The Washington DC Sustainable Business Network

The Real Lessons from Hurricane Katrina

2007-01-30T11:37:00.000-05:00

When it comes to Global Warming, we can take a real lesson from Hurricane Katrina. While some may chose to debate whether the storm was caused by climate changes, if the army corps of engineers flood controls compromised the Mississippi River, if the storm was an act of God, nature or due to man's interference - the facts remain the same. They are:

Below-sea level portions of New Orleans were inundated, just as people had warned for decades.
There is a continued liklihood that storms of the same or greater strength will be generated each year.
There is a probability that another storm will hit New Orleans again.
Four days warning was not enough to evacuate the city properly.
Four days warning is not enough time to build adequate levees.

Therefore, whatever is done to replace them must be adequate to the task, and an evacuation plan must be developed.

Depending on what you read, scientists either all agree that global warming is caused by man, or caused by nature. It is either a natural cycle, or one that we have accelerated. This finger-pointing may signal the politization of the debate, but does not do anything to address the basic facts:

The climate is changing.
Man must adapt to the changing climate.
Absent an evacuation strategy, we must do what we can to maintain a livable climate on earth, with adequate food and water for the billions of people who call this planet home.

We can stop looking for who to blame for the problem. We must admit that it is here and shift our focus onto solutions. The debate should focus on the respective roles of business, government and private citizens. Because no matter the cause, we have to figure out what we are going to do.

Networking Event - Feb. 22 - FREE

2007-01-25T20:47:00.000-05:00

The Washington DC Sustainable Business Network (DCSBN) is pleased to announce its next event, February 22, at Topaz Hotel from 6:30pm - 9:00pm.

Network with other business and community leaders and learn how to make your business more successful while also helping to build a more socially, environmentally and financially sustainable local economy!

Since its launch a short time ago, the DCSBN has become a recognized leader in the region for providing targeted services and providing practical programs that create measurable business and social value.

DCSBN helps area businesses achieve lasting success through social, environmental and financial sustainability.

Overview of What DCSBN Offers:

Help integrating environmental & social responsibility into business operations and strategy Access to resources – at below market rates – to help improve your bottom line and the health of the community
Tools, resources and services to strengthen your business and positively impact the local community
Positive public relations
Sustainability-driven innovations that help you tap new business opportunities
Promotion opportunities through our network
Discounts to our regular events, including high-profile events like our annual Symposium, quarterly Business for a Better World Speaker Series and CR toolkit events.
Job postings and advertising opportunities through our website

Come join us at Topaz Hotel -- conveniently located just a few blocks SE of the Dupont Metro stop -- to network with business and community leaders and learn how you can help make the local economy more socially, environmentally and financially sustainable, while helping your bottom line!

Cost: FREE!

Register here.

CEOs Urge Bush to Limit Greenhouse Gas Emissions

2007-01-23T16:42:00.000-05:00

On the eve of the State of the Union address, the chief executives of 10 major corporations are urging President Bush to embrace mandatory ceilings on U.S. greenhouse gas emissions in order to stem climate change.

The CEOs support a system that would cap greenhouse gas emissions, give allocations to companies based on past emissions and allow firms to trade allocations to meet gradually declining emission targets. The system, similar to one being used in Europe, would have far-reaching implications for utility rates, power plant construction, energy efficiency and American automobiles.

The executives' plan would slow the growth in greenhouse gases over the next five years, then reverse that growth and cut annual emissions by 70 percent to 90 percent of today's levels in 15 years.

Jeffrey Immelt, chairman of General Electric, pointing to initiatives in California and a group of Northeastern states, said "this is happening already." In addition to Immelt and Sterba, the group included the chief executives of Lehman Brothers Holdings, PG&E, Alcoa, Caterpillar, BP America, Duke Energy, DuPont and FPL Group.

DCSBN Responds to Anti-CSR Letter in the Wall Street Journal

2007-01-18T11:43:00.000-05:00

The original letter:

Social Responsibility Isn't CEOs' Business
Your Jan. 16 editorial "Beyond PR at BP" was correct to call attention to the folly of BP's Beyond Petroleum advertising campaign that distracted management from its core business responsibility: finding, drilling and processing oil in a safe and efficient
manner. However, the editorial failed to recognize BP's public relations effort
as part of the larger corporate social responsibility (CSR) movement that plagues big business. CEOs are under pressure to expand their companies' responsibilities beyond making money for its shareholders.
BP's CSR detour was a disaster for its shareholders, workers, the environment and Lord Browne himself. BP's CSR experience illustrates that like oil and water, CSR and business profitability don't mix.
Tom Borelli, Ph.D.
Free Enterprise Action Fund
Eastchester, N.Y.

DCSBN's Response (submitted for publication on January 18, 2007):

Dr. Borelli makes a common but false assumption that social responsibility is not in the shareholder's best interest when he writes 'Social Responsibility Isn't CEOs' Business' (January 18, 2007).

The business of business is business, as Milton Friedman famously said. Holding BP in contempt for pursuing alternative energy sources fails to recognize that any energy company that plans to be in business - and hence be around to provide a return to its shareholders over the long term - must accept the challenge of meeting the energy needs of the future. If the corporate scandals at Enron, Worldcom,
etc. have demonstrated nothing else, they have shown the folly of measuring success only on the basis of quarterly stock performance. I am sure that many investors, (not to mention former employees and customers of those companies) would have preferred management had taken a more responsible approach. And that is the CEO's responsibility and duty.

John FriedmanWashington DC Sustainable Business
Networkemail: JohnF@dcsbn.org

Implementing Solutions to Climate Crises

2007-01-12T09:11:00.000-05:00

On February 4th & 5th, 2007, on the George Washington University Foggy Bottom Campus, a number of committed organizations are co-sponsoring an action-conference on "Implementing Solutions to Climate Crises."

Join us in advancing practical climate-related solutions that can be implemented by businesses, governments, NGOs, communities, and consumer/citizens.

The debate is over about whether climate change exists. Now the relevant question is: how can we limit climate threats and enhance our opportunities for climate sustainability?

Join us at our action-conference at GW next month to advance and implement real climate solutions!

DCSBN Member Meeting 2007

2006-12-07T14:23:00.000-05:00

The first annual DCSBN membership meeting ( a requirement for all DC-based not-for-profit organizations) was held at the Hotel Helix on December 6, 2006. The board presented a summary of accomplishments to date as well as engaged in a discussion around many ideas proposed for 2007. Members-and interested guests-provided feedback on each of the following:

DCSBN's Corporate Responsibility Symposium - to be held June 8, 2007 at George Washington University featuring sessions on 'The Business Case for Corporate responsibility', 'The Redevelopment Plans for Washington DC' and how to leverage global efforts to benefit the 'capital of capitalism.'
A sustainable cuisine series of meals and tours at local socially-responsible restaurants and eateries.
Identifying and recognizing businesses in the National Capital area that are committed to sustainability and integrating it into their business models through the creation of a directory, recognition program (plaques for display in their establishments) and CR awards of some kind.
The Building A Better World Speakers Series that brings prominent authors and speakers on sustainability to Washington DC.
Membership benefits such as working with clean energy and consulting organizations that are offering their services to DCSBN members at a reduced rates.
Offering pracitcal tools and programs that help build better businesses and stronger communities.
Learning and networking opportunities throughout the year, including efforts to advance as well as promote the sustainability agenda in Washington DC.

