Sustaining Emerging Markets: Technology, Capital and Women

May 2007 Volume V, Number 4

Net Contents
I. Network Presentation
Key Findings
Perspectives

II. What’s New

III. The Women’s Network for a Sustainable Future
The Concept of the Network
Contact Information
Sponsorship Opportunities

I. Network Presentation

A big thank you to those who took the time to attend WNSF’s first West Coast panel on May 11, 2007 entitled “Sustaining Emerging Markets: Technology, Capital and Women” hosted by Intel in Santa Clara, California. The session featured speakers from Intel and Google and explored the role of technology in empowering business and businesswomen in the developing world and of linking CSR priorities at home with those in the field.

Key Findings

  • The challenges of implementing CSR at home expand when working in emerging markets, but the core principles remain the same
  • Challenges of convincing developing markets and local communities of the benefits of technology can be overcome by getting local buy-in—a challenge in itself.
  • Measuring impact of programs here and elsewhere is often anecdotal but quantification helps persuade top brass
  • Women are a key to empowering emerging markets, through technology as through more traditional aids like capital and training.

Perspectives

  • Welcome:
    Shelly Esque, Director, Regional Corporate Affairs, Intel
  • Introduction to WNSF:
    Kathy Robb, Esq., Board Chair and Co-Founder, WNSF
  • Moderator:
    Ann Goodman, Executive Director and Co-Founder of WNSF
  • Discussants:
    Diana Adair, Google, Manager, Corporate Communications
    Lila Ibrahim, Intel Corp., Chief of Staff to Chairman

Shelly Esque, Intel Director of Regional Corporate Affairs, welcomed some 40 attendees to WNSF’s first West Coast program, stressing the value of cross-fertilization of East and West Coast perspectives on social responsibility and sustainability among women in business and highlighting Intel’s commitment to both women and social responsibility.

Kathy Robb, Board Chair of WNSF and a Co-Founder, reviewed WNSF’s history and outlined its mission and activities.

Ann Goodman, PhD., Executive director and Cofounder of WNSF, set the stage for the moderated discussion by with a brief reminder of the changing role business plays in the ever-more global economy, as well as some of the new responsibilities of companies vis a vis the societies and cultures they encounter—many of which are often called ‘emerging markets.’ She explained that with discussants from Silicon Valley, the panel would explore the particular challenges and opportunities for this sector as it migrates internationally, along with some of the challenges involved in doing so ‘responsibly.’ This inevitably means rethinking the entire CSR role and looking at some of the ways this nascent business function is evolving in relation to globalization, as well as the role of women in propagating the responsible outcomes of business, both here and in developing markets.

Highlights of the moderated dialogue, in which Ms. Adair and Ms. Ibrahim answered questions from the moderator and the floor, are below:

Challenges and Rewards of Implementing CSR Ms. Adair explained that at Google the basic tenants of CSR include openness, transparency; leadership; passion and partnerships with those inside and outside the company. The goal is to embed CSR throughout the company, in its various functions and activities.

As for Ms. Ibrahim, she is the right hand of Intel’s Chairman Craig Barrett, whose CSR-focused passions includes worldwide education, e-governance, healthcare and economic development— with technology as the backdrop of all activities. Traveling throughout the world, Ms. Ibrahim has observed that, while cultures and societies may differ, all treasure these four values above all and are united through these shared aspirations. While it’s not always their first need, technology is something communities in the developing world learn to value as they see the practical results.

As for Google, Ms. Adair stressed that international industry standards are a priority. In the US, the company is able to provide many of its applications and services through advertising income, but internationally Google works with emerging markets and their governments to allow to provide such tools gratis, where allowed. This helps Google grow the market via brand recognition, while serving the community. (DA)

Value Added of Technology in Emerging Markets

When people are sick, hungry and poor, what is the value of technology to their lives and their enterprises? Ms. Ibrahim answered this question with an example from the Brazilian Amazon, an island of poverty in the middle of the country, plagued by leprosy, among other social problems. By introducing remote access medical help, Intel helped improve health care by connecting rural communities with wealthier doctors from the city through the latest technology hook-ups.

In Lebanon, where Ms. Ibrahim introduced technology to an orphanage during her Intel sabbatical, the administrators first asked for food and clothes. But she convinced them to give the computers a try, and now these orphans are getting university scholarships.

The key to success of such technology problems in the developing world is convincing the locals that they have a personal investment in the project—not just in the benefits of its outcomes but in the implementation. And any technology launch must include a complete package from soup to nuts- hardware, software and training.

The biggest challenge is resolving local doubts about why a large company like Intel wants to help; CSR is something that motivates companies, but not communities. While business may need to connect the dots to the bottom line for its shareholders, more hands-on answers to concrete problems are the way to show those in the field that companies can provide solutions to real-life needs. Examples have ranged from providing connectivity to remote sites through Wi-MAX technology (to provide wireless broadband capabilities over a larger geographic area than Wi-Fi) to providing mobile technology buses to service communities. Intel has sometimes found it useful to collaborate with multilateral institutions like the UN or the World Bank.

Measuring and Communicating Results

Ms. Adair said that measuring CSR results clearly helps Google’s brand, particularly when it comes to recruiting. As for communicating CSR results externally, it helps to translate the story to the human level. For instance, Google offers free shuttle buses between its Santa Clara headquarters and areas where employees live. That project helps cut emissions from individual transportation and lightens the load for employees. But effectively communicating the value of the project internally means breaking out the impact on the bottom line for managers. Another case involves the solar panel installation at Google’s company headquarters in Mountain View. The challenge is to help people understand the benefits of such a project, especially as it impacts employees, managers, and sales people so that they can also communicate effectively with stakeholders and clients about the project.

Ms. Ibrahim said that in measuring and communicating CSR results, Intel focuses on its business gains -environmental improvements at new factories or new investments in education. However, rewards from such investments are often garnered over the time and can’t be seen immediately. For instance, the ultimate investment in education is creating a positive economic spiral for billions around the globe.

In a discussion with participants, the question of ‘finding one’s niche’ among the CSR issues was raised. For instance, global warming appears to be the new flavor of the month. How can a company compete on these issues while limiting mistakes?

Ms. Adair pointed out that the environment is only one issue facing business—even in the technology sector, which has a significant footprint. She mentioned that privacy and the digital divide are just as important. Plus, just because a certain issue is suddenly in vogue doesn’t mean that a company can afford to set aside the other important areas where it has been striving to progress.

Participants also discussed making money while helping society and the double-edged sword of how and when to talk about successes publicly without appearing self-serving.

The challenge is the external skepticism on methods behind business motives for good deeds. To combat such doubts, Intel takes the press and others on site visits to see results for themselves. Ms. Ibrahim has toured remote health care and educational solutions in Brazil with reporters, for example. But, she cautioned, this can’t be done as a one off event; it has to be a sustained effort. And, even if the press has a different opinion, the company should continue to do what it believes is right, understanding that some projects may. work and others may not.

Women Engaging with Technology in Emerging Markets

  • Women are a key to empowering emerging markets, through technology as through more traditional aids like capital and training.

Ms. Ibrahim explained that in global communities women are key players in the local culture and economy—from transporting water in rural villages to teaching. Intel’s technology often reaches them first. For instance, in Baramati, India, a young girl convinced an uncle to get a computer and then taught farmers how to use the PC to improve business. In Saudi Arabia, technology has empowered women by allowing them to study and work within the confines of the culture. Ms. Ibrahim said she believes that as a woman traveling the globe with Intel’s chairman, she can often alleviate doubts and fears among locals, put them at ease and bridge the communication and cultural issues. Back to top

II. What’s New

  • Register for WNSF’s next roundtable, “Combating Poverty: Innovative Business Approaches,” hosted by IBM and New York Regional Association of Grantmakers on June 22, 2007 at 12:00 PM inNew York City. Register at http://www.wnsf.org.

III. The Women’s Network for a Sustainable Future The Concept of the Network

The Concept of the Network The Women’s Network for a Sustainable Future (WNSF) provides a forum for businesswomen to congregate, reflect, and act on the convergent issues of corporate social responsibility and sustainable development. Through meetings, training and simple electronic support tools, WNSF facilitates the exchange of experiences and best practices, building a community of businesswomen who can serve as powerful change agents for corporate responsibility sustainability in the US and internationally.

The Women’s Network for a Sustainable Future is a 501c3 organization. Gifts are tax deductible.

For more information, please contact:
Ann Goodman, Executive Director
Women’s Network for a Sustainable Future
Please direct inquiries to: info@wnsf.org

Board of Directors: CHAIR: Kathy Robb, Esq., Partner and Head of Environmental Practice, Hunton & Williams; Marlys Appleton, VP, Alternative Investments and Sustainability, AIG; Dianne Dillon Ridgley, Director, Interface Inc.Board; Karen Flanders, Director of Sustainability, Coca-Cola Co.; Joanne Fox-Przeworski, Director, Bard Center for Environmental Policy, Bard College; Ann Goodman, Executive Director, WNSF; Sarah Howell, Director, Corporate Communications, BP; Michele Kahane, Special Projects Director, Center for Corporate Citizenship, Boston College; Clair Krizov, Executive Director of Environmental and Social Responsibility, AT&T; Joyce La Valle, Senior Vice President, Interface Inc.; Anita Roper, Director of Sustainability, Alcoa Corp.; Deborah Sliter, Vice President of Programs, National Environmental Education & Training Foundation.

This issue of Net Notes was reported by Julie Dunkle and edited by Ann Goodman. WNSF thanks founding sponsors AT&T and the Ford Foundation for their generous support.

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Business, Women and Sustainable Development in China

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April 2007 Volume V, number 3

“Business, Women and
Sustainable Development in China”

Net Contents

I. Network Presentation
Key Findings Perspectives

II. What’s New

III. The Women’s Network for a Sustainable Future
The Concept of the Network
Contact Information
Sponsorship Opportunities

I. Network Presentation

A big thank you to those who took the time to attend WNSF’s luncheon panel on April 26, 2007 entitled “Business, Women and Sustainable Development in China”hosted by Burson Marsteller at the New York City office. The session featured Professor Shi Qingqi, Executive Vice-chairman and Secretary General of the China Association of Women Entrepreneurs, who shared insight into the status of women entrepreneurs in China.

