corporate social responsibility

Conscious Commerce: Realities of “Years of Living Dangerously”

images Protection of Forests: Critical For Future Generations

Deforestation is an increasing contributor to global warming and environmental change impacting the health and well-being of the most rural communities. To be sure, the transformation of forested lands by human actions and the removal of trees without sufficient reforestation is one of the greatest drivers of biodiversity destruction, conflict, loss of habitat and wildlife species, and poverty.

‘Realities at a Glance’

  • We are losing 137 plant, animal and insect species every single day due to rainforest deforestation, which equates to 50,000 species a year.
  • Regions such as Indonesia lost more than 6 million hectares of its primary forest -- an area the size of England -- from 2000 to 2012.*
  • About one half of the forests that covered the Earth are gone with only 40 billion hectares remaining today.
  • There are fewer than 300,000 chimpanzees remaining in the wild.
  • Only about 22% of the world's original forest cover remains "intact" – contained in three areas: the Canadian and Alaskan boreal forest, the boreal forest of Russia, and the tropical forest of the northwestern Amazon Basin and the Guyana Shield.**

In addition to the sourcing of paper and palm oil from forests, the impact of human behaviors continues to be profound. Forests are cleared, degraded and fragmented by timber harvest, conversion to agriculture, road-building, fires and in a myriad of other ways. The effort to use and subdue the forest has been a constant theme in the transformation of the earth, across societies and cultures, and is a major source of humanitarian conflict.

‘The Wake Up Call’

Deforestation has important implications for life on this planet. Forests are the foundation of the global ecological system, the lungs of our planet and crucial for the future sustainability and survival of generations.

Increasing population growth combined with poverty forces local communities to use forest resources in unsustainable ways in order to meet their basic needs such as food and water, as well as income generation for farmers and their families.

Meanwhile, with the quest for Africa’s natural resources at an all-time high including palm oil production, competition is rising for the global demand for forest and extractive industry products. Africa also lost 3.4 million hectares of its forested area between 2000 and 2010.***

Moving Beyond ‘Profits with Purpose’

The protection of forests, ecosystems and wildlife species can no longer be solved in isolation and requires more integrated approaches to address the complex challenges and interrelated links with poverty. This includes protecting farmers and their communities to ensure provision of food, shelter, health and skills training.

With the quest for new markets and customers, experts from multiple sectors – corporations, NGOs, fair trade and forestry experts - need to convene on shared value approaches for future ‘Years of Living in Prosperity’ in a globalized economy.

While an increasing number of corporations have committed to using sustainable palm oil and protecting forests, at the most fundamental level, consumers need to be educated about responsible purchasing options, integrity of ingredients and be included into the ‘Call to Action’ to preserve the planet’s natural resources. With the acceptance of corporate responsibility continuing to drive brand reputation and purchasing habits among consumers, behavior changes are needed to influence more responsible purchasing decisions.

Breaking down the systemic barriers to poverty is essential to preserving forests and protecting ecosystems to ensure the provision of basics human needs such as food and water, while developing responsible goods and services in the marketplace.

Traditional models of giving are continuing to evolve with the new sustainability imperative. This will ensure integration across multiple disciplines in the supply chain, while creating programs and product development strategies. These models will align giving at the heart of ‘People Connection’ while protecting families and communities.

In Conclusion: Corporations, supported by NGOs and governments, have profound shared values and our society cannot mitigate pressing social, economic and environmental issues without adapting to the realities of our planet and enlisting support from conscious-driven consumers.

By: Samantha Taylor – Founder of Reputation Dynamics.

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Sources:

  • Years of Living Dangerously: Showtime documentary series about the human impact on climate change
  • *Scientists: Belinda Arunarwati Margono, Fred Stolle: Nature Climate Change
  • **World Resources Institute
  • ***FAO Global Resources Assessment 2010

The Nature Conservancy - Advancing Sustainable Conservation in Africa

BetterTNC_logo-4e664ce4196a3Reputation Dynamics is excited to work with The Nature Conservancy on corporate marketing and social responsibility development to support awareness, growth and development of their programs in Africa. Since the 2006 launch of the Africa program, TNC has been protecting land, freshwater and marine ecosystems in key African regions including, Kenya, Tanzania, Namibia and Mozambique.    With the population of Africa expected to double by 2050, there will be greater demands for energy, food and water which will pose challenges that need to be addressed to ensure the resilience of the continent's natural resources, alleviate poverty and improve the quality of life for underserved communities.

For more information - http://www.nature.org/ourinitiatives/regions/africa/index.htm.

Long way to go: Banks slow to embrace CSR for reputation recovery

CSR Best Logo The financial services sector has undoubtedly had much to contend with in recent years. Following the collapse of Goldman Sachs in September 2008, growth stumbled to a halt and the banks became whipping boys for the media and politicians - perhaps not totally undeservedly - for their role in the financial crisis.

Today, rebuilding stakeholder trust combined with enforcing stricter financial regulations are top priorities for all banks.

Corporate Social Responsibility (CSR) has emerged as a critical tool for organizations to protect reputation, empower employees and rebuild trust with its stakeholders. Multiple industries are continuing to embrace the benefits of CSR, but the financial services sector is still lagging behind.

A committed CSR policy acts as a self-regulating mechanism enabling a business to monitor and ensure it is compliant with the rule of law, adopting ethical standards and ensuring transparency.

The 2012 100 Best Corporate Citizens List (http://www.thecro.com), recently published by Corporate Responsibility Magazine, provides an index of top corporate citizens ranked on seven categories to determine the annual ranking – employee relations, human rights, climate change, philanthropy, governance, environmental and financial performance.

