energy. “Every state has its own approach ranging from Texas that is competitive and has an open market for electricity to states where the old monopolistic system is still there. We are not allowed to compete in those states!” he emphasized before adding, “We cannot sell green electricity without having permission to enter the states and compete first and foremost.”

A significant barrier but one that hasn’t stopped Green Mountain Energy from scaling the heights and pursuing its mission. His advice for aspiring social and environmental entrepreneurs? “Keep at it, we’ve done it and shown that green businesses can thrive. It’s possible.”

Originally written for and published on CSRwire’s Commentary section Talkback on June 1, 2011.

The True Value of CSR Reporting: In Conversation with Campbell Soup’s VP for CSR

07 Monday Jul 2014

Posted by in CSR, CSR reporting, CSRwire, ESG

≈ Leave a comment

Tags

, , , , , , , , , , , , , , , , , ,


The soon-to-be-released report will mark Campbell Soup’s fourth CSR Report. This report comes amidst a CEO change – Denise Morrison took on the chief job at Campbell Soup last year joining a small group of women CEOs in the Fortune 500 – and a period of what Director of Diversity & Inclusion Kevin Carter calls a time of “deep introspection” for the company.

Carter’s note is well taken. With the economy sputtering and flailing, reports continue to suggest that consumer confidence and trust remain low. For a food manufacturer then, this means not only staying ahead of the curve of quickly changing taste preferences but also understanding its unique role in encouraging nutrition across an increasingly complex and fragmented consumer base.

And amid a tepid economy, where does the true value of CSR and sustainability reporting lie? Can these reports and the effort required to produce them extend beyond an exercise in sharing key metrics, the year’s highlights – and a few, incredibly sparse media mentions – to true learning experiences for companies to better their processes and make gains that help them and their communities become more sustainable?

The True Value of CSR Reporting

Dave_Stangis_CSFor VP of Public Affairs and Corporate Responsibility, Dave Stangis – his third report since taking the job at Campbell Soup – the true value of Campbell Soup’s reporting goes far beyond setting the right goals and reporting on the progress.

“The true potential of CSR reporting* is that while companies go through this chronological reporting effort once a year, the organization and business units are executing their strategies and working on metrics year-round. The process of reporting creates an opportunity to build a Campbell Soup Britannica or World Book to work off of and use as a record of the company’s progress,” he said in a recent interview.

“All year-long, we are collecting examples, building the narrative, monitoring our progress and continually evolving materiality assessments,” he continued. Often, great examples of progress emerge that would otherwise never rise to the spotlight in a multinational company.

“As you dig in, you find cross-functional teams working together on strategy, benchmarking, indicators, etc. There are, of course, always things to improve on but the stories and ideas that emerge from this heels dug in reporting exercise are incredibly useful in moving our company forward,” he said.

Connecting the Dots: Recognizing the True CSR Heroes

In recent weeks, CSRwire readers read from a number of top executives at Campbell Soup on their stories and contribution to the 2012 CSR report. Trish Zecca discussed the fine balance between nutrition and taste while Amanda Bauman discussed how the company is tackling hunger and obesity in its communities and Dr. Daniel Sonke gave us an in-depth account of the relationship between agriculture practices and corporate sustainability. Finally, D&I Director Kevin Carter offered his insights on how the company is prioritizing intercultural teams, moving diversity beyond compliance, and tentatively dipping its toes in social media.

For Stangis, these are the true heroes.

“These are the people who are behind the images and stories in the report. They are invested in the business Campbell_Soup_Volunteersand their work and there is a discernible amount of pride and work ethic that goes along with that,” he said.

“For our CSR Communications Manager Niki Kelley – creating this report is her life for six months and I’ve told her, she’s the one who knows more about the entire company than anyone else in the company.”

5 Questions for Campbell Soup’s VP for CSR

What is Stangis most proud of in the latest CSR report?  “It’s the nuances that a lay reader won’t realize but that are critical to the progress we are making,” he said. To explain further, we decided to play five questions:

1. Whose Interested:

“We continue to evolve our understanding of our various audiences [for the CSR report]. We want to connect with our employees on the frontline as well as in the C-suite. We need to impact our neighbors and make the content relevant to our customers and consumers. Most readers are looking for quick snapshots and I want to validate, reinforce and build trust and credibility in that short timeframe.”

