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.

Thursday, May 1, 2025

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
© 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
 
Posted by David Chandler at 9:06 PM

Monday, April 28, 2025

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
© 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
 
Posted by David Chandler at 10:13 PM

Wednesday, April 23, 2025

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
© 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
 
Posted by David Chandler at 7:15 AM

Saturday, April 19, 2025

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
© 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

'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
 
Posted by David Chandler at 8:00 AM

Tuesday, April 15, 2025

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:


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
© 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/
 
Posted by David Chandler at 7:28 AM

Thursday, April 10, 2025

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
© 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
 
Posted by David Chandler at 6:27 AM

Tuesday, April 8, 2025

Strategic CSR - Energy

As the article in the url below starts off by saying, "Something strange is happening with utilities." Specifically:

"For decades, electricity usage in the US has been mostly flat. Even with more people starting to use more power for more things, much of that has been offset as buildings, factories and appliances become more efficient."

But suddenly that is no longer the case and, apparently, the utilities have been caught off-guard:

"Big tech companies need lots of electricity, for data centers and especially for artificial intelligence. Homes are using more electricity for heating and cooling. Factories need more electricity to shift away from fossil fuels."

As a result, ironically:

"… when faced with this sudden increase of load on the power grid, utilities are going to rely heavily on natural gas, and even coal."

This is not a minor or temporary shift, but something more fundamental:

"[Research predicts] demand to for electricity to climb almost 16% over the next five years, more than triple his estimate from a year ago. Utilities are expecting customers to need as much as 128 gigawatts of new capacity in 2029."

And, as is often the case when societies are asked to choose between economic growth and sustainability, it is the switch away from fossil fuels that is the primary casualty:

"That's really going to disrupt the green transition. Power providers that have made pledges to cut back or eliminate carbon emissions are now starting to reverse course. Duke Energy Corp. is extending the life of its largest coal-fired power plant, abandoning its plan to exit coal by 2035. FirstEnergy also will operate a pair of coal plants, stepping back from an earlier pledge to stop using the fuel by 2030. And energy companies in the US are planning new gas plants at the fastest pace in years."

Take care
David

David Chandler
© 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/


Coal-Black Swans Threaten the Green Transition
By Will Wade
December 17, 2024
Bloomberg

Posted by David Chandler at 7:06 AM

Thursday, April 3, 2025

Strategic CSR - Secondhand

The article in the first url below makes the case that secondhand clothes no longer carry the stigma they had in the past:

"Last year, [shoppers worldwide] spent $227 billion on secondhand apparel, accounting for nearly 10% of all global spending on clothes."

As well as "a growing online ecosystem for buying used, including eBay, ThredUp, Poshmark and other sites where customers can directly sell and purchase items," more mainstream retail brands are also beginning to incorporate "online resale offerings" into their range of clothes offered (such as "outdoor apparel maker Patagonia Inc and sneaker seller AllBirds Inc"). Such innovations are fueling the trend, which is anticipated to grow:

"Global secondhand fashion sales, which rose 15% in 2024 from the previous year, are projected to surpass $250 billion in 2025 and then exceed $300 billion in 2027."

Part of this trend reflects a rejection, by some, of the fast fashion business model, as noted in the article in the second url below, which also contains a visualization of the massive amounts of waste the industry produces (see also Strategic CSR – Slow(er) fashion):

"The U.S. throws away up to 11.3 million tons of textile waste each year – around 2,150 pieces of clothing each second."

Take care
David

David Chandler
© 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/


Why Buying Thrift Clothes Is Getting More Appealing
By Zahra Hirji
March 19, 2025
Bloomberg

The Global Glut of Clothing Is an Environmental Crisis
By Rachael Dottle and Jackie Gu
Febaru 23, 2022
Bloomberg
 
Posted by David Chandler at 9:38 PM

Tuesday, April 1, 2025

Strategic CSR - Apologies

The article in the url below demonstrates the value of transparency in business, combined with authenticity:

"Andrew Benin wrote the email in a few hours and didn't bother proofreading or showing a draft to anyone before he sent it to 35,544 people. He was unusually eager to say the most dreaded word in business: sorry."

