Tag Archives: sustainability

Dow Chemical: Extracting Business Value out of Sustainability

03 Thursday Jul 2014

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After more than a decade of negotiations, there’s news today that Dow Chemical has agreed to clean up 1,400 residential properties in Midland, Mich.

The root cause: A Dow Chemical plant located in Midland, also home to its headquarters, responsible for polluting the area with dioxin for a better part of the late 1990s.

Dow Chemical has had a long history of pioneering research and innovation in sustainability, from collaborating with nonprofits on driving solutions — it was named one of the most sustainable companies in Brazil in 2011 — to industry-wide partnerships on reducing their products’ environmental footprint.

But no number of accolades or ratings can hide the immense environmental and social footprint of the company’s operations, domestically or internationally. Or as many would opine, help erase a history of soil, air and water contamination.

So, how does the chemicals giant prioritize sustainability to drive its long term business plan? And how are these complex social and environmental challenges defining this strategy? Neil Hawkins, Dow Chemical’s VP for Sustainability & EH&S offers some insights:

Top Sustainability Challenges of 2011:

1. Accounting for the value of nature

We’re entering a new phase of integrating the value of nature into the corporate balance sheet through a breakthrough 5-year collaboration with The Nature Conservancy. This partnership will determine the value of ecosystems to Dow’s operations.

Scientists from both organizations are developing tools and testing models together that we will eventually share with other companies and the science community. In early 2012, we will issue a public progress report on the collaboration, as well as a broader update on Dow conservation projects around the globe.

2. Market adaptation to sustainable solutions and innovation

There is a significant divide between environmental and social issues, and the appetite of markets to adapt, and sometimes pay, for new solutions that address these issues. Bringing innovation to market is a costly proposition filled with economic and political volatility, lack of clear and consistent regulation, and lack of guarantees for ROI.

Despite these headwinds, we are addressing megatrends and challenges by staying focused on our mission and values, and through unwavering investment in our innovation pipeline.

Aspirations for 2012: Where does CSR / Sustainability fit?

In 2010, Dow passed the midpoint of its second set of 10-year sustainability goals – the 2015 Sustainability Goals.

In 2012, we will work on our next set of goals, building on the momentum of the past 20 years, and find ways to drive Dow’s science and people into unprecedented areas of leadership, collaboration, innovation and change.

These goals serve as a strategic guide for leveraging business to address global challenges from accelerating urbanization, rapid population growth and increasing demands on natural resources. Prioritizing the safety and wellbeing of Dow people will also always be at the core of how we measure success.

With sustainability at the root of our mission, vision, and values, sustainability and CSR don’t just “fit” in – they drive decision-making, investment choices, hiring practices, and employee engagement at Dow.

Sustainability, in particular the pursuit of more sustainable chemistry, also gives our innovation engine a clear target.

Predictions: Extracting Business Value from Sustainability

Companies will become more proficient at extracting business value from sustainability commitments and practices

The chemical industry, among others, will continue to move beyond sustainability as an obligation driven by outside forces, toward uncovering tangible economic value that drives both top and bottom line growth.

The economic value of sustainable development can and should influence all decision-making – including capital investments, recruiting, marketing, product design, R&D and service functions. Companies will need to become savvy life cycle practitioners, innovators and collaborators.

By looking externally at unique partnerships, and internally at deeply integrated sustainability through employee engagement and accountability, companies will unlock new areas for growth by harnessing the value of sustainability.

The critical role chemistry plays in solving world challenges will continue to move to center stage.

Our world is facing pressing challenges including water supplies, energy sources and affordable housing. Mitigating the impacts of these challenges and managing our natural resources worldwide requires the manufacturing industry, and in particular, the chemical industry, to play an enabling role by discovering and implementing new technologies.

Chemistry is fundamental to our lives. It enables more than 96 percent of all manufactured products.

As a company, we’re committed to driving innovative solutions through chemistry, such as the POWERHOUSE Solar Shingle, which transforms a typical house into a dynamic power generator.

Then there are efforts such as the United Nations’ 2011 International Year of Chemistry that put the power of chemistry on a global stage.

