The article in the url below by Martin Wolf of the FT offers two important comments on the recent credit crisis and the self-inflicted wounds of the financial industry (Issues: Finance, p180; Investing, p184). First, is the idea that industries that fail to regulate themselves and consistently overstep the bounds of acceptability set by society face regulation (Chapter 1; A Rational Argument for CSR, p17):
“More regulation is on its way. After frightening politicians and policymakers so badly, even the most optimistic banker must realise this. The question is whether the additional regulation will do any good.”
Second, Wolf offers a stinging rebuke to an industry that should expect an even stronger social backlash because of its poor performance relative to standards in other industries:
“Yet why, I ask, should this industry have apparently failed to improve its standards of performance over the past century? After all, almost every other industry has done so. Consider how confident we are that the food we buy will not poison us. Yet adulterated food was once a threat. … [The banking industry’s] purely operational performance is now impressive. But competition does not work well in finance. The "product" of the financial industry is promises for an uncertain future, marketed as dreams that can readily become nightmares. Customers are readily swept away by exaggerated promises, irrational beliefs, misplaced trust and sheer skulduggery. So, too, are practitioners: basing risk management on limited data and inadequate models is a good example. Emotions count wherever uncertainties loom. Boeing would not survive if the aircraft it built fell out of the sky. Yet in the financial industry, huge blunders are also almost always made in common. If everybody is in the dance nobody is to blame and, in any case, governments, horrified by the consequences of a collapsing financial system, will come to the rescue.”
Wolf, however, is pessimistic that anything will change. Regulators, he argues, are likely to focus on correcting past mistakes, rather than preventing future ones, and firms and individuals are unlikely to feel sufficient “pain” to deter future recklessness.
Take care
Dave
Bill Werther & David Chandler
Strategic Corporate Social Responsibility
© Sage Publications, 2006
Why financial regulation is both difficult and essential
By Martin Wolf
1,035 words
April 15 2008
Financial Times
London Ed1
Page 11
http://us.ft.com/ftgateway/superpage.ft?news_id=fto041520081354588929
Monday, November 24, 2008
Friday, November 21, 2008
Strategic CSR - Nike
It is characteristic of the media that good news takes a back seat to scandal, but the article in the url below is worth highlighting as an example of how far Nike has come regarding CSR (Issues: Cultural Conflict, p160). The article, buried deep in the sports pages of my local paper, reports Nike’s voluntary disclosure of the mistreatment of workers at the factory of a Nike sub-contractor in Malaysia:
“… including squalid living conditions, garnished wages and withheld passports of foreign workers.”
Nike’s response, I think, is impressive:
“Nike said all workers are being transferred to Nike-inspected and approved housing … All workers will be reimbursed for any fees and going forward, the fees will be paid by the factory. All workers will have immediate access to their passports and any worker who wishes to return home will be provided return airfare.”
Those executives that remain unconvinced of the value of CSR, however, are likely to remain skeptical as long as such proactive behavior remains unrecognized, while the slightest transgression is plastered all over the front pages.
Have a good weekend.
Dave
Bill Werther & David Chandler
Strategic Corporate Social Responsibility
© Sage Publications, 2006
Nike finds major violations at Malaysian factory
By SARAH SKIDMORE
AP Business Writer
415 words
1 August 2008
02:04 PM
Associated Press Newswires
http://www.newsvine.com/_news/2008/08/01/1713691-nike-finds-major-violations-at-malaysian-factory
“… including squalid living conditions, garnished wages and withheld passports of foreign workers.”
Nike’s response, I think, is impressive:
“Nike said all workers are being transferred to Nike-inspected and approved housing … All workers will be reimbursed for any fees and going forward, the fees will be paid by the factory. All workers will have immediate access to their passports and any worker who wishes to return home will be provided return airfare.”
Those executives that remain unconvinced of the value of CSR, however, are likely to remain skeptical as long as such proactive behavior remains unrecognized, while the slightest transgression is plastered all over the front pages.
Have a good weekend.
Dave
Bill Werther & David Chandler
Strategic Corporate Social Responsibility
© Sage Publications, 2006
Nike finds major violations at Malaysian factory
By SARAH SKIDMORE
AP Business Writer
415 words
1 August 2008
02:04 PM
Associated Press Newswires
http://www.newsvine.com/_news/2008/08/01/1713691-nike-finds-major-violations-at-malaysian-factory
Wednesday, November 19, 2008
Strategic CSR - Dr. Hauschka
The article in the url below profiles the parent (WALA Heilmittel) of the natural cosmetics firm, Dr. Hauschka:
“… the company's roots are in herbal medicine. WALA was founded in 1935 by Rudolf Hauschka, a Viennese chemist who sought to develop remedies using only natural ingredients. In 1967, it added the skin care line, named after the founder, who died two years later.”
Dr. Hauschka is experiencing success today as consumers increasingly seek out socially and environmentally friendly products:
“Sales of WALA Heilmittel, the maker of Dr. Hauschka, have more than doubled in the last five years, to nearly $150 million, about 8 percent of that from the United States, where it also sells herbal remedies. The 73-year-old company, which labored for decades in obscurity, now finds itself in the sweet spot of a booming market for green cosmetics.”
The firm’s level of social responsibility extends far beyond its product line, however, appearing to have successfully integrated a CSR perspective throughout all aspects of operations. The company is run:
“… almost as a collective, with all the profits either plowed back into operations or handed out to the 700 workers.”
Take care
Dave
Bill Werther & David Chandler
Strategic Corporate Social Responsibility
© Sage Publications, 2006
Garden Is a Seedbed For Green Cosmetics
By MARK LANDLER
1307 words
28 June 2008
The New York Times
Late Edition - Final
3
“… the company's roots are in herbal medicine. WALA was founded in 1935 by Rudolf Hauschka, a Viennese chemist who sought to develop remedies using only natural ingredients. In 1967, it added the skin care line, named after the founder, who died two years later.”
Dr. Hauschka is experiencing success today as consumers increasingly seek out socially and environmentally friendly products:
“Sales of WALA Heilmittel, the maker of Dr. Hauschka, have more than doubled in the last five years, to nearly $150 million, about 8 percent of that from the United States, where it also sells herbal remedies. The 73-year-old company, which labored for decades in obscurity, now finds itself in the sweet spot of a booming market for green cosmetics.”
The firm’s level of social responsibility extends far beyond its product line, however, appearing to have successfully integrated a CSR perspective throughout all aspects of operations. The company is run:
“… almost as a collective, with all the profits either plowed back into operations or handed out to the 700 workers.”
Take care
Dave
Bill Werther & David Chandler
Strategic Corporate Social Responsibility
© Sage Publications, 2006
Garden Is a Seedbed For Green Cosmetics
By MARK LANDLER
1307 words
28 June 2008
The New York Times
Late Edition - Final
3
Monday, November 17, 2008
Strategic CSR - Green Noise
The article in the url below introduces the concept of “green noise”:
“green noise” -- static caused by urgent, sometimes vexing or even contradictory information [about the environment] played at too high a volume for too long.”
The idea of “green noise” adds value to the debate. While terms like “greenwashing” describe the conduct of firms, “green noise” presents a consumer perspective on the exponential growth in information on issues related to the environment and climate change that is often contradictory. The overall effect is to obfuscate, rather than clarify, whether deliberately or with good intentions:
“An environmentally conscientious consumer is left to wonder: are low-energy compact fluorescent bulbs better than standard incandescents, even if they contain traces of mercury? Which salad is more earth-friendly, the one made with organic mixed greens trucked from thousands of miles away, or the one with lettuce raised on nearby industrial farms? Should they support nuclear power as a clean alternative to coal?”
In outlining the concept of “green noise” the article also highlights the effect of this information overload on consumer behavior:
“… consumers surveyed in 2007 were between 22 and 55 percent less likely to buy a wide range of green products than in 2006. The slipping economy had an effect, but message overload appeared to be a major factor as well.”
