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Fall 2011 Issue 6

The Corporate Citizen


Listen and learn to lead

7 15 19 32

Connecting to the most valuable asset McDonalds focus on trust builds brand and leaders Leading voices share their thoughts Lessons from leaders for leaders

24 Social media open doors for corporate citizenship 42 APS hits for power at Chase Field

The Corporate Citizen


Fall 2011 Issue 6
Out front 2 4 5 Wisdom from listening Center academies put learning into action Community comes into focus
Publisher Carroll School of Management Center for Corporate Citizenship at Boston College The Corporate Citizen is published biannually by the Carroll School of Management Center for Corporate Citizenship at Boston College, Chestnut Hill, MA 02467. 617-552-4545. www.BCCorporateCitizenship.org. Copyright 2011. Postmaster: Send address changes to The Corporate Citizen, Attn: Josefina Chacon, 55 Lee Road, Chestnut Hill, MA 02467-1717.

Features
7 Connecting to the most valuable asset Connecting 7 10 Medtronic creates shared value with strategy for disease battle 15 McDonalds focus on trust builds brand and leaders 19 Leading voices share their thoughts 24 Social media open doors for corporate citizenship 32 Lessons from leaders for leaders 42 APS hits for power at Chase Field 44 Occupy ourselves with a search for lasting solutions Social media 24

Lessons from leaders 32

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Wisdom from listening


When we think of leaders we often recall great speeches and other words of wisdom that theyve left us. In the knowledge economy, recognizing important opportunities, issues, and trends requires continual learning. Robert Frost once described wisdom as the ability to listen to anything without losing your temper or your confidence. This issue of The Corporate Citizen looks at leaders who are great listeners and great learners. Best Buy CEO Brian Dunn is in the business of providing people the tools that they need to connect to each other. He recognizes his employees as his firms greatest asset and most powerful engine in achieving that goal. Dunn emphasizes that it is not just the productivity of his employees, but the insight gained from hearing their experiences and priorities that helps him to understand what should be important to Best Buy. The Foundation team at Medtronic, led by Heather Hudnut Page, is a global leader in the battle against non-communicable diseases (NCDs). Youll read how Medtronic seeks to engage all sectors of society in collaborative efforts to prevent and treat NCDs with a strategy that creates shared value between the business and society. Jan Fields, president of McDonalds USA, shares how McDonalds is engaging and listening to employees and customers in order to focus on actions that make the most business sense and mean the most to customers. In what Fields calls the smart zone, McDonalds has made major commitments to educating consumers about nutrition, environmental sustainability, and continuing its strong legacy as an employer that has demonstrated a major commitment to developing its employees. Read about the lessons shared by corporate citizenship leaders via the Centers online Executive Forum and during the Lead and Learn breakout sessions presented by FedEx, Humana, Northern Trust, and Travelers at our annual conference. Much of the knowledge generated goes back to the willingness of these leaders to connect with employees, customers, and other partners and hear their points of view. As you read this magazine and consider how much knowledge these leaders gather when they listen, keep in mind the observation of Plutarch, whose major works explore attributes of leaders, that those who listen well can profit even from those who talk badly. We applaud these leaders for their commitment, discernment, and success at listening and learning in order to lead well. Sincerely,

Katherine V. Smith, Executive director Carroll School of Management Center for Corporate Citizenship at Boston College

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Target has always believed in strengthening the communities where we do business. Its a commitment that began in 1946, and today extends to more than 1,760 neighborhoods throughout the United States and nearly 30 countries around the world. Learn more about Targets corporate responsibility commitment at Target.com/hereforgood.
2011 Target Stores. Target and the Bullseye Design are registered trademarks of Target Brands, Inc. All rights reserved.

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Center academies put learning into action


What I learned in the Leadership Academy helped me and my team shift our thinking to view our work not as a project to be managed but as a leadership challenge to be met. We approached the work so much differently and were able to move so much more quickly and effectively leveraging the tools and knowledge Id gained in the Academy.
Kathleen Ryan Mufson, director of corporate citizenship and philanthropy, Pitney Bowes

Corporate managers came to the Carroll School of Management on the Boston College campus this fall for two innovative, weeklong academies. At the Community Involvement Leadership Academy and the Corporate Citizenship Management Academy managers learned how to make valuable connections to their companys business strategy and identify ways to position programs to capture the attention of senior leaders and other important stakeholders.

Both academies featured Dean Andy Boynton (right), Carroll School faculty including Mary Ann Glynn, Ph.D., the Joseph F. Cotter professor and director of the Winston Center for Leadership and Ethics; and Michael Pratt, Ph.D., OConnor Family professor and Ph.D. director, as well as faculty from other disciplines at Boston College and corporate practitioners.

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Community comes into focus

Knowledge products

ince 1995, the Center for Corporate Citizenship has been surveying community involvement practitioners about their companies community involvement, their internal support, programming resources and policies, and critical social issues that draw corporate attention. The 2011 Community Involvement Index survey reflects the evolution Focus on results of community involvement as an important part of doing business that enjoys increasing support from top leadership. Survey results indicate that most companies are working to increase the focus and impact of community involvement and to integrate the function more thoroughly with business strategy. This report provides information on how companies approach community involvement, how the function is organized and what strategies are employed to deliver social and business value.
The Community Invol vement Index

Here is a sampling of findings from the 2011 Community Involvement Index:

86% 82% 81%

of companies have a specific community involvement strategy

80% 75%

of companies include community involvement initiatives as part of the business strategy

of survey respondents say involvement of senior management contributes to the success of their community involvement programs

cite education as a critical issue for their community involvement

of companies offer employees opportunities for non-skilled volunteering

58%

of companies donated $1 million or more in the past fiscal year

To download the 2011 Community Involvement Index report, Center members can go to http://bccorporatecitizenship.org/CIIndex.

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Tap into the energy of our Member Community


The Center for Corporate Citizenship online Member Community is a safe, supportive forum for practitioners to learn, collaborate, explore ideas and support one another. There is virtually no end to the ways you can exchange knowledge: Start or contribute to a discussion. Connect with other members or find colleagues youve met at courses, conferences or other events. Share videos and photos of your companys corporate citizenship efforts. All Center members are invited to join the Member Community. If you havent already, just email Susan.Thomas@bc.edu and shell be glad to get you access.

http://bccorporatecitizenship.org/ MemberCommunity.

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Connecting to the most valuable asset


Best Buy CEO listens to employees and customers to find motivation and value
Brian Dunn learned the value of listening very early in his Best Buy career. More than 25 years ago, at the suggestion of his mother, a Best Buy employee, Dunn decided to give Best Buy a try as a part-time sales associate. Now Best Buys CEO, Dunn still shares a critical lesson: Every once in a while, its a really good idea to listen to your mom.

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Recognizing the value of being a good listener comes in handy for the leader of a company that is all about communicating and connecting. Dunn sees Best Buys role in todays connected world as providing access. For him its about more than selling products and services that drive customers onto the information superhighway. When I say the word connections, it sounds so techno-babble, jargon, remarks Dunn. What it really is, is the connection between people, and thats priceless.

ness trips. The basketball-loving Dunn boys and their father have even used videoconferencing via their computers to watch NBA playoffs together though they were on opposite sides of the Atlantic. Connecting with employees While Dunn enjoys staying connected with loved ones, he also believes it is very important for him to communicate and get closer to those who work for him. At Best Buy we know our employees are our

Flanked by blue shirts, Brian Dunn, Best Buy CEO, rings the opening bell at the New York Stock Exchange. Dunn interacts with employees and customers, in person and online, including his Brians Whiteboard blog, above right. Firsthand experiences Dunn has experienced how hardware and software, wires and wifi can provide interactive experiences that are very real, very human. A self-described social media fanatic, Dunn on Memorial Day 2010 tweeted his support for military service members, particularly those who are Best Buy employees. Within an hour he got a tweet back from a woman who worked at a Best Buy in Missouri. It was the beginning of a correspondence through which she told how her husband was deployed for a second tour in Iraq. Thanks to the same technology she sells as a Best Buy employee, her three young children were able to hear and see Dad every night via Skype. Best Buys CEO has used technology to spend time with his own three sons while away on his many busimost valuable asset, says Dunn, who stresses that in a competitive industry it is vital that Best Buy leverage its people as a competitive advantage. Dunn is still quite comfortable on the sales floor where he started more than 25 years ago. Now whenever hes on the road, going to a store and hanging out on the floor is one of his favorite things to do. To get out and talk to the men and women in our stores, to understand what theyre hearing from our customers, whats good about working for us, whats bad about working for us, says Dunn in explaining his visits to the sales floor. You know whats great about it? If you actually put in the time and roll up your sleeves, people will talk to you about whats good about what they do and whats not good. And man, thats precious. Dunn enthusiastically urges business leaders to

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get engaged with your people pulling the wagon, and really listen to their suggestions and ideas. Youve got to fight that totally human characteristic of executives to explain it away through very logical reasons why we cant do this or that, he emphasizes. What you actually have to do is shed that skin and flip your paradigm to How can we get that done?. As he talks to employees on the floor, Dunn reflects, the conversations inevitably turn to their personal hopes and dreams and the role that Best Buy can play

ployees, explains Dunn. My point is you cant just have a discussion board like The Water Cooler. Youve got to be willing to engage with it and listen. The Water cooler is just one place where Dunn goes to listen. He has 5,000 friends on Facebook mostly employees and he answers all communications himself. Its a place where my employees can reach out and talk directly to me and I love it, Dunn says. I think its utterly amazing because I learn so much. One of the reasons Dunn says he learns so much

