Strategic CSR - 40-hour workweek

The article in the url below charts the development of the 40-hour workweek in the U.S. As the author argues, while the story of its evolution is interesting, it is more interesting that something we take for granted today is a relatively recent innovation. In spite of some industry-specific legislation, along with experiments by companies such as Ford, the norm for workers in the early 20th Century remained long hours and a six-day week -- a situation that only really changed with The Great Depression:

"Amid mass unemployment, a bipartisan consensus developed in Washington around work sharing: more people working shorter hours. In 1938, President Franklin D. Roosevelt signed the Fair Labor Standards Act into law. It set a minimum wage of 25 cents an hour and a standard workweek of 44 hours initially, reduced to 40 hours by 1940, with anybody who worked longer hours being entitled to time-and-a-half overtime pay."

This idea spread after the end of WWII:

"In postwar America, the 40-hour week became the norm for millions of workers, with overtime pay acting as a disincentive for employers to require longer hours."

Having won this progress, the author argues that the U.S. worker is now voluntarily surrendering it. Starting in the 1970s, the average workweek has increased in length, and all in the name of individual freedom:

"In the new millennium, the U.S. workweek varies widely for different kinds of workers. Email and the internet, laptops and smartphones, and tools like Zoom and Slack have liberated many office workers from the physical office, but at the cost of an increasingly porous boundary between work and home life."

In other words, you can work whenever you like, as long as it is most of the time:

"A 2025 Gallup poll found that 40% of full-time employees work 40 hours in a typical week, while 38% work from 41 to 59 and 15% work more than 60 hours a week. Only 8% work less than 40 hours."

But, as some begin to question whether the level of productivity is correlated positively with the quantity of hours worked, a few companies are experimenting with a 4-day week (see Strategic CSR — 4-day workweek and Strategic CSR — Microsoft). The research on this so far suggests there are real benefits for organizations:

"Employers participating in the trial saw improvements in employee retention, with resignations falling from 1.8 a month before implementing the four-day week to 1.4 a month afterward. Sick and personal days declined from one day per employee a month to 0.8."

There are also benefits for workers:

"For employees, meanwhile, the main benefits were in well-being and work-life balance. … For example, 69% of participants experienced reduced burnout, nearly 40% were less stressed and anxious, 42% reported better mental health, and 37% percent saw improvements in physical health."

 

The latest twist in the story is the evolution of A.I, of course, which promises to reduce the amount of total work needed. But, it is unclear to the author if that promise will ever be realized, and whether whatever the new norm becomes will be beneficial for workers:

“… it’s not a foregone conclusion that the productivity gains from AI will usher in the age of 15-hour workweeks and abundant leisure time predicted somewhat prematurely by John Maynard Keynes back in 1930."

Take care

David

 

David Chandler

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

© Sage Publications, 2023

 

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How Did We Get A 40-hour Workweek?

By Andrew Blackman

December 1, 2025

The Wall Street Journal Report: The Business of Work

Late Edition – Final

R17

https://www.wsj.com/lifestyle/workplace/labor-activism-40-hour-work-week-edcd8305

Strategic CSR - A.I.

The article in the url below by Sal Kahn (the founder/CEO of the education company, Khan Academy) is interesting because it presents a problem -- an impending surplus of workers:

 

"On my way to meet a friend in Silicon Valley a few weeks ago, I passed three self-driving Waymos gliding through traffic. These cars are everywhere now, moving as if they've been part of the landscape forever. … My friend told me that a huge call center in the Philippines — a center his venture capital firm had invested in — had just deployed A.I. agents capable of replacing 80 percent of its work force. … I believe artificial intelligence will displace workers at a scale many people don't yet realize. … In the coming years, A.I. and robotics are likely to significantly reduce the level of human labor needed in occupations as diverse as warehouse work and software engineering. We've seen economic displacement caused by globalization and immigration lead to frustration and division. The next wave, fueled by automation, will hit faster and cut deeper."

