Welcome Message -from PwC Global Sustainability Leader:Sunny MisserPricewaterhouseCoopers is pleased to present the first issue of our newsletter –– TheCorporate Responsibility Report. From issue to issue, The Corporate Responsibility Reportwill be dedicated to exploring sustainability issues that have a real impact on and withinorganisations and their stakeholders. As well, we will share news from thePricewaterhouseCoopers Sustainability network.

Each issue will feature our client’s business initiatives, discussions withPricewaterhouseCoopers global practitioners, in-depth perspectives on a specific industry(such as pharmaceuticals, retail, oil & gas, and finance), white paper summaries, news ofupcoming industry events, reader polls, articles authored by members of our global practicethat have appeared in industry publications, and more.

We encourage you to share your thoughts and feedback aboutthis publication through the Rate Our Newsletter section.

We welcome you to our newsletter and look forward to sharingour experiences and insights with you.

Regards,

Sunny MisserGlobal Sustainability Leader

Why is Corporate Responsibility/Sustainability an important issue for global companies?From your perspective, what is the business case for Corporate Responsibility?

Willem: Over the past several years, we have witnessed unprecedented change on thecorporate landscape and, as a result, shareholders demanding more transparency andaccountability from companies. Because financial results, alone, are not enough to predictfuture performance, companies need to report performance in a holistic manner acrossmultiple dimensions. By embracing sustainable development, companies can increase theircompetitiveness, performance, and improve their image. For many corporations,sustainability is becoming not just “a nice thing to do” but a core requirement, enablingthem to increase their value and sustain profitability in the long term.

Where does PwC stand with regard to sustainability?

Willem: Sustainability is an extremely important issue for us. We do our best to “walk thetalk”. It is not always easy, but we have moved forward significantly in the past several years,in terms of implementing leading sustainability practices. Within our organisation, PwCterritories around the world are undertaking a broad range of programs and activities thathave a significant positive impact on their environments, value chains and communities.

At the global level, we participate in and support various sustainability programs. We aresignatories to the United Nations Global Compact and actively participate in conferencesorganised by the UN on sustainability issues. Our global CEO, Sam DiPiazza, member of

thecorporate responsibilty

reportIn This Issue

Welcome Message from PwCGlobal Sustainability Leader:Sunny Misser

Discussion with PwC GlobalManaging Partner

Corporate Responsibility in thePharmaceutical Industry

IKEA: Responsible Supply Chain Case Study

Country Focus: The Rising Tide of East Africa

FEDERE: European Forum onEnvironmental and SociallyResponsible Enterprises -

New Publications from PwC:Social Report: A Fourth BasicFinancial Statement

In The News: Hong Kong MTR Project; PwC launches Ireland SustainabilityPractice

MICROSOFT: Challenges forCorporate Citizenship

“Unfamiliar Territory”:Discussion with Professor PeterSenge, Massachusetts Institute ofTechnology

Take Our New Online Poll

Contact a Sustainable BusinessSolutions (SBS) Leader in YourCountry

Rate Our Newsletter

Subscribe to The CorporateResponsibility Report

Discussion With PwC Managing Partner: Willem Bröcker

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the World Business Council for SustainableDevelopment (WBCSD) Executive Council,chairs the working group on Transparencyand Accountability at the WBCSD. PwC isa charter sponsor of the Global ReportingInitiative and actively participates in severalworking groups.

I would highlight oneprogram in particular ––

Project Ulysses. Developingnext-generation business

leaders is critical in today’sglobal business world. We

developed Ulysses as a pro-bono program designed toidentify future leaders and

give them the opportunity forprofessional growth and thechance to experience PwC’scommitment to corporate

social responsibility.

Ulysses features eight-week projectassignments in a developing country withan NGO or Inter-Governmental (e.g. UN)partner. Since it started in 2001, we haveseen 24 partners from 19 countriescomplete projects such as:

• Developing a project managementsystem for the Alliance of Mayors’Initiative for Community Action onHIV/AIDS in Namibia;

• Evaluating eco-tourism potential inBelize; and

• Creating an integrity matrix on goodgovernance for the UN developmentprogram in Moldova.

This year, 18 young partners have beenselected from 17 different territory firms forwhat I’m sure they will find to be apowerful learning experience throughprojects in Peru, Uganda, India, Ecuador,East Timor and Eritrea. They will havehands-on experience in addressing thebusiness challenge of sustainability.

Each year, our published Annual Reviewreports on PwC programs in diversity,global deployment, code of conduct,environmental impact, human rights,quality, independence, and much more. Itis part of our efforts to increasetransparency and demonstrateaccountability towards our people andcommunities where we operate.

At the global level, we support activities thatrelate to our core businesses. This allows us,both to learn through our participation andto ensure that we communicate PwC’spositions on these issues.

Is Corporate Responsibility an importantgrowth business for PwC?

Willem: As trusted business advisors, we seeCorporate Responsibility as an area wherewe can add significant value for our clients.

We have deep expertise inmany sustainability-related

practice areas (e.g.,Responsible Supply ChainManagement, Stakeholder

Engagement, Reporting andAssurance of Non-FinancialInformation, Environment,

Health and Safety,Sustainability Program

Development andImplementation, etc.), with

nearly 400 sustainabilitypractitioners in 39 territories

globally.

We view this area as a significantopportunity to grow the business andprovide our clients with highly needed andrelevant services. The market forsustainability services is growing rapidly.We help our clients improve their processesand assure their processes in the domain ofCorporate Responsibility.

How did you get involved in sustainabilitythinking and programs?

Willem: In the Netherlands, sustainabilityprinciples are a part of life. The country hasalways had limited resources, and we haveneeded to ensure that we stay in harmonywith our environment and safeguard thewelfare of our communities. This imperativeapplies to us all at every level—corporations, government, the not-for-profitsector, and each and every Dutch citizen.Sustainability, for us, is essential. It’s not amatter of choice, but rather a criticalelement to ensure a prosperous and safefuture for the generations to come.

The majority of leading companies in theNetherlands are developing corporatesocial responsibility programs aimed atincreasing their positive contributions tosociety. For example, TPG, a post andlogistics multinational based in theNetherlands, has established a “Moving theWorld” program. Through this program, inpartnership with the United Nations, TPGcommits its people and logistical resourcesto help to deliver food to people in need indeveloping countries. The critical point inall such programs is to align them with thecompany’s strategy and core businesses.When this is achieved, the societal benefitsare maximised.

Do you think that’s the case for othernations in Europe and rest of the world?

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Willem: Countries are at very differentstages of development and have differentmindsets at the leadership level. Thatinfluences their approach to sustainabilityand investments in it.

You could say that there is a slow globalnegotiation under way between countriesthat have opted for sustainability as a corevalue and other countries that, for quitevaried reasons, are currently lesscommitted. Nevertheless, I see significant

support around the world for sustainabilityand related issues. The very positive fact isthat all major stakeholder groups areinvolved in dialogues, trying to understandeach other and jointly decide on solutionsto more forward.

