The CSR Newsletters are a freely-available resource generated as a dynamic complement to the textbook, Strategic Corporate Social Responsibility: Sustainable Value Creation.

To sign-up to receive the CSR Newsletters regularly during the fall and spring academic semesters, e-mail author David Chandler at david.chandler@ucdenver.edu.

Monday, August 31, 2015

Strategic CSR - The elderly

The article in the url below covers an issue that will be near and dear to many of your students – free accommodation:
 
"A nursing home in the Netherlands allows university students to live rent-free alongside the elderly residents, as part of a project aimed at warding off the negative effects of aging."
 
The project demonstrates a creative approach to social issues that is routinely missing from public policy. For the students, the benefits are obvious. But, for their elderly neighbors, I think the benefits are probably greater:
 
"In exchange for small, rent-free apartments, the Humanitas retirement home in Deventer, Netherlands, requires students to spend at least 30 hours per month acting as 'good neighbors,' Humanitas head Gea Sijpkes said in an email to PBS NewsHour. Officials at the nursing home say students do a variety of activities with the older residents, including watching sports, celebrating birthdays and, perhaps most importantly, offer company when seniors fall ill, which helps stave off feelings of disconnectedness."
 
Having said that, in the longer run, my sense is that the students are learning lessons that will pay off many times over. Wisdom is a wonderful thing (that is greatly undervalued in our society) and it only comes with experience, which is highly correlated with time elapsed (i.e., aging). Being able to benefit from exposure to the wisdom of their elderly neighbors, while being paid to do so (in terms of free housing), is a phenomenal asset. What's more, even the noise restrictions are lessened by the bad hearing:
 
"Six students from area universities Saxion and Windesheim share the building with approximately 160 seniors. They are allowed to come and go as they please, as long as they follow one rule: Do not be a nuisance to the elderly. … this is not difficult for the younger residents, especially since most of the older people living at the home are hard of hearing."
 
The idea appears to be catching on:
 
"Similar intergenerational programs exist in Lyons, France and Cleveland, Ohio, according to the International Association of Homes and Services for the Ageing. One program that began in Barcelona, Spain in the late 1990s has been replicated in more than 20 cities throughout the country."
 
Take care
David
 
David Chandler & Bill Werther
 
Instructor Teaching and Student Study Site: http://www.sagepub.com/chandler3e/
Strategic CSR Simulation: http://www.strategiccsrsim.com/
The library of CSR Newsletters are archived at: http://strategiccsr-sage.blogspot.com/
 
 
Dutch nursing home offers rent-free housing to students
By Carey Reed
April 5, 2015
PBS Newshour
 

Friday, August 28, 2015

Strategic CSR - Art

Plastic is both a wonder and a bane of modern life. While we would be lost without it, it is also a toxin that pollutes because it tends to be discarded rather than recycled. What better way to respond, therefore, than to collect some of the plastic that has been discarded and put it to inspiring use:
 
"Mbongeni Buthalezi collects plastic bags from the streets around his Johannesburg studio and melts them to create a unique kind of art – he calls it 'plastic fantastic.'"
 
The BBC news video in the url below explains how he does it. Also, see Strategic CSR – Graffiti for another example of an ecological artist using his art to comment on our waste and pollution.
 
Truly, upcycling in its grandest form!
 
Have a good weekend
David
 
David Chandler & Bill Werther
 
Instructor Teaching and Student Study Site: http://www.sagepub.com/chandler3e/
Strategic CSR Simulation: http://www.strategiccsrsim.com/
The library of CSR Newsletters are archived at: http://strategiccsr-sage.blogspot.com/
 
 
The artist who 'paints' with recycled plastic
By Christian Parkinson
August 23, 2015
BBC
 

Wednesday, August 26, 2015

Strategic CSR - Welcome back!

 
Welcome back to the Strategic CSR Newsletter!
The first CSR Newsletter of the Fall semester is below.
As always, your comments and ideas are welcome.
 
 
I hope you all had a good summer break.
 
Earlier this year, I was interviewed for a series of podcasts that are being published on a new blog (The Sustainable Century, http://www.thesustainablecentury.net/) set up by Marc de Sousa-Shields. Marc runs a CSR consultancy (ES Global Consulting) and, as a result, is interested in all things CSR. My podcast was launched in May and is available here:
 
 
I forward this in the hope that it will be of interest/value to some of you, but also because Marc is looking for more people to interview. So, if you consider yourself someone with something to say about CSR and would like to be considered for one of Marc's podcasts, please feel free to contact him directly:
 
Marc de Sousa- Shields │ Managing Partner
mdess@esglobal.com│ Tel./Fax: +52 777-313-0438 / +52 777-102-1324 │
Mobile:. +044 777 363 6297
 
Take care
David
 
David Chandler & Bill Werther
 
Instructor Teaching and Student Study Site: http://www.sagepub.com/chandler3e/
Strategic CSR Simulation: http://www.strategiccsrsim.com/
The library of CSR Newsletters are archived at: http://strategiccsr-sage.blogspot.com/
 

Wednesday, May 13, 2015

Strategic CSR - A Rational Argument for CSR

 
 
This will be the last CSR Newsletter of the Spring semester.
Have a great summer and I will see you in August!
 