Key Findings

  • The number of women entrepreneurs is increasing as more opportunities open along with a freer economy.
  • Sustainable development and energy reduction are issues that need to be addressed by government and business in China, as in the US.

Perspectives

  • Introduction: Ann Goodman, Ph.D., Executive Director, WNSF.
  • Welcome: Kathy Robb, Esq., Chair, WNSF Board of Directors and Partner and Head of Environmental Practice, Hunton & Williams
  • Speaker: Professor Shi Qingqi, Executive Vice-chairman and Secretary-general of China Association of Women Entrepreneurs
  • Translators: Lina Sun, Vivien Xiong

The Current Status of Women Entrepreneurs in China
Presented by Shi Qingqi

Professor Shi began her presentation by calling attention to the need for Chinese women entrepreneurs and American women entrepreneurs to work together in making the world a better place. The U.S. is number one in greenhouse gas emissions and China is number two, with the potential to flip flop soon. By sharing energy saving technologies and experience in sustainability, women entrepreneurs can help stop environmental degradation.

In China women-led businesses are on the rise, and only 2% of women-led businesses operate at a loss. Women entrepreneurs are growing at a faster pace than male entrepreneurs because the new market economy is giving women more opportunity. Women have businesses in many different industries especially in the manufacturing (37.2%), wholesale, retail, trade and catering industries (28.2%) and social services (10.6%).

Women start businesses at a later age than men (largely due to child bearing) and are slightly more educated then their male counterparts. Advanced technology is essential for a start up so women are acquiring advanced degrees. All members of Prof. Shi’s CAWE delegation at the NYC meeting had at least undergraduate degrees.

The main problem facing women entrepreneurs is funding, which still comes primarily from family and friends, though government and agency support is increasing. Other challenges include lack of experience in international markets and social constraints such as family, society and corporate hierarchy.

CAWE sees an urgent need to reduce energy consumption and create a more sustainable world. In 2002 CAWE sent a delegation to UN’s Earth Summit in South Africa with the slogan of “Save the Earth & Take Action”

Women entrepreneurs are much more interested than their male counterparts in people in need and see the growing demand for improvements in water, energy, health and agriculture. Members of the CAWE delegation emphasized promoting cost-effective products that can be sold and purchased by women in rural areas.

The US and Europe have become major trade partners of Chinese women entrepreneurs since China joined the WTO. Manufacturing sites of women-led enterprises maintain higher levels of international standards such as ISO14000 and ISO90000 certification.

The Chinese government’s new goal is to save 20% of energy and reduce green house gases by 10%. In rural areas lacking clean energy, the government is exempting agricultural tax.

China’s GDP is 6% of the global GDP but raw material consumption is higher than in the US. China is the largest consumer of cement, and, with the same amount of raw material, makes fewer products than its counterparts in the US and other countries.

The Chinese government has begun taking a lead on saving energy by regulating companies’ energy saving efforts. However, this effort is national and lacks reinforcement among local government bodies where corruption is rampant. The media also plays a big role in reminding people to save energy and water.

II. What’s New

  • WNSF’s Board member Joyce LaValle is the USGBC’s first-ever winner of the New York chapter’s LEEDER award.” Read about her contributions at: http://www.wnsf.org
  • Register for WNSF’s next roundtable, “Combating Poverty: Innovative Business Approaches,” hosted by IBM and New York Regional Association of Grantmakers on June 22, 2007 at 12:00 PM in New York City. Register at http://www.wnsf.org

III. The Women’s Network for a Sustainable Future
The Concept of the Network

The Women’s Network for a Sustainable Future (WNSF) provides a forum for businesswomen to congregate, reflect, and act on the convergent issues of corporate social responsibility and sustainable development. Through meetings, training and simple electronic support tools, WNSF facilitates the exchange of experiences and best practices, building a community of businesswomen who can serve as powerful change agents for corporate responsibility sustainability in the US and internationally. The Women’s Network for a Sustainable Future is a 501c3 organization. Gifts are tax deductible.

For more information, please contact: Ann Goodman, Ph.D., Executive Director Women’s Network for a Sustainable Future Please direct inquiries to: info@wnsf.org Board of Directors:

CHAIR: Kathy Robb, Esq., Partner and Head of Environmental Practice, Hunton & Williams; Dianne Dillon Ridgley, Director, Interface Inc. Board; Karen Flanders, Director of Sustainability, Coca-Cola Co.; Joanne Fox-Przeworski, Director, Bard Center for Environmental Policy, Bard College; Ann Goodman, Executive Director, WNSF; Sarah Howell, Director, Corporate Communications, BP; Michele Kahane, Special Projects Director, Center for Corporate Citizenship, Boston College; Clair Krizov, Executive Director of Environmental and Social Responsibility, AT&T; Joyce La Valle, Senior Vice President, Interface Inc.; Anita Roper, Director of Sustainability, Alcoa Corp.; Deborah Sliter, Vice President of Programs, National Environmental Education & Training Foundation.

This issue of Net Notes was written by Carrie Clyne and edited by Ann Goodman. WNSF thanks founding sponsors AT&T and the Ford Foundation for their generous support.

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Sustainability and Gender: Private Sector Perspectives

March 6, 2007
Host: The World Bank
Speakers: Peter van der Veen, Dominque Lallement, My Luu, Karen Mayer, John Strongman, Amanda Ellis.

[Content for this event will be posted at a later date.]

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Fourth Annual Businesswomen’s Sustainability

October 2, 2007

“Fourth Annual Businesswomen’s Sustainability Leadership Summit”

SUSTAINABILITY AND INNOVATION

Sponsors: AIG, BP, Burson-Marsteller, The Coca-Cola Company, Eileen Fisher, Intel, Interface, JP MorganChase, The McGraw-Hill Companies and Pfizer

Special Thanks to: Framework CR

Introduction WNSF cofounders Kathy Robb and Ann Goodman, opened this year’s summit by introducing the theme of integrating innovation and sustainability and how together they tie into the business bottom line. Ms. Robb noted that that there has been a notable progression within corporate America in thinking about sustainability and pointed out that sustainability issues are now considered urgent enough to be discussed in boardroom suites around the corporate world. Dr. Goodman posed two questions that formed the backdrop of the summit: “Is innovation a useful lens through which to view sustainability?” and “How can the principles of sustainability be used to innovate?” She noted that innovation is what keeps business alive and thriving and that although sustainability is the balance of economic and social goals, it is an increasingly important engine of change. Ms. Robb posed the question of how sustainability is linked to corporate responsibility and noted that the basic question facing all organizations is how to marry the financial aspects and costs of engaging in sustainable activities with its many benefits; in other words, how to do well while still doing good.

Dr. Goodman then introduced the topic of the plenary panel, “Sustainability and Innovation Leadership,” and the panel facilitator, Sheila Wellington. Ms. Wellington, a Clinical Professor of Management at NYU Stern School of Business and the former president of Catalyst, then introduced the panel members:

Carol Hymowitz, Senior Editor, Wall Street Journal

Alice LeBlanc, Director, Office of Environment and Climate Change, American International Group (AIG)

Miranda Magagnini,Co-CEO, IceStone LLC

The panel began its discussion by examining why women in particular should care about the issues of sustainability and innovation. The panelists agreed that sustainability is not just a “women’s issue,” but rather a human issue, and that it is in everybody’s best interest to be involved and engaged in sustainability issues and activities. Most of the remainder of the discussion focused on specific efforts businesses are making towards implementing business practices that are both sustainable and profitable. Ms. Magagnini, who co-owns IceStone LLC, a company that creates countertops from recycled glass, discussed how sustainability drives her business and outlined the many efforts she and her employees make to integrate sustainability into the company culture. Through behaviors such as riding bicycles to work, recycling all waste products, hiring from the community, and embracing the diversity of the IceStone workforce, Ms. Magagnini said she and her business partner believe that their company is “changing the world one countertop at a time.” Ms. Hymowitz provided other examples of businesses embracing sustainability practices, pointing out that Prada showed high-end clothing made of recycled materials at the recent New York fashion shows and that General Electric has made the environment central to its marketing campaign, increasing awareness among the public that attention is needed in this area. Ms. LeBlanc described some of the products AIG is developing in both its commercial and personal lines of business and said the company has plans to invest in projects designed to decrease it greenhouse gas emissions.

A question and answer session followed the panel discussion. Several key points were made during this session, including the following:

  • Customer demand is driving many of the cultural, technological, and process changes organizations are making.
  • Sustainability refers not only to environmental issues but also social practices. All the panelists pointed out ways in which the commitment shown by specific organizations to social sustainability practices is helping these organizations recruit and retain talented employees. Whether employee loyalty is gained through the organization’s commitment to “doing right” or through benefits that are increasingly targeted to specific employee needs, panelists agreed that it is easier to attract and retain employees when the organization shows commitment to sustainable practices.
  • Regulations will be increasingly important in shaping organizations’ efforts to address climate change. Ms. LeBlanc pointed out that regulations are much stricter in Europe than in countries such as the United States and China, and she expressed the hope that the United States will develop the regulations necessary to define and achieve substantive climate change goals.
  • Investors have several tools at their disposal to encourage sustainable behavior among public corporations. An important one is the annual meeting, at which investors can ask about issues such as the company’s sustainability efforts. Another is to pinpoint a board member who is sympathetic to these issues and send letters identifying issues and demanding accountability. Still another is to actually serve on the boards of these organizations, rather than just communicate with them, and effect change from the inside rather than from the outside.
  • Legislation alone will not improve the situation; individuals must also take responsibility. Standing up and demanding accountability will increase the pressure on organizations to change.

