Vol. 4 No. 1 – January/February 2013

Let It Schein

Stanley Bergman, longtime CEO of Henry Schein, Inc., talks about a childhood in South Africa, dental offices in Haiti, and philanthropy in America.

By Dirk Olin

Stanley M. Bergman
is chairman and CEO of Henry Schein, Inc., the world’s largest distributor of health products and services to office-based dental, medical, and animal health practitioners. The company counts more than 15,000 employees and operations or affiliations in 25 countries. Its net sales reached a record $8.5 billion in 2011. Henry Schein is also a Fortune “Most Admired” company, ranked #1 in its industry for social responsibility, global competitiveness, quality of management, quality of products/services, and long-term investment.

Bergman has been chairman and CEO since 1989, and a director of the company since 1982. He served as executive vice president of the company from 1985 to 1989, and vice president of finance and administration for the company from 1980 to 1985.

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100 Best: Most Improved

The biggest movers in the 100 Best Corporate Citizens List.

By The Edtiors

As with all of our Best Corporate Citizens lists, we use the same methodology for the Most Improved Corporate Citizens list as we do for the 100 Best Corporate Citizens list with some additional data analysis. (Visit www.thecro.com/content/cr-magazine-corporate-citizenship-lists-methodology for a full description of our methodology.) The Best Corporate Citizens database comprises publicly-available data from Russell 1000 companies collected and analyzed by IW Financial, a Portland, Maine-based financial analysis firm serving the ESG (Environment, Social, Governance) investment community.

For the Most Improved Corporate Citizens list, we identify all companies in the top half of the Russell 1000 (this is in order to establish a starting set of companies that have achieved at least a minimal level of performance) that have been listed in the Russell 1000 for two years.

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From Spare Change to Real Change

How IBM’s corporate service corps solves problems, grows leaders, and builds markets.

By Stanley Litow

Corporate responsibility has its beginnings in philanthropy, which in America has a long history. It began in earnest with individuals of great wealth, such as Henry Ford, John D. Rockefeller and Andrew Carnegie. They amassed outsized fortunes through their business activities and then used that wealth to create foundations to distribute large amounts of cash directed at specific issues they were interested in. Carnegie’s activities in support of public libraries are an example. The philanthropy of these individuals, which has survived for more than a century, is now complemented by Bill Gates and other individuals of great wealth. Foundations funded by great personal wealth can be transformative by providing needed support to worthy causes. But the tradition of amassing personal wealth and then distributing it through foundations seldom has involved incorporating a culture of citizenship and service into business practices.

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The Other End Of the Telescope

Forget the business case for sustainability. What’s the sustainability case for business?

By Mark W. McElroy and Jo van Engelen

The question is often asked: Is there a business case for sustainability? It should be clear that a company’s business interests can be well served by strong non-financial, or sustainability, performance, since such performance can generally help mitigate and/or avoid risks and thereby increase a company’s profitability and longevity. So, rather than ask if there is a business case for sustainability, the more interesting question to us is: Is there a sustainability case for business?

In other words, instead of presupposing the need for a financial justification in order for corporate sustainability management (CSM) to be legitimate, let us consider the opposite. Can the pursuit of financial goals by a business be legitimate if its social and environmental impacts are chronically unsustainable? Further, can businesses collectively, or the economy as a whole, be legitimate if their social and environmental impacts are, in the aggregate, unsustainable? We don’t think so.

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Consider the Source

As CR programs mature, they must constantly refine focus beyond their own companies.

By Kenzie Ferguson

As more companies embrace socially important values, principles, and guidelines, they are requiring suppliers to comply with their standards. They are developing supplier social responsibility programs to clarify expectations and requirements. Many companies recognize that they are inextricably linked with their suppliers in the eyes of customers, shareholders, media, and other stakeholders.

