They Are Beginning Now – the Long-Awaited Corporate Disclosures on Ratio of CEO Ratio – CEO Pay-to-Median-of-Workforce Pay

by Hank Boerner – Chairman & Chief Strategist, G&A Institute

The big-deal and long-waited corporate announcements / disclosures are beginning in 1Q 2018. 

Way back when…after the 2008 financial crisis when the Dodd-Frank capital markets reform legislation was passed (in 2010)…one of the requirements was that public companies must develop a ratio and disclose this publicly: how much does the CEO earn, and what that is that compared to the median compensation of the employee workforce? (Half below/half above is the median level to be arrived in an analysis for public filing.)

This is the Ratio, CEO Pay-to-Median-Worker-Pay disclosures.

The Securities & Exchange Commission finally issued its guidance on all of this in September 2017 (companies and their trade associations had steadily pushed back on the 2010 disclosure mandate and the SEC struggled with the “how-to” rulemaking / or more “gentle” guidance, causing delays in applying the law).

So – today the CEO-Employee Pay Ratio is upon us – and the first important disclosures are coming out now – including the first filing for a S&P 100 firm.

Bloomberg Markets News reports that Honeywell International Inc’s filing shows that CEO Pay is 333 Times More Than Median Workers. CEO Darius Adamczyk’s pay package was $16.5 million in 2017; the median employee pay (for the company’s 130,000 workers) is $50,296.

The Honeywell CEO package for 2017 is 60% more than for the prior year (when he moved into the job).

Earlier this month Teva Pharmaceutical Industries disclosed a pay ratio of 302-to-1 ($19.4 million for the CEO, median worker $64,081).

The AFL-CIO projected a 347-to-1 ratio (CEO: $13.1 MM; workers, $37,000).

When the SEC guidance was firmed up in 2017, some market observers said this was a “local newspaper headline” and not something that serious investors would pay attention to.

The Los Angeles Times – both a regional newspaper and one with national reach and influence – now features this headline: “The First Official Report on CEO-Worker Pay Ratios Shows and Enormous 333-1 Gap at Honeywell”

LAT’s Pulitzer Prize-winning financial commentator Michael Hiltzik used words like “…obscene…raw figures…economic inequality…the 1%…telling…massively embarrassing..”

Sam Pizzigati, the prominent author and social commentator at the Washington DC think tank Economic Policy Institute, was quoted in the LA Times article:

“This is a confirmation of research done up to now,” Sam Pizzigati, a fellow at EPI, says of the Honeywell data. He expects some corporations to show much larger discrepancies. That could show up especially in the retail sector, where median earnings are likely to be well below the $50,000 level of Honeywell’s heavily professional workforce.

Walmart, for instance, says its average hourly pay for full-time workers was to reach $13.38, following a company-wide wage increase in 2016. That’s about $27,800. Its CEO, C. Douglas McMillon, was paid $22.4 million last year. That would create a ratio of about 805-to-1 based on hourly wages alone.

Bloomberg BusinessWeek writer Anders Melin published a piece in January – “Why Companies Fear Disclosing CEO-to-Workers Pay” — noting:

“U.S. companies must soon begin disclosing what many would rather keep secret: The ratio between the CEO’s compensation and the paycheck of the company’s median worker. The mandate was included in the 2010 Dodd-Frank Act to shed light on the growing income gap between executives and workers. Opponents say it’s only meant to embarrass executives and won’t be useful to investors. One critic called it an example of bigotry against the successful.”

And: The disclosures will provide a first-ever glimpse into how thousands of U.S. companies compensate their workers, plus a more accurate sense than ever before of the CEO-to-worker pay gap.

A year ago, Alex Edmans writing in The Harvard Business Review said “…the numbers are striking…the idea is that a high pay ratio is unfair…I strongly believe that executive pay should be reformed…[but] the pay ratio is a misleading statistic because CEOs and workers operate in very different markets…”

His commentary is at:
(He is a professor of finance at London Business School.)

Our new “G&A Institute’s To the Point!” management brief platform has background on the CEO-Worker Pay Ratio, published for guidance in September 2017 as the SEC published its guidance:

IT’S H-E-R-E NOW: SEC Guidance on CEO-Employee Pay Rule Clarified in Interpretive Guidance. Your Company Should Be Prepared for First Quarter 2018 Disclosures and Beyond!

The information is at:

I have a chapter in my book (“Trends Converging!) about the pay rule (Chapter 9) – the entire book is available for you with my compliments at:

We’ll continue to bring you news of the CEO-Worker Pay Ratio corporate disclosures in 1Q 2018– company announcements and the public response to same.

The Words From Davos In 2018: Sustainability, Responsibility…And More In This, The Fourth Industrial Revolution

by Hank Boerner – Chair and Chief Strategist, G&A Institute

The World Economic Forum (WEF) annually convenes business leaders, government officials, celebrities and other luminaries in the Swiss village of Davos-Klosters to explore societal issues and develop or work to advance solutions to same.

This year’s convocation was staged over four days n late-January. Some of the highlights for you:

UN Sustainable Development Goals in Focus
The Government of Denmark and the WEF signed a memorandum of understanding to move ahead with a partnership to improve the state of the world through a public-private cooperation. The agreement provides a model framework that could lead to improvement over the long-term.

And, adoption of the approach by other nations. Consider what this European nation and the WEF have in mind:

  • They will pursue public-private partnership to promote green growth.
  • Develop a technology and innovation partnership.
  • Work together to encourage greater adoption of the SDGs.
  • Support the mobilization of private capital for infrastructure through the WEF-led initiative, the Sustainable Development Investment Partnership.
  • Support trade and investment through the Global Alliance for Trade Facilitation (a multi-stakeholder initiative).
  • Work to implement the WEF’s System Initiative on Education, Gender and Work.
  • Denmark will assign a Ministry of Foreign Affairs senior advisor to the WEF New York City office (a second such WEF appointment for Denmark).

Prime Minister Lars Lokke Rasmussen said: “Denmark has an ambitious agenda to promote public-private partnerships…in terms of sustainable growth, social cohesion and technological skills. We are delighted to team with WEF to create concrete progress on these agendas…to create better lives for more people and sole the urgent climate crisis. We must build bridges across sectors, borders and old divisions…”

Addressing Modern Slavery
Influentials addressed the need for coordinated global action to end modern slavery – that was championed by US Senator Bob Corker (R-Tennessee); Monique Villa, CEO of Thomson Reuters Foundation; and, Gary Haugen, CEO of the International Justice Mission.