2. What’s New:

“We’ve really worked hard on strengthening the wellness and nutrition metrics from a product perspective…we’re not driving a health ultimatum, but we are offering more healthy choices for consumers. Readers that pay closer attention will notice a growing sophistication in our strategies and metrics across the board. This report also includes the first full description of our Healthy Communities Initiative that we’ve launched in Camden, NJ.”

3. What’s Often Hidden:

“We work hard to make sure nothing gets lost in the details, but there is a ton of content that most readers will miss on a casual glance. The CEO Letter can give the readers a sense of how Denise Morrison thinks and interacts with the CSR and sustainability strategy.”

“We’re bridging from an employee engagement (only) mindset to a performance culture that leverages engagement to drive better business results. This isn’t something that is immediately obvious to external readers but it’s a priority for us.”

4. What’s Measured Gets Managed:

“Last year we discussed our community programs but this year the report really talks about these in a strategic and measurable manner. We continue to advance our metric set from product conception to societal impact. We’ve mapped our production sites with the WBCSD Global Water Tool and as we’ve brought our Community and Foundation functions into tighter alignment with our CSR and Sustainability strategies, we are shifting from measuring activity to measuring outcomes.”

5. Uncharted Territory: 

“The big news this year from a sustainability perspective is our traction on renewables. We’ve had smaller efforts in the past but in 2011 we went from dipping our toes in the water to flipping the switch on one of the largest solar installations in the country. This represents a cultural shift for the company. Large scale renewable projects just weren’t in our solution set and now we are evaluating new renewable opportunities across our plant network that reduce our greenhouse gas emissions and save money.”

Solar_Panels_at_Campbell_SoupFor Campbell Soup, a global footprint means a holistic vision of sustainability that encompasses its products, employees, communities and supply chain.

And for Stangis, publishing an annual report is not only a testament to his team’s efforts but also a way to measure what’s not working. Having led CSR at Intel before joining Campbell Soup, Stangis is a veteran in the world of CSR reporting, and has seen firsthand the evolution of the sector.

“What comprehensive reporting does today is set up a process that continues to position the company in the long-term. This wasn’t the case when we started reporting. Now we’re anticipating issues and breaking down communication silos that are inherent in the company,” he explained.

Challenges Ahead: More Data, Clarity of Purpose

Any regrets? “We need to keep pushing ourselves for better data every year, especially for our international footprint. It’s only when you dig in that you realize how much better a fully integrated measurement and reporting system would be,” Stangis confessed.

The journey – as for most companies taking on the responsibility and challenge of reporting on their corporate social responsibility and sustainability efforts – is far from over.

And as a seasoned sustainability executive, Stangis understands the daunting task that lies ahead for Campbell Soup in a crowded market, evolving taste preferences and the continuous challenge of consumer education.

“We still have to plug people into what we are doing, the reason why we are doing it [and make it make sense],” he said, noting that it isn’t just the external stakeholders that need the dots to be continually connected for them.

“We have to do a better job at communicating the strategic intent and shareowner value delivered by a comprehensive CSR program.  Our internal teams, our C-suite – it’s our job to help them understand  the story across the board.”

Originally written for and published on CSRwire’s Commentary section Talkback on May 24, 2012

Missing Voices: Green Business Leaders Discuss Representation at Rio+20

07 Monday Jul 2014

Posted by in Capitalism 2.0, CSR, CSRwire, ESG

≈ Leave a comment

Tags

, , , , , , , , , , , , , , , ,


Co-written with Martha Shaw 

Nearly 100 sustainable business leaders crowded onto the 10th floor of the UN Church Center in New York City on
May 1st to join a conversation with Chantal Line Carpentier, Sustainable Development Officer and Major Groups Program Coordinator of the United Nations Department of Economic and Social Affairs, and other UN representatives.

The topic: To hear from the “missing voices” of over 200,000 entrepreneurs from organizations including the American Sustainable Business Council (ASBC), Social Venture Network, Business Alliance for Local Living Economies (BALLE), B Lab, CSRwire, Green America and ‘buy local’ green business networks.

The meeting was hosted by The Temple of Understanding, and organized by Martha Shaw, to explore ways that founders of socially and environmentally responsible ‘triple bottom line” businesses might bring their voices to Rio+20, and beyond.

“We Must Raise Our Voice Now”

David_Lavine_Missing_VoicesASBC’s David Levine started the conversation by stressing that the gathered entrepreneurs are conscious of their global counterparts who are also running businesses that presuppose green practices and help serve social needs while making money.