If an issue arises with a supplier that reflects negatively on a company, the company is put in a difficult position. The company must protect its reputation, find the root cause, and face any financial and legal consequences. The potential for problems has grown as supply chains have become more global and complex, and the demands for corporate responsibility and transparency have risen.

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The Public-Private Grid

A new perspective on connected cities, smart buildings, and the triple bottom line.

By Michael Jordan

When you look at a skyline, do you see a city, or do you see a collection of privately owned structures? It’s a trick question, since the answer is both. You can’t create a sustainable, energy-efficient city without addressing both the whole (the primary concern of the public sector) and its parts (the privately owned real estate within).

Increasingly, the private sector and the public sector are developing technology and making infrastructure investments that cross-pollinate one another for mutually beneficial results. Nowhere is this more true than at the intersection of publicly funded power infrastructure and privately managed corporate real estate.

Smart grid investments from the public sector cannot reach their highest potential without private sector investment in building automation programs that optimize smart meter technology.

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The Second Responders

How—and why—business is uniquely positioned to help with long-term disaster relief.

By Richard Crespin

When you compare before and after photos from Hurricanes Rita or Katrina or the tornado in Joplin, MO, it looks like God took out His eraser and wiped the slate clean. Whatever was there before is just gone. Touring the zones impacted by Superstorm Sandy, as I did in January with a business delegation led by the US Chamber of Commerce Foundation’s Business Civic Leadership Center (BCLC), reveals a different scene. As we’d pull in to different communities, the telltale signs weren’t there. No huge tracts of destroyed houses. No big piles of rubble. No high water marks on houses and buildings.

I’d often find myself saying, “Oh, this isn’t so bad,” until we actually went inside of homes or talked to people.

“When we first came in [after the storm], it was still dark.

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Supply Chain Champions

A joint commitment to advance a vital community of practice.

By Richard Crespin

Imagine that the next time you need to upgrade your sustainable supply chain management practices you could download dozens of proven examples from the world’s best companies for free. Now stop imagining because you can. Or can soon.

Last year, with the help of the Corporate Responsibility Officers Association (CROA), the White House Council on Environmental Quality (CEQ) and the United States General Services Administration (GSA) launched a Sustainable Supply Chain Community of Practice (CoP) on data.gov. Anyone can go online and share proven practices, tools, procedures, and other source documents and anyone can download them. Searchable both by industry as well as practice, the CoP looks to provide everything from a starter-kit for the novice to advance data resource for the expert.

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Vox Clorox

Whether her workforces are doing finance, tech, or consumer goods, Jackie Kane has their number.

By Dirk Olin

Jacqueline (“Jackie”) Kane has been a senior vice president of human resources at Clorox Company since April 2004 and its senior vice president of corporate affairs since January 2005. Kane oversees all aspects of HR for Clorox worldwide.

She brings deep experience. She served as vice president of executive leadership and human resources for corporate functions at Hewlett-Packard (HP) from 2000 to 2004, where she was responsible for assessing and developing its most senior leaders and delivering HR services and support to its corporate functions. She also led the organization design and strategic change management for the HP-Compaq integration.

Before HP, Kane served for 22 years in HR within the financial services industry. She began her career in Chicago at Continental Bank in 1978, which was later acquired by Bank of America.

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A generation ago, activists targeted apartheid. Their heirs have their sights on carbon.

By R. Paul Herman and Zhaoqi Fu

As a chief executive, board member, or manager, you are intensely focused on your shareholders and their needs. You seek growth in profits, cash flow, and the resulting shareholder value. But what is your shareholder loyalty and retention? For firms with unsustainable business models, long-time marriages with shareholders are becoming a rocky relationship—and risking a speedy divorce.

Last summer, Bill McKibben’s feature in The Rolling Stone magazine spurred an energized multi-city bus tour of cities and college campuses across the United States that has led to a divestment campaign focused on opposing the fossil fuel industry. (Visit http://math.350.org/). And the campaign is growing. College students in more than 190 universities are calling for removing fossil fuel companies from their university’s endowment funds.

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