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.

Tuesday, April 30, 2024

Strategic CSR - Meathead Movers

The article in the url below reveals that, in spite of all the significant problems we currently face, the government sometimes just cannot help but trip over itself (which, of course, The WSJ just loves to highlight). The story focuses on an instance of what the government deems to be age discrimination:

"A moving company shows off the clean-cut, chiseled student athletes who pump iron before loading your furniture. The federal government says that's a problem."

Specifically:

"The Equal Employment Opportunity Commission sued Fresno, Calif.-based Meathead Movers this year for violating age-discrimination law by not hiring enough older workers. Employment attorneys and trade groups say the case will offer clues as to how the agency will approach antidiscrimination laws now that President Biden's picks are installed."

The company is definitely going for a certain look:

"Some Meathead Movers' trucks are stamped with the moniker 'student athlete movers.' Youthful-looking employees pump iron before grabbing furniture, according to a recent social-media advertisement."

It is hard to miss the intention, since it is embedded in the company's name, and they are proud to double-down on the brand:

"Employees compete in the Meathead Olympics in which they compete to assemble and leap over boxes. Numerous corporate Facebook posts show workers flexing with biceps bulging. Employees, dubbed 'Meatheads,' must jog from truck to house when not carrying furniture. The Meathead Movers Invitational is a company-sponsored wrestling tournament."

In its defense, the company argues that it is just good marketing and, anyway, older people do not want to do a job that involves constantly lifting heavy things:

"Meathead Movers executives say that the company is providing good jobs and quality services to the community and that it isn't discriminating against anyone—older workers just don't want to carry chests downstairs."

My understanding of this area of employment law is that, if there is a physical requirement that necessitates a certain physical characteristic (e.g., flight attendants cannot be too large as they potentially need to work in close confines in emergency situations), then requiring those characteristics is not illegal. Being willing to carry heavy things seems like it would be central to working for a moving company:

"Many of the EEOC's allegations against Meathead focus on marketing and hiring practices that could discourage older workers from applying. Current employees are asked to scour local gyms, colleges and places where they would hang out normally for new hires, according to the EEOC. Discouragement bias can be present in job ads, marketing materials and job application questions, such as asking about a student's class schedule, the agency said."

And, of course, once the lawyers get involved, all kinds of rational points are used to motivate the arguments on both sides:

"Advocates for older Americans applaud the EEOC's focus. 'Dwayne 'The Rock' Johnson is over 50. I'm pretty sure he would be good at moving boxes,' said Bill Alvarado Rivera, senior vice president for litigation at AARP, an association for the rights of older people. 'That kind of stereotype about who could be a good mover has no place in an economy that values individuals.'"

While advocates against government intervention are producing the kind of circular logic that only comes from legal advice:

"Others disagreed, saying that antidiscrimination lawsuits could hurt the types of workers they are trying to protect. Walter Olson, a senior fellow at the libertarian think tank Cato Institute, said age-related lawsuits could make companies less likely to hire older workers because they are a liability risk. 'It is the most counterproductive of all the major areas of discrimination law,' he said. 'It makes them less employable late in their careers because they are known as litigation dangers.'"

You would think we enjoy arguing just for the sake of arguing. The bigger issue, of course, is whether this is a productive use of government resources. My sense is that we have more pressing problems (than Meathead Movers' employment policies) that might require more urgent attention.

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/


A Moving Company Touts Its Young, Chiseled Workers. Feds Say That's Age Discrimination
By Austen Hufford
December 9, 2023
The Wall Street Journal
Late Edition – Final
 

Thursday, April 25, 2024

Strategic CSR - Air

I found this quote from the article in the url, below, shocking:

"The average person can go up to two months without food, three days without water, but only a few minutes without air. Breathable air is essential to life. Yet a new analysis found that last year, only 10 countries and 9% of global cities had air quality that met World Health Organization guidelines for harmful fine-particle, or PM2.5, pollution."

To be clear, what is shocking is not that air matters, of course, but that so few countries have what the WHO considers to be an acceptable minimum quality.