 

The author then presents a potential solution to that problem -- an impending deficit of workers:

 

"The U.S. Bureau of Labor Statistics projects nearly two million open health care jobs each year for the next decade. UNESCO estimates a global shortage of 44 million teachers by 2030. The construction industry needs more than 500,000 additional workers annually just to meet demand, and openings for electricians and plumbers are growing faster than average. The hospitality and elder care industries — work rooted in empathy and presence — are expanding, not shrinking. There is no shortage of meaningful work — only a shortage of pathways into it."

 

The disconnect between the two scenarios (the problem and the solution) seems gaping. Or perhaps, as the author suggests (although he is clearly not a disinterested party), it is our lack of awareness of the gap that is the issue, along with our unwillingness to invest in the education and retraining required to fill it.

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  

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A.I. Will Displace Workers at a Scale Many Don't Realize

By Sal Kahn

December 28, 2025

The New York Times

Late Edition – Final

SR4

https://www.nytimes.com/2025/12/27/opinion/artificial-intelligence-jobs-worker-training.html

Strategic CSR - Privacy

The article in the url below contains interesting research about the ability of A.I. to read a person's personality from their face:

"Personality assessments are an accepted part of recruitment processes. … Yet previous research suggests that personality types can be encoded in facial features, and that artificial intelligence (AI) can spot them."

 

Although "it's not obvious what the AI is seeing," if this is true, then it raises the interesting question of whether it should be allowed:

"If your face could tell a prospective employer something [about your probable performance at work], without discriminating on grounds of protected characteristics, then firms would have a strong incentive to analyze it."

The article makes a compelling case that subjective assessments made on physical characteristics already happen naturally:

"There is a height premium in hiring, for example, which makes it more likely that a taller person will get chosen than a shorter one. Some might argue that face-based analysis is more meritocratic than processes which reward, say, educational attainment. [Researchers] are now looking at whether AI facial analysis can give lenders useful clues about a person's propensity to repay loans. For people without access to credit, that could be a blessing."

 

There are also plenty of causes for concern that revolve around perceptions of fairness and the ability of someone to overcome any natural 'disadvantages' to become a productive colleague. There is also the concern that "aggregate patterns do not tell you how an individual will perform." Nevertheless, the article provides another glimpse into what is coming our way, whether we like it or not.

 

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  

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Face off

By Bartleby

November 8, 2025

The Economist

Late Edition – Final

64

https://www.economist.com/business/2025/11/06/should-facial-analysis-help-determine-whom-companies-hire

Strategic CSR - Good intentions + bad outcomes

Appreciating the prevalence of the unintended consequences of good intentions is central to the counterintuitive nature of strategic CSR. Along these lines, the article in the url below made me laugh and rings true, in the very human sense that we often can't get out of our own way. Specifically, the article deals with promotions in companies:

"Many congratulations on your promotion. It's probably downhill from here. This deflating prognosis is not true of every job, person or organisation. But too often, a promotion is a precursor to problems."

Specifically, the article cited academic research that was designed to test the Peter principle:

"… developed by Laurence J. Peter, a 'hierarchologist'—that people are promoted to the level at which they are no longer competent."

In other words, people are promoted based on past performance (not future potential), and stop being promoted once they reach a level in a job they can no longer do very well. Taken to the extreme, this means that most people who are 'stuck' in a position at work are probably there because they are no longer performing at a high level, which might explain why so many organizations are dysfunctional:

"The [research] examined data on sales transactions and job moves across a panel of more than 50,000 workers at 214 America firms between 2005 and 2011. It showed that being a good salesperson increased the probability of being promoted into a management position, but was a negative predictor of managerial quality. In other words, the performance of a sales hotshot's new subordinates tended to go backwards."

These results reminded me a little of academia, and mirror prior research using a simulation to theorize the same principle:

"An organization where promotion depends on competence in a previous role and where the new job requires different skills will indeed end up elevating people to a position they do badly. Random promotions would be a better system, the researchers concluded." 

 

The article concludes that, where a promotion requires skills different to the dominant skills in a person's current role, then performance should not be used to assess whether the promotion is awarded.

