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Creating Access For All: CVS Caremark Sets Ambitious Goals

09 Wednesday Jul 2014

Posted by Aman Singh in CSR, CSRwire

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cause marketing, charity, community development, CSR, CSRwire, cvs, eileen howard boone, employee engagement, grants, healthcare, inclusion, ngo, nonprofit, philanthropy, Philanthropy, volunteerism, Work culture


The neighborhood pharmacy. The alternative to supermarkets. Chances are there is a CVS/pharmacy store within walking distance of your house. Or at least one within a couple of miles.

There was for me. As a new citizen, a kind CVS manager gave me my first American job, taught me how to differentiate between a nickel and a quarter – and the basics of customer service in a country where consumers rule a market spoiled with choice.

So how does a brand with deep community roots across a nation and significant impact support its business mission while keeping its social and environmental missions aligned and relevant? And how do you measure success beyond revenue dollars and flu shots?

I recently checked in with Eileen Howard Boone, SVP of Corporate Communications and Community Relations for CVS Caremark and VP of its foundation, the CVS Caremark Charitable Trust, for some insights into the pharmacy healthcare company’s CSR strategy as well as their unique perspective on community development.

License to Drive Results

“We have a license to drive social impact in ways that are independent of what’s going on in our company,” she began, explaining that the Foundation is the philanthropic arm of the company and reports to a board of trustees, giving Boone and her team some latitude to define their own priorities.

Interestingly, Boone is head of CVS’ Foundation but also heads the company’s communication efforts, highlighting a close alignment between impact and engagement within the centralized organization. “I sit across the company and work with our senior leadership on where we are going and how our
giving strategy fits with our future plans. Embedding the Foundation’s work and mission into the corporate strategy is critical to stay true to our business and values,” she explained.

Of course, as with most foundations, CVS’ Charitable Trust focuses primarily on the annual grant cycle. “Starting in 2012, we decided to focus on four categories: access to healthcare, coordinated care, early intervention and inclusion – a theme we use as a base criteria for all the grants we make,” she said.

“The primary focus through these categories is to measure how we along with our partners are driving impact in our markets. Are our nonprofit partners moving missions? Nine years ago, when I joined CVS, we weren’t measuring the impact of everything we were doing in our communities. It was scattered and not strategic. So we stepped back and asked: how are we living, operating and working in our communities?”

Need for Focus, Strategy

The introspection brought some expected results, namely, the need for focus and more research-based decisions. Eighteen months of research followed – with customers, employees, nonprofits, experts in pediatrics, etc. – on how to tighten the Foundation’s focus while having the most impact. “The idea was to find an issue of opportunity within healthcare that we could support and significantly impact five different ways: awareness, funding, in kind products, volunteerism and strategic counsel,” Boone emphasized.

“We wanted to have the opportunity to engage our employees. They live in our communities – and we were not leveraging their potential as volunteers, activists, decision makers and advisers,” she added.

In 2012, CVS employees donated an equivalent of $1 million in volunteering hours. But with 7,400 CVS Caremark: All kids canstores across diverse communities, volunteering and giving campaigns are effective only when localized. “Our All Kids Can program creates equal opportunity for all kids regardless of disability or situation and as we roll that out across our stores, we find that our employees really like to define “all kids can” in their own way. In one town, for example, it meant supporting the Special Olympics, in others it meant building a new playground,” Boone replied.

And that’s okay.

Volunteerism vs. Grants: Measuring Effectiveness

It’s difficult to have a cookie-cutter approach across 7,400 stores when local impact is the main driver. As the “local pharmacy building healthier communities,” CVS’ mandate is national but hyper-local in intensity. Do grants work better on a local level or volunteerism? With causes aplenty and communities diverse, how does the retailer juggle impact with dollars and employee time?’

According to Boone, monetary grants are definitely the first point of entry.

In 2012 alone, grants made through the All Kids Can program touched the lives of more than 5.8 million children and families. Despite all the benefits espoused about pro bono and volunteerism, the essence and impact of grant making is not lost on Boone who has been working in this sector for more than 20 years, including leading the Office Depot Foundation for six years.

“When we think of our large national partners, we need to understand that once the initial grant is made, there are other opportunities for engagement that we must leverage to extend the impact of that grant. But that initial grant is critical to move the needle and scale programs,” she said, adding, “For example, in a New Bedford school, we sponsored an incoming fifth grade class to connect with
our pharmacists around careers in healthcare, hygiene, health issues etc. In Rhode Island, we supported a free clinic, a multilevel partnership that started with grants, but now sees pharmacists often volunteering to support the clinic,” she explained.

For NGOs, grants from companies like CVS are critical.

And Boone understands the importance of looking at impact through a multidimensional prism:

“Awareness is a big thing that we can bring along with our dollars and other assets for nonprofits. They become better at fundraising and implementing programs after they’ve done some due diligence,” she said. “It gives them confidence, competence and the much-needed publicity support, “she added.

