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Sustainable Business | Still A Long Way To Go

Long Way To GoSchool.  Everyone has their own memories of school, how well they did or didn’t do, and why.

I’ve recently been talking to my eldest about school.  He’s at the end of primary school (year 6) and I was attempting to explain how important it is to take full advantage of your years in school for your future life and prospects.

The chat was successful and we now recognise that a lot of effort is required from both of us over many years before he matures into the job-wielding adult of our dreams and aspirations.

All of which sprung to mind as I looked over a list of the 859 companies kicked out of the United Nations Global Compact (UNGC) at the start of this month: a lot more time and effort is required, by all parties concerned.
[Read more…] about Sustainable Business | Still A Long Way To Go

Why Sustainable Businesses Need To Fight Corruption

The crowning of Lewis Hamilton as Formula One’s Youngest World Champion has some parallels for businesses keen to show they’re not corrupt.

I cannot have been the only one thrilled by excitement of last weekend’s Brazilian Grand Prix and Lewis Hamilton’s crowning as the youngest ever Formula One World Champion.

However, you must feel sorry for Filipe Massa. When he crossed the finish line HE was World Champion. Seconds later, Hamilton passed a suddenly slower Timo Glock, wresting the crown away from Massa by one point.

There have been the inevitable accusations that Glock was bribed to let Hamilton through. This has been a season of dubious decisions and, whether the allegation is true or not, it’s difficult not to wonder if there is some truth in at least some of the whispers.

Transparency International and Dow Jones Unite Against Corruption

Corruption is as much an issue for ordinary businesses as it is for Formula One. While the CSR facet of sustainability is about restoring corporate trust, corruption is all the betrayal of all trust for personal gain.

Thankfully there has been an organisation fighting against corporate corruption for over fifteen years: Transparency International (TI).

TI doesn’t conduct investigations into individual cases, although it will lend assistance in special circumstances. It’s focus is upon advocating transparency in the business arena as the means to stamp out corrupt practices once and for all.

Now it has entered into a two year partnership with Dow Jones, publisher of the Dow Jones Sustainability Index. The deal will considerably strengthen the efforts of both organisations to promote transparency and eradicate corruption among the business community.

As part of the deal, Dow Jones will give TI free access to two of its products. The first is Factiva, a news service which amalgamates various sources including the Financial Times, the Wall Street Journal, Associated Press, Dun & Bradstreet and Reuters.

The second is their Watchlist product. This tracks Politically Exposed Persons (PEPs); people from all over the world who could use their current or recent position in public office for private gain. There are nearly half a million PEPs worldwide: many have the same opportunity for corruption, though only a few take it.

World Map
Corruption Perception Index 2008

Bribery and Corruption In Your Western Country

But what, you may be asking yourself, has all this to do with enlightened Western democracies? Surely there’s no corruption in the UK, EU or USA?

Just over a month ago, the UK was described by TI as “a place where corrupt business is done”. It went on to call upon the Government to “stop procrastinating and address the fundamental weaknesses” in its approach to bribery and corruption.

This criticism was prompted by a stinging assessment of the UK’s anti-corruption framework by the Organisation for Economic Co-operation and Development (OECD).

This included four sweeping recommendations and the requirement that the country produce quarterly written reports to the OECD’s Working Group on Bribery.

However, according to TI’s 2008 Corruption Perception Index, the UK is seen as the sixteenth least corrupt country, with the USA ranked eighteenth.

If leading countries such as these are finding it difficult to meet their international obligations then you have to wonder about the businesses they are charged with regulating.

The Suspicion of Corruption

There are persistent rumours in Formula One about backroom deals and bias towards certain teams and drivers. No matter the veracity of these rumours, it’s the perception of a fixed championship which will stick more than any denial.

So it is with business. One or two questionable decisions (such as the UK-Saudi Al Yamamah Defence Programme) can lead to a wholesale collapse in trust and leave many companies unfairly tarnished with the same brush.

It therefore seems sensible to recommend that all businesses should include in their sustainability reporting a statement on transparency, preferably from the Global Reporting Initiative or another internationally accepted standard.

After all, everyone knows that if you’re not transparent you must be hiding something. Or at least, that’s what we all suspect …

Picture Credit: “World Map Index of perception of corruption” from Wikimedia Commons under GNU Free Documentation License.

Sustainability Legislation : The Future of Sustainability Assurance

Gordon Brown at World Economic Forum, 2007Gordon Brown’s love of bondage is well known to all UK voters. He used to boast in Parliament how he’d snuggle up to the dominatrix Prudence and do whatever she asked, so long as she’d eliminate boom and bust.