Specifically:

"Mr. Benin is the chief executive of Graza, a startup that has turned squeezable bottles of extra-virgin olive oil into hot kitchen staples, delighting people who never knew they could have strong feelings about healthy liquid fat. But some of those customers were disappointed when their holiday gifts arrived late and badly packaged, and Mr. Benin felt that he should apologize. To all of them. So he contacted everyone who had ordered Graza's olive oils in the previous 60 days to ask for a second chance."

There is something powerful in apologizing, voluntarily and unreservedly. It reminded me of a crisis communications seminar I sat through recently. A valued part of the event for participants was hearing from guest speakers in the industry who, let's say, are paid to make problems disappear. The lasting impression for me, though, was that the professionals do this via distraction – they are playing a game. That is, the goal is to wait out the media, make sure they do not get the information they are seeking; delay long enough until the next crisis comes along and the journalists move on to that story. Concepts such as right/wrong, fault and accountability seemed irrelevant – don't lie, but don't say anything interesting, either.

In contrast, I favor standing for something, for being 'interesting' – putting your values into action to achieve an outcome that, from your perspective, makes the situation better than it otherwise would have been. To me (and to anyone seeking to implement strategic CSR), that is the way to secure lasting, trust-based relations with key stakeholders, who will be more likely to remain loyal, in return. My sense is that Mr. Benin sees business that way, too:

"The mea culpa from a one-year-old company with the subject line 'Learning from our mistakes' was just about the opposite of a typical corporate response. It explained in plain English and candid detail what went wrong and why. It took accountability for those errors and offered a discount on future orders. It was raw, transparent about uncertainty and messy with typos and misspellings. It was also oddly entertaining and strangely charming."

The result:

"Mr. Benin watched the replies come back within minutes. First one, then another, then 866 more. 'Thanks for your honesty,' wrote one. 'I wish more businesses did the same.' 'I won't be using the discount,' wrote another, 'but I will be reordering.' 'These messages go a long way,' wrote someone else. … The average open rate of Graza's regular marketing emails was already exceptionally high at 58%. This one reached 78%."

The key takeaway for anyone looking to lead in business, in my opinion (with a note to those who would sooner rely on A.I. to bail them out – the 'average of the internet' is usually not very impressive):

"'All you need to do is dig deep, reflect on all the things in marketing and brand communication that piss you off, and do the exact opposite,' Mr. Benin said. Corporate statements about falling short and vowing to do better are so formulaic that most of these apologies could be written by ChatGPT."

Take care
David

David Chandler
© 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/


What Happened When the Olive-Oil Startup Apologized
By Ben Cohen
January 12, 2023
The Wall Street Journal
 
Posted by David Chandler at 1:05 AM

Friday, March 28, 2025

Strategic CSR - Buzzwords

I am increasingly seeing headlines such as this one, which appeared recently in the article in the url below:

"Don't Call it ESG, Call it Resilience."

In particular:

"There's a new buzzword in sustainability circles when it comes to investing in renewables and clean technologies: resilience."

The pertinent term here, I think, is "buzzword," which implies exactly the right amount of thought that has gone into this latest phase of the environmental conversation. To me, it feels more like a reaction to what suddenly cannot be said (i.e., ESG) than reflecting any serious attempt to chart a measured and coordinated approach to tackling climate change:

"'In the beginning you had 'social' and 'responsible investing' and then it became 'ethical investing' and then a whole host of other things have sort of emerged from that,' said Jason Britton, chief product officer at asset manager Sphere. ''Sustainability' was a buzzword for a really long time then 'regenerative' and 'triple bottom line,'' he said. 'This is an industry's effort to describe an incredibly complex thing in a series of one or two marketing words. 'Resilience' is the bingo buzzword of the day.'"