DCSBN will be engaging with members and those who attended further as we finalize our plans for 2007. Comments can also be submitted here, on this blog, or to dcsbn@dcsbn.org

Business Taking The Lead on Global Warming

2006-12-05T14:28:00.000-05:00

Businesses must respond to public perception, rather than political or even scientific realities. So it is not surprsing that while the Senate hearing on 'Climate Change and the Media' was marked by political accusations of misrepresentation and scientific co-option, Daniel Schrag, a Harvard scientist, pointed out that the best evidence that climate change is a real threat is that many businesses and the insurance industry are taking it seriously.

Announcing the DCSBN / BetterWorld Telecom Affiliate Partnership: Helping to Make it a Better World, One Call at a Time!

2006-11-27T16:03:00.000-05:00

The Washington DC Sustainable Business Network – BetterWorld Telecom Affiliate Partnership: Helping to Make it a Better World, One Call at a Time!

Now you can enjoy a win-win opportunity for your business or organization – help support DCSBN while also reducing your office phone and Internet bills by an average of 28%!

Services Available for Businesses and Non-Profits

Business Local Calling
Dedicated Internet
National and International Long Distance
Toll Free - 800
Conference Calling
Calling Card s
VoIP- Virtual PBX, Unified Communications

DCSBN Member Benefits

Lowest Rates Available - Save hundreds or thousands off your telecom bill each month.
Support DCSBN Every Month - 5% of every monthly bill is donated back to DCSBN
100% Money Back Guarantee – offered every month of active service, no risk in switching to BetterWorld Telecom
Switching to BetterWorld Telecom Takes Only a Few Minutes --Let BetterWorld evaluate your recent bill and prepare a summary of savings
Opportunity to work with a personalized, committed, and triple bottom line service provider, supporting competition and not the industry monopolies that most organizations use today

IRS Classifies DCSBN as Tax Exempt Charitable Organization

2006-11-27T15:55:00.000-05:00

As of November 14, 2006 DCSBN has been classified by the Internal Revenue Service as a tax exempt, not-for-profit. This finding means that retroactive to the date of its incorporation -- June 9, 2004 -- DCSBN has been granted tax exempt status as a 501(c)(3) charitable organization. Therefore, contributions to DCSBN are tax deductible under the IRS code.

A special thanks to Mona Tandon and Evan Reese with Van Ness Feldman for all of their help during the entire process!

D.C. Could Be First Big U.S. City to Go 'Green'

2006-11-16T14:55:00.000-05:00

The nation's capital is poised to become the first major U.S. city to require private developers to build environmentally friendly projects that help save energy and reduce pollution.

The Washington DC City Council is expected to approve a bill next month that would adopt standards established by the U.S. Green Building Council, which requires "green buildings" to use recycled materials and devices such as low-flow shower heads, toilets and faucets.
The buildings also must have energy-efficient applicance and take steps to improve air quality by relying less on artificial heating and cooling. Sidewalks must be designed to encourage walking and plants must be drought-tolerant.

Going green costs more, however. Proponents say the extra cost of construction ranges from 2 to 4 percent, but opponents say it can cost 11 percent more.

Under the bill, all new city-owned projects, including schools, would have to meet the green standards within two years. By 2012, every new commercial building over 50,000 square feet would have to meet the guidelines.

"This is big," said Cliff Majersik of the Institute for Market Transformation, a nonprofit environmental group that promotes green buildings.

Majersik said smaller cities, such as Pasadena, Calif., have adopted similar laws, but Washington DC would be the first large city to force private developers to meet the standards.

Bill Hall, a lawyer who represents building material manufacturers, said lobbyists representing some building industry groups are fighting to get communities to use more lenient standards.

"Failure to include these other rating systems would be like the D.C. Council mandating that only Google's search engine can be used in the District to the exclusion of Yahoo and AOL because Google is the most widely used," Hall said.

The Green Building Council has certified 500 buildings in the U.S. as green, and more than 5,000 are awaiting certification, advocates say.

D.C. officials have said the Washington Nationals' new ballpark is being built to green standards.

Mid Term Election Analysis: One Point of View

2006-11-08T16:57:00.000-05:00

On September 7, I posted an opinion piece that stated that this mid-term election would give insight into the mindset of the American people and whether or not government scandals such as secret prisons and sexual predators would lead to a call for change.

So, with all the talk of who 'won' and who 'lost' I think it's time for a bit of reality here. The Republicans lost the majority in the House of Representatives, and may have done so in the Senate, the later by the slimmest of margins. This is not the resounding victory, that the Democrats would like to claim. Instead I see it as an expression of disapproval for the GOP, combined with a real skepticism about politicians in general.

In short, the American people have voted for change - but it seems that we are unsure where to find it and are now firmly sitting on the fence.Based on a social responsibility model (listening to changing customer needs and desires) combined with the necessary role of government to lead, here are the lessons I believe that either party needs to learn.

End the war in Iraq. Enough with the posturing and fingerpointing. We all know how we got into this mess. What we need now is a new policy and an action plan to get out of it. Here is a simplified action list, for the first 30 days. A) Provide every man and woman serving in the Armed Forces with the tools and equipment that they need to do the job. This includes body armor. And it also includes B) a definition of success and C) develop and implement a plan that focusses on stablizing the region, allows self-determination in Iraq and eliminates the safe haven for terrorists that has been created.
It is time to identify, prosecute and remove everyone, regardless of party affiliation, who has succumbed to the temptations of power including (a) sexual predation and (b) corruption through financial incentives. Behavior that has no place in corporate offices cannot continue to take place in the halls of Government.
The political parties should take the next two years to develop their own 'contract with America' style platforms outlining what they stand for and stop relying on malfeasance and corruption on the part of their opposition as their strategy.
In business we have shareholder meetings. In America we have the right to express our views, the right to peacefully assemble, media that is free and unfettered, and the right to vote. Those are powerful tools. We must hold ourselves as well as those we elect accountable.

House and Senate Considering Anti-Sweatshop Legislation

2006-11-01T09:46:00.000-05:00

Companies with supply chains in Asia should take note of legislative developments in both the House of Representatives and Senate.

Identical versions of the Decent Working Conditions and Fair Competition Act are being reviewed by committees in both the Senate (S. 3485) and the House of Representatives (H.R. 5635).

Introduced by Sen. Byron Dorgan (D-North Dakota) and Representative Sherrod Brown (D-Ohio) respectively, the bills are both at the first stage of the legislative process, where committees consider whether the bill should be presented as a whole. The Senate bill has four co-sponsors - all Democrats, the House has 55 - again all Democrats.

