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Awakening Social ResponsibilityA Call to Action

By Rossella Dericksonand Krista Henley

with Cindy CampbellHeather Connors

and Almaz Negash

Awakening Social Responsibility: A Call to Action Guidebook for Global Citizens, Corporate and Non-Profit Organizations

Copyright © 2007 by Rossella Derickson & Krista Henley

All rights reserved. No part of this book shall be reproduced, stored ina retrieval system, or transmitted by any means electronic,mechanical, photocopying, recording, or otherwise without writtenpermission from the publisher. No patent liability is assumed withrespect to the use of the information contained herein. Although everyprecaution has been taken in the preparation of this book, thepublisher and author(s) assume no responsibility for errors oromissions. Neither is any liability assumed for damages resulting fromthe use of the information contained herein.

First Printing: October, 2007Paperback ISBN: 1600050654 (978-1-60005-065-7)Place of Publication: Silicon Valley, California, USAPaperback Library of Congress Number: 2007937601

eBook ISBN: 1600050662 (978-1-60005-066-4)

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Praise for Awakening Social Responsibility

"Organizations that provide meaning and service attract people whowant to find meaning and deliver service. If these are the people youwould like to attract, read this book!"Marshall Goldsmith - author of 'What Got You Here Won't Get YouThere', a New York Times best seller and Wall Street Journal #1business book.

"The Social Responsibility of most of our institutions needs to beawakened, for it has been dozing on the drug of minimum standardsfor years. I hope this book will be an awakening; it has all the tools youneed."Peter Block, Bestselling author of 'Flawless Consulting: A Guideto Getting Your Expertise Used' and 'Stewardship: ChoosingService Over Self-Interest'

"Environmental protection and economic prosperity can, must andshall go hand in hand. This book will guide you to find the protection /prosperity intersection in your company."Hunter Lovins, Co-Author, 'Natural Capitalism: Creating the NextIndustrial Revolution'

Dedication

This book is dedicated in gratitude to all the people, businesses, andorganizations that are committed to create a sustainable world. Wethank you.

Acknowledgements

Special thanks go to Susan Collin-Marks and John Marks from theSearch for Common Ground for their kind but direct push to step in tolead in this vitally important territory of social responsibility.

Almaz Negash, Cindy Campbell and Heather Connors formed ourinterview and writing team for this project. We are grateful for theirwisdom, creativity and support. They are much more than contributingauthors, they are the inner circle which made this project possible.

We thank our publisher Mitchell Levy for his support andencouragement to broaden our mission to bring wisdom to theworkplace through this book.

We appreciate beyond words our editor, Alis Valencia, for herguidance, writing skill, and knowledge in the area of socialresponsibility. We also acknowledge Kathryn Hall, whose many yearsas a top book publicist, gave us the insights needed to move thisproject forward.

Finally, thank you to each individual highlighted in this book, for yourpurpose and passion, and for aligning with us to make a difference inhow companies engage in Corporate Social Responsibility.

Rossella Derickson and Krista Henley

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C o n t e n t s

Awakening Social Responsibility - A Call to Action vii

Preface Preface

Book Use How to Use this Book

Part I Perspectives on Social Responsibility . .5

Chapter 1 Silicon Valley WatcherTom Foremski . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Chapter 2 Forty Years of Corporate Social ResponsibilityJames O'Toole . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Chapter 3 Survey TrendsSalvatore V. Falletta . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Chapter 4 Raise the BarAlis Valencia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

Chapter 5 From Corporate Citizenship to Global CitizenshipDinesh Chandra . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

Part II Implementing Social Responsibility . . .35

Chapter 6 Heed the ChallengesKirk O. Hanson . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

Chapter 7 Consider Ethical IssuesMarvin Brown . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

Chapter 8 Assess the OpportunitiesAzure Kraxberger . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

Chapter 9 Exercise InfluenceB. Kim Barnes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61

viii Contents

Chapter 10 Integrate CSR into Business-As-UsualPravir Malik. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65

Part III Corporate CSR Initiatives . . . . . . . . . . . 69

Chapter 11 Authentic CSRChristine Arena . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71

Chapter 12 Getting StartedSun Microsystems: Marcy Scott Lyn and Rich Lang . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75

Chapter 13 Ethical Sourcing from SuppliersGap Inc.: Dan Henkle . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79

Chapter 14 Sustainable BusinessCisco Systems, Inc.: Adrian Godfrey . . . . . . . . . . . . . . . . 83

Chapter 15 Investing in the FutureIntel Corporation: Dave Stangis . . . . . . . . . . . . . . . . . . . . 87

Chapter 16 Pro Bono ServicesCooley Godward Kronish LLP: Maureen Alger and Ashley Kanigher . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93

Chapter 17 Responsible Business ProcessesSymantec Corporation: Cecily Joseph. . . . . . . . . . . . . . . . 97

Chapter 18 Empowered to Do the Right ThingAdobe Systems Inc.: Michelle Mann . . . . . . . . . . . . . . . 101

Part IV Ways to Take Action on Social Responsibility. . . . . . . . . . . . . . 105

Chapter 19 Become a Beacon of SustainabilityAct Now: Adam Werbach . . . . . . . . . . . . . . . . . . . . . . . . 107

Chapter 20 Incorporate CSR from the BeginningEntrepreneurs Foundation: Sean Foote . . . . . . . . . . . . . . 111

Chapter 21 Recruit Immigrant ProfessionalsUpwardly Global: Jane Leu. . . . . . . . . . . . . . . . . . . . . . . 115

Awakening Social Responsibility - A Call to Action ix

Chapter 22 Volunteer on Your TermsOne Brick: Dave Shefferman . . . . . . . . . . . . . . . . . . . . . 119

Chapter 23 Contribute to Global Peace and Well-BeingThe Dalai Lama Foundation: Tony Hoeber. . . . . . . . . . . 123

Chapter 24 Good Capital: Invest in Social EnterpriseRight Reality: David Batstone. . . . . . . . . . . . . . . . . . . . . 127

Chapter 25 Become an Internet PhilanthropistBring Light: Drew McManus . . . . . . . . . . . . . . . . . . . . . 131

Chapter 26 Engage in One-on-One PhilanthropyHuman Connexus Foundation: Cindy Campbell and Heather Connors . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133

Chapter 27 Reuse and Recycle Surplus ItemsiReuse LLC: Ken Kurtzig . . . . . . . . . . . . . . . . . . . . . . . . 135

Chapter 28 Promote Economic IndependenceKiva Microfunds: Premal Shah . . . . . . . . . . . . . . . . . . . . 139

Chapter 29 Help Nonprofits with their Training NeedsCommunity Outreach Program: Kris Schaffer . . . . . . . . 143

Chapter 30 Support Collaborative Solutions to ConflictSearch for Common Ground: Jane Shaw . . . . . . . . . . . . 145

Chapter 31 Find Core Competitive AdvantageATDynamics, Inc.: Andrew Smith . . . . . . . . . . . . . . . . . 149

Chapter 32 Empower WomenEntwine Global: Almaz Negash . . . . . . . . . . . . . . . . . . . 153

Chapter 33 Raises Living StandardsVillage Enterprise Fund: Nicholas Imparato . . . . . . . . . . 155

x Contents

Part V The Human Resources Leadership Role in CSR . . . . . . . . . . . . . . . . . . . . . 159

Chapter 34 Corporate Social Responsibility: HR's Leadership RoleSociety for Human Resource Management (SHRM): Nancy Lockwood. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 161

Part VI Resources . . . . . . . . . . . . . . . . . . . . . . 183

Chapter 35 CSR Global Resource Links

Authors About the Authors . . . . . . . . . . . . . . . . . . . . . . . . . 189

Books Other Happy About Books . . . . . . . . . . . . . . . . . . . 193

Awakening Social Responsibility - A Call to Action 1

P r e f a c e

Preface

We live in an unprecedented time where thereare remarkable changes in our society,economy, and environment. We can no longeravoid the impact that individuals, corporations,and organizations have in a community. Whatcan we do to help? What is our responsibility?There are pivotal times in our lives when we arecalled to action; when we are called to make adifference. Our team of five committed profes-sional women answered the call to make a differ-ence by interviewing experts in socialresponsibility, and bringing the wisdom back toyou, our readers.

The result is a quick guidebook for global citizenswho are interested in creating socially responsi-ble programs but have little or no idea where tobegin within their own companies. Our teammakes no effort to be comprehensive but insteadoffers a glimpse of what is possible. Our intentionis to help people get started on the pathway tocorporate social responsibility (CSR).

The concept of CSR is not new, just of greaterinterest now that media scrutiny, shareholderconcerns, and public opinions have heightenedthe value placed on socially and environmentally

2 Preface

beneficial business practices. The benefits,however, will be greater when initiatives are wellintegrated with business strategy and, as aresult, companies “do well while doing good.”

By just picking up this book, you have joined usas a change agent to support the evolution of amore sustainable world. As you read, we hopeyou are inspired by each contributor to the book.We trust you will gain insights on how to leave apositive global footprint, and through CSRprograms, bring meaning into the workplace.Please join us by awakening members of yournetwork to the importance of CSR, and together,answer the call to take action!

Rossella Derickson, Krista Henley, AlmazNegash, Cindy Campbell and Heather Connors


B o o k U s e

How to Use this Book

The book has six sections; each gives thereader flexibility to choose what is mostimportant to get a CSR program started, or toenhance an existing program. The guidebookincludes interviews with industry leaders andCSR experts to help you understand thebusiness case for transforming your organizationand to illustrate issues that may pose challengesfor implementation. There is also a compilation ofresources including non-profit organizations andother socially responsible business options foryou and your company to utilize while creatingyour own programs.

Perspectives on CSR: In this section wepresent the observations of experienced profes-sionals: what CSR means, the good and the bad,the trends, and the possibilities.

Implementing CSR: The challenge of introduc-ing change is heightened when a company isserious about CSR. The chapters in this sectionintroduce some of the issues companies need toconsider as they move forward with a CSR

4 How to Use this Book

program: leadership, clarity of purpose, ethicalconcerns, procedural steps, and strategic inte-gration.

Corporate CSR Initiatives: We provide insideviews of several corporate CSR programs to il-lustrate the sort of initiatives underway. Ourexamples also show how CSR can be incorporat-ed throughout an organization, and reveal issuesthat can pose special challenges.

Opportunities to Practice CSR: An ever-in-creasing number of nonprofit organizations facil-itate CSR by providing opportunities forcompanies—and their employees—to contributeresources, time, and expertise. There are alsocompanies formed expressly to meet social,economic and environmental needs. Thecompanies model CSR-driven business strate-gies and also provide business opportunities toinvest in CSR. In this section we profile a diversearray of organizations that facilitate CSR.

The Human Resources Leadership Role inCSR: The HR professional can gain clarity ofpurpose and have the ability to influence their or-ganization's culture by embracing the new andevolving CSR role addressed in this section.

Resources: Opportunities to learn more aboutCSR abound. We list organizations and periodi-cals, all readily accessible on the Internet,dedicated to advancing socially and environmen-tally responsible business practices.

15% of the profits from this book will bedonated to charity.

Part IPerspectives on Social Responsibility

• Silicon Valley Watcher—Tom Foremski

• Forty Years of Corporate Social Responsibility—James O'Toole

• Survey Trends—Salvatore V. Falletta

• Raise the Bar—Alis Valencia

• From Corporate Citizenship to Global Citizenship—Dinesh Chandra


C h a p t e r

1 Silicon Valley WatcherTom Foremski

Tom Foremski is a former news reporter andcolumnist for the Financial Times. He now writesabout the business and culture of Silicon Valleyon his web site, The Silicon Valley Watcher(www.siliconvalleywatcher.com). We asked Tomfor his views on corporate social responsibility.

What are your thoughts about Corporate Social Responsibility?

CSR is a topic that is about to explode. Googlestarted igniting peoples' thinking about CSR withan article in Red Herring. In fact, the GoogleFoundation was almost the reason Googleexisted. It was inspiring. That kind of visionstatement is vital here in Silicon Valley.

“Google.org aspires to use the power ofinformation to help people better their lives.We are an experiment in active philanthropy.In addition to financial resources, we arefortunate to be able to engage Google'sentire family of people and partners,information technologies and otherresources to address three major growingglobal problems: climate change, globalpublic health, and economic developmentand poverty.”

8 Chapter 1: Silicon Valley Watcher

People really want to change the world; they are here to make adifference. I see it time and time again with new start-ups. After severalsuccesses, the entrepreneurs want to get back in and try again, tocontinue to innovate. It's not about changing the world with software orchips. There has to be a place for us to give back to our societies andto our communities to make it all worthwhile.

People want to be a part of a group that is doing fantastic things. Theorganization has to be a good corporate, community and world citizen.All companies need to have all of these elements, and you can't justgive lip service and say you are doing it; leadership has to be involved.

Why might Silicon Valley be the new frontier for social responsibility?

Silicon Valley is a melting pot. The competition here is for the best inthe world, and it's not money that competes for the best in the world.What attracts that person is more than money and stock options - it isbeing part of an organization that is much more than that.

To make real progress, the venture capital community needs to bemore involved in CSR. It is time for VCs to have CSR in their businessplans. That would really help things along.

Where would you start?

Silicon Valley has to show social commitment in our ownneighborhood. A local commitment is not evident. Schools are thefabric of a community and society, and they should be the first focus ofCSR. The public schools in Silicon Valley are terrible. They should beshowcases. Within a few miles of each school are resources,materials, and money. There is no excuse for such a bad schoolsystem. As a community, we need to get involved and show that we areinvolved locally. Some of the charity needs to start at home.

One simple solution is to have the best and brightest donate time toschools. We could leverage the brilliant minds to inspire our youth.


Silicon Valley entrepreneurs know how to build business. Why nothave a social mission and be extremely profitable? One should berewarded for doing well in the community. People shouldn't have totake a lower wage to do good work. Silicon Valley can set an exampleand stop the old way of thinking about good work, which is “You lovewhat you do so we can pay you less.” The new model might be “Loveyour work, do the right thing, and be financially rewarded, too.”

Tom Foremski 1900 Eddy Street #6San Francisco, CA [email protected]

10 Chapter 1: Silicon Valley Watcher


C h a p t e r

2 Forty Years of Corporate Social Responsibility

James O'Toole

James O'Toole is The Daniels DistinguishedProfessor of Business Ethics at DenverUniversity's Daniels School of Business. He hasconducted research and written on leadership,ethics, corporate culture, and philosophy.Creating the Good Life, the New AmericanWorkplace, the Executive's Compass, andLeading Change are among his 18 books.

O'Toole has studied what companies have donein the area of corporate social responsibility forover 40 years. In spite of recent press that putsCalifornia and the Silicon Valley at the forefrontof what looks like a new movement, O'Tooleconsiders many in the Human Resourcescommunity to be latecomers to CSR. Late or not,he seems hopeful that a tipping point of sortsmight change the way Human Resourcesengages and commits to take action in CorporateSocial Responsibility.

Can you briefly describe the history of corporate social responsibility?

CSR started in the 1960s. Companies asbackward as GM, had CSR programs in the early1970s. There was a tremendous amount ofpioneering effort in this arena in the 1970s and

12 Chapter 2: Forty Years of Corporate Social Responsibility

1980s. Atlantic Richfield, Dayton Hudson, and Levi Straus put largestaffs and big contributions into CSR with programs like the 10% Club,5% Club, and 1% Club. They took innovative initiatives with regard toenvironmental action. Xerox gave sabbaticals to employees to donatetheir time (up to a year) working for local nonprofits. Hence the newinterest in CSR today is almost like a rediscovery of the wheel. Putpositively, there is lots of experience to draw on, even right here inSilicon Valley. In the early 1980s at Stanford, the Business EnterpriseTrust, headed by Kirk Hanson (who now directs the Markkula Center atSanta Clara University) encouraged companies all over the country toengage in CSR and documented what they had done so others couldlearn from their experiences.

What company do you admire for CSR practices?

Some companies do good by doing well. For example, Patagonia doesgood in the Third World, which helps them to recruit top-notch peoplehere in the United States. CSR is built into their culture - part ofeverything they do and stand for.

How have companies with longtime investments in CSR done?

Sometimes companies try to do the right thing with CSR programs, butthen they back off. I did a study in 1980 of ten companies that wereleaders in CSR at the time. Of the ten, only two are still leaders. Theothers got out of the business. Levi Strauss in 1980 was number 1.Their investment went beyond philanthropy to how they treated allemployees and how they acted in the community. Their blue collaremployees were a part of decisions regarding where to put theircharitable donations, and those employees also put in their own timeto do community service at the agencies that received company funds.Because Levi Straus was so badly mismanaged, they no longer haveany blue collar workers in the United States, so the employee-ledprograms have all disappeared. Now there is just senior-levelengagement in philanthropy.


What is the prime social responsibility of every private company?

Their prime responsibility is to their employees and the lives of thosewho work for them. This is especially true in Silicon Valley wherebusiness activities don't have a huge impact on the environment. Thekey ethical question that needs to be asked in high-tech industries is:How are our people treated? To have a first rate CSR program in theValley a company must start with its own people: their opportunities foradvancement, the impact of working conditions on the children ofemployees, and the quality of health care. All this not just for U.S.based workers but for the company's workers in the developing worldas well, including their contractors and subcontractors.

Does philanthropy create dependence? What is the impact if companies are not able to continue to support nonprofits?

Bank of America was a generous contributor to arts and communityprograms in San Francisco. But when the company moved itsheadquarters to North Carolina, nonprofits in the Bay Area stoppedgetting those philanthropic donations, and they suffered for manyyears. Another example is Atlantic Richfield, a company that for manyyears supported California nonprofits. When the company started tocut back on its presence in California, they also cut off funding to localnonprofits. Companies need to be aware that they may be creatingdependencies that they are unprepared to maintain.

Where should companies invest in CSR?

The Gates Foundation is an admirable example of virtuous giving. Billand Melinda Gates have created a model program that is separatefrom Microsoft. The Gates give their money and Warren Buffet'spersonal wealth away, which frees them from corporate self-serving. Afew years ago, Bill Gates sat back and considered who the neediestpeople in the world were. This was a different frame of mind from theone he had when he was thinking with his Microsoft hat on: When hefirst started down the CSR path, he was going to give peoplecomputers. What he later discovered is that if you make less than $1 aday, you need water, food, and medicine; and computers can comelater.

14 Chapter 2: Forty Years of Corporate Social Responsibility

Unfortunately, most companies make decisions about where to investtheir CSR dollars based on who makes the most noise in thecommunity and, even more often, on the CEO's pet interests. Thedecisions are based on what is convenient, not on where the companycan have the greatest impact on the neediest people.

In Workplace Visions, the 2007 SHRM report, it is clear that CSR will be a driver and new role for HR. What are your thoughts?

CSR is a way to gain competitive advantage for recruiting. If you are aresponsible citizen you will want go to work for a responsible company.So, which company will a good candidate choose: Cisco or Oracle?The decision will often be made based on a company's reputation forsocial responsibility. At Patagonia, 200 to 500 qualified candidatesapply for every job opening, so they can pick and choose the primeemployees. Companies with good CSR records also seem to havelower employee turnover rates.

O'Toole closed with a message about CSR to HR professionals.

Everyone else is doing it, so you better get on board. If you have notstarted, you are already way behind. It is no honor to be 35 yearsbehind GM!

[email protected]


C h a p t e r

3 Survey TrendsSalvatore V. Falletta

Dr. Salvatore Falletta is President and CEO ofLeadersphere, Inc. — a workforce intelligenceconsulting firm that specializes in web-basedsurveys & assessments. Prior to foundingLeadersphere, Inc., he served as VP, Global HRand Chief People Officer for a Fortune 1000company based in Silicon Valley and heldmanagement and consulting positions at NortelNetworks, Alltel, Intel, SAP AG, and SunMicrosystems.

The Society for Human Resources Management(www.shrm.org) recently concluded a compre-hensive study in the United States and abroad todetermine what corporate social responsibilitymeans to HR professionals and how it isimplemented.1 The study highlights theimportance of developing CSR strategies andthe role of the HR professional in driving specificpolicies and practices. For example, respon-dents in the United States as well as othercountries reported that HR had an active role inimplementing CSR strategy within theirrespective organizations. Additionally, HR

1. A. Benedict, Corporate Social Responsibility: United States, Australia, India, China, Canada, Mexico, and Brazil - A Pilot Study. (Alexandria, VA: Society for Human Resource Management, 2007).

16 Chapter 3: Survey Trends

professionals reported engaging or involving employees in CSRprograms by recognizing them for participating in volunteer programs,encouraging senior management to participate in volunteer programs,providing company-sponsored volunteer events, and encouragingemployees to lead volunteer programs, to name a few.

To learn about CSR perspectives and practices in Silicon Valley, theSouth Bay Organizational Development Network (www.SBODN.com)asked Leadersphere to conduct a survey of SBODN members andtheir extended professional networks.

Findings

Of the 63 HR, training and development, and OD professionals whoparticipated in the survey, 63.5% reported being active participants inCSR,while 17.5% were considering or planning to take action in thefuture. The remaining 19% had no plans to take action in CSR.

The majority of respondents (83%) were from for-profit organizations;the remainder represented nonprofit, public sector, and highereducation organizations.

As anticipated, survey participants from large organizations (50,000+employees) reported being more active in CSR practices and activitiesthan smaller organizations. Internal employees reported themselvesas being more active in CSR than independent or principal consultants,perhaps due to larger organizations having more CSR programs andresources available to employees.

Table 1: Participation in CSR (Overall)

My company/organization is: Frequency Percent

An active participant in CSR 40 63.5%

Considering or planning to take action inCSR

11 17.5%

Not considering or planning to take actionin CSR

12 19.1%

n=63


Table 2: Participation in CSR (by Organizational Size)

My company/ organization is:

100 or less

(n=19

101 - 1000

(n=11)

1001 - 5000

(n=13)

5001 - 10000 (n=4)

10001 - 50000 (n=8)

50001 + (n=8)

An active participant in CSR

61.6% 80.0% 60.0% 80.0% 60.0% 100.0%

Considering or planning to take action in CSR

19.2% 0.0% 20.0% 0.0% 20.0% 0.0%

Not considering or not planning to take action in CSR

19.2% 20.0% 20.0% 20.0% 20.0% 0.0%

Table 3: Participation in CSR (by Internal Employee vs. External Consultant)

My company/organization is:

An employee of an organization (n=46)

An independent consultant/principal for a consulting firm (n=17)

An active participant in CSR 69.6% 47.1%

Considering or planning to take action in CSR

13.0% 29.4%

Not considering or not planning to take action in CSR

17.4% 23.5%


The results show a wide range of CSR practices being performed inorganizations. The three most frequently reported practices are to:

1. Support the community through company sponsored volunteerprojects,

2. Donate or collect money for charities, and3. Consider the overall social impact of business decisions.

Table 4: Types of CSR Practices (Overall)

Frequency Percent

Support the community through company - sponsored volunteer projects

47 74.6%

Donate/collect money for charities (e.g., Red Cross, United Way)

40 63.5%

Consider the overall social impact of business decisions

35 55.6%

Company matching for employee contribu-tions/donations (e.g., dollar for dollar matching or some type of percentage% match)

31 49.2%

Donate/collect money for natural disasters (e.g., South Asian tsunami, Hurricane Katrina, earthquakes, etc.)

30 47.6%

Monitor the impact of business on the envi-ronment/eco-system

26 41.3%

Partner with woman- or minority-owned sup-pliers/companies

24 38.1%

Partner with environmentally-friendly suppli-ers/companies

23 36.5%

Cause marketing/branding (i.e., aligning product or company marketing with a particular social cause)

13 20.6%


Smaller organizations (100 or fewer employees) placed greateremphasis on partnering with environmentally-friendly suppliers orcompanies, whereas larger companies (1001 or more employees)more often used company matching programs for the charitabledonations of employees.

Other types of CSR practices reported by participants included:

• Promoting “green or eco” related initiatives to employees.

• Helping local communities with urban planning projects for positive community relations.

• Paid leave or paid time off for employees who perform volunteer work.

• Assisting other companies that are planning CSR activities.