As a result, we should expect a demise similar to all the other acronyms or "buzzwords" that have come and gone, whether CSR, SRI, ESG, sustainability, green, offsets, and so on. In my world, words matter because, when ill thought through, they reveal underlying biases and ignorance, or simply an attempt to greenwash (to borrow another fluffy phrase). The sooner we realize that trends or buzzwords are not the way to tackle a fundamental and existential threat to humanity (see Strategic CSR – Jeans), the greater the chance we will have to do something serious about it:

"For investors, 'resilience' is the new catch-all term for investments aimed at mitigating the effects of climate change on their businesses. Often seen alongside terms like 'adaptation finance' or 'transition finance,' ESG professionals are using the word increasingly in marketing and communications related to their investments."

The sentiment 'moving deck chairs around on the Titanic' comes to mind. Of course, climate change is not waiting while we decide whether we are serious.

Take care
David

David Chandler
© 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/


Don't Call it ESG, Call it Resilience
By Yusuf Khan
February 28, 2025
The Wall Street Journal
 
Posted by David Chandler at 5:40 AM

Tuesday, March 25, 2025

Strategic CSR - Mining

The article in the url below makes the case for reviving mining in the U.S. for the key raw materials required to transition to a more sustainable energy industry:

"Although America has abundant deposits of many of the critical minerals that go into our vehicles, electronics and buildings, these materials are mostly mined abroad in poorer nations where labor is cheap (or worse, workers are enslaved) and environmental laws are more permissive, rarely enforced or easily sidestepped with bribes."

The argument is that, by outsourcing much of this extraction, we currently focus on poorer societies where the materials can be mined more cheaply, primarily because the standards to do so are so low:

"The decline of domestic mining means that Americans are outsourcing the environmental and social costs of our inexpensive consumer goods to lower-income nations. More than 70 percent of the world's cobalt, sometimes called the blood diamond of electric vehicle batteries, comes from the Democratic Republic of Congo, where child labor and sexual violence are rampant in mines. About half of the world's nickel, another key ingredient in electric vehicle batteries, comes from mines in Indonesia, some of which have wiped out almost 200,000 acres of rainforest amid allegations of operating illegally on Indigenous land."

So, mining domestically would introduce higher standards, by definition; it is also required so that increased supply can match growing demand:

"A United Nations study found that meeting international climate goals by 2030 could require building as many as 80 copper mines, 70 lithium mines and 70 nickel mines to supply the materials for electric vehicles, solar panels and a host of other low-carbon technologies."

And, the article advocates for a consumer-led component to the economic equation, with individual customers willing to pay the (relatively) small premium that domestic production would generate:

"Many of us are already paying more for responsibly sourced goods, such as chocolate and coffee. We should demand the same for our smartphones and batteries. … Although mining will never be zero-impact, it has the potential to be fair and responsible."

Take care
David

David Chandler
© 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/


This Dirty Industry Is Better Off Operating in America
By Stephen Lezak
July 28, 2024
The New York Times
Late Edition – Final
SR8
 
Posted by David Chandler at 8:14 PM

Thursday, March 20, 2025

Strategic CSR - Time

This short video presents a dramatic, humbling, and emotional analysis of human perceptions of time (see also Strategic CSR – The Long Now). It places our lives in the context of the history of the universe (as we know it) in a way that provides insight and perspective:

The takeaway is grounding in that it challenges us to make the most of the brief moment we have been given, together with the implicit demand that we leave things better than we found them.

Take care
David

David Chandler
© 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/

Posted by David Chandler at 2:38 PM

Wednesday, March 19, 2025

Strategic CSR - Mining

The article in the url below provides an interesting perspective on the extraction industries – especially comparing the raw materials of the past with those of the present and future:

"The mining industry is currently one of the most significant contributors to planet-warming emissions – but it's on track to become one of the most important sectors for a net-zero future."

