NOTES
We have relied heavily on Web sites as sources of the facts and figures that we cite throughout the book and have made every possible effort to ensure that we have cited only high-quality sources.
CHAPTER 1. THE WORTHINESS IMPERATIVE
1. In contrast to Nardelli’s 2005 base salary of $2.16 million, Blake was given base pay of $975,000 when he took over. And Blake’s contract had no guaranteed bonuses and no massive severance package. See Patti Bond, “No Golden Net for New Depot Chief,” Atlanta Journal-Constitution, January 25, 2007.
2. Ibid.
3. The Home Depot, “The Home Depot Presents 2007 Key Priorities and Financial Outlook,” news release, February 28, 2007, accessed December 17, 2010, http://ir.homedepot.com/phoenix.zhtml?c=63646&p=irolnewsArticle &ID=1267173&highlight.
4. Scott Burns, “Is Home Depot Shafting Shoppers?” MSN Money, March 7, 2007, accessed December 17, 2010, http://articles.moneycentral.msn.com/Investing/Extra/HomeDepotShaftingShoppers.aspx.
5. See Messages 1–4714, “Is Home Depot Abusing Its Customers?” MSN Money Message Boards, March 13, 2007, accessed December 17, 2010. The comments are no longer available online because MSN Money’s message board has been retired.
6. Message #3832, Ibid., March 12, 2007. This comment is no longer available online because MSN Money’s message board has been retired.
7. Frank Blake, “Home Depot CEO: Sorry We Let You Down,” MSN Money, March 13, 2007, accessed May 3, 2011, http://articles.moneycentral.msn.com/Investing/Extra/HomeDepotCEOWeLetYouDown.aspx.
8. Edelman, “Despite Prolonged Global Recession, an Increasing Number of People Are Spending on Brands That Have Social Purpose,” news release, October 21, 2009, accessed December 17, 2010, http://www.edelman.com/news/ShowOne.asp?ID=222.
9. Ibid.
10. Gretchen Morgenson and Louise Story, “Banks Bundled Bad Debt, Bet Against It and Won,” New York Times, December 23, 2009, accessed December 18, 2010, http://www.nytimes.com/2009/12/24/business/24trading.html.
11. Peter Coy, Michelle Conlin, and Moira Herbst, “The Disposable Worker,” Bloomberg Businessweek, January 7, 2010, accessed December 18, 2010, http://www.businessweek.com/magazine/content/10_03/b4163032935448.htm.
12. Edelman, 2011 Edelman Trust Barometer Executive Summary, 2, accessed January 26, 2011, http://www.scribd.com/doc/47515988/2011Edelman-Trust-Barometer-Executive-Summary#. Edelman’s study surveyed people ages 25 to 64 who are “informed publics,” defined as people who are college-educated, have a household income in the top quartile for their age in their country, read or watch business/news media at least several times a week, and follow public policy issues in the news at least several times a week.
13. Packaged Facts, “Despite Recession, the Market for ‘Ethical’ Consumer Products Remains Healthy,” news release, October 5, 2009, accessed December 19, 2010, http://www.packaged facts.com/about/release.asp?id=1476.
14. Edelman, “Role of Citizen Consumer to Tackle Social Issues Rises, as Expectation of Government to Lead Declines,” news release, November 4, 2010, accessed January 25, 2011, http://www.edelman.com/news/2010/EdelmangoodpurposeUSpressrelease.pdf.
15. Ibid.
16. Accenture, Mobility Takes Center Stage: The 2010 Accenture Consumer Products and Services Usage Report, 15-16, accessed December 19, 2010, https://microsite.accenture.com/landing_pages/consumertechnologyusage/Documents/
AccentureConsumerTech2010.pdf.
17. Edelman, “Mutually Beneficial Marketing Takes Flight,” 2009, accessed January 20, 2011, www.goodpurposecommunity.com/Documents/2009goodpurposedeck.pdf.
18. The Conference Board Inc., “U.S. Job Satisfaction at Lowest Level in Two Decades,” news release, January 5, 2010, accessed December 19, 2010, http://www.conference-board.org/press/pressdetail.cfm?pressid=3820.
19. Association of Executive Search Consultants, “Senior Executives Dissatisfied Following Recession,” news release, March 17, 2010, accessed December 19, 2010, http://www.aesc.org/eweb/Dynamicpage.aspx?webcode=PressRelease&wps_key=b65e90a6-5d6f-4c71-87f6-970ddfad0004.
20. Francois Vetri, head of communications for research and investment firm Sustainable Asset Management, e-mail message to Ed Frauenheim, January 23, 2010. Sustainable Asset Management (SAM) does the analysis that underpins the Dow Jones Sustainability Indexes.
21. Laurie Bassi and Daniel McMurrer, “The Impact of U.S. Firms’ Investments in Human Capital on Stock Prices,” McBassi & Company, June 2004, accessed January 10, 2011, http://www.bassi-investments.com/downloads/ResearchPaper_June2004.pdf; and Laurie Bassi and Daniel McMurrer, “Maximizing Your Return on People,” Harvard Business Review, March 2007, accessed January 10, 2011, https://archive.harvardbusiness.org/cla/web/pl/product.seam?c=8385&i =8387&cs=63637a444784d5307f8c562ffa2635fd.
22. “Financial Results,” Great Place to Work Institute Inc., accessed December 20, 2010, http://www.greatplacetowork.com/what_we_believe/graphs.php.
23. TerraChoice Environmental Marketing, “Greenwashing Affects 98% of Products Including Toys, Baby Products and Cosmetics,” news release, April 15, 2009, http://www.terrachoice.com/images/Seven%20Sins%20of%20Greenwashing%20Release%20-%20April%2015%202009%20-%20US.pdf.
24. BP, “BP Parent Company Name Change Following AGM Approval,” news release, May 1, 2001, http://www.bp.com/genericarticle.do?categoryId=2012968&contentId=2001578. Immediately prior to the name change, the company had been called BP Amoco. Also, see “BP Brand and Logo,” BP, accessed December 21, 2010, http://www.bp.com/sectiongenericarticle.do?categoryId=9014508&contentId=7027677.
25. BP does not break out revenue from its Alternative Energy business, but groups that business into its “Other businesses and corporate” unit. Revenue for that unit in 2009 was $2.8 billion, and total BP revenue was $239.3 billion. BP, Annual Report and Accounts 2009, 127, accessed December 21, 2010, http://www.bp.com/assets/bp_internet/globalbp/globalbp_uk_english/set_branch/STAGING/
common_assets/downloads/pdf/BP_Annual_Report_and_Accounts_2009.pdf; Robert Wine, BP Press Officer, e-mail message to Ed Frauenheim, May 11, 2010. Wine said BP’s investments in its Alternative Energy business amounted to about $1.3 billion in 2009. BP’s total capital expenditure for 2009 was $20.7 billion. See BP, Annual Report and Accounts 2009, 115.
26. PricewaterhouseCoopers and Sustainable Asset Management, The Sustainability Yearbook 2010, accessed January 10, 2011, http://www.samgroup.com/htmle/yearbook/downloads/The_Sustainability_Year book_2010_FINAL.pdf?CFID=2716250&CFTOKEN=3c75df4ab40 b4e17-71765 ACC-B74D-DF31-203D32380FE91951.
27. Sustainable Asset Management, SAM Corporate Sustainability Investment—The Review, 2009, 2, accessed January 10, 2011, http://www.sam-group.com/yearbook/download/10years_scsa_en.pdf.
28. “Is Home Depot Abusing Its Customers?” MSN Money Message Boards, last updated April 14, 2007, accessed December 21, 2010. The comments are no longer available online because MSN Money’s message board has been retired.
29. “Scores by Company: Home Depot,” American Customer Satisfaction Index, accessed December 21, 2010, http://www.theacsi.org/index.php?option=com_content&task=view&id=149&Itemid =157&c=Home +Depot.
30. Ibid.
31. Blake, “Home Depot CEO: Sorry We Let You Down,” MSN Money.
32. FedEx Corp., Everything Is Connected: A Global Citizenship Update for 2009, 16, accessed January 25, 2011, http://about.fedex.designcdt.com/files/FedEx_09_GCR_final_boomrk_0415.pdf.
33. Deborah Willig, FedEx spokeswoman, e-mail message to Ed Frauenheim, January 20, 2010.
34. Mitch Jackson, vice president of environmental affairs and sustainability at FedEx, interview by Ed Frauenheim, January 18, 2010.
35. Richard Stengel, “For American Consumers, a Responsibility Revolution,” Time, September 10, 2009, accessed December 21, 2010, http://www.time.com/time/nation/article/0,8599,1921444,00.html.
36. “Legal Framework,” B Lab, accessed December 21, 2010, http://www.bcorporation.net/become/legal.
37. “IBM Response to the Southern Asia Tsunami: Final Report,” World Health Organization, WHO Conference on the Health Aspects of the Tsunami Disaster in Asia, Presentation by Brent Woodworth, IBM Crisis Response Team, March 28, 2005, accessed December 21, 2010, http://www.who.int/hac/events/tsunamiconf/presentations/2_17_private_sector_woodworth_doc.pdf.
38. “Best Companies Lists,” Great Place to Work Institute Inc., accessed December 21, 2010, http://www.greatplacetowork.com/what_we_do/lists-us-bestusa-2010.htm; “Cleaner Vehicles,” FedEx, accessed December 21, 2010, http://about.fedex.designcdt.com/corporate_responsibility/the_environment/
alternative_energy/cleanervehicles.
39. William J. Logue, Executive Vice President, FedEx Express, Transportation Sector Fuel Efficiency, testimony before the Committee on Energy & Natural Resources, United States Senate, January 30, 2007, accessed January 25, 2011, http://news.van.fedex.com/files/BillLogueTestimony_energy.pdf.
40. Vinod Khosla, “The Seven That Matter in Clean Technology,” Forbes, November 22, 2010, accessed January 25, 2011, http://www.forbes.com/forbes/2010/1122/powerful-people-10-vinod-khosla-gillette-chu-clean-technology.html.
41. “Training and development,” The Walt Disney Company, 2008 Corporate Responsibility Report, accessed December 21, 2010, http://disney.go.com/crreport/workplaces/disneyoperations/traininganddevelopment.html; “Disney’s Enviroport 2007,” The Walt Disney Company, accessed December 21, 2010, http://corporate.disney.go.com/environmentality/enviroport/2007/ea/oep.html.
42. Diane Dray, Disney communications manager, e-mail message to Ed Frauenheim, December 9, 2010.
43. “Corporate Responsibility,” The Walt Disney Company, accessed December 21, 2010, http://corporate.disney.go.com/responsibility/index.html.
44. Message #3832, “Is Home Depot Abusing Its Customers?” This comment is no longer available online because MSN Money’s message board has been retired.
45. “Scores by Company: Home Depot,” American Customer Satisfaction Index, accessed December 21, 2010, http://www.theacsi.org/index.php?option=com_content&task=view&id=149&Itemid =157&c=Home+Depot.
46. “LOW Charts,” Yahoo Finance, accessed January 25, 2011, http://finance.yahoo.com/echarts?s=low#chart13:symbol=low;range=2y;compare=hd+^gspc;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0; logscale=on.
CHAPTER 2. THE ECONOMIC IMPERATIVE
1. John W. Boudreau and Peter M. Ramstad, Beyond HR: The New Science of Human Capital (Boston: Harvard Business School Publishing Corporation, 2007), 54.
2. B. Joseph Pine II & James H. Gilmore, “What Business Are You Really In?” Chief Executive, October, 1999, reprinted in “Other Writings,” Strategic Horizons, accessed January 4, 2011, http://strategichorizons.com/documents/ChiefExecutive-9910-WhatBusinessAreYouReallyIn.pdf.
3. William M. O’Barr, “A Brief History of Advertising in America,” Advertising & Society Review, 6, no. 3 (2005), sections 7 and 8, http://muse.jhu.edu/journals/asr/v006/6.3unit02.html.
4. Pine II & Gilmore, “What Business Are You Really In?”
5. Virgin America, “Virgin America Corporate Fact Sheet,” accessed January 4, 2011, http://www.virginamerica.com/va/html/virgin-america-corporate-fact-sheet.pdf.
6. Virgin America, “Virgin America Reports Third Quarter 2010 Financial Results,” November 9, 2010, accessed January 10, 2011, http://www.virginamerica.com/press-release/2010/virgin-america-reports-third-quarter-2010.html.
7. David Kiley, “Walmart Is Out to Change Its Story with New Ads,” BusinessWeek, September 13, 2007, accessed January 4, 2011, http://www.businessweek.com/the_thread/brandnewday/archives/2007/09/walmart_is_out.html.
8. Bruce Temkin, “The 6 Laws of Customer Experience,” Customer Experience Matters Blog, 2008, accessed January 4, 2011, http://experiencematters.files.wordpress.com/2009/05/the-6-laws-of-customer-experience_v8b.pdf.
9. Ibid.
10. John Harrington, “MLK, Michelangelo, Street-Sweepers, & You,” Photo Business News & Forum, August 6, 2009, accessed January 4, 2011, http://photobusinessforum.blogspot.com/2009/08/mlk-michelangelo-street-sweepers-you.html.
11. The Walt Disney Company, “The Walt Disney Company Reports Earnings for Fiscal Year 2009,” news release, November 12, 2009, accessed January 4, 2011, http://corporate.disney.go.com/investors/quarterly_earnings/2009_q4.pdf.
12. The Animation Guild, “The Disney Strike, 1941,” accessed January 4, 2011, http://animationguild.org/disney-strike-1941/.
13. Bruce Temkin, “Words of Wisdom: Walt Disney on EBD,” Customer Experience Matters, November 20, 2007, accessed December 26, 2010, http://experiencematters.wordpress.com/2007/11/20/words-of-wisdom-walt-disney-on-ebd/.
14. Towers Watson, “2010 Global Workforce Study: Supporting Exhibits from the U.S. Research,” accessed January 4, 2011, http://www.towerswatson.com/assets/pdf/global-workforce-study/TWGWS_2010_US_Media_Deck.pdf.
15. Watson Wyatt Worldwide, 2009/2010 U.S. Strategic Rewards Report, 2009. (Watson Wyatt Worldwide later merged with consulting firm Towers Perrin to become Towers Watson.)
16. Ibid.
17. Heidi Shierholz, Economist, Economic Policy Institute, Implementation of Unemployment Insurance Provisions in the Recovery Act, testimony before the Committee on Ways and Means Subcommittee on Income Security and Family Support, U.S. House of Representatives, April 23, 2009, accessed January 4, 2011, http://epi.3cdn.net/eb66be7317fe84d185_l6m6ivvsc.pdf, 34.
18. Peter G. Gosselin, “If America Is Richer, Why Are Its Families So Much Less Secure?” Los Angeles Times, October 10, 2004, accessed January 4, 2011, http://articles.latimes.com/2004/oct/10/business/fi-riskshift 10?pg=3.
