Showing posts with label Corporate Social Responsibility. Show all posts
Showing posts with label Corporate Social Responsibility. Show all posts

Sunday, April 5

Ethics Pledges and Buy Local: Efforts to Revive the Economy

Being immersed in the financial turmoil with daily news that failed to show any signs of comfort, I wish to extract from the community, efforts that would bring hope and encouragement. In this entry, I examined a post entitled “Kudos to Dove for its Campaign to Real Beauty” by Lauren Bloom, founder and CEO of Elegant Solutions Consulting. Bloom drew attention to how Dove shed beauty stereotypes through its campaign. In response, I discussed on “ethics pledges”, a growing phenomenon in the United States, which added onto Bloom’s discussion of Dove’s ethical business practices. Next, I responded to a post entitled “Ethics of Supporting Your Local Economy” by Chris MacDonald, Ph.D., professor at Saint Mary’s University in Halifax. MacDonald criticized on the public’s “buying local” actions in response to the economic crisis with sound arguments, which I did not fully agree with. My responses to the posts and links to the two blogs can be found below.

Kudos to Dove for its Campaign to Real Beauty

Comment

With no doubt, I am as sick of the whole financial crisis as you are. News on the minimal progress (or not) of acts to help revive the economy is getting on my nerves and I am glad that you brought up the actions of a company that walked the ethical path. Dove’s self-esteem fund, Campaign for Real Beauty (see left), definitely injected a positive note into the business realm. I agree perfectly to your description of a particular beauty ideal, “a swizzle stick with foot-long lashes, artificially bronzed skin, a perpetually windblown mop of hair, kamikaze nails and teeth that look like well-glazed sugar cubes. Even professional models don’t really look ‘like that’ until they’ve been worked over for hours by a small army of stylists, then digitally edited, airbrushed and distorted into ‘perfection’.” Dove made a bold move to free ladies out of beauty stereotypes and promoted the idea to embrace all definitions of beauty.

In fact, adding on to your encouraging discussion as well as relating to a recent post on my blog about the inattention to ethics and social responsibility in many MBA programs, I would like to bring up evidence on the escalating awareness society has on corporate social responsibility issues. A growing phenomenon known as the “ethics pledge” had drawn society’s notice on the subject. The Graduation Pledge of Social and Environmental Responsibility originally from Bentley University, Massachusetts, advocates the idea “to explore and take into account the social and environmental consequences of any job one consider and will try to improve these aspects of any organizations for which one works.” The organization provides materials and resources to teach students how to set up on-campus campaigns and helps students navigate tough choices that might come across during their careers, while keeping in mind commitments to ethics and social responsibility. More than a hundred schools and colleges are using the pledge.

Another pledge which is catered to business leaders, the Business Ethics Pledge, founded by Shel Horowitz, begins with “I pledge allegiance, in my heart and soul, to the concepts of honesty, integrity, and quality in business.” It allows leaders to sign electronically and advertise their businesses online by making the ethical vow. The pledge was established based on the belief that “businesses are more likely to succeed when they base themselves in ethics—in honesty, integrity and quality.” It is about changing the world and creating a climate where businesses are expected to behave ethically, and the fact that executives who try to drag their companies into the unethical swamplands will find that nobody is willing to carry out their orders. Of course, these ethics pledges are not and will not be the cure to economic turmoil. However, by encouraging pledge of allegiance to change the culture of doing business may not be such a bad idea. Just like Dove’s Campaign for Real Beauty, it has to start somewhere.

Ethics of Supporting Your Local Economy
Comment

Your post brought about sound arguments against encouraging the public to support local small businesses instead of contributing to national corporations’ economic activities, with response to an article in the Wall Street Journal: How the Locals are Trying to Save Small Businesses. However, I am hesitant to concur in your reasoning. First, you assumed the idea of supporting local businesses to be people’s notion that “economic benefit to own community is more important than economic benefit to other people’s communities,” and that “stores and factories and jobs in your own community might well be more important to you than stores and factories and jobs in other people’s communities.” It seemed unfair to presume that was the attitude behind the public’s campaign of “buying local” (see right). Helping local small businesses contributes to the national budget just as it would if the money goes to national corporations. In addition, I believe the campaign could even boost national spending in the sense that it arouses the public’s emotional connection with its own community, hence more willing to spend in support of local businesses.

Second, you suggested if every community engages in “buying local”, there will be “little change in net purchasing, but there could be serious reductions in efficiency and hence net decrease in total utility.” Yet in fact, I would say the campaign serves as a means to encourage and promote purchasing from local merchants, not by any means forcing people to do so. Using the example in your post, yes, the campaign suggested people in Town A gets good shirts and lousy pants, while people in Town B gets good pants and lousy shirts. However, it did not impose a rule saying people in Town A cannot buy pants from Town B and vice versa. If there is a need, people are free to spend their money however they desire. I believe the campaign acts as a medium to draw people’s awareness to locally produced products and encourages merchants to learn from each other to increase their products’ competitiveness in the market. For the sake of illustration, going along with your example, the campaign allows people in Town A to recognize the existence of businesses that produce pants locally as well as gave an opportunity for those merchants to learn from Town B’s quality pants production. All in all, I definitely understand your concerns, however, I do see a lot of positives that come along with “buying local”.

