Strategic CSR - "The moral case for fossil fuels"

The article in the url below is a review of a recently published book, The Moral Case for Fossil Fuels. In the review, the author does a great job of highlighting much of the ignorance that underpins the argument used by many who protest fossil fuels. Not only are renewables nowhere nearly sufficiently developed to replace all our energy needs (and may not get there unless we introduce an appropriate market incentive, such as a carbon tax), but most also ignore or are unaware of the extent to which carbon is the foundation of almost everything we do. Essentially, without oil:

 

"… the country goes dark. Transportation stops. Schools, hospitals and businesses close down. We are left to grow our own scrawny vegetables and slaughter our own animals for meat. We cannot even text."

 

More specifically:

 

"… if all you had to rely on were the good intentions of environmentalists, you would be soon plunged back into a pre-industrial hell. Life expectancy would plummet, climate-related deaths would soar, and the only way that Timberland and Whole Foods could ship their environmentally friendly clothing and food would be by mule."

 

The foundation for the book's argument rests on the extent to which fossil fuels have made possible the economy (and standard of living) that we enjoy today:

 

"We use fossil fuels and their by-products in everything we do and rarely consider it a vice. A pang of conscience may strike us when we read of oil spills or melting icebergs. But not when we are sitting on a plastic chair, visiting a power-guzzling hospital or turning on our computers. To call fossil fuels 'immoral' is to tarnish our entire civilization and should plunge us all into a permanent state of guilt, which seems a bit strong."

 

In contrast to any arguments to the contrary, therefore, the book (and reviewer) suggest that fossil fuels are supremely virtuous:

 

"Mr. Epstein argues that our history with fossil fuels has been one of constant innovation and improvements in technology. Not only do we keep finding more sources of energy, nixing the predictions of those who say we are about to run out, but we find ever cleaner, more efficient ways to use it."

 

Take care

David

 

David Chandler & Bill Werther

Strategic Corporate Social Responsibility: Stakeholders, Globalization, and Sustainable Value Creation (3e)

© Sage Publications, 2014

 

Instructor Teaching and Student Study Site: http://www.sagepub.com/chandler3e/

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

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

 

 

Go Ahead, Fill 'Er Up

By Philip Delves Broughton

December 2, 2014

The Wall Street Journal

Late Edition – Final

A15

http://www.wsj.com/articles/book-review-the-moral-case-for-fossil-fuels-by-alex-epstein-1417477909

 

Strategic CSR - Timberland

I recently returned an old, defective product to Timberland. The overall exchange experience with the company was excellent for two reasons: First, they replaced the product without question (customer service that is increasingly rare, but reminded me of other companies that do this well, such as Zappos—see CSR Newsletters October 7, 2011 and October 6, 2008) and, second, it was very interesting to see the packaging that accompanied the new product.

In particular, I was interested in the carbon footprint label on every product the firm ships. I had heard about Timberland’s work on carbon footprints (see also Tropicana’s carbon footprint of its orange juice, Issues: Sustainability, pp.321-322) and I use a video on Timberland in my classes that highlights its progressive stance on carbon emissions (http://www.youtube.com/watch?v=JTbJULvD6LY), but this is the first one of the labels I had seen. The label reports firm performance in four distinct sections:

·         Climate impact (use of renewable energy)

·         Chemicals used (PVC-free)

·         Resource consumption (both eco-friendly and recycled materials)

·         Trees planted through 2009

The information on the label is not product specific, but firm-level measures that are averaged over individual products. There are also detailed footnotes on the label explaining calculations and including limited disclaimers. I point out these limitations not to cast suspicions on the effort, but to recognize we are still in the early stages of this complex measurement process. Timberland (along with firms like Walmart and Tropicana) is leading the way and creating the knowledge necessary to measure CSR performance more effectively in comparable ways across firms and industries.

For more information from Timberland as well as an image of the carbon footprint label that now accompanies all products, see: http://community.timberland.com/Earthkeeping/Our-Footprint

Take care

David

Bill Werther & David Chandler

Strategic Corporate Social Responsibility: Stakeholders in a Global Environment (2e)

© Sage Publications, 2011

http://www.sagepub.com/strategiccsr2e/

Instructor Teaching Site: http://www.sagepub.com/strategiccsr/

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

Strategic CSR - Timberland

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

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

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

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

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

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

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

Take care
David

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


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

Strategic CSR - Generation Y

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

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

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

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

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

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

Take care
Dave

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

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

Strategic CSR - Patagonia

The press release in the first url below tracks the evolution of the cutting edge practices some firms are adopting regarding CSR reporting (Chapter 4: CSR Audit and Report, p72; Issues: Auditing CSR, p94):

“With its Footprint Chronicles, Patagonia is taking the next step in a broader trend toward greater transparency on corporate social and environmental impacts. A website that tracks and discloses “the good and the bad” in Patagonia’s supply chain, the Footprint Chronicles build on a history of bold actions by other companies seeking to be “candid and forthright” in their transparency.”

