Strategic CSR - BlackRock

The article in the url below reveals the challenges for organizations responding to multiple stakeholders with competing interests:

"BlackRock Inc. has lost a mandate worth €14.5 billion ($17 billion) with one of the largest pension funds in the Netherlands, amid concerns the world's biggest money manager isn't acting in the best interests of clients when it comes to climate risk. PFZW, which oversees about €250 billion ($290 billion), will instead rely on Robeco, Man Numeric, Acadian, Lazard, Schroders, M&G, UBS and PGGM to oversee an equity portfolio worth some €50 billion, a spokesperson for the pensions manager told Bloomberg on Wednesday."

The article suggests that, having been so outspoken on climate change in prior years, BlackRock has now created this conflict due to its willingness to retreat on previously umambiguous positions:

"PFZW is the latest asset owner to voice discontent with US money managers that have retreated from climate alliances amid an all-out assault on net zero policies by the White House. PME, another Dutch pensions manager, told Bloomberg earlier this year it's reviewing its mandate with BlackRock, valued at some €5 billion."

And, of course, each of BlackRock's stakeholders has its own set of stakeholders that are helping shape decisions and priorities in a ripple effect:

"Dutch pension funds have been under pressure from a local nonprofit, Fossil Free Netherlands, to end their ties with BlackRock. The 'Break with BlackRock' initiative asked savers to urge their pension funds to act, and thousands have done so, according to the nonprofit's website."

Inauthentic values that are applied inconsistently can earn short-term gains at the expense of long-term credibility, and with very real costs:

"PME's senior strategist for responsible investing, Daan Spaargaren, told Bloomberg the €57 billion pension manager's concern was that BlackRock wasn't doing enough to distance itself from the anti-climate rhetoric of the administration of US President Donald Trump. BlackRock and other US asset managers 'aren't condemning what Trump is doing and how he is operating and how he is handling issues like climate change and demolishing the judiciary,' Spaargaren said at the time. 'We are worried about that.'"

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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BlackRock Loses $17 Billion Mandate at Dutch Pension Fund PFZW

By Frances Schwartzkopff

September 2, 2025

Bloomberg

https://www.bloomberg.com/news/articles/2025-09-03/blackrock-dropped-by-pension-fund-pfzw-after-review-nrc-says

 

Strategic CSR - Fur

In class, when I want to demonstrate to students how most things (other than the hard sciences) are social constructs and society's values can shift, relatively quickly, I use the example of fur. 50-60 years ago, I argue, wearing fur was a sign of status; today it is unacceptable, but who knows what society will think about fur in the future. After all, we have used parts of animals for all of our existence – there is nothing objectively 'wrong' about wearing fur. What society thinks about wearing fur is impactful, however, especially if you are a company producing fur or using it to make clothes. I find that trying to understand how society changes its opinion so dramatically (and occasionally rapidly) on such issues is extremely challenging. All of a sudden, or over a long period of time, we stop believing one thing and start believing something else. And logic often has nothing to do with it.

Anyway, the article in the url below suggests I need to update my example as, apparently, fur is back:

"A few weeks before the Manhattan Vintage Show opened this month, its owner, Amy Abrams, was predicting a "fur-a-palooza," with vendors fielding an uptick in demand for fur. … The racks of fox, mink and Mongolian at booths, including the Igala NYC and the Jennie Walker Archive, which was selling a sable coat for $2,495, were swarmed by shoppers, many already wearing fur."

The shift seems sudden, and turns back a slide away from fur that played out over decades:

"It happened slowly — Calvin Klein banned fur in 1994; Ralph Lauren in 2006 — and then all at once. After Gucci announced in 2017 that it would eliminate real fur in its collections, the big luxury fashion houses followed: Michael Kors, Burberry, Prada, Versace, Tom Ford, Marc Jacobs and more. Since introducing her label in 2001, Stella McCartney has been a fiercely vocal animal and cruelty-free advocate. Fendi, which was founded in 1925 as a fur and leather shop in Rome and is owned by LVMH, remains one of the last luxury holdouts."

As a result, the "fur industry" may not be positioned for the revival:

"According to the Fur Free Alliance, global fur production is down 85 percent in the last decade. Roughly 20 million animals were killed as part of the fur trade in 2023 versus 140 million in 2014. The number of fur farms in the European Union fell to 1,088 in 2023 from 4,350 in 2018."

The moral compromise that many appear to be making is that they are wearing "pre-owned" fur clothes, which aligns with the recent rise in popularity of thrift shopping:

"For years, in much of the United States and Europe, wearing real fur has felt taboo. Except, suddenly, some people don't seem to care — especially if the wearer can assert the mantle of 'vintage,' as no animals were freshly killed and upcycling old clothes is more virtuous than buying new."