Senator Corker drew attention to the new Global Fund to End Modern Slavery (“GFEMS”), a public-private partnership to fund programs in countries where such practices are prevalent.

The initial funding is from the United States and United Kingdom; the goal is to raise US$1.5 billion-plus and develop a global strategy to address modern slavery. (It’s estimated that as many as 40 million people now live in modern slavery conditions. This is said to be a $150 billion global business.)

There are three pillars adopted by GFEMS: (1) leverage the rule of law; (2) “energized” engagement with business sector (3) work to sustain freedom.

Jean Baderschneider is CEO of the new Global Fund. The fund’s work will be modeled on the global effort to fight AIDS, TB and malarial infections, bringing together governments, the private sector and NGOs.

Tech-Reskilling Drive Announced
The Information Technology industry is going to work to target 1 million people to offer resources (such as on-line tools) and training opportunities to “re-skill” adults to help them meet the requirements of the tech industry for employment, as well as continue their education and learn more about today’s technology.

Big names in tech are signed on: Accenture, CA Technologies, Cisco, Cognizant, Hewlett Packard Enterprise, Infosys, Pegasystems, PwC, Salesforce, SAP, and Tata Consultancy Services. The coalition is seeking more members to help develop tools and processes to address the “barriers preventing adults from re-skilling or successfully completing training, initially in the United States. There are plans to scale to other geographies.

The coalition’s “SkillSET” is hosted on the EdCas AI-powered Knowledge Cloud Platform, accessible to all.

ISO 20121:2012 Certification for Davos
The conference was awarded the ISO certification for “sustainable event planning and operation” by DNVGL (a certifying body). ISO 20121 is a framework for identifying and managing key social, economic and environmental impacts of an event.

Sustainability measures implement by the Forum included carbon compensation for all air travel by the staff, media and participants; promotion of “sustainable transport” in Davos (walk don’t ride); energy efficiency; water management; sourcing of renewable energy; reduction of waste and recycling.

Ending With A Call to Action
The 2018 Forum closed with a call to action to “globalize compassion” and “leave no one behind.” This, the 48th WEF Annual Meeting, closed on a creative note with four artists sharing visions of how painting, photography, film and dance can inspire empathy with other people’s stories.

Across all of the 400 sessions, the Davos organizers said, “…one key theme kept emerging, the need to embrace our common humanity in the face of rapid technological changes ushered in by the Fourth Industrial Revolution.”

And so the call for a spirit of inclusion, diversity and respect for human rights…this characterized the 2018 gathering, said Sharon Burrow, one of the seven female co-chairs of the meeting (she is General Secretary of the International Trade Union Confederation).

Important outcomes of the meeting included these developments, on the theme of “mending our fractured world”:

  • Preparing workers for the future.
  • Safeguarding our oceans.
  • Closing the gender gap.
  • Tackling waste and pollution.
  • Unlocking nature’s value.
  • Making meat sustainable.
  • Bridging the digital divide.
  • Fighting financial crime and modern slavery.
  • Taking on fake news.
  • Securing air travel.

And…advancing the Fourth Industrial Revolution, which includes Forum centers at work with social, public and private sector partners in numerous countries.

As Oliver Baitch writing in Ethical Corp observed, having spent four days at the conference:

“First, and foremost, sustainability is here to stay. Long gone are the denials or debates as to whether “non-financial” or “soft” issues are the preserve of global business. Themes such as citizenship-centred science, a post-oil energy matrix and tax transparency have shifted from side-room workshops to the main stage.

“Second, companies are beginning to put their money where their mouths are. Davos 2018 saw a litany of firm, measureable corporate commitments – professional services firm PwC promising to cut its carbon emissions by 40% by 2022 (having cut them by 29% since 2007) through to Coca-Cola pledging to collect and recycle the equivalent of every bottle or can it sells globally by 2030.”

You can read his summary of the 2018 confab at:

And, of course, there is a significant amount of related information at the WEF web site:

The Most Trustworthy Business and Professional Leaders – the Rosters Are Out Today From Trust Across America / Trust Around the World

January 30, 2018
by Hank Boerner – Chair& Chief Strategist, G&A Institute

Trust!  For many of us, when a critical incident or crisis occurs, one of the first words that come to mind is “trust,” as in “they really broke the trust with us” or “the organization can’t be trusted” (as in the statements made) or “the leaders can’t be trusted.”

Apply this to now-familiar settings:  Wells Fargo bankers and the security of your personal bank accounts.  BP and deepwater ocean drilling or Alaska drilling.  Equifax and your personal financial information.  Valeant pharma and drug pricing – and alleged gouging.

In a world of those little swirling computer screen circles, and IT dominating our business & persona lives…threats can now be everywhere — internet hacking and phishing abounds – and we think:  who can we trust with your information?  That becomes a conscious and subconscious thought process on both a business and personal basis for many of us.

In business and professional life, trust is a valuable and precious commodity.  Warren Buffett has observed, “…it takes 20 years to build a reputation and five minutes to ruin it…if you think about that, you will do things differently…”

“Trustworthy” is a very valuable characteristic, we would say!

And so does an organization that has been identifying the “Top Thought Leaders in Trust” think that way:  the Trust Across America / Trust Around the World (TAA/TAW, owned by Next Decade, Inc.)

The founder and guiding spirit is CEO Barbara Brooks Kimmel, who 10 years ago created the program and its proprietary FACTS® Framework (used to measure the trustworthiness of more than 1,500 U.S. public companies). FACTS incorporates five indicators of trust and integrity – Financial stability, Accounting conservativeness, Corporate governance, Transparency and Sustainability.

Barbara is also the editor of the Trust INC. book series and runs the global Trust Alliance.

