Vol. 8 No. 1 – January/February 2017

Putting Capital In Communities

Screen Shot 2017-02-06 at 11.02.38 AM Non-profit CEO Terri Ludwig unlocks potential in underserved areas through impact investments. by Elliot Clark Prioritizing corporate responsibility can mean creating hiring diversity initiatives or reducing a company's carbon footprint, but for some, it radically reshapes the way they do business. Case in point: Terri Ludwig. This financial aficionado and president and CEO of Enterprise Community Partners decided to use her Wall Street smarts to give back to underprivileged communities through investments in low-income housing. As a result of her efforts, she won the 2015 Responsible CEO of the Year Award at the COMMIT! Forum in October 2015. Here, she discusses the reality of poverty in America, her 15 years in the community investment market, and what she's doing to reach her goal of housing 1 million low-income families by 2020. Elliot Clark: You started life in southern Illinois but now you're in the Big Apple. And you went from investment banking, which is usually perceived as sort of a heartless business in many respects, to low income housing community investment.

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Shining Bright

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By The Editors

Our annual spotlight on the best of the best providers and practitioners in corporate responsibility. While strong leadership is an essential trait for executives in corporate responsibility, demonstrating this attribute while performing important tasks, practicing sustainable habits, contributing to the company's bottom line, and driving others to perform exceptionally is worth acknowledgement. CR Magazine honors those who demonstrate a superior dedication to CR that is evident in every aspect of their daily lives. The CR Superstar is someone who lives and breathes sustainability and encourages everyone around them to participate in creating a better business environment. This is our annual list of outstanding CR thought leaders—successful individuals who were nominated by their industry peers, CR Magazine staff, and the Corporate Responsibility Association for their groundbreaking ideas, high-level thinking, and impressive leadership.

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Brand Action

shutterstock_233674759 The role and responsibility of companies, communicators, and citizens, according to Starbucks. By Corey duBrowa Today, more than ever, customers care about a brand's actions and what that brand stands for. Edelman's 2016 Trust Barometer found that 50 percent of respondents have lost trust in businesses because of their lack of contributions to "society's greater good," and 62 percent of earned brand respondents said they will not buy from a brand that fails to meet its societal obligations. It's clear that corporate responsibility initiatives can no longer be second tier priorities; they must be core to the business. Starbucks chairman and CEO, Howard Schultz, posed the following question at the company's annual meeting of shareholders last year: "What is the role and responsibility of a public, for-profit company?" At this year's meeting, he asked a new question: "What is the role and responsibility of all of us, as citizens?" Schultz often speaks about the importance of "leading through the lens of humanity.

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Acing Philanthropy Goals

Screen Shot 2017-02-02 at 4.23.57 PM By The Editors Ace Hardware Foundation's president talks charity initiatives and how other businesses can follow their lead. When it comes to serving communities on a global scale, Kane Calamari understands the value of entrepreneurship and creating unique buyer experiences. /4s president of the Ace Hardware Foundation, and vice president of human resources, organizational development, and communications at Ace Hardware, Calamari oversees the world's largest hardware cooperative. The "cooperative" designation means that more than 4,800 of Ace's stores are locally owned and operated by entrepreneurs all across the globe. The organization hopes that this business model will bring added value to communities and allow each store to give back through local, philanthropic initiatives. Companies are increasingly becoming more aware of how important giving is. According to the National Philanthropic Trust, corporate giving in 2015 increased to $18.46 billion—a 3. 9 percent increase from 2014.

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Liquid Laws

Liquid Laws
America's New Clean Water Rule affects business—what companies can do to mitigate the legislation successfully. By Marta Chmielowicz America's New Clean Water Rule affects business—what companies can do to mitigate the legislation successfully. Clean water is in abundance in the U.S. today, but that was not always the case. As recently as 45 years ago, U. S. rivers were so polluted that they were catching fire, Lake Erie was deemed "dead," and only 60 percent of drinking water met safety standards. The Clean Water Act (CWA) dramatically improved this situation, reducing the number of polluted waterways in the U.S. from more than 60 percent in 1972 to 35 percent in 2012. But according to the Environmental Protection Agency's (EPA) most recent National Water Quality Inventory, the work is far from over. Of the total miles of water formally assessed, 55 percent of rivers, 71 percent of lakes, and 78 percent of shorelines were reported to be in poor condition—unfit for swimming, drinking, or fishing. Enter the Clean Water Rule, or Waters of the United States (WOTUS) rule. By reaffirming the connected nature of waterways and reducing ambiguity around the extent of the EPA's jurisdiction, the rule seeks to address some of the main limitations of the CWA.

