Corporate Citizen Magazine Vol. 5

Spring 2011 • Issue 5

The Corporate Citizen Designing for the future

8 Drawing strength to solve problems 11 Office space invaders 14 Cleared for takeoff 22 Know your gig 31 Riding the green wave 36 Managing a career while navigating an evolving field

The Corporate Citizen Spring 2011 • Issue 5

Out front 2 Navigating a shifting terrain 3 Innovation brings sweet success 4 Back to school 5 Assembly line produces happy holiday

Publisher Carroll School of Management Center for Corporate Citizenship at Boston College Executive Editor Peggy Connolly Editor Tim Wilson Art Director Sharon Sabin The Corporate Citizen is published annually by the Carroll School of Management Center for Corporate Citizenship at Boston College, Chestnut Hill, MA 02467.

617-552-4545. www.BCCorporateCitizenship.org. Copyright Š2011.

Postmaster: Send address changes to The Corporate Citizen, Attn: Josefina Chacon, 55 Lee Road, Chestnut Hill, MA 02467-1717.

6 Responsible business response to tough times paid off in reputation

Features

Drawing strength 8

8 Drawing strength to solve problems 11 Office space invaders 14 Cleared for takeoff 17 Mapping the way to a global community involvement program 22 Know your gig 26 Crisis in U.S. classrooms spells trouble for business 30 Citizenship structure and strategy 31 Riding the green wave

Know your gig 22

36 Managing a career while navigating an evolving field 39 A sustainable job for today and tomorrow 40 3 reasons why mandating CSR is not smart, but India goes ahead anyway 44 The future is what we make it

Mandating CSR 40

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Carroll School of Management Center for Corporate Citizenship

Navigating a shifting terrain In this issue of The Corporate Citizen, we explore some of the many ways that corporate citizens are designing the future.

Whether you are thinking about the best way to construct a global community engagement program or other corporate citizenship programs, manage your team, conserve natural resources, innovate on products or programs, or plot your personal career path, you will find something in this issue that can help with your work. I thank the Center members who agreed to share their wisdom directly and be interviewed for stories, and the many more who contributed ideas and experiences to the body of knowledge that we tapped to write them.

Corporate citizenship is part of an evolving covenant between business and a rapidly changing society. Corporations make many contributions to society beyond delivering profit to shareholders and delivering quality and value in the delivery of goods and services to customers – and they are doing it in an increasingly complex environment that includes stakeholders in greater numbers and more direct engagement. A quick scan of the newspapers highlights just a few of the many challenges businesses face every day – all in the age of technology-facilitated communication and the additional complexity brought by globalization.

Our definitions of community are morphing and new social issues and structures are emerging.

Social media give people and organizations a means to connect with each other that is creating communities unconstrained by geographic or political boundaries – or editing or moderating. This presents additional challenges to companies – and the people in them – that want to do the “right” thing, but sometimes have pressures to respond concurrently to conflicting values and norms – and to do so at the speed of technology-enabled communication.

The Center for Corporate Citizenship provides space, resources and support to help companies and their employees create strategies to navigate change and complexity. By facilitating dialogue among Center members, the broader corporate community, and management scholars, we can help you realize your company’s goals to deliver greater value, to lead with purpose and integrity, and to thereby realize the highest form of citizenship for your firm.

I hope to see you at one of our many upcoming courses, conferences or events, and invite your comments, suggestions and questions about the future of corporate citizenship and the role that the Center can play in supporting you in advancing and enhancing its practice. Thank you for your commitment and for all that you do to enhance the citizenship of your company.

Sincerely,

Katherine V. Smith, Executive director Carroll School of Management Center for Corporate Citizenship at Boston College 2 The Corporate Citizen issue 5

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Innovation brings sweet success It’s often said that when life gives you lemons you should make lemonade. At power system maker Cummins they’ve adapted that approach to squeeze out innovative solutions to problems that often compete for attention.

Through its 90th anniversary Environmental Challenge, 62 teams of Cummins employees from 11 countries developed projects to improve the environment in their communities. The projects ranged in sophistication from simple recycling efforts to complex carbon footprint-reducing initiatives. They used rain water and ground water harvesting technologies to raise the water table at a school and orphanage in India and make the surrounding areas greener; planted a learning garden for disabled students in England; and enlisted Minnesota senior citizens in a recycling effort that simultaneously created job opportunities through a local nonprofit.

When all was said and done, the 62 projects conserved an estimated 538 tons of greenhouse gases, the equivalent of 54,000 gallons of gasoline.

The genius of the Environmental Challenge is that rather than engaging in a tug of war between community initiatives to address social problems and responding to environmental concerns, Cummins recognized both sets of problems exist in the same world and looked for solutions where they intersect. n

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Back to school

Center offers diverse educational opportunities

Photo by Rose Lincoln

Corporate citizenship professionals come from diverse backgrounds. In addition to the Academy, the Center for Corporate Citizenship offers a mix of management and leadership programs to meet different learning styles and increase access. Programs include: Carroll School Dean Andy Boyton (bottom left) engages participants in this innovative program, which is composed of an intensive 4-1/2-day on-campus program followed by a companion four-month distance learning program.

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s usual there were some enthusiastic, freshfaced new students at Boston College last fall but one group had more on their minds after Friday classes than the next day’s tailgate party.

Professionals from 19 companies attended the inaugural session of the Community Involvement Leadership Academy on the Chestnut Hill campus Nov. 8 in the Carroll School of Management. This innovaMary Ann Glynn, PhD tive program consists of a 4-1/2-day on-campus program followed by a companion four-month distance learning program. It is designed to help the most experienced community involvement managers apply newly acquired tools and strategies to lead change in their organizations. Classroom instruction included sessions led by Carroll School Dean Andy Boynton and faculty members Mary Ann Glynn and Michael Pratt. Glynn is Director of Research at the Winston Center for Leadership and Ethics, and the Joseph F. Michael Pratt, PhD Cotter Professor – Organization Studies Department.

Pratt is Professor of Organization Studies, Ph.D. Coordinator, Winston Center Fellow, and Associate Editor, Academy of Management Journal

• 2-1/2-day open enrollment management development programs that can lead to a Certificate in Community Involvement Management • On-site and custom training at your company, focused on your issues at your convenience. A five-day Fast Track on-site program offers the opportunity for your team to earn certificates in community involvement and corporate citizenship • An increasing array of one-day seminars and online programs focused on citizenship management challenges To register or learn more about any Center for Corporate Citizenship course or program, contact Karen O’Malley at karen.omalley.2@bc.edu or 617.552.1553.

Participants who complete both parts of the Academy will earn their Certificate in Community Involvement Leadership from the Carroll School of Management. n

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Assembly line produces happy holiday

C

ompanies sometimes struggle in connecting their core competencies with efforts to help the community but some Toyota employees found a way to put their know-how to work in a wonderful new way.

When Kevin Thornberry watched the chaos that ensued when the St. Vincent de Paul Outreach Center in Cincinnati put together Thanksgiving baskets for 1,000 needy families, he knew just what it would take to straighten things out – an assembly line. The manager at the Toyota Production System Support Center in Greater Cincinnati brainstormed with his fellow employees and approached St. Vincent de Paul.

“From there, it was a matter of getting the SVDP volunteers to share their knowledge of the operation with us and together we created a smooth, efficient and steady flow of goods that would allow us to complete a basket every 15 seconds,” Thornberry said. Instead of putting together wheels, seats and an engine to assemble a car, the volunteers lined up canned goods, produce and frozen turkeys in just the right order and just the right amount to deliver Thanksgiving food baskets that helped families in need enjoy turkey day the Toyota way. n

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Responsible business response to tough times paid off in reputation Maybe folks weren’t ready to break out into “Happy Days are Here Again” in 2010, but they did see some things in a more positive light. A 2010 study of public perceptions of U.S. companies’ social impact indicates that in the eyes of the American public, businesses were more socially responsible than a year before.

Johnson & Johnson topped the rankings in the Corporate Social Responsibility Index with a score of 82.67, putting it in the excellent category along with The Walt Disney Company, Kraft Foods Inc., Microsoft, PepsiCo and Apple, all scoring above 80 on a 100-point scale.

To make the top 50 a company needed to rate above 72.52, an increase of more than 3 points over 2009.

The overall rise in ratings of companies’ social responsibility came at a time when public expectations of corporate social responsibility from business remained very high, with ethics and governance issues continuing to be in the spotlight. The scores in the CSR Index reflect that companies embraced corporate citizenship as they recognized keeping pace with public expectations requires enhancing CSR performance in tough times.

The Corporate Social Responsibility Index was developed by researchers from the Carroll School of Management Center for Corporate Citizenship at Boston College in conjunction with Reputation Institute to understand how companies’ reputations are affected by public perceptions of performance related to citizenship (the community and the environment), governance (ethics and transparency) and workplace practices. The CSR Index is created by using data collected for Reputation Institute’s 2010 Global Pulse Study and analyzed in coordination with the Center for Corporate Citizenship n.

The 2010 CSRI 30

Rank

Corporate Social Responsibility Index (CSRI)

Company

1

Johnson & Johnson

82.67

2

The Walt Disney Company

81.33

3

Kraft Foods Inc.

80.56

4

Microsoft

80.18

5

PepsiCo

80.15

6

Apple

80.11

7

Hershey Company

78.24

8

SC Johnson

77.62

9

Kellogg

77.60

10

Google

77.35

11

Caterpillar

77.24

12

Intel

76.98

13

Publix Super Markets Inc.

76.38

14

JC Penney

75.86

15

Green Mountain Coffee Roasters

75.77

16

Campbell Soup Company

75.74

17

Marriott International

75.49

18

Anheuser-Busch InBev

75.41

19

UPS

75.22

20

Adobe

75.17

21

AmerisourceBergen

75.17

22

General Mills

75.13

23

Clorox

75.12

24

Eastman Kodak

75.12

25

Fidelity Investments

75.06

26

Dell

74.92

27

Amazon.com

74.78

28

Avon Products

74.69

29

Lowe’s Home Improvement

74.67

30

Advanced Micro Devices - AMD

74.58

U.S. Respondents Profile: A total of 24,977 ratings of the 230 selected companies were obtained from a sample of 7,790 online consumers in the United States in January and February 2010.

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Connecting with you …

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herever you are, however you communicate, the Center for Corporate Citizenship is there for you. Through a variety of social media the Center provides information, access to information, and a voice, at your convenience The Center’s online Member Community, exclusive to Center members, is a safe, supportive community of practitioners who learn, collaborate, explore ideas and support one another. You can visit the community and join the conversation at: http://bccorporatecitizenship.org/MemberCommunity.

