Hill+Knowlton Strategies

I was forwarded a recent New York Times article about Apple’s manufacturing in China that really got me thinking about the scope of Corporate Social Responsibility and the entire ecosystem that exists around multinational companies. The intended – and unintended consequences of the choice of actions by corporate management, and ultimately, what it says about our societies as a whole.

What really got me thinking in the article though was a story of the creation of the glass screen for the iPhone.  Steve Jobs wasn’t happy with the prototype’s plastic screen, and demanded a glass alternative that wouldn’t scratch. Famously uncompromising, his insistence demanded the flexibility and instant change of manufacturing capacity and capability that could only be accommodated in another jurisdiction (China) primarily because of working expectations (both written and unwritten) that are no longer legal, expected or accepted in many other countries.

The article quotes a current Apple executive, saying “we shouldn’t be criticized for using Chinese workers. The U.S. has stopped producing people with the skills we need.” In this case, however, what Apple needed, was workers who could be roused from their dormitory beds in the middle of the night for a 12 hour shift (Apple does monitor and publish an audit report of their suppliers). Obviously, Apple is only one of many companies choosing more “flexible” and “capable” locations for their manufacturing needs.

What does it say about our society that expediency and efficiency – valuable and real requirements of business today – have a trump card over how we treat and cooperate with other societies? I know many brilliant people have tackled this question, with few palatable answers – and the cynical among us might learn towards the idea of corporate activity as inherently pathological.

I am caught – ultimately, our corporations, our institutions, our interactions are defined by someone –and how these “someones” charged with the responsibility of directing organizations choose to  interact and collaborate with the world are an example set for the people around them.  I fall more with John Locke if only that I cannot bear the idea of Thomas Hobbes’ society that puts so little faith in its members. The question remains, in our global economy, is it possible to be a healthy, ethical corporation? How do we realize a global social contract – or are we simply unable to think beyond our immediate world and consider the reality of others?

I think many of us who listen to the evening news broadcasts expect to hear a lot of the same thing: Fighting here, budget cuts there, unemployment is “XX” high. But every so often, you come across a story that makes you feel good about where the human race is going. And this happened to me Wednesday evening. As my daughter and I sat on the couch watching NBC Nightly News, a story at the end of the telecast came on that both made us stop and listen.

A young group of individuals called “Pick up America” is driving across the country picking up roadside trash. Traveling in an old school bus running on recycled vegetable oil, the youth group started in March 2010 in Maryland and have since traveled 2/3rds of the way across our nation picking up close to 140,000 lbs of litter left by careless motorists. They get local volunteers involved, bring a sense of accomplishment to those who participate and leave lessons for future generations to live by. Why do it? Member Jeff Chen says: “We’re young people and need to take a hold of our future.”

It’s time we all shared the enthusiasm these “pick up artists” are exhibiting. Though too young to understand, my daughter watched. It’s a lesson I hope she (and for that matter we) learn – from activities in everyday life to what you do in the office.

What do you do to help the environment?

Guest post by: Jennifer Hamilton
Account Executive, Hill & Knowlton, Tampa, Fla.

Over the past 10 years, Corporate Social Responsibility (CSR) has grown from an admirable goal for a few companies to an almost certain requirement for many businesses and corporations. Consumers care about what companies are doing to improve society and many use a company’s CSR efforts (or lack of) to help inform buying decisions.

Many view CSR as an important and necessary part of business. In a society where people care more and more about what businesses are doing outside of their own bottom line, CSR offers a moral and ethical compass by which companies can gauge their corporate conscience against, and one that citizens can use to monitor the level of responsibility companies are taking for the environment, economy and society. People may differ on what constitutes good CSR, but most believe in its overall importance.

Mashable, an online news source on web culture, social media and technology, recently posted an article about a personal version of CSR. In the article, they discuss “PSR” and argue that commitments to sustainability are not just for brands anymore. The author poses an intriguing question about whether the same sustainability lens that’s been held to companies will soon be held up to the individual … and if it should be.

Imagine if you were defined by a score, or evaluated on a scale for what you did or didn’t do for your community or for the broader environment. As a society, we are often quick to cast judgments about others (whether they are spoken or unspoken) on their philanthropic or altruistic actions. We naturally want to surround ourselves with those who we admire and who motivate us to become better ourselves. So, is PSR just a natural extension of this? Especially given the dominance of social media and the seemingly never ending desire to broadcast ones every move?

