CSRLive

Marriott Plans to Expand ‘Green’ Hotels by 1000%

2009-11-11 11:07:24 -0500

Marriott says it plans to learn from its “green” hotel prototypes and expand the program by a measure of tenfold over the next five years

Can Ethics Be Taught in Business Schools?

2009-11-11 10:59:47 -0500

Usefully teach people to devise management structures that minimize wrong-doing on the part of their employees, even if we can't change the characters of future managers

Making (Ex)change: Global Stock Markets Push Sustainability

2009-11-10 23:10:10 -0500

By CSRwire Contributing Writer Bill Baue of Sea Change Media

Exchange on stock markets has traditionally fueled financial gain (and loss) without regard to environmental or social consequences, but that trend is verging on change. Last week, representatives from stock exchanges around the world convened at the United Nations for a one-day conference entitled Sustainable Stock Exchanges to consider how investment markets can drive positive environmental, social, and governance (ESG) transformation. While the trend is not exactly new, as I documented in a 2008 UNCTAD report citing examples in Malaysia, South Africa, and Australia, this conference is a first for airing the issue under the spotlights of a global stage.

Transparency emerged as a key tool for promoting sustainability at the conference. Specifically, stock exchanges could mandate corporate ESG reporting as a listing requirement. Unsurprising, given that event sponsors included the UN Global Compact and the UN Principles of Responsible Investment (PRI), both of which prefer transparency over policing as the mechanism for pushing progress in their members’ sustainability practices. In other words, GC and PRI require companies and institutional investors (respectively) to report on their progress toward sustainability, instead of mandating actual practice, on the logic that transparency drives action. The “carrot”? UN imprimatur. The “stick”? De-listing, which both GC and PRI do for transparency shortcomings, but not for deficiencies in practice.

Applying such carrots and sticks to stock exchanges raises the stakes significantly. Stock listing provides vital lifeblood (cash) for companies, while de-listing amounts to a financial death knell. Some exchanges, such as Istanbul’s, spurn de-listing in favor of governance indexes to incentivize improvement. Others prefer more bite than bark, such as Egypt’s that de-listed 750 companies to leave only 350 well-governed companies, according to Conference Moderator and FORTUNE Contributing Editor Marc Gunther in a post-event blog.

True to his characteristic skepticism of regulation, Gunther throws his weight behind ESG indexes and socially responsible investing (SRI) funds as incentives to drive "what is potentially a revolution in finance. If they outperform over time, more money will flow to companies with good ESG practices," Gunther writes. And there's growing evidence that companies with good ESG practices outperform financially, including the study that just won the 2009 Moskowitz Prize from the Social Investment Forum and the University of California, Berkeley's Haas School of Business. It correlated better corporate social performance with better corporate financial performance.

While I agree with Gunther that sustainable investing can support corporate implementation of ESG practices, I questioned the scale, quality, and pace of this development in the comments section of Gunther's blog. Recent reports from Robeco and Business for Sustainability document an increase in ESG integration amongst mainstream investors, but "at what point will the mainstream 'tip' into factoring ESG issues at the core of investment decisions?" I asked. "And how much 'teeth' will the ESG integration have - window dressing or fundamental change?"

These are not rhetorical or academic questions, given the pace and scale of climate change, and the role of traditional business and investment models in creating and now exacerbating the "positive" feedback loops of climate change.

Aviva CEO Paul Abberley, who had a guiding hand in creating the conference, similarly hones in on the question of stock exchanges providing the necessary leverage to transform the foundational structure of companies toward sustainability. "Our main focus is on promoting a global listing environment that requires companies to consider how responsible and sustainable their business model is," Abberley stated, "and also encourages them to put a forward-looking sustainability strategy to the vote at their AGM." It remains to be seen if these teeth have enough bite to generate sufficient change, if they first pass muster for implementation.