You also can communicate with and about the Center and corporate citizenship on the wider social web:

On Facebook, fans of the Center’s page will get constant updates on various news and events from the Center and other corporate citizenship organizations. Go to Facebook to also connect with other fans, share information and discuss corporate citizenship. Find us on Facebook at http://www.facebook.com/BostonCollegeCCC. Click on the “Like” button to gain access to exclusive content.

On Twitter, the Center is a part of the ongoing conversation about all things corporate citizenship. Find us at http://twitter.com/bcccc And don’t forget YouTube – http://www.youtube.com/user/BCCorporateCitizen – where you can find corporate citizenship videos, including interviews, snippets of conference keynote speakers and Corporate Citizenship Film Festival entries.

… and connecting you with the world To keep up with the latest news and analysis that is informing and influencing conversations affecting corporate citizenship on the Web, on Wall Street and on Main Street, turn to the Center’s Media Monitor. Distributed weeky to Center members, the Media Monitor captures news that offers perspective and analysis on issues that influence the role business plays in society. It scans a wide range of mainstream media to follow trends and developments that affect business management practices and public perception of corporate citizenship. Members who want to learn more about the Media Monitor can contact Tim Wilson at Media.

Monitor@bc.edu.

For information on these and other member benefits go to: www.bccorporatecitizenship.org/memberguide

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Drawing strength to solve problems

By Tim Wilson

T

he next time you face a daunting problem with no solution in sight, try this: Have a seat in the nearest dining room, take a deep breath, and grab a napkin.

That’s right, a napkin. No, the purpose isn’t to wipe away tears of frustration. It’s a simple proposition from visual-thinking consultant Dan Roam that puts the humble napkin to use as a powerful canvas to literally draw hope from. Regardless of how big or small or what type, Roam contends, any problem can be solved with pictures.

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Founder of Digital Roam Inc., and author of the bestseller “The Back of the Napkin: Solving Problems and Selling Ideas with Pictures”, Roam has demonstrated his proposition works in a big way. He has helped global giants such as Microsoft, Google, Wal-Mart, Boeing and the U.S. Senate solve complex problems through visual thinking.

Roam explains that of everything that comes into the human brain through senses, three-fourths comes in through the powerful visual system we each possess.

He assures even those who have questioned their drawing abilities since middle school that they have the visual ability to attack problems with pictures. “If you can find a seat without falling down,” he promises, “you are visual enough to do what we are attempting.”

While few kindergarteners can read and write, Roam points out, they will all enthusiastically raise their hands when asked if they can draw. But 10 years later, those same kids will claim the ability to read and write but doubt their skill at drawing. In Roam’s view, we don’t embrace visual thinking to solve problems because the education system doesn’t believe it’s a valid way. “It’s not what we teach,” he says. “We can’t measure it, so we don’t do it.”

In explaining the power of pictures to solve problems, Roam presents a pair of unwritten rules for visual thinking.

Visual Thinking Unwritten Rule 1:

His ability to communicate complicated information with simple pictures gained Roam attention during the debate of the health care bill. His visual explanation of American health care was selected by Business Week as “The World’s Best Presentation of 2009” and was featured on Fox News and in the Washington Post.

Roam points out that while few kindergarteners can read and write, they will all enthusiastically raise their hands when asked if they can draw.

Roam remarks that if anyone needs to communicate complex ideas simply, it’s Washington and business.

So why don’t we do it more? He believes it may be that some people see it as patronizing, as if they are telling someone they are not smart enough to understand something without resorting to simple pictures.

In looking at people’s attitudes on using pictures to solve problems, Roam has found a pretty consistent breakdown with about 25 percent who can’t wait to write on a white board if given a chance, 50 percent who maybe don’t think they can draw but can see what’s great in others’ pictures and may make interesting additions, and a remaining 25 percent who contend they are not visual. These people, says Roam, are thinking, frankly, “this is all a bunch of crap.”

Whoever best describes a problem is the person most likely to solve the problem. Roam offers another interpretation of the rule for corporate citizenship practitioners: Whoever draws the best picture gets the funding.

Roam notes that it is important to get these people engaged in solving problems because they see and understand the details but can’t conceive that complex issues can be conveyed with simple pictures.

Roam’s enthusiasm for sharing the secret power of pictures is obvious. He cites a number of examples of times when a visual approach to solving a problem carried the day. He tells the story of how a triangle drawn on the back of a napkin in 1967 delivered intrastate air travel to Texas and resulted in Southwest Airlines. He also relates how a visual depiction on a napkin came to be known as the Laffer Curve to illustrate the relation of tax rates and revenues and led to what would become supply side economics or Reaganomics.

In explaining how simple pictures can explain complex material, Roam tells about his work with Wal-Mart on telling consumers that its efforts to be an environmentally sustainable business were genuine and not merely PR with a green tint. While Wal-Mart had the data to back up its claim of sincerity, that data was not compelling. Roam presented a way to use pictures to show how Wal-Mart works with “a little cartoon” built in layers. Those layers could then be broken apart to show individual aspects of the total impact of Wal-Mart’s environmental efforts.

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But Roam points out it was not the pictures in the final product that mattered. It was the simple drawings he made in his notebook while working with Wal-Mart executives to come up with ideas for analyzing and presenting their complex data in a simple way.

Roam’s story of solving Wal-Mart’s problem gets to his second unwritten rule.

Visual Thinking Unwritten Rule 2: The more human your picture, the more human your response. We like to look at things that match the way we see.

Roam explains that even simple stick figure images without color or shading can invite our visual processing center to kick in and allow us to deduce meaning from what is before our eyes. In drawing those pictures, by starting with simple circles, we can identify where we stand in relation to our problems. With that as a start, he says, our visual processing center lets us

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divide problems into six pieces based on the six ways we see and the questions they answer: • First slice: Who and what we are looking at.

• Second slice: How much – It draws the charts that measure.

• Third slice: Where things are – It draws our map.

• Fourth slice: When things happen – It pays attention to changes in other slices and creates a timeline.

• Fifth slice: How things happened – It identifies cause and effect like a flow chart.

• Sixth slice: Why it all happened – Where we add it all up in an equation.

To those inspired by his ideas and eager to share them, Roam issues a challenge for when they next face a problem. “Instead of starting to talk about it, go ahead and pick up a piece of paper and draw that first circle and you will begin to think about solving your problems in a completely different way.” n

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Office space invaders

Gen Y rolls in

By Tim Wilson

A

decade into the 21st century the most dominant generation at the end of the 20th century – Baby Boomers – face many new challenges in the workplace. But none may be as intimidating as one that’s quite literally of their own making – the young legions of Generation Y who have already begun invading corporate America.

While Boomers may have brought Gen Y into the world, on the job the older generation looks at their young colleagues as if they arrived from another planet. Fortunately, there is an envoy for this generation who as a peer can offer advice on how to work with them and support the role they can play in advancing corporate citizenship.

Nadira Hira wrote Fortune magazine’s widely discussed 2007 cover story on Gen Yers and their impact on corporate America. She previously wrote a blog for Gen Yers on Fortune.com called “The Gig” and is now writing a book about Generation Y’s place in the work force. Along with her age, these credentials make her an ideal interpreter for this generation of Americans born between 1977 and the mid-’90s.

Hira addresses the unasked questions on the minds of every Baby Boomer and members of Generation X: Who are these young people? How do you deal with them? And, how can they become an asset to an organization?

In her conversations about Generation Y, Hira says, she consistently hears that “twenty-somethings are always annoying, they’re always entitled, they always think they know everything and they’re certain they are going to change the office, the workplace and the world.” But she points out that this generation is different than the many before them that

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Hira speaks at the 2010 International Corporate Citizenship Conference.

corporate America feared was ushering in the beginning of the end. Among the key differences Hira says make this a critical issue is demographics. American Baby Boomers born between 1946 and 1964 number 78.5 million. Generation Xers born between 1964 and 1977 number 48 million. Enter Generation Y numbering 80 million.

“You are outnumbered,” Hira explains to Boomers. “You need us. There is no way to get around it.” With the oldest Boomers retiring at the start of 2011, she says, there are not enough Generation Xers to fill the gap. “That’s why you’ve got to deal with us.’’ To do so, Hira remarks, you must understand what she describes as the three formative factors that make them who and what they are.

Parents – Over indulgent, over involved parents created kids with over the top, off the chart expectations, she says. “The reality is this is as much about our parents as it is about us,” contends Hira, who describes Boomers as the original self-absorbed generation. “We learned this behavior from you.”

Boomers were not the center of their parents’ world, Hira observes, so when they became parents they went the other way and overcompensated. The affluence of the time allowed it and with both parents working when they wanted to be there with their kids, guilt exacerbated it. The result is a skewed sense of adulthood and a stretched out adolescence. “If 40 is the new 50, and 40 the new 30, then naturally 25 is the new 15,” notes Hira. This means Generation Y is getting married and having kids later, she points out, meaning the usual responsibilities that might keep young employees committed to a job or company don’t exist and they are more willing to see what’s out there.

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Technology and media – While in the past it may have been difficult to generalize about a generation, Hira says, there is a “uniformity of perspective” to Generation Y brought on by technology. It allows attitudes to permeate all 80 million Gen Yers in days. It’s also responsible for Generation Y thinking differently about work. While Boomers connect work with showing up in a physical space for a fixed time, for Gen Yers work can happen at 3 in the morning with a laptop while watching TV, Hira says. They are goal and task oriented, not tied to schedule or place.

But Hira concedes technology has a big downside for Generation Y. “We have no social skills whatsoever,” she confesses, noting that instant messaging, emails and now texting have replaced communicating in person. “In some ways,” she says, “technology has put us so far ahead that we are actually behind when it comes to just being human beings.”

The world Yers grew up in – Hira believes this factor has the most impact because it made this generation “so used to instability and so incredibly distrustful.”

Pointing to the 9/11 attacks, Katrina and Columbine as just some reasons, Hira says Generation Y learned that danger is immediate and completely unpredictable.

They’ve seen parents and friends get laid off and organizations and institutions betray their trust. Unlike their parents, Gen Yers don’t plan to wait until 65 to live their best life only to find the future they invested for is gone. “They’ve learned it isn’t worthwhile to wait,” Hira says, and are striving to have that best life now.

“What does that give you?” Hira asks. “On the one hand, it gives you a really annoying person” who she says is loud, entitled and shows up for work in jeans with tattoos and piercings. “On the other hand,” she continues, “you’re getting somebody who is really competitive. Someone who is really worldly, somebody who is driven, somebody who is goal oriented, somebody who cares about values, and somebody who was brought up in a way that they really can be loyal.”

