Strategic CSR - Bribery

The article in the url below reports increased efforts by the U.S. Justice Department in recent years to crack down on corporate bribery by U.S. firms across the world:

“The crackdown under the Foreign Corrupt Practices Act, or FCPA -- a post-Watergate law largely dormant for decades -- now extends across five continents and penetrates entire industries, including energy and medical devices.”

Similar to the political environment that gave rise to the FCPA in 1977 (see http://www.corpwatch.org/article.php?id=14859), once again it is the rise in corporate scandals, starting with the Enron scandal around the turn of the century, that is prompting the government to act:

“At least 120 companies are under investigation … up from 100 at the end of last year.”

An interesting component of the article focuses on the “grey areas” of the legislation. Firms complain that the wording of the legislation is so broad (Is paying for a client’s dinner prohibited?) and insensitive to cultural differences (In many countries, token gift-giving is an essential part of the culture.) that it leaves the best-intentioned firms unable to know when they are breaking the law:

“The law prohibits U.S. companies from paying, or offering to pay, foreign-government officials or employees of state-owned companies to gain a business advantage. It covers nonmonetary gifts or offers in addition to cash payments, and is worded broadly enough that it's spawning an army of consultants, some of whom once prosecuted bribery cases for the Justice Department, who offer to interpret the gray areas.”

The article provides details on multiple past investigations by the Justice Department into corporate activities that breached the legislation’s boundaries of acceptable corporate behavior. The financial and reputation costs of a serious transgression are significant:

“A spokesman at Siemens, which paid the largest foreign-bribery fine to date, said the cost of addressing its own corruption allegations was nearly as much as its total fine of 1.22 billion euros ($1.7 billion), including fines to the German government. … A Siemens spokesman said in an email that it's wise for a company "to have an adequate compliance system in place and a corporate culture that stands for clean business."”

Take care

David

Bill Werther & David Chandler

Strategic Corporate Social Responsibility

© Sage Publications, 2006

http://www.sagepub.com/Werther/

US Cracks Down On Corporate Bribes

1118 words
The Wall Street Journal

27 May 2009

http://online.wsj.com/article/SB124329477230952689.html

Strategic CSR - Food Labels

The article in the url below covers a warning by the Food & Drug Administration to General Mills about the health claims on its Cheerios packets. In particular, the FDA took exception to the firm’s claim that “in just six weeks, Cheerios can reduce bad cholesterol by an average of 4 per cent”:

“The FDA warned that [General Mills] was exceeding the qualified health claim approved for food labels on the benefits of soluble fibre.”

The article argues that the decision indicates that the FDA is seeking to limit producers’ claims, in general. The FDA stated that, by making the health claims on Cheerio’s ability to reduce cholesterol, General Mills was marketing its cereal, “in effect, like a drug” and, as such, would be subject to much stricter oversight of the veracity of those claims.

The decision suggests the FDA might be willing to take a much more activist role in regulating the claims made by food manufacturers on their product labels. The article also argues, however, that the FDA’s more activist stance will pale in comparison to the remit of the relatively new European Food Safety Authority (EFSA):

“While the FDA restricts its authority over food marketing to "disease" reduction claims on labels - such as whether foods reduce the risk of heart disease or cancer - the EFSA has been asked by the European Commission to assess "functional" health claims as well - such as assertions that a food ingredient helps blood circulation or helps increase concentration.”

Early decisions by the EFSA suggest the agency has set a high threshold of scientific ‘evidence’ that firms will need to provide to validate any claims. And, only approved claims will be allowed to be included on labels after 2010.

Take care

David

Bill Werther & David Chandler

Strategic Corporate Social Responsibility

© Sage Publications, 2006

http://www.sagepub.com/Werther/

Taste of a stricter future for health claims on food labels; Agencies on both sides of the Atlantic have started to show a deeper interest in how manufacturers promote their products

By Jonathan Birchall in New York

887 words

22 May 2009

Financial Times

London Ed1

12

http://www.ft.com/cms/s/0/e1f54832-4669-11de-803f-00144feabdc0.html

Strategic CSR - CSR in a recession

The article in the url below asks the question: Why do firms continue to invest in CSR when many expected such policies to diminish in an economic downturn?

"That easy prediction has turned out to be wrong. Mars, the world's biggest confectionery company, has announced that its entire cocoa supply will be "produced in a sustainable manner" by 2020."

The author also cites the examples of Cadbury, the maker of the UK's most popular chocolate bar that recently made a similar commitment to Mars, and Wal-Mart:

"… the world's biggest retailer, which told a meeting of 1,000 Chinese suppliers last year that it would hold them to strict environmental and social standards, the downturn notwithstanding."

