Excellence in Corporate Citizenship on Display in the Coronavirus Crisis – #2

by Hank Boerner – Chair & Chief Strategist – G&A Institute and the G&A team   — continuing a new conversation about the corporate and investor response the coronavirus crisis…this is the beginning….

Introduction
These are the times when actions and reactions to crisis helps to define the character of the corporation and shape the public profiles of each of the corporate citizens. For companies, these are not easy times.

Many important decisions are to be made, many priorities set in an environment of unknown unknowns — and there are many stakeholders to be taken care of.

Employees – Customers – Suppliers – Regulators – Partners – Investors – Lenders – Communities – Civic Leadership.

As the the arms of the Federal government rush to aid the American society, CEO Chuck Robbins of Cisco put things in perspective in the story: “It’s critical that D.C. do something fast for companies – if you get 80 percent right today, it’s better than waiting a week and getting it 90% right.”

The good news:  Corporations are not waiting – decisions are being made quickly and action is being taken to protect the enterprise – no easy task while protecting the corporate brand, the reputation for being a good corporate citizen, watching out for the investor base and the employee base — and all stakeholders.

This continuing commentary in the first week of the crisis breaking through the barriers of doubt and with reality setting in. What are companies doing? How will the decisions made at the top in turn affect the company’s employees, customers, hometowns, suppliers, other stakeholders? Stay tuned.

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Friday, March 20, 2020 – Day Four of the National Shutdown in the Coronavirus Crisis…  The Second Roundup of the Day –  Evening Today

Walmart Responds – Setting the Pace for Mass Retailing

Walmart is the largest retailer in the United States of America, with branded stores, Sam’s Club stores, warehouses and other facilities in literally thousands of communities across the continent.

During hurricanes, floods, superstorms and the like, the Walmart men and women have stepped forward to aid their communities in various ways.

The company has a web site up for employees, customers and stakeholders to detail “Walmart’s Response to COVID-19″ (link below).

Among the steps announced so far:

The message from the CEO-President John Furner (Walmart U.S.) to his team members:  “We are so grateful for your hard work.  It’s been incredible to see Walmart associates step up to the challenge of serving America this month.  During a very uncertain and stressful time, you have done your jobs with calm, compassion and excellence.”

Full message here: https://corporate.walmart.com/newsroom/2020/03/19/walmart-u-s-ceo-john-furner-to-associates-we-are-so-grateful-for-your-hard-work

Walmart’s Walking-the-talk reward for associates:

  • Every full timer in stores, supply chain and HQs will receive $300 and part-timers $150 in the bonus (on April 2nd). The bonus payments for Q1 will be accelerated to be paid later in the month of April – the amount will be just as if the first quarter goals were reached.  No associate will receive less than the first Q bonus payment. Cost to WMT: US$180 million.
  • Overall, $550 million will be going to WMT associates during this critical period.  2019 Q4 payments were made this week – so Walmart team members will be seeing money coming in March 19 – April 2 – April 30 – May 28.

We’re hiring!  More associates are needed – the doors are open for up to 150,000 temporary workers for stores, clubs, distribution centers and fulfillment centers – some may convert to permanent jobs after the crisis.  The 2-week application process is now 24 hours.  Information is at careers.walmart.com

The company beefed up its COVID-19 emergency leave policy to encourage sick employees to stay home, or those “uncomfortable”, those who are quarantined, and associates with the virus.

Today (March 20) from 6 a.m. to 7 a.m. employees had an “associates-only” shopping hour with the usual 10% discount expanded to include vital grocery items.

Consider the lift:  This company has 2.2 million associates worldwide.

Walmart has a huge footprint across North America and stretched into parts of the world.  Each week (in normal times) 265 million shoppers (customers and “members”) visit 11,500 stores under 56 banners in 27 countries and eCommerce websites.

Says CEO-U.S. John Furner:  “Thank you again for what you’re doing – America needs Walmart right now, and we have been at our absolute best.

Bravo, Walmart associates, for keeping us supplied as best you can in this emergency.

You can keep up with Walmart news at: https://corporate.walmart.com/coronavirus

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Give Us a Few Hours and You Will Have Your Hand Cleaner

LVMH, the luxury brand marketer, met France’s call for more hand sanitizer in just 72 hours. On a typical day the Orleans, France factory produces perfume (Christian Dior etc).  This Monday, reports The Financial Times, the first lines of hand sanitizer in plastic bottles rolled forth, headed for doctors and nurses in Paris hospitals.

The government of France called on industry to help – that was last Friday – and Monday the bottles began to head for boxes for delivery to the besieged hospitals.  (LVMH – Louis Vuitton, Moet Hennessey is the largest company in France.)

The company intends to produce 12 tonnes (!) of the gel to 39 hospitals in Paris (the APHP”) over the coming days and two other production lines (Givenchy, L’Oise and Guerlain Brand, Chartres) are coming on line.

