Endnotes

Introduction

1 The term corporate responsibility (CR) is used synonymously with the term corporate social responsibility (CSR).

2 A. Karnani, “The Case Against Corporate Social Responsibility,” Wall Street Journal, 23 August 2010.

3 CorporateRegister.com, “Stats,” www.corporateregister.com/stats, accessed January 21, 2012.

4 The word “footprint” is a popular term used to describe the total inventory of an environmental impact, through the lifecycle of a product or process. The term “carbon” is a euphemism for total greenhouse gas emissions. Thus, a “carbon footprint” is the total greenhouse gas impacts through the lifecycle of a product or process.

5 Sarbanes–Oxley Act. Pub. Law. 107-204.

6 Dodd–Frank Act. Pub Law. 101-203.

7 UN Commission on Environment and Development, Our Common Future (Oxford, UK: Oxford University Press, 1987).

8 A. Smith, The Theory of Moral Sentiments (Edinburgh: A. Kincaid and J. Bell; London: A. Millar, 1759).

9 C. Christensen, “How Will You Measure Your Life?” Harvard Business Review 88.7–8 (July 2010): 45-61.

Chapter 1

10 E. Weinreb, “CSR Jobs Report 2010: 2004–2009 Longitudinal Study Conclusions,” April 7, 2010, weinrebgroup.com/insights/csr-jobs-report-2010, accessed July 16, 2011.

11 S.R. Covey, The 7 Habits of Highly Effective People: Restoring the Character Ethic (New York: Free Press, 2004).

12 Landor Associates; Penn, Schoen, Berland; Cohn & Wolfe; and Esty Environmental Partners, “The 2011 Image Power Green Brands Survey,” June 2011, www.cohnwolfe.com/en/ideas-insights/white-papers/green-brands-survey-2011, accessed January 10, 2012.

13 “The Luddites were a social movement of nineteenth-century English textile artisans who protested – often by destroying mechanized looms – against the changes produced by the Industrial Revolution, which they felt were leaving them without work and changing their way of life. The movement was named after General Ned Ludd or King Ludd, a mythical figure who, like Robin Hood, was reputed to live in Sherwood Forest” (en.wikipedia.org/wiki/Luddite, accessed January 26, 2012).

14 M. Gladwell, The Tipping Point: How Little Things Can Make a Big Difference (Boston, MA: Little Brown & Co., 2000).

15 E. Lipton, M. McIntire, and D. Van Natta Jr., “Top Corporations Aid U.S. Chamber of Commerce Campaign,” New York Times, October 22, 2010.

16 The term comes from the Brundtland Commission report Our Common Future (1987), which defined sustainable development as “Development that meets the needs of the present without compromising the ability of future generations to meet their own needs.” Five years later, the 1992 Rio Declaration on Environment and Development – or “Rio Declaration” – was issued, which consisted of 27 principles intended to “guide future sustainable development around the world.”

17 The number of transistors that can be placed inexpensively on an integrated circuit doubles approximately every two years (Gordon Moore, “Cramming More Components onto Integrated Circuits,” Electronics Magazine, April 1965).

18 Visionaries like Bill Sheppard pioneered “the right thing to do” culture at Intel. For an excellent case study of Intel’s sometimes rocky road during this period, see “Growing Pains: Rio Rancho Wooed Industry and Got It, Plus Financial Woes,” Wall Street Journal, April 11, 1995: A1.

19 In practice, the term “sustainability” has become almost synonymous with environmental issues. Because the term “corporate social responsibility” includes the word “social,” some people may equate this to labor and human rights issues. Many companies have adopted the term “corporate responsibility” to be inclusive of both environmental and social issues.

20 From www.globalreporting.org: The Global Reporting Initiative (GRI) is a network-based organization that pioneered the world’s most widely used sustainability reporting framework. GRI is committed to the Framework’s continuous improvement and application worldwide. GRI’s core goals include the mainstreaming of disclosure on environmental, social and governance performance.