But more attention is needed to accelerate science-based solutions, increase collaboration, and attract new generations into rewarding STEM careers – where the problems of today and tomorrow will ultimately be solved.

Originally written for and published on CSRwire’s Commentary sectionTalkback on February 17, 2012.

The Power of Hiring Right: A Value Proposition that Most Recruiters Continue to Ignore

03 Thursday Jul 2014

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Sustainability isn’t the most favorable of topics with recruiters. But ask them about the sustainability of their hires and you’ll instantly hear a litany of complaints and frustrations.

Yesterday, Vault kicked off a series of seminars on this very important, if not the most popular, topic for the recruitment sector: The increasing role of CSR and sustainability in recruitment.

Sponsored by Madrid’s IE Business School, these seminars have been planned exclusively for recruiters and HR managers and align well with the School’s overarching commitment to sustainability (they have a master’s program dedicated to environmental change), social entrepreneurship, and CSR.

But what makes sense on college campuses doesn’t necessarily align with recruiters whose objective is much more linear: To hire the best talent based on a specific list of behavioral and technical skills, with the hope that they will stick around for at least a few years.

Retention? That’s an HR function.

This disconnect became the focus of my planning when I was approached by Vault to design the seminars. I came up with three distinct objectives:

  • Demonstrate how a growing consciousness about corporate social responsibility is changing expectations among prospective job candidates and employees;
  • Question whether recruitment teams are responding to this change in CSR awareness by modifying their outreach and strategy; and
  • Offer examples – and best practices – of how recruiters can best illustrate their company’s corporate citizenship before the candidate comes aboard.

In all my years at Vault (I left in July to start Singh Solutions, a research and advisory firm offering CSR communications and social media strategy services – and continue to write for CSRwire and Forbes), I have always put a premium on the efficacy of a responsible and innovative culture in attracting candidates. But when you bring in terms like CSR, sustainability, inclusion, things begin to get murky.

While no one can argue that a business’ corporate and social behavior is a POWERFUL tool in attracting talent, especially in the current recession, how do you convey as much in a job interview?

This is where the real disconnect then emerges, indicated amply by a series of interviews I conducted last year with four MBA candidates committed to pursuing work that aligned with their sense of corporate social responsibility: Boston University MBA Candidate Ashley Jablow, Geet Singh, Whit Tice and Larry Furman.

Jablow told me then:

“I have chosen to go to business school so that I can create change and be an ethical and responsible contributor to business.”

But who’s responding? Not a lot of companies, I found. As Tice put it:

“Without awareness, there is no sense of urgency.”

This lack of urgency became the underlying theme of session number one on Tuesday. Joined by PwC’s HR and Administrative Leader for Florida Kimberly Jones and Guillermo Montes, Managing Director for South US, Puerto Rico and the Caribbean region for IE Business School, I offered the audience an alternative view: A reality where recruiters are not only responsible for hiring the most skilled talent but also the best fit based on their values.

“Retention after all is half the battle. Getting the candidate in is hard but retention becomes equally challenging if we don’t invest in aligning the candidate’s personality to the company’s core values,” said Jones. For PwC, this has meant organizing initiatives like Project Belize and Project New Orleans, where summer interns get to participate in community building exercises, and the team hopes, get a real close look at the firm’s culture.

“The average age of a PwC employee is 26 years old. So demands and expectations are quite different from older generations,” she emphasized, adding that a brand that not only commits to CSR but also makes it a priority becomes an increasingly valuable ally in attracting candidates.

In a globalized economy where work can be outsourced at a click of a button and entrepreneurship is emerging as a serious alternative for many graduates, organizations have it tough, even if they don’t recognize it just yet. While recruiters might erroneously believe that the market is to their advantage, the fight for top talent remains fierce. This is where your organization’s culture, values, and social and environmental commitments can emerge as key differentiators for a generation that is demanding fairness, ethical behavior and responsibility from business.

While the debate was spirited and the conversation heated at times, it was clear that the panel had been well received. We ran over time with questions pouring in. Examples include the impact of globalization on recruitment, how companies are dealing with an increasingly age diverse candidate pool, and whether we should expect reformulation of job profiles and descriptions in coming years.