The purpose of the Act is to “(1) prohibit the import, export, or sale of goods made in factories or workshops that violate core labor standards; and (2) prohibit the procurement of sweatshop goods by the United States Government.”

Core labor standards are defined as follows: “(1) the right of association; (2) the right to organize and bargain collectively; (3) a prohibition on the use of any form of forced or compulsory labor; (4) a minimum age for the employment of children; and (5) acceptable conditions of work with respect to minimum wages, hours of work, and occupational safety and health”. The Act interprets “acceptable conditions” as determined by “laws, regulations, or competent authority of the country where the labor is performed”.

It should be noted that during this process, bills may undergo significant changes in markup sessions and that the majority of bills never make it out of the committee stage.

Similar legislation is set to become law in the UK this winter.

For more information, click the title of this post.

PR News - CSR Awards Information and Application

2006-10-18T17:10:00.000-04:00

PR News' Corporate Social Responsibility Awards honor the corporations and their partners that have implemented and executed highly successful CSR campaigns in the past 12 months.

PR News' CSR Awards will be announced at an awards ceremony on in March 2007. The deadline to submit entries is November 8, with a late entrants' deadline of November 17.
Download the Entry Form Read about previous Winners

Contact: Saun Sayamongkhun
301/354-1610
psayamongkhun@accessintel.com.

Court Overturns Lay Conviction

2006-10-17T16:56:00.000-04:00

Enron CEO Ken Lay was convicted of 10 counts of fraud, conspiracy and lying to banks in two separate cases on May 25. Enron's collapse in 2001 wiped out thousands of jobs, more than $60 billion in market value and more than $2 billion in pension plans. Lay died before his appeal could be heard.

U.S. District Judge Sim Lake ruled that Lay's death required erasing his convictions, citing a 2004 ruling from the 5th U.S. Circuit Court of Appeals that found that a defendant's death pending appeal extinguished his entire case because he hadn't had a full opportunity to challenge the conviction and the government shouldn't be able to punish a dead defendant or his estate.

Disney Commits to A Small(er) World

2006-10-17T16:21:00.000-04:00

The news media around the world has lauded the Walt Disney company for their decision to eliminate junk food at their theme parks and to cease using beloved cartoon characters to sell sugary snacks and 'happy meals.'

If you agree with this decision, be sure to let the Disney company know!

Zenia Mucha -- 818-560-5300
Michelle Bergman -- 818-560-8231
Jonathan Friedland -- 818-560-8306

DCSBN Offers Help Finding Socially Responsible Retirement Plans

2006-10-16T11:13:00.000-04:00

Increasingly, responsible business owners not only promote a better world by how they operate their business, the product and services they offer, and the way they treat employees, the environment, and the communities. Many also look for socially responsible retirement plans. DCSBN offered business owners the opportunity to learn more about to combine a commitment to employees with a commitment to socially responsible investment.

The discussion was led by John Campagna of Smith Barney and Rachel DeCosta-Martin from DCSBN sustaining partner, Calvert Funds.

Find out more about socially responsible investing!

Employers: set up a socially-responsible 401(K) for your company

GRI Simplifies Reporting; Creates Entry-Level CR Standards

2006-10-16T10:30:00.000-04:00

The Global Reporting Initiative has released its new Guidelines for Sustainability Reporting, along with a full set of Indicator Protocols.

The results of this extensive, global, and inclusive process are the third generation of GRI’s Guidelines (G3) – building on past releases in 2000 and 2002.

Those familiar with the GRI reporting framework will notice some key changes and highlights in the new G3 version. These changes are chiefly aimed at increasing the user-friendliness of the Guidelines, and increasing the comparability of reports. Highlights include:
· Guidance on how to determine what issues to report on and how to select material indicators via the Reporting Principles
· Each Reporting Principle is accompanied by a set of self-tests to help with their application
· Guidance on setting the report boundary
· New disclosure items on strategy and analysis that highlight key issues, risks, and opportunities
· Indicator section has been restructured and now contains two main elements - “Disclosures on Management Approach” and “Performance Indicators”
· Each performance indicator is accompanied by an Indicator Protocol, which contains definitions for words used in the indicator, compilation methodologies, and other useful resources.

Follow up: DCSBN Letter In Fortune Magazine

2006-10-12T08:30:00.000-04:00

In July DCSBN sent a letter to Fortune Magazine in response to their article "Sorry Jack" describing how business had evolved beyond the Jack Welch model of the 1990's to one that required a greater focus on core values and meeting stakeholder (rather than financial) expectations. The letter appeared in the print magazine as well as on Fortune's Web site.

THANKS FOR describing how changing expectations are creating a new model for success not measured exclusively by quarter-to-quarter stock prices. The new rules echo what we see around the world: the gravitation of both customers and the "best and brightest" to companies with vision, soul, and a desire to serve the customer rather than the shareholder.

-- JOHN FRIEDMAN Washington DC Sustainable Business Network

Opinion: Does the Public Want Accountability?

2006-09-07T10:03:00.000-04:00

President Bush recently admitted the existence of long rumored secret prisons at which terror suspects were being detained.

Congressional leaders apparently were aware for years that a sexual predator within their midst was preying on pages - enough to share warnings about his actions - and yet did nothing to stop him.

Business has experience listening to its customers. It is a fundamental principle of capitalism. That is why, as more stakeholders become concerned about sustainability issues (like global warming) strategic businesses have identified their stakeholders (those who are integral to their success) and responded with to their concerns with increased transparency about their impacts and their programs to reduce them.

Do American government officials need to apply the lessons from corporate America? That means listening to stakeholders that matter - the voters. This November, depending on the outcome of the election, government may recieve either a wake-up call or a validation of 'business as usual.'

The result will say a lot about America - and Americans - and the level of accountability we want from our leaders.

Individual Investment in Clean Energy Tops 2 Billion

2006-08-18T16:33:00.000-04:00

Global private equity investment in clean energy has soared to more than $2 billion in the second quarter of 2006, according to figures from New Energy Finance (NEF).

The London-based analysts said this was three times the amount of venture capital and equity investment in the first quarter of 2006, and double the figure for the same period last year.The company said the surge in private investment in public equity (PIPE) was particularly noteworthy.

Traditionally, private investors have been a last resort for publicly-listed companies raising funds, but this year they have taken center stage in the clean energy sector.PIPE investments reached $556 million in the second quarter, compared to just $21 million in the first quarter and $28 million in the same period of 2005.

Read more

Sustainability is More than Being Green

2006-07-27T10:50:00.000-04:00

Companies that concentrate their sustainability efforts exclusively on being environmentally responsible may be surprised to discover that it may not be enough. A company that pledges to reduce waste, cut fossil fuel emissions and reduce energy dependency may find itself struggling to be seen as socially responsible if it does not address the social issues of outsourcing, equal opportunity, wages and health insurance coverage for its workers. Yes, Wal-Mart is a prime example of a company that may find that its definition of 'sustainability' is not the same as its critics.

