BOOK REVIEW: Values-Driven Business

Values-Driven Business: How to Change the World, Make Money and Have Fun
Authors: Ben Cohen and Mal Warwick

What is the definition of Corporate Social Responsibility (CSR)? Ask 5 people and you will likely get 5 different answers. Mal Warwick and Ben Cohen’s book does not offer us a specific definition, but openly describes the unlimited options that businesses have to incorporate the various CSR values each finds uniquely important.

Perhaps your business would like to make a priority of giving back to the community or working on creating a supply chain that has minimal negative social and environmental effects, but you do not know how to get started. Maybe you are a business owner that desires to generously reward your employees, but fears it could affect your “bottom line.” Values-Driven Business inspires and encourages companies to pursue their own individual choices for CSR by sharing a number of stories from existing successful companies.

For instance, Juniper Communities, an assisted living company, built a 95-unit facility following nationally recognized building standards, resulting in a LEED certified building and revealing its commitment to a lighter footprint. Immaculate Baking not only buys the rights for the art used on its packaging for its organic goods, but was inspired to create a foundation that supports many of these artists that were more than just “struggling”, but barely surviving. Eileen Fisher, a women’s clothing company, offers a generous benefits package to its employees that includes profit sharing and $1000 per year, per employee for wellness classes and treatments.

Just as important as its stories, this book becomes an invaluable resource providing suggestions and tools a business can use to take the first step in implementing values unique to the goals of each enterprise. The authors decide to use the term Value-Driven Business in their book rather than CSR, but as explained in the preface it is a personal preference and along with a number of other common terms, can be used interchangeably.

The authors focus on the Small and Medium Based Businesses out there that are either curious about this concept or are ready to jump head first into this emerging and exciting facet of business. Whatever the goal of the reader, this book takes a step-by- step approach to encouraging enterprises to make decisions based on social, environmental and economic principles. It asks the reader critical questions such as “why are you in business?”, “are you ready to take the plunge?” and “can you make money in a values-based business?” The authors provide the guidance and tools for each individual business to answer the questions for itself.

RESOURCES: Climate Change for Small Business

Individual small business owners often have difficulty imagining their role in managing climate for the simple reason that it's hard to measure climate impact on such a tiny scale. But the total climate-related impact (or "carbon footprint") of small businesses certainly add up. While your small business may produce actual greenhouse gas emissions, it certainly has an indirect impact on climate: electricity, heating, cooling, and transportation all translate into BTUs with global warming potential.

So begins Climate Change for Small Business, a background brief from ClimateBiz.com. This 5-ish page document outlines why small businesses should care about their contribution to climate change, steps for calculating a small business's climate change impact, and a list of resources for further information.

If you've seen An Inconvenient Truth but aren't quite sure what YOUR business can do to help combat climate change, this white paper is a great place to begin. Once you've read it, we're convinced that you'll want to take the next step in calculating your office's carbon footprint.

That's where we come in--Strategic Sustainability Consulting now offers Office Carbon Footprinting. In addition to measuring your climate change contribution, we'll also recommend ways to go carbon neutral in the most cost-effective and credible way possible.

Contact me at jennifer@sustainabilityconsulting.com or 202-470-3248 for more information--let's talk!

RESOURCES: WeBreatheGreen.com

As our network of contacts grows, we've recently run across several companies with super cool products and services. Not only do they make use of cutting edge technology and capitalize on the Web 2.0 social media frenzy, they also offer great ways to learn more about how people are thinking about the environment.

So with much enthusiasm, I encourage you to check out Peacock Nine and their WeBreatheGreen tool. Here's a summary from their Vice President, Leila-Scott Mitchell:

Peacock Nine is a boutique consumer research and strategy consulting firm based here in Chicago and Shanghai. Our goal is to help close the gap between companies/decision-makers and their customers/consumers so that they can place safer “bets” (product portfolio, pricing, communications, organizational strategies, etc.) that are aligned with the unmet needs of those they serve. While we conduct traditional market research (focus groups, surveys, etc.) we are also leading the revolution when it comes to creative consumer research by continually adding to and revising our suite of online research tools.

Philosophically, we are a team of creative, ravenously curious individuals who believe in helping our stakeholders fulfill their personal passions. My personal passion, for instance, is to make a positive and lasting contribution to the “Green Movement”! Our latest foray into helping our clients understand the green world is www.WeBreatheGreen.com.