Some are even presenting vintage as the sustainable option:

"'I think people are really misunderstanding vintage fur versus faux fur,' [Carly Mark, the designer of the fashion line/art project Puppets and Puppets] said. Vintage, in her eyes, is the superior sustainable option. She cited plastics and microplastics in faux fur fibers, often made from petroleum-based materials, as 'worse for the environment in the big picture.'"

Understandably, animal rights activists are not impressed:

"Animal rights groups see vintage fur as a dangerous trend. "If someone sees a person wearing used fur and they don't know it's used, they could very well go buy new fur," said PJ Smith, the director of fashion policy for the Humane Society of the United States."

Take care

David 

David Chandler

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

© Sage Publications, 2023

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

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

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

Wearing It Proudly, and Pre-Owned

By Jessica Iredale

February 16, 2025

The New York Times

Late Edition – Final

ST11

https://www.nytimes.com/2025/02/16/style/vintage-fur-trend.html

 

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  

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

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

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 - Water + A.I.

The article in the url below does a good job of quantifying the environmental impact (in terms of water) of using A.I.:

"You might not realize it, but every time you ask an AI chatbot a question, a data center is forced to guzzle water. To be precise, a data center requires about a 500-milliliter bottle of water to generate 10 to 50 medium-length GPT-3 responses, according to one analysis. Generating an image uses substantially more water than text, and a video uses dramatically more than an image."

 

The article also does a good job of explaining why the water cost is so high:

 

"Data centers need a way to cool their servers to prevent them from overheating. One of the main methods of doing this is through cooling towers that evaporate water. Data centers also consume water indirectly through electricity generation, since the power plants that feed them energy also need to be cooled."

Take care

David

David Chandler

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

© Sage Publications, 2023

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

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

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

Thirsty AI Creates Another Climate Risk

By Michelle Ma

May 8, 2025

Bloomberg

https://www.bloomberg.com/news/newsletters/2025-05-08/thirsty-ai-creates-another-climate-risk

 

Strategic CSR - Gambling

The article in the url below contains an interesting statistic for all those of you who are fans of football's Premier League:

"In the season that kicked off on Friday, 11 out of 20 clubs feature the names of gambling companies on their uniforms, a testament to the league's growing dependence on the industry."

Quite the statement about the influence of gambling on the sport, how quickly it has grown, and what it says about our society.

Take care

David

David Chandler

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

© Sage Publications, 2023

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

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

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

How Gambling Sponsors Took Over the Premier League

By Aaron Gordon and Elena Mejia

August 14, 2025

Bloomberg

https://www.bloomberg.com/graphics/2025-premier-league-football-kit-sponsors/

 

Strategic CSR - Plastics

Over the summer, you may have read about the breakdown in talks that were intended to produce a global treaty on how to minimize plastics waste. The unbridgeable gap was formed between opponents of plastic, who wanted to ban the most toxic chemicals that cause human harm, and supporters of plastic, who wanted to focus on better waste collection and recycling. Doing both does not appear to have been an option considered by the participants, despite the urgency, as reported in the article in the url below:

"The Organization for Economic Cooperation and Development estimates that, without global action to curb plastic pollution, plastic production will grow by 70 percent between 2020 and 2040, totaling 736 million tons a year by the end of that period. Overall as of 2020, less than 10 percent of global plastic waste was estimated to have been recycled, with the rest disposed of in landfills, incinerated or released into the environment."

The article covers many of the details; it also contains a photo that I found particularly striking (and depressing). See if you can spot where the edges of the boats end and the 'water' begins (with 'water' really being just a sea of floating plastic):

I wonder if that is our future, coming to a waterway near you. The tagline accompanying the image in the article is revealing:

"Boaters collect recyclable plastic from the polluted Citarum River in West Java, Indonesia, last year. The United States has turned against production caps on plastic."

Take care

David

David Chandler

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

© Sage Publications, 2023

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

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

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

Plastic Talks Collapse As Oil States Oppose Broad Pollution Treaty

By Hiroko Tabuchi

August 16, 2025

The New York Times

Late Edition – Final

A8

https://www.nytimes.com/2025/08/15/climate/plastic-pollution-treaty-talks-collapse.html

 

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.

Hi everyone,

Welcome back to the newsletter, and 'Happy Fall/Autumn' to you all.

I wanted to let you know that, over the summer, my administrative responsibilities changed, which has resulted in a significant increase in my workload and shift in my academic/career priorities.