19. OECD, “Encouraging Employment—OECD Countries Balance Benefits, Wages and Taxes,” December 13, 2007, accessed January 4, 2011, http://www.oecd.org/document/30/0,3343,en_2649_37419_39776222_1_1_1_1,00.html.
20. Principal Financial Group, “Worker Expectations for Retirement Continue to Fall, Many Anticipate Working Longer,” accessed January 4, 2011, http://www.principal.com/about/news/2009/ris_ebrisurvey_041409.htm.
21. WorldPublicOpinion.org, “Wide Dissatisfaction with Capitalism—Twenty Years after Fall of Berlin Wall,” November 9, 2009, accessed January 4, 2011, http://www.worldpublicopinion.org/pipa/articles/btglobalizationtradera/644.php.
22. Daniel Gilbert, “What You Don’t Know Makes You Nervous,” the New York Times, May 20, 2009, accessed January 4, 2011, http://opinionator.blogs.nytimes.com/2009/05/20/what-you-dont-know-makes-you-nervous/.
23. Watson Wyatt Worldwide, “Economic Downturn Leading to Decline in Employee Commitment, Morale, Watson Wyatt Worldwide/WorldatWork Survey Finds,” September 21, 2009, accessed January 4, 2011, http://www.watsonwyatt.com/news/press.asp?ID=22341.
24. Companies can overemphasize engagement (more on this in Chapter 7). But as discussed in the previous section, motivated employees are crucial to great customer service and company performance generally.
25. The Corporate Executive Board Company, Rebuilding the Employment Value Proposition, July 2009.
26. The Corporate Executive Board Company, Engagement Trends, October 2010.
27. “The stark reality of iPod’s Chinese factories,” MailOnline, August 18, 2006, accessed January 4, 2011, http://www.mailonsunday.co.uk/news/article-401234/The-stark-reality-iPods-Chinese-factories.html.
28. Kevin Lane and Florian Poliner, “How to address China’s growing talent shortage,” McKinsey Quarterly, July 2008, accessed January 19, 2011, http://web.rollins.edu/~tlairson/china/chitalentshort2.pdf.
29. Ibid.
30. Ed Frauenheim, “The Too-Fast Track,” Workforce Management, March 2007, accessed January 4, 2011, http://www.workforce.com/archive/feature/24/80/98/index.php.
31. Ed Frauenheim, “Dubai’s Dark Globalism,” Global Work Watch (blog), Workforce Management, November 12, 2007, accessed January 4, 2011, http://workforce.com/wpmu/globalwork/2007/11/12/dubai_danger/.
32. Tim Connor, “Still Waiting for Nike to Do It,” Global Exchange, May 2001, accessed January 4, 2011, http://www.globalexchange.org/campaigns/sweatshops/nike/stillwaiting.html.
33. Apple, “Report on iPod Manufacturing,” August 17, 2006, accessed January 4, 2011, http://www.apple.com/hotnews/ipodreport/. Apple does not mention its supplier by name in the report. But given that the press controversy centered on Foxconn, it was clear Apple was referring to Foxconn.
34. Apple, “Report on iPod Manufacturing.”
35. Stephanie Wong, John Liu, and Tim Culpan, “Foxconn Workers in China Say ‘Meaningless’ Life Sparks Suicides,” Bloomberg Businessweek, June 2, 2010, accessed January 19, 2011, http://www.businessweek.com/news/2010-06-02/foxconn-workers-in-china-say-meaningless-life-sparks-suicides.html.
36. Apple, Supplier Responsibility: 2011 Progress Report, accessed March 15, 2011, http://images.apple.com/supplierresponsibility/pdf/Apple_SR_2011_Progress_Report.pdf; and Apple, Supplier Responsibility: 2010 Progress Report, accessed January 19, 2011, http://images.apple.com/supplier responsibility/pdf/SR_2010_Progress_Report.pdf. Among other things, the 2010 report states: “At 24 facilities, our auditors found that workers had been paid less than minimum wage for regular working hours.” The report also details cases of underage workers, falsified records, and wage violations. Apple also discovered that foreign workers recruited to work in supplier facilities had paid illegally high fees to get their jobs.
37. Apple, Supplier Responsibility: 2011 Progress Report. Despite Apple’s disclosures in its annual supplier reports, some observers say the company can be far more open about problems. In early 2011, a coalition of Chinese environmental groups accused Apple of having the least transparency about pollution issues in its supply chain among 29 technology companies. Friends of Nature, Institute of Public and Environmental Affairs, and Green Beagle, The Other Side of Apple, January, 20, 2011, accessed March 16, 2011, http://www.business-humanrights.org/media/documents/it_report_phase_iv-the_other_side_of_apple-final.pdf.
38. Billy, “How Long Will It Take for Amazon to Drop the Price of the New iPod Touches?” Amazon, September 8, 2010, accessed January 19, 2011, http://www.amazon.com/Amazon-drop-price-ipod-touches/forum/-/Tx1I7 L0MZLG0R6W/1/ref=cm_cd_et_md_pl?_encoding=UTF8&cdMsgNo =17&asin=B001FA1O18&cdSort=oldest&cdMsgID=Mx303IF629GQWN 4#Mx303IF629GQWN4.
39. The stories not only focused on Apple’s review of the Foxconn suicides but also took note of other supplier labor problems. See Aaron Ricadela, “Apple’s Cook Visited Foxconn in 2010 Suicide Response,” Bloomberg, February 14, 2011, accessed March 16, 2011, http://www.bloomberg.com/news/2011-02-14/apple-report-says-cook-visited-foxconn-in-2010-suicide-response.html.
40. Apple, “Apple Reports Fourth Quarter Results,” October 18, 2010, accessed January 19, 2011, http://www.apple.com/pr/library/2010/10/18 results.html.
41. Alan S. Blinder, “Offshoring: The Next Industrial Revolution?” Foreign Affairs 85, no. 2 (March/April 2006): 113-128.
42. Steve Jobs, “You’ve Got to Find What You Love,” Stanford Report, June 14, 2005, accessed January 4, 2011, http://news-service.stanford.edu/news/2005/june15/jobs-061505.html.
43. Henry Blodget, “Getting Fired at Yahoo: A Twitter Log,” Business Insider, February 12, 2008, accessed January 4, 2011, http://www.business insider.com/s?q=Henry+Blodget %2C+%E2%80%9CGetting+Fired+At +Yahoo%3A+A+Twitter+&vertical=&author=.
44. Ibid.
45. Ed Frauenheim, “Social Media Begins Forcing the Totally Transparent Layoff,” Workforce Management, December 16, 2008, accessed January 4, 2011, http://www.workforce.com/section/00/article/26/04/12.php.
46. Yahoo Message Boards, “Buy the Latest iPhone/Gizmo! Consume!!” 2009, accessed January 4, 2011, http://messages.finance.yahoo.com/Stocks_%28A_to_Z%29/Stocks_A/threadview?m=tm& bn=60&tid=2470583 &mid=2470583&tof=-1&rt=2&frt=2&off=1.
47. Gadget Queen, “BEWARE of the SIGNIFICANT DIFFERENCES between Kindle 1 and Kindle 2!” Amazon Customer Reviews, March 14, 2009, accessed January 4, 2011, www.amazon.com/review/RV0R3AODMRNJZ.
48. Colby Hall, “Twitter Ban Continues: ESPN Bans Its Reporters from Sports-Related Social Media,” MEDIAITE, August 5, 2009, accessed January 4, 2011, http://www.mediaite.com/online/espn-bans-its-reporters-from-sports-related-twitter-activity.
49. “Kindle Wireless Reading Device (6” Display, U.S. Wireless),” Amazon.com., accessed January 19, 2011, http://www.amazon.com/gp/product/B00154JDAI/ref=cm_rdp_product.
50. Ed Frauenheim, “Social Media Begins Forcing the Totally Transparent Layoff,” Workforce Management, December 16, 2008, accessed January 4, 2011, http://www.workforce.com/section /00/article/26/04/12.php.
CHAPTER 3. THE SOCIAL IMPERATIVE
1. Ea_spouse, “EA: The Human Story,” ea-spouse.livejournal.com, November 10, 2004, accessed January 5, 2011, http://ea-spouse.livejournal.com/274.html.
2. Ed Frauenheim, “For Developers, It’s Not All Fun and Games,” ZD Net, November 18, 2004, accessed January 5, 2011, http://www.zdnet.com/news/for-developers-its-not-all-fun-and-games/139833.
3. Ea_spouse, “EA: The Human Story.”
4. Facebook, “Statistics,” 2011, accessed January 11, 2011, http://www.facebook.com/press/info.php?statistics.
5. Ea_spouse, “EA: The Human Story.”
6. Lev Grossman, “Time’s Person of the Year: You,” Time, December 13, 2006, accessed January 5, 2011, http://www.time.com/time/magazine/article/0,9171,1569514,00.html.
7. Yelp, “About Us,” accessed January 21, 2011, http://www.yelp.com/about.
8. Edelman Trust Barometer, “2010 Edelman Trust Barometer Executive Summary,” 2010, accessed January 5, 2011, http://www.edelman.com/trust/2010/docs/2010_Trust_Barometer_Executive_Summary.pdf.
9. Anonymous, “White-collar Slavery Is Alive and Well in the Games Industry,” November 10, 2004, comment on ea_spouse, “EA: The Human Story,” accessed January 25, 2011, http://ea-spouse.livejournal.com/274.html?thread=10514#t10514.
10. Ed Frauenheim, “Overtime Coming to Electronic Arts,” ZD Net, March 11, 2005, accessed January 5, 2011, http://news.zdnet.com/2100-9589_22-141743.html.
11. Ea_spouse, “EA: The Human Story.”
12. Anonymous, “Unacceptable,” July 9, 2009, comment on ea_spouse, “EA: The Human Story,” accessed January 5, 2011, http://ea-spouse.live journal.com/274.html?thread=1387794#t1387794.
13. Wikipedia, “Death of Neda Agha-Soltan,” accessed January 5, 2011, http://en.wikipedia.org/wiki/Death_of_Neda_Agha-Soltan.
14. WorldPublicOpinion.Org, “People Who Know Foreigners or Travel More Likely to See Themselves as Global Citizens: Global Survey,” May 18, 2009, accessed January 5, 2011, http://www.worldpublicopinion.org/pipa/articles/views_on_countriesregions_bt/608.php?lb=btvoc&pnt=608&nid=&id=.
15. The Pew Research Center, “Independents Take Center Stage in Obama Era,” May 21, 2009, accessed January 5, 2011, http://people-press.org/report/?pageid=1522; and The Pew Research Center, “Trends in Political Values and Core Attitudes: 1987-2007,” March 22, 2007, accessed January 5, 2011, http://people-press.org/reports/pdf/312.pdf.
16. Emmanuel Saez, “Striking It Richer: The Evolution of Top Incomes in the United States,” Pathways Magazine, August 5, 2009, accessed January 5, 2011, http://elsa.berkeley.edu/~saez/saez-UStopincomes-2007.pdf.
17. Ibid.
18. Fleishman-Hillard Inc. and the National Consumers League, Rethinking Corporate Social Responsibility, May 2007, accessed January 5, 2011, http://fleishmanhillard.com/wp-content/uploads/2007/05/csr_white_paper.pdf.
19. NielsenWire, “Global Shoppers Consider Ethics and Environment,” November 21, 2008, accessed January 4, 2011, http://blog.nielsen.com/nielsenwire/consumer/global-shoppers-consider-ethics-and-environment/.
20. The Pew Research Center, “Independents Take Center Stage in Obama Era,” May 21, 2009, accessed January 21, 2011, http://people-press.org/report/?pageid=1517.
21. Corporation for National and Community Service, “Volunteering in America Research Highlights,” July 2009, accessed January 5, 2011, http://www.volunteeringinamerica.gov/assets/resources/VolunteeringInAmerica ResearchHighlights.pdf.
22. Ibid.
23. Corporation for National and Community Service, “Volunteering in America 2010,” June 2010, accessed January 11, 2011, http://www.volunteeringinamerica.gov/assets/resources/Issue BriefFINALJune15.pdf.
24. Michael J. Berland, “What America Cares About: Compassion Counts More Than Ever,” Parade, March 07, 2010, accessed January 5, 2011, http://www.parade.com/news/what-america-cares-about/featured/100307compassion-counts-more-than-ever.html.
25. Edelman, “Despite Economic Crisis, Consumers Value Brands’ Commitment To Social Purpose, Global Study Finds,” news release, November 17, 2008, accessed January 5, 2011, http://www.edelman.com/news/ShowOne.asp?ID=198.
26. Ibid.
27. Martin Fletcher and Greg Hurst, “Oxford’s Tribute to Student Neda Soltan Denounced by Iran,” The Times, November 11, 2009, accessed January 5, 2011, http://www.timesonline.co.uk/tol/news/uk/article6911629.ece.
28. We Are Neda, “About Us,” accessed January 5, 2011, http://neda.webnode.com/about-us/.
29. Lee Scott, CEO of Walmart, “Twenty First Century Leadership,” prepared remarks, October 24, 2005, accessed January 5, 2011, http://www.walmartstores.com/download/1965.pdf.
30. Walmart, “Walmart Takes the Lead on Environmental Sustainability,” March 1, 2010, accessed January 5, 2011, http://www.walmartstores.com/download/2392.pdf.
31. Ibid.
32. Carbon Disclosure Project, Carbon Disclosure Project 2009, accessed January 5, 2011, https://www.cdproject.net/CDPResults/CDP%202009 %20SandP500%20with%20Industry%20Snapshots.pdf.
33. Scott, “Twenty First Century Leadership.”
34. Lydia Saad, “Water Pollution Americans’ Top Green Concern,” Gallup, March 25, 2009, accessed February 12, 2011, http://www.gallup.com/poll/117079/water-pollution-americans-top-green-concern.aspx.
35. Ibid.
36. WorldPublicOpinion.org, “Multi-Country Poll Reveals That Majority of People Want Action on Climate Change, Even if It Entails Costs,” December 3, 2009, accessed January 5, 2011, http://www.worldpublicopinion.org/pipa/articles/btenvironmentra/649.php?lb=bte&pnt=649&nid=&id=.
37. Accenture, “Mobility Takes Center Stage: The 2010 Accenture Consumer Electronics Products and Services Usage Report,” 2010, accessed January 5, 2011, https://microsite.accenture.com/landing_pages/consumertechnologyusage/
Documents/AccentureConsumerTech2010.pdf.
38. Riley E. Dunlap and Angela G. Mertig, American Environmentalism: The U.S. Environmental Movement, 1970-1990 (Washington, D.C.: Taylor & Francis, 1992).
39. Lydia Saad, “Increased Number Think Global Warming Is Exaggerated,” Gallup, March 11, 2009, accessed January 5, 2011, http://www.gallup.com/poll/116590/Increased-Number-Think-Global-Warming-Exaggerated.aspx.