Suffice it to say, we together – the panel and the audience – shared something powerful this Tuesday: We experienced a crowd-sourced change in mentality. We made a commitment. Together. To bring back some of the equilibrium lost in recent years between business, society and the environment by focusing on a company’s most powerful assets: It’s human resources.

Are you ready to have a real conversation?

Originally written for and published on CSRwire’s Commentary section Talkback on September 29, 2011.

Ceres Investor Summit 2012: 5 Trends Not to Bet Against

03 Thursday Jul 2014

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Last week, Ceres and the United Nations came together to host the 2012 Investor Summit on Climate Risk & Energy Solutions in New York City. With several announcements marking the day—a record $260 billion was invested in clean energy in 2011—it was Bank of America Chairman Chad Holliday’s pre-lunch presentation that stood out for its aspirational message.

I had the opportunity to host Holliday last year for a keynote on responsible business practices. The occasion: The release of Carol Sanford‘s book The Responsible Business, for which Holliday provided an articulate Foreword.

This time around too, Holliday chose to focus on lessons learned from his years leading DuPont, which saw record growth, transition from a chemical company to a science-based products company, as well as the country’s first chief sustainability officer appointment.

“As you listen, make sure you’re not inadvertently betting against something,” he cautioned adding, “Whether you want to own it or not is merely situational. But listen.”

Here then are Holliday’s five things to not bet against:

1. Don’t Bet Against Breakthroughs

“Don’t bet against a major breakthrough or a series of breakthroughs that create clean, cheap energy.” Holliday followed this warning by a reminder that “the price of natural gas in the Middle East” used to be our prime concern.

“No one was talking about shale energy, tidal [energy] 10 years ago. Somehow we missed that,” he added. Holliday also alluded to the American Energy Innovation Council he set up when at DuPont that counts Bill Gates, Xerox CEO Ursula Burns, GE’s Jeff Immelt and others as members: “We
really felt that such a breakthrough was probable so don’t discount the power of innovation.”

2. Don’t Bet Against America

“Particularly American engineers and research universities,” he continued. “Thirty five of the 50 top research institutions worldwide are located in the U.S. Seventeen of the top 20 are in the U.S.,” he said

Bank of America Chairman Chad Holliday Admission rates in Science, Technology, Engineering and Mathematics (STEM) have been declining for years in the U.S., and several sectors are ramping up their community development and research dollars to invest in STEM initiatives and academic institutions. While it is true that graduates from Asian countries have increasingly filled STEM jobs—and have an incredible presence in Silicon Valley—in recent years, Holliday was quite right to point out that “it will require other countries to grow awfully fast to catch up with us.”

“What we see in the press is that China is overtaking us in engineering. In fact, there is no question that China is indeed leading us in the number of graduating engineers. But when it comes to quality and diversity—biotechnology, nanotechnology, quality control, systems engineering—we are hands down champions,” Holliday said.

3. Don’t Bet Against Sustainable Energy For All

“One of the three commitments of the United Nations General Secretary was to provide electricity to the 1.3 billion people globally who still don’t have access to electricity,” said Holliday. “Now let’s discuss the 1.3 billion-strong population of China: How productive would they be without access to electricity?”

His message: That’s opportunity to deliver value for business, investors and entrepreneurs.

4. Don’t Bet Against Dramatic Events Driving Dramatic Government Action

“One nuclear fallout after the tsunami that struck Japan was enough to compel Germany to take the decision to go completely nuclear-free for their energy supply,” he said.

Emphasizing that one must increasingly view business and investment in the context of their social and environmental setting, Holliday offered a glimpse into his role on Shell’s CR committee: “I regularly meet with NGO groups and investors to understand what they are thinking. I then coordinate with Shell’s corporate responsibility committee to visit sites to really check and see if they are doing what they commit to. Then it makes a difference,” he said, adding, “We cannot measure growth and success from afar because that’s just PR.”

5. Don’t Bet Against People in This Room

Putting the onus on the over 500 investors in attendance, Holliday said: “You’re here today because you think private money can make a difference in this sector. You’ve made a good decision.”