$500 Billion Per Year More = How Much It'll Cost Us to Keep Delaying Climate Change Action Beyond 2010

2009-11-10 16:08:07 -0500

Reuters reports that the IEA estimates that for each year of delay past 2010 it adds $500 billion to the global warming bill

CSRwire Member Spotlight: Western Union

2009-11-10 14:52:19 -0500

Western Union decided to launch a new CSR platform in September of 2007. The company spent a year engaging in intensive self-evaluation and market analysis in their quest to make a serious CSR contribution. Though their carbon footprint is small, their geographical footprint is enormous. Mrs. D’Angelo believes “there is no larger geographical footprint than Western Union’s in the corporate world”. The company decided that global migration should be its CSR focus.

In turn, the company compiled a list of migrant experts around the globe. The resultant Migrant Advisory Expert Panel turned its eye to, among other things, the following migrant-related issues: family separation; access to education; and, what Mrs. D’Angelo calls, “acculturation to the country in which one has landed”.

Mrs. D’Angelo says about the new CSR platform: “Our goal is to make migration a choice, not a necessity. We need to be a voice for migrants. Migration,” she adds, “is increasing, not decreasing”. Mrs. D’Angelo reports that Western Union “didn’t find any other corporation speaking up for migrants”.

A host of concerns accompanied the organization’s decision to make migration its top CSR priority.

“It was not without some internal trepidation and struggle,” says Mrs. D’Angelo, that Western Union “decided to be a voice for migrant populations across the globe”.

The subject of migration is often a touchy one. In the United States, especially, Western Union had reason to fear some prevailing misunderstandings about it, most notably that the phenomenon is particular to this part of the world. Mrs. D’Angelo says a central challenge in formulating the new CSR initiative was “helping people in the US understand that migrants are not just coming here from Latin America”. Western Union, she observes, must improve Americans’ “global migration awareness”. People are leaving home for countries all over the globe. As Mrs. D’Angelo remarks, “these are the dynamics that make our world rich”.

In the two years since their development of a new CSR initiative, Western Union has produced an impressive array of platforms. Take, for instance, their new scholarship program, which Mrs. D’Angelo observes was “very similar to other corporations’ [scholarship programs] until September, 07”. The new program aspires to lift up multiple members of a household. Two siblings might benefit from the scholarship instead of one, or it may be a parent and child who mutually receive the scholarship benefits. Recipients of these include two brothers from Kenya who will pursue their dreams to promote sustainable development in rural Kenya, with one brother working toward a degree in New York and the other brother attending university in Njoro, Kenya. Two Filipina sisters will also pursue university degrees, one in Korea and the other in Leyte, Philippines.

Another particularly impressive aspect of Western Union’s CSR practice is their abundant employee participation. The corporation has 6000 employees worldwide and 51,000 agent contracts. Western Union agents aren’t bound by one business model, however, which posed a potential challenge to Western Union’s CSR innovators. But the challenge has been overcome. More than 150 agents have raised over $11 million since 2007. This is the outcome of a lengthy process of encouraging agents and all Western Union employees to match donations by the Foundation.

Mrs. D’Angelo explains that Western Union decided, in ‘07, to exceed the standard corporate match in CSR investments. In addition to employee-directed donations which are matched one for one, the Foundation encourages employees to support its grantmaking by matching unrestricted donations 2:1 in the United States and 3:1 outside the U.S. (owing to foreign tax laws).

This year Western Union was honored by the Committee Encouraging Corporate Philanthropy. The prestigious CECP Award was given to Western Union for their Our World, Our Family program “for fostering global economic opportunity for migrants and their families”.

Water for Life

2009-11-10 14:35:01 -0500

ZOOM’D explores the insatiable demands on the planet’s finite water supply—and the disconnection from the fundamental role of water as the basis for all life

Climate Justice Fast!

2009-11-09 14:55:50 -0500

From the 1st of November 2009, activists across the globe will be undertaking an international hunger strike for climate justice

"The Heart of Dryness" by James Workman

2009-11-09 14:38:25 -0500

James Workman talks about his new book, "The Heart of Dryness"

Massive Refrigerated Trains: Is Railex the Future of Produce Freight?