WeBreatheGreen is an online community of eco-conscious individuals who are willing to share their voices regarding the “green” marketplace (product ideas, packaging preferences, best practices, messaging refinement, etc.), ultimately serving as advisors to decision-makers who understand the importance of their customer’s/consumer’s opinion. The benefit of utilizing a Customer Cabinet^TM such as WeBreatheGreen is continual access to an otherwise “expensive” sample, longitudinal data collection and consumer-driven insights for a fraction of the cost of traditional market research. In short, a community like WeBreatheGreen gives our client’s significant competitive advantage by tapping into the collective intelligence of their existing and potential customers/consumers.

I love the idea of tapping into the mind of the eco-conscious individual--what a cool way to help keep the Green Movement chugging along!

RESOURCES: The Search for Green Is Over

Watch out Google, Yahoo, and Ask.com, you’re about to get a dose of green power. Greenmaven.com is a green search engine which allows users to search for websites which incorporate social and environmental values. Using co-op technology based on Google's search engine, Greenmaven.com is able to make searches quick and relevant. Launched in 2006 by green MBA graduates, Greenmaven.com’s mission is to “make it easy for mainstream to go green.” Founder Joey Sheep states, “People want to go green, but they often don't know where to start or even what questions to ask." Now, seekers have a place to go, and making it onto Time.com’s list of the top 10 best websites of 2006 will help users go green.

RESOURCES: CSE Knowledge Bank

The Center for Sustainable Enterprise [CSE] Knowledge Bank is a new resource for those seeking information on sustainability. This is a FREE resource offered by UNC Kenan-Flagler's Center for Sustainable Enterprise. The articles include scholarly research on a wide array of topics, including, but not limited to, design for sustainability, microfinance, sustainable tourism. CSE runs an MBA program on sustainable enterprise, and thus is at the forefront of the research. It’s free…and did we mention that it’s free!

RESOURCES: How Green Is Your Meeting?

Now, your company can measure its environmental impact, thanks to a new service called the MeetGreen Calculator. This web-based service allows anyone to measure their meeting practices against green best practices. MeetGreen Calculator will give the user help in meeting these green standards. Examples include having attendees walk or use mass transit, buying food locally and donate left-overs to local food banks, using reusable cups and large-capacity water jugs rather than individual water bottles, and the like.

The results can lead to cost reduction, waste reduction, helping local communities, and the environment. The MeetGreen Calculator was recently used at the World Urban Forum. Ginny Stratton of Globe Foundation of Canada stated, “We are ecstatic to know that the host of practices we employed resulted in the highest possible MeetGreen rating and hope that the results of our efforts will create a legacy for future organizers of the World Urban Forum.” Some major companies that have employed the MeetGreen Calculator are the Sierra Club, US Green Building Council, Globe Foundation of Canada and the Business for Social Responsibility.

RESOURCES: Making an Employee Handbook

One of the biggest challenges facing small business is finding the balance between flexibility and formality—between innovation and stability. When is it okay to fly by the seat of your pants, and when are rules and guidelines necessary for success?

While each situation is different, one area is clear: when it comes to managing a successful workplace, an employee handbook is essential. And this article from Inc. will show you how to go about constructing a solid handbook that benefits you and your employees.

An employee handbook should explain more than rules. It offers you the opportunity to set expectations and communicate your company's mission and culture as well. What is an employee handbook? Is it the rules you expect your employees to follow? Is it a marketing piece designed for future employees? Or does it provide a roadmap to make business decisions that impact employees? It all depends on the message you want to deliver.

What should you include? The article suggests the following outline to get you started:

-- Introduction

-- Employment Policies

-- Employee Conduct

-- Compensation

-- Benefits

-- Leaves of Absence

-- Health and Safety

-- Employment Separation

Read the article for more information, and get started on your employee handbook today!

RESOURCES: Taxes for "Green" Business

It's that time of year again, when the W-2s start arriving in the mail and your accountant's phone starts ringing off the hook. As your business begins the time-consuming and mind-scrambling task of annual taxes, don't forget that it pays to be green!

Starting this year, commercial buildings meeting certain energy-savings targets can by deducted by as much as $1.80 per square foot of your taxes. Information on getting certified for the new deduction is available here.

Also starting this year, businesses the use hybrid or alternative fuel vehicles for commercial purposes can qualify for a tax credit.