Now Prudence has been kissed goodbye, her siren whispers left behind as conveniently as any thought of limiting public debt in line with domestic GDP.

It’s a salutary lesson in being so cock-sure of yourself that you forget that life has a remarkable way of turning out differently to how you envisage.

So I thought I’d do a little self examination. There have been several posts on this blog which have concluded along the lines of “business really has to pull its finger out otherwise governments will legislate”.

But would legislation be such a bad thing? [Read more…] about Sustainability Legislation : The Future of Sustainability Assurance

Primark’s Sweatshops: The Future of Sustainability Assurance

Primark Store, ManchesterThink of great classic combinations: Fred and Ginger; Sonny and Cher; Laurel and Hardy. “The BBC and Primark” could soon be added to this list.

Last summer the BBC exposed how some of Primark’s fashion clothing range came from Far East sweatshops.

Now the BBC has done it again, this time showing that Primark’s continues to engage suppliers who use unsustainable employment practices.

Reaction to the news will been varied. Fashionistas may shake their heads sadly and say that the cheap, ethical fashion Primark which claims to sell simply cannot exist.

On the other hand, political deep-reds may get all agitated, saying corporations simply cannot be trusted. Both are, to some extent, correct. [Read more…] about Primark’s Sweatshops: The Future of Sustainability Assurance

Drinks Industry : Accidental Leaders In Sustainability

Alcohol – one of the most damaging drugs ever created by man. Excessive use leads to permanent brain damage and organ failure. Marriages, families and communities are continually torn apart by it.

Last year, the Medical Research Council published a report in The Lancet which took into account not only the physical damage but also the social repercussions of drug misuse.

The report names alcohol as the fifth most damaging drug, behind heroin, cocaine, barbiturates and black market methadone.

Last month, Alcohol Concern released a report showing that nearly three quarters of UK men drink at least once a week, with up to a quarter indulging in binge drinking. [Read more…] about Drinks Industry : Accidental Leaders In Sustainability

Nine website metrics to achieve zero landfill waste | Part 2 of 2

Landfill free benefits
(This is the second of two posts looking at nine website metrics which can be used to achieve zero landfill waste and is based upon General Motors’ blueprint for achieving zero landfill waste.  You can read part one here).

Strengthening Supplier Partnerships

All businesses large and small have suppliers, so you should look upstream to try and work co-operatively with your suppliers to eliminate waste.  For example, useful discussions can be had around packaging, or suppliers may be interested in taking your waste for reuse in their own processes.

Ultimately, looking at the supplier partnerships and building a sustainability culture will bring the business’ strategic aim of achieving zero landfill waste into reality as employees and suppliers self-select depending upon their compatibility with the company’s long term goals.

Resolve Regulatory Challenges

Although sustainability and waste reduction may be high on your company agenda, the regulatory structure supporting them is nowhere near as developed or in depth as is it in many other aspects of business life, especially at the local level.  It’s therefore a good idea to be proactive and seek out associations and groups who share the same objectives as you so that you can face any regulatory hurdles together.

Achieve Landfill Free

It may sound obvious, but once all of these steps are in place you can now start to move towards achieving zero landfill waste.  It will not happen overnight, which is why having the metrics in place will help you to measure the effectiveness of various activities and adapt and improve them as necessary.

It’s also important that these metrics are published on the company’s website.  This is not just to give a data-driven view of the success of your ambition but also to communicate it to other stakeholders: for example, detailing those associations you belong to as part of your zero waste drive can help to attract suppliers who are in tune with your long term goals.

Improve Efforts

Of course, achieving zero landfill waste is not the end of the story.  If you’ve defined that as over 90% of waste going to landfill then there’s always room for improvement.  However there’s always other areas which can be improved upon as well because as waste production falls so do costs and environmental impacts.

Remember: reduction should always come first before reuse and recycling, so until your enterprise really does produce zero waste (landfill or otherwise), there is always scope for improvements.

Share Best Practices

One of the most interesting things about the drive towards sustainability is that it has opened up the whole spectrum of best practice to all comers.  Businesses which have a success in driving down their waste production should be prepared to stand up and speak about their experiences, offering them as best practice and being willing to see them improved in a stepwise manner by other companies.

Similarly a company should not feel bashful about joining in the debate with other businesses and helping to improve their best practices.  This is why talking to suppliers and participating in associations with non-financial objectives are key to attaining business sustainability.

Ultimately its all about communication and co-operation, which is why the publication of metrics on corporate websites is such a critical factor.

Image © General Motors.