CEO Forum: Corporate Responsibility During a Downturn
Leaders from nine of the world’s top companies discuss their commitment to corporate citizenship.
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There are two broad reasons to maintain corporate responsibility in tough times: a belief that good citizenship is the right way to behave and an equally important belief that behaving the right way is a good thing for our business. At Xerox it is as simple as that and leaves little room for debate — in any economic environment. This commitment is reflected in many ways, perhaps most strongly through our long–standing sustainability initiatives. It isn’t a question of why citizenship is important, but a question of why in the world it wouldn’t be.
Downturns as severe as the current recession force many companies to confront extremely tough business decisions. It’s at these “moments of truth” that customers, employees, investors, policymakers and others are watching closely to see that your actions match your stated values and commitments on issues of corporate social responsibility. The stakes are high. But farsighted companies will recognize these times as a great opportunity to show leadership, build their reputational capital and create stronger bonds with their stakeholders.
Corporate social responsibility is a constant and not a function of the economy. Heinz is committed to the consumers we serve, the communities we operate in and the environment we all depend on. We have been a good corporate citizen for 140 years and are focused on enhancing the quality of people’s lives regardless of economic cycles. Heinz is working to achieve a 20 percent reduction by 2015 in greenhouse–gas emissions, as well as solid waste, water and energy consumption. Heinz is also combating malnutrition through a program that has already provided free micronutrient supplements to more than 2.6 million children.
The obligation for corporations to be socially responsible is both fundamental and long term. During financial and societal crises, needs increase; therefore, now more than ever, we must continue to make investments that serve people who are in need of our assistance as well as investments that benefit the environment. An example of BD’s commitment is our new program, in partnership with Direct Relief International, to provide free diabetes insulin–injection products to Americans who need help in this economic downturn.
The world is mired in a recession that affects us all. No one is immune. But while the world is changing, our values and commitment to operate in a responsible manner have not. Chevron has been in business for 130 years, through 13 major recessions. We’ve succeeded largely because we stay focused on our values: producing energy safely, investing in communities, creating jobs and supporting local suppliers. It’s important for our customers, business partners and neighbors to know we can be counted on in good times and bad. This way we help each other prosper in the long term.
When the economy produces lemons, greater attention is paid to whether companies make lemonade. Financial performance is important, obviously, but we see corporate responsibility as being especially important in tough economic times. For example, with their tighter budgets, our schools need help. So we committed $36 million — a record —through Box Tops for Education this year. We’re also committed even more strongly to sustainability leadership. Corporate social responsibility is part of General Mills’ mission. We’re not only nourishing lives but also nourishing communities and nourishing the future. Living that mission is only more important when times are tough.
In a difficult economy, when every aspect of our business is under scrutiny, some might ask whether we can afford to focus on sustainability. To that I respond: Can we afford not to? Sustainability — operating our business in a way that is good for people, the planet and profits — is, in my opinion, no longer optional. It is the strategic and decision–making approach we are following at Duke Energy to create long–term value.
Tough times have a way of revealing what you really believe. Verizon has continued to invest in technology during the downturn because we believe our future growth depends on it. Similarly, our corporate responsibility strategy recognizes the link between business value and social value. That’s why we are focused on using our broadband and wireless communications networks to build a better workforce, create economic growth and address big social issues such as health care, education, energy efficiency and public safety. This not only strengthens our society, it also builds new markets and positions Verizon for growth as the economy recovers.
The importance of safety, health, human rights, environmental performance, economic development and ethical behavior does not diminish during challenging economic times — and neither should a company’s commitment to these enduring priorities of corporate citizenship. The long–term viability of a business enterprise is grounded in making this commitment. Successful companies understand that business performance and corporate citizenship are interlinked, and invest in both good times and bad. Exxon Mobil’s disciplined and balanced approach to corporate citizenship ensures that we can help move our global economy from recession to recovery while continuing to meet the world’s growing energy needs in a responsible manner.