After the panel session, the format switched to café dialogues facilitated by Dianne Culhane, Group Director, Internal Communications, The Coca-Cola Company andRenee Moorefield, CEO, Wisdom Works. The conference attendees sat at tables in groups of four and discussed a pre-selected question. The questions that were posed were:

  • What structures, practices, and systems in your organization encourage both innovation and sustainability? Does one help or hinder the other?
  • What conditions in your organization have helped you to be a change agent for sustainability and/or for innovation?
  • My organization is or strives to be a leader in sustainability and innovation. How did it happen? How do we now keep the momentum going for both?
  • What challenges emerge as you implement sustainability practices within your organization? What new challenges might limit your ability to continue to integrate sustainability practices within your organization? What might encourage you to be a change agent in this direction?
  • What might we expect as outcomes–intended or unintended–of innovations in service of sustainability? Are there specific examples that come to mind?
  • In your experience, does the introduction of innovative practices for sustainability lead to business performance that extends beyond compliance? If so, discuss the practices and benefits.

Several key points were made throughout these discussions, many of which were woven into the answers to more than one of the questions.

  • Packaging is a big issue. While many companies are exploring options in environmentally friendly packaging, the challenge is the high cost of this packaging, which leads to higher costs for the consumer. Wal-Mart was mentioned several times as a major influence on companies’ packaging decisions; the retailer is increasing pressure on manufacturers to develop sustainable packaging, using its immense leverage to drive innovation by its suppliers.
  • Regulations drive innovation because they force companies to explore new ways of doing business. Sarbanes-Oxley was repeatedly mentioned as a specific set of regulations that caused entire organizations to reexamine their operations and ultimately increase the efficiency of their processes.
  • Compliance becomes a competitive advantage as companies fight to attract and retain employees who prefer to work for companies that engage in sustainable business practices. It also becomes a selling point that attracts an increasing number of consumers who prefer to purchase products solely from companies that are committed to sustainability. The effect of this is a shift from engineering-driven compliance efforts to efforts driven by social goals.
  • A major issue for companies is determining how they prioritize their efforts and deciding where they should spend their “green” money.

Companies are increasingly marketing themselves in terms of their green efforts and promoting their green value. Some of their messages are so-called green-wash, however, with everybody trying to market their products as environmentally friendly. The challenge then is for the marketplace to determine what is real and what isn’t.

  • Customer needs and demands are driving companies to develop more sustainable products and practices, which is leading to customer-driven innovation. Many companies are using surveys, internal brainstorming sessions, and external focus groups to learn and bring back ideas; companies are also increasingly benchmarking their sustainability efforts against those of other companies. This shows an increased desire on the part of companies to gain useful information and pass it down through their respective organizations.
  • Market conditions often drive sustainable behavior. These conditions include changing regulations, market demand, customer and investor demands, and internal pressure from senior management.
  • The impetus for change comes from many places, including customers, upper management, and competitors, and there are many paths to innovation. One of the primary ways to keep the momentum toward innovation going is by ensuring continued and sustained dialogue both within an organization and between stakeholders and management.
  • Individual and personal responsibility is important in trying to change corporate culture. If you find that you can’t support your management and its efforts, you need to create change yourself, though time and resource constraints would likely be constant frustrations.
  • The bottom line is a major motivator for innovation. Getting management buy-in for any sustainability effort requires the presentation of a strong business case, though it is often hard to quantify the results of environmental and, especially, social programs.
  • The biggest challenges to organizational efforts include budgets, alignment of goals, lack of time, and criteria that are not clearly defined.
  • There is often tension between the marketing efforts of a company and its efforts at sustainable packaging. Marketing requires packaging to be a competitive differentiator, though such packaging may not be sustainable. An overarching corporate agreement on direction is necessary to help establish cultural expectations and avoid tension that can be counterproductive.

Keynote Speaker

At the conclusion of the caf é dialogues, the keynote speaker, Cecily Joseph, Director of Corporate Responsibility at Symantec Corporation, shared her thoughts about innovation and sustainability.

After thanking Dr. Goodman and Ms. Robb for inviting her to speak and stressing the importance of the topic, Ms. Joseph began by saying that she initially questioned the idea that she should speak about sustainability. She noted that many companies represented at the summit have been tracking and reporting their efforts for many years, while the software industry was new to it all. However, she pointed out, innovation is vital to the software industry as products are replaced every two years or so, and at Symantec, it’s a core value. Using Symantec’s definition of innovation as “leading rather than following,” doing things differently, and driving change and new processes, Ms. Joseph drew a parallel between innovation and sustainability, saying that, like innovation, sustainability offers leadership opportunities and drives change. She concluded then that innovation and sustainability are really not that different from each other and that she could contribute valuable perspective.

Ms. Joseph offered a brief summary of her career, which began as a corporate lawyer. She had a subsequent opportunity to run a corporate foundation and then was asked to start a corporate responsibility program for Symantec, which is her current job function.

Key points of Ms. Joseph’s address included:

  • The software industry needs to better understand and execute its responsibility to sustainability. Historically, the industry has been interested solely in earning profits and has not felt any pressure from either external or internal sources to address societal or environmental concerns. However, an increasingly diverse workforce that is committed to sustainable practices, a new set of expectations that companies will act ethically and responsibly, and the increasing challenges of climate change are forcing software companies to change their priorities and begin to focus on their corporate responsibilities.
  • As an industry that moves quickly and often stays ahe ad of the regulators, the software industry will have to regulate itself in the area of sustainability. Ms. Joseph cautioned software companies that, contrary to their long-held belief, sustainability does apply to them, and she challenged the industry to define corporate responsibility for itself before somebody else defines it for the industry.
  • The software industry has many contributions to make to sustainability. These include providing a broad means of communication through technology such as social networking and user-generated content, a diverse staff of highly trained technology professionals around the world, and “green” information technology solutions.

The industry faces challenges as well. These include getting management to focus on the issues, the lack of competitive motivation within the software industry, and getting people to align their efforts in a single direction. Some of these challenges, while difficult to overcome, become a little easier to meet when pressure comes from stakeholders who constantly ask management about the firm’s efforts in the area of sustainability.

Ms. Joseph went on to describe the three year evolution of Symantec’s corporate responsibility program, beginning with the initial phase, in which the company informed stakeholders that it was focusing seriously on sustainability. During this phase, Ms. Joseph convinced management of the value of sustainability to the profitability of the company and Symantec became a signatory to the Global Compact. Since then, Symantec has successfully launched several corporate responsibility initiatives, strengthening the company’s commitment to its sustainability goals.

The second phase was gathering, controlling, and managing information. Through the use of an industry software tool and by engaging with socially responsible stakeholders and investors, Symantec identified steps it could take to address corporate responsibility issues. The company formed a cross-functional Environmental Stewardship Council with the goal of defining an environmental platform that could be supported by all employees as well as the industry. The third phase is the reporting phase, during which the company se cured executive approval for developing a corporate responsibility report, which is being developed and scheduled for publication in the summer of 2008.

Ms. Joseph went on to describe the three areas of sustainability on which Symantec is concentrating its efforts: workforce sustainability, eco sustainability, and cyber sustainability. The challenge of workforce sustainability is how to build an inclusive and diverse workforce and leverage the knowledge and experience that comes from all the diversity. Increasing the number of women engineers at Symantec is a major corporate goal and Ms. Joseph described several programs the company has instituted designed to encourage women to come to–and stay with–Symantec.

The challenge of eco sustainability has been that management felt that environment issues didn’t apply to the software industry. However, Ms. Joseph noted that by examining manufacturing processes, software packaging, paper usage, and transportation procedures, Symantec has identified several opportunities to develop innovative corporate practices that will improve the company’s performance in this area.

Ms. Joseph defined cyber sustainability as the ability to keep people secure as they transact business online. She outlined many programs Symantec is spearheading in areas such as maintaining transactional safety and keeping children safe online.

Ms. Joseph summarized her thoughts by reiterating that software companies are new to sustainability and have much to learn, but also much to offer. Almost by definition, these companies are innovative; they must now apply their innovation efforts to sustainability issues and, in return, let sustainability drive their innovation.

A question and answer session followed Ms. Joseph’s address and Dr. Goodman then closed the summit by thanking all the summit sponsors and participants.

Notes compiled by Framework CR – Photos by Liza Pullman

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China’s Financial Challenge and Opportunity for Environment, Society and Governance (ESG)

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February 2007 Volume V, number 1

Net Contents

I. Network Presentation
Key Learnings
Perspectives

II. What’s New

III. The Women’s Network for a Sustainable Future
The Concept of the Network
Contact Information
Sponsorship Opportunities

I. Network Presentation

A big thank you to those who took the time to attend WNSF’s luncheon panel on February 7, 2007 entitled “China’s Financial Challenge and Opportunity for Environment, Society and Governance (ESG)” hosted by AIG at the Down Town Association in New York City. The session featured speakers from AIG, Renmin University’™s Center for Venture Capital and the Woodrow Wilson Center’™s China Environment Forum, who shared ‘˜ESG’™ challenges for China and its business partners.

Key Findings

  • Climate Change and Pollution are rising at an alarming rate and greatly affect business worldwide.
  • Environment, Society and Governance (ESG) issues need to be addressed by government and business in the US and China.
  • Microfinance techniques may help lift the poor in China out of poverty.
  • Sustainable investments are compatible with business growth.

Perspectives

  • Moderator: Ann Goodman, Executive Director, WNSF.
  • Welcome:
    • Alice LeBlanc, Director, Office of Environment and Climate Change, AIG Corporate Affairs
    • Marlys Appleton, Vice President, Sustainability Initiatives, AIG Global Investment Group, New York
  • Speakers:
    • Jennifer Turner, Director of the China Environment Forum at the Woodrow Wilson Center
    • Leonard J. Battifarano, Senior Vice President of American International Underwriters, part of American International Group (AIG)
    • Mannie Manhong Liu, Director, Renmin University Venture Capital and Private Equity Research Center

Alice LeBlanc, AIG
Alice LeBlanc opened the program by introducing AIG’S environmental and climate change policy, which recognizes that climate change is real and likely caused primarily by human activities. AIG’s climate change strategy focuses on pursuing new business activities to help meet customer demand to reduce greenhouse gas emissions. AIG is in the process of incorporating climate change awareness into many business initiatives, such as investments including new private equity for GHG mitigation technologies, carbon finance, and sustainable agriculture and forestry. The company is also providing loans for energy efficiency. AIG’S insurance business is providing insurance for renewable energy and other low carbon technologies, such as bio fuel and wind energy, and developing new products to support the carbon market, such as insurance to guarantee delivery of project-based carbon credits. AIG is involved in research projects regarding incorporation of climate risk into catastrophe models, and developing models for community resilience to catastrophic climate events. China’s green house gas emissions are projected to over take those of the US, currently the highest emitter, by 2009. AIG has a strong presence in China and hopes to work with Chinese enterprises to meet their insurance and investment needs related to climate change.