The author then proceeds to outline the strong business reasons behind these decisions by the three firms. He argues that, contrary to skeptical opinion, in the current economic climate, CSR is essential for firms seeking to please customers, guarantee supplies of high quality raw ingredients, and also lower costs:

"… when, in 2007, M & S laid out its "Plan A" on sustainable sourcing and fair trading, it expected the changes to cost the company £200m ($290m, €225m) over five years. But because, like Wal-Mart, M & S is saving money through its initiatives, it is finding its changes are cost-neutral."

Have a good weekend

Dave

Bill Werther & David Chandler

Strategic Corporate Social Responsibility

© Sage Publications, 2006

http://www.sagepub.com/Werther/

Why corporate responsibility is a survivor

By Michael Skapinker

829 words

21 April 2009

Financial Times

Asia Ed1

11

http://www.ft.com/cms/s/0/bc9a37ce-2def-11de-9eba-00144feabdc0.html

Strategic CSR - Timberland

The article in the url below is a wide-ranging interview with Jeff Swartz, CEO of Timberland (Issues: Volunteering, p141), who has been a leading advocate for strategic CSR for many years. For Swartz, CSR is not an abstract concept, but a factor of business that he wrestles with, often publicly, in making his firm’s day-to-day operational decisions. Below are a sample of quotes from the interview that reflect, not only Timberland’s progressive stance on many aspects of CSR, but also Swartz’s refreshing openness on how difficult it is to find acceptable answers to some of these challenges:

“The social fabric is frayed at best and torn in many places.”
“We build things that last. Maybe we should go into the banking business.”
“For example we are for capping carbon emissions, but not for trading them.
“Consumers are starting to value brands as social institutions.”
“Brands must be transparent in a way that we have never been transparent before.”
“We are learning how to get naked in front of customers in a socially acceptable fashion, which is not a first instinct for a brand like ours.”

Timberland has for three years carried “nutrition labels” on products that show in explicit detail the environmental impact of a product and the child-labour record of the factory that made it.

Timberland is “almost at the point where we have achieved sustainability in human rights”.

The goal is to ensure workers go from being “factors in production” to “partners in production”.
Swartz also has ambitious goals to cut the environmental impacts of Timberland shoes, which he notes “are toxic, by definition.”

A second green goal is to create products that are completely recyclable and biodegradable:

“At heart, responsible business does not mean being more expensive. You are not responsible in order to save cost, but saving cost is a consequence.”

Take care
David

Bill Werther & David Chandler
Strategic Corporate Social Responsibility
© Sage Publications, 2006


The big interview: Jeff Swartz – Consumer trust that’s good for the sole
Timberland’s Jeff Swartz explains why brands must start engaging consumers on social issues to rebuild trust lost during the financial crisis
John Russell
Ethical Corporate Magazine
May 3, 2009
http://www.ethicalcorp.com/content.asp?contentid=6452

Strategic CSR - Sustainable Cities

The article in the url below is interesting because it mentions the U.S. Mayors’ Climate Protection Agreement (http://usmayors.org/climateprotection/agreement.htm), which I hadn’t heard of before. The Agreement allows U.S. cities to move towards achieving “the greenhouse gas reductions targeted by the Kyoto Protocol” in the absence of meaningful federal policy:

“Since the 2005 agreement, some 500 more cities and counting have signed on. And while some cities simply signed the document and moved on, others have used the initiative to draft further strategies that deliver meaningful reductions in emissions.”

The article profiles seven cities (San Jose, Boston, Austin Texas, San Francisco, Seattle, Portland Oregon, and Denver) that have positioned themselves as the “earl[iest] adopters of "green" products and services” and, as a result, offer the most welcoming environment for clean technology start-up companies.

Take care
David

Bill Werther & David Chandler
Strategic Corporate Social Responsibility
© Sage Publications, 2006
http://www.sagepub.com/Werther/


Cities Striving to Be Green

By Amy Westervelt
Businessweek
May 19, 2009
Some places in the U.S. are way ahead in policies to reduce carbon emissions. Here are the seven best spots to start a clean tech company
http://www.businessweek.com/technology/content/may2009/tc20090519_708295.htm

Strategic CSR - Countdown to Copenhagen

Here is a website to focus the mind:

http://unfccc.int/2860.php

The stakes are being raised for the Copenhagen meeting. Almost every reference I see to it in the press is associated with a superlative emphasizing the importance of reaching a meaningful agreement if we are to hope to avoid the various tipping points that scientists predict will occur in the near future.

As Bill Baue of CSRwire puts it (http://www.csrwire.com/press/press_release/27071):

“When that clock reaches zero, world leaders will negotiate a successor to the Kyoto Protocol – hopefully before the climate’s “clock” reaches zero and the world spirals into climate catastrophe.”