• Developing eco-friendly or energy efficient products and services

When participants were asked what one thing they would take actionon related to CSR, the top three responses were to:

Support global initiatives in developing countries (e.g., building water and/or sanitation systems)

11 17.5%

Monitor global fair labor standards/practices (e.g., child labor regulations, working conditions)

10 15.9%

Track sources of global raw materials/suppli-ers

8 12.7%

Other 7 11.1%

Note: Types of CSR Practices were adapted from 2007 SHRM CSRReport.1

1. Ibid.

Table 4: Types of CSR Practices (Overall)

Frequency Percent


• Drive “eco/green/environmental” awareness and meaningful practices within their organization, their community, and society at large.

• Make CSR an ongoing practice in their organization rather than a single event or campaign.

• Support employee volunteer programs by, for example, providing paid leave or time off or organizing volunteer programs in collaboration with groups and organizations at local, national, and global levels.

Approximately 43% of the respondents reported that theirorganization's President/CEO had the ultimate responsibility forcreating CSR strategy. This is consistent with the results found in theSHRM study mentioned earlier. Another 19% reported that the ChiefCSR/ Corporate Citizen Officer are responsible for strategydevelopment. 22% of participants did not respond.

Table 5: Primary Responsibility for CSR Strategy Creation

Frequency Percent

President/CEO 27 42.9%

Chief CSR/Corporate Citizen Officer 12 19.1%

Chief HR Officer 7 11.1%

Chief Ethics Officer 2 3.2%

Chief Marketing Officer 1 1.6%

Chief Compliance Officer 0 0.0%

Chief Public Relations Officer 0 0.0%

Chief Financial Officer 0 0.0%


Responsibility for implementation lies mostly with the President/CEO(25%) or HR (19%), a finding consistent with the SHRM study.

Notably, many respondents commented that CSR is everyone'sbusiness and that responsibility should be apportioned across theexecutive leadership team. Similarly, participants in the SHRM studyreported that employee task forces or committees and seniormanagement were largely responsible for implementing CSRstrategies. Nonetheless, organizations often appoint or designate aprimary leader to drive CSR policies and practices so that there is asingle point of ownership and accountability.

When participants were asked what role HR plays or should play inCSR at their organization, the following themes emerged:

• HR should influence CSR strategy and participate in itsimplementation.

• HR supports or should support the CEO on CSR policies andpractices (fair labor practices, for instance).

• HR should coordinate CSR-related events and activities (forexample, volunteer programs or donations to charitableorganizations).

Table 6: Primary Responsibility for CSR Strategy Implementation

Frequency Percent

President/CEO 16 25.4%

Chief HR Officer 12 19.1%

Chief CSR/Corporate Citizen Officer 9 14.3%

Chief Public Relations Officer 6 9.5%

Chief Compliance Officer 2 3.2%

Chief Ethics Officer 2 3.2%

Chief Marketing Officer 1 1.6%

Chief Financial Officer 0 0.00%


• HR instills or should instill underlying cultural values for CSR (forexample, include “eco-friendly” or “environmental stewardship” aspart of the organizational/company core values) and ethicalbehavior (for example, serve as a CSR champion and drive CSRand ethics training).

• HR, training and development, and OD are or should be workingsynergistically on CSR implementation.

An Appraisal

The CSR practices most frequently adopted in Silicon Valley—compa-ny-sponsored volunteer projects, contributions to charities, and socialimpact as a new variable in business decisions—represent a traditionalview of CSR in that they emphasize philanthropic activities. Theorganizations surveyed by SHRM were no different.

Although volunteer programs and planned giving are noble practices,and considering that the overall social impact of business decisions ispromising, organizations must push the proverbial envelope withrespect to ensuring that CSR is an integral part of the overall businessstrategy. More importantly, organizations must do a better job ofmonitoring the impact of business on the environment and measuretheir footprint on society at large as well as the environment.

Seen in this light, it is encouraging that driving “eco/green/environmen-tal” awareness and meaningful practices was the number one themethat emerged when respondents to the SBODN survey were asked toidentify the one thing they would take action on related to CSR.Cutting-edge organizations will be able to establish an “eco-advan-tage” by using an environmental strategy to innovate, create value, andbuild competitive advantage.2

Dr. Salvatore V. Falletta, GPHR, President & [email protected]

2. D. C. Esty and A. S. Winston, Green to Gold: How Smart Companies Use Environmental Strategy to Innovate, Create Value, and Build Competitive Advantage. (New Haven, CT: Yale University Press, 2007).


C h a p t e r

4 Raise the BarAlis Valencia

Corporate Social Responsibility (CSR) hasentered the mainstream. Once pursued bycompanies at the fringes of the corporate world,it now receives the attention of executivesworldwide and is viewed by the public as animportant dimension of business practice. Lookclosely, and you can find substantive contri-butions designed to meet an array of importantsocial and environmental problems. Majorchallenges remain, however, if business is torealize the full potential of CSR.

From a business perspective, CSR is rarelyintegrated with corporate strategy. From a socialand environmental perspective, CSR servesvarious needs, but none wholly.

In their December 2006 Harvard BusinessReview article, Michael Porter and Mark Kramerpoint out the rather haphazard nature of CSR todate and describe how companies can makeCSR an integral part of business: They can meetsocial and environmental needs with newproducts and services; model social responsibil-ity through their business operations; andcontribute money and expertise to society inways that also benefit the business.

24 Chapter 4: Raise the Bar

These approaches seem eminently sensible. To approach CSR from astrategic, income-producing orientation reduces the role that personalwhim or bias may play and keeps the focus on business. To modelsocial responsibility is another plus, a demonstration of walking thetalk; and to invest in the development of social and economicinfrastructure so that company needs are met has multiple benefits. Acloser look, however, reveals a fundamental conflict between theimperative to maximize profits and CSR, expressed as “to take fromsociety with one hand and give back (less) with the other.”

Wal-Mart, for example, even though late to climb on the CSRbandwagon, exemplifies the mixed signals that characterize corporateclaims of social and environmental responsibility: The company hascommitted to reducing energy use and packaging, to recycling plastic,and to selling organic foods and buying organic cotton, but by contrast,the company continues its strategy to minimize labor costs through lowwages, part-time jobs, suppliers' use of sweatshop labor, a flexiblestaffing program that leaves employees with unpredictable work hours,and a health plan used by fewer than 50% of qualified employees.

Similarly, there is no question that Nestlé, Unilever, Philips Electronics,and other corporations contribute significantly to developing social andeconomic infrastructure. In doing so, they fill a role traditionally held bygovernments. Here in the United States, that government role hasbeen limited by lack of sufficient public funds, a circumstance due inpart to corporate efforts to gain tax relief and subsidies, pursuestrategies to minimize taxable income, and negotiate reduced fines forillegal acts.

A genuine commitment to CSR requires a resolution of such contradic-tions. Corporate leaders can do this if they pursue integrity.

When a company strives to have all of its practices be consistent withone another and be designed to avoid harming society or theenvironment, it is pursuing integrity. When it takes responsibility forremoving the harms it has caused and meets or exceeds regulatorystandards, it is pursuing integrity. When it responds to a changingenvironment by aggressively seeking new business opportunitiesinstead of trying to hold on to what it has, it is pursing integrity. Whenit considers employees a valuable asset and treats them accordingly,it is pursuing integrity.


When a company pursues integrity, it increases its likelihood ofcontinued success.

Many companies use their accounting of CSR practices to patthemselves on the back for doing what they should be doing anyway inresponse to changing social and environmental circumstances. Whynot take a vow of integrity and lead the institution of business awayfrom profit maximization and toward a genuine practice of doing well bydoing good?

Alis Valencia, Editor and AuthorEditor: Consulting to Management (C2M)Editor: At Work: Creating a More Enlightened World of Business & Work [email protected]

26 Chapter 4: Raise the Bar


C h a p t e r

5 From Corporate Citizenship to Global Citizenship

Dinesh Chandra

Dinesh Chandra is founder of GlobalcitizenshipInc. He has been an advisor to leadingcorporations, blending Eastern and Westernvalues, on strategic business issues and hasworked in 16 different countries.

For many organizations, the focus of recentyears has been on Corporate Citizenship and inperforming well against a balanced scorecard.Triple score cards, as developed by the GlobalReporting Initiative, measure success oneconomic, social and environmental areas. Formost organizations the social domain has beenthe local community, city, or nation in which theyoperate. The same is generally true forenvironmental concerns. But the time has comefor corporations to stretch their thinking furtherand move beyond Corporate Citizenship to thebroader arena of Global Citizenship, therebyensuring not only the success of the corporation,but also the success of the global community inwhich they operate.

In her book Finding Our Way: Leadership for anUncertain Time, Meg Wheatley states: “In recentyears, we have been learning how the lives ofthose far away affect our own and how we affecttheirs. We are beginning to realize that to live

28 Chapter 5: From Corporate Citizenship to Global Citizenship

peacefully together on this planet, we need to be in new relationshipsespecially with those far distant from us. When my children were smallI had a refrigerator magnet that read 'if mama ain't happy, ain't nobodyhappy.' Perhaps that was my children's first lesson in systems thinking.We adults are learning this too. If others do not feel safe, we are notsafe. If others are struggling, we experience the consequence of theirstruggle. If others are poor, no matter how wealthy we are, weexperience the consequence of their impoverishment.”

Systems thinking, as described by Wheatley, is essential forunderstanding the requirements for being a Global Citizen. As othersand I have contemplated what it means to be a Global Citizen for thepast decade, I would offer the following simple definition. GlobalCitizens are those who understand connectedness, have open minds,celebrate diversity and care for the whole.

The notion of global citizenship expands our scope of concern from asingular focus on corporate success to a broader focus on the localcommunity and the larger environment, and finally to full awareness ofthe need for global well-being. This broader awareness allows us tosee global connectedness. Regardless of where we live or what oursocio-economic status is, when there is damage to the environment,whether in the form of acid rain or ozone holes, it will eventually impactall of us. In the West, we have created enormous boundaries, rangingfrom organizational charts, to ethnicity, to nations, thus obscuring ourinter connectedness. Although we appear to understand global issues,our actions are often more divisive than open. Hence, we hear anoutcry against outsourcing as jobs are moving away from our nation,


something that violates our sense of justice. However, we do not havethe same reaction when jobs are relocated from Silicon Valley to SanDiego or Texas, for economic or other reasons. Why?

The reason is that we have a sense of connection within our nation.Such a connection is lacking when we look beyond our nationalborders. Global mindset requires a shift to a broader connection whereeach one of us sees our planet as an organic entity, in which all partsare connected and interdependent. While there is intellectualacceptance of the idea of our connection to something larger, we findit difficult to implement, especially when we are losing jobs in ourcommunity. So why bother?

Primary Focus Mindset Examples

Global Citizenship

Global Well-being

Understand connectedness,Open mind,Care for the whole, Celebrate diversity

HP, Cystic, Interface

Environmental Initiatives

Environment Ecological balance, Initiatives involving employees, Organic organizations

Tom's of Maine, Body Shop

Social Initiatives Community Care for the community, Projects involving employees

Sara Lee

Corporate Citizenship

Economic/profit Mechanistic organization,Meet minimum legal requirements,Philanthropic donations generally without employees' involvement

Microsoft


The shift toward Global Citizenship will enable us to look at the worlddifferently, and, in the long run, will create a more just world thatbenefits all. Such a world will provide fewer reasons to give birth tomilitants in all fields and in all forms. There is a direct correlationbetween the disparity in incomes and the crime rate in communities.Global citizenship will enable us to bridge the gap between the havesand the have-nots and will result in a reduction of criminal mindsets,which threaten the security of those with financial means. However, itis a larger human issue than simply finance or security.

Our bodies, much like the Earth, are interconnected systems. With ahealth-oriented mindset, we do not punish or hurt any part of our bodyto satisfy another part. We strive to have balance. We mightperiodically slip and overindulge to satisfy our tongue, with disregardfor our stomach, liver, or heart. But, this choice is usually followed byregret. Similarly, when we think of Earth as one organic system, ourchoices and our reactions to issues may change. For example, withoutsourcing we might open our thinking and feel the pain of the vastmajority of people on this planet who are surviving on meager wages.We might see their desire to improve their lot as no different from ourdesire to do the same. With this new mindset, we may be open tocollaborate beyond limited self-interest toward a more fair globaltrading system. Can we imagine a world where this is possible?

Even though in a free world, products/services can be generatedanywhere; it is desirable to have it value-based. Given the superiorvalue of Swiss watches, Switzerland may be one of the leaders in thisfield just as Japan may be considered a leader in electronics. From aglobal perspective, we can strive for a level playing field and aconsistent set of ground rules for all players e.g. no child labor and noenvironmental pollution. This is not an easy task. However, there areseveral world forums that have taken on this challenge. Is it possiblefor us to agree on global environmental regulations that preventcorporations from finding the country with the weakest environmentalregulations so they can pollute there? If corporations continue to find'other places' where they can pollute, it is likely that the toxicity willcome back to haunt us in the form of a tsunami or acid rain. We arebeginning to understand the cost of not paying attention to the Earthand the problems inherent in our pathological compulsion to maximizeprofits at any cost. So what can we do?


Responsible corporations are taking the lead on three key initiatives.Even though they can be taken simultaneously, some organizationshave followed a three-step process. The first step is to enter the SocialInitiatives phase and create more awareness, encouraging employeesto give of their time to the local community. Volunteers working withHabitat for Humanity and similar organizations are a good example ofthis level of local social awareness. We need many more corporationsto get involved in the social good of the community that they areserving e.g. efforts to ensure that suppliers in other countries arepaying their employees a living wage represents a level of global socialawareness.

The second step might be toward environmental awareness anddriving Environmental Initiatives. It is a natural step toward a globalmindset. Ray Anderson of Interface, Inc. has developed a precise setof metrics to describe what his company gives and takes from theenvironment. They have used these metrics to make a seriouscommitment to create a balance. For them, “Sustainability is a processwhich enables all people to realize their potential and to improve theirquality of life in ways that simultaneously protect and enhance theEarth's life support system.” Working on environmental issues enablesus to realize our connectedness on a global level and prepares for thethird step: the move toward a Global Citizen mindset.

Our ability to operate as a Global Citizen takes time. It begins withsmall steps. But, even small steps require a fundamental change in ourthinking and intentions. What if we truly felt that our intention was tocare for the whole rather than just family or community or nation? Thatone declaration of intention could have a profound impact on ourplanet. Our words and actions might change over time, and soon ouractions might align with our intentions. The work of a leader is to alignintention and words with action. We would stop using words like“offshore” and begin using “other nations.” Symbolism and languageare powerful means to communicate openness and acceptance of theideas of others and global oneness. Language can play an importantrole in gaining understanding of each community's part in caring for thewhole.

With this awareness we start taking steps to bring prosperity to theinhabitants of our planet in a systematic manner. We begin byunderstanding how we are contributing to global problems. For


example, by operating armament factories and selling F16s, wecontribute to sustained conflict in countries like India and Pakistan.Perhaps we might channel these resources in a different direction suchas providing food, education and water for millions who sleep onpavements night after night on empty stomachs and without access todrinking water. Instead of rationalizing that if we don't supplyarmaments someone else will, perhaps we can look within ourselvesfor more of the creative genius that established the Peace Corps.Perhaps we can shift our thinking and see abundance and not azero-sum world. Can we turn the pyramid at the United Nations upsidedown, showing the money spent on destruction versus construction?We know that nations with a narrow, self-serving role have failedmiserably at this challenge. But, perhaps global organizations can playa crucial role in creating this new mindset. After all, some globalorganizations are far more economically-powerful than many nations.

In his book The Corporation: The Pathological Pursuit of Profit andPower, Joel Bakan points out that legally a corporation is treated in afashion similar to an individual. However, corporations exist without thesoul or conscience of an individual. As a legal entity, a corporation hasas its edict a singular goal - to create profits for its shareholders,without legal or moral obligation to the welfare of workers or theenvironment, or the well-being of society as a whole. Bakan clearlydetails the way corporations cut corners or use creative accounting andother such means to maximize profits. Competition and self-interestdominate while other aspects of human nature, such as creativity,empathy, and the ability to live in harmony with the earth, aresuppressed or even ridiculed. Bakan believes that this ideologicalorder cannot last and that the mechanistic corporate rule must bechallenged to bring balance and revive the values of democracy, socialjustice, equality, and compassion. Can we find an alternate model?

I believe that the alternative is to create the organic organization,rooted in deep purpose, meaning and collective conscience or spirit.What is the acid test indicating that an organization is an organicorganization? Answers to the following questions may show us: Whohas the ownership of structure, plans and measures? A select few, oris it shared by all concerned? What is the quality of the energyunleashed by the employees' creativity and sense of belonging? Do


people believe that they are making a difference in the world, or do theysee themselves as part of a 24x7, workaholic, competitive machine,maximizing ROI for shareholders?

How do we transform a mechanistic organization into an organic livingsystem? We do so by empowering individuals, helping them to connectwith their creative selves and to express their inner purpose in theirworkplaces. As we do this, we sow the seeds of organic growth andsoulful living. The synergy begins when these individuals connect withothers who share their passion, and create organizations with deeperroots and a global perspective. There are numerous examples of suchorganizations including the following: The Body Shop, Tom's of Maine,W. L. Gore & Associates and Semco (based in Brazil).

In summary, understanding the crucial role of a global organizationenables us to move toward caring for the whole. Working for social andenvironmental issues moves us further, and as we adopt a mindset ofGlobal Citizenship, we are more open to learning about other peopleand their cultures, feeling neither superior nor inferior to them. Weachieve a sense of connectedness with all. Imagine a world wherediversity is welcome, where open, frank dialogue is possible on allissues and where we are connected by values of empathy, compassionand caring for the whole instead of narrow and divisive national orcorporate interests. We can envision a world with immense possibilitiesand opportunities for all. Welcome to the World of Global Citizenship.

Dinesh Chandrawww.GlobalCitizenship.comwww.GlobalOpenSpace.org

This article was first published inwww.kosmosjournal.org


Part IIImplementing Social Responsibility

• Heed the Challenges—Kirk Hanson

• Consider Ethical Issues—Marvin Brown

• Assess the Opportunities—Azure Kraxberger

• Exercise Influence—Kim Barnes

• Integrate CSR into Business As Usual—Pravir Malik


C h a p t e r

6 Heed the ChallengesKirk O. Hanson

Multinational corporations must contend not onlywith the scale and complexity of their operationsbut also with public scrutiny that can expose poorlabor conditions or poor behavior of any kind,anywhere in the world. To gain perspective onthe challenges multinational corporations face inimplementing CSR, we posed questions for KirkO. Hanson, executive director of the MarkkulaCenter for Applied Ethics at Santa ClaraUniversity and University Professor ofOrganizations and Society. He also is anemeritus faculty member of Stanford University'sSchool of Business and has served on theboards of such foundations as The BusinessEnterprise Trust and the Social Venture Network.

What challenges do multinational corporations face when implementing CSR?

“Companies first need to assess why they wantto implement CSR,” said Hanson. What is theirrationale for implementing CSR? Are theyimplementing CSR based on the belief that it willhelp their long-term profitability or is it to fend offcriticism and help the reputation of theircorporations? Companies that implement CSR

38 Chapter 6: Heed the Challenges

simply to boost their reputations generally do not expend the amountof time and resources needed to make CSR a truly meaningful part oftheir organizations.

Hanson views measurement as the biggest challenge of CSR. How doyou measure the benefit to a company from its CSR program? Costsavoided from the implementation of CSR are hard to measure. Forexample, BP cut its maintenance and safety investment in the late1990s and early 2000s. There was an explosion at one of its Texasrefineries that resulted in employee deaths. This incident hurt both thecompany's finances and brand. A similar situation occurred when BP'snegligence in maintaining its Alaskan pipeline resulted in costly repairsand significant damage to its reputation. “It is now possible to calculatethat poor maintenance cost lives and tens of millions of dollars,” saidHanson, “but if BP had invested $20 million more in maintenance howwould we know the cost avoided?”

“Companies should be asking other questions as well,” said Hanson.For example, how do you measure the damage in value to a firm fromsweat shop allegations? How do you measure greater firm productivityresulting from treating your employees better? What are the preventivemeasures that companies can take to make sure that they are notinvolved directly or indirectly in unethical businesses in often distantplaces?

Hanson advocates that companies implement CSR in order to createstrong and sustainable management practices and not in response topublic pressure. He believes that CSR is profitable in the long term if itis fully integrated. However, “successful CSR integration will happenonly if the CEO of the corporation believes in it.” The CSR programneeds to become a part of the corporate culture, and the developmentof a CSR action plan should be the responsibility of an executive whocan coordinate its implementation across the entire company. A fewleading companies are appointing a “Chief Responsibility Officer” whoserves as a member of the top leadership team and can influence allcorporate decisions. This kind of powerful position helps make CSRimplementation uniform across all divisions.

In order for CSR programs to be truly integrated, noted Hanson,companies should make them a part of their annual performanceevaluation. Such a requirement helps companies measure the impact


of their corporate social reasonability endeavors. Companies can set adollar amount to be saved; for example, “Next year, we will save$1,000,000 by asking all employees to shut their computers off beforeleaving the office.” Or they can ask department heads to bring theiroperations up to a certifiable standard; for example, the environmentalcertification standard (ISO 14000).

What are the global challenges of CSR for multinational corporations?

Rightly, there is a lot of pressure for multinational corporations simplyto comply with the local rules and regulations of other cultures. Simul-taneously, large multinational companies face even more pressurefrom NGOs to conduct their global business operations responsiblyand ethically.

“There are societies in which U.S. corporations are expected to complywith strict government policies that challenge widely held standards ofhuman rights,” said Hanson. How do you deal with difficult cases suchas government pressure in China to censor the Web? Recently, Googleand Yahoo have been criticized by human rights organizations forallowing the Chinese government to filter certain information. As aresult, “Businesses must be engaged in government policydevelopment. For example, they can engage international regimes andorganizations that promote workers' rights. But how do U.S.corporations properly deal with human rights issues which go beyondsimple employee working conditions and include broader societaldevelopment?”

CSR is different in every country and company. Hanson noted thatCSR is highly developed in European countries and that the demandson companies for responsible behavior are extensive. For example,European firms are more often expected to listen to their stakeholders'needs and fulfill them, whereas U.S. businesses prefer to “Listen totheir stakeholders and then consider their needs as one input tocorporate decision making.”

40 Chapter 6: Heed the Challenges

Can you give an example of a company that has fully integrated CSR?

Hanson said that it is very difficult to say that any company is doing allit should, but “companies have recognized that they have no choiceregarding whether to integrate stakeholder concerns into themanagement decision-making process. The consequences of ignoringthese concerns are just too great.”

Kirk O. HansonMarkkula Center for Applied Ethicswww.scu.edu/ethics


C h a p t e r

7 Consider Ethical Issues

Marvin Brown

Marvin Brown has spent much of his careerhelping to develop and design ethics, diversityand compliance training programs, workingclosely with Human Resources. He also teachesbusiness ethics at the University of SanFrancisco and is the author of CorporateIntegrity: Rethinking Organizational Ethics andLeadership.

Why have an ethics program?

Most ethics programs in corporations havefocused on compliance, said Brown. Hebelieves, however, that they should focus onemployee training in decision making. Eventhough most major corporations have ethicsofficers, few focus on the deeper issues becausetheir legal and auditing departments are often incharge. When HR takes the lead, the program ismuch stronger. But, Brown said, “The potential topromote decision making, training and theempowerment of employees has not blossomedthe way we wish it would. We still have a longway to go.”

42 Chapter 7: Consider Ethical Issues

CSR implies that ethical concerns guide practices. What areas pose special challenges for companies?

“Corporate responsibility should balance responsibility to customers,workers, managers, suppliers, community, workers, and theenvironment,” Brown responded. “What a lot of corporations do isemphasize one stakeholder at the expense of others. In the currenteconomy, the stakeholder view is that of low price to the consumer orhigh profit for the investor. Often the work force does not get theattention it needs. Decreasing costs increases profit, so companies letgo of people, their workforce. HR is supposed to serve the workforceand they don't get what they need to train and support the people tolive more fulfilling lives.” In essence, said Brown, “Resource allocationneeds to be restructured.”

“An important ethical question is the distribution of the income thatcomes into the corporation. If you distribute good salaries, benefits,and training, you'll have a more meaningful work place. If you cut priceslike Wal-Mart, the distribution becomes unbalanced with too muchfocus on the customer and not enough on the work force.”