Marlys Appleton, AIGGIG
Marlys Appleton presented AIG’™s Global Investments Group’™s (AIGGIG) new sustainability policy, which aims to incorporate ES&G principles across all investment lines, including equities, fixed income, alternatives and real estate. Given emerging values in the marketplace, AIGGIG views this type of due diligence as a requirement and sees such sustainable finance principles as an engine of innovation driving new products. Ms. Appleton chairs the Sustainable Investments Steering Committee and Task Force. The Global Investment Group has worked for several months to achieve buy-in across the asset classes to prepare for implementation. AIGGIG is mobilizing people, process and technology to support its approach to sustainable finance. A structure and process is in place to adhere to a defined set of industry-accepted best practices incorporating ESG criteria into investment. The goal is to implement the criteria in 2008. AIG also is reviewing its own green house gas emissions and recently received recognition from Innovest as one of the ‘œTop 100 Most Sustainable Companies.’

Jennifer Turner, China Environment Forum
The Woodrow Wilson Center is trying to aid China in driving more sustainable growth. The Jilin PetroChina explosion in Northwestern China in November 2005 demonstrates a failure of the country’™s environmental governance system to check economic growth. The central government has created an extensive range of environmental laws, but enforcement at the local level is poor. Decentralization of economic power created fast growth in GDP (10% annually for the past 25 years), but the central government lacks power to force local government compliance to pollution control laws. Air pollution problems in China stem in great part from China’™s dependence on coal, which is plentiful, but dirty. Some speculate that up to 25% of particulates over Los Angeles now comes from China, while China itself suffers from up to 500,000 premature deaths from respiratory illnesses a year attributed to pollution. Fortunately, there is hope: new laws include incentives to encourage renewable energy and energy efficiency. In fact, 90 percent of US SUVs would not pass a new Chinese fuel-efficiency law.

Water remains China’™s biggest environmental problem; desertification in the north from over-extraction is creating a growing population of so-called eco-refugees. Water pollution is a major concern; half of China’™s rivers are grade IV and V, which means water cannot be used for industrial or agricultural protection, much less drinking. Social stability is a big driver of the central government’™s concern about the environment, as more and more people begin to protest polluting companies. Poor environmental standards are responsible for an estimated loss of 10% to 12% of GDP annually. Via its slogan of ‘˜Harmonious Society’™ the government is pushing more progressive policies. Public participation is also pushing environmental issues to the forefront of Chinese civil society. The government is prioritizing investments that are environmentally friendly, with a focus on green GDP. International businesses often contribute to these efforts by helping to bring in cleaner processes and technologies.

Leonard J. Battifarano, American International Underwriters
AIG has launched a worldwide strategy on a long-term basis to introduce micro insurance in the interior provinces of China. Microfinance has created worldwide opportunities for the poor to lift themselves out of poverty. AIG is mindful that a significant increase in rural business development as a result of these loans could have an adverse effect on the environment, and so will be monitoring this over the next five years. Historically the poorest people have the best repayment record, with default rates less than 2%. Notably, 85% of micro loans have gone to women, who have a better record of using loans to build businesses and help their families. These loans create a trickle-up effect, offering grantees improved access to education, healthcare, and jobs. The second and third generations of grantees also bring to their communities a higher level of education, creating a continuous cycle of increasing contribution. There is not yet enough synergy between microfinance and environmental issues, but over time potential impact and remediation will become more apparent. ACCION, one of the world’™s largest microfinance NGOs, launched a project in Inner Mongolia with the goal of providing loans to 60,000 people over next 5 years. This can be a model for the way microfinance expands throughout China, particularly if the government decides to support additional pilot programs in the future.

Manhong (Mannie) Liu, Renmin University, Venture Capital Research Center
China is responsible for a third of greenhouse gas emissions. China is known for its manufacturing sector but needs a strong financing sector, as well. China’™s Security and Regulation Committee (CSRC) controls the stock market, China Insurance Regulatory Commission (CIRC) controls insurance, and China’™s Banking Regulation Committee (CBRC) controls banking, but the committees don’™t cooperate with each other very well. One of the biggest problems in the financial sector is the banking industry because it is government controlled, state owned, inefficient and rife with corruption. The Chinese banking industry has improved; some of the biggest banks have gone public, which means more transparency and less corruption.

Historically, China has had one question on its mind ‘” how to feed its people. In experiencing a cultural change—a planned market economy—the government has turned on ‘˜green light’™ so that people for the first time can pursue personal well being. An unintended consequence is a shrinking of traditional Chinese values, such as doing good works. Some are seizing opportunities to advance their own well being at the expense of others.
Another challenge is that constant change in policy has bred continual uncertainty—and ‘˜me-first’™ behavior—in commerce as in other aspects of life, in contrast to traditional Confucian culture, which teaches that the two most important aspects of human nature are: ren , or mercy to the poor, and li, politeness and thinking of others. And, while traditional Chinese culture teaches that nature and people are one, the two are in greater conflict all the time, as tension mounts between economic growth and environmental health.

II. What’s New

  • WNSF’™s Board member Karen Flanders is PINK Magazine’s first-ever winner of the Corporate Conscience award of “America’s Top Women in Business: Game Changers.” Read about her contributions: http://www.wnsf.org
  • The World Bank sponsored WNSF’™s roundtable “Sustainability and Gender: Private Sector Perspectives” on Tuesday, March 06 2007 in Washington, D.C. Please visit WNSF’s website for a summary of highlights soon. Roundtables are also being scheduled for New York City and other cities this spring. Look for email invitations and announcements on the WNSF website.

III. The Women’s Network for a Sustainable Future
The Concept of the Network

The Women’™s Network for a Sustainable Future (WNSF) provides a forum for businesswomen to congregate, reflect, and act on the convergent issues of corporate social responsibility and sustainable development. Through meetings, training and simple electronic support tools, WNSF facilitates the exchange of experiences and best practices, building a community of businesswomen who can serve as powerful change agents for corporate responsibility sustainability in the US and internationally.
The Women’s Network for a Sustainable Future is a 501c3 organization. Gifts are tax deductible.
For more information, please contact:
Ann Goodman, Executive Director
Women’s Network for a Sustainable Future
Please direct inquiries to: info@wnsf.org
Board of Directors:

CHAIR: Kathy Robb, Esq., Partner and Head of Environmental Practice, Hunton & Williams; Dianne Dillon Ridgley, Director, Interface Inc. Board; Karen Flanders, Director of Sustainability, Coca-Cola Co.; Joanne Fox-Przeworski, Director, Bard Center for Environmental Policy, Bard College; Ann Goodman, Executive Director, WNSF; Sarah Howell, Director, Corporate Communications, BP; Michele Kahane, Special Projects Director, Center for Corporate Citizenship, Boston College; Clair Krizov, Executive Director of Environmental and Social Responsibility, AT&T; Joyce La Valle, Senior Vice President, Interface Inc.; Anita Roper, Director of Sustainability, Alcoa Corp.; Deborah Sliter, Vice President of Programs, National Environmental Education & Training Foundation.

This issue of Net Notes was written Carrie Clyne and Rohini Vagarali . WNSF thanks founding sponsors AT&T and the Ford Foundation for their generous support.

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Healthy Business: Climate Change, Health and Your Company’s Future

November 2006 Volume IV Number 6

Net Contents
I. Network Presentation
Key Findings Perspectives

II. What’s New

III. The Women’s Network for a Sustainable Future
The Concept of the Network
Contact Information

I. Network Presentation
A big thank you to those who took the time to attend WNSF’s luncheon panel on November 15, 2006 entitled “Healthy Business: Climate Change, Health and Your Company’s Future,” hosted by JP Morgan Chase in New York City. The session featured speakers from JP Morgan Chase, Johnson & Johnson, and Center for Health and the Global Environment at Harvard Medical School discussing environmental change and it current and future effects on companies.

Key Findings

  • The atmosphere is heating up, which is having catastrophic effects on weather patterns.
  • This catastrophic weather is making business of various stripes riskier in many places in the world.
  • Companies may be wise to put some of their resources into sustainability.

Perspectives

Moderator:

  • Joanne Fox-Przeworski, Board of Directors, WNSF

Speakers:

  • Paul Epstein, Associate Director of the Center for Health and the Global Environment at Harvard Medical School
  • Amy Davidsen, Director of the Office of Environmental Affairs, JP Morgan Chase
  • Michael Bzdak, Director of Corporate Contributions, Johnson & Johnson

Paul Epstein, the Associate Director of the Center for Health and the Global Environment at Harvard Medical School, began the luncheon with a presentation about Earth’s current state. He explained that algal blooms formed off of the coast of Peru in 1991 have brought cases of cholera to three places in the country, reducing Peru’s revenues from shrimp harvests and from tourism. Dr. Epstein also discussed the Intergovernmental Panel on Climate Change (IPCC) findings on climate change since 2001. The IPCC has learned that:

  • The climate is changing
  • Human activities are contributing to the changes
  • Biological systems are responding to the warming
  • Weather is becoming more extreme

Extreme weather is making energy more expensive, spreading disease (including mold and Lyme disease), and making business ventures riskier.