“Whether they are social enterprises, micro enterprises, women’s groups or development groups, they all carry the same sensibilities of a triple bottom line. They are finding a balance between profits, social and environmental goals,” he said. “This voice is missing in our country today because a monolithic voice led by multinationals dominates all dialogues.”

Levine ended by emphasizing that this is the opportunity for the entrepreneurs to market their leadership and present their pioneering work on a global stage as a way of creating shared value. “This voice is new and we must raise it,” he ended.

“Define Sustainable and Green Business”

Green Maps SystemGreen Map System‘s Wendy Brawer picked up where Levine left by adding that until we define what “sustainable business” means, creating this coherent voice will be hard.

Jumping into the dialogue, CSRwire CEO Joe Sibilia made it clear that “any business that integrates the human condition into its operations, whether you call it humanity or spirituality, is sustainable. These entrepreneurs are using business to create a values-driven and sustainable world,” he said. “Financial gains cannot be the only objective. It’s that simple.”

Eco-preneurs at Rio+20

Temple of Understanding’s Grove Harris interjected by adding that it is “practices like the ones Joe is highlighting that need to be voiced at Rio+20. It is important to bring these issues to the table by showing business practices that manifest in social value.” She also added that traditionally, non-governmental organizations have not proven sophisticated enough to support our future and voices. “We need business to be there.”

Joe_Sibilia_Missing_VoicesMore examples of mission-driven business enterprises solving many social and environmental problems, including the eradication of poverty, were offered, as was a comparison to the restraints of multinational corporations who are bound by law to act in the best interest of stockholder profits.

Though Sibilia, Harris, Brawer and B Lab’s Peter Strugatz offered several examples of supply chain relationships among green businesses and corporations going green, they also pointed out that many other models exist for ways the world can do business outside the restrictions of a corporation.

United Nations: Collaborate & Lead The Conversation

After hearing everyone out, Chantal Line Carpentier, the United Nations’ Sustainable Development Officer and Major Groups Program Coordinator, took the floor to urge the attendees to work with the UN in representing their issues at Rio+20.

She also emphasized clarifying ambiguous language about sustainability and suggested that the sector come to an agreement on what “private public partnerships mean” and “how you can help influence policy and regulatory frameworks.”

“Consider this as a strong call for leadership. There is a lot of talk about business doing more but how? Show us, offer best practices, define CSR, and align practices with the United Nations Global Compact guidelines,” she said.

Carpentier also recommended that the entrepreneurs make an effort to demystify the language around lifecycles, supply chain analysis and sustainability.

Finally, Tess Mateo, an advisor to the UN’s Department of Economic and Social Affairs (DESA), pointed out that the Women, and Indigenous People Major Groups would be good allies and recommended that we remain cognizant of working together with the other enterprises in promoting our voice on the global stage.

Originally written for and published on CSRwire’s Commentary sectionTalkback on May 2, 2012.

Social Responsibility, Beer & Aliens: Journey to Becoming the Best Beer Company in a Better World

07 Monday Jul 2014

Posted by in CSR, CSRwire

≈ 1 Comment

Tags

, , , , , , , , , , , , , , , , , , , ,


I caught up with Carol Clark, Global VP for Beer and Better World, to drill deeper into Anheuser-Busch InBev’s latest CSR report. Key highlights:

The report is titled Connecting for a Better World. AB InBev makes beer. What’s the connection?

At AB InBev, our dream is to be the Best Beer Company in a Better World. We believe that taking consistent, active measures in our core areas of social responsibility means constantly connecting our business with our stakeholders, especially in the communities where we live and work.

It takes a team effort to address these issues. Through our work to promote responsible drinking, reduce our impact on the environment and support our communities, we work with others who share our collective goal of making a difference.

There’s a quote in the report from Carlos Brito saying “We’re not aliens.” Can you offer some context?

Carol_Clark_AB_InBevWhen Carlos Brito said, “We are not aliens …” he was responding to a question at the Business for Social Responsibility Conference last fall about why AB InBev actively promotes responsible drinking.

AB InBev today has over 116,000 employees operating globally. We live on this planet and share the same concerns as our friends and neighbors. Many of us are parents and understand how important it is to talk with our children to help prevent underage drinking.