“StoneyField Farm Yogurt is a good example of a balanced company.It makes an organic yogurt so their product is of high quality. Theysupport dairy farmers and treat their employees well. Such companiesare models of corporate responsibility, much more than Chevron, forinstance, which uses one hand to give money to various philanthropiccauses and the other hand to spend millions defeating legislation thatwould protect the environment.”

What are your thoughts concerning sustainability?

“In the natural world, everything is reused. Nature is 100% efficient.Our current economy is 4% efficient. How can we transform aneconomy based on consumption and growth to be sustainable? Giventhe current rate of consumption, if China and India develop to live aswe do, we'll need four earths and we only have one.”

Brown recommends that we look to The Natural Step as one way todevelop more sustainable practices. The Natural Step is a program forsustainability developed by Karl-Henrik Robert, one of Sweden's


leading cancer researchers. Several U.S. companies have becomecommitted to the program. “This is the kind of movement that can makea huge difference,” said Brown.

3

3. From the Context Institute www.ortns.org/framework.htm

The Natural Step

Imagine the following3: The scientists of an entire nation come toconsensus on the roots of our environmental problems and the mostcritical avenues for action. The nation's head of state then gives hisor her endorsement to the consensus report. An educational packetbased on that report is prepared and sent to every household andschool so that citizens and students can learn the basics of sustain-ability. Then a roster of famous artists and celebrities goes ontelevision to promote and celebrate the birth of this remarkablenational project - a project that, in the long run, promises tocompletely reorganize the nation's way of life to bring it into alignmentwith the laws of nature. This scenario may read like a fairy tale, but itactually describes the course of events when The Natural Stepprogram was adopted in Sweden.

The Natural Step (TNS) framework is grounded in natural science andserves as a guide for businesses, communities, educators,government entities, and individuals who select the path towardsustainable development. To become sustainable, society must meetfour conditions:

1. Nature is no longer subject to systematically increasingconcentrations of substances extracted from the earth's crust.

2. Nature is no longer subject to systematically increasingconcentrations of substances produced by society.

3. Nature is no longer systematically impoverished by physicaldisplacement, over-harvesting, or other forms of ecosystemmanipulation.

4. People are no longer subject to conditions that systematicallyundermine their capacity to meet their needs.

44 Chapter 7: Consider Ethical Issues

What about education?

“Twenty years ago the public schools in California were in bettershape. We went from being at the top of the list to close to the bottom,largely because of less money for public schools. One reason there isless money is that corporations are paying less taxes. This is not justa problem for California, but for the nation. In 2000, for example,Microsoft did not pay any income taxes because of tax shelters. Mostcorporations today pay no more than half of the 35% tax rate. So it isimpossible to maintain the quality of our public institutions. And then,people like Bill Gates give money to the schools that they want tosupport, but behind such actions there is a disempowerment and aweakening of public education due to the withdrawal of tax dollars.”

Brown continued, “From this perspective, CSR can be looked at as aprivatization of taxes. Instead of the government deciding what acorporation's contribution should be, the company's foundationdecides what to give schools and which schools to give it to. Thisdisempowers the civic dimension of schools. Instead of elected repre-sentatives running our schools, wealthy people are deciding the futureof public education. This school gets a grant; this school does not. Thegrant even defines how the money will be used.”

If multinational corporations fail to have all their practices consistent with CSR, what is left?

“In the San Francisco area, about 70% of jobs are people who work forfamily businesses. Maybe only 16% of jobs in SF are in multinationalcorporations. Sustainability can be a local initiative and have a hugeimpact given these numbers.”

“The company I like best is Chez Panisse. Alice Waters started ChezPanisse. Her father was an organizational development consultant,and he helped her start the restaurant. She has an organic garden runby kids in the court systems and is now working to educate schoolchildren in Berkeley about healthy food. She could have a ChezPanisse in every city, but she doesn't. Growth does not have to meanexpansion. Sustainability requires a look at local successes.”

Dr. Marvin Brown, 2736 Derby Street, Berkeley, CA 94705www.WorkingEthics.com


C h a p t e r

8 Assess the Opportunities

Azure Kraxberger

Conducting assessments is an important part ofintegrating CSR into your business. It involvestaking a thorough look at how the business isdoing today, identifying areas that could bechanged or improved, prioritizing those areas,and then incorporating the highest priority areas.Whether you are new to implementing CSRpractices or have been doing so for years,assessment provides a baseline and ongoingframework.

The Assessment Tool4

The following assessment tool has beenorganized into six stakeholder categories:Employees, Environment, Customers,Community, Suppliers, and Shareholders. Usethe following numbers to answer each question:

2: Always

1: Sometimes

0: Never

Add up your scores at the end of each section.

4. Format and questions from the Canadian Business for Social Responsibility (2004)

46 Chapter 8: Assess the Opportunities

Employees

Assess your current employee practices, which could includeprioritizing employee health and safety or being an equal opportunityemployer to having creative benefits programs that allow employees tofund personal development work. Employee practices can also includeproviding complimentary day care for working parents or facilitating jobtraining for employees who have to be laid off.

How is your business involved with employees?

Always Sometimes Never

Ensures prompt payment to all employees and contractors.

Places a high priority on employee health and safety and ensures that procedures reflect this.

Ensures all employees have access to and understand the company employee policies; rights and legislation, including payment, bonus, benefits, professional development, and termination policies; and clearly define all employee policies at the time of hire.

Offers each employee and contract worker a performance and contract review at least annually.

Provides equal access to employment and promotion to all employees regardless of gender, ethnicity, religion, sexual orientation, age, or language.

Provides benefits to both full - and part-time employees


Provides opportunities to share in the growth and profitability of the firm through initiatives such as bonus packages and share ownership plans (if applicable).

Practices an “open book” management philosophy, making company financial statements available to all employees and reporting the financial position in plain language to employees annually.

Fosters a culture that encourages employee and management communication and feedback, creating opportunities and providing mechanisms for it. The company rewards employee suggestions that provide both small and significant advantages to the business.

Supports employees to balance work, family, and personal development commitments. These programs may include flexible working hours, job sharing, parental and family leave policies, and telecommuting options.

Supports professional and personal development through initiatives such as training programs, financial assistance, or flexible work hours for programs outside the organization.

Encourages employees to develop real skills and long-term careers (e.g., via a performance appraisal process or a training plan).




Environment

The environment consists of the elements that make up our naturalsurroundings such as water, air, earth, non-human life, and thecomplex relationships and ecological systems that connect them all.Environmental practices include minimizing waste and maximizingmaterials, process and energy efficiencies, as well as looking at theenvironmental impact of the materials used in products and processes.

There is a process to ensure that adequate steps are taken against all forms of discrimination both in the workplace and during recruitment (e.g., against women, ethnic groups, disabled people, etc.).

Employees are consulted on important issues.

There are suitable arrangements for health, safety, and welfare that provide sufficient protection for your employees.

The company has clearly defined values and rules of conduct.

Employees are made aware of the company's values and rules of conduct.

Employees are trained on the importance of the company's values and rules of conduct.

Total




How does your business utilize environmental resources?


Complies with all environmental laws and regulations in the jurisdictions in which we operate.

Attempts to reduce water usage, for example through ongoing maintenance to reduce leakages, spills, etc.

Applies measures to reduce energy use and monitors progress.

Encourages all staff to reduce waste by providing recycling facilities for office materials including paper, bottles, and cans.

Encourages staff to select environ-mentally-friendly products when purchasing for the organization (i.e. green purchasing policy or checklist).

Provides a facility to compost food waste from staff and operations.

Encourages staff to use alternative transportation (carpool, transit, bike) to and from work, and for work travel through programs (i.e. providing bus tickets, bike storage, showers).


Encourages broad employee participation in environmental initiatives through training. This includes ensuring that employees understand the company's commitment to the environment and are adequately trained to assist in implementing the company's environmental procedures and programs.

Designates one person in the organization to be responsible for seeing that environmental programs and goals get implemented.

Identifies opportunities in the production or service delivery process to use inputs that have less impact on the environment.

Identifies opportunities in the production or service delivery process to reduce or reuse waste.

Reduces your enterprise's environmental impact in terms of:

Energy conservation

Waste minimization and recycling

Pollution prevention (e.g., emissions to air and

Water, effluent discharges, or noise)

Protection of the natural environment

Sustainable transport options




Customer

Customer practices range from ensuring customer satisfaction tofacilitating customer giving through innovative business or communitypartnership programs. It can be about developing long termrelationships with customers rather than one-offs and communicatingto customers about the responsible use and disposal of your product.

The company considers the potential environmental impacts when developing new products and services (e.g., assessing energy usage, recyclability or pollution generation).

The business supplies clear and accurate environmental information on its products, services, and activities to customers, suppliers, local community, etc.




How does your business interact with customers?


Markets products and services in a truthful way, avoiding false claims; advertises products with a sensitivity to the impact on different groups (for example, children, women, or minorities), and does not generate or perpetuate stereotypes or negative advertising images.

Commits to customer satisfaction (for example, through return policies, exchange policies, product guarantees, or a customer service telephone number). Displays commitments prominently and makes them easily available to clients.

Monitors the quality, safety, and environmental impacts of products and services, informing customers of the social and environmental impacts of products, and taking responsibility to ensure that customers use products in a responsible way.

Ensures that all customers are aware of any risks relating to safety, quality, improper use of products, and product disposal.


Community

A business's community encompasses all the people it touches directlyand indirectly. Community practices range from philanthropy programsto employee volunteerism and strategic community partnerships.

Promptly advises customers and authorities of any significant health concerns or safety issues associated with products or services (for example, by promptly issuing recalls in the case of faulty products).

Has a mechanism for gathering and promptly responding to customer complaints and responding to issues that have been raised.

Total

How does your business interact with customers?


How is your business socially responsible to the community?


Provides support to a range of good causes in response to the needs and appeals of charitable and community organizations.

Donates to charitable organizations, which may include contributing volunteer time and donations in kind.

Gives priority to local employment and local suppliers when feasible.


Has a board and management team that understand and integrate community interests into their decision making processes.

Encourages and supports employee voluntarism in the community.

Offers training opportunities to people from the local community (e.g., apprenticeships or work experience for the young or for disadvantaged groups).

Has an open dialogue with the local community on adverse, controversial, or sensitive issues that involve your enterprise (e.g., accumulation of waste outside your premises, vehicles obstructing roads or footpaths).

Tries to purchase locally.

Encourages employees to participate in local community activities (e.g., providing employee time and expertise or other practical help).

Gives regular financial support to local community activities and projects (e.g. charitable donations or sponsorship).

Customers are aware of your enterprise's values and rules of conduct.

Total

How is your business socially responsible to the community?



Suppliers

Supplier practices include incorporating social and environmentalvalues into purchasing decisions to working with suppliers on their ownsocial and environmental practices. Does it screen the conditionsunder which its supplies were made? Those businesses that are moreadvanced in this area start to look not only at the suppliers that sellproducts and services directly to them, but also those businessesfurther down the supply chain.

How does your business interact with your suppliers?


Incorporates social and environmental values into our purchasing decisions, communicating the company's ethics and standards that apply to the supplier relationship and advising suppliers that the company will give priority to those suppliers whose practices are compatible with these ethics and standards.

Makes fair and prompt payment to all contractors and suppliers invoices.

Ensures that all qualified businesses have an opportunity to supply and service contracts, with preference given to local firms. (Equal opportunity can be achieved through mechanisms such as a fair bidding policy and social purchasing policy).


Does not enter into business relationships with companies that use any form of compulsory labor (child labor or involuntary prison labor) or allow substandard working conditions.

Develops an environmental and social procurement policy and ensures that all employees understand and follow this policy.

Has a policy to ensure honesty and quality in all its contracts, dealings, and advertising (e.g., a fair purchasing policy, provisions for consumer protection, etc.).

Supplies clear and accurate information and labeling about products and services, including its after-sales obligations.

Has a process to ensure effective feedback, consultation, and dialogue with customers, suppliers, and the other people you do business with.

Registers and resolves complaints from customers, suppliers, and business partners.

Works together with other companies or other organizations to address issues raised by responsible entrepre-neurship.

Total

How does your business interact with your suppliers?



Shareholders

Shareholders include any individual or business that owns equity in thebusiness as well as lenders to whom the company has fiscal account-ability. Shareholder practices range from implementing sound fiscalpolicies to involving shareholders in defining the financial andnon-financial direction of the company.

How is your business responsible to your shareholders?


Implements fiscal policies, financial management systems, and accounting controls that help to ensure fiscal responsibility and long-term viability and practices good governance.

Reports to our shareholders on our financial status and non financial initiatives in a clear, timely, and accurate way.

Identifies non financial environmental and social objectives and affirms a mission that includes these objectives.

Supports financial and non financial objectives with staff training and communication.

Incorporates social and environmental targets into senior management's performance measurements and compensation plans.

Total


How to Use the Assessment Results

Use the results of your assessment to pick your focus areas byconducting such activities as the following:

1. Review your strengths and weaknesses. There will be somestakeholder groups for which you have many current CSRpractices and there will be some areas in which you have verylittle activity. Look through each stakeholder group in theAssessment Tool to identify your strong and weak areas.

2. Conduct a group brainstorm. Bring together staff andemployees to generate ideas based on your strengths andweaknesses. Address such questions as:a. How can you build on your strengths? b. What are some of the ways to make them even stronger? c. How can you overcome your weaknesses? d. What are some initiatives you could undertake to address

them? 3. Clearly identify your outcomes. Specify in detail what CSR will

look like from a tangible and practical perspective. Ask thefollowing questions:a. What are you trying to achieve with CSR in your business? b. How does it fit into your overall business objectives?c. What is the end result you would like to achieve in the next

year?


4. Pick a strategy that will best achieve your outcome. Based onthe outcome that you want to achieve and knowing your CSRstrengths and weaknesses, you may want to focus on one ormore of the following strategies:a. Focus on filling gaps. In what areas of CSR is your

company weak? Look at the lowest scores from theassessment and focus on those stakeholder groups. Theseare the areas where you will be able to see the mostimprovement.

b. Focus on strengths. In what areas of CSR is your companyexcelling? Look at the highest scores from the assessmentand focus on ways to build them even further. These are theareas where you are strongest and can build deeper CSRcommitments.

c. Focus on one or two stakeholder groups. Whichstakeholder group has the most impact on your business?You know your business best. For retail businesses withface-to-face relationships with customers, the customerstakeholder group is important. For manufacturers, suppliersare key. For most businesses, employees are usually one ofthe most important stakeholder groups.

d. Focus on low-hanging fruit. Your low-hanging fruit are CSRpractices you can pursue with the most bang for your buck;that is, initiatives that have significant impact but don't requiretoo many resources to implement. For those companies justbeginning on the CSR path, you should start with the lowhanging fruit. CSR is a continuous journey and one thatrequires a sustained effort. If you do not start out withsuccesses, it is very difficult to build and maintain momentumfor the long run.

Assessing the many elements of your organization's current and futureobjectives in CSR will help to speed decision making, adoption andimplementation.

Azure Kraxberger, [email protected]



C h a p t e r

9 Exercise InfluenceB. Kim Barnes

B. Kim Barnes specializes in helping individualsto gain the skills and the processes needed tomove ideas to action in a competitive andinterdependent environment. We talked with herabout the use of influence in an organization.

In most companies, CSR teams rarely havedirect authority over the people who will actuallyundertake new initiatives. As a result, teammembers need to be skillful and flexible in theway they influence others to support, champion,and participate in their projects and initiatives.

People feel influenced rather than coerced totake an action when they are treated with respectand offered a choice. Barnes has defined twosets of skills that help CSR team members to getthings to happen through others: Expressiveskills get your ideas out to others and help togenerate energy. Receptive skills invite ideasfrom others and stimulate them to take action.

To model expressive skills, you might suggestideas, express a need, provide a rationale,demonstrate benefits, offer an incentive, ordescribe a vision. Alternatively, you might usereceptive skills first and ask questions to

62 Chapter 9: Exercise Influence

stimulate thinking, listen actively to key ideas that move the processalong, identify with the other or disclose information, and then invite theother to make a commitment to action.

Some opportunities for exercising influence are spontaneous; otherscan be planned long in advance. In either case, keep an observablegoal in mind and consider what is needed to create the conditions forsuccess. What, for example, do you need to know about the person orgroup, the organization, the culture?

Once you engage others, you will see if the individual or group leanstoward support for or toward resistance to your effort. Getting clear onwhen to step back and disengage is also critical. When there isresistance, you may want to disengage, use the new information youhave gained to rethink your approach, and then re-initiate theconversation. The key to exercising influence is to use what you wantto achieve, as well as key information about the person you seek toinfluence, to guide the conversation.

To increase your success in influencing others, Barnes offers 12Principles for Exercising Influence:

1. Have a clear goal, and make sure that achieving that goal willmeet your needs.

2. Keep your goal in mind and do not accept invitations to divergeunless you see an alternate path to achieving your goal.

3. Remember that influence happens in the mind of the other per-son. Focus most of your attention on the other person, not onwhat you are going to say next.

4. Maintain an overall balance between expressive and receptivebehaviors. If you experience resistance or avoidance, switch tothe “other side.”

5. Do not assume that the first issue or problem is all there is. Besure to explore using receptive skills before you respond with ex-pressive behaviors.

6. Allow time for your efforts to have an impact by giving the otherperson time to think and respond. Avoid using “but” or “however”to link two messages.


7. If you put the other person on the defensive, be aware that it willbe costly in time, effort, and achievement.

8. Treat resistance as an opportunity to learn rather than as an ob-stacle. Think of it as a source of information and use the informa-tion you gain to be successful in influencing the other person.

9. If what you are doing is not working, stop doing it even if you thinkit is “the right way.” Disengage before you get an absolute “no,”and then rethink your approach.

10. If you want to influence a person, never do anything that requireshim or her to admit being bad, wrong, or stupid.

11. Use your skills to promote your ideas rather than demolishingthose of others. Remember that sarcasm does not work as a di-rect influence behavior.

12. Be persistent and flexible. Err on the side of lightness.

Barnes & Conti Associates, Inc.940 Dwight Way, Ste. I5Berkeley, CA [email protected]

64 Chapter 9: Exercise Influence


C h a p t e r

10 Integrate CSR into Business-As-Usual

Pravir Malik

Companies are recognizing that compli-ance-based activities and codes of conduct andguiding principles represent just the first step inpursuing CSR. Ultimately, CSR agendas willneed to span environmental, social, and humanrights issues, which means that CSR must beintegrated into business-as-usual. To helpcompanies meet this challenge, Business forSocial Responsibility has identified 11 key issuesto address when formulating CSR strategy andplans.

1. Clarity of IntentIs the intent of the initiative well understood?

The importance and goals of the initiative mustbe clear if there is to be buy-in and a mobilizationof time, money, and resources. The bigger theinitiative, the more important it will be that thisclarity of intent originates at the top of theorganization.

2. Business AlignmentDoes the CSR initiative align with what thebusiness must do in the next two years?

Organizational commitment for any initiative isthe key driver of its success. Commitmentusually depends on how important the initiative is

66 Chapter 10: Integrate CSR into Business-As-Usual

for meeting the critical business goals of the immediate future. A simplerule of thumb establishes whether a goal is critical: Does maintainingthe current business reality have a prohibitively higher cost thanpursuing the goal? If the answer is yes, then the goal must be critical.Being in alignment with the goal will increase the probability ofcommitment and hence success in integrating the initiative.

3. CSR Structure and ReachIs the CSR team well positioned to ensure successful execution of theinitiative?

The CSR department may create a progressive CSR policy or evenembed social and environmental responsibility into such processes asmanufacturing, distribution, or procurement. If, however, thedepartment cannot ensure that the new requirements are met, there isa poor likelihood that they will be. The relationship between CSR andprocurement is a good example: Usually these departments report todifferent executives so that when push comes to shove andprocurement goals have to be met, CSR policies and procedures caneasily take a back seat.

4. Executive OwnershipHow strong is executive-level ownership and support?

Executive ownership is generally a requirement for the success of anyinitiative. This is especially true of initiatives like CSR, which tend notto be viewed as business-centered. Executive ownership implies acomplete understanding of why an initiative has to succeed and whatpeople in the organization are being asked to change as a result. Theremust be an understanding of the personal, political, and organizationalcosts incurred by an initiative and also a willingness to pay the costsrequired for the initiative to succeed, even by diverting resources andassets that may be required elsewhere. This willingness must beconstantly reinforced with peers and subordinates in public and privatesettings and through rewards to those parts of an organization thatshow commitment to making the initiative succeed.

5. Employee OwnershipHas ownership of the initiative been sufficiently cascaded down theorganization?


Ownership of the initiative must be assumed at each level of theorganization, all of the way down to the front lines. This is no trivial taskand requires well-thought-out planning, leveraging of sufficientresources and assets, and a gestation period designed to bring aboutthe required shifts in ownership.

6. Employee ResourcesDo individuals and departments have the capacity to design,implement, and execute the initiative?

Every new initiative requires the use of intellectual, emotional andphysical resources at the individual and departmental levels.Dysfunction may result when demand exceeds the available supply ofresources and be signaled by whining, frustration, unwillingness totake risks, conflict, poor communication and decision making, andineffective teamwork. Such conditions will easily compromise thesuccess of the initiative. Individual and departmental capacity can bemanaged by having an approach to prioritization that ensures that onlythe most critical initiatives are undertaken.

7. Supportive Organizational CultureDo the organization's key behaviors, beliefs, values, and assumptionssupport CSR and the initiative in question?

Organizational culture is represented by the behaviors, beliefs, values,and assumptions that have made a company successful in the past. Anassessment is needed to determine whether those same features willhamper the success of a new initiative. If not, then the price needed tocreate a new culture must be paid. Otherwise, integration will fail.

8. Resistance to ChangeWill the initiative upset people's expectations?

Resistance can be a formidable force that easily undermines thesuccess of any initiative, even at the planning stage. It usually resultswhen people's expectations are upset by the thought of or knowledgeof an impending initiative. It is important to plan for managing theresistance in order to ensure successful integration. This is alwaysexpensive, but it is even more costly to try to heal from unmanagedresistance.

68 Chapter 10: Integrate CSR into Business-As-Usual

9. SynergyDoes synergy among key leaders exist?

There are many ways to counter or even obfuscate the success of aninitiative in order to bring about its demise. In the face of thiscommonplace reality, synergy is a source of directed energy that worksto bring about the success of an initiative. It is often the result of therealizations that leaders or departments have common goals that canonly be achieved by true interdependence and that organizationalefforts must be structured to allow pockets of genuine leadership toguide and track an initiative's development and execution.

10. Management CapabilitiesDoes the organization have people with the expertise and skills neededto manage a company-wide initiative?

Large initiatives require a maturity in governance. This means havingthe ability to plan in detail what is to be done, to track correspondingmetrics, and to create the right instruments to bring in a continuous,efficient stream of information. Mature management is also able tomobilize assets and resources as required.

11. True IntentWill the intent, as well as the structure and processes of the initiative,be achieved?

One of the biggest shortfalls in achieving integration is the belief thatan initiative has been successfully completed when the processes,structures, and associated systems have been put into place.Integration is not likely to occur, however, unless the true intent, orspirit, of the initiative has been achieved as well. It is like having all thewires and switches in place but no current to bring the structure to life.Plans for a CSR initiative will address the key issues: clarity of intent,business alignment, CSR structure and reach, executive andemployee ownership, employee resources, organizational culture,resistance to change, synergy, and management capabilities.

Pravir MalikManaging Director, Advisory ServicesBusiness for Social Responsibility © 2007 Business for Social Responsibilitywww.bsr.org

Part IIICorporate CSR Initiatives

• Authentic CSR—Christine Arena

• Getting Started—Sun Microsystems: Marcy Scott Lyn and Rich Lang

• Ethical Sourcing—Gap Inc.: Dan Henkle

• Sustainable Business—Cisco Systems, Inc.: Adrian Godfrey

• Investing in the Future—Intel Corporation: Dave Stangis

• Pro Bono Services—Cooley Godward Kronish LLP: Maureen Alger and Ashley Kanigher

• Responsible Business Processes—Symantec Corporation: Cecily Joseph

• Empowered to Do the Right Thing—Adobe Systems Inc.: Michelle Mann


C h a p t e r

11 Authentic CSRChristine Arena

Christine Arena has a highly pragmatic approachto corporate social responsibility (CSR). She firstbecame interested in the topic during the dotcomera of the 1990s, a time when CSR was largelymarginalized. After attending numerousconferences on corporate social responsibilityand noticing the lack of real-world caseexamples, she seized an opportunity to helpprove the business case and move the practiceto the mainstream.