Not too shabby!

RESOURCES: Keeping Your Employees Happy

A new Hudson Survey reveals that the age of your workforce has an impact on how to keep your employees happy. The results? Younger workers want more feedback from managers, greater access to management, and social interaction with their bosses than their older counterparts. They are also (not surprisingly!) more likely to appreciate email and instant message communications.

So as you start 2007, think about how your management style appeals to different generations, and how you might improve employee-management relations. And for a quick employee morale boost, check out this article on low-cost perks that will make your staff thrilled to call you their boss:

While large companies have long touted major corporate perks, including tuition payments and daycare on site, many smaller businesses are now providing plenty of attractive low-cost perks that are having some very positive results. If you're thinking of doing something more than giving your "Employee of the Month" the best parking space, here are 20 possibilities for you to consider.

Our favorites?

Work from home days—not only do they allow employees to catch up on work in a slipper-friendly atmosphere, it's also a great way to eliminate the environmental impacts of a long commute.

Community service days—make a difference in the local community and build a sense of teamwork.

Yoga classes—get centered, improve health and wellness, reduce stress…and get your butt out of that desk chair!

RESOURCE: The Benefits of Employee Volunteer Programs

Employee volunteer programs are a great way to boost employee morale and enhance your organization's reputation in the local community. Today, more than 90% of Fortune 500 companies have employee volunteer programs, and an increasing number of small and medium size businesses are discovering the myriad benefits that these initiatives can have.

So if you're thinking about developing an employee volunteer program, or want to make sure you're getting the most of your existing programs, consider the following:

Aligning volunteerism with your business mission.

There is absolutely no reason that employee volunteerism can't grow organically—driven by staff interests. And if you have employees asking for company support for a 5K charity run, a bake sale, or a clothing drive for the homeless, then go for it.

But if you're in the process of developing a volunteer program from the ground up, make sure the program is aligned with your business's mission. From a marketing standpoint, it's a smart decision—and it can give your employees a chance to use their business skills for good. For example:

¨ If you are a bank, set up an employee volunteer program where staff provide financial advice to low income women, or provide victims of domestic violence with advice on how to become financially self-sufficient.

¨ If you are a restaurant, consider ways to donate your left-over food to a homeless shelter. Or arrange to have employees deliver meals to families with a seriously-ill child in the hospital.

¨ If you are in a hi-tech firm, develop a mentoring program to encourage minorities to pursue engineering degrees. Talk to a local high school or community college and see if there are ways to match students with employees for short 2-4 week after-school projects.

Generating employee participation.

One thing that drives me crazy is companies who tout their great employee volunteer programs, but provide little incentive to those staff that choose to pursue volunteer opportunities. It's great when workers are willing to go the extra mile for a good cause, but companies—with very little effort—can make it easier to do the right thing. Try the following:

¨ Give employees paid time off to volunteer. Allowing employees to take an afternoon (or even a full day) every month to pursue volunteer activities is probably the most effective incentive to increase employee volunteerism.

¨ Recognize employee volunteerism with awards. A little recognition goes a long way, and publicly recognizing employees who contribute back to the local community is a great way to showcase their efforts. Make it part of your quarterly report to shareholders, or a component of your annual holiday party.

¨ Tie it in to job descriptions and performance reviews. Encourage staff to find creative ways to give back to the community by creating financial incentives. This not only demonstrates your commitment to employee volunteerism, but also makes it easier for workers on a tight budget to rationalize time away from the job pursuing volunteer opportunities.

Tracking your progress.

Last week the Corporate Community Involvement Summit, a coalition of nonprofit organizations, announced the development of standards for corporate volunteer reporting. These standards will help to track trends, benchmark programs, and encourage better practices in employee volunteer programs. The Corporate Volunteer Reporting Standards can be used to:

¨ Establish a common baseline for benchmarking;

¨ Encourage greater corporate community involvement;

¨ Enable consistent comparisons and common reporting;

¨ Elevate the internal dialog on employee volunteer programs to communicate more effectively the internal and external corporate benefits; and

¨ Facilitate the use of better employee volunteer program practices.

Want to learn more about setting up (or improving) your employee volunteer program? Email me at Jennifer@sustainabilityconsulting.com for a complimentary consultation!

RESOURCES: What's the Difference Between "Ethical" Trade and "Fair" Trade?