2009-11-09 14:26:03 -0500

Running 52 weeks a year since October 2006, the Railex trains have undoubdtedly saved a massive amount of gasoline - somewhere in the region of 5 million gallons

Trapped by Fossil Fuels

2009-11-07 13:28:13 -0500

With an unflinching approach to facts and realism, Richard explores the tenuousness of our current way of living

Who Says Saving the Planet Has to Cost a Fortune?

2009-11-07 13:25:50 -0500

Money is threatening the fight against climate change.

Global Innovation Commons receives pre–Copenhagen coverage; European Patent Office official minimizes violation of patent law

2009-11-07 13:22:08 -0500

Innovation policy will be the fulcrum for many climate negotiations at United Nations Climate Change Conference 2009 in Copenhagen

Democrats Push Climate Bill Through Panel Without G.O.P. Debate

2009-11-06 16:16:24 -0500

Democrats on the Environment and Public Works Committee pushed through a climate bill on Thursday without any debate or participation by Republicans

The post-crisis Consumer

2009-11-06 16:11:21 -0500

Sustainability and a more sustainable lifestyle are key elements in the quest to move out of this crisis and into a healthy economic situation

Help Provide Real-time Business Solutions to Timberland

2009-11-06 14:18:05 -0500

Beth Holzman, Manager of CSR Strategy and Reporting, The Timberland Company

Detroit sees green future

2009-11-05 23:49:23 -0500

Detroit has been known for building big gas-guzzling SUVs but these days it looks as though the country's automakers, both big and small, see green in their future

Al Gore On Copenhagen, Clean-Energy Subsidies, and Global Warming

2009-11-05 23:47:30 -0500

Count Al Gore among those who think President Obama should go to Copenhagen in December for a United Nations conference on climate change

Global Stock Exchanges and Investors Address Need for Sustainability Reporting at UN Dialogue

2009-11-05 23:45:52 -0500

Stock exchanges around the world are becoming increasingly active in raising awareness of ESG issues and standards among listed companies

Yes Men’s Antics Get Them Sued, but Do They Get Results?

2009-11-04 14:10:37 -0500

By Christopher Foss

So it's official…unless it's a just another hoax (Let's hope so!). According to the website, Environmental Leader, the U.S. Chamber of Commerce announced it will sue The Yes Men, an activist group that uses trickster PR tactics to humiliate corporations and other entities into foregoing short-term financial interests and doing the right thing by the environment.

On October 9th, the Yes Men went live with a website parodying the Chamber of Commerce site, staged a mock press conference and (yes!) put out a false press release declaring the Chamber would support climate legislation that included “a stiff carbon tax.”

While one can appreciate how furious this might make the Chamber’s members – a quick review of the elements of the so-called “hoax” suggests this was not a malicious hoax per se. If you follow the link Full prepared comments smack in the body of the release, it’s clear this doesn’t cut it (as some commentators suggest) as a “War of the Worlds”/ Wellesian-caliber hoax. There can be little doubt of the parodic intent of the “prepared comments.” Take these lines, for instance:

“Let's remember Lehman Brothers, a committed, solid member of this Chamber, who in the interest of short-term gain scuttled a century. They ate lamb, but were left without wool when the cold, hard winter set in.” The big question in all this is not whether the Yes Men will be successfully sued (Unlikely: apparently there is ample judicial precedent supporting parody) – no, it’s whether the Yes Men’s guerrilla PR tactics work…in the sense of, beyond being funny, really bringing attention to the issue, in this case, of big business becoming more responsible with respect to climate change. And most important, will the Yes Men antics actually goad companies or government agencies representing corporations into changing their policies as they effect the environment?

The jury’s still out on this basic question. It might be argued that the Yes Men approach is not entirely unreasonable in light of what can only be described as corporate America’s past irresponsibility when it comes to ethics, the environment and human rights. Short-term thinking in support of short and long-term greed, stonewalling and misrepresentation of their stance to the public and journalists have been, until recently, quite common among entities within the private sector.