Indicating to his recent appointment as Bank of America’s chairman, he continued:

“I joined Bank of America in the time of a recession. I didn’t have much time to do any due diligence so I decided to find out what they were doing on sustainability. And I’m proud to say that I was impressed. They have already made an 18 percent deduction in greenhouse gases (GHG), made a $20 million commitment to loans for sustainable projects and nurture a working culture that prioritizes sustainability.”

Many other firms in the room could probably tell similar stories, he added, warning: “But don’t bet against each other.”

Emphasizing the need for public private partnerships, he concluded: “Working with the public sector and other stakeholders is going to be key in our goal of sustainable energy for all.” There too, he had the same warning: “Don’t bet against each other.”

Originally written for and published on CSRwire’s Commentary section Talkback on January 18, 2012.

2011: The Year Business Learned to Say Mea Culpa

02 Wednesday Jul 2014

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These were just some of the things that kept us busy in 2011. While some represent the changing marketplace, others are age-old struggles between activists, consumers, employees and corporations. Yet, they all represented the emergence of new forces at play in our corporate corridors.

Yes, 2011 represented despair for many – the jobseekers, the underemployed, the single parent, the shopper, the CEO, the trader – but with despair, as CSRwire’s CEO Joe Sibilia noted, comes hope, adaptability and often, solutions.

And it is at that stage that most of us converged in 2011.

Transparency: Is Business Ready?

Take, for example, the recent BSR conference held in San Francisco. My panel addressed a topic that is bound to get most of us shifting in our chairs: Sustainability in a Hyper-Transparent World. Ouch, right? Joined by executives from Oxfam, Intel and SourceMap, the conversation included several uncomfortable moments (I offered up Zappos as an example to the audience, citing that the company livestreams its all hands meeting in order to live its mission of “building open and honest communications.”) and featured several probabilities, suggestions, and potential solutions by a group that included lawyers, sustainability executives, CSR officers, reporters, strategists, entrepreneurs as well as nonprofit leaders.

“When you are increasingly naked, fitness if not optional.” – Macrowikinomics

That the panel attracted a full room of senior executives willing to discuss difficult issues like privacy, corporate governance and stakeholder responsibility is a start.

The C-Suite Headlines Sustainability

Till last year, while much was being written about CSR and sustainability, executives were largely absent from the dialogue. In 2011, this changed ever so subtly. Earlier in the year, Best Buy CEO Brian Dunn took the stage at one of the year’s most prolific conferences, the Boston College Center for Corporate Citizenship’s annual conference. He discussed the importance of employee wellbeing, organizational design, transparency (Kathleen Edmond was the first Chief Ethics Officer to start a blog on ethical issues in the workplace) and the importance of stakeholder engagement.

“The more you peel the onion, the more you realize there is to be done. You just need to be constantly excited about peeling the onion.” – Brian Dunn, CEO, Best Buy

At Net Impact, Nike’s Hannah Jones took the stage as did REI CEO Sally Jewell. BSR kept the momentum going by featuring Ofra Strauss, CEO of the Strauss Group, Autodesk CEO Carl Bass and Anheuser-Busch CEO Carlos Brito.

These chiefs weren’t exactly looking to gain brownie points. They were after all speaking to the choir in some respects and to an audience that for the most part, gets business and social responsibility. But what made each of them stand out was their honesty about the difficult problems facing us today – a first? – agreement on the role of business in adding to today’s social and environmental mess.

“In the last few years, business has lost tremendous trust in the marketplace. That we are GOOD now rests on us.” – Ofra Strauss, Chairperson and former CEO, The Strauss Group

Mea culpa, they all said. Followed by: Here’s how we are trying to change ways, rethink growth, repurpose missions and reengage stakeholders.

That’s a start.

Social Media Engagement: 140 Characters Rule

Despite all the naysayers of social media, there is no denying that for any organization that sells a product or service today, having a dedicated presence on Facebook and Twitter is a prerequisite. With engagement reaching never-seen-before proportions, even Chief Sustainability Officers are learning to communicate in 140 characters or less.