This year's list was topped by global pharmaceutical giant Bristol-Myers Squibb, while the technology sector was well represented with IBM, Microsoft and Intel taking the next three spots. The top ten also included companies as diverse as Accenture, Campbell Soup and Nike.

However, not only were there no banks in the top ten, there were none in the top 50. The highest ranked financial services company, ranked 56, was JP Morgan Chase & Co. Only two others made the top 100, Wells Fargo (80) and State Street Corp (83).

This illustrates how the financial services industry has been slow to embrace CSR and recognize the benefits it can bring. Banks have traditionally placed greater emphasis on compliance and issues posing a 'direct risk' including being held liable for polluting the environment.

The industry has only recently begun to appreciate the importance of more 'indirect risks', such as reputation and the responsibility of banks related to lending activities (client's solvency/continuity or collateral). Risk management is no longer just about the potential financial risks, but increasingly the environmental and social consequences of lending money to clients with dubious sustainability performances. With everything that the financial services sector has endured in recent years perhaps it isn't surprising that CSR hasn't been top of mind in the boardrooms of many financial institutions but that is a mistake that banks simply can't afford to continue to make.

A notable company is Bank of America, which updated it core values and operating principals after adopting a CSR approach. The company published it first CSR report last year and its progress was recently recognized with a PR News award. The report details its socially responsible initiatives, which are now part of the bank's overall strategy. These include:

  • Funding solar power and energy efficiency programs
  • Supporting the revitalization of neighborhoods across the US
  • Lending and investing in small businesses that are the backbone of the economy
  • Encouraging employees to volunteer over a million hours in nonprofits and community organizations
  • Funding innovative arts and culture organizations

"The progress reflected in this report demonstrates our commitment to creating opportunities that help the economy move forward through responsible business practices, lending, investing and charitable giving," said Anne Finucane, Bank of America's global strategy and marketing officer.

While Bank of America represents how CSR is starting to make an impact in the financial services sector, the Best Corporate Citizens List demonstrates how the industry as a whole needs to step up to the plate. CSR is an important opportunity for banks to take responsibility for their actions and positively impact stakeholder groups.

If the banking sector is to truly succeed in rebuilding its battered reputation there needs to be a more serious commitment to becoming socially responsible and engaging with the key issues that stakeholders demand. Is your company doing enough?

Posted by Sam Taylor.

Reputation Dynamics Founder - Sam Taylor - Participating at Diversity Best Practices: CEO Symposium on February 9

DiversityLearn How to Sustain and Build Global Diversity and Inclusion Initiatives throughout Business. Hosted by the New York Times Company.

Diversity Best Practices specializes in facilitating discussions on diversity and inclusion among the most powerful leaders of corporate America.  Now in its fourth year, Diversity Best Practices' Global Best Practice Session offers its members a full day of research insights, best practice case studies and interactive discussion structured around three provocative topics:

  • Implementing Global Gender Strategies: Utilizing Metrics and Accountability for Driving Gender Equality
  • The Workforce and Long-term Implications: Innovative Strategies for People with Disabilities
  • *Corporate Social Responsibility: The Vehicle to Deliver Diversity and Inclusion Results

Featured Speakers:

Janet Robinson, CEO, New York Times

Dr. Rohini Anand, Global Chief Diversity Officer, Sodexo 

Panel Details:

*Corporate Social Responsibility (CSR):  A Vehicle to Deliver Diversity and Inclusion Results

Sam Taylor, Founder, Reputation Dynamics

Peter Lambert, Manager, Office of Global Diversity and Inclusion, Whirlpool Corporation

Orlando D. Ashford, Senior Vice President & Chief Human Resources Officer, Marsh and McLennan Companies (MMC)

Leaders of global organizations are aligning CSR as an integral component of key business and talent strategies, leveraging their positioning to not only grow but also to sustain a diverse global workforce. No longer is CSR viewed as a “nice thing to do” but rather as a key strategic tool in creating a diverse and inclusive workforce.  

Stanford University surveyed 800 MBA students from eleven leading North American and European business schools and found that 94% would accept a lower salary - an average of 14 percent lower to work for a firm with a reputation for being environmentally friendly, caring about employees and about outside stakeholders such as the community.

Furthermore, in reviewing employees’ performance evaluations and development plans companies are considering community involvement as a performance competency and compensation criteria. How can CSR be utilized as a tool to drive market share and brand loyalty? How can CSR increases employee engagement? What’s being done to shrink the gaps and take steps forward?

For further information - http://www.diversitybestpractices.com/events/194

Stay tuned for Sam Taylor’s next blog posting – perspectives on utilizing corporate social responsibility to deliver diversity and inclusion results.

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Board's Eye View of CSR

Practitioners, thought leaders, and companies from CRO magazine's '100 Best Corporate Citizens' will be convening at the Marriott Financial Center in New York on May 10 for CRO's Spring Conference. The focus will be on successful corporate social responsibility strategies for protecting and growing companies.

Keynote speakers include Tim Solso, CEO and Chairman of Cummins and Douglas Baker, Jr., CEO and Chairman of Ecolab.

Research conducted by the Social Investment Research Analyst Network (SIRAN) and KLD Research & Analytics, Inc. (KLD) on environmental and social performance reporting of US companies, recently reported that nearly half (49) of US companies in the Standard & Poors (S&P) are now disclosing information about their environmental, social and governance (ESG) performance. That is a 14% increase of S&P 100 companies issuing reports over the previous year's study.

Another milestone reached in the evolution of this new management paradigm as companies respond to the widespread demand for greater transparency.

Myself and fellow trustmeister Jarvis Cromwell will be attending and report back on developments, case studies and trends. So, stay tuned for a candid take....

For more information on the conference agenda -- www.thecro.com/conferences.