New York CSR professionals about corporate sustainability

Last night the New York CSR Meetup got together for another of its regular monthly meetings - April CSR Social. We met at Honey, a lounge bar with interesting history, great fondues and own sustainability plans in Chelsea/West Village.

Because of interesting trends in corporate sustainability area, we chose to discuss the progress and, particularly, the challenges companies face in their efforts to develop, manufacture and sell greener products. We used the case of Procter & Gamble as example of a company known to do a good job and tried to answer some of the questions raised by Mallen Baker's "Procter & Gamble - how far does the sustainable product revolution go?".

In 2007, P&G announced a sales target for "sustainable innovation products" of $20 billion by 2012. P&G’s net sales in 2008 were $83 billion, including $2 billion of sales of such eco-products. The way P&G decided to achieve this target was primarily through the compaction of liquid laundry ingredients. More concentrated formulas mean smaller quantities need to be used to achieve the same results, less transportation required to ship the product to the point of sale, and less energy and water embedded in the product. Only products launched since July 2007 and having more than ten percent reduction in one or more inputs (energy; water; transportation; raw material) qualified under the company's target as eco-products.

Our group agreed that, although the actual environmental impact of the $2 billion sales target is rather small, it is however important that a global company voluntarily set a goal like this. P&G sets an example of companies harboring a wholistic approach of their environmental impact and attempt to reduce it. In addition to Mallen's questions, our group identified an additional set of issues:

1.Packaging is an important aspect that is often neglected. Being able to pump eco-detergent into washing machines does not sound like such a crazy idea. Ikea is known for great progress in reducing packaging.

2. Cleaning the manufacturing processes is more important than ever as this MIT study suggests.

3. Consumer education is key in achieving sustainability targets. In case of P&G products, people might buy compactified laundry detergents or cold-water detergents but still use if as regular products.

All in all, we had a great CSR Social. Thank you everyone for participating! And if you, too, want to express your opinion, network and socialize within the New York CSR community, please join us here to be informed about our next events.

How tabacco companies can help end the teenage smoking epidemic

I've been long wondering what the social responsibility of tobacco companies should be. On one hand, it is counterproductive to discourage their CSR efforts in areas such as health, education, disaster relief or community development. On the other hand, applauding these efforts in the context of their main product - cigarettes - is, softly speaking, morally inappropriate. So what could tobacco companies do if they genuinely wanted to become socially responsible?

I found an answer to this question in Malcolm Gladwell's book The Tipping Point. How Little Things Can Make a Big Difference which I've greatly enjoyed reading. He says we should stop bedeviling tobacco companies and wasting enormous amounts of money on educating teenagers about the harmful effects of smoking. Apparently, we've been doing this for years but the teenage smoking epidemic has only expanded. Instead we should make cigarettes less addictive, or to use Gladwell's terminology, less 'sticky.' He bases his argument on scientific research that suggests that:

...tobacco companies be required to lower the level of nicotine so that even the heaviest smokers - those smoking, say, 30 cigarettes a day - could not get anything more than five milligrams of nicotine within a 24-hour period - adequate to prevent or limit the development of addiction in most young people, while providing enough nicotine for taste and sensory stimulation.

This to me sounds like a great compromise: tobacco companies could continue their business while the product they sell would become less dangerous. "Cigarette smoking would be less like the flu and more like the common cold: easily caught but easily defeated." This is would be an example of a little thing that can bring about big change. Would the regulators and tabacco companies be willing to do this? What do you think?

Photo credit: CC@Valentin.Ottone

My printer ignored the Earth Day

I did not do much today to celebrate the Earth Day. Actually, my printer completely ignored the significance of today and wasted some paper while I was multi-tasking. I'll make up for today on Saturday when I will be volunteering with the Council of the Environment of New York City helping kids learn about solar ovens.

I am, however, very much interested in what others have been up to today. Quite nice and exciting stuff happened out there. See Motorola's cell phone recycling initiative, Enterprise Rent-A-Car's tree planting project or AnalySYS's achieving carbon neutrality.

Also, I found this Earth Day-appropriate video, The Story of Stuff. It exposes the connections between a huge number of environmental and social issues, and calls us together to create a more sustainable and just world. Enjoy!

Muhammad Yunus: how to get Moldova and the rest of the world out of poverty

Two distinguished personalities made inspiring keynote speeches at yesterday's event: President Bill Clinton and Professor Muhammad Yunus. Prof. Yunus also provided a hint about ways to address Moldova's problems.