Dunn stresses that it is critical that Best Buy leverage its people as a competitive advantage. At Best Buy we know our employees are our most valuable asset.
in helping them achieve them. In a visit to a store in Las Vegas, Dunn met with a young Mexican-American employee who was excited about Best Buy opening stores in Mexico. He wanted his parents there to see what he does and share his pride, and wanted his brothers and sisters to work for the stores. You cannot underestimate the power of that kind of motivation, says Dunn. If youre lucky enough to create a platform where people see a pathway to their dreams, hopes and aspirations, boy youve got a powerful, powerful engine. Virtual outreach Dunn regrets he cant get out to meet more people and make personal connections, but he tries to reach out through a number of internal and external social media channels. Best Buy has an internal discussion board called The Water Cooler where Dunn says employees go on and air it out. He recalls the time in 2008 when employees took the opportunity to air it out over a plan to cut costs by reducing the level of employee purchase benefit. The cut seemed like a good idea to some really smart people Dunn says, but on The Water Cooler we just got hammered. While the plan was going to save $10 million annualized Dunn realized quickly it was a bad decision that had to be reversed. It probably was going to cost us 50 times that in the good will of our emfrom social media is the fact its not all good news. When you get to my job, people dont line up to tell you stuff thats bad. Youve got to go get it, he says. I love these social media places because they are a way to connect with real people who are experiencing your strategy good and bad every single day. Dunn also likes to engage employees and customers in interactive discussions through his blog, Brians Whiteboard. We do a ton of listening through all these channels, he says. Theres this massive conversation going on out there and youve got to be part of it. Dunn finds he gets great ideas from employees and customers but at the same time has an opportunity to hear them vent frustrations. This requires getting used to listening to things he may not want to hear. It takes the veneer right off the whitewash that corporate America has had for about the last 50 or 100 years, Dunn remarks. I think its very liberating. Despite the abundance of high tech channels for communicating, Dunn can still go old school. He does town hall-style meetings with about 100 employees where nothing is out of bounds, nothing out of limits. Dunn emphasizes that his priority in connecting with employees and customers is not hitting the mother lode of brilliant ideas. The great value, he says, comes from the act of listening and people understanding that what they think is important, not just what they do. n

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Medtronic creates shared value with strategy for disease battle


n taking a shared value approach to its corporate citizenship, Medtronic, a global leader in the

medical device field, has found a way to make a positive impact by combining its business expertise with key partnerships with the government, academic and nonprofit sectors.

Cancer, diabetes, lung and heart disease kill more people each year than any other condition and represent 75 percent of global health care spending. Medtronic and the Medtronic Foundation are applying their assets to addressing these conditions, categorized as chronic non-communicable diseases (NCDs). Through the Medtronic Global NCD Initiative, they are leveraging product, people and philanthropy to maximize the business and social impact of these efforts. Heather Hudnut Page, director of the Medtronic Foundation and Community Affairs at Medtronic, explains that being part of a solution to NCDs fits with Medtronics Vision Statement: Creating a world where every person suffering from chronic disease who could benefit from our diagnostic, therapeutic and disease management solutions will get them. Page adds simply, its who we are. The Medtronic Foundation and the company are aligned around the same mission on NCDs with different focuses. The foundation focuses on prevention and primary care to make sure patients with NCDs get into a health care system. The company focuses on diagnosis, treatment and long-term care of those patients. The objectives of Medtronics Global NCD Initiative are ambitious:
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Patients are treated through Partners In Health programs supported by Medtronic at the rebuilt Rwinkwavu hospital in southeast Rwanda, above and right, and at the newly opened hospital in Northern Rwanda, far right.

Treat 25 million patients per year by 2020. Today the company treats 7 million patients, 1 million in emerging markets. Included in the 25-million-patient goal for 2012 is a target of 15 million patients in emerging markets. Ensure NCDs are included in the 2015 Millennium Development Goals agreed to by 129 countries. Position Medtronic as an authentic thought leader in treating NCDs. Increase access to diabetes, cardiac and vascular therapies.

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Medtronic and Medtronic Foundation have laid out a three-part strategy to take on the NCD crisis: 1). strengthening health systems, 2). contributing to global policy and advocacy, and 3). focusing on therapy and healthcare delivery innovation.

Supporting NGO partners to integrate chronic disease into primary care Identifying endemic diseases unheard of in the developed world, such as chagas or rheumatic heart disease, and identify core care pathways to treatment Accelerating knowledge centers to disseminate best practices regionally and globally Integrating chronic disease into primary care is of critical importance and partnerships such as the one between Medtronic and Partners In Health are at the center of the effort. Were extremely lucky to have a partner as thoughtful and committed as Medtronic in our work around NCDs as well as other key projects, says Brandie Conforti, director of corporate and foundation relations at Partners in Health. As evidenced by its name, Partners in Health (PIH) knows its way around collaboration. In addition to its work with corporations like Medtronic, PIH works with foundations and local ministries of health to strengthen public health care systems. Before starting its work on NCDs, PIH was in Africa with a model for treating complex diseases such as HIV and tuberculosis within the context of primary care. Conforti explains that when PIH connected with Medtronic to start moving to work on NCDs, Medtronic was already a leader in the area. Their seed funding enabled our chronic disease work to begin to take shape in Rwanda and it provided yet another opportunity for PIH to strengthen the public health care system, Conforti recalls. In PIHs early days working in Rwanda, Conforti says, NCDs accounted for 30 to 40 percent of hospitalizations. To address this high rate, PIH adapted the approach it used in the treatment of HIV in Haiti by decentralizing health care delivery. Care and treatment flow out from a district hospital to a health center and then to the community level. Each of three district hospitals in Rwanda has an advanced chronic care clinic for non-infectious disease. District hospital leaders also work closely with staff at health centers, providing training, mentoring and education of health center staff in chronic care disease management so that basic management of NCDs can be addressed at the local level, Conforti explains.

Strengthening health systems


Medtronic has had a great impact collaborating with NGOs like Partners In Health, an international health care NGO working in 12 countries to alleviate the burdens of poverty and disease. Medtronics goal for strengthening health systems is to grow their capacity to prevent, diagnose, and manage NCDs. Its all about increasing access to care for patients, Page stresses. On the business side, Medtronic has taken a fourpronged approach to strengthening health systems. This includes: Promoting patient education and health literacy to improve awareness Expanding physician medical education to increase treatment availability Expanding product donations to reach underserved areas Offering skilled volunteerism to provide additional on-the-ground solutions From a foundation perspective, Medtronic focuses in three areas:

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Community health care workers are the heart of the program and accompany patients who have complex drug regimens for treatment of their disease. The PIH/Medtronic NCD Partnership is focused broadly on advocacy, the feedback loop of monitoring and evaluation, research, and education and training, all with the ultimate goal of strengthening the health care system, Conforti says. Collaborative efforts of partners such as Medtronic and PIH continue in locations around the world to make a difference in the fight against NCDs. In northern Rwanda, PIH has opened a 150-bed world class district hospital that will serve as a national teaching hospital and a clinical center of excellence. It (the hospital) is truly a physical manifestation of what PIH and Medtronic seek to achieve through their partnership: Health system strengthening in Rwanda through addressing the burden of non-communicable disease.

None of those will do. All of them have to be in the discussion. The tent has to be large enough and thats where we are headed. A major goal of Medtronics focus on global policy and advocacy was preparation for the U.N. General Assemblys September 2011 meeting on NCDs. At that meeting the General Assembly adopted a declaration recognizing the economic and social burdens of chronic disease. After the meeting, Dr. Jacob Gayle, vice president of Medtronic Foundation and Community Affairs, remarked that it would bring significant momentum to a long-term effort. Its our hope that the global health community can come together to fo-

Global policy and advocacy


Dr. Trevor Gunn, Medtronics senior director of International Government Affairs, explains that the worlds understanding of NCDs is fraught with misinformation and stereotypes. They are also a major threat to the global economy. U.N. Secretary General Ban Ki-Moon has said that NCDs hamper the people and economies of the worlds poorest populations even more than infectious disease, representing a public health emergency. This flies in the face of a popular myth that NCDs are concentrated in elderly male populations of affluent, developed nations and that they are caused predominantly by lifestyle choices. In fact, 80 percent of people living with NCDs are in low- to middle-income countries. While lifestyle contributes to causing NCDs, genetics and the environment are other major factors. Nearly 50 percent of those who die of NCDs die between the ages of 30 and 50. Gunn notes that despite the impact of NCDs, only 1 to 3 percent of global donor resources from a variety of sources go to fighting them. He says advocacy is important in order to increase recognition and understanding of the issue in all sectors of society. Its not just a government thing, its not just an NGO thing, and its not just a private sector thing either, when it comes to causes or solutions, says Gunn.