The trick, Hira advises, is to mitigate their challenges and “channel those wonderful effects you get into somebody who can be incredibly effective for your organization.” Hira offers three key strategies for engag-

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ing Generation Y employees in a way that brings out the best in them, their colleagues and the company.

Mission or vision – “This is a generation that wants to be proud of whatever we can commit to,” says Hira, noting that Generation Yers want to share values with an organization that they can be proud of. She stresses that this is not about having a mission statement.

“What this generation is looking for is not jargon and it’s not that encapsulating sentence necessarily, it’s really what makes you special.”

Not surprisingly, authenticity is a key to the mission or vision that Gen Yers are looking for in a company.

Hira says Gen Yers will respond better to a company that honestly talks about where it stands and where it aspires to be and how it wants their help to get there.

Opportunity – “This is a generation that, if we have invested in your mission, wants to contribute to it,” explains Hira. She says Gen Yers look to hear about career planning at a company up front. Not in terms of guarantees but as a conversation about the experiences necessary to advance instead of laying out a long list of requirements. “No one wants to stay in the same job for 30 years and companies don’t want that either,” remarks Hira. Gen Yers need to know what experiences will get them to the next level because they have “learned not to put our heads down and hope for the best because the best is not going to come that way.”

Community – “This generation craves community,” says Hira. She notes that technology can help getting back to a sense of community that involved relationships “but it can’t replicate substantive bonds. A company can offer this.” This makes volunteering a big part of Gen Y along with a need for mentoring relationships that provide feedback – feedback that is regular and not just about telling somebody when something is wrong.

This need for feedback also relates to another trait developed in them by parents who replaced reprimands and correction with negotiation and explanation.

“We need you to explain things,” emphasizes Hira.

“This is not just Generation Y, as in the letter, it’s generation W-H-Y. We need to know why, why, why all the time.” But in addition to satisfying curiosity, she notes, all these questions serve an organization by making

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Gen Y women closing pay gap Workplace changes wrought by Generation Y are reaching the payroll department, where they are closing the earnings gap between women and men faster than their older colleagues.

The women’s-to-men’s earnings ratio among 25- to 34-year-olds, rose from 68 percent in 1979 to 89 percent in 2009. For 45- to 54-yearolds it only went from 57 percent to 74 percent.

it analyze its processes. Is all this insight just about continuing to indulge and deal with the latest whippersnappers to overrun the office? No. It’s about taking this information to figure out “how do we get everyone else on board so they can be productive together.”

To make it work, she says, the generations must be integrated in a way that recognizes their unique place in this workplace dynamic. Boomers need to recognize that the young professional frustrating them is just like the one they raised who is frustrating somebody else.

“Most indignant Boomer bosses are often indulgent Boomer parents,” observes Hira. The Generation Xers feel threatened by Gen Yers at the office like older siblings who come home and find the rules they lived under have disappeared for their little brothers or sisters.

At the same time, they don’t see their Boomer boss ever leaving and fear what’s going to become of them and their careers. Managers, Hira advises, must acknowledge the generational squeeze felt by Gen Xers.

Next companies must take advantage of the perspective Gen Yers bring to the job and use it to bring the generations together in their work, Hira says. Older workers are assets, she remarks, and Gen Yers know it.

Finally, to make it all work, there must be a senior leader to champion efforts to tap into Gen Y. “Get them engaged in the act of talking with these young people, engaging these young people,” urges Hira. Engaging Generation Y in the workplace, she says, goes to the heart of corporate citizenship. “To succeed with any of your employees, but particularly with Gen Y, is all about being a good company,” says Hira. “That’s what we’re all trying to do every single day. n

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Cleared for takeoff Corporate citizenship more than just a blip for UPS CFO Kuehn

By Tim Wilson Corporate citizenship professionals may sometimes feel they barely register in the eyes of chief financial officers who keep their eyes on the fiscal skies. But Kurt Kuehn of UPS assures them that as CFO, their concerns absolutely belong on his radar screen.

“As issues like global recession, corporate bankruptcies and credit crises have taken center stage, CFOs have come out from behind the scenes,” explains Kuehn. He said CFOs no longer worry only about quarterly results but also focus on strategies for long-term growth.

first vice president of investor relations in 1999 and later that year helped take UPS public — the largest IPO of the 20th century.

And he points out that in today’s business environment, long-term growth cannot be separated from issues of economic, social and environmental policies.

In fact, he makes the observation that a CFO’s job is about using resources wisely and ensuring a business is strong enough to thrive for decades. Or in other words, is sustainable.

Kuehn says that going public in 1999 was a catalyst for UPS focusing on sustainability as it acquired a new set of stakeholders to deal with and the social and environmental components of corporate responsibility demanded more attention. At the same time, there was recognition that transparency was not only a good thing to do but a necessity. “We realized there is a need to pull the curtain back and expose yourself to both praise and criticism.”

Kuehn began his UPS career in 1977 as a delivery driver and has held positions in operations, industrial engineering, finance and marketing. He became UPS’

As requirements for transparency increased and more standardized reporting guidelines emerged, he explains, it became apparent that much of the data UPS

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already gathered for operations met the demands of those interested in sustainability. It became obvious for UPS, Kuehn says, that sustainability wasn’t just a reputational effort. It went to the core of the way it operates as a business. At UPS, he remarks, they thought of it as “running the tightest ship in the shipping business.”

This focus on efficiency raised awareness at UPS of its operations’ impact on the environment and brought measures that addressed both concerns. Engines in the UPS air fleet were made more efficient to reduce both emissions and noise. Kuehn notes that this was a “tough call financially” at the time but was a wise decision as fuel prices skyrocketed.

“So there’s no question,” he says, “that lean is green, in terms of both the environment and dollars.” Kuehn as-

serts that today you can say sustainability is a “strategic imperative” for CFOs and that it is corporate citizenship practitioners’ job to bring CFOs into their circle.

With that in mind, Kuehn offers five reasons CFOs should care about sustainability.

1. You can cut costs and enhance efficiency “If you’re able to connect cost savings and efficiencies to sustainability, you’re a heck of a lot more likely to get attention from senior leaders in your company,” he advises. As an example, he tells of the UPS Package Flow Technology initiative that shortened delivery routes while drastically cutting fuel use and carbon emissions.

2. You can mitigate risks As a corporate strategist, a CFO must assess long-term risks to the business and find ways to reduce those risks, Kuehn says. Looking through a sustainability lens, he explains, presents a new way of looking at forecasts and risks to anticipate “what ifs,” that can range from rising fuel prices to changing shareholder preferences on environmental and social issues, and increasing regulations.

Kuehn notes that sustainability is gaining traction with investors and that anticipating long-term risks in CSRrelated areas does help. “The one thing Wall Street hates the most is surprises,” he remarks.

3. Y ou can open up new competitive and revenue opportunities “At UPS, we’ve taken what we’ve learned about more sustainable operations and started offering to share this body of information with our customers,” Kuehn says. That includes tools to help customers measure carbon emissions related to transportation and distribution of products, and advice on using environmentally responsible materials to right-size their packaging and to reduce shipping damages.

The fallout from the financial crisis has customers more skeptical than ever, Kuehn says. “They are looking for companies they can trust and companies that will be around for the long term.” He adds that sustainable products and practices, in addition to enhancing a company brand, can tip the balance in your favor with many consumers to offer a competitive advantage.

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4. You can drive innovation Kuehn cites innovation in new products and services, manufacturing processes, facilities and construction, and supply-chain practices as just some of the benefits driven by sustainability. “It is creating a catalyst of new thinking in some companies” and serving as another form of research and development.

An intangible benefit of sustainability, Kuehn says, comes from the fact it matters to employees because it affects their families. He points out that innovation manifests itself this way thanks to the passion of employees for sustainability and social responsibility.

Noting that “any good UPSer loves a problem,” Kuehn cites employee innovations that expedited launching of a carbon neutral shipping option and a tracking system for earthquake victims in Haiti where a UPS employee volunteered with the Salvation Army. “Those great aha innovations happen when you’ve got people who are inspired.”

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5. Y ou can improve employee recruiting, development and retention Kuehn observes that the current generation of employees wants an employer that shares their values and that they can trust. They want to work for a company, he says, that wants to do well and do good. He adds that volunteering opportunities that are attractive to many employees also offer companies “a terrific way to teach leadership skills, build teamwork and make valuable business connections.”

Kuehn advises corporate citizenship professionals that the key to getting CFOs more interested and involved in sustainability is to align it with the company’s core strategies.

“If it’s too far removed from what you do best it’s hard to keep it going,” he says. Referring to the five reasons CFOs should care, Kuehn suggests that if corporate citizenship practitioners “can link into some of these, I think you’ll find you get a little longer time at the table and find some synergies that didn’t exist before.” n

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Mapping the way to a global community involvement program The top 5 challenges blocking progress

By Sylvia Kinnicutt and Ron Brown

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o be successful, community involvement leaders must continuously respond to the changing landscape of their business and their community. Over the past 25 years, the Carroll School of Management Center for Corporate Citizenship at Boston College has worked with these leaders in identifying and addressing these challenges.

An increasing number of community involvement leaders are now facing a significant new challenge … their companies are expanding into the global market.

These leaders must now think on a global scale and expand the scope of their companies’ community involvement activities to respond to a global community.

Engagement on a global scale is clearly growing, especially for those working at the larger companies. The Center’s 2010 Profile of the Profession found that 36 percent of professionals polled indicated that they have a global scope of responsibility. Many other companies, however, are just beginning to extend their programs globally. The Center’s 2009 Community Involvement

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Index showed that 89 percent of giving stays domestic and only 11 percent goes international. But trends suggest companies will increase international giving.

Community involvement should reflect the priorities and values of the business, so it makes sense that as a business expands globally, its community program follows. In some cases, such as at global giant Alcoa, community involvement teams are sent into new locations to build relationships and establish reputation before the company begins any operations there. These relationships create great value in helping to protect the company’s long-term license to operate in the area. Additional benefits may include recruiting and retaining employees, increasing employee morale and workforce skills and enhancing local visibility for the company.

Despite its benefits, global community involvement is a challenging undertaking, which is likely the reason that community programs are only slowly adapting to the new global environment. At the Center’s 2010 conference, executives discussed companies’ greatest challenges and offered practical and innovative solutions for achieving success on the global stage.

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Cultural differences Working in an international context will always be more complicated and challenging than in a domestic environment, where norms, language and culture are very familiar. Not only will you likely face cultural and language challenges, but geo-political challenges such as a weak infrastructure, government or NGO sector may exist as well.