For anyone doing research on Kyoto and subsequent progress towards a global treaty to combat climate change, this UN website provides a treasure trove of information:

http://unfccc.int/essential_background/items/2877.php

Have a good weekend.

David

Bill Werther & David Chandler

Strategic Corporate Social Responsibility

© Sage Publications, 2006

http://www.sagepub.com/Werther/

Strategic CSR - Organic Food

The article in the url link below reports 2007 agriculture census data on the distribution of organic farms across the U.S.:

“The map of organic farms in the United States is clustered into a few geographic centers, a strikingly different pattern than the map of all farms, which spreads densely over many regions, breaking only for the Rockies and Western deserts.”

The article notes that, while there are large numbers of small organic farms in both the NW and NE of the U.S. that sell direct to consumers, large organic farms are located mostly in California. Overall, organic sales in the U.S. have been rising in recent years:

“Organic vegetables now account for 5 percent of all vegetable sales; organic dairies, which are the fastest-growing sector, now produce 1 percent of the nation's milk.”

There is a lag, however, between consumer demand and the ability of farmers to increase their supply of organic products:

“… the Agriculture Department requires a three-year waiting period for farms to win organic certification.”

The graphics that accompany this article can be found at: http://www.nytimes.com/imagepages/2009/05/03/business/03metrics.graf01.ready.html

Take care

David

Bill Werther & David Chandler

Strategic Corporate Social Responsibility

© Sage Publications, 2006

http://www.sagepub.com/Werther/

The Hot Spots for Organic Food

By HANNAH FAIRFIELD

214 words

3 May 2009

The New York Times

Late Edition - Final

http://www.nytimes.com/2009/05/03/business/03metrics.html

Strategic CSR - Wall Street

The article in the url below argues that public disenchantment with Wall Street as a result of the financial crisis risks spreading into a general resentment against business. This, the author suggests, could result in legislative backlash that impedes the recovery and set-back “American capitalism” for years to come. The author highlights three issues on which he thinks business leaders need to speak that can help turn public opinion back in businesses’ favor:

“… executive pay; the need for an updated "social contract" that fits 21st-century realities; and a strategy to make service jobs that cannot be offshored a path to the middle class. … failure to address them will fuel a backlash that affects every company's licence to operate. Let us take them in turn.”

In short: First, on executive pay, there needs to be a strong correlation between risk, performance, and reward; second, a more complete social contract allows firms to adopt responsibilities, while also tackling intractable social problems, such as healthcare provisions; and, third, building sustainable jobs at home that emphasize highest services and quality over lowest cost will help ensure the public views business as part of the solution, rather than one of the main causes of the problem:

“Chief executives face a choice. They can help bolster workers' security, or they can hire more security guards and hunker down. … A group of 10 far-sighted business leaders who sense the threat (and the opportunity) could get this ball rolling. With business nearing the brink, who will answer the call?”

Take care
David

Bill Werther & David Chandler
Strategic Corporate Social Responsibility
© Sage Publications, 2006
http://www.sagepub.com/Werther/


Business needs to speak out against greed
Matt Miller
967 words
21 April 2009
Financial Times
USA Ed2
11
http://www.ft.com/cms/s/0/2717447c-2dda-11de-9eba-00144feabdc0.html

Strategic CSR - United Airlines

You may have heard about or seen the YouTube video over the summer by the musician whose guitar was broken on a United Airlines flight in March, 2008:

http://www.youtube.com/watch?v=5YGc4zOqozo

The article in the first url below outlines the background to the event:

“Canadian singer Dave Carroll is now on the map, courtesy of United Airlines (UAUA). In March 2008 he was changing planes in Chicago on the way to a gig when he saw baggage handlers tossing instruments. Finding his $3,500 Taylor acoustic guitar damaged, Carroll tried for more than a year to get United to pay for the $1,200 repair.”

When United continued to deny any responsibility (largely based on a technicality—the firm claimed he had failed to file a complaint within 24 hours; a claim Carroll denies in his video), Carroll responded by writing the song and posting it on YouTube, where, as the article in the second url below reports, it quickly became a hit:

“According to the Times of London, "...within four days of the song going online, the gathering thunderclouds of bad PR caused United Airlines' stock price to suffer a mid-flight stall, and it plunged by 10%, costing shareholders $180 million. Which, incidentally, would have bought Carroll more than 51,000 replacement guitars."”

At present, this video has had over 5,250,000 views on YouTube and there are multiple postings:

“Can United's 180 million dollar loss be chalked up entirely to a song on YouTube? Probably not. Did the song have a very real and very negative effect on United's brand equity? Absolutely.”