21 CorporateRegister.com, “Stats.”

22 The International Organization for Standardization (ISO) has published a guideline on corporate social responsibility titled ISO 26000: 2010 “Guidance on Social Responsibility.” In addition, The Boston College Center for Corporate Citizenship published an excellent resource titled “Profile of the Profession 2010: Corporate Citizenship Leaders for Today and Tomorrow” (June 25, 2010); see: www.bcccc.net/index.cfm?fuseaction=document.showDocu mentByID&DocumentID=1387 (accessed January 11, 2012). Lastly, the Corporate Responsibility Officer Association published a draft code of ethics for corporate responsibility managers: “CROA: Draft Ethics Code” (March 16, 2010); see: www.croassociation.org/node/838/16571 (accessed January 11, 2012).

23 A recent Stanford Business School Survey concluded that new MBAs would give up more than 14% of their starting salary to work within a sustainable business. D.B. Montgomery and C.A. Ramus, Calibrating MBA Job Preferences (Working Paper; Stanford, CA: Stanford Graduate School of Business, 2008).

Chapter 2

24 This lesson is reminiscent of the parable of “boiling the frog.” If you put a frog in hot water, he jumps right out. But if you put him in at a comfortable temperature and turn up the heat one degree at a time, he will stay there until he is cooked.

25 S. Mol, Classical Fighting Arts of Japan: A Complete Guide to Koryū Jūjutsu (Tokyo, Japan: Kodansha International, 2001): 24-54.

26 Ibid.

27 The designation “skunk works” is widely used in business, engineering, and technical fields to describe a group within an organization given a high degree of autonomy and unhampered by bureaucracy, tasked with working on advanced or secret projects.

28 M.E. Porter and M.R. Kramer, “Strategy and Society: The Link between Competitive Advantage and Corporate Social Responsibility,” Harvard Business Review 84.12 (December 2006).

29 M.E. Porter and M.R. Kramer, “The Big Idea: Creating Shared Value,” Harvard Business Review 89.2 (January 2011): 62-77.

30 C. Christensen, The Innovator’s Dilemma: The Revolutionary Book that Will Change the Way You Do Business (New York: HarperCollins, 2000).

31 Much like the dashboard in your car tells you about the essential functions on a real-time basis, a management dashboard tracks key indicators that determine the health of a business function.

Chapter 3

32 From www.globalreporting.org. See note 20. The GRI has become the de facto international standard of the issues and key performance indicators that define corporate responsibility.

33 SAM (Sustainable Asset Management), “Dow Jones Sustainability Indexes,” 2011, www.sustainability-index.com, accessed August 22, 2011.

34 Open-ended questions are an important business tool but can be hard to master. A good example of the difference between an open- and closed-ended question is asking someone: “is this issue a priority for your business?” vs. “tell me about the issues that are a priority for your business.” The first question could elicit a yes or no response; the second question allows the person to explain their issues in their own words. You will learn more with open ended questions and the conversation will be far more engaging. Practice this skill with a friend and count how many times you end up asking a question that can be answered with a yes or no answer.

35 Business for Social Responsibility has done an outstanding job conducting these analyses for me at three different companies.

36 Ceres is an organization (www.ceres.org) that specializes in stakeholder engagement on corporate responsibility and can manage the details for you.

37 One of the more innovative ways to attain stakeholder input on a materiality analysis is the interactive matrix on SAP’s website. This matrix allows anyone from outside the company to move issues between the four quadrants based on their own perspectives, then tabulates and updates the average of all input.

38 A popular exercise to underscore the advantage of team processes is to set out a problem and ask individuals to first try to solve the problem their own; then do the same exercise in groups. Invariably, group processes produce better results because of the diversity of experiences and perspectives.

39 There are many “icebreakers” for getting people used to participating at the start of meetings. Many are personal questions such as “tell us about one hidden talent.” I tend to like icebreakers that are tied to the topic of the day, such as asking each participant: “what are your expectations for this meeting?”