Amy Davidsen, JP Morgan Chase’s Director of the Office of Environmental Affairs, explained the company’s environmental policy:

  • Policy: JP Morgan Chase was the first public bank to acknowledge the risk of global warming in 2005. The bank is also investing in energy-efficient projects with a predicted four-year payback
  • Partnerships: JP Morgan Chase recently became a partner with the Center for Health and the Global Environment at Harvard Medical School

Michael Bzdak, Johnson & Johnson’s Director of Corporate Contributions, grouped the company’s “Healthy People, Healthy Planet, Healthy Business” policy into 3 categories:

  • Healthy People: Putting Healthy People goals into effect regionally and establishing a global benchmark for workplace safety
  • Healthy Planet: J&J has stringent sustainability practices, such as cutting back on CO2 emissions, and has also invested in a World Wildlife Fund (WWF) Healthy Ecosystems and Healthy People program
  • Healthy Business: Bringing in new efficiencies, such as streamlined global EHS standards, policies and reporting, and online training

II. What’s New

  • WNSF recently made presentations at the annual Net Impact conference in Chicago and at the international conference on sustainable development hosted in Beijing by the Chinese Association of Women Entrepreneurs.
  • Look for announcements of upcoming WNSF roundtables in New York and Washington, D.C. on the WNSF website and via email.

III. The Women’s Network for a Sustainable Future
The Concept of the Network

The Women’s Network for a Sustainable Future (WNSF) provides a forum for businesswomen to congregate, reflect, and act on the convergent issues of corporate social responsibility and sustainable development. Through meetings, training and simple electronic support tools, WNSF facilitates the exchange of experiences and best practices, building a community of businesswomen who can serve as powerful change agents for corporate responsibility sustainability in the US and internationally.

The Women’s Network for a Sustainable Future is a 501c3 organization. Gifts are tax deductible.

For more information, please contact:

Ann Goodman, Executive Director
Women’s Network for a Sustainable Future
Please direct inquiries to: info@wnsf.org

Board of Directors:
CHAIR: Kathy Robb, Esq., Partner and Head of Environmental Practice, Hunton & Williams; Dianne Dillon Ridgley, Director, Interface Inc. Board; Karen Flanders, Director of Sustainability, Coca-Cola Co.; Joanne Fox-Przeworski, Director, Bard Center for Environmental Policy, Bard College; Ann Goodman, Executive Director, WNSF; Sarah Howell, Director, Corporate Communications, BP; Michele Kahane, Special Projects Director, Center for Corporate Citizenship, Boston College; Clair Krizov, Executive Director of Environmental and Social Responsibility, AT&T; Joyce La Valle, Senior Vice President, Interface Inc.; Anita Roper, Director of Sustainability, Alcoa Corp.; Deborah Sliter, Vice President of Programs, National Environmental Education & Training Foundation.

This issue of Net Notes was written by Brittany Perkins and edited by Ann Goodman. WNSF thanks founding sponsors AT&T and the Ford Foundation for their generous support.

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Food for Thought: Is There a Business Case for Sustainable Nutrition?

July 2006 Volume IV Number 4

Net Contents
I. Network Presentation
Key Learnings
Perspectives

II. What’s New

III. The Women’s Network for a Sustainable Future
The Concept of the Network
Contact Information
Sponsorship Opportunities

I. Network Presentation
A big thank you to those who took the time to attend WNSF’s luncheon panel on June 20, 2006 entitled “Food for Thought: Is there a Business Case for Sustainable Nutrition?” hosted by Gerber at the Novartis Headquarters in New York City. The session featured speakers from Gerber and Kraft, who shared their companies’ practices and the challenges they face.

Key Findings

  • Obesity is rising at an alarming rate both in the United States and internationally; it is a driving force in the food industry.
  • Both Gerber and Kraft have launched new programs in response to obesity and related health issues.
  • Food companies are also attuned to the growing demand from consumers for products that promote a healthier lifestyle.
  • Some corporate initiatives were launched in response to business risk but proved to benefit the business though increased sales and improved brand reputation.
  • Sustainable nutrition programs are compatible with business growth.

Perspectives

Moderator

  • Ann Goodman, Executive Director, WNSF.

Welcome

  • Jim Thomas, Global Head of Health, Safety & Environment and Business Continuity, Gerber Products Company

Speakers:

  • Kathleen Reidy, Dr.P.H., R.D, Global Director of Nutrition and Regulatory Affairs, Gerber Products Company
  • Katy Raneri, Director of Global Nutrition Strategy and Research, Kraft

Kathleen Reidy, Gerber
Ms. Reidy set the stage with alarming statistics on the rise of obesity both domestically and internationally. Ms. Reidy pointed to the distressing rise in childhood obesity and showed increasing global media coverage of the problem. Explaining that obesity is, and will continue to be, a driving force in the food industry, Dr. Reidy detailed Gerber’s response to this global crisis, focusing on the company’s “Start Healthy, Stay Healthy” program, which she described as “a science-based Gerber initiative to deliver appropriate products and consumer education to help parents establish healthy eating habits with their children, and promote a lifetime of good health”.

Gerber’s unique position in the market gives it an opportunity to focus on obesity prevention ‘at the source.’ Launched in 2001, the program was a response to growing social concern about obesity and related illnesses, such as diabetes. The program’s mission is to offer science-based research, education and product innovation to help prevent infant obesity. Dr. Reidy shared some of Gerber’s current research and educational initiatives for both parents and corporate professionals and showed how these efforts have driven product design.

The program began with Gerber’s landmark “Feeding Infants and Toddlers Study,” which revealed shocking findings on early eating habits and nutrition, such as the fact that the number one food eaten by toddlers is French fries.. Gerber believed the results were so important that it shared them widely with the rest of the industry, publishing over 20 scientific papers, informing pediatricians and partnering with the American Dietary Association to establish guidelines. Gerber also took on a grassroots campaign, working with formerly obese Arkansas Governor Mike Huckabee to raise awareness of the issue by bringing in nutritional counselors and educational materials at Walmart stores.

Speaking to the business case for sustainable nutrition, Dr. Reidy said: “We took what we do well, what we really know, and we focused on it. We made it large through ‘Start Healthy, Stay Healthy’“. She identified five key business reasons for the program: (1) it’s a viable, long- term solution, (2) its foundation in science is key, (3) it supports the Gerber mission of helping parents raise happy, healthy babies, (4) it reinforces Gerber’s leadership in infant and toddler nutrition, (5) it fills the information gap for parents and health professionals.

Dr. Reidy also said the program increased both the company’s reputation and its brand recognition. Gerber’s brand strength doubled from 2001 when the science initiative began to reach $153 million in 2004. As a result, Gerber was featured in Fortune magazine as a company that “took a good brand and made it much, much better,” calling the “Start Healthy, Stay Healthy” program “a driver of success”.

Katy Raneri, Kraft
Ms. Raneri reiterated the growing problem of obesity and its crucial role in the food industry. Her presentation, “Health and Wellness: Working With Others to Achieve Constructive Solutions and Business Success,” focused on Kraft’s Sensible Solutions program and the company’s business case for addressing sustainable nutrition.

In 2003, Kraft launched a very extensive 11-point Health and Wellness Initiative, comprising four areas: Product Nutrition, Consumer Information, Marketing Practices, and, Advocacy and Dialogue. For each area, Kraft made specific global market policy commitments. In Product Nutrition, Kraft started two key programs: the Sensible Solutions program, now the company’s fastest growing product line, and a trans fat reduction program throughout its products. While Ms. Raneri assured the audience that the companies would continue to sell such ‘fun foods’ as Oreos, she explained that Kraft is gradually shifting toward healthier alternatives through extensive research and new programs.

As part of the Sensible Solutions program, Kraft has provided more nutritious choices, labeled with a green “Sensible Solutions” flag. These products have been a big success for Kraft, accounting for 30 percent of U.S. retail food revenues. What’s more, Ms. Raneri said, 43 percent of new products launched in the U.S. in 2005 “provided a specific health and wellness benefit”. Kraft’s marketing practices were altered to fit the new nutrition programs. For instance, Kraft’s current marketing strategy for TV/Radio/Print, primarily reaching children ages six to 11, shifts its product mix to Sensible Solution nourishing products.

Finally, Kraft has focused on community-based programs as a means to encourage healthier lifestyles, such as the “Salsa, Sabor, y Salud” program launched in 2003 in partnership with the National Latino Children’s Institute. Said Ms. Ranieri ” It is a first-of-its-kind, culturally grounded educational program that has reached approximately 10,000 adults and children in six states,” to which Kraft has committed over $ 4.4 million.”

An important issue discussed by Ms. Raneri was the business risk Kraft took with package nutrition labeling. The risk proved to be a business success: many consumers have responded positively to the additional and clearer nutrition labeling, in particular the dual column serving size nutrition facts. Some products, such as the new “100 calorie” packs, have also been enormously successful. Of the business case, Ms. Raneri said that overcoming the “taste hurdle” was key to selling more “sensible” products. Kraft has also seen sales increase from healthy recipes that include Sensible Solution substitutes for traditional ingredients.

Ms. Raneri concluded her presentation by reiterating that “obesity is a pressing public health issue” and asserting that “all stakeholders must do their part to effect meaningful change”. She said Kraft is proactively working to be part of the solution, “through better-for-you products, responsible policies, meaningful consumer communication and effective self regulation.”.

II. What’s New

  • WNSF is proud to bring to your attention an important feature story published in the June/July 2006 issue of Pink magazine, one of the nation’s leading publications aimed at executive women. “People, Planet, Profits,’ underscores the growing role women are playing in catapulting corporate social responsibility and sustainability to the fore in mainstream business-. The article widely references the WNSF and five of its Board members, including Dianne Dillon Ridgley, Karen Flanders, Ann Goodman, Joyce LaValle and Anita Roper. Highlights of the story can be accessed at Pink’s website, http://www.pinkmagazine.com.
  • WNSF will hold its first Atlanta roundtable on September 14. Please visit WNSF’s website for details.
  • Roundtables are also being scheduled for NYC and other cities starting this fall. Look for email invitations and announcements on the WNSF website.

III. The Women’s Network for a Sustainable Future
The Concept of the Network

The Women’s Network for a Sustainable Future (WNSF) provides a forum for businesswomen to congregate, reflect, and act on the convergent issues of corporate social responsibility and sustainable development. Through meetings, training and simple electronic support tools, WNSF facilitates the exchange of experiences and best practices, building a community of businesswomen who can serve as powerful change agents for corporate responsibility sustainability in the US and internationally.

The Women’s Network for a Sustainable Future is a 501c3 organization. Gifts are tax deductible.