A feature of the mining of the future is that overall demand will increase (e.g., "Annual demand for energy-transition metals will grow fivefold by mid-century from 2023 levels"), but the amount of materials extracted from the ground is predicted to decrease:

"Specifically, we'll need almost no coal – which still contributes significant revenues to mining companies. In fact, all the refined metals needed to reach net zero by 2050 will add up to less than the amount of coal mined in 2023 alone, according to think tank Energy Transitions Commission."

This graphic accompanying the article presents this contrast in stark comparison:
 

Part of the reason for this phenomenon is that the recyclable rates of the non-coal raw materials is much higher. There are other qualifiers:

"It's worth noting these figures do not include the full weight of extracted ore, which often contains a small concentration of metal. The figures also don't show the weight of extracted oil and gas. This is important because, all combined, fossil fuel taken out of the ground today still outweighs mined ores."

I have not often seen the extraction industry discussed in terms of a positive contribution to a sustainable future.

Take care
David

David Chandler
© 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/


Net Zero Needs More Metals, But Less Extraction From The Earth
By Akshat Rathi
September 10, 2024
Bloomberg
 
Posted by David Chandler at 7:29 AM

Thursday, March 13, 2025

Strategic CSR - Whales

The video in the url below is a short documentary about "whale falls." This term describes the phenomenon of whale carcasses that sink to the bottom of the ocean, after the whale dies, and provide nutrition that supports ecosystems of animals that have evolved to survive in otherwise nutrient-poor parts of the deep ocean:


The video reminded me that humans are the only animal on the planet that produces any 'waste.' Every other animal only produces things that are of value to some other organism – we are the interruption of an otherwise perfectly sustainable ecosystem.

Take care
David

David Chandler
© 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/

Posted by David Chandler at 6:04 PM

Tuesday, March 11, 2025

Strategic CSR - ESG

At a time when ESG is being attacked on all sides (the acronym, rightly so; the underlying sentiment, incorrectly), Barron's annual ranking of the "Top 100 Sustainable Companies" appeared in the article in the url below. You might be surprised at the No.1 company on the list (for the second year running):

"Clorox holds the crown for the No. 1 spot on the list for the third consecutive year. The consumer staples company, which owns household brands such as Burt's Bees, Glad, and Hidden Valley Ranch, scores high based on environmental factors, product safety and quality, and governance. While last year the company stood out for achieving gender pay equity, this year it gets kudos for linking executive compensation to how well they meet their sustainability goals."

In fact, I was quite surprised at how many manufacturing companies made the Top 10 in the table accompanying the article: 


Overall, the story was surprisingly positive:

"… while ESG critics have been cranking up the volume, the better barometer of the sustainability movement's strength comes down to a simple question: How committed are large companies to their sustainability goals? For now, most aren't backing off them, and many are making significant advancements."

As with such lists, the methodology was biased and opaque, but at least the ultimate DV seems appropriate – "operations and risk":

"The 100 companies on our list this year span market capitalizations ranging from American States Water's $2.8 billion to Nvidia's $3.4 trillion—companies that were ranked No. 73 and No. 74, respectively, on their sustainability. To evaluate all the companies, Calvert considered practices under five themes—the planet, workplace, customers, community, and shareholders—and assigned each company weightings for the categories based on what is most relevant to their business operations and risks."

It was good to see a positive narrative around a topic that has been nothing but doom-and-gloom for several months:

"The symbiosis between sustainability and efficiency at the top 100 companies often translates well for investors. In the first six years of Barron's ranking, the group outpaced the S&P 500. The 100 badly trailed the index's 25% and 26% returns including dividends in 2024 and 2023, respectively. But in those years, seven technology stocks fueled most of the S&P 500's return because the index is weighted by market capitalization."

Take care
David

David Chandler
© 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/


Top 100 Sustainable Companies: Coping with Anti-ESG Sentiment
By Karen Hube
February 24, 2025
Barron's
Late Edition – Final
18, 20, 22
 
Posted by David Chandler at 8:02 PM
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