Every year since 2008, TAA/TAW assembles judges and conducts a survey and analysis to select a small universe of the Top Thought Leaders in Trust.  After five continuous years on the annual list, a small number of awardees receive the Lifetime Achievement Award.  This year’s lifetime roster additions include:

  • John Baldoni – President, the Baldoni Consulting organization.
  • Donna Boehme – Principal of Compliance Strategists LLC.
  • Doug Conant – former CEO of Campbell Soup and founder, Conant Leadership.
  • Robert Easton – Chairman and Senior Manager of Accenture Australia and New Zealand.
  • Mark S. Fernandes – CEO of Capitalism 2.0, Inc.
  • Barbara Brooks Kimmel – CEO of Trust Across America.
  • Holly Latty-Mann – Licensed Clinical Psychologist, Cofounder, and President of The Leadership Trust.
  • David Reiling – CEO of Sunrise Banks and social entrepreneur.

TAA / TAW is the leading global program devoted to researching and building tools to elevate organizational trust. A Google search will return over 1300 entries.

In 2015, the organization added the “Lifetime Honorees” designation to 12 professionals.  I was honored to be one of the original twelve, after five years of being the awardee for the annual award.  In 2016 and in 2017, seven more professionals were added to the roster (each year), and now in 2018, there are eight professionals added.

Ninety-one individuals were named to the 2017 individual award, including for the second year in a row, G&A Institute Co-founder and Executive Vice President Louis D. Coppola.

You can see the full list in the latest TRUST! Magazine here:


Of course, Lou and I are humbled and proud to receive such honors.

TAA / TAW points to the organization’s core values and principles, which are excellent “north stars” for professionals’ and their organizations’ guidance:

Integrity – Quality – Community – Objectivity – Credibility – Success. 

You can learn more about these and the organization at:

Do you have a nominee for the Top Thought Leaders 2019 award?  The nominations are now open – there’s information at:

# # #

Adding my thoughts….

Trust – this apparently comes down to us for common understanding and use from ancient languages.  There are derivations from the Old Norse – the language of the wandering Vikings (“traust” and “trow”).  From the Old Dutch (“troosten”).  And the German or Teutonic tongue (“trosten”).  And more from the Gothic English-the Anglo Saxon roots of spoken English today (“trausti”).

These ancient and current tongues convey to us:  

Truth.  Comfort. Trustworthy.
An agreement or covenant – to be true to one’s words and deeds.
To be believed.

And therefore – to be trusted and trustworthy.  Worth striving for, we would say in these often chaotic days of the 21st Century!

# # #

There’s information on the 2017 awards in the news from TAA:

We Love “Top 10” Lists, Right? So – Who Were The Top 10 Movers & Shakers in Sustainability 2017? Huff Po Has Their List… Who Are Your Nominees?

Huffington Post writer Lauren DeMates has her “Top 10” list up for the 2017 forces that shaped (in her opinion) sustainability.  Guiding her choice: “…many of 2017’s activities were prompted by the unprecedented attack on science and environmental protection by the Trump administration.  However, efforts to counteract the anti-environmental agenda and work towards a more sustainable society have been unprecedented as well…”

And in that context, she identifies the following:

#1 Rogue Federal Employees (standing up for science – the “dark state” Trump criticizes).

#2 Xiuhtezcatl Martinez and Earth Guardians (the “global tribe” of inspiring young activists, artists, musicians).

#3 One Million Women (building a lifestyle revolution to fight the climate crisis).

#4 Anthony Bourdain (the CNN featured commentator focused on food and travel who created the movie “Wasted” about food waste).

#5 Sub-national Actors Committed to the Paris Agreement (the growing number of cities, states, universities, business leaders pledging to uphold the 2-degrees commitment that the Federal government is working to abandon).

#6 Volvo Cars (after 2019, these will be electric and hybrids, to phase out fossil fuels).

#7 Lonely Whale (the initiative focused on the plastic waste polluting the oceans).

#8 Bears Ears Tribes (5 Native American tribes in Utah coalescing to stand up to the Federal government to preserve and protect their heritage and land).

#9 Mexico (leading in marine protection with the largest ocean reserve in North America, the infamous gyres).

#10 Climate Optimists (this initiative intends to remind us that hope beats fear – attitude inspires progress). The details shared are “a snapshot” of the many movers and shakers in 2017.  Lauren is a writer-researcher and co-founder of The Sustainability Co-Op, a shared space for guidance on integrating E and S considerations in daily life and understanding the global context in which issues are shaped.

Last week’s Highlights newsletter focused attention on the expansion of the important ISS “QualityScores” for public companies (to include “E” and “S”) by Institutional Shareholder Services (ISS).

There are more details for you, including an interview with Marija Kramer, Head of Responsible Investment Business at ISS. This and more on ISS’ expansion of ESG in a complimentary management brief prepared by the G&A Institute team on our new platform – “G&A Institute’s To The Point!”.

Click here to check out the brief with our compliments!


Our Top Story For You…

Top 10 Movers And Shakers In Sustainability – 2017
(Tuesday – January 09, 2018) Source: Huff Post – A whole lot of moving and shaking was going on in 2017! Previous years’ movers and shakers stepped it up and new people and organizations emerged with innovative strategies to take on environmental issues. Many of 2017’s…

2017’s Top 10 Sustainable Business Stories – HBR Author Andrew Winston Weighs In – What Are Your Top 2017 Stories?

Once again, the authoritative Harvard Business Review weighs in on corporate sustainability with a commentary piece on the top trends of 2017 – with “big leaps both forward and backward” in the year just concluded. And there was some predictability, writes author Andrew Winston in his commentary, as he says he predicted:  “…the context for sustainable business in 2017 may center on the competition between two stories, the election of Donald Trump and significant action on climate change…”

Of course, as we all quickly learned after the January 20 inauguration, the U.S. signaled it would be pulling out of the historic Paris Climate Accord – to become at some point in 2018 probably the ONLY country standing by itself.  At least at the [Federal] governmental level.

And so, Trend #1, writes Andrew Winston, is the “Newtonian equal-and-opposite reaction from business, states, and cities – nothing short of amazing – their pushback on policy decisions is my #1 story of 2017.”

Other top stories & trends that he picked:

#2, the deadly costs of climate change became even more obvious.

#3, Trump Administration begins dismantling of environmental protections.

#4, (we can hear the cheers at your end as you read this – “investors woke up about climate risk and benefits of sustainability”).

#5, something to carefully watch from other leading economies (like the USA!) in 2018, China accelerated its cleantech advantage with a series of dramatic moves.

Completing the list:

#6, cleantech continues the relentless mark and coal continued to die (Morgan Stanley predicted an inflection point in 2020 when renewable become the cheapest energy source globally).