To find out moreContact Willem Bröcker,PricewaterhouseCoopers Managing Partner–– Markets, The Netherlands.

By Thomas SchweiwillerPartner, Sustainability Leadership Team,PricewaterhouseCoopers

The pharmaceutical industry is undergoinga challenging period. It has led to CorporateResponsibility becoming one of the leadingbusiness issues that pharmaceutical CEOsare addressing today. This industry isexperiencing a time of intensifiedcompetition and strategic consolidation.One of the major factors generating thistrend is the shift in different stakeholderpositions with regards to the industry.

Pharma companies arefacing informed and activestakeholder pressure fromgovernment, media, NGOsand the public. At the sametime, financial stakeholdersand regulators continue to

become more demanding interms of information

requirements.

The diagram below represents the vision oftop management at a global pharmacompany and sums up the principal forcesacting in the industry today.

The focal issue In terms of corporate responsibility,however, perhaps the most critical long-term issue concerns ‘access to health’.Patent protection and affordability are twoof the most important topics related to thisparticular issue.

So where do we stand at the moment? Thereis a need to supply effective medication at anaffordable cost to those who need it, notablyin developing countries, but also to those inthe developed world who lack adequateinsurance coverage. Pharma companies, whocurrently adhere to the WTO Agreement onIntellectual Property Rights and patentprotection, have to focus on recovering theirresearch and development costs on newmedicines in order to do business.Meanwhile, public health care in many ofthe countries where affordable medicine ismost needed suffers inherently frominefficiencies and inequalities. The UNUniversal Declaration of Human Rights statesthat one of the fundamental human rights isthe right to health.

Access to health is,therefore, a complex, high

profile and emotionalindustry issue that is far from

resolved. Communicationand dialogue between “Big

Pharma” and theirstakeholders will be key

going forward.

The WHO recently presented a reportshowing how disease is a drain ondevelopment, stating that improving people’shealth may be the single most importantdeterminant of development in countriessuch as Africa. Global, local NGO andcampaign groups are among some of themost vocal opponents of pharma companies’

current efforts totackle the healthcrisis in developingcountries.

Investors, too, arevoicing concerns onthis issue. Recently,a group of Europe’sbiggest investors ––controlling $900billion of assets ––

Corporate Responsibility in the Pharmaceutical Industry

(see next page)Shorter life cycles, patent threats,regulatory

issues, healthcare cost containment

Decreased R&D productivityNew technologies

Increased commercialization costs

Globalization,political

pressures,NGOs

Demandingfinancialmarkets

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have written to 20 of the world’s toppharmaceuticals companies outlining thesteps they believe need to be taken to reducethe risks to the industry’s reputation fromcrises such as the AIDS pandemic.

The industry is responding to theseconcerns and some pharma companieshave introduced measures, including:

• Discount pricing of medicines;• Free distribution of certain medicines

to the least developed countriesthrough joint public-privatepartnerships with organisations suchas the UN; and

• Donations to global funds aimed atimproving diagnosis and treatmentof specific chronic diseases.

In addition, most global pharma companiesare involved in active, transparentstakeholder engagement in the search foran appropriate and acceptable solution tothe access to health issue.

Industry performance: SolidgrowthThe pharma industry itself, however, isshowing solid growth, despite a difficultglobal economic climate. According to IMSHealth, global audited sales ofpharmaceuticals rose 8% in 2002 to reach$400.6 billion.

Underlying demand for modern pharmaproducts and prescription drugs remainsstrong from aging populations and othergroups. Reasons for this include increasedavailable consumer income, changes inlifestyle and diet prompting an increase inheart disease, diabetes and cancer,improved diagnostics bringing earlier andlonger treatment, and unsatisfied medicalneeds including higher use of treatmentsfor chronic conditions.

Experts believe that thesefundamentals should ensurecontinued industry growth

going forward. However,meeting this increased

demand within theconstraints of satisfying allstakeholders is where the

challenge lies forpharmaceutical companies.

Global pharma companies are now amongthe largest companies in the world in termsof market cap. The 4th Annual PharmaExecutive 50 reports that each of the top 10pharma companies:

• Had sales of more than $11.5 billionin 2002;

• Posted growth figures over theprevious year except for BristolMyers-Squibb;

• Marketed a combined total of 23products that made more than $1billion each in sales; and

• To varying extents, addressedcorporate responsibility issues,developed stakeholder dialogue andengagement, and reported on theirsocial and environmentalperformance.

Stakeholder expectations are influencingthe whole pharma industry value chain. Inthis article, we broadly divide the pharmavalue chain into three categories: R&D,Manufacturing, and Sales and Marketing, inorder look closer at some of the keycorporate responsibility issues currentlyaffecting this industry:

Value Chain Category #1:Research & Development The mainstay of the pharmaceuticalindustry’s long-term competitiveness is itsability to pay for Research & Development.Pharma R&D is extremely costly and has ahigh failure rate, even at the later testingstage. The time taken to develop a newdrug varies, but recent evidence suggeststhe average is around 12 years.Nevertheless, the trends show that over thelast 10 years, global R&D investment hasbeen steadily increasing, not only toimprove innovation rates but also to meetthe rising costs of creating a new product.

However, the pharmaindustry is faced with

stakeholders such as pressuregroups, NGOs and

international organisations ––notably the WHO –– that are

demanding further evaluationof and philosophical debate

on the social and ethicalimplications of biotechnology

in medicine. Their goal is toensure a balance between

scientific progress and publicaccountability, respect and

transparency in terms of thepotential future risks in

research in this area.

Read More.

Value Chain Category #2:Manufacturing Pharma manufacturing quality is animportant driver in successful and timelyproduct launches, the optimization ofrevenue streams, the enhancement of acompany’s reputation, and ultimately themaximisation of shareholder value.

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PwC Sustainability PharmaExperiencePricewaterhouseCoopers has deepexpertise in the pharmaceuticals industry.One shining example is a case study onour Sustainability Solutions: Provision ofAssurance for Non-Financial Informationfor a Global Pharmaceutical Company

Other recent engagements in the pharmaindustry for global leading organisationsinclude:

• A post-merger EnvironmentalHealth & Safety strategy andimplementation to develop anapproach to harmonise goals with anewly merged firm. The approachinvolved facilitated dialogue withinternal and external stakeholdersand the formulation andcommunication of the EH&Sstrategy.

• Development and implementationof a process-oriented and integratedQuality Environmental, Health &Safety System, capturing the sites’activities in more than 80 well-defined processes (R&D,manufacturing, managementprocesses, and more).

• Responsible Supply ChainMonitoring to ensure thecompliance with corporate policyof sourcing and procurementactivities for a company’smanufacturing operations in China.

• Global inventory assessment of acompany’s Corporate Citizenshipprogram: The engagement includedinventorying current CorporateCitizenship activities andidentifying opportunities toshowcase, integrate, document, andenhance a company’s CorporateCitizenship performance.

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Pharma companies arewidely expected to addressthe corporate responsibility

issues of appropriateworking and employment

conditions and Health,Safety and Environmental(HSE) performance with

regard to theirmanufacturing operations.