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Higher Impact Portfolios Can Outperform

Screen Shot 2017-02-02 at 3.41.19 PM By R. Paul Herman Solving human and environmental problems with investment portfolios builds a better world—and can yield higher income and profits too. Would a responsible executive purposefully invest their retirement money to underpay people, destroy nature, or foster corruption? Today's business world can be quite volatile, and if people choose to operate in this way— intentionally or not—their portfolios might not survive. Alternatively, why not intentionally invest retirement in companies that pay a fair wage, efficiently use natural resources and replenish them, and act transparently in balance with all of society? A retirement fund can help build a better world and—as real-world evidence and academic studies show—bear greater financial rewards. Investing for impact is a compelling theme—one that garners 21 percent market share as of 2016, and represents nearly $9 trillion of invested assets, according to the U.S. Sustainable Investing Foundation.

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Accounting For Responsibility

shutterstock_155672351 By Dirk Olin At PwC, purpose puts in X to get why. Megan DiSciullo is the markets, sectors, and firm-wide PR leader for PricewaterhouseCoopers. She recently shared a vivid memory of sitting in an ethics class at Georgetown business school, discussing Milton Friedman's argument that business does not have a responsibility beyond delivering returns to shareholders. There was a raucous debate, and it was then that she decided to pursue a career in corporate responsibility. In 2005, she started at Fleishman Hillard on their social impact practice, working with many non-profits on impact communications. After that, she moved to Edelman to help jumpstart its new CR and sustainability practice. This was on the heels of Hurricane Katrina, which revealed new levels of corporate responsiveness. The generosity and outreach of the corporate community helped catalyze a shift in sentiment. Suddenly, people realized the power of business to positively impact society in a meaningful way—beyond just dollars—through their core products, services, and expertise.

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Special Delivery

Special Delivery

FedEx and UPS on why CR is so important to their business—here is a look at their sustainable initiatives by the numbers. By The Editors FedEx and UPS on why CR is so important to their business—here is a look at their sustainable initiatives by the numbers. Sustainability is extremely important in the shipping industry. Millions of packages are delivered every day in the U.S.—and logistics and transportation industry spending totaled $1.48 trillion in 2015, representing eight percent of the annual gross domestic product. Maintaining sustainable shipping practices benefits not only the environment, but the bottom line of the delivery service corporations themselves. CR Magazine spoke with Mitch Jackson, vice president of environmental affairs and sustainability at FedEx, and Tamara Barker, chief sustainability officer at UPS, about their sustainability efforts —and we compare their answers head-to-head in this look at shipping practices. History of the Company Corporate Responsibility Program FedEx and UPS discuss how each of the companies have supported their communities, improved their impact on the environment, and created sustainability initiatives.

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The Fabric Of Responsibility

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By Dirk Olin
At PVH, CR is a lot more complicated than altruism. One of the defining traits of effective CR programs is that they take broader business objectives and translate them into real assurances. This is definitely true of Phillips Van Heusen's CR efforts, as the company lists "accountability" as a core value, and strives for transparency whenever possible. The company's treasurer and senior vice president for business development and investor relations, Dana Perlman, spoke with CR Magazine about PVH's core values, "source-to-store" approach, corporate storytelling, and commitments to humanitarian and environmental responsibility. At PVH, the corporate responsibility team takes its direction for CR storytelling from chairman and CEO, Manny Chirico. The team often cites Chirico's directive that they need to emphasize the importance of understanding the company's impact on people. Environment, and communities. Chirico, they say, grew up understanding that charity and the giving of oneself were very important—that, "to whom much is given, much is expected.

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Executive Director’s Report: Supply Chain Security

allie I do not think that phrase means what you think it means One of the recent buzzwords I heard at a conference I recently attended is the concept of "supply chain" security. That is, the need to secure data, applications, and connections not only within your enterprise, but also throughout the supply chain, which is responsible for your goods and services. It comes from the concept that your security is only as good as your weakest link, and your vendors, suppliers, and other third parties are likely to be among your weakest links. So it's important that you secure your supply chain. No arguments here. But which supply chain? Everybody has their own definition of supply chain, and they are all mostly accurate, but completely different. Take a medium-sized company that assembles widgets in New Jersey from parts made globally, and then exports those widgets worldwide. What is their supply chain? Certainly you can look at the vendors and suppliers who make the component parts that physically go into the assembled widget (the sub-widgets).

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