Fortune Mag Claims Jack Welch Model Passe

2006-07-11T15:10:00.000-04:00

Fortune Magazine that once named Jack Welch the "manager of the century" has decided that the rules used to drive GE to the heights of success no longer apply. Fortune points out that the old rules served companies well but that the global realities have changed, and the rules must evolve with them. "The risk" the magazine states "is applying old solutions to new problems."

CEO Pay Near Record

2006-07-11T10:42:00.000-04:00

It's great to be a CEO these days.

According to a recent report by the Economic Policy Institute, a Washington-based think tank, a typical chief executive at a U.S. company earned 262 times the pay of a typical worker in 2005. With 260 workdays in a year, that means that an average CEO earned more in one workday than an average worker earned in 52 weeks.

A study released earlier this year by the Corporate Library -- and titled "Pay for Failure" -- singled out some of the corner suite's worst offenders. Among them: Pfizer (PFE) CEO Henry McKinnell; Merck (MRK) former CEO Raymond Gilmartin; and AT&T's (T) Edward Whitacre.

The pay gap is the second-highest in the 40 years for which data are available (American CEOs fared even better in 2000 when they made an average of 300 times the salary of their workers.) It should be noted that EPI defines CEO pay as the sum of salary, bonus, value of restricted stock at grant, and other long-term incentive award payments. Worker pay is calculated as the hourly wage of production and nonsupervisory workers, assuming the economy-wide ratio of compensation to wages and a full-time, year-round job.

The Washington Post reported on July 10 in its annual ranking of local executive pay that "the median total compensation for the 100 highest-paid executives at local public companies rose 21.2 percent in 2005, to $6.4 million from $5.2 million the year before. Futher, many executives' paychecks swelled, no matter how they did . The list was topped by four chief executives who received more than $30 million each: SLM Corp.'s Thomas J. Fitzpatrick ($39.6 million); Capital One Financial Corp.'s Richard D. Fairbank ($31.6 million); United Therapeutics Corp.'s Martine A. Rothblatt ($31.1 million); and Sprint Nextel Corp.'s Gary D. Forsee ($30 million).

"Altogether, the more than 700 executives at 157 firms in The Post's study took home $467.5 million in salary and bonus. Their total compensation -- including options, perks and other items -- had a combined value of almost $1.4 billion, more than the budget of the D.C. public schools.

The average worker in the Washington area was making $50,000 in wages or salary as of May 2005, according to the most recent local snapshot from the Bureau of Labor Statistics. For private-sector workers nationwide, total compensation rose an average of 2.9 percent last year."

Washington Post: Why We Can't (And Won't) Stop Global Warming

2006-07-05T09:42:00.000-04:00

Robert Samuelson, writing in the Washington Post on July 5 -- Global Warming's Real Inconvenient Truth -- harkens back to an earlier column - from 1997 - and points out that the problem with solving Global Warming is two-fold:

First, we don't know what to do.

Second, it is politically dangerous to suggest the stop-gap measures such as energy rationing that limit economic growth and personal freedom.

His piece concludes with the ultra-reasonable sounding conclusion:

Only an aggressive research and development program might find ways of breaking our dependence on fossil fuels or dealing with it. Perhaps some system could purge the atmosphere of surplus greenhouse gases?

The trouble with the global warming debate is that it has become a moral crusade when it's really an engineering problem. The inconvenient truth is that if we don't solve the engineering problem, we're helpless.

DCSBN; Moving forward in 2006

2006-06-14T11:30:00.000-04:00

The Washington DC Sustainable Business Network is preparing a number of educational/networking events in the coming months, including Building Support for Sustainable Business Practices (June 22) and launching a Sustainable Cuisine series at which you will be able to see, hear, smell, touch and taste sustainability in action. Doing the right thing never tasted so good!

There never has been a better time to join the network because members save on each of these exciting events.

DCSBN Offers Grassroots Advocacy 101: Building Community Support for Sustainable Business Practices

2006-06-09T17:37:00.000-04:00

Heather Sidwell, an Associate at McDermott Will & Emery LLP and one of the authors of DCSBN's "Legal Ease" spoke on how other communities have embraced sustainable business practices and how businesses can become effective advocates for change and build interest in sustainable business practices with community leaders in Maryland, Virginia and the District of Columbia.

Regulatory pre-emption, reduced costs (of compliance and fines), tax incentives, branding and image enhancement and increased speed to market are just some of the business driving benefits of social responsibility.

Find out what the opportunities are, and how you can work with local legislators to help them understand the issues - and create opportunity for your business and raise the standards.

When: June 22; 6:00 PM - 8:00 PM (happy hour follows presentation)
Where: Hotel Madera, Washington DC
More information

DCSBN Presents the Business Case for CSR

2006-05-17T21:23:00.000-04:00

The postulate was simple: is corporate social responsibility a new way of thinking about “doing well by doing good?” Or, is CSR simply privatizing socialism by demanding corporations do something more what they should be doing: maximizing profits for investors?

John Friedman represented the Washington DC Sustainable Business Network, and offered the “business case” to be made for corporations pursing social good.

Listen to the debate

View pictures of the debate.

Several cited Milton Friedman's famous statement that business exists to make as much money as possible 'within the rules of the game' as a case against CSR, Friedman (John) pointed out that 'the rules' must include the rules of the marketplace, society and stakeholders. "The world's best manufacturer of buggy whips conformed to the law but still missed an evolving market with the introduction of the automobile."

In response to a postulate that business was cleaner and more socially responsible than ever before and therefore continued efforts were unnecessary, Friedman pointed out that "giving companies the advice that the improvements that they have made over the last century are 'good enough' to keep them ahead of their competition is, on its face an argument against capitalism and is anti-American competitiveness in the market place."

The debate took place at the America's Future Foundation in Washington, DC.

The Business of Green

2006-05-17T13:23:00.000-04:00

The New York Times published a collection of articles as a Special Section entitled "The Business of Green" on Wednesday, 17 May 2006. Within the section, Times contributors discuss business trends toward more environmentally-friendly operations from conservation-minded organizations and companies. The articles describe how a focus on conservation, ecology and environmentalism can be good for the planet, good for people and good for the bottom line.

The Special Section can be accessed at The New York Times' website:
http://www.nytimes.com/business/businessspecial2

Shareholders Show They Care

2006-04-28T12:19:00.000-04:00

Social Investment Forum is reporting that shareholder resolutions requiring environmental, social and economic responsibility are on the rise.

An estimated 180 social and environmental shareholder resolutions either already have come to votes or are scheduled to be decided at U.S. corporate meetings for the first half of 2006, compared with 169 for the first half of 2005.
The number of corporate governance resolutions that have come to votes or are under consideration at U.S. corporate meetings through June 30, 2006 stands at about 400, up from 383 for the corresponding six-month period in 2005.

The Forum's analysis is based on data tracked and supplied by the Social Issues Service and the Governance Research Service of Institutional Shareholder Services (ISS), a member of the Forum.

