Strategic CSR - Davos

In general, I find that content generated at Davos should be taken with a handful of skepticism – there is a lot of virtue signaling going on, along with the need to be seen in the right place at the right time. The article in the url below, suggesting that the leaders of the world are now suddenly serious about climate change, appears to be more of the same:

"Instead of just responding to the business effects of climate change, leaders at this year's World Economic Forum are discussing creating a proactive positive impact."

Apparently, the key to this sudden realization of the need to act is regeneration, "rethinking and reinventing everything from business models to supply chains, as opposed to tweaking around the edges to mitigate, instead of prevent, risk." The idea that "regeneration" is just now occurring to the global discussion on climate change is laughable, since it has been around for many years. But, beyond the superficiality of the article, there are two points that stood out to me.

First, is the Pew opinion poll showing that individual Americans are more than ready to blame others (corporations, in particular) for climate change, but only 27% see the solution in individual behavior. They don't understand that the two things are the same, since we are all stakeholders and companies merely reflect the collective interests of all stakeholders, as they interact within the boundaries of what we call the corporation.

Second, I have always disliked the concept of "resilience." It is dangerous because it assumes we need to take the status quo as a given, and work from there. While there is obviously an empirical reality to this, accepting resilience without question avoids diagnosing the core problem and identifying why we are in the mess we are in. And, if we do not understand the cause of the problem, we are highly unlikely to solve it. Linking what Patagonia has done with regeneration to the 'excuse' of resilience is a disservice to the pioneering innovation of Yvon Chouinard (and, again, only ensures we continue to bury our heads in the sand):

"Of course, even getting companies to the stage of resilience – never mind regeneration – is a challenge. … Still, the appetite for change is there – and seems to only be growing. That's not least of all, say some leaders, because there's no good alternative."

Key takeaway – expect nothing to change.

Take care

David

David Chandler

Strategic Corporate Social Responsibility: Sustainable Value Creation (6e)

© Sage Publications, 2023

Instructor Teaching and Student Study Site: https://study.sagepub.com/chandler6e 

Strategic CSR Simulation: http://www.strategiccsrsim.com/

The library of CSR Newsletters are archived at: https://strategiccsr-sage.blogspot.com/

Davos 2024: The future of sustainable business is 'regeneration'

By Amanda Ruggeri

January 19, 2024

BBC

https://www.bbc.com/worklife/article/20240119-davos-2024-the-future-of-sustainable-business-is-regeneration

 

Strategic CSR - Zoom

As we know, firms are struggling with bringing their employees back to work in the office, full-time. It is obvious why employees might not want to come back (I always heard that it is not 'working in the office' that is the problem, but the 'commute to the office' they do not like), but what are the consequences?

For the organization, I have to believe at some level there is a reduction in productivity. I know there were reports, early in the lockdown, about how the productivity of teams actually increased when they went remote, but my sense is that this is research based on teams that formed their culture in-person, prior to the pandemic, and then moved online (thus reducing the inefficiency of commutes). Now that organizations are starting to form teams from scratch remotely, I have to think that is a more challenging task.

For the individuals, though, I also always thought that being away from the office would likely exclude them from much of the serendipity that characterizes human interaction and career success. The article in the url below confirms this thought by finding that people who work remotely full-time (5 days a week) are less likely to receive promotions and mentoring than those that come into the office, for at least for part of the week:

"For a while, remote workers seemed to have it all: elastic waistbands, no commute, better concentration and the ability to pop in laundry loads between calls. New data, though, shows fully remote workers are falling behind in one of the most-prized and important aspects of a career: getting promoted."

Specifically:

"Over the past year, remote workers were promoted 31% less frequently than people who worked in an office, either full-time or on a hybrid basis, according to an analysis of two million white-collar workers by employment-data provider Live Data Technologies. Remote workers also get less mentorship, a gap that's especially pronounced for women, research shows. Of employees working full time in an office or on a hybrid basis, 5.6% received promotions at their organization in 2023, according to Live Data Technologies, versus 3.9% of those who worked remotely."

And, although the article doesn't cover this directly, it is also likely true that the more someone is in person, the more of these 'benefits' they will likely experience. In terms of fully remote work, however, I was surprised by how prevalent that option appears to be:

"While many workplaces have adopted hybrid policies or reverted to a fully in-person approach, nearly 20% of all employees with college degrees or higher still work on a fully remote basis, according to December data from the Census Bureau and the Bureau of Labor Statistics."

What is ironic is that the same survey reports that remote workers feel more engaged and less burned-out than their in-person colleagues. But, this is either not translating into productivity (perceived or otherwise) or is something executives feel less concerned about, since they are increasingly become more assertive (and honest) in the reality of the workplace as they see it:

"Nearly 90% of chief executives who were surveyed said that when it comes to favorable assignments, raises or promotions, they are more likely to reward employees who make an effort to come to the office."