The serious focus on sustainable business practice has only recently gained favor as the both ethically and economically prudent course for business. Government lobbyists and bodies like the Chamber of Commerce are not currently in step with enlightened business – and clearly this needs to change. Several companies have recently opted out of Chamber membership (i.e., Pacific Gas & Electric, Apple, PNM Resources, and Exelon) in response to the Chamber’s opposition to climate change legislation – oh yes, and after one of the Chamber’s officials said the Chamber planned to stage the environmental equivalent of the "Scopes monkey trial" -- a reference to an early 20th century court case in which prosecutors attacked the scientific foundations of the theory of evolution.

Crazy stuff!

Of course, as this very website clearly suggests, many companies now “get it” – big time! So it’s particularly onerous when the leadership of the Chamber of Commerce flouts global warming science and lobbies against tempered legislation, such as a carbon emissions tax, which many in business believe to be an elegant and market-friendly approach to limiting the emissions currently altering the earth’s climate at an alarming rate.

Maybe, just maybe, we do need Yes Men.

About Christopher Foss
Christopher Foss is a New York-based Sustainable Business Strategist and Communications Specialist. Currently he is Director of Communications for Intertek Sustainability Solutions (ISS). ISS, a unit of the global company, Intertek Group, works with businesses to seamlessly integrate CSR and Sustainability with their brand and operations. ISS is also responsible for the bi-annual Ethical Sourcing Forum (ESF). The next edition of the Ethical Sourcing Forum will be convened in New York City on March 18-19, 2010.

Throughout his career, Christopher has worked for a variety of NGOs and provided sustainability consulting services for many large and mid-sized corporations. His professional specialty has been in creatively aligning business strategy with sustainability imperatives. Clients have included The Coca-Cola Company, IKEA, SABMiller, Christie’s auction house, among others. He is also a writer of editorials and poetry. He can be reached at christopher.foss@intertek.com

DOE Awards $155M to Make Industrial Sector More Energy Efficient

2009-11-04 14:10:21 -0500

The DOE is awarding more than $155 million in funding under the American Recovery and Reinvestment Act for 41 industrial energy-efficiency projects across the country

Nuclear waste: Coming to a town near you?

2009-11-04 14:04:00 -0500

But nuclear waste remains radioactive for tens of thousands of years, far longer than the manmade pools are likely to survive

Changing Climate: RiskMetrics Grabs KLD, Beefs Up Analysis of Environmental Risks

2009-11-03 15:52:48 -0500

RiskMetrics Group, the big risk-analysis firm, just snapped up KLD Research, which specializes in environmental, social, and governance issues for investors

Rebuilding trust through stakeholder engagement: Part One - Why stakeholder engagement matters?

2009-11-03 15:52:40 -0500

By Jonathan Ballantine

In the past few years CR has undergone a major surgical facelift and is no longer seen as a fluffy element of business or as an exercise in philanthropy. As part of this transformation NGOs are now seen as partners rather than threats, public relations has become transparency, and philanthropy is simply the cost of doing business. CR has become a hard-nosed business decision that provides tangible evidence to all stakeholders that an organisation recognises the physical, regulatory, reputational and litigation risks created by its operational footprint.

Stakeholder engagement is the foundation of corporate (social) responsibility. If you are effective in your stakeholder engagement, you will open up new ways to improve your organisation's performance and reputation.

Following a series of interviews with senior practitioners at leading organisations in preparation for this feature story, there is a clear message that stakeholder engagement should be taken seriously to survive, if not thrive, in the current economic climate.

Stakeholder engagement is essential to business strategy and success since it provides important information about the evolving expectations of many of the actors who matter to the future of a company. ¨For a company like Anglo American, with large scale, immovable, long-life assets, predominantly in developing countries, stakeholder engagement is essential¨, remarked Edward Bickham, VP of Corporate Responsibility.

This view is shared by stakeholders themselves. Dax Lovegrove of WWF believes committed organisations who genuinely engage in two-way communication with their stakeholders are “future proofing” their business. Dax in his role as Head of Business and Industry Relations helps organisations to understand the wider impacts, right across the supply chain. He encourages organisations to participate. “Bring us to the table, please!”, he requested.