 
I thought this graphic is a great representation of how quickly the legal environment can change for firms:
 
 
As such, it provides evidence in support of the rational argument for CSR (Chapter 1: What is CSR? p26):

"CSR is a rational argument for businesses seeking to maximize their performance by minimizing restrictions on operations. In today's globalized world, where individuals and activist organizations feel empowered to enact change, CSR represents a means of anticipating and reflecting societal concerns to minimize operational and financial constraints on business."
 
At a minimum, it pays companies to be part of the conversation as issues evolve and new values become established. A good example of this is Chick-fil-A and its resistance to the idea of same-sex marriage and same-sex partner benefits. You cannot help but look at the way this issue is evolving and come to the conclusion that, however much it professes its values, Chick-fil-A is on the wrong side of history. While there is still stakeholder support for their position at present, that support is not guaranteed. And, given the pace at which society's perception of this issue is changing (see graphic above), it will not be long before their resistance becomes less a point of differentiation and more of a liability to their business.
 
Have a good summer.
David
 
David Chandler & Bill Werther
 
Instructor Teaching and Student Study Site: http://www.sagepub.com/chandler3e/
Strategic CSR Simulation: http://www.strategiccsrsim.com/
The library of CSR Newsletters are archived at: http://strategiccsr-sage.blogspot.com/
 

Monday, May 11, 2015

Strategic CSR - Recycling

For those who advocate a market-based solution for recycling, the recent drop in the price of oil has had serious consequences for the viability of the growing industry:
 
"A former World War II bomber hangar houses a monument to the recent plunge in oil prices: hundreds of bags of shredded plastic. The hangar is used by CK Group, a recycler of bottles, pipes and sundry bits of plastic. Plastic is often derived from oil, and there used to be money in recycled scrap. Not anymore. The fall in oil prices has dragged down the price of virgin plastic, erasing the recyclers' advantage."
 
The consequences for the business model underlying the plastics recycling industry is potentially dramatic:
 
"In the U.S., many cities and towns pick up detergent bottles, milk jugs and other bits of household plastic and sell them to recyclers who sort, process and resell the scrap. These municipalities typically earned cash—as much as $10 a ton in parts of New Jersey—for selling recyclable materials under contracts that tie the sales price to commodities prices, with a minimum. In recent months, some expiring contracts have been replaced with new contracts that set no such floor. That raises the possibility for some municipalities that a moneymaker could turn into a loser."
 
The drop in price of new plastic has been particularly dramatic since the start of this year:
 
"At the start of this year, new polyethylene terephthalate, a type of plastic widely known as PET and used to make soft-drink and water bottles, cost 83 cents a pound, according to data compiled by industry publication Plastics News. That was 15% higher than the cost of recycled PET. As of late March, the cost of new PET had fallen to 67 cents a pound, or 7% less than the recycled form, which costs 72 cents a pound."
 
The article in the second url below contains a similar story about glass, although the threats to the business model are slightly different. The problem with glass highlights the costs associated with the relatively recent shift to single-source recycling (i.e., putting all recyclables in the same disposal unit):
 
"Curt Bucey, an executive vice president at [Strategic Materials Inc., the country's largest glass-recycling company], said that when used glass arrived at its plants 20 years ago, it was 98% glass and 2% other castoffs, such as paper labels and bottle caps. These days, some truckloads can include up to 50% garbage, he said. 'Now what comes with the glass are rocks, shredded paper, chicken bones people left in their takeout containers, and hypodermic needles,' Mr. Bucey said. The company has had to invest in expensive machinery to separate the glass from the trash, then has to dispose of the garbage, making recycling a much costlier equation."
 
