Corporations And Stakeholders
Newsletter February 2007, Volume 3, Number 1
Featured Article: Multinationals and Their Stakeholders Set Plans For a More Harmonious 2008 Olympics
Survey Question: How many standards organizations do you report to?
CSR News From Future 500 Participants: HP & WWF; Mattel releases its 2006 Global Citizenship report
Future 500 Global: Report from our Japan office.
Coming Events: New York, NY; London, UK; Philadelphia, PA
Support The Future 500's Programs
Previously Featured Articles
Featured Article
Multinationals and Their Stakeholders Set Plans for a More Harmonious 2008 Olympics
To Avert Conflicts and Protests, They Seek Common Ground Solutions to Protect Climate, Energy, Water and People
by Bill Shireman
They won’t be judged for their athletic prowess, but for their performance on issues like chemical spills, child labor, democracy, and press freedom.
That is why two hundred global corporate executives, Chinese government officials, influential Chinese citizens, and non-profit leaders gathered in Beijing last year, for the Future 500 International Forum, to develop a more collaborative approach to the issues they will face when the Olympics begin less than two years from now.
“The Olympics are a huge marketing opportunity, not just for the corporate sponsors, but also for organizations advocating important causes,” according to Tachi Kiuchi, a prominent Japanese industrialist and co-organizer of the conference. Each Olympics, environmental, social justice, and human rights organizations seek to position their issues front-and-center for the world’s largest media audience, he says.
That is why senior executives from some of the world’s most valuable brand names traveled to Beijing to meet with government and activist stakeholders – to make sure they know the companies are ready to do their part to make China more sustainable in time for the Olympics, and to begin to plan together to do so.
For example, officials from the powerful NDRC, and National Peoples Congress gave keynote addresses calling on all the stakeholders to set aside their differences and work together for “harmonious development.”
GE China CEO Steve Bertamini pledged to bring the company’s environmental technologies like wind energy to China.
Chinese environmentalist Ma Jin released a study detailing 2700 water pollution violations, including 34 by multinational corporate affiliates.
Hewlett-Packard, Mattel, and Nike executives discussed how they are seeking to drive poor labor and environmental conditions out of their supply chains.
Other executives who spoke included a representative from Foxconn, a huge Taiwan based electronics supplier that employs over 400,000 mainland Chinese.
Wang Canfa, a hero to China’s peasants for his work seeking compensation for pollution victims.
Novozymes: In LCA, 1 kg of enzymes produces 10 kg of CO2, but when used, reduces 1000s of kg of industrial CO2.
Coca-Cola’s global reputation director, Michael Stopford.
Multinational corporations know they will get much of the blame – deserved or not – for any environmental or social ills that become public in the 20 months ahead. For example, when the Wall Street Journal reported on the findings that Ma Jun released at the conference, their headline read “Multinationals in China Cited for Pollution” – even though barely 1% of the violations were traced to multinationals.
There are at least three reasons multinationals are targeted, according to one source. First, they own well-known brands that can be leveraged by activists to gain greater attention for their causes. Second, they are expected to be world-class performers, so when they or a supplier violate a global norm or standard, they pay a heavy price in reputation. Third, and particularly important in China, multinationals are relatively safe to attack. As one activist leader noted, “We can’t trash China. We’d be shut down and all of us would be deported.” Corporations are the only viable target left.
The Future 500 aims to channel all that energy toward solutions. “We want light, not heat,” says Future 500 China founder Jin Zhouying, a career scientist in Beijing with wide contacts throughout Chinese government and society. “One of the world’s great untapped sources of energy is the heat of conflict. We see it everywhere. We channel that energy toward more productive solutions. Our objective is a harmonious path to environmental and social sustainability in our country.”
Future 500 is a global non-profit that builds alliances between “Fortune 500” companies and their most influential stakeholders. In the U.S. and Europe, the most influential stakeholders are often non-profit activist groups. In Japan, they tend to be corporate networks. And in China, government agencies.
“Global companies need to build relations with all of these stakeholders – corporate, governmental, and activist,” says Bill Shireman, Future 500’s global CEO. “That degree of harmony, among all these disparate interests, is definitely a challenge in China.”
For example, activist organizations plan to carry out “non-violent direct actions” targeting Olympic sponsors and other high-visibility companies. The Chinese government generally considers these protests acceptable. They are small, controlled, and criticize non-governmental entities like multinationals – always a popular target, sometimes for good reason, and sometimes not.
“One of the most stunning developments … is the amazing growth of NGOs and independent media in China,” Elizabeth Economy, Director of Asia Studies and C. V. Starr Senior Fellow at the Council on Foreign Relations, told conference participants. There were 50,000 environmental protests in 2005 alone, she said.