There is an interesting relationship between the amount of information and effective decision making—the idea that more information is better, but too much leads to paralysis and, consequently, bad or non decisions:
“Diane Tompkins, a founder of the Curious Company, a market research firm based in San Francisco … has conducted focus groups to investigate the psychological barriers to taking action for the sake of the environment. The activist groups ''believe that, surely, if I just gave them one more reason why they should do it, then they would,'' she said. ''But the fact is, people are not motivated by more facts. That can just reinforce their feeling of helplessness.''”
Take care
Dave
Bill Werther & David Chandler
Strategic Corporate Social Responsibility
© Sage Publications, 2006
http://www.sagepub.com/Werther
That Buzz In Your Ear May Be Green Noise
By ALEX WILLIAMS
1540 words
15 June 2008
The New York Times
Late Edition - Final
1
http://www.nytimes.com/2008/06/15/fashion/15green.html
“green noise” -- static caused by urgent, sometimes vexing or even contradictory information [about the environment] played at too high a volume for too long.”
The idea of “green noise” adds value to the debate. While terms like “greenwashing” describe the conduct of firms, “green noise” presents a consumer perspective on the exponential growth in information on issues related to the environment and climate change that is often contradictory. The overall effect is to obfuscate, rather than clarify, whether deliberately or with good intentions:
“An environmentally conscientious consumer is left to wonder: are low-energy compact fluorescent bulbs better than standard incandescents, even if they contain traces of mercury? Which salad is more earth-friendly, the one made with organic mixed greens trucked from thousands of miles away, or the one with lettuce raised on nearby industrial farms? Should they support nuclear power as a clean alternative to coal?”
In outlining the concept of “green noise” the article also highlights the effect of this information overload on consumer behavior:
“… consumers surveyed in 2007 were between 22 and 55 percent less likely to buy a wide range of green products than in 2006. The slipping economy had an effect, but message overload appeared to be a major factor as well.”
There is an interesting relationship between the amount of information and effective decision making—the idea that more information is better, but too much leads to paralysis and, consequently, bad or non decisions:
“Diane Tompkins, a founder of the Curious Company, a market research firm based in San Francisco … has conducted focus groups to investigate the psychological barriers to taking action for the sake of the environment. The activist groups ''believe that, surely, if I just gave them one more reason why they should do it, then they would,'' she said. ''But the fact is, people are not motivated by more facts. That can just reinforce their feeling of helplessness.''”
Take care
Dave
Bill Werther & David Chandler
Strategic Corporate Social Responsibility
© Sage Publications, 2006
http://www.sagepub.com/Werther
That Buzz In Your Ear May Be Green Noise
By ALEX WILLIAMS
1540 words
15 June 2008
The New York Times
Late Edition - Final
1
http://www.nytimes.com/2008/06/15/fashion/15green.html
Friday, November 14, 2008
Strategic CSR - Google
The two articles in the urls below demonstrate the power of the internet to re-shape the way information is communicated around the globe (Chapter 1: Globalization and the Free Flow of Information, p20; Issues: Internet, p237). This phenomenon will continue to evolve in ways that we have not yet even begun to imagine (at least, those of us who do not work for Google):
“You can Google to get a hotel, find a flight and buy a book. Now you may be able to use Google to avoid the flu.”
The philanthropic arm of the internet search company (http://www.google.org/) has released a new service (http://www.google.org/flutrends/) that will track internet search terms related to the flu nationally (e.g., “cough” or “fever”) and use this information to help identify potential outbreaks of the illness:
“It displays the results on a map of the U.S. and shows a chart of changes in flu activity around the country. The data is meaningful because the Google arm that created Flu Trends found a strong correlation between the number of Internet searches related to the flu and the number of people reporting flu symptoms.”
This information is powerful because of the speed with which it identifies early trends to which government agencies and health providers can then react:
“Tests of the new Web tool from Google.org, the company's philanthropic unit, suggest that it may be able to detect regional outbreaks of the flu a week to 10 days before they are reported by the Centers for Disease Control and Prevention.”
I believe that firms are just beginning to appreciate the ways in which these communication tools will affect their operations and reputations. What seems apparent, however, is that the affect will be dramatic and that firms that are not transparent and accountable to their stakeholders will suffer as a result.
Have a good weekend.
Dave
Bill Werther & David Chandler
Strategic Corporate Social Responsibility
© Sage Publications, 2006
http://www.sagepub.com/Werther
Sniffly Surfing: Google Unveils Flu-Bug Tracker
By Robert A. Guth
1070 words
12 November 2008
The Wall Street Journal
D1
http://sec.online.wsj.com/article/SB122644309498518615.html
Aches, a Sneeze, a Google Search
By MIGUEL HELFT
1267 words
12 November 2008
The New York Times
Late Edition - Final
1
http://www.nytimes.com/2008/11/12/technology/internet/12flu.html
“You can Google to get a hotel, find a flight and buy a book. Now you may be able to use Google to avoid the flu.”
The philanthropic arm of the internet search company (http://www.google.org/) has released a new service (http://www.google.org/flutrends/) that will track internet search terms related to the flu nationally (e.g., “cough” or “fever”) and use this information to help identify potential outbreaks of the illness:
“It displays the results on a map of the U.S. and shows a chart of changes in flu activity around the country. The data is meaningful because the Google arm that created Flu Trends found a strong correlation between the number of Internet searches related to the flu and the number of people reporting flu symptoms.”
This information is powerful because of the speed with which it identifies early trends to which government agencies and health providers can then react:
“Tests of the new Web tool from Google.org, the company's philanthropic unit, suggest that it may be able to detect regional outbreaks of the flu a week to 10 days before they are reported by the Centers for Disease Control and Prevention.”
I believe that firms are just beginning to appreciate the ways in which these communication tools will affect their operations and reputations. What seems apparent, however, is that the affect will be dramatic and that firms that are not transparent and accountable to their stakeholders will suffer as a result.
Have a good weekend.
Dave
Bill Werther & David Chandler
Strategic Corporate Social Responsibility
© Sage Publications, 2006
http://www.sagepub.com/Werther
Sniffly Surfing: Google Unveils Flu-Bug Tracker
By Robert A. Guth
1070 words
12 November 2008
The Wall Street Journal
D1
http://sec.online.wsj.com/article/SB122644309498518615.html
Aches, a Sneeze, a Google Search
By MIGUEL HELFT
1267 words
12 November 2008
The New York Times
Late Edition - Final
1
http://www.nytimes.com/2008/11/12/technology/internet/12flu.html
Thursday, November 13, 2008
Strategic CSR - Labor Laws in China
The article in the url below charts the improving labor laws in China (Issues: Cultural Conflict, p160; Wages, p204). In spite of a new Labor Contract Law (introduced in January 2008), however, formal protest and workers’ rights are still sensitive issues in China and reform is slow:
“While China's rising number of middle-class malcontents are quick to protest one-off threats to their relatively comfortable existences - such as a nuclear plant or rail project nearby - they are otherwise coddled by government policies. Workers' grievances, by contrast, range from exploitation by employers to administrative discrimination against migrants who have moved to coastal factory towns from poor provinces in the interior. … They also have a lot less to lose than China's professional classes, making any independent labour movement forged outside the official All China Federation of Trade Unions one of the greatest potential threats to the Communist party's grip on power.”
Although union organization is still strongly discouraged by authorities, there is room for organizations (such as Chunfeng, featured in the article) to advise workers on their legal rights:
“Despite the restrictions, Chunfeng has never been busier. "Before this year, we handled about 10 cases a month," says Mr Zhang, who turns 34 this year. "Now it's up to about 30."”
This issue gained increased prominence over the summer with the story that Wal-Mart has finally agreed to collectively-bargained wage rises for all employees at its stores in China.