The result in both cases is that, while paper continues to be recycled at ever-increasing rates, there have been only incremental increases in the amounts of plastic and glass recycled in recent years:
 
 
Take care
David
 
David Chandler & Bill Werther
 
Instructor Teaching and Student Study Site: http://www.sagepub.com/chandler3e/
Strategic CSR Simulation: http://www.strategiccsrsim.com/
The library of CSR Newsletters are archived at: http://strategiccsr-sage.blogspot.com/
 
 
Recycling Becomes a Tougher Sell as Prices Drop
By Georgi Kantched and Serena Ng
April 5, 2015
The Wall Street Journal
 
High Costs Put Cracks in Glass-Recycling Program
By Serena Ng
April 23, 2015
The Wall Street Journal
Late Edition – Final
B8
 

Friday, May 8, 2015

Strategic CSR - Plastic

Plastic is a problem. For all its utility, it is based on oil that is a pollutant. Equally importantly, it doesn't break down easily. That leaves us a limited range of options when we are finished with any particular piece of plastic – we can either bury it, we can recycle it, or we can throw it away. Unfortunately, we seem to do more of the first option than the second option. Worst of all, we seem to do huge amounts of the third option. As a result, discarded plastic is everywhere. The article in the url below reports on a recent study that tells us how much is in our oceans:
 
"There is an awful lot of it: at least 268,940 tonnes, a new report estimates. And there may well be even more, mostly invisible to the eye, because the patches of rubbish appear to work like giant shredders, breaking plastic items down into tiny pieces which are then widely dispersed through the world's oceans with potentially devastating consequences for wildlife."
 
Large items make up a sizeable proportion of that weight ("just over 75% of the 268,940 tonnes of plastic is accounted for by items measuring more than 200mm"), but sheer numbers are also an issue:
 
"As for the number of items in the sea, the researchers calculated this to be 5.25 trillion bits of plastic of all sizes. The vast majority, some 4.8 trillion, are microplastics and these were spread across the world."
 
This is important because the study shows that the vast majority of the waste is extremely small in size:
 
"Some schemes have been proposed to try to clean up the plastic waste floating in the sea. But it is hardly practical when more than 90% of that rubbish is smaller than a grain of rice and is distributed globally, says Dr Eriksen [of the Five Gyres Institute in Los Angeles]. Much better, he believes, to prevent plastic getting into the oceans in the first place."
 
The planet is in our hands. We can either destroy it or preserve it. Either way, we have no-one to blame but ourselves.
 
Have a good weekend.
David
 
David Chandler & Bill Werther
 
Instructor Teaching and Student Study Site: http://www.sagepub.com/chandler3e/
Strategic CSR Simulation: http://www.strategiccsrsim.com/
The library of CSR Newsletters are archived at: http://strategiccsr-sage.blogspot.com/
 
 
Charting the plastic waters
December 13, 2014
The Economist
Late Edition – Final
80
 

Wednesday, May 6, 2015

Strategic CSR - Prisons

The articles in the two urls below compare maximum security prisons in the U.S. and Norway.
 
The articles are long and the issues complex but, needless to say, the two main institutions featured are like night and day. In the U.S., mental illness is routinely ignored and solitary confinement is the norm, rather than the exception. As a result, the prisoners commit awful acts against each other and, equally often, against themselves. In Norway, by contrast, the prisoners are treated with humanity in open-plan communities that were designed with rehabilitation as the goal. As such, violence in the facility is rare.
 
The issues surrounding incarceration are intensely complex and the article is clear that judging the effectiveness of one prison versus the other (in terms of recidivism, at least) is far from straightforward or conclusive. More importantly, however, I thought a series of quotes at the end of the second article spoke volumes in terms of how a society structures its core institutions (such as its legal system, it's courts, and it's approach to incarceration). Essentially, these prisons are reflections of the broader societies in which they are based. They reflect values and morals that are central to that society (consciously or subconsciously) that, I think, has ramifications far beyond the prison system. In particular, I see parallels in the issues that consistently arise in this Newsletter and around all aspects of CSR:
 
The article finishes up with a summary of a discussion with a Norwegian anthropologist (Ragnar Kristoffersen) who studies incarceration and recidivism:
 
"After nearly an hour of talking about the finer points of statistics, … Kristoffersen stopped and made a point that wasn't about statistics at all. 'You have to be aware — there's a logical type of error which is common in debating these things,' he said. "That is, you shouldn't mix two kinds of principles. The one is about: How do you fight crimes? How do you reduce recidivism? And the other is: What are the principles of humanity that you want to build your system on? They are two different questions.' He leaned back in his chair and went on. 'We like to think that treating inmates nicely, humanely, is good for the rehabilitation. And I'm not arguing against it. I'm saying two things. There are [sic] poor evidence saying that treating people nicely will keep them from committing new crimes. Very poor evidence.' He paused. 'But then again, my second point would be, … if you treat people badly, it's a reflection on yourself.' In officer-­training school, he explained, guards are taught that treating inmates humanely is something they should do not for the inmates but for themselves. The theory is that if officers are taught to be harsh, domineering and suspicious, it will ripple outward in their lives, affecting their self-­image, their families, even Norway as a whole. Kristoffersen cited a line that is usually attributed to Dostoyevsky: 'The degree of civilization in a society can be judged by entering its prisons.'"
 