The number is likely to grow. In addition to local groups, internationally known organizations like Amnesty International, Greenpeace, Reporters Without Borders and others are expected to be increasingly visible during the run-up to the Olympics.
Future 500 wants to give the activists better options – the ability to work in formal or informal alliances with global companies, to tackle the root causes of the problems they talk about.
To do so, Future 500 partner companies and stakeholders pledged to help improve performance, build trust, and show leadership to protect climate, water, forests, and people. According to Kiuchi, a former Mitsubishi CEO who now serves as Future 500’s global chairman, “We have a three-part agenda in China. First, improve our performance, by embedding commitment throughout our companies. Second, built trust, by engaging continuously with our stakeholders. Third, show leadership, by using our buying power to advance sustainable technologies and business practices in China.”
Based on the roundtable discussions, a draft set of objectives was developed by conference organizers. The objectives will be reviewed by a wide array of stakeholders, revised over time, and used to organize and drive corporate initiatives and partnerships during the next two years.
We invite you to take part in the China Stakeholder Initiative, to take action on the plans that are being developed. Those interested should contact Nikole Wilson-Ripsom.
Survey Question
In our continuing efforts to better serve you, we would like to ask you to take one minute to answer the following survey question about reporting standards that your company is adhering to. Click here to answer the survey question.
CSR News From Future 500 Partners
HP and World Wildlife Fund-US (WWF-US) are conducting a joint initiative to reduce HP’s greenhouse gas emissions from its operating facilities worldwide, educate and inspire others to adopt best practices, and use HP technology in conservation efforts around the world. READ MORE
Future 500 Global
Future 500 Japan
NEW INFO COMING There have been many exciting things happening at the Tokyo Future 500 office. Tachi Kiuchi, Chairman of Future 500, recently had a 9000/kwh solar panel installed at his home in the heart of Tokyo. Solar panels are unusual for the area and a special photo exhibit of the installation was shown at the Renewable Energy 2006 International Exhibit in Tokyo in mid-October.
Last year, Future 500 Japan released a report on the Research on the Scientific Basis for Sustainability. The report was the joint effort with E-Square Inc. and 176 scientists worldwide. A summary of the report can be downloaded at http://www.sos2006.jp/english/rsbs_summary_e/about-rsbs.html. Hard copies of the full report may be requested from our San Francisco office.
Coming Events
Leadership Conference on Global Corporate Citizenship: Citizenship as a Growth Driver
February 27 - 28, New York, New York
- Testing the base of the pyramid protocol: A case study from S.C. Johnson
- Profitable growth - creating tomorrow's winning brands
- Wall Street Viewpoint: strong citizenship builds shareholder value
- Building a lasting reputation
- Philanthropy, Community, Employees: Getting a 10X Return
- Reaping value from new citizenship opportunities
- Responsible profitable and sustainble growth
- Leveraging the supply chain for competitive advantage
- Next generation business models: blueprints for a greener future
- Bold commitments: actionable steps
- C-suite dialogue
March 21 - 22, 2007 London, England
Partnerships are now recognised as more than just philanthropy and cause related marketing. As issues like global competitiveness, environmental risks, or inadequate infrastructure mean that organizations can't solve problems on their own, partnerships are becoming an essential component of long-term strategy. Despite their undoubted value, partnerships are difficult to establish and maintain. Ethical Corporation's Annual Business- NGO partnerships conference has gained a reputation as a forum for sharing experience and expertise on partnership logistics – making sure that the time you invest in partnerships is time well spent. This year, we're expanding the scope of the conference. As well as looking at aspects of partnership management- including overcoming cultural barriers and tracking partnership progress - we're putting partnerships in their broader context. Hear how to:
- Survey your stakeholder landscape – identifying potential risks and issues through informal stakeholders engagement
- Make Multi-Stakeholder Initiatives worthwhile. Share experience and best practice across industry sectors and hear perspectives from a variety of global and local initiatives
- Get governments involved in your partnerships. Learn where governments are focusing resources and how you could collaborate to meet objectives
March 28 - 30, 2007 New York, NY
Future 500 and The Conference Board® Research Working Group on Stakeholder Engagement on the Global Stage will provide companies with the opportunity to meet with corporate peers and international nongovernmental organizations (NGOs) and stakeholder leaders to build relationships and learn from one another in a collaborative setting. Working group members will gain the tools, skills, contacts, and information they need to protect their companies' brands, while also developing methodologies for building and maintaining trust and mutual support between companies and stakeholders.
April 19 - 20, Philadelphia, PA
The Ethical Sourcing Forum North America 2007 is the perfect place to "shop" for new ideas and options to implement or re-calibrate your organizations.