In some ways, there are already systems in place that measure a person’s worth or credibility, such as a credit score. But that doesn’t necessarily mean we want them on display. In fact, most are quite protective of this information, and rightly so, even when they’re admirably high.

With “PSR” comes the next question of “How will it be conveyed?” Is it internalized by the person and kept private or is it shared or broadcast in some way? And if so, how? And how is the accuracy determined? Is it based on self reporting or another form that can be more measured? How would you feel about not only having a “PSR” score or evaluation, but also having it open for anyone to see, including clients and/or prospective bosses? What about future in-laws? What are the implications on our society to have those “scores” standardized and searchable for anyone to find?

Maybe the question isn’t if people should be held to the same standards as businesses, but rather, should it be publicized for all to know? After all, people already differ on how CSR is defined. I imagine that “PSR” could also create similar debate. To some, having a “PSR” commitment would mean dedicating time and money to charitable causes or being environmentally friendly. Others may define their commitment to simply being a person with high moral and ethical standards. Should your social worth be conveyed to everyone and anyone?

The concept of “PSR” may seem like a wild idea, but keep in mind that at one time, even as early as twenty years ago, CSR did not really exist and certainly wasn’t the standard business practice it is today. What if, in ten years time, “PSR” is just as widespread? Imagine where that could take us as individuals… and even more importantly, as a society…

What do you think? In addition to CSR, should we have personal social responsibility?

I am posting on behalf of Robert Ludke, Managing Director Public Strategies, Inc. who is contributed this posting to ResponsAbility

When people refer to “sustainability,” it is often in the context of a company seeking to improve its bottom line and the environment by doing things like using less water and becoming more energy efficient. Yet, the most unsustainable cost facing nearly every company across the world is healthcare.

The challenge of increasing healthcare costs is particularly problematic in the United States – one of the few countries in the world where employer-funded coverage is the mainstay of the insurance system and universal coverage is not guaranteed. Case in point: for American companies, healthcare coverage is the most expensive benefit paid by employers.

Despite all the flaws in the current system – including the high cost of healthcare, the inefficient delivery of care and the fact that more than 50 million Americans lack coverage – there is little likelihood of fundamental change.

This means nearly every one of our U.S.-based clients is facing a challenge. They are largely stuck in the general confines of the current system, with its many shortcomings, not the least of which is an unsustainable cost trajectory.

Some companies are seeking to address that challenge by encouraging their employees to live healthier and more responsible lives in which a greater emphasis is placed on preventive care. While some incremental success has been achieved in encouraging people to lead healthier lives and increasing access to preventive healthcare, such efforts will not produce savings sufficient enough to bend the so-called “cost curve” to the point where there is a reduction in the amount of money spent on healthcare.

In order to bend the cost curve, a fundamental shift in how society manages healthcare is needed. While that challenge is daunting, for a significant number of our clients, it presents an opportunity not only to benefit their bottom line but also to improve their reputation as responsible employers committed to a healthier, more sustainable society.

In particular, many of our largest clients have the ability to use the purchasing power they gain from the number of employees they cover with health insurance to either insist on changes to how care is delivered to their employees or to serve as a useful resource to policymakers and thought leaders who are working to improve health outcomes at a lower cost.

If the private sector wants to have a more effective voice in how the cost of healthcare can be reduced while improving the outcomes of that care, it needs to engage in and shape the public debate. Opportunities abound for points of interaction with the health policy community, to launch pilot projects to develop and implement best practices, and for leading companies to be held out to the public as thought leaders in developing and implementing policies to improve the lives of their employees and the broader public.

By Andy Cuneo, Senior Account Executive, Washington D.C.

In late March, I had the fortunate opportunity to join a few colleagues in meeting and talking energy and sustainability with one of the best minds on the topic, blogger and Fortune reporter Marc Gunther. As an avid reader of Marc’s, and a big fan of his work, knowledge and interest in sustainability, I spent the hour sharing thoughts and anecdotes about energy, sustainability, what companies are doing well as well as how Marc prepares for being an MC for panel discussions at top trade shows.

As a bonus, I joined fellow H&K DC Tech Team colleague Lauren Wilson for our regular video interview series on our sister blog, Tech & The District.  “Tech in Five” as it’s known brings some of the top reporters, thinkers and analysts in to our DC office to educate our readers on how they see technology, sustainability, issues on Capitol Hill and what it’s like to live in Washington D.C.

