The Secret to Moving Beyond Your CSR Report

Published March 01, 2010

[Editor's Note: This the second post in a three-part series about how corporate transparency can reshape business. Part I details the value of transparency as an investment. Part III, focuses on the unintended consequences of increased corporate transparency.]

More than a few executives at Toyota are wringing their hands, wondering how a name associated with quality and control is now found in the same sentence as "congressional hearing," "subpoena” and "withholding evidence.”

Their plight has not gone unnoticed at other companies.

So if a CFO does step forward and commit just 10 percent of the cost of a Super Bowl advertisement (a 30-second spot cost about $2.4 million this year) to improve transparency in her company, what does that even mean?

It means first figuring out what you know, and what you need to know, while not getting stuck in a Donald Rumsfeld vortex of circular referencing. Sure, you currently know enough to run a good business and meet reporting requirements, but that is no longer sufficient for your license to operate.

For many businesses, your license is now provided more so by customers than governments. And the one-way mirror that is the Internet, a manic news cycle and a global, networked consumer base can make renewing that license more difficult by the day. Internal, detailed knowledge of the inner plumbing of your company is an asset with a value rivaling most on your balance sheet.

Knowing requires people, typically from multiple departments, a wall-sized map of the world and posters of your value chain and product lines. Complex databases can come later. A quick inventory will highlight current success meeting federal or private regulation, regional initiatives detailing supplier or product data, and third party certifications and partnerships.

What you need to know is where the gaps are -- opaque portions of your supply chain, new businesses or acquisitions, and operations in areas where governance takes a back seat to survival.

If the National Highway Traffic Safety Administration missed the beat on Toyota, and the SEC could not spot the sun through a telescope at noon, don't expect underpaid bureaucrats in small, one-party "democracies" to call out your weakest link.

London's race for a greener Olympics With just weeks to go, London is hustling to deliver on its pledge to make the 2012 Summer Games the greenest ever.	What puts companies on top of the Sustainability Leadership list? The recently released list from GlobeScan and SustainAbility shows not necessarily which companies are best at integrating sustainability into business, but does highlight the gaps between performance and recognition.
Global customers buy brands that mix purpose with profit Do consumers in emerging economies spend more responsibly? Those consumers seem to be doing the most to reward businesses that support societal causes, according to a recent survey.	The resource crisis: Closer to the edge Over the past 10 years more corporations have realized that optimizing energy use is not only good for business, it's essential.
Nike innovates its way to zero toxic discharges Nike’s new sustainability report highlights how the sporting goods giant is pushing innovation in both its products and supply chain.	Granola: Seeding the cloud for PC power management The latest iteration of software that measures the energy and carbon of laptops, desktops and even the data center aims to democratize IT energy savings by bringing costs down to earth while putting energy data in the cloud....
M&A: How to find a sustainability strategy that works When companies with very different sustainability approaches come together, how can they make sure their efforts remain intact? Employee involvement is key in creating a sustainability strategy after a new merger....	Younger generation of entrepreneurs speaks out on green At last week's GoGreen 2012 conference in Seattle, up-and-coming entrepreneurs showcased how the young and hip are using business to drive sustainability while creating like-minded communities....

Blogs

The Secret to Moving Beyond Your CSR Report

VERGE London