#7 is “famous CEOs” took moral stands (Tesla’s Elon Musk, Disney’s Robert Iger and others).

#8, companies took a stand, such as suing to fight the president’s first Executive Order (the poorly-executed and hateful immigration ban).

#9 is the early -2017 event that millions watched on TV, the Super Bowl, as companies touted in their very expensive ads their views on social sustainability and stands taken on the new administration’s policies.

Finally, at #10 author Winston has in focus the global Unilever, “the consensus corporate leader on managing sustainability for business and social value” — fighting off a takeover bid by Kraft Heinz and 3G Capital.

What is your list of top stories and trends for 2017?  Send us your nominations.  And if you have not already read G&A Institute Chair Hank Boerner’s book published at the end of 2016 and looking into 2017 and 2018, the book is available with our compliments. (“Trends Converging! – A 2016 Look Ahead of the Curve” – that is, what’s ahead in 2017 that affects Sustainability & CR managers…sustainable/ESG investing professionals?)

Reading Trends Converging! you can see what is working / what may not work if the policies of the Trump Administration and the Congress intervene on the wrong side of history.  The book is can be downloaded at:

About the HBR essay:  Author Andrew Winston wrote the popular books “Green to Gold” and “The Big Pivot.” His “So What’s Next” look at mega-trends is included with predictions for 2018.

This is a very powerful column and we urge your reading – it’s our Top Story for you this week.


Our Top Story For You…

The Top 10 Sustainable Business Stories of 2017
(Wednesday – December 27, 2017) Source: Harvard Business Review – The year 2017 has been a long, strange trip. The definition of sustainability in business evolved quickly — the topic in executive suites now covers a wide range of issues that address how a company navigates environmental and…

You And The 21st Century Company — All About Iteration, Innovation & Disruption!

Theme-setting Comments at the Skytop Strategies’ “21st Century Company” conference, early-November 2017 in New York City. This was my third time opening the conference to set the theme of the day…

By Hank Boerner – Chair & Chief Strategist, G&A Institute

There are three words that I think define the concept of these 21st Century Company gatherings. The approach was conceived more than three years ago over lunch with Chris Skroupa, my partner Lou Coppola and I.  And the words keep ringing true ever since.

The first word is Iteration — from the ancient Latin: again…and again…and again. Science and Discovery is about iteration — it is the basis of our scientific theory and practical application of scientific advances. We hear these days about “science-based” and “evidence-based” progress being made. At least from most of us.

The second word is Innovation — also from the Old Latin — the new. Something, everything — new. Most of us are interested in the new; some are anxious, others enthusiastic.

The third word is Progress — also from the Latin roots and with us with the same meaning for many centuries — it is the story of humanity — forward! Moving forward.

Interation / Innovation / Progress. Think of the great inventions of the later years of the late 18th and 19th Centuries that made the 20th Century so very different in so many ways in our personal and business lives. In finance — in public and private governance — and other aspects of our lives.

Our lives in Century 20 were very different from the experiences of generations before us. And will be in Century 21 thanks to the great progress of prior decades.

We can see all of this at work in these Inventions.

  • First, Electricity – the “Dynamo” (as it was called) that harnessed the power and changed nighttime dark to daylight at any time!
  • Telegraphy, the Wireless and Telephony….over time leading to the broad-bands of our internet and our cell phone. Everything is powered by electricity.
  • And the internal combustion engine – providing reliable, portable, movable power — today, cars & trucks and airplanes on the move dominate our lives, don’t they? Speaking of the last….

Henry Ford banging on soybean fender in the 1940s.

Henry Ford banging on soybean fender in the 1940s. In the early 20th Century, The Great Tinkerer, Henry Ford brought together many scientific advances in glass, metallurgy and development of materials such as plastics, instrumentation, rubber for tires, the internal combustion engine…and more… to mass produce cars & trucks.

Henry Ford invented the efficient modern factory with his idea of bringing the work to the worker. His advances in the innovations related to motor cars brought about great progress. He was also a…farmboy at heart.

And thanks to the farmboy in him — Ford Motor Company has been making certain parts out of soybeans. This is both a 20th Century and 21st Century story.

The Industrial Farm of the Future?

Founder Henry Ford planted 6,000 acres of soy on the company farms. In the 1930’s he worked with soybeans to develop early versions of plastics, paints, and other products familiar to us today.

He actually made very sturdy car fenders out of soybeans and was photographed banging on such a fender with a sledgehammer — more than 70 years ago. Those old, collectable brown Ford stick gearshift knobs? Oh, yes — they are a soybean extraction!

One thing he invented in his laboratory for us to use every summer — the charcoal briquette. This came out of his “Industrialized Barn Concept,” his idea that future farmers might use their barn for production in the cold winter months!

And now to 2017 — in mid-October, Ford Motor Company celebrated the 10-year anniversary of using soybean-based-foam in its car seats. That practice saved 228 million pounds of CO2 from entering the atmosphere — equivalent to CO2 consumed by 4 million trees in sequestering carbon emissions.

William Clay Ford, Jr. – Chair of Ford Motor Company with Mustang in 2015

You can see the soybean seats in Ford Mustangs of the last 10 model years. More than 18 million vehicles produced in North America have soy-derived foam seats, proudly notes Great-Grandson / Ford Chair William Ford – an MIT grad. And he is Great-Grandson as well of Harvey Firestone, the rubber tire innovator. And he drives a Mustang with soy seats. And Firestone tires!
Tinkerin’ away:  The Ford Company’s lab tinkers today with such materials as wheat straw; rice hulls; trees; coconut; kenaf; tomato peels; chopped up US dollars; dandelions; algae; agave…you know, the stuff of tequila! The derived materials may be going into tires and gaskets.

That is truly 21st Century Corporate Sustainability in action!

The Spirit of Old Henry-the-Tinkerer & Innovator lives on. As does the Spirit of Thomas Edison. And Alexander Graham Bell. And many other tinkerers.

This is for us clear demonstration of the spirit at the heart of science, of scientific discovery…and of Innovation. And the outcome: the Progress we make!

Another great 19th Century invention I mentioned was the harnessing of Electricity: This new power source drove wired transmissions; think of the telegraph as electrons whizzing through wires to carry dots & dashes. Then telephony evolved with voice-over-wire; then came electrons driving radio waves, then television waves, then wireless telephones. What comes next?