40. Jeffrey M. Jones, “Oil Spill Alters Views on Environmental Protection,” Gallup, May 27, 2010, accessed January 5, 2011, http://www.gallup.com/poll/137882/Oil-Spill-Alters-Views-Environmental-Protection.aspx.
41. See overview of The Omnivore’s Dilemma, by Michael Pollan, accessed January 5, 2011, http://michaelpollan.com/omnivore.php.
42. Laurie Goodstein, “Evangelical Leaders Join Global Warming Initiative,” New York Times, February 8, 2006, accessed January 5, 2011, http://www.nytimes.com/2006/02/08/national/08warm.html?pagewanted=all.
43. Gabe Derita, “Envirogelicalism: The Growing Force of Evangelicals in the Climate Change Debate,” OnEarth, February 17, 2010, accessed January 5, 2011, http://www.onearth.org/blog/envirogelicalism-the-growing-force-of-evangelicals-in-the-climate-change-debate.
44. Climate Solutions, “BLCS member listing,” accessed January 5, 2011, http://climatesolutions.org/solutions/initiatives/blcs/search-business-leaders.
45. United Nations, “Overview of the UN Global Compact,” November 23, 2010, accessed January 5, 2011, http://www.unglobalcompact.org/About TheGC/index.html.
46. Accenture and The United Nations, “A New Era of Sustainability,” 2010, accessed January 5, 2011, https://microsite.accenture.com/sustainabil ity/research_and_insights/Pages/A-New-Era-of-Sustainability.aspx.
47. Stacy Mitchell, “Putting Wal-Mart’s Green Moves in Context,” Grist, March 4, 2010, accessed February 12, 2011, http://www.grist.org/article/putting-wal-marts-green-moves-in-context/.
48. Walmart, “Walmart Announces Sustainable Product Index,” July 16, 2009, accessed January 5, 2011, http://walmartstores.com/FactsNews/News Room/9277.aspx; and Walmart, “Walmart Announces Goal to Eliminate 20 Million Metric Tons of Greenhouse Gas Emissions from Global Supply Chain,” February 25, 2010, accessed January 5, 2011, http://walmartstores.com/FactsNews/NewsRoom/9668.aspx.
49. Walmart, “A Message from Mike Duke,” Walmart 2009 Global Sustainability Report, accessed January 5, 2011, http://walmartstores.com/sites/sustainabilityreport/2009/letterMikeDuke.html.
50. Hannah Teter, interview by NBC Nightly News with Brian Williams, February 19, 2010, accessed January 21, 2011, http://www.msnbc.msn.com/id/3032619//vp/35259534#35259534.
51. Frank N. Magid Associates, Inc., American Tapestry: The Millennial Generation, presentation to the Carnegie-Knight News21 Initiative for the Future of Journalism, December 5, 2008, accessed January 25, 2011, http://www.knightdigitalmediacenter.org/resources/powerpoint/200812Tapestry-Shutte.ppt.
52. Pew Research Center, “The Millennials: Confident. Connected. Open to Change,” February 24, 2010, accessed January 5, 2011, http://pew research.org/pubs/1501/millennials-new-survey-generational-personality-upbeat-open-new-ideas-technology-bound.
53. Lydia Saad, “Increased Number Think Global Warming Is Exaggerated,” Gallup, March 11, 2009, accessed January 5, 2011, http://www.gallup.com/poll/116590/increased-number-think-global-warming-exaggerated.aspx.
54. Morley Winograd and Michael D. Hais, “The Republican Party Ignores Young ‘Millennials’ at Its Peril,” Los Angeles Times, May 10, 2009, accessed February 12, 2011, http://articles.latimes.com/2009/may/10/opinion/oe-winograd-hais10.
55. Pew Research Center, “The Millennials: Confident. Connected. Open to Change.”
56. Hannah Teter, Twitter message, February 11, 2010, accessed January 5, 2011, http://twitter.com/hannahteter/status/8998019158.
57. Edelman, “Highlights from the Edelman 8095 Global Study and 8095 Live That Demonstrate How Brands Fit into Millennials’ Lives,” accessed January 25, 2011, http://www.edelman.com/insights/special/8095/8095GlobalOverview.pdf; and Edelman, “New Study Shows That for Millennials, Taking Action on Behalf of Brands Is a Core Value,” accessed January 25, 2011, http://www.edelman.com/news/ShowOne.asp?ID=261.
58. Nicole Giuntoli, “Three Millennial Myths … Debunked!” Families and Work Institute Blog, July 24, 2009, accessed January 5, 2011, http://familiesandwork.org/blog/?p=192.
59. Ron Alsop, The Trophy Kids Grow Up (San Francisco: Jossey-Bass, 2008), 16.
60. Pew Research Center, “A Pro-Government, Socially Liberal Generation,” February 18, 2010, accessed January 5, 2011, http://pewresearch.org/assets/pdf/1497.pdf.
61. Pew Research Center, “The Millennials: Confident. Connected. Open to Change.”
62. Ibid.
CHAPTER 4. THE POLITICAL IMPERATIVE
1. CNN World Business, “European Commission Fines Computer Chipmaker Intel $1.45B,” May 13, 2009, accessed January 5, 2011, http://edition.cnn.com/2009/BUSINESS/05/13/europe.intel.anti.trust/.
2. Europa, “Antitrust: Commission Imposes Fine of 1.06 bn Euro on Intel for Abuse of Dominant Position; Orders Intel to Cease Illegal Practices,” May 13, 2009, accessed January 5, 2011, http://europa.eu/rapid/pressReleases Action.do?reference=IP/09/745.
3. Associated Press, “EU Fines Microsoft a Record $1.3 Billion,” February 27, 2008, accessed January 17, 2011, http://www.msnbc.msn.com/id/23366103/ns/business-world_business/.
4. Forbes, “100 Most Powerful Women: #53 Neelie Kroes,” August 19, 2009, accessed January 5, 2011, http://www.forbes.com/lists/2009/11/power-women-09_Neelie-Kroes_41C2.html.
5. Europa, “Antitrust: Commission imposes fine.”
6. Government Equalities Office, “Equality Act of 2010,” 2010, accessed January 11, 2011, http://www.equalities.gov.uk/equality_bill.aspx.
7. Government Equalities Office, “Equality Act: Four Decades after the ‘Made in Dagenham’ Pioneers, Employees Get a New Weapon in the Fight for Equal Pay,” news release, October 1, 2010, accessed March 22, 2011, http://www.equalities.gov.uk/media/new_funding_will_help_disabled/
equality_act_four_decades_aft.aspx; and Government Equalities Office, “FAQs on the Equality Act 2010: Equal Pay,” accessed January 11, 2011, http://www.equalities.gov.uk/equality_act_2010/faqs_on_commencement_of_the_eq/equal_pay.aspx.
8. Government Equalities Office, “Harman: Equality Bill Confirmed in Legislative Programme,” news release, December 3, 2008, accessed January 5, 2011, http://www.equalities.gov.uk/media/press_releases/equality_bill_confirmed.aspx.
9. Sheryl Gay Stolberg, “Obama Signs Equal-Pay Legislation,” New York Times, January 29, 2009, accessed January 5, 2011, http://www.nytimes.com/2009/01/30/us/politics/30ledbetter-web.html.
10. Huma Khan, “In First 100 Days, Obama Flips Bush Admin’s Policies,” ABC News, April 29, 2009, accessed January 5, 2011, http://abcnews.go.com/Politics/Obama100days/story?id=7042171&page=3.
11. U.S. Department of Labor, “Secretary Hilda L. Solis Presents Us Department of Labor Budget Request for Fiscal Year 2011,” news release, February 1, 2010, accessed January 25, 2011, http://www.osha.gov/pls/oshaweb/owadisp.show_document?p_table=NEWS_RELEASES&p_id=17139.
12. Ed Frauenheim, “China’s Contract Law: Something for Everyone,” Workforce Management, August 20, 2007, accessed January 5, 2011, http://www.workforce.com/archive/feature/25/09/64/index.php.
13. People’s Daily Online, “Editorial on Importance of Building Socialist Harmonious Society,” October 12, 2006, accessed January 5, 2011, http://english.peopledaily.com.cn/200610/12/eng20061012_311272.html.
14. John M. Broder, “Climate Goal Is Supported by China and India,” New York Times, March 9, 2010, accessed January 5, 2011, http://www.nytimes.com/2010/03/10/science/earth/10climate.html.
15. Richard A. Posner, “Capitalism in Crisis,” Wall Street Journal, May 7, 2009, accessed January 5, 2011, http://online.wsj.com/article/SB124165301306893763.html.
16. WorldPublicOpinion.org, “Global Poll Shows Support for Increased Government Spending and Regulation,” September 13, 2009, accessed January 5, 2011, http://www.worldpublicopinion.org/pipa/articles/btglobalization tradera/637.php?lb=btgl&pnt=637&nid=&id=.
17. WorldPublicOpinion.org, “Wide Dissatisfaction with Capitalism—Twenty Years after Fall of Berlin Wall,” November 9, 2009, accessed January 5, 2011, http://www.worldpublicopinion.org/pipa/articles/btglobalization tradera/644.php?lb=btgl&pnt=644&nid=&id=.
18. Harris Interactive, “A Record Number of Americans (88%) Say the Reputation of Corporate America Is ‘Not Good’ or ‘Terrible,’ but the Public Rewards Companies That Concentrate on Building Their Reputations with ‘Excellent’ Reputation Scores,” April 28, 2009, accessed January 5, 2011, http://www.harrisinteractive.com/news/pubs/Harris_Interactive_News_2009_04_28.pdf.
19. Frank Newport, “Americans Leery of Too Much Gov’t Regulation of Business,” Gallup, February 2, 2010, accessed January 5, 2011, http://www.gallup.com/poll/125468/americans-leery-govt-regulation-business.aspx.
20. Kenneth P. Vogel, “Court Decision Opens Floodgates for Corporate Cash,” Politico, January 21, 2010, accessed January 21, 2011, http://www.politico.com/news/stories/0110/31786.html.
21. Peter Cleveland, “Intel Statements on the European Commission Decision,” Intel Blog, May 13, 2009, accessed January 5, 2011, http://blogs.intel.com/policy/2009/05/intel_statements_on_the_european_commission_decision.php.
22. Office of the Attorney General, “Attorney General Cuomo Files Antitrust Lawsuit Against Intel Corporation, the World’s Largest Maker of Microprocessors,” November 4, 2009, accessed January 6, 2011, http://www.ag.ny.gov/media_center/2009/nov/nov4a_09.html.
23. Federal Trade Commission, “FTC Challenges Intel’s Dominance of Worldwide Microprocessor Markets,” news release, December 16, 2009, accessed January 6, 2011, http://www.ftc.gov/opa/2009/12/intel.shtm.
24. Peter Wallsten and Eliza Gray, “Confidence Waning in Obama, U.S. Outlook,” Wall Street Journal, June 23, 2010, accessed January 6, 2011, http://online.wsj.com/article/SB10001424052748703900004575325263274951230.html.
25. Neelie Kroes, “Neelie Kroes European Commissioner for Competition Policy Five Years of Sector and Antitrust Inquiries Keynote Address at Competition 09 Summit,” Brussels, December 3, 2009, http://europa.eu/rapid/pressReleasesAction.do?reference=SPEECH/09/568&format=HTML &aged=0&language=EN&guiLanguage.
26. Brian Grow, “Home Depot’s CEO Cleans Up,” BusinessWeek, May 23, 2006, accessed January 27, 2011, http://www.businessweek.com/investor/content/may2006/pi20060523_284791.htm; and Brian Grow, “Out at Home Depot,” BusinessWeek, January 9, 2007, accessed January 6, 2011, http://www.msnbc.msn.com/id/16469224/.
27. Mark Clothier, “Home Depot’s Nardelli Ousted after Six-Year Tenure,” Bloomberg, January 3, 2007, accessed March 17, 2011, http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aLphvT.qIqZI&refer =home; and Grow, “Out at Home Depot.”
28. Ibid.
29. The Home Depot, “Proxy Statement Pursuant to Section 14(A) of the Securities Exchange Act of 1934,” December 18, 2006, accessed January 6, 2011, http://sec.gov/Archives/edgar/data/354950/000089882206001486/homdepdef14a.txt.
30. Charles Duhigg, “Investor Seeks Review of Home Depot’s Management,” New York Times, December 19, 2006, accessed January 6, 2011, http://www.nytimes.com/2006/12/19/business/19home.html.
31. Grow, “Out at Home Depot.”
32. Audit Analytics, “Activist Shareholder Analysis—A Three-Year Trend,” May 18, 2009, accessed January 6, 2011, http://www.alacrastore.com/storecontent/Audit_Analytics_Trend_Reports-Activist_Shareholder_Analysis_A_Three_Year_Trend-2033-12.
33. Walden Asset Management, “More Than 50 Companies Voluntarily Adopt ‘Say on Pay’ as Institutional Investors Continue to Press for an Advisory Vote,” news release, March 2, 2010, accessed January 6, 2011, http://www.waldenassetmgmt.com/social/action/SOP_3-2-10.pdf.
34. John Keenan of AFSCME, e-mail message to Ed Frauenheim, March 11, 2010.
35. Walden Asset Management, “More Than 50 Companies Voluntarily Adopt ‘Say on Pay’.”
36. AFSCME, “More than 50 Companies Voluntarily Adopt ‘Say on Pay’ as Institutional Investors Continue to Press for an Advisory Vote,” March 2, 2010, accessed January 6, 2011, http://www.afscme.org/press/27802.cfm.
37. The Library of Congress, Dodd-Frank Wall Street Reform and Consumer Protection Act, 111th Cong., 2d sess., 2010, H.R.4173.
38. People’s Solidarity for Participatory Democracy, “PSPD Hold Press Conference on SK Conglomerates Group’s Minority Shareholders Movement,” news release, January 19, 2004, accessed January 6, 2011, http://blog.peoplepower21.org/English/10653.
39. Robert Goddard, “Germany: ‘Say on Pay’ Arrives and Other Remuneration Reforms,” Corporate Law and Governance (blog), September 17, 2009, accessed January 6, 2011, http://corporatelawandgovernance.blogspot.com/2009/09/germany-say-on-pay-arrives-and-other.html.
40. Rudy Ruitenberg and Fabienne Lissak, “Atos Says Centaurus, Pardus Should Be Denied Majority,” Bloomberg, May 16, 2008, accessed January 6, 2011, http://www.bloomberg.com/apps/news?pid=20601085&sid=au F9EEcUR3xQ&refer=europe; Atos Origin, “Joint Statement between Atos Origin and Centaurus & Pardus,” May 28, 2008, accessed January 6, 2011, www.atosorigin.com/en-us/Newsroom/en-us/Press_Releases/2008/2008_05_28_01.htm; and Dominique Vidalon, “Atos Origin to Change to Single Board Structure,” Reuters, January 2, 2009, accessed January 6, 2011, http://www.reuters.com/article/idUSL218587320090102.
