Chris asked me for my reference/link to the global survey I mentioned yesterday. After reviewing my notes from a book tour lecture in May 2004, I discovered it was Morgan Stanley, not Goldman Sachs that surveyed 602 multinationals, 2000-2003, finding that those with value-based principles which include corporate social responsibility and/or sustainability operating principles, performed 23.4% better than those operating on the traditional ‘quick profit’ motive.

 

From my rough notes of a book tour lecture by Jeffrey Hollender* promoting his book, What Matters Most;

Businesses have 5 key reasons to reassess their corporate values:

1.      the cost of doing the wrong thing. 75% of assets are intangibles; must protect brand image. Eg. Chiquita

2.      the speed of finding out how biz runs today via technology argues for transparency

3.      insurance companies require more than annual reports to base financial risks

4.      proxy statements. Eg. 80% of Gillette stockholders voted against management

5.      holistic view of investing pensions. Eg. Calpers, a $250B pension fund. See Angeles interview in Forbes Jan 04…”wealth concentration/gap is declining for biz”

 

2000-2003: Morgan Stanley studied 602 globals; the top 186 had the most value-based ethicals, performed 23.4% better than those without value-based operating principles.

 

§         Lynn Charpaine: Value-Shift.

§         Ecologist magazine (insurance co’s know)

 

In 2003, N&O performed 43% better than traditional biz in all sectors.

Employee loyalty 25-100% increase; Increased productivity earnings.

 

Case studies

1.      Chiquita today. Saved $100 M in 2003 by reducing toxic chemicals. Since filing for bankruptcy, improved employee benefits and their bottom line.

2.      HP backed recycling fees in Calif. as a brand protection

3.      Seventh Generation is the 5th fastest growing company in VT.

  • Internal culture is the hardest and least transparent. Check company turnovers: Values Screen w/ new hires and 360 degree review.
  • Key results objectives: personal growth metrics attached to bonuses; community involvement values are also graded.
  • Communication Gap survey
  • Values Committee

 

* Hollender is President of Seventh Generation, an organics household supply company which has breached the chain supermarket barrier, now selling in major grocery stores and Target. One interesting story I remember he told was that when they wanted to sell unbleached disposable diapers, they had to get the paper processed in Germany because there were no US plants that could process without bleaching. I hope that has changed by now.

 

What Matters Most: Resources http://www.whatmattersmost.biz/

Seventh Generation http://www.seventhgeneration.com/

 

Related

The Future 500 http://www.future500.org/custom/27

Goldman Sachs re: environmental and social issues http://www.banktrack.org/?show=news&id=34

 

Other

These 4 are founders/advisors to BALLE, Business Alliance for Local Living Economies and I’ve had the pleasure of meeting each one.

David Korten, When Corporations Rule the World and the new one due May 2006 http://www.davidkorten.org/

Judy Wicks, White Dog Café Enterprises, #9 on Inc’s 2004 Top 25 Entrepreneurs http://www.whitedog.com/judybio.html and

 http://www.inc.com/magazine/20040401/25wicks.html

Michael Shuman Going Local http://www.livinginportland.org/opening.htm and http://www.thenation.com/directory/bios/michael_h_shuman

Stacy Mitchell: Hometown Advantage/ New Rules Project http://www.newrules.org/retail/

 

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