Medtronic and the Medtronic Foundation, through its Global NCD Initiative, is leveraging all of its corporate assets product, people and philanthropy to maximize the business and social impact of efforts to combat NCDs.
cus on strengthening overall health systems, especially in low- and middle-income countries, to better address non-communicable diseases, Gayle said. This will require a sustained, multi-sectoral commitment, and increased resources at country levels to ensure proper prevention, diagnosis, treatment and care. Gunn stresses that Medtronic is pursuing truly measurable, yet truly attainable goals and will take the lead on the issue within the company and through external commitments. On the business side this means leading a private sector coalition and forming partnerships with the public sector to bring change to both business models and the regulatory environment. For its part, the Medtronic Foundation is supporting the international NCD Alliance around cardiovascular disease, diabetes, cancer, and chronic respiratory disease with a $1 million two-year grant. The foundation is also supporting advocacy by NGOs with initiatives such as sponsorship of the Partners In Health Conference addressing NCDs of the Bottom Billion.

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ferent pricing models and shared risk helps Medtronic find business models that fit locally but can be scaled globally with some customization from country to country. The Medtronic Foundation supports innovation by funding grants to NGOs working to develop diagnostics and medical technologies for emerging markets. Hess cites a new pacemaker delivered via catheter directly into the heart as an example of adapting technology to local culture. Some cultures, he explains, resist conventional technology that involves A doctor visits with Partners In Health patients in Rwanda. more invasive implanting of a pacemaker through the chest. Therapy and healthcare delivery innovation The smaller, simpler catheter implant is more acceptMike Hess, vice president of Innovation Excellence at able and provides some cost efficiencies because they Medtronic, says that more than 4,000 Medtronic encan be delivered easier and less expensively in broader gineers are being asked to solve problems related to populations. treatment of NCDs by thinking about the origin of the People and infrastructure factors require innovation problem and how they can get around it and achieve in business models and technology such as telemedithe Medtronic mission in these environments. Were cine and distribution of simple software that makes it really focused on increasing the access of our patients possible to get expertise to dispersed populations. Beto affordable, appropriate therapy, and focusing on ing innovative, Hess says, also means thinking about how we can be innovative in these products themselves things like power delivery and government regulaand the health care delivery models that we use to get tory factors. Meeting regulatory demands in some them to our patients. countries for more local content in products and local One business goal for Medtronic is to develop manufacture has built competency in these countries breakthrough therapies that enhance affordability and to understand technology better, while developing local access and outcomes for patients needing treatment expertise in clinical trials and medical device design. for NCDs. The company is also working to utilize loHess is hopeful that Medtronics targets for treating cal R&D to expedite technical development and cliniNCD patients in emerging markets and adding NCDs cal research. Hess stresses that doing research and to the Millennium Development Goals is in reach. I development in emerging markets is not about saving think that by having an open mind to the technology money on costs. Its value comes in having local engiwe develop as well as to how we choose to commerneers with access to local doctors and patients so they cialize our products, weve got great potential to drive can better learn what is needed and deliver products the adoption much faster and achieve the audacious 15 in a timely fashion with the right economics behind it. million patient goal. n Creating and testing new business models is also a part of innovation by Medtronic. Being open to dif-

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Stay current and recharge your knowledge

enter for Corporate Citizenship members get the latest news, research and information delivered to them where and when its most convenient. The Center is a source of critical information that corporate managers need to understand and navigate business and society.

Webinars
These monthly sessions connect members free of charge from their desktop with live experts and practitioners sharing how they tackle a range of tough corporate citizenship challenges. Members also have access to an on-demand library of past webinars on a variety of topics.

Signature Research
The Centers four signature research reports State of Corporate Citizenship, Profile of the Practice, Profile of the Profession, and Community Involvement Index survey corporate practitioners and executives to capture the latests trends and best practices.

Media Monitor
Distributed by email weekly, the Media Monitor keeps members aware of the latest news that informs and influences conversations affecting corporate citizenship on Wall Street and Main Street. Look in your inbox for the subject line News you can use every Friday.

Member Requests
Your dedicated Center staff contact can help find the answers to your most challenging questions. Center members can visit our website at www. bccorporatecitizenship.org to take advantage of these resources. Not a member? Join now at www.bccorporatecitizenship.org/membership and plug into the power of knowledge.
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Research Briefs
Monthly Research Briefs summarize tried-and-true insights from corporate practice and academic study that apply to your work. Members also have access to archived Research Briefs on the Center website.

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McDonalds focus on trust builds brand and leaders

or Jan Fields, the president of McDonalds USA, corporate citizenship and commitment

to building brand trust are the guideposts to growth and business success.

She believes that if you want to assess a companys ability to build trust you ought to look at how it treats employees. And while she works in the executive offices now, Fields knows from personal experience how McDonalds treats the people on the front lines at their counters. She worked at one of those counters 30 years ago as a young mom juggling child care and college courses in Dayton, Ohio. Fields says McDonalds has always treated her well and earned her trust by providing her with the best, most valuable gift of all opportunity. And there are many others who share her perspective. She notes that 30 percent of McDonalds global executives once worked on a restaurant crew as did 50 percent of franchise owners. Her experiences as crew member and corporate leader, Fields explains, have allowed her to see the entirety of what it takes to build shared understanding of McDonalds goals and commitments that influence decisions at the counter or in the corporate offices. She stresses that building this is even more important today with customers who are more discerning, engaged and demanding. Their increased expectations are demonstrated with feet and wallets, creating a slow steady force for change in the marketplace. For Fields, meeting expectations means focusing on actions that make the most business sense and mean the most to customers. I like to call it being in your smart zone, she says. And just like other parts of the

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business, Fields points out, a company must keep inmitment to brand trust is not an initiative its a filter novating and evolving to remain relevant. for how we make business decisions. Fields further defines being in the smart zoneas Menu and nutrition recognizing where there Under this pillar, Fields said, Fields stresses that building trust are more opportunities. But there are two key consideris even more important today while the sheer size of Mcations for McDonalds. 1). Donalds offers an incredible There is increasingly intense with customers who are more scope of what it can do, this consumer scrutiny and regudiscerning, engaged and demanding. lation that affects all brands, also requires being focused. By engaging and listening, a and 2). McDonalds must be company can learn what issues it needs to focus on. proactive in strengthening its food image. To address Fields says that improving commitments to conthese issues, McDonalds continues to offer more menu sumers and employees continues to be a priority for options and is being more proactive in telling the stories McDonalds. of its quality and sourcing, and about its industry leadMcDonalds brand strategy is built on three main ing standards in safety. In July, Fields announced a comprehensive plan pillars: menu and nutrition, environmental sustainto help customers especially families and children ability, and people. Fields emphasized that this com-

One of more than 1 million people fills out an application on April 19 during McDonalds National Hiring Day.

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Environmental sustainability
With 33,000 restaurants around the world, including 14,000 in the United States, Fields says McDonalds understands that reducing our energy is a huge way to make a positive impact. Other ways McDonalds is making an impact include implementation of an environmental scorecard and a sustainable land management commitment to eventually source all ingredients from third-party certified sustainable land.

People
For many, McDonalds is a first employer that fulfills a promise of opportunity. One young woman exemplifies this attitude when she says I believe in McDonalds because they believe in me.

Jan Fields speaks at the 2011 International Corporate Citizenship Conference. make nutrition-minded choices whether visiting McDonalds or eating elsewhere. One step in the plan started in September when McDonalds began including produce or a low-fat dairy option in every Happy Meal. This change results in an estimated 20 percent reduction in calories of the most popular Happy Meals. Recognizing the importance of providing nutrition information to customers and employees, McDonalds will expand in-restaurant, website, and mobile communication, and marketing vehicles; making access even easier. McDonalds has also made available its first mobile app so customers can access nutrition information on-the-go. In addition to providing information on nutrition and its initiatives, the company is actively seeking feedback. Fields and McDonalds U.S. executive leadership team embarked on a national listening tour in August to hear directly from parents and nutrition experts about how McDonalds can play a role on this issue. McDonalds also has plans to launch a new online parents community that provides a forum for the company and parents to engage in conversations around nutrition.

In April, McDonalds U.S. restaurants held a National Hiring Day with a plan to hire 50,000 managers and crew. More than 1 million applicants responded and ultimately 62,000 people were hired.
Fields says McDonalds wants to work on its employment image and last spring addressed the jobs issue in a big way. On April 19, McDonalds set out to hire 50,000 managers and crew at U.S. restaurants to make what Fields called a real statement about how we value our people and the communities in which we do business. McDonalds and its franchisees ultimately hired 62,000 people after receiving more than 1 million applications. Efforts like McDonalds National Hiring Day are a part of what Fields sees as finding the smart zone and focusing on the right priorities to strengthen the business and the brand. It takes integrating the work and listening and evolving with customers and the larger world. Building your brand and earning trust takes time, persistence and consistency, stresses Fields. Its a journey. n

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Show us your star power


ideo is a terrific medium for sharing a corporate citizenship message and building awareness of your companys positive impact on the community and society. The Center for Corporate Citizenships annual Film Festival once again offers companies an opportunity to demonstrate how they have utilized video as a communication tool.
Entry in the Film Festival gives companies a chance to inform employees of corporate citizenship efforts while engaging them in the festival voting process. In early January we will begin accepting entries for the 2012 Film Festival. Watch for details on our Film Festival page: www.BCCorporateCitizenship.org/FilmFestival The winner of the Film Festival will be announced during the 2012 International Corporate Citizenship Conference, March 25-27, in Phoenix. More than 35 entries were submitted in the 2011 Film Festival and thousands of votes were cast by those who viewed the videos on the Centers website. Dont miss your chance to walk the red carpet!