Similarly, we don’t want to be on the road with drunk drivers, and we’re committed to supporting prevention efforts such as encouraging the use of designated drivers. We’re committed to addressing these issues not only from a business perspective, but also from a personal perspective.

What is the ROI in producing a comprehensive CSR report such as this one? Media mentions? Retention? Rankings? Anheuser-Busch_CSR_Report

Publishing our CSR report keeps us focused and accountable to our stakeholders and ourselves. The scrutiny that this annual process brings gives us an updated perspective to help us further drive our performance, engage our employees and very importantly, thank them for their great work over the past year.

From an external perspective, we’re satisfying the requests from varied stakeholders for transparency on our social responsibility efforts.

The report is over 80 pages. Who is your primary target audience? And, who would you want to target?

We have a lot of good things to talk about! We use the report to share our progress with diverse audiences – from community stakeholders to investors, to media, to government officials – around the world.

Alex Prud’homme author of The Ripple Effect recently said that “Water is the headlining story of our century.” Are you focusing on sustaining your business by reducing water use, R&D on water replenishment or identifying alternative products altogether?

Water is our primary environmental focus and we aim to reach a water usage rate of 3.5 hectoliters of water for each hectoliter of production by the end of 2012.

We tackle the issue of responsible water use by doing more to conserve both in our operations and in the communities where our breweries are located. Progress requires operational changes and continually applying the most updated technical innovations. It means going further with supply chain and community partners to help conserve water outside our walls. But it also requires reinforcing a mindset that doesn’t take water for granted.

[Anheuser-Busch InBev’s 2011 Global Citizenship Report]

It can be argued that 8.2% reduction in water usage since 2010 is not a lot. Primary challenges in reaching double-digit reduction?

Actually, if you look at the beverage industry, this is a significant achievement. And it’s important to keep in mind that we’ve focused on water and energy efficiency for some time now, so there is very strong year-on-year progress. And we’re also making these reductions while continuing to grow our business. That means that each year, our brewing operations teams find innovative ways to do more with less when it comes to water.

To date, we’ve achieved an average water use of 3.71 hectoliters per hectoliter of production across our global business, which represents a 13.7% reduction against our 2009 baseline.

Our target, which we’ve stated publicly, is to reach 3.5 hectoliters of water per hectoliter of production by end-2012, which will put us on the leading edge of water usage for the brewing industry.

Your report mentions the billions paid in wages and income taxes. Not a lot of reports make these metrics a part of their community development results. Why the emphasis on wages? 

As the leading global brewer, we have operations in 23 countries. We have a significant economic impact on the local communities where we do business through the jobs we create, the wages we pay and the taxes we pay governments at all levels. We feel that it’s important to report on and recognize the value and impact we are bringing to communities where we live and work.

Can you talk to the “ownership culture” of the company?

One of our 10 AB InBev Principles is about ownership: “We are a company of owners. Owners take results personally.”

[Sustainable Beer: Anheuser-Busch InBev’s 2012 Environmental Goals]

We strive to create a culture that encourages responsibility and accountability, and that applies to our work on social responsibility as well. Creating this culture of ownership helps us build those connections and team approach, both internally and externally, to helping make a difference in our communities as we strive to be the Best Beer Company in a Better World.

Originally written for and published on CSRwire’s Commentary sectionTalkback on April 26, 2012.

Eurosif’s 2012 Procurement Report: Investors Increasingly Auditing Supply Chain Sustainability

07 Monday Jul 2014

Posted by in CSRwire

≈ Leave a comment

Tags

, , , , , , , , , , , , ,


An interview with François Passant, Executive Director of Eurosif, the European Sustainable Investment Forum

What are the critical points investors should know about this report?

François Passant: The Eurosif Procurement Report reveals – one of the first such reports – how investors can systematically minimize supply chain François_Passant__Executive_Director_Eurosifrisks against the backdrop of an exponential growth in outsourcing to low-cost regions such as Asia, and recent environmental disasters such as
Fukushima.

Researched by privately held swiss Bank Sarasin, the report illustrates the factors that are considered in a robust sustainable supply chain audit and offers best practices used by multinational companies in the textiles and electronics sectors in monitoring different tiers of suppliers. We focused on these two industries primarily because they have particularly long and complex supply chains, though there are variations even in these sectors.

It also helps practitioners frame the business case for responsible supply chain management.

What are the main contributing policies and standards highlighted by the report?