“We must see social problems as business opportunities.” – Carol Cone, EVP, Edelman

But several companies dipped their toes in active engagement by trying out new formulae: Best Buy released their annual CSR report by hosting a live webinar (that I moderated) with their Sustainability team and a parallel conversation on Twitter. As I quizzed them about the report, questions poured in from Twitter: What was Best Buy doing in the area of conflict minerals? What about human rights? Recycling? How about consumer education? And why the low diversity ratio of employees?

Squirm they did, admitting that the issues were complex they did, but answer they also did.

They weren’t the only ones though.

Timberland (that was acquired by VF earlier in the year) launched their new Communications portal, McDonald’s hosted a live chat on Twitter with VP of CSR Bob Langert, UPS held several chats during the holiday season from sustainable gifting to green packaging choices.

Communicating your sustainability story is an important cog in the wheel called trust and the choice to engage is no longer a valid option. How you choose to do so, however, will continue to differentiate you from your competitor.

Making Business Sense out of Sustainability

Several large organizations came forward in 2011 asking jobseekers and students applying for jobs in sustainability and CSR to understand how to relate their core competencies and knowledge to the issues facing us today, i.e., water depletion, carbon emissions, climate change, etc.

How can depleting levels of water relate to a professional services firm, for example, or a bank? Why must a software company invest in engaging and educating its supply chain?

Climate Corps: Creating Jobs & Savings

The Environmental Defense Fund’s Climate Corps program is one of very few initiatives that have managed to tie sustainability with business strategy and growth while creating jobs out of the process.

From placing seven MBA candidates as summer fellows in 2008, the program has quickly grown in popularity, placing 96 students at 78 companies in 2011. The fellows spend an entire summer working with their host companies on identifying energy efficiency solutions, implementing carbon management processes and helping diverse businesses embed environmental sustainability into their strategies.

The results: Millions in savings. While few get direct job offers from the Fellowship, most have had success finding jobs where their unique mix of experience, passion, and the ability to tie business strategy with sustainability, is appreciated and utilized in changing processes, setting standards and adapting organizations to a fast-changing reality of limited resources.

This is a start.

Organizational Design & Sustainability

Where does sustainability fit in your organization?

Everywhere, really, is the only correct answer, irrespective of where the chief sustainability officer sits. This, finally is getting addressed by what I consider a crucial component at any company: The HR and recruitment teams. In collaboration with IE Business School, I moderated seminars with recruiters, HR directors and organization design consultants on the value of CSR in candidate recruitment and retention.

We discussed the relationship between productivity, values, respect and growth. We heard from students who want to work for socially responsible companies and executives who are redirecting their organizations to instill a culture of ethics, responsibility, accountability and pride.

Mea culpa, most of them said. That’s a start.

Originally written for and published on CSRwire’s Commentary section Talkback on December 30, 2011.

Marks & Spencer’s Plan A: Five Years Later

02 Wednesday Jul 2014

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“We launched Plan A because there is no Plan B,” started Richard Gillies, Marks & Spencer’s Director of Plan A, CSR Sustainable Business during a panel on how to nudge consumers to buy more sustainable products at the recently concluded BSR Conference.

Marks & Spencer’s sustainability strategy, more popularly called Plan A, has been the topic of several discussions and numerous awards since it was launched in 2007, mostly for its innovative and expansive approach (over 180 commitments) but also for its honest declaration of a business’ shortcomings.

And Gillies attested to that: “We made some very public and very defined goals back in 2007.” As the retailer approaches the five-year anniversary of Plan A, what are some of the results we can expect?

For starters, Gillies offered the following:

  • Carbon footprint reduction of 26 percent
  • Reduction in energy use by 25 percent
  • All packaging now sourced from sustainable sources
  • Waste to landfill cut from 80 percent to zero

Where does the consumer fall into place with these achievements – and the ultimate goal of a zero environmental footprint? And what will it take for consumers to make decisions based on sustainability performance – or as someone in the audience put it: “How do we make sustainability sexy?”

“Consumers are not prepared to pay more or compromise in the name of sustainability. We have to learn to market goods that work well and are sustainable, instead of naively believing that they will sell simply because they are sustainable,” Gillies emphasized. The market isn’t there yet, he indicated.