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  

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The problem with promotions

By Bartleby

January 10, 2026

The Economist

Late Edition – Final

55

https://www.economist.com/business/2026/01/08/the-problem-with-promotions

Strategic CSR - Amazon

I have written before about Amazon's plans to replace employees with robots in its warehouses (see Strategic CSR – Amazon). What I find illuminating about the article in the url below is that it quantifies the economic impact of the plan, very specifically, and in two ways. First, in terms of the number of employees the robots will ensure Amazon does not need to hire:

"Amazon is reportedly leaning into automation plans that will enable the company to avoid hiring more than half a million US workers. … Amazon is hoping its robots can replace more than 600,000 jobs it would otherwise have to hire in the United States by 2033, despite estimating it'll sell about twice as many products over the period."

Second, it quantifies the impact on Amazon's cost to deliver each package:

"Documents reportedly show that Amazon's robotics team is working towards automating 75 percent of the company's entire operations, and expects to ditch 160,000 US roles that would otherwise be needed by 2027. This would save about 30 cents on every item that Amazon warehouses and delivers to customers, with automation efforts expected to save the company $12.6 billion from 2025 to 2027."

The drive for efficiency at Amazon is fascinating, and no doubt creates a lot of value for society. Equally, I wonder what Amazon's customers would say if we asked whether they would be willing to pay an additional 30 cents for each package delivered in order to secure 600,000 jobs.

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  

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Amazon hopes to replace 600,000 US workers with robots, according to leaked documents

By Jess Weatherbed

October 21, 2025

The Verge

https://www.theverge.com/news/803257/amazon-robotics-automation-replace-600000-human-jobs

 

Strategic CSR - Walmart

Here are a few charts from the article in the url below about Walmart's turnaround that I find encouraging. Collectively, I believe (hope?) that the charts tell a story of an emerging stakeholder perspective and, in particular, the value of an organization treating its employees as its primary stakeholder. First is Walmart's decision, made back in 2009 and in response to extensive external pressure, to raise the hourly pay of its employees – a decision that played out gradually, over time:

Second is the growth in Walmart's annual sales, with a more motivated workforce, covering roughly the same period:

 

Finally, lagging behind, is the company's share price. Initially, the stock market responded negatively to Walmart's announcement of its intention to increase employee pay. This changed when the value of the company treating its employees well became apparent:

 

Much of the data in the article is taken from an upcoming HBS case that focuses on the decision by Walmart to improve the working conditions of its employees as driving its subsequent success. Perhaps even HBS has now come around to the benefits of a stakeholder perspective (and the value of an organization treating its employees as its primary stakeholder), after so many damaging decades of promoting shareholder primacy.

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  

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A Decade-Old Flop Is Now Held Up As Walmart's Shining Success

By Sarah Nassauer

October 18-19, 2025

The Wall Street Journal

Late Edition – Final

B1, B11

https://www.wsj.com/business/retail/walmart-employee-treatment-success-f96761f4

Strategic CSR - Microsoft

So, what should Microsoft do when it provides a platform for its employees to communicate openly and then doesn't like what they talk about? Well, clearly, they should shut down the platform, as detailed in the article in the url below:

"The company has shut down an internal communication channel used by employees to question senior executives and discuss hot-button societal issues, according to an internal post reviewed by The Wall Street Journal. It has also restricted employees' ability to enter certain buildings on its Redmond, Wash., campus, according to people familiar with the matter."

While the company was reacting to behavior by employees, not only speech, it seems like curtailing speech was the company's response to curtailing the behavior it found objectionable. And, while they are at, how about back-tracking on promises made during Covid about working practices and company culture?

"On Tuesday, the company also told employees they will need to report to an office three days a week."

Sounds like a good week at the office.

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  

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Microsoft Curbs Staff After Office Sit-In

By Sebastian Herrera

September 10, 2025

The Wall Street Journal

Late Edition – Final

B1, B4

https://www.wsj.com/tech/microsoft-cracks-down-on-work-speech-limits-remote-work-df9d469e

 

Strategic CSR - Amazon

The article in the url below indicates how far Amazon has gone to integrate robots into its warehouse operations (very different, and far more advanced in terms of developing a business case, than A.I.): 

"The automation of Amazon.com facilities is approaching a new milestone: There will soon be as many robots as humans."

