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How to embed sustainability into the business enterprise

Posted on May 15th, 2012 by

For consumer products companies like Avon, there is often a quick assumption that sustainability will focus on the products themselves – products that are green, organic, natural or similar designations.  But at Avon, and many peer companies, the sustainability imperative is embedded organically (no pun!) into the business enterprise, with a commitment to identify and leverage sustainable opportunities in the processes required to develop, create and deliver products to the consumer.

Historically these processes have been invisible to the stakeholder, but with the increased demand for transparency and disclosure, companies have a greater opportunity to showcase meaningful commitments – a silver lining in the sometimes cloudy sky of reporting, rankings and ratings.  And, along the way, the thousands of employees who bring the sustainability commitment to life, from environmental engineers to marketers, are elevated to playing a role in a larger mission, not just “doing their jobs.”

In developing policies and processes for sustainability, Avon has a unique asset: one of the original principles upon which Avon was founded in 1886 is a commitment to “meet fully the obligations of corporate citizenship by contributing to the well-being of society and the environment in which it functions.”  Today, 126 years later, many of our 40,000 worldwide associates are passionately committed to ensuring this commitment is met

In the commitment to being internally authentic, companies face many possible environmental areas to tackle. When the lens of materiality is applied – is it meaningful to the company, the stakeholders, and the planet, and can the company have an impact – certain opportunities rise to the top.

For Avon, as a direct seller, paper usage is among our largest environmental impacts and we are in a position to influence supply and demand. Therefore, a core mission is to help end deforestation, and the Avon Paper Promise outlines specific metrics and goals for paper reduction and sourcing.  Similarly, the global Hello Green Tomorrow program focuses on mobilization, education and fundraising to help restore critically endangered rain forests, with more than $3.5 million raised in its first two years.

While we don’t have traditional stores, Avon has more than 1 million square feet of real estate.  Our Avon Green Building Promise commits us to LEED certification (or local equivalent) for all new or major retrofits.  We have achieved Gold or higher certification in two facilities in the United States, including our New York City headquarters, and significant facilities in Brazil, China, Colombia and the United Kingdom.  The Avon Colombia “Eco Branch” is the first building in the nation to achieve LEED Gold, which helps advance sustainable construction in that country.

In another case of leading by example, the Avon Palm Oil Promise lays out guidelines to help drive sustainable palm oil, which is a leading cause of deforestation in Indonesia. While more than 80 percent of palm oil is for foods, and Avon is a very minor player, we can lend our name and be a leader within our industry for this issue even if our physical influence is minimal.

This is not to say we do not assess sustainability in our products. There is a “Green Team” at Avon R&D, where new concepts, ingredients and products are developed, and the company works closely with raw material suppliers to stay abreast of the latest trends and improvements in product sourcing and ingredients.

For packaging, the Avon team seeks to limit the amount and type of materials.  As an example, there is a savings of raw materials through “light weighting” plastics.  Also, because Avon is a direct seller, we are already minimal in much of our packaging since we do not have to display on retail shelves.

For now, our core commitment is to ensure we are sustainable in the way we run our daily operations around the world. In addition to the policies on paper, buildings, and palm oil, we have goals and commitments for the “nuts and bolts” of our business.  In 2011 Avon manufacturing and distribution facilities had a nearly 80 percent recycling rate, and our manufacturing achieved a 27 percent absolute reduction in water consumption, 11 percent absolute reduction in energy and 23 percent absolute greenhouse gas emissions reduction (from 2005 Avon baseline).

I once read an anecdote that reflects what it is to work on sustainability within a “traditional” business framework.  Three stonemasons toiled away on a cathedral in medieval France.  The first, unhappy at his job, complained that he had to cut endless blocks of stone every day. The second, satisfied with his job, noted that his work allowed him to provide for his family.  The third, delighted with his job, believed his work was a privilege because he was a small part of a grand project that would benefit generations to come.  If we do our jobs right, we can be, too.

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Using corporate responsibility to mind the talent gap

Posted on February 10th, 2012 by

 

Shannon SchuylerNews headlines across the world remain focused on record joblessness and struggling economies. A deeper story, however, lies in the scarcity of talent facing corporate America. Today’s workers simply don’t have the skills employers need.

PwC’s recently released 2012 Global CEO Survey found that almost 60 percent of U.S. CEOs planning to hire this year believe it won’t be easy to find the right people. (And this despite a jobless rate that’s hovered in the 9 percent range for months in the U.S.)