The Ethical Sourcing Forum North America 2007 is an International Interactive Forum and Exhibition dedicated to promoting practical solutions for corporate responsibility and sustainability in global supply chains. This annual leadership forum delivers a dynamic exchange of idea, new strategies and best practices to address the latest social and environmental challenges facing global supply chain professional and stakeholders.
Sessions will include:
- Overcoming Resistance: Achieving continuous improvement within complex supplier business relationship environments (my business is not important enough!)
- More than just a Buzzword: Local Collaboration can be the key to resolving your most difficult supply chain challenges
- Facing Reality: Poor management systems, isolated documentation errors, intentional or unintentional falsification -- the debate goes on. Join a multi-stakeholder facilitated roundtable on the key influential factors impacting supplier disclosure today
- To Speak or Not to Speak: How best to effectively communicate with rating agencies and other responsible investment research institutions
- CSR Strategy Development: How to build an effective CSR strategy for all seasons
- Supplier Self-Declaration vs. Verification: When to select the right tool from your practitioner's toolbox
- Developing an Effective CSR Supply Chain Program: 10 common speed bumps and 10 solutions
Support The Future 500's Programs
The Future 500 has teamed with Groundspring.org to make it even easier for you to support the innovative work of our organization. For more information, click on 
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November 2006
Turning Conflict Into Cooperation: Ten years ago, top executives at three Mitsubishi companies were suddenly faced with a protracted consumer boycott campaign waged by activist NGO Rainforest Action Network (RAN), which sought to tarnish the company's brand to force it to change its business practices. Instead of fighting RAN, the companies did exactly the opposite of what its lawyers, public relations experts, and crisis professionals advised: They sat down and engaged the group's leaders in dialogue.... Read the rest of this story.
February 2006
Toward A Framework for Supply Chain Leadership:This document represents a first step toward a potential framework for supply chain leadership. It is based on interviews of companies conducted before the Working Group (October 2005), literature searches and reviews of thirteen companies and ten independent supply chain initiatives, and discussions among executives during the Working Group. It is a project of the Working Group on Global Corporate Citizenship and Risk Assessment, and is prepared by The Future 500 and The Conference Board.
This document is meant to start a discussion on supply chain leadership – not finish it. The definitions, approaches, interpretations, and assertions are preliminary, intended to help drive thought and consideration. Feedback is invited.
Through this process, a management framework for supply chain leadership is emerging, elements of which will continue to be added, shaped, and improved...READ FULL ARTICLE.
October 2005
PET Peeve:In the face of continued declines in plastic recycling rates, a handful of PET industry advocates have hit upon a new strategy: prevent new more sustainable alternatives from entering the market. Their approach is just plain wrong. Better alternatives are the key to the success of plastic recycling, and may represent the future of the companies now devoted to PET. PET exploded onto the marketplace, and quickly captured share once held by more easily recyclable packages, like aluminum and glass. PET now dominates the soft drink market, especially bottled waters and noncarbonated drinks. But the promise of PET recycling has not been filled, and never will. READ FULL ARTICLE.
July 2005
Avoiding Survey Fatigue:It is an old truism that wise investing depends on good information. While there are well-developed, government-regulated mechanisms for collecting and disseminating accurate and relevant financial information from publicly traded companies, the means for gathering and distributing non-financial information are relatively early in their development. But the demand for non-financial reporting is growing as even mainstream asset managers and institutional investors increasingly appreciate the importance of issues like greenhouse gas emissions and other environmental and social liability potential. Many companies have responded by...READ FULL ARTICLE.
March 2005
The Stakeholder Imperative, Part 2:In this article, we outline a three-phase stakeholder engagement process. These phases (and the steps or tasks that comprise each phase) build a sequence of activities that can create the foundation for an effective stakeholder engagement process, guide the business strategic planning agenda, and increase a company’s ability to be robustly competitive in a changing business environment. READ FULL ARTICLE
October 2004
The Stakeholder Imperative, Part 1:Today’s companies serve not just shareholders but an increasing array of ‘stakeholders’ including employees, customers, community groups, governmental regulators and environmental advocacy groups...What are the features of this new environment for business? READ FULL ARTICLE
July 2004
Jumpstarting California's Hydrogen Economy: Governor Schwarzenegger’s recent announcement to commit 0 million to create a California hydrogen highway by 2010 positions the State as leading this technological transformation in the U.S. But several states – Ohio, Michigan, New York, Texas -- are competing for this title. READ FULL ARTICLE
April 2004
Dogged By Dozens of CSR Standards: The surge of standards for Corporate Social Responsibility (CSR) and Socially Responsible Investing (SRI) is creating tremendous challenges and opportunities for leadership companies. READ FULL ARTICLE
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