For more information, please contact:

Ann Goodman, Executive Director
Women’s Network for a Sustainable Future
Please direct inquiries to: info@wnsf.org

Board of Directors:

CHAIR: Kathy Robb, Esq., Partner and Head of Environmental Practice, Hunton & Williams; Dianne Dillon Ridgley, Director, Interface Inc. Board; Karen Flanders, Director of Sustainability, Coca-Cola Co.; Joanne Fox-Przeworski, Director, Bard Center for Environmental Policy, Bard College; Ann Goodman, Executive Director, WNSF; Sarah Howell, Director, Corporate Communications, BP; Michele Kahane, Special Projects Director, Center for Corporate Citizenship, Boston College; Clair Krizov, Executive Director of Environmental and Social Responsibility, AT&T; Joyce La Valle, Senior Vice President, Interface Inc.; Anita Roper, Director of Sustainability, Alcoa Corp.; Deborah Sliter, Vice President of Programs, National Environmental Education & Training Foundation.

This issue of Net Notes was written by Brittany Perkins and edited by Ann Goodman. WNSF thanks founding sponsors AT&T and the Ford Foundation for their generous support.

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Missing Links: Next Generation Sustainable Supply Chains

June 2006 Volume IV Number 3

Net Contents
I. Network Presentation
Key Learnings
Perspectives

II. What’s New

III. The Women’s Network for a Sustainable Future
The Concept of the Network
Contact Information
Sponsorship Opportunities

I. Network Presentation
A big thank you to those who took the time to attend WNSF’s luncheon panel on May 16, 2006 entitled: “Missing Links: Next Generation Sustainable Supply Chains” hosted by Pfizer, Inc in New York City. The session featured speakers from Pfizer, PricewaterhouseCoopers LLP (PwC), and Time Inc. The panel discussed new pressures to proactively manage the impact of corporate product or process throughout the supply chain in innovative ways.

Key Findings

  • Corporations have been working to address risks associated with their business practices from suppliers (direct or indirect) to consumers, for decades.
  • In recent years supply chain management has moved beyond simple environment, health and safety compliance.
  • Companies are now under growing pressure to engage suppliers (both direct and indirect) in a more comprehensive way (e.g., Pfizer is working with its indirect suppliers of paper, furniture, and other items to procure “greener” products).
  • An increasingly popular tactic is partnerships with others facing similar risks to create “first mover” advantage (e.g., Time Inc is working with communities to expand certified forests).

Perspectives
Moderator: Ann Goodman, Executive Director, WNSF.

Speakers:

  • Elizabeth C. Girardi Schoen, Senior Director EHS Strategic Partnerships & Planning, Pfizer
  • Megan DeYoung, Senior Associate, Sustainable Business Solutions, PricewaterhouseCoopers LLP
  • David Refkin, Director of Sustainable Development for Time Inc.

Ann Goodman introduced the panel by reminding the audience of increasing pressures on companies to account for not only their own processes but also for activities of others with whom they do business, pointing out that panel speakers represent companies in many ways at the forefront of this challenge.

Elizabeth C. Girardi Schoen, Pfizer
Ms. Girardi Schoen said Pfizer, a $51 billion company dealing predominantly with human health care, has been managing EH&S issues for decades. While initially the focus was mainly the company’s own internal operations, Pfizer has been more recently looking to better manage risk throughout its supply chain.

As a member of the UN Global Compact, Pfizer is obliged to “embrace, support and enact, within its sphere of influence, a set of core values in the areas of human rights, labor standards, the environment and anti-corruption,” Ms. Girardi Schoen said. In addition, the company has adopted the Institute for Supply Management’s (ISM) principles on social responsibility. From these commitments stems Pfizer’s EH&S Supplier Model which first assesses the imminent risks associated with the company’s own operations and then focuses on compliance, risk and quality of direct suppliers. Pfizer has also been working on others supplies to seek greener alternatives that also save money such as paper and furniture suppliers.

Ms. Girardi Schoen then outlined the steps taken by Pfizer to manage its supply chain. First, EHS colleagues partner with sourcing colleagues who work with key suppliers. A review of some key suppliers’ ability to comply with EHS requirements is carried out. The company may identify ‘greener’ alternatives for some goods and or services or investigate supplier factories to learn how “lean & green” operations are. Based on these assessments, recommendations are provided to the supplier to improve operational and cost efficiency. Lastly, EHS capacity has been developed in low-cost producer countries.

In 1991, Pfizer created three guidelines dealing with: Management of Contract Manufacturing & Research Standard, Waste Management, and Environmentally Responsible Packaging. In 2002, it carried out an office supply analysis, a building renovation analysis and a building services analysis with a pilot test of office suppliers and services being performed in 2003. In 2004, Pfizer joined US EPA’s Green Supplier Network and initiated several projects, including an analysis of business travel, and a green building analysis and tool design. Among other things, during 2005 and 2006, Pfizer’s EHS Procurement Activities include the following:

  • Formalized EHS support structure and standardized roles and responsibilities
  • Recycled paper implementation in the US
  • Capacity building – China focus
  • Global Citizenship Principles
  • Food services contract
  • Green building standard
  • Individual folding cartons, bottles and cartons
  • Waste bid project and recycle work
  • Personal protective equipment
  • Supplier screening questionnaires, supplier information, and minimum criteria.

Megan DeYoung, PWC
As businesses seek to improve their cost competitiveness and expand globally, their supply chains are becoming more vulnerable to disruptions, adding another element to risk for companies, Ms. DeYoung said. Since “risks affect a company’s entire supply chain,” from suppliers to customers, in order to adequately manage these risk companies must improve “capabilities in their supply chain,” she said.

Ms. DeYoung described the two types of risk businesses usually face. The first is macro or environmentally driven risk which encompasses:

  • Natural and pathological disasters (earthquake, SARS, etc),
  • Infrastructure (power outage, computer virus attack),
  • Government action/regulation (new/changing regulations),
  • Political/social issues (political unrest),
  • Terrorism/war (Sept 11 attacks),
  • Economic disruptions (commodity prices, interest rates, etc). The second business risk is supplier- or supply chain-specific and involves:
  • Operational failure (accident, quality issues),
  • Demand volatility (technology change, etc),
  • Lack of visibility and control procedures (demand),
  • Financial stability (bankruptcy),
  • Security/intellectual property protection (security breach, counterfeit products),
  • Legal and regulatory compliance (non-adherence to contract requirements),
  • Labor issues (union strike, child labor),
  • Environmental issues (groundwater contamination, etc).

To demonstrate PWC’s Supply Chain Risk Management approach (picture below), Ms. DeYoung presented a case study that applied the PWC Supply Chain Risk Management Diagnostic to a major retailer. The objective of this project was to evaluate the company’s supply chain risks, or “events that could prevent the company from achieving its supply chain and overall business objectives.” A risk self-assessment was also administered to identify strengths and improvement opportunities. Recommendations were then developed.

The first part of PWC’s diagnostic evaluation involved interviews conducted with supply chain managers to explore the following areas:

  • Dismantling supply chain capabilities
  • Establishing supply chain capabilities
  • Procuring goods and services
  • Developing the supply chain strategy
  • Terminating supply chain relationships

PWC diagnostic covers the following areas of the value chain:

  1. Supply Chain Strategy
  2. Procure Goods and Services
  3. Establish Supply Chain Capabilities
  4. Operations
  5. Logistics
  6. Quality Management
  7. Social and Environmental
  8. Customs
  9. Tax
  10. Information Technology
  11. Terminate Relationships
  12. Dismantle Capabilities

For each module, interviewees answered 6 to 60 questions that had six potential answers:

  • No (risk rating = 5)
  • Almost No (risk rating = 4)
  • Neither Yes or No (risk rating = 3)
  • Almost Yes (risk rating = 2)
  • Yes (risk rating = 1)
  • N/A – Not Applicable (question removed from the total tally)

With this approach PWC was able to calculate the a total module score, indicating the level of risk faced by the retail company in each supply chain area

David Refkin, Time Inc.
Time Inc, the world’s largest magazine publisher with over 150 titles, said Mr. Refkin, is a part of Time Warner, the world’s largest entertainment company with $44 billion in revenues. Publishing magazines such as Time, Life, Fortune, People, and Sports Illustrated, Time Inc alone brings in almost $6 billion in annual revenue.

The issues faced by a magazine company, said Mr. Refkin, range from:

  • Forestry which encompasses certification, endangered forests, and supply issues
  • Manufacturing which includes pulping and bleaching
  • Magazine production ranging from issues of “basis weight”, printing, and distribution
  • Recycling which depends upon recovery and recycled content
  • Energy use focusing on minimizing usage and reducing GHG emissions.

Paper purchasing is the magazine company’s main concern, Mr. Refkin pointed out. The company purchases over 600,000 tons of paper annually from 53 mills, 26 located in US, 13 in Finland. The main wood baskets affecting Time Inc. are located in the US (Maine, Wisconsin, Minnesota), Canada (Quebec, British Columbia), and Europe (Finland, Scotland, and Russia).

Time Inc’s approach to sustainable development includes: reporting the company’s activities in an annual report, working with communities to secure certified forest wood, and incorporating transparency into forest management in Russia. Overall, said Mr. Refkin, sustainable development is seen as a business opportunity.

Time Inc.’s first sustainability report, published this year, highlights some of the company’s key results, including:

  1. Establishing a paper purchasing policy and helped form the Paper Working Group (an alliance of major paper purchasing companies)
  2. By the end of 2006 procuring 80% of paper from certified sustainable fiber.
  3. By 2005 reducing the weight of the paper that four weekly magazines (Time, People, Sports Illustrated, and Entertainment Weekly) are printed on by more than 8%, demanding less wood and reducing the company’s’ pressure on forests.
  4. Working with International Paper and the non-profit National Recycling Coalition to initiate a program to promote magazine recycling. Dubbed, ReMix–short for the slogan “Recycling magazines is excellent,” the program since its start in 2004, has resulted in an increase in recycling by 10.8% in Prince George’s County and 22.8% in Boston.
  5. Sponsoring a carbon footprint study measuring the amount of greenhouse gases (carbon dioxide, methane and nitrous oxide) released by every aspect of the lumber, paper and magazine industries – from the harvesting of wood to the “final fate” of the magazine (whether it is recycled, dumped in a landfill or incinerated). Since 1999, Time has not bought any paper bleached with chlorine gas.