Making sure that your suppliers are providing your organization with socially and environmentally responsible products can be a daunting challenge. Common questions include:

• Where can I buy environmentally friendly products at competitive prices?
• How can I be sure that basic labor and human rights are respected by our vendors?
  
• Do we have the time and resources to make sure our ethical purchasing policy is really being implemented?

And now, a new question: what's the difference between "ethical" and "fair" trade?

For the answer we go to Ergon, an independent network of labour rights, human rights and governance experts "committed to working with leading-edge organisations that are serious about addressing their responsibilities". Ergon's October 2006 newsletter explains in simple terms the difference between "ethical" and "fair" trade (check out the whole article on page 4 for a great analysis), but what you really need to know is this:

‘Ethical trade’ is commonly used to describe the work of multi-stakeholder supply chain labour standards initiatives, such as UK Ethical Trading Initiative (ETI), US Fair Labor Association (FLA), Social Accountability International (which has developed the SA8000 model), and the Dutch Fair Wear Foundation. Adopting a non-premium paying, non-certification model operating in the mainstream economy, these initiatives aim to achieve incremental improvements in supply chain labour standards through the use of influence derived from trading relationships.

The ‘fair trade’ model, exemplified by Fair Trade Labelling Organizations International (FLO) or The International Fair Trade Association (IFAT), emanates from the ‘alternative trade’ movements of the 1950s and 60s. Generally speaking, it is a premium-paying, niche-market model of certification, commonly working with agricultural smallholders in developing countries, although FLO has in recent years developed a standard for hired labour, such as plantation workers. Under this model, payment to producers is determined by reference to a fixed and regularly updated commodity price and a ‘social premium’ which is invested by collective agreement of the producers.

What does this mean for your organization? In most cases, your organization will focus on "ethical" trade—developing a system where social and environmental criteria are included in a purchasing policy. A program to ensure compliance is then designed, and usually includes voluntary disclosure and/or auditing of suppliers, as well as remedial plans for those suppliers who may just need a little help. Those who continue to meet the ethical criteria receive "preferred supplier" status; those who fail to uphold basic social and environmental criteria are ultimately de-listed from approved supplier lists.

Complicated? It can be. At Strategic Sustainability Consulting, we help clients design ethical supply chain standards that are easy to manage, are cost competitive, and ensure that socially and environmentally-preferred products make it to your doorstep. If you'd like a complimentary consultation to find out more about how to implement an "ethical" trade policy, email me at Jennifer@sustainabilityconsulting.com for more information.

RESOURCE: HIV in the Workplace

Yesterday's Washington Post article On the Job with HIV caught my eye. It's about Jennifer Munthali, who told her boss at Catholic Relief Services (CRS) that she was HIV positive in 2004, shortly after starting her new job there.

Her manager handled the news well. But neither he nor Munthali was sure what CRS's policy was on HIV treatment. She didn't know if her insurance at the Baltimore organization would cover her. And she didn't know what policy -- if any -- CRS had on HIV and AIDS treatment and support.

I wasn't really surprised to read about Munthali's story. My experience is that very few organizations have well-developed HIV/AIDS programs. But what most organizations don't know is that there is a GREAT resource available for free!

The CDC's Business Responds to AIDS website is chock full of helpful ideas to take your organization to the next level. Just on the front page are:

• All the resources your company needs to build a workplace program are in the Manager's Kit.
• The Labor Leader's Kit includes all the resources labor leaders need to build HIV/AIDS workplace programs.
• Is your workplace prepared to address HIV/AIDS-related issues? Use the new assessment tool to find out.
• Use the SHRM sample HIV/AIDS workplace policy as a resource for your workplace.

And if you need a little extra help in creating an HIV/AIDS program, give Strategic Sustainability Consulting a call! We can assist your organization in developing an HIV/AIDS policy, compiling information on your current health insurance policies, conducting employee and manager training, and maintaining an ongoing system of HIV/AIDS awareness building. Email me at Jennifer@sustainabilityconsulting.com for a complimentary consultation and we can talk about it!