The article also reminded me of how big Amazon is:

"The e-commerce giant, which has spent years automating tasks previously done by humans in its facilities, has deployed more than one million robots in those workplaces, Amazon said. That is the most it has ever had and near the count of human workers at the facilities."

The impact of robotics on the overall number of employees, as well as the overall efficiency of those workers, is illustrated in the two charts accompanying the article:

 

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  

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Amazon Nears Robotics Milestone

By Sebastian Herrera

July 1, 2025

The Wall Street Journal

Late Edition – Final

B1, B4

https://www.wsj.com/tech/amazon-warehouse-robots-automation-942b814f

 

Strategic CSR - 4-day workweek

The article in the url below extolls the demonstrated value of the 4-day workweek – conclusions that have been derived after extensive study:

"In 2022, [the author] signed on as lead researcher at 4DWG, an international NGO that aims to make a four-day workweek the new standard. Since then, we have studied 245 businesses and nonprofits as they adopted four-day-week pilot programs for more than 8,700 workers, in countries including the U.S., U.K., Brazil, Portugal, Germany and South Africa."

First, for individual employees, who work 20% less but receive no reduction in pay:

"69% experience reduced burnout, 42% have better mental health, and 37% see improvements in physical health. Thirteen percent of participants say they wouldn't go back to a five-day schedule for any amount of money."

But, also, for the hiring organization:

"[The researchers asked participating companies] to rate the success of the trials, and they give consistently high scores—an average of 8.2 out of 10. After a year, only 20 companies, less than 10% of the total, decided to discontinue their four-day week. We also saw excellent results in performance metrics such as revenue, absenteeism and resignations."

The prime example for the potential in a 4-day workweek is apparently Microsoft, Japan (see also Strategic CSR – Microsoft):

"In 2019, it instituted a temporary four-day week, closing the office for five consecutive Fridays in August. To make it work, the company mandated that no meetings could go longer than 30 minutes. It also told managers to avoid unnecessary meetings and use face-to-face chats instead. Its widely reported results were striking: Productivity increased by 40% over the trial period, while time off fell by 25%."

Although for different reasons, the results are apparently replicated across all kinds of companies (see Strategic CSR – Unilever) and situations (see Strategic CSR – Productivity):

"Most of the companies in our trials are white-collar organizations, where eliminating meetings and other distractions goes a long way toward making a four-day week feasible. In industries such as manufacturing and construction, time savings are more likely to be found by making the flow of work more efficient through process engineering."

Personally, I do not have any desire to work less, but I do like the sound of enforced 30-minute meetings. Perhaps I'll give that a try, especially on Zoom.

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  

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Of Course Workers Want a Four-Day Week. Companies Should Too.

By Juliet B. Schor

May 31 – June 1, 2025

The Wall Street Journal

Late Edition – Final

C3

https://www.wsj.com/lifestyle/workplace/of-course-workers-want-a-four-day-week-companies-should-too-0837a0a1

 

Strategic CSR - Amazon

Transport Topics is not part of my normal rotation of reading material, but the article in the url below caught my attention:

"Amazon.com Inc. equipped some delivery vans in Europe with defibrillators to see if drivers crisscrossing residential areas could speed up aid to heart attack victims."

Although Amazon creates a great deal of value throughout society (simply by virtue of what it does), I do not normally think of it experimenting outside of its lane, or doing something that does not deliver an immediate and obvious benefit to its bottom line. But it seems the company not only explored this, but took it seriously:

"The world's largest online retailer tested a program, called Project Pulse, as a pilot in Amsterdam in November 2023, and expanded it to London and Bologna, Italy, according to documents seen by Bloomberg. … Amazon confirmed that more than 100 contract drivers took part in the experiment, with several receiving alerts from citizen responder apps and arriving on site."

The reason why Amazon would do this makes a great deal of sense – "Amazon vans tend to be closer than a professional first responder," and speed of treatment can make all the difference:

"Nine out of 10 people live if they receive a jolt within a minute of a cardiac event, and chances of survival without CPR decrease by 10% every minute, according to the American Heart Association."

Amazon drivers offer broad coverage, given that they deliver in residential areas, where first responders are often not located and "more than 70% of cardiac arrests occur:"

"A study by Philips included in the Amazon documents estimated that a fleet of 50 AED-equipped delivery vans on the roads of a north Seattle neighborhood would be able to respond more than a minute faster, on average, than emergency medical services."

