Former VP Al Gore's Investment Strategy - Sustainable Business

Former US Vice President Al Gore, long a champion for environmental causes, has jumped into the 'business case for sustainability' discusssion. "Capitalism is at a critical juncture," he says, arguing that the focus on short-term results is undermining issues such as the long-term sustainability of profits, how a company relates to the community and its employees, and the environment. Gore is co-founder and chairman of British-based sustainable investing company Generation Investment. Generation is only paid after three years of returns, and then only if it beats the benchmark. According to Gore, retail investors are clamoring for a change to long-term sustainable goals, with consumers pushing for lower carbon emissions as global warming awareness grows.

Read the article: http://www.theage.com.au/news/business/gore-makes-sustainable-investment-his-business/2005/11/13/1131816810708.html

Holding Business To A Higher Standard of Giving Back

The Washington Post 'How We Give' (Business, Nov. 6, 2005) describes that while companies have accepted that strategic giving programs can benefit their bottom line, they still struggle with the pitfalls and consequences of alienating their customers and stakeholders. Read the article

http://www.washingtonpost.com/wp-dyn/content/article/2005/11/05/AR2005110500282.html

When over 85 percent of consumers report that corporate giving impacts their purchasing decisions (Cone, 2004), companies cannot risk allowing ill -conceived and implemented giving programs to damage their reputations among stakeholder groups.

To find out more about how to implement a strategic program that can draw benefits to your bottom line as well as steer clear of controversy, contact DCSBN board member John Friedman at JohnF@dcsbn.org

Wal-Mart & The Sorry State of US Health Care

Wal-Mart recently announced that it is launching a new health care plan for its employees by 2006, with premiums lowered by 40 – 60%. However, deductibles for its employees will range from $1,000 for individuals to $3,000 for families.

Wal-Mart, like many other companies, is facing health care costs that are spiraling out of control. The problem is exacerbated by the fact that many of the company’s employees are drawn from the most vulnerable socioeconomic groups – those with the greatest health care needs, and the least ability to pay them. In the meantime, Wal-Mart’s rival Costco Wholesale has taken a very different approach to covering its workers, and as a result, has been rebuked by Wall Street.

With the recent release of a Wal-Mart company memo to the company’s Board of Directors detailing various strategies to cut health care costs, including “hiring a healthier workforce [which] will lead to lower health insurance costs, lower absenteeism through fewer sick days, and higher productivity,” the company is in the forefront of a national debate about health care coverage for the nation’s labor force.

As health care costs continue to outstrip inflation, can we no longer rely on employers to provide health care coverage for workers? Professor Carolyn Watts – a health professor at the University of Washington – wonders in a recent NYT article if this the government’s responsibility or employer’s. What are your thoughts?