41. RiskMetrics Group, “Turning Point for Shareholder Activism in Europe,” Description of Webcast to take place June 27, 2008, http://replay.waybackmachine.org/20090315005400/http://www.riskmetrics.com/webcasts/
2008shareholder_activism_eu.
42. The Home Depot, Annual Report Pursuant to Section 13 or 15(d) of The Securities Exchange Act of1934, January 29, 2006, accessed January 6, 2011, http://sec.gov/Archives/edgar/data/354950/000104746906004211/a2168212z10-k.htm.
43. Mark Clothier, “Home Depot’s Nardelli Ousted After Six-Year Tenure,” Bloomberg, January 3, 2007, accessed January 6, 2011, http://www.bloomberg.com/apps/news?pid=20601087&sid=aLphvT.qIqZI&refer =home.
44. Grow, “Out at Home Depot.”
45. Ibid.
46. Yonca Ertimur, Fabrizio Ferri, and Volkan Muslu, Shareholder Activism and CEO Pay, August 2009, accessed January 6, 2011, http://center forpbbefr.rutgers.edu/20thFEA/AccountingPapers/Session5/Ertimur,%20Ferri,%20and%20Muslu.pdf.
47. Ylan Q. Mui, “Seeing Red Over a Golden Parachute,” The Washington Post, January 4, 2007, accessed January 6, 2011, http://www.washingtonpost.com/wp-dyn/content/article/2007/01/03/AR2007010300553.html.
48. Patti Bond, “No Golden Net for New Depot Chief,” Atlanta Journal-Constitution, January 25, 2007.
49. Rachel Tobin Ramos, “Shareholders Mostly Satisfied,” Atlanta Journal-Constitution, May 29, 2009.
50. Ibid.
51. Darden Business Publishing, “HCL Technologies: Employees First, Customers Second,” September 29, 2008, accessed January 6, 2011, http://www.hcltech.com/pdf/Darden.pdf.
52. Ibid.
53. Vineet Nayar, Employees First, Customers Second (Boston: Harvard Business Press, 2010), 7.
54. Thomas Friedman, The World Is Flat: A Brief History of the Twenty-first Century (New York: Farrar, Straus & Giroux, 2005), 178-179.
55. James O’Toole and Edward E. Lawler III, The New American Workplace (New York: Macmillan, 2008), 47.
56. Ibid., 50.
57. Ibid., 50.
58. Ibid., 48.
59. Ibid., 49.
60. Ed Frauenheim, “HCL Optimas Award Winner for Innovation,” Workforce Management, October 2008, accessed January 6, 2011, http://www.workforce.com/archive/feature/25/88/20/index.php.
61. Darden Business Publishing, “HCL Technologies: Employees First, Customers Second.”
62. Ibid.
63. O’Toole and Lawler, The New American Workplace, 46-47.
64. Ibid., Chapter 11.
65. WorldBlu, “40 Companies Win Worldwide Award for Democracy in the Workplace,” news release, April 14, 2009, accessed January 6, 2011, http://www.worldblu.com/wp-content/themes/worldblu/docs/world blu-press-041409-list.pdf.
66. Jena McGregor, “The World’s Most Influential Companies,” BusinessWeek, December 11, 2008, accessed January 6, 2011, http://images.business week.com/ss/08/12/1211_most_influential/26.htm.
67. David Kirkpatrick, “The World’s Most Modern Management—in India,” Fortune, April 14, 2006, accessed January 6, 2011, http://money.cnn.com/2006/04/13/magazines/fortune/fastforward_fortune/index.htm.
68. Vineet Nayar, Employees First, Customers Second, 13.
CHAPTER 5. GOODNESS MATTERS
1. The major advantage of using a firm’s stock performance—its appreciation or depreciation over time—as a method of assessing the payoff to “goodness” is that it can be measured comparably across all publicly traded firms. This is especially true when stock performance is measured relative to the firm’s competitors (since this controls for variations in performance that are attributable to the industry in which the firm operates, as opposed to its goodness). Other measures, such as profits, vary considerably with firm size (and industry).
2. Great Place to Work Institute, “Our Model,” 2011, accessed January 14, 2011, http://greatplacetowork.com/what_we_do/model.php. The criteria used to judge companies for the annual Fortune’s Best Companies to Work For list overlap closely with our definition of a good employer. The Great Place to Work Institute, which compiles the list for Fortune, says a great place to work is one in which you “trust the people you work for, have pride in what you do, and enjoy the people you work with.” Trust and camaraderie are natural outgrowths of the caring environment and ethical, collaborative leadership style we see as crucial to goodness as an employer. And pride comes in part from an inspiring purpose, which is central to our vision of worthy companies. Our definition of a good employer, though, extends beyond trust, camaraderie, and pride to include smart use of quantitative data analysis in the way companies marshal and manage workers.
3. Great Place to Work Institute, “Financial Results,” 2011, accessed January 14, 2011, http://www.greatplacetowork.com/what_we_believe/graphs.php. This portfolio (managed by the Russell Investment Group) is reset annually. That is to say, if a firm is removed from Fortune’s Best Places to Work For list, it is then removed from the portfolio. Conversely, when a new (publicly traded) company is added to the list, it is added to the portfolio. This portfolio performs substantially better than a portfolio that has not been reset annually, being based instead on the original (1998) Best Places to Work For list (10.30% vs. 6.44%).
4. Alex Edmans, “Does the Stock Market Fully Value Intangibles? Employee Satisfaction and Equity Prices,” Journal of Financial Economics (forthcoming 2011).
5. Gathering the data necessary to make these investment decisions is an arduous and imperfect process (since the data is not publicly available). So we almost certainly fail to include some high-investing firms that should be included in Portfolio A and incorrectly include other firms (who provide us with unaudited and perhaps incorrect data on their investments in employee education and training). Although the process is imperfect, the resulting portfolio nonetheless has performed impressively in the stock market.
6. There is, of course, a potential chicken-and-egg problem here. It could be that companies that are successful for reasons other than training simply pour more money into training. Dan and Laurie, along with colleagues from the Federal Reserve Board and Georgetown University, tackled this issue in a 2004 paper. It found that training expenditures were not driven by past stock returns, even as it showed a strong link between training expenditures and subsequent stock market performance.
7. KLD Indexes, “KLD400 Performance Statistics,” 2010, accessed January 14, 2011, http://www.kld.com/indexes/ds400index/performance.html.
8. SAM, “Sam Corporate Sustainability Assessment—The Review,” 2009, accessed January 14, 2011, http://www.sam-group.com/yearbook/download/10years_scsa_en.pdf.
9. ATKearney, “Companies with a Commitment to Sustainability Tend to Outperform Their Peers During the Financial Crisis,” news release, February 9, 2009, accessed January 14, 2011, http://www.atkearney.com/index.php/News-media/companies-with-a-commitment-to-sustainability-tend-to-out perform-their-peers-during-the-financial-crisis.html.
10. Scott J. Callan and Janet M. Thomas, “Corporate Financial Performance and Corporate Social Performance: An Update and Reinvestigation,” Corporate Social Responsibility and Environmental Management, February 24, 2009, accessed January 14, 2011, http://onlinelibrary.wiley.com/doi/10.1002/csr.182/abstract.
11. Arie de Geus, The Living Company (Boston: Harvard Business School Press, 1997).
12. Ibid.
13. Ibid.
14. Danny Miller and Isabelle Le Breton-Miller, Managing for the Long Run: Lessons in Competitive Advantage from Great Family Businesses (Boston: Harvard Business School Publishing, 2005).
15. Joseph B. Bragdon, Profit for Life: How Capitalism Excels (Cambridge: The Society for Organizational Learning, 2006).
16. Ibid.
17. Theresa Welbourne, “Want to Make Money on IPOs? Learn About Companies’ HR Management Strategies,” Workforce Management, September 2010, accessed January 14, 2011, http://www.workforce.com/archive/feature/hr-management/want-make-money-ipos-learn-about-companies-hr/index.php.
18. Theresa Welbourne, interview by Ed Frauenheim, August 21, 2010.
19. Welbourne, “Want to Make Money on IPOs?”
20. Christine Harper, “Goldman Sachs Posts Record Profit, Beating Estimates,” Bloomberg, July 14, 2009, accessed January 14, 2011, http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a2jo3RK2_Aps.
21. Edelman, “Despite Prolonged Global Recession, an Increasing Number of People Are Spending on Brands That Have Social Purpose,” news release, October 21, 2009, accessed January 25, 2011, http://www.edelman.com/news/ShowOne.asp?ID=222.
22. Edelman, “Role of Citizen Consumer to Tackle Social Issues Rises, as Expectation of Government to Lead Declines,” news release, November 4, 2010.
23. Edelman, “Despite Prolonged Global Recession, an Increasing Number of People …”
24. Edelman, “Edelman goodpurpose Study 2010,” accessed January 10, 2011, http://www.edelman.com/insights/special/GoodPurpose2010global PPT_WEBversion.pdf.
25. Edelman, “Role of Citizen Consumer to Tackle Social Issues Rises …”
26. WPP, “2009 Green Brands Global Survey Published,” July 21, 2009, accessed January 14, 2011, http://www.wpp.com/wpp/press/press/default.htm?guid=%7Bb983b1a9-ab92-4427-b75f-ab35f 2565dad%7D.
27. Ibid.
28. Ibid.
29. Co-operative Bank, “Ten Years of Ethical Consumerism: 1999-2008,” accessed January 14, 2011, http://www.goodwithmoney.co.uk/assets/Ethical-Consumerism-Report-2009.pdf.
30. Packaged Facts, “Despite Recession, the Market for Ethical Consumer Products Remains Healthy,” October 5, 2009, accessed January 14, 2011, http://www.packagedfacts.com/about/release.asp?id=1476.
31. Ibid.
32. Remi Trudel and June Cotte, “Does It Pay to Be Good?” MIT Sloane Management Review 50, no. 2 (2009).
33. Ibid.
34. Fleishman-Hillard/National Consumers League, Rethinking Corporate Social Responsibility, May 2007, accessed January 7, 2011, http://fleishmanhillard.com/wp-content/uploads/2007/05/csr_white_paper.pdf.
35. Trudel and Cotte, “Does It Pay to Be Good?”
36. Edelman, “Mutually Beneficial Marketing Takes Flight.”
37. Randstad, “2009 World of Work,” 2009, accessed January 14, 2011, http://us.randstad.com/content/findcandidates/employer-services/file-index/2009-World-of-Work.pdf.
38. Representative of SAM, e-mail to Ed Frauenheim, January 23, 2010. Research and investment firm SAM does the analysis that underpins the Dow Jones Sustainability Indexes.
39. Richard Stengel, “For American Consumers, a Responsibility Revolution,” Time, September 10, 2009, accessed January 14, 2011, http://www.time.com/time/nation/article/0,8599,1921444,00.html.
40. Towers Watson, “Leveraging Your Brand to Create an Engaged Workforce,” August 2008, accessed January 14, 2011, http://www.watson wyatt.com/render.asp?id=19667.
41. Ibid.
42. A notorious 2005 memo suggested the company could limit benefit costs by making cashiers do some “cart-gathering” to attract a healthier workforce. Steven Greenhouse and Michael Barbaro, “Wal-Mart Memo Suggests Ways to Cut Employee Benefit Costs,” New York Times, October 26, 2005, accessed January 14, 2011, http://www.nytimes.com/2005/10/26/business/26walmart.ready.html; and Ed Frauenheim, “Wal-Mart Memo Highlights Health Care Risk,” Workforce Management, October 27, 2005, accessed January 14, 2011, http://www.workforce.com/section/00/article/24/19/76.php.
43. Ylan Q. Mui, “Wal-Mart Says It Will Improve Health Benefits,” Washington Post, February 24, 2006, accessed January 14, 2011, http://www.washingtonpost.com/wpdyn/content/article/2006/02/23/AR2006022301857.html; and Ceci Connolly, “At Wal-Mart, a Health-Care Turnaround,” Washington Post, February 13, 2009, accessed January 14, 2011, http://www.washingtonpost.com/wpdyn/content/article/2009/02/12/AR2009021204096.html?sid=ST2009021300507.
44. WPP, “2009 Green Brands Global Survey Published,” July 22, 2009, accessed January 14, 2011, http://www.wpp.com/wpp/press/press/default.htm?guid=%7Bb983b1a9-ab92-4427-b75f-ab35 f2565dad%7D.
45. Harris Interactive, Annual RQ2008 Summary Report, 2009.
46. Ibid.
47. Ibid.
48. Ibid.
49. Harris Interactive, Annual RQ 2009 USA Summary Report, April 2010.
50. Edelman, “Edelman goodpurpose Study 2010.”
51. Richard Stengel, “Doing Well by Doing Good,” Time, September 10, 2009, accessed January 14, 2011, http://www.time.com/time/magazine/article/0,9171,1921591,00.html.
52. Richard Stengel, “For American Consumers, a Responsibility Revolution,” Time, September 10, 2009, accessed January 14, 2011, http://www.time.com/time/nation/article/0,8599,1921444,00.html.
CHAPTER 6. RANKING COMPANIES
1. Indeed, there were missing values even for some of the Fortune 100 companies on some of the measures that we selected, thereby reducing the comparability of the final Good Company Index rankings for those companies.
2. We choose wRatings because it was the most comprehensive cross-industry source of information on customer ratings that we could find. Robert McCormack (a partner at Pasadena Angels, a group of private investors) says, “With wRatings, the guesswork is gone. You can immediately see which companies are best positioned to out-maneuver their rivals and build market share.”
3. We don’t think it’s necessarily fair or accurate to label the employers at the low end of the Glassdoor.com rating system “bad” employers. But we do believe that the evidence from the employee surveys available on Glassdoor.com accurately indicates that some substantial segment of employees at these firms find their experience to be unsatisfactory. Hence, we merely note the fact that these firms fall at the bottom of the employee ratings that are available on Glassdoor.com.
4. Glassdoor.com, “Companies & Reviews,” accessed January 11, 2011, http://www.glassdoor.com/Reviews/index.htm.
5. The degree of confidence in the representativeness of employees’ rating of their employer increases with the number of employees who have responded to the survey. Hence, we choose 25 as the minimum number of responses on which to make our assessment. For the 22 companies that had fewer than 25 responses, we coded this information as missing (with an implicit score of 0) in our overall Good Company ranking system.
6. If there is a “normal distribution” of firms, then firms that are in the top (or bottom) 12.5 percent (one-eighth) of the distribution are one standard deviation above (or below) the mean of the distribution. In large samples, such as wRating’s database, this is a statistically significant difference from the average value, and we applied the same standard to the Glassdoor.com data.
7. In order to maintain consistency with other categories in our Good Company Index ranking system, we capped the number of “Good Employer” points at 2. So an organization that appeared on the Fortune list of Best Companies to Work For and in the top one-eighth of the Glassdoor.com distribution would receive a maximum of 2 points in the Good Employer category.