40 There is something magical about writing someone’s words on an old-fashioned flip chart. It allows people to “see” and internalize the thoughts and increases their ability to build on the concepts. Words that are not captured on flip charts often float away as soon as the next person starts to talk. Drawing pictures, tables and diagrams also helps participants visualize the progress of their discussion. Again, a good facilitator can add value to group meetings with techniques to elicit and capture the group’s creativity.

41 The most concise and memorable vision statement I have heard came from a business case on the Xerox Corporation. The vision statement was “beat Canon.”

42 Be selective in choosing KPIs. Not everything that can be measured should be. The act of measuring takes resources, which are multiplied when actions are taken to manage the indicator toward a goal. A good indicator indicates – i.e., it tells you something useful about the overall system being tracked without having to measure the whole system. For example, personal space (in square meters) can be a good indicator of conditions in a supplier’s dormitory without knowing much more about the dorm. Most indicators are lagging – telling you what has already happened. If possible, find some indicators that are leading or predictive. A good example of a leading indicator is repeat safety or environmental incidents – if you see the same issues again and again, there is likely a gap in your management system that could predict a larger failure in the future.

43 I do remember the day that Steve Jobs gave this speech. It was moving, but what got the crowd on their feet was when Jobs announced that all employees would receive a new iPhone (they were still pretty rare at that point).

44 O. Harari, The Leadership Secrets of Colin Powell (New York: McGraw-Hill, 2002).

45 United Nations Framework Convention on Climate Change, UN Doc FCCC/CP/1997/7/Add.1, December 10, 1997; 37 ILM 22 (1998).

46 At a scenario planning session I helped set up at Intel, we hired a graphic artist to sketch out the alternative scenarios in pictures and color them in based on how the group reacted. Although this kind of support is not essential for scenario planning, it was a fun and engaging process for all involved.

47 Here are a few basic hints for staying on top of the growing mountain of information on corporate responsibility topics: download “TweetDeck” or “HootSuite” to keep track of a variety of social media feeds and hashtags such as #csr and #sustainability on one screen. Establish a few “Google Alerts” for important issues – Google’s search engine will gather and e-mail relevant Web hits for your search strings at regular intervals. Sign up for “report alert” to get real-time notification of when new CSR reports are issued.

Chapter 4

48 Coca-Cola Company, “Live Positively,” 2011, www.thecoca-colacompany.com/citizenship/index.html, accessed August 22, 2011.

49 Starbucks, “Starbucks Global Responsibility Report: Goals & Progress 2010,” 2011, www.starbucks.com/responsibility/learn-more/goals-and-progress, accessed January 22, 2012.

50 Kaplan and Norton’s The Balanced Scorecard is the bible for many corporate managers for the development of management dashboards. It is worth a read, but it is my experience that, while you can draw useful lessons from this book, a literal application is not a perfect fit for most corporate responsibility programs.

51 When we were establishing this program at Intel, my wife used to mark the week before an operations review on her calendar because she knew that I would be largely unavailable.

52 I recall a meeting where Tim Cook asked me about an NGO report on Apple suppliers. I was surprised that he was even aware of the report. He not only knew about the report, he had read the report and had a question about a claim made on a page that was deep in the document.

53 Apple does not have a corporate responsibility function per se. The main functions are divided into the applicable business units. While this structure reduces bureaucracy, it also limits the coordination and communication between functions with overlapping interests.

Chapter 5

54 The term “environmental footprint” is used to describe the overall environmental impact of a product or process. The term is often applied to the lifecycle of a product and it can be sub-categorized by certain issues such as the water footprint or climate (or “carbon”) footprint.

55 K. Kleiner, “The Corporate Race to Cut Carbon,” Nature Reports Climate Change doi:10.1038/climate.2007.31, August 2007.

56 See Peter Sandman’s risk communication framework at www.psandman.com (accessed January 10, 2012).

57 This does not mean that you should ignore actual risks that have yet to make it into the public consciousness. The point is that you need to ensure that all known or anticipated health and environmental risks are well managed as well as address the perception of risk.