Key trends in social and environmental resolutions identified by the Social Investment Forum include:
global warming (32 resolutions filed for January 1 to June 30 meetings, compared with 34 for the same period in 2005 -- but with 2006 proponents withdrawing 12 proposals after reaching agreements with management); toxics and pollution reduction (22 resolutions filed in 2006, compared with 12 in 2005); and calls for disclosure of political contributions/donations (43 resolutions filed in 2006, compared with 39 in 2005).

A survey conducted for the Center for Political Accountability found that 85 percent of American shareholders are worried that company political spending "puts corporations at legal risk and endangers" shareholder value.

Program Note: DCSBN will be hosting a networking and information session on the legal issues surrounding sustainability for Washington DC, Maryland and Virginia. Check this blog and our homepage for more information.

Best Practices in CSR 2006 Edition Available

2006-04-18T12:13:00.000-04:00

In an effort to keep people informed about the latest resources to support their knowledge and implementation of corporate social responsibility and sustainable development, DCSBN is pleased to announce that the 2006 edition of PR News’ Guide to Best Practices in Corporate Social Responsibility is now available.

Billed as an "insider’s" guide to PR’s role in Corporate Social Responsibility, the book is aimed at "communications professionals at all levels" and includes informaiton on executing, maintaining and improving existing CSR initiatives.

For more information about The Guide to Best Practices in Corporate Social Responsibility, call 888-707-5814 or click here.

*DCSBN does not endorse products or services. This book has not been reviewed by DCSBN. Members of the network have contributed to it and are credited in the volume.

What Does $398 Million Say about Social Responsibility?

2006-04-18T11:00:00.000-04:00

Proponents of social responsibility eagerly point to examples where doing good and doing well seem linked. The argument is made again and again that consumers, employees, investors and communities all prefer socially responsible companies. As Rod Tidwell would say: "show me the money!"

So what does it say when a company makes its biggest profit ever - and it's chairman recieves one of the most generous retirement packages in history - but the company has relatively low scores for environmental stewardship in an industry that also has low scores.?

ExxonMobil recently replaced Wal-Mart as the nation's most profitable business, leading the Fortune 500 list. Retiring chairman Lee Raymond is recipient of one of the most generous retirement packages in history, nearly $400 million - including pension, stock options and other perks, such as a $1 million consulting deal, two years of home security, personal security, a car and driver, and use of a corporate jet for professional purposes.

Let's Clear the Air about Clean Air

2006-04-10T11:18:00.000-04:00

You cannot regulate morality, but what happens when regulation shows a positive impact and self-regulation seems to fail? Often the result is a sense that regulation is required to drive social change. This may be happening on Capitol Hill, where recent studies show that emissions from power plants of sulfur dioxide (SO2) and nitrogen oxides (NOx) have fallen dramatically in recent years, but carbon dioxide (CO2) emissions increased. Currently the U.S. has stringent regulations for SO2 and NOx; and relies on voluntary compliance for CO2.

Trends from 1990 to 2004
SO2 - 44%
NOx - 36%
CO2 + 27%

Last year the U.S. Senate adopted a resolution calling for mandatory emission limits. "Voluntary approaches for curbing greenhouse gas emissions are not working," states the report from GreenBiz.

If the power industry wants to pre-empt regulation (and the associated costs and burdens) it would do well to take a lesson from the cement industry. Under the leadership of the World Business Council on Sustainable Development, the cement industry has made real and aggressive efforts to reduce all emissions, including CO2.

Don't Just Read the Blog; Get Involved with DCSBN

2006-04-04T19:27:00.000-04:00

The Washington DC Sustainable Business Nework (DCSBN) is pleased to announce our new newsletter 'Sustainable Solutions' that features:

recent and coming events
special offers for DCSBN members
new members
the latest CSR headlines
how to get involved

Find out more about what's going on, and how you can get involved.

Defining the Capitol of Capitalism

2006-03-20T09:27:00.000-05:00

In our complex global world with differing standards and reference frames, it is similarly hard to define one universal truth for what 'social responsibility' means. As the capitol of capitalism, how we define a sustainabile Washington DC will have an impact beyond the metro-area, beyond the country and perhaps to the world at large. If Washington is to have its name alongside 'Rio' and 'Kyoto' when people think about socially responsible business, then we must answer these fundamental questions.

For some, social responsibility is a path to success.
Others view it as 'giving back' once a certain level of finanical success has been attained.
Many believe passionately that companies are responsible for raising the bar on issues like human rights and wages.
Others feel this is a lack of respect for, and direct violation of local norms and customs.

The DCSBN is the forum to discuss these issues. Join us at a meeting, or here on our blog. We welcome all thoughts and opinions, as long as they are respectful of others and on the topic.

Living Wage Bill Passed by DC City Council

2006-03-08T13:19:00.000-05:00

The D.C. Council passed a "living wage" bill March 7. The "Way to Work" Bill 16-286, guarantees a minimum wage of $11.75 an hour to D.C. government workers and residents who work at businesses that receive city subsidies or tax abatements. (Living wage ordinances require employers to pay wages that are above federal or state minimum wage levels.) The bill also strengthens requirements for city contractors to give hiring preferences to D.C. residents and establishes a job training and employment center for city residents. Mayor Anthony Williams, who has long been a proponent of the bill is hailing the move by the council.

Proponents of living wage laws say they are a response to a growing number of Americans who work but are unable to make ends meet. Low income workers are dependent upon minimum wage jobs that have not kept pace with rising housing, health care, and other costs of living. According to the DC Fiscal Policy Institute, one in six District residents has a “poverty level” wage, which means that they earn too little money to lift a family of four above the poverty line even if they work full-time.

The Economic Policy Institute states that living wages have been enacted in some 120 jurisdictions across the country. Again, according to the DC Fiscal Policy Institute, ".......studies have been done in more than 20 jurisdictions that have living wage laws and they generally point to the same conclusions: 1) Living wages laws have a minimal fiscal effect on businesses — less than a 1 percent increase in contract costs across the board. Businesses generally absorb these costs without laying off workers or avoiding government contracts altogether; and , 2) While the effect is minimal there is some effect, particularly for human services contracts, which depend on government to help cover their increased contract costs."

Those opposed to living wage legislation site studies of minimum wage laws in countries around the world showing that fewer people are employed at artificially higher wage rates. Moreover, they claim unemployment falls disproportionately on lower skilled workers, younger and inexperienced workers, and workers from minority groups. The new Cato Institute study cites data showing job losses in places where living wage laws have been imposed.

The Cato Institute sites "decades of research [that] have shown that the minimum wage harms the least-skilled workers from poor families while heavily benefiting young workers from middle-income households. Several studies critical of the living wage come to similar conclusions. The main beneficiaries of the living wage are public-sector unionized employees because of the reduced incentives for local governments to contract out work. Instead of exploiting grievances of the marginally employed against "greedy" employers, advocates for the poor should focus their energies on building the skills of the poor."

What are your thoughts? Will the new living wage passed by the DC City Council make a difference in the lives of working families here in the District, or will it benefit only a few, while driving prices up and making it harder to find work?