Gillies also admitted Marks & Spencer, the UK’s largest clothing retailer and a significant marketer of food in Europe, was “only just beginning on our sustainability journey.” “We are only now exploring our business in the mainstream. We’re trying to get our own house in order before venturing outside,” he said alluding to the initial intent of Plan A to set a sustainability strategy internally that would impact every single product line of the business.

The outspoken yet charming CSR director, who has been with the food and clothing retailer since 1984, did not mince words when moderator Virginia Terry from BSR asked him how M&S was approaching the huge task of consumer education.

Indicating that businesses must understand the potential for consumer education and their role in it, he said, “For us, consumers have to be educated behind the scenes by only being offered sustainable choices. If the array of choices on a supermarket’s shelves are all sustainable, then we don’t have an option any more.” It is because we are competing with varying levels of products – and brands – in the market that have historically put a premium price on sustainability, that consumers invariably pick the cheaper product, he added.

The next step for Marks & Spencer?

“Consumer engagement,” offered Gillies. “For example, we have been incentivizing customers to give back to Oxfam. Every time they donate used clothing, etc. to Oxfam, they receive a voucher to be used at our stores. In three years, we have helped Oxfam generate an additional $7 million in revenue because of this program.”

This, in turn, promotes customer loyalty and brings M&S’s recycling commitment to the forefront of consumer action.

As for employee participation in sustainability, there is no question in Gillies’ mind that for Plan A to be successfully integrated, a company’s internal audience must be deeply commitment and passionate about the work. “Plan A has taken a life of its own and employee engagement has been an integral aspect of this. Our employees see the benefit of what Plan A offers for themselves and their families’ lifestyles and sustenance,” he said.

Because employee participation has been incredibly high, sustainability at Marks & Spencer continues to be a journey with several discoveries along the way. For example, the carbon-free bra launched earlier this year or their re-spun coats. Gillies explained: “We take waste wool and re-spin it into coat fabric. Turns out, this can be produced in Europe for a lower cost and much lesser environmental footprint than in one of our factories in Asia.”

As for the bra, it was part of a well-strategized plan to showcase an energy-efficient factory in Sri Lanka, which is powered partially by solar and hydro energy, and one of the first sites to test its eco-factory concept. As Marc Gunther wrote earlier this year, “To offset the CO2 generated by the bra’s manufacturing and shipping, M&S is planting 6,000 trees in Sri Lanka, some of which are lime and mango trees intended to generate income for farmers.”

Gillies offered some context: “The workers in Sri Lanka weren’t doing a drive to benefit the company. They were doing it because they saw the benefits of the program for their community, their families.”

A well thought out sustainability strategy ensures the business is doing more good instead of less bad. For Gillies, this means “inspiring consumers to get to a new place without telling them that they have to sacrifice along the way.”

“Business has to reset the values of what is quality, premium and sustainable. We have to look at our products and systems and rethink how consumers evaluate value,” he added.

It’s a tough task and enough to keep the best of intentions under cover for fear of failure or the immensity of scale required. But even for those, Gillies had a word of advice: “Business cannot be paralyzed by the scale of what needs to be done. This is very much a journey. We just need to stay focused on the greater good for our planet.”

Originally written for and published on CSRwire’s Commentary section Talkback on November 8, 2011.

Aside

Sustainability is a Team Sport…And a Business Enabler

02 Wednesday Jul 2014

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  • 118 stores.
  • $1.7 billion in sales in 2010.
  • Over 10,000 employees.
  • One of Fortune’s “100 Best Places to Work For” since 1998.

That’s the clout enjoyed by Recreation Equipment Inc. (REI) today, a national cooperative and one of the country’s largest outdoor apparel and gear manufacturers founded by a group of conscious mountaineers in 1938.

At last week’s Net Impact conference, REI CEO and President Sally Jewell took the stage to discuss how her company was faring amid Amazon’s recent expansion, whether a cooperative should be a viable option every entrepreneur should consider, and how sustainability is a team sport – and not a niche market anymore.

The Amazon Disadvantage…

Calling Amazon a “tough competitor” for brick and mortar stores, Jewell, who is a former commercial banker, took umbrage with Amazon’s policy of no taxation alleging that this discouraged new jobs. “Our business is doing well. Fair competition is always good, but unfair competition isn’t. By not charging taxes, Amazon is taking away much-needed state revenue” and sales from REI stores.

