I was struggling.  My actions and constant reminders around “green” practices weren’t having much of an impact on my daughter, 8, and son, 6. 

“Please turn off the TV when you’re not watching it.” 

“Remember to turn off the lights in your room when you leave.” 

“Hey, that paper should go in the recycling, not the garbage.”

“Do you really need to take such a long shower?”

My words were falling on deaf ears.  Then one day about two weeks ago we were out for a walk and my daughter went out of her way to pick up a discarded aluminum can along the trail.  Then it was a piece of paper, followed by plastic bag.  “Emily, that’s really nice of you, but what made you decide pick up the garbage?” I asked.  She said her school teacher talked to the class about Earth Day and how we all need to take care of the planet.  Her class was planning a clean up project for April 22.  She was just getting a head start.

I asked Emily if she understood that all those things I had been asking her to do at home were also about taking care of the planet.  “Yeah, I get it,” she said.  And I believe her, because there has been a noticeable difference in her attention to all of our home practices in the last week.

It’s amazing to see the influence teachers and a special day can have on kids. Thank you Earth Day, and thank you Mrs. Brown.

Jeff

I must admit, when I started this blog last August, I was a little apprehensive about commenting on what other companies and industries are doing (or not doing) in the area of CSR, since I was writing the blog as a representative of my employer, Lawson.  While Lawson has a long history of being active in its communities and maintains a very strong employee code of conduct, like most companies, Lawson’s formal CSR programs are still evolving.  My objective has been to evaluate and comment on CSR news, trends and activities without implying that Lawson has perfected its approach to CSR. 

With Lawson’s announcement last week of a new global community service program, I thought it was a good time to talk a little more about what Lawson is doing in the area of CSR.  The community service program I just mentioned is intended to encourage every Lawson employee to use up to eight hours of company-paid work time during a year to volunteer for a community service activity. The program is designed to support Lawson employees who currently do various types of community service and to help motivate other employees to volunteer their time in their communities.  With approximately 4,200 employees around the world, the goal is that individually and collectively Lawson employees can have a positive impact in their communities.  

Lawson’s plan is for the community service program to become part of a broader CSR initiative that is expected to include a formal environmental program and sustainability reporting.  Lawson is already a stakeholder in the Global Reporting Initiative (GRI).  Over the last year we have become active in several of GRI’s sector activities for Lawson focus markets such as food processing and apparel and footwear.  As part of our GRI membership, we are in the process of formulating our own sustainability reporting approach. 

If you have followed my blog you also know Lawson has been focused on how it can help customers better manage their CSR programs using Lawson products (see posts from September 24, October 4, October 18, March 17).  It’s an area that is gaining momentum. 

Borrowing an old Nike advertising slogan, “there is no finish line.” This is particularly true when it comes to CSR. CSR is evolving and Lawson will continue to assess how it can make a difference.  

Jeff 

For many companies product safety is a fundamental component of their CSR efforts.  But in the last year or two no market has had to re-evaluate its product safety practices more than the food industry.  Increasing health concerns by consumers, new government regulations, growing (often global) supply chains and increasingly competitive markets have all been influencing factors. And, of course, recent incidents like those at Topps Meat, Cargill, Westland Meat and Menu Foods – to name just a few – have not helped the food industry. 

The Food Marketing Institute’s survey, “U.S. Grocery Shopper Trends 2007,” reported that consumer confidence in the safety of the food supply has dropped dramatically. Confidence had consistently hovered in the 80th percentile for years, but dropped to 66 percent, the lowest point since 1989. Consumer confidence in the safety of restaurant food is even lower, at 43 percent. 

So, how do we address the food safety issue? There are a number of possible solutions that can help companies.  Forbes.com provided a good overview in a recent article, “U.S. Food Safety: Solutions at a Glance.”  One of the solutions the article highlights is product traceability.  Generally speaking, this means food companies are able to track their products from “field-to-fork.”  The flow of raw materials and ingredients are tracked from producers to the manufacturer, and then the finished product is followed through the distribution process to the retailer. 

The Aberdeen Group, a research firm focused on business technology, also views traceability as a solution. Aberdeen’s December 2007 benchmark report, “Compliance and Traceability in Manufacturing,” recommends that companies “…implement technologies with core track and trace capabilities…” to achieve best-in-class performance. The report is based on a survey of 650 manufacturers (not limited to food) primarily in the United States.   

At least one food company had a vision to improve food safety using a traceability solution years ago.  Nutreco is an international animal and fish feed company with over 100 production and processing plants in more than 25 countries.  In 1999, Nutreco, already a customer, came to Lawson with the idea of proactively managing food safety throughout their supply chain. Our co-development effort resulted in a software solution called Lawson Trace Engine. Today it’s the technology that drives Nutreco’s NuTrace feed and food safety program.  This week Lawson announced a new global version of Trace Engine.  