8. HP Alumni, “The HP Way,” accessed January 17, 2011, http://www.hpalumni.org/hp_way.htm.
9. Ed Frauenheim, “HP Fattened up before Latest Trim,” CNET News, July 20, 2005, accessed January 17, 2011, http://news.cnet.com/HP-fattenedup-before-latest-trim/2100-1014_3-5797194.html.
10. Eric Jackson, “Mark Hurd’s Excesses Were in Plain Sight,” The Street, August 7, 2010, accessed January 17, 2011, http://www.thestreet.com/story/10830261/1/hurds-excesses-have-been-in-plain-sight.html.
11. Joe Nocera, “Real Reason for Ousting H.P.’s Chief,” New York Times, August 13, 2010, accessed January 17, 2011, http://www.nytimes.com/2010/08/14/business/14nocera.html?pagewanted=2&_r=1.
12. Hewlett-Packard Company, Form 8-K, Securities and Exchange Commission, August 6, 2010, accessed January 17, 2011, http://sec.gov/Archives/edgar/data/47217/00010474691000 7177/a2199755z8-k.htm; and Ashlee Vance, “Boss’s Stumble May Also Trip Hewlett-Packard,” New York Times, August 8, 2010, accessed January 17, 2011, http://www.nytimes.com/2010/08/09/technology/09hp.html?hp.
13. wRatings incorporates information on the following 17 components: trusted, quality, fair-priced, consistent, simplicity, time-sensitive, precise, connection, stability, useful, availability, safe, competent, variety, unique, cool, leadership.
14. If there is a “normal distribution” of firms, then firms that are in the top (or bottom) 12.5 percent (one-eighth) of the distribution are one standard deviation above (or below) the mean of the distribution. In large samples, such as wRatings’s database, this is a statistically significant difference from the average value.
15. Note that because the Fortune 100 are compared to wRatings’s larger database, it need not be the case that 25 percent of the Fortune 100 fall into the top (or bottom) 25 percent of wRatings’s ranking of over 4,000 firms for which it has ratings.
16. Although CEO pay is reported in corporate filings by publicly traded companies, it can be difficult to compare accurately across firms due to differences in bonus terms, valuation of stock and option awards, and other benefits and perquisites. Therefore, we used the 2010 New York Times executive compensation study compiled by compensation research firm Equilar, with the AFL-CIO compensation database serving as a backup source. Full details are available in the Appendix.
17. Systematic information on corporate use of tax havens is difficult to come by. Based on our research, the 2008 GAO report is the most complete source of information available, and we therefore used it as the basis for the inaugural Good Company Index scoring in this area. But we also recognize that some of the specific information in the report may no longer be fully up-to-date. As noted in more detail below, we also notified each company of the specific elements of their scores and invited their responses. No companies objected to their tax haven scores.
18. Kraft Foods, “Community Involvement,” accessed January 17, 2011, http://www.kraftfoodscompany.com/About/community-involvement/community-involvement.aspx.
19. IBM, “IBM Reading Comprehension Grants Improve Literacy Skills,” accessed January 17, 2011, http://www.ibm.com/ibm/ibmgives/grant/adult/ReadingCompanion.shtml.
20. It should be noted that our Contribution ratings are based on a systematic and disciplined review and scoring of materials voluntarily made available by companies. It is our hope that more extensive and/or more comparable information will gradually become available in future years, strengthening this element of the scoring process.
21. Government Accountability Office, “International Taxation,” December 2008, accessed January 17, 2011, http://www.gao.gov/new.items/d09157.pdf.
22. This finding also is supported by an extensive analysis done jointly by the Investor Responsibility Research Center Institute and PROXY Governance Incorporated. Investor Responsibility Research Center (IRRC) Institute and PROXY Governance Inc., “Executive Compensation Analysis Reveals High CEO Pay for Underperforming Companies,” news release, June 24, 2010, accessed January 17, 2011, http://eon.businesswire.com/portal/site/eon/permalink/?ndmViewId=news_view&newsId=2010024005334&news Lang=en.
23. “EU Fines Microsoft a Record $1.3 Billion,” Associated Press, February 27, 2008, accessed January 17, 2011, http://www.msnbc.msn.com/id/23366103/ns/business-world_business/.
24. Department of Justice, “General Reinsurance Corporation Enters into Agreement Resolving Its Role in Fraudulent Reinsurance Transaction with AIG,” January 20, 2010, accessed January 17, 2011, http://www.justice.gov/opa/pr/2010/January/10-crm-053.html.
25. Department of Health and Human Services Office of Inspector General, “OIG Reports More Than $2 Billion in Recoveries from Fighting Fraud, Waste, and Abuse for First-Half FY 2008,” June 12, 2008, accessed January 17, 2011, http://oig.hhs.gov/publications/docs/press/2008/semi annual_press_spring2008.pdf.
26. Department of Justice, “U.S. Files Suit Against Johnson & Johnson for Paying Kickbacks to Nation’s Largest Nursing Home Pharmacy,” January 15, 2010, accessed January 17, 2011, http://www.justice.gov/opa/pr/2010/January/10-civ-042.html.
27. Natasha Singer and Reed Abelson, “Can Johnson & Johnson Get Its Act Together?” New York Times, January 15, 2011, accessed January 22, 2011, http://www.nytimes.com/2011/01/16/business/16johnson-and-johnson.html.
28. We sent a certified letter to the CEO of each of the 94 companies that we rated in which we provided them an opportunity to comment on their ratings and invited them to be in touch with us should they want to discuss their company’s rating.
29. Stephanie Strom, “Wal-Mart Gives $2 Billion to Fight Hunger,” New York Times, May 12, 2010, accessed January 17, 2011, http://www.nytimes.com/2010/05/13/us/13gift.html?hp.
30. Home Depot, “Rebuilding Hope & Homes,” accessed January 17, 2011, http://corporate.homedepot.com/wps/portal/!ut/p/c1/
04_SB8K8xLLM9MSSzPy8xBz9CP0os3gDdwNHH0sfE3M3AzMPJ8MAfxcDKADKR2LK
mxrD5fHr9vPIz03VL8iNKAcATDeEqQ!!/dl2/d1/L2dJQSEvUUt3QS9ZQnB3LzZfMEcwQUw5TDQ3RjA2SEIxUExEMDAwMDAw MDA!/.
31. S. Permanent Subcommittee on Investigations, Hearing on Wall Street and the Financial Crisis: The Role of Investment Banks, Exhibits, April 27, 2010, accessed December 21, 2010, http://hsgac.senate.gov/public/_files/Financial_Crisis/042710Exhibits.pdf.
32. Great Place to Work Institute, “Best Companies Lists,” 1998, accessed January 17, 2011, http://greatplacetowork.com/what_we_do/lists-us-bestusa-1998.htm.
33. American Customer Satisfaction Index, “Scores by Company,” 2010, accessed January 17, 2011, http://www.theacsi.org/index.php?option =com_content&task=view&id=149&Itemid=157&c=FedEx+.
34. FedEx, “Disaster Readiness, Relief and Recovery,” 2011, accessed January 17, 2011, http://about.fedex.designcdt.com/corporate_responsibility/philanthropy/disaster_relief.
35. Ed Frauenheim, “FedEx Loses Driver-Classification Legal Skirmishes,” Workforce Management, April 4, 2008, accessed January 17, 2011, http://www.workforce.com/section/00/article/25/45/95.html; Scott Malone, Andre Grenon, Steve Orlofsky, and Bernard Orr, “UPDATE 2-Drivers Sue Fedex over Contractor Status,” Reuters, August 17, 2010, accessed January 17, 2011, http://www.reuters.com/article/idUSN1715781720100818; and FedEx Ground/Home Delivery Drivers Nationwide Class-Action Lawsuit, “Frequently Asked Questions,” accessed January 17, 2011, http://www.fedexdrivers lawsuit.com/faq.htm.
36. Disney is not, however, without its flaws. In 2010 it was ordered to pay nearly $270 million for using creative accounting to hide profits from, and therefore to reduce the amount it owed to, a partner. Sue Manning, “Disney-Celador Lawsuit Verdict: Disney Ordered to Pay ‘Millionaire’ Makers $269.2 Million,” The Huffington Post, July 7, 2010, accessed January 17, 2011, http://www.huffing tonpost.com/2010/07/07/disneycelador-lawsuit-ver_n_638518.html.
37. “2011 Best Places to Work-Employees’ Choice Awards,” Glassdoor.com, accessed January 25, 2011, http://www.glassdoor.com/Best-Places-to-Work-LST_KQ0,19.htm; and Glassdoor Team, “Glassdoor Reveals Lowest Rated Companies; United Stays Grounded as Gibson Guitar Strikes a Cord [sic] With Employees,” glassdoor.com blog, December 15, 2009, accessed January 25, 2011, http://www.glassdoor.com/blog/glassdoor-reveals-lowest-rated-companies-united-stays-grounded-gibson-guitar-strikes-cord-employees/.
38. Jody Hoffer Gittell, The Southwest Airlines Way: Using the Power of Relationships to Achieve High Performance (New York: McGraw Hill, 2005).
39. American Customer Satisfaction Index, “Scores by Industry,” 2010, accessed January 17, 2011, http://www.theacsi.org/index.php?option=com_content&task=view&id=147&Itemid=155&i=Airlines.
40. Southwest will give a full refund on “Wanna Get Away” fare tickets if they are cancelled within 24 hours. After that, funds from a cancelled “Wanna Get Away” ticket can be used for travel for up to 12 months from when the ticket was bought. Southwest also sells more expensive fully refundable tickets.
41. Like Southwest, United does provide full refunds on nonrefundable ticket purchases that are cancelled within 24 hours.
42. Atul Gawande, “The Cost Conundrum,” The New Yorker, June 1, 2009, accessed January 17, 2011, http://www.newyorker.com/reporting/2009/06/01/090601fa_fact_gawande?currentPage=all.
43. Karen Mazurkewich, “Open-book Policy Can Boost Bottom Line,” Financial Post, May 8, 2010, accessed January 22, 2011, http://www.financial post.com/Open+book+policy+boost+bottom+line/3009185/story.html.
44. McAlvain, “Open Book Policy,” 2009, accessed January 17, 2011, http://www.mcalvain.com/content/open-book-policy.
45. Torry McAlvain, interview by Laurie Bassi, May 24, 2010.
46. Seventh Generation, Crossroads: Reinventing the Purpose and Possibility of Business, 2009, corporate report, accessed January 7, 2011, http://www.svg2008report.org/pdf/2008_SVG_CC_Report.pdf; and CSR Wire, “Seventh Generation Releases 2008 Corporate Consciousness Report,” August 12, 2009, accessed January 17, 2011, http://www.csrwire.com/press_releases/27466-Seventh-Generation-Releases-2008-Corporate-Consciousness-Report.
47. Seventh Generation, Crossroads, 2009.
48. Ibid.
49. Seventh Generation, “Sales and Economic Performance,” Return on Purpose, corporate report, 2010, accessed January 7, 2011, http://www.7genreport.com/introduction/performance.php.
50. Seventh Generation, Crossroads, 2009.
51. By way of full disclosure, Ultimate Software is a client of Laurie Bassi’s in her consulting work at McBassi & Company.
52. Ed Frauenheim, “From Dot-Com Bust to SaaS Strength,” Workforce Management, July 2009, accessed January 17, 2011, http://www.workforce.com/section/software-technology/feature/from-dot-com-bust-saas-strength/index.html.
53. Ultimate Software, “2009 Annual Report,” accessed January 17, 2011, http://www.ultimatesoftware.com/annual_report_2009.asp.
54. Beginning in 2009, Ultimate began giving employees restricted stock units instead of stock options. As with stock options, restricted stock units are recognized as an expense in financial statements.
55. Ultimate Software, “2009 Annual Report.”
56. Great Place to Work, “Best Companies Lists,” 2009, accessed January 17, 2011, http://www.greatplacetowork.com/what_we_do/lists-us-sme-2009.htm; and Great Place to Work, “Best Companies Lists,” 2008, accessed January 17, 2011, http://www.greatplacetowork.com/what_we_do/lists-us-sme-2008.htm.
SIDEBAR: Goldman Loses Its Good Name (pages 118-119)
57. “100 Best Companies to Work For 2009,” Fortune, accessed December 21, 2010, http://money.cnn.com/magazines/fortune/bestcompanies/2009/index.html; Dow Jones Sustainability Indexes, “DJSI United States 2009/2010,” as of December 31, 2009; see, for example, “World’s Most Admired Companies,” Fortune, accessed December 21, 2010, http://money.cnn.com/magazines/fortune/mostadmired/2009/full_list/, “America’s Most Admired Companies 2008,” Fortune, accessed December 21, 2010, http://money.cnn.com/magazines/fortune/mostadmired/2008/index.html, and “America’s Most Admired Companies 2007,” Fortune, accessed December 21, 2010, http://money.cnn.com/magazines/fortune/mostadmired/2007/top20/index.html.
58. See, for example, Phillip Inman, “Goldman to Make Record Bonus Payout,” Guardian.co.uk, June 21, 2009, accessed December 22, 2010, http://www.guardian.co.uk/business/2009/jun/21/goldman-sachs-bonus-payments.
59. United States Securities and Exchange Commission, “SEC Charges Goldman Sachs with Fraud in Structuring and Marketing of CDO Tied to Subprime Mortgages,” news release, April 16, 2010, http://www.sec.gov/news/press/2010/2010-59.htm.
60. S. Permanent Subcommittee on Investigations, Hearing on Wall Street and the Financial Crisis: The Role of Investment Banks, Exhibits, April 27, 2010, accessed December 21, 2010, http://hsgac.senate.gov/public/_files/Financial_Crisis/042710Exhibits.pdf; Morgenson and Story, “Banks Bundled Bad Debt, Bet Against It and Won.”
61. S. Permanent Subcommittee on Investigations, Hearing on Wall Street and the Financial Crisis: The Role of Investment Banks, Exhibits, April 27, 2010.
62. Morgenson and Story, “Banks Bundled Bad Debt, Bet Against It and Won.”
63. United States Securities and Exchange Commission, “SEC Charges Goldman Sachs with Fraud.”
64. Goldman Sachs Group Inc., “Prepared Remarks by Lloyd C. Blankfein, Chairman and Chief Executive Officer,” April 27, 2010, accessed December 22, 2010, http://www2.goldman sachs.com/our-firm/on-the-issues/psi-folder/lloyd-blankfein-testimony.html.
65. United States Securities and Exchange Commission, “Goldman Sachs to Pay Record $550 Million to Settle SEC Charges Related to Subprime Mortgage CDO,” news release, July 15, 2010, accessed December 22, 2010, http://www.sec.gov/news/press/2010/2010-123.htm.