“Not being able to employ people is frustrating,” she added, emphasizing that while REI was doing well with stores having grown every year since 2008, hiring was definitely slower than the CEO would prefer.

…And The Sustainability Advantage

With sustainability making inroads into American consciousness at a very slow rate, does the environmental tag hurt REI?

“Sustainability is no longer as niche as some might think. The new generations really care about the environment and their communities,” Jewell emphasized. “The average age of our store employee is 32 years. They really care about the products and take pride in our commitment to the planet. This is what got us to No. 9 on Fortune’s Best Places to Work for last year,” she added.

In fact, while REI stores have steadily grown in number since 2008, she added, their footprint has remained lower than 2008 levels. The company has also doubled the number of stores that are using on site energy generation, Jewell informed a packed room.

Cooperative: The Right “C” for Entrepreneurs?

REI is one of few cooperatives in the country that has successfully provided its members with an economic model that is lucrative and works over the long-term. “There is no mission without margin. You have to run a healthy business to be sustainable. While we don’t have investors to worry about, we have a member community,” Jewell informed, warning that, “The founders [of REI] sacrificed a lot to protect the cooperative structure. Their family home was a distribution facility for 22 years. Their daughter was packaging stuff since the age of 5 years.”

The result?

“85 percent of our sales are from our members who get a yearly dividend. So the structure is successful but hard,” she said.

Responsible Capitalism: More Investment Options

Jewell also offered a new face of investment options, saying the market desperately needed to step away from thinking in the short term. “We need to suggest more robust federal regulations that put in a longer-term requirement from companies instead of a quarter or even a year. This change alone can transform the way we think, hire and help ensure many more businesses are successful,” she appealed.

While REI is certainly known for its innovative product line, environmentally- and socially-conscious supply chain, it has in no way perfected the dilemma of margins vs. fewer resources. How do we get away from random acts of kindness to systemic change? “It’s hard to get incentives [internally and externally] exactly right. Our employees are pulling the company forward,” she admitted, adding that, “Sustainability is a team sport that has the potential to create demand for recycling and working itself up the supply chain.”

The Power of Education

Since the conference attracts a majority of MBA students and recent graduates from the exemplary Net Impact chapters, interviewer Marc Gunther asked in closing: How can these students best help companies like REI?

“We need people who can make business sense out of sustainability. Help other companies see the benefit. Whatever we do for sustainability has to be good for business,” she pointed out. “This is what students with your experience, passion and understanding can help other businesses comprehend and implement,” the 54-year-old chief added.

The Makings of a CSR Program: In Conversation with Avon, LinkedIn & Jones Lang LaSalle

02 Wednesday Jul 2014

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That was the focus of one of the panels at Net Impact 2011 featuring Avon’s VP of Sustainability and Corporate Responsibility, Tod Arbogast; LinkedIn’s Head of Employment, Branding and Community, Meg Garlinghouse; and Jones Lang LaSalle’s SVP of Sustainability Strategy, Michael Jordan.

Representing companies that are often called out for their out of the box thinking on social responsibility and sustainability, the speakers discussed a range of topics including the always debatable definition of corporate social responsiblity, measuring employee engagement as well as the skill sets that go into the makings of a CSR director.

Main highlights:

CSR: Burden or Boon?

“CSR should die as a term. CSR departments tend to take away from possible impact. Just like ‘global’ is part of everything we do at LinkedIn, so is CSR,” Garlinghouse emphasized, noting, “Employee engagement is key for CSR, not separate departments.”

Jordan picked up where Garlinghouse left off adding that businesses must leverage engaged employees and identify champions early on for successful CSR programs.

“CSR has a direct tie-in with our business. After you’ve built the business case and identified regional champions, work together on identifying and building in efficiencies,” he advised.

“Build friendships, be seen as pragmatic and capture early wins. Then leverage those to go further and faster,” Arbogast said.

Measuring Employee Engagement

But how do you measure the efficacy of employee engagement?