Take care
Dave
Bill Werther & David Chandler
Strategic Corporate Social Responsibility
© Sage Publications, 2006
http://www.sagepub.com/Werther
China's factory workers gain recognition for grievances
By Tom Mitchell in Shenzhen
1110 words
30 July 2008
Financial Times
Asia Ed1
07
http://www.ft.com/cms/s/0/03fc6bc2-5d9f-11dd-8129-000077b07658.html
“While China's rising number of middle-class malcontents are quick to protest one-off threats to their relatively comfortable existences - such as a nuclear plant or rail project nearby - they are otherwise coddled by government policies. Workers' grievances, by contrast, range from exploitation by employers to administrative discrimination against migrants who have moved to coastal factory towns from poor provinces in the interior. … They also have a lot less to lose than China's professional classes, making any independent labour movement forged outside the official All China Federation of Trade Unions one of the greatest potential threats to the Communist party's grip on power.”
Although union organization is still strongly discouraged by authorities, there is room for organizations (such as Chunfeng, featured in the article) to advise workers on their legal rights:
“Despite the restrictions, Chunfeng has never been busier. "Before this year, we handled about 10 cases a month," says Mr Zhang, who turns 34 this year. "Now it's up to about 30."”
This issue gained increased prominence over the summer with the story that Wal-Mart has finally agreed to collectively-bargained wage rises for all employees at its stores in China.
Take care
Dave
Bill Werther & David Chandler
Strategic Corporate Social Responsibility
© Sage Publications, 2006
http://www.sagepub.com/Werther
China's factory workers gain recognition for grievances
By Tom Mitchell in Shenzhen
1110 words
30 July 2008
Financial Times
Asia Ed1
07
http://www.ft.com/cms/s/0/03fc6bc2-5d9f-11dd-8129-000077b07658.html
Wednesday, November 12, 2008
Strategic CSR - Home Depot
In the absence of regulated standards in many areas of CSR-related products, the article in the url link below describes the steps firms are taking to ensure their progress on this issue is not lost on their customers (Issues: Advertising, p151; Brands, p153):
“It's all part of a new trend spinning out from the current wave of eco-chic. Perhaps taking a cue from the U.S. Agriculture Dept.'s eye-catching, consumer-friendly, official labels for organic food, increasing numbers of non-food related stores and brands are introducing official-looking symbols and signs to promote their products. Their strategy is clear: To market their eco-friendliness, and to quickly and effectively communicate how socially responsible they are.”
Home Depot’s new “earth-friendly products” icon is below as an example:
http://images.businessweek.com/story/07/popup/0501_green_labeling_1.jpg
“Already, the label is associated with more than 2,500 products, ranging from compact fluorescent light bulbs to organic plants in biodegradable pots. Many, but not all, are verified by Scientific Certification Systems, an independent standards development and certification company.”
The sudden increase in various forms of environmental and social responsibility-type labels is designed to benefit from a growing consumer market:
“Each of these companies are looking to tap the growing numbers of socially responsible consumers. They have realized the power that the nearly five-year-old, USDA organic label wields among customers (products bearing the "organic" label represented a healthy $14.6 billion in total annual U.S. sales in 2005, the latest figures available from industry group Organic Trade Assn., up 17% from the year before).”
The problem, of course, is that the increased variety of symbols, marks, and icons, not to mention the huge variance in standards that underpin what is deemed to be ‘sustainable,’ ‘ethical,’ or ‘responsible,’ leads to further confusion. More important is the potential for abuse of consumer interest in CSR and products that support a responsible and sustainable business model, and also the dilution of meaning of what official labels (where they exist) mean over time:
“… while graphic designers, brand strategists, and consumer advocates alike agree that a proliferation of socially responsible corporations is healthy news for the environment, they're also cautioning that shoppers be wary or at least well-informed of the claims that each new, brand-specific eco-label conveys.”
Take care
Dave
Bill Werther & David Chandler
Strategic Corporate Social Responsibility
© Sage Publications, 2006
http://www.sagepub.com/Werther
Business Week Online
Insider Newsletter
Saturday, May 5, 2007
********************
READING THE NEW ECO LABELS
Retailers and manufacturers of non-food items are creating their own seals of approval for earth-friendly goods
by Reena Jana
Marketing May 2, 2007
http://www.businessweek.com/stories/2007-05-02/reading-the-new-eco-labelsbusinessweek-business-news-stock-market-and-financial-advice
“It's all part of a new trend spinning out from the current wave of eco-chic. Perhaps taking a cue from the U.S. Agriculture Dept.'s eye-catching, consumer-friendly, official labels for organic food, increasing numbers of non-food related stores and brands are introducing official-looking symbols and signs to promote their products. Their strategy is clear: To market their eco-friendliness, and to quickly and effectively communicate how socially responsible they are.”
Home Depot’s new “earth-friendly products” icon is below as an example:
http://images.businessweek.com/story/07/popup/0501_green_labeling_1.jpg
“Already, the label is associated with more than 2,500 products, ranging from compact fluorescent light bulbs to organic plants in biodegradable pots. Many, but not all, are verified by Scientific Certification Systems, an independent standards development and certification company.”
The sudden increase in various forms of environmental and social responsibility-type labels is designed to benefit from a growing consumer market:
“Each of these companies are looking to tap the growing numbers of socially responsible consumers. They have realized the power that the nearly five-year-old, USDA organic label wields among customers (products bearing the "organic" label represented a healthy $14.6 billion in total annual U.S. sales in 2005, the latest figures available from industry group Organic Trade Assn., up 17% from the year before).”
The problem, of course, is that the increased variety of symbols, marks, and icons, not to mention the huge variance in standards that underpin what is deemed to be ‘sustainable,’ ‘ethical,’ or ‘responsible,’ leads to further confusion. More important is the potential for abuse of consumer interest in CSR and products that support a responsible and sustainable business model, and also the dilution of meaning of what official labels (where they exist) mean over time:
“… while graphic designers, brand strategists, and consumer advocates alike agree that a proliferation of socially responsible corporations is healthy news for the environment, they're also cautioning that shoppers be wary or at least well-informed of the claims that each new, brand-specific eco-label conveys.”
Take care
Dave
Bill Werther & David Chandler
Strategic Corporate Social Responsibility
© Sage Publications, 2006
http://www.sagepub.com/Werther
Business Week Online
Insider Newsletter
Saturday, May 5, 2007
********************
READING THE NEW ECO LABELS
Retailers and manufacturers of non-food items are creating their own seals of approval for earth-friendly goods
by Reena Jana
Marketing May 2, 2007
http://www.businessweek.com/stories/2007-05-02/reading-the-new-eco-labelsbusinessweek-business-news-stock-market-and-financial-advice
Monday, November 10, 2008
Strategic CSR - Union Carbide
The article in the url below describes how the gas leak that occurred in Bhopal, India almost 25 years ago has still not been cleared up. As a result, the disaster continues to generate negative headlines for Union Carbide (and Dow Chemicals, which bought Union Carbide in 2001) on the front page of the NYT (Issues: Human Rights, p234):
“Hundreds of tons of waste still languish inside a tin-roofed warehouse in a corner of the old grounds of the Union Carbide pesticide factory here, nearly a quarter-century after a poison gas leak killed thousands and turned this ancient city into a notorious symbol of industrial disaster.”
Putting aside any arguments of moral responsibility, it is amazing that a firm like Dow does not just pay what it takes to make this problem go away (Chapter 1: A Rational Argument for CSR, p17):
“The toxic remains have yet to be carted away. No one has examined to what extent, over more than two decades, they have seeped into the soil and water … Nor has anyone bothered to address the concerns of those who have drunk that water and tended kitchen gardens on this soil and who now present a wide range of ailments, including cleft palates and mental retardation, among their children as evidence of a second generation of Bhopal victims.”
Over the summer, the Supreme Court delivered a decision on the 1989 Exxon Valdez case. Both that case and the Bhopal disaster reflect poorly (to say the least) on the strategic decisions taken by the executives of both companies. At least, however, Exxon has accepted some degree of responsibility for its role in the Valdez oil spill.