Ironically, Arena began her career developingmarketing strategies for some of the world's leastethical companies, including manufacturers ofcigarettes and alcohol. Shortly after she sawMichael Moore's film The Big One where Mooreaccosted Phil Knight of Nike regarding thecompany's use of sweat shops in Malaysia, shebecame convinced that watchdogs and the presswould only become more relentless in theirpursuit of “bad” companies, while corporationsengaged in unethical practices of any kind wouldneed to proactively respond. Furthermore, shedecided that she had had enough of marketingfor companies that sold $100 sneakers to poor,inner-city children; toilet paper manufacturers

72 Chapter 11: Authentic CSR

that ravaged virgin forests; and fast food companies that marketed toobese children. It was time for a change.

Realizing that she would need more than a wish and a moral argumentto convince corporate chiefs to invest deeply in the practice, Arenabegan her search for the most compelling business case studies. Forher first book, Cause for Success, Christine personally interviewedCEOs and leaders who linked CSR to corporate performance,including BP's Lord John Browne, The Body Shop's Anita Roddick,Avon's Andrea Jung, and Interface's Ray Anderson. Her goal was todetermine how “win-win” strategies were structured and executed, andthe book provides ample information in its profiles of ten “High-PurposeCompanies” (those integrating CSR into their core business strategies)and in-depth commentary from the executives responsible for the CSRinitiatives. Cause for Success demonstrates how CSR can improvecorporate health, growth and competitive edge.

For her second book, The High Purpose Company, Arena worked witha class of 10 MBA students and professors from McGill University'sDesautels Faculty of Management to analyze 75 well-knowncorporations from major industries. They developed objectivestandards to distinguish the firms creating the most environmental,social and financial value. Rather than simply focus on the generalquestion: “Does corporate responsibility pay?” Arena and her teamworked to understand:

• Precisely when does CSR pay? and,

• Under what specific conditions does CSR work best - and worst?

Arena and her research team dug deep, interviewing hundreds ofexecutives, shareholders, employees, consumers, experts andactivists. They ultimately discovered that authentic CSR is a matter ofvalue not values, and about change rather than charity. The companiesproducing the best results for society, the environment andshareholders alike approached CSR as a form of innovation. Theydeveloped solutions that were strategically responsive to emergingmarket conditions and the pressing needs and demands ofstakeholders. On the other hand, the companies producing the worstresults approached CSR as merely a form of marketing orphilanthropy.


Several of the companies Arena highlights for their superior social,environmental and financial performance are rarely highlighted on“Most Ethical” or “Best Citizens” lists. GE and DuPont, for instance,have a history of environmentally-harmful practices, yet they arestaking their business growth and future on environmental and socialgoals.

For instance, attaining a critical mass for GE's growth and revenuedepends on its ability to deliver products with environmental and socialvalue. The company is investing $2 billion a year on environmentaltechnologies that lead to a myriad of profitable products ranging fromsolar water purifiers to energy saving kitchen appliances. By 2010 GEaims to produce $20 billion in annual revenue from products that fallunder its “Ecomagination” banner. In other words, GE has passed whatArena characterizes as a “point of no return,” in that it cannot afford tostop investing in strategic CSR.

Similarly, by 2015, 25% of DuPont's revenues will come from what thecompany calls “non-depletable” or renewable resources. As with GE,DuPont's higher purpose of creating “sustainable solutions essential toa better, safer, healthier life for people everywhere” manifests in theform of a range of products and technological breakthroughs, such asBio-PDO, an innovative polymer made from corn that uses less energyto make and also produces less waste. In the near and medium termDuPont will rely upon innovations like this in order to be prosperous, soit too has passed the point of no return.

As Arena points out in her book, neither DuPont nor GE invest in CSRbecause it is moral or trendy. Rather, they invest because it is the rightthing for their shareholders. That is why their strategies stand the testof time and make such a difference.

When you calculate the social and environmental impact that GE andDuPont create through their investments—reducing CO2, wasting lessand also helping to solve serious problems like climate change andwater scarcity through profitable solutions—it becomes clear that thisis all about far more than feel-good philanthropy. There is undoubtedlya substantive business case for CSR.

74 Chapter 11: Authentic CSR

Still, though, many companies in Arena's study, like Exxon and Merck,appear not to see this. They approach CSR as a marketing issue orsimply try to cut down on their more damaging practices. The key tosuccess, says Arena, is to forget about trying to do a little “less bad”and instead concentrate on building the right kinds of solutions from thestart. While companies might temporarily save money or bolster theirbrand image by cutting down on waste or talking the CSR talk, they willprofit far more and make a much bigger difference to the world byselling “better things in better ways.”

This is what authentic high-purpose companies do. According toArena, “High-purpose companies prepare themselves for inevitableturns. They are the first to market with solutions that are vital andnecessary, not frivolous or easily replicated. They use the creativity intheir own minds combined with the power of collaboration to inventsomething totally original.”

Arena's advice to companies is to develop innovative and marketablesolutions with a purposeful edge. From her perspective, a seismic shiftis occurring, and technology companies are in a great position tocreate value and deal with the relevant issues.

The companies producing the very quality social, environmental andeconomic returns from their CSR investments, including GE, DuPont,JetBlue, IKEA, Patagonia, Eileen Fisher, Wegmans and Food Markets,have highly collaborative workforce cultures. HR understands theworkforce link and the importance of catalyzing diverse groups todiscuss and work together toward innovative “high purpose” solutions.As HR gets more involved, CSR can move to a different level thoughengaging the whole workforce rather than a few individuals.

In summary describing the pragmatic need for CSR, Arena quotes RayAndersen of Interface, “We can't conduct business on a dead planet.”

Christine ArenaAuthor: Cause for Success, The High Purpose Companywww.high-purpose.com


C h a p t e r

12 Getting StartedSun Microsystems: Marcy Scott Lyn

and Rich Lang

Sun, a global supplier of network computingsolutions, is setting new industry standards withits eco-responsible server-line with CoolTh-reads(TM) technology, which delivers the mostpower-, space-, and cooling-efficient servers inthe world.

Though corporate responsibility has long beenembedded in Sun's business operations, thecompany issued its first Corporate SocialResponsibility report in January 2007. For thebusiness partners at Sun, it was time to decidewhat public commitments to key corporateresponsibility goals they were willing to make.Rich Lang, Vice President, Human Resources,points to Sun's employee surveys thatdemonstrate employees want the company to bea socially responsible company. What was lessclear to the employees is how they could helpmake it so. The company is now engaged inmultiple initiatives, including the following:

Protection of privacy: One of Sun's goals is toassure that its network solutions will protect theprivacy of everyone who participates in anetwork. Sun has established a goal that by 2010all products will include privacy checks andbalances throughout the product lifecycle. This

76 Chapter 12: Getting Started

means that any product or service that manages or allows access topersonally identifiable information (PII) must be conceived, designed,developed, tested, and sold with privacy principles and standardsembedded into the process.

CSR advisory board: In an effort to build employee engagement,Marcy Scott Lynn, who is responsible for the strategy and execution ofCSR initiatives across Sun, created a volunteer advisory board thatinvolves employees from all areas of the business and all corners ofthe globe. The group meets regularly, in person and virtually, to shareinformation about company initiatives as well as general CSR trends.Lynn hopes that over time, more and more employees will join thevolunteer board and share their ideas for ways to integrate CSR intoeveryone's job.

Stakeholder engagement program: To ensure that Sun's efforts arealigned with the company's external constituents, Lynn also created astakeholder engagement program. In May 2007, investors, customers,employees, and a variety of social and environmental NGOs wereinvited to provide feedback on the company's Corporate SocialResponsibility Report, as well as on the content of the upcoming report,slated for release in the Fall of 2007. A number of Sun staff andexecutives participated in the day-long meeting, including CEOJonathan Schwartz.

There was much discussion around transparency—everything fromSun's energy use to how many people call the ethics hotline forinformation on violations of policy. Thousands of Sun employees postto unfiltered blogs, as does CEO Schwartz, who blogs his personalmessages in order to emphasize the openness of Sun's culture.

Diversity was also a hot topic in the May session. “Stakeholders wantto know - what does the workforce look like? We can't be afraid toreport that there are low numbers in technology of women and peopleof color, but we need to be able to set it in context,” Lynn said. Theopen dialogue around these difficult issues led to discussion ofredefining how we talk about diversity in global companies. Forexample, if Sun were to apply statistics across the globe, the LatinAmerica division would record more Hispanics and fewer Caucasians,but that would not tell the true story of the challenges of recruiting adiverse workforce.


Eco-responsibility: Sun is committed to a 20% reduction ofgreenhouse gas emissions (GHG) over 2002 levels by 2012 while stillgrowing as a company. David Douglas, Sun's Vice President, Eco Re-sponsibility, has been leading the company's Eco Responsibilityinitiatives. Plans are to reduce energy usage in datacenters byconverting them into eco-responsible facilities and making themsmaller and more energy efficient. The company is also developing analternative energy strategy, including solar power and other renewableenergy options.

The OpenWork program: enables Sun employees to work effectivelyanywhere, anytime, using any device. Through this program, morethan 55 percent of Sun employees around the world work from homeor in a flexible office at least one day a week. OpenWork has led togreater employee satisfaction and continued high productivity, as wellas reduced costs and carbon emissions from Sun's operations.

Sun Microsystems, Inc.4150 Network CircleSanta Clara, CA 95054 [email protected]

78 Chapter 12: Getting Started


C h a p t e r

13 Ethical Sourcing from Suppliers

Gap Inc.: Dan Henkle

Dan Henkle, Gap Inc.'s Senior Vice President ofSocial Responsibility, ensures that Gap issourcing ethically from garment factories thatmaintain good working conditions. Gap doesn'tmanufacture its own goods but monitors garmentsuppliers against its code of vendor conduct. Thecode covers four key areas; health, safety, laborand wages. Naturally, Gap expects vendors tofollow the law, but in some cases, country law isnot highly developed. Gap will compare the lawof the land to their code and expect the vendor tofollow the higher standard.

Many people on Henkle's worldwide team ofmore than 90 employees have a laborbackground (HR, trade unions, NGOs), and theirjob is to work with Gap's suppliers to improveworking conditions. They often deal with HRissues like employee complaints aboutmanagement decisions and behaviors. Gap hasfound that factories with HR policies and HR staffhave a better track record on quality,productivity, on-time delivery, and innovationthan factories that do not.

Several studies point to the business case formaintaining good working standards. Forexample, Tufts University did a study in India of

80 Chapter 13: Ethical Sourcing from Suppliers

50 factories (14 were Gap vendor factories), looking at varying levelsof sophistication among HR management systems and how theycontribute to running a business. A factory with an unsophisticated HRsystem typically experienced higher absenteeism, lower productivity,higher turnover rates, and more accidents. As HR managementsystems improved, so did factory conditions and productivity andquality. Turnover rates decreased as well.

In 2004 and 2005, Gap piloted an integrated sourcing (vendor)scorecard for factories to help the buying team make perfor-mance-based decisions on where to place garment orders. Factoriesreceived an overall rating based on the following performance factors:quality, innovation, strategic capability, speed-to-market, cost, andlabor standards.

The labor standards score is derived from Gap's factory rating tool,which uses a five-level rating system to measure overall compliance.Level 5 indicates that a factory is “excellent” and that the Gap team hasfound few or no documented violations. Level 1 signifies that the teamhas found many violations, including core and habitual ones, and that“immediate attention is required.” A Level 1 factory is in danger oflosing Gap business if management does not demonstrate immediateimprovement in its compliance practices.

Gap ran a correlation analysis on the vendor scorecard to answer aquestion: When factories upgrade working conditions (which can becostly), do the six performance factors get better or worse? Datashowed that when vendors took steps to improve working conditions,performance factors, including cost competitiveness, improved, thusbolstering the business case for improving vendor factory workingconditions. Today, Gap's staff business partners seek to hire thefactories that reach higher standards.

To monitor factories, Henkle's team members act like detectives,sleuthing to determine if factories are indeed in compliance with theGap vendor code. In China, double bookkeeping is an issue. Manyfactories keep two sets of books: one set has the hours worked outperfectly in line with codes, but the book in the drawer tells anotherstory.


The Gap compliance team has several ways to find out if a factory iskeeping two sets of books, such as checking cleaning records or thebroken needle log. When a needle breaks, the worker logs it and getsa new needle. The log records the date and time. So when the logshows a broken needle on a Sunday, and the factory claims that nowork is being done on Sundays, the team knows there is a doublebookkeeping system. The factory is told that if they keep double books,Gap will not do business with the factory. Indeed, over a two-yearperiod, the Gap team revoked the contract of about 200 out of 464factories in China. After that, the factories understood that Gap meantbusiness. In 2006, the compliance team revoked only 26 out ofapproximately 2000 factories, which points to improved understandingand adherence to Gap's code.

Gap's decision to publish its 2003 CSR report was an important stepfor the company. The report provides an overview of the company'sCSR programs and also information on Gap's goals for the future. Forthe company, it serves less as a PR document than a public notice ofits desire to be accountable for its vendor practices. The Gapmanagement prides itself on evolving standards and transparentreporting. Each year since 2003 they have added systems and metricsthat raise the bar for Gap and its many factories around the globe.

Henkle encourages companies to get their first report completedbecause public reporting on internal activity requires increased internalawareness of the social impact of corporate goals and initiatives.

Gap Inc.www.gapinc.com/[email protected]

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C h a p t e r

14 Sustainable BusinessCisco Systems, Inc.: Adrian Godfrey

When most people think of Cisco, they have inmind its massive Silicon Valley and globalnetworking operation. But Cisco is also acompany that operates on the principle of thetriple bottom line. “At Cisco,” said AdrianGodfrey, Director of Corporate Citizenship, “CSRis about good, sustainable business.” Werecently interviewed Godfrey to learn how CSR isimplemented and integrated into the overallbusiness of Cisco.

How did Cisco decide to become involved in CSR?

“We have a very strong culture of giving, trust,fairness and integrity—values instilled in Ciscofrom the beginning. Cisco has maintained itscommitment to giving back and being a goodcitizen in order to be a good steward to thecommunities in which it operates, lives, andworks. At Cisco, giving back is part of the culture,a culture that is driven from the CEO and thatthrived under John Morgridge and JohnChambers. Each believes in philanthropic work,which made it relatively easy to have theconversation about CSR at Cisco. In the past,companies looked strictly at the bottom line andmeasured their success by the amount of

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financial return they brought to their investors. However, society nowexpects corporations to consider the impact they have on the lives oftheir employees, their community, and the environment. CSR for Ciscois about doing better business by taking into consideration the needsof all our stakeholders.”

“We believe in building a sustainable enterprise, and our strategy forCSR is to mainstream it, define, explain, and adapt it. For example,stakeholder concerns relating to our supply chain would be addressedby the manufacturing team, which takes on any operationalresponsibility and business improvements. In my experience,managers in Cisco play an active role in implementing and definingCSR for their own operation. They do this by engaging not onlyemployees and other stakeholders, but also by getting feedback fromindependent organizations such as Business for Social Responsibility.The company also seeks stakeholders' input and demandstransparency and disclosure from its suppliers and partners.”

What is the ROI for CSR in your organization?

“Strong corporate citizenship is an integral part of Cisco's overallbusiness strategy; CSR is about competitive advantage. CSRinitiatives are measured by their impact and social return oninvestment. The bedrock to the success of Cisco is its continuingemphasis on ethics, transparency, morality, and giving back to thecommunity. Consequently, sustainability is not about 5 or 10 years butabout how to remain a successful global corporation for the next threeto four generations. In this respect, CSR keeps us looking into thefuture.

What initiatives is Cisco undertaking and what are the strategies?

All employees at Cisco commit to responsible business practices, andthe company is committed to empowering its workforce, said Godfrey.Cisco also is committed to improving the communities in which itoperates and to being environmentally responsible. Examples ofinitiatives include:


Workplace. Employee satisfaction, flexibility, productivity, well-being,training, diversity, and health are key to retention as well as attractingtalent. Cisco is considered a leader in providing good and safeworkplace for its employees. Cisco's HR Civic Council facilitatesvolunteering at nonprofit organizations, and in the early 2000s duringthe downturn of the high-tech industry, the HR and the corporatephilanthropy group gave some high-performing employees anopportunity to work at a reduced salary in such organizations.

Society. Cisco is involved in global social and economic developmentprograms. The company provides both cash and grant funds andarranges partnerships, employee volunteerism, and relief efforts. Thecompany's Networking Academy provides IT educational services inmore than 150 countries, many located in Africa, Southeast Asia, andLatin America. One of its key attributes is encouraging women inunderdeveloped countries to attend a Cisco network course to preparethem for jobs. The Cisco Network course is focused on increasingopportunities for people in parts of the world where opportunity hastraditionally been scarce.

Environment. To address emerging issues and form industry-specificguidelines, Cisco collaborates and builds coalitions with otherbusinesses and organizations. In 2004, for example, Cisco, Intel, andMicrosoft started a CSR Supply Chain Working group that began toaddress complicated issues. The group later joined other like-mindedindustry groups and endorsed the Electronics Industry Code ofConduct (EICC) to harmonize the industry's effort toward a more so-cially-responsible supply chain. Within its own business operations,Cisco promotes best practices in designing products that are environ-mentally friendly and energy efficient and also promotes minimalpackaging and recyclable components. To reduce greenhouse gasemissions, Cisco provides employees with the flexibility to work fromhome or on the go and offers programs that encourage the use ofpublic transportation.

Recently, Cisco entered into a five-year partnership with the ClintonGlobal Initiative (CGI) program to specifically address environmentalissues. The Clinton Global Initiative focuses on practical solutions forglobal problems including pollution caused by carbon emissions.

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How does Cisco deal with global challenges to CSR?

The challenge of CSR is not only how to engage employees and howto integrate CSR within the company, but also how to integrate itglobally, said Godfrey, because every country Cisco does businesswith has distinctive business practices and cultural norms. Thecompany strives to understand other cultures while upholding itsbusiness values and ethics. Cisco business practices are based on acode of ethical conduct, employee guidelines, and policies that arereviewed every year to assure transparency and accountability.

Adrian GodfreyDirector, Corporate Citizenship Cisco Systems, Inc. www.cisco.com


C h a p t e r

15 Investing in the Future Intel Corporation: Dave Stangis

At Intel, Corporate Social Responsibility (CSR)means achieving business success while actingwith uncompromising integrity in everything thecompany does. Intel is the world's largestsemiconductor manufacturer based on revenueand a leading innovator of advanced digitaltechnology platforms and components. Thecompany has 94,100 employees worldwide andis located in 25 countries (country employeebase greater than 50). Intel's revenue in 2006was $35.4 billion dollars.

Intel strives for excellence in delivery productsand services along with making every effort toachieve a high quality work environment. In theearly part of 2007, Intel was ranked #5 byBusiness Ethics Magazine in their search for theTop 100 Best Corporate Citizens. BusinessEthics Magazine's listing based their analysis oncompanies that are proving that good corporatecitizenship and good business go hand in hand.Companies are compared on environmental re-sponsibilities, corporate governance and ethics,fairness toward employees and accountability tothe local communities. Intel truly believes CSR isgood management practice. To Intel this meanslistening to, learning from and communicatingopenly in every aspect their operations.

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Intel has six distinctive CSR categories and each one of these hasspecific focus areas. This report will spotlight the area of Education.More information about Intel's CSR activities and progress reports canbe found at www.intel.com/intel/index2.htm

Education is at the heart of Intel's engagement with communitiesaround the world. Intel's investment in education is an investment inthe future. To continue to be the largest semiconductor manufacturerand a leader in innovation, a highly skilled workforce is required.Excellent education that fosters curiosity and learning is essential.“Giving a child hands-on access to computers and the Internet canchange the course of his or her life. Equipping a single teacher with theskills and resources to increase the effective use of technology in theclassroom can affect hundreds of students. Providing university facultymembers with a cutting-edge curriculum can alter the impact that theirstudents will have on technological advancements for years to come,”


says Dave Stangis, Intel's CSR Director. Intel is committed to helpingpeople around the world use technology effectively to better their livesand improve their local communities. In 2006, Intel contributed over$100 million for worldwide educational initiatives.

Intel's Education initiatives are broken down into three focus areas:

• Improving Teaching and Learning with Technology

• Advancing Math, Science and Engineering Education and Research

• Advocating for Educational Excellence

Improving Teaching and Learning with Technology

The scope of this initiative is to help elementary and secondarystudents worldwide along with educators in developing technologyliteracy, critical thinking, problem-solving and collaboration skills. Intelestablished several programs to meet this objective.

The Intel Teach Program goal is to teach 10 million teachers indeveloping countries how to integrate technology effectively into theirclassrooms and teachings by 2011. So far, Intel has providedprofessional development to 3.9 million teachers in over 40 countriesand they are on track to meet their goal. Eighty-nine percent of thoseteachers who participated in the program feel they are usingtechnology more effectively as a result.

Intel partnered with the Boston Museum of Science and MIT Media Labto build and support 100 Computer Clubhouses. The Intel ComputerClubhouse Network is a community-based after school educationprogram that offers a safe environment where young people candevelop technology and collaboration skills. Intel provided technologyinfrastructure and leadership guidance and sponsored the introductionof new technology tools. Each year, Intel also sponsors the IntelComputer Clubhouse Network Conference where programcoordinators and leaders from around the world come together toexchange ideas, learn to use new tools, discuss resource developmentand provide input.


The Intel Learn Program is an after school program that offershands-on activities for learners in developing countries. This 30-hourcourse focuses on technology literacy, collaboration and criticalthinking skills. The program targets students from 8 - 16 years of age.Over 465,000 learners successfully completed the program.

In 2006, Intel announced the Intel World Ahead Program, whichsupplies a low-cost mobile learning-assistant computer to students indeveloping countries. The purpose of the program is to speed accessto uncompromised technology and education for people in the world'sdeveloping communities. Intel has a five-year objective to reach out tothe world's next billion users by driving progress in accessibility,connectivity and education.

Advancing Math, Science and Engineering Education and Research

The objective of this initiative is to help advance education andresearch in the areas of math, science, and engineering. These areasare critical to developing a highly skilled engineering and innovatorworkforce.

The Intel Higher Education Program has three components:Research, Curriculum and Entrepreneurship. In the area of Research,Intel grants funds for research and student fellowships to expand theboundaries of science and technology that are vital to thesemiconductor industry (i.e. microprocessor technology, high-volumemanufacturing, and computer science). In the past year, Intel providedover 700 grants totaling $24 million to universities around the world toconduct such research. In the area of Curriculum, Intel works withleading universities around the world to create and disseminateadvanced curricula. In 2006, Intel offered 42 universities, at no cost, anew curriculum focused on multi-core technology, the latest processorarchitecture. In the area of Entrepreneurship, Intel created anddelivered entrepreneurship educational workshops to faculty membersfor the purpose of developing a capacity for entrepreneurial innovation.Intel and The Haas School of Business at the University of California,Berkeley, hosted a global competition where students received seedfunding for their projects.


For the past 10 years, Intel has been the primary sponsor of the IntelInternational Science and Engineering Fair (Intel ISEF), the world'slargest pre-college science competition. Sixty-five thousand studentsfrom 45 countries participate in over 550 Intel ISEF affiliated fairsworldwide. Young scientists enter the competition to demonstrate theirinnovative projects and compete for more than $4M in awards. Inaddition to sponsoring the fairs, Intel provides funding for teachers toattend and incorporate research activities into their curricula.

The Intel Science Talent Search is a science competition where U.S.senior high school students present an original research project. Thegrand prize is a $100,000 scholarship. Semifinalists and their schoolseach receive a $1,000 scholarship.

The Intel School of Distinction Award provides grants to U.S.schools that excel in academic achievement in the areas of science,math, technology and literacy. The grants range from $10,000 to$25,000 for each school.

The skool Learning and Teaching Technology program is aworldwide program designed to support math and science learning forstudents 13-15 years old. Intel developed and deployed the skoolprogram which is a web-based e-learning portal containing learningmodules that can be used in a class or in a stand-alone program.