Take care
David
 
David Chandler & Bill Werther
 
Instructor Teaching and Student Study Site: http://www.sagepub.com/chandler3e/
Strategic CSR Simulation: http://www.strategiccsrsim.com/
The library of CSR Newsletters are archived at: http://strategiccsr-sage.blogspot.com/
 
 
Inside America's Toughest Federal Prison
By Mark Binelli
March 29, 2015
The New York Times Magazine
Late Edition – Final
36
 
The Radical Humaneness of Norway's Halden Prison
By Jessica Benko
March 29, 2015
The New York Times Magazine
Late Edition – Final
44
 

Monday, May 4, 2015

Strategic CSR - Chipotle

The article in the url below covers a recent announcement by Chipotle:
 
"In a first for a major restaurant chain, Chipotle Mexican Grill on Monday will begin serving only food that is free of genetically engineered ingredients."
 
This is the latest step in a series of actions by various food companies to distance themselves from GMO-related foods:
 
"In 2013, Chipotle was the first restaurant chain to indicate which items contained genetically modified organisms, and a small but growing number of restaurants, largely in fine dining, also now label their menus. Grocers, too, are moving to offer consumers more products free of genetically altered ingredients. The shelves and cases in Whole Foods stores are to be free of products containing such ingredients by 2018, and Walmart is vastly expanding its selection of organic foods, which are free of genetic alteration by law."
 
The problem, of course, is whether this is possible in practice, now that GMO foods have worked themselves so far into the food-chain:
 
"Ridding the supply chain of genetically altered components is difficult. They lurk in baking powder, cornstarch and a variety of ingredients used as preservatives, coloring agents and added vitamins, as well as in commodities like canola and soy oils, corn meal and sugar."
 
In addition to identifying non-GMO foods, a significant challenge is finding the volume necessary to supply a national fast-food chain:
 
"Chipotle has run short of beef from time to time, and last December it announced that it could not supply all of its restaurants with the pork needed for carnitas after an audit found that one of its suppliers had failed to meet its standards for raising pigs. That shortage continues, cutting into the company's sales, and last week it said it probably would not be able to offer carnitas in all of its more than 1,800 restaurants until this fall."
 
In spite of these challenges, to the extent that food outlets continue to reject GMO ingredients, food producers (farmers, large agribusinesses) will face pressure to remove GMOs from the supply chain. Irrespective of the science behind these organisms, stakeholders should be active in shaping their societies and, if we do not want GMO foods, then we should be sending that signal to food companies who should stop producing them.
 
Take care
David
 
David Chandler & Bill Werther
 
Instructor Teaching and Student Study Site: http://www.sagepub.com/chandler3e/
Strategic CSR Simulation: http://www.strategiccsrsim.com/
The library of CSR Newsletters are archived at: http://strategiccsr-sage.blogspot.com/
 
 
Chipotle to Stop Serving Genetically Altered Food
By Stephanie Strom
April 27, 2015
The New York Times
Late Edition – Final
B2
 

Friday, May 1, 2015

Strategic CSR - Moral character

The article in the url below is an interview on NPR with David Brooks, who is talking about his recently published book, The Road to Character. The book is a personal journey for Brooks, but also talks about moral character in general terms, featuring pillars of history who overcame specific character flaws and are presented as models to emulate:
 
"I do think the turning point in a life toward maturity is looking inside yourself and saying, 'What's the weakness that I have that leads to behavior that I'm not proud of?'"
 
A particular focus of the book is to contrast the goal of living a life defined by moral character against what Brooks calls "the culture of the Big Me," a characteristic of society that has become more prominent in recent decades. Brooks highlights this 'culture' because it presents such a challenge to overcoming any narcissistic tendencies we have and living for and on behalf of something that is larger than the individual:
 
"My favorite statistic about this is that in 1950 the Gallup organization asked high school seniors: Are you a very important person? And in 1950, 12 percent said yes. They asked again in 2005 and it was 80 percent who said they were a very important person."
 
Although the book is not about business, per se, I played the interview in my strategy class because I thought it was instructive in terms of building the leaders we hope our students will become. In essence, I suggested my students would be better managers if they are asking themselves the questions that Brooks poses. I believe that building moral character should be a central component of a business education, as opposed to the functional factories our business schools have become.
 
Have a good weekend.
David
 
David Chandler & Bill Werther
 
Instructor Teaching and Student Study Site: http://www.sagepub.com/chandler3e/
Strategic CSR Simulation: http://www.strategiccsrsim.com/
The library of CSR Newsletters are archived at: http://strategiccsr-sage.blogspot.com/
 
 
Take It From David Brooks: Career Success 'Doesn't Make You Happy'
April 13, 2015
National Public Radio
 

Wednesday, April 29, 2015

Strategic CSR - Fast fashion

If you haven't yet seen it, John Oliver's attack on the fast fashion industry last weekend is very entertaining:
 
 
The danger with comedy, however, is that the message is over-simplified in order to deliver a clean punchline. The reality is often not so cut-and-dried, especially when you are dealing with economic development and individual self-interest. In contrast to Oliver's pessimistic view of the way that fashion companies today still struggle with "supply chain management," for example, the article in the url below indicates that there has been significant progress:
 
"Adidas terminated agreements with 13 suppliers last year for non-compliance, according to the sportswear company's 2014 sustainability report."
 