A survey I conducted a few months ago with Smartbrief on Sustainability asked whether companies were measuring employee engagement on CSR. With over 70 percent of respondents saying they did not measure employee engagement, how were these panelists identifying wins and scale?

Once again, there was a healthy difference of opinion across the panel. While Garlinghouse emphasized company mission, the other two focused on operational procedures and policies.

“We recruit on the notion of social impact. These conversations happen during the interview process,” Garlinghouse alluded, noting LinkedIn’s entire modus operandi is based on “creating economic opportunities.” LinkedIn also offers employees the opportunity to do whatever they feel passionate about one Friday a month. “They have to come to work but they can pursue whatever they are interested in,” she said.

“For us, measuring the progress of your platform from awareness to implementation to operational strategy has always been key,” added Jordan.

Defining CSR With Strong Stakeholders

Responding to an audience question about resourcing for CSR initiatives, Jordan emphasized that most of Jones Lang LaSalle’s sustainability activities have been client-driven. “There is a clear business case because our clients are demanding sustainability strategies,” he said.

For Garlinghouse, employees have been the most forthcoming about corporate social responsibility initiatives. “Our CEO is very involved. Also, our employees are really committed to our company mission,” she said.

Skill Sets for a CSR Officer

Arbogast, who joined Avon in late 2009 after successfully leading Dell’s Giving program for a number of years, is a well-sought after speaker at the Net Impact conference each year. This year too, he was asked what aspiring professionals could do to become effective CSR officers. He laid out three crucial skills sets:

  1. People’s Person: Know how to communicate with people from all kinds of backgrounds and perspectives.
  2. Conflict Resolution: You must be a skilled mediator. Know that business cases will vary from group to group and you must be willing and diplomatic enough to finesse the tension lines and bring about resolution.
  3. Business Pragmatism: You must be a realist and know the business inside out. For CSR and sustainability programs to be effective, you need to understand what drives decisions and action.

Originally written for and published on CSRwire’s Commentary section Talkback on November 9, 2011.

CSRwire In Conversation with BCLC: The 2012 CSR Outlook

10 Tuesday Jan 2012

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Join CSRwire’s Editorial Director Aman Singh in conversation with Stephen Jordan, Executive Director of the U.S. Chamber Business Civic Leadership Center and a group of MBA graduates virtually for an intimate conversation about what happened in corporate social responsibility (CSR) in 2011 and what the field has in store for 2012.

When: Friday, January 13, 2012; 9:00am EST

Where: Livestream & Twitter

Register for the FREE live stream and join the tweetchat at #BCLConCSR!

The 2012 CSR Outlook is the first in a FREE six-part forum series being conducted by the Center. The U.S. Chamber BCLC’s Conversations with Stephen series is produced and moderated by founder and executive director Stephen Jordan. Guests engage in thoughtful, solution-oriented discussions and debates about the CSR field. The six-part 2012 series is offered at no charge as part of BCLC’s commitment to share knowledge and best practices with current and upcoming CSR practitioners.

We look forward to hearing from all of you @AmanSinghCSR, @CSRwire and #CSRwire or #BCLConCSR!

Related:
2011: The Year Business Learned to Say Mea Culpa

2011 in review @ Singh on CSR: 5 Months, 31 Blog Posts, 9,500 Visits

08 Sunday Jan 2012

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The WordPress.com stats helper monkeys prepared a 2011 annual report for this blog.

Here’s an excerpt:

The concert hall at the Sydney Opera House holds 2,700 people. This blog was viewed about 9,500 times in 2011. If it were a concert at Sydney Opera House, it would take about 4 sold-out performances for that many people to see it.

While I won’t bore you with the stats, here are the top three winners of 2011:

  1. Net Impact and BSR 2011: 7 Days, 2 Conferences, 5 Trends in CSR & Sustainability
  2. Does Expending Resources on CSR and Sustainability Destroy Economic Value?
  3. CSR and Sustainability in Mainstream Media: Citizen Journalism Or Simply Shared Value?

Thank you to all of you for a tremendous year! I value your support, trust, readership, comments, courage and enthusiasm to say, do and compel others toward the right action.

Here’s to expanding our “small world” of CSR and sustainability slowly but surely, one person at a time in 2012!

– Aman