Because you are not likely the expert on a given country environment, experts suggest relying heavily on your company’s local staff. As Ward Tisdale, Global Community Affairs director at AMD, suggests, “It is important to give autonomy at the local level, and flexibility to adapt programs in different countries.” He suggests that you make every effort to empower local employees. Melissa Janis, then head of Global Programs for the Alcoa Foundation, agreed, but also emphasized the importance adhering to some global standards and a corporate framework. Both companies found that local community liaisons are able to identify their own partners and make culturally specific giving decisions.

One of the major cultural challenges facing community involvement leaders based in the United States has been implementing volunteer programs in other countries. A major priority of domestic strategies, volunteering is often a foreign concept in certain regions.

Seasoned global CI leaders suggest doing your homework first. What activities resonate in the culture you are working with? What causes do the employees most care about? Tried-and-true projects that are common in the United States, such as community cleanup projects, however, may not be appealing in other countries.

Instead, it may be better to build upon a compelling social need such as a local natural disaster and seek other local opportunities that align with your company’s community focus. Leverage your onsite contacts and local organizations to identify projects of interest to employees, and make sure to show the personal benefit employees will gain from the experience, such as skill and teamwork development, morale building, and meeting their local community needs.

Google engages global employee volunteers through “GoogleServe.” A weeklong annual international event, GoogleServe spans the globe providing local Google of-

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fices with funding and paid time off for employees to engage in volunteer projects in their local communities. Last summer more than 6,000 Google employees from 65 offices in 27 countries participated in a variety of activities from helping the elderly get online to consulting with organizations on their social media strategies, tidying up public parks and playing with dogs waiting for adoption.

Structuring a global team Your team at headquarters may operate like a well-oiled machine. But incorporating global responsibilities while the scope of community continues to expand can stretch them beyond their limits. Today, many companies rely on local volunteer liaisons to administer community programs in addition to their regular corporate roles at international sites. In other words, assemble a global team of volunteers.

Loading on additional responsibilities outside an employee’s formal job responsibilities can be a challenge in itself. In order to make this work, it is important to ensure that these employees receive recognition for their contributions from their local managers, as well as training and support from the corporate office, said AMD’s VP of Public Affairs Allyson Peerman. AMD has positioned this role as a leadership opportunity.

The headquarters team identifies the people, trains and coordinates them. Tisdale shared that this is not as challenging as it sounds. Many of AMD’s global volunteer team members have been involved for a long time in this capacity and they are reluctant to give it up. Not only are they engaged in something they care about, they often get some extra stature and recognition from their role as point person, which often comes with budget responsibility. Another recommendation – communicate. Tisdale reports that monthly calls and occasional in-person meetings ensure that global site leaders have the support they need, and also allows the headquarters team to find out what is going on around the globe so it can be shared with others.

Allocation of funds Limited resources are often one of the greatest challenges facing community involvement leaders. Expanding globally requires additional resources and greater efficiency. Even if funds are available, it is chal-

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lenging to allocate them fairly and effectively. Several companies indicate that they utilize an application process to allocate funding based on both need and proven performance in the community. Janis explains that Alcoa’s allocation also has a lot do to with the size of business investment in a particular location. Within AMD, larger employee centers also typically get more of the funds, but Tisdale’s team also rewards sites that are more active and really leveraging resources.

Engaging employees globally Community involvement can be a wonderful catalyst for building unity and boosting employee morale. This need is even greater for a globally dispersed company.

Several community leaders have touted the benefits of a global volunteer day, or an international intranet site, where employees can connect with one another and get a better understanding of the company’s commitment to community. If resources allow, you might also consider international service projects. These initiatives bring global teams together to spend several months engaging in service and consulting projects in developing countries, expanding employee satisfaction and skills as well as local impact.

partnership in place, our experts say establishing and maintaining a two-way dialogue and partnershipbuilding approach is best. Take effort to build local ownership and capacity and look for opportunities to transfer technical skills to your partner. And, most importantly, be sure to maintain strong and frequent communication.

While the challenges of taking a community involvement program global are great, the benefits to local communities and the company are even greater.

Follow the advice of AMD’s Tisdale, “Think big and audacious!” n

Finding the right partners Developing partnerships to address social issues is a rising trend in effective community involvement. Establishing strong partnerships is even more critical in addressing issues in distant communities with different cultures. A good relationship with a local NGO, or an international NGO with local presence, can greatly help in mitigating distance and language challenges.

But it is often difficult to identify and select potential partners in these distant locations. So where do you begin? Peerman suggests that you first do your due diligence, find out who is reputable by talking to others to learn more about a potential partner. Utilize the knowledge of your local staff. You may also consider working through a coalition, or joining existing partnership arrangements (such as with the U.S. government) to share expertise, costs and management.

Choose partners that you would like to engage on a long-term basis. As with all partnerships, focus and alignment with company priorities is key with clearly defined roles and expectations. Once you have a good

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Carroll School of Management Center for Corporate Citizenship

You know what you need to get your job done We know how to help you excel Your to-do list: • Create and implement strategy • Engage employees and external stakeholders • Measure social and business benefit to demonstrate value • Identify and manage issues and risks And so much more . . .

Our will-do list: • Survey companies and analyze trends and best practices in research reports and briefs • Produce live webinars available on-demand for you to learn at your desk • Distribute the weekly Media Monitor to inform you of relevant news developments • Maintain active online Member Community to make practical advice available from seasoned professionals • Provide an overview of the most current research in the field And so much more . . .

Accelerate your learning!

Become a Center member between April 12 and Sept. 30, 2011, for even greater educational value.

Send two people to a course in our Certificate in Corporate Community Involvement Management track for the price of one.

Use code NMM11 in the comments section of the membership application. To find it online go to:

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as of 3/9/11

Our members believe they are well connected. Because they are.

3M AAA No Calif, Nevada & Utah Abbott Laboratories Accenture ACS - A Xerox Company adidas America Administaff Adobe Systems Incorporated Advent Software Aetna Agilent Agrium AIG Alcoa Allstate Alpha Natural Resources Alpina Altria Client Services AMD American Electric Power American Water Amerigroup Corp.

Ameriprise Financial Amgen Amway Corporation APCO Worldwide Apollo Group Applied Materials ARAMARK Arizona Public Service Company AstraZeneca Canada AT&T AutoTrader.com Avista Corporation Avon BAE Systems Bank of America Baptist Memorial Health Care Corporation Barclays Bank PLC Baxter International Bechtel Group Best Buy Black & Veatch Blackbaud Bloomberg Blue Cross Blue Shield of Louisiana Blue Cross Blue Shield of Michigan Blue Cross Blue Shield of Minnesota Blue Cross Blue Shield of North Carolina Blue Cross Blue Shield of Rhode Island BMC Software Boeing Company Booz Allen Hamilton Boston Beer Company Boston Scientific Brady Corporation Bright Horizons Family Solutions Brookhaven National Laboratory Brown-Forman Corporation bwin Interactive Entertainment AG CA Technologies Campbell Soup Company Capgemini Capital One Financial Corporation Capital Power Corporation CB&I Cbeyond Celanese CEMEX Cenovus Energy CenterPoint Energy

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CH2M HILL Charles Schwab Chevron Children’s Hospital - Boston Choice Hotels International CIGNA Cincinnati Children’s Hospital Medical Center Cisco Citgo Citizens Financial Group Citrix Systems City of Windhoek, Namibia Clorox Company Coast Capital Savings Coca-Cola Company Comcast Corporation Comerica ConAgra Foods ConocoPhillips Canada Consumers Energy Corning Incorporated Country Financial Cox Communications Cox Enterprises CPS Energy CSC CSX Corporation Cummins Dannon Company Dassault Systemes Dean Foods Company Dell Delta Dental Plan of Massachusetts Devon Energy DIRECTV Distrigas of Massachusetts Dow Chemical DTE Energy Dunkin’ Brands eBay Edelman Edison International Eli Lilly and Company EMD Serono Enbridge EnCana Corporation Endo Pharmaceuticals EPCOR EQT Corporation Erie Insurance Ernst & Young ETS Exelon Corporation Experian Express-Scripts Exxon Mobil Fannie Mae Farm Credit Canada FedEx Corporation First Niagara Bank Florida Hospital Fluor Corporation Ford Motor Company Franklin Templeton Investments Freddie Mac Freeport-McMoRan Copper & Gold GenCorp Genentech, Inc. General Dynamics C4 Systems General Mills Genzyme Corporation Georgia Power Gerdau GlaxoSmithKline Google Grand Circle Corporation Great River Energy

Great-West Life Assurance Company Green Mountain Coffee Roasters Halliburton Harlequin Enterprises Harris Bank HCA HealthCare Services Corporation Heineken USA Hershey Company Hershey Entertainment & Resort Company Hewlett Packard Company Hilton Worldwide Honda Humana Huntington Bank Hyundai Motor Company IHS Idaho Power Company IDEXX Laboratories Independent Order of Foresters ING Americas Intel Corporation Interfaith Medical Center InterGen Intuit Invensys Investors Group Iron Mountain ITT Janus JetBlue JM Family Enterprises Jockey John Hancock Financial Services Johns Manville Just Born Kaiser Permanente KBR Kilpatrick Townsend & Stockton LLP Kimberly-Clark Knowledge Universe Kohler Kohl’s Department Stores KPMG Kraft Foods Lance, Inc. Legg Mason LexisNexis LG&E-KU Liberty Global LifeScan Limited Brands Lockheed Martin Corporation Lubrizol Luck Stone Corporation MAC Major League Baseball Maritz Marriott International Mars Incorporated MassMutual Financial Group MasterCard International Mattel McDonalds McGraw-Hill Companies McKesson MedImmune Medtronic Merck & Co. MGM Grand Detroit Casino Michigan Automotive Compressor Inc. Microsoft MidAmerican Energy Company

Millipore Minnesota Power Missouri Employers Mutual Insurance Mitsubishi International Corporation Mohawk Fine Papers Monster Worldwide Morgan Stanley Mosaic Company Motorola Mobility MSC Industrial Supply Co. National Gas Company of Trinidad & Tobago Ltd. National Grid National Instruments Nationwide Nemours Nestle Water NetApp New Balance Newell Rubbermaid Nexen NextEra Energy Northeast Utilities Northern Trust Northrop Grumman Corporation Northwestern Energy Northwestern Mutual Novartis Pharmaceuticals Corporation Novo Nordisk NV Energy NYSE Euronext OG&E Old National Bank ONEOK Orange and Rockland Utilities Inc. Orlando Health Orrick, Herrington & Sutcliffe LLP Pacific Gas & Electric Company Pacific Market International Panera Bread Pearson PLC PepsiCo PerkinElmer Pfizer Piper Jaffray & Co. Pitney Bowes Playboy Enterprises PNM Port of Oakland Portland Trail Blazers Powerlink Queensland PriceWaterhouseCoopers LLP Progress Energy ProLogis Prudential Financial PTC QVC, Inc. Raytheon Company RBC Royal Bank of Canada Readers Digest Recreational Equipment, Inc. Reebok Research in Motion Resolution Copper Mining Reynolds American Ritchie Bros Robert Half International Rockwell Automation Rockwell Collins Rothstein Kass Salt River Project Sanofi-Aventis SAP America SAVVIS, Inc. SCAN Health Plan

SCANA Corporation Scripps Networks Sempra Energy Shell Siemens Southwest Gas Corp.