A strategic approach to CSR involves firms putting systems in place to meet the needs of as broad a number of stakeholders as possible. The goal is to avoid the backlash often associated with a short term focus on minimizing costs, which, as United demonstrates, can turn out to be more expensive in the long run.

To see the benefits of doing things differently, see this response video posted by a musician who has been flying Southwest for many years and, as he says, “Southwest Never Broke My Guitar.” The song is not as good, but I think the value of having a loyal consumer base, rather than one that is suspicious, quickly becomes apparent:

http://www.youtube.com/watch?v=u1SMcaVekVE

Have a good weekend.
David

Bill Werther & David Chandler
Strategic Corporate Social Responsibility
© Sage Publications, 2006
http://www.sagepub.com/Werther/


Broken-Guitar Hero

Christopher Palmeri
Businessweek
August 3, 2009, p17.
http://www.businessweek.com/magazine/content/09_31/c4141btw643725.htm

Broken Guitar Has United Playing the Blues to the Tune of $180 Million

July 30, 2009
By: Ravi Sawhney
Fast Company Magazine
http://www.fastcompany.com/blog/ravi-sawhney/design-reach/youtube-serves-180-million-heartbreak

Strategic CSR - Welcome back!

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

The article in the url below discusses the idea that the ecological environment is an identifiable stakeholder of the firm with rights that are protected by law (Figure 1.1: A Firm’s Stakeholders, p4). These rights are being realized in the U.S. by a dozen municipalities that have passed laws to this effect. The article leads with the example of the small town of Shapleigh, Maine:

“At a town meeting, residents voted, 114-66, to endow all of the town’s natural assets with legal rights: “Natural communities and ecosystems possess inalienable and fundamental rights to exist, flourish and naturally evolve within the Town of Shapleigh.” It further decreed that any town resident had “standing” to seek relief for damages caused to nature - permitting, for example, a lawsuit on behalf of a stream.”

But, the article points out that a similar sentiment is also being expressed elsewhere in the world:

“… in 2008, when Ecuador adopted a new constitution, it recognized nature’s “right to exist, persist, maintain itself and regenerate its own vital cycles, structure, functions and its evolutionary processes.” A campaign is also underway in Europe for a UN Universal Declaration of Planetary Rights, which would attempt to enshrine such principles in international law, following the model of the Universal Declaration of Human Rights.”

Advocates for legal representation of the environment present their case as a natural extension of the granting of human rights to other groups in society that have not always had them:

“After all, not so long ago, slaves and women were in some legal regimes deemed property, just as nature is today. Now we all accept universal human rights. The concept of animal rights has also become familiar, if much more contested. Advocates of this agenda see the extension of rights to ecosystems as the natural next step. And they believe it could spark a profound shift in our relations with nature, leading to more effective environmental protections.”

In addition:

“Other nonhuman entities have long enjoyed certain rights under our legal system: ships and corporations are two examples of entities entitled to “personhood,” meaning they can bring lawsuits to court.”

The idea is controversial and the article has an interesting discussion of some of the legal and philosophical questions it raises. It also discusses less controversial solutions. One example, which does not involve recognizing that non-human life has legal rights and standing to sue, is for society simply to pass a law that assigns value to the things it seeks to protect:

“The distinction can be subtle. It doesn’t mean we must diminish the worth we assign to nature; it just means acknowledging that we as a society are assigning the value. We could, for example, liberalize standing for humans - make it easy for people to sue to protect nature, without granting official standing to the natural objects.”

Although controversial, the issue is central to the stakeholder model we present in Strategic CSR—all organizations (whether for-profit or nonprofit) have a vested interest in identifying their key stakeholders and working to meet their needs and expectations wherever possible. In addition, however, the rationale a firm uses to identify its key stakeholders is central to its ability to integrate a CSR perspective throughout all aspects of operations. The principle that the environment is a common resource that should be protected from the self-interest of a minority, for example, is an important component of the Moral Argument for CSR (Chapter 1, p15). Those firms, however, for whom the environment is a key strategic resource (Nestle is mentioned in the article) have a vested interest in protecting it from over-exploitation (Chapter 1: The Economic Argument for CSR, p18). Alternatively, even firms that do not draw on the environment for key raw materials or do not care about over-exploitation should, at a minimum, recognize that they likely have many other key stakeholder groups (consumers, government, NGOs) who do care and, therefore, that it is counter-productive to act in a way that contravenes these stakeholder expectations (Chapter 1: The Rational Argument for CSR, p17).