Advocating for Educational Excellence

Intel realizes that they cannot make systemic change in educationwithout the help of others. Intel has engaged in numerous partnershipswith government and multilateral organizations to support educationalinitiatives. Organizations that have played a vital role in worldwideinitiatives include the United Nations Global Alliance for ICT andDevelopment; World Economic Forum (Global Education Initiative);United Nations Education, Scientific and Cultural Organization; U.S.Agency for International Development; Inter-American DevelopmentBank; and the Academy of Education Development.

Intel has a rigorous evaluation process for its CSR initiatives and usesindependent evaluators to review and receive input on the programsand activities. For example, in its Education initiatives, Intel uses SRIInternational to evaluate the Intel Computer Clubhouse and the Intel


Learn Program. By using an independent evaluator, Intel is able toreceive honest, objective feedback about its programs so it can makecontinuous improvements.

Intel's commitment to excellence goes back to its founding fathers:Andy Grove, Gordon Moore and Robert Noyce. The company valuesare built to achieve exceptional results in all operations. Through theeducation initiatives, Intel strives to provide opportunities for the nextgeneration of innovators while at the same time ensuring Intel's futuresuccess. As Intel Chairman Craig Barrett states, “So why do we care?We care because education is a long-term investment for us, just likeour Research & Development program. Mathematics is the languageof our business, the language of innovation and invention—thelanguage of the modern, global economy—and, the language ofanyone who wants to participate fully in this great democracy.”

Intel Corporation2200 Mission College Blvd.Santa Clara, CA 95052Dave Stangis, Corporate Social Responsibility Directorwww.intel.com


C h a p t e r

16 Pro Bono ServicesCooley Godward Kronish LLP: Maureen Alger and

Ashley Kanigher

Cooley Godward Kronish LLP is a national lawfirm that serves the converging worlds of hightechnology, high finance and high-stakeslitigation. The firm has approximately 600attorneys and represents clients in more than 20industries. Cooley attorneys employ ateam-based approach, drawing upon a broadbase of expertise to provide clients withhigh-quality, cost-effective legal advice tailoredto their particular needs.

Pro bono legal services are one of the primaryways the firm fulfills its commitment to “giveback” to the communities in which its offices arelocated. The pro bono practice is an integral partof the firm, and pro bono cases receive the samelevel of attention, resources and staff as dobillable matters. The commitment to pro bonohas been demonstrated by the appointment of apartner who is dedicated full-time to managingand developing the pro bono practice across thefirm.

Maureen Alger has been with Cooley since 1999when she joined as a litigation associatespecializing in appellate matters. She helpedcoordinate the pro bono practice for severalyears in conjunction with her other practice.

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Alger became partner in 2006 and has continued to manage the firm'spro bono practice across all offices. She also takes on her own probono cases and supervises other attorneys on their pro bono matters.

Commitment to pro bono work is important to Cooley for many reasonsbut, says Alger, “First and foremost, it is part of how we identifyourselves as a firm. It is an element of the firm's core values to givegenerously of our time, talents, and resources, and pro bono work isone of the key ways we fulfill this commitment.” It is also a matter ofindividual professional responsibility; under the model rules ofprofessional conduct, attorneys have a duty to perform pro bono work,and the firm believes it is essential to facilitate its practice. Cooley alsorealizes that this work benefits the firm and its attorneys by facilitatingrecruiting, providing training opportunities, and increasing associatemorale and retention. Moreover, says Alger, when we evaluate “eachattorney's contributions to the firm, pro bono matters are given equalweight and credit as compared with work on billable matters.”

The firm has the expertise to take on a variety of pro bono cases,including but not limited to matters involving capital punishment, civilrights, consumer law, contract law, employment law, entity formation,environmental litigation, First Amendment issues, governmentbenefits, guardianship, immigrant rights, intellectual property, humanrights, landlord-tenant disputes, micro-enterprise advising, non profitadvising, political asylum, and prisoners' rights. In 2006, over 400Cooley attorneys and paralegals contributed over 25,000 hours onmore than 350 pro bono matters.

Pro bono practices at Cooley have led to numerous honors andawards. For example, The National Law Journal recognized the firm'svictory in a national class action matter, Santillan, et al. v. Gonzales, etal., as one of the country's top pro bono cases of 2005. That sameyear, Cooley was presented with the “National Public Service Award”by the ABA Business Section for the firm's overall commitment to probono work. Other groups, such as The Legal Aid Society of New York,The Asian Pacific Islander Legal Outreach and Bay Area Legal Aid,have also honored Cooley and its attorneys' efforts.


If your company would like to partner with a socially responsible lawfirm, visit www.cooley.com to find an office near you. Individuals andnon-profits can also request pro bono legal services through ourwebsite.

Maureen AlgerPartner, Pro Bono [email protected]

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C h a p t e r

17 Responsible Business Processes

Symantec Corporation: Cecily Joseph

Symantec is the world's fourth largestindependent software company with more than17,500 employees and offices in more than 40countries. The company is a signatory of theU.N. Global Compact, created to bring privatecorporations together with U.N. agencies, labor,and civil society to support universalenvironmental and social values. Symantec wasalso added recently to the FTSE4Good, an indexthat guides investment in socially responsiblecompanies.

Symantec's CSR program is directed by CecilyJoseph. She oversees its global corporate socialresponsibility program which includes policydevelopment and integration, stakeholderengagement, and program communication.

How did Symantec decide to become involved in CSR?

Like many multinational corporations, Josephsaid, Symantec saw an opportunity to enhanceand strengthen its brand with a well-defined CSRstrategy. They were also beginning to see moreinquiries about Symantec's CSR practices fromcustomers and a certain segment of sociallyresponsible investors. Moreover, employees

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were asking more pressing questions about the company's CSRpractices. “We were starting to realize that employee candidates wereoften basing their employment decisions on CSR factors, includingcommitment to environmental responsibility, diversity practices, andeven quality of life issues such as transportation. Given the currentcompetitive recruiting landscape we soon realized the value a strongCSR program brings to our portfolio and how we might make ourselvesan employer of choice by strengthening our program.”

What focus did you choose and why?

Symantec initially chose business-related focus areas that were clearlylinked to “our business, such as privacy, cyber awareness, and fundingfor science and math education. We soon realized, however, that ourstakeholders expected us to reach further and address social andenvironmental concerns such as housing and climate change.” Josephadded that Symantec was being challenged to determine what CSRinitiatives would truly allow the company to have an impact. As a result,“Our focus also turned to the opportunity our global workforcepresented and how harnessing that diversity could produce a culture ofinclusiveness and give us a competitive advantage.”

In addition, the company implemented prudent practices to reduceenergy consumption within its facilities. As a result, Cecily said,“Symantec became a thought leader on energy efficiency in the ITenvironment. As a software company we were not seen as having alarge environmental footprint, but we began to realize that we wereexpected to do our part and how this might present some businessopportunities for us.”

What initiatives has Symantec undertaken? Who championed them?

Symantec's major initiatives include:

Sustainable Silicon Valley: In May 2006, Symantec joinedSustainable Silicon Valley's Carbon Dioxide Emissions ReductionInitiative. This collaborative effort between the public, private, andnonprofit sectors aims to reduce CO2 emissions throughout SiliconValley 20% below 1990 levels by 2010. As part of our commitment tothis initiative, we have set 10% energy and CO2 emissions reduction


targets at our worldwide headquarters and Mountain View facilities.This program is championed internally by the vice president ofFacilities and Real Estate.

Silicon Valley Leadership Group “Cool Commute” Program: Thisinitiative encourages companies to track and reduce employeecommuting. Symantec has collected detailed information on thecommute patterns of its Bay Area employees and has established abaseline of miles traveled per year and the related carbon emissions.In partnership with our employees, we will attempt to reduce theircommutes through carpooling, public transportation, biking andteleworking. The program is championed by Symantec CEO JohnThompson.

Responsible Software Packaging: Software packaging is anotherarea in which Symantec demonstrates environmental responsibility.Changes in the company's packaging processes include:

• Online sales promotion

• Maintenance updates and licenses distributed electronically

• Multilingual CDs

• Fewer pages in user manuals

• Recycling of more than 70% of the waste generated at thecompany's manufacturing site

This initiative is being championed by the company's vice president ofGlobal Supply Chain.

Cyber-awareness and Education: Symantec has a program focusedon keeping kids safe online. Symantec has partnered with nonprofitorganizations such as iKeepSafe and has also coauthored a set of tipsfor parents on how best to keep their kids safe when they arenavigating the Internet. The company has also published materials forparents and teens that are available on their dedicated FamilyResource Website. This program is championed by the grouppresident of Symantec's Consumer Business Unit.

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Diversity and Inclusion: Symantec recently established a GlobalDiversity and Inclusion Steering Committee composed of executivesfrom across the company's different divisions and locations. Thepurpose of this committee is to ensure that diversity awarenessbecomes embedded in the fabric of our organization. At the local level,employee volunteers participate in Site Diversity and InclusionCouncils, devoting their time and talents to help achieve diversitygoals. This initiative is being championed by the executive vicepresident and chief human resources officer.

What is the ROI for CSR in your organization? How has it affected your business?

Symantec is in the early stages of implementing its CSR program andevaluating its impacts, said Joseph. “We expect cost savings due toour focus on issues like energy efficiency and paper conservation. Wealso expect that CSR will enhance our brand and open businessopportunities for us.” CSR is a way to demonstrate “how our businessvalues align with those of our customers. It also is a way todemonstrate to our shareholders that our company looks at long-termprogress in these areas and measures their impact.”

How is HR helping to drive CSR initiatives?

At Symantec, HR is responsible for developing and driving certaininitiatives that are part of the CSR scope, including diversity andinclusion, employee learning and development opportunities, and qual-ity-of-life policies such as teleworking, flex time and benefits. Likemany companies, Symantec recognizes the value of CSR for recruitingand retaining qualified and competent employees, which is a primaryfunction of HR. HR also helps to define CSR priorities through datagathering, employee interviews, surveys, and recruiting trends.

Cecily JosephDirector, Corporate Responsibilitywww.symantec.com


C h a p t e r

18 Empowered to Do the Right Thing

Adobe Systems Inc.: Michelle Mann

As a global company that develops leadingbusiness, creative and mobile softwaresolutions, Adobe is committed to providingeconomic, intellectual, and social benefits toeach country and community in which itoperates. Defining and addressing corporatesocial responsibility (CSR) is an ongoing processand learning experience.

Business practices at Adobe are shaped by a setof core values that have been in place since thecompany was founded 25 years ago. Adobebelieves it is essential to conduct businessaccording to the highest ethical standards; fostera culture of innovation; deliver high-quality,high-value solutions for customers; generatesuperior return for investors; and share successby supporting charitable causes in thecommunities where Adobe operates.

The Adobe leadership team recognizes thegrowth of the business is in large part dependenton the growth and development of Adobeemployees. In addition to highly competitivebenefits packages, professional training anddevelopment is a cornerstone of the Adobeculture. On average, each employee receives

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approximately 40 hours per year of professional and career-enhancingtraining provided through hundreds of classroom-based and on-lineclasses.

Adobe strives to create a diverse, exciting, productive and creativework environment for the company's more than 6,400 employeesworldwide. They have been extremely successful. Since 1999, Adobehas been consistently named on Fortune magazine's “100 BestCompanies to Work For” list and has received many other similaraccolades, including #24 Great Places to Work India (Grow TalentCompany Ltd./Businessworld, 2006).

As with many large companies, the components of CSR at Adobe arecomplex and multifaceted. “There is not one owner of CSR; it is acollaborative process. Guided by the company's values, each group isempowered to do the right thing,” says Michelle Mann, Senior GroupManager of Corporate Affairs. Some elements include corporategovernance; commitment to employees; environmental sustainability;supply chain practices; community involvement; and the impacts ofproducts and services. The cross-functional team shaping Adobe'sCSR consists of representatives from human resources, operations,product development, supply chain, corporate affairs, marketing andother business units.

A concern for both the physical environment where its employees workand the natural environment that sustains the planet are core reasonswhy Adobe actively seeks out and implements programs that increaseefficiencies, conserve energy and water, improve air quality, andreduce waste. In 2006, Adobe's West Tower became the first buildingin the world to be certified by the U.S. Green Building Council in itspermanent Leadership in Energy and Environmental Design (LEED)program for Existing Buildings at the Platinum level, the highest levelattainable. Adobe now has three buildings certified at the Platinumlevel.

Being an active community and philanthropic citizen is another criticalpiece of how Adobe lives its values. In 2006, Adobe contributed closeto $39 million in cash and software to 136 community organizations,schools, and universities worldwide. The company participated in 23distinctive volunteer activities, which gave Adobe employees theopportunity to impact the community in which employees live. Through


the company's “Dollar for Doers” program, employees earn grants fortheir qualified nonprofits and schools based on their time spentvolunteering.

Adobe Youth Voices (AYV) is Adobe's global signature philanthropyprogram designed to provide youth in underserved communities withthe critical skills they need to become active and engaged members oftheir communities and the world at large. The program enables youngpeople in and out of the classroom to use video, multimedia, digital art,Web animation and audio tools to communicate and share their ideas,demonstrate their potential, and take action where they live. AYV waslaunched in seven geographies around the world including the UnitedStates, India and Great Britain.

Adobe has numerous other CSR-related business practices.Consistent across all activities is a values-based approach focused oninnovation and continuous improvement. Every day Adobe strives tostrengthen its role within society.

Adobe Systems Incorporated345 Park AvenueSan Jose, CA 95110-2704www.adobe.comMichelle Mann at [email protected]

104 Chapter 18: Empowered to Do the Right Thing

Part IVWays to Take Action on Social Responsibility

• Become a Beacon of Sustainability—Act Now: Adam Werbach

• Incorporate CSR from the Beginning—Entrepreneurs Foundation: Sean Foote

• Recruit Immigrant Professionals—Upwardly Global: Jane Leu

• Volunteer on Your Terms—One Brick: Dave Shefferman

• Contribute to Global Peace and Well Being—Dalai Lama Foundation: Tony Hoeber

• Good Capital: Invest in Social Enterprise—David Batstone

• Become an Internet Philanthropist—Bring Light: Drew McManus

• Engage in One-on-One Philanthropy—Human Connexus Foundation: Cindy Campbell and Heather Connors

• Reuse and Recycle Surplus Items—iReuse LLC: Ken Kurtzig

• Promote Economic Independence—Kiva Microfunds: Premal Shah

• Help Nonprofits with Their Training Needs—Community Outreach Program: Kris Schaffer

• Support Collaborative Solutions to Conflict—Search for Common Ground: Jane Shaw

• Find Core Competitive Advantage—ATDynamics, Inc.: Andrew Smith

• Empower Women—Entwine Global: Almaz Negash

• Raises Living Standards—Village Enterprise Fund: Nicholas Imparato


C h a p t e r

19 Become a Beacon of Sustainability

Act Now: Adam Werbach

Act Now provides expertise in HR/Outreach,Creative Services, and Sustainability Consulting.Its signature HR program is the PersonalSustainability Project. Unlike traditional HRprograms that are top-down and fully designedcentrally, the Personal Sustainability Project is abottom-up, grassroots initiative that focuses oneducating, inspiring, and empoweringemployees around sustainability.

The touchstone of the project is the PersonalSustainability Practice (PSP), which consists ofthe small actions individuals choose to help themimprove their own quality of life while alsocreating a “win” for the community and planet.From energy conservation to recycling to eatinghealthier, there are limitless kinds of PSPs, all ofwhich connect the individual to the communityand to the planet.

Act Now started its work with Wal-Mart storesand Sam's Clubs in Indiana, Florida, andColorado. While applying their PSP programs, itquickly became apparent that associates did nothave time or did not know how to care aboutpersonal, societal or environmental issues.“Folks are just focused on paying the bills,” says

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Adam Werbach, CEO of Act Now. An investment by Wal-Mart with paidtime to focus on personal sustainability was a requirement forsuccessful implementation of the PSP program.

Wal-Mart has become Act Now's largest workforce development client.They are committed to being a leader in sustainability. Part of theirvision is to bring sustainability to every one of their 1.3 million U.S.Associates. From the very beginning, the company knew that winningthe hearts and minds of the Wal-Mart Associates would be integral tothe success of the broader sustainability initiative. Beginning in June of2006 and lasting through August 2007, Act Now's field trainers workedacross the country from Buffalo, New York to Anchorage, Alaska,including every state in between, to help Wal-Mart Associates make adifference in their own lives and in the overall health of our planet.

The Wal-Mart PSP project began with a daylong sustainability retreatto train staff using a “train the trainer” approach. Each store wasrepresented in the training by a Lead Captain (an hourly storeAssociate) and the Store Manager. The Lead Captains returned to theirhome stores to recruit nine other captains for a total 10 captains ineach location. Captains were allocated four hours per week tocoordinate the store-level PSP framework and to help the store'sAssociates to choose their own PSPs and to get involved with thedevelopment of the Project within the store. Captains, notmanagement, decided how their store was going to become moresustainable as well as a beacon of sustainability in the localcommunity.

The PSP framework revealed issues centered on environmentalimpact, losing weight, financial savings, quitting smoking, work/lifebalance, and getting stress under control. The store Associates beganadopting personal ecological behaviors, with an emphasis on caring fortheir own health and well being. In some stores, individuals broughttheir family together to have an organic meal once a week. Thousandsof Wal-Mart Associates began biking or walking to work - somethingthat fosters good health and saves people money with soaring fuelcosts. Others began parking far away from the building in order to “walkto work.” Some individuals did food substitutions like adding fish so thatone meal a week consisted of fresh or healthy food. Changes such asthese have made a huge impact on the quality of life for the workforceat Wal-Mart.


Once the PSP programs are in place at the local store level, theCaptains help Associates to take a broader look at their community. Forexample, a Sam's Club in Florida adopted a school and worked withthe children to clean up the surrounding wetland and transform it intoa park that has a nature trail for kids.

Wal-Mart employs approximately 1 in every 125 people in the UnitedStates, so the PSP program has a massive impact.

Act Now Adam Werbach, CEO501 York Street, San Francisco, CA 94110415-871-2000www.actnowproductions.com

110 Chapter 19: Become a Beacon of Sustainability


C h a p t e r

20 Incorporate CSR from the Beginning

Entrepreneurs Foundation: Sean Foote

Entrepreneurs Foundation (EF) helps startupcompanies create, manage, and implement theircorporate foundations and communityinvolvement programs. Sean Foote, Chairman ofEF's Development Council and a venturecapitalist with Labrador Ventures, advises hisportfolio companies on the value of combiningteambuilding with community involvement tobuild strong cultures.

It is never too soon for a company to think aboutbuilding a strong corporate culture. In start-ups,often it is really hard for executives to thinkbeyond making investors money. But theconcept of introducing community involvement tothe workplace resonates strongly with CEOswhen they tie it to teambuilding. Communityinvolvement can help foster relationships acrossand within teams, and CEOs and their teamshave directly transferable skills to solve socialproblems. For employees searching for meaningand purpose beyond making a product, there isan opportunity to apply skills to solve socialproblems and build camaraderie.

Start-up companies sign up with EF through adonation of equity. By setting aside stock earlyon, the company is seed-funding its corporate

112 Chapter 20: Incorporate CSR from the Beginning

foundation so that it can make strategic grants when it has the financialresources to do so. Until liquidity, EF acts as a community involvementconsultant and helps the company develop a strategic communityinvolvement plan.

One of the first steps in partnering with EF is to survey employees todetermine their attitudes toward community involvement. After anhour-long conversation with the CEO about his or her goals andobjectives for a community involvement program, EF then helps thecompany to identify the causes it will support and to develop a gameplan for the first year. For a relatively small cost, a startup builds a greatplace to work while also giving back to the community.

Sean shared some background on CenterBeam, Inc., one of thecompanies that has partnered with EF. Kevin Francis, president andCEO, is quoted, “A critical success factor for CenterBeam is not onlyhow well we do in business but that we do business well. That includescorporate philanthropy and community involvement, which helps usdevelop successful professionals and recruit people who share ourpassion and our compassion for doing the right thing in business andin the community.”

Entrepreneurs Foundation proved to be the perfect vehicle to helpCenterBeam. “Two of the directors on our board introduced me toEntrepreneurs Foundation, and I immediately saw the value of itsmission,” said Francis. “The founder of EF saw around him a tale of twocommunities in Silicon Valley in the late 1990s—great wealth but alsogreat need—and realized something had to be done to alleviate thatneed.”

“It took us about two minutes to say yes to EF. We always had a deepcommitment to employee involvement in community service and it waseasy to see how EF could help us set up the program and find theprojects that worked for us. Employees at CenterBeam participate inFood Drives, Dress for Success Clothing Drives, Habitat for Humanityhome building, reading programs, matching gift programs and TheUnited Way. The company makes a point of engaging employees atboth its U.S. and Canadian locations by allowing employees localleadership, a local identity, and local commitment.”


“We wanted to be sensitive to the work load and the family needs of ourstaff,” said Kirstin Burke, vice president of corporate communications& HR at CenterBeam. “But we also wanted an aggressive program. Fora small company, we have had great success with the number ofprograms in which we participate because Entrepreneurs Foundationhelped us strike a balance between those activities which demandemployee time and those which only demand employee contributions.This gives our employees the flexibility they need to balance jobdemands and community service.”

Sean believes EF has a positive impact on his VC investments - asuccessful company has more desire to give and it adds to employeemorale, recruitment, and retention. EF collaborates with companies tocreate community programs that mirror their unique business andcommunity interests. Through strategic planning and hands-on imple-mentation, EF ensures that the program works within the specificconsiderations of a company's life cycle in order to support its goals.Customized corporate community programs can include corporategiving, education, employee volunteerism, business practices andemployee giving.

In the Bay Area, Entrepreneurs Foundation has had over 200companies join since its inception in 1998. The foundation has affiliateslocated in Atlanta, Austin, Boston, Boulder, Dallas, Hawaii, Portland,Sacramento, and Tel Aviv; and more than 400 companies have joinedEF worldwide.

Entrepreneurs Foundation60 South Market Street Suite 1000San Jose, CA 95113-2336408-278-2241www.efbayarea.org

114 Chapter 20: Incorporate CSR from the Beginning


C h a p t e r

21 Recruit Immigrant Professionals

Upwardly Global: Jane Leu

When working on refugee resettlement in 1996,Jane Leu noticed that a number of the peoplefleeing persecution had sophisticatedprofessional backgrounds but were beingfunneled into low-wage jobs upon entering theU.S. workforce. Companies were not looking atforeign degrees and experience when recruiting,and these candidates did not “fit the mold” in theU.S. job market.

Leu decided that this gap in the system could bebridged by bringing together highly-qualifiedimmigrants and progressive employers. The jobseekers needed a network to expose them tothese progressive companies, and theemployers needed a partner to assist them inadjusting their hiring efforts to include thisdiverse workforce. Seven years ago, she startedUpwardly Global to meet these needs.

At any given time, there are nearly 250,000immigrants in the US who earned a BA/BS intheir home countries, possess an average of 10years of work experience, and have the legalright to work. Upwardly Global has two programsto integrate these highly-skilled foreign-bornworkers into the mainstream professionalworkforce: Jobseeker Services Program, which

116 Chapter 21: Recruit Immigrant Professionals

provides individuals with the skills and resources needed to reclaimtheir careers in the United States; and the Employer Network Program,which helps businesses put the right people in the right jobs and showsthem how to reap the benefits of diversity.

The Jobseeker Program is tailored to assist foreign-born professionalswho have immigrated to the United States within the past five yearsfrom a developing country and who already have attained permanentU.S. work authorization. All of the candidates working with UpwardlyGlobal have completed a four-year university program and havesignificant work experience outside the United States. In addition, allspeak English and are comfortable with Internet and email technology.This program provides candidates with access to job leads forprofessional positions, connections to American colleagues andnetworks, and assistance with resume and cover-letter writing. Theymay also attend workshops, including Job Search Strategies,Interviewing Skills, Networking Skills, and Surviving in the AmericanWorkplace. All of these services are provided free of charge.

The Employer Network Program helps companies recruit and retainhigh potential, qualified talent and thus increase the diversity andexperience of their workforce. The program includes three elements:education, engagement and employment.