Last week, our team posted the latest in the “Tech in Five” series and sat down with Marc. What inspires Marc? Where will our next energy source come from?  And what does he think of the Nationals chances in 2011? You’ll be very interested and inspired (as we were) on what he had to say.

Hill & Knowlton would like to extend a warm and happy Earth Day greeting to you all. This is a special day; one that pushes us to be better environmental citizens. It is also a reminder to take a moment to reflect and take part in one activity that will reduce your environmental footprint – whether it’s using fewer lights, running less water, or even walking to a destination instead of driving to one.

In the spirit of Earth Day, our Green Team (comprised of staff from across our U.S. offices) wanted to share a few thoughts on what Earth Day means to us.  We wish you a Happy Earth Day!

•  “Earth Day is an important reminder that we need to do all we can to leave our world in good shape for our children, and theirs. An old Native American proverb sums it up best: We do not inherit the earth from our ancestors, we borrow it from our children. Happy Earth Day!” — Chad Tragakis, Senior Vice President, Washington D.C.
• “When I think of Earth Day, I think of all the things I can do to help preserve our planet for my daughter’s generation, and every generation that follows. I think of an old Greek proverb that says ‘A society grows great when old men plant trees in whose shade they know they shall never sit.’” — Andy Cuneo, Senior Account Executive, Washington D.C.
• “To be grateful for what you have, and to think of ways for you to constantly express that gratitude through the little things that matter. Reflecting and not being wasteful are good ways to show that you are aware of what you’ve been blessed with. It just goes to show that you are indeed thankful for it.” — Christopher Ward, Facility Supervisor, New York
• “It’s an annual reminder that the world is bigger than all of us. A prompt to use today to start a new habit, and perhaps give up on an old. That we can make a difference, one small act at a time.” — Lena Davie, Vice President, Tampa
• “Earth Day is the day that I will think more about what I can do for Mother Nature and make my Green resolutions for the year. It is also a year to review my Green efforts made last year. Earth Day should not only be the day for us to treat the planet better, but should be the day for us to show more energy and enthusiasm to plan for a Green future.” — Theorina Li, Syracuse Fellow, Washington D.C.
• “To me, Earth Day is a reminder to stop and appreciate our natural environment and to do my part to go green at home.” — Austin Lamb, Senior Account Executive, Chicago
• “A day to honor the energy and goodness of the Earth and to unite to help keep it beautiful, clean and healthy.” — Melissa Penn, Senior Account Executive, Los Angeles
• “Earth Day serves as a reminder and staple of what we should be cognizant everyday – ensuring that we are all doing our part to protect the environment, which is intrinsically linked to the safety and security of our communities. And it also gives us – as public relations professionals – an opportunity to stress the importance of corporate social responsibility to our clients – which now more than ever needs to be a cornerstone of reputation management. We all need to do our part to make our neighborhoods more green – and I’m thankful that Earth Day reinforces this point.” — Brett Broesder, Senior Account Executive, New York
• “At a time when “being green” has become commercialized, it is heartening to remind ourselves though our green actions and in-office discussions how achievable it is to be green the other 364 days of the year.”  - Mallory Thompson, Account Executive and Sarah Shahrabani, Senior Account Executive, Seattle

By Jennifer Hamilton, Account Executive, Hill & Knowlton in Tampa

Earth Day is right around the corner – Friday, April 22! Since this day is all about educating people about current environmental issues and getting them to actively do something “green”, the more you know, the more likely you will take part in addressing those issues.

Mashable has indicated that Twitter’s analysis of the 25 billion tweets sent in 2010 showed the Gulf Oil Spill as the top overall trend, demonstrating how environmental topics are becoming more mainstream.

So, to kick off conversation a little early for Earth Day, here’s a list of 10 green Twitter users, in no particular order, to follow for some great tips and info on sustainability.

1. @EPAgov – The U.S. EPA has a total of 18 different Twitter handles, tailored to different green areas of interest, from their blog and green building to different regions of the U.S. Check out the entire list on their Twitter profile page.
2. @nytimesgreen – The New York Times Green section links to current news discussed on their Green blog.
3. @ESA_org – The Ecological Society of America tweets updates on the latest research and headlines regarding the health and safety of planet Earth.
4. @CNNGreen – Another news-related Twitter user, CNNGreen tweets about the latest news and research related to the climate change.
5. @the_daily_green – Described as the consumer’s guide to the green revolution, TheDailyGreen has a remarkable audience of 20,000-plus followers.
6. @sustainablog – Jeff McIntire-Strasburg microblogs about how to live a sustainable lifestyle.
7. @bestgreenblogs – They’re the source for tweets, retweets and follows on all things green, eco, organic and sustainable.
8. @Earth911 – Check out Earth 911’s tweets for tips on recycling.
9. @HuffPostGreen – This Internet newspaper posts about the latest environmental news.
10. @seth_leitman – This Green Living Guy and Author and Series Editor of McGraw-Hill’s The Green Guru Guides delivers hard news along with some green humor.