This blog features Prof. Yunus' speech which focused on his vision on eradicating poverty in the world. He believes that the current financial system is inherently flawed because it excludes roughly two thirds of the world's population. Out of his determination to find a way to provide financing to the poor, the microfinancing model emerged in his home country, Bangladesh and then spread all over the world, reaching even Queens, New York.

The clients - and owners - of the Grameen Bank are poor women from rural areas in Bangladesh. They can afford to send their children to school who eventually become exposed to and prepared to respond to existing economic opportunities. Their children's children receive even better education and climb a step higher on the social ladder. This is the idea at the heart of Grameen Bank. By releasing their latent energy, people can get themselves out of poverty. Yunus' answer to the fundamental question Why are people poor? is:

"Poverty is not created by the poor people. It is not their fault. Poverty is created by the institutions we build or don't build, by policies we pursue, by concepts we have designed. Poverty is not in the person. Poverty is an artificial imposition on the person."

Yunus stresses the importance of building a new economic paradigm which would include not only the selfishness inherent in the human nature but also the powerful human drive for selfless deeds, for helping others. Selfishness and selflessness can successfully coexist in the social business model. Recycling money (social business or entrepreneureship) is more effective than giving away money (philanthropy) because the money (scarce resource) is used multiple/endless times and creates sustainable change. People can make money and then spend that money wisely on a social cause. Social business can make people truly happy, and ultimately, solve many of today's urgent global problems. In the end, Muhammad Yunus shared his powerful vision of a world without poverty:

"There is no reason why anybody should be poor in the world. When we clean up the poverty in the world, we will create create poverty museums so our children's children can see what poverty used to be."

Live from the Georgetown Global Forum in New York City

The 2nd panel of the Forum has just finished and while the participants are preparing to listen to Muhammad Yunus' keynote speech, I'll be in the Press Room and give you the scoop from the Doing Well, Doing Good: New Corporate Paradigm panel.

For those of you who want to listen to Mr. Yunus' speech that is about to start in about 20 minutes, you can do so by connecting to the event's live feed stream .

The panel was moderated by Mark Dybul and focused the discussion around three main themes regarding what companies' approaches to: 1) maximize the impact of their philanthropic work, 2) maximize the impact of their operations internally; 3) maximize the long-term business opportunities.

Richard Edelman started off the discussion with 3 major points:

-trust in business has collapsed significantly (from 58% to 38%, which is lower than the 2003 level)
-trust in business is still higher than trust in governments
-non-governmental institutions enjoy the highest trust ranking

In addition, he said that the business environment has successfully evolved from its exclusive focus on shareholders to a broader focus on stakeholders. More people with interest in the larger societal good are now participating the the decision-making process in the corporate world.

He also mentioned that given the financial crisis, people increasingly value transperancy. Before trusting anybody, particularly a company, people will want to see a certain piece of information in five different places. People trust CEOs the least, therefore the positive message about a company needs to come from partnering NGOs, experts, activitists.

Chuck Dages talked about Warner Bros.' involvement in the President's Emergency Plan for AIDS Relief (PEPFAR) project. The company sees itself as a global corporate citizen given that it exports its products (including my favorite show "Friends") all over the world and it believes that it can use its position in the marketplace and technology to benefit those most in need.

Raymond G. Chambers talked about the satisfaction of doing good as the main incentives for philanthropists such as him.

Dr. Muhammad Yunus has just completed his truly inspirational speech! He ended it with "When we are done cleaning the world from poverty, we can create poverty museums for our children to see and learn. Let's do it fast!" I plan to write a separate post about Dr. Yunus' speech as he made some very interesting points regarding social business/entrepreneurship vs. philanthropy.

For now, I'll go back to covering the panel about corporate social responsibility.

Raymond G. Chambers talked about Twitter and the recent contest between Ashton Kutcher and CNN on who can get the most followers. As winner (with over 1 million followers), Kutcher will get to buy 10,000 malaria nets for World Malaria Day. The point was that technologies such as Twitter bring with them various opportunties that companies should take the time to explore.

Karen P. Tandy of Motorola talked about how a whole new market emerged from the company's corporate social responsibility efforts in Rwanda. The company initially donated cellular phones to health care workers to collect data on AIDS outbreaks throughout the country. In addition, Karen stressed the importance of CSR efforts on improving staff retention. By engaging in helping its host communities, Motorola creates opportunities for its employees to feel good and accomplished in multiple ways. Such programs are very effective in energizing the company's staff.

Desiree Filippone of Eli Lilly and Company talked about their efforts in increasing availability of TB drugs in developing countries such as Russia. One of the means - and an important byproduct - of this strategy is transfer of technology to these countries so that eventually they would start producing their own drugs. In response to a question from the audience, Desiree mentioned that the company is applying the Web 2.0 model to CSR, specifically by encouraging scientists from all over the world to provide solutions to unresolved challenges and areas. The company is providing finacially rewards for good ideas/solutions.