Ultimately, traceability solutions create transparency in the food supply chain, which can only help with the consumer trust issues mentioned above.  And while it’s the “socially responsible” thing for companies to do, it’s also good business.  Consumer trust can improve brand loyalty and customer satisfaction and drive revenue.  A possible alternative is the Topps Meat story I noted above.  In part because it had no tracking capabilities, Topps was required to recall a full year’s worth of product and is now out of business. 

Jeff

There’s an incredible amount of activity taking place in the area of sustainable supply chains.  Because supply chain challenges are so broad, it is hard to capture the full scope of what’s happening.  In those situations, I tend to look for examples of activities that are having a real impact on business. Here are a few such examples: 

-        Wal-Mart, which has launched a host of sustainable supply chain programs,   implemented a new supplier packaging scorecard on February 1 that formally rates suppliers on their progress toward developing sustainable packaging, as well as their ability to help Wal-Mart reach its company-wide sustainability goals to reduce waste, use renewable energy and sell sustainable products. 

-        HP recently published a set of guidelines aimed at helping large corporations encourage sustainability throughout their supply chain.  The goal is to help multinationals better equip their suppliers – especially small and medium-sized business – to effectively compete in the global market while improving environmental standards. 

-        One of the organizations Lawson has been talking to about supply chain sustainability is the European Supply Chain Institute (ESCI).  ESCI is a member-driven organization that researches all areas that will have a direct, positive impact within the supply chain.  Last September, ESCI formed a new group called the Supply Chain Carbon Council to research issues related to carbon emissions in the supply chain and make recommendations.   

So what’s one of the main paths the Supply Chain Carbon Council is taking to help address carbon emissions?  Information technology.  Here is the Council’s position: 

“Businesses need to focus less on how IT contributes to their environmental impact and more on how IT can help lessen the environmental impact of their supply chain operations.  While making IT more green must remains a concern, there are areas where deploying more IT can significantly contribute to making an organization’s supply chain activities more environmentally sustainable.” 

I think this is an innovative strategy. Admittedly, I have a bias in this area because I work for a software company, but the reality is we need to approach our sustainability issues from many angles, and there’s a mounting belief that IT can be a key contributor. 

Jeff

Having the right attitude can make a significant difference in life, and in business.  A white paper published last week takes a close look at how businesses, especially their leaders, need to change their attitude toward sustainability in order to recognize the opportunities available to them.

“A New Mindset for Corporate Sustainability,” which was co-sponsored by BT and Cisco, was written by six academic experts from the United States, China, United Kingdom, Singapore and Spain.  The title of the paper caught my attention immediately because of the phrase: “New Mindset.” The paper addresses what I, and others close to CSR, believe is one of the biggest roadblocks to the broader adoption of sustainability strategies, namely an attitude that these practices are costly to businesses, inhibit growth and negatively impact the bottom line. 

The paper presents sustainability as a catalyst for innovation. More specifically, innovation that can create new business models, open up new markets, produce a competitive advantage and improve profitability. In the end, the best part of the paper for me was the 16 “case studies” that provide real-world examples of how some leading companies are innovating in the area of sustainability. 

The paper also includes 10 steps companies should take to drive innovation via sustainability: 

1.      Make innovating for sustainability a part of your company’s vision

2.      Formulate a strategy with sustainability at its heart

3.      Embed sustainability in every part of your business

4.      Walk the talk (actions speak louder than words)

5.      Set up a body with the power to make sustainability matter

6.      Set firm rules (code of conduct)

7.      Bring stakeholders on board (and encourage participation)

8.      Use people power

9.      Join the (sustainability) networks

10.  Think beyond reporting: align all business systems with the company’s vision of sustainability 

While I didn’t see anything appreciably new in these steps, it is a fairly comprehensive process that provides a practical, proven framework for companies to follow. The paper is available for download at Bigger Thinking / Innovation. 

Jeff

Hospitals for a Healthy Environment (H2E) recently announced the formation of a new nonprofit member-based organization focused on improving the environmental performance of the healthcare industry.  H2E is joining two other organizations, the Green Guide for Health Care and the Healthcare Clean Energy Exchange, to deliver a wide range of services intended to create “healthy healthcare environments.”   

It’s great to see these types of efforts.  While hospitals and healthcare systems are widely recognized as being leaders in the area of social responsibility due to their charity care, community outreach, etc., they have not been nearly as progressive in the area of environmental sustainability.  The reality is delivering patient care involves a lot of hazardous materials, produces a lot of waste and consumes a lot of energy, all of which can be detrimental to the environment. Given that, I think industry-based organizations, like H2E, can have a greater influence on the environmental sustainability of healthcare providers than the government or other broad-based sustainability groups.  

One of Lawson’s customers, Portland, Ore.-based Legacy Health System, is a leader in the area of environmental sustainability.  Legacy has received numerous environmental awards from H2E over the years.  At the Lawson Executive Forum last March, a leader from Legacy presented his organization’s CSR programs. I was very impressed. One of the programs that really caught my attention requires that all new building construction and remodeling meet strict “green” building standards.  I encourage you to visit Legacy’s Web site for some more examples of its environmental programs. 

