Key Components of a Socially Responsible Company by Conrad MacKerron

1. Key Components of a Socially Responsible Companyby Conrad MacKerron

2. Our Mission Use the power of financial markets to strengthen corporate social and environmental policies

3. Shareholder Advocacy –Mobilizing Financial Markets for Social Change • Corporate Engagement • Shareholder Proposals • Proxy Voting

4. Blue Chip Engagement More than 50 corporate engagements moving companies towards greater environmental sustainability and social equity.

5. Quality of management Compliance with laws Honest accounting Financial soundness Product quality Traditional Measures of Corporate Responsibility

6. Challenging But Essential Policies Environmental Stewardship Human Capital

7. Key Components of Environmental Stewardship Policies and practices to promote: • Materials Efficiency • Reduced Toxics • Reduced Waste • Extended Producer Responsibility

8. Key Components of Human Capital Policies and practices to promote labor rights and deter… • Forced Labor • Child Labor • Slave Labor

9. ProductStewardship Shifts responsibility for recycling and safe disposal from society to producers 17 states -- producer responsibility laws for electronic waste 11 states – beverage container deposit laws

10. Apple’s Commitment to As You Sow

11. Best Buy’s Commitment to As You Sow The largest U.S. electronics retailer began to offer electronic waste recycling at all of its 1000+ stores in February They expect to collect 50 million pounds of electronics in 2009

12. Bottle and Can Recycling Problem • 66% of beverage bottles and cans are wasted! Action • Coca-Cola agrees to recycle 50% of bottles and cans it sells by 2015 • Nestle Waters agrees to recycle 60% of PET plastic bottles sold by 2018

13. CFLs and Mercury In dialogue with GE, Home Depot, Lowe’s and Wal-Mart to encourage: -No worker exposure to mercury at factory level -Labeling of mercury content -Labeling of safe cleanup procedures if bulbs break

14. Uzbek cotton • Every fall, over 1 million Uzbek children are taken out of the classroom and into the fields—by government mandate— to pick cotton. • Wal-Mart called for a boycott on Uzbek cotton; Target, Gap Inc., Levi’s & Co., Marks & Spencer, and Tesco have all made public statements and taken steps internally to eliminate Uzbek cotton from their supply chains.

15. Labor Rights Codes of Conduct

16. Build brand social value Easier to implement policies early on Transparency builds stakeholder respect Lower operational costs Negative media -Union Carbide - Bhopal -Enron/Andersen scandal -Exxon Valdez spill -Nike – sweatshop labor -Gap – sweatshop labor Activist NGO campaigns Issue management costs Remediation costs Risks of Inaction/Benefits of Action

17. Key Take Away #1 Environmental Stewardship Reduce/remove toxics Responsibility for recycling/disposal

18. Key Take Away #2 Implement supply chain Code of Conduct to assure worker labor rights

19. Key Take Away #3 Cross-Silo Effect: When environmental and social issues overlap CFL- production/ consumer safety E-waste disposal– protect people/ earth

20. Shareholder Engagement Promoting Best Practices Social and Environmental Policy Consulting Strengthening Corporate Responsibility