Responsible supply chain management requires recognition of the relationship between environmental, social, legal and reputational risks and financial performance.

There is a range of legal and quasi-legal measures, international and self-regulatory codes of conduct and standards aimed at improving the sustainability of supply chains. Examples include:

 1. The Electronics Industry Citizen Coalition [EICC] Code of Conduct

Many more large textiles brands now require compliance with minimum labor standards and therefore conduct supplier audits. According to the Eurosif report, this has led to an improvement in issues such as child labor, forced labor, occupational health and safety.

Most leading electronics companies have a Code of Conduct that is based upon the Electronics Industry Citizen Coalition (EICC) code, an industry initiative which is supporting positive changes on social and environmental issues.

 2. The Dodd-Frank Act

Legal restrictions such as the Dodd-Frank Act in the U.S. will demand that companies reveal the source of their minerals’ procurement to reduce the use of raw materials mined under primitive and hazardous conditions.

 3. Guiding Principles on Business and Human Rights

The UN Human Rights Council endorsed the Guiding Principles on Business and Human Rights in June 2011, which define the responsibilities of companies to protect human rights in their operations and supply chains. Although it is not legally binding, the principles offer a clear direction for the future.

4. EU Directive 2002/95/EC 

Eurosif_NALegal and quasi-legal pressures also affect environmental risks. Some substances are regulated and phased out by the EU Directive 2002/95/EC on the Restriction of the use of certain Hazardous Substances in Electrical and Electronic Equipment (RoHS). Similarly certain substances are under observation for future regulation in the frame of the EU regulation on Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH).

5. European Commission’s Roadmap to a Resource Efficient Europe

In 2011, the European Commission published the Roadmap to a Resource Efficient Europe, as one of the flagships of the Europe 2020 Strategy. A key element of the roadmap is the promotion of sustainable production by setting appropriate price signals and defining a common methodological approach to measure environmental performance (environmental footprints) of products and services.

Consumer pressure is also a driver for positive change. The market for green, ethical and organic — organic cotton sales tripled in the last six years (Textilexchange, 2011) – products has grown rapidly in recent years and is projected to continue at this fast pace.

What are some best practices on capacity building and supply chain monitoring standards revealed by the report?

One of the biggest challenges is getting improvements along the supply chain from direct suppliers to raw material producers.

Eurosif_Cisco_Supply_Chain

Leading companies have a multi-stage process, starting with risk assessment to identify suppliers with a high exposure to labor and environmental issues, followed by self-assessments, and finally regular on-site audits at key supplier factories carried out by internal staff or external auditors. In the case of non-compliance findings, corrective action plans are defined. Some electronics companies like Hewlett-Packard or Cisco Systems publish the results of their audits.

However, in general, transparency in the apparel and textile industry is more advanced than the electronics sector.

There is an upward trend in companies reporting on audit results including non-compliance cases; some even disclose their suppliers. Leading sporting goods and retail companies have supplier performance measurement mechanisms that have been fully integrated into their supplier assessment and their order placements. Puma and Adidas Group are cited in the report as companies which are relatively transparent about their sustainable supply chain auditing.

Collaborative and capacity building efforts are included in the sustainable supply chain audit. Leading apparel brands have been working together to improve labor standards in their supply chains. Examples include the Better Work partnership between the International Labor Organization (ILO) and the IFC and cooperation with the Fair Labor Association.

Environmental projects are more focused on materials. Examples include the Leather Working Group and Better Cotton Initiatives.

Other highlights that link sustainability and risk assessment?

Other sustainability-related supply chain disruptions mentioned in the report include:

  • Energy scarcity
  • Incidents related to health and safety
  • Environment
  • Product safety
  • Business ethics

A loss of productivity led by supply chain disruptions affects revenue and increases costs.

In a recent survey, 74 percent of surveyed companies agreed that outsourcing and just-in-time strategies were making their organizations more vulnerable to supply chain disruption.

How does the report expand the dialogue on ethical sourcing and supply chain management?

The report discusses supply chain management and sourcing materials from an investor’s perspective regarding environmental and labor issues in particular and their compliance with international laws, regulations and standards as mentioned above.