Mr. Refkin also highlighted lessons the company has learned in its journey thus far, including:

  • Understand The Issues – Get a broad range of opinions
  • Find Paradigm Pioneers – Look for transferable learnings
  • Get On The Ground…And Out of The Office – Talk to those directly impacted
  • Transparency And Honesty matters- Even if it hurts
  • Reward LeadershipFind Responsible NGOs To Collaborate With – They’re out there
  • Set Stretch Targets – Progress doesn’t happen without them

II. What’s New

  • The next WNSF panel, “Missing Links: Next-Generation Sustainable Supply Chains,” to be hosted by Pfizer Inc., will be held from noon to 2pm at Pfizer, 235 E. 42 St., NYC. Featured will be speakers from Pfizer, Time Inc. and PriceWaterhouseCoopers. To register, go to: http://www.wnsf.org. Look for email invitations!
  • By popular demand following the success of the February roundtable, Deloitte and WNSF plan to collaborate on a series of sessions on metrics. Slated to being next fall, each session would focus on a key aspect of sustainability metrics (community, people, environment, economy). Look for emailed invitations and an announcement on the WNSF website!
  • Read WNSF’s thoughts on businesswomen and social issues in ‘Women on the Edge,’ in the December ‘05 issue of Jungle MBA magazine (jungleonline.com).

III. The Women’s Network for a Sustainable Future
The Concept of the Network

The Women’s Network for a Sustainable Future (WNSF) provides a forum for businesswomen to congregate, reflect, and act on the convergent issues of corporate social responsibility and sustainable development. Through meetings, training and simple electronic support tools, WNSF facilitates the exchange of experiences and best practices, building a community of businesswomen who can serve as powerful change agents for corporate responsibility sustainability in the US and internationally.

The Women’s Network for a Sustainable Future is a 501c3 organization. Gifts are tax deductible.

For more information, please contact:

Ann Goodman, Executive Director
Women’s Network for a Sustainable Future
Please direct inquiries to: info@wnsf.org

Board of Directors:

CHAIR: Kathy Robb, Esq., Partner and Head of Environmental Practice, Hunton & Williams; Dianne Dillon Ridgley, Director, Interface Inc. Board; Karen Flanders, Director of Sustainability, Coca-Cola Co.; Joanne Fox-Przeworski, Director, Bard Center for Environmental Policy, Bard College; Ann Goodman, Executive Director, WNSF; Sarah Howell, Director, Corporate Communications, BP; Michele Kahane, Special Projects Director, Center for Corporate Citizenship, Boston College; Clair Krizov, Executive Director of Environmental and Social Responsibility, AT&T; Joyce La Valle, Senior Vice President, Interface Inc.; Anita Roper, Director of Sustainability, Alcoa Corp.; Deborah Sliter, Vice President of Programs, National Environmental Education & Training Foundation.

This issue of Net Notes was written by Monika Kumar and edited by Ann Goodman. WNSF thanks founding sponsors AT&T and the Ford Foundation for their generous support.

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For Good Measure: Metrics for CSR

March 2006 Volume IV Number 2

Net Contents
I. Network Presentation
Key Learnings
Perspectives

II. What’s New

III. The Women’s Network for a Sustainable Future
The Concept of the Network
Contact Information
Sponsorship Opportunities

I. Network Presentation
A big thank you to those who took the time to attend WNSF’s luncheon panel on February 9, 2006 entitled “For Good Measure: Metrics for CSR,” hosted by Deloitte & Touche in New York City. The session featured speakers from Deloitte & Touche, Ford Motor Company, and Alcoa, who shared their company’s practices in measuring CSR and the challenges faced in this endeavor.

Key Findings

  • There are various sets of metrics available to companies, but it is up to each individual company to decide which metric is best suited for its processes.
  • It can be useful to integrate sustainability and financial reporting.
  • Continual communication with stakeholders is essential.
  • Qualitative measures may be more helpful than quantitative ones.

Perspectives
Moderator: Ann Goodman, Executive Director, WNSF.

Speakers:

  • Julie Hoesterey, Global Director of Corporate Social Responsibility, Deloitte Touche Tohmatsu
  • Joseph Delaney, Director of Northeast Alumni Relations, Deloitte Services LP
  • Anita Roper, Director of Sustainability, Alcoa
  • Krista Gullo, Sustainable Business Strategies Analyst, Ford Motor Company

Ann Goodman initiated the discussion by quoting Jim Collins, author of corporate Bibles like Built to Last and Good to Great from his latest monograph on the social sector:
“It doesn’t really matter whether you can quantify your results. What matters is that you rigorously assemble evidence – quantitative or qualitative – to track your progress… If the evidence is primarily qualitative, think like a trial lawyer assembling the combined body of evidence. If the evidence is primarily quantitative, then think of yourself as a laboratory scientist assembling and assessing the data.”

Julie Hoesterey, Deloitte
Ms. Hoestery set the stage by providing background on how accounting experts like those at Deloitte develop and use metrics, both within the company and for clients. As an internationally based accounting and professional service organization, Deloitte is a services firm whose main capital asset is human resources. The firm thus finds itself measuring predominately qualitative issues and developing sensible ways to track and report them.

Ms. Hoesterey oversees Deloitte’s CSR activities globally and thus spoke about the company’s role in helping its member firms manage and report on non-financial aspects of business performance. She explained the two main techniques Deloitte uses. First, for community engagement projects, which are by definition ‘local,’ Deloitte has worked with the London Benchmarking Group to assess the impact, rather than simple “output” achieved through Deloitte’s human and financial “input” into community projects. Second, the company uses a 13-point People Commitment Survey to gather data on its key asset—employees—to measure impact of employee/employer relations on such critical ‘people’ areas as diversity, employee attraction, retention and commitment.

Such metrics are not necessarily best captured quantitatively, as accountants, who specialize in numbers, know all too well. Said Ms. Hoesterey: “When dealing with the human aspects of developing talent, it is not always possible to limit the assessment to quantifiable metrics…It is sometimes qualitative information that offers insight to see the change.”

Krista Gullo, Ford
Ms. Gullo began her presentation by sharing Ford Motor Co.’s definition of sustainability: “A business model that seeks to create value for stakeholders by preserving or enhancing environmental, social and economic capital.” Based on that definition, the company has measured the impact of its activities since 1999 when it began gathering sustainability data for its corporate citizenship reports.

Ms. Gullo then outlined the foundation of Ford’s metrics. The company, she explained, uses the GRI (Global Reporting Initiative) guidelines as the de facto standard, based on its comprehensiveness, applicability to a multi-stakeholder community and growing global acceptance. Ford reports on a majority of GRI core elements and indicators, using 30 as its key performance indicators (KPIs). The KPIs are selected subjectively according to the company’s Business Principles. Senior managers who serve on Ford’s strategy and business governance committees set corporate direction and strategic priorities, establish goals and allocate resources, providing parameters for business operation plans which are then translated into individual scorecards. Refined each year, scorecards include priorities, targets and metrics. In 2003, the company required its business groups to reflect the Business Principles in their 2004 business plans and scorecards. On a single page, the scorecards define key priorities, success drivers, targets and responsibilities for achieving business results, and they provide managers with progress indicators. Scorecard indicators are incorporated into managers’ performance reviews and are a factor in determining compensation.

As an example of what Jim Collins dubs Big Hairy Audacious Goals or BHAG in his book “Built to Last,” Ms. Gullo spoke about a BHAG Ford set in 2000. As part of six goals CEO Bill Ford set out, the company committed to improve its SUV fleet’s fuel economy by 25% in five years between 2000 and 2005. The company delivered on three of those and is on track to achieve two others. But the SUV fuel economy goal was not achieved, although the company discussed the issue at length in its 2002 Corporate Citizenship Report.

Ford failed to meet its goal, mainly because of technology development delays influenced by cost, changing market demands and external economic influences, including increased fuel prices and consumer willingness to pay. Explained Ms. Gullo: “It no longer made sense to pursue the goal. It became a question of shareholder vs. stakeholder value.” The company was severely criticized by NGOs, notably the Sierra Club, for failing to deliver.

Ford learned a few key lessons from the experience, said Ms. Gullo. Above all, the company learned how much it needs stakeholders who are flexible enough to understand when the market conditions prohibit achieving all stretch goals. What’s more, the company learned that developing flexible, understanding stakeholders requires continuous communication about its progress toward goals. Ford is now making an effort to communicate more frequently.

Currently, Ford is developing a roadmap that includes BHAGs, operational metrics and milestones to integrate into the company’s business plan. Ms. Gullo pointed to three challenges: Aligning internal and external metrics in order to make sure the metrics reflected publicly are also driving performance; Aligning sustainability and financial metrics (GRI, SRI, Financial); and cautiously creating public stretch goals, considering lessons learned.

Anita Roper, Alcoa
Ms. Roper agreed that GRI guidelines are useful but pointed to the lack of feedback from such metrics, stressing the need for performance reviews that lead to internal change.

In 2000, Alcoa developed the “2020 Sustainability Framework” that focuses on environment, health and safety (EHS) and sets clear targets allowing the company to easily measure progress. Ms. Roper said the framework has driven improvements in EHS and raised awareness of sustainability within the company as well as externally. In early 2005, the company initiated its internal review, which has led to a revised framework. The revised framework, explained Ms. Roper, expands beyond the current framework to include financial and social targets and strategies and provides a clear road map of both internal and external targets, while measuring progress.” The framework includes economic benefits, employee considerations, accountability and governance recommendations, product safety and sustainability goals, and lastly, a section on respecting communities. In 2006, the company plans to consult external stakeholders.