Almost a quarter of the U.S. CEOs confirm they were unable to pursue a market opportunity and another fifth were unable to innovate effectively because of talent constraints. Eighty-four percent of these CEOs are making direct investments in workforce development, but these measures alone aren’t enough. Most people consider hiring and retaining the right people a human resources issue, but I and others in the corporate responsibility (CR) community consider recruitment and retention inextricably linked to our field.

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Leveraging Reporting as a Management and Communication Tool

Posted on January 3rd, 2012 by

Sustainability reporting is increasing at a fast pace here in the United States. Since the Global Reporting Initiative was launched in 1997, the number of reporting organizations in our country has increased tenfold. It’s true that multinationals reporting on environmental, social and governance (ESG) issues in the U.S. lag behind our global counterparts. However, it’s encouraging to see an increase in reporting uptake – not just because this allows stakeholders to better understand corporate impacts, but also because reporting in its best form should be a tool that aids strategy development, target setting, and business management. Read the rest of this entry »

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HireHonor: Making a Difference in Veteran Hiring in America

Posted on November 28th, 2011 by

During the month of November, the U.S. traditionally celebrates Veterans Day, focusing attention on those who have served our country through military service. It is a time to reflect not only on their contributions but also on their post-service needs, which have evolved over the years. One key challenge today, for example, is how to successfully seek employment after service.

Veterans represent an elite and diverse talent pool available for hire. Most veterans possess transferable skills, professional discipline and positive attributes identifiable in today’s evolving workforce. According to the U.S. Department of Veteran Affairs, by hiring veterans, employers can leverage the U.S. military’s $140 billion per year spent on education and training and tap into the 200,000 service members who transition to the civilian workforce each year. Read the rest of this entry »

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Companies must play a vital role in STEM education

Posted on October 26th, 2011 by

Bo MillerCorporations’ futures are in jeopardy unless the STEM crisis is solved

Less than half of high school graduates are ready for college-level math and less than a third are ready for college-level science in the United States, according to the ACT’s Condition of College & Career Readiness report. The United States is clearly falling short in the areas of science, technology, engineering, and math (STEM) education needed to produce the world-class talent that will be critical to fulfilling the requirements of the 21st-century workforce.

Revitalizing STEM education and increasing the number of students who choose STEM majors and careers is imperative for the future of the advanced manufacturing industry in the United States. Dow, like other companies dependent on a workforce proficient in science, technology, engineering, and math, has a responsibility to use our credibility, capabilities, and resources to make students, the workforce, and the economy stronger. Read the rest of this entry »

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The reputational threat that just might be under your nose

Posted on August 29th, 2011 by

In the clatter of commentary from investors, NGOs, regulators, elected officials, activists, reporters, and the dozens of other groups judging corporate responsibility, it’s easy to forget the one stakeholder group right under your nose – employees.

That audience alone has the potential to have by far the greatest influence on your reputation as a corporate citizen. Every day they have access to your customers – either delivering or undermining the messages that you have so carefully constructed. They influence the opinions of their neighbors and family much more powerfully than the traditional communications channels we target with resources. They are the truth tellers about how closely your company is really embracing corporate values.

It doesn’t matter if you have five employees or 400,000. Every single one has the ability to publicly challenge your status as a good employer, a generous community contributor, an environmental steward, and a corruption-free company.

So how do you harness the energy and influence of employees to your advantage? How do you convert them into sustainability evangelists?

The essential elements are: culture, authenticity, credibility, and activation. Read the rest of this entry »

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Investing in the future

Posted on July 20th, 2011 by

Corporate citizenship is a key component of Boeing’s business strategy – fueling commerce, providing meaningful employment and playing a role in our communities.

Our corporate citizenship work is particularly important as globalization and changing demographics continue to transform business. With more than 75 million baby boomers nearing retirement in the United States alone, technology-based companies face a skills shortage as fewer students gain the qualifications needed for the high-tech jobs of today and tomorrow.

Like many of our industry peers, our competitiveness relies not only on our access to a robust, highly-skilled work force educated in science, technology, engineering and mathematics (STEM) but also that they enter the work force prepared with problem-solving, team work and collaborative skills needed for success. Read the rest of this entry »

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Four New Rules to Corporate Responsibility

Posted on June 21st, 2011 by

The origins of Target’s corporate responsibility philosophy began many years ago out of a modest-sized department store called Dayton’s Dry Goods. At that time, our founder, George Draper Dayton, proclaimed that our business must maintain “the higher ground of stewardship.” It was at that moment when Target’s reputation for dependable merchandise, fair business practices, and a generous spirit of giving was born. Ever since then, we’ve taken that philosophy and expanded on it—we not only believe we must maintain “the higher ground of stewardship,” but we also believe we are Here for Good.

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