Take care
David

Bill Werther & David Chandler
Strategic Corporate Social Responsibility
© Sage Publications, 2006
http://www.sagepub.com/Werther/


U.S.: Sued by the forest
by Rebecca Tuhus-Dubrow
The Boston Globe
July 19th, 2009
http://www.corpwatch.org/article.php?id=15413

Strategic CSR - See you in the Fall!

This will be the last CSR Newsletter for the Spring semester.
Often accused of being too skeptical by my students, I leave you on a positive note for the summer.
See you in August!

In order to solve some of the most intractable economic, social, and environmental problems we face, it seems that we have, at the extremes, two choices: We either reduce significantly our consumption levels and living standards (i.e., the sacrifice option), or we invent new ways of doing the things we already do (i.e., the innovation option). Some combination of both would, no doubt, be ideal.

From much that I read in the daily news and CSR newsletters I receive (together with what I know of human nature—politicians, in particular), while I think the sacrifice option needs to be an important part of the puzzle, I also think it is highly unlikely.

If true, that leaves us relying on the innovation option. If this is to work, there are many fundamental questions that remain unanswered: Can we find technical solutions to problems such as climate change? If so, can we implement them on a global scale? And, most importantly, can we do all this in time (i.e., before we reach the tipping point of no return)?

If it is possible, I think the answers to these questions may well come from new institutions such as the Singularity University. This new university, outlined in the article in the first url below, is located in the heart of Silicon Valley and backed by organizations such as Google and NASA:

“In a spare one-room office at Nasa's Silicon Valley campus, a small band of futurists is plotting to save the world. The means are not a revolutionary technology or a new world order (though both may be byproducts). Rather, a new, pseudo-academic institution called Singularity University is going to solve our grand challenges: poverty, hunger, energy scarcity and climate change. Among others. Through a combination of techno-optimism, wide-eyed idealism and belief in the perfectibility of human beings, these well-connected geeks are creating an institution meant to legitimise their most extreme thinking.”

Some more extreme, out-of-left-field innovations that are circulating in science circles are outlined in the second url below:

“The science of altering the world's natural systems is called geo-engineering. Once on the whacky fringes of scientific research, the subject is rapidly becoming mainstream, attracting serious attention from academics and governments.”

Have a great summer!
Dave

Bill Werther & David Chandler
Strategic Corporate Social Responsibility
© Sage Publications, 2006
http://www.sagepub.com/Werther/


Have These People Seen The Future?
By David Gelles
2795 words
25 April 2009
Financial Times
FT Magazine
20
http://www.ft.com/cms/s/2/844f5fa0-2d74-11de-9eba-00144feabdc0.html

Changing the planet might help preserve it
By Fiona Harvey, Environment Correspondent
800 words
9 May 2009
Financial Times
USA Ed2
03
Geo-engineering - altering the Earth's systems - may soon be our only option, says Fiona Harvey
http://www.ft.com/cms/s/0/121f650e-3bea-11de-acbc-00144feabdc0.html

Strategic CSR - TerraCycle

The article in the url below profiles an innovative recycling entrepreneur, Tom Szaky, and the business he founded, TerraCycle (http://www.terracycle.net/):

“Tom Szaky, an eco-entrepreneur in his late 20s, who gave up his studies at Princeton University to pursue his dream of a zero-waste, worm-excrement-based business.”

Initially an entry to a business plan competition at Princeton, Szaky’s idea was to:

“… use worms to turn the university's cafeteria waste into an excrement-based fertiliser.”

Packaging for the product was:

“… re-used and relabelled 20 oz plastic drinks bottles.”

Eventually attracting the attention of Home Depot and Wal-Mart, TerraCycle took off:

“… with sales up from $70,000 in 2004, to $1.5m in 2006.”

Importantly, Szarky’s business strategy rejects the price premium that many associate with CSR:

“"eco-capitalism" will only work when it delivers goods that do not require the buyers to pay a premium.”

Take care

Dave

Bill Werther & David Chandler

Strategic Corporate Social Responsibility

© Sage Publications, 2006

http://www.sagepub.com/Werther/

The adventures of an eco-entrepreneur

By Jonathan Birchall

742 words

23 April 2009

Financial Times

USA Ed1

10

https://www.ft.com/cms/s/0/44d45c2a-2f3d-11de-b52f-00144feabdc0,dwp_uuid=02e16f4a-46f9-11da-b8e5-00000e2511c8.html

Strategic CSR - Emissions Reporting

The article in the first url below deals with the announcement by the Environmental Protection Agency in the U.S. that it will seek to make greenhouse gas emissions reporting mandatory for “a broad range of industries” in 2011 (reporting 2010 emissions):

“The proposal … would require about 13,000 factories, power plants and other facilities to report their emissions of carbon dioxide, methane, nitrous oxide and other gases that climate scientists link to global warming.”