www.BCCorporateCitizenship.org/FilmFestival

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Knowledge@Work
Inspiration from our Executive Forum

tive Forum blog, they share their experience and insight about a variety of issues influencing corporate citizenship. Heres a glimpse at what they have to offer.
BOB LANGERT, MCDONALDS
Bob Langert, vice president, Corporate Social Responsibility, at McDonalds has worked in corporate citizenship for two decades and professes to have seen the good, the bad, the ugly. He shares 10 lessons learned from his experience and McDonalds corporate citizenship journey. Here are the first four: Create a CSR strategic framework Its no longer just about building a trust bank by being community leaders, giving back, and having programs that are fun and engaging for customers. Society changed in the 1980s and the Internet became a force of nature, no longer allowing companies to simply be reactive. McDonalds got strategic with its CSR efforts and created governance bodies and structured processes to help identify, manage and progress on a variety of social and environmental issues. Sustainability isnt an initiative CSR is not a program, initiative or function, but a mindset that is incorporated into every aspect of business planning and operations. If you live and put your values into practice every day, you will end up being a sustainable organization. CSR starts at the top CSR has to be driven by the top boss and senior management.Otherwise, CSR is peripheral and subject to measures of convenience. Management needs to integrate, allocate the necessary resources, and have it placed in strategic plans. Aim for the smart zone If you control your own strategies, most CSR efforts bring forth efficiencies, measures that use less resources, or bring a connection or relevance to consumers. So aim for the Smart Zone. Merely following the law and regulations will merely make you a follower. The sweet spot is staying ahead, but staying smart at the same time. To read Langerts blog in full see Sharing ten lessons learned, in the Executive Forum section of the Center website at www.corporatecitizenship.org.

Leading voices share their thoughts

he Center for Corporate Citizenships Executive Forum members represent a diverse community of global corporate citizens. They are a source of leadership, inspiration, knowledge, and expertise for others. Via our Execu-

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LYNNETTE MCINTIRE, UPS


Lynette McIntire, UPS director of corporate reputation management, offers advice on harnessing the energy and influence of employees and converting them into sustainability evangelists. She notes that neglecting employees is a reputational risk. Every day they have access to your customers either delivering or undermining the messages that you have so carefully constructed, McIntire says. They influence the opinions of their neighbors and family much more powerfully than the traditional communications channels we target with resources. They are the truth tellers about how closely your company is really embracing corporate values. McIntire identifies four essential elements for engaging with employees: Culture The values and expectations of a corporation must be institutionalized. On Day One new employees should be introduced to company values around integrity, personal responsibility, community service, environmental stewardship, and customer service. Authenticity No matter how frequently and vehemently a company communicates its principles, employees wont believe them if they arent authentic. Credibility This means taking a measured and quantifiable approach to sustainability at a time when critics and supporters judge companies based on a set methodology. Positive scores and awards can instill pride within the organization. Activation Communications can support employee education and support but they are most likely to talk positively about sustainability efforts when they personally are involved. To read McIntires blog in full see The reputational threat that just might be under your nose, in the Executive Forum section of the Center website at www.corporatecitizenship.org.

DAN BROSS, MICROSOFT


Daniel Bross, senior director, Corporate Citizenship, Microsoft, shares his observations on the power that collaboration and partnerships can harness in todays connected world. He remarks that early in 2011, technology played a critical role in political and social changes brought to the Middle East and North Africa as the Internet allowed individuals to freely express their views. Bross notes this Internet freedom was advanced through the cross-sector collaboration and partnerships of the Global Network Initiative. Dedicated to advancing Internet freedom, the GNI involved collaboration by Microsoft, Yahoo and Google, human rights organizations, academics and socially responsible investors, to coincide with the 60th anniversary of the Universal Declaration of Human rights in 2008. Activities across the Middle East and North Africa show us that when individuals are free to express their views, civic engagement increases, governments are held accountable, societies are enriched and individuals are given opportunities to realize their full potential, Bross wrote. He cites the earthquake and tsunami in Japan as another instance when collaboration and partnerships made possible a global response that no single government, nonprofit or corporation could have delivered. Even as the full scope of the catastrophe was unfolding, partnerships were formed, teams were assembled and individuals around the world responded. The interconnected world in which we live demands an interconnected approach an approach based on collaboration and partnership, Bross stresses. After all, isnt that what citizenship is all about meeting the duties and responsibilities that come with being a member of a community? To read Brosss blog in full see No challenge too tough when collaboration plugs into partnerships, in the Executive Forum section of the Center website at www.corporatecitizenship.org.

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RICHARD STEVENS, BOEING


Richards Stevens, senior vice president, Human Resources and Administration, and Anne Roosevelt, vice president, Global Corporate Citizenship, explain how Boeing is investing in the future of the company and global communities by supporting hands-on, experiential and innovative learning programs. Like many of our industry peers, they point out, our competitiveness relies not only on our access to a robust, highly-skilled work force educated in science, technology, engineering and mathematics (STEM) but also that they enter the work force prepared with problem-solving, team work and collaborative skills needed for success. Boeing complements its financial support with powerful grass-roots, skills-based volunteering programs. Stephens and Roosevelt describe how Boeings relationship with FIRST (For Inspiration and Recognition of Science and Technology) Robotics Builda-Plane Challenge in the U.K. builds on an ongoing commitment by employees to share talents and skills to inspire the engineers and scientists of tomorrow. In China, Boeing volunteers participate in Soaring with Your Dreams, a technology and engineering-oriented program that inspires teachers and elementary school students about the science of aviation through designing, building and flying a model airplane from scratch. The experiential learning approaches offered in these programs, Stephens and Roosevelt note, also build important life skills such as teaming, critical thinking, project management, sportsmanship and leadership. These programs help students apply key concepts by demonstrating what they learn through real-life projects, they say. The programs also ensure students will have the ability to apply technical knowledge to creative solutions. Experiences are what is required to grow an educated and engaged global work force suited for the challenges of the 21st century. To read Stevens blog in full see Investing in the future, in the Executive Forum section of the Center website at www.corporatecitizenship.org.

TONY HEREDIA, TARGET


Tony Heredia, vice president, Compliance, for Target proposes four new rules for corporate responsibility in the face of todays hyper transparency that requires adding a defensive element to corporate citizenship strategies. We now live in the age where a single, misplaced Tweet has the potential to set off an incredibly destructive chain of events a chain of events that can vanquish any organizations hard-earned name and reputation, Heredia observes. Assume nothing is confidential Today, confidentiality cannot be taken for granted because, with every technology advance promising security and confidentiality, there have been equal advances in covert surveillance and electronic intrusion. Find your halos When an organization establishes a long history of positive contributions it creates a reputation of goodwill one that may or may not be true upon inspection and that can pose challenges with one misstep or misinterpreted business practice. Make a list, evaluate their risk, decide how to handle them, and do it soon. Discover your external stressors These are the unintended, negatively perceived impacts that result from doing business. Dig into your business model and identify the burdens you may place on others and figure out how to minimize or eliminate them or identify ways you can make up for them. Know your reputation Right or wrong, a good or bad reputation will play a role in any organizations ability to do business. Learning an organizations true reputation may require confronting uncomfortable issues and asking tough questions, but it reveals what influence reputation will have when trouble arises down the road. To read Heredias blog in full see Four new rules to corporate responsibility, in the Executive Forum section of the Center website at www.corporatecitizenship.org. n

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Social media open doors for corporate citizenship

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hen TELUS Corporation began its Go Pink Facebook campaign in Sep-

tember 2010, the company didnt know what to expect. The Canadian telecommunications company, which has invested more than $15 million in helping charities find a cure for cancer, created a fun app that allowed users to turn their Facebook profile photo pink and help fight breast cancer. For every profile picture pinkified, TELUS pledged to make a $1 donation to Canadian health organizations for the purchase of digital mammography machines for detection of breast cancer.

Not knowing how many people would participate, TELUS set aside $50,000 for the campaign then waited to see what would happen. It didnt have to wait very long. Within one day 50,000 people had pinkified their profiles. TELUS quickly increased the pledge to $100,000, but that was gone by the end of day two. When the online dust finally cleared, 817,000 people worldwide had responded to the campaign, making TELUS one of the most popular Canadian brands on Facebook at the time. The lesson? When it comes to the intersection of corporate citizenship and social media, companies are heading into uncharted territory. Of course, much of the social media landscape is still largely uncharted, but maps are being drawn and new detail being added every day.
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According to Burson-Marsteller, 89 percent of European and U.S. companies now use social media, including Twitter, Facebook, YouTube, corporate blogs and local and language-specific social networks. Twenty-five percent of companies are using all four platforms. Companies use these platforms not only to promote their products and services, but to listen to their customers, tell their corporate citizenship stories, engage with their employees, raise money for the causes they support, and to get people to engage with a wide

Cause marketing and crowdsourcing


TELUSs Go Pink Facebook campaign is a slight variation on cause marketing, which traditionally involves companies pledging to donate a portion of each product sale price to a particular cause. Another type of online cause marketing campaign is General Mills Join My Village, a highly successful click-to-commit initiative. The General Mills Foundation, in conjunction with CARE, created Join My Village in late 2009 to provide education and opportunity to women and girls living in some of the worlds most dire conditions in the south-

From crowdsourcing to fund raising to employee and customer engagement, companies are learning that social media is a powerful corporate citizenship tool.