Read More.

Value Chain Category #3: Salesand Marketing As R&D and manufacturing activitiescontinue to be outsourced to specialists,pharma companies are focusing on tasksthat provide potential in terms ofdifferentiation and value. One of theseareas is marketing and selling.

A key target group for the pharma salesforces are prescribing doctors. Thediscussion about unethical businesspractices in marketing such as overlyinfluencing prescribing doctors andproviding important donations to medicalassociations in return for positive articlespublished in trade journals is high on theagenda. Pharma companies try to ensureregulatory compliance, among other things,through implementing codes of conduct.

Read More.

The PricewaterhouseCoopersPharma Offering A coherent business-oriented approach tocorporate responsibility can serve both tolimit the downside risk, as well as providenew business opportunities for companiesin the pharmaceutical industry.PricewaterhouseCoopers’ SustainabilityBusiness Solutions professionals have solidexperience in working with pharmacompanies on addressing corporateresponsibility issues such as those detailedin this article.

PwC is also able to leverage a solidknowledge of this industry sector given thatwe audit the majority of the world’s largestpharmaceutical companies. We have alsodeveloped an internal industry-basedtraining programme (Industry Insights) thatensures that our professionals develop andmaintain a deep understanding of industrystructures and issues. Furthermore, ourPharma Networks of Excellence Intranetand other sites provide up-to-date industry-specific information.

For More Information Contact Thomas Scheiwiller Switzerland +41 1 630 2823

Simon Friend Global Pharmaceutical LeaderUnited Kingdom +44 20 7213 4875

Description of Client’s Business The IKEA Group isone of the world’slargest homefurnishings

companies. It operates 165 stores in Europe,North America and Asia and sourcesproducts from approximately 1,600 suppliersin 55 countries. IKEA has a strong companyculture based on IKEA’s fundamental valuesof creating a better everyday life for as manyas possible. Therefore, it is a natural part ofIKEA’s business to ensure that all productsare produced considering strongenvironmental and social standards.

‘The IKEA Way on Purchasing HomeFurnishing Products’ is IKEA’s Code ofConduct that states the minimum demandsexpected of all IKEA suppliers. It definesIKEA’s requirements regarding social andworking conditions, child labour,environment and forestry.

The Client’s Challenge IKEA has considered the incorporation of

the values in the entire supply chain to be along process of learning. Through theirtrading service offices, IKEA works closelywith their suppliers and visits them on aregular basis. IKEA has contact both locallyand internationally with organisations suchas UNICEF, Save The Children, theInternational Labour Organisation (ILO),WWF and Greenpeace. IKEA also has anagreement with IFBWW.

“One of the big challenges,” saysAnnemette Nielsen, Project Manager,PricewaterhouseCoopers, Denmark, “wasthat local governments need to get moreinvolved in improving the conditions atsuppliers in developing countries. A newWorldBank study by PwC will focus onhow governments can help in the processof improving social, working andenvironmental conditions.”

“Today,” she continues, “more and morecompanies are being asked by theircustomers to document that they complywith the customers’ Codes of Conduct,

A Responsible Supply Chain Case Study: IKEA

(see next page)

Helle Bank JorgensenDirector, PwC Denmark

Annemette NielsenSenior Consultant, PwC Denmark

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inspiring the companies to develop theirown or join into a industry or standardCode of Conduct, and starting evaluatingwhether their own suppliers comply withthe social and environmentalrequirements.”

“Companies use great amounts of resourceson branding their products andcompanies,” adds Ms. Nielsen. “Ifresources are only used on telling the rightstory and not on ensuring that the storythey tell is true, they not only lose theresources spend on branding, but they alsoare worse off damaging the reputation andbrand. “Responsible business leaders,therefore, need to ensure compliance,” saysMs. Jorgensen, “both in terms ofcompliance with the law, but also in termsof compliance with consumerexpectations.”

IKEA wanted to create astrategic and systematicapproach to responsible

supply chain management.Therefore, they contacted

PricewaterhouseCoopers tohave procedures further

developed and incorporatedin order to ensure that alltheir suppliers produce in

accordance withinternationally recognisedconventions and standards

within environment, forestry,social and working

conditions.

The PricewaterhouseCoopersSolution “The cooperation between our twocompanies started in 2000 and hascontinued since,” says Helle Bank Jorgensen,Project Manager, PricewaterhouseCoopers,Denmark. “It began with reviewing IKEA’sCode of Conduct and auditing tools. Next,PwC participated in the training of IKEA’sinternal auditors, performed independentparty monitoring visits of IKEA’s suppliers inorder to determine compliance with IKEAcode of Conduct, and we evaluated theperformance of IKEA’s internal auditors’work.”

PwC took a global approach to creating asolution. Our project teams provided:

• Advisory Services in connection withthe development of an internalcompliance organisation, controland reporting tools to ensureconsistent compliance with IKEA’sCode of Conduct.

• Development and training of IKEA’s

internal auditors, calibration visits toIKEA suppliers, including on-sitetraining at supplier’s premises ofIKEA’s internal audits, andindependent monitoring visits atsuppliers that define IKEA’srequirements regarding social andworking conditions, child labour,environment and forestry. As IKEAputs it “ensuring acceptable social,working and environmentalconditions at suppliers is a process,not a project.”

• Advisory services regardingdevelopment of routines, proceduresand distribution of roles andresponsibilities within IKEA.

• Third party monitoring visits torandomly selected IKEA suppliers toensure suppliers’ compliance toIKEA Code of Conduct and providean overall evaluation of IKEA’scompliance system.

Benefits/Results to the Client The implementation ofPricewaterhouseCoopers’ solutioncontributes to IKEA being able to:

• Have an internally embeddedresponsible supply chain program ––including trained internal auditors;

• Better ensure acceptable conditionsin the supply chain withinenvironment, working conditionsand human rights; and

• Improve compliance processes andprocedures via feedback fromcalibration visits andPricewaterhouseCoopers’ overallevaluation of the Compliancesystem.

Instead off waiting for NGO’s and themedia to find areas for improvement, IKEAhas taken a proactive approach. Via anetwork of Trading Service Offices, IKEAhelps suppliers to improve their operations.In addition, an internal support andmonitoring group follows up developmentson a global basis. PwC then externallymonitors this work for suppliers located inEurope and America.

“A company that has strong values is IKEA,”concludes Ms. Jorgensen. IKEA’s vision is tocreate a better everyday life for as manypeople as possible. This also led IKEA tostart working with Responsible SupplyChain management. It is a natural part ofIKEA’s business to ensure that all productsare produced considering strongenvironmental and social standards.”

“Being successful with social andenvironmental work is not an easy thing,”says Anders Dahlvig, President of the IKEAGroup. It takes a dedicated organisation. It

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A 2003 PwC CEO Survey Revealsthat CSR is Viewed StrategicallyImportant by Leaders of theWorld’s Largest Companies.The globalisation is increasing. Companiesare moving their production to low-costcountries where the actual environmental,social, health and safety conditions arebelow the standard consumers can accept.Often, the lower standard is not due todeficient local laws, but due to missingcompliance with the law, including ILOconventions ratified by the countries.