Measuring Impact: Healthcare For All

As a mother of six, however, Boone does feel strongly about CVS’ primary impact area: healthcare for all. And that becomes a tough metric to measure when you take into account the company’s diverse communities’ needs.

“We have learned over the years that we need to be asking the right things. Last year, we announced a partnership with the National Association of Community Health Centers to distribute $3 million over three years, across their centers for chronic disease management programs – and plan to monitor results. Measurement will include everything from number of people served to patient health outcomes.”

“We strive to measure our impact in a variety of ways including quantitative results like the number of patients served or the number of additional days a clinic is open, qualitative measures program outcomes and employee participation. We also place a heavy focus on storytelling and gathering stories from our partners to bring to life the successes of a program.”

Yet, that’s measurement of specific programs.

What is the company’s impact on the sector it sits centrally within, i.e., access to all, quality of life, awareness, hygiene, etc.? How does CVS measure its success as a healthcare retailer? As a conscious business? As a neighborhood pharmacy? As a collaborator with pharmaceuticals?

In Boone’s mind, her footprint – and her employer’s – is pretty clear: “We feel we are successful if our nonprofits are successful,” she said.

It’s that simple.

Originally written for and published on CSRwire’s Commentary section Talkback on April 3, 2013.

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Earthwards 2.0: Johnson & Johnson Seeks to Evolve Sustainable Product Innovation

09 Wednesday Jul 2014

Posted by Aman Singh in CSRwire, ESG

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andrew winston, Brand Management, CSR, CSRwire, earthwards, environment, Environment, ESG, health care, healthcare, hunter lovins, Innovation, lifecycle analysis, marks and spencer, Sustainability, sustainability, sustainability strategy, unilever, waste


In recent posts, I explored the genesis of Johnson & Johnson’s proprietary Earthwards® process and how it has been used to help develop greener products to meet customer needs. For Johnson & Johnson, the process of instilling a sustainability mindset began with introspection and questioning: How does an organization with multiple product lines and a global workforce develop and define greener products? And the process began with a tool called GAIA, or Global Aquatic Ingredient Assessment.

In the beginning, GAIA was operating almost exclusively with R&D because it was a science-based tool with specific emphasis on measuring downstream ecosystem impacts.  Implementation of the Earthwards process accelerated broader adoption and has helped spur greener product innovation based on lifecycle thinking that is, in part, quantified by tools like GAIA. But Earthwards, despite its rigor and initial success, is still in its infancy.

In 2012, Senior Director for Worldwide Environment Health and Safety Al Iannuzzi enlisted a team of experts that volunteered to examine the Earthwards process and recommend areas for improvement. What’s next? I explore the future of the program through the eyes of two well-respected sustainability experts who recently weighed in as part of that expert team: Andrew Winston and L. Hunter Lovins.

_____________________________

By now, you’ve probably caught a glimpse of that new inspiring Honda Civic 2013 commercial, framing innovation as believing that ‘things can always be better.’  For Winston, making things better begins by asking questions. “As we pursue sustainability in the future, asking the right questions will be as important as the answers we get,” he said.

For the people at Johnson & Johnson, the concept of continuous improvement is a driving force. So it makes sense that their efforts to evolve the current Earthwards methodology into a better process  began with some Earthwardshonest introspection and engagement with a few external experts, including Winston and Lovins.

In a recent phone call with Winston, I asked him his impressions of the Earthwards process.

He believes that the Earthwards process is a solid program with appropriate categories and logical steps that “empowers product developers with information and helps them understand the choices. It’s a well-designed system, but does have its pros and cons.”

I asked him to elaborate.

“They have the right categories, seven in all, but the concern is that a product could be improving in three distinct areas, but these may not be the most important areas to focus on in order to address the products’ greatest material impacts.  There’s a fine line between simplicity and enabling efficient assessments.”

Of course there are trade-offs. But the biggest challenge internally is giving employees the time and information they need to become comfortable with the Earthwards process and appreciate the impacts of improvements across the lifecycle.

“It is a fair point,” said Iannuzzi. “Our Review Board, including three external experts, also helps to keep the process objective, making sure that the brands focus their improvements on meaningful areas. To make this even more robust, we will require each application to address the lifecycle screen hot spot areas identified in step two of the Earthwards process, the lifecycle screen.”

Sufficiently Ambitious or Room for Improvement?

There is broad agreement among the experts that Johnson & Johnson has a long history of – and
interest in – environmental protection and sustainability. “The company has cared about its impact on the environment and on people, and taken a position of responsibility,” Lovins noted.

While both Lovins and Winston said that the Earthwards  process is one of the most comprehensive sustainable product tools in the industry, and in Lovins’ view, “a strong and rigorous process.” She also feels there is opportunity for the company to become even more aggressive in making this a companywide initiative.

“They need to examine the inadequacies of the Earthwards process, align it with tougher science-based goals and then make a commitment to hold every product to those goals.”

Winston had similar sentiments, specifically around the 10 percent benchmark Johnson & Johnson has set for improvements against Earthwards’ sustainability criteria. “The problem with a goal like 10 percent is that it’s kind of an internal-looking, corporate improvement. These goals at the product level need to be shooting for more dramatic increases.”