Investors are advised to adopt a robust supply chain audit, which includes:

  • An assessment of the extent of outsourcing
  • Assessment of the locations of suppliers
  • Corporate policies and standards (including industry and legal)
  • Effective monitoring procedures
  • Capacity building along the supply chain
  • Active collaboration within the industry and with stakeholders
  • Clear product labeling

The sustainable supply chain audit is described in more detail in Eurosif’s Procurement Report, which can be downloaded from Eurosif.com [PDF].

Originally written for and published on CSRwire’s Commentary sectionTalkback on April 10, 2012.

Weaving Ethics & Accountability into Free Enterprise: Leadership in Crisis

03 Thursday Jul 2014

Posted by in Capitalism 2.0, CSRwire

≈ Leave a comment

Tags

, , , , , , , , , , , , , , , , , , , , ,


“An entrepreneur is the engine of change. The dilemma: The glue that connects entrepreneurs, capital and the legal system.”

The real problem with companies today?

“A lack of purpose, intent and transparency.”

That’s how Erik Trojian, director of policy for nonprofit B Lab, opened his presentation at the recent seminar held jointly by Georgetown University, the Caux Round Table and the Sustainable Business Network of Washington (SBNOW).

The theme of the two-day seminar was weighty: Ethics, Leadership and Sustainability – to explore how the capitalist spirit of free enterprise and social entrepreneurship can help transform economic systems and promote social justice, basic rights, and human freedom around the world.

Common among the presentations of the day was a repeated emphasis on corporate governance, beginning with Trojian.

Modern Capitalism & Benefit Corporations

Trojian and his team are on a mission: To get all 50 states of the United States of America to sign the benefit corporation legislation into law. So far, they have succeeded in seven states.

He explained their goal:

“Modern capitalism began at a particular point of time in a certain type of culture. Somewhere in the 1960s, values began to shift and outcomes began to change. We want corporations to have an alternative form of operation that predicates protecting a business’ social and environmental communities.”

After a powerful presentation on the what, how and why(s) of the benefit corporation – a subject that has been covered quite comprehensively by CSRwire in recent weeks – Roderick M. Hills, Sr., former chair of the SEC and cofounder and chair of the Hills Program on Governance at the Center for Strategic and International Studies took the podium.

“Fixing” Bad Corporate Governance

“The Securities Exchange Commission [SEC] was set up to have more finite control of corporations’ governance. Auditors were expected to act on all suspicions. We convinced the New York Stock Exchange to address disclosure and transparency,” he started.

The next antidote according to Hill: The Foreign Corrupt Practices Act.

“The Act’s real problem was its uncertainty. They don’t want to deal with figuring out what is a crime and what isn’t resulting in people doing whatever they want to do. Plus the Act was not valid outside the geographic boundaries of the U.S. The rest of the world has no incentive to use this,” he said.

Aligning Board Service with Governance: A Conversation with Lucy Marcus

What’s really wrong with most corporation’ boards set up and governance standards according to him? His concerns were multifold so I turned to Lucy Marcus, renowned corporate governance expert, CEO of Marcus Consulting Ventures and Reuters columnist for some answers:

1. Too Much Agreement in the Boardroom

“There are too many directors today who would rather quit than disagree.”

Lucy: Asking the hard questions in the board room is essential, and also being willing to be persistent in the pursuit of the best outcome for the company and stakeholders is essential. Those are the kind of independent directors we want in the boardroom.

Anyone who is not willing to operate in this new reality doesn’t belong in the boardroom, and as we develop & educate new directors they need to know that this is what shall be expected of them.

2. The Fiduciary Responsibility of Directors

“There is a paradox in the country. Independent director doesn’t equal independence today. Every director has a preset job description regardless of who he represents/brings to the board.”

As directors it is vital that we understand going into the post what our job is inside and outside of the boardroom, what skills and knowledge we bring to the table, and also that we also operate beyond those strict skills we bring to also be able to synthesize data quickly and to make decisions in a well-informed and responsible manner.

3. Mandatory Retirement

“The mandatory rotational retirement is a terrible idea. There is no auditory protocol built-in and it gives directors too short a time to compel change, set standards, make a difference.”

I believe strongly in term limits. Best practice, as set out in the U.K., is several terms that add up to 9 years, and I think this is correct.

There is no way that someone can maintain their independence for much longer than that, and if the board room is to remain a place for dynamic discussion, it is incumbent upon boards to continually refresh themselves so that the people around the table bring a balance of continuity and change and the company is able to keep its finger on the pulse of changing agenda items, be it corporate social responsibility, technology, or anything else that is relevant to continued strength, growth and wellbeing of the organization.