Education includes providing cross cultural recruitment training to acompany's Human Resources Department and hiring managers. Thetraining is an important step in building cross-cultural competence andidentifying ways in which the hiring process can be adjusted to be moreinclusive to foreign-born candidates. Emphasis is placed ondeveloping interviewing skills that respect cultural differences, aligningresume screening criteria to US standards in order to understand andtranslate the degrees and professional experience these candidatespossess, and gaining a better understanding of who these individualsare and the value they can add to the business.

Engagement is the second step in the process, which involves otheremployees within the organization. Employees are encouraged toparticipate in such volunteer programs as mentoring and mockinterviewing. These direct interactions with job seekers providevaluable experience and increase employees' cross-culturalcompetencies. Employee volunteers help to support the diversity


initiatives on a grassroots level and often refer job seekers internally foropen positions because they get to know them during the volunteeringprocess.

Employment entails the presentation of qualified Upwardly Globalcandidates for important talent gaps. Based on the establishedpartnership, these candidates enter the recruitment process throughthe company's internal hiring process, which allows for greater visibilityand opportunity to demonstrate their skills.

Leu explains, “This program is not just another diversity training. Ourholistic and practical approach results in small, but measurable stepstowards true global diversity.” Companies have begun to realize thebenefits of these programs within their organizations and immigrantworkers are now becoming an “internal bridge” as businesses expandglobally. It is becoming possible to reach local ethnic markets withthese cross-cultural managers because they understand the USbusiness strategy and are able to help transfer this knowledge into thenew markets.

Currently, Upwardly Global has partnerships with several Fortune 1000companies and has trained over 1,000 employer representatives frommore than 70 companies including Google, BearingPoint, andJPMorgan Chase.

Upwardly GlobalRachel DillerManager, Employer Partnerships415-834-9902www.upwardlyglobal.netrachel@upwardlyglobal.org

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C h a p t e r

22 Volunteer on Your Terms

One Brick: Dave Shefferman

After the dotcom bust, Dave Shefferman castabout for constructive things to do whileunemployed. He tried volunteering and quicklyrealized that the work uplifted him. He was ableto get friends to volunteer too. It was a way toengage in no-frills social activity and then go forpizza and beer.

In June 2001, Dave, Brian Gee, and CharlotteRayne were volunteering at the San FranciscoFood Bank. The trio recognized that while manynonprofits need volunteers and many people areinterested in volunteering, there are still barriersthat prevent people from actually stepping upand getting involved.

They created a volunteer network that isorganized around done-in-a-day volunteerprojects rather than long-term commitments. Atvolunteer events, they put name tags on thevolunteers, give them a chance to meet oneanother, and create a social experience insteadof a “volunteer chore.” By offering one-offprojects, One Brick enables people to getinvolved, have an impact, and have fun withoutthe requirements of individual long-termcommitments.

120 Chapter 22: Volunteer on Your Terms

The “commitment-free volunteering” allows individuals to choosewhen, where, and with whom they volunteer. Whereas nonprofits oftenexpect volunteers to make commitments for a certain number ofvolunteer hours or to agree to be available every week at a specifictime, One Brick is more nimble and able to meet diverse needs as theyarise.

One Brick began to build its pool of volunteers by posting ads onCraigslist: “Come and help out the community.” People got involvedand brought others with them.

The organization hit a critical mass in San Francisco in no time. Ninemonths after founding One Brick, San Francisco, they launchedchapters in New York and then in Chicago and Washington DC. Theyare building a franchise of sorts and expect to continue expanding andto share best practices from chapter to chapter. Each chapter has itsunique characteristics, but the overall volunteer experience will be thesame from one chapter to another.

For the first five years, One Brick was 100% volunteer run. Theorganization operated on less than $10,000 a year until the fourth year,when its budget increased to $35,000. With the expansion into fourcities, and plans for more, One Brick has decided to add their first,part-time Executive Director.

By structuring the organization to be run by volunteers, One Brickdelivers an hour of volunteer labor for less than $3. By contrast,Independent Sector estimated that the value of an hour of volunteertime was $18.77 in 2006.

One Brick not only offers a way for busy employees to engage involunteer activity but also provides companies with an opportunity tosupplement their employees' contributions with matching donations,say $5, $10 or $20 an hour for each hour of volunteer time. A fewcompanies, including Amgen, Gap, CitiBank, and Wells Fargo, havesuch matching programs.


Today, One Brick has a web site with a calendar of the volunteeractivities within each of the cities in which they operate. By mid 2007,One Brick's volunteers had helped more than 500 organizations anddelivered over 110,000 hours to the communities served.

One Brickwww.OneBrick.orgSan Francisco [email protected] York [email protected] [email protected] DC [email protected] [email protected]

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C h a p t e r

23 Contribute to Global Peace and Well-Being

The Dalai Lama Foundation: Tony Hoeber

Tony Hoeber is a user interface designer whohas 25 years' experience working at startupcompanies in Silicon Valley. In 2000, at theheight of the dotcom boom, he read a New YorkTimes article that portrayed the area aspopulated by thousands of engineers whopursued dreams of fabulous wealth with asingle-minded passion. The implication was thatSilicon Valley had not yet developed a broadersense of culture or community.

As someone who had grown up in the area andalso had come to love and appreciate its vibrantbusiness culture, Hoeber decided to prove theNew York Times wrong. He figured that with somany people finding themselves suddenlywealthy at a young age, many would begin tolook for new ways to create a sense of challengeand meaning in their lives.

He learned that a local group had invited theDalai Lama to come to the Bay Area in May 2001and contacted the organizer of the event. Theytalked about bringing the Dalai Lama togetherwith Silicon Valley leaders, an event that mightdirect some of the “can do” Silicon Valley spiritand expertise toward the social benefit sector.

124 Chapter 23: Contribute to Global Peace and Well-Being

Tenzin Tethong, a Palo Alto resident who worked closely with the DalaiLama for several decades and had recently stepped down from hisposition as the head of the Tibetan Government in Exile, responded tothis idea by saying, “You could arrange a one-off luncheon with SiliconValley leaders, but why not aim higher and do something that wouldhave a more sustained effect?”

Tethong had close connections to a number of scholars, artists andactivists who had worked with the Dalai Lama for many years, and theymet with Silicon Valley entrepreneurs to explore options. The idea ofcreating a foundation resulted, even though serious questions wereraised about the wisdom and appropriateness of forming such afoundation and of asking for permission to use the name of the DalaiLama. Finally, after much discussion, the group decided that the riskswere outweighed by the good that could come out of the effort. Theyapproached the Dalai Lama, who gave the green light.

The focus of the Dalai Lama Foundation is education for ethics andpeace. The Foundation is international in scope, with a growingnetwork of national chapters that includes Japan, Canada, Russia andNigeria. All programs are initiated by individuals who have an idea, aremotivated by a desire to share, and are willing to act on their dreams.Examples of ongoing programs include the following:

• In 2002 a small group of friends began meeting at the home of LosAltos resident Karen Jacke to discuss the Dalai Lama's book Ethicsfor the New Millennium. After completing the book they decided toproduce a study guide for others to use. The study guide was madeavailable on the Dalai Lama Foundation's website, and soon otherstudy circles formed. Now the guide is available in English,Japanese, Chinese, Spanish and Portuguese and is used by morethan 20 study circles around the world.

• Palo Alto resident Darlene Markovich, President of the Committeeof 100 for Tibet, had the idea of asking artists to create worksinspired by the life of the Dalai Lama. She got on the phone, andevery artist she called responded with an enthusiastic “Yes.”Markovich, a former Human Resources executive at Alza Corp.,put together a group of volunteers, and together they created amajor art exhibition featuring works from 88 artists whorepresented more than 25 countries. The Missing Peace—Artists


Consider the Dalai Lama had its premier in 2006 at the FowlerMuseum at UCLA, continued on to Chicago and New York, and willtour internationally for the next several years. The Dalai LamaFoundation has developed curriculum materials based on theexhibition for both middle school and high school students.

• Portola Valley resident and filmmaker Randy Taran dreamed ofbringing children around the world together through the medium ofvideo. She began working with the Foundation in 2003 and is nowthe director of Project Happiness, a collaborative initiative involvinghigh school students from the United States, India and Nigeria whoare engaged in a year-long exploration of the question “What ishappiness?” In the summer of 2007, they completed the firstversion of a curriculum that will be shared with schools andteachers around the world.

Dalai Lama Foundation projects are approved in advance and must fallwithin the broad area of education for ethics, peace, altruism andcompassion. Explicitly political or religious projects do not qualify forconsideration. The Foundation can provide only limited financialsupport but can offer support in other ways, including organizationaldevelopment, technical support, introductions to potentialcollaborators and supporters, and promotion via the Foundation'swebsite and newsletter. Tax-deductible donations to the Foundationare used to strengthen outreach so that increasing numbers of socialentrepreneurs can launch projects for peace.

Tony Hoeber, Board MemberThe Dalai Lama Foundation61 Renato Court #24 Redwood City, CA 94061 USA 650-368-4435www.dalailamafoundation.org

126 Chapter 23: Contribute to Global Peace and Well-Being


C h a p t e r

24 Good Capital: Invest in Social Enterprise

Right Reality: David Batstone

David Batstone is President of Right Reality andauthor of “Saving the Corporate Soul.” In 2007,he published “Not for Sale: The Return of theGlobal Slave Trade and How We Can Fight It,”and launched an international campaign to fighthuman trafficking.

Most of us who consider ourselves world-changers place our personal financial assets intotwo buckets: investment capital and philan-thropy. Investment capital includes money thatwe put into real estate, pension funds, stocks,bonds, and the like. When we make theseinvestments, we weigh the risk and the potentialreward and balance the two to maximize return.Then we set aside philanthropy dollars to donateto those organizations that we believe in andhope can make a difference. Typically, wedonate our money with a completely different setof criteria from what we use to invest.

A third category of personal asset managementis emerging, and it blends our concept ofinvestment capital and philanthropic giving. Onthe cutting edge of this trend sits Good Capital, afund management firm increasing the flow ofcapital to good by blending investment,business, and philanthropy.

128 Chapter 24: Good Capital: Invest in Social Enterprise

Good Capital is raising a $30 million Social Enterprise Expansion Fundthis year to make investments in about a dozen for-profit and nonprofitsocial enterprises. It offers a financial return to investors who want tofund social change and are willing to sacrifice conventional market rateyields to do so.

The three principals behind the fund have solid backgrounds in socialenterprise. Timothy Freundlich is the director of strategic initiatives forCalvert Social Investment Foundation (which is interested in GoodCapital for its R&D value and has given Freundlich license to grow theenterprise while he keeps his Calvert post). Kevin Jones is a serialentrepreneur who is best known for founding Net Market Makers andwho has also been on the boards of Social Venture PartnersInternational and Social Enterprise Alliance. Joy Anderson, presidentof Criterion Ventures, has worked for over a decade to launch socialpurpose ventures.

Anderson does not shy away from the unique features of a risk capitalsocial enterprise fund. “Doing good often costs something,” she says.For that reason, Good Capital does not promise its investors returnsexpected by traditional venture funds. Nevertheless, the fund is lookingto return principal plus an “appropriate return” to its subscribers. “Wewant to enable individuals to recycle their philanthropic gifts,”Anderson explains. She compares the fund favorably to theincreasingly popular microfinance funds that allow investors to see theimpact of their investment, and then watch it get recycled for ongoingvirtuous benefit. It also picks up where Calvert Community Investmentsleaves off.

Good Capital is on target to close $12 million in 2007, and will investthose funds immediately in a diverse portfolio. When asked the kind ofenterprises that will be the recipient of its funds, Freundlich points toEvergreen Lodge, a for-profit resort lodge located just outside ofYosemite National Park that places a priority on hiring at-risk lowincome youth. Evergreen is seeking a capital investment to replicate itssuccessful operations - it created nearly four million in revenue with anEBITDA of $1.1 in 2005 and grew those numbers in 2006, closing with$4.4 million with EBITDA of $1.35.


As the Evergreen Lodge example suggests, Good Capital targetsenterprises that are generating healthy revenue streams and offer asound business model that ensures the sustainability of theiroperation. But where Good Capital really diverges from the pack as aventure fund is its willingness to invest in nonprofits. Freundlichemphasizes that, at the moment, nonprofits have a hard time findingcapital to fuel their expansion plans because this is considered tooaudacious for most philanthropic foundations and too risky for debtfrom foundation program-related investments or social investmentcapital from funds like Calvert Community Investments.

An example of a nonprofit that Good Capital likely would fund,according to Freundlich, is Commonwealth Care Alliance, a nonprofithealth care system operating in several regions of Massachusetts. Itsmission is to provide personalized care to people with special healthcare needs, primarily low-income elderly populations. Commonwealthgenerated $12 million in revenue in 2005, with an EBITDA of $856,000.It is projecting a four-year revenue growth of 140%.

Investing in a nonprofit raises the obvious question: How will theinvestor ever see an exit? Good Capital expects to play the role of aniche merchant bank down the line, refinancing their positions tofoundations and/or private investors once much of the expansion riskhas been eliminated. “Admittedly, we're counting on a trend of maturityand adoption of new investment models in the philanthropiccommunity,” Freundlich says.

Good Capital is as much a symbol of a new wave of investment as it isa catalyst. Expect to see both individuals and investment funds blendtheir values with their asset management. “I expect to see this conceptof a ‘third pocket’ — as Anderson describes it — that blends savvyinvestment with passionate enterprise. I will have my market-yieldinvestments for personal security, philanthropic gifts to aid thevulnerable and urgent, and my social enterprise investments to buildsustainable institutions in the middle. If this third pocket proves viable,it would be a godsend to enterprises who use innovation to better theenvironment and social living.”

130 Chapter 24: Good Capital: Invest in Social Enterprise

David Batstone, Ph.D.President, Right Reality - www.RightReality.comAuthor, Saving the Corporate Soul (Jossey-Bass) & Not for Sale (HarperOne) Professor of Ethics, University of San FranciscoPresident, Not for Sale Campaign - www.NotforSaleCampaign.org


C h a p t e r

25 Become an Internet Philanthropist

Bring Light: Drew McManus

While working together at Adobe, MelissaDrydahl and Drew McManus were impressed byhow civic-minded and socially-conscious thenext generation (Generation Y - individuals whoare not yet 30 years old) appeared to be. Herewas an opportunity to inspire a new generation ofphilanthropy and to build a community of millionsof people who care about giving to charity.

BringLight.com was launched in May 2007 as adonation service where individuals can find acause they care about, dialogue with charities,and fund specific projects collaboratively. “Gen.Yers grew up with the Internet so why not use thetools they are accustomed to using in their everyday lives?” asks Drew McManus. “Through BringLight,” McManus says, “we provide on-line toolsfor non-profits to raise money for specificprojects and we provide tools for donors todiscover their causes and get others involved.”

Donation process is simple: Donors go to thewebsite and search for a specific cause theywish to support. Then they make a contributionvia credit card. Alternatively, they can establish aGiving Account, which allows the donor to setaside money to use for charitable causes.Contributions are immediately deposited in theBring Light Giving Account at the American

132 Chapter 25: Become an Internet Philanthropist

Endowment Foundation (AEF), which ensures that 100% of thedonation goes directly to the charities.

Charitable organizations not only get a tool to raise funds for specialprojects but also benefit from the creation of Giving Groups, formedwhen individuals invite their friends, family members and coworkers tocontribute to a particular cause. The Giving Groups magnify the impactof the charitable cause by giving the nonprofit organization a broaderbase of donors to market.

Bring Light is starting to work with companies to incorporate giving intothe organizations' culture in a fun way. For example: A company mayrally around a specific project to make a tangible difference or twodivisions within a company can hold a funding competition to help theircharity of choice.

Results for Bring Light are exceeding expectations. As of mid summer2007, 80 charitable organizations are listed on the website, anddonation traffic is increasing daily. “People are finding that it isaddicting,” says McManus. “They make small donations that can helpand it is a lot of fun.”

www.bringlight.com, 19925 Stevens Creek Blvd., Cupertino, CA 95014Drew McManus, President


C h a p t e r

26 Engage in One-on-One Philanthropy

Human Connexus Foundation: Cindy Campbelland Heather Connors

Cindy Campbell and Heather Connors havebeen best friends for over eight years and bothhave not only donated their personal financesbut have been actively involved in volunteeringand working with various charities. In theirexperience, the most successful nonprofitorganizations have some common characteris-tics: they were created with simple ideas bypeople who were passionate about their cause;they were founded on, and operated within, theircore values; and they provided tangible results todonors and volunteers. Campbell and Connorsbelieve that most people are looking for purposein their professional and personal lives and thatthey seek ways to give back to theircommunities. They have observed, however,that many are unsure of where to turn and whatsteps to take in order to make a difference and itis challenging to find time to research nonprofitsor charities that embody the qualities they seek.Understanding this, Campbell and Connorsdecided, in January 2007, to co-found their ownnonprofit called Human Connexus Foundation(HCN).

HCN is a customized donation service thatchannels charitable assistance from a personaldonor directly to an individual recipient. HCN is

134 Chapter 26: Engage in One-on-One Philanthropy

designed to allow a donor to give to a personally valued cause—forexample, homelessness, education, or health related issues—and inso doing, have a direct impact on the life of another individual.

After identifying a donor's personal philanthropic passion, HCNpresents profiles of individual recipients who have needs matching thedonor's cause. Tax-deductible contributions are made to HCN, whichgives all of the funds directly the recipient's vendors. The recipientreceives the benefit of the contribution through the vendor providingthe service or support - for example, HCN pays the recipient's monthlyrent directly to the landlord with the donor's funds.

Unlike typical practices, HCN's administrative and operational costsare separated from the donation and funded by personal and corporatesponsors. This allows 100% of the donation to go to the recipient withonly a separate administrative fee for the customized service.

Campbell and Connors appreciate how critical human connections areto realizing success and personal empowerment. Tangible results areseen by donors because recipients are required to provide updates toHCN, which communicates the recipient's progress periodically to thedonor. The continued follow-up by HCN creates recipientaccountability and offers them a greater chance for success. HCNbelieves that such one-on-one philanthropic connections will establishsustainable results and encourage future giving.

Human Connexus FoundationCindy Campbell, Co-founderHeather Connors, Co-founder1177 Branham Lane #325San Jose, CA 95118www.humanconnexus.org


C h a p t e r

27 Reuse and Recycle Surplus Items

iReuse LLC: Ken Kurtzig

Ken Kurtzig was inspired while having lunch at alocal taco shop that was paying a tremendousamount of money to dispose of their old cookingoil. Ken was familiar with biodiesel and knew thatthere were many people who could certainly usethe old vegetable oil for their vehicles, but it wastoo difficult to match the supply and demand.

He researched a myriad of other items and whathappened to them after they were no longerneeded. His discovery that reusable items likedesks, chairs, tables, computers, windows, carsupplies, toys, and children's gear were goingstraight to the landfill or in some cases beingshredded and then recycled, prompted thesimple question, “How do I make reuse easy?”

Kurtzig's desire to have fewer items go into alandfill spawned iReuse. Its Business Servicesdivision helps medium to large companies dealwith all their surplus material. iReuse managesinternal redistribution, sales, donation, recycling,and disposal (only as a last resort) to ensure thatas much material as possible is reused andmanaged in the most cost-effective methodpossible.

136 Chapter 27: Reuse and Recycle Surplus Items

For example, a recent iReuse client, Pell Development Company,found themselves with a three-story 69,000 square foot office buildingchock full of perfectly usable office equipment left by their tenant. Theywere given an estimate of $40,000 to dismantle and dump everything.Out of frustration, they turned to iReuse to find out if there was a moresocially-responsible and cost-effective way to handle the material.iReuse was able to sell and donate 93% of the office equipment. Anadditional 4% was recycled and 3% was disposed. This translated to89 tons being reused. Instead of paying to dump the material, Pellreceived a $9,000 check and $100,000 in tax receipts.

With clients like Charles Schwab, Birkenstock, Adobe, PG&E, andAutodesk, iReuse now manages reuse programs for some of thelargest companies in the Bay Area. Birkenstock was recently preparingto move its 150,000 square foot corporate headquarters anddistribution facilities for the first time in almost 40 years. They hirediReuse to coordinate an internal sale to employees and then tomanage the sale, donation, reuse, recycling and disposal of allremaining surplus materials. A corporate client like Birkenstock isgiven an iReuse account manager as the lead after the initialconsultation. iReuse provides full reporting on every project, so clientscan communicate back to their employees and the public with tangibledata on their sustainability efforts.

Through iReuse, a client is connected to a network of buyers.Birkenstock had some heavy equipment from their warehouse that wassold through iReuse channels. iReuse also works with nonprofits andsmall businesses to maintain a database of wish lists. Autodesk, forexample, has been able to donate excess office furniture andequipment to over 30 local nonprofits through iReuse's network ofnonprofits.

The sales and donations sometimes go to some unlikely places, suchas a police station that would not have the funds for a slightly-used$500 ergonomic chair. iReuse even donated to hospice patientsthousands of dollars worth of wedding flowers that were destined forthe trash.


In addition to corporate clients, iReuse works with the EnvironmentalProtection Agency (EPA). With the EPA, iReuse tracks how muchgreenhouse gases are decreased because surplus materials are notgoing into a landfill. In addition, when material is reused, there is lessdemand for natural resources to produce new products.

iReuse headquarters are in Marin County, and the company currentlyserves the entire San Francisco Bay Area. There is a new office in LosAngeles, and iReuse plans to roll out several other offices in Californiabefore the end of 2007, and to expand nationally the following year.

iReuse Performance September 2005 - mid 2007 Total reuse: 1,373,157 pounds Total recycling: 183,159 poundsGreenhouse gases eliminated: 3,166.22 metric tons

iReuse LLC500 Tamal Plaza, Suite 520Corte Madera, CA 94925888-IREUSE-1www.ireuse.com

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C h a p t e r

28 Promote Economic Independence

Kiva Microfunds: Premal Shah

During his six-year career at PayPal, PremalShah drove a number of key initiatives, includinga year-long project defining eBay's role ineconomically empowering the global workingpoor. After asking himself, “Do I really matter?”he requested and received a sabbatical thatallowed him to test his theories about the viabilityof microfinance. Shah thought it would be “cool”to lend to the poor online, and while researchingthe field of microfinance, he discovered that MattFlannery was working on the same thing inAfrica. They joined forces and started KivaMicrofunds, designed to help the world's workingpoor make great strides toward economicindependence.

People make loans to small businesses in thedeveloping world by choosing to sponsor abusiness highlighted on the Kiva website.Throughout the course of the loan (usually 6-12months), donors receive email updates from thesponsored business, and as loans are repaid,they can get their loan money back or decide toreinvest.

140 Chapter 28: Promote Economic Independence

Kiva relies on microfinance companies (field partners) in developingcountries to assist in their business model. Currently, 57 microfinancecompanies in over 30 developing countries are on the groundscreening entrepreneurs, taking photos, and administering the loans.

Thanks to rapidly growing awareness, Kiva is expanding by 30% amonth. Fourteen thousand micro-businesses have been started in 36countries by over 80,000 Americans on the Internet, all using Kiva.

Letty Cantos in Guayaquil, Ecuador, is an example of a micro businesssupported by an American using Kiva.

Letty owns a carpentry and furniture-making business, EbanisteriaTito. While she was living with her husband at his mother's house,she learned the business from her brother-in-law. When he left tostart his own business on the other side of the city, Letty bought allof the equipment from him so she could run the business herself.She hired two workers and brought her husband into the businessto help her as well. She knows the trade well, although most of herjob entails purchasing the materials and finding buyers for thefinished product.Letty needed a loan in order to buy a tool that would allow her togive her products a more professional finish. She hoped that withthis investment she could improve the quality of her work andincrease sales. Through Kiva, she received a loan for about $500.Letty was able to buy the tool that she needed for her workshopand had money left over to invest in wood and other materials. Herability to increase the quality and quantity of her work has madeher products very popular in the area and even in other areas onthe Ecuadorian coast.

Corporate sponsorship and strategic philanthropy are importantsources of support for Kiva. eBay and PayPal were involved whenShah founded Kiva, and they have continued to support his efforts withfree payment processing. Advanta credit card is also a supporter,donating 1% of revenues to Kiva.