The proposal covers firms in industries such as cars, oil, and cement production, which, according to the EPA:

“… would account for 85 percent to 90 percent of the country's emissions of heat-trapping gases, although small manufacturers would be exempt.”

The logic behind the move is that there needs to be an accurate account of current emissions in order to establish an effective cap and trade market that avoids the large price fluctuations seen in Europe last year:

“The E.P.A. estimated that the cost to industry would be $160 million in the first year, then fall to $127 million a year.”

The article in the second url below indicates how compliance with such a rule would be more challenging for some firms than others. A study of the oil industry by PFC Energy (an “industry consultant”) evaluated emissions reporting by six major oil companies in terms of “the level of detail, frequency and coherency of emissions disclosures”:

“PFC, which based its rankings on publicly available data from corporate sustainability reports, annual reports and corporate websites, scored Shell at 1.15 out of 5 on its carbon disclosures. That compares with 3.05 for BP, 2.76 for Exxon, 2.64 for Conoco-Phillips, 2.4 for Chevron and 2.03 for Total.”

The article offers a few possible explanations for Shell’s relatively poor rating, but its findings of significant variance in firm performance indicate that firms that are best able to anticipate stakeholder needs are best placed to cope with an ever-changing business environment.

Have a good weekend.
Dave

Bill Werther & David Chandler
Strategic Corporate Social Responsibility
© Sage Publications, 2006
http://www.sagepub.com/Werther/


E.P.A. Proposes Tracking Industry Emissions
By KATE GALBRAITH
387 words
11 March 2009
The New York Times
Late Edition - Final
16
http://www.nytimes.com/2009/03/11/washington/11epa.html

Emissions disclosure study puts Shell bottom of the big oil class
By Carola Hoyos in Vienna
410 words
16 March 2009
Financial Times
London Ed2
17
http://www.ft.com/cms/s/0/d02d7252-11a1-11de-87b1-0000779fd2ac.html

Strategic CSR - Generation Y

The article in the url below analyzes Generation Y from a marketing perspective—attempting to understand what drives today’s 18-30 year olds and how to harness that energy:

“In 2007, I fielded a global quantitative study of Gen-Yers in 13 countries and was surprised to find the No. 1 attitude unifying the generation was: "I would fight for a cause I believe in." … Gen-Yers have an activist bent. But their activism is different from the idealism and rebellion of their Boomer parents in the 1960s and '70s. … They treat themselves and their dreams almost like causes.”

According to the study, “Gen-Yers” feel passionate about specific values. To pursue them, they will either join firms or purchase brands that match those values, or they will create their own opportunities:

“According to the Wall Street Journal, half of all new college graduates now believe that self-employment is more secure than a full-time job. According to a Gallup pool, over two-thirds of high school students say they intend to start their own companies.”

The conclusion, however, is not just that Gen-Yers want to support specific brands and campaigns; it is that they want to participate and shape movements for change:

“Some are social movements -- the sweatshop-free and socially responsible clothing movements are making clothing brands like Timberland, American Apparel and Patagonia must-have items for GenY. Others are cultural movements -- rather than selling processing speed, Apple invites GenYers to join a creativity movement. Obama became the choice of Gen-Y voters because he asked them to join a movement for change, not simply to vote for him.”

Take care
Dave

Bill Werther & David Chandler
Strategic Corporate Social Responsibility
© Sage Publications, 2006
http://www.sagepub.com/Werther/

Engage: Gen Y—The Rise of Cultural Movements
Chip Walker
Center for Media Research
Thursday, April 3, 2009
http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=103458

Strategic CSR - Trust

The article in the url link below reports on an experiment in “social radicalism” by a town (Lewes) in the South of England that introduced its own currency last September:

“Two years ago Lewes joined a growing international movement of "transition towns" in countries as diverse as the US, Japan, Australia and Italy where residents believe that the best way to preserve the values of their communities and combat climate change is to favour local produce and business over the standardised offerings of the global economy.”

The residents of Lewes believe that introducing their own currency encourages an ethos of barter, better integrates people with the local economy, and preserves the town’s social values. The article reports “12 local currency schemers” in the U.S. and two in the UK (with a third announcing its intention to follow suit this September).

Overall, the scheme is helping make Lewes a more attractive place to live. This attraction is reflected in the town’s property prices, which have remained relatively robust in the face of the economic downturn. More specifically, the currency appears to be having the desired effect of strengthening the bond among individuals that is the foundation is a functioning society:

“Legal tender is made acceptable by law [but] the Lewes pound is not, so each act of acceptance by a customer or business is an act of trust, of buying into the deal.”