Dr Peter White, Director for Global Sustainability, P&G echoed Lovegrove’s comment on how effective stakeholder engagement is at the heart of future sustainable growth. “ We want to help shape the future – now and for generations to come – by collaborating with local, regional and global stakeholders”, he commented. “By working together through multi-stakeholder initiatives we firmly believe we can make a bigger difference together than we can individually”, he added.

Of course, many organisations interact with their customers, employees, suppliers and investors every day – usually unplanned and in rather informal ways. However, over the last five years there has been a shift for organisations to carry out systematic stakeholder engagement, to help understand the perceptions and expectations of stakeholders and create open dialogue with them. Two-way dialogue with key stakeholders on current or emerging issues is important in identifying risk and in developing responsible business strategy, providing organisations with valuable insights that enable them to determine whether perception really does match reality.

In an interview for this feature Dr. James Hagan, Corporate Environment, Health, Safety and Sustainability of GSK explains carefully how their new CEO Andrew Witty has made ¨Building Trust¨ one of his five strategic goals. GSK, who have been carrying out stakeholder engagement since the late 90´s, advise organisations not to view stakeholder engagement as an ¨exercise¨ or as a ¨tick in the box¨.

White supports Hagan’s view that stakeholder engagement must be built into the business and should not be viewed as a ¨bolt on”. “By approaching it as a two-way conversation enabling you to get vital feedback on business performance, it can shape the future success of your company”, White added.

Earlier this month GSK announced plans to cut the prices of its leading medicines in emerging markets, an exercise that over time will build trust and prove beneficial to the bottom line.

The reverse often holds true…a perfect illustration on the consequences of stakeholder misalignment is the demise of GM, for which, in part, can be attributed to a lack of understanding with one of its core stakeholder groups - its customers. The first signs of trouble came in the spring of 2008 when fuel prices were spiraling upwards. With a ¨super size¨ production business model with vehicles such as the Hummer and SUVs, consumers were forced to turn their backs on these gas-guzzlers. This, coupled together with an increasing awareness on climate change, has played into the hands of Asian manufacturers like Toyota and Honda for hybrid cars and knocked out every hope of GM (and perhaps every US car manufacturer) to sell their products.

Stakeholder information makes organisations better understand what actions to take and what priorities to make. Will Swope, VP of Sustainability at Intel remarked, “Stakeholder engagement helps us identify our most relevant sustainability issues and help us prioritize our challenges and opportunities.”

The overall consensus from interviewed practitioners was of the inseparability of stakeholder engagement in building trust, and that through the adoption of a collaborative / cooperative relationship with stakeholders, organisations can more easily distinguish challenges, opportunities and weaknesses related to its vision.

About Jonathan Ballantine
Jonathan Ballantine is a European-based, business engagement specialist - advising private sector firms, business consultants and NGOs on corporate responsibility issues. He excels in the brokering of collaborative partnerships between business and NGOs, stakeholder engagement and outreach communications.

Jonathan has undertaking several, multi-stakeholder research projects on corporate responsibility, carbon management and water stewardship. In 2007, he was appointed to the advisory board of a European Supply Chain & Logistics trade association where he acts as counsel on sustainable supply chain management.

He is proficient in Spanish and has served as a Volunteer Surf Life Saver in Australia for two years. Jonathan now lives in Madrid where he is training to be a golf instructor. He is available by email at jonathanballantine@mac.com or through his blog, CR Vision.

Green Light for a Greener Santa

2009-11-03 15:51:04 -0500

By Francesca Rheannon

Green retailers have reason to hope this holiday season. And Santa has some green helpers for shoppers.

Heading into my local TJ Maxx the day after Halloween, I noticed the aisles bursting with new arrivals. Cashmere sweaters, delicacies in fancy jars, and toys galore. On your mark, get set, go: the holiday shopping season has begun.

Retailers have reason to be nervous about the size of holiday shopping receipts: a recent survey on behalf of the National Retail Federation predicts a 3.2 percent drop in spending by recession-conscious consumers to an average of $682 dollars for gifts. To my frugal soul, that seems like a lot, but it’s the lowest level in six years.