Chapter 6

58 The smiling curve illustrates value added (return on investment) as a function of the product lifecycle. The curve shows that the highest returns are in the beginning and the end of the product lifecycle. There are slimmer profits in the middle of the lifecycle – assembly and manufacturing. This observation has become even more pronounced with the acceleration of globalization in recent years.

59 J. Dedrick, K.L. Kraemer, and T. Tsai, ACER: An IT Company Learning to Use Information Technology to Compete (Irvine, CA: Center for Research on Information Technology and Organization, University of California, Irvine, 1999).

60 For more information about Social Accountability International, visit www.sa-intl.org (accessed January 10, 2012).

61 Read about the ISM Principles of Sustainability and Social Responsibility at www.ism.ws/sr/content.cfm?itemnumber=18497&navitemnumber=18499 (accessed January 10, 2012).

Chapter 8

62 Toastmasters International, www.toastmasters.org, accessed October 1, 2011.

63 Gallup Management Journal, “Gallup Study: Engaged Employees Inspire Company Innovation” (Washington, DC: Gallup Organization, 2006; gmj.gallup.com/content/24880/gallup-study-engaged-employees-inspire-company.aspx, accessed August 22, 2011).

64 Hewitt Associates, LLC, 2010 Best Employers in Canada Study (Vancouver, BC: Hewitt Associates, 2010; www.hewitt.com/bestemployerscanada, accessed August 19, 2011).

65 Social Investment Forum Foundation, 2010 Report on Socially Responsible Investing Trends in the United States (Washington, DC: US Social Investment Forum, 2010; ussif.org/resources/research/documents/2010TrendsES.pdf, accessed August 21, 2011).

66 BrandZ Rankings, “BrandZ Global Top 100,” 2011, www.millwardbrown.com/BrandZ/default.aspx, accessed October 1, 2011.

67 Karnani, “The Case Against Corporate Social Responsibility,” Wall Street Journal, 23 August 2010.

Chapter 9

68 See the GRI reporting statistics at www.globalreporting.org (accessed January 10, 2012).

Chapter 10

69 The Future 500, “Sustainability Toolkit,” 2011, www.future500.org/sustainability-toolkit, accessed February 1, 2012.

70 To learn more about the XL program and the policy please read: “The Alternative Compliance Model: A Bridge to the Future of Environmental Management” by Timothy Mohin in Environmental Law Reporter 27.7 (July 1997).

71 See the matrix at: www.sapsustainabilityreport.com/be-heard (accessed January 10, 2012).

72 Investor Relations Weekly reported in May of 2011 that there are 108 entities creating corporate sustainability ratings, but that fewer than 20 are used by the average company.

73 This report is in four parts and provided free of charge on the SustainAbility website: www.sustainability.com (accessed January 17, 2012).

74 Social Investment Forum Foundation, Report on Socially Responsible Investing Trends in the United States.

75 Ibid.

76 Ibid.

77 AMD has taken a leadership stance on this issue by co-chairing a multi-stakeholder policy group with an NGO called Project Enough (a project of the Center for American Progress).

42 Chapter 11

78 Scarlett Surveys International, “Blog: What Is Employee Engagement?” 2011, www.scarlettsurveys.com, accessed August 19, 2011.

79 Towers & Watson Employee Surveys, Employee Surveys: Talent and Rewards (New York: Towers & Watson, 2011; www.towerswatson.com/services/Employee-Surveys, accessed August 22, 2011).

80 Gallup Management Journal, “Gallup Study: Engaged Employees Inspire Company Innovation.”

81 PricewaterhouseCoopers, Managing Tomorrow’s People: Millennials at Work: Perspectives from a New Generation (London: PwC, 2008; www.pwc.com/gx/en/managing-tomorrows-people/future-of-work/pdf/mtp-millennials-at-work.pdf, accessed August 21, 2011).