The future of the newsletters is not clear to me at this time, but I will endeavor to continue to send them, while they remain in demand, even if their frequency is impacted.

As always, your comments and ideas are welcome.

I hope you all have a great semester.

Take care

David

________________________________________________

David Chandler, Ph.D.

Professor, Management

Associate Dean, Executive Programs

University of Colorado Denver Business School

 

  

 

Strategic CSR - Satellites

This is the last CSR Newsletter of the Spring semester. Have a great summer and I will see you in the Fall!

Here is a fascinating quote that I saw, last week, from the article in the url below:

"Decommissioned satellites, which vaporize when they plunge through the atmosphere, are threatening the Earth's protective ozone layer. Last year, about 1,000 of them reentered, or about three a day. By 2035, the daily rate is estimated to rise as high as 50."

Amazing – 1,000 satellites re-entering our atmosphere every year; projected to rise to 20,000 a year, in the next 10 years. The article appeared the day after the latest Starlink satellite launch by SpaceX. Such sentiments always remind me of an image from the Pixar movie, Wall-e (released in 2007, the same year as the first iPhone) – one of the most prescient movies about the future of humanity that I have seen:

 

Hope you all have a good summer.

David

David Chandler

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

© Sage Publications, 2023

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

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

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

Thousands of Falling Satellites Put the Atmosphere at Risk

By Eric Roston, Sana Pashankar, Hayley Warren, and Jin Wu

May 1, 2025

Bloomberg Green

https://www.bloomberg.com/graphics/2025-space-orbit-satellites-pollution/

 

Strategic CSR - ICEs

Here is an interesting quote from the article in the url below about internal combustion engines (ICEs):

"About three-quarters of the energy produced by a typical combustion engine is lost through heat and released through a car's exhaust system. But what if some of that heat could be captured and turned into electricity?"

I had no idea ICEs were so inefficient, which must mean three-quarters of the fuel that we put into our cars is essentially wasted. Capturing some of that excess, and reducing the waste, seems like a worthwhile project. Specifically:

"Converting even a fraction of the waste heat produced by such vehicles into electricity could reduce fuel consumption and battery usage … leading to lower carbon-dioxide emissions."

Fortunately, some smart people are looking into that possibility:

"In a recent study, researchers created a prototype of a device, called a thermoelectric generator. … When inserted into an exhaust pipe, the device can turn waste heat into a continuous source of electricity for vehicles such as cars, helicopters and unmanned aerial vehicles, making them more efficient, the researchers say. … The study was partly funded by the U.S. Army with unmanned aerial vehicles in mind, but the researchers believe the device has the potential to be used much more broadly. That's because the thermoelectric generator can be installed into tailpipes of different vehicles without changing how they operate."

Take care

David

David Chandler

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

© Sage Publications, 2023

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

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

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

The Heat Coming Out of Your Car's Tailpipe? Some Can Be Turned Into Electricity

By Lisa Ward

April 21, 2025

The Wall Street Journal, Journal Report: Alternative Energy

Late Edition – Final

R2

https://www.wsj.com/business/energy-oil/car-tailpipe-electricity-eaab01f2

 

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  

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

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

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/

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

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 - Delaware

Within corporate tax law in the U.S., the article in the url below reports there is currently a struggle to remain the state of choice for incorporation:

"Delaware is fighting to maintain its status as the country's corporate capital. … Delaware has long reigned supreme as a home for companies' legal residence, or where they incorporate their businesses. More than two-thirds of Fortune 500 companies are incorporated in the state."

The reason for the threat to Delaware's crown is, apparently, companies not appreciating the application of the law:

"Executives of public companies have expressed frustration with the Delaware Court of Chancery, often following legal rulings that didn't go their way. Officials elsewhere are taking note."

From the states' point of view, of course, the goal is to maximize incorporation fees through a race to the bottom – appeasing corporate interests by further undermining the concept of shareholder democracy:

"Delaware Gov. Matt Meyer has signed a law that will make it harder for shareholders to sue companies, an attempt to quell threats by U.S. corporations to move their legal residences to other states. … Texas introduced a new court system for corporate matters last year. Musk is in the process of reincorporating Tesla to the Lone Star State from Delaware. Meta is considering moving its incorporation to Texas. Hedge-fund manager Bill Ackman tweeted that his Pershing Square is looking to leave Delaware and incorporate in Nevada or Texas."

Given the emphasis placed on finding the most lenient legal environment, the state of choice has varied over the years:

"A century ago, New Jersey was the incorporation capital of the country. The state lost the title, and Meyer said he doesn't want Delaware facing a similar fate because of complacency."