Spectra Energy Sprint SPX Corporation St. Jude Medical Starwood Hotels State Farm Insurance Companies State Street Bank & Trust Company Subaru of America Suffolk Construction Suncor Energy Sunoco Susquehanna Growth Equity Symantec Corporation Synopsys T. Rowe Price T.D. Williamson Talecris Biotherapeutics Target Corporation TD Bank Financial Group TELUS Tennant Company Teradata Corporation Teva Pharmaceuticals Texas Health Resources Texas Instruments The Co-operators The Hartford TIAA-CREF Timberland Company Time Warner Timken TJX Companies Toronto Hydro Corporation Toyota Transamerica Insurance and Investment Group TransCanada PipeLines Limited Travelers Trend Micro Tyco International U.S. Bank UBS Umpqua Bank Underwriters Laboratories United Airlines United Healthcare Group United Illuminating Company United Launch Alliance Unum Group UPS US Airways UST Global Vectren Verizon VHA Visa Vulcan Materials Company Waggener Edstrom Worldwide Walgreens Walt Disney Company Waste Management Waters Corporation Wells Fargo Western Health Advantage Whirlpool Corporation WorkSafeBC Xcel Energy Xignux Zebra Technologies

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know your gig Recognizing what fuels your hunt for ideas is critical An excerpt from “The Idea Hunter” by Andy Boynton and Bill Fischer

T

he Idea Hunt begins with a desire to learn about the world around you.

But what is the energy that fires up your interest and curiosity?

Our answer is the gig. By this, we are not referring to what a musician does on a Saturday night. Our notion of the gig is closer to personal brand or professional identity. We’re talking about your gig in life, or, more specifically, in your professional life.

Walt Disney’s gig was to create entertainment for families, whether through amusement parks or animated films. Henry Ford’s gig was to create a car for everyone, and he refashioned the process of manufacturing to do it. Warren Buffett’s gig is to understand the fundamentals of firms and industries rather than trying to predict the ups and downs of the stock market. There are similar passions and purposes to be gleaned from every celebrated Idea Hunter’s story.

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Those icons knew their gigs. And their gigs gave focus to their learning and idea seeking. Because he was interested in family-friendly entertainment, Disney did not look for ideas in the frowzy, freaky American amusements parks of his time. He traveled to Denmark to observe Tivoli Gardens, an amusement park full of fresh flowers and happy faces of all ages. Buffett didn’t pass his days staring at the ticker tape or conjuring ways to game the market. He focused on learning what he could about specific firms or industries and finding stocks that sold below their real worth.

A gig is not someone’s line of work or job title, although it does reflect a distinctive way of adding value to one’s work. A sales associate’s gig may not be sales.

It might instead rest on a capacity for empathy, a talent for getting beneath the surface and understanding a customer’s needs.

A schoolteacher’s gig might be to serve as a school leader – by heading up a committee, leading a teaching team, or chairing a department. She might approach these other roles with an

eye to becoming an administrator or a professionaldevelopment expert. As this latter example illustrates, gigs also have a future dimension – where you’re heading. National Public Radio’s Scott Simon has spoken of his father’s advice: “Dress for the gig you want, not the one you have.” When you’re looking for ideas and new things to learn, think about your vision of who you’d like to become as a professional – and align your learning with that picture of yourself.

Knowing your gig is the big steering wheel of your interest and curiosity and even if you have a clear conception of your gig, it’s important to refresh it occasionally, because circumstances change and new opportunities arise. But how does one discern or reassess a gig? Doing so requires grappling with questions about your passions and talents and connecting your answers to the professional marketplace.

The discernment In “The Brand You 50”, management guru Tom Peters recalls browsing a book about work and seeing a sentence that jolted him: “When did you last ask, ‘What do I want to be?’” Thinking it through, Peters devised four questions that could be asked to arrive at self definition. The first is the what-do-I-want-to-be question that made an instant impression on him. The others are: What do I want to stand for? Does my work matter?

And, am I making a difference?

He also formulated other questions. For example: “Who are you? What is your product? How is it special? How is it different from similar offerings? How can I demonstrate its trustworthiness? How can I demonstrate I’m ‘with it’/contemporary?” Thoughtful answers to even just a few such questions will bring your gig more clearly into focus.

Michael Himes, a Catholic priest and professor of theology at Boston College, has given valuable thought to how we discern a vocation or calling in life. He outlines three basic questions to reflect on when making choices about a profession, a job, or some other role.

1) “Do you get a kick out of it?” 2) “Are you good at it?” 3) “Does anyone want you to do it?”

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Carroll School of Management Center for Corporate Citizenship

“Do I get a kick out of it?” has to be answered by you.

Himes says one way of answering is to think about the issues you return to over and over – those that “fascinate you . . . excite you . . . really intrigue you . . . lure you on . . . get you to ask more and more questions.”

“Are you any good at it?” is a question for others, such as a circle of friends who could be honest about your talents. Consider people who have been important in your life and career. What have you learned from them about yourself, about your skills and the areas in which you excel? What would they say if someone were to ask them about your strengths and weaknesses?

“Does anyone want you to do it?” must be answered by the people you are serving (or would like to serve).

In work terms, it’s all about the “customer,” elastically defined to include employers, clients, team members, and others. Will they go for the package of skills and perspectives that I’d like to sell? Am I offering something that will help make lives easier, products more valuable and successful?

Discerning your vocation is not exactly the same as understanding your gig. Still, three vocational questions are handy tools for discerning a gig. We would tweak them as follows: • What is it that constantly grabs my interest and sparks my curiosity?

• What am I good at? And what do I want to be great at?

• And where’s the market for this?

Part of the discernment is to think about the distinctive value you add, the special skills and perspectives you bring. If you’re an accountant, what separates you from those who work two floors up? What makes you stand out? Or how would you like to stand out? Peters offers a straightforward tool for examining these questions. Fill in the blanks: I am known for (2-4 things). By this time next year, I plan to be known for (1-2 more things). This will get you pretty close to sizing up your added value as a professional, now and in the near future.

It’s important, though, to keep in mind that a gig should never be written in stone. A gig is not static. It requires continued self-reflection and revision, because

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passions change, knowledge expands, and needs shift.

Himes says, “The only time your vocation is settled is when you are settled (six feet under that is!).” Ditto for the gig.

The circle of competence Warren Buffett is well known for avoiding high-tech stocks. He says he has no business in that arena – because he doesn’t understand it. His wariness is part of a principle that he shares with his partner Charlie Munger – the importance of keeping within your “circle of competence.” Buffett knows not just his gig, but his circle of competence. That makes deciding what he should be doing and where to search for ideas more efficient.

It’s easy to think that a phenomenally successful investor like Buffett must take some big risks and swing at almost every pitch. This is not, however, his stance as an investor, and the baseball analogy is not an idle one.

An ardent fan, Buffett often speaks of Ted Williams, the famed Red Sox slugger who revealed the secret of his success in his book, “The Science of Hitting”.

Nicknamed the Splendid Splinter, his approach was to carve the strike zone into 77 cells, each one the size of a baseball. He swung at the balls that landed in his best cells, and let the others whiz by, even if it meant being called out on strikes occasionally. Buffett noted Williams knew that “waiting for the fat pitch would mean a trip to the Hall of Fame. Swinging indiscriminately would mean a ticket to the minors.”

“If we have a strength, it is in recognizing when we are operating well within our circle of competence and when we are approaching the perimeter,” Buffett has explained. Among other virtues, this demonstrates the value of humility – acknowledging what you don’t know. It’s also a powerful idea.

Another outfit that understands its circle of competence is Google. A touchstone of the company’s philosophy is that it’s best to do one thing really, really well: We do search. With one of the world’s largest research groups focused exclusively on solving search problems, we know what we do well, and how we could do it better. Through continued iteration on difficult problems,

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The Idea Hunter Ideas are arguably the most valuable asset in the knowledge economy.

But how do you find the best ideas – the kind that can boost careers, change organizations, and ramp up the value of projects? Why do some people seem to come up with these ideas whenever they need them?

Andy Boynton and Bill Fischer answer these questions in a myth-busting book that challenges many assumptions about how great ideas are discovered, and who discovers them. Drawing on their extensive research and experience as both prominent scholars and management consultants, the authors show that outstanding business ideas do not spring from innate creativity, or necessarily from the minds of brilliant people. Rather, breakaway ideas come to those who are in the habit of looking for such ideas – all around them, all the time. These people – their stories and secrets – are highlighted by Boynton and Fischer in “The Idea Hunter: How to Find the Best Ideas and Make Them Happen” (Jossey-Bass; hardcover; April 2011), written with William Bole.

See more from the authors at www.andrewboynton.com and www.fischerideas.com. Preorder the book on your favorite online bookseller or at your local bookstore.

we’ve been able to solve complex issues and provide continuous improvements . . . Our dedication to improving search helps us apply what we’ve learned to new products . . . Our hope is to bring the power of search to previously unexplored areas . . .

On the surface, this may sound like a straightforward statement of specialization. But the emphasis on “continued improvements” and reaching into “unexplored areas” is not a call to simple, narrow specialization.

The circle of competence, as the Google statement indicates, is also about learning and applying acquired insights to new domains.

The emphasis should be on widening the circle through constant learning and deep interest in matters related to your gig (or your next gig).

Gigs matter What all effective Idea Hunters understand is that the gig is a filter. It screens out some of the information and ideas that cascade your way, making it easier to avoid information overload. It helps guide what you need to

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be learning and the ideas you seek. Buffett doesn’t have to scatter his valuable learning time across the market, because he knows that certain sectors are not his gig.

He happily leaves them to others.