66. Goldman Sachs Group Inc., “Goldman Sachs Reports Earnings per Common Share of $22.13 for 2009,” news release, January 21, 2010, accessed December 22, 2010, http://www2.goldmansachs.com/our-firm/press/press-releases/current/pdfs/2009-q4-earnings.pdf.
67. Harris Interactive, Annual RQ 2009 USA Summary Report, April 2010.
68. Goldman Sachs Group Inc., Report of the Business Standards Committee, accessed January 25, 2011, http://www2.goldmansachs.com/our-firm/business-standards-committee/report.pdf.
69. Goldman Sachs Group Inc., “Goldman Sachs Reports Earnings per Common Share of $13.18 for 2010,” news release, January 19, 2011, accessed January 25, 2011, http://www2.goldmansachs.com/our-firm/press/press-releases/current/pdfs/2010-q4-earnings.pdf.
70. Goldman Sachs Group Inc., “Prepared Remarks by Lloyd C. Blankfein, Chairman and Chief Executive Officer,” April 27, 2010.
CHAPTER 7. THE GOOD EMPLOYER
1. In the U.S. News & World Report 2010–11 list of Best Hospitals, 152 of nearly 5,000 hospitals studied made the publication’s rankings in at least one specialty. Beth Israel earned a ranking in seven categories. “Beth Israel Deaconess Medical Center,” U.S. News & World Report, accessed January 18, 2011, http://health.usnews.com/best-hospitals/beth-israel-deaconess-medical-center-6140013.
2. Paul Levy, “Overview,” Beth Israel Deaconess Medical Center, accessed January 18, 2011, http://www.bidmc.org/AboutBIDMC/Overview.aspx. Levy’s words are no longer on the site, and he resigned from the hospital in 2011.
3. Insights from interviews with the following executives were helpful in guiding us as we wrote this chapter: Tony Hsieh (CEO of Zappos.com), Paul Levy (former CEO of Beth Israel Deaconess Hospital), Mali Mahalingam (Executive Vice President & Chief People Officer at Symphony Services Corporation), Polly Pearson (former VP of Employee Branding at EMC), Kip Tindell (CEO of the Container Store), and Shami Khorana (president of HCL America).
4. Laurie Bassi and Daniel McMurrer, “Maximizing Your Return on People,” Harvard Business Review 85 (2007).
5. Ed Frauenheim, “Downturn Tests HCL’s Pledge to Employees,” Workforce Management, November 16, 2009, accessed January 18, 2011, http://www.workforce.com/archive/feature/hr-management/downturn-tests-hcls-pledge-employees/index.php.
6. Heather Timmons, “Inquiry Faults Management at BP in Blast That Killed 15,” New York Times, January 17, 2007, accessed January 18, 2011, http://www.nytimes.com/2007/01/17/business/worldbusiness/17baker.html?scp=15&sq=texas+city+refinery&st=nyt.
7. Louisa Lim, interview by Guy Raz, February 7, 2010, accessed January 18, 2011, http://www.npr.org/templates/story/story.php?storyId=123472217.
8. Fred Smith, “Minimizing Job Losses and Protecting FedEx for the Long-Term,” Team Member Stories, December 18, 2008, accessed January 25, 2011, http://blog.fedex.designcdt.com/node/551.
9. “Our Culture: People-Service-Profit,” FedEx Corp., accessed January 25, 2011, http://fedex.com/bm/about/careers/ourculture.html.
10. Smith, “Minimizing Job Losses and Protecting FedEx for the Long-Term.”
11. Kimberely Howell Jones, April 12, 2010, comment on Smith, “Minimizing Job Losses and Protecting FedEx for the Long-Term.”
12. FedEx Corp., “FedEx Corp. Reports Higher Fourth Quarter and Full Year Earnings,” news release, June 16, 2010, accessed January 25, 2011, http://ir.fedex.com/releasedetail.cfm?ReleaseID= 479710.
13. Jim Collins, How the Mighty Fall: And Why Some Companies Never Give In (New York: HarperCollins Publishers, 2009).
14. Lim, interview by Guy Raz, February 7, 2010.
15. Margaret L. Williams, Michael A. McDaniel, and Nhung T. Nguyen, “A Meta-Analysis of the Antecedents and Consequences of Pay Level Satisfaction,” Journal of Applied Psychology 91, no. 2 (2006): 392-413.
16. Aliosha Alexandrov, Emin Babakus, and Ugur Yavas, “The Effects of Perceived Management Concern for Frontline Employees and Customers on Turnover Intentions,” Journal of Service Research 9 (2007): 356-371.
17. Jack K. Ito and Céleste M. Brotheridge, Does Supporting Employees’ Career Adaptability Lead to Commitment, Turnover, or Both? (Hoboken: John Wiley & Sons, Inc., 2005).
18. Guy Paré and Michel Tremblay, “The Influence of High-Involvement Human Resources Practices, Procedural Justice, Organizational Commitment, and Citizenship Behaviors on Information Technology Professionals’ Turnover Intentions,” Group Organization Management 32, no. 3 (2007): 326-357.
19. Pearson left EMC in mid-2010 to become an independent communications advisor.
20. Saul Hansell, “Google Answer to Filling Jobs Is an Algorithm,” New York Times, January 3, 2007, accessed January 18, 2011, http://www.nytimes.com/2007/01/03/technology/03google.html?_r=2&pagewanted=all.
21. Scott Morrison, “Google Searches for Staffing Answers,” The Wall Street Journal, May 19, 2009, accessed January 18, 2011, http://online.wsj.com/article/SB124269038041932531.html.
22. IBM, “What Does It Mean to Be Smarter?” accessed January 18, 2011, http://www.ibm.com/smarterplanet/us/en/overview/ideas/index.html?ca=v_now&re=ussph2.2.
23. FedEx Corp., Everything Is Connected: A Global Citizenship Update for 2009, 16, accessed January 25, 2011, http://about.fedex.designcdt.com/files/FedEx_09_GCR_final_boomrk_0415.pdf.
24. Hilton Worldwide, “About Us,” 2010, accessed January 18, 2011, http://www.hiltonworldwide.com/aboutus/index.htm.
25. Richard L. Daft and Dorothy Marcic, Understanding Management (Florence: South-Western College Publishing, 2008); and Geoff Colvin, “The 100 Best Companies to Work For 2006,” Fortune, January 11, 2006, accessed January 25, 2011, http://money.cnn.com/magazines/fortune/fortune_archive/2006/01/23/8366990/index.htm.
26. Dave Logan, John King, and Halee Fischer-Wright, Tribal Leadership: Leveraging Natural Groups to Build a Thriving Organization (New York: HarperCollins Publishers, 2008), 25, 241.
27. Ibid.
28. Daniel H. Pink, Drive: The Surprising Truth about What Motivates Us (New York: Riverhead Books, 2009).
29. Ed Frauenheim, “Commitment Issues—Restoring Employee Engagement,” Workforce Management, November 16, 2009, accessed January 18, 2011, http://www.workforce.com/section/hr-management/feature/commitment-issues-restoring-employee-engagement/.
30. Christine McConville, “Beth Israel Board Fines CEO Paul Levy $50G for ‘Lapse,’” Boston Herald, May 3, 2010, accessed January 18, 2011, http://www.bostonherald.com/business/healthcare/view/20100503beth_israel_board_fines_ceo_paul_levy_50g_for_lapse/srvc=home&position= recent.
31. Liz Kowalczyk, “AG Urges Beth Israel to Rethink CEO’s Fitness,” The Boston Globe, September 2, 2010, accessed January 18, 2011, http://www.boston.com/news/local/massachusetts/articles/2010/09/02/ag_urges_beth_israel
_to_rethink_ceos_fitness/.
32. Ibid.
33. Liz Kowalczyk, “Beth Israel Deaconess Chief Paul Levy Resigns,” The Boston Globe, January 7, 2011, accessed March 16, 2011, http://www.boston.com/news/health/blog/2011/01/beth_israel_chi.html.
34. Kowalczyk, “AG Urges Beth Israel to Rethink CEO’s Fitness,” The Boston Globe.
35. Christine McConville, “Flush Hospitals Dole out Staff Bonuses,” Boston Herald, October 5, 2010, accessed January 18, 2011, http://www.bostonherald.com/news/regional/view.bg?articleid=1286583.
36. Glassdoor.com, “Beth Israel Deaconess Medical Center Employee Review,” 2011, accessed January 18, 2011, http://www.glassdoor.com/Reviews/Employee-Review-Beth-Israel-Deaconess-Medical-Center-RVW 596631.htm.
CHAPTER 8. THE GOOD SELLER
1. Ed Frauenheim, “Making the Call for Themselves,” Workforce Management, August 2010, accessed January 6, 2011, http://www.workforce.com/section/training-development/feature/making-call-themselves/.
2. Department of Justice, “Justice Department Sues American Express, Mastercard and Visa to Eliminate Rules Restricting Price Competition; Reaches Settlement with Visa and Mastercard,” news release, October 4, 2010, accessed January 6, 2011, http://www.justice.gov/opa/pr/2010/October/10-at-1115.html.
3. J. D. Power and Associates, “Overall Customer Satisfaction with Credit Cards Rebounds Slightly from 2009, but Loyalty Continues to Decline,” news release, August 19, 2010, accessed January 6, 2011, http://businesscenter.jdpower.com/news/pressrelease.aspx?ID=2010159.
4. National Highway Traffic Safety Administration, “Statement from U.S. Transportation Secretary Ray LaHood on Toyota’s Agreement to Pay Maximum Civil Penalty,” news release, April 19, 2010, accessed January 6, 2011, http://www.nhtsa.gov/PR/DOT-71-10.
5. Mattel, Playing Responsibly: 2009 Global Citizenship Report, accessed January 6, 2011, http://corporate.mattel.com/about-us/2009GCReport.pdf.
6. Jennifer C. Kerr, “Mattel Fined $2.3M for Lead Paint on Toys,” USA TODAY, June 5, 2009, accessed January 6, 2011, http://www.ustoday.com/money/industries/retail/2009-06-05-mattel-fine_N.htm.
7. Mattel, Playing Responsibly.
8. BusinessWeek, “Secrets, Lies, and Sweatshops,” November 27, 2006, accessed January 6, 2011, http://www.businessweek.com/magazine/content/06_48/b4011001.htm.
9. Louise Story and David Barboza, “Mattel Recalls 19 Million Toys Sent from China,” New York Times, August 15, 2007, accessed January 6, 2011, http://www.nytimes.com/2007/08/15/business/worldbusiness/15imports.html.
10. Mattel, “Consumer Relations Support Center: Product Recall/Advisory,” accessed January 6, 2011, http://service.mattel.com/us/recall.asp.
11. Heather Green, “How Amazon Aims to Keep You Clicking,” BusinessWeek, February 19, 2009, accessed January 6, 2011, http://www.businessweek.com/magazine/content/09_09/b4121034637296.htm; and BusinessWeek, “The Customer Service Champs,” February 19, 2009, accessed January 6, 2011, http://www.businessweek.com/interactive_reports/customer_service_2009.html.
12. BusinessWeek, “The Customer Service Champs.”
13. By the time of the 2010 report, BusinessWeek had been purchased by Bloomberg. Bloomberg Businessweek, “Standouts in Customer Service,” February 18, 2010, accessed January 6, 2011, http://bwnt.businessweek.com/interactive_reports/customer_service_2010/?chan=magazine+channel_special+report.
14. Zappos, “Twitter Posts,” accessed January 6, 2011, http://twitter.zappos.com/employee_tweets.
15. Microsoft, “Microsoft Investor Relations,” accessed January 6, 2011, http://www.microsoft.com/msft/ic/Default.aspx.
16. Clive Thompson, “The See-Through CEO,” Wired, March 2007, accessed January 6, 2011, http://www.wired.com/wired/archive/15.04/wired40_ceo.html.
17. Amazon.com, “Kindle Wireless Reading Device, Wi-Fi, Graphite, 6” Display with New E Ink Pearl Technology,” 2010, accessed January 11, 2011, http://www.amazon.com/Kindle-Wireless-ReaderWifi Graphite/dp/B002Y27P3M/ref=amb_link_354880722_2?pf_rd_m =ATVPDKIKX0DER&pf_rd_s =center1&pf_rd_r=08F4RCKTZN2 BSD4JJADC&pf_rd_t=101&pf_rd_p=1286053422&pf_rd_i=507846.
18. New York Times, “Video of Earthquake Damage in Chile,” February 28, 2010, accessed January 6, 2011, http://community.nytimes.com/comments/thelede.blogs.nytimes.com/2010/02/28/video-of-earthquake-damage-in-chile/#postComment; and Washington Post, “Your Photos: Political Signs,” January 3, 2011, accessed January 6, 2011, http://www.washington post.com/wpdyn/content/gallery/2010/08/23/GA2010082303447.html.
19. Clive Thompson, “The See-Through CEO,” Wired.
20. Morgenson and Story, “Banks Bundled Bad Debt, Bet Against It and Won.”
21. The Wall Street Journal, “Tech: What They Know,” accessed January 6, 2011, http://online.wsj.com/public/page/what-they-know-digital-privacy.html.
22. Julia Angwin, “The Web’s New Gold Mine: Your Secrets,” Wall Street Journal, July 30, 2010, accessed January 6, 2011, http://online.wsj.com/article/SB1000142405274870394090457539507 3512989404.html.
23. Jessica E. Vascellaro, “Google Agonizes on Privacy as Ad World Vaults Ahead,” Wall Street Journal, August 10, 2010, accessed January 6, 2011, http://online.wsj.com/article/SB1000142405274870330970457541355385 1854026.html?mod=WSJ_article_RecentColumns_WhatTheyKnow; and Preston Gralla, “How to Protect Yourself against Google Ad Snooping,” ComputerWorld, March 13, 2010, accessed January 6, 2011, http://blogs.computer world.com/how_to_protect_yourself_against_google_ad_snooping.
24. Miguel Helft and Tanzina Vega, “Retargeting Ads Follow Surfers to Other Sites,” New York Times, August 29, 2010, accessed January 6, 2011, http://www.nytimes.com/2010/08/30/technology/30adstalk.html.
25. Ibid.
26. Department of Justice, “Justice Department Sues American Express, Mastercard and Visa.”
27. Kenneth I. Chenault, “Why Amex Is Fighting Justice’s Bad Deal for Credit Card Holders,” op-ed in Washington Post, October 8, 2010, accessed January 6, 2011, http://about.americanexpress.com/news/pr/2010/wp-op-ed.aspx.
28. J. D. Power and Associates, “Fees and Rates Drive Decline in Overall Credit Card Customer Satisfaction,” news release, September 1, 2009, accessed January 6, 2011, http://businesscenter.jdpower.com/news/press release.aspx?ID=2009162.
29. American Express, “American Express Reports Second Quarter EPS of $0.84, Up Significantly from a Year Ago,” news release, July 22, 2010, accessed January 6, 2011, http://www.business wire.com/news/home/20100722006778/en/American-Express-Reports-Quarter-EPS-0.84-Significantly.