Think about the little and very powerful cell phone, our wire-less telephone that we take for granted — we carry the device around and depend on it for many things every day. The amount of processing power far exceed the capacities available to “tinkerers” like the early space astronauts in their space-borne vehicles.

Radio Shack Advertisement. Electronic miracles of that day.

Speaking of Innovation and Interation…remember Radio Shack? Kids-in-the-garage of Silicon Valley invention fame shopped at Radio Shack for parts — the Steves, Jobs and Wozniak of Apple fame. Radio Shack is gone. Apple thrives.  There is great irony here for us…

The fourth word for us to keep in mind for the 21st Century is very important: Disruption.

Iteration, Innovation, Progress…leads to Disruption.

Economist Joseph Schumpeter described the concept of creative destruction almost 80 years ago.

This is the process in our Capitalistic society of industrial mutation that incessantly revolutionizes the economic structure from within, destroying the old / creating a new structure.

Applying this to Radio Shack: Technology writer Steve Cichon in Huffington Post in March 2014 mused about the February 1991 Radio Shack ad that highlighted electronic items from the ubiquitous storefront – well-known for several generations as “America’s Technology Store.”

This was before the debut of the World Wide Web (in 1994, by tinkerer Tim Berners-Lee), tiny cellular phones and other goodies in our lives that we take for granted today.

To explore the pace of innovation / and the resulting disruption – and the impact on our everyday lives, please do think about right now:

• The pioneering Tandy 1000 personal computer in the 1980s;
• the little “microthin” calculator;
• home telephones (copper wires!);
• stereo player;
• tape recorder;
• CD player;
• phone answering machine;
• earphones;
• microphone;
• speakers;
• photo camera,
• camcorder/video camera;
• weather station;
• AM-FM clock radio.

All that was listed in an ad at about $3,000 in 1991 dollars. That is $5,400 in 2017 dollars.

And all of those modern electronic miracles of 26 years ago are right here in the 4-oz Apple iPhone! At in one hand, at a fraction of the price, all portable, all in your pocket.

Think about the progress that is made, step-by-step, an iteration or discovery (one at a time), that lead us to miracles in our lifetime. There is such an exciting future ahead for the Millennial Generation, isn’t there.

I’ll leave it here for now. We will be exploring all through our day together the marvels and miracles — and hard work — that leads us to ….

Iteration / Innovation / Progress! And the now very familiar… Disruption!

This is what the 21st Century will be all about.

The 21st Century Company: How It Creates Values – And for Whom

Highlights from the strategic “21st Century Company” conference presented annually by Skytop Strategies in November 2017 at the Time Warner Center in New York City.

By  Elizabeth Peterson and Cher Xue, Sustainability Reporting Analysts, G&A Institute

In November, executives in governance, risk, innovation, corporate responsibility, and information technology, and representatives of other functions & disciplines gathered to discuss future trends and share thoughts on the theme of “how to prepare for the risks and opportunities that companies will face in the 21st Century”.

Two prevalent topics of discussion among the executives present were (1) data security and (2) approaching CSR as an opportunity for ROI rather than as an expense.

Hank Boerner, Chairman & CEO at G&A, started the morning off with opening remarks to set the stage for the day’s discussion. He suggested that regardless of the top-notch strategic planning, the 21st Century Company is likely to put forward, disruptions” will always arise.

Using retro props and the evolution of the cell-phone from the early “brick” phone and the revolutionary concept of making a call from anywhere to today’s smartphone (now holding a great deal of our personal information), Hank reminded the audience of the disruptions from the past few decades.

Integration, Innovation, and Progress are what the thriving 21st Century Company will practice to be successful and to thrive, he said. (See his comments here:

The event was held during the first anniversary of the 2016 U.S. Presidential election, which sparked rigorous conversations about what sustainability will look like for the United States over the next three years.

The past year has involved the start of dismantling of some of the country’s most monumental environmental plans and agreements. While this has led to a dim outlook for sustainable’s future for some, others noted that the corporate world is remaining firm in their sustainability strategic plans and targets, due to stakeholders and investors’ increasingly persistent calls for climate change disclosures, even for the non-renewables industry.

This reassurance has allowed many corporate sustainability advocates “to rest easy”. However, as Bennett Freeman, Senior Advisor, Business for Social Responsibility (BSR), mentioned during his panel, governance without government doesn’t work. Corporate social responsibility without government responsibility is insufficient — and sustainable development should not be left to solely corporations.

Another trend creeping into CSR/ESG performance indicators is data security, presenting both opportunities and risks for companies.

Louis Coppola, Co-Founder and Executive VP at G&A, moderated the panel The Internet of Things: One Example of How Technology Shapes—and Threatens—Value Delivery with panelists Gene Fredriksen, Chief Information Security Officer, PSCU & Appointee, Global Forum to Advance Cyber Resilience and Jonathan Hill, Dean of the Seidenberg School of Computer Science and Information Systems at Pace University.

Key takeaway:  Data is being hailed as the “oil of the 21st century”. The amount of data being collected during your day-to-day activities can be a little unsettling for some.

The information obtained by third parties can support significant business decisions and product/service development. Data can hold unmeasurable value for a company’s future to make informed decisions.

However, the question for debate is how responsible do we expect companies to be with our data?

Elizabeth Peterson, GRI Reports Analyst at G&A Institute, Masters Candidate in Sustainability at Hofstra University focusing on ESG Reporting

A spike in recent data breaches has left consumers feeling a little less secure, but it’s also left corporations feelingn uneasy about their brand reputation and the future of their data security plans.

In 2017 alone, we have learned of significant data breaches at Yahoo, Equifax, Uber, Gmail, and many more companies.

Currently, the Global Reporting Initiative (GRI) provides a voluntary reporting indicator (G4-PR8) asking companies to disclose the number of breaches of customer privacy had occurred during that reporting year.

However, with the risk of significant cybersecurity breaches increasing, it’ll become more prevalent for the 21st Century Company to become much more proactive in protecting customer privacy; and, simultaneously, provide more detailed disclosure on a company’s data security efforts – this will be expected by shareholders.

For more information on whether you’ve been affected by the recent Equifax breach, click here.