New corporate paradigms as key to global development

I'm looking forward to attending the second annual Georgetown Global Forum "Profit, Policy and Philanthropy - The Keys to Global Development" that will take place on Friday, April 17 in New York City. It is sponsored by Georgetown University in partnership with Eli Lilly and Company, a pharmaceutical company committed to addressing global health challenges such as diabetes and multidrug-resistant tuberculosis.

Taking place just weeks after G20 leaders committed significant resources to the developing world, this event is expected to serve as a sounding board and laboratory to examine new methods of development for a sustainable future. Forum participants, currently engaged in wide-ranging development programs, are expected to share best practices and insights, discuss and debate productive approaches, and collaborate on meaningful programs designed to alleviate suffering and assist developing societies, especially in the current economic downturn. The full program of the event is here.

I expect very interesting discussions. The event will include two keynote speeches (President Bill Clinton, founder, William J. Clinton Foundation and 42nd President of the United States and Muhammad Yunus, Nobel Peace Prize Winner and microfinance pioneer) and five panels:

1. Wall Street Meets Unpaved Streets: The Global Impact of the Financial Crisis
2. Doing Well, Doing Good: New Corporate Paradigms
3. Essential Building Blocks: The Case for Quality Education for All
4. The Faith Factor: The Role of Faith-based Organizations in Global Development
5. In With the New: New Ways for Non-Profits

Given the topic of this blog, I will cover the 2nd panel in more detail. To get you thinking and ready for the upcoming discussions, here is the panel description.

A paradigm shift is underway in the corporate sector toward greater social responsibility and the idea that doing well financially means doing good morally. In recent years, many companies have invested in innovative initiatives that demonstrate how responsible global leadership and good corporate citizenry can pay dividends on and beyond the balance sheet. With an awakening of our global connectedness, many companies are finding it prudent to invest in good works for the benefit of their employees, customers, investors and the bottom line. By making fundamental – even profound – contributions to global health, nutrition, housing, the environment, education and economic development, companies that make corporate citizenship a company value will help to achieve real strategic and societal goals.

The following people will deliver this panel (full list speakers and bios):

Dr. Howard Federoff, Executive Vice President for Health Sciences,Georgetown University; Executive Dean, Georgetown University School of Medicine
Dr. Mark Dybul, Former United States Global AIDS Coordinator; Georgetown University Distinguished Scholar; Co-director, O’Neill Institute for National and Global Health Law
Ray Chambers, Philanthropist; UN Secretary-General’s Special Envoy for Malaria; Founding Chair, Points of Light Institute
Chuck Dages, Executive Vice President, Emerging Technology, Warner Bros. Home Entertainment Group
Richard Edelman, President and Chief Executive Officer, Daniel J. Edelman, Inc.
Desiree G. Filippone, Director, International Government Affairs, Eli Lilly and Company
Karen P. Tandy, Senior Vice President, Public Affairs and Communications, Motorola, Inc.

Paula Luff of Hess Corporation: We are moving in the right direction

Our series of interviews with CSR professionals in American companies continues. This time my attention was drawn toward a global company in the extractive industry, Hess Corporation.

Paula Luff, Hess Corporation's Director of Corporate Social Responsibility and I talked about the beginnings of corporate responsibility, the way the company’s internal processes and relationships with stakeholders evolved over time, the company’s environmental impact and community development efforts. If you have additional questions or comments, please share them in the comments section below.

LC: How did Hess Corporation’s commitment for social and environmental issues begin?

PL: The company’s commitment has been an integral part its operations and extremely important to our senior management since its very beginning. However, a distinct moment in the past does come to mind. Hess Corporation has long had operations on the island of Saint Lucia. In 1980 the devastating Hurricane Allen wiped out virtually all schools on the island. Mr. Leon Hess – the company’s founder – committed to rebuilding those schools and consequently the company worked with the island government in this effort. That project was also in line with the company’s broader interest in improving education in countries where it operated.

LC: How have Hess Corporation’s internal processes improved since it embraced corporate responsibility? How have relationships with your main stakeholders improved?

PL: The first area the company began to address was safety. We also looked at our human rights record and transparency issues. In the late 90’s, the company began to think more systematically about corporate responsibility and the company became really focused on measuring its environmental impact. The company became a signatory to and active in the UN Global Compact. We are also active in the Extractive Industry Transparency Initiative and Voluntary Principles on Security and Human Rights. The company is really good at anticipating potential risks and addressing them accordingly. All these efforts came together and became more refined over the last eight-ten years. The company excels at collecting and using data to track progress in all these areas.