Take care
Dave
Bill Werther & David Chandler
Strategic Corporate Social Responsibility
© Sage Publications, 2006
http://www.sagepub.com/Werther
Decades Later, Toxic Sludge Torments Bhopal
By SOMINI SENGUPTA
1858 words
7 July 2008
The New York Times
Late Edition - Final
1
http://www.nytimes.com/2008/07/07/world/asia/07bhopal.html
“Hundreds of tons of waste still languish inside a tin-roofed warehouse in a corner of the old grounds of the Union Carbide pesticide factory here, nearly a quarter-century after a poison gas leak killed thousands and turned this ancient city into a notorious symbol of industrial disaster.”
Putting aside any arguments of moral responsibility, it is amazing that a firm like Dow does not just pay what it takes to make this problem go away (Chapter 1: A Rational Argument for CSR, p17):
“The toxic remains have yet to be carted away. No one has examined to what extent, over more than two decades, they have seeped into the soil and water … Nor has anyone bothered to address the concerns of those who have drunk that water and tended kitchen gardens on this soil and who now present a wide range of ailments, including cleft palates and mental retardation, among their children as evidence of a second generation of Bhopal victims.”
Over the summer, the Supreme Court delivered a decision on the 1989 Exxon Valdez case. Both that case and the Bhopal disaster reflect poorly (to say the least) on the strategic decisions taken by the executives of both companies. At least, however, Exxon has accepted some degree of responsibility for its role in the Valdez oil spill.
Take care
Dave
Bill Werther & David Chandler
Strategic Corporate Social Responsibility
© Sage Publications, 2006
http://www.sagepub.com/Werther
Decades Later, Toxic Sludge Torments Bhopal
By SOMINI SENGUPTA
1858 words
7 July 2008
The New York Times
Late Edition - Final
1
http://www.nytimes.com/2008/07/07/world/asia/07bhopal.html
Friday, November 7, 2008
Strategic CSR - Mobile phones
The article in the url below outlines the steps mobile phone companies are taking to develop products that appeal to consumers at the bottom-of-the-pyramid (Issues: Profit, p200):
“A study by Gartner, a technology research group, of related security issues estimated mobile phone payment systems could be available to 15 per cent of the world's 3bn unbanked people by the end of this year.”
The availability of mobile phones and the level of current technology make banking and financial services particularly amenable to the needs of BOP consumers. Often, consumers in this target market do not have bank accounts, but need to take out a loan, pay bills, or send money to friends and relatives, all of which can be done using their mobile phone:
“Mobile technology has the potential to offer cheap no-frills banking, at low risk, because transactions are monitored in real-time, on widely-used, high-quality infrastructure.”
This article came from a supplement in the FT on Sustainable Banking. Other articles in the same supplement can be found at:
http://www.ft.com/reports/sustainablebanking2008
Have a good weekend.
Dave
Bill Werther & David Chandler
Strategic Corporate Social Responsibility
© Sage Publications, 2006
http://www.sagepub.com/Werther
FT REPORT - SUSTAINABLE BANKING 2008
Mobile phone operators revolutionise cash transfers
Tieman, Ross
739 words
3 June 2008
Financial Times
Surveys SBA1
04
http://us.ft.com/ftgateway/superpage.ft?news_id=fto060220081321472830
“A study by Gartner, a technology research group, of related security issues estimated mobile phone payment systems could be available to 15 per cent of the world's 3bn unbanked people by the end of this year.”
The availability of mobile phones and the level of current technology make banking and financial services particularly amenable to the needs of BOP consumers. Often, consumers in this target market do not have bank accounts, but need to take out a loan, pay bills, or send money to friends and relatives, all of which can be done using their mobile phone:
“Mobile technology has the potential to offer cheap no-frills banking, at low risk, because transactions are monitored in real-time, on widely-used, high-quality infrastructure.”
This article came from a supplement in the FT on Sustainable Banking. Other articles in the same supplement can be found at:
http://www.ft.com/reports/sustainablebanking2008
Have a good weekend.
Dave
Bill Werther & David Chandler
Strategic Corporate Social Responsibility
© Sage Publications, 2006
http://www.sagepub.com/Werther
FT REPORT - SUSTAINABLE BANKING 2008
Mobile phone operators revolutionise cash transfers
Tieman, Ross
739 words
3 June 2008
Financial Times
Surveys SBA1
04
http://us.ft.com/ftgateway/superpage.ft?news_id=fto060220081321472830
Wednesday, November 5, 2008
Strategic CSR - Wal-Mart
The article in the url below deals with the prospect of firms’ CSR activity contracting during the expected economic recession:
“It is easy to imagine corporate social responsibility being the first fad that companies abandon during the downturn.”
This might be true, except for the fact that Wal-Mart’s CEO, Lee Scott, has chosen now to reaffirm his firm’s commitment to raising the profile of sustainability throughout operations:
“Lee Scott, Wal-Mart's chief executive, told a meeting of 1,000 Chinese suppliers in Beijing: "I firmly believe that a company that cheats on overtime and on the age of its labour, that dumps its scraps and its chemicals in our rivers, that does not pay its taxes or honour its contracts, will ultimately cheat on the quality of its products."”
The more I see and hear Scott speak on this issue, the more I am convinced he is genuine and, more importantly, is articulating an effective business case for CSR. In making this case, he is driven less by morals or ethics (a subjective minefield from which no firm emerges unscathed) and more by focusing on maximizing the long term value added by his organization:
“Hearing Wal-Mart say this still produces splutters of disbelief. … But Mr Scott has been talking this way since 2005, when he promised Wal-Mart would "sell products that sustain our resources and the environment".”
Two issues remain. First, it is not clear how comprehensive this ethos is throughout Wal-Mart and, as a result, what happens when a decision consistent with Scott’s message to “sustain our resources and environment” increases costs, rather than decreases them? And, second, Wal-Mart’s business model still relies on fostering economic growth through mass consumption and disposal/waste. The second point, in particular, might be a question for society rather than Wal-Mart (although, given the firm’s size, it is becoming hard to distinguish the two), but it still poses a threat to Scott’s claims to sustainability over the long term.
Take care
Dave
Bill Werther & David Chandler
Strategic Corporate Social Responsibility
© Sage Publications, 2006
http://www.sagepub.com/Werther
An ethics lesson from an unlikely quarter
Skapinker, Michael
829 words
28 October 2008
Financial Times
Asia Ed1
11
http://us.ft.com/ftgateway/superpage.ft?news_id=fto102720081602378640
“It is easy to imagine corporate social responsibility being the first fad that companies abandon during the downturn.”
This might be true, except for the fact that Wal-Mart’s CEO, Lee Scott, has chosen now to reaffirm his firm’s commitment to raising the profile of sustainability throughout operations:
“Lee Scott, Wal-Mart's chief executive, told a meeting of 1,000 Chinese suppliers in Beijing: "I firmly believe that a company that cheats on overtime and on the age of its labour, that dumps its scraps and its chemicals in our rivers, that does not pay its taxes or honour its contracts, will ultimately cheat on the quality of its products."”
The more I see and hear Scott speak on this issue, the more I am convinced he is genuine and, more importantly, is articulating an effective business case for CSR. In making this case, he is driven less by morals or ethics (a subjective minefield from which no firm emerges unscathed) and more by focusing on maximizing the long term value added by his organization:
“Hearing Wal-Mart say this still produces splutters of disbelief. … But Mr Scott has been talking this way since 2005, when he promised Wal-Mart would "sell products that sustain our resources and the environment".”
Two issues remain. First, it is not clear how comprehensive this ethos is throughout Wal-Mart and, as a result, what happens when a decision consistent with Scott’s message to “sustain our resources and environment” increases costs, rather than decreases them? And, second, Wal-Mart’s business model still relies on fostering economic growth through mass consumption and disposal/waste. The second point, in particular, might be a question for society rather than Wal-Mart (although, given the firm’s size, it is becoming hard to distinguish the two), but it still poses a threat to Scott’s claims to sustainability over the long term.