Know of other great green users to follow? Comment below and share!

by Chad Tragakis, Senior Vice President, Hill & Knowlton, Washington

Just over a year ago, in the aftermath of the worst natural disaster ever to befall Haiti, I wrote about the generous and inspirational commitments that individuals, organizations and corporations were making in response. I also wrote about the very best way to help in times of disaster, based on lessons long learned by government, NGOs and others in the disaster response and relief community.

Now, in the aftermath of the worst natural disaster ever to befall Japan, I feel compelled to revisit some of those same themes and learnings. It’s unfortunate that just a year later, we are faced once more with a seemingly unprecedented crisis and the prospect of a long, hard recovery and rebuilding process. If there is any glimmer of a bright spot here for humanity, it is that when times are their worst, people and companies are often at their best. And, with each disaster, we have the benefit of knowing what worked – or didn’t – in previous instances.

According to the latest data collected by the Business Civic Leadership Center, response by the corporate sector has been incredibly strong – more than $200 million dollars in aid committed in just over 10 days. If giving continues at this pace, it is on track to surpass business support for disaster relief efforts following the January, 2010 earthquake in Haiti. Individual giving to major relief agencies is also picking up, totaling more than $64 million just one week after the disaster. And that’s a very good thing, because the cost, by any measure, is going to be severe, even for as advanced and industrialized a nation as Japan. Experts now estimate the cost could reach $309 billion, making it the world’s costliest natural disaster ever.

Most telling for me about the true need and real plight of those affected was the appeal I received from ChildFund International, an organization that I support. On an ordinary day, it noted, ChildFund Japan raises funds for the programs it implements in developing countries around the world… but today is no ordinary day. For the first time in its history, ChildFund Japan launched an emergency response effort for its own country.

One of the most important lessons the world has learned from responding to disasters is that cash donations are the best way to help the people impacted, especially in the initial aftermath. Cash is immediate, it is flexible, and it provides for culturally and geographically appropriate support. Most importantly, it allows disaster relief organizations to purchase exactly what is needed, and to procure materials near the affected area, cutting down on transportation time and cost. It also supports regional economies and speeds the rebuilding process.
 
One of my clients, the Center for International Disaster Information, has been tracking and advocating for responsible and appropriate disaster response for more than 20 years. Over that time, they have witnessed some incredibly insensitive, culturally inappropriate, inefficient, and even harmful responses. Simply put, when individuals, groups or companies send stuff that is unneeded, supply chains get clogged, boxes must be unloaded and warehoused eating up precious time, personnel and storage space. Ports near Sendai and many throughout the Miyagi Prefecture are severely damaged; some will be closed for months. There are extremely limited points of entry for the critical relief supplies being brought in by experienced agencies, so it’s critical that they not be choked up by well-meaning but unneeded donations.
 
Worse than that, in some instances after disasters people send items apparently without any thought at all. Hard to believe, but people have sent winter coats to affected people in tropical climates; companies have sent stale cookies and long-expired medicines; canned ham has been shipped to predominantly Muslim countries and canned beef to predominantly Hindu areas; in one shipment of donated supplies, a relief agency found used tea bags; party decorations were mailed to families who had just lost their homes. And, in perhaps the worst instance of inappropriate disaster response ever, one company sent a shipment of breast implants. However well-intentioned, it often seems that some companies and organizations don’t take into account the full impact of their donations. They are in such a rush to act, that they forget – or just plain fail – to think.
 
That’s why in the midst of this tragedy, I am encouraged by the thoughtfulness and innovativeness of corporate response, not to mention the sheer volume of companies expressing an interest in helping. Some companies, because of their unique capabilities, core competencies, knowledge and expertise, and product and service offerings, are in great positions to bring those things to bear after a disaster. This is especially true when they establish long-term relationships with relief organizations ahead of time, and invest in preparedness and contingency planning. 