30. Great Place to Work Institute, “2011 Fortune’s 100 Best Companies to Work For,” accessed March 12, 2011, http://www.greatplacetowork.com/what_we_do/lists-us-bestusa.htm?PHPSESSID=326d9b50147ffa75f749b806da35e989.
31. BrightScope, “American Express Company,” accessed January 6, 2011, http://www.brightscope.com/401k-rating/54898/American-Express-Company/55755/American-Express-Retirement-Savings-Plan.
32. Ed Frauenheim, “Making the Call for Themselves,” Workforce Management, August 2010, accessed January 6, 2011, http://www.workforce.com/section/training-development/feature/making-call-themselves/.
33. Newsweek, “Green Rankings 2010,” accessed January 6, 2011, http://greenrankings.newsweek.com/companies/view/american-express.
34. Newsweek, “Green Rankings: The 2009 List,” accessed January 25, 2011, http://greenrankings2009.newsweek.com/companies/view/american-express.
35. E-mail message from American Express to Ed Frauenheim, January 5, 2010.
36. E-mail message from American Express to Ed Frauenheim, December 20, 2010.
37. E-mail message from American Express to Ed Frauenheim, July 21, 2010.
38. Ed Frauenheim, “Making the Call for Themselves,” Workforce Management, August 2010.
39. American Express, “Corporate Responsibility: Community Service,” accessed January 6, 2011, http://about.americanexpress.com/csr/comm_serv.aspx.
40. American Express, “Corporate Responsibility: Leadership,” accessed January 6, 2011, http://about.americanexpress.com/csr/leadership.aspx.
41. American Customer Satisfaction Index, “National Quarterly Scores,” accessed January 6, 2011, http://www.theacsi.org/index.php?option=com_content&task=view&id=31&Itemid=35.
42. American Express, Recognizing Responsibility, November 2007, accessed January 6, 2011, http://about.americanexpress.com/csr/docs/cresp.pdf.
CHAPTER 9. THE GOOD STEWARD
1. Seventh Generation, Crossroads: Reinventing the Purpose and Possibility of Business, 2009, corporate report, accessed January 7, 2011, http://www.svg2008report.org/pdf/2008_SVG_CC_Report.pdf.
2. Environmental Protection Agency, “1,4-Dioxane,” August 11, 2010, accessed January 7, 2011, http://www.epa.gov/iris/subst/0326.htm; and Seventh Generation, Crossroads, 2009.
3. Better World Shopper, “The 20 Best Companies,” 2006, http://www.betterworldshopper.org/topten.html.
4. Agency for Toxic Substances & Disease Registry, “Diethyl Phthalate,” September 1996, accessed January 7, 2011, http://www.atsdr.cdc.gov/toxfaqs/tf.asp?id=602&tid=112; Agency for Toxic Substances & Disease Registry, “Di(2-ethylhexyl)phthalate (DEHP),” September 2, 1010, accessed January 7, 2011, http://www.atsdr.cdc.gov/substances/toxsubstance.asp?toxid=65; and European Chemicals Agency, “Evaluation of New Scientific Evidence Concerning the Restrictions Contained in Annex XVII to Regulation (EC) No 1907/2006 (REACH),” July 2010, accessed January 7, 2011, http://echa.europa.eu/doc/reach/restrictions/dnop_echa_review_report_2010_6.pdf.
5. Seventh Generation, Crossroads, 2009.
6. Ibid.
7. Seventh Generation, “The 7 Acts of Seventh Generation,” accessed January 7, 2011, http://www.seventhgeneration.com/7-acts-seventh-generation.
8. Fleishman-Hillard/National Consumers League, Rethinking Corporate SocialResponsibility, May 2007, accessed January 7, 2011, http://fleishman hillard.com/wpcontent/uploads/2007/05/csr_white_paper.pdf.
9. Fleishman-Hillard/National Consumers League, Rethinking Corporate Social Responsibility.
10. Towers Watson, “From Recession to Recovery: How Far, How Fast, How Well Prepared?” April 2010, accessed January 7, 2011, http://www.towerswatson.com/research/1551.
11. Ryan Tate, “Jann Wenner’s Heartless Christmas Layoffs,” accessed January 7, 2011, http://gawker.com/5117514/jann-wenners-heartless-christmas-layoffs; Gannett Blog, “Tally Hits 863 as Gannett’s Mass Layoff Spreads; Second Big Wave to Slam Papers on Wednesday; Thousands More Employees Are Still Vulnerable,” December 3, 2008, accessed January 7, 2011, http://gannettblog.blogspot.com/2008/12/breaking-gannett-launches-mass-layoff.html; Erick Schonfeld, “DivX Cuts 21 People from Payroll,” TechCrunch, December 11, 2008, accessed January 7, 2011, http://techcrunch.com/2008/12/11/divx-cuts-21-people-from-payroll/; and Ed Frauenheim, “The Rueff Truth on ‘Abusive’ Employers and the Talent Flight Ahead,” Global Work Watch (blog), Workforce Management, November 23, 2009, accessed January 7, 2011, http://workforce.com/wpmu/globalwork/2009/11/23/rueff-truth_on_abusive_employers/.
12. Ed Frauenheim, “SuccessFactors, Inventor of the Blame-Shifting Layoff?” Global Work Watch (blog), Workforce Management, September 15, 2008, http://workforce.com/wpmu/globalwork/2008/09/15/blame_shifting_layoff/.
13. Wayne F. Cascio, Employment Downsizing and Its Alternatives, report for the SHRM Foundation, 2009, accessed January 7, 2011, http://www.shrm.org/about/foundation/products/Documents/Downsizing%20EPG-%20 Final.pdf.
14. Fleishman-Hillard, “Agency News: Expert Panel to Discuss 2007 Survey on Corporate Social Responsibility,” news release, May 9, 2007, accessed January 7, 2011, http://fleishmanhillard.com/2007/05/09/expert-panel-to-discuss-2007-survey-on-corporate-social-responsibility/.
15. Edelman, “Edelman goodpurpose Study 2010.”
16. Procter & Gamble, “Always and Tampax: Protecting the Futures of Girls,” accessed January 7, 2011, http://www.pg.com/en_US/sustainability/social_responsibility/protecting_futures.shtml.
17. Michael E. Porter and Mark R. Kramer, Strategy and Society: The Link Between Competitive Advantage and Corporate Social Responsibility (Boston, MA: Harvard Business Review, 2006).
18. Naomi Klein, No Logo: No Space, No Choice, No Jobs, (Great Britain: Flamingo, 2000).
19. Naomi Klein, “Frequently Asked Questions about No Logo,” accessed January 7, 2011, http://www.naomiklein.org/no-logo/faq.
20. Sarah Anderson, Chuck Collins, Sam Pizzigati, and Kevin Shih, “CEO Pay and the Great Recession,” Institute for Policy Studies, September 2, 2010, accessed January 7, 2011, www.ips-dc.org/files/2433/EE-2010-web.pdf.
21. Jane G. Gravelle, “Tax Havens: International Tax Avoidance and Evasion,” Congressional Research Service, July 9, 2009, accessed January 7, 2011, http://assets.opencrs.com/rpts/R40623_20090709.pdf.
22. U.S. Environmental Protection Agency, “ExxonMobil Petroleum Refinery Settlement,” December 17, 2008, accessed January 25, 2011, http://www.epa.gov/compliance/resources/cases/civil/caa/exxonmobil05caa.html.
23. Larry West, “It’s Official: BP Gusher in Gulf Is Biggest Oil Spill Ever,” About.com, August 3, 2010, accessed January 7, 2011, http://environment.about.com/b/2010/08/03/its-official-bp-gusher-in-gulf-is-biggest-oil-spill-ever.htm.
24. Ben Casselman and Russell Gold, “BP Decisions Set Stage for Disaster,” Wall Street Journal, May 27, 2010, accessed January 7, 2011, http://online. wsj.com/article/SB10001424052748704026204575266560930780190.html; and 60 Minutes, “Blowout: The Deepwater Horizon Disaster,” CBS News.com, August 22, 2010, accessed January 7, 2011, http://www.cbsnews.com/stories/2010/08/19/60minutes/main6787685.shtml.
25. National Commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling, “Deep Water: The Gulf Oil Disaster and the Future of Offshore Drilling,” report to the president, January 2011, vii, accessed January 23, 2011, https://s3.amazonaws.com/pdf_final/1_OSC_Intro.pdf.
26. The 2007 Fleishman-Hillard/National Consumers League study found that consumers ranked going beyond the law to protect the environment as the second-highest priority among seven behaviors related to corporate social responsibility. Only treating or paying employees well ranked higher. See Rethinking Corporate Social Responsibility, A Fleishman-Hillard/National Consumers League Study, 2007.
27. Water quality is another area where government standards have become dangerously outdated. Water Americans drink can pose what scientists say are serious health risks yet still be legal. A wide array of drugs—including antibiotics, mood stabilizers, and sex hormones—has been found in the drinking water supplies of tens of millions of Americans. Although the concentrations are low, the presence of the pharmaceuticals raises concerns among scientists about the long-term effects on human health. Charles Duhigg, “That Tap Water Is Legal but May Be Unhealthy,” New York Times, December 16, 2009, accessed January 7, 2011, http://www.nytimes.com/2009/12/17/us/17water.html?_r=1; and Jeff Donn, Martha Mendoza, and Justin Pritchard, “Drugs Found in Drinking Water,” Associated Press, September 12, 2008, accessed January 7, 2011, http://www.usatoday.com/news/nation/2008-03-10-drugs-tap-water_N.htm.
28. Carbon Disclosure Project, “What We Do,” an overview, accessed January 7, 2011, https://www.cdproject.net/en-US/WhatWeDo/Pages/overview.aspx.
29. Ibid.
30. SAM Research, Corporate Sustainability Assessment Questionnaire, 2009.
31. TerraChoice, “Greenwashing Affects 98% of Products Including Toys, Baby Products and Cosmetics,” news release, April 15, 2009, accessed January 7, 2011, http://www.terrachoice.com/images/Seven%20Sins%20of%20Greenwashing%20Release%20%20April%2015%202009%20-%20US.pdf.
32. Bill Breen & Jeffrey Hollender, The Responsibility Revolution: How the Next Generation of Businesses Will Win (San Francisco: Jossey-Bass 2010).
33. Newsweek, “Green Rankings 2010,” accessed January 7, 2011, http://greenrankings.newsweek.com/companies/view/hewlett-packard.
34. Traci Purdum, “Manufacturers Are Seeing Bottom-Line Benefits of Designing for the Environment,” Industry Week, August 1, 2006, accessed January 7, 2011, http://www.industryweek.com/articles/manufacturers_are_seeing_bottomline_benefits
_of_designing_for_the_environment_12310.aspx?ShowAll=1.
35. Hewlett-Packard Development Co., “HP Planet Partners Recycling Program,” accessed January 25, 2011, http://www.hp.com/hpinfo/global citizenship/environment/recycling/product-recycling.html.
36. Hewlett-Packard Development Co., “Product Return and Recycling,” accessed January 25, 2011, http://www.hp.com/hpinfo/globalcitizenship/environment/recycling/unwanted-hardware.html.
37. Walmart, “Walmart Announces Sustainable Product Index,” news release, July 16, 2009, accessed January 7, 2011, http://walmartstores.com/pressroom/news/9277.aspx.
38. Ibid.
39. Rosabeth Moss Kanter, “Wal-Mart’s Environmental Game-Changer,” Harvard Business Review, July 16, 2009, accessed January 7, 2011, http://blogs.hbr.org/kanter/2009/07/walmarts-environmental-gamecha.html.
40. Seventh Generation, “Executive Summary,” Return on Purpose, 2010, accessed January 7, 2011, http://www.7genreport.com/introduction/exec summary.php#3.
41. Robin, “The Precautionary Principle,” Articles, February 8, 2008, accessed January 7, 2011, http://www.seventhgeneration.com/learn/news/precautionary-principle-0.
42. Traci Purdum, “Manufacturers Are Seeing Bottom-Line Benefits of Designing for the Environment,” Industry Week, August 1, 2006.
43. Seventh Generation, “Improved Products,” Return on Purpose, 2010, accessed January 7, 2011, http://www.7genreport.com/products/improved.php.
44. Seventh Generation, “Sales and Economic Performance,” Return on Purpose, 2010, accessed January 7, 2011, http://www.7genreport.com/introduction/performance.php.
45. Carolyn Said, “Green MBA Degrees Sprout up on Campuses,” SFGate.com, April 21, 2010, accessed January 7, 2011, http://articles.sfgate.com/2010-04-21/business/20858394_1_mba-programs-business-administration-programs-greenhouse.
46. SKS Microfinance, “Our People,” accessed January 23, 2011, http://www.sksindia.com/our_people.php.
47. John Tozzi, “What a Good Company Looks Like,” The New Entrepreneur (blog), Bloomberg Businessweek, March 15, 2010, http://www.businessweek.com/smallbiz/running_small_business/
archives/2010/03/what_a_good_com.html.
48. Bruce Edwards, “New Law Keeps with Vt.’s Social Conscience,” Vermont Today, June 13, 2010, accessed January 11, 2011, http://www.vermont today.com/apps/pbcs.dll/article?AID=/RH/20100613/BUSINESS/10061 9977/-1/VBJ.
49. John Tozzi, “Maryland Passes ‘Benefit Corp.’ Law for Social Entrepreneurs,” The New Entrepreneur (blog), Bloomberg Businessweek, April 13, 2010, accessed March 12, 2011, http://www.businessweek.com/smallbiz/running_smallbusiness/archives/2010/
04/benefit_corp_bi.html.
50. B Lab, “Legal Framework,” 2011, accessed January 7, 2011, http://www.bcorporation.net/become/legal.
51. B Lab, “B Community,” 2011, accessed January 11, 2011, http://www.bcorporation.net/community.
52. As an employer, for example, Seventh Generation has strived to hire people who share its values—which makes for a more inspired workforce. It also has sought to create an environment where employees can “summon all their individuality and creativity” as well as speak their mind. And, as of early 2010, employees owned close to 20 percent of the company. As a seller, Seventh Generation has worked to provide nontoxic home-cleaning products. It also has been transparent about problems. For example, it conceded in its 2009 Corporate Consciousness Report that it reduced the number of baby wipes in packages without changing the size of the package, which made the product less green: “Unacceptably, we did not adequately inform our consumers of this change, a serious departure from the authenticity we aspire to.” Seventh Generation, Crossroads, 2009, 60; Jeffrey Hollender, “Giving Up the CEO Seat: How I Did It,” Harvard Business Review, March 2010; and Seventh Generation, “Executive Summary,” Return on Purpose, corporate report, 2010, accessed January 25, 2011, http://www.7genreport.com/introduction/execsummary.php.