82 Hewitt Associates, “2010 Best Employers in Canada Study.”

83 Stanford GSB News, Challenging Work and Corporate Responsibility Will Lure MBA Grads (Stanford, CA: Stanford GSB, 2008; www.gsb.stanford.edu/news/research/montgomery_mba.html, accessed August 22, 2011).

84 Society for Human Resources Management, Advancing Sustainability: HR’s Role (Alexandria, VA: SHRM, 2011; www.shrm.org/Research/SurveyFindings/Articles/Pages/AdvancingSustainability HR%E2%80%99sRole.aspx, accessed August 21, 2011).

85 S. Du Bois, “How Going Green Can Be a Boon to Corporate Recruiters,” Fortune, June 2011, tech.fortune.cnn.com/2011/06/02/how-going-green-can-be-a-boon-to-corporate-recruiters, accessed August 21, 2011.

86 See www.handsonnetwork.org/nationalprograms/skillsbasedvolunteering, accessed January 21, 2012.

87 Read Elaine Cohen’s book, CSR for HR: A Necessary Partnership for Advancing Responsible Business Practices (Sheffield, UK: Greenleaf Publishing, 2010), for an in-depth look at engaging employees in corporate responsibility.

Chapter 12

88 In my experience, companies tend to hire and promote similar personality types. My belief is that company culture tends to select for certain traits which, over time, leads to homogeneity of the personalities in any particular group (birds of a feather flock together).

89 See DiversityInc Top 50 at www.diversityinc.com and the Corporate Leadership Council at www.clc.executiveboard.com (accessed January 10, 2012).

90 See www.catalyst.org (accessed January 10, 2012).

91 In addition to the employee diversity function (which is typically housed in the human resources department), many companies have an entirely separate program on supplier diversity. These programs were created because U.S. government procurement laws require a certain percentage of purchasing from certified, minority-owned, women-owned, and small businesses. Companies that have significant sales to the U.S. government will usually have someone in charge of monitoring supplier diversity within the purchasing department.

92 NYSE-Sponsored Commission on Corporate Governance, “NYSE Euronext Corporate Governance Guidelines,” 2010, www.nyse.com/pdfs/CorpGovGuidelines_4-5-07.pdf, accessed August 21, 2011.

93 J. Tozzi, “Patagonia Road Tests New Sustainability Legal Status,” Bloomberg.com, January 2012, www.bloomberg.com/news/2012-01-04/patagonia-road-tests-new-sustainability-legal-status.html, accessed January 23, 2012.

94 There is confusion between the voluntary “B” corporation pledge that some companies have taken (see www.bcorporation.net) and these new laws. The laws are far more impactful in that they set out the rules and liabilities for the corporation’s governance, thereby creating the legal protections needed to factor environmental and social considerations into corporate decision-making.

95 Global Reporting Initiative, “Sustainability Reporting Guidelines,” Version 3.1, 2000–2011, Section 4, https://www.globalreporting.org/resourcelibrary/G3.1-Guidelines-Incl-Technical-Protocol.pdf, accessed January 22, 2012.

96 M.E. Porter and M.R. Kramer, “Strategy and Society: The Link between Competitive Advantage and Corporate Social Responsibility,” Harvard Business Review 84.12 (December 2006).

97 Global Reporting Initiative, Indicator Protocols Set: Society (SO, Version 3.1) (Amsterdam, NE: GRI, 2006; https://www.globalreporting.org/resourcelibrary/G3.1-Society-Indicator-Protocol.pdf, accessed January 22, 2012.

Chapter 13

98 Investor Relations Weekly reported in May of 2011 that there are 108 entities creating corporate sustainability ratings, but that less than 20 are used by the average company.

99 Regardless of their odd scoring system, the 100 Best Corporate Citizens list uses one of the most transparent ranking methods on the market. Other rankings do not disclose their methods.

Chapter 14

100 Read more about Dr. Farmer in the book Mountains Beyond Mountains. Healing the World: The Quest of Dr. Paul Farmer by Tracy Kidder (Random House, 2003).