Make Your Organization Energy Smart: Panel of Experts Discusses Practical Energy Strategies for Organizations

2006-03-01T09:36:00.000-05:00

By some estimates, buildings account for nearly half the energy consumed in the United States each year and half of America's greenhouse gas emissions.

The DCSBN held a CSR Toolkit event at the Amicus Green Building Center in Kensington, Maryland on 28 February 2006. Over 30 people attended a panel discussion and tour entitled “Make Your Organization Energy Smart: Panel Experts Discuss Practical Energy Strategies for Organizations.” The event was cosponsored by Amicus Green Building Center, My Organic Market, The Clean Energy Partnership and The Green Building Institute.

Guest experts included Mr. Jason Holstine, founder and president of Amicus Green Building Institute, Mr. Bud Jose of the Calvert-Jones Company, Ms. Kathryn T. Prigmore of HDR, Mr. Gary Skulnik of the Clean Energy Partnership, and Mr. Mark Smallwood of My Organic Market. These “smart energy” experts explained the present and future impact of rising energy prices, highlighted lagging governmental energy and environmental policy responses, and described the impact on the nation from high heating oil and natural gas costs, shortcomings in proactive green building policies, and the resulting pressure on national security forces to secure global energy reserves. They quantified the costs to national security, the national economy, and to individual companies of conducting “business-as-usual.”

From their perspectives as mechanical contractors, architects and building engineers, clean energy advocates, and retail business owners and operators, the panel called for a paradigm shift and offered strategies to help businesses become more energy smart to positively impact their bottom line and the community. In particular, they explained the benefits of making businesses more energy efficient and provided real-world examples, options and resources.

To see a complete synopsis of their presentation and their specific, bottom-line oriented solutions, please visit the DCSBN website. While you are there, check out our other events, including the Building a Better World Speakers Series, tours of sustainable businesses, our Sustainable Cuisine events as well as our annual 2006 CSR Symposium - Washington DC’s premiere sustainable business event.

Speakers Series Features Stephen Young

2006-02-26T16:02:00.000-05:00

Stephen Young, global executive director of the Caux Roundable and author of the thought-provoking 'Moral Capitalism' joined members and guests of the DC Sustainable Business Network at the Hotel Helix in Washington DC as part of DCSBN's ongoing Better World Through Business Speakers Series on March 2, 2006.

"Capitalism is a relatively new phenomenon," said Young who went on to explain that the notion of working hard for the sake of working hard (often called the protestant work ethic) in America is different around the world. The overlying culture impacts the way capialism is implemented. He offered that 'American capitalism is different than Japanese capitalism, which is different than Chinese capitalism, which is different than Mexican capitalism.' The trick is the change the culture if you want to change the way capitalism is implemented.

Young also encouraged DCSBN to be bold early adopters and that the 'tipping point' really required people of character and innovation. "You cannot change this city - my city (Young was born and spent some of his youth in Washington) unless you change the culture." He cautioned that this is not easy in a city steeped in a culture in which prestige, power and wealth are the cultural hallmarks of success.

As to the question of whether or not there was a business case for socially responsible business, Young pointed out that the trust that is built among co-workers and the basis of the 'wealth of nations' is a good analogy for the interdependence of employers with employees, customers, suppliers and society as a whole.

Interested in finding out more about the work of Steve Young and the Caux Round Table? Send a note to Jed Ipsen at ipse0001@umn.edu to be added to their e-list.

DC Green Building Act

2006-02-17T08:45:00.000-05:00

From Metro Connection, WAMU on 17 February 2006:

The DC City Council is contemplating a bill that would make the District one of the most progressive jurisdictions in the country when it comes to green construction. In its draft form, the measure calls for imposing tough environmental mandates not only on public development - which is becoming common - but on private development.

Link to bill: http://www.dccouncil.washington.dc.us/images/00001/20051121092037.pdf.

What do we mean by Sustainable Business?

2006-02-14T16:39:00.000-05:00

As a network that promotes the concept of sustainability, people often ask us what we mean by sustainable business. While we admit the practice is complicated, the basic concept is fairly straight forward.

Sustainability deals with how best to configure society to keep it productive over the long term. It is therefore a systemic concept, relating to the economic, social and environmental aspects of society. A business model informed by corporate responsibility principles takes its cue from the sustainability movement – namely, that companies should focus on triple bottom line performance: on the impacts to people, planet and profit. Quite simply, corporate responsibility (CR) is the practice of sustainability by business.

Today’s cutting-edge companies understand that balancing the needs of stakeholders with the drive for profit, and positively impacting the communities where they live and work, is essential to building a successful and sustainable business. Further, by integrating CR principles into their business model, companies can manage their operations to ensure their own continued success by minimizing costs, attracting and retaining top-notch staff, minimizing risk and liability, and successfully competing for the future by developing tomorrow’s more sustainable products and services.

As The World Business Council for Sustainable Development (WBCSD) -- a coalition of 180 international companies united by a shared commitment to sustainable development -- states :"As an engine for social progress, Corporate Social Responsibility (CSR) helps companies live up to their responsibilities as global citizens and local neighbors in a fast-changing world."

At DCSBN we maintain that it is time for business, the most powerful institution on the planet, to fully embrace the challenges and opportunities presented by sustainability and CR – for their benefit and for the benefit of the National Capital region.

Short-term Profit versus Long-Term Sustainability: CSR & Successfully Competing for the Future

2006-01-27T11:04:00.000-05:00

As an article in yesterday’s Washington Post, entitled Opportunity for Corporate Fraud Has Shrunk – But it’s Still There (Thursday, January 26, 2006; D01) says, “Despite new laws and regulations, companies still face enormous pressure to meet short-term financial goals, creating a powerful motive for accounting fraud. Outsized executive compensation grows by the year, offering another rich incentive to cook the books.”

Even when companies perform well in an increasingly competitive business environment, it is not uncommon for their stock prices to fall when they do not exceed Wall Street’s expectations. The intense pressure to show profits, the relentless push to show continuous growth, no matter what, has no doubt fueled the spectacular failures of companies like Enron, Worldcom, Global Crossing, Adelphi, and others. Pressure of this kind can lead executives to take actions that bring short-term reward, at long term cost.

Much, but not all, of the issue may be boiled down to a question of corporate ethics and leadership. What are the priorities of a given company? Are they solely to maximize executive compensation and shareholder value? Or, is the business focused on doing the right thing, which pays off by building a brand that engenders customer trust and loyalty? The question is how seriously is a culture of doing the right thing embedded within the DNA of a given corporation?

This is where the issue of corporate social responsibility (CSR) comes in. CSR, as readers of this blog know, is the idea that business has an intrinsic responsibility to manage its processes so as to limit damage to economic, social, and environmental systems; and further, that overall business strategy should be aligned with larger social goals. Even though Enron talked a good CSR game in its day, it’s clear that CSR principles were not really integrated into its business strategy and operations.