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/


Only 10 Countries Had Healthy Air Quality in 2023, Report Find
By Kendra Pierre-Louis
March 18, 2024
Bloomberg
 

Tuesday, April 23, 2024

Strategic CSR - Bitcoin

I knew that Bitcoin mining was unsustainable due to the amount of electricity that it used; what I had not realized is that the same criticism can be levelled due to the amount of water used in the same process:

"Bitcoin-mining operations slurp up billions of gallons of water globally each year Estimates vary, but the annual footprint is projected to surpass 591 billion gallons of water this year, according to an article published last week in the peer-reviewed journal Cell Reports Sustainability."

How much is 591 billion gallons of water?

"For comparison, New York City residents and businesses consumed 403 billion gallons in 2022, according to the U.S. Geological Survey."

The water use also adds to the energy use:

"Miners use water directly to cool their computer servers and indirectly by running both computers and air conditioning systems powered by gas- and coal-fired power plants that require cooling water. Some of the cooling water used by power plants evaporates and is no longer available for anything else."

The reason so many resources are required?

"Bitcoin mining requires massive amounts of energy. During mining, computers generate random numbers in hope of getting the correct one required to unlock fresh bitcoin. The greater the computing power, the higher the chance that a company or individual running a mining operation can harvest new bitcoins."

Another complication is that any changes would have to be approved by all Bitcoin owners, which makes any kind of change challenging:

"Bitcoin could change its software to require fewer calculations to mine its currency, significantly reducing its need for both electricity and cooling water, according to Paolo Natali, principal at the Rocky Mountain Institute, a nonprofit environmental research and consulting organization. But since bitcoin isn't owned by a single company, that change would require nearly all of the parties involved in its maintenance to agree on a change."

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/


Bitcoin Mining Fuels Concern Over Water Use
By Eric Niiler
December 13, 2023
The Wall Street Journal
Late Edition – Final
A3

Thursday, April 18, 2024

Strategic CSR - BlackRock

A picture can tell a thousand words – specifically, a graph from the article in the url below about how BlackRock CEO, Larry Fink, has stopped publicly using the acronym, ESG. Of course, here in the U.S., there is a controversial ideological argument around the acronym. Equally important (and a symptom of that broader discussion) is how investors are voting with their dollars:


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/


BlackRock Retreats From ESG Following Pushback
By Jack Pitcher and Amrith Ramkumar
March 4, 2024
The Wall Street Journal
Late Edition – Final
A1, A6

Tuesday, April 16, 2024

Strategic CSR - Wind turbines

The article in the url below deals with the issue of how to discard the detritus of the renewable energy sector. Specifically, it notes that there is a large amount of hardware that is required to produce wind energy, which is rapidly reaching the end of its lifespan – particularly the blades from the turbines that were installed in the early 2000s:

"By 2025, trade association WindEurope estimates that 25,000 metric tons of wind turbine blades will be phased out each year in Europe alone, equivalent to the weight of more than 6,000 Hummer SUVs."

Unfortunately, most of the blades that were installed in those early years are either not recyclable or just not recycled:

"Most wind turbine blades end up in landfills or are incinerated. … That footprint only stands to grow: Total installed wind capacity reached 906 gigawatts worldwide last year, more than quadruple 2010 levels, according to the Global Wind Energy Council, an industry group. An additional 600 gigawatts are expected by 2027."

Nonprofit groups like Canvus (an organization dedicated to bringing "communities, organizations, and artists together to reimagine spaces, inspire others, and share new experiences") are working to convert the blades into functional items:

"At first glance, the benches outside the Great Lakes Science Center in downtown Cleveland seem unremarkable. But a closer inspection shows that their droplet-shaped shells aren't made from wood or metal. A scan of the attached QR codes reveals even more: These benches used to be wind turbine blades. Painted by local artists and weighing in at about 500 pounds (230 kilograms) apiece, the benches were crafted by Rocky River, Ohio-based Canvus, which will install 10 more in the same location later this month. Altogether, the dozen benches reuse roughly a quarter of a single 150-foot (45-meter) wind turbine blade."

They have lots of other ideas, too:

"The team came up with 150 ideas for products to make out of turbine blades before settling on 11 – planters, picnic tables and benches – that could be produced at scale. It also assigned each product a pithy name: the 'deborah' bench, for example, offers shade protection and is also available as a swing; 'beacon,' meanwhile, can be a bench, planter or fountain."