If Capitalism Isn’t Bad, Are Capitalists?

Despite the somber notes, Bob Edgar, president and CEO of Common Cause, perhaps encapsulated the day – and our present crises – most succinctly with one question:

“Is it appropriate for [a form of] capitalism to exist that leads to unemployment, slavery and excess profits above all else?”

Readers: It’s your turn to participate in this dialogue and become the change makers you seek from our leaders. How are you solving ethical dilemmas between personal values and professional responsibilities?

As Chairman of the Hershey Company James Nevels put it recently at the BCCCC conference, “CSR above all begins and ends with personal responsibility.”

How do you define personal responsibility – and extend that to corporate responsibility?

Originally written for and published on CSRwire’s Commentary sectionTalkback on April 4, 2012.

Conflict Minerals & Supply Chain Responsibility: Spotlight on the EICC

03 Thursday Jul 2014

Posted by in CSRwire

≈ Leave a comment

Tags

, , , , , , , , , , , , , , ,


The Electronics Industry Citizenship Coalition (EICC) was formed in 2004 and incorporated in 2007 as a nonprofit industry trade group focused on the electronics sector. The aim: To help drive the industry collaboratively toward higher levels of socially responsible business practices.

It does so with a code of conduct and intensive means for implementation of the Code.  With over 65 members, the Coalition’s mission is simply stated: to “improve efficiency and social, ethical, and environmental responsibility in the global supply chain.”

Conflict Minerals & Supply Chain Responsibility

Recent U.S. laws and continued pressure from activists has pushed companies to focus on not only how they source their materials but also what they are doing to educate, empower and sustain their suppliers. For the electronics industry, this has become a major piece of work with conflict minerals and extractives playing a significant role.

In a webinar I conducted with Best Buy last year on the release of their latest sustainability report, for example, several questions from the live audience targeted the electronics retailers’ complex supply chain. With ethics dilemmas aplenty and multifold regulations across regions, how is the industry coping with the pressure to improve its sourcing practices while continually pushing themselves to do better?

John Gabriel, chairman of the EICC’s board of directors, will be joining Metalor Technologies, Research In Motion, Responsible Jewelry Association, the International Trade Centre, Chrysler and the CSR Group, in a workshop on Collaboration as an approach to Supply Chain Responsibility at the upcoming Ethical Sourcing Forum in New York City. We sat down for a chat.

Supply Chain Complexities: Compliance vs. Collaboration

As corporate manager of IBM‘s supply chain social responsibility program – a position he has held since 2004 – Gabriel is no stranger to the complexities of auditing, discipline, sustainability and compliance.

“The approach we have taken as an industry group [at the EICC] is to tackle this very challenging topic by engaging with a broad spectrum of our stakeholders directly,” he said.

“Work began a number of years ago with the Global e-Sustainability Initiative (GeSI). We also engaged leading NGOs and researchers on the topic in order to begin the task of developing solutions to this very complex challenge,” he added.

“We have developed a number of tools to help the process along including a smelter certification scheme and a due diligence survey application that enables companies to survey their suppliers for materiality knowledge” he continued.

EICCJointly developed by the EICC and GeSI members and other industry participants, the survey allows for industry-wide aggregation of responses in order to highlight upstream smelters being used and ultimately country of origin for the minerals in question.”

It’s, of course, easy to over simplify the complications – and the kind of progress needed across sectors – Gabriel is referring to.

In fact, verification of entire supply chains to ensure they are completely free of conflict minerals will require not only exemplary leadership among the industry but, according to Gabriel, a significant amount of out of the box thinking.

“For companies to be able to deploy this is a huge task. We are talking about years’ worth of work before all levels of the supply chain are vetted,” he emphasized, adding, “The infrastructure we are developing will enable this work, but it requires an even larger group of end users to adopt and deploy in order to drive the effort.”

Regulatory Pressure: Rising to the Challenge

With the Dodd-Frank bill ensuring that supply chain reporting on Conflict Minerals becomes mandatory for companies required to file SEC disclosures, Gabriel believes coordination and collaboration is the best way forward on the path to demonstrate regulatory compliance.

And this is what he hopes attendees at the upcoming Ethical Sourcing Forum can take back to their organizations.

Originally written for and published on CSRwire’s Commentary sectionTalkback on March 28, 2012.