Some of J&J’s leading products are doing more than the required 10 percent anyway, so why stop there?

According to Iannuzzi, Johnson & Johnson sees the potential to raise the bar, perhaps substantially on some dimensions, but also recognizes the need to balance meaningful improvements within the original intent of Earthwards.

“J&J is always up for a challenge, but we want to make sure we don’t raise the bar so high that it becomes detrimental to Earthwards’ intended purpose of widespread adoption,” said Iannuzzi. “If we make the bar so high that almost no product can get there, no one would pursue it.”

 New Blueprint Needed?

According to a recent study commissioned by Johnson & Johnson titled The Growing Importance of Sustainable Products in the Global Health Care Industry, 54 percent of health care organizations globally say green attributes are very important in their purchasing decisions of health care products medical wasteand supplies. And this trend appears to be gaining traction, as 40 percent of global hospitals expect their future request for proposals to include sustainability criteria for the products they purchase. Among the greatest concerns hospitals share are the amount of energy they use and the volume of waste they generate.

With data like these indicating that the strongest push for sustainability is coming from within the healthcare sector, how will this influence the evolution of the Earthwards process?

To get at the heart of this question, Winston suggests that Johnson & Johnson ask itself whether doing better than 95 percent of its competitors is good enough.

In fact, Winston said Johnson & Johnson should go further than others and has challenged the company to raise the requirements for Earthwards recognition. For example, the baseline could be higher than the current 10 percent improvement needed to achieve recognition in the different categories, especially in the energy efficiency category, in light of the general scientific consensus that greenhouse gas emissions need to be reduced by 85 percent by 2050.

Iannuzzi responded: “We plan to better understand the greenhouse gas emissions impacts of the improvements we make this year with the Earthwards process and consider ways to further encourage them in our products.”

Lovins suggests the company be more transparent with customers about where it is in the process of sustainable product development and where it is going. Iannuzzi’s team is already responding by sharing more content on www.earthwards.com including more information about the 36 products that have received recognition so far and other external-facing efforts like a six-part series with CSRwire.

Internal Certification Process, Not a Sustainability Strategy

Coleman Bigelow, Johnson & Johnson Global Sustainability Marketing Director, sees the Earthwards program as an internal product stewardship and green marketing process rather than a long-term sustainability strategy like that of Marks & Spencer’s Plan A or Unilever’s Sustainable Living Plan.

The Earthwards process ensures “every product we produce has undergone a lifecycle screening and is as sustainable as possible. For the first time, we have a process that offers something to the developers, the R&D folks, as well as the marketers and sales associates,” Bigelow explained.

Iannuzzi, a Johnson & Johnson veteran of 28 years who has spearheaded the Earthwards program internally from the start and is a popular sustainability champion among the team, doesn’t foresee the company taking an approach akin to GE’s Ecomagination with a separate structure, either.

“Our philosophy is to embed sustainability into every product, not create something special or separate,” Iannuzzi explained. That said, the company does plan to track how much of its revenue stems from Earthwards recognized products. So while it is not its own revenue generating business unit, per se, it certainly could prove to save the company money over the long haul as well as drive innovation internally.

When I asked Iannuzzi about Earthwards’ ten-year plan, he reflected.

“Ideally, I envision it as a way of showing customers how we are coming up with more innovative products using sustainability as the driver. This means moving Earthwards process away from being an add-on and moving it toward full integration.  External communication will also be key.”

“But right now, it’s not as well integrated as we would like,” Iannuzzi admits.

Regardless, Winston seems convinced that Johnson & Johnson’s efforts have been both aggressive and innovative as a whole. The next tricky move for the company, say the experts, is to be mindful of how quickly the Earthwards program grows in scope without losing sight of the program’s quality.

As the team at Johnson & Johnson prepares for Earthwards round two, the experts’ advice should help the healthcare company scale its journey from green to greener without losing sight of the ultimate goal: A sustainable planet for future generations.

For now, it’s back to the white boards.

About Andrew Winston and L. Hunter Lovins

A globally recognized expert in green business strategies, Winston is the author of Green Recovery and co-author of Green to Gold, the international best-selling guide to what works – and what doesn’t – when companies go green. Winston is also founder of Winston Eco-Strategies, a sustainability consultancy dedicated to helping companies use environmental strategy to grow, create enduring value, and build stronger relationships with their stakeholders. He writes extensively on green business strategy, including a weekly column for Harvard Business Online and guest byline articles on Huffington Post.

Lovins is an award-winning sustainability consultant, featured speaker at conferences across the globe and author of Natural Capitalism: Creating the Next Industrial Revolution. Lovins is also president and founder of Natural Capitalism Solutions (NCS), which creates innovative, practical tools and strategies to enable companies, communities and countries to become more sustainable. Lovins is also a professor of sustainable business management at Bard College and Denver University, and consults for large and small companies, and governmental clients.

Originally written for and published on CSRwire’s Commentary section Talkback on March 13, 2013.

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