Take care
Dave
Bill Werther & David Chandler
Strategic Corporate Social Responsibility
© Sage Publications, 2006
http://www.sagepub.com/Werther
An ethics lesson from an unlikely quarter
Skapinker, Michael
829 words
28 October 2008
Financial Times
Asia Ed1
11
http://us.ft.com/ftgateway/superpage.ft?news_id=fto102720081602378640
Tuesday, November 4, 2008
Strategic CSR - Equator Principles
The purpose of this Newsletter is to direct those of you interested in the Equator Principles (Issues: Finance, p180) to the article in the url link below:
“The Equator Principles are a set of social and environmental standards for project finance. Banks signed up to the principles pledge to consider the impacts a proposed project, such as a mine, might have on the local environment and communities. The banks promise to make action to address these impacts a condition of their lending money to the borrower, or project sponsor, such as a mining company.”
The invited debate between Johan Frijns of BankTrack (http://www.banktrack.org/) and Leo Johnson of Sustainable Finance (http://www.sflnet.com/) was designed to mark the fifth anniversary of the introduction of the Equator Principles in 2003. The debate highlights some of the key successes and remaining problems associated with the program.
Take care
Dave
Bill Werther & David Chandler
Strategic Corporate Social Responsibility
© Sage Publications, 2006
http://www.sagepub.com/Werther
Ethical Corporation: Not an oxymoron
By Invitation: Debate, project finance
The Equator Principles – Is it a happy fifth birthday for the Equator Principles?
No, still need to do better, says Johan Frijns, BankTrack. Yes, many happy returns, says Leo Johnson, director Sustainable Finance
July 7, 2008
http://www.ethicalcorp.com/content.asp?ContentID=5989
“The Equator Principles are a set of social and environmental standards for project finance. Banks signed up to the principles pledge to consider the impacts a proposed project, such as a mine, might have on the local environment and communities. The banks promise to make action to address these impacts a condition of their lending money to the borrower, or project sponsor, such as a mining company.”
The invited debate between Johan Frijns of BankTrack (http://www.banktrack.org/) and Leo Johnson of Sustainable Finance (http://www.sflnet.com/) was designed to mark the fifth anniversary of the introduction of the Equator Principles in 2003. The debate highlights some of the key successes and remaining problems associated with the program.
Take care
Dave
Bill Werther & David Chandler
Strategic Corporate Social Responsibility
© Sage Publications, 2006
http://www.sagepub.com/Werther
Ethical Corporation: Not an oxymoron
By Invitation: Debate, project finance
The Equator Principles – Is it a happy fifth birthday for the Equator Principles?
No, still need to do better, says Johan Frijns, BankTrack. Yes, many happy returns, says Leo Johnson, director Sustainable Finance
July 7, 2008
http://www.ethicalcorp.com/content.asp?ContentID=5989
Friday, October 31, 2008
Strategic CSR - CSR
The article in the url below is one of the most concise and effective arguments for CSR I have read:
“… in our hyperconnected and transparent world, how you do things matters more than ever, because so many more people can now see how you do things, be affected by how you do things and tell others how you do things on the Internet anytime, for no cost and without restraint.”
The focus of the article is the predatory lending practices that led to the current financial crisis, but the same argument can be made in any area of a firm’s operations:
“We got away from these hows. We became more connected than ever in recent years, but the connections were actually very loose. … nobody was really connected in value terms.”
Friedman argues that:
“We need to get back to collaborating the old-fashioned way. That is, people making decisions based on business judgment, experience, prudence, clarity of communications and thinking about how -- not just how much.”
In short, we need to get back to a CSR perspective.
Have a good weekend.
Dave
Bill Werther & David Chandler
Strategic Corporate Social Responsibility
© Sage Publications, 2006
http://www.sagepub.com/Werther
Why How Matters
By THOMAS L. FRIEDMAN
897 words
15 October 2008
The New York Times
Late Edition - Final
35
http://www.nytimes.com/2008/10/15/opinion/15friedman.html
“… in our hyperconnected and transparent world, how you do things matters more than ever, because so many more people can now see how you do things, be affected by how you do things and tell others how you do things on the Internet anytime, for no cost and without restraint.”
The focus of the article is the predatory lending practices that led to the current financial crisis, but the same argument can be made in any area of a firm’s operations:
“We got away from these hows. We became more connected than ever in recent years, but the connections were actually very loose. … nobody was really connected in value terms.”
Friedman argues that:
“We need to get back to collaborating the old-fashioned way. That is, people making decisions based on business judgment, experience, prudence, clarity of communications and thinking about how -- not just how much.”
In short, we need to get back to a CSR perspective.
Have a good weekend.
Dave
Bill Werther & David Chandler
Strategic Corporate Social Responsibility
© Sage Publications, 2006
http://www.sagepub.com/Werther
Why How Matters
By THOMAS L. FRIEDMAN
897 words
15 October 2008
The New York Times
Late Edition - Final
35
http://www.nytimes.com/2008/10/15/opinion/15friedman.html
Wednesday, October 29, 2008
Strategic CSR - SOX
The article in the url below summarizes a report by the Government Accountability Project (“an advocacy group that provides legal advice to whistleblowers,” http://www.whistleblower.org/) that criticizes the 2002 Sarbanes-Oxley (SOX) legislation for failing to protect corporate whistleblowers (Issues: Corporate Governance—Reporting, p108). In particular, the report highlights the very narrow interpretation of the legislation, which is leading courts to favor companies over individuals:
“Many cases against defendant companies have been dismissed on the grounds that employees who worked for a corporate subsidiary are not necessarily covered by the whistleblower provision, according to Richard Moberly, a University of Nebraska law professor. "The provision is supposed to be interpreted broadly but it is being interpreted very narrowly," he says.”
In spite of the fact that the protection of whistleblowers was one of the central reasons for passing the legislation, the results of 1,273 complaints that have been filed under SOX indicate that the odds are still stacked in favor of large corporations:
“According to data from the Department of Labor, it has ruled in favour of whistleblowers 17 times in the 1,273 complaints filed from 2002 to the start of this month. Meanwhile, 841 cases were dismissed, 162 were withdrawn and 107 are pending.”
Take care
Dave
Bill Werther & David Chandler
Strategic Corporate Social Responsibility
© Sage Publications, 2006
http://www.sagepub.com/Werther
US legislation 'fails' to help corporate whistleblowers achieve justice
By Joanna Chung in New York
409 words
10 September 2008
Financial Times
USA Ed2
04
http://www.ft.com/cms/s/0/f7ba2db6-7ecf-11dd-b1af-000077b07658.html
“Many cases against defendant companies have been dismissed on the grounds that employees who worked for a corporate subsidiary are not necessarily covered by the whistleblower provision, according to Richard Moberly, a University of Nebraska law professor. "The provision is supposed to be interpreted broadly but it is being interpreted very narrowly," he says.”
In spite of the fact that the protection of whistleblowers was one of the central reasons for passing the legislation, the results of 1,273 complaints that have been filed under SOX indicate that the odds are still stacked in favor of large corporations:
“According to data from the Department of Labor, it has ruled in favour of whistleblowers 17 times in the 1,273 complaints filed from 2002 to the start of this month. Meanwhile, 841 cases were dismissed, 162 were withdrawn and 107 are pending.”
Take care
Dave
Bill Werther & David Chandler
Strategic Corporate Social Responsibility
© Sage Publications, 2006
http://www.sagepub.com/Werther
US legislation 'fails' to help corporate whistleblowers achieve justice
By Joanna Chung in New York
409 words
10 September 2008
Financial Times
USA Ed2
04
http://www.ft.com/cms/s/0/f7ba2db6-7ecf-11dd-b1af-000077b07658.html
Tuesday, October 28, 2008
Strategic CSR - Danone
The article in the url below is confusing. It outlines the Danone Communities Fund, but describes it in parts of the article as a means of “financing social businesses” and, in others, as a “financing model” designed as an investment fund (Issues: Finance, p180; Investing, p184):
“[Danone] has devised a financing model in which 90 per cent of investors' money will be ploughed into low-risk investments, weighted towards socially responsible investments. The other 10 per cent will go directly to the yoghurt project [a nutrient-rich yoghurt for poor consumers in Bangladesh]. The model is a Sicav (société d'investissement à capital variable), an open-ended collective investment fund common in France.”