RESOURCES: Get Inspired by the Experts

I'm frequently asked what books I consider to be essential background for sustainability practitioners. A few years ago I could have rattled off a handful and felt pretty good about it. For example:

• Natural Capitalism: Creating the Next Industrial Revolution, by Paul Hawken
• Biomimicry: Innovation Inspired by Nature, by Janine M. Benyus
• The Sustainability Advantage (and the sequel, The Next Sustainability Revolution), by Bob Willard
• Cradle to Cradle: Remaking the Way We Make Things, by William McDonough
• Mid-Course Correction: Toward a Sustainable Enterprise: The Interface Model, by Ray Anderson

But as sustainability grows in popularity, the number of important books on the topic has increased exponentially. At any given time, I have a stack of sustainability-related books on my bedside table, and no matter how many I diligently plow through each month it seems like the list of "must-reads" just gets longer. Here are a few at the top of my list:

• The Business Guide to Sustainability: Practical Strategies and Tools for Organizations, by Darcy Hitchcock
• Green to Gold: How Smart Companies Use Environmental Strategy to Innovate, Create Value, and Build Competitive Advantage, by Daniel C. Esty
• Leading Change Toward Sustainability: A Change-Management Guide for Business, Government and Civil Society, by Bob Doppelt
• Worldchanging: A User's Guide for the 21st Century, by Alex Steffen
• Organizational Change for Corporate Sustainability, by Dexter Dunphy

And just in case you don't have time to get through an entire book, check out these video clips—in just a few minutes you can get inspired by experts in a variety of sustainability-related fields:

• Big Picture TV - an online media channel that streams free video clips of global leaders in sustainability. Browse a growing archive of internationally renowned names including scientists, environmentalists, politicians, journalists, academics and activists.
• Arnold Creek Productions Video Shorts – a new series of free viewable short videos on sustainability and social responsibility. They're designed to further public awareness about sustainability and related issues of the day.

But beware—those few minutes can easily become a few hours, so plan carefully!

RESOURCE: Helpful Websites for Small Business CSR

It's time for another list of helpful resources for small business. Enoy!

Intangibles and CSR
Source: Business for Social Responsibility (via GreenBiz)

Understanding how value is created through assets like knowledge, expertise, and operating systems -- the "intangibles" -- is integral to understanding how long-term wealth can be created and enhanced through strong CSR (corporate social responsibility) performance. Published in April 2006, this business brief explores the multifaceted link between a company's "intangible assets" and CSR. The brief provides a framework for better understanding the business case for CSR.

Sustainability Engagement Boosts Financial Performance
Source: Ethical Corporation (via Greenbiz)

The research arm of a leading sustainable investment fund has produced a new report grading more than 1200 companies by their preparedness in terms of environmental and other CR issues, providing more evidence for a link between non-financial and financial performance. The research, published jointly with consultants PricewaterhouseCoopers, represents one of the most complete efforts so far to compare companies, and sectors, based on their non-financial performance.

Zero Footprint

Zerofootprint’s goal is to connect people who care about the environment for the purpose of reducing ecological footprint. The organization aims to be the world’s foremost content hub for green, linking millions of people from across the globe engaged in sustainable commerce, and helping to inform people, who want to strive toward a more sustainable lifestyle. Of particular note is the Green Events section, where readers can find environmental events in their local area.

RESOURCE: Climate Change for Small Business

Have you ever wondered, "What can my small business do about climate change?" ClimateBiz now has a dedicated section of its website devoted to helping answer that question.

Individual small business owners often have difficulty imagining their role in managing climate for the simple reason that it's hard to measure climate impact on such a tiny scale. But the total climate-related impact (or "carbon footprint") of small businesses certainly add up. While your small business may produce actual greenhouse gas emissions, it certainly has an indirect impact on climate: electricity, heating, cooling, and transportation all translate into BTUs with global warming potential.

RESOURCE: Choosing An Environmental Consultant

Choosing an Environmental Consultant: Guidance for Small Businesses is a free, 32-page document by The New York State Environmental Facilities Corporation, Small Business Assistance Program.

The Small Business Assistance Program (SBAP) created this guide to provide information so that small businesses that need to hire an environmental professional can make an informed decision. This guide will help you more knowledgeably hire an environmental consultant by:

-- guiding you through the proposal process
-- listing questions to ask consultants
-- suggesting how to review the proposals you receive from prospective consultants
•-- providing tips for negotiating a contract with your chosen consultant

Although this guide deals primarily with companies needing technical environmental services (like help deciphering Clean Air Act regulations), the general scope of the report is helpful for businesses deciding to take the plunge with outside consulting services.