Vol. 4 No. 6 – November/December 2013

Good Business, Great Leaders

The winners of our annual CEO of the Year awards.

By The Editors

At the close of the 2013 COMMIT!Forum, CR Magazine hosted its annual CEO of the Year awards dinner. Each year the magazine calls for nominations of CEOs who have aligned their organization’s interests with that of thousands of stakeholders—to do well by doing good. These leaders were selected among an exceptional group of nominees.

Each award recognizes their leadership in corporate responsibility and acknowledges the effectiveness of their efforts.

This year's CEO of the Year Winners are:

Marillyn A. Hewson
CEO and President Lockheed Martin

When Marillyn Hewson was put in charge of corporate shared services for Lockheed Martin—which included environmental, health and safety, HR, financial functions, and supply chain management—she realized people want to work for a company where they can make a difference.

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What I Saw at the COMMIT!Forum

Editor's Letter

Bill Hatton, Editorial Director

I am the new editor of this magazine. The COMMIT!Forum in New York served as my introduction to the job. There was too much to recount with justice, but some highlights include:

1. The spontaneous standing ovation at the conclusion of MGM’s Inspiring Our World presentation (see more on page 8). MGM employees delivered a series of dramatized monologues, structured as, “You may see this (various stereotypes) ... but the reality is (counter-stereotypical factual background).” It no doubt reminded the audience that everyone is fighting a battle of some kind, has a backstory that includes suffering, and that how we appear on the surface is not always what is going on beneath. Everyone can identify with such struggles and the ongoing need to see people as individuals, not merely as an instantiation of a stereotypical group; thus, the enthusiastic reaction.

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C-Suite Commitment at COMMIT!Forum

CEO's Letter

Elliot H. Clark, CEO

In 2012 we conducted the bi-annual Corporate Responsibility Best Practices survey in collaboration with the New York Stock Exchange. What did we discover? We found a way to quantify what we already knew: Leadership is critical to the success of any program or initiative. Leadership wins.

What does leadership mean to the average corporate responsibility department? The correlation between the internal perception of success, the size of the program, the ability to measure business outcomes, and the budget commitment all converged on a single question: How many times a year does the CR leadership team meet with the CEO?

We all knew that CEO involvement was critical to the success of anything that happens within the walls of any large company. However, the study confirmed how important it was to CR. And the study helped us quantify impact.

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Spectacle of Inspiration

A celebration of diversity by MGM that looks squarely at stereotypes—then blows them sky high.

By Dirk Olin

The 2013 COMMIT!Forum opened with a bang. Andre Barry, vice president of diversity and inclusion for the MGM Resorts International, served as emcee for an opening act that brought the house down.

The musical performance, called Inspiring Our World, was a recreation of the same one used by the company for its 62,000 employees worldwide. It was genuinely thrilling and tear-jerking.

“We truly believe if we are going to successful as an organization then everyone needs to be on the same page when it comes to our companies mission, vision, and values,” said Barry. Invoking the South African greeting of “Sawa Bona,” he explained that its rough translation is, “I see you.”

The implications, he added, were plain: “We invoke each other’s potential by our willingness to see the essence in the person.

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Inspiring and Engaging

CEOs and policy makers share best practices to tackle tough challenges.

By The Editors

As a concept, corporate responsibility casts a wide net. It encompasses anything from supply chain management to green accounting, environmental protection to employee engagement, risk management to community engagement. Tackling such a wide range of CR practices requires innovative thinking and a willingness to seek answers to tough questions.

The 2013 COMMIT!Forum enlisted CEOs, senior executives, policy makers, and CROs from a variety of industries to take on those challenges. These execs came together and shared their ideas, stories, and best practices on how corporate responsibility helped them build business value, reduce risk, improve their communities, and protect the commons.

In this special section, CR Magazine offers some of the highlights shared by our speakers, honorees, and attendees.

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The Bigger Picture

MGM CEO James Murren on being part of something greater.

By The Editors

MGM Chairman and CEO James Murren received CR Magazine’s 2013 Responsible CEO of the Year award. He spoke onstage with CR’s CEO Elliot Clark during the 2013 COMMIT!Forum.

Elliot Clark: Jim, thank you for taking part in the 2013 Commit Forum. I want to give you a little bit about Jim’s bio. Jim grew up in Fairfield, Connecticut. He received his undergraduate degree at Trinity College, where he studied art history and urban planning. Then he went to work on Wall Street as a security analyst. He became a charter financial analyst in 1991, and was later elected to his firm’s board of directors: So a very successful career in Wall Street as a financial analyst.

He was working on the MGM Grand recapitalization when they recruited him into the company in 1998 as the CFO of MGM. He became Chief Operating Officer in 2007, and then chairman and CEO in 2008.

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C-Suite Music

Excerpts from a powerhouse lineup of chief executives providing clarity on pressing questions of corporate responsibility.

By The Editors

Participants:
Natalie Allen, Anchor/Correspondent CNN International; Dan Hesse, CEO Sprint; Daryl Brewster, Chief Executive Officer CECP; Patrick Prevost, President and CEO, Cabot Corporation; Stuart Thorn, President and CEO Southwire

Allen: I’m going to start with Dan with Sprint because you’ve done so much with this company after being with AT&T for a couple decades.

Hesse: Why’d you have to mention that?

Allen: Ha, ha, sorry we’ve all been around for a few decades up here on this panel. But I want to start talking to all of you about innovation. And when you arrive at some place, you’ve all been other places, and you’re well known.

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Frack to the Future

Is a drop in carbon emissions worth the risk?

By Nick Sorrentino

Future 500 was pleased to convene a panel at this year’s COMMIT!Forum entitled Groundbreaking: The Risks and Opportunities of Hydraulic Fracturing.

Hydraulic fracturing is the breaking up of rock through the use of pressurized liquid. Although fractures can happen naturally, induced hydraulic fracturing or hydrofracturing (commonly known as fracking) is a technique in which water is mixed with sand and chemicals, and the mixture is injected at high pressure into a wellbore to create small fractures (we’re talking less than one millimeter), along which gas and brine water can migrate to the well.

As director of political outreach for Future 500, I had succeeded in drawing together an experienced assemblage of thought leaders: Tisha Conoly Schuller, president & chief executive officer of the Colorado Oil & Gas Association, Dr. Richard Liroff, founder and executive director of the Investor Environmental Health Network, and Alan Krupnick, senior fellow and director of the Center for Energy Economics and Policy at Resources for the Future.

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