The article provides evidence that Adidas was not simply cutting-and-running at the first sign of trouble with these suppliers, but had made every effort to work with them to improve their performance on the company's audit. In spite of Adidas' best-practice approach and in the face of what it describes as "severe or repeated non-compliance," the company was forced to end the relationship in these 13 cases. But, in contrast to Oliver's simplistic tarring of the whole industry, it is clear that such rejections are becoming increasingly common:
 
"The company's global sourcing team, which works to pre-screen potential new suppliers, assessed 226 factories last year, rejecting 104. Some are rejected on a first visit, others, that have serious but correctable non-compliance issues, got three months to fix problems before being re-audited. The final rejection rate in 2014 was 10 per cent, the company, said. … Adidas also issued 65 warning letters to suppliers in 13 countries about ongoing serious non-compliance issues. Most were in Asia, where 60 per cent of its supplier factories are situated."
 
There are other elements of the debate that Oliver neglected to mention:
 
"In the wake of the Rana Plaza factory collapse in Bangladesh, trade unions, NGOs, the International Labour Organization and international buyers worked together to create the Bangladesh Accord on Fire and Building Safety. By September last year, all Adidas Group supplier factories disclosed to the Accord had been assessed for electrical, fire and building safety."
 
I highlight all of this not to pick on Oliver who, in his short run so far on TV, has brought public attention to a number of important issues (see: https://www.youtube.com/user/LastWeekTonight; his attack on FIFA is particularly good: https://www.youtube.com/watch?v=DlJEt2KU33I), but merely to emphasize the complexity of this issue and to combat the stereotypical narrative. Ethical supply chain management has made vast improvements since Nike's sweatshop days and a number of companies are adopting progressive approaches to reduce the number of incidents of abuse, without shutting off the economic opportunities such factories can provide to the developing world (which is no joke)!
 
Take care
David
 
David Chandler & Bill Werther
 
Instructor Teaching and Student Study Site: http://www.sagepub.com/chandler3e/
Strategic CSR Simulation: http://www.strategiccsrsim.com/
The library of CSR Newsletters are archived at: http://strategiccsr-sage.blogspot.com/
 
 
Adidas terminates deals with 13 suppliers in Asia over non-compliance
By Marino Donati
April 27, 2015
Supply Management
 

Monday, April 27, 2015

Strategic CSR - e-Waste

The article in the url below provides some recent statistics on the problem of e-waste (Chapter 8; Case-study: e-Waste, p544). As you might expect with the growth in the consumer electronics industry, the problem is getting worse rather than better:
 
"In 2012, 50 million tons of e-waste was generated worldwide, and with the proliferation of smartphones, smart watches and other tech gear, that number will only increase. United Nations officials estimate that the volume of e-waste generated worldwide is expected to climb by 33 percent by 2017, to 65 million tons."
 
The article contains not only statistics, however, but also some pretty horrific photos that convey the damage these toxic materials can cause unless recycled properly:
 
"About 80 percent of the e-waste produced in developed countries (North America and Europe on the top of the list) is not disposed of in situ, but shipped, most of the time illegally, to developing countries on cargo ships, where it is illegally disposed. … The southeastern town of Guiyu, China is a major e-wastebasket. CNN reported that Guiyu workers burn or process tech gear with hydrochloric acid to recover valuable metals like copper and steel. The process releases toxic heavy metals like lead, beryllium and cadmium into the environment. Hydrocarbon ashes have also polluted the air, water and soil."
 
Unfortunately, the chances of these trends reversing, particularly in developing economies, is remote at present:
 
"Disposing of a PC by sending it to a dumpster in Africa costs $2, while it would cost $20 to sustainably recycle it."
 
In the U.S., the problem appears to be lessening somewhat, although it is not clear if this is due to greater awareness or the economic downturn:
 
"According to recent data from Recon Analytics, in 2014, the average American replaced his or her mobile phone every 26.5 months, a vast improvement from every 18 months in 2007."
 
