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It’s hard to think about brand leadership without thinking about Apple, now neck-and-neck with ExxonMobil as the world’s biggest company by market cap.
Last week, Apple was top of mind for many of us, with two major pieces of reporting: the UK release of Adam Lashinsky’s book, Inside Apple, which describes in part-admiring, part-unmerciful detail Apple’s tough organizational culture, and the New York Times’s excellent investigation into conditions in Apple’s supplier factories in China.
This last piece spurred CEO Tim Cook …
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There was a time when it was good enough just to listen. When corporate execs got credit for sitting at the table with an NGO and benefited from a “different perspective.” Their obligation was to “thoughtfully consider” the input in the development of their business plans, strategies and actions. But as the business environment and the sustainability agenda has evolved, so too has best practice in stakeholder engagement.
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1. Transitions
In a year that saw an Arab Spring take hold and unseat entrenched autocrats in Tunisia, Egypt and Libya (TBD on Yemen and Syria), the withdrawal of the last American troops from Iraq, a European Union on the brink of transformative change (and potential collapse), a titan of technological (and economic) innovation pass away, and the growing acknowledgement (in the form of the Occupy protests), that the entanglement of the American political and financial system is a Faustian bargain that must be actively fought and protested against, the theme of transition feels all too apt.
So too in the sustainability field, where in a world of seven billion inhabitants and growing, the five most urgent issues on the sustainability agenda are all perceived less urgently than they were in 2009.
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I recently had the pleasure of participating in the annual workshops of SustainAbility’s Engaging Stakeholders network. The theme for the workshops was “value.” That is, how companies can derive greater business value from their sustainability communications and engagement, and how they can deliver greater value to stakeholders and society via their efforts.
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I spent the week before last at the annual BSR conference, held in San Francisco, CA. It is among the year’s biggest confabs of corporate responsibility and sustainability experts, practitioners and aspirants. While I am not a serial or veteran attendee of the conference, I heard (and agree with) a consensus that it was better than others in recent memory. The crowd was generally upbeat and engaged, and that level of energy was both reflected and driven on by a series of lively keynotes, most notably the opening address by Al Gore, who took aim at the ‘insanity’ of short-term thinking, praised attendees for their efforts to advance sustainability, and…
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SustainAbility and GlobeScan sat down to breakfast in New York recently in the fourth in a series of discussions on “Leadership, Trust and Value.” Over the last few months we’ve held several gatherings about sustainability aspirations with our clients and collaborators in London, DC and San Francisco. At this iteration, colleagues from Cisco, Context America, Goldman Sachs, IFF, Mission Markets, and the Overbrook Foundation joined us. The diversity of our group made our discussion—which volleyed from the evolution of the sustainability movement to “NGO lethargy” and the off-gassing of Styrofoam—all the more interesting.
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While in London in late September, I attended the release of Coca-Cola Enterprises’ (CCE) Sustainability Plan. Titled Deliver for Today: Inspire for Tomorrow, the plan represents a major step forward for the company. The launch was silky smooth – an in-studio event filmed at The Hospital Club in London’s Covent Garden, kicked off by CCE’s CEO John Brock, featuring a panel of accomplished business and NGO leaders assembled to assess the plan that was moderated by Catherine Cameron of the University of Cambridge Programme for Sustainability Leadership, and all unfolding in front of an expert audience containing the likes of Marks & Spencer Chairman Robert Swannell and Two Tomorrows Executive Chairman Mark Line.
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I’ve just returned from a visit to Philadelphia and New York last week where I had the opportunity for in-depth conversation with students and faculty at Wharton Graduate School of Business, as well as business and thought leaders from Coca-Cola, Johnson & Johnson, SAP, Unilever, Interbrand, Ogilvy, GRI, Corporate Responsibility, SustainAbility, The Economist and many others. All of these conversations touched on how we are unfolding our thinking about, and finding ways to measure, new forms of value that business might deliver to its customers and other stakeholders in the future. Underpinning these rich and varied conversations was the growing drumbeat, launched in New York, of #occupywallstreet. This growing movement is yet another indicator of the pressure on business to demonstrate its ability to extend its focus beyond profit to other forms of value creation for broader swaths of society.
The fact that the focus of #occupywallstreet seems to center on “corporate greed” as the target of its aggregated angst is just one sign of disconnect between business and the stakeholders to whom business is supposed to be delivering value.
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I’ve blogged recently on roundtable discussions that SustainAbility hosted in Washington, DC and London. We organized these sessions in order to connect some of our corporate and civil society partners in more intimate conversation than fits the conference circuit – smaller, more focused, more relaxed; all discourse, no presentation – and yet capable of creating more diversity and dynamism than possible when we only meet bi-laterally. A simple added benefit has been the experience of talking to people who are all of one place, in cities where we have offices ourselves. Our work so often takes us far afield, or into meeting environments built around destinations convenient to all but endemic to few, that it is easy to forget how both content and tone change when everyone has a common geography.