Sunday, March 8

CSR commitment: Go Green Attempts by Google and Ford

For the last few weeks, I drew attention to unethical practices in the recent business realm. This week, I hope to bring a more positive note to the issue of business ethics. In this entry, I used Google and Ford Motors as examples to demonstrate encouraging corporate practices. I examined a post entitled “Planet 2050” by Dr. Leslie Gaines-Ross, Weber Shandwick’s Chief Reputation Strategist, who strongly promoted corporate social responsibility through the use of clean energy. Ross also brought out the issue of reputation building through corporate social responsibility. Next, I responded to a post entitled “Outsourcing Pollution, With No Thought for Ethics” by Shel Horowitz, who is an author of several business related books and is hoping to emphasize in his blog: ethics as a success driver. Horowitz’s post discussed on companies outsourcing to countries such as China and India, in hopes to take advantage of the low cost production and absence of anti-pollution laws. My responses to the posts and links to the two blogs can be found below.

‘Planet 2050’

Comment

Your post provided sound arguments against skeptics who argued that green business would be an early casualty of the credit crunch. Without a doubt, “the fit for purpose company will be an environmental leader, ready to embrace a new world order.” And the new world order is running in the trend of going green and environment sustainability. This is not a temporary trend. Companies who advocate the trend of going green and prove success in its environmental protection practices would excel and lead the industry. In addition, I agree completely that “corporate responsibility is a fundamental element of corporate reputation-building.”Allow me to add on to your discussion using Google as an example.

Google released its Clean Energy 2030 plan (see left, above) last fall. It says the country can generate 30% of its electricity from renewable sources, mostly wind and solar, by 2030, and in so doing replacing all coal and oil electricity generation, and about half of that from natural gas. Google itself has venture capital investments in start-ups in sol
ar power, wind and wave energy. The goal to generate 30% of electricity from renewable sources might seem overreaching, and critics argue that the company neglects shareholder value. However, at the Wall Street Journal’s ECO:Nomics Conference in Santa Barbara, California, Eric Schmidt, Google’s CEO, insisted the net benefit of Clean Energy 2030 to the U.S. economy would amount to around $4.4 billion. He believes that the recent financial turmoil should not be a reason to put the plan on hold. “Change does not occur when things are going well,” he says. “Change occurs when people are scared. This is the time to have this conversation. Shareholder value in a company is created at the end of everything we do.” Utilizing renewable sources, although with high initial capital investment, is more profitable in the long term. Schmidt says, “Green energy, done right, is more profitable than the old kind of energy. Lower costs cause more earnings for shareholders.”

In addition, the Clean Energy 2030 plan does not only build on energy saving issues. As the plan develops, Google claims that around 9 million jobs will be created. The news is a strong boost to society morale amongst the recent announcements of layoffs in the market.

I believe Google’s active role in advocating clean energy expla
ins why the company is continually ranked first in the list of 100 Best Companies to Work For and has an exceptionally high reputation in the industry. Its reputation is tied to its commitment in corporate social responsibility.

'Outsourcing Pollution, With No Thought for Ethics'

Comment

Your post is of intriguing thought. It has never occurred to me that corporations are “shifting our manufacturing operations overseas, not only because of lower costs, but also because these countries do not have effective anti-pollution laws.” It is especially true to say, “when there’s money to be made, it’s understood that you want to be among the profits.” During the recent economic turmoil, news such as the peanut salmonella outbreak and the Satyam scandal, exemplifies corporations and executives’ single mindedness on boosting sales and profit making. While it is true that some corporations rank profits over ethical values, I would like to use Ford Motors as an example to demonstrate its commitment to the environment and how it upheld corporate social responsibility over the years.

The world is all about going green and saving the environment now. People are shocked by the fact that the environment they are living in might not be able to endure the damages we are making any longer. In response to that, hybrid cars seemed to be the new hit item. Just this spring, Ford Motors introduced Ford Fusion, a retooled, restyled, fuel-efficient midsize car. Despite its $5.9 billion loss in the fourth quarter of 2008, that it is revamping its balance sheet and a share of its stock costs less than a Big Mac, Alan Mulally, CEO of Ford Motors (see right, above), still pushed forth the higher capital investment of producing hybrid cars. In this year’s Wall Street Journal’s ECO:Nomics Conference in Santa Barbara, California, Mulally was introduced as “the one American auto industry CEO who is not taking bailout money.” Mulally admitted that “the hybrids are very tough economically.” While the company might not be doing well in its financial books, Ford is still considered as an industry leader.

In fact, Ford Fusion is not the company’s first attempt to stir itself to a more environmental friendly corporation. As early as 1983, Ford launched the Ford Conservation and Environmental Grant award, which aims to encourage and commend environmental programs. The award was made global to include China in 2000. In addition, William Ford Jr., Ford Executive Chairman, along with Alan Mulally, announced that they would take a 30% pay cut for the next two years. Ford’s board of directors will also drop their compensation for two years and there will be no more performance bonuses for salaried workers and senior executives. Ford and Mulally believed that “these are necessary actions to help us emerge as an even stronger, profitably growing Ford Motor Company for the benefit of us all.”

I believe Ford Motors is a great example of sound management team and corporate social responsibility. I hope this adds some optimism that maybe there are still companies out that who would not sacrifice their morals for profits.
 
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