Take care
David
 
David Chandler & Bill Werther
 
Instructor Teaching and Student Study Site: http://www.sagepub.com/chandler3e/
Strategic CSR Simulation: http://www.strategiccsrsim.com/
The library of CSR Newsletters are archived at: http://strategiccsr-sage.blogspot.com/
 
 
Stunning Photos Capture Devastation Caused by Electronic Waste Across the Globe
By Lorraine Chow
April 15, 2015
Alternet
 

Friday, April 24, 2015

Strategic CSR - The politics of climate change

In light of much of the media coverage that accompanied Earth Day on Wednesday, the article in the url below offers a hopeful take on the state of the climate change debate here in the U.S.:
 
"An overwhelming majority of the American public, including half of Republicans, support government action to curb global warming, according to a poll conducted by The New York Times, Stanford University and the nonpartisan environmental research group Resources for the Future."
 
This is encouraging/surprising/hopeful because it runs counter to the prevailing narrative, which focuses largely on partisan stereotypes:
 
"Among Republicans, 48 percent say they are more likely to vote for a candidate who supports fighting climate change. … Many Republican candidates question the science of climate change or do not publicly address the issue."
 
As the article notes, hopefully this information will be picked up by pollsters and influence the debate as we ease into the 2016 presidential campaign:
 
"… the poll also found that two-thirds of Americans said they were more likely to vote for political candidates who campaign on fighting climate change. They were less likely to vote for candidates who questioned or denied the science that determined that humans caused global warming."
 
Have a good weekend.
David
 
David Chandler & Bill Werther
 
Instructor Teaching and Student Study Site: http://www.sagepub.com/chandler3e/
Strategic CSR Simulation: http://www.strategiccsrsim.com/
The library of CSR Newsletters are archived at: http://strategiccsr-sage.blogspot.com/
 
 
Most Republicans Support Government Action on Climate Change
By Coral Davenport and Marjorie Connelly
January 31, 2015
The New York Times
Late Edition – Final
A1
 

Wednesday, April 22, 2015

Strategic CSR - Climate Alarmism

The article in the url below brings a much needed sense of balance to the climate debate. It does not dismiss the notion of climate change (in fact, it acknowledges it as a fact); what it does do, however, is present a balanced view that takes into account the notion that not all of the changes that are occurring are necessarily disastrous:
 
"It is an indisputable fact that carbon emissions are rising—and faster than most scientists predicted. But many climate-change alarmists seem to claim that all climate change is worse than expected. This ignores that much of the data are actually encouraging. The latest study from the United Nations Intergovernmental Panel on Climate Change found that in the previous 15 years temperatures had risen 0.09 degrees Fahrenheit. The average of all models expected 0.8 degrees. So we're seeing about 90% less temperature rise than expected."
 
The article contains a number of specific examples:
 
"Facts like this are important because a one-sided focus on worst-case stories is a poor foundation for sound policies. Yes, Arctic sea ice is melting faster than the models expected. But models also predicted that Antarctic sea ice would decrease, yet it is increasing. Yes, sea levels are rising, but the rise is not accelerating—if anything, two recent papers, one by Chinese scientists published in the January 2014 issue of Global and Planetary Change, and the other by U.S. scientists published in the May 2013 issue of Coastal Engineering, have shown a small decline in the rate of sea-level increase."
 
The value of such an approach is that it respects empirical reality. To ignore such data is to fuel the belief that climate change is a myth propagated by people with vested interests. Instead, presenting all the facts (especially those that do not fit the prevailing narrative) encourages trust. And importantly, such disclosure is more likely to result in realistic responses (both in the market and in public policy) that might move us more quickly to where we need to go:
 
"Alarmism has encouraged the pursuit of a one-sided climate policy of trying to cut carbon emissions by subsidizing wind farms and solar panels. Yet today, according to the International Energy Agency, only about 0.4% of global energy consumption comes from solar photovoltaics and windmills. And even with exceptionally optimistic assumptions about future deployment of wind and solar, the IEA expects that these energy forms will provide a minuscule 2.2% of the world's energy by 2040. In other words, for at least the next two decades, solar and wind energy are simply expensive, feel-good measures that will have an imperceptible climate impact."
 
The conclusion (and, remember, this is an op-ed piece in The Wall Street Journal) is measured and reasonable. As a result, it stands a chance of advancing the debate, rather than inciting both sides to continue shouting past each other:
 
"In short, climate change is not worse than we thought. Some indicators are worse, but some are better. That doesn't mean global warming is not a reality or not a problem. It definitely is. But the narrative that the world's climate is changing from bad to worse is unhelpful alarmism, which prevents us from focusing on smart solutions."
 