Moreover, Amazon sees clear benefits to the experiment:

"The company's drivers have been blamed for congestion, pollution and causing accidents. The program's backers also speculated that Project Pulse could improve driver retention. Amazon's legal team deemed the risk of drivers being sued low owing to European laws that typically shield bystanders who come to someone's aid."

And, for Amazon at least, it is all relatively cheap:

"One internal document estimated it would cost less than $17 million in the first year of the program to equip 15% of drivers at Amazon's 1,100-plus last-mile delivery depots around the world."

Currently, the "pilot program" has ended and Amazon is exploring the potential of rolling it out more comprehensively in a few European countries.

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  

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Amazon Equips Some Drivers in Europe With Defibrillators

By Benoit Berthelot and Anna Edgerton

April 10, 2025

Transport Topics

https://www.ttnews.com/articles/amazon-europe-defibrillators

 

Strategic CSR - Disabilities

The article in the url below frames a challenging debate by asking, "Is it ever right to pay disabled workers pennies per hour?" Although, on the face of it, the answer seems like an emphatic 'no,' the article suggests the reality is more complex (see also Strategic CSR – Discrimination and Strategic CSR – Dementia):

"Jeffrey Pennington sits at a desk packing ten-piece sets of zip ties. A diagram on a piece of paper helps him count before he drops the ties into a resealable bag and begins again. Mr Pennington, who has Down's syndrome and autism and struggles to speak, once dreamed of waiting tables at Wendy's, a fast-food joint. Today he is one of 77 disabled people working in 'the shop' at Creative Enterprises, a Georgia non-profit. Mr Pennington and his co-workers assemble allergy-test and home-repair kits for big companies. Each week Mr Pennington proudly takes home a pay cheque, but after about ten hours' work it amounts to only about $3.00."

According to the article, the federal government in the U.S. can certify companies like Creative Enterprises to pay their employees with disabilities less than the minimum wage. These certifications were created by legislation passed in 1938 that was intended to create employment opportunities for disabled veterans:

"Today these workers—most of whom are intellectually disabled—make hotel beds, do corporate laundry, pack pharmaceutical pill boxes and shred files, among other jobs. Because they are paid based on their productivity rather than time worked, some, like Mr Pennington, earn mere cents each hour. Roughly half of those employed in these 'sheltered workshops' … make under $3.50 an hour, … or less than half the federal minimum wage."

Understandably, advocates for the disabled argue strongly against these certificates. Jill Jacobs, who leads the National Association of Councils on Developmental Disabilities, for example, protests on the grounds that such employment is abusive and unconstitutional, but also because it is anti-competitive:

"Barely having to pay for labour, she says, allows [these companies] to undercut other bidders for competitive contracts with companies like Amazon. Georgia advocates point to Creative Enterprise's $1.6m profit last year … as evidence for this view."

In contrast, the CEO at Creative Enterprises, Leigh McIntosh, argues that this legislation creates opportunities for people who otherwise would be hard-pressed to find work:

"By her estimation those at Creative are about 15% as productive as standard workers, and it would not be economically viable to pay them a full hourly wage. Each year she places about 40 people from her non-profit in outside jobs. Those who choose to stay, who tend to have much lower abilities, take pride in their work."

By this point in the article, I was still on the side of those seeking to ban "sheltered workshops," which is currently the case in 18 states in the U.S. (and is under consideration in a few other states, such as Georgia). But, the article finishes with representations from the parents of these employees, implying that they support these opportunities for their children who face extreme levels of discrimination elsewhere in society:

"Mr Pennington's mother says he loves his job and does not know the difference between $0.25 and $25. She feels frustrated by disability activists insisting that someone like her son can do more and ought to be treated like a regular worker. 'He has the mental capacity of a kindergartener,' she says as her eyes well with tears. 'How could a five-year-old work at Target?'"