Secret to the ramp up: FT writer Leila Abboud explains that sanitizing needs three main ingredients – purified water, ethanol and glycerine – and the company had these at the ready as the equipment was set up (cosmetics and pharma products being close cousins). The company makes liquid soap, moisturizing creams for the usual products – Dior, Givenchy, Guerlain.

Said the company:  “LVMH will continue to honour this commitment as long as necessary.”

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In related news The Financial Times tells us that other French companies have joined the battle.

  • BNP Paribas donated 500,000 masks to Paris hospitals.
  • Renault loaned 300 autos for medical purposes.
  • L’Oreal is retooling factories to make millions of hand sanitizers destined for nursing homes and hospitals.

Keeping in mind:  Makers of luxury goods will be hard hit in the current crisis, especially as the lucrative China markets shut down – both for sales and for production.  (LVMH is not reliant on China for production, but sales, definitely.)

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Closer to Home – Bacardi in Puerto Rico Steps Up

Bacardi Limited, makes of popular rums, will help to supply the ethanol required for making hand sanitizers.  The distillery in Catano, P.R. where 80% of the rums are made, is partnering with Olein Refinery to product raw materials that will contribute to the production of the products.

Target: at least 500,000 of the 10-ounce units of hand sanitizers – and these will be donated to local communities.  Said Jose Class – VP-Supply Chain & Manufacturing:  “This is a family-owned business sand we know what it means to take care of a community in need.  In the 158 years of [the family-owned] Bacardi, we’ve endured our share of challenging times and have learned that resilience, optimism and community are what will help us come out stronger.”

We’ll hoist a glass to that!  Make it BACARDI® – GREY GOOSE® – DEWARS® – BOMBAY SAPPHIRE® – MARTINI® – and other brands of this corporate citizen in a U.S. territory still struggling to recover from a devastating superstorm.

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Reuters / Ethical Corp:  Moving to the Online to Share Important Perspectives & Guidance

Ethical Corp / Reuters Events create “Reuters Events Ethical Corporation” events.  While in-person meetings will be a zero right now and probably at minimum for a while, that does not mean that the sharing has to stop.

The partners are organizing a new webinar series of 60 minutes each to “deliver solution to key sustainability challenges”.  Senior event speakers from Europe and the USA will present at the upcoming sessions:

  • Investors Engagement: Measuring Your Social Impact
  • Traceability & Visibility: Successfully Map and Monitor Across the Tiers
  • Best Practice Sustainability Supplier Engagement
  • Climate Disclosures – Accurately Reporting Climate Impacts, Risks and Future Opportunities

G&A Institute regularly partners with Reuters / Ethical Corp and G&A’s VP Amy Gallagher is the point person who alerts our connections about upcoming Reuters / Ethical Corp conferences.  She’ll keep us posted on the webinar series – watch for our communications through the usual channels.

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Global Reporting Initiative – Staying Safe and Continuing on Course

Tim Mohin, Chief Executive of the GRI, updated the global community plugged into the standards organization with news from Amsterdam (HQs of the GRI):

  • Most employees have transitioned to remote work arrangements to continue the operations.
  • Virtual solutions are enabling stakeholder engagements through online platforms.
  • All air travel is restricted for the GRI workforce.
  • Employees are being updated and informed through messaging apps, video, collaboration tools.

The GRI organization’s three priorities: (1) the wellbeing of all employees worldwide; (2) continuing the work with partners; (3) meeting new challenges with resilience, dedication and hard work.

You should know: Timothy J. Mohin was senior director of CR for Advanced Micro Devices (AMD) and former chair of the Electronic Industry Citizenship Coalition (EICC) before joining GRI as chief executive.  He’s the author of the best-seller, “Changing Business from the Inside Out: A Treehugger’s Guide to Working in Corporations”.

Earlier in his career Tim was founder/leader of Apple’s Supplier Responsibility program, and also led Intel’s sustainability functions.

G&A Institute is Data Partner for the GRI in the United States of America, the United Kingdom and the Republic of Ireland (an EU state).   We value our long relationship with the GRI team and with Tim Mohin and our decade-long collaboration with GRI.

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The National Geographic Shoulders On – Facts and Science in the Forefront

The National Geographic Society has assembled the magazine’s COVID-19 “scientifically-accurate” information for subscribers (online). This includes text, graphics, photos, videos, “fake news” exposes, data sets, and much more.  Also, resources for families (“for facts geared toward kids and ideas on how to occupy their minds while they are out of school – at “Nat Geo Kids”).