Happy Earth Day!
David
 
David Chandler & Bill Werther
 
Instructor Teaching and Student Study Site: http://www.sagepub.com/chandler3e/
Strategic CSR Simulation: http://www.strategiccsrsim.com/
The library of CSR Newsletters are archived at: http://strategiccsr-sage.blogspot.com/
 
 
The Alarming Thing About Climate Alarmism
By Bjorn Lomborg
February 2, 2015
The Wall Street Journal
Late Edition – Final
A13
 

Monday, April 20, 2015

Strategic CSR - Philanthropy

The article in the url below is an interview with a philosopher who believes in a more radical approach to philanthropy:
 
"In his new book, The Most Good You Can Do, to be released on Tuesday, Mr. Singer argues that people should give a substantial percentage—ideally a third—of their income to charities. Mr. Singer himself has given away at least 10% of his income for 40 years; that number has gradually risen to between a quarter and a third of his income. He advocates focusing donations on the developing world."
 
The philosopher who is being interviewed, Peter Singer, is more popularly known for his work advocating for the extension of human rights to animals and the environment, but in his new book (the reason for the interview), he focuses squarely on human behavior towards our fellow human beings:
 
"A scholar with appointments at Princeton University and the University of Melbourne, Mr. Singer, 68, considers himself a utilitarian philosopher. … [His reason for writing the book is] to change how we think about what it means to be ethical. 'If you ask people what it means to live ethically, it's a 'Thou shalt not' statement: 'You shouldn't cheat' and 'You shouldn't lie,'' he says. 'But if you're fortunate enough to be part of the more affluent billion in the world, to live ethically, you have to do something to help those who are less fortunate, who just happened to have been born in impoverished countries, and that's part of living an ethical life.'"
 
His argument, in essence, is that any $1 donated should be directed towards supporting action that generates the most benefit for the greatest number of people. As a result, he thinks we should turn our attention away from many of the 'philanthropic causes' currently supported in the West towards helping those in greatest need:
 
"Peter Singer would sooner donate a kidney than sponsor a concert hall. So when entertainment mogul David Geffen gave $100 million in early March for the renovation of Avery Fisher Hall at Lincoln Center in New York—it will soon be renamed David Geffen Hall—Mr. Singer questioned why people thought he was doing so much good. … Mr. Singer says that he doesn't understand 'how anyone could think that giving to the renovation of a concert hall that could impact the lives of generally well-off people living in Manhattan and well-off tourists that come to New York could be the best thing that you could do with $100 million.' He notes, for example, that a donation of less than $100 could restore sight to someone who is blind."
 
On the face of it, it is hard to argue with the sentiment that the ability to restore someone's sight should outweigh the opportunity to listen to the opera (which, after all, most people in developed economies choose not to do). My sense, however, is that Singer is missing the point. Rather than focus on the intention behind the donation, it is essential to focus on the delivery of that aid. In other words, what is the most effective way of harnessing the desire to restore sight and then achieving the desired outcome? This speaks to the larger issue of philanthropy and, in this case, developmental aid – in essence, how can we ensure that the $100 that I might donate goes towards restoring the sight of someone in need? In reality, we know that corruption and inefficiencies are a big part of NGO aid delivery. Also, many suspect that progress sponsored by others is less sustainable than progress achieved through personal effort. In attempting to overcome these concerns and ensuring more optimal outcomes, an important question revolves around the role of market forces. From what is covered in the interview, however, Singer appears to ignore these questions in place of emphasizing individual guilt. It is effective in capturing attention for his ideas (and, presumably, selling more books). I am less convinced that it will help bring about the goals he advocates, which we can all agree are worthwhile.
 
Take care
David
 
David Chandler & Bill Werther
 
Instructor Teaching and Student Study Site: http://www.sagepub.com/chandler3e/
Strategic CSR Simulation: http://www.strategiccsrsim.com/
The library of CSR Newsletters are archived at: http://strategiccsr-sage.blogspot.com/
 
 
Weekend Confidential: Peter Singer
By Alexandra Wolfe
April 4-5, 2015
The Wall Street Journal
Late Edition – Final
C11
 

Friday, April 17, 2015

Strategic CSR - Edible packaging

The article in the url below contains an innovative solution to the problem of excess waste:
"Diners at KFC restaurants throughout Britain soon will be able to have their coffee — and eat the cup, too. … The new cup will debut about the same time as KFC restaurants plan to introduce Seattle's Best Coffee, part of Starbucks."
 
The packaging that KFC will introduce in Britain is not going to taste of broccoli, however:
 
"KFC, one of the chains operated by Yum Brands, is going to test an edible cup made from a wafer coated in sugar paper and lined with a heat-resistant white chocolate."
 
It seems KFC is jumping on something of a bandwagon:
 
"Other companies have been offering similar items. Lavazza, the Italian coffee brand, had edible cookie cups, while Coolhaus sells its ice cream sandwiches in potato starch wrappers printed with inks made from vegetables. In New York, Dominique Ansel Bakery offers a chocolate-chip shot, with organic milk poured into a cookie cup."
 
I guess, for every problem solved there is another problem created. From the description of its ingredients, it sounds like any reduction in waste will be accompanied by an increase in obesity-related health problems.
 
