As
corporate and social responsibility (CSR) has taken center stage, numerous
commentators have denigrated those companies that have chosen to enact
responsibility measures. I’ve long-held that such opponents often build an
anti-CSR case by misstating the facts and others share
this opinion. It is my view that when enacted sensibly, CSR (I am not
talking cause marketing alone) can add considerable long-term value to
enterprises.
A cover
story for this week’s Barron’s seems to support this view – in
“They’ve got class”, Michael Santoli reports on the results of a corporate
respectability survey given to money managers. The top companies on the list
are:
A
new book has been added to the must read list for anyone who is interested in
Corporate and Social Responsibility. The book, by former Secretary of Labor
Robert Reich, is titled Supercapitalism: The Transformation of
Business, Democracy, and Everyday Life.
Given
that Reich served under the Clinton administration where he spearheaded several worker friendly laws, you might
think that the book adds ammo to the stockpiles of those entrenched in the pro-CSR
camp. But you would be wrong.
The
Center for Media and Democracy this week covered the Australian supermarket
chain Woolworths and its involvement in a CSR scandal of sorts:
The
Australian supermarket company Woolworths has withdrawn a range of tissue
products after being outed by an anonymous blogger for using a "Sustainable Forest Fibre" logo on products sourced from a notorious Indonesian forestry
company.
As
the excerpt states, the company was exposed by a blogger who writes exclusively
about divulging Woolworth’s deepest CSR secrets – the blog is called, very
straightforwardly, “Expose
Woolworths.”
For those interested in CSR: The U.K.-based Telegraph ran an article yesterday on the
merits of corporate and social responsibility by John Surdyk of the University
of Wisconsin Business School (here).
The piece doesn’t necessarily shed new light on the issues, but Mr. Surdyk does
a great job in penning a succinct yet comprehensive case for CSR, how to
implement such initiatives in an authentic and effectual manner, the case for
reporting results, and why many companies do not currently do so.
In what is, in my opinion, the most convincing pro-CSR
passage in the article, Surdyk cites the following:
In a very under-the-radar manner, SunTrust Banks (STI) is running a promotion for new
checking accounts that doesn’t involve coolers, beach towels or AM/FM radios.
Rather, those who open new personal or business accounts can designate a $100
donation, paid for by SunTrust, to the charity of their choice. Those who
decline to designate to a cause get a $50 gift card.
Rest assured, Wharton and Stanford MBA grads can still sleep soundly knowing that they will have a long line of drooling employers waiting at their doorstep when they graduate.
But Green MBA’s are sprouting up with increasing frequency in an attempt to “bridge the gap between planet and profit” (pretty catchy) in the modern economy; in other words, they are specially trained in the art of sustainable business.
The
Wall Street Journal is reporting that General Motors (GM), best known for trucks and muscle
cars, has made a significant
push to produce an electric car in three to four
years – the move will include hiring over 400 technical experts (subscription
required: story
here).
The
endeavor has the ardent support of Vice Chairman Bob Lutz who was once quoted
as saying that aside from, "a few nuts in California," no one cared about the
impact of cars on the environment (article
here).
Socially Responsible Investing blog SRI Notes over the weekend reported on a new analysis of the investment-worthiness of corporations that make Fortunes’ “100 Best Companies to Work for in America (post here).” The research was conducted by Alex Edmans of MIT’s Sloan School of Management.
From the abstract: A portfolio of stocks selected by Fortune magazine as the Best Companies to Work For in America in January 1998 earned average annual returns of 14% by the end of 2005, over double the market return.”
Pretty
big news today from Apple (AAPL) – Steve Jobs announced a commitment
to further “greening” Apple (story
here). Many commentators have cited pressure from Greenpeace as a big
reason for the change of heart and the organization isn’t
shying away from taking full credit. While Greenpeace is sometimes accused
of using extreme tactics, attacking Apple essentially through slapstick was
quite clever, so I guess some recognition is due (see a dubbed Steve Jobs below
in a now prescient spoof):
Surprisingly,
few web sites and media outlets have been talking about BP’s (BP) new marketing campaign
titled Helios. If you have not yet seen the commercials, brace yourself – you are
about to witness one of the oddest advertising promotions in recent memory. You
really have to see the spot for yourself to believe that a major oil company
put it out. Some of the highlights:
Babies, sans carseat, drive while dancing, playing catch and breezing through yellow lights.
Cars radiating fumes in the form of a BP logo.
Rival gas stations complete with eye patch wearing pumps flailing angrily before signage comes crashing down on them.
A companion site that urges us to “explore the world of babies driving.”