A WorldBank study that PwCconducted, involving

consultation of a wide rangeof suppliers, buyers andinternational and local

NGO’s, donors, and unions,stressed that to improve theconditions at suppliers, thesuppliers have to “own” thefocus on CSR and they have

to see the business case.Many companies have

realised this.

Instead, these countries have, for a while,been auditing their suppliers, but nowrealise that it is not a simple task or asingle string task to ensure acceptableworking conditions at suppliers. Controlalone is not efficient. Global corporationsare becoming more and more concernedabout finding out how to develop andimplement responsible supply chainprogrammes that are wider in theirapproach, including audits of suppliers,education of employees involved with thesuppliers, training of suppliers,cooperation with local and internationalNGO’s to help the suppliers improve theconditions, and more.

“It seems as if some already are going inthe right direction, looking at a citationfrom an Indian supplier involved in theWB study,” says Ms. Nielsen. “Buyers’efforts in this area had achieved more in afew years than the Indian labourinspectorates had in 30 years.”

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takes clear goals, strategies, time plans andresponsibilities. And above all, it takes avision to create a better everyday life for themany people. We have a business ideabased on low prices and cost-efficiency. Andwe have values that support a humble, costconscious and humanistic way of behaving.All this is a real strength in our work withsocial and environmental responsibility.”

For More Information Contact: Helle Bank JorgensenDenmark+45 3945 9245

Annemette NielsenDenmark +45 3945 3374

Country Focus: The Rising Tide of East Africa

By Nancy Asiko OnyangoDirector, PricewaterhouseCoopers, Eastern Africa

A few years ago, professional servicescurrently offered under the Sustainabilitybanner were little known in East Africa. Notany more. With the clamour for propercorporate governance, responsible supplychain management, corporate socialresponsibility, and the need to address risksposed by HIV/AIDS at a strategic levelwithin organisations, the services aregetting more popular.

So why is sustainabilityattracting such interest?

Executives within the EastAfrican business community

perceive this as anopportunity to build theirreputation. An increasing

number of executives nowrealise that certain issuesrelated to sustainability

enhance corporate image.

Currently, business executives are drawn tothe practice and debate aroundsustainability by the glamour and publicityrelated to corporate social responsibility(CSR), which has emerged as a factor thatcontributes towards better corporatereputation. No wonder most multi-nationalshave adopted CSR in one form or other. Butleading companies have fine-tuned theirCSR response to provide some competitiveadvantage, essentially a tie-breaker inhighly competitive sectors such as oil,banking, and telecommunication.

Noteworthy events buildSustainability’s credibilityThe growth of numerous award schemesand forums that recognise sustainabilityhave made the topic hard to brush off. Abig event like the FIRE (Financial Reporting)Awards in Kenya is noteworthy.

This is an annual event by the Institute ofCertified Public Accountant of Kenya(ICPAK), an accountants’ forum, and brings

together over 65 companies to recognisebest practices in financial reporting. Here,companies have embraced this scheme thatgoes beyond its core purpose of raisingstandards of financial reporting to alsoencourage companies to report oncorporate governance, environmentalprudence and corporate responsibility.

Every year, the Federation of UgandaEmployers also rewards best practice incorporate social responsibility and ethics.East African Business Summit is a regionalforum, where PricewaterhouseCoopers ––playing a key role –– also has urged CEOsto address environment degradation,corporate governance and the frighteningravages of HIV/AIDS. Also conducted byPricewaterhouseCoopers is The East AfricanMost Respected Company survey. Based onpeer reviews amongst CEOs the surveyassesses corporate reputation based onnumber of attributes including social andenvironmental responsibility.

As a result of these events,company executives have

began to addresssustainability issues and buildnon-financial disclosure into

their annual reports.

Activism and stringent standardsjolt executives into realityOn the flip side though, emerging issuessurrounding sustainability have broughtalong enormous risks. For instance,activism is rife, and the export marketshave imposed stringent standards thatthreaten to shut out errant companies.These trends such as the supply chainpressure and activism have joltedexecutives to the reality that failure torespond to sustainability issues can affectbusiness operations and even lead tountold agony.

NGO activism has become common in theregion and companies are increasinglyfalling prey. It is worrying that NGOs have,in fact, formed an industry that targetsmisbehaving companies. Now the activists

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are increasingly bold and take on theircorporate victims at will.

Recent examples include:• The boycott of Del Monte products,

which sprung from a case of labourrights violations at one of their fruitprocessing plant in Kenya.

• Tiomin, a Canadian miningoperation, was held ransom for overtwo years by NGOs for insufficientcompensation to local communitiesand a sloppy environmentalmanagement plan.

• Under the guidance of some localNGO, part of the Maasai communityrecently protested its isolation by asubsidiary of Brunner Mond, a UK-based soda ash manufacturer.

More examples in horticultureand EPZsIn both the horticulture sector and exportprocessing zones (EPZs) the tale is the same.The suppliers are engaged in protractedwrangles over labour issues. As always, thetobacco industry has not been spared.Besides health concerns for smokers, inKenya and Uganda, activists have widenedthe debate to stormy issues on health,safety, compensation of the tobaccofarmers, and underage smoking. The heatseems slightly off for pharmaceuticalcompanies, but reading from the placardsbrandished at the US President during hisrecent visit to Uganda, it’s obvious thatissues related to pricing and availability ofantiretroviral drugs have not abated.

These incidents have raised supply chainconcerns in both the regional and globalmarkets. Mainly, products for export toEurope and USA have been affected.Suppliers of tea, horticulture and apparelproducts are being monitored closely toensure they adhere to minimum standards oflabour practices and even chemical residues.

Daunting corporate governancechallengesAs is the case globally, companies in theEast African region face daunting corporategovernance challenges. Recently,embarrassing incidents such as boardroomcoups and stormy AGMs have receivedunflattering media coverage. Corporatescandals and collapse have also created

anxiety among investors, depositors andregulators, especially in the financial sectors.

In East Africa, the corporateboard is now under scrutiny,

and is being pressured tosteer company affairs off

“troubled waters”.

PricewaterhouseCoopers’ SustainableBusiness Solutions have recognised thechallenge the preceding factors posed toour clients and are responding to thesethrough:

• Supply Chain Monitoring –– InKenya, we are already working withPwC UK to monitor labour practiceson behalf of the Tea SourcingPartnership. This monitoring effortwill soon expand into Tanzania.We’ve also been part of a WorldBank study that analysedeffectiveness of buyer driven codesin influencing supply chains.

• HIV/AIDS Risk Evaluation andstrategy formulation –– Anincreasing number of companiesrealise that HIV/AIDS at the workplace is a business risk that theymust address.

• Corporate Governance RiskEvaluation and compliance tolegislation.

• Stakeholders’ ManagementSolutions, especially for companiesin embattled sectors such as EPZs,horticulture tobacco and mining.