Tellus Go Pink campaign on Facebook engaged more than 800,000 people in helping to fight breast cancer. range of causes. From crowdsourcing to fund raising to employee and customer engagement, companies are learning that social media is a powerful corporate citizenship tool. In a recent survey by Weber Shandwick, 72 percent of executives said social media has been used to communicate about their corporate citizenship efforts and 59 percent said it has a positive impact on the quality of their communications with consumers. From the executives point of view, the primary values of using social media tools are that they create opportunities for companies to reach broad and diverse audiences, allow companies to connect directly with consumers in lowcost efficient ways, and enable companies to engage specific constituencies with greater ease. Facebook was cited as the most valuable social tool for these purposes, followed by blogs, LinkedIn, Twitter and FourSquare or other location-based services. east African nation of Malawi. General Mills launched a Facebook page with the original intent of releasing up to $500,000 in funding. Visitors to the page could instantly activate a $1 contribution from General Mills by clicking like at the top of the page. More than 6,500 members did so during the first year of the program, and the initial goal of $500,000 was exceeded. The second year of Join My Village brought dramatic funding and programming expansion. General Mills committed to donate up to $750,000 and Merck joined the partnership in early 2011, bringing the total of corporate and individually influenced donations to more than $1 million. The online campaign also added some new features to increase consumer and employee engagement while driving additional funding. Visitors to the site can take simple online actions (watch videos, read blog posts, and

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General Mills Join My Village initiative is expected to raise more than $2 million by the end of 2011 to support opportunities for women and girls in Malawi.

more) and in less than 60 seconds release dollars from General Mills that go toward CAREs work in Malawi. By the end of 2011, Join My Village members and partnering companies are anticipated to have contributed more than $2 million to send girls to school, build homes for teachers and help women start businesses to support their families and communities. At the same time, Join My Village will have helped hundreds of thousands of socially conscious people find a way to personally make a difference in the sometimes impersonal, overwhelming issue of global poverty. And it all is happening through the power of online communitybuilding, one click at a time. Go Pink and Join My Village both utilize Facebook as the foundation of their campaigns. In 2007 Facebook made it easier to create such alliances when it launched its Causes.com platform, making it one of the worlds largest online destinations where individuals come together to engage in philanthropy and activism. Using Facebook tools, more than 140 million registered Facebook users can join communities, or causes, to learn about issues, share information with their friends, and donate to their favorite nonprofits. People want to be engaged in the act of giving, they want to feel a connection, says Joe Green, co-founder and president of Causes. Facebook helps because it provides social validation a public identity that has a real name, real information, from where they went to school to pictures of the family. Facebook Causes lets you use that validation to do good work. Green adds that Facebook Causes is the giving marketplace, where were trying to move from a siloed world of giving, where everyone is on a bunch of mailing lists, into a marketplace thats centered around the

individual giver. And where the giver is being presented with interesting opportunities to take action, either via their friends, or via one of the 600,000 Cause communities they might be in. Crowdsourcing asking customers to provide ideas and help in decision-making on how to tackle issues and achieve goals is another fairly new trend tying together corporate citizenship and social media. In the same Weber Shandwick survey, 44 percent of companies reported they used crowdsourcing for help with social issues, and an overwhelming majority found it valuable to the organizations pro-social or corporate citizenship efforts. It surfaces new perspectives and diverse opinions, builds engagement and relationships with key audiences, invites clients and customers from nontraditional sources to contribute ideas and opinions, and brings new energy into the process of generating ideas and content.

Engaging online with employees and customers


Companies are using social media for many other reasons beyond philanthropy and are finding it a natural fit for engaging with employees and customers. Best Buy is another great example of a company using social media across the board, from the CEO to the sales force. It starts at the top with CEO Brian Dunn, who uses Twitter and Facebook to connect directly with customers and employees, watch trends and keep on top of the news. Brian really understands the importance of reputation, of having a clear story, and about being a voice for not only the shareholder, but a voice for the media, for the employees, for the stakeholders, says Kelly Groehler, Best Buys senior manager of public relations.

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Many companies struggle when it comes to creating a social media policy for their employees. Should they let employees have free rein and write whatever they want? Should they have a strict policy against all use of social media? According to Groehler, many of Best Buys 180,000 employees are under the age of 30, and the majority is already using social media. Rather than trying to prevent them from doing so in the companys name or trying to control their message, Best Buy empowers them to use that communication channel to be a voice for the company and arms them with good information to be of service to customers. One of the most positive results of this policy is Best Buys Twitter help force, known as Twelpforce, which has been in place for more than a year. Twelpforce allows customers to ask Best Buy employees questions about technology without having to visit a store or even the BestBuy. com website. Any Best Buy employee can sign up to join the Twelpforce using a personal Twitter account. Whenever an employee adds the hashtag #twelpforce, the tweet is added to the Twelpforce feed. To ensure employee accountability and allow customers to build a relationship with a specific employee, each tweet posted on Twelpforce includes a signature at the end indicating the personal Twitter account of the employee. More than 2,500 employees have signed up to become part of the Twelpforce, and the account has 35,000 followers. Not every company depends on social media to engage with employees and some have found alternative means to connect with employees who are not online or work off site. At UPS, for example, a good percentage of the companys 400,000 employees are drivers and package handlers who dont have online access. One way they keep drivers in the corporate citizenship loop is to put short environmental messages on the handheld devices they carry to obtain a customers signature when delivering a package. UPS strategy for communicating with employees focuses on four tactics: Institutionalizing values and ritualizing engagement using storytelling as part of mandated daily communication with all employees

Frequent and ubiquitous communications using a wide variety of channels Activation of company values through employee giving programs and volunteerism (1.3 million volunteer hours in 2010) Public recognition through programs such as the annual James E. Casey Community Service Award.

UPS keeps drivers in the corporate citizenship loop by putting short environmental messages on the handheld devices they carry to obtain a customers signature.

Possibilities continue to grow


For companies with the right technology and the support of a creative technology team, the skys the limit. At Microsoft theyve been working on a service called Volunteer Live, a pilot project between Microsoft and the Microsoft Alumni Foundation, designed to match skilled volunteers to opportunities and provide real-time data to companies on their employees volunteer activities. Volunteer Live uses technologies such as Bing Maps to highlight volunteer opportunities and event locations and uses a Windows Phone 7 application to enable instant connections, alerts, and mobility. Volunteer Live enables individuals to set their profiles so volunteer opportunities are sent to them based on preferences such as type of nonprofit, areas of interest, skills, training, or location. Nonprofits will connect to an interface that allows them to electronically create job descriptions and manage opportunities posted online as well as connect with interested volunteer candidates.

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The more companies that adopt social media as a corporate citizenship tool, the more innovative ideas will develop. Every additional opportunity for connections with customers and employees will help companies listen and learn more effectively.
The system also enables nonprofits to connect this information to their donor database to get a 360-degree view of donors and volunteers. Volunteer Live makes possible connections to corporate dollars for doers

programs and tracking of program rules so nonprofits can quickly see the status of eligible hours, approve volunteer time, and track grants to volunteers. Microsoft plans to partner with industry leaders to make this technology widely available and to enable development of third-party solutions such as mobile phone applications that connect multi-lingual volunteers to volunteer opportunities in real time. Not every social media initiative will be as extensive as Microsofts Volunteer Live. But the more companies that adopt social media as a corporate citizenship tool, the more innovative ideas will develop. And every additional opportunity for connections with customers and employees will help companies listen and learn more effectively. n

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2012 international corporate citizenship conference sponsors march 25 - 27


Convening Sponsor

Plenary Sponsors

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Lead and Learn Sessions

Technology Bar

Opening and Closing Receptions

Leaders

Sponsorship as of Novemeber 15, 2011

Partners Coffee

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Lead and Learn

Lessons from leaders for leaders

ways corporate citizenship professionals make connections. Those connections happen inside the company across departments and with employees, outside the company through involvement communities, and increasingly via technology with stakeholders of every stripe.

he 2011 International Corporate Citizenship Conference took a look at the multiple

During the conference, attendees once again had the opportunity to make important connections with each other and share the challenges and successes from their work. In that spirit, the Center for Corporate Citizenship instituted a new type of breakout session, the Lead and Learn sessions. Lead and Learn sessions were sponsored by Center member companies and crafted by practitioners to explore issues facing corporate citizenship leaders. They offered in-depth case studies on approaches to issues such as education, safety, health and wellness, and CSR strategy, complete with honest experiences and lessons learned. These sessions generated some great knowledge thats too good to contain inside the conference. So heres a look at each of the sessions and some of the lessons they offered.

Lead and Learn sessions like this one by FedEx gave conference attendees a look at companies best practices.

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Lead and Learn Travelers

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Travelers EDGE scholars from Central Connecticut State University, the University of Connecticut and Capital Community College in Hartford are recognized for earning degrees during a ceremony in May 2011.