Perhaps unsurprisingly, there is a generational element to this discussion, as one of the accompanying charts in the article suggests: 

How to manage this issue is clearly going to be something that companies will wrestle with, for a while. Given this, the amount of apparent consensus there is on longer term projections is surprising:

"In the online survey of 1,325 CEOs of large companies in 11 countries, conducted last year by professional-services firm KPMG, almost two-thirds of respondents said they expect most employees will be working in offices full-time in another three years."

Take care

David

David Chandler

Strategic Corporate Social Responsibility: Sustainable Value Creation (6e)

© Sage Publications, 2023

Instructor Teaching and Student Study Site: https://study.sagepub.com/chandler6e 

Strategic CSR Simulation: http://www.strategiccsrsim.com/

The library of CSR Newsletters are archived at: https://strategiccsr-sage.blogspot.com/

Remote Workers Are Losing Out on Promotions

By Te-Ping Chen

January 13, 2024

The Wall Street Journal

Late Edition – Final

B1, B5

https://www.wsj.com/lifestyle/careers/remote-workers-are-losing-out-on-promotions-8219ec63

 

Strategic CSR - Diamonds

The article in the url below suggests that the producers of lab-grown diamonds are overcoming one of the main criticisms levelled at their products – that they consume large amounts of energy to manufacturer, so are not nearly as green as they are marketed:

"A decade ago, they were relatively unknown in the jewelry industry, but now make up a fifth of diamond sales by value. … Made largely in China and India, lab-grown diamonds are produced using heat and pressure but without any mining. The lab-growing process, however, does require huge amounts of energy, so stones' green credentials depend on where the power comes from."

Having solved the issue of having to dig these things out of the ground (often under appalling conditions), the next step was to remove the emissions associated with the vast amounts of energy required to produce lab-grown diamonds:

"Danish jeweler Pandora's diamonds are made using renewable energy and set in recycled gold and silver rings. It said a cut and polished one carat diamond has a carbon footprint of roughly 9.2 kilograms, less than a tenth of the carbon emissions for a natural diamond—106.9kg CO2 based on research from the Natural Diamond Council."

Similarly:

"In 2019, Laura Lambert launched Fenton, an ethical jewelry brand based in London. Three years later the former retail executive started selling lab-grown diamonds produced in a solar-powered factory in Gujarat, India. … She says her own market research indicates currently only about 5% of all lab-grown diamonds are made using renewable energy, but it has been something her customers have been asking for."

As a result of the growing market share of lab-grown diamonds:

"Miners' revenues have dropped sharply. De Beers, the world's largest diamond miner, sells its rough diamonds in ten selling cycles during the year. The volume and quality can vary but is a good barometer of appetite for natural diamonds, as well as prices. In the last cycle of 2023, De Beers sold $130 million worth of diamonds compared with $417 million a year prior."

In spite of this progress, lobbyists for real diamonds are still able to question the sustainability of lab-grown diamonds (see Strategic CSR – Diamonds):

"'Consumers are being told that lab-grown diamonds are sustainable and that couldn't be further from the truth,' says David Kellie, CEO of the Natural Diamond Council, a diamond mining trade group. The group began airing videos on social media in April as part of what it calls a 'myth-busting' campaign. According to a new report by the group, more than 60% of lab-grown diamonds are made in China and India, where climate-polluting coal is the major power source. The report also touts efforts by the mining industry to cut carbon emissions and boost the economies of countries with major diamond mines such as Botswana and Namibia."

Take care

David

David Chandler

Strategic Corporate Social Responsibility: Sustainable Value Creation (6e)

© Sage Publications, 2023

Instructor Teaching and Student Study Site: https://study.sagepub.com/chandler6e 

Strategic CSR Simulation: http://www.strategiccsrsim.com/

The library of CSR Newsletters are archived at: https://strategiccsr-sage.blogspot.com/

Lab-Grown Diamonds Go Green

By Yusuf Khan

January 11, 2024

The Wall Street Journal

Late Edition – Final

B6

https://www.wsj.com/articles/diamonds-made-with-solar-power-are-offering-fiancees-ethical-fashion-475d1c7b

 

Strategic CSR - Welcome back!

Welcome back to the Strategic CSR Newsletter! The first newsletter of the Spring semester is below. As always, your comments and ideas are welcome.

In the aftermath of the consumption and materialistic fueled holiday season, the video in the url below reveals the extent of waste that is embedded in the growing economy of online retail:

https://youtu.be/66qOop6J8Q8

The video features Amazon, but really applies to all online retail and fast fashion (e.g., see Strategic CSR – Fast fashion and Strategic CSR – Casper). While the video clearly identifies a problem, however, it also suggests Amazon is fully aware of the problem and, encouragingly, is trying to do something about it.

Have a great semester.

David

David Chandler

Strategic Corporate Social Responsibility: Sustainable Value Creation (6e)

© Sage Publications, 2023

Instructor Teaching and Student Study Site: https://study.sagepub.com/chandler6e 

Strategic CSR Simulation: http://www.strategiccsrsim.com/

The library of CSR Newsletters are archived at: https://strategiccsr-sage.blogspot.com/

Where Online Returns Really End Up and What Amazon Is Doing About It

January 27, 2022

CNBC

https://www.youtube.com/watch?v=66qOop6J8Q8