Lenovo, a Hong Kong based company, has donated 30 laptopcomputers so that Kiva can increase the number of its field partners.Lenovo has also contributed generously for research and developmentand has further expanded its giving to Kiva by involving employees inthe giving process. Each employee receives a “Kiva bucks” giftcertificate, connected to their periodic bonus and compensation plan,and uses it to sponsor a business abroad. Lenovo has about 30,000employees, so this is a huge contribution.

Kiva is just the beginning. Recently Shah co-founded the Silicon ValleyMicrofinance Network which is a grass roots microfinance organizationfor people interested in learning about microfinance and micro credit(www.svmn.net). He continues to work to refine Kiva.org's model ofperson to person micro-lending. In 2006, Premal was a featuredspeaker at the Clinton Global Initiative and Global Micro CreditSummit.

Kiva Microfunds2180 Bryant St. Suite 106San Francisco, CA 94110www.kiva.org

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C h a p t e r

29 Help Nonprofits with their Training Needs

Community Outreach Program: Kris Schaffer

Training professionals have found a way toprovide community service by working throughtheir local associations. The Golden GateChapter of the American Society for Training andDevelopment (ASTD) is one of the oldest andlargest chapters in the nation. In 1976 itsmembers started the Community Development &Training Project, a grassroots program to providetraining services to small nonprofit organizations.

The Community Project later merged withCompassPoint, leaving the Golden Gate Chapterwithout a community service group. To fill thatgap, members created the Community OutreachProgram (COP). COP serves small Bay Areanonprofits with custom learning solutions to meettheir specific training needs. Workshops areconducted on site, solely for nonprofitorganizations, and are designed to improve theireffectiveness and soft skills.

COP trainers are members of the Golden GateChapter and volunteer their services. Some haveextensive professional expertise, while othersare less experienced. All work in teams lead by apro.

144 Chapter 29: Help Nonprofits with their Training Needs

Volunteers meet with nonprofits seeking help and perform a front-endneeds analysis to determine whether COP will be able to provide thetraining needed. If COP can help, two volunteers with backgrounds thatfit the issues are assigned to the nonprofit. They conductdata-gathering meetings with the organization in order to learn thespecial needs of the group, develop a customized training solution, andthen conduct a workshop. The entire organization gets trained at thesame time so that everyone receives a consistent message. COPworkshops cover topics such as management, supervision, diversity,conflict resolution, and customer service.

COP has worked with many local organizations. For example, theyhave helped CompuMentor design their own PC training; usedAppreciative Inquiry to help Habitot Children's Museum with their reor-ganization; and trained management at the Bay Area Ridge TrailCouncil. Volunteers enjoy working with nonprofits whose advocacymatches their own interests.

The Golden Gate Chapter sees an enthusiasm for community service,and the COP trainers are able to validate their mastery and use theirprofessional skills to give back. Partnering on a COP project helpsbuild mentoring relationships and provides sole practitioners with anopportunity to collaborate with others. The program also providesin-service training to its own volunteers in order to further their skills infront-end analysis and the design and development of training.

Companies can help COP through sponsorships or by providing in-kindservices such as workshop facilities and other business-relatedservices. Also, HR professionals on staff can volunteer to be a trainerwith COP.

Kris SchaefferCOP Outreach Manager415-474-0618www.astdgoldengate.org/03_getinvolved/[email protected]


C h a p t e r

30 Support Collaborative Solutions to Conflict

Search for Common Ground: Jane Shaw

Search for Common Ground (SFCG) wasfounded 25 years ago by John Marks, presidentof the organization. It was the height of the ColdWar, and SFCG focused then on building bridgesbetween East and West. The world is a differentplace today, but there is still a tremendousamount of work to be done to bring togetherpeople from different beliefs and positions. Themission of SFCG—to transform the way theworld deals with conflict, away from adversarialapproaches to collaborative solutions—is asrelevant today as 25 years ago, perhaps evenmore so. The current problems facing us,whether ethnic, environmental or economic, aresimply too complex and interconnected to besettled on an adversarial basis.

Currently, SFCG is represented on fourcontinents with programs in 17 countries:Angola, Burundi, DR of Congo, Guinea,Indonesia, Ivory Coast, Iran, Liberia, Macedonia,Middle East (offices in Jordan and Jerusalem),Morocco, Nepal, Nigeria, Sierra Leone, Ukraine,and USA.

One of the key features of SFCG's work,whatever the issue, is to bring everyone to thetable. Media is a powerful way to do this, and

146 Chapter 30: Support Collaborative Solutions to Conflict

over the years SFCG has become well known for its work with media;for example, radio in many parts of Africa and television in the MiddleEast. In Sierra Leone, a country recovering and healing from 11 yearsof bloody civil war, SFCG's local studio has an 89% listening rate overthe whole country. SFCG plays an important role in encouraging theuse of “common ground” journalism to counter the dangerous polaritiesthat can be caused by biased reporting.

SFCG encourages the involvement of young people, and its Child andYouth Program works in many countries to encourage young people tounderstand and promote the common ground approach from an earlyage. It is very important to give young people an equal platform in therebuilding process.

To take a stand to deal with conflict by finding peaceful solutions,organizations and individuals have several options:

Become a Common Ground partner. SFCG is funded bygovernments, foundations, and many, many individuals - at alldifferent levels. Just as the organization works to bring together allparties involved in conflict, SFCG also works to gain funding frommany different groups.

Take part in a Common Ground workshop. Everyone canchoose to deal with conflicts in their lives in a way that allows “theother” to be heard and respected. The Common Ground Approachworkshop teaches simple principles and practices that are asappropriate to us in our daily lives as they are in the villages ofWest Africa. You can bring the workshop to your company.

Join an investor trip. SFCG leads trips to West Africa or Nepal sofinancial partners can see the organization's work. Investors go ina spirit of partnership and learn from the people on the ground whoundertake the ongoing work to transform conflict and bring about asustained peace. The trip in Nepal in particular is designed toenhance corporate leadership skills. These trips are life-alteringexperiences.


Host a Common Ground event. The common ground approachneeds to be widely known and understood, so it makes sense tospread the word far and wide. One way to do this is to invite othersto learn about SFCG's work by attending an introductory event heldat work or at home.

Attend SFCG's annual fundraising events in New York andSan Francisco. The Common Ground Awards Ceremonycelebrates and honors Common Ground heroes. In 2007 theheroes include TV Talk show host, Charlie Rose; CanadianSenator Romeo Dallaire, former General of the UN PeacekeepingMission in Rwanda; and Ishmael Beah, author of Long Way Gone.The annual fundraising event in San Francisco will be a brunch onDecember 1, 2007 at the St. Francis Yacht Club. This event is freeof charge - and everyone will be asked to become a financialinvestor. Individuals or companies can choose to be a table captainand invite others to fill a table of 10 people.

SFCG provides the opportunity to join the many thousands of heroesaround the world who are taking a stand to deal with conflict by findingpeaceful solutions, even in the most difficult circumstances.

Search For Common GroundJane S. ShawDirector of Individual Giving415-331-3123www.sfcg.org

148 Chapter 30: Support Collaborative Solutions to Conflict


C h a p t e r

31 Find Core Competitive Advantage

ATDynamics, Inc.: Andrew Smith

Andrew Forrest Smith is an entrepreneur andbusiness strategy consultant who has argued forover a decade that the “greatest marketopportunity facing our generation is makingeverything we do, sell or buy more environmen-tally sustainable.” He compares the need forcompanies to develop a Corporate SocialResponsibility (CSR) strategy to the requirementfor companies to develop an IT strategy duringthe dot-com boom. “The question for businessleaders,” he says, “is no longer whether or not toaddress environmental or social issues. Thequestion now is to what extent your company willbe able to leverage CSR as a key competitiveadvantage.”

Smith formed ATDynamics after years ofrecognizing the enormous opportunity of envi-ronmentally-sustainable business. ATDynamicsis an example of the number of ways thatbusiness can profit from creating a product thathas a reduced environmental impact.ATDynamics is commercializing aerodynamicdevices for tractor-trailers with the potential toreduce the trucking industry's fuel consumptionby millions of gallons annually.

150 Chapter 31: Find Core Competitive Advantage

Although still in its start-up phase, Smith designed the company fromthe ground up to sell products with positive environmental impact,attract a passionate workforce and demonstrate a zero-wastemanufacturing, distribution and reclamation process. The flagshipTrailerTail™ product will save typical fleet operator customers$2,000-$3,000 per year per trailer while reducing national oildependency and carbon emissions. The TrailerTail™ is a four-footextension off the back of a trailer which functions by reducing the lowpressure created at the tail end of a tractor-trailer moving at highwayspeeds. The company has attracted employees and investors who seethe opportunity to apply innovative thinking in an industry traditionallyvery resistant to change. ATDynamics is actively screening thematerials it uses for its aerodynamic devices to reach its 95%recyclability goals. In addition, the company is designing anATDynamics Lifecycle Program™ where customers have an easymethod for upgrading, replacing or disposing of ATDynamics products.

Smith has seen what happens when a company's incentive system ismisaligned with global CSR objectives. In both 2001 and 2005 he ledexpeditions to the Arctic National Wildlife Refuge (ANWR) inNortheastern Alaska, where he witnessed the annual migration of120,000 caribou across the Arctic Tundra as well as the retreating iceof the Arctic Ocean due to global warming. This firsthand knowledge ofANWR's tremendous value as a nationally-protected wildlife refugepiqued Smith's curiosity about the oil industry's efforts to open therefuge to oil development.

Although the oil industry argued that drilling for oil in ANWR wasessential to keep fuel prices low and maintain national security, Smith'sresearch found otherwise. “In reality, the debate around the ArcticRefuge was fundamentally a human resources problem. Workers inthe oil services industry feared what would happen to their jobs withoutan economy that depended on ongoing fossil fuel extraction. Thedebate about opening the Arctic Refuge to oil drilling will disappear themoment the talented labor pool trained in oil extraction can beredeployed to more socially responsible job positions.”

The biggest challenge and opportunity for companies, even in the oilindustry, is to realign incentive systems such that alternatives to theleast environmentally-beneficial activities of the economy can bedeveloped quickly.


Smith makes the point that all companies must adopt CSR to someextent. Some companies will do it core to their business, such asATDynamics. Others will be slower to adapt to the changing businessclimate. The companies which are slowest to respond are those whoseinternal incentives are misaligned with the greater good of society. Theexecutives of the Detroit auto companies feared the financial costs andprofessional risk involved with re-designing their factories and productlines to produce fuel efficient cars. Therefore, no new cars weredeveloped and the companies are now facing bankruptcy. Likewise,job security and high incomes in northern Alaska depend on oilcompanies continuing to drill oil. The companies and individualsinvolved with these industries therefore have the incentives in place todiscredit global warming, encourage national dependence on fuelinefficient cars and open up every last acre of Alaska to oil drilling.Eventually the oil wells will go dry in Northern Alaska. The oil servicecompanies which address negative incentive systems and issues ofCSR earlier will have the advantage in adapting to a world whichrequires cleaner energy.

Providing clear incentives in non sustainable industries will speedstakeholders towards creating sustainable products and adoptingsocially responsible, competitive, business practices.

Advanced Transit Dynamics, Inc.Andrew F. Smith, [email protected]

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C h a p t e r

32 Empower WomenEntwine Global: Almaz Negash

Almaz Negash is the principal and founder ofEntwine Global. She focuses on internationaltrade, economic development, and theempowerment of women. She also speaks toorganizations about women's economic rights,sustainability, cultural and ethical awareness andthe needs of emerging women leaders indeveloping countries.

Almaz Negash's early childhood in a well-to-do,northern East African family was tranquil. Butthen her homeland, Asmara, Eritrea, wasplunged into war with Ethiopia. Her life wastransformed; she grew accustomed to livingwithout her siblings, who had been sent to liveabroad, in a tense atmosphere of hide and seek.This experience planted the seeds of Negash'sdeep commitment to justice and to her drive tocreate opportunities for those who still live insurvival mode.

In 2003, Negash was asked to develop the globalleadership and ethics program for the MarkkulaCenter at Santa Clara University. The purpose ofthe program is to bring former heads of state toSanta Clara University in order to speak aboutglobal and ethical issues. In one year, shehosted more than 20 former heads of state. “Weaddressed issues related to HIV, children'seducation, human rights and human responsibil-

154 Chapter 32: Empower Women

ity,” she said. “We invited Silicon Valley community and businessleaders to participate in the dialogue.” The events created awarenessand led to the development of a curriculum on the ethics ofglobalization so future students would have access to the wisdom ofthe powerful group. In addition, Negash managed the Architect ofPeace project (www.scu.edu/ethics/architectofpeace.org), aneducational module for faculty and students on 75 individualpeacemakers and the process of peacemaking.

Negash helps for-profit and not-for-profit organizations to collaborate increating strategic plans that contribute to the social, economic, andcultural infrastructure of the societies in which the organizationsoperate. For example, she facilitated a joint venture between thegovernment of Eritrea and Seawater Farms to developseawater-based farming, creating a sustainable community wheremore than 200 women were hired to work at the farm.

Negash is especially interested in the relationship between women'seconomic empowerment, education and poverty reduction. “Womenrepresent half the world's population,” she said, “and gender inequalityexists in every nation on the planet. To discriminate and prevent half ofhumanity from reaching its full potential is economic folly. Denyingwomen’s and girls' equality and fairness not only hurts them, but alsohinders the rest of society.”

“Women in countries like Kenya and Ghana are responsible for morethan 50% of the work, but less than 5% of the money comes back tothem,” said Negash. “If you don't support the women, povertycontinues. A woman is the head of the house and takes care of thechildren. When the mother is poor, naturally the children are poor.”Negash uses Cisco's Networking Academy as her model—indeveloping countries, the policy is to have a high percentage of womenparticipate in programs.

From Negash's perspective, there must be a concerted action toeducate women, to give them equal access to credit, and to empowerthem, all within the context of promoting greater community,environment, and societal sustainability.

Almaz NegashEntwine [email protected]


C h a p t e r

33 Raises Living Standards

Village Enterprise Fund: Nicholas Imparato

Nicholas Imparato is a member of the OperatingCommittee at Village Enterprise Fund. He is alsoa Professor in the Department of Marketing,Globalization and Strategy, School of Businessand Administration at USF, and a research fellowat the Hoover Institution, Stanford University.

Nicholas Imparato joined the OperatingCommittee for the Village Enterprise Fund (VEF)“after recognizing the potential in the group'sunique entrepreneurial model, one that couldprovide assistance to the poorest of the poor ona large scale.”

Village Enterprise Fund fills a unique niche in themicrofinance field by seeding startups andagricultural ventures in rural East Africa. Itprovides business training (using its owninnovative teaching methods), initial capital andongoing mentoring to entrepreneurs in Tanzania,Kenya and Uganda.

While the United Nations considers income lessthan $2.00 a day below the poverty level, muchof the rural population that VEF targets lives onless than fifty cents per day. Since 1987, it hashelped start more than 14,000 new businessesand improve the standard of living of more than

156 Chapter 33: Raises Living Standards

350,000 people. “The excitement these numbers generate isheightened when you think about what could happen if the VEFmethodology were extended to other areas of high need,” saysImparato.

Typical VEF businesses include vegetable kiosks, roadside cafes,bicycle repair shops, animal husbandry and small farms for cash crops.The entrepreneurs behind these businesses are largely ignored bytraditional micro lending organizations because they are either riskaverse and reluctant to take on debt or, often times, they simply can'tmeet repayment requirements. Consequently, VEF provides grants,not loans, of $100 or $150 to each business group of five individuals.

VEF has 90 talented, local African volunteers who comprise its networkof Volunteer Field Coordinators and who provide training andmentoring for each business. In each country there is a small paidAfrican staff that supports the volunteers by making recommendations,solving problems and supplying such tangible resources as trainingmaterials and transportation.

Business organizations that pursue a multifaceted CSR strategy havesupported VEF efforts with company-wide initiatives. Hewlett-Pack-ard's Micro-enterprise Development Program is one example. HP also,along with other companies such as Morgan Stanley, eBay andGoogle, has employee match programs that benefit VEF and othersmall NGOs. In 2006, for example, more than 7,700 HP employeesparticipated in HP's community investment programs, contributing$14.8 million in cash and products. Small, yet effective, service NGOscould not survive without contributions of this sort.

Private sector support is contingent, of course, on evidence of programeffectiveness. A recent impact evaluation of VEF businesses showedthat each of its small grants, combined with business training andmentoring, raises the standard of living of at least 25 people. Localentrepreneurs are able to improve their lives by increasing the quantityand quality of meals they eat, living in sturdier homes, getting accessto the medical care they need and sending their children to schoolsthey otherwise could not afford.


Other performance data are also enviable: 88% of VEF businessesoperate beyond one year. More than 75% are still operating four yearsafter the initial, and usually only, grant. Just as impressive, one-third ofVEF's beneficiaries launch second businesses.

Imparato noted that “confidence and credibility bestowed by otherbetter known organizations help boost VEF's brand and effectiveness.”This year, at the invitation of the Jane Goodall Institute, VEF begandelivering programs to villages surrounding conservation areas inUganda. The reputation of the institute and its founder bring more thancachet to the VEF effort. They expand aid opportunities to areas thatwere not reached before.

The contributions of individual business executives and, increasingly,their firms, make the efforts of VEF and similar organizations possible.Besides financial and human resources, they offer the moral supportthat both volunteers and paid staff value. They share the recognitionthat profit making organizations, with the support of their shareholdersand other constituencies, can collaborate with others to raise livingstandards in regions that have been among the worlds most neglectedand abused.

Nicholas Imparato - Professor, Department of Marketing, Globalizationand Strategy, School of Business and Management, University of SanFrancisco; Research Fellow, Hoover Institution, Stanford University;Operations Committee, Village Enterprise [email protected]; [email protected] Enterprise Fund: www.villageef.org

158 Chapter 33: Raises Living Standards

Part VThe Human Resources Leadership Role in CSR

• Corporate Social Responsibility: HR's Leadership Role—Society for Human Resource Management (SHRM): Nancy Lockwood


C h a p t e r

34 Corporate Social Responsibility: HR's Leadership Role

Society for Human Resource Management(SHRM): Nancy Lockwood

Introduction

Today, there are many references to corporatesocial responsibility (CSR), sometimes referredto as corporate citizenship5, in our workplaces, inthe media, in the government, in ourcommunities. While there is no agreed-upondefinition, the World Business Council forSustainable Development defines CSR as thebusiness commitment and contribution to thequality of life of employees, their families and thelocal community and society overall to supportsustainable economic development.6 Simply put,the business case for CSR—establishing apositive company reputation and brand in thepublic eye through good work that yields acompetitive edge while at the same timecontributing to others—demands that organiza-tions shift from solely focusing on making a profitto including financial, environmental and social

5. Muirhead, S. A., Bennett, C. J., Berenbeim, R. E., Kao, A., & Vidal, D. J. (2002). Corporate citizenship in the new century: Accountability, transparency, and global stakeholder engagement. New York: The Conference Board, Inc.

6. World Business Council for Sustainable Development. (2000, January). Corporate social responsibility: Making good business sense. Conches-Geneva, Switzerland: Author.

162 Chapter 34: Corporate Social Responsibility: HR's Leadership Role

responsibility in their core business strategies. Despite what thephrase corporate social responsibility suggests, the concept is notrestricted to corporations but rather is intended for most types oforganizations, such as associations, labor unions, organizations thatserve the community for scientific, educational, artistic, public health orcharitable purposes, and governmental agencies.

In the late 1990s, CSR began to gain momentum as pressure fromconsumers, the media, activists and various public organizationsdemanded that companies contribute to society. In large part, theincreasing focus on CSR has been fueled by a number of events inrecent years, such as the highly publicized financial scandals of Enronand WorldCom, alleged sweatshop labor by retail clothing and sportsshoe manufacturers and the alleged “under-the-table” deals thatcompanies such as Halliburton have received. Now, reputation, brand,integrity and trust are increasingly considered important measures ofcorporate social responsibility.

CSR in the Business Community

Worldwide, companies and their HR leadership are coming to gripswith what exactly CSR means in their organizations and how tostrategically include CSR within business goals and objectives. Thereis growing evidence pointing to the validity of and the demand for CSR.For example, 82% of companies noted that good corporate citizenshiphelps the bottom line and 74% said the public has the right to expectgood corporate citizenship.7 However, as Niall FitzGerald, chairman ofUnilever, explained in his presentation at the London Business School,“the reality of corporate social responsibility is there are no precedentsto fall back on, and decisions must be based on judgment rather thantried and tested formulae.” 8

7. The Center for Corporate Citizenship at Boston College and The U.S. Chamber of Commerce Center for Corporate Citizenship. (2004). The state of corporate citizenship in the U.S.: A view from inside 2003-2004. Chestnut Hill, MA: Author.

8. Unilever. (2004). A perspective on corporate social responsibility in the 21st century. [Based on a speech by Niall FitzGerald, Unilever chairman, “CSR: Rebuilding Trust in Business,” pp. 2-3. Distinguished Speaker Series, London Business School.] London: Author.


As the concept of CSR becomes more widely accepted and integratedin business, it is helpful in this discussion to understand that thedevelopment of CSR in organizations is in transition (see Figure 1).There are basically three “generations” of CSR in varying stages of so-phistication. The first generation has demonstrated that companies cancontribute to society without risking commercial success. Today, thesecond generation is developing more fully as CSR gradually becomesan integral part of companies' long-term business strategies. Finally,the third generation addresses significant societal issues, such aspoverty and cleanup of the environment.9 Evidence of the transition ofCSR will be discussed throughout this article, with suggestions of howHR professionals can take on leadership roles that can contribute toCSR initiatives in their organizations. The article will also highlightsome examples of the impact of CSR and how it may link to the bottomline.

Making the Business Case for CSR

In recent years, intangible assets—company values, human andintellectual capital, reputation and brand equity—have becomeincreasingly important to organizations.10 Companies that exhibit goodcorporate citizenship are likely to gain a competitive edge. Below arejust a few examples of today's CSR success factors that are fastbecoming the primary measures of an organization's credibility.

9. Zadek, S. (2001). The civil corporation: The new economy of corporate citizenship. London: Earthscan

10. Low, J., & Kalafut, P. C. (2002). Invisible advantage: How intangibles are driving business performance. Cambridge, MA: Perseus Publishing


Reputation and Brand Enhancement: Company reputation andbrand are greatly influenced by public perception. For example, in thelargest global survey of the public's expectations, the Millennium Pollon Corporate Social Responsibility documented that over 25,000individuals across 23 countries on six continents revealed they formtheir impressions of companies by focusing on corporate citizenship,and two out of three people want companies to go beyond makingmoney and contribute to broader society goals.11 Increasingly, thereare success stories that show companies are listening to the public. Arecent example is that of Ecolab of St. Paul, Minnesota, that quicklydeveloped new products to address unexpected hazards with anantimicrobial disinfectant product in response to foot and mouthdisease in livestock and another new product to combat SARS at theToronto airport.12

Today, companies are also seeking avenues of public acknowledgmentof their employer brand. For example, Business Ethics CorporateSocial Responsibility Report publishes a list of the 100 best corporatecitizens. Companies are ranked by social scores regardingenvironment, community and customer relations, employeerelationships, and diversity. One of the 2004 winners was Proctor &Gamble, which donated funds to help disadvantaged youth in Vietnam,combat childhood malnutrition in India and provide earthquake relief inTurkey.13

Another critical aspect of reputation and brand, as a CSR successfactor, is the impact on a company's sustainability—that is, theconditions or characteristics that support an organization to continueits business, including environmental, social and economic aspects ofthe company. Ultimately, the environmental, social and economichealth of a company transfers into dollars that either directly orindirectly affect reputation and brand, and thus the bottom line. Forexample, a company whose product contributes to the safety of theenvironment will likely be favorably viewed by the public. Or, a

11. Environics International, Ltd., The Prince of Wales Business Leaders and The Conference Board. (1999). Millennium poll on corporate social responsibility: Executive briefing. Toronto, Canada: Author.

12. 2004: 100 best corporate citizens. (2004, Spring). Business Ethics Corporate Social Responsibility Report, 18, 1, 8-12.

13. Ibid


company that supports community events may generate publicapproval. Both examples may yield additional applications foremployment or employee referrals, thus potentially lowering the timeand cost per hire. The final CSR report card is directly linked to thecompany's sustainability and consequently influences critical successfactors such as reputation and brand.