Take care
Dave

Bill Werther & David Chandler
Strategic Corporate Social Responsibility
© Sage Publications, 2006
http://www.sagepub.com/Werther/

Noted for trust; Towns around the world are fostering community spirit with alternative currencies
Leney, Fiona
1632 words
28 February 2009
Financial Times
Surveys RES1
01
http://www.ft.com/cms/s/2/ecdee98a-03a0-11de-b405-000077b07658.html

Strategic CSR - CSR Film Festival

The press release in the url below contains the announcement for the first annual “Corporate Citizenship Film Festival” organized by Boston College’s Center for Corporate Citizenship. Rather than criticizing corporations, the Festival’s goal is to celebrate the social value they add. On the surface, this appears to be a good idea:

“Since so much media focus has been on the negative, it's easy to overlook the positive contributions business makes to society," said Bradley K. Googins, executive director of the Boston College Center for Corporate Citizenship. "We've launched this annual film festival to provide the public another dimension of business.”

Too often, the CSR debate fails to recognize that the relationship between business and society is symbiotic—society needs and benefits from business in the same way that business needs and benefits from society. Both sides have value to add; both sides also fall short in some respects. The way the Festival is currently structured, however, indicates that it is likely to fail to live up to its potential. I am trying not to be too cynical, but by allowing firms to submit their own films (rather than have a Festival for independent film makers, for example), my sense is that the films will largely be social responsibility ads:

“Each video is between 1 and 3 minutes in length and captures how each company is having a positive impact, typically in partnership with nonprofits, customers and employees, on social and environmental challenges.”

Those firms willing to commit the most money to the project will produce the best infomercials. What will be lost in the process is an objective evaluation of the net value added by any given firm.

This year’s competition was won by FedEx (http://www.csrwire.com/News/14981.html).

Have a good weekend.
Dave

Bill Werther & David Chandler
Strategic Corporate Social Responsibility
© Sage Publications, 2006
http://www.sagepub.com/Werther/

CSRWire Press Release
Press release from: Boston College Center for Corporate Citizenship
March 12, 2009
Caught on Video: Companies Doing Good
Boston College Center for Corporate Citizenship sponsors Film Festival; vote at www.BCCorporateCitizenship.org/filmfestival
http://www.csrwire.com/News/14806.html

Strategic CSR - Sustainability

This is an article I have re-read many times. Each time I return to it I pick up a different idea or new perspective. This time around, the article drew my attention to the challenge it makes to the central focus of consumption within the capitalist model that has evolved in the West (Issues: Environmental Sustainability, p171):

“It is based on appetite, consumption and waste; they are not by-products but driving forces.”

Because waste is inherent to economic growth—it prefers us to replace our cars every three years rather than ten and to buy disposable products rather than ones we can re-use—and because resources are finite, it is essential that we learn to re-cycle more effectively in order for our current economic system to remain sustainable in the long run. Some CSR advocates see this fault in our economic model and call for a revolution. Strategic CSR, on the other hand, seeks to reform the system we have so that capitalism works to maximize both economic and social progress.

Take care
Dave

Bill Werther & David Chandler
Strategic Corporate Social Responsibility
© Sage Publications, 2006
http://www.sagepub.com/Werther/

The Prince and the great debate
Charles: right or wrong about science?
Andrew Marr welcomes the Prince's promotion of spiritual values and argues that, unwittingly or not, Charles has hit the key issue: money and markets
Sunday May 21, 2000
The Observer
http://www.guardian.co.uk/theobserver/2000/may/21/focus.news

Strategic CSR - Climate Change

The article in the url below offers a radical perspective that I found refreshing in its willingness to propose counter-intuitive ideas:

“Winning the war on global warming requires slaughtering some of environmentalism's sacred cows.”

The article covers ten “green heresies” that it argues need to be re-thought in order to maximize progress on the main goal—minimizing carbon-dioxide emissions:

“Live in Cities
A/C Is OK
Organics Are Not the Answer
Farm the Forests
China Is the Solution
Accept Genetic Engineering
Carbon Trading Doesn't Work
Embrace Nuclear Power
Used Cars — Not Hybrids
Prepare for the Worst”

Links to all ten “heresies” are on the article’s web page and contain interesting ideas and provocative suggestions. Typical is the claim that “A/C Is OK,” which is based on the argument that it is more environmentally-friendly to live in Arizona (where AC is a must) than in New England (where it is less of a necessity, but heating becomes much more important):

“When it's 0 degrees outside, you've got to raise the indoor thermometer to 70 degrees. In 110-degree weather, you need to change the temperature by only 40 degrees to achieve the same comfort level. … In the Northeast, a typical house heated by fuel oil emits 13,000 pounds of CO2 annually. Cooling a similar dwelling in Phoenix produces only 900 pounds of CO2 a year.”