At DCSBN we believe CSR, at its core, is representative not just of ‘doing the right thing,’ but as an increasing amount of evidence shows, it’s good business practice. In some senses, CSR can be considered an enlightened form of self-interest: ‘Do good and you shall do well.’ But, perhaps its even more important to understand that CSR is about successfully competing for the future: Today’s cutting-edge business leaders are convinced that a focus on a triple bottom line of people, planets and profit will help them realize enhanced performance at lower cost, appeal to a growing number of environmentally- and socially-conscious consumers, attract and retain top-flight talent, proactively mitigate risk, and take advantage of sustainability-driven innovations to develop tomorrow’s markets.

Stop and think about this last point for a moment: Five years ago, caught in the grip of SUV-fever, few would have predicted the current demand for hybrid automobiles. Today, as they are outpaced by nimbler competitors like Toyota and Honda, which offer cheaper yet reliable cars that get great gas mileage, Ford and GM managers are probably wishing they had in the words of a recent Arthur Little report ‘seized the innovation high ground,’ to “create new market space, products and services which are driven by underlying social, environmental, economic trends.”

What Is A Sustainable Business?

2006-01-25T19:00:00.000-05:00

Making organizations function more profitably, with greater concern for their employees, stakeholders and communities while preserving and protecting the environment in which they operate is a consistent theme of sustainable business initiatives. But defining exactly what we mean by sustainable can be very challenging. At the least, differing ideas of what makes business sustainable may make it difficult to communicate good ideas and, worse, could undermine otherwise valuable initiatives before they have a chance to get off the ground.

The hopes and aspirations of entrepreneurs, leaders, strategists and the like have often faltered because those visionaries failed to adequately define their objectives clearly. This lack of attention to a common language subjects those in the trenches who are trying to accomplish the mission objectives to misunderstand the purpose and direction of their efforts. We are in the business of making corporations, companies, firms, nonprofits, and government entities more sustainable, the kinds of places where we would like to work and with whom we would like to do business. As such, it is up to us to make clear what we mean when we speak about sustainability in the business context. We at the D.C. Sustainable Business Network invite you to use this space to describe what you understand to be sustainable business practices. We hope that this forum will allow you to voice what you mean when you say a business is operating in a sustainable way. We plan to monitor this site routinely looking for new ways to improve and update our own thoughts on sustainable business. We hope to use your ideas for that purpose.

To get you started, here is a short sampling of sustainable business attributes taken from a quick Internet search (starting with our own DCSBN website). We invite you to share your comments and thoughts so that we may all hone and refine what we understand to be sustainable business.

Sustainable Business Is:
Managing business processes to produce an overall positive impact on society
Capacity building for sustainable livelihoods and communities
Business being accountable to its stakeholders
Doing well by doing good
Wealth creation
Building sustainable businesses and communities

Why Practice CSR?
Enhanced reputation and brand loyalty
Reduced risk profile
Decreased regulatory burden
Employee recruitment, motivation, and retention
Learning and innovation
Competitiveness and market positioning
Improved operational efficiency
Increased license to operate

Sustainable Business Areas Include:
Agriculture/ Organic Products
Alternative Fuels
Brownfield Remediation
Building Design and Construction
Corporate Accountability, Ethics & Governance
Eco-Design/ Industrial Ecology/ Management
Ecological Economics
Economic Development
Economic Prosperity
Ecotourism & Hospitality
Education
Energy Conservation
Environmental Quality
Forests
Green Building Design
Green Procurement
Office Maintenance
Pollution Prevention
Social Equity
Social Investing
Sustainable Development
Sustainable Technology
Transportation & Alternatives
Waste Reduction/ Recycling/ Composting
Water Conservation

DCSBN at Hotel Rouge!

2006-01-13T14:55:00.000-05:00

The first DCSBN event of 2006 was an overview of the DCSBNk and what we are up to in 2006 followed by an evening of networking at the Hotel Rouge in Washington DC . Over 75 people attended a short presentation about the network and the networking and socializing lasted for several hours thereafter in lounge as attendees enjoyed the hospitality of one of DCSBN's newest members, Kimpton Hotels.

DCSBN will offer more social and learning opportunities throughout the year. Check out our web site for the Building a Better World Speakers Series, tours of sustainable businesses, our Sustainable Cuisine events as well as the 2006 Spring CSR Symposium - DCSBN's annual and Washington DC's premiere sustainability event.

"Getting Smart At Being Good"

2006-01-03T14:47:00.000-05:00

From Time Magazine

The rapid growth and mainstreaming of corporate social responsibility (CSR) in corporate America was recently underscored by Wal-Mart's announcement that it would offer employees better medical benefits, invest $500 million annually in energy efficiency, and slash its solid waste and greenhouse-gas emissions.

While much of the business culture has publicly embraced the notion that CSR is good for business, there remain some critics, such as Cypress Semiconductor CEO T.J. Rodgers, who maintain that shareholders entrust managers solely to maximize long-term returns. Rodgers has been an important part of the debate over CSR in the past decade, including having recently joined Milton Friedman and Whole Foods Market CEO John Mackey to debate the issue in Reason magazine. Whereas Rodgers assailed the notions behind CSR, Mackey--himself an avowed libertarian--argued that his approach brought Whole Foods' investors much more wealth than the approach used by Cypress, which in fact saw losses for three years before turning a small profit in 2004.

The business argument behind CSR is also articulated by Nike's vice president for corporate responsibility, Hannah Jones, who says, "Don't do it as a reputation-management tool. Do it because it genuinely contributes to your business strategy." This means not only working to protect the brand, as Nike has done after long being the subject of protests, but also attempting to secure the future--as in the case of corporations' response to AIDS, a disease that Trevor Neilsen of the Global Business Coalition Against HIV/AIDS says "is like a laser-guided missile targeting the most productive segments of our economies and societies."Proponents also say that CSR can help cultivate new markets, pointing for example to Crest's gains in the Hispanic market after beginning a national dental-health program for underserved children. Other benefits from CSR, according to proponents, include the ability to raise standards and to serve as an inspiration to the work force.

Sneak Peak: New Sustainability Guidelines from Global Reporting Initiative

2005-12-22T16:32:00.000-05:00

December 21, 2005 - The Global Reporting Initiative has launched a new Web site to host the latest version of its Sustainability Reporting Guidelines, known as G3.

The G3 Guidelines will be released in draft form on Jan. 2, 2006, for a public comment period. Readers will be able to submit their comments on the G3 Draft via the Web site until the period closes on March 31, 2006. The site will also feature an informal discussion forum for people to exchange ideas about the G3 Guidelines.

The new draft guidelines are the result of nearly a year's worth of research, development, and consensus-seeking by multi-stakeholder working groups, each assigned to focus on different parts of the guidelines. Since the GRI Sustainability Reporting Guidelines were last released in 2002, hundreds of organizations have used the guidelines as the basis for their reporting, and thousands of stakeholders have accessed information in reports issued by the organizations. Based on feedback from practitioners from reporting organizations and from report user groups, GRI designed a process to update and improve the 2002 guidelines. The final result will be the third generation of GRI Guidelines, known as G3.