The article in the second url below confirms that there is a lot of hardware out there (EVs, bikes, and scooters) that has been discarded as the market attempts to identify the ideal solutions to specific sustainability-related problems:

"China is now the world leader in clean cars, producing around 6 million EVs and plug-in hybrids last year, or almost one in every three new cars sold domestically. It accounts for 60% of the world's current electric fleet, and has the most extensive EV charging infrastructure on Earth – also built with government support. But that lightning-fast development also left behind plenty of casualties. Many of the ride-hailing companies that were early adopters of EVs have gone out of business. There are now around 100 Chinese electric-car makers, down from roughly 500 in 2019."

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/


Retired Wind Turbine Blades Live on as Park Benches and Picnic Tables
By Coco Liu
June 15, 2023
Bloomberg

China's Abandoned, Obsolete Electric Cars Are Piling Up in Cities
August 17, 2023
Bloomberg
 

Thursday, April 11, 2024

Strategic CSR - Nuclear

No doubt there is more to the story in the url below, but I was encouraged by this development:

"For the first time in more than 50 years the US granted permission for a new type of nuclear reactor, a sign regulators are becoming more open to different approaches to producing power from splitting the atom."

What is unique about this new reactor design, it appears, is the cooling technology:

"California startup Kairos Power received a construction permit from the Nuclear Regulatory Commission to build its Hermes demonstration reactor in Tennessee. While commercial reactors in use today are cooled by water, the Kairos technology uses molten fluoride salt as a coolant."

As I have noted previously (see Strategic CSR – Nuclear), there are a lot of misconceptions about nuclear energy (and subsequent resistance among environmental activists), but I have not seen any realistic future projection of sustainable energy use (and rapid transition away from fossil fuels) that does not draw on at least some nuclear energy.

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/


US Approves New Kind of Nuclear Reactor for First Time in 50 Years
By Will Wade
December 13, 2023
Bloomberg
 

Monday, April 8, 2024

Strategic CSR - Gas tax

The "gas tax" in the U.S. is money raised both by the federal government and individual states (separate taxes) and used to invest in the national road system. It is one of the most effective taxes because it is targeted and, at the federal level, famously has not been raised since the 1993 (for a breakdown of state-by-state taxes, see here). In spite of being so effective, politicians are so afraid to introduce any increase in the overall tax burden that investment has dropped, and the country's infrastructure has suffered. The article in the url below argues this situation is about to get worse, as drivers increasingly trade-in internal combustion engine cars and replace them with EVs, which obviously do not need any petrol:

"Back in 2001, … lawmakers in Oregon recognized that the adoption of EVs and hybrids would eventually mean less revenue from the state's gas tax, which would mean less money to pay for roads and bridges. So they formed a committee to study the problem. After considering a tire tax, a battery tax and numerous other options, the committee concluded that Oregonians should be charged based on how many miles they drive. Twenty-two years later, the Road User Fee Task Force continues to operate small pilot programs. But like most other states that have seen gas taxes start to evaporate, Oregon still doesn't have a mandatory alternative revenue plan in place. … all proposed solutions are problematic."

There is still time, but given the seemingly omnipresent dysfunction in politics, it is hard to see how this essential problem can be overcome. In order to meet the ever-stricter gas mileage requirements being imposed by states, and in addition to growing consumer demand, sales of EVs will only rise:

"Electric vehicles currently account for only about 5% of new car sales in the U.S., but that figure will climb to at least 40% by 2030, according to S&P Global Mobility forecasts. Two years ago President Biden signed an executive order calling for half of the vehicles sold in the U.S. to be electric by the end of the decade. A few states, such as California, have been even more aggressive, mandating that all new cars sold after 2035 meet zero-emission standards."

While there are multiple sources of investment funds for road infrastructure, the gas taxes are central:

"States pay for roads in a variety of ways, including vehicle registration fees and tolls, plus money from their general funds. Gasoline taxes account for a large portion of revenue, with the average U.S. rate currently at 32.3 cents a gallon at the state level along with 18.4 cents in federal tax. (Both figures are somewhat higher for diesel fuel.) Even without the impact of electric vehicles, gas-tax revenue is falling as new cars become more fuel efficient and Americans do less driving."