• Non-Financial Reporting, e.g. TripleBottom Line reporting for thecompanies that want to improvedisclosure.

However, not all companies are rising withthe sustainability tide. A majority,especially the local companies, lag behindand are yet to recognise the value ofresponding to the challenge.

Find out more…To find out more about PwC’s efforts inSustainability in East Africa, please contactNancy Asiko Onyango, Director,PricewaterhouseCoopers Global RiskManagement Solutions, Eastern Africa. Telephone: +254 (0)20 285 5000Fax: +254 (0)20 271 1184

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Thierry RaesSustainable Development and CorporateSocial Responsibility DepartmentPartner, Sustainability Leadership Team,PricewaterhouseCoopersPresident, Ecobilan

Do private companies exist to carry theburdens of the entire human race? Onecould be enticed to believe so whenreading a number of reports and statementsof companies on sustainable development.

The wording used to speak about theseconcepts is far from trifling: between‘sustainable development’ and ‘corporatesocial responsibility’, one somehow losestrack as to the exact meaning behind thoseconcepts, and none of them gathers ashared understanding from the stakeholders.

I believe that the democratic State and thecitizen are there to build the world inwhich we want to live in. This has beensummed up by the Heads of States in theUnited Nation’s Millennium DevelopmentGoals. The States and citizens have agreater responsibility for sustainabledevelopment than companies do. Thechoice for sustainable development comesfrom society, not from the private sector.

It is the company’s duty toact in a responsible way,

respectful of its internal andexternal stakeholders, and to

consider –– in line with itsbusiness management –– theconsequences of its activities

on present and futuregenerations. Otherwise, itslicense to operate could be

withdrawn by society.

The terms of “SocialResponsibility” are hard to acceptUnfortunately, for some company directors,the terms of “social responsibility”, especiallyin their French translation, are hard toaccept. They ultimately prefer the ambiguityof the terms “sustainable development”,stressing especially the second word, andsometimes keeping the confusion going onbetween business and human development.

Having said this, integrating these conceptsinto the company strategy (instead ofhaving a specific sustainable developmentstrategy) involves making some choices.These choices should normally deal withkey elements of the company life cycle,

which include the staff and the productportfolio.

In the context of standard human relationsprocedures or of contract making, theintegration of all this into a company’sstrategy includes:

• Identifying ways to developcompany members, as well as theirfamilies, in particular throughwork/life balance, to encourage theprogress of subcontractors, and theirstakeholders in general; and

•Reconsidering the product portfolioand research, choosing to encourageinnovation in fields that prove to behelpful to society, to the developmentof the people, to health, to mobility,to feeding, etc., accordingly to thecompany’s core business.

Does CSR harbour somethingtruly new?A company that bankrupts its shareholdersis not sustainable. A company that does notlisten to its customers can be considereddead. A company that despises itsemployees will perish in contempt.Everyone knows this. So what is new withstakeholder management?

All companies implement “standard”management procedures, the ones youlearn in school, for profitability, humanresources and sales.

Upon closer inspection of its processes, thecompany notices that a continuousprogress approach increase performance:you then talk about better financialcommunication, you shift from “staff” tohuman capital, and from sales to CustomerRelationship Management. All in all,respecting stakeholders and managing wellmeet naturally.

True, but there’s a catch, a newstakeholder is showing up andhas started shaking things up,the famous civil society, well-

known of the politicians:composed of those not

registered in the voting lists,either because they do notvote –– the landscape, air

quality –– either because theyare not yet born –– future

generations –– either becausethey do not buy, and more

than one billion people livewith less than a dollar a day.

Presentation to FEDERE 2004, the European Forum onEnvironment and Socially Responsible Enterprises

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They can launch an Internet sitefrom their garageThey are not on the radar screen. They donot answer polls. They are not included inmarket studies. But they have representativeswhich, in a democratic world –– no CSRwithout democracy –– can launch an Internetsite from their garage attracting more interestthan those of the companies they denounce,can stop a pipeline construction, can causethe fall of the Berlin Wall or the CarnationRevolution, or claim the right to health.

These social progress expectations putpressure on the private sector, which are notresponsible for hunger in the world, norAIDS, nor access to water, but to whomsociety turns, because States and globalgovernance do not do their job wellenough, nor quickly enough.

This atmosphere leads companies toprogress, but slightly changing theparadigm: from financial communication,they shift to governance, and Board ofDirectors subcommittees on ethics; fromhuman capital management, they startconsidering diversity and equalopportunities; from customer relationship,

they shift to eco-design and fair trade.

Under the pressure of the new stakeholders,the enterprise continues to progress, adoptsa more empathic organisation, better tunedwith society.

But beware of the possible incidenttouching the sinews of war: companieswere seen parading ahead of CSR indexesbut drowning in losses, under the pressureof the markets. Just like a television gameshow where the earnings pyramid collapsesand restarts from zero, the cost cuttingprograms hit the non-strategic activitieshard, and the President who supported aCSR program finds himself accused ofscattering, losing focus on management.

It is clearly visible that there is no point inleading a CSR strategy, but on the contraryone should have a unique strategy towardseconomic and social progress, increasinglyempathic, without forgetting that an excessof altruism will be severely sanctioned.

For More Information…Contact Thierry Raes, PwC Sustainability Leader, France, 33 1 56 57 12 13.

“Social Report: A Fourth BasicFinancial Statement: On TheSocial Dimension of Enterprises”–– by Luis Perera Aldama, Partner and Co-Leader of SBS Chile,PricewaterhouseCoopers

Historically, the preparation of social reportshas moved in different directions, from longnarrative descriptions to precarious ordisintegrated information. Typically, thesereports utilise a genuine desire of showing asocial action. Unfortunately, the reportssometime look for notoriety, for marketingor to improve a company’s corporate image.

Nowadays, to report on Corporate SocialResponsibilities actions, integrating with theworld and stating a competitive advantagehave become necessities.

Because of these factors, companies havebeen induced to develop efforts to makeprogress and divulge their activities onCSR. This has caused an increasing interestin their so-called social reports.

As focused as financial statements“After dealing with conventional financialstatements for so many years,” says Perera,speaking from his office in Santiago, “itcame to me that, to make social reportscredible and transparent, they should befocused in the same way as financialstatements.”

“What was lacking,”continues Perera, “was a

format. I read many reportsfrom all over the world and

noticed there was nouniformity. I found a lot of

good intentions, but nostandard that would helpmake things comparable

within industries andgeographies — even within

companies.”

Setting a new standardNevertheless, the challenge has been toshow the company as integrated, and notas two separate companies –– economicand social ––, one in spite of the other.

With this in mind, Perera set out to createand propose a new standard. His bookshows that a fourth financial statement,describing an organisation’s behaviour interms of corporate citizenship and socialactions, can use the generally acceptedaccounting principles it already uses in itsbalance sheet, income statement, and cashflow statement.

The book is aimed at a wide range ofreaders: companies and entrepreneurs,regional and international groups of

New Publications From PricewaterhouseCoopers

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companies promoting corporate socialresponsibility, as well as accountants andauditors focused on working in this area.