Have a good weekend.
David
 
David Chandler & Bill Werther
 
Instructor Teaching and Student Study Site: http://www.sagepub.com/chandler3e/
Strategic CSR Simulation: http://www.strategiccsrsim.com/
The library of CSR Newsletters are archived at: http://strategiccsr-sage.blogspot.com/
 
 
The Fried Chicken Is O.K., but the Cups Are Delicious
By Stephanie Strom
February 26, 2015
The New York Times
Late Edition – Final
B3
 

Wednesday, April 15, 2015

Strategic CSR - Coca-Cola

Access to fresh water is becoming an increasingly essential issue for societies worldwide. As the article in the first url below notes, for example:
 
"The World Economic Forum (WEF) … recently named 'water crises' as their number one 2015 global financial risk in terms of impact, and their eighth highest risk in terms of likelihood. Specifically, the WEF report warns of 'a significant decline in the available quality and quantity of freshwater, resulting in harmful effects on human health and/or economic activity' and of a 'deterioration in quality of air, soil and water from ambient concentrations of pollutants and other activities and processes.'"
 
Further:

"Water use is growing at twice the pace of population growth. By 2025, two-thirds of the world population will be experiencing water 'stress conditions.' [And] One in nine people lacks access to improved sources of drinking water and one in three lacks improved sources of water sanitation. This causes around 3.5 million deaths each year."
 
Because supplies of fresh water are an issue for societies, that makes it a particularly sensitive topic for any company that uses large amounts of water. As the article in the second url below notes, Coca-Cola has come under particular attention for the massive amounts of water it uses to make its signature product:
 
"In 2012, Coke sold more than 1.8 billion servings a day – one for every four people on earth. … Over 79 billion gallons of water are required annually to dilute Coke syrup, and an additional eight trillion gallons are needed for other aspects of production, including the manufacturing of bottles. In 2012, Coke used more water than close to a quarter of the world's population."
 
Not only is Coca-Cola increasing our healthcare costs, therefore, it is also reducing our access to something that is essential for life. In other words, if we continue to consume water at current rates, at some point we will have to choose between fresh drinking water and Coca-Cola (and any of the other water intensive products we rely on every day, such as cotton, for example). The smart, progressive companies have already begun to consider ways by which they can reduce their reliance on fresh water.
 
Take care
David
 
David Chandler & Bill Werther
 
Instructor Teaching and Student Study Site: http://www.sagepub.com/chandler3e/
Strategic CSR Simulation: http://www.strategiccsrsim.com/
The library of CSR Newsletters are archived at: http://strategiccsr-sage.blogspot.com/
 
 
Water's a Big Deal, but How's an Investor to Respond?
By Garvin Jabusch
March 3, 2015
Green Money
 
Citizen Coke
By Beth Macy
January 4, 2015
The New York Times Book Review
Late Edition – Final
11
 

Monday, April 13, 2015

Strategic CSR - Moral licensing

The article in the url below builds on the concept of conspicuous virtue (see Strategic CSR – Conspicuous virtue) to provide additional evidence of the complexities of the human mind. In particular, it demonstrates how difficult it can be to persuade humans to act in their own actual interests (as opposed to their perceived interests), which is particularly relevant when it comes to solving our environmental problems:
 
"A recent [academic study] … finds that shoppers who bring their own bags when they buy groceries like to reward themselves for it. For two years the authors tracked transactions at a supermarket in America. Perhaps unsurprisingly, shoppers who brought their own bags bought more green products than those who used the store's bags. But the eco-shoppers were also more likely to buy sweets, ice cream and crisps."
 
According to the article, psychologists refer to this effect as "moral licensing," which is defined as "the tendency to indulge yourself for doing something virtuous." Although this might not seem something we should worry too much about, other studies indicate the issue has broader ramifications:
 
"A study from 2011 on water-conservation in Massachusetts shows how. In the experiment, some 150 apartments were divided into two groups. Half received water-saving tips and weekly estimates of their usage; the other half served as a control. The households that were urged to use less water did so: their consumption fell by an average of 6% compared with the control group. The hitch was that their electricity consumption rose by 5.6%. The moral licensing was so strong, in other words, that it more or less outweighed the original act of virtue."
 
After citing additional evidence to suggest that people are more likely to make 'virtuous' choices as a way to punish themselves, the article concludes that:
 
"The best way to get people to do good, it seems, is to make them feel bad about themselves."
 
Take care
David
 
David Chandler & Bill Werther
 
Instructor Teaching and Student Study Site: http://www.sagepub.com/chandler3e/
Strategic CSR Simulation: http://www.strategiccsrsim.com/
The library of CSR Newsletters are archived at: http://strategiccsr-sage.blogspot.com/


Eco-waverers
February 28, 2015
The Economist
Late Edition – Final
67