As with so many issues in the U.S., the response by individual states varies significantly. At least most states understand this is a problem that they need to solve:

"Faced with crumbling infrastructure and reduced revenue, 31 states and the District of Columbia have implemented some form of variable-rate gas tax. … Several states are seeking to recoup revenue lost to electric vehicles by imposing new fees on EV owners. Last month Texas began charging $400 to register an EV, plus an additional $200 every year thereafter—on top of the $50.75 registration fee all car owners pay. In all, 33 states assess annual EV fees, according to the National Conference of State Legislatures. Meanwhile, seven states levy a tax on electricity at EV charging stations. Most are directing the funds to road construction, although Iowa's tax is being placed in a statewide economic development fund. … A road-usage fee is the most frequently cited long-range alternative, as Oregon's task force determined 22 years ago. More than a dozen states are studying it and four—Oregon, Utah, Virginia and Hawaii—have implemented voluntary pilot programs. Hawaii's model, which begins in 2025, will apply to only electric vehicles at the start, with motorists opting to pay a flat rate annual fee of $50 or get charged 0.8 cents per mile."

But, as Oregon has learned, fixing the problem in theory is very different than implementing a lasting solution in practice:

"… if Oregon has learned anything after 22 years of study—including a voluntary program with fewer than 1,000 participants—it's that the road to finding an alternative to gasoline taxes is filled with potholes."

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/


How Will States Pay for Roads When Gas Taxes Evaporate?
By Peter Funt
October 21-22, 2023
The Wall Street Journal
Late Edition – Final
C4
 

Friday, April 5, 2024

Strategic CSR - Geopolitics

The author in the article in the url below sets up his argument by noting the geopolitical role played by fossil fuels since their emergence as the dominant energy source. While solving the nasty side-effect of direct carbon emissions, he argues that renewable energy might be introducing an alternative source of "commodity dependence and geopolitical baggage":

"Wind, sun and hydrogen are free. But the equipment that transforms them into energy, stores it in batteries and transmits it needs vast quantities of minerals whose supply is more concentrated than that of oil and gas. Democratic Republic of Congo has 43% of the world's cobalt deposits, Argentina 34% of lithium, Chile 30% of copper and Indonesia 19% of nickel. … All exceed Saudi Arabia's 12% share of global oil production and Russia's 16% share of natural-gas output. For all four minerals, the five largest countries have more than half of global deposits. With oil and gas, the top five control less than half. … Downstream production is even more concentrated: China refines 70% of the world's cobalt, 65% of its lithium and 42% of its copper, far exceeding OPEC's share of oil output."

And, while the sustainability lobby is falling over itself to welcome the transition to electricity that is being encouraged by the Inflation Reduction Act in the U.S., the reality is that it will increase demand for these minerals that are already in short supply ("the law will increase that demand by 12% to 15% by 2035"), while also making the U.S. more dependent on imports from countries that are not necessarily predisposed to be friendly:

"For example, in 2035, non-free-trade partners will account for 90% of global cobalt production, most of it in Democratic Republic of Congo, which exports 70% of its production to China."

Meanwhile, the regulatory bureaucracy in the U.S. ensures that, even though there are deposits of some of these minerals available (in theory), we just cannot get out of our own way quickly enough to access them:

"The U.S. alone boasts copper deposits equivalent to 20 years' worth of its own demand. … The problem is accessing it; the firm estimates it takes 15 years on average for a mine to go from discovery to production."

The problems range from permitting ("seven to 10 years [in the U.S.], versus two to three in Australia and Canada"), to refining ("A copper refinery or smelter hasn't been built in the U.S. since the 1970s"), to what the author terms "resource nationalism":

"From the 1950s to the 1980s, western oil companies saw their operations nationalized by host countries. Today, resource nationalism is once again spreading. Indonesia is restricting exports of nickel ore to nurture domestic refining, and Chile is partially nationalizing its lithium mines."

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/


Green Energy Shuffles Global Influence
By Greg Ip
September 14, 2023
The Wall Street Journal
Late Edition – Final
A2