Specifically, “The Fourth Basic FinancialStatement”:

• Is intended as a basic text that servesas a reference;

• Includes examples of practicalapplication, with a model as themissing link for companies to reportsystematically on their socialresponsibility actions, easy tounderstand but with technicalprecision;

• Allows companies to be regarded asagents for social change:

•Offers advice that transparency of acompany’s action, from a financialand social view, is also acontribution to improve its image, itsreputation, and creates a newparadigm: the current company is itspeople, acts with the people, andacts for the people.

“Finally!” writes Bob Willard,author of “The Sustainability

Advantage.” “Here is aninnovative way to concisely

capture and allocate thesocial value contributed by a

business to its variousstakeholders, building on

traditional financialstatements. A much-needed

job well done.”

For More InformationThis book is currently available in Spanishand English. To purchase this publication,please contact Luis Perera Aldama, 56 2 94 00 008.

Señor Perera is a 30-year PwC veteran andco-leader for the Sustainable businessServices for the South and Central Americaterritory.

Pictured in The Irish Times are, left to right:Seamus Scally, Group Managing Director,Musgrave Group; Mary Harney, Ireland’sDeputy Prime Minister, and Donal O’Connor,Senior Partner, PwC Ireland

PwC team: Andrea Oschetti, Isabelle Kan andSimon Copley

Assurance on MTR’sSustainability Reports 2003- 2005and Improvement onSustainability Processes, Systemsand Governance StructureMTR Corporation (MTR) operates HongKong’s commuter railway system. With over115 km of track and 6 lines, the railwaysystem transported over 775 millionpassengers and generated a net profit ofover US$500 million in 2003. MTR is alsoinvolved in property development andmanagement, as well as offering railwayconsulting services in more than 20overseas cities.

Listed on Hong Kong’s Hang Seng Indexconstituent, MTR is included on DJSI andFTSE4Good Indexes as well. Under thedirection of its Sustainability DevelopmentManager, Glenn Frommer, MTR activelyparticipates in the implementation of UITP’s(Union of International Transport Providers)Charter on Sustainable Development.

PricewaterhouseCoopers’ SBS team inHong Kong, led by Simon Copley, has beenengaged by MTR in a 3-year program tostrengthen its sustainability reportingsystems and related internal controls inorder to provide enhanced comfort tomanagement and stakeholders over thequality of information provided.

The 5-phase engagement starts with theprovision of a limited assurance on MTR’sSustainability Report 2003. The subsequentphases look at improving MTR’sSustainability management, reportingprocesses and systems, as well as itsgovernance structure with a view ofproviding a higher level of assurance in2004 and 2005.

For more informationPlease contact:Simon CopleyTel: +852 2289 2988

Andrea OschettiTel: +852 2289 1983

In the News: Hong Kong MTR Project

In the News: PwC Launches Ireland Sustainability PracticeFirst to market amongst its competitors,PwC in Ireland launched its new CorporateSocial Responsibility (CSR) Practice at abreakfast briefing in January 2004. PwC inIreland sees CSR as becoming an area ofsharper focus for business and this newservice is in response to client demand.

The new service was formally launched byIreland’s Deputy Prime Minister, Mary

Harney TD and Minister for Enterprise, Tradeand Employment who gave the keynoteaddress. Also speaking was Seamus Scally,Group Managing Director, Musgrave Group,Ireland’s largest family-owned retail companyand first in Ireland to produce a CSR Report.

This new CSR service: • Is headed by Niamh Whooley who

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outlined the CSR concept and herinsights into developing a CSRStrategy.

• Surrounds the important area ofdefining a set of valuesdemonstrating how a company playsits part in society across fourdimensions: workplace,marketplace, environment andcommunity.

• Provides a framework for linking allstakeholder concerns andexpectations into business strategyand operations.

In addition, analysts and investors are alsoenthusiastic about CSR reports as theyinclude social and environmentalinformation in addition to financial criteria,providing them with a better snapshot ofthe performance of a company. It has beenproven that good corporate socialresponsibility will enhance long=termshareholder value.

For further details or queries about CSRcontact Niamh Whooley at +00 353 1 6626805 or emailniamh.whooley@ie.pwc.com.

By Dan Bross, Microsoft Global Director of CorporateCitizenship

Why does Microsoft care about corporatecitizenship? Our commitment to corporate citizenship isdriven by two beliefs — first, a simplerecognition that as Microsoft has grown, sohas our impact on society. We recognisethat our decisions have significantconsequences for other companies, for thetechnology industry, and for people andcommunities worldwide. We take thatresponsibility very seriously.

Second, we believe that there is a businesscase for corporate citizenship. The long-term success of any business, ultimately, isdependent on strong relationships with keystakeholders –– customers, partners,employees and the greater community inwhich we live and work.

Those relationships are builton trust. Over our 30-yearhistory, we’ve learned a lotabout what it takes to build

trust and keep it, to earnrespect and return it, and tocreate the kind of businessenvironment that inspires

successful partnerships andcollaboration. Responsiblecorporate citizenship forms

the foundation of our effortsto build (and maintain) that

kind of trust.

What does corporate citizenship mean forMicrosoft?

Citizenship at Microsoft is: • An approach to doing business that

emphasizes our roles andresponsibilities as a global corporatecitizen, and responsible industryleader;

• A standard of conduct thatstrengthens our relationships—withcustomers, partners, investors,employees and communities—through the choices and actions wemake every day; and

• A system of values that guides ourbusiness decisions, enabling us toaddress society’s ethical, legal, &commercial expectations ofbusiness.

These guiding principles shape ourcommitments as a company. Ourcitizenship efforts are built on three keycorporate commitments:

• Helping individuals and businessesrealize their potential: Microsoft’smission—what drives our employeesevery day—is developing newtechnologies that help individualsand businesses to achieve their goals.This includes our commitments toour customers in the public andprivate sectors, our partners andemployees, and individualconsumers. But it also extends to thebroader community — particularlythose that are underserved. Microsofthas made a comprehensivecommitment to digital inclusion —helping individuals, communities,and nations gain access to thetechnology tools, skills andinnovation they need to operate inthe changing economy. The companyis committed to: helping makesoftware more available, helpingmake software easier to use,particularly for individuals withdisabilities, helping people accesstechnology skills training, and helping create commercialopportunity through our products andservices.

• Responsible industry leadership:Microsoft strives to be a responsibleindustry leader, and actively partners

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MICROSOFT: Challenges for Corporate Citizenship

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with governments and many othercompanies on public policy issuesthat are important to consumers andthe overall health of the technologyindustry. A key component ofcorporate citizenship for us focusessquarely on ensuring that technologymoves forward in a way that ensuresboth that its benefits aredisseminated broadly and that thereare strong technology and societalsolutions to the technology problemsthat emerge. This involves ourparticipation on issues such assecurity, privacy and children’ssafety online. Responsible leadershipalso extends to our commitment tomaintaining open and transparentbusiness practices—living by highstandards and guidelines regardingour standards of conduct, ourfinancial reporting and corporategovernance, and our reportingpolicies.