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In GlobeScan and SustainAbility’s latest survey of sustainability experts, we notice a worrying trend emerging: the sense of urgency to address critical sustainability issues is in decline across the globe.
In fact, the five most urgent issues on the sustainability agenda – climate change, water scarcity, food security, poverty, and biodiversity loss – are all perceived as less urgent challenges than they were in 2009…
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In a previous post, I shared some insights on open data’s relevance to sustainability reporting and stakeholder engagement. While the move to open data has many benefits, including enabling stronger stakeholder connections, companies have been slow to voluntarily go public with their datasets. At the same time, companies that are already moving down this path have recognized the challenge of ensuring the data they release is truly useful to stakeholders.
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I am in the United Kingdom presently, spending time with colleagues at SustainAbility’s Holborn office in central London. I spent the two weeks immediately prior to this trip on a blissfully quiet vacation with family and friends. Plugging back in, I find myself somewhat reeling trying to comprehend the various forms of volatility which erupted while I was away: in the markets, on the streets of this city and in other urban centers around Britain, and in Libya, where the opposition’s final advance into Tripoli proved so rapid as to stun most observers, leaving online media scrambling to post headlines like Qaddafi’s Final Hours while such hours still existed…
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Image: AFP via sacbee.com
The past week has been, in many ways, a watershed in post-independent India, with millions of Indians – young and old – taking to the streets in a public demonstration against corruption. The crowds have been unprecedented – I certainly do not remember anything like this since the late 1970s – and has cut across geographies and classes. And the man who has galvanized this is a 74-year old Gandhian called Anna Hazare (pronounced Ha-zaa-ray), a retired army soldier whose public contributions started in his small village in western India but who gradually became a relentless crusader against corruption in public life. Will this be a defining moment in India’s democracy? Are there lessons to be learnt, including for corporations in democracies? But I am getting a bit ahead of myself…
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In early July, after nearly a year of drafting and several rounds of consultations with business and civil society, the Ministry of Corporate Affairs, Government of India announced the adoption of the National Voluntary Guidelines for Social, Environmental and Economic Responsibilities of Business…
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Here in Washington, the battle in Congress over the raising the debt ceiling dominated headlines, airwaves and the blogosphere for several weeks. Obviously, the debate became about more than just how much the US should borrow to pay its bills. Instead, it was an ideological fight over the appropriate size and role of government in business and in society.
The flip side of the question of what the role of government in business should be is what the role of business in government should be – i.e. what should or shouldn’t the corporate sector do to shape policies which affect not only the business community but all of society? Or said another way: what does responsible lobbying look like?
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Organisations as diverse as the US Government, the New York Mass Transit Authority and the World Bank have started publishing their previously-closed data for the world – and more particularly, their stakeholders – to see and use. This move to open data has many benefits, from fostering stakeholder participation in solving complex problems, to enabling third parties to dream up completely new services (such as mobile applications that tell you the fastest way to get around your city).
Companies, however, have been slower to embrace the move to open data, and this was the subject of a recent webinar for our Engaging Stakeholders network members.
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A question and answer with Wood Turner and Mike Bellamente of Climate Counts, one of the ratings profiled in SustainAbility’s Rate the Raters research series.
1) Looking at the Phase Four paper of Rate the Raters, what resonates most with you?
Now that corporate sustainability ratings have been around awhile, SustainAbility’s Rate the Raters project helps us gauge what the future holds. The phase four paper establishes that rating standards will require greater differentiation moving forward, and that raters will need to distance themselves from the overly saturated data compilation side of the business in order to remain competitive. We at Climate Counts certainly believe this to be true; indeed, if our goal is to point the business community in the direction of climate change awareness and leadership, it should be done with clarity and efficiency, not complexity and duplication.
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As Rate the Raters pointed out, we are indeed witnessing a proliferation of “sustainability-related“ ratings, but these come in many different sizes and flavours, making comparison difficult. While some are directed towards consumers, others are akin to corporate reputation barometers, others are issue-specific, and still others are largely driven by ethical considerations. Only a handful seek to provide investors with a comprehensive view on a company’s performance and its ability to address long-term challenges compared to its peers, and can therefore be considered truly “mainstream” from an investor’s perspective.
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I’ve spent most of my career working on some aspect of company evaluations or ratings, and all I can say is that if there was an easy single answer to “which is the best company?”, I could be retired on a lovely beach somewhere.
In my own view, the current discussion of the usefulness and quality of sustainability ratings and rankings is more hopeful than discouraging. If I look back over the past decade, many ratings and rankings have greatly improved their quality and methodology. Companies are more transparent and more managers and corporate executives are asking questions about how to drive value through corporate responsibility (driven in part by the attention and competition generated by ratings).
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This past Friday, July 15th in Washington, DC, my colleagues Jeff Erikson, Michael Sadowski and I hosted a breakfast roundtable on leadership, trust and value. With guests from Areva, Chevron, the Environmental Defense Fund, Johnson Controls, the International Finance Corporation, Molycorp, the Nature Conservancy and WWF, we explored the intersection and interdependence of these topics as well as their influence on the sustainability agenda.