Travelers gives students an EDGE

n its session, Giving Strategic Partnerships in Education an EDGE, Travelers shared how it has leveraged strategic partnerships, internally and externally, to foster college success and career readiness for underrepresented students. Marlene Ibsen, vice president of Community Relations at Travelers, explained that in 2007 the company took a hard look at the impact of its work in the community and decided that the most important investment it could make for its future and the future of communities would be in education. Through education we can help ensure a better prepared workforce, a more educated, engaged citizenry and hopefully a more educated consumer base for our insurance products, she said Ibsen pointed out EDGE (Empowering Dreams for Graduation & Employment) works with a small group of students to bring a full range of resources to them to increase their chances of completing a bachelors

degree rather than only being able to provide a small amount of assistance for hundreds of students. The resources from Travelers have been significant. Since 2007 funding for the Travelers EDGE program has exceeded $8.5 million and in keeping with its commitment to make education a priority issue, Travelers has funded more than $30 million in education overall since 2007. In 2010, more than 50 percent of Travelers charitable giving went to education. The EDGE program stems from a challenge by the Travelers corporate board of directors to think about a signature program that would be good for the company and good for the community. At the same time, Travelers was taking a fresh new approach to diversity and inclusion. The two ideas came together in the EDGE program, which builds a pipeline to college for students from underrepresented communities and helps them graduate from college while growing their awareness of careers in insurance and financial services.

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Lead and Learn Travelers

Internally, EDGE is a partnership between Human Resources and Community Relations that helps increase the talent pool, contributes to employee retention and development, and addresses diversity and inclusion goals. Externally, Travelers sought partners whose missions supported the goals of EDGE. Joelle Murchison Hayes, vice president of Enterprise Diversity & Inclusion at Travelers, explained that the search for partners began when they recognized that financial barriers werent the only obstacles to college. Partners at educational institutions contributed a deep understanding of the challenges students face such as caring for their families, or holding down a job that often constrain their academic choices. In seeking internal collaboration on EDGE, Community Relations offered some existing relationships but Travelers also looked to business units to identify what students needed to be successful and tapped HRs expertise in recruiting and retaining talent. HR also helped identify potential employee mentors. Hayes noted EDGE has returned benefits to employees who say they have grown from the experience. She added that EDGEs promise of diversity and inclusion adds multiple perspectives to Travelers talent pool to ensure the company has a workforce best equipped to look at the marketplace ahead and anticipate customer demands. In assessing existing nonprofit and university partnerships, Travelers chose geographic locations where the employee base was strong. With this in mind, Travelers leveraged existing relationships in St. Paul, Baltimore and Hartford. Partners were also selected because they already supported the mission of EDGE. We werent asking organizations to create programs that would fit into EDGE, Hayes said. We sought organizations that had programs that fell within the guidelines of EDGE. These partners include nonprofit Admission Possible, which uses the AmeriCorps national service model to provide low-income students with test preparation, college application assistance, financial aid advice and guidance and college transition support. Travelers has also partnered with the University of Minnesotas Carlson School of Management to develop a multi-tiered approach to serving talented students from diverse backgrounds with summer programs, scholarships and other initiatives.
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Travelers uses the following criteria in its partner seletion process: Does the organizations program serve an underrepresented population? Does the organization have opportunities to partner with existing high quality fouryear college access programs, local school districts, and community-based programs? Are potential partners willing and able to provide focused support to programs that encourage degree completion? Does the management/leadership team of the nonprofit demonstrate a commitment to achieving EDGE objectives? Our goal is to ensure at all times that were staying true to the EDGE mission and goals are, stressed Hayes. To assess this commitment, each year Travelers invites partners to share challenges, celebrate successes and talk about the larger national issue of college completion. Statistics from EDGE speak volumes on its success: 100 percent of Travelers EDGE community college scholars have earned associates degrees within 3 years. Nationally, only 31 percent of students from similar populations go on to complete either an associates or a bachelors degree in six years. 100 percent of EDGE community college graduates who have obtained associates degrees have enrolled in bachelors degree programs, compared to 26 percent of those who sought an associates degree nationally. 71 percent of graduating interns have become permanent hires and 100 percent of graduating scholars receiving offers accepted employment with Travelers. Looking back on Travelers experience with the EDGE program, Hayes offered advice to companies looking to establish similar strategic partnerships: Build on existing relationships where possible. Ensure a safe environment for frank discussion. Engage all constituents regularly. Clearly define company goals early in the process. Set joint objectives with specific measurements of success among all partners.

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Lead and Learn FedEx

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Joe Perrone, a Manhattan FedEx sales manager, explains truck visibility issues to a youngster getting a drivers view.

FedEx walks the safety talk


fic fatalities are a global crisis. Worldwide 1.3 million people die in road traffic collisions annually and more than 90 percent of the worlds road fatalities occur in developing countries. At the current rate, road fatalities are projected to rise to the fifth-leading cause of death by 2030. In addition to aligning with a core competency, several other factors were considered by FedEx when selecting a nonprofit to develop a signature program. It sought a program that would have: Measurable impacts True measurement is about outcomes not just output. Its not just how many kids are reached by a program; its what happened that counts. A child focus Scalable and sustainabile growth FedEx is a global company operating in 220 countries and territories. It is important to us to have a program that can have a global platform, said OConnor. Strategic alliances

edEx and Safe Kids: How to Birth, Nurture and Grow a Global Signature CSR Program offered a look, from concept to global implementation, at insights and best practices from FedEx on how to conceive, develop, market, grow and sustain a world-class signature CSR program. Beginning in 2000, FedEx has teamed up with Safe Kids on a mission to teach safe behaviors to motorists and child pedestrians and create safer, more walkable communities. But it took a year of planning and research before the first Walk This Way programs were launched in Memphis, Indianapolis and Washington D.C. in spring of 2000. We got to take a blank slate, if you will, to start a program from scratch, found the right organization so we could come up with the plan that was suitable to both of us, and then by approaching that plan with gusto on both parts we came up with a great final product, explained Shane OConnor, FedEx program adviser. With 80,000 vehicles on roads worldwide, safety is a core competency for FedEx at a time when road traf-

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Lead and Learn FedEx

Executive and team member engagement Does it resonate with the CEO and can it accommodate the volunteer component of what the company wants to do?

Safe Kids Worldwideisa global network of organizations with a mission of preventing unintentional childhood injury. Safe Kids Worldwide was founded in 1987 as the National SAFE KIDS Campaign by Childrens National Medical Center with support from Johnson & Johnson. OConnor cited a quote from FedEx Express CEO and President David Bronczek that makes plain why Safe Kids is a perfect fit for FedEx: There is nothing more fearful for a FedEx courier than a child darting out in front of your truck.

Safe Kids is attractive as a nonprofit alliance on many levels: 1. Its safety focus on children aligned with a FedEx core competency and the FedEx desire that the program focus on children. 2. Safe Kids has a strong community connection. Many of the Safe Kids coalitions are housed within childrens hospitals. 3. A signature program between FedEx and Safe Kids combined two strong brands working to make communities a better place. Safe Kids was Selected by the U.N. and the World Health Organization to collaborate on their initiative, 2011-2020 A Decade of Action for Road Safety. 4. The emphasis on child pedestrians resonated with FedEx team members who are on the roads each and every day and ensured that the signature program would be relevant to FedExs diverse workforce. OConnor and FedEx program adviser Julia Chicoskie detailed the five objectives of the FedEx signature program.

Awareness
This objective was threefold. First is the issue of relevance to the company and letting the public know about child pedestrian safety as a pressing concern. Awareness is also about making it known the alliance NGO is an expert in their field, which gives credibility to the work FedEx is doing on the initiative. Third is public awareness that FedEx is supporting good causes, which is important in driving reputation. FedEx employed multiple channels to reach its target audiences. These included news releases, print ads, website presence, corporate blogs and a variety of social media tools.

Education
The important audiences for education in the Walk This Way program are children, parents, drivers and employees. The educational objective centers on two goals: Change unsafe behaviors in children through education on how to walk safely; Change unsafe behaviors in motorists through awareness and education on how to drive safely.

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Volunteerism
Chicoskie noted that volunteerism is key to all philanthropic programs at FedEx. We wanted our employees engaged on a hands-on basis, she said. The volunteer effort included drivers spending time with kids to make them understand visibility issues with trucks by giving them a chance to climb into a truck and sit in a drivers seat. Executive engagement was just as important for FedEx. Executive support ensures the program receives adequate resources, Chicoskie said. It also is powerful for employees to see executives involved and allows executives to speak with more passion about the program, she added.

Environmental change
FedEx and Safe Kids also strived to create safer environments through environmental risk assessments that resulted in infrastructure improvements such as crosswalks, signs, sidewalks and countdown timers. This involved working with local parent/teacher groups, highway departments and police departments. OConnor pointed out that these efforts and others related to the Walk This Way program paid dividends in closer relationships with authorities in communities where FedEx operates every day.