As for the stakeholders, the company’s culture is very low-key. We don’t do a lot of media relations. However, our senior executives are very involved in a variety of stakeholder relations directly. We make sure that our suppliers understand that they need to embrace our code of conduct and international conventions that we are proud to support.

LC: Has your environmental impact reduced? Is it going to be even smaller tomorrow?

PL: Doing business in the extractive industry is inherently challenging from the environmental perspective. Today the company is bigger than it was ten years ago, so the environmental impact has increased due to organic growth of companies’ operations. Nonetheless we have initiated carbon-sequestration efforts in Algeria and Equatorial Guinea which will help to progressively reduce the company’s footprint over the next several years. We have a huge focus on other parts of the environmental impact, including an energy conservation program across the company. At least 10% of energy consumed by the company comes from renewable sources. We are moving in the right direction.

LC: Please tell us about one corporate responsibility initiative that Hess Corporation is most proud of.

PL: It is an one of our philanthropy initiatives which is being carried out in partnership with the government and the Academy for Educational Development in Equatorial Guinea. The objective of the program is to transform the primary education in this country. It is a pilot project, but due to the country’s small population (about half a million people), the scope of the project is quite significant. Together with our partners we have refurbished 40 primary schools and equipped them with all necessary educational materials. We are also drilling water wells and building latrines at these schools to improve water access to water and sanitation. We are also training 1,200 teachers and developing new curriculum. The community leaders have been engaged in this program so as to ensure a high degree of sustainability through community buy-in and ownership. Parents have also been very involved and are very excited about the impact of this program on the schools and the community. Another big piece of the program is working with the Ministry of Education to build policy implementation capacities needed to effectively provide universal primary education. We are very proud about the results of this program and the impact we helped achieve.

Note: For more about Hess Corporation’s CSR efforts please check the company's annual reports.

Moldova: looking for answers at Georgetown Global Forum

Most of you have probably heard of the recent political unrest caused by the results of parliamentary elections in the Republic of Moldova - the country where I am from. Check here and here and here for updates on the situation.

The biggest lesson from Moldova is that poverty, economic stagnation, state corruption and lack of development opportunities for its growing generations can undermine any progress in buiding a strong democracy based on rule of law. The government messed with the electoral system and rights and, as a result, lost its credibility. Well, at least, in the eyes of the country's youngest generations.

How to deal with such a situation? Where should change come from? Is Moldova a typical case in the global political and economic environment?

I hope to find some insights at an upcoming event in New York City - The Georgetown University Global Forum - on April 17. The second annual Georgetown Global Forum will bring together leaders from key sectors to share successful strategies for addressing some of the world's most pressing challenges, including poverty, access to education and global health. The Forum will showcase the ways in which governments, corporations, NGOs and philanthropists are working in new ways and in increased partnership to create meaningful programs designed to alleviate suffering and assist developing societies.

Do you want to feel American? Volunteer!

Americans like to volunteer. In 2007 that amounted to 8.1 billion hours of service worth approximately $158 billion. And there are many resources available to satisfy this enthusiasm. For New Yorkers there is VolunteerNYC that makes searching for volunteering opportunities much easier. The week of April 19-25, 2009 was designated as the National Volunteer Week themed "Celebrating People in Action."

Today I felt more American than ever. Along with about 100 people I volunteered at a Mock Interview event organized by StreetWise Partners. It's a program that aims to help low-income individuals increase their chances of finding a job. Three highlights from this experience:

1. A big number of people, mostly young professionals, got up on Saturday morning to help other people succeed.

2. The organizers managed the process effectively and, as a result, both the volunteer interviewers and the interviewees benefited from a rewarding experience.

3. The space for the event was donated by PricewaterhouseCoopers, which increased the levels of comfort and professionalism.

Employee volunteering programs are a big part of corporate responsibility efforts. Usually, companies partner with non-profit organizations to run such programs, thus creating opportunities for their employees to serve their communities. Sometimes companies even match the value of donated employee time with monetary contributions. April will be a busy month in terms of volunteering thanks to the National Volunteer Week as well as to spring. What about you? Do you volunteer? Does your company encourage volunteering?

Photo credit: Linda_2009

That's how you waste energy!

First, the April Fool's Day/Wasting Energy Day videos:






Second, I think there are still too many people out there with the same wasteful attitude. James Kanter of New York Times' Green Inc. blog wondered whether wasting energy was uncivilized. My answer is an absolute yes. I read through the comments and noticed that people still tend to link their ability to pay to a right to over consume. I really hope this attitude will change soon.