Accountability and Transparency: Open, reliable and regularreporting of a company's performance—known as accountability andtransparency in CSR terminology—is quickly becoming a public issueand one that HR leaders will need to keep in the forefront (see Figure2). As a sign of the times, large companies are beginning to publishcompany information, once deemed as too sensitive to release, withexpectations for their suppliers and their internal human resourcespractices. However, few companies give robust performancemeasures, with fewer yet being independently verified.14 The clothingindustry, for example, has been criticized for how workers are treatedin factories in their supply chain. Setting an example, Gap, Inc.released its first Social Responsibility Report, emphasizing theorganization's commitment to working with key players to createindustry-wide change. It also took a proactive stance on employeetreatment by prohibiting child labor, forced labor and discrimination andprotecting freedom of association for workers.15

14. United Nations Industrial Development Organization. (2002). Corporate social responsibility: Implications for small and medium enterprises in developing countries. Vienna: Author.


Risk Management: Managing investor confidence is another factorsupporting the business case for CSR. Today, the financial communityis examining organizations' CSR report cards and their risk profile. Therapid rise of socially responsible investment illustrates that corporatecitizenship is becoming a key measure that investors consider whenaligning ethical concerns with publicly held corporations. For example,the Dow Jones Sustainability Indexes (www.tinyurl.com/2owb6j) trackthe financial performance of the leading sustainability-drivencompanies worldwide, and the Domini Social Investments(www.domini.com) screen companies for corporate citizenship,diversity, employee relations, non-U.S. impact, environmentalresponsibility and safe and useful products. In view of the increasingimportance placed on socially responsible investment, this is anopportunity for HR leaders to consider programs, such as communityevents, that may generate investor confidence linking CSR initiativesto the bottom line.

The Talent War: With the anticipated labor shortage in the next 10 to25 years, attracting, developing, motivating and retaining talent is, andwill continue to be, very important. Correspondingly, CSR influences acompany's competitive advantage today through two key value drivers:

1. Company reputation and brand; and 2. Human capital.

HR leaders have begun to assume leadership roles to address bothareas. For example, a positive CSR initiative was documented by anemployee survey that illustrated the pride of employees regarding theircompany's contribution to a local AIDS organization.

In addition, the talent war is evidenced by an influx of “best places towork” awards (e.g., Fortune magazine's “100 Best Companies to WorkFor,” www.fortune.com/fortune/fortune500). There are many suchprograms, located in communities and business organizations thathighlight the company and/or the HR professional. By applying for andwinning these awards, HR leaders can gain invaluable exposure for

15. Gap, Inc. (2004). Gap, Inc.: Social responsibility report, 2003. San Francisco: Author.


their organizations and use the award as a key feature in recruitingcampaigns. Thus, a strong argument for CSR is talent management inboth the short and the long term.

Challenges to the Business Case for CSR

The business case for CSR is not necessarily a simple one. Among thechallenges is that social and/or environmental impact differs acrossindustries, complicated by the fact that the term CSR has differentmeanings to different industry sectors in different parts of the globe.Also, some may question if the message CEOs communicate aboutCSR is an add-on or part of company core business activities—or is itmerely an insincere effort to boost public relations? In someorganizations, CSR is still considered to mean compliance andphilanthropy, although some large companies are now placing CSR ina more strategic framework.

Further, there is the question of how to measure CSR. For example, asurvey of 539 CEOs in 40 countries examined the strategic importanceof communication regarding corporate citizenship to investors. One ofthe largest obstacles noted was the lack of a rigorous, crediblebusiness case backed up by performance indicators and metrics thatcan be quantified and benchmarked.16 Further, investment in CSR isnot yet being taken seriously by some organizations. Only 30% ofexecutives said their company increased overall business investmentsin corporate citizenship in the last year. The same report indicatesresources and resistance as barriers to practicing corporate citizenshipand CSR.17

Not all organizations may have the resources (e.g., funds, time, staff)to funnel into CSR initiatives. However, CSR programs may not beexpensive or require a significant time commitment. Organizations thatare interested in CSR may choose to start with small projects that

16. World Economic Forum and The Prince of Wales International Business Leaders Forum. (2004). Values and value: Communicating the strategic importance of corporate citizenship to investors. Geneva, Switzerland: Author.

17. The Center for Corporate Citizenship at Boston College and The U.S. Chamber of Commerce Center for Corporate Citizenship. (2004). The state of corporate citizenship in the U.S.: A view from inside 2003-2004. Chestnut Hill, MA: Author.


showcase their commitment to their workforce and the community. HRleaders can help address this challenge by considering differentoptions and developing creative approaches to CSR to present to theircompany. Below are recommendations to consider:

• Network with other HR professionals to learn about theirorganizations' CSR initiatives (ideas and information aboutprograms; what worked and lessons learned).

• Explore partnering with other organizations (e.g., co-sponsor acommunity event).

• Contact local business organizations, such as the Chamber ofCommerce, to learn what events they sponsor and how thecompany may contribute.

• Solicit employee suggestions regarding CSR initiatives.

Thus, it is at this point that HR leadership, as the eyes and ears of theorganization, is key to the CSR equation. As discussed in the nextsection, HR has the opportunity, through well-managed programs,policies and practices, to engage the organization and its stakeholders(e.g., owners, employees, management, customers, creditors, thegovernment and other public organizations) in the value of CSR byfocusing on communications, employee relations, health, safety andcommunity relations to provide their organizations with a competitiveadvantage.

HR's Leadership Role

With company reputation, viability and sometimes survival at stake,one of the critical roles of HR leadership today is to spearhead thedevelopment and strategic implementation of CSR throughout theorganization and promote sound corporate citizenship. Attracting andretaining competent people is one of the primary business reasons forCSR.18 While strategically including CSR in the organization can beginfrom different points (e.g., product safety, the board of directors,

18. Olsen, L. (2004). Making corporate responsibility work: Lessons from real business [Executive Summary]. Ashridge Centre for Business and Society and the British Quality Foundation, www.acbas.com.


business development), it makes good business sense for HR to headthe process and partner with strategic leaders in the firm becausehuman capital is arguably the number one intangible value driver.

Many HR leaders are already looking ahead to the future. According tothe SHRM® 2004-2005 Workplace Forecast, key HR trends are:

1. Demonstrating HR's return on investment; 2. HR's role in promoting corporate ethics; and 3. Building people management and human capital components into

key business transactions.

As this report documents, some HR leaders are taking action now:19

• 63% are increasing spending on learning and training initiatives.

• 40% are changing company policy as a response to environmentalissues.

• 36% are changing company policy as a response to grassrootspressure to change specific business practices.

• 32% are increasing involvement in social programs.

The Status of CSR in the Organization: HR leaders can influencethree primary standards of CSR—ethics, employment practices andcommunity involvement—that relate either directly or indirectly toemployees, customers and the local community, as outlined below.20

By considering these three CSR standards, HR leaders can thenidentify the CSR stage of their organization before making decisions todevelop and implement CSR initiatives (see Figure 3).

19. Schramm, J., & Burke, M. E. (2004, June). SHRM® 2004-2005 workplace forecast: A strategic outlook. Alexandria, VA: Society for Human Resource Management.

20. Social Venture Network. (1999). Standards of corporate social responsibility. San Francisco: Author.


• Ethics—Ethical standards and practices are developed andimplemented in dealings with all company stakeholders.Commitment to ethical behavior is widely communicated in anexplicit statement and is rigorously upheld.

• Employment Practices—Human resource managementpractices promote personal and professional employeedevelopment, diversity at all levels and empowerment. Employeesare valued partners, with the right to fair labor practices,competitive wages and benefits and a safe, harassment-free,family-friendly work environment.

• Community Involvement—The company fosters an openrelationship that is sensitive to community culture and needs andplays a proactive, cooperative and collaborative role to make thecommunity a better place to live and conduct business.

Next, prior to launching and/or evaluating CSR initiatives in theorganization, consideration of principles, implementation and employerbrand will assist HR leaders in determining how and/or why to includeCSR initiatives in their company (see Figure 4). First, questions ofprinciple provide the broad view of CSR—moving from philanthropyand donations to contributing solutions to help solve the large issuessuch as poverty.21 Second, questions of implementation addresspractical issues such as incorporating CSR into the performance

21. World Business Council for Sustainable Development. (2000, January). Corporate social responsibility: Making good business sense. Conches-Geneva, Switzerland: Author.


appraisal process and the softer issues of creating an organizationalculture that supports CSR initiatives.22 And third, questions regardingemployer brand provide an opportunity for HR leaders to look closelyat how their current policies and programs can more positively affectrecruitment, retention and talent management.

HR's CSR Checklist: Taking the long-range view, HR leaders can usea checklist to track the HR scorecard on CSR as initiatives aredeveloped and implemented over time (see below).23As appropriate,changes in direction can be made to correspond with the organization'soverall strategy.

• Create a strong organizational culture around core companyvalues.

• Scan the environment to identify potential threats (e.g.,competition for talent within the organization's industry sector).

• Build personal and professional capability of the workforce (e.g.,expand intellectual capital within the organization and incollaboration with other organizations).

• Include ethical concerns in staff performance measures.

• Support participative decision-making.

• Ensure highest standards in workplace health and safety.

22. Ibid.23. Ibid.


• Encourage active engagement in community activities.

Moving Forward with CSR—HR as a Change Agent: Focusing oncompany values, HR leaders set the tone for an organizational culturethat is open to and understands CSR. HR's role as a changeagent—grounded in mutual respect, and open and honest communica-tion—is essential to educate management and employees aboutincluding CSR when setting business goals and objectives. Threepractical steps to promote change regarding CSR are to:

1. Establish a workable stakeholder consultation process; 2. Use the process to understand the local culture (e.g., inter-

nal—the workforce—or external—the community) at all stages ofimplementing CSR; and

3. Create a sense of ownership between staff who set up a projectand those who implement it.24

Beyond including CSR in the HR management system, HR's role as achange agent continues through keeping the CEO and other membersof the senior management team informed of human capital initiatives,the status of community relations, measurements of employmentactivities and development of partnerships for CSR programs, bothinside and outside the organization.25

HR and Community Relations: One of the most visible CSRinitiatives is community relations. Strong community relations can havea positive impact on company reputation and brand. Throughcommunity programs that highlight the company doing good work, HRcan link critical issues—decreasing turnover, savings on cost per hireand attracting talented individuals—to CSR and the bottom line. Thereare many other possibilities that HR leaders could explore to matchboth company and community needs (e.g., cultural facilities for thecommunity, recreational facilities for employees and their families, aneducational project to help prepare tomorrow's workforce). Forexample, employees from high-tech companies could work with

24. World Business Council for Sustainable Development. (1999). Meeting changing expectations: Corporate social responsibility. Conches-Geneva, Switzerland: Author.

25. Dunphy, D., Griffiths, A., & Benn, S. (2003). Organizational change for corporate sustainability. New York: Routledge.


students on science projects that require technical skills. Further,programs that affect both short- and long-term goals are alsostrategically advantageous as CSR initiatives. An illustration of such aprogram is the literacy initiative developed by Time Warner when thecompany saw that the reading public could have an impact on theirshort- and long-term goals of product sales.26

CSR in the Global Arena

Internationally, CSR has a strong human rights dimension. This isevidenced, for example, by the United Nations' Global Compact thataddresses 10 principles in the areas of human rights, labor and theenvironment with the goal to have the private sector help realize UnitedNations' vision of a more sustainable and inclusive global economy.27

Global companies are increasingly placing a stronger emphasis oncorporate citizenship activities. The top four citizenship priorities are:

1. Employee health and safety;2. Sustainability;3. Equal opportunities/global diversity; and4. Globalization of contributions.28

Further, companies worldwide are beginning to emphasize theimportance of citizenship activities beyond philanthropy. For example,a recent study documents that about 60% of global managers polledindicated these activities result in an enhanced reputation withcustomers and goodwill that opens doors in local communities.29

26. Burke, E. M. (1999). Corporate community relations: The principle of the neighbor of choice. Westport, CT: Quorum Books.

27. The global compact. Retrieved September 27, 2004, from www.unglobalcompact.org/.


29. Ibid.


The global CSR agenda is associated with multilateral processes andguidelines. In recent years, there has been a significant growth of“codes of conduct” worldwide, sometimes referred to as a globalregime of “soft law” (see Figure 5).

These voluntary business conduct principles cover a wide range ofcorporate citizenship topics, from corporate social and environmentalresponsibility to transparency and fair business practices. Followingthese international codes of conduct has been shown to yield similaroutcomes as domestic CSR initiatives, such as enhancement of


company reputation, increased stakeholder confidence and higherstandards of business accountability.30 For example, companies areincreasingly publicly strengthening their global partnerships by joiningorganizations such as Social Accountability International's CorporateInvolvement Program (www.cepaa.org/SA8000/CIP.htm), the EthicalTrading Initiative (www.ethicaltrade.org) and the United Nations'Global Compact (www.unglobalcompact.org). Therefore, asorganizations continue to expand globally, HR leaders must becognizant of, promote and demonstrate public support of these codes.

Globally, CSR has a significant impact on HR management. Forexample, HR must be aware that effective CSR means respect forcultural and developmental differences and sensitivity to imposingvalues, ideas and beliefs when establishing global HR policies andprograms.31 Externally, global organizations are publishing missionstatements, such as the one below by Shell, to publicly announce theirintentions of corporate citizenship, using terms such as “respect” and“cultural differences,” and focusing on CSR priorities of diversity,health, safety and equal opportunity.

“We aim to treat everyone with respect. We strive to protect peoplefrom harm from our products and operations. We aim to respectand value personal and cultural differences and try to help peoplerealise their potential.”32

Internally, HR leaders are beginning to take steps regarding CSR bydeveloping and implementing incentives and appraisal systems thatreflect citizenship vision and purpose as well as hiring personnel thatreflect these traits. For example, research by The Conference Boardreveals that 50% of global managers report their companies do, or plan

30. Ibid.

31. World Business Council for Sustainable Development. (1999). Meeting changing expectations: Corporate social responsibility. Conches-Geneva, Switzerland: Author.

32. Shell International B. V. (2001). People, planet and profits: The Shell Report 2001. The Hague, Netherlands: Author.


to, include citizenship as a performance evaluation category.Additionally, 68% of respondents cite the link between citizenship andperformance appraisal as “increasingly important.”33

What Does the Future Hold?

The impact of CSR is under close scrutiny. There are four primaryareas of concern:

1. Product responsibility; 2. Strategies for sustainability; 3. The quality of CSR management; and 4. The future of CSR overall.34

Importantly, indications are that organizations will increasingly be heldaccountable for their actions. According to PricewaterhouseCoopers,within the next 10 years evaluation methods used by Wall Streetanalysts will include new metrics—social performance and intellectualcapital—to more accurately assess the net worth of a company, andwithin the next five years, 70% of North American and Europeancompanies will assign board responsibility for reputation and socialresponsibility.35

Over the next five to 10 years, one of the primary tests of how societywill judge companies will be based on where corporations place theirfacilities, how they source goods and services and what economicimpact they have on poor and disadvantaged communities.36


34. Business respect—CSR—Dispatches#13. (2001, September 22). Retrieved September 10, 2004, from www.tinyurl.com/ytxhc3.

35. PricewaterhouseCoopers. (1999, September 30). Surveys find many consumers hold companies responsible for their actions [News Release]. Retrieved September 14, 2004, from www.pwc.com.

36. AccountAbility & Business for Social Responsibility (with Brody Weiser Burns). (2003, June). Business and economic development: The impact of corporate responsibility standards and practices. Retrieved September 3, 2004, from www.tinyurl.com/3ahgbl


Companies will increasingly adopt a comprehensive view of corporatecitizenship that includes the environment and communityengagement.37 A proactive and perhaps controversialrecommendation regarding human capital and emerging markets isthat global corporations consider putting the world's five billion or sopoorest people at the heart of their profit-making strategies.38

Not surprisingly, evidence suggests that companies have a long way togo to clearly demonstrate substantive CSR performance. For example,a global ranking report notes that the world's 100 largest companieshave a poor record of accounting for their impact on society and theenvironment. A range of measures that include strategy, governanceand stakeholder involvement show these companies scoring anaverage of 24 out of 100 points with only five companies scoring morethan 50% and only one U.S. company, Hewlett-Packard, placingamong the 10 highest scorers.39 Further, the level of effort that theworldwide community is putting into the achievement of the UnitedNations Millennium Declaration goals is less than half the effortnecessary to meet any of the goals.40 Consequently, since the CSRinitiatives of most organizations tend to be peripheral and isolated fromtheir core businesses and the initial momentum gained in the past fewyears appears too disjointed to make a significant impact in the world,the CSR movement must significantly shift gears in order to reach itsfull potential.41

37. The Center for Corporate Citizenship at Boston College and U.S. Chamber of Commerce Center for Corporate Citizenship. (2004). The state of corporate citizenship in the U.S.: A view from inside 2003-2004. Chestnut Hill, MA: Author.

38. Prahalad, C. K. (2004, August 21). Face value: Profits and poverty. The Economist, p. 54.

39. Top 100 poor on social impact. (2004, June 23). Financial Times. Retrieved September 14, 2004, from www.tinyurl.com/2e2gdv.

40. World Economic Forum. (2004). Global governance initiative: Executive summary 2004. London: Author.

41. SustainAbility. (2004). Gearing up: From corporate responsibility to good governance and scalable solutions [Executive Summary]. London: Author


In conclusion, with the growing importance of human capital as asuccess factor for today's organizations, the role of HR leadership willbecome ever more critical in leading and educating organizations onthe value of CSR and how best to strategically implement CSR policiesand programs domestically and abroad.

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Resources

Business for Social Responsibility: www.bsr.org

CSR Europe: www.csreurope.org

Global Environmental Management Initiative (GEMI): www.gemi.org

Prince of Wales International Business Leaders Forum (IBLF): www.iblf.org

Sarbanes-Oxley Act of 2002: www.sarbanes-oxley.com

Standards of Corporate Responsibility: www.svn.org

The Center for Corporate Citizenship at Boston College:www.bc.edu/centers/ccc/index.html

U.S. Chamber of Commerce Center for Corporate Citizenship:www.uschamber.com/ccc/default

World Business Council for Sustainable Development: www.wbcsd.org

World Economic Forum: www.weforum.org

About Nancy Lockwood

Nancy R. Lockwood, SPHR, GPHR, is an HR content expert for theSociety for Human Resource Management. Her responsibilities includeidentifying topics and focus areas in need of additional human resourcemanagement research, and creating HR products of strategic andpractical value for target audiences. She is certified as a SeniorProfessional in Human Resource Management and a GlobalProfessional in Human Resources by the Human ResourceCertification Institute.


About the SHRM Research Department

The SHRM Research Department researches and synthesizes thethoughts, practices and voices of today's HR professional, businessand academic leaders on various HR topics and focus areas, andcreates products of strategic and practical value for HR targetaudiences. The Research Department includes the Survey Program,the Workplace Trends and Forecasting Program and the StrategicResearch Program. These programs provide SHRM members with awide variety of information and research pertaining to HR strategy andpractices to both serve the HR professional and advance the HRprofession. (www.shrm.org)

Part VIResources

• CSR Global Resource Links


C h a p t e r

35 CSR Global Resource Links

Stanford Social Innovation Review:www.ssireview.org

Sustainable MBA: www.presidiomba.org

The Corporate Responsibility Officer:www.thecro.com

Blessed Unrest, Paul Hawken: www.paulhawken.com

Origo Institute: www.Origoinc.com

Social Enterprise Reporter: www.sereporter.com

Business Ethics: www.business-ethics.com

Social Venture Network: www.svn.org

Markkula Center for Applied Ethics:www.scu.edu/ethics

Investors and Environmentalists for SustainableProsperity: www.ceres.org


186 Chapter 35: CSR Global Resource Links

UN Global Compact: www.unglobalcompact.org

OECD Guidelines for Multinational Enterprises: www.oecd.org

The Global Sullivan Principle of Social Responsibility: www.thesullivanfoundation.org

Vigeo CSR Rating Agency: www.vigeo.com/csr-rating-agency

Calvert CSR Rating: www.calvert.com

Social Accountability International: www.sa-intl.org

Acre Resources: www.acre-resources.co.uk

AsRIA: www.asria.org

The Burma Campaign: www.burmacampaign.org.uk


Business Ethics Magazine: www.business-ethics.com

Business in the Community: www.bitc.org.uk

Business Respect: www.mallenbaker.net/csr/nl

Cal Safety Compliance Corporation: www.cscc-online.com

Coop America: www.coopamerica.org

Copenhagen Centre: www.copenhagencentre.org

CSR Data Networks: www.csrdatanetworks.com

CSR Europe: www.csreurope.org

CSR Wire: www.csrwire.com

Ethical Corporation Magazine: www.ethicalcorp.com


Ethical Performance: www.ethicalperformance.com

Ethos: www.ethos.org.br

Interfaith Center on Corporate Responsibility: www.iccr.org

Institute of Business Ethics: www.ibe.org.uk

Investor Responsibility Research Center: www.irrc.org

Joint Initiative: www.jo-in.org

MHC International: www.mhcinternational.com

Prince of Wales Business Leaders Forum: www.pwblf.org

Social Venture Network: www.svn.org

SustainAbility: www.sustainability.com

Sustainable Development International: www.sustdev.org

The Copenhagen Centre - New Partnerships for Social Responsibility:www.copenhagencentre.org/main

Ethical Corporation Magazine: www.ethicalcorp.com

Ethical Media (Web design firm): www.ethicalmedia.com/

Forest Stewardship Council: www.fscoax.org

Global Alliance for Workers and Communities (GA): www.theglobalalliance.org/main.cfm

The Global Compact: www.unglobalcompact.org/

Good Money website: www.goodmoney.com

Green Money website: www.greenmoney.com

188 Chapter 35: CSR Global Resource Links

Institute of Social and Ethical AccountAbility:www.accountability.org.uk/

International Federation of Organic Agriculture Movements (IFOAM):www.ifoam.org

The International Textile, Garment and Leather Workers' Federation:www.itglwf.org

Marine Aquarium Council: www.aquariumcouncil.org

Marine Stewardship Council: www.msc.org

MGNEP Systems (Italian environmental legislation): www.mgnep.com

The Nathan Cummings Foundation: www.ncf.org

Social Funds website: www.socialfunds.com

Social Investment Forum: www.socialinvest.org

World Monitors/eMonitors: www.worldmonitors.com

Empowering Teens to Go Green: www.TeenThrive.com

Better World Shopping Guide: www.betterworldshopper.org

Women Innovators: www.astia.org


A u t h o r s

About the Authors

Rossella Derickson and Krista Henley, M.A.,LMFT, principals of www.corporate-wisdom.com,have translated their business andorganizational psychology experience intoWisdom in the Workplace, consulting, trainingand coaching modules that support healthygroup and company dynamics. Their classes tobuild business and leadership skills have beentaught to CEO's, executives, and entrepreneursin High Tech, Biotech, Insurance, and manyother industries including leading universities.Connecting CSR to individual and team purposeat work is a new and passionate focus area. Theyare the Directors of the South Bay OrganizationalDevelopment Network, www.sbodn.com, aleading edge forum focused on making adifference in how organizations are run in SiliconValley.

190 Authors

Heather Connors and Cindy Campbell havecombined experience of over 20 years inOrganization Development and HumanResources. They partnered in January, 2007, asCo-founders to create the Human ConnexusFoundation. Human Connexus is designed to bea customized donation service that providescharitable assistance from a personal donordirectly to an individual identified to havequalifying needs. Cindy and Heather believe thatby creating a one-on-one philanthropicconnection, their approach will establishsustainable results and encourage future giving.www.humanconnexus.org


Almaz Negash, MBA, Managing Partner,Entwine Global, is Center Fellow at Santa ClaraUniversity's Markkula Center for Applied Ethicswhere she spearheads the Ethics of Immigrationand Migration project. Negash served formerlyas the director of the Markkula Center's GlobalLeadership and Ethics Program. Prior to joiningthe Markkula Center, she was the Director of theSilicon Valley Center for International TradeDevelopment and the California Mexico TradeAssistance Center Program. In addition, sheworked as a Corporate Social Responsibilityresearcher for a Senior Fellow at the HewlettFoundation. Currently, she is Managing Partnerat Entwine Global, a small internationalbusiness, economic and educationaldevelopment firm. www.entwineglobal.com.


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