Influencing legislation
In China, there was not a concept of a school zone, commented Chicoskie. It didnt exist before Safe Kids and FedEx came in with the Walk This Way program in 2005 and worked with the local city governments and implemented some school zones. In Brazil, Safe Kids worked with the Transportation Ministry and influenced passage of a law in 2010 requiring child seats for infants riding in a vehicle. Chicoskie and OConnor cited a multidimensional approach to its initiative with Safe Kids that was important to its success. One important aspect is the research done every year since the program began to ensure it remains relevant. Research looked at causes and other factors surrounding pedestrian accidents, including a 2008 study on distracted driving. Global growth is another important part of the approach to the initiative. FedEx wants the program to resonate with diverse audiences and connect with strategies for business growth. If we can grow our business

by being known as a neighbor of choice in these markets well get more resources to do more in those markets, remarked OConnor. After 11 years, Safe Kids Walk This Way operates in nine countries. In talking about the global aspect of FedExs work with Safe Kids, OConnor stressed: When you do a global program go there. Dont just do it on the conference calls and the emails. He said a trip to Sao Paulo, Brazil, was eye opening. It wasnt until he saw traffic that turned a 5 mile drive into a two-hour trip that he understood why few employees volunteered for an afternoon walking activity. OConnor and Chicoskie added that a global signature program must be customized not only to reach diverse audiences within a particular community but also to be sensitive to the culture and customs of the country in which it operates. The Safe Kids Walk This Way program artwork maintains its look and feel while being customized at a community and country level. The ability to measure impact, not just output, was important in selection of Safe Kids, and the program is delivering on that count. Safe Kids conducts postintervention research to determine whether an intervention had a positive effect. In one case, studies were conducted before and after a sign reading Distractions Kill...Just Drive were posted in a school zones. Results indicate the signs contributed to a decrease in distracted driving zones by 18 percent over the course of the school year. The FedEx team offered a critical piece of advice to companies looking to nurture and grow a global signature CSR program. They emphasized it is critical to secure sufficient resources to manage and promote the relationship, including staff time (particular with a volunteer component) and funding. When planning for the total program budget, remember to request operational dollars for program use along with the contribution that will go directly to the nonprofit.

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Lead and Learn Northern Trust

In 2009 Northern Trust set out to develop a comprehensive global CSR strategy for its operations around the world.

Northern Trusts global journey

orthern Trusts CSR team shared their story of creating, implementing and communicating its comprehensive global CSR strategy in its session Strategy, Structure and Social Innovation: Lessons Learned from Northern Trusts CSR Journey. Connie Lindsey, executive vice president, CSR head, and Shaelyn Otikor, vice president, senior CSR project manager, told how Northern Trust approached development of a CSR structure and strategy beginning in 2009. Northern Trust is a leading provider of investment management, asset and fund administration, fiduciary and banking solutions for corporations, institutions and affluent individuals worldwide. Lindsey explained why Northern Trust set out on its journey to a comprehensive CSR strategy. As we move beyond compliance to social innovation, she said, as we tie social corporate responsibility practices into the strategic direction of the firm, it allows us to have the kind of impact we need while continuing to support

the programs and initiatives that are so key to who we are as a corporate citizen. Recalling when CEO Rick Waddell asked her to be head of corporate social responsibility, Lindsey said her head filled with myriad concepts ranging from philanthropy and environmental work, to socially responsible investing and engaging with stakeholders. It left her wondering how Northern Trust could take these very important, intriguing parts of the business and put them in some context that would allow us to deliver a message to our key stakeholders and then to measure the efficacy of the work that we were doing.

Structure
The first step, Lindsey said, was to consider the CSR vision: What is CSR and what do we want it to be at Northern Trust? She then sought to determine how many partners would be needed to provide governance for a CSR program.

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The structure starts at the top with the CSR team of Lindsey and Otikor reporting to the CEO. Members of the management team, presidents of each Northern Trust business unit, have strategic plans for which they are accountable, including specific CSR-related goals and initiatives. A global CSR Task Group of 24 employees has specific responsibilities for providing input. This structure and governance seeks to get the right level of attention and accountability around CSR. Lindsey said the CSR journey at Northern Trust has been a learning process and that while philanthropy is not new to the company, whats new is a structure that allows us to say here are the environmental initiatives and practices that we deploy and why does it matter to that key stakeholder; why would a Northern Trust client or partner really need to understand a lot better about the work that were doing.

if they mattered to Northern Trusts key stakeholders: clients, employees, the community, regulators and shareholders. Otikor surveyed all 16 international offices to identify what initiatives were already in place. She found 120. The team then looked for what to eliminate or aggregate into initiatives that were adding to the vision and the impact of the business. Brand awareness: Lindsey said this filter identifies what is it that we want external individuals to know about the Northern Trust and how we can get this work done for reputation enhancement. Supporting corporate strategy and goals: This assesses visions for CSR against the big picture for Northern Trust and bottom line impact. For Lindsey this means asking questions like: Where are we as a firm? Where do we want to grow?

Strategy
With a structure in place, the next step was strategy. Each business unit at Northern Trust has someone in charge of strategy and the CSR team worked closely with them to understand the business value for each unit. Our opportunity is to ensure that we are engaging and tuning into station WIFM, which is Whats in It For Me, for each of these various individuals, remarked Lindsey. The CSR team presented a strategic plan to the Board of Directors strategy committee. Lindsey said corporate social responsibility at Northern Trust is seen as another strategic imperative that is part of the business and that must be monitored, measured and integrated into the very fabric of what we are doing. Northern Trust put together a strategic framework around the categories of environmental, social and governance issues. Each aspect flows into business strategy. All of the aspects of ESG need to have a natural tie into the business of these businesses, Lindsey said. For example, this means Operations and Technology looks at energy efficiency and costs while the Northern Trust Global Investments arm has $18 billion in socially screened investments. Northern Trust then applied this three-part strategy filter to assess existing work and visions for the future. Stakeholder engagement: The CSR Task Group analyzed and evaluated initiatives to determine

Engagement and Execution


We all know that without the proper execution its a wish a hope and a dream, Lindsey said. An important part of effective execution for Northern Trust is engaging with employees in ways that matter to them, allow them to participate in the process, and have necessary impact. Northern Trust tapped into employee opinions via its business resource councils, created online training about CSR and communicated through various other channels about their value to the business. The outcome of that is staff retention, partner (employee) engagement and employee satisfaction, Lindsey said.

The road ahead


Northern Trust has taken big steps but there are miles to go. Lindsey noted work must be done around measurement to demonstrate what CSR can accomplish. Looking at what lies ahead for Northern Trust, or any other company, Lindsey asked, How do we elevate the discussion from compliance or writing checks to good worthy causes to: Here is why our CEO cares about this work. Here is why our board of directors cares about this work. Here is why a business unit president would say, Im going to entertain a discussion or meeting with the CSR team because they can help me grow my bottom line. They can help me create or develop a product that a key stakeholder would care about. This is the space where I think there is still a lot of opportunity for work to be done.
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Lead and Learn Humana

Humana takes healthy steps

umanas Lead and Learn session, Building healthy bodies and healthy attitudes, looked at why and how companies are using innovative health and wellness programs to engage employees, cut health care costs and reduce absenteeism. Paul Gerrard, then director of corporate affairs and chairman of the Corporate Social Responsibility Council at Humana, framed the discussion by pointing out that health and wellness lie outside the conventional health care delivery system. The health care system is about treating sickness, he said. Its not necessarily structured right now to help people be well and stay well. Noting that wellness is very much tied up in behavior, Gerrard pointed to three behaviors smoking, lack of exercise, and poor diet that lead to four critical conditions: lung disease, heart disease, cancers and hypertension. Those four conditions, he said, cause 50 percent of the preventable deaths in America today. Gerrard explained that in approaching issues of wellness today there have been explorations of health and well-being beyond physical health. Gallup Consulting identified five distinct statistical dimensions or interconnected elements of health and wellbeing: Career well-being How you occupy your time and liking what you do each day Social well-being Having strong relationships and love in your life Financial well-being Effectively managing economic life to reduce stress and increase security Physical well-being Good health and energy to get things done every day Community well-being Sense of engagement and involvement you have with the area where you live So what does this have to do with business and what role should we as CSR professionals play in ensuring that our companies employees -- after all the talent that creates and drives value in most of our organizations -- are mentally, physically and emotionally healthy, Gerrard asked. Each persons well-being is definitely critical in this day and age to achieving an organizations goals and fulfilling its mission.

Many companies support commutes by bicycle to connect healthy bodies with a healthy planet. When workers are absent or cant give their best effort because they dont feel well it erodes productivity, he said, adding that poor mental and physical health cost companies millions. Gerrard cited a Gallup estimate that for every 1,000 employees, between those who are thriving in the various dimensions of wellbeing and those who are suffering, the cost differential to companies is $1.8 million annually. Employees who take care of themselves save companies money. Gerrard noted statistics showing that companies dependent on healthy employees are not viewed by those employees as helping. Only 8 percent of Ameri-

