The Last CSR Class

1. The Last CSR Class Professor McElhaney 9 May 2007 MBA 292.1

2. Tonight • Dreyers & PWM project presentations • CSR in the News • Personal SR Strategies • Final Class Deliverables • CSR Wrap-Up • Course Evaluations (Margo)

3. Final Deliverables • Due by 5 pm, Monday, May 14th • Deliver one hard copy, one electronic copy to me • Deliver one hard copy, one electronic copy to your liaison(s) • Don’t forget peer evaluations

4. CSR in the News • Leaders will always be targeted • For Kids By Kids • Choices Expand for "Green" Investors • In February, JPMorgan and Innovest Strategic Value Advisors announced the first bond index “designed to address the risks of global warming” • The new JPMorgan Environmental Index-Carbon Beta is intended to take into account risks and opportunities bond issuers face as they address climate change

5. CSR in the News • Trademarking Coffee: Starbucks, Dean's Beans Strike Bargain with Ethiopia • Coffee companies shift from opposing to honoring Ethiopia's new system to protect its coffee names and increase revenues for small farmers • Starbucks and Dean's Beans are joining the dozen other US companies in signing agreements with the Ethiopian government to honor the trademarks • PepsiCo Joins United States Climate Action Partnership • PepsiCo recently announced its landmark purchase of renewable energy certificates (RECs) to match purchased electricity used by all PepsiCo US-based manufacturing facilities, headquarters, distribution centers and regional offices • PepsiCo also has a number of facilities using renewable energy, including six Frito-Lay distribution centers in California and New York using solar power and a seventh under construction in Arizona

6. CSR in the News • Corporate Board Committee on Human Rights Resolution on Ballot at Yahoo! Inc. Annual Shareholders Meeting • Harrington Investments, Inc., a Napa, California-based SRI advisory firm, has been successful in defeating a Yahoo! Inc. corporate challenge to keep a shareholder resolution on human rights off the ballot for the annual meeting scheduled for June • "This is the first time a binding by-law amendment to create a corporate Board Committee on Human Rights has made it on a shareholder ballot," said John Harrington, President and CEO of HII. "The internationally recognized moral issue of human rights will now become an important fiduciary issue for corporate directors"

7. CSR in the News • Novartis Delivers Malaria Medicine to Tanzania • Swiss pharmaceutical firm Novartis AG delivered 4.7 million treatments of its anti-malaria medication Coartem to the United Republic of Tanzania in East Africa this week, where malaria is the leading cause of death • A Greener Apple? • http://www.apple.com/hotnews/agreenerapple/

8. Personal SR Strategies Share your inspiration and learnings?

9. In case he wants to share... • DFILM • DFILM • DFILM • DFILM

10. New Fall 2007 Class! MBA 292.2 Social Enterprise:  The Convergence of Business & the Social Sector Tuesdays, 6-9:00, 2 units, Cheit 300 Course Summary:  This course will explore the spectrum of activity in the emerging “fourth sector”, where business models and activities are applied to address social issues.  Topics covered will include private and nonprofit social ventures, social entrepreneurship, and social investing.  Course content will include a combination of lecture, readings, guest speakers, and a group project that can be related to plan development for the GSVC if desired.  Instructor Bio:  Jim Schorr’s experience at the intersection of business and the social sector spans a variety of activity over the past 15 years.  Since 2000, Professor Schorr has led Juma Ventures, one of the world’s leading social enterprises.  Juma develops business enterprises to create employment opportunities for at-risk youth and was the 1st nonprofit organization in the US to operate a corporate business franchise (Ben & Jerry’s shops in San Francisco).  As an MBA student at Kellogg in 1993, Jim was a co-founder of Net Impact.  In recent years, Jim has been published in the Stanford Social Innovation Review, has guest lectured at Haas and several other MBA programs, and has served as a judge in the GSVC annually since 2001.  Currently, Jim serves on the Board of Directors of Net Impact, Social Enterprise Alliance, and Evergreen Lodge, an innovative for-profit social venture he helped launch in 2001. 

11. CSR Take-Aways • The arguments against good strategic CSR just aren’t that strong • Growing body of data to support components of CSR; will never be one silver-bullet, off-the-shelf case • CSR is one component of overall corporate strategy, not meant to be stand-alone panacea • Start and end CSR case with business objectives integration • Communication is critical (internal & external) • Engagement is critical (internal & external) • Not all “CSR” is strategic, or good business • Understand risks, limitations, constraints • All change starts with one voice, one strategy

12. Map Your Companies and Move Them Simon Zadek, 2004

13. Work Towards the Frontier FRONTIER (Intrinsic) Strategic Structural + society, + shareholders + society, - shareholders Compliance Choice CIVIL FOUNDATION (instrumental)

14. Start, Move, Change

15. Use Your Tools • Conduct current CSR assessment • Map issues, vulnerabilities, opportunities for firm • Benchmark against competitors, peers, leaders in industry • Map CSR to current corporate strategy (business objectives and competencies) • Look for gaps, opportunities, risks, partnerships, collaborations • Develop CSR strategy: focus, set goals, plan for implementation

16. Use Your Tools • Leverage resources (existing, then new) • Sell internally, leading with business case, link to firm objectives • Refine, measure, evaluate and report on progress, KPIs • Leverage small wins, build momentum • Build cadre of supporters, spheres of influence, beyond one person, one department • Develop communications strategy (to whom, who communicates) • Integrate into all corporate communications, branding, messaging (internal & external)

17. CSR Necessities for Companies • Deeply ingrained values • Strategic positioning • Top management support • Systems alignment (structures, systems) • Metrics of impact • Integration across functions • Stakeholder engagement

18. You Are Now CSR Teachers • Students retain • 5% of what they hear in lecture • 10% of what they read and hear • 20% of what they see, read, and hear • 50% of what they discuss, see, read, and hear • 75%of what they do, discuss, see, read, and hear • 90%of what they teach to others,do, discuss, see, read, and hear

19. It’s never too late to be who you might have been. - George Eliot

20. You have been exposed to the CSR wave…. … but the waters are still full of sharks.

21. The only thing necessary for the triumph of evil is for good men to do nothing. - Edmund Burke

22. CSR is not about how you spend the money you make,CSR is about how you make the money you spend. How will YOU make your money?

23. Please hold on to your soul and don’t be a soldier.

24. THANK YOU for inspiring and re-energizing me, sincerely.