Another interesting argument is that buying a second-hand car is more environmentally-friendly than buying a new hybrid:

“Pound for pound, making a Prius contributes more carbon to the atmosphere than making a Hummer, largely due to the environmental cost of the 30 pounds of nickel in the hybrid's battery. … If a new Prius were placed head-to-head with a used car, would the Prius win? Don't bet on it. Making a Prius consumes 113 million BTUs. … A single gallon of gas contains about 113,000 Btus, so Toyota's green wonder guzzles the equivalent of 1,000 gallons before it clocks its first mile. A used car, on the other hand, starts with a significant advantage: The first owner has already paid off its carbon debt. Buy a decade-old Toyota Tercel, which gets a respectable 35 mpg, and the Prius will have to drive 100,000 miles to catch up.”

The frightening thing, however, is that it might not make any difference what we do:

“The Electric Power Research Institute in Palo Alto, California, calculates that even if the US, Europe, and Japan turned off every power plant and mothballed every car today, atmospheric CO2 would still climb from the current 380 parts per million to a perilous 450 ppm by 2070, thanks to contributions from China and India. (Do nothing and we'll get there by 2040.)”

Take care
Dave

Bill Werther & David Chandler
Strategic Corporate Social Responsibility
© Sage Publications, 2006

WIRED MAGAZINE: 16.06.2008
Science: Planet Earth
Inconvenient Truths: Get Ready to Rethink What It Means to Be Green
In the age of climate change, what matters most is cutting carbon dioxide and other greenhouse gasses. That means rethinking everything you ever learned about being green.
http://www.wired.com/science/planetearth/magazine/16-06/ff_heresies_intro

Strategic CSR - Green Consumers

The article in the url below contains some interesting highlights of the 2009 Conscious Consumer Report: Redefining Value in a New Economy, published by the branding consultancy, BBMG:

“23% of U.S. consumers say they have "no way of knowing" if a product is green or actually does what it claims. 49% look for "made in the USA" [in making purchase decisions]

Green benefits have increased in importance since last year, says the report:

• Energy efficiency (47% very important in 2008, 41% in 2007)

• Locally grown or made nearby (32% in 2008, 26% in 2007)

• All natural (31% in 2008, 24% in 2007)

• Made from recycled materials (29% in 2008, 22% in 2007)

• USDA organic (22% in 2008, 17% in 2007)

When asked unaided which companies come to mind as the most socially or environmentally responsible companies:

• 7% of Americans named Wal-Mart

Asked to name the least responsible companies:

• 9% named Wal-Mart

41% of Americans could not name a single company that they consider the most socially and environmentally responsible.”

Have a good weekend.

Dave

Bill Werther & David Chandler

Strategic Corporate Social Responsibility

© Sage Publications, 2006

Consumers Want Proof It's Green

Jack Loechner

Thursday, April 9, 2009

http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=103504
“Featuring new data and new consumer interviews, this year’s BBMG Conscious Consumer Report is designed to help companies better understand what’s driving consumer purchasing and how to close the trust gap to drive growth the innovation.”

Strategic CSR - Earth Day

The article in the url below reports the results of a survey by the Pew Research Center that asked U.S. adults about their current “top priorities”:

“In the poll, … global warming came in last among 20 voter concerns; it trailed issues like addressing moral decline and decreasing the influence of lobbyists. Only 30 percent of the voters deemed global warming to be ''a top priority,'' compared with 35 percent in 2008.

''Protecting the environment,'' which had surged in the rankings from 2006 to 2008, dropped even more precipitously in the poll: only 41 percent of voters called it a top priority, compared with 56 percent last year.”

Clearly, whatever danger global warming presented 6 months ago, that threat remains the same today.

What has shifted is the situation of the people polled, which is likely to be correlated with their willingness to begin tackling the problem. Whether this shift is transitory (likely) or not, I think it demonstrates the importance of appealing to self-interest in searching for a solution. If people’s priorities can shift so quickly, determined by their perception of their individual economic security, then building the foundation for a solution on this perception of self-interest seems most likely to result in an implementable and sustainable outcome that might survive the highs and lows of the economic cycle.

Happy Earth Day!

Dave

Bill Werther & David Chandler

Strategic Corporate Social Responsibility

© Sage Publications, 2006

Environmental Issues Slide In Poll of Public's Concerns

By ANDREW C. REVKIN

779 words

23 January 2009

The New York Times

Late Edition - Final

13

http://www.nytimes.com/2009/01/23/science/earth/23warm.html