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can workers say they have higher overall well-being because of their employer and the vast majority believe their job is a detriment to their overall well-being. Human resources consultant Elona DeGooyer spoke of how Humana is trying to change that situation with a view to helping people achieve lifelong well-being. That involves helping them make better choices that will improve their lives and save money at a time when health care costs are soaring. This means everything from health assessments and informational campaigns, to health coaching, tobacco cessation programs, subsidies for healthy food and fitness centers. You can only manage costs to some degree and then you really have to look at the person and how can you help them become as well as they possibly can be, DeGooyer said. Humana, she explained, views well being as living happily with a balanced sense of purpose, belonging, security, and health. Those buckets, she said, capture the traditional things people expect in wellness but also go further to make the idea stick. Its getting people to stay involved, shd said. Because you dont get well and then youre done and then you stay well for the rest of your life. Its a journey. Its not a destination. Ken Glover, director of Health & Wellness and Ergonomics for CSX Transportation, shared the challenges the railroad company is facing with its 30,000 employees. While 66 percent of the U.S. population is overweight or obese, 84 percent of CSX workers fall into those categories, putting them at higher risk for health issues. Glover noted that 5 percent of CSX employees contribute to 30 percent of the companys health care costs and 10 percent contribute to 43 percent. Among CSX managers, Glover said, high blood pressure, high cholesterol, diabetes and heart disease contribute to 56 percent of medical costs. With health coaching and tests akin to the presidential fitness challenge in schools, CSX seeks to help employees with the highest risks and prevent others from becoming high risk. Weve put people in front of people, he said. Humana and CSX are not alone in their efforts. LuAnn Heinen, vice president of the National Business Group on Health, works with 66 of the Fortune 100 companies who provide health coverage to 55 million workers and families. She said people might be surprised at the resources going into employee health

management. Heinen said some trends in workforce wellness might be amplified and made more significant with involvement of CSR professionals. One such trend is growth in the scope, impact and visibility of wellness programs. Youve got companies putting a lot of marketing clout and branding and C-suite attention increasingly to these programs, Heinen said. She noted efforts are led by very large employers, 80 percent of which have pretty significant programs while less than 10 percent of all employers do. Heinen said the Obama administration is encouraging large companies to share expertise on wellness programs with other business and the community. Another trend is better metrics to track participation, outcomes and savings. Regarding cost savings, Heinen commented that research has established the return on investment in wellness programs is on the order of 3 to 1. Gerrard commented that there are opportunities for wellness programs to align with other CSR efforts around sustainable resources and the environment. He cited farmers markets held at company facilities and support of bicycling and commutes by bicycle as ways to connect healthy bodies with a healthy planet. DeGooyer weighed in on the frustration of companies that invest in wellness programs but see employees refuse to participate while continuing behaviors that drive up company costs associated with their health. She said employees with chronic conditions who choose not to take advantage of programs can face higher out of pocket health expenses. And she countered arguments that it is unfair. How is it picking on you to help you use a program that can save you money and improve your health and the program doesnt cost you any money? DeGooyer asked. The panelists agreed that any real change in attitudes on wellness will require wider cultural changes and shouldnt rest on the shoulders of companies. Glover pointed to education as a key starting point. If you cant get your employee making a better decision, if you cant get their spouse making a better decision, you know their childs not making a better decision so we just perpetuate the problem. Heinen concurred, noting that changing social norms in a workplace about tobacco use or exercise or diet can be viral. In fact, she said, healthy behavior is contagious. n

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APS hits for power at Chase Field


Solar pavilion generates energy, shade at Phoenix ballpark

hile baseball fans in many locales head to the ballpark with hopes for good weather, in Phoenix they arrive with the expectation. Abundant sunshine is pretty much a given for Arizona Diamondbacks fans when they go to Chase Field. This past season Phoenix fans were greeted by a new feature outside the downtown ballpark that takes advantage of the ever-present demonstration of the suns power while shielding them from its sometimes overwhelming rays. In a partnership between APS, the Diamondbacks and the Maricopa County Stadium District, a 17,280-square-foot solar pavilion was built above the plaza area near Chase Fields western entrances and ticket booths. Designed to match the Diamondbacks colors, the structure has red-and-beige panels interspersed with black solar panels. The pavilion provides fans with extra summer shade as they wait to enter the park for a game. Its 336 solar panels can generate 101,000 kilowatt-hours of electricity in a year. Thats about enough to power eight to 10 Phoenix homes for a year, said APS Dan Wool. And while the pavilion is generating power, its not generating carbon emissions. Wool explained that the amount of carbon emissions the clean solar energy from the system displaces is the equivalent of planting 30,000 trees over the next 10 years. Paid for by APS, the $1 million solar pavilion has a 20-year life span. APS is using the solar facility as a technical demonstration project that includes electric vehicle charging stations and tests a battery storage system.In the second phase of the project, Wool said, fans will be able to power up their cars at the stations while they watch the ballgame. For the 2011 season the pavilion featured educational exhibits showcasing elements of sustainable living such as renewable energy, energy efficiency, electric vehicles and recycling. It also provided APS an opportunity to inform customers

about its energy conservation programs, such as rebates for appliances and energy-efficient homes. Behind the scenes, this will be a working laboratory, said APS President Don Robinson. We will study whats possible with urban solar arrays and how we can power electric vehicles directly from the sun. APS and the Diamondbacks have received an overwhelmingly positive response to the solar pavilion. It has improved the fan experience at the stadium while adding more green energy onto our electric system, Wool said. The location of the solar pavilion on the west side of Chase Field provides welcome shade at a popular meeting spot for fans meeting friends before a game. Wool saw firsthand just how fans took advantage of the pavilions cover while speaking to the media about it before the July 12 MLB All-Star Game at Chase. It was more than 100 degrees outside and we noticed the fans waiting to get in literally had their toes lined up where the shade began to escape the heat, recalled Wool. The Chase Field solar pavilion is just part of a commitment by APS to make Arizona the Solar Capital of the World. In another downtown Phoenix collaboration with a local sports team, APS recently completed putting solar panels on top of the parking structure of US Airways Center, home of the Phoenix Suns. APS also just celebrated putting 10 megawatts of solar panels on several buildings at Arizona State University. We are also helping school and local governments put solar panels on their buildings to help reduce their energy costs, Wool noted. These are smaller but very meaningful projects that have positive impact in the community. On a larger scale APS is committed to spending $500 million for its AZ Sun program, constructing 100 megawatts of solar power at six to eight plants around the state over the next few years. It goes without saying that with a big assist by APS, solar power in Arizona has a bright future. n

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We should occupy ourselves with a search for lasting solutions


By Katherine Smith
We have all been watching the OccupyWallStreet.org protests for a couple of months. The movement is an ostensibly leaderless group united by their characterization that they are the 99 percent that will no longer tolerate the greed and corruption of the 1 percent. A lot of this issue of the magazine is dedicated to the concept of listening. Agree or disagree with the occupiers. There is something there that we should all be hearing. The fact that this non-specific expression of a broad cultural zeitgeist of disaffection has drawn so many and held them for so long is significant. Members look motley (as anyone whos been camping for two months might) and in our image-conscious world, that can make the group easier for some to dismiss than it should be. Despite having a diverse set of complaints, the protest locations in all of the cities where the movement has taken hold are the symbolic centers of commerce in Boston, the Federal Reserve; at the epicenter of the movement, Wall Street, which is symbolic of if not synonymous with business in the U.S. We cannot rely on corporations alone to solve significant social and environmental problems, nor can we blame business for all of the problems that we face. Individual and corporate citizenship co-exist in the U.S., and one cannot substitute for the other. Both must be exercised in order for our system to work. As individuals, we must stop looking to institutions to solve our problems. Good corporate citizenship is necessary and should be expected of firms, but it typically and appropriately addresses the question, What kind of world do we want to do business in? At the Center, we talk about citizenship as a combination of rights, obligations, privileges, and responsibilities and we focus on corporations as the unit of analysis. In the U.S., there is cultural emphasis on the rights of individual people or entities to act freely, to protest, to compete, and to win status, resources, and power and to exercise privileges resulting from successful efforts. One thought that we might discern from the occupiers is that our cultural focus on the rights of individuals may be out of balance with ensuring that basic needs are met for a growing number of disaffected and increasingly disadvantaged people in this country. There are chances for corporations and individuals to find opportunities in the solution to this problem. They can demonstrate leadership and develop new models for business and productive employment of individuals at every level of our economy, much as corporations such as TaTa have done in India. We may have to follow strategies new to us, maybe even some developed in emerging economies. Firms that operate globally can help to cross-pollinate those ideas and opportunities. Many firms engage in good citizenship and contribute positively to our natural, civic, and social environments. Employees of corporations should support these initiatives and act as ambassadors for the good works that their employers can accomplish with, and beyond, profit-making. This employee involvement, however, should not be mistaken for personal civic engagement. The rhetoric of occupywallstreet.org may not represent my perspectives and values, but if I do not participate in trying to solve the problems that they protest, I deserve what I am served. Corporate citizenship does not replace personal individual action nor can it answer the question, What kind of world do I want to live in? As individual citizens, we must make sure that our institutions seek the outcomes that represent, as nearly as possible, the answer to the latter question. n
Photo by Rose Lincoln

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Get well-grounded in corporate citizenship

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st century business managers need to understand corporate citizenship if they are going to contribute to their companys success. Our management and leadership development programs from one-day seminars to weeklong academies provide the knowledge you need to take your company to the next level. Center for Corporate Citizenship programs combine the strengths of academic research and practical business experience to deliver learning that is immediately applicable to your work.

Our educational offerings include:


The Community Involvement Leadership Academy and the Corporate Citizenship Management Academy, both offered on the Chestnut Hill campus of Boston College and featuring instruction by faculty members from the Carroll School of Management 2-1/2-day open enrollment management development programs that bring professionals together outside the office for a chance to learn in a collaborative setting where they can share ideas and best practices. Participants who complete all five open enrollment courses receive a Certificate in Corporate Community Involvement Management On-site and custom training at your company and at your convenience. We can work with you to customize a program that focuses on your pain points and provides solutions.

Turn to Boston College for management development support to re-energize your corporate citizenship and community involvement efforts. Visit our website for a complete calendar of upcoming courses and programs.

www.bccorporatecitizenship.org/calendar

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

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