Just say “Nyet!”

Maybe not that easy, but Brook Horowitz from the International Business Leaders Forum has an interesting column in the IHT last week that seems to support some ideas I shared related to David Collier’s chapter on the role of multinationals adhering to voluntary standards (I plug this often as it is an idea I really support). Horowitz wrote:

Multinationals such as Nestlé with 13 production companies in Russia insist on international labor, health and safety standards from local suppliers. Indeed the fact that multinationals can operate according to the standards in their home markets provides a powerful statement to local business.

If this is applicable in Russia, it should be applicable in most transitioning and emerging markets. I do not think either Horowitz or Collier assume one company following a set of standards changes a country overnight, but it does, hopefully, keep the process moving in the right direction.

No Retreat for Sustainable Banking

I just caught up with the recent special report on “sustainable banking” in the Financial Times and found it very encouraging. It highlights what we like to believe – there are some in the world of money making who still see a competitive advantage in taking sustainability seriously.

I was pleased to hear the IFC is seeking to develop a set of guidelines similar to the Equator Principles that will help add a bit of consistency to the microfinance industry. The topics of transparency being a tool to help the poor comes up in more than a few articles.  This is a tricky topic as incentives to keep customers in the dark has been a part of sub-prime loan crisis and other predatory lending. More and more people seem to be seeing this is a problem and that financial literacy is something that is a part of sustainable finance and sustainability in general.

Extractive Industries Improving Lives?

I have posted before about Paul Collier’s Bottom Billion. Via The Next Billion blog, I found a great video with Collier speaking about countries that the bottom billion and the importance of governance. He lays out some very convincing ideas about “voluntary” initiatives, including the Extractive Industries Transparency Initiative. He uses the example of EITI in Nigeria, which seems very persuasive though this needs to be confirmed with evidence.

The video is worth watching all the way through. I especially like his comment on the importance communication. While the comments on the video led me to a harsh critique of the book by an economist I respect, I am very convinced by the role of helping reformers through voluntary principles and international standards.

Exceptional Corporate Responsibility

IBM is starting its Corporate Service Corps, a private sector “Peace Corps“, that I really appreciate. This isn’t the same as IBM sending people to mix cement or do manual labor, which I have seen some companies do. Instead, it sends people do apply the skills in which they excel.

“It’s a corporate version of the Peace Corps,” said Stanley S. Litow, vice-president of corporate citizenship and corporate affairs, IBM. “What we as a company get is leaders with a broader range of skills that can function in a global context. What the individual participant gets is a unique set of leadership opportunities and development experiences. And what communities get are IBM’s best problem solving skills. It’s a triple benefit.”

Simple, profound and an idea that could be applied in many sectors! I really value hoe IBM recognizes that the people it sends are giving something back to the company.

The Ethical Shopping to Come?

Does being ethical pay? It appears so according to a recent Wall Street Journal insight.
On this topic, it was interesting to see how Patagonia, the outdoor gear company, was giving a look into some of its environmental impacts in what it calls The Footprint Chronicles. This allows you to see four indicators for a selection of products: distance traveled, CO2 emissions, waste generated and energy consumption.

Obviously, there is no way to compare with similar products or really look behind the calculations, but it seems like it will only be a matter of time.

They issue their own caveat:

These examinations are partial and preliminary. Each season we’ll examine a few new products. As we learn more, our examinations will gain more focus, and we’ll work to change our harmful practices with all the speed we can muster.

Very exciting and hope to see how others develop this idea, especially in other sectors.