Several questions come to mind: What were the motivations behind the fund—a social project or investment vehicle? Are investors asked to accept a lower level of return to meet the fund’s social goals? What is Danone, a “French food company,” doing designing investment funds?
“Anyone, from Danone staff to shareholders and institutional investors, can invest in the Danone Communities fund, which launched in December 2007 and is managed and marketed by Crédit Agricole. So far the fund has raised about €60m (£47): €20m from Danone, €24m from Credit Agricole, and the rest from other institutions and Groupe Danone's employees.”
The article is not clear on these questions, but I think it is also missing the broader point by confusing the firm’s and fund’s social and business goals. If this fund is not considered part of Danone’s philanthropic arm, then it is designed to generate a profit. Alternatively, if it is a philanthropic project, then perhaps it should make clear there will be a trade-off between reaching its social goals and ROI:
“In recent years, many groups have warmed to the idea of serving the world's poorest people while turning a profit. But the heavy investment in time and money and the unstable operating conditions concerned mean most of these activities remain far from profitable.”
Danone’s project looks interesting—unfortunately, the article describing it does not do it justice.
Take care
Dave
Bill Werther & David Chandler
Strategic Corporate Social Responsibility
© Sage Publications, 2006
http://www.sagepub.com/Werther
Yoghurt maker's recipe for funding social businesses
Murray, Sarah
664 words
7 July 2008
Financial Times
London Ed1
16
http://www.ft.com/cms/s/0/ff1bd10a-4bc0-11dd-a490-000077b07658.html
“[Danone] has devised a financing model in which 90 per cent of investors' money will be ploughed into low-risk investments, weighted towards socially responsible investments. The other 10 per cent will go directly to the yoghurt project [a nutrient-rich yoghurt for poor consumers in Bangladesh]. The model is a Sicav (société d'investissement à capital variable), an open-ended collective investment fund common in France.”
Several questions come to mind: What were the motivations behind the fund—a social project or investment vehicle? Are investors asked to accept a lower level of return to meet the fund’s social goals? What is Danone, a “French food company,” doing designing investment funds?
“Anyone, from Danone staff to shareholders and institutional investors, can invest in the Danone Communities fund, which launched in December 2007 and is managed and marketed by Crédit Agricole. So far the fund has raised about €60m (£47): €20m from Danone, €24m from Credit Agricole, and the rest from other institutions and Groupe Danone's employees.”
The article is not clear on these questions, but I think it is also missing the broader point by confusing the firm’s and fund’s social and business goals. If this fund is not considered part of Danone’s philanthropic arm, then it is designed to generate a profit. Alternatively, if it is a philanthropic project, then perhaps it should make clear there will be a trade-off between reaching its social goals and ROI:
“In recent years, many groups have warmed to the idea of serving the world's poorest people while turning a profit. But the heavy investment in time and money and the unstable operating conditions concerned mean most of these activities remain far from profitable.”
Danone’s project looks interesting—unfortunately, the article describing it does not do it justice.
Take care
Dave
Bill Werther & David Chandler
Strategic Corporate Social Responsibility
© Sage Publications, 2006
http://www.sagepub.com/Werther
Yoghurt maker's recipe for funding social businesses
Murray, Sarah
664 words
7 July 2008
Financial Times
London Ed1
16
http://www.ft.com/cms/s/0/ff1bd10a-4bc0-11dd-a490-000077b07658.html
Friday, October 17, 2008
Strategic CSR - Food
It will come as no surprise to many that a huge amount of the daily food consumption in the U.S. is wasted. The article in the url below, however, reports research that attempts to quantify just how much food this wastage represents:
“In 1997, in one of the few studies of food waste, the Department of Agriculture estimated that two years before, 96.4 billion pounds of the 356 billion pounds of edible food in the United States was never eaten.”
This amounts to “an estimated 27 percent of the food available for consumption” and is not only a U.S. phenomenon:
“In England, a recent study revealed that Britons toss away a third of the food they purchase, including more than four million whole apples, 1.2 million sausages and 2.8 million tomatoes. In Sweden, families with small children threw out about a quarter of the food they bought, a recent study there found.”
This NYT article reports that a new study is being undertaken to update the figure, this time accounting for the recent growth in pre-prepared food produced by supermarkets. Optimistically, Jonathan Bloom, the creator of the website WasteFood.com (http://wastefood.com/) believes recent events suggest things might be improving:
“The fundamental thing that I'm fighting against is, 'why should I care? I paid for it,' '' Mr. Bloom said. ''The rising prices are really an answer to that.”
Have a good weekend.
Dave
Bill Werther & David Chandler
Strategic Corporate Social Responsibility
© Sage Publications, 2006
http://www.sagepub.com/Werther
One Country's Table Scraps, Another Country's Meal
By ANDREW MARTIN
1548 words
18 May 2008
The New York Times
Late Edition - Final
3
http://www.nytimes.com/2008/05/18/weekinreview/18martin.html
Into the Trash It Goes: A federal study found that 96.4 billion pounds of edible food was wasted by U.S. retailers, food service businesses and consumers in 1995 -- about 1 pound of waste per day for every adult and child in the nation at that time. That doesn't count food lost on farms and by processors and wholesalers. For a family of four people, that amounted to about 122 pounds of food thrown out each month in grocery stores, restaurants, cafeterias and homes.
“In 1997, in one of the few studies of food waste, the Department of Agriculture estimated that two years before, 96.4 billion pounds of the 356 billion pounds of edible food in the United States was never eaten.”
This amounts to “an estimated 27 percent of the food available for consumption” and is not only a U.S. phenomenon:
“In England, a recent study revealed that Britons toss away a third of the food they purchase, including more than four million whole apples, 1.2 million sausages and 2.8 million tomatoes. In Sweden, families with small children threw out about a quarter of the food they bought, a recent study there found.”
This NYT article reports that a new study is being undertaken to update the figure, this time accounting for the recent growth in pre-prepared food produced by supermarkets. Optimistically, Jonathan Bloom, the creator of the website WasteFood.com (http://wastefood.com/) believes recent events suggest things might be improving:
“The fundamental thing that I'm fighting against is, 'why should I care? I paid for it,' '' Mr. Bloom said. ''The rising prices are really an answer to that.”
Have a good weekend.
Dave
Bill Werther & David Chandler
Strategic Corporate Social Responsibility
© Sage Publications, 2006
http://www.sagepub.com/Werther
One Country's Table Scraps, Another Country's Meal
By ANDREW MARTIN
1548 words
18 May 2008
The New York Times
Late Edition - Final
3
http://www.nytimes.com/2008/05/18/weekinreview/18martin.html
Into the Trash It Goes: A federal study found that 96.4 billion pounds of edible food was wasted by U.S. retailers, food service businesses and consumers in 1995 -- about 1 pound of waste per day for every adult and child in the nation at that time. That doesn't count food lost on farms and by processors and wholesalers. For a family of four people, that amounted to about 122 pounds of food thrown out each month in grocery stores, restaurants, cafeterias and homes.
Thursday, October 16, 2008
Strategic CSR - P&G
The article in the url below presents the opportunities and challenges for firms seeking to engage with stakeholders online (Issues: Stakeholder Relations, p138). The article is a review of a new book titled ‘Groundswell’ that profiles different case studies of firms’ attempts to establish an online dialogue with stakeholders (primarily customers):
“As part of P&G's embrace of "social technologies", the site launched a messageboard late last year allowing customers to share their views on stain removal and, more controversially, packaging.”