• Enabling opportunity: Through ourpartner-based business model,Microsoft helps to create economicopportunity and is an important partof the local economic base incountries and communities aroundthe world. In recent years, the ITindustry has emerged as an engineof growth and opportunity. Theglobal market for IT products andservices is projected to exceed $1.4trillion in 2005. In countriesworldwide, Microsoft works withpartners to develop innovativeproducts and to implementtechnology solutions that generateskilled jobs and billions of dollars inlocal revenues.

For example:• 1500 Microsoft IT Academies world

wide provide education andcertification in technology andMicrosoft products;

• 600,000 company partners helpbring technology and solutions tocustomers and communities aroundthe globe – and provide jobs andeconomic growth;

• 22,000 technology companiesworldwide earn an average $8 forevery $1 earned by Microsoft; 89%of revenue generated by solutionspartners that use Microsoft stay withpartners.

What are the major corporate citizenshipchallenges Microsoft faces? We operate, together with othercompanies, at the forefront of an industrythat is changing the way people work andinteract. The rapid change in informationtechnology is one of the driving forces of

our economy and defining features for ourgeneration. This clearly creates importantresponsibilities for us as a company andmore broadly for us as an industry. But italso creates a number of challenges forsociety. We think about challenges such asonline security, privacy, spam, inequitableaccess to technology, children’s safetyonline, and other similar issues on a dailybasis. We’re working to address thesechallenges head on — but these are areaswhere there’s no existing blueprint, so itrequires a good deal of creative thoughtand innovation. We’re fortunate in thatinnovation is a key character of our DNA!

Additionally, we have a number of veryimportant legal obligations that come out ofthe challenging antitrust litigation experiencewe have gone through as a company, andstill continue to go through with theEuropean Union case. Most notably, wedevote substantial resources to ensuring weare in full compliance with the consentdecree we entered into with the U.S.Department of Justice and eighteen states.(On June 30th, the U.S. Court of Appeals forthe District of Columbia Circuit issued aunanimous, six-judge ruling affirmingMicrosoft Corp.’s settlement and finaljudgment with these parties. While we arevery pleased with the progress we havemade to date in reaching settlement withSun Microsystems, AOL/Time Warner, aswell as ten private state class action suits, weare continuing to work hard to resolve otherpending litigation. We are committed tomoving beyond issues of the past to buildmore constructive relationships withgovernments and industry and to understandthe important role we play in the industry.

What are the key objectives of theCorporate Citizenship project with PwC?(from your perspective) Quite simply, our goals for this project wereto conduct a comprehensive assessment ofour citizenship efforts — including an honestappraisal of our areas of strength and anidentification of those areas were we need tofocus on improving our performance.

What do you see as the key benefits of thisproject? The report’s recommendations provide aclear roadmap for the work we need to doin both the short- and long-term. It helps usto assess ourselves objectively and to betterunderstand what we need to do to beresponsive to our company’s multiplestakeholders — be they our customers, ouremployees, our investors or the CSRcommunity at-large. Ultimately, this projectis a critical tool in helping us shape ourcorporate citizenship efforts — and tocontinue our efforts to build trust with theglobal community.

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report:Reprinted with permission of “Link” –– Amonthly PricewaterhouseCoopers internalnewsletter, February 2004

Link: In a nutshell, what is the mainmission for Society for OrganizationalLearning?

Peter: The basic idea is very simple: thatworld organisations can do together whatthey can’t possibly do by themselves. SoLsets out to enable collective orcollaborative change, and revealknowledge that can be as widely shared aspossible. The whole area of sustainability isa prime example. There’s very little that anyone company by itself can do to leadindustrial societies toward a way of livingthat conserves rather than destroys oursocial and natural capital.

Link: Can you give us some examples?

Peter: Well, one example of what’s goingon in the sustainability consortium is thematerials pooling project. That tackles avery, very complex change process whereno company by itself can make muchheadway. The basic idea is, how can welearn to collaborate across very complexsupply chains so as to systematicallyidentify and eliminate sources of waste andtoxicity? If companies work at it togetherand create a demand for environmentallysound alternatives, then something may bereally changed.

Our goal right now is to see if we canmake some headway around three or fourmaterial platforms. For example, we’retrying to get a good cross-section of autoindustry people and others that usedangerous anti-corrosion metal treatmentsand companies that supply thosecustomers. We’re also concentrating onleather –– the standard processes fortanning leather are pretty horrific. Theycause a lot of fatalities around the worldand produce lots of chemicals that are verydestructive to ecosystems.

Link: But how do you make a business casefor improving the situation?

Peter: If you look hard at any long-terminvestment or new technology, the idea thatthere is a cut-and-dried quantitativebusiness case is nonsense. There’s anargument you can make, but lots of timesyou’re wrong. What’s the business case forinvesting in your people? What’s thebusiness case for a major acquisition?There’s never a cut-and-dried business casefor any significant long-term investment,but we make such investments nonethelessall the time.

But there are someinvestments that companiesare used to making. Others,

they’re very unused tomaking. So I think the main

issue here is that this isunfamiliar territory.

I can give you one example of howcompanies come to some reasonabledetermination. One of the largest sellers offish products and agricultural goods in theworld is also one of the largest users ofwater. They look at global practices infishing, agriculture, and water, and theybasically say, the business case [forsustainable development] for us is survival.That’s one type of business case, andbelieve me, it’s very compelling.

Link: Do you think the sustainabilitymovement is changing? How do you seethe next 10 years?

Peter: I think this decade is a crucialdecade. I think it’s probably going to seemore dramatic social or political andenvironmental disruption. These two arealways very closely connected. Look at thetragic case of water. Increasing numbers ofpeople in the world are headed towardsituations of severe dehydration.Meanwhile, the soft drink industrycollectively already controls probably closeto 10 percent of the world’s drinkablewater, and it’s growing rapidly. I thinkyou’re going to see some significant shiftsstarting to occur.

Consider materials. You know, it’s not badluck that cancer rates are going through theroof in all the advanced countries. Thereare two obvious sources of this — our foodand our products. I expect to see moreclass-action suits. All of a sudden, businessis going to go, “Oh, my God. We alwaysused the cheapest thing we could use froma materials standpoint, if it provided somefunctionality we desired. And we can nolonger think about it that way.”

Link: Where do you think the politicalleadership in sustainability is coming from?

Peter: Europe has clearly taken leadershipin some areas, such as end-of-vehicle-lifetime directives. If you sell a car inEurope today, for example, you areresponsible for taking the car back at theend of its productive life. Similar legislativeinitiatives are taking shape with otherproducts, like consumer electronics. So Ithink in this decade we should see somereal breakthroughs, with a significant

“Unfamiliar Territory”: Discussion with Professor PeterSenge, Massachusetts Institute of Technology

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percentage of products being designed forremanufacture and recycling, so less andless toxic material will end up in wastedumps.