In the past week alone, I have read about and learned of some truly responsible and wholly appropriate ways for companies to do their part for the people of Japan.

First and foremost, companies are giving cash – lots of cash – and they are directing it to the experienced, credible relief agencies that are already on the ground, the ones in the best position to help and to help quickly. Firms are matching employee donations, and many are waiving transaction and service fees for their customers who are making donations. And, many companies are giving products, services and expertise that have been specifically requested by agencies on the ground – equipment, supplies and know-how that are desperately needed right now.

• Coca-Cola has pledged $31 million in cash and much needed beverages to relief and reconstruction efforts. The company is also donating its TV and radio ad time to public service announcements encouraging Japanese citizens to conserve energy, a necessity given continued power outages in much of the country.
• Wireless carriers and telecommunications firms are facilitating text donations and allowing customers to call and text family in Japan free for a specified period. Others are offering free programming from TV Japan to keep their subscribers aware of what’s happening.
• Financial services firms like American Express, MasterCard, Visa, Discover, Citi and Western Union are waiving fees on donations and money transfers to Japan for specified periods. Wells Fargo has programmed its ATM machines to accept donations for relief efforts directly from customers.
• PayPal, Zynga, Living Social, Sony, Apple, Facebook and other tech, gaming and social media firms are doing some wonderfully creative things to help people make financial contributions.
• Airlines are awarding bonus miles to their frequent flyers as an incentive to make donations. Hotels are allowing their customers to convert rewards points into cash donations to relief organizations.
• Fed-Ex and UPS are providing logistics and transportation support to a variety of relief agencies and NGOs already on the ground.
• GE is contributing $5 million in cash, equipment and service – including critical expertise and a 24-hour command center related to their nuclear energy business.

There are many, many other great examples of companies not only doing the right thing, but responding in the right way. Take a look at some of the inspiring commitments being, cataloged by the BCLC’s Corporate Aid Tracker. The bottom line is that sending cash donations is the very best way to help the people of Japan, especially right now. CIDI and the State Department are directing people and organizations interested in helping to InterAction, a large coalition of U.S.-based international non-governmental organizations. 

Many of the same companies noted above have also announced major commitments to provide additional funding, materials and support during the post-disaster phase, when rebuilding and re-development will be the priority. This is important, because as we have seen so many times in the past, when a disaster no longer makes the headlines or the evening news, the world often forgets about it and support for vital rebuilding efforts can wane. The long-term generosity and commitment of many companies will help pave Japan’s long road to recovery that lies ahead.

Our hearts are with Japan and her people. As Emperor Akihito said in his solemn address, “those who were affected by the earthquake must not lose hope.” They must “survive tomorrow onwards…and continue to oversee the rebuilding process.”

A few blocks away from where I sit, thousands of cherry blossom trees are blooming. These are the living legacy of a gift of friendship to the U.S. from the people of Japan 99 years ago. In addition to being beautiful symbols of friendship, these trees are symbols of strength, hope and resilience. So too is Japan strong, hopeful and resilient. Like the sun so perfect and proud in the center of her flag, the Nisshōki, the sun will rise over Sendai tomorrow. And it will rise the day after that. It will shine on Japan. And in time, her people will once more be able to bask in its warmth.

Over the weekend, I read a piece on how smartphone mobile applications are helping to guide us towards sustainability. As a member of Hill & Knowlton’s tech practice, and a leader on our internal green team, I’m hopeful that these applications will shape our sustainability across the country.  I wrote a piece for our sister blog, Tech & The District that identifies these applications. One of the biggest roadblocks to being more sustainable is convenience.  “It’s too hard to be sustainable.”  These applications give me hope those complaints will die down soon.

I just read a really fantastic article by one of our clients, Deloitte.

The essay was written for Forbes by Nick Main (Deloitte’s Global Managing Director for Sustainability & Climate Change Services) and Dr. Joseph Stanislaw (an Independent Senior Advisor to Deloitte’s Energy & Sustainability practice) about corporate energy use and the need for a strategy to manage energy use.

Here’s a teaser, if you would like to read the full article, click the link below to go right to the Forbes blog to read the full post.

Every company is an energy company
Every company is an energy company. And if it isn’t, it will be soon. A decade from now, a company without an energy and sustainability department could be as unusual as one without a human resources department.  Or, it might be out of business.
Read the full article here: Every company is an energy company (on Forbes blog)