SENSIBLE GROWTH ACHIEVED THROUGH CSR
As corporate social responsibility becomes an ever more important way of doing business IBM has published a paper aimed at helping companies develop corporate social responsibility strategies that will aid growth opportunities. Attaining Sensible Growth through Corporate Social Responsibility has taken three dynamics that the authors of the report believe will help companies understand and act upon when dealing with the new risks and opportunities associated with CSR. These are impact – from cost to growth, information – from visibility to transparency, and relationships – from containment to engagement. Behind the report is the growing influence of CSR and the role of the internet in providing greater information about companies and their activities. IBM surveyed 250 business leaders and discovered that while many are using CSR activities to find new revenue streams, only one quarter believe they understand their customers CSR expectations.
THE ROLE OF FINANCE IN ENVIRONMENTAL SUSTAINABILITY
Commercial real estate and money management firm Jones Lang LaSalle surveyed 175 top finance executives for the report, “The Role of Finance in Environmental Sustainability Efforts”, carried out in the first quarter of 2008, published in March. The report found that over 50% of chief financial officers believed that their companies could boost revenue, investor returns and employee retention through sustainability, and four out of five said they expect pressure to adopt sustainable business practices would rise in the next five years even more than it has in the past five years. Barriers to increased sustainability included a lack of decision making frameworks which could take environmental factors into account and an inability to document a link between sustainability initiatives and shareholder value. Companies cited in the report include American Electric Power, Bank of America, Dow Chemical, Herman Miller, and Weyerhaeuser.
LARGE COMPANIES SHOULD LEAD THE WAY FOR SMEs
Big corporations should lead the way in capacity building, according to the conclusion of an informal study by the World Business Council for Sustainable Development into relations between large corporations and SMEs in the developing world. The study, which surveyed representatives from both large corporations and SMEs discovered gaping differences of opinion between the two groups. Large corporations often thought they were doing a job building relationships with SMEs, while SMEs did not always see the benefits. Issues included a lack of trust between the two, bureaucracy, and a lack of confidence in SMEs to produce quality goods in a safe and sustainable manner. Becky Brown of Caterpillar, a member of the study team, said: “We need to take responsibility for the relationship, otherwise governments may step in and establish policies and regulations that will be more difficult for us to work with.”
Contact
World Business Council for Sustainable Development
0041 22 839 3100 www.wbcsd.org
HAS MICROFINANCE’S MISSION GOT LOST IN THE MAINSTREAM?
A study titled Stemming the Tide of Mission Drift: Microfinance Transformations and the Double Bottom Line was released on 30th April by Women’s World Banking (WWB), a network of microfinance institutions in 29 countries. Findings by the WWB include the suggestion that microfinance might be loosing its original mission as it becomes incorporated into the mainstream banking world.
The study examined what happened at 27 organisations as they changed from nongovernmental (typically not-for-profit) into regulated financial institutions, and found that they often end up lending to a smaller percentage of women, for whom they had originally been set up to help. Improved access to funding and product diversification were the motivations most commonly cited for organisations to become formalized.
Such movement in the industry was generally considered exciting in terms of potential for growth, but the WWB network used the report to emphasise the importance of remembering poor and low income female entrepreneurs and their central role in the mission to reduce poverty. While higher income and less risky clients or high interest rates might generate better profits, WWB urged the microfinance industry to remain alert to the potential for mission drift.
Businesses that switch to low-emission cars for their company fleet will not only be saving the environment, but could also save themselves money according to a report by the Energy Saving Trust. Behind the Wheel 11 demonstrated that because of a new tax break for vehicles emitting 120 grams or less of carbon dioxide per kilometre, companies who changed their cars could save up to £660 million a year from reduced fuel consumption.
Human Rights News Round-Up (Issue 97)
February 11 2008
by Briefing staff
December 2007 and January 2008’s round-up of human rights news.
Fanning the flames
UK mining companies are complicit in human rights violations in developing countries according to a report published in late November by War on Want. Fanning the flames: The role of British mining companies in conflict and the violation of human rights considers the mining companies Verdata, Anglo American, BHP Billiton and Rio Tinto and calls on the UK government to rely less on self-regulation and to acknowledge that “the voluntary approach to CSR has failed”.
The campaign group wants local communities to have the right to seek redress in the UK if they have been affected by the operations of British mining companies, for the government to expand the reporting requirements of the Companies Act 2006 so that all UK companies in the extractive industry have to report on their social and environmental impacts, and for the government to support the establishment of binding international standards for corporate accountability including an effective complaints mechanism for victims of corporate human rights abuses. Some of the companies involved have responded to the allegations. Contact War on Want 020 7549 0555 www.waronwant.org
Dream for Darfur
Companies must take action on Darfur before the Beijing Olympic Games begin in August this year according to a New York-based campaign group. Dream for Darfur is hoping that the pressure on corporations will force China to take action in the Darfur region of Sudan, which has strong business and political links to China.
The organisation published And Now… Not a Word from Our Sponsors at the end of November, which failed or gave D’s to 16 of the 19 top official Olympic sponsors, including Coca-Cola, Visa, Panasonic, BHP Billiton as well as Microsoft. Only General Electric gained a C grade because it has contacted the International Olympic Committee about the crisis in Darfur and has provided aid. The report also makes recommendations for immediate action, which includes publicly acknowledging the problems, engaging in dialogue with China and combining forces with other sponsors.
Contact Dream for Darfur 001 646 823 2412 www.dreamfordarfur.org.uk
Bank secrets
Many financial groups are supporting human rights violations according to a report from a Belgian NGO. Bank Secrets (Bankgeheimen) was published by the financial watchdog Netwerk Vlaanderen at the end of November. The group accuses investors of financing weapon manufacturers, co-operating with armed rebel groups and polluting the environment as well as a number of other violations. Banks that are profiled in the report are ABN AMRO, AXA, Citibank, Deutsche Bank, Dexia, Fortis, ING and KBC. Contact Netwerk Vlaanderen 0032 2 201 07 70 www.netwerkvlaanderen.be
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