China is also creating majorripples, for example in the

auto industry. Will they electto develop manufacturing

capacity focused ontraditional internal

combustion technology, orseek to “leapfrog” to far

more environmentally soundoptions? In many ways they

are in a commandingposition, given the

enormous growth in privatecars predicted.

I think the Chinese government may getmore and more vocal in making very strongdemands for the partnership contracts withwestern multinationals that focus on next-generation technologies in core industries.

The other thing that’s very interesting todayis the way economic activity is integratedaround the world. So any major tradingblock has a lot of leverage. For example,the European Union (EU) end-of-vehiclelifetime mandates are in fact becomingglobal mandates. If you’re an automanufacturer, you’re going to go throughall the trouble of figuring out a way toeliminate mercury from your switches forthe cars you sell in Europe and not do thesame for the cars you sell all around theworld. You’ve worked for years to buildintegrated product platforms, and youreally can’t afford to have totally differentswitches around the world. The same willprobably be true of many of the materialschanges that the EU is driving.

One interesting thing about that is it meansthe US political process, which has been sostalemated on most environmental issues, isbecoming les and less relevant. That, to me,is one of the most important dynamicsstarting to play out in the world. The USelectorate seems so unmoved by problemslike global warming. But people in otherparts of the world are very moved. I expectother major trading blocks to take moreinitiative, from demanding alternativetechnologies to enacting tariffs or otherpenalties for those who generate largeamounts of carbon dioxide emission.

Link: You’ve been named one of the 24most important contributors to businessstrategy in the 20th century. Who are yourpersonal heroes?

Peter: That’s a lovely question. Well, I was

very fortunate to get to know Ed Demmingin the last few years of his life. He was awonderful combination of a very deepthinker who was a lifelong learner. And hehad a huge impact on the world –– a realintellectual leader. Intellect and heart, that’swhat really matters to me.

I’ve also in the last four or five years gottento know Peter Drucker a bit. I thinkeverybody admires his ability to thinkabout such broad and diverse issues and tobe able to deal with them in a verypractical way that really makes sense. Ireally admire his mastery of being able totalk about very complex issues in a waythat can really communicate to thenontechnical expert.

Gosh, there are so many other people Iadmire a lot. Barbara Stocking is somebodyI admire a great deal. She’s the president ofOxfam UK –– a really masterful manager,really helping people achieve tangibleresults in a way that grows people andbuilds a foundation for innovation in thelong term.

Link: Do you have any advice for PwC’sSustainable Business Solutions practice?

Peter: I think you guys are in a fortunateposition, in that you can get really goodclients, and that’s always the key, in anykind of service business. If you can getreally, really good clients, you’re going tolearn a ton. Then you share it with manyother clients.

A consultancy company and anaccountancy always have a very highpotential for influence on industrybehaviour –– for better or worse, right? Iwish I did know how to offer advice. Theonly thing I can say is, it seems to me thatthe key to your long-term success is to havethe very best clients, and that doesn’tnecessarily mean the biggest. It doesn’tmean the most famous. It basically meansthe most serious. It means the ones thathave capacity to innovate, companies thatare really pioneers –– even if you may notmake quite as much money working withthem.

About The AuthorPeter M. Senge is an acclaimed author anda senior lecturer at the MassachusettsInstitute of Technology. He also co-chairsthe Society for Organization Learning, aglobal community of corporations,researchers, and consultants dedicated tothe “interdependent development of peopleand their institutions.”

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“Building on the success of the 2002convention in defining Corporate Citizenshipin Africa, 2004 will set the benchmark forlinking Corporate Citizenship to growth andcompetitiveness.” Philip A. Armstrong,Chairman of the AICC and PrincipalConvenor and Editor of the King Report onCorporate Governance for South Africa 2002.

The convention is an extraordinaryopportunity to shape the African businessagenda in line with strong internationalmoves to integrate corporate citizenshipinto mainstream business practice. Africa’schallenges of corporate governance,HIV/AIDS, local content and SMMEdevelopment, poverty alleviation and thedigital divide will be addressed at theconvention.

A highly interactive networking andlearning experience, enabling delegates totake away a practical framework to progresstheir corporate citizenship strategies.

Attend this function if you are an executive,manager, practioner, policy maker,regulator or academic who wants to be partof shaping the future of business in Africa.

Interactive Sessions Covering:• Linking core business strategy to

sustainability for long-termcompetitiveness;

• Making codes and standards workfor your organization;

• Market and opportunity creation as acompetitive differentiator;

• Corporate governance andsustainability reporting;

• Brand & reputation stewardship as atool for competitiveness;

• Risk management;• Country level competitiveness

through Corporate Citizenship.

Includes official international launch of theAfrican Corporate Citizenship Forum – amultistakeholder platform for action

Inviting CSR teams from organisations toattend. Facilitators will be available tooptimise company specific learningoutcomes.

For more information, contact NkosithabileNdlovu on +27 11 643 6604 or emailnkosi@aiccafrica.org

Join Us At These Global Sustainability Conferences & Events

Is there really a “business case fordevelopment“? Poverty, underdevelopmentand wrong development do certainlyconstitute challenges for politics, but do theyalso offer real opportunities for the privatesector? The main thesis to be discussed atthe Sustainability Forum 2004 is this: basedon its expertise in strategically importantsectors like agriculture, health provision andfinance, the private sector can make asubstantial contribution to development inpoor countries; and this contribution fromthe private sector is indispensable for gettingcloser to achieving the United Nations’Millennium Development Goals.

This thesis opens up a set of key questionsthat will be discussed at the forum:

• Which strategic contributions canthe private sector make todevelopment in what way, based onits specific expertise and resources?

• Which practical experiences lead towhich conclusions for the future?

• What principles and rules of thegame are essential for thecooperation between the privatesector, state agencies and civilsociety institutions –– and how canthey be lived in a trustworthy way?

• How can the private sector’scontribution be crediblycommunicated?

• What scenarios can be built for theprivate sector’s future involvement indevelopment processes?

On August 27, Thomas Scheiwiller and TomCraren, Sustainability Business Solutions,PricewaterhouseCoopers, are featuredspeakers, presenting a case study and paneldiscussion entitled, “Transparency”.

Register online www.sustainability-zurich.org

AICC21-22 July 2004Johannesburg, South AfricaSecond Bi-Annual Corporate Citizenship Convention

5th International Sustainability Forum26-27 August 2004Rüschlikon/Zurich, SwitzerlandBusiness Investment in Development: Experiences. Scenarios.Swiss Re’s Center for Global Dialogue

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Consistently drawing attendance from morethan 1,000 leaders of business, civil societyand the public sector, and representationfrom more than 35 countries, theConference is one of the largest and mostvaluable networking events for CSRpractitioners. Early registrants receive a

discounted fee through July 31, 2004.Additional discounts are available to BSRmembers.

Visit the BSR Conferences section for moreinformation.

Register online

19th World Energy Congress & Exhibition September 5-9, 2004, Sydney, AustraliaBSR 2004 Annual Conference Integrating CSR: New Risks, New RewardsNovember 9-12, 2004, New York, NY