The G3 Web site features information about the G3 development process, who has been involved, and more details on the time line for completion. The site is also configured to take registrations from anyone interested in attending one of a dozen Sneak Peek events planned to roll out in major cities around the world in the New Year.

US Chamber of Commerce President on the Value of Long-Term Planning/Reporting

2005-12-05T12:17:00.000-05:00

The value of long-term planning and reporting received a boost from the President of the U.S. Chamber of Commerce last month.

U.S. Chamber of Commerce President Thomas Donahue has come out in opposition to companies' and Wall Street's fixation on quarterly earnings, which he says has been exacerbated by the more aggressive regulatory environment in the wake of Enron and other corporate scandals. Donohue is urging management to eliminate quarterly earnings guidance, while calling on analysts to begin focusing more on long-term growth issues. The Chamber of Commerce has become the Securities and Exchange Commission's (SEC's) sharpest critic since former chairman William Donaldson led an aggressive crackdown on securities-law violations.

From "Lobby Group to Denounce Quarterly Obsession" Financial Times (11/30/05)

Former VP Al Gore's Investment Strategy - Sustainable Business

2005-11-15T11:15:00.000-05:00

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

2005-11-09T13:18:00.000-05:00

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

2005-11-02T10:55:00.000-05:00

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?

It's Not a Trade-Off

2005-10-31T12:14:00.000-05:00

Charles O. Holliday, Chairman and Chief Executive of Dupont, and Chairman of the Business Roundtable's Environment, Technology and the Economy Task Force, agrees with our assessment that Steven Pearlstein missed the point in his recent article "Social Responsibility Doesn't Much Sway the Balance Sheet,"

As said by Holliday on Monday, October 24, “The initiative is not about corporate social responsibility but sustainability. Sustainability is no longer a trade-off between what's good for business and what's good for the environment. Leading-edge practices and products must accomplish both. Sustainability must be built into the products we create and the processes we use to create them.” (Full text of his reply can be found here: http://www.washingtonpost.com/wp-dyn/content/article/2005/10/23/AR2005102300901.html).

According to their website, the “Business Roundtable’s S.E.E. Change Initiative (Social. Environmental. Economic.) will promote better business and a better world by encouraging Roundtable members to adopt sustainability principles as a business planning tool and to showcase the results achieved.”

Corporate Social Responsibility: Good for Business, Good for the Community

2005-10-30T14:19:00.000-05:00

Steven Pearlstein’s article Social Responsibility Doesn’t Much Sway the Balance Sheet (Wednesday, October 5) concludes that there is no business case for corporate citizenship, or what is commonly referred to as corporate social responsibility (CSR), while encouraging increased government regulation. Mr. Pearlstein’s comments are based largely upon the conclusions reached in the recent book “The Market for Virtue” by David Vogel. We believe these conclusions are both misguided and outdated.

CSR pays off, according to two of the most definitive studies on the subject. Consider: Innovest Strategic Value Advisors looked at 60 research studies over six years, finding that 85 percent showed a positive correlation between CSR and financial performance. While Mr. Vogel cites what many consider to be the most significant paper on CSR – Marc Orlitzky’s study of studies, which found a positive correlation between CSR and financial performance – he does not factor these findings into his discussion.

As proof of the lack of effect CSR has on a company’s performance, Mr. Pearlstein mentions that many companies, such as Enron, Fannie Mae and Merck, were once considered good corporate citizens. Let us be clear: CSR is not about publishing glossy reports which tout a company’s understanding of the need to be a good corporate citizen, or issuing press releases or developing commercials highlighting a few small initiatives, or corporate philanthropy. True CSR is about the alignment of business strategy and operations with the needs and desires of all stakeholders, including shareholders, employees, consumers, investors, and local communities.

The movement toward socially responsible business practices (in commitment and deed not just in rhetoric) helps to ensure that capitalism serves as a rising tide that raises all boats rather than as a driver for selfishness and personal gain. And for that, the Business Roundtable – and other groups and companies – should be lauded for their efforts rather than dismissed.

Full Text of this article can be found here: http://www.dcsbn.org/news/news_detail.cfm?id=10

The full text of this article was submitted to the Washington Post by the Executive Director and the Board of Directors for the Washington DC Sustainable Business Network

Building a more sustainable DC

2005-10-28T08:31:00.000-04:00

Many DC-area businesses are engaging in socially responsible practices as part of their business models, committing not only to 'give back,' but to link their success and development with that of the Washington DC region (and the world.) The Washington DC Sustainable Business Newtork (DCSBN) will highlight those businesses and serve as a network that allows like-minded people to share ideas, experiences, and successes. Welcome!

Vanishing Middle Class

2005-10-27T22:10:00.000-04:00

Mounting evidence shows that CSR pays off. However, it is difficult for many companies to do the right thing when faced by intense competitive pressure to reduce costs. As the Washington Post writes in The Vanishing Middle, Delphi Corporation’s recent bankruptcy will probably force them to lay off thousands, and serve as an excuse to lower their worker’s salaries and benefits in the future. This is a glaring example of America’s disappearing blue-collar middle class. The economic argument is simple: When labor costs are roughly ten times cheaper in Mexico or China, companies must decide whether to pay their workers a good wage with benefits – the kind of system that saw the rise of America’s great middle class in the 1950s, or to slowly but surely loose ground to competitors who don’t face the same labor costs. What can we do?

I am by no means advocating that we turn back the clock on global trade, as a growing number of countries are taking advantage of an increasingly open and more fair trading regime to lift millions of their citizens out of the kind of crushing poverty Americans cannot imagine. While trade should be carefully managed so that we limit social and environmental damage, it is improving countless lives. I have seen this first-hand in my travels and work in developing countries.

Until Washington decides to take a tougher and more proactive stand with regards to trade, the question still remains, what can we to do?

One answer is to promote those companies that are doing right by their workers, by, for example, paying them a living wage. While this may mean their products are not competitively priced as they do not externalize their costs on to you and I – as we have to pay more to cover the cost of Medicaid, which growing numbers of out of work or under-employed people have to turn to – many consumers who care about such issues are willing to pay more. In economic jargon, this is known as “willingness to pay.” A large number of Americans are willing to pay for products and services from socially- and environmentally-responsible companies. However, what companies like these need is an advocate to help level the playing field, by letting consumers know where they can choose to spend their money. That’s one of the things the Washington DC Sustainable Business Network aims to do – promote those companies that are doing the right thing.

The unique challenges, and opportunities of building a more sustainable DC

2005-10-27T16:47:00.000-04:00

Washington DC is often accused of being a 'transitional' town, and yet many businesses have stayed and become area institutions. Instead of lamenting the dynamic flow of people and ideas, the Washington DC Sustainable Business Network believes that this is one of the unique opportunities for the nation's capital. The wealth of ideas, international flavor and unique combination of government, industry, philanthropy and academia are a recipe for building a more sustainable Washington-DC area.

Welcome.