There is a foundational gig for practically everyone. In today’s economy, there is a universal gig that encompasses all the other gigs, and that is to be an idea professional. This meta-gig belongs to a burgeoning class of individuals who understand that there are not one, but two, products of work. The first is the actual thing we make or the service we provide. The second, no less essential, is what we learn along the way. It’s the ideas we get about how to do a better job and it is part of every successful professional’s calling. Everyone can be an Idea Hunter. n This abridged chapter is reprinted with permission from the publisher, John Wiley & Sons, Inc., from “The Idea Hunter: How to Find the Best Ideas and Make them Happen” by Andy Boynton, Bill Fischer, William Bole Copyright (c) 2011 by John Wiley & Sons, Inc. All rights reserved.

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Carroll School of Management Center for Corporate Citizenship

Crisis in U.S. classrooms spells trouble for business

By Tim Wilson

B

usinesses in America face a major supply chain problem that threatens to cripple productivity, innovation and global competitiveness while simultaneously shrinking the market. The problem stems not from trouble in far-off factories, forests or fields, but from every company’s back yard.

Ucelli-Kashyap remarked that although education is a complex area in which to make change, most people approach it believing they have a pretty good understanding of the topic, since they’ve gone through school themselves. “Everyone has at least enough experience to have a strong opinion,” she said.

This crisis situation is unfolding every day in public schools across the country as the supply of bright minds is in danger of being choked off at the root. An ineffective, inequitable educational system is sending many students into the world without the skills they require to succeed as individuals and unprepared to fill the needs of American businesses in the 21st century global economy.

This misplaced confidence in their understanding of the education system can be an obstacle when companies try to help. Ucelli-Kashyap emphasizes that businesses must seek to work with educators rather than think they can step in and deliver solutions.

Concerns about education are not new. But a confluence of economic and demographic trends makes it more critical for companies to step up and play an active role in collaborative efforts to improve education.

When looking at public education in the United States, numbers reveal the enormity of the problem. UcelliKashyap shared this with Roundtable members by providing a brief with what she called “a paralytic plethora of data.”

At a recent meeting of the Carroll School of Management Center for Corporate Citizenship’s Community Involvement Leadership Roundtable, Marla UcelliKashyap of the Annenberg Institute for School Reform at Brown University gave members an overview of public education and offered some guidance on how they can make a difference in schools.

In 2007-08, 49.3 million students were enrolled in America’s public elementary and secondary schools.

Expenditures for the public elementary-secondary school system totaled $593.2 billion in 2007-08, according to the U.S. Census Bureau. Most funding comes from an even split of state and local sources

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Whatever the approach, Ucelli-Kashyap said, what matters is results, “something positive happening for kids.”

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and while there have been recent increases in federal education spending, it has historically been less than 10 percent of expenditures. With many districts facing upcoming declines in state and local funding, UcelliKashyap warned, Niagara Falls is ahead.

Beyond enrollment figures and dollars and cents, the demographics in American public schools pose a daunting challenge. Ucelli-Kashyap reported that over the past three decades the numbers and percentages of immigrant, non-English speaking, minority and poor students are on the rise, and there is a growing concentration of these students in urban districts. Historically, Ucelli-Kashyap points out in her brief, these are subpopulations of students for whom the American public education system has been least successful. And these very same students who face the toughest road to

A recent joint conference report by the Asia Society and the Council of Chief State School Officers said that poor competitive performance by students in the United States on international tests comes from their schools being “both relatively low-performing and highly inequitable in results.”

For those students who drop out of high school or don’t go on to college, prospects are much bleaker than they may have been 50 years ago. Back then, manufacturing jobs were plentiful and provided opportunities for workers to earn a living that could support a family.

To the frustration of both prospective employees and employers, few high school graduates are prepared to fill today’s jobs.

Though many U.S. public school systems remain mired in mediocrity and others are downright substandard, in classrooms around the globe there is a push to give all students a quality education. “Other countries recognize social improvement is dependent on providing equitable education,” said Ucelli-Kashyap. “There are bright spots.

But other countries are making investments while the U.S. has disinvested.” She pointed to the greater number of services and better facilities and equipment at schools in the United Kingdom, where there has been a national investment in education infrastructure.

Ucelli-Kashyap also remarked that other countries haven taken note of U.S. education performance, citing a recent joint conference report by the Asia Society and the Council of Chief State School Officers, which said that poor competitive performance by students in the United States on international tests comes from their schools being “both relatively low-performing and highly inequitable in results.”

an education often attend some of the nation’s poorest performing schools. In a nutshell, Ucelli-Kashyap observed, “U.S. education is highly inequitable.”

Despite the fiscal constraints districts face, when adjusted for inflation schools are spending almost four times more per pupil than they did 30 years ago. But the academic results for the students going through the system are stagnant. High school graduation does not equal college readiness, Ucelli-Kashyap said, and there is a great need to align standards between school districts and universities.

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So just how can companies make a difference in bringing about change and improving the education system?

Ucelli-Kashyap pointed out that the value of increased individual capacity “rests on a solid evidence base that teaching quality is the most important in-school factor in student learning.”

For any effort to be effective, business must collaborate with other interested and affected parties at various levels.

Ucelli-Kashyap presented the Roundtable with the following five leverage points where change can be brought about at the classroom, school, district and system levels.

Institutional capacity is related to the collective practice of teachers in a school. Ucelli-Kashyap explained that school-wide organizational capacity can be built and school culture and outcomes improved through professional learning communities that use data effectively, distribute expertise, and focus on student learning needs. According to Ucelli-Kashyap’s brief, system capacity includes using policy effectively to reduce inequity between schools and improve results, such as in the distribution of teaching quality and the targeting of other resources related to school and student needs, and the ability to move from innovation and one-off success to scalable improvement.

Governance and structure The decentralized nature of education in the United States defies any notion of a national education policy. Educational authority is exercised on multiple levels with loose alignment at best. Governance ranges from individual school administrations to local school boards, up through state and federal departments of education. Ucelli-Kashyap stressed changes to governance and structure “are not an end in themselves but they can create conditions needed in the instructional core – curriculum, or the ability to engage students.” As examples of changes in governance and structure, she cites the various charter school initiatives around the country that operate outside traditional governance and structure, and attempts by city school systems to break down large schools into smaller educational communities.

Capacity There are three levels – individual, institutional and system – where schools can benefit from increased capacity. Individual capacity is about developing the knowledge and skills of teachers and school leaders.

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Curriculum, standards and assessment When looking at schools from the outside, these areas are the most tangible targets for improvement and are thus popular with companies, foundations and others looking to make philanthropic investments in education. It involves enhancing options in curriculum and in-school supports in essentials such as early reading or middle and high school science, technology and math subjects. The new voluntary Common Core Standards led by governors and chief state school officers is one approach to improving education by improving rigor and establishing more national uniformity in curricula, standards and testing. Ucelli-Kashyap observes that “the devil is in the implementation.” Does it increase equity of opportunity or grow the achievement gaps?

Data and technology Support related to data and technology can help schools both improve instruction methods and more accurately assess the progress of students and effectiveness of teachers. In her brief, Ucelli-Kashyap remarks that data-informed decision-making “has become a catch phrase of school districts, but effective data use requires a combination of quality information, timeliness, easy access, and user skill.” Data and technology are also areas where high-poverty schools that could most use these resources face economic obstacles.

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egy, pulled no punches in explaining the responsibility companies share with every other part of a community for improving education: “No way could there be the systemic failure we have in this country the way we have if everyone wasn’t complicit.”

Renee advised that business instincts in approaching a problem don’t necessarily pay off when trying to change the educational system. “You can’t apply a business model to kids and produce perfect kids,” she said “Kids are more complicated.” Even while encouraging businesses to collaborate with community organizations on education, Renee warned that it’s no easy task.

“Putting a man on the moon was easier,” she said.

“Getting people to get together over how we educate our kids is tough.” n

Parents, community and out of school supports Ucelli-Kashyap cited a 2010 McKinsey & Company study that found less than 15 percent of childhood is spent in school. While the impact of life outside school is hardly a surprise to teachers, many who want to see kids get a better education forget about this important factor. Expanding on this, Ucelli-Kashyap noted in her presentation that “school improvement is never just technical (a better text or test) or professional (greater skill or more autonomy), but it’s also social, political, and cultural.” She cited the example of a rural province in India where a major factor in improving education was getting bikes and motorcycles to get kids and teachers to school.

Ucelli-Kashyap talked about how community organizations can be powerful players in making change happen by using research-based knowledge combined with organizing techniques to advocate for school and district reforms. During the Roundtable meeting on education, representatives of Los Angeles-area organizations spoke about how companies can play leadership roles in multi-sector partnerships to support these community-based reform efforts.

Michelle Renee, an Annenberg Institute colleague of Ucelli-Kashyap who addressed the Roundtable about community organizing as an education reform strat-

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Carroll School of Management Center for Corporate Citizenship

Framing the citizenship canvas In its biennial survey, Profile of the Practice, the Carroll School of Management Center for Corporate Citizenship at Boston College examined how corporate citizenship is being managed behind the scenes in today’s companies. The Profile of the Practice report provides the latest data on the corporate citizenship strategies, operational structures, and management and leadership tactics at 190 companies.

Survey findings reveal a number of changes since the 2008 Profile of the Practice, with indications of companies experiencing both triumphs and struggles on their corporate citizenship journey. One of the more encouraging signs from the survey data is evidence that amid a global recession, corporate citizenship has survived and is becoming more essential to businesses.

Here is a sampling of findings from the Profile of the Practice 2010:

60% 60 percent of companies in the survey report having a written corporate citizenship strategy

55% 55 percent of companies have a formal corporate citizenship/CSR function

44% 44 percent of companies have a vice president or director level position for leading corporate citizenship

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5% Just 5 percent of companies have formal internal training programs for all employees in corporate citizenship issues

62% 62 percent of companies have a CEO who is very informed about corporate citizenship issues affecting the company

To download the 2010 Profile of the Practice report. Members can go to http://bccorporatecitizenship.org/Profile Practice. An executive summary is available on the same page for non-members. www.BCCorporateCitizenship.org

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Riding the green wave Lessons from three leading companies

By Vesela Veleva, Sc.D. Driven by customer demands, regulatory changes and their impact on reputation and brand value, green strategies are increasingly providing new market opportunities for companies. A growing number of studies, including the 2009 State of Corporate Citizenship Survey, have demonstrated that companies across various sectors and sizes are aiming to “ride the green wave� by greening operations and/or their products. Between 2007 and 2009 the number of products in North America making green claims increased by 79 percent to 2,219 according to environmental research group TerraChoice.