Although why states care so much about levels of incorporation is unclear:

"Even if companies move to incorporate and list stock in Texas, the benefits to the state beyond bragging rights are less clear. Moving a company's incorporation isn't the same as moving its headquarters; in practical terms it means the business rents a P.O. box in the state, not an office building."

More fundamentally, why any company should care that much about shareholder interests is somewhat baffling. It is as if Ford was 'owned' by everyone who purchased one of its cars, whether they bought it directly from the company through one of their dealerships, or indirectly from a prior owner. For Ford, issuing shares to raise capital is very similar to 'issuing' cars to generate revenue. In both cases, the firm is 'producing' something, with little associated rights, that can be sold initially for money, and then traded on a third-party exchange.

Take care

David

David Chandler

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

© Sage Publications, 2023

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

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

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

Delaware Punches Back at Texas Efforts to Lure Away Companies

By Corrie Driebusch

March 26, 2025

The Wall Street Journal

https://www.wsj.com/business/delaware-punches-back-at-texas-efforts-to-lure-away-companies-73a95d7a

 

Strategic CSR - Earth Day

Ahead of Earth Day on Tuesday, some thoughts on recent developments around ESG.

When I criticize various sustainability policies or proposals, the response I often get is along the lines of 'well, at least we are trying.' To which I reply along the lines of 'well, good intentions do not substitute for good outcomes.' My general thought is that, kidding ourselves we are making progress is no help to anyone – if anything, it lulls everyone into a false sense of security through the illusion of progress, and that is a problem because it ensures even less progress than if we were sufficiently self-aware to know we were not really moving the needle.

The evolution of the resistance to ESG in the U.S., as reported in the article in the url below, demonstrates the danger of relying on good intentions. ESG, from the beginning, was clearly based on false assumptions and inconsistent logic, topped off with the desire to start making money as soon as possible. This could have continued for a while, except that the fragile intellectual foundation (characterized by incomplete definitions and inconsistent measurement) allowed ideological opponents to pick it apart. If ESG had rested on a sounder foundation, the ridiculous ideological attacks against it would have fallen flat. But, because ESG is inherently flawed, it was easy for those opposed to cherry-pick the flaws that best matched their arguments, to make their pushback sound more legitimate, even in the face of economic gain:

"Climate investors have warned the political right is winning a war against ESG investing. A recent poll shows American support for renewable energy and electric vehicles is fading. And yet, President Joe Biden's signature climate law is in many ways benefiting conservative red states the most."

I have said this many times, but I'll repeat for good measure – in my opinion, as a society, we are not serious about tackling climate change. In fact, I would go as far as to say that we have not even begun a conversation about planning how we might be serious at some distant point – as noted by Tad DeLay, quoted in the article in the second url below:

"Just by driving to get groceries you emit carbon dioxide … a fifth of [which] … will still be in the air in 500,000 years, killing species that haven't yet evolved."

You would think we would take all of this a little bit more seriously. All you have to do is realize that during the COVID lockdown, when none of us were going anywhere and the global economy had virtually shuttered, global carbon emissions dropped a mere 6% (see Strategic CSR – COVID-19). 6%! And we think we can get to net zero by 2050. It would be laughable if the implications of our self-delusion were not so serious.

Tackling climate change and creating the conditions for a more sustainable economic system will always require plenty of unconditional cheerleaders, not to mention brilliant minds who will innovate and provide encouragement along the way. It will also require those who can think critically about what we are doing, and work to prevent us from lulling into the false sense of security that is just as big a barrier to progress as sticking our collective heads in the sand.

Take care

David

David Chandler

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

© Sage Publications, 2023

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

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

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

Climate Investors Warn the Right Is Winning the Way on ESG

By Alastair Marsh

February 28, 2024

Bloomberg

https://www.bloomberg.com/news/articles/2024-02-28/climate-investors-warn-the-right-is-winning-the-war-on-esg

'What if there just is no solution?' How we are all in denial about the climate crisis

By Maya Goodfellow

June 20, 2024

The Guardian

https://www.theguardian.com/environment/article/2024/jun/20/what-if-there-just-is-no-solution-how-we-are-all-in-denial-about-the-climate-crisis

 

Strategic CSR - Heineken

The ad in the url below was released by Heineken a few years ago, although I was only introduced to it recently:

https://youtu.be/etIqln7vT4w?si=sNsrg6zzOMcm3N7Q

My sense is that we could do with a lot more of that but, the way things seem to be going, are likely to get less.

Take care

David

David Chandler

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

© Sage Publications, 2023

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

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

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

 

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)

© Sage Publications, 2023

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

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

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

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