As an example of the company’s metrics, Ms. Roper spoke about its plant in Iceland, where a framework was developed to assess the performance of its plant against sustainability principles. The sustainability objectives, indicators and measures were developed with the input of a Stakeholder Advisory Group consisting of more than 30 members from the government, unions, church groups, academic institutions, business organizations, environmental NGOs, and local businesses. The group balanced social, environmental and economic interests. Issued considered included:

  • Changes in demographics in the local community
  • Equality in the workforce
  • Satisfaction in the workplace
  • Number of accidents, and health of subcontractors, as well as Alcoa and partner company employees

Based on lessons learned at the company, Ms. Roper suggested a few important elements to consider when applying metrics to measure CSR. First, she stressed the importance of knowing why the company is measuring its performance in this area e.g., (to increase efficiency, drive collaboration, etc). Second, she said that while external metrics can be useful, each company must mold them to its own needs, including its size, industry and culture Lastly, she stressed, the key is to ensure ownership of the issue through company and stakeholder group involvement.

Joseph Delaney
Deloitte’s Virtual Enterprise (VE) program is an example of what Mr. Delaney dubs, “an investment in human capital.” A NYC Department of Education initiative, the VE program pairs High School students with corporate employees, providing an essential experience and exchange forum. While students learn what it’s like to work in a corporate setting, developing their skills and preparing them for college and business, Deloitte employee are provided with an opportunity to give back to the community. Additionally, Deloitte builds a pipeline of employees, developing in students accounting and other skills they’ll need to work at Deloitte. So far, Deloitte has committed to hire a dozen graduates of the VE program; currently studying accounting in college, they have the chance to intern at Deloitte as client-service professionals during the summer or even during the school year, if they are at a local school. These interns are potential Deloitte employees who are already committed to the firm , who understand its culture and who can make a nearly instantaneous contribution. Plus, the program saves Deloitte literally thousands of dollars per employee in recruiting costs “The measurement of success for this particular program,” emphasized Mr. Delaney, “are the 12 young people, on their way to Professional Careers with Deloitte.”

II. What’s New

  • The next WNSF panel, “Missing Links: Next-Generation Sustainable Supply Chains,” to be hosted by Pfizer Inc., will be held from noon to 2pm at Pfizer, 235 E. 42 St., NYC. Featured will be speakers from Pfizer, Time Inc. and PriceWaterhouseCoopers. To register, go to: http://www.wnsf.org. Look for email invitations!
  • By popular demand following the success of the February roundtable, Deloitte and WNSF plan to collaborate on a series of sessions on metrics. Slated to being next fall, each session would focus on a key aspect of sustainability metrics (community, people, environment, economy). Look for emailed invitations and an announcement on the WNSF website!
  • Read WNSF’s thoughts on businesswomen and social issues in ‘Women on the Edge,’ in the December ‘05 issue of Jungle MBA magazine (jungleonline.com).

III. The Women’s Network for a Sustainable Future
The Concept of the Network

The Women’s Network for a Sustainable Future (WNSF) provides a forum for businesswomen to congregate, reflect, and act on the convergent issues of corporate social responsibility and sustainable development. Through meetings, training and simple electronic support tools, WNSF facilitates the exchange of experiences and best practices, building a community of businesswomen who can serve as powerful change agents for corporate responsibility sustainability in the US and internationally.

The Women’s Network for a Sustainable Future is a 501c3 organization. Gifts are tax deductible.

For more information, please contact:

Ann Goodman, Executive Director
Women’s Network for a Sustainable Future
Please direct inquiries to: info@wnsf.org

Board of Directors:

CHAIR: Kathy Robb, Esq., Partner and Head of Environmental Practice, Hunton & Williams; Dianne Dillon Ridgley, Director, Interface Inc. Board; Karen Flanders, Director of Sustainability, Coca-Cola Co.; Joanne Fox-Przeworski, Director, Bard Center for Environmental Policy, Bard College; Ann Goodman, Executive Director, WNSF; Sarah Howell, Director, Corporate Communications, BP; Michele Kahane, Special Projects Director, Center for Corporate Citizenship, Boston College; Clair Krizov, Executive Director of Environmental and Social Responsibility, AT&T; Joyce La Valle, Senior Vice President, Interface Inc.; Anita Roper, Director of Sustainability, Alcoa Corp.; Deborah Sliter, Vice President of Programs, National Environmental Education & Training Foundation.

This issue of Net Notes was written by Monika Kumar and edited by Ann Goodman. WNSF thanks founding sponsors AT&T and the Ford Foundation for their generous support.

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Global Diversity: New Business Definitions

March 2006 Volume IV Number 1

Net Contents
I. Network Presentation
Key Learnings
Perspectives

II. The Women’s Network for a Sustainable Future
The Concept of the Network
Contact Information
Sponsorship Opportunities

I. Network Presentation
A big thank you to those who took the time to attend WNSF’s luncheon panel on December 8, 2005 entitled “Redefining Diversity for Global Business,” hosted by Philips Van Heusen in New York City. The session featured speakers from Philips Van Heusen, Pfizer and Goldman Sachs discussing issues of diversity as faced in their global businesses.

Key Findings

  • The definition of diversity within business has evolved over the years and varies with location and culture.
  • As they expand worldwide, companies are considering not just how to incorporate employees of diverse backgrounds and cultures within their businesses, but also how to cater to market their products and services to them.
  • Many companies are still struggling to balance the complex relationships among employees with diverse perspectives.
  • In some locations where hiring women entails greater responsibilities for companies, they are adopting extra precautions and sometimes lobbying governments.
  • Domestically, companies are integrating diversity issues into management and working with partners who support this issue.

Perspectives

Moderator: Ann Goodman, Executive Director of WNSF.

Speakers:

  • Marcela Manubens, Vice President of Global Human Rights and CSR, Philips Van Heusen
  • Indrani Franchini, Pfizer’s corporate counsel
  • Edith Hunt, co-chief operating officer of the Human Capital Management Division, Goldman Sachs

Marcela Manubens of PVH set the stage for the afternoon discussion by outlining the evolution of the concept of business diversity historically. Diversity in the 1960s and 70s meant an “ex-pat” successfully adapting to foreign cultures but grew into the perception of including minorities in the 1980s and early 1990s. Since then, however, diversity has evolved into much more than the simple notion of “uniting the races,” with a focus on catering to various markets.

This evolution has been at work PVH, Ms. Manubens said. As an example, she spoke of a real world situation in Asia where a non-traditional Muslim woman was hired to work under the supervision of a traditional Chinese man. While the woman desired to excel in a “man’s world,” by being bold, the manager believed in a hierarchy where women play less aggressive roles. Tricky situations like this, said Ms. Manubens, can be better handled when richer concepts of diversity are integrated into management systems. She suggested several steps for companies to take, including:

  • Providing awareness training, expanding on traditional diversity training that focuses on legalities like hiring and firing, and instead stresses practical skills and strategy.
  • Adopting tools like conflict prevention and resolution.
  • Developing skills to find the most appropriate job candidates (for instance, in the example above, management may not have identified the ideal employees for the situation).
  • Applying innovative thinking.

Indrani Franchini is Pfizer’s corporate counsel and Co-Chair of the Legal Division’s Diversity Initiative, created in 2003. She stressed that “Diversity is a journey not a goal.” At Pfizer, diversity means “creating an inclusive culture where all people are valued and where their ideas are encouraged and respected.” The mission of the legal division’s program is to “be the leader among law departments in attracting, retaining and developing a diverse team of the most talented and effective colleagues to advance the interests of the businesses we support, while cultivating an inclusive and professionally-satisfying work environment.”

Ms. Franchini stressed that Pfizer’s legal division works hard to maintain a comfortable environment for all through transparent policies and standards that make it easy to understand the company’s work ethic and advancement protocol. The division has set organizational responsibilities and defined targets so that everyone can accomplish goals in line with the company’s expectations. Through training and effective communication, the legal division educates its employees as well as law firms it employs externally. Performance standards have also been set to measure progress toward goals. Currently, Pfizer is carrying out an assessment of its programs to understand what it has already done, what it is doing and what it can still do. Thus, the journey continues.

Edith Hunt, Goldman Sach’s co-chief operating officer of the Human Capital Management Division, explained the challenge of maintaining gender diversity in face of growing cultural challenges. For instance, in the company’s Banglore location, where car service must be provided to all employees, extra precautions must be taken for women employees, because local culture dictates that women may not be left alone in the car with the driver. Hence, the company has ensured that a male employee or guard is always present in the car.

While some diversity issues are specific to particular cultures, Ms. Hunt noted universal challenges for women that Goldman seeks to address:

  • Women have a harder time asserting themselves.
  • Women do not network as well.
  • Women are reluctant to talk about their accomplishments. She also elements necessary to ensure diversity integration:
  • Senior management commitment.
  • Critical mass.
  • Role models.
  • Managerial awareness.
  • Special training for women.

II. The Women’s Network for a Sustainable Future
The Concept of the Network

The Network provides a forum for business and professional women to congregate, reflect, and act on the converging issues of corporate social responsibility and sustainable development. Through meetings and simple electronic support tools, the Network aims to facilitate the exchange of experiences and best practices on these vital workplace issues. By creating a new network of executive women, the Network seeks to improve responsible practices in workplaces; sensitize corporate culture more generally to issues of sustainability and social responsibility; and encourage a public commitment locally, nationally, and internationally to sustainability principles.

The Women’s Network for a Sustainable Future is a 501c3 organization. Gifts are tax deductible.

For more information, please contact: Ann Goodman, Executive Director Women’s Network for a Sustainable Future Please direct inquiries to: info@wnsf.org

Board of Directors:

CHAIR: Joyce LaValle, Senior Vice President, Interface Inc.; Karen Flanders, Sustainability Director, Coca-Cola Co.; Joanne Fox-Przeworski, Director, Bard Center for Environmental Policy, Bard College; Ann Goodman, Executive Director, WNSF; Sarah Howell, Director, Corporate Communications, BP; Michele Kahane, Special Projects Director, Corporate Citizenship Program, Boston College; Clair Krizov, Executive Director of Environmental and Social Responsibility, AT&T; Kathy Robb, Esq., Partner and Head of Environmental Practice, Hunton & Williams; Deborah Sliter, Vice President of Programs, National Environmental Education & Training Foundation, Karen Flanders, Coca-Cola Director of Sustainability

This issue of Net Notes was written by Monika Kumar and edited by Ann Goodman. WNSF thanks founding sponsors AT&T and the Ford Foundation for their generous support.

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