53. Evidence of the positive effects of employee worthiness on stewardship can be seen by the pride Seventh Generation employees show in pursuing sustainability. Tim Fowler, the company’s vice president of research and development, details the bumpy quest to get rid of 1,4-dioxane in hand dishwashing soap in the company’s 2009 Corporate Consciousness Report. An expected breakthrough failed, but employees stuck with the effort until it succeeded. And as a seller that communicates extensively with customers—a feature of good sellers—Seventh Generation is helping to change consumer habits to make them more eco-friendly. The number of Seventh Generation “followers” on social media sites such as Facebook, Twitter, and LinkedIn jumped from fewer than 1,800 at the beginning of 2009 to nearly 44,900 a year later. Seventh Generation, “Improved Products,” Return on Purpose, 2010, accessed January 25, 2011, http://www.7gen report.com/introduction/execsummary.php; and Seventh Generation, “Conversations with our Consumers,” Return on Purpose, 2010, accessed January 25, 2011, http://www.7genreport.com/engagement/index.php.
54. Jeffrey Hollender, “Big Changes at Seventh Generation,” 7GenBlog, June 1, 2009, accessed January 7, 2011, http://www.seventhgeneration.com/learn/blog/big-changes-seventh-generation.
55. Peter Graham, Seventh Generation Chairman, letter to friends and shareholders of Seventh Generation, October 26, 2010, cited in Marc Gunther, “Seventh Generation Sweeps out Its Founder,” Marc Gunther (blog), November 1, 2010, accessed January 25, 2011, http://www.marcgunther.com/2010/11/01/seventh-generation-sweeps-out-its-founder/. (Graham’s letter to shareholders was confirmed as authentic by company spokeswoman Chrystie Heimert via e-mail message to Ed Frauenheim, January 14, 2011.)
56. Ariel Schwartz, “Seventh Generation Co-Founder Jeffrey Hollender Fired by Company Board,” Fast Company, November 2, 2010, accessed January 7, 2011, http://www.fastcompany.com/1699654/seventh-generation-co-founder-jeffrey-hollender-fired-by-company-board.
57. In a letter to shareholders, for example, Board Chairman Peter Graham wrote: “To a large extent, present circumstances mirror those at many other companies whose founders have made the decision to turn over the reins to someone else. As organizations grow, so do their managerial requirements. Eventually these increasing layers of complexity demand the recruitment of experienced professional leadership whose abilities and experiences are required to move forward. This is the crossroads at which Seventh Generation now stands.” Graham, letter to friends and shareholders of Seventh Generation, cited in Gunther, “Seventh Generation Sweeps out Its Founder.”
58. Dave Rapaport, Seventh Generation Director of Corporate Consciousness, interview by Ed Frauenheim, January 12, 2011.
CHAPTER 10. THE WORTHINESS ERA
1. Ed Frauenheim, “Special Report on HR Technology: Tracking the Contingents,” Workforce Management, April 2010, accessed January 14, 2011, https://www.workforce.com/section/software-technology/feature/special-report-hr-technology-tracking-contingents/index.html.
2. “The Flexible Labor Force,” Bloomberg Businessweek, accessed January 14, 2011, http://www.businessweek.com/magazine/content/10_03/b4163036 939047.htm.
3. Watson Wyatt Worldwide, Effect of the Economic Crisis on HR Programs—Update: 2009, accessed January 14, 2011, http://www.watsonwyatt.com/news/pdfs/WT-2009-13301.pdf, figure 8.
4. Rob Gray, “Can Outsourcing Really Deliver Cost Savings?” HR Magazine, November 1, 2010, accessed January 14, 2011, http://www.hrmagazine. co.uk/news/1037089/outsourcing-really-deliver-cost-savings/; and Jessica Marquez, “Special Report: HR Outsourcing—Back to Basics,” Workforce Magazine, March 16, 2010, accessed January 14, 2011, http://www.workforce.com/section/hr-management/feature/special-report-hr-outsourcing-back basics/index.html.
5. Cascio, Employment Downsizing and Its Alternatives; see also Wayne F. Cascio, Responsible Restructuring: Creative and Profitable Alternatives (San Francisco: Berrett-Koehler Publishers Inc., 2002) and Carlos Bergfeld, “The Hidden Costs of Layoffs,” Portfolio.com, February 1, 2010, accessed January 14, 2011, http://www.portfolio.com/resources/insight-center/2009/02/01/The-Hidden-Costs-of-Layoffs/.
6. Ed Frauenheim, “5 Questions for Stephen M.R. Covey, Chief Executive of Consulting Firm CoveyLink,” Workforce Management, November 20, 2006, accessed January 14, 2011, http://www.workforce.com/archive/feature/24/60/08/index.php.
7. William D. Brosey, Richard E. Neal, and Douglas Marks, Grand Challenges of Enterprise Integration, paper for the 8th IEEE International Conference on Emerging Technologies and Factory Automation, April 2001, accessed January 14, 2011, http://www1.y12.doe.gov/search/library/documents/pdf/ydw-1851.pdf; and Valdis E. Krebs, “Managing the Connected Organization,” 2008, accessed January 14, 2011, http://www.orgnet.com/MCO.html. As the latter essay, by consultant Valdis Krebs, points out, there is power in having “indirect” ties. Those refer to people or organizations that are connected to a person or organization with whom or which you have a direct tie. Having too many direct connections can prove overwhelming to manage. But in order to benefit significantly from indirect ties, people and organizations are wise to have at least some direct, strong ties.
8. Ed Frauenheim, “Client Aids Engagement at Outsourcer,” Workforce Management, March 2010, accessed January 14, 2011, http://www.workforce.com/archive/feature/hr-management/client-aids-engagement-outsourcer/index.php; and Rob Gray, “Can Outsourcing Really Deliver Cost Savings?” HR Magazine, November 1, 2010, accessed January 14, 2011, http://www.hr magazine.co.uk/news/1037089/outsourcing-really-deliver-cost-savings/.
9. Deborah Willig, FedEx spokeswoman, e-mail to Ed Frauenheim, January 20, 2011.
10. Apple, Apple Supplier Responsibility: 2011 Progress Report, accessed March 15, 2011, http://images.apple.com/supplierresponsibility/pdf/Apple_SR_2011_Progress_Report.pdf; and Apple, Supplier Responsibility: 2010 Progress Report, accessed January 19, 2011, http://images.apple.com/supplier responsibility/pdf/SR_2010_Progress_Report.pdf.
11. Ed Frauenheim, “Special Report on HR Outsourcing: Why You Should Care about Engagement in Your Outsourcer’s Workforce,” Workforce Management, March 2010, accessed January 14, 2011, http://www.workforce.com/section/hr-management/feature/special-report-hr-outsourcing-why-should-care-about-/.
12. International Monetary Fund, “World Economic Outlook Database,” April 2010, accessed January 26, 2011, http://www.imf.org/external/pubs/ft/weo/2010/01/weodata/weoselgr.aspx.
13. Human Rights Watch, “Vietnam: End Crackdown on Labor Activists,” May 4, 2010, accessed January 14, 2011, http://www.hrw.org/en/news/2009/05/03/vietnam-end-crackdown-labor-activists; and Human Rights Watch, “China,” 2009, accessed January 14, 2011, http://www.hrw.org/en/node/87491.
14. Kathy Chu and Michelle Yun, “Workers Are Finding Their Voice to Fight for Rights in China,” The China Post, November 22, 2010, accessed January 23, 2011, http://www.chinapost.com.tw/china/national-news/2010/11/22/280826/Workers-are.htm.
15. Ed Frauenheim, “Risk, Reward, and How Angel Yu Got to the 32nd Floor,” Global Work Watch (blog), Workforce Management, March 5, 2007, accessed January 14, 2011, http://workforce.com/wpmu/global work/2007/03/05/risk-reward-and-how-angel-yu-got-to-the-32nd-floor/.
16. Ed Frauenheim, “China to the Rescue?” Global Work Watch (blog), Workforce Management, March 9, 2007, accessed January 14, 2011, http://workforce.com/wpmu/globalwork/2007/03/09/china-to-the-rescue/.
17. Peter Cappelli, Harbir Singh, Jitendra V. Singh, and Michael Useem, “Leadership Lessons from India,” Harvard Business Review, March 2010, accessed January 14, 2011, http://hbr.org/2010/03/leadership-lessons-from-india/ar/1.
18. The Nielsen Company, “Consumer Confidence, Concerns, Spending and Attitudes to Recession,” consumer report, June 2008, accessed January 14, 2011, http://pt.nielsen.com/documents/tr_0806_GCC_LR_200608.pdf.
19. Richard Payne and Marie Brinkman, “Beyond Compensation—Is It All Just Money?” Asia Connect 1, no. 1, (2008), accessed January 14, 2011, http://www.aon.com/thought-leadership/asia-connect/oct-08/beyond-compensation.jsp.
20. Accenture, “Mobility Takes Center Stage: The 2010 Accenture Consumer Electronics Products and Services Usage Report,” 2010, accessed January 14, 2011, https://microsite.accenture.com/landing_pages/consumer technologyusage/Documents/AccentureConsumerTech2010.pdf.
21. John Lipsky, First Deputy Managing Director, International Monetary Fund, “Realizing the Potential of Asia’s Developing Economies,” speech, March 22, 2010, accessed January 14, 2011, http://www.imf.org/external/np/speeches/2010/032210.htm. If nothing is done about climate change, Southeast Asia could lose the equivalent of 6% percent of GDP each year by the end of this century, more than twice the global average loss, according to the International Monetary Fund.
22. Jonathan Watts, “Copenhagen destroyed by Danish draft leak, says India’s environment minister,” Guardian, April 12, 2010, accessed January 14, 2011, http://www.guardian.co.uk/environment/2010/apr/12/copenhagen-destroyed-danish-draft-leak.
23. Shailesh M. Bureau, “For PEs, Clean Tech Opens New Investment Frontier,” Economic Times, March 30, 2010, accessed January 14, 2011, http://economictimes.indiatimes.com/news/news-by-industry/banking/finance/finance/For-PEs-clean-tech-opens-new-investment-frontier/article show/5740643.cms; and Julian Borger and Jonathan Watts, “China Launches Green Power Revolution to Catch up on West,” Guardian, June 10, 2009, accessed January 14, 2011, http://www.guardian.co.uk/world/2009/jun/09/china-green-energy-solar-wind.
24. Pew Research Center, “G-20 Clean Energy Profile China,” accessed January 14, 2011, http://www.pewglobalwarming.org/cleanenergyeconomy/factsheets/China_profile.pdf.
25. Intergovernmental Panel on Climate Change, “Climate Change 2007: Synthesis Report,” accessed January 14, 2011, http://www.ipcc.ch/publications_and_data/ar4/syr/en/spms3.html.
26. Ibid.
27. International Labour Organization, “World Day for Safety and Health at Work 2009: FACTS ON Safety and Health at Work,” April 2009, accessed January 14, 2011, http://www.ilo.org/wcmsp5/groups/public/---dgreports/---dcomm/documents/publication/wcms_105146.pdf.
28. Ibid.
29. James O’Toole and Edward Lawler III, The New American Workplace (New York: Palgrave Macmillan, 2006).
30. Ibid.
31. European Union Consumer Affairs, “3 Minutes to Discover the EU Consumer Policy,” October 2008, accessed January 14, 2011, http://ec.europa.eu/consumers/safety/rapex/docs/rapex_annualreport2009_en.pdf. The number of nonfood consumer product safety notifications distributed by the European Commission climbed 16 percent to 1,866 from 2007 to 2008, and in the United States the number of toy-related injuries treated in hospital emergency departments rose 12 percent to 235,300 from 2004 to 2008. Consumer Product Safety Commission, “Toy-Related Deaths and Injuries Calendar Year 2008,” accessed January 14, 2011, http://www.cpsc.gov/library/toymemo08.pdf.
32. Consumer Product Safety Commission, “2009 Annual Report to the President and the Congress,” 2009, accessed January 14, 2011, http://www.cpsc.gov/cpscpub/pubs/reports/2009rpt.pdf.
33. Paul S. Mead, Laurence Slutsker, Vance Dietz, Linda F. McCaig, Joseph S. Bresee, Craig Shapiro, Patricia M. Griffin, and Robert V. Tauxe, “Food-related Illness and Death in the United States,” Emerging Infectious Diseases, September-October, 1999; 5(5): 607-25.
34. WorldPublicOpinion.org, “Wide Dissatisfaction with Capitalism—Twenty Years after Fall of Berlin Wall,” accessed January 14, 2011, http://www.worldpublicopinion.org/pipa/articles/btglobalizationtradera/644.php?lb=btgl&pnt=644&nid=&id=; and WorldPublicOpinion.org, “Global Poll Shows Support for Increased Government Spending and Regulation.”
35. David Barstow, Laura Dodd, James Glanz, Stephanie Saul, and Ian Urbina, “Regulators Failed to Address Risks in Oil Rig Fail-Safe Device,” New York Times, June 20, 2010, accessed January 14, 2011, http://www.nytimes.com/2010/06/21/us/21blowout.html.
36. David Brooks, “The Larger Struggle,” New York Times, June 14, 2010, accessed January 14, 2011, http://www.nytimes.com/2010/06/15/opinion/15brooks.html.
37. Barstow et al., “Regulators Failed to Address Risks in Oil Rig Fail-Safe Device” New York Times, June 20, 2010.
38. National Commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling, “Deep Water: The Gulf Oil Disaster and the Future of Offshore Drilling,” January 2011, vii, accessed January 23, 2011, https://s3.amazonaws.com/pdf_final/1_OSC_Intro.pdf.
39. Tuition reimbursement programs may be an example of a particularly effective training investment. Peter Cappelli, “Why Do Employers Pay For College?” accessed January 14, 2011, http://www-management.wharton.upenn.edu/cappelli/documents/WhyDoEmployersPayforCollege.pdf; and Elaine Rigoli, “The Talent-on-Demand Approach with Wharton’s Peter Cappelli,” ere.net, March 12, 2008, accessed January 14, 2011, http://www.ere.net/2008/03/12/the-talent-on-demand-approach-with-whartons-peter-cappelli/.
40. Charlie Cray, “Chartering a New Course: Revoking Corporations’ Right to Exist,” Multinational Monitor, October/November 2002, accessed January 14, 2011, http://www.multinational monitor.org/mm2002/102002/cray.html.
41. Ibid.
42. The Corporation, DVD, a film by Mark Achbar, Jennifer Abbott, and Joel Bakan (Vancouver, BC: Hello Cool World, 2004).
CHAPTER 11. A HOPEFUZ.Z.Y IDEALISTIC VISION
1. U.S. Securities and Exchange Commission, “SEC Issues Interpretive Guidance on Disclosure Related to Business or Legal Developments Regarding Climate Change,” January 27, 2010, accessed January 14, 2011, http://www.sec.gov/news/press/2010/2010-15.htm.
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