The postings by customers, as the article illustrates, were not very complimentary. But P&G’s mistake was not setting-up the site, but giving the impression of not listening to or acting upon the issues that were raised:
“… the boards contain no response to the gripes, nor has the company taken down repetitive postings. … P&G has opted to let its customers talk openly on its website, but it has not shown it is taking notice.”
The book presents a number of examples (both good and bad) of firms’ attempts to establish this virtual dialogue with their stakeholders. It argues that, even done with the best of intentions, offering an opportunity for stakeholders to debate the virtues of a product can end up harming a firm’s reputation if it is not done either genuinely or well. As such, firms need to understand their stakeholders, what their concerns are, and who among them are likely to participate in online forums before beginning:
“Lego, for example, finds "Lego Ambassadors" among its AFOLs, or Adult Fans of Lego, and uses them to communicate with a global online community of adult hobbyists who account for 5 to 10 per cent of the toymaker's business.”
Take care
Dave
Bill Werther & David Chandler
Strategic Corporate Social Responsibility
© Sage Publications, 2006
http://www.sagepub.com/Werther
Dangerous e-liaisons with the customer
By Jonathan Birchall
814 words
5 June 2008
Financial Times
USA Ed1
12
http://us.ft.com/ftgateway/superpage.ft?news_id=fto060420081503173239
“As part of P&G's embrace of "social technologies", the site launched a messageboard late last year allowing customers to share their views on stain removal and, more controversially, packaging.”
The postings by customers, as the article illustrates, were not very complimentary. But P&G’s mistake was not setting-up the site, but giving the impression of not listening to or acting upon the issues that were raised:
“… the boards contain no response to the gripes, nor has the company taken down repetitive postings. … P&G has opted to let its customers talk openly on its website, but it has not shown it is taking notice.”
The book presents a number of examples (both good and bad) of firms’ attempts to establish this virtual dialogue with their stakeholders. It argues that, even done with the best of intentions, offering an opportunity for stakeholders to debate the virtues of a product can end up harming a firm’s reputation if it is not done either genuinely or well. As such, firms need to understand their stakeholders, what their concerns are, and who among them are likely to participate in online forums before beginning:
“Lego, for example, finds "Lego Ambassadors" among its AFOLs, or Adult Fans of Lego, and uses them to communicate with a global online community of adult hobbyists who account for 5 to 10 per cent of the toymaker's business.”
Take care
Dave
Bill Werther & David Chandler
Strategic Corporate Social Responsibility
© Sage Publications, 2006
http://www.sagepub.com/Werther
Dangerous e-liaisons with the customer
By Jonathan Birchall
814 words
5 June 2008
Financial Times
USA Ed1
12
http://us.ft.com/ftgateway/superpage.ft?news_id=fto060420081503173239
Monday, October 13, 2008
Strategic CSR - American Apparel
The article in the url below demonstrates the limits for firms that rely too heavily on the market segment of ethical consumers (Chapter 2: CSR: Do Stakeholders Care? p25):
“In the beginning, American Apparel put a "sweatshop free" label on its t-shirts. But sex turned out to be a better sell than good labor practices. Lessons in the limits of altruism.”
The pessimistic (or realistic, depending on your perspective) view of human nature held by Dov Charney, America Apparel’s CEO, is that “to get what you want, you must appeal to people's self-interest, not to their mercy.” The article argues that the success of Charney’s approach, at least in relation to the teenage customer to whom American Apparel seeks to appeal, lies in understanding the gap between people’s stated intentions and actual practice:
“A whopping majority of American shoppers may consider themselves environmentalists, but, according to the Journal of Industrial Ecology, only 10% to 12% "actually go out of their way to purchase environmentally sound products." Similarly, Brandweek reported on a survey that found that even among consumers who called themselves "environmentally conscious," more than half could not name a single green brand.”
The article argues that, instead, successful ethical retailers rely on other research that suggests people are much happier treating themselves to luxury items, while at the same time feeling like they are doing something virtuous:
“Perhaps this is why many big companies and brands are not so much changing their products as adding new alternatives to their existing product mixes, or carving a small donation to charity out of their profit margins. Pepsi-Cola is testing an all-natural version of its flagship drink called Pepsi Raw, and Clorox has launched an eco-friendly line of cleaning products. The Bono-promoted (Product) Red initiative brands existing products that dedicate a portion of the purchase price to the Global Fund to Fight AIDS, Tuberculosis, and Malaria. There's even a (Product) Red version of the iPod.”
Take care
Dave
Bill Werther & David Chandler
Strategic Corporate Social Responsibility
© Sage Publications, 2006
http://www.sagepub.com/Werther
Sex vs ethics
Fast Company Magazine
It's a dilemma for investors who want hefty returns and a clean green conscience: Can you own Big Oil and still feel good in the morning?
From: Issue 124 | April 2008 | Pages 54-56 | By: Rob Walker
http://www.fastcompany.com/magazine/126/sex-vs-ethics.html
“In the beginning, American Apparel put a "sweatshop free" label on its t-shirts. But sex turned out to be a better sell than good labor practices. Lessons in the limits of altruism.”
The pessimistic (or realistic, depending on your perspective) view of human nature held by Dov Charney, America Apparel’s CEO, is that “to get what you want, you must appeal to people's self-interest, not to their mercy.” The article argues that the success of Charney’s approach, at least in relation to the teenage customer to whom American Apparel seeks to appeal, lies in understanding the gap between people’s stated intentions and actual practice:
“A whopping majority of American shoppers may consider themselves environmentalists, but, according to the Journal of Industrial Ecology, only 10% to 12% "actually go out of their way to purchase environmentally sound products." Similarly, Brandweek reported on a survey that found that even among consumers who called themselves "environmentally conscious," more than half could not name a single green brand.”
The article argues that, instead, successful ethical retailers rely on other research that suggests people are much happier treating themselves to luxury items, while at the same time feeling like they are doing something virtuous:
“Perhaps this is why many big companies and brands are not so much changing their products as adding new alternatives to their existing product mixes, or carving a small donation to charity out of their profit margins. Pepsi-Cola is testing an all-natural version of its flagship drink called Pepsi Raw, and Clorox has launched an eco-friendly line of cleaning products. The Bono-promoted (Product) Red initiative brands existing products that dedicate a portion of the purchase price to the Global Fund to Fight AIDS, Tuberculosis, and Malaria. There's even a (Product) Red version of the iPod.”
Take care
Dave
Bill Werther & David Chandler
Strategic Corporate Social Responsibility
© Sage Publications, 2006
http://www.sagepub.com/Werther
Sex vs ethics
Fast Company Magazine
It's a dilemma for investors who want hefty returns and a clean green conscience: Can you own Big Oil and still feel good in the morning?
From: Issue 124 | April 2008 | Pages 54-56 | By: Rob Walker
http://www.fastcompany.com/magazine/126/sex-vs-ethics.html
Friday, October 10, 2008
Strategic CSR - Wal-Mart
Just in case some of you missed it on the slow media day of July 4, the article in the url below discusses the meaning behind Wal-Mart’s new logo:
“Something's up at Wal-Mart. Visitors to walmart.com will notice that the logo consumers have become accustomed to over the past 17 years is gone. Gone, too, are the sharp, uppercase letters spelling out the name of the Bentonville (Ark.) company and the pointy star that served as a hyphen. In its place: a new logo made up of rounded, lowercase characters. The hyphen has disappeared. And in place of the star is a symbol that resembles a sunburst or flower. It appears after the "Walmart" name, like an asterisk begging for a footnote.”
http://images.businessweek.com/story/08/190/0702_walmart.jpg
The article argues that the logo, which was officially launched on June 30, is an attempt by Wal-Mart’s to capitalize on its increasing reputation for progressive action in relation to environmental sustainability. The introduction of the new logo (changing from “Everyday low prices” to “Save money. Live better.”):
“… coincides with CEO H. Lee Scott's goal of transforming Wal-Mart—most recently under fire for losing a Minnesota court case over breaking labor laws—into a more environmentally friendly corporation.”