Greater levels of transparency allow a firm’s stakeholders to better understand a firm’s actions and compare it to expectations. Minimizing the information asymmetry that exists between firms that control access to much of the information stakeholders need to evaluate firm performance stands to reduce uncertainty and head off potential unnecessary clashes. Rather than see greater transparency as a burden or intrusion, therefore, the most progressive firms will view it as an uncertainty reduction and risk management tool in its attempts to meet the needs and demands of key stakeholder groups:

“Patagonia, like its predecessors, figures its customers and investors are savvy enough to know that problems exist in its manufacturing processes. So instead of glossing over them, Patagonia exposes the problems--in hopes of partnering with its customers to create solutions.”

Additional detail about Patagonia’s “Footprint Chronicles” initiative—“an effort to document and share with customers information about the environmental effects of every link in the supply chain,” is contained in the article in the second url below.

Take care
Dave

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

The Latest Corporate Social Responsibility News - Patagonia Takes Next Step in Corporate Transparency and Accountability
Borrows Elements from The Gap, Timberland, and Stonyfield
CSRwire Weekly News Alert
http://www.csrwire.com/News/11480.html

Measuring Footprints
A new program at Patagonia tells consumers about the eco-impact of its products -- and helps the company get greener.
Fast Company Magazine
From: Issue 124 | April 2008 | Pages 59-60 | By: Alissa Walker
http://www.fastcompany.com/magazine/124/measuring-footprints.html

Strategic CSR - Carbon Labels II

The article in the first url link below demonstrates the growing impact of carbon footprints in the UK (Special Cases of CSR: GM Labeling, p293):

“Carbon footprints provide a measure of how much of an impact an individual or company is having on the planet, and a carbon label is an indication of the amount of carbon dioxide emitted as a result of producing goods and services. This information is difficult to estimate without detailed knowledge of the producer's methods, so consumers and investors have little idea of a company's carbon footprint, or the footprint of what they buy, unless companies choose to disclose it. … Walkers Crisps then put the first carbon label on packets of its crisps. More companies followed: Timberland, Coca-Cola, Halifax, Muller Dairy and the brewer Scottish & Newcastle are all committed to either carbon labelling or footprinting.”

In spite of the enthusiasm, however, the processes used to generate these carbon profiles are still evolving and there is little informed agreement about both their reliability and validity at this stage:

"Quoting results in grams of C02 per product suggest a high level of accuracy that is not possible on a large scale today. Much of the data required is not readily available so many assumptions need to be made which reduce the accuracy of the calculation. … Another concern is that there is as yet no standard way to perform the measurements. "Companies typically spend 2-3 months doing footprint analysis for their first product and even then results are contentious due to methodology."

The article in the second url link below demonstrates the importance of having an holistic perspective in viewing a firm’s supply chain, especially when estimating the environmental impact of specific food products:

“While much consumer and media attention has recently focused on "food miles", transportation, it turns out, is only a small part of the carbon footprint of food. Meanwhile, food and agriculture are responsible for a wide range of environmental impacts ranging from food waste and water use to nitrogen run-off and methane emissions from livestock.”

The complexity of the problem is paralyzing, especially when considering the institutionalized production processes in farming and other financial barriers to reform:

“"It's just that it's such a diverse group of stakeholders and there's not enough technical research or grant money available to farmers to allow cost sharing when adopting some of these sustainable strategies." For food and agriculture businesses, another challenge is to introduce sustainable practices in an industry in which rising commodity prices are eroding margins.”

Take care
Dave

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

FT REPORT - SUSTAINABLE BUSINESS 2007
http://www.ft.com/reports/susbusiness2007

Food footprints coming soon to a label near you.
By FIONA HARVEY
900 words
12 October 2007
Financial Times
Surveys SUB1
Page 4
http://www.ft.com/cms/s/1/cb820020-76e7-11dc-ad83-0000779fd2ac,dwp_uuid=f89cd9c6-7567-11dc-b7cb-0000779fd2ac.html

Food chain is complex.
By SARAH MURRAY
822 words
12 October 2007
Financial Times
Surveys SUB1
Page 7
http://www.ft.com/cms/s/1/ceb3bf22-76e7-11dc-ad83-0000779fd2ac,dwp_uuid=f89cd9c6-7567-11dc-b7cb-0000779fd2ac.html