All of this is in addition to the usual broad fare of science, geography and other content that the National Geographic offers.  The society’s national office in Washington D.C. is closed until at least March 31st

Says NatGeo:  “The work continues in these uncertain times.  It must.  Earth’s last wild places and millions of species are on the brink of being lost forever. If anything, this pandemic shows what happens when science and the experts are ignored.  We need solutions to the biggest challenges threatening our planet now more than ever. We can’t afford to pause our work, and we’ll do the best that we can to build a better future together while maintaining the health of all.”

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G&A Institute Team Note:
We will continue to bring you news of private (corporate and business), public and social sector developments as organizations in the three societal sectors adjust to the emergency.

The new items will be posted at the top of the blog post and the items today in this first blog post will move down the queue.

We are creating the tag “Corporate Purpose – Virus Crisis” for this continuing series – and the hashtag #WeRise2FightCOVID-19 for our Twitter posts.  Do join the conversation and contribute your views and news.

Send us news about your organization – info@ga-institute.com so we can share.   Stay safe – be well — keep in touch!

U.S. Industry & Trade Associations Encourage Corporate Sustainability — Today, the American Cleaning Institute is in Focus

by Hank Boerner – Chairman, G&A Institute

As more and more U.S. companies begin or expand their disclosure and reporting on their sustainability journey, and their widening range of corporate responsibility activities, the choice of reporting frameworks both narrows and expands.

Narrows in the sense that the Global Reporting Initiative (GRI) framework — now in its fourth generation (“G4”) since the introduction of the GRI approach in 1999-2000 — is considered the de facto global standard by thousands of company managements. There are now 30,000 sustainability reports in the GRI database — 21,000-plus of those published GRI Reports.

And the number of reporting frameworks and generally accepted standard steadily expands — there are many more standards, frameworks, codes of conduct, guidelines, third party requests for information, that now take sustainability / responsibility / citizenship / environmental performance reporting far beyond where these activities were a decade or so ago. Many corporate managements recognize the importance of such reporting and devote the necessary [human and financial] resources to the task.

Examples of available standards include corporate responding to the annual CDP CSA request for information (the voluntary Corporate Sustainability Assessment). CDP began operations in 2000 as the Carbon Disclosure Project with focus on collecting, organizing and providing information on corporate Greenhouse Gas Emissions (GhGs) to investors; today the CDP focus include water issues, forestry issues, supply chain issues, and sector-by-sector research and analysis (the first sectors included chemicals and automotive). The client base is almost 500 institutional investors with more than US$55 trillion in AUM — they accept the CDP approach as an important standard in reporting on corporate environmental performance (or lack of).

There are also global and U.S. industry associations and trade groups that help their corporate members to understand key issues, map materiality; understand stakeholder expectations; align corporate strategies, activities and programs, third party engagement, and disclosure and reporting with the ever-expanding stakeholder and shareholder expectations. Among these are such well-known organizations as Automotive Industry Action Group (AIAG) and the Electronics Industry Citizenship Coalition (EICC).

Industry Effort:
The American Cleaning Institute and Sustainability

One large industry-focused effort we focus on today organized resources to develop a charter to provide a common, voluntary approach to promote and demonstrate continual improvement in the industry’s sustainability profile is that of the cleaning (products & services) industry — the American Cleaning Institute (ACI).

The Charter for Sustainable Cleaning is one of ACI’ major initiatives to fulfill the mission, and provide a framework for corporate members to go beyond basic legal and regulatory requirements.

You know many of the member company names and their brands, which are ubiquitous in American and global business-to-business and consumer marketing; a sampling includes Amway, BASF, Church & Dwight, Clorox, Colgate-Palmolive, Dow, DuPont, Huntsman, and International Flavors & Fragrances (IFF).

The American Cleaning Institute’s sustainability mission is to “benefit society and improve the quality of life through hygiene and cleanliness by driving sustainability improvements across the industry and throughout the supply chain.” The ACI Charter for Sustainable Cleaning was launched in January 2014 at the group’s annual meeting & industry convention. The charter was in part based on the A.I.S.E. Charter for Sustainable Cleaning, a voluntary initiative of the sister trade association in Europe (AISE). The bulk of ACI’s U.S. member companies are cleaning product manufacturers and chemical suppliers.

To date, 25 ACI member companies are signing on to the charter; they are required to have systems in place to continual assessment; review; and improvement of sustainability performance. This includes product life cycle; raw materials; resource use; product specs; manufacturing; end use and disposal of products and packaging; and occupational health and safety.


Discussion:
Brian Sansoni, VP, Sustainability Initiatives

We spoke with ACI’s Brian Sansoni, the VP, Sustainability Initiatives, based in Washington, D.C. Brian described the ACI’s sustainability efforts with the Charter as “an ongoing roll-out, beginning with speaker presentations and participant discussion at the 2014 annual conference. We are now two years into the effort.” The effort is to develop and demonstrate the sustainability efforts of a major industry sector in the United States, the cleaning products and services manufacturing and marketing industry and the industry’s supply chain.