As consumers, we expect the companies we interact with to take our personal information and data security seriously. However, we cannot place all the responsibility on businesses. With holiday shopping well underway there are plenty of individual tactics to put in place to make sure data is safe while online shopping.. (Link for bullet point source).  These include:

  • Before surfing the Internet, secure your personal computers by updating your security software. Everyone’s computer should have anti-virus, anti-spyware and anti-spam software, as well as a good firewall installed.
  • Keep your personal information private and your password secure. Do not respond to requests to “verify” your password or credit card information unless you initiated the contact. Legitimate businesses will not contact you in this manner.
  • Choose a password by combining different numbers, letters, and symbols. The longer the password, the better.
  • Beware of “bargains” from companies with whom you are unfamiliar — if it sounds too good to be true, it probably is!
  • Use secure websites for purchases. Look for the icon of a locked padlock at the bottom of the screen or “https” in the URL address.
  • Shop with companies you know and trust. Check for background information if you plan to buy from a new or unfamiliar company.
  • Act immediately if you suspect identity theft. Contact your credit card company, your bank, all three credit reporting agencies.

About Corporate Responsibility in the 21st Century

Cher Xue, GRI Reports Analyst at G&A Institute, Master in Environmental Management from Duke University, Nicholas School of the Environment.

One very interesting presentation was entitled: The Arrow Electronics Story: How Innovation Can Drive Profits While Addressing Social ChallengesThe presenter was Joe Verrengia, Global Director of Corporate Social Responsibility at Arrow Electronics, Inc.

Arrow Electronics is a global provider of products, services, and solutions to industrial and commercial users of electronic components and enterprise computing solutions. And humanitarian technology projects serve as a metaphor for what Arrow does every day in business.

The presentation addressed some bias that has been expressed —  such as there is no real ROI on CSR.

As examples, some critics have said these things:  Personal values don’t always translate to work values. People within the organization have no idea what it is and where to start to work. The CSR budget is the first one to cut because, for some business, CSR is not an investment, but an expense.

Joe Verrengia addressed these negative projections and explained how Arrow Electronics sees ROI on CSR – starting with the Company’s brand itself — and to think about who we are as a foundation.

His company’s lessons were a valuable sharing for the conference participants:

  • Besides have ROI clearly demonstrated by direct numbers of additional revenue, for Arrow, ROI is generated through employee recruitment and retention, in that CSR can lead to greater employee pride.
  • Today, for example, 80% of millennial choose work for a purpose-driven company. And 99% of Arrow’s interns decide to come back to work. ROI also comes from customers’ loyalty — 223 of Arrow’s customers now expect Arrow to be a good corporate citizen and demand annual proof of CSR through questionnaires.
  • Because of Arrow’s work on humanitarian technology solutions, the firm also has attracted new customers who have seen the Company’s work on these projects and recognized that Arrow not only has the solutions expertise they need, but also shares the same values as well.
  • Then there is ROI from “Brand”, which is reputational ROI. Arrow’s CSR technology projects have generated nearly two billion media impressions and more than 600 news stories in just a few years. The earned media value and the calculated brand value of these projects far exceeded what they cost.
  • Arrow’s CSR program has a focus on guiding innovation that improves lives and provides opportunity. The CSR program is demonstrated through humanitarian projects, community investment, employee engagement and corporate reporting.

For the purpose of measuring CSR program and score progress, Arrow has developed an engagement rating system by which the Company evaluates CSR partners and projects. The 10 categories of engagement include Innovation; CSR category alignment; Brand elevation; Social impact; Business development potential; Executive support; Arrow locations; Stature; Arrow V alignment; and, Employee Engagement.

Arrow believes “Five Years Out” is the tangible future, and the Company’s innovations can make the world a better place for us all – now and five years out, which is exactly a 21st Century Corporation approach.

Note:  this commentary featured just two of the event’s panels.  An agenda for the day can be found here.  Follow Skytop Strategies meetings calendar for the 2018 conference with the 21st Company thematic:

High Water Women’s 2017 Investing For Impact Symposium

By Laura Malo –  Sustainability Reports Data Analyst, G&A Institute

On November 30th the High Water Women organization’s 5th Annual Investing for Impact Symposium in New York City drew a record crowd; I was pleased to attend as a G&A Institute representative (G&A was a sponsor of the event).

Background:  In 2005, High Water Women organization was founded by a group of senior women involved in the funding world and working for investing communities.

The concept was to advance ideas and principles that encouraged women employed in or planning to be part of the financial services sector.

Over the years since, HWW members have working at the mission and have achieving very encouraging results throughout different components of the capital markets.

Today, there are more than 3,500 members working in the financial services sector as well as in allied firms and organizations (such as non-profits and in public sector agencies).  This provides the organization with a large volunteer network collaborating to achieve justice and equity for women across both the investing and business communities.

The 2017 Symposium

At the symposium, a really complete and quite interesting agenda assembled by HWW brought together outstanding experts participating in panels and workshop sessions; I thought the speakers were highly qualified and outstanding thought leaders in their fields.

The day began with Valerie Rockefeller, board member of the Rockefeller Brothers Fund being interviewed by Debra Schwartz, Managing Director of Impact Investments, The John D. and Catherine T. MacArthur Foundation. Ms. Rockefeller presented powerful arguments about the role of females in investing activities.

This was followed by two plenary sessions, focused on “Taking Action: Removing Obstacles to Change,” and, “Fighting for a Better World: Women in Impact Investing.” These sessions brought into focus the crucial question:  Why should it be necessary to democratize the access to the impact investment field.

Investor/board member  Valerie Rockefeller and interviewer Debra Schwartz at HWW NYC Symposium 2017

Another session was focused on “Taking action — the key challenges that companies need to focus on:

  • Transparency
  • Risk reward
  • Insufficient diversity
  • Investing washing

…and how companies need to evolve to face the new challenges, such as adopting and using the Sustainable Development Goals (SDGs) in strategy and tactics.

Taking Action session: “Removing Obstacles to Change” with Susan Hammel, President, Cogent Consulting as session moderator.

For a breakout session I chose “Environmental and Climate,” where the discussion was focused on the environmental opportunity and climate risk into investment portfolios. The conversation  among participants was about the role of the corporation; the need for more specific standards and metrics for women;  the importance of creating non-biased investment portfolios; the specific of ESG approaches for analysis; and, the consequences of having the portfolio companies which don’t advocate for the environment protection.