But companies that cater to green-conscious shoppers can take heart. According to the just launched Green Confidence Index, American consumers are poised to spend more on environmental products and services, even though these goods tend to be more expensive. The monthly index tracks, among other things, attitudes about past and future purchases of green products. It registered an increase of 3.8% in the three months since it started in July 2009. Not all these will be gifts, of course, but the sentiment indicates that eco-conscious companies will be better positioned to weather whatever winter retail storms lie ahead.

They can get help telling consumers about their green bona fides from the 3rd Annual Green Marketing Conference put on by Good and Green in Chicago on November 17th and 18th.

Green shoppers have plenty of resources to find out whether a company is on the level about its commitment to the environment, so greenwashers beware. They can visit ClimateCounts.org to find out how well companies in various categories stack up. Launched with support from Stonyfield Farm several years ago, the organization has been able to track changes in the companies it follows.

For example, the first year Apple Computers came in dead last with a score of 2, as I reported in 2007. It was up to a score of 11 this year -- not great, but an improvement. ClimateCounts.org found that “Apple has completed analysis of the impact that many of its products have on global warming while being used by consumers and has engaged with its employees and other companies on climate-related issues.” But it faults the company on its failure to disclose information on “Apple’s efforts to measure its companywide impact on global warming.”

Greenpeace was kinder to Apple in its own consumer guide. It moved it up from 11th place to 9th, lauding it as the “most progressive” computer maker in removing toxins in its products. If you are thinking of giving that special someone a cell phone, Nokia came out ahead of the pack, with good scores on toxics use reduction, energy and recycling.

But you might want to steer clear of Nintendo game consoles for those kids on your shopping list. Greenpeace’s guide puts the Wii and the DS Game Maker tied for last place. The Wii’s success has meant a boost in more than Nintendo’s bottom line; its greenhouse gas emissions rose, too. Rival Sony is a better choice, according to the rankings. (You can find out about more electronic products in Greenpeace’s latest Guide to Greener Electronics.)

Giving video games and consoles might not be the best idea in any case. In the U.S. they burn 16 billion kilowatt-hours of electricity per year, according to a new study by the National Resource Defense Council (NRDC) and Ecos Consulting. That’s equal to the annual electricity use of all the homes in the city of San Diego. And all the most popular models - Sony Playstation 3, Microsoft XBox360 and Nintendo’s Wii - used as much energy when they were idle as when they were being played. So include a power strip that can be turned off if you do give them as gifts.

Non-electronic toys can be problematic, too, as the scandals over lead and phthalates in toys show. Despite consumer complaints and promises by toy companies these poisons are still around. Recent tests by Illinoispirg show that “some toys still violate CPSC standards for lead and contain illegal phthalates.” Even some products from more “natural” manufacturers, like Melissa and Doug, were judged a “medium” risk, although other products in their line were given a low risk rating. You can find more toy ratings at HealthyStuff.org, which published the study. Another toy safety site is Safetoys.com.

If the definition of “green toys” means supporting small and local businesses to you, the quest for safer toys is erecting some road blocks. Local small toymakers are being hammered by requirements under a new safety law -- not because their toys are dangerous (often they are less hazardous), but because it is mandating they test each ingredient in every product they use. The owner of Ogunquit Wooden Toy told the New York Times that implementing the new law would cost him $30,000 to test the ingredients that went into his toys: maple, walnut and cherry woods finished with walnut oil and beeswax from a local apiary. You can’t get greener than that.

Of course, for some people, giving more stuff to people who already have enough isn’t green at all. For those, charity is more in the holiday spirit. A great place to start is Heifer International, which gives poor families the means to making a livelihood, like a heifer to give milk and bear young to sell or chickens for eggs and meat. That kind of gift could do a lot to bring “peace on earth and good will to all”.

Department of Energy Is Urged to Halt Loan Guarantees for Nuclear Power Plant Construction

2009-11-03 12:03:18 -0500

Another influential group that has questioned the deployment of nuclear power is socially responsible investors