Jeff

I participated in a CSR Web event last week hosted by Apparel magazine and sponsored by Lawson. The session focused on CSR issues and trends in the apparel industry, with the main focus on environmental or green programs. The other presenters included John Davies, vice president, Green Research at AMR Research, and Meirav Jones, global development and marketing director at Delta Galil Industries, a leading apparel company and Lawson customer. 

As I talked with Lawson customers while preparing my presentation content and worked with the other presenters, I was reminded how much every industry – and every company for that matter – needs to evaluate and understand what green means for them and where they can have the most significant impact. Certainly, the apparel industry faces challenges common to most industries, such as the consumption of water and energy during manufacturing processes. However, the apparel industry also has its own set of unique issues. During the session, Meirav Jones provided a very interesting statistic:  approximately 25 percent of an individual’s carbon footprint is associated with clothing.  One-third of that is related to washing and dying the clothing, the remainder is associated with producing the raw materials, the manufacturing process and transporting the clothing. With that in mind, it’s no surprise that some of the leading focus areas for the apparel industry include:

• Use of sustainable and recycled fibers, yarns and accessories – examples include organic cotton, bamboo, hemp and linen
• Reducing fabric dye cycles
• Reducing product packaging
• Use of non-toxic chemicals in fabrics production
• Development of fabrics that require shorter wash cycles and can be washed in cold water
• Bringing the supply chain – suppliers to manufacturer to customers – physically closer.

 During the event we asked the audience a question regarding the main driver behind their own organization’s environmental programs. When I have asked this question of other groups, the main driver has almost always been to comply with regulatory requirements or to strengthen their company’s brand or image. However, in this case, the leading reason was to create new business opportunities. It’s clear innovative apparel companies are learning that consumer demands are changing and their green programs can be good not only for the environment, but also for their bottom line. 

Jeff

 TerraChoice Environmental Marketing published a report last month that suggests “greenwashing is pervasive” in the consumer products market.  The report, The “Six Sins of Greenwashing,” is an interesting read and appears to be based on a solid study.  In case you’re not familiar with the term “greenwashing,” TerraChoice defines it as the act of misleading consumers regarding the environmental practices of a company or the environmental benefits of a practice or service.  Maybe I’m jaded, but the results didn’t surprise me.  Especially given the standards TerraChoice used to evaluate the green claims.  

 I think Joel Makower’s  (two steps forward) characterization of us bordering on the “Wild West of Green” is very accurate. In the just the last year alone we have witnessed an absolute explosion of information and attention centered on the environment, global warming, carbon footprints, green products, etc.  The situation with Green is not that different than many other new concepts, technologies, etc. that experienced very rapid expansion.  We need to look no further than the Internet explosion of the late 1990s for a good example.  During the dot-com bubble there was a marketing free-for-all, where wildly exaggerated claims were common.  Practices have changed greatly in the past six years since the dot-com bust. 

We are still living on the frontier when it comes to Green, but I’m confident that through consumer and government pressure, the continued development of standards and certifying organizations and the normal maturation of companies in this area, we will see a steady shift toward more understandable, legitimate and trustworthy claims. 

Jeff

I was having a conversation with a friend the other day on the topic of CSR. I was on the pro-CSR side (of course); he had the anti-CSR position. Predictably, as the conversation got spirited, he invoked the name Milton Friedman and his famous 1970 article in The New York Times Magazine, “The Social Responsibility of Business is to Increase its Profits.” It was predictable because there is hardly a debate on CSR that does not at some point find its way around to Friedman’s position on the topic.   

We all want our views validated.  In the IT industry that often comes via analyst firms.  A year or so ago when Lawson began looking at the role IT in CSR, very few analysts were talking about it. That’s changing – quickly. Some recent examples include:

At its recent Symposium/ITxpo in Orlando, Green IT topped Gartner’s list of the top 10 technologies and trends that will be strategic for most organizations in next few years.  Gartner focused primarily on hardware and data centers.  Green IT occupied the top 10 list with more “traditional” IT topics like business process modeling, metadata and Web platforms.

Forrester recently released a report entitled, Creating a Green IT Action Plan. It’s essentially a “how to” guide CIOs can use to create and implement Green IT programs.  The report has a broader perspective than just hardware and data centers, looking at the role of the IT organization in an organization’s overall CSR initiative.

AMR Research has probably done more than any analyst firm around the area of CSR and sustainability.  AMR launched a green technology research service in 2006 and most recently initiated the Sustainability Peer Forum. Introduced in August 2007,  the forum brings together a variety of environmental and sustainability industry leaders to share and discuss best practices, lessons learned and business strategies that support their sustainability efforts. 

I’m excited about how this focus by analysts will help validate the topic and drive the CSR message to more organizations.  In particular, I hope it will get IT professionals thinking about how they can lead the way.

Jeff