Earlier this month in New York, Future500 organized “leaders from the left to the right for an Unconvention to explore areas of conflict and potential common ground on energy, innovation, capitalism and sustainable prosperity.” It was done under the umbrella of COMMIT! Forum which took place this week.
This topic is, of course, a bit difficult to cover thoroughly in just two days, but nevertheless the conference, which was attended by many from the CSR community, generated some thought provoking discussions and debates, just like last year.
This week I will present three articles summarizing some of my reflections from the conference, starting today with three interesting insights I’ve taken away from the COMMIT! Forum:
“In 100 percent of the cases, good environmental policy is identical to good economic policy. If we want to measure our economy (and this is how we ought to measure it), it should be based upon how it produces jobs, the dignity of jobs over the long term and how it preserves the value of the assets of our community. If, on the other hand, we do what the polluters have been urging us to do, which is to treat the planet as it were a business in liquidation, convert our natural resources to cash as quickly as possible, and have a few years of pollution-based prosperity - we can generate spontaneous cash, the illusion of a prosperous economy, and make a few people billionaires by impoverishing the rest of us. But our children are going to pay for it with nude landscapes, poor health and huge cleanup costs they will never be able to pay.”
A couple of other interesting lessons came up in a workshop that was focusing on assurance. While reporting is quickly becoming the norm for large companies worldwide, assurance seems to be the next step. Just like with reporting, it looks like many companies evaluate assurance through the lens of value, which actually makes a lot of sense as long as it’s a voluntary process. The good news is that a growing number of companies show the (and tell) the business case for assurance.
The participants agreed that assurance can be an effective learning tool. Michael Jacobson, Director of CR at Intel, shared Intel’s realization of the value of assurance, which helped the company understand its weaknesses and strengths. Another example from UPS was of product innovation that was derived from the assurance process.
It was interesting to see that the business case for assurance is focused, at the moment, on internal drivers and less on external ones. In other words, there is no real pressure from stakeholders on companies to audit their reports. Apparently the lack of such pressure will cause full adoption of assurance to be a relatively long process, but in the meantime, the internal drivers will ensure that it will continue to steadily develop and become a more integral part of CSR reporting.
The best examples for this approach came from a c-suite panel that took place at the NYSE on the second day of the conference. Eikmet Ersek, CEO of Western Union, told the audience how his company is working to help millions of children who have no access to school worldwide. Duncan Niederauer, CEO of NYSE Euronext shared how they help veterans compete in the job market and find jobs. The last example came from Jeffrey Joerres, CEO of Manpower, who mentioned how his company helped build schools in areas in India that were hit by the tsunami.
It’s not that these companies are not involved in other CSR initiatives, but the fact that these stories came up in a discussion that was meant to focus on “how leading CEOs set strategy, make trade-offs, and measure the ROI of CR” indicates the dominance of philanthropy in the conversation about CSR, at least in the c-suite.
Raz Godelnik is the co-founder of Eco-Libris, a green company working to green up the book industry in the digital age. He is an adjunct faculty at the University of Delaware’s Business School, CUNY SPS and the New School, teaching courses in green business, sustainable design and new product development.
Raz Godelnik is an Assistant Professor and the Co-Director of the MS in Strategic Design & Management program at Parsons School of Design in New York. Currently, his research projects focus on the impact of the sharing economy on traditional business, the sharing economy and cities’ resilience, the future of design thinking, and the integration of sustainability into Millennials’ lifestyles. Raz is the co-founder of two green startups – Hemper Jeans and Eco-Libris and holds an MBA from Tel Aviv University.