Also discussed: the challenge of developing business models which contemplate climate change risk as one of the important considerations for company managements.

There were four afternoon breakout sessions and plenary sessions.

One featured Governor Deval Patrick of Massachusetts, who was interviewed by Imogen Rose Smith, Investment Fellow, University of California. We also had two very informative panel sessions:: “Impact Investing in the New Age of Social Activism”; and, “Go Big or Go Home”, which was about the bold ideas driving impact investing today.

Fireside Chat with Governor Deval Patrick being interviewed by Imogen Rose-Smith

High Water Women is an organization for activists and thought leaders; they advocate for greater impact philanthropy.  The symposium attracts individuals, organizations and companies already involved in, or, seeking to explore the field of values-based investing.  This creates an ideal atmosphere for the networking all through the day. (Be sure to attend next year!)

The HWW grand ambitions made even more sense to me after attending the panel presented by Sara Brand, General Partner, True Wealth Ventures.

She shared critical data which makes for more understanding of the necessity in encouraging more women’s participation in financial issues in a more productive way — from the household unit to the board rooms in companies.

The data demonstrated that:

  • Women make 85% of the consumer purchasing decisions;
  • and 85% of healthcare decisions
  • We learned that companies with a female founder work 63% better than companies with an all-male founding board.

However, the current environment in the workplaces leaves women in second place in the business world.

  • Today, only a 1% of partners at firms making investment decisions are women;
  • and less than a 3% of the CEOs in USA are women.

These quantitative data sets are enough proof from the fact that markets should be assessed from a different perspective in which women play a more significant role.

Ms. Brand also talked about the problem and exposed solutions to fix it based on the endorsement of:

  • Women Entrepreneurs
  • Women General Partners
  • Women Limited Partners

Spotlight: Women Investors are the solution to the World’s problem, Sara Brand

The line up of brand name sponsors for the HWW event included: The John D. and Catherine T. MacArthur Foundation, Orrick Herrington & Sutcliffe, BlackRock, Deutsche Asset Management, KKR, Treehouse Investments, Trillium Asset Management, Calvert Investments, Columbia Threadneedle, Community Investment Management, Dalberg Global Development Advisors, Impax Asset Management, Microvest, oekom research, Tara Health Foundation, and Tideline.

For me as a first-time attendee, it was really inspiring to listen to achievers who are working at important foundations, investment firms and other organizations to develop more interest in impact investment programs – and to push companies forward for greater, faster change.

I heard about creating new business models leveraging the ESG approach to address challenges and opportunities and to support of diversity and gender empowerment that were breaking new ground..

Thanks to the current rise in the CSR strategies performance and the well-established networking of connectors, sustainers and factors, HWW provides women with the education needed and support required to overcome the societal obstacles — and to be able to strengthen the leadership of women in driving the emerging field of Impact Investment.

This brought to mind for me the words of the Mexican folk painter, Frida Kahio:  “At the end of the day, we can endure much more than we think we can.”


Guest Post by Laura Maio Yague, Sustainability Report Analyst, Governance & Accountability Institute

The Annual Net Impact Conference in the City of Atlanta, Georgia was held on October 26th, 27th and 28th of October and I was one of the fortunate ones to attend. This year was an exceptional event as the organization was celebrating its 25th anniversary under the banner of “Path to Purpose”.

Atlanta live tour

Atlanta welcomed us with an amazing tour “Atlanta Alive: Street Art & Social Justice Tour” during which we discovered the city art scene through its different neighborhoods.

At the same time, we learned and deepen more about its history, social movements and remarkable local figures of the Human Rights like The Rev. Dr Martin Luther King Jr. The city history of self-improvement of the city, dealing with racism and diverse social injustices made the tour the perfect starting point to get us ready for the immersion into the incredible experience that Net Impact 2017 had to offer.

“PATH TO PURPOSE” That was the main topic of this year’s annual gathering of Net Impact professionals and guest attendees.  The organizers wanted to make the audience think about what their purpose in life is, where to address the efforts and how to define our career.

The powerful idea of this year’s event was to bring together a large group of passionate students and young professionals from around the world to seek an innovative thinking to find solutions for the most pressing challenges of our time.

An intense and variety of sessions, panels, round-table discussions and activities were programmed for these three days to talk and address different issues about sustainability, environment, governance, social responsibility and social impact.

The sessions embraced topics from different fields and perspectives, ranging from technical to social aspects.   An example: Global Development, Corporate Impact, Food or Startups & Tech. The various panels targeted topics of interest for students and professionals alike. Students could participate in panels such as ‘Building Equity and Inclusion on Campus’ or sessions for One-on-One Coaching, with mentors and experimented professionals.

For those whose careers are taking off and were looking for encouragement, information on specific fields and advise, there were interesting panels which provided personal and professional guidance, such as Careers with Purpose: Building skills-based Volunteering into Any Organization, or ‘How to align Who You Are with What You Do.

The offer was very extensive, and I was really excited for attending many of the sessions.  Facing difficult choices, I finally decided to participate in the following panels:

  • Leading with the Triple Bottom line: Creating Shared Value Through Business’; this panel presented interesting stories and personal experiences of people driving CSR and sustainability forward in their companies.
  • The next wave of strategic Philanthropy and Impact investment’ analyzed the current solutions for companies to get the right financial support.

A few sessions related to food:

  • Farm to trash: Disrupting the Food Waste Epidemic
  • A Dialogue with Monsanto: Our Perspective on Food System For the Future.

Both of these sessions included activities bringing to our table a real case for which the audience was encouraged to find a sustainable solution.

  • NI17 Pitch Competition. I think this session reflected the real meaning and spirit of the conference. Young students presented ideas of either models or real businesses with a social impact. They upheld their work to convince the audience for a vote in order to get some economic resources to turn their dream into a real startup. It was a hopeful and vibrant moment.

In addition, each of the Keynote sessions united the whole audience in the big Auditorium with exceptional speakers sharing their personal experiences and stories.

Speakers shared with us how they built their impact projects related to fair trade, climate change solutions, human rights advocacy, all of them under the idea of following a purpose. They were very driven and motivating.