Brian, who joined ACI in 2000, was named VP, Sustainability Initiatives in 2012 (he also has the title of VP, Communication & Membership). Brian works closely with the association’s communications team, the government affairs team, research & science team, and with a sustainability committee whose members come from member companies. He’s a radio news reporter and Congressional press secretary by background and past experience, and applies those skills to the communication about the industry association and member companies’ commitments to greater sustainability.

Brian’s teammate is Melissa Grande, Senior Manager, Sustainability Initiatives, who joined us in the conversation. Brian and Melissa oversee the production of the ACI Sustainability Report, which Brian describes as being thorough, distinct and relevant with metrics that clearly provide a hallmark of what the association and its member companies are doing in their collective sustainability journeys. The report summarizes data from 33 member companies participating in the 2014 Sustainability Metrics Program (the metrics relate to energy use, GhG emissions, water use and solid waste generation). The report features an updated summary of ACI’s social and environmental sustainability programs, and details for ACI’s scientific and research programs. They also conduct the “Sustainability Academy” for the education of ACI’s member companies.

The report is available at: www.cleaninginstitute.org/sustainability2015

Melissa Grande explained that as part of the association’s ongoing collaboration with other standard setters, ACI is a member organization of the Sustainability Consortium (Melissa was previously a member of the consortium staff).  ACI participated in the Sustainable Accounting Standards Board (SASB) development of suggested (voluntary) materiality disclosures for the Consumption Products Sector (including household and personal products).

Brian Sansoni stressed that the ACI effort is intended to create an industry-wide, discrete approach that member companies can benefit from, and contribute to as the initiatives move forward.

Important:  ACI’s Critical Issue Assessment

For the first time, the Institute staff and participating companies conducted a comprehensive materiality assessment to map risks and opportunities facing the U.S. cleaning product value chain, including key energy and environmental metrics. The mapping identified and characterized the key issues that affect ACI’s membership and the industry-at-large.

The top issues identified in the materiality process by internal and external stakeholders:

1 – Materials (safety of chemical ingredients; raw material sourcing, scarcity).
2 – Disclosure & Transparency (public disclosure related to sustainability, governance, products).
3 – Climate Change / GhGs (climate risk & opportunities; GhG emissions).
4 – Ecological Impacts (biodiversity, deforestation, environmental management, responsible agricultural practices).
5 – Water (use, waste water treatment, recycling).
6 – Workplace Health and Safety (health & safety management; health & wellness training programs).
7 – Waste (hazardous, non-hazardous waste; management of product end-of-life).
8 – Energy (energy use, renewable energy).
9 – Supply Chain Management (screening business partners on ethics & sustainability issues).
10 – Compliance (with EHS regulations).

The American Cleaning Institute’s Materiality Assessment, Brian notes, is an important way of guiding the association’s and member companies’ reporting on industry priorities. It’s also useful for the dialogue between companies and their stakeholders. ACI CEO Ernie Rosenberg notes that the association will be more strategic about tracking industry performance [on the issues] and the ACI sustainability reporting will evolve as a result.

In our view, the American Cleaning Institute’s sustainability program is an excellent example of the preferred method of the American business community in addressing ESG performance issues: adopting of voluntary, industry-wide standards, approaches, guidelines, codes of conduct, and other non-regulated approaches.

As we said up top, this approach is represented by what we see in the automotive, electronics, chemicals, apparel and other industries and sectors. This is important to keep in mind as the public dialogue on sustainability reporting includes expectations that the Federal government will at some point issue mandates for greater sustainability disclosure and structured reporting (similar, some advocates say, to mandated financial reporting).

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For Reference

 

Company participants in the 2014 American Cleaning Institute Metrics Program:

AkzoNobel Chemicals LLC; Amway; Arylessence, Inc; BASF Corporation; Brenntag North America; Celeste Industries Corporation; Chemia Corporations; Church & Dwight Company, Inc; The Clorox Company; Colgate-Palmolive Company; Corbion; Croda, Inc; The Dow Chemical Company; DuPont Industrial Biosciences; Ecolab, Inc; Evonik Corporation; Farabi Petrochemicals; Firmenich Incorporated; Givaudan Fragrances Corporation; GOJO Industries, Inc; Henkel Consumer Goods, Inc; Huntsman Corporation; International Flavors & Fragrances, Inc; Novozymes PQ Corporation; Procter & Gamble; SC Johnson; Sasol; Seventh Generation; Shell Chemical LP; Stepan Company; The Sun Products Corporation; Vantage Oleochemicals.

These companies are key members of the US$30 billion U.S. cleaning products marketplace. ACI members formulate soaps, detergents and general cleaning products used in household, commercial, industrial and institutional settings. They also supply ingredients and finished packaging for these products; and, ACI members include oleochemical producers.