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C

orporate CEOs are also recognizing the importance of environmental strategies for the success of their companies:

• A 2010 McKinsey survey found that 76 percent of executives say sustainability contributes positively to shareholder value in the long term, and 50 percent see short-term value creation.

• 93 percent of CEOs involved in a 2010 U.N. Global Compact study said that sustainability will be critical to the future success of their companies.

Yet, very few companies are able to integrate environmental issues into their business strategy. The main challenges include the complexity of implementing such strategies, the competing strategic priorities and lack of recognition by the financial markets, according to the U.N. Global Compact study.

At the 2010 International Corporate Citizenship Conference in Boston, three leaders – Applied Materials, Green Mountain Coffee Roasters and Tennant Co. – shared their experiences and lessons learned about how to develop and implement a successful green strategy.

“You really need to have your data and a plan in place before you announce goals to the public. For example, we did some internal calculations to see what reductions of CO2 emissions we can realistically achieve … and then we stretched ourselves a bit beyond that point. Once we confirmed it internally, we announced publicly that we will cut our carbon footprint by 20 percent or 50,000 tons by 2012.”

Bruce Klafter, Head of EHS & Sustainability, Applied Materials

Applied Materials: Entering new markets Founded in 1967, Applied Materials is the largest equipment supplier to the semiconductor, liquid crystal display (TFT-LCD) and solar PV industries. Leveraging the opportunities offered by nanotechnology, the company has the vision of “using technology to improve the way people live.” Its four guiding principles include energy efficiency, design for environment, pollution prevention and employee and public outreach. It has set aggressive goals such as cutting CO2 equivalents by 20 percent or 50,000 tons by 2012. In 2007, in response to growing customer demand for green products, the company established an Energy and Environmental Solutions division and developed a portfolio of products that address energy generation, energy efficiency and conservation. As a result, it reached the $1 billion revenue mark in this segment and became the No. 1 equipment provider to the photovoltaic industry, according to Bruce Klafter, head of EHS & Sustainability at Applied Materials.

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Green Mountain Coffee Roasters: Differentiating from competitors Founded in 1981 in Vermont, GMCR is one of the most successful and fastest growing companies in its industry. Recognized as a leader in the specialty coffee industry it has changed the way coffee is brewed continued on page 34

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Designing a greener future W

hile each company had a different journey toward building its green strategy, there are some common challenges and lessons.

Lessons: • Secure CEO commitment and support; successful green strategies are supported at the top.

• Begin with an inspiring mission or vision statement and translate it into a strategy with measurable goals and targets.

• Establish goals that are concrete, measurable and realistic, given the company and industry environment.

• Continuously work with and engage all employees around the issues and the strategy.

• Create cross-functional teams and engage other departments such as HR, supply chain, and corporate communications, among others.

• Engage with stakeholder groups interested in environmental issues to gain new perspectives and allies in building a successful environmental strategy.

• Being more efficient in what a company does is simply not enough. Successful green strategies require out-of-the-box thinking and disruptive innovation.

Challenges: • A successful long-term strategy should include key departments across the company and should be aligned with the business strategy.

• Disruptive green innovation is not easy. Companies need to take a step back from how the business has traditionally operated, in order to explore how things might be done differently.

• To ensure growing market demand for green products, companies must educate their consumers and empower them to take action. Communicating complex environmental issues, however, is challenging.

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at the office and at home. It has delivered double-digit net sales growth each quarter and acquired the brands Tully’s Coffee and Keurig.

Its integrated CSR strategy includes six pillars: partnering with supply-chain communities, supporting local communities, protecting the environment, building demand for sustainable products, working together for change and creating a great place to work. Environmental innovation is at the core of its mission and business strategy. Among its numerous environmental initiatives is the introduction of ecotainer in 2006, the world’s first to-go cup for hot beverages made with renewable materials. In 2008, the company commissioned a lifecycle analysis of its main package types in order to quantify its environmental impact and focus its environmental improvement efforts. It is currently working on a breakthrough technology that will change the way people consume iced coffee.

Tennant: Expanding market share Tennant is a U.S. company that few consumers have heard about because it only sells products to other businesses. While not a household name, the company has more than 12 percent market share of the $5 billion worldwide market. Founded by George Tennant in 1870 as a private wood-flooring business, Tennant has evolved into a publicly held global manufacturer of cleaning products, selling industrial vacuums, street cleaners, floor scrubbers and carpet extractors. Its customers include schools, state and federal government, health care facilities, the food and beverage industry, manufacturing and the hospitality industry, among others.

With the arrival of the company’s new CEO Chris Killingstad in 2004, Tennant made the decision to take the path toward product innovation, providing environmental cleaning solutions instead of costcutting and outsourcing manufacturing of core products overseas. In 2007, the company spent $23 million on R&D – an increase of 38 percent from 2003, of which 10 percent went to development of new products. Today, its green cleaning solutions include ReadySpace carpet cleaning technology, ec-H2O electrically converted water, and FAST foam-activated

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“Each month I read 2-3 RFPs from our customers – Wal-Mart, Kroger, TESCO, Staples – which include ‘green’ requirements. Having developed ‘green’ products and services provides us with strategic advantage and helps us maintain and increase market share and revenues.”

Stan Mierzejewski, Senior Manager, Sustainability & CSR, Tennant Co.

scrubbing technology, among others. Its products provide high-quality cleaning and reduce toxic residues, improve indoor air quality and the health and safety of people who manufacture and use them. Its ec-H2O products have an ROI of just 3 months and reduce environmental impacts in seven categories between 77 percent and 98 percent. n

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Managing a career

while navigating an evolving field

By Sylvia Kinnicutt Corporate citizenship hardly could have been considered an area of management practice 10 years ago.

Few companies were applying this title to their activities, and fewer had staff to manage it. A lot has changed in that time.

The Center for Corporate Citizenship has been tracking this with its biennial Profile of the Practice survey and in other research projects.

Photo by Michael Dillon BC class of ‘13

From these, as well as a dynamic discussion at the Center’s 2010 International Corporate Citizenship Conference, it is clear that corporate citizenship is demanding more senior and skilled managers.

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In the latest Profile of the Practice survey on corporate citizenship structure and strategy, 46 percent of respondents report that their companies have a vice president or director of corporate citizenship/corporate social responsibility. Other analysis supports the finding that the field is growing. Conversations with CSR leaders indicate that in many cases they are the first in their company to hold such a position. Now that they are in these positions, they are growing their team and developing successors. However, some suggest that one day in the not too distant future, they may be out of a job. This is not because CSR is a passing fad, but because they are working to integrate responsible management into all aspects of their business.

“All of us would probably agree at some point that ultimate success is ‘you don’t need us,’ that the company gets this, and you don’t need this centralized model, we all end up going away,” mused Dave Stangis, vice president of CSR at the Campbell Soup Company. Just as a quality manager hopes to ingrain quality into the business operations, CSR leaders are also working to embed CSR into the core business. But most companies still have quality managers, even a few decades after the initial trend took hold.

Will companies still need CSR leaders in the future? At least for a while, the answer seems to be yes. Stangis notes that there is a learning curve in effect, and early on a CSR expert is highly valuable in getting the right policies and strategies in place. A tipping point is still far in the future, as most companies still do not have official CSR executives or teams in place, and those that do are fairly new. You could call this the growth period for CSR, as more and more companies are looking to create and grow their teams.

Beth Holzman, CSR manager for Timberland, believes that having a formal CSR team is becoming a “minimum expectation” of companies. Even when CSR becomes ingrained in the DNA of an organization, strong CSR leaders will still likely be needed to ensure CSR remains a high priority.

In the Center’s 2010 Profile of the Practice study, the “age” most frequently cited for CSR teams at companies was three years. In 2008, the most frequent age identified for CSR teams was one year. Even at companies with more experience in CSR, teams are not shrinking yet. Timberland created its integrated team in 2007, and fully staffed it with 20 employees, including 11 supply chain assessors. Three years later, staff levels remain the same.

As the numbers of CSR positions are increasing, they are also becoming more senior. “If we’re saying that it (CSR) is critical to the commercial sustainability of the enterprise, it shouldn’t be anywhere else than at the top of the house … visibility and accountability are critical,” said Katherine Hopinkah Hannan, national managing partner and chief responsibility/diversity officer at KPMG, who reports directly to the CEO/chairman.

These senior jobs are highly competitive.

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“The leaders of corporate America are going to come from those that understand the corporate responsibility issue.”

Katherine Hopinkah Hannan, KPMG

Since CSR leadership is a relatively new role, it is continually being reshaped. Today’s successful CSR professional is an expert in the business as well as in an array of social issues from energy efficiency to healthy living, depending on the industry. “The ability to understand the business is critical, because you really have to be able to demonstrate the linkage to the sustainability of the commercial strategy,” Hannan said. CSR

leaders must be savvy communicators who possess the ability to influence others without direct authority.

Joseph Reganato, corporate communications manager for the Mitsubishi International Corporation said, “It takes a dynamic individual who can relate to and connect with people of all kinds of backgrounds and really sell the value of CSR.” What is in store for those working in this fast growing field? For job seekers, Net Impact Deputy Director Maggie McArthur observes that there many more people interested in working in this area than there are job opportunities. So what should those interested in advancing corporate citizenship do to advance their careers? Many senior executives advise that bringing CSR thinking to whatever role they occupy currently is useful. CSR must be integrated across the business to be successful, so having employees in every aspect of the business engaged in the corporate citizenship strategy is crucial to success and allows for many points of entry into CSR leadership roles.

In the future, there are some who predict that working in CSR may be a step on the ladder to the executive suite. “The leaders of corporate America are going to come from those that understand the corporate responsibility issue,” Hannan asserts. Hannan herself rose through the ranks of KPMG to assume this new role just last year.

Signe Spencer, senior consultant with the Hay Group, agrees with Hannan. “Some of the competencies most needed for effective CEOs today and into the future include the ability to incorporate and integrate the perspectives of multiple stakeholders as well as to develop, maintain and leverage a range of relationships outside the company, and to define and communicate the purpose and priorities of the organization beyond simply increasing shareholder value,” Spencer notes. “When we look for situations where leaders could develop these necessary abilities, CSR provides one of the very few roles in which these broad perspectives are evoked and strengthened.”

This should give extra motivation to current and future CSR leaders. n

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A sustainable job for today and tomorrow

By Peggy Connolly A bold prediction: In 20 years time, positions such as VP or director of CSR will no longer exist.