Derreck Kayongo presenting ‘The Global Soap Project’

I would like to make a special mention for Paul Hawken, Executive Director, Project Drawdown and Derreck Kayongo, CEO, National Center for Civil and Human Rights, for their encouraging and inspiring speeches. It is also remarkable a common point of all the speakers: their positive and resilience attitude to undertake challenges and problems in life.

Paul Hawken, presenting Project Drawdown

World of Coca-Cola Art Gallery

There was also free time to enjoy the city and its tourist attractions, such as the welcome party at the World of Coca-Cola and the Aquarium Sips Under the Sea Party.  Those were enjoyable and  really fun places which provided a cordial and relaxed climate for networking and continue meeting interesting people with common concerns and similar objectives.

Georgia Aquarium

There was a special atmosphere around the whole conference. Net Impact is the right place to elevate and bolster your career. This opportunity to share experiences with a multidisciplinary group of people with similar goals is really motivating.

Through the sessions you are able to do networking, acquire knowledge and discover new fields. It is a very enriching and fulfilling experience. I would highly recommend to anyone whose purpose is to build a society that is sustainable, equitable and fair for all. This is a good place to start to take action.

“The time is always right to do what is right.” Martin Luther King, Jr.

At the Net Impact Conference:  Governance & Accountability Research Analysts Laura at Left Mola Yague (left) and Cher Xue (right).

Laura Malo Yague was graduated from Escuela de Ingenieria y Arquitectura de la Universad de Zaragoza in Industrial Technical Engineering, Industrial Electronics with Diploma in Business Management from IE (Spain).  She recently finished an Advanced Diploma at New York University, in Monitoring and Evaluation (project management for the United Nations, governments and not-for-profits).  Laura is a Corporate Reporting Analyst with G&A Institute.

The 2017 Net Impact Conference – Finding Your Path to Purpose

Guest Post by Cher Xue, Sustainability Report Analyst, Governance & Accountability Institute

The 2017 Net Impact Conference was held in Atlanta, GA, from October 26-28, 2017. The conference gathered about 2,000 students and young professionals who are committed to making a positive and lasting social and environmental impact throughout their careers.

Net Impact, headquartered in Oakland, California, is a leading global nonprofit, a global community with over 100,000 strong leaders and 300 chapters. Members are well equipped with the vital skills, experience and connections to people that will allow them to have the greatest impact — and turn their passions into a lifetime of world-changing action.

This year’s conference theme was “Path to Purpose” — and this resonated well in every session of the conference. To meet attendees’ different needs and interests, the conference offered more than 60 breakout sessions for professionals, students and faculties; these sessions are in the form of boot camps, panels and workshops.

The conference content covered a variety of different topics, including civic engagement, corporate impact, environment, equity, food, global development, social entrepreneurship, and startups & Tech. The conference also featured career advancement opportunities by organizing the on-site Expo, group mentoring and one-on-one career coaching.

One panel entitled, Leading with the Triple Bottom Line: Creating Shared Value Through Business, brought together people driving CSR and sustainability forward in their companies.

The panelists were:

  • Michael Oxman, the Managing Director of the Ray C. Anderson Center for Sustainability Business at Scheller College of Business, Georgia Tech;
  • Suzanne Fallender, Director of Corporate Responsibility at Intel;
  • Jami Buck-Vance, Director of Corporate Responsibility & Community Partnerships at Cox Enterprises; and,
  • Bruce Karas, V.P. of Environment & Sustainability at Coca-Cola North America Group.

This panel discussed details of both the challenges and solutions for corporate in social and environmental impact. The panelists shared their experience in what it takes to integrate impact metrics and values across the company. Young professionals, students, and people who would like to contribute to sustainability in their own companies found great advice for them to carry their work in the future.

Another panel –  Navigating the Clean Energy Transition  — featured:

  • Marilyn Brown, Professor at Georgia Institute of Technology;
  • Lee Ballin, Head of Sustainable Business Programs at Bloomberg;
  • John Federovitch, Senior Director of Renewable Energy & Efficiency at Walmart; and
  • Jim Hanna, Director of Datacenter Sustainability at Microsoft.

The panelists talked about how we could change the energy landscape from dependency on fossil fuels to cleaner options in an economically feasible and environmentally conscious way.

As the private sector plays a leading role in energy consumption, John Federovitch and Jim Hanna (from Walmart and Microsoft) shared their views on navigating the clean energy transition, the challenges, and future trends in Clean Energy.

Opening party at the World of Coca-Cola

In addition to panels and workshops, this year, in honor of the Net Impact’s 25th anniversary, the conference added more local networking events and excursions throughout the weekend for attendees to explore Atlanta. These included an opening party at the World of Coca-Cola, a visit to the Civil & Human Rights Museum, the panda enclosure at Atlanta Zoo, and a tour of the city’s “living walls project”.

The Atlanta city tour of street art and social justice allowed attendees to be immersed in its vibrant culture, socially conscious communities and southern charm.

Reception at the Georgia Aquarium

Atlanta is a thriving city with a history of social movements, and is the birthplace for one of the greatest Civil Rights icons, The Rev. Dr. Martin Luther King Jr.

The history of this southern city and national events influenced artists who create art in public space throughout the city with over 100 outdoor murals. The 4-hour long bus tour experience not only added welcome fun to the conference, but also allowed attendees to explore sections of town that use art as an identifier of their community, and examine how art was used to present powerful and thought-provoking messages.

Atlanta Alive: Street Art & Social Justice Tour

I found the three-day Net Impact conference in Atlanta to be a really wonderful gathering of the brightest, most enthusiastic and innovative change agents from all over the world. My participation allowed me to gain rich experience in all aspects, as well as tangible skills and actionable insights.  I am sure that participants came away feeling that the conference helped them to map out their Path to Purpose — to turn their passion into a purposeful career!

Qier “Cher” Xue is a recent graduate of Duke University, Nicholas School of the Environment.  She majored in Environmental Management with concentration in Energy.  She also earned a Certificate in Sustainable System Analysis, and worked as student consultant at Lenovo.  Her interests are in renewable energy, supply chain management and sustainability.  She’s a grad of the University of Minnesota, Twin Cities with Distinction Cum Laude Honors in Environmental Sciences, Policy and Management (B.S.).  G&A Institute is proud to have her working as Sustainable Reporting Analyst.