The article contains quotes, however, that suggest the design will fall short of its intentions:
“[Marty Neumeier, president of Neutron, a branding firm in San Francisco] adds that the image lacks the distinctive power of the most successful logos, such as Target's (TGT) bull's eye, which is immediately recognizable. Wal-Mart's new sunburst, in contrast, "is designed so simply that there's no ownership to it," Neumeier says. In other words, it could be used by almost any corporation.”
Have a good weekend.
Dave
Bill Werther & David Chandler
Strategic Corporate Social Responsibility
© Sage Publications, 2006
http://www.sagepub.com/Werther
Business Week Online
Insider Newsletter
July 3, 2008
********************
Wal-Mart Gets a Facelift
Gone are the mega-retailer's blocky letters, hyphen, and star. Can Wal-Mart remake itself by remaking its logo?
by Reena Jana
http://newsletters.businessweek.com/c.asp?713736&c55a2ee820194f0f&14
“Something's up at Wal-Mart. Visitors to walmart.com will notice that the logo consumers have become accustomed to over the past 17 years is gone. Gone, too, are the sharp, uppercase letters spelling out the name of the Bentonville (Ark.) company and the pointy star that served as a hyphen. In its place: a new logo made up of rounded, lowercase characters. The hyphen has disappeared. And in place of the star is a symbol that resembles a sunburst or flower. It appears after the "Walmart" name, like an asterisk begging for a footnote.”
http://images.businessweek.com/story/08/190/0702_walmart.jpg
The article argues that the logo, which was officially launched on June 30, is an attempt by Wal-Mart’s to capitalize on its increasing reputation for progressive action in relation to environmental sustainability. The introduction of the new logo (changing from “Everyday low prices” to “Save money. Live better.”):
“… coincides with CEO H. Lee Scott's goal of transforming Wal-Mart—most recently under fire for losing a Minnesota court case over breaking labor laws—into a more environmentally friendly corporation.”
The article contains quotes, however, that suggest the design will fall short of its intentions:
“[Marty Neumeier, president of Neutron, a branding firm in San Francisco] adds that the image lacks the distinctive power of the most successful logos, such as Target's (TGT) bull's eye, which is immediately recognizable. Wal-Mart's new sunburst, in contrast, "is designed so simply that there's no ownership to it," Neumeier says. In other words, it could be used by almost any corporation.”
Have a good weekend.
Dave
Bill Werther & David Chandler
Strategic Corporate Social Responsibility
© Sage Publications, 2006
http://www.sagepub.com/Werther
Business Week Online
Insider Newsletter
July 3, 2008
********************
Wal-Mart Gets a Facelift
Gone are the mega-retailer's blocky letters, hyphen, and star. Can Wal-Mart remake itself by remaking its logo?
by Reena Jana
http://newsletters.businessweek.com/c.asp?713736&c55a2ee820194f0f&14
Wednesday, October 8, 2008
Strategic CSR - GE
You can read the news reported in the article in the url below that GE’s “green sales” rose by 15% from 2006 to 2008 in two different ways. The optimist will see it as evidence of the potential market for sustainability related products and, therefore, further support for the business case for CSR:
“Sales of products labelled by General Electric as "environmentally friendly" rose to $14bn last year … from $12bn in 2006.”
The skeptic, however, is more likely to question the underlying growth and the way in which GE classifies a product as ‘green’:
“GE's Ecomagination products are independently audited to ensure they are environmentally friendly, but the definition the company uses means products not usually thought of as green, such as jet engines, can be included if they are more energy efficient than their predecessor or rival products, and nuclear reactors are included as they produce energy without carbon.”
Such a skeptic might continue to argue that, while sales in GE’s ‘green’ sector have increased by 15% since 2006, the number of products the firm classifies as ‘green’ has increased by 38%:
“In 2006, there were 45 product lines under the brand; last year, this rose to 62 lines, an increase of 38 per cent.”
A skeptic might conclude, therefore, that this casts the “buoyant” sales in a different light and wonder whether the figures demonstrate anything other than creative accounting.
Take care
Dave
Bill Werther & David Chandler
Strategic Corporate Social Responsibility
© Sage Publications, 2006
http://www.sagepub.com/Werther
Buoyant GE sees 'green' sales up by 15%
By Fiona Harvey in London
474 words
28 May 2008
Financial Times
London Ed1
26
http://us.ft.com/ftgateway/superpage.ft?news_id=fto052820080125501937
“Sales of products labelled by General Electric as "environmentally friendly" rose to $14bn last year … from $12bn in 2006.”
The skeptic, however, is more likely to question the underlying growth and the way in which GE classifies a product as ‘green’:
“GE's Ecomagination products are independently audited to ensure they are environmentally friendly, but the definition the company uses means products not usually thought of as green, such as jet engines, can be included if they are more energy efficient than their predecessor or rival products, and nuclear reactors are included as they produce energy without carbon.”
Such a skeptic might continue to argue that, while sales in GE’s ‘green’ sector have increased by 15% since 2006, the number of products the firm classifies as ‘green’ has increased by 38%:
“In 2006, there were 45 product lines under the brand; last year, this rose to 62 lines, an increase of 38 per cent.”
A skeptic might conclude, therefore, that this casts the “buoyant” sales in a different light and wonder whether the figures demonstrate anything other than creative accounting.
Take care
Dave
Bill Werther & David Chandler
Strategic Corporate Social Responsibility
© Sage Publications, 2006
http://www.sagepub.com/Werther
Buoyant GE sees 'green' sales up by 15%
By Fiona Harvey in London
474 words
28 May 2008
Financial Times
London Ed1
26
http://us.ft.com/ftgateway/superpage.ft?news_id=fto052820080125501937
Monday, October 6, 2008
Strategic CSR - Zappos
The article in the url below summarizes a recent article in Harvard Business Online (‘Why Zappos Pays New Employees to Quit—And You Should Too,’ http://discussionleader.hbsp.com/taylor/2008/05/wy_zappos_pays_new_employees_t.html) about a firm I hadn’t heard of before—Zappos. For the similarly uninitiated:
“Zappos delivers shoes, handbags and other products ordered over the Internet. Delivery is free and fast, and customers can return unwanted products at no charge.”
The article praises Zappos for its exceptional customer service and argues that the reason it is so consistent in this area is due to the employees it hires (Issues: Employee Relations, p118; Wages, p204):
“After a few weeks of intensive training, new call-center employees are offered $1,000 on top of what they have earned to that point if they want to quit.”
Zappos reasons that those employees who take the firm up on its offer do not have the level of commitment it is looking for, while those that refuse it are more likely to be enjoying what they are doing. Quite a refreshing approach to employee retention!
Take care
Dave
Bill Werther & David Chandler
Strategic Corporate Social Responsibility
© Sage Publications, 2006
http://www.sagepub.com/Werther
Shoe Seller's Secret of Success
By DAN MITCHELL
650 words
24 May 2008
The New York Times
Late Edition - Final
5
http://www.nytimes.com/2008/05/24/technology/24online.htm
“Zappos delivers shoes, handbags and other products ordered over the Internet. Delivery is free and fast, and customers can return unwanted products at no charge.”
The article praises Zappos for its exceptional customer service and argues that the reason it is so consistent in this area is due to the employees it hires (Issues: Employee Relations, p118; Wages, p204):
“After a few weeks of intensive training, new call-center employees are offered $1,000 on top of what they have earned to that point if they want to quit.”
Zappos reasons that those employees who take the firm up on its offer do not have the level of commitment it is looking for, while those that refuse it are more likely to be enjoying what they are doing. Quite a refreshing approach to employee retention!
Take care
Dave
Bill Werther & David Chandler
Strategic Corporate Social Responsibility
© Sage Publications, 2006
http://www.sagepub.com/Werther
Shoe Seller's Secret of Success
By DAN MITCHELL
650 words
24 May 2008
The New York Times
Late Edition - Final
5
http://www.nytimes.com/2008/05/24/technology/24online.htm
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