This vision shouldn’t come as a threat to anyone. It’s more of a challenge to those currently holding these titles. Or, better yet, it should be considered the realization of efforts to embed the principles and values guiding corporate citizenship practices into company culture.

Let’s face it, in most firms corporate citizenship is a collection of programs, activities and tactics stitched together like a patchwork quilt. It may be complex and exquisite, but nevertheless, it’s a collection of disparate pieces. Real sustainability will only be realized when each piece is woven into the culture to fashion a sturdy tapestry that displays a collective vision.

I don’t want to play down how long this will take or minimize the hard work and strategic positioning necessary to make this bold prediction a reality – that’s why it isn’t a threat to any incumbent VP. There is a long path ahead, it won’t be straight, and companies will progress at different rates.

Most companies are in the very early stage of the trek when a challenge comes from the CFO to demonstrate the business case for corporate citizenship. Clearing this hurdle often leads to creation of a position such as VP of CSR. With a mandate in hand and a lot to prove, this executive sets out to integrate corporate citizenship throughout the business. In most cases this involves a variety of internal transactions: demonstrating the value of corporate citizenship to goals related to key objectives such as employee retention, reducing GHG, connecting with customers, supply chain management and so forth. All these things are valuable, but not likely sustainable until they become integral to the business strategy set by the executive leadership team.

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To be effective as a VP of CSR, making the connections at the senior reaches is critical. The Center’s recent Profile of the Practice survey reveals many CSR leaders are making progress as more boards are forming oversight committees and the number of executive-level councils and cross-functional teams are on the rise. Progress on this will, no doubt, be slow.

One way to accelerate progress might be to make everyone in the company part of the team. What if being responsible for the firm’s standing as a corporate citizen was written into every job description and supplier contract? And not just for the people in headquarters. The folks on the factory floor, in the delivery trucks and storefronts around the world need to understand, and be able to express, the values and strategies of the firm because they greatly influence reputation – something a company can’t buy but can lose when the frontline workforce isn’t recognized or rewarded for what they contribute.

CSR managers responding to our Profile of the Practice reported that only 23 percent of the general workforce in their firms was “very informed” about corporate citizenship issues affecting the company. That’s a strong signal this will be a long process. Leaders in the field need to find ways to build corporate citizenship into the recruitment and hiring process, write relevant responsibilities into job descriptions, offer training and make this a part of the annual performance review of every employee.

So I’m not forecasting the loss of any jobs. In fact, corporate citizenship is really a full employment act because the work will never go away. And unless responsibility for this work is shared as part of every job, the company isn’t operating at capacity or realizing its potential to create economic prosperity and contribute to a just and sustainable world. n

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3 reasons why mandating CSR is not smart, but India goes ahead anyway

By Aman Singh Can the intangible tenets of corporate social responsibility be quantified and regulated?

It’s a debate that kept frequenting the news through 2010, with much of the murmurings coming from Europe and Asia. Now, the wait is over. At least for India. According to The Economic Times, spending on corporate social responsibility is no longer going to be voluntary for India Inc. In fact, every company meeting certain profitability standards annually “shall be required to spend every year at least 2 percent of the company’s average net profit during the three immediately-preceding financial years, on CSR activities of the company’s choosing.”

Several problems here, although, no one who’s been closely following this can say they didn’t see this coming.

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1. Misinterpretation of CSR First of all, the Parliamentary Standing Committee on Finance that passed the regulation failed to define what constitutes “CSR activities.” What does that mean?

Further, why are we even using CSR to define an activity unless of course the Indian government is just trying to get with the times and replace philanthropy for CSR?

2. What does CSR involve?

Secondly, what factors will companies base these choices on? Which communities’ education, advancement, etc. could help their own bottom line? An organization that aligns with the CEO’s personal interests? The company’s own foundation? Or perhaps, donating that 2 percent to a mainstream nonprofit that helps companies easily check the compliance box without further involvement?

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3. Will regulating social responsibility really be impactful?

And finally, this will serve to undermine the very message the government is trying to send, i.e., India’s private sector must become proactive about addressing its impact on the country’s society and environment – and shift from shareholder profitability to stakeholder profitability, by mandating the outreach. The Economic Times summed it up well: “The ambiguity on what constitutes spending on CSR, the manner in which the amounts should be deployed and whether corporations can give their mandatory spend to a trust or foundation run by the business itself can, in fact, lead to Indian businesses ending up spending less than what they currently do on CSR.” Which means just another easy way for corporate India to check a box without ensuring large scale impact.

A small, hopeful part of me wants to say, yes, this is the push the developing economy needs to address its long-term issues of social inequality, income disparity and lopsided growth. But the analytic and objective me knows it’ll take much, much more than a 2 percent regulation to change corporate culture, whether that’s in India or America. n Originally published Feb. 18, 2011. Reprinted with permission of Vault.com. Aman Singh is the senior corporate responsibility editor with Vault.com. An IEMA-certified CSR practitioner, Aman is the author of Vault’s CSR blog: In Good Company, where she focuses on connecting career paths with CSR, sustainable business practices, diversity & women leadership in the workplace, and how increasing debate and engagement of these practices translates into recruitment and strategic development at companies. Singh also writes for Forbes’ CSR blog and CNBC’s blog on Executive Careers.

She was formerly with The Wall Street Journal.

Corporate integrity and responsibility start at the top The Directors’ Intensive Program on Corporate Governance draws on Boston College’s tradition of excellence and ethics to help directors, senior executives and their counsel understand and fulfill their fiduciary duties with the rigor and wisdom necessary to both ensure legal compliance and promote sustainable, long-term value.

Featuring experts from business, law and academia, this one-day program, filled with lectures, panel discussions, and small group breakouts, is designed to address some of the most important issues facing corporate boards, including directors’ duties, director protection, and how corporate responsibility and the global economy relate to risk management.

Presented by Boston College Law School in collaboration with the Carroll School of Management Center for Corporate Citizenship

Wednesday, June 22, 2011 • Boston College Law School For more information and to register, visit: www.bc.edu/directorsprogram

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2011 international corporate citizenship conference sponsors Convening Sponsor

Dinner Sponsor

Plenary Sponsors

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Lead and Learn Sessions

Wifi Access

Opening and Closing Receptions

Leaders

Partners

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By Katherine Smith

“How can I make this better?”

“How could this happen?”

Your corporate citizenship is part of an evolving covenant between business and society and – make no mistake about it – society is changing in ways that we have demonstrated we are not prepared for. The radical disruptive innovations of just the past five years may be dwarfed by others that we have yet to experience. Our appetites are out of sync with our ability to preserve our natural environments and resources. Both individual and corporate citizens are going to have to change how they do business. Corporations face the added complexity of having to engage with customers and stakeholders faster than ever before. Well-prepared professionals grounded in corporate citizenship have an opportunity to make tremendous contributions in this context.

It is a question that is asked usually in tones of dismay, despair, disbelief – and it has been asked often in the past year about events that might confound our optimism about human intentions.

In a knowledge economy, human capital is part of the equation. Employees can be a firm’s greatest asset and most valuable resource – and its greatest liability. It is not the monolithic corporate entity that has failed in our most notable recent crises, but people within them. I am not judging. All of us have the capacity for failures as great and consequential, and for triumphs of even greater magnitude.

The earliest notions of citizenship combined rights and privileges accorded an individual with expectations of participation in civic life to advance the common good of society. A virtuous citizen accepted, in addition to privileges, obligations to contribute to the community beyond participation in markets or governments. Our perceptions of our citizenship obligations may vary according to the position we occupy within our social or corporate structures. If there is anything the past year should teach us, it is that we might benefit from imagining what it would be like to experience citizenship from the perspectives of others. This is certainly true when we are designing corporate citizenship, philanthropy, and community involvement programs, but it might also benefit those business functions and life pursuits that have less obvious connections.

In addition to contributing to the positive brand of your company, your ideas about corporate citizenship and those that you hear from your stakeholders through the multitude of channels available today have the potential to help you imagine a different way of operating, a new product, a new service, a new business model, a new way of engaging stakeholders, of supporting a community. Perhaps we should try to spend more time imagining the world we want to live in and more time asking:

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You have the relationships, the expertise, and the data to help develop and guide new business strategies for this millennium. Being able to articulate the risk of inaction and to quantify the opportunity that can be found in new modes of engaging stakeholders and markets and supply chains may be the way forward.

If it is, there is no group of people who are better positioned to guide us as we imagine the future we want for our world. Now our task is to make sure we are prepared. So I propose that each of us take time every day to employ the various strategies outlined in this edition (Boynton’s idea hunting, Roam’s visualization, Singh’s scanning of international trends) – and any others that can be usefully applied – to imagine the world you want to live in and ask yourself and those around you:

“How can I make this happen?”

It is an investment in your future. n

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The future is what we make it

Target has always believed in strengthening the communities where we do business. It’s a commitment that began when we opened our first store in 1962, and today extends to more than 1,750 neighborhoods throughout the United States and nearly 30 countries around the world.

Learn more about Target’s corporate responsibility commitment at Target.com/hereforgood.

Š 2011 Target Stores. Target and the Bullseye Design are registered trademarks of Target Brands, Inc. All rights reserved.

PRESORTED BULK PAID PUT VT MAILING Permit No. Carroll School of ManagementCenter for Corporate Citizenship Boston College 140 Commonwealth Ave. Chestnut Hill, MA 02467 www.BCCorporateCitizenship.org

Expand your knowledge This fall the Center for Corporate Citizenship will offer two intensive programs for professionals looking to advance themselves and help their companies make a positive impact on society. Both will be offered on the Chestnut Hill campus of Boston College and feature instruction by faculty members from the Carroll School of Management.

Community Involvement Leadership Academy, October 24-28, 2011 Designed for experienced community involvement managers, the Academy is an intensive 4-1/2-day on-campus program. Upon completion, participants will receive their Certificate in Community Involvement Leadership from the Carroll School of Management at Boston College.

Corporate Citizenship Management Academy, November 7-11, 2011 This Academy is designed for business managers from across the company – human resources, communications, public and community affairs, and others – who need to understand the emerging practice of good corporate citizenship management. This 4-1/2-day on-campus program leads to a Certificate in Corporate Citizenship Management from the Carroll School of Management.

Enrollment in the Community Involvement Leadership Academy or the Corporate Citizenship Management Academy is by application only and the number of participants is limited. Early application is encouraged, as the inaugural Academy session in fall 2010 filled quickly.

For information on either Academy, or to inquire about the application process, contact Karen O’Malley at karen.omalley.2@bc.edu or 617.552.1553.

Save the date International Corporate Citizenship Conference Phoenix March 25-27, 2012