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/

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The zip ties that bind

April 5, 2025

The Economist

Late Edition – Final

21

https://www.economist.com/united-states/2025/04/03/is-it-ever-right-to-pay-disabled-workers-pennies-per-hour

 

Strategic CSR - Second chances

The second chance campaign in the U.S. aims to reintegrate people who have served prison sentences into society more effectively, with the ultimate goal of reducing recidivism. One component of this effort is removing the question on hiring forms asking whether the applicant has a prison record (which often acts as a barrier to employment); something about which Dave's Killer Bread has been particularly progressive (see Strategic CSR – Dave's Killer Bread and Strategic CSR – Second chances; for related issues on employment discrimination, see: Strategic CSR – Discrimination and Strategic CSR – Dementia). The article in the url below reveals that similar efforts to support those who have paid their debt to society are underway in other countries, such as Venezuela:

"They once used the house to hide their kidnapping victims as they awaited ransom. Now they are converting it into an office for a rum distribution business. The drastic shift by the crime boss Luis Oropeza and his gang is part of an unusual social reintegration project that has brought relative calm to the town of Sabaneta as lawlessness engulfs much of Venezuela."

The potential business benefits of working with otherwise stigmatized populations quickly becomes apparent:

"… the program has also helped its founder, the rum maker Ron Santa Teresa, to survive — and even thrive — in a country where the economy has been caught in a downward spiral for years. … Instead of joining the scores of businessmen fleeing the country to escape kidnappings, arrest or financial ruin, the aristocratic Vollmer family that runs Santa Teresa chose to stay and engage with Sabaneta's criminal gangs and with the socialist government that had once promised to destroy the country's elite. In the process, the Vollmers have gone from declaring bankruptcy to becoming exporters of an award-winning vintage rum."

Not only is this creating opportunities for individuals to turn themselves around, the project is also having societal-level effects:

"Mr. Vollmer's leadership has also helped break the vicious cycle of murder and revenge that had made Sabaneta one of the most violent towns in the country. … When the project, known as Alcatraz, began in 2003, the county surrounding Sabaneta recorded 174 homicides per 100,000 residents … . Although the Venezuelan government long stopped publishing statistics, Santa Teresa estimates the rate has dropped to a quarter of that figure. Anecdotal evidence appears to support the claim."

The low recidivism rate suggests there is real value in the project:

"Santa Teresa contends that 70 percent of 216 gang members that went through Alcatraz — a two-year re-education program that includes rugby games, psychology sessions and vocational training — no longer pursue a life of crime. More than 100 of them have been employed by the company."

In a country where poverty is the norm and the government is dysfunctional, crime offers a way of life; business similarly offers an overarching structure and purpose, but with a longer life expectancy – it is also legal, and commercially viable:

"Dismantling local gangs significantly reduced theft and kidnapping threats against the company's property and employees, Mr. Vollmer said. Rugby matches organized by Santa Teresa among the former gang members have been a powerful marketing tool. And after Alcatraz expanded to Venezuela's jails in 2007, Santa Teresa's executives were able to foster relationships with underworld bosses, shielding the company from the extortion fees that plague most other businesses in the country."

The innovative approach to social reform and progressive business creates value, in the broadest sense:

"In 2000, when hundreds of poor families invaded the company estate with the government's support, Mr. Vollmer voluntarily provided part of his land for a social housing initiative. The offer helped the company escape expropriation and allowed Mr. Vollmer to build important relationships with the government of Hugo Chávez, who was then president. 'We converted this crisis into a great opportunity,' Mr. Álvarez said."

It is also clear that differentiation offers commercial success, even while it can antagonize less innovative competitors:

"Mr. Vollmer's collaboration with Mr. Chávez, and his successor, Nicolás Maduro, has angered many of his peers, who accused him of aiding a government they say has destroyed democracy and committed grave human rights abuses. Mr. Vollmer shrugs off the attacks, pointing out that it is easier to criticize from exile than to try creating positive change from within Venezuela.' Starting in our county, we want to build a society that is better,' he said."

Take care

David

David Chandler

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

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In Venezuela, a Rum Maker Offers Gangsters a Life Outside Crime

By Isayen Herrera and Anatoly Kurmanaev

October 16, 2021

The New York Times

https://www.nytimes.com/2021/10/16/world/americas/venezuela-rum-rehabilitation-crime.html