Here are some of the top insights from our last COMMIT!Forum—a taste of what’s likely to come in the 2015 Forum
By the Editors
Bring your best ideas to the 2015 COMMIT!Forum. If it’s anything like the previous ones we’ve had, the ideas and insights should be coming fast. While we couldn’t be everywhere last year, and your mileage may vary, here (in descending order) is a sample of compelling thoughts shared from the stage during the 2014 event:
- Manage CR like any other business issue: Goals, measurements, accountability
Dan Hesse earned the 2013 CR Magazine Lifetime Achievement Award. Dan had been CEO of Sprint at the time, but his tenure had ended in August 2014. Dan returned to New York for our October 2014 dinner to pass the Lifetime Achievement Award to Stuart Thorn, CEO of Southwire, Carrollton, GA.
Dan’s key insight, explained at greater length in a January/February 2014 CEO Interview in CR Magazine, was to address corporate responsibility “like any other business issue”: Set goals, meet regularly, measure it “relentlessly,” and have accountability for every element of the plan. In Sprint’s case, that meant building a vastly improved 4G LTE network that dramatically reduced energy usage (thus greenhouse gas emissions).
- Consider a 3-step rule-of-thumb to decide on a shared value program
Stuart Thorn is the CEO of Southwire. He has relentlessly innovated as a leader of the Carrollton, GA-based wire manufacturer. Among Southwire’s achievements on his watch is the creation of a high school for young people at the highest risks for dropping out, allowing them to work/earn money and study at the same time.
Stu’s insight concerned a three-fold assessment of Southwire could best apply the concept of shared value. To Stu, that means: (1) Give priority to local causes, because the company has enough resources to make a meaningful difference. (2) Give priority to causes that allow Southwire to apply talent as well as money, creating a multiplier effect. (3) Invest in causes that help not only the community, but the company as well. As an example, the 12 for Life program is a local high school in a Southwire factory, which not only helps the local students, but provides employees as well, and well as a local, educated workforce.
- If you can’t control it, manage it
Meredith Wieta is manager of planning and environment for the logistics division of Canon USA Inc. She took the stage with the EPA to discuss the SmartWay program.
Meredith’s insight: Manage what you can’t control. Companies that want to reduce their carbon footprint have to rely, to some extent, on the freight carriers. They don’t control them, so the relationship needs to be managed. A framework such as the EPA SmartWay program provides one way to do that. But the underlying insight is finding the right framework, to give the right incentives for freight carriers (or other partners in a supply chain) to work with you to improve CR.
- You can’t do ‘evil’ from 9-to-5, and ‘good’ from 5-to-7
Douglas Baker is CEO of Ecolab. He was a CEO of the Year recipient and the subject of the May/June 2015 CEO Interview cover story.
Douglas’ insight: Values such as corporate responsibility are integral to the behavior of the organization, and not an ‘add on.’ And they are definitely not a “make up for” type of program. “It can’t be, ‘I do evil from 9 to 5 and then I do good deeds from 5 to 7 p.m. to make up for it.’ It has to be what you do all day long.”
- Diversity can be a competitive advantage
Phyllis James, Chief Diversity Officer and special counsel for Litigation, MGM, was on a panel discussion in detail issues of diversity and inclusion.
Phyllis’ insight: Diversity can be a competitive advantage. In Prince George’s County, Maryland, MGM wished to build a casino, and the result hinged on a ballot measure. MGM wanted “yes,” and the “no” ballot was bankrolled, Phyllis said, by another gaming company. MGM’s diversity program was able to make the difference, she said. MGM could point to its hiring practices and diversity programs, which gave it credibility—enough to win on the ballot measure.
- When it comes to diversity, get past “What should be done?” and to “What is my role?”
Greg Hinton is principal of The Gregory Advisory Group and the former diversity officer for the Democratic National Committee. He took the stage with Amber Johnson of the Center for Values Driven Leadership at Benedictine University; Phyllis James; and Kathy Hannan, national managing partner of KPMG, to offer up some stories and insights into diversity and inclusion.
Greg’s insight: People may get the “what” of diversity and inclusion, as in “What should be done?” But often they need to know “What is my role?” In Greg’s example, he noted that some engineers designed an emergency room for the inner city, without considering the fact that the neighborhood was Hispanic. Since Hispanics tend to bring more family members to an ER than, say, a suburban ER would. The result was the ER waiting room was overcrowded with non-patients. It’s a problem that was found after the building was built, when a discussion with the diversity officer might have mentioned that a larger ER waiting room would have been beneficial.
- Patient capital is necessary for long-term change
Rakesh Sachdev is the CEO of Sigma-Aldrich and was an honoree as CEO of the Year. Rakesh noted that about one-third of all of Sigma-Aldrich’s contributions are in STEM education. Rakesh’s company supports math, science, and engineering education from elementary schools through to post-graduate education.
Rakesh’s insight: Patient capital. Whenever you make investments, you have to have patient capital, long- term investments that will pay off in many years. But it’s necessary. You have to build the pipeline of future engineers and scientists, and that takes time.
- CSR will give companies a leg up on the “War for Talent”
Rosaleen Blair is Founder & CEO of Alexander Mann Solutions. She joined the stage with three other CEOs for a panel on leadership and innovation.
Rosaleen’s insight: Companies face a War for Talent. Talent will chose the firms to work for, and talent will decide whether or not to stay. So, recruitment and retention of the most talented individuals – the ones who can make a company – will come down to what’s important to them. Especially when it comes to Millennials, corporate social responsibility (CSR) is crucial. “I think those companies that actually truly embrace CSR, and can demonstrate that, and are doing it for the right reasons, they will be the ones who will actually win that war for talent.”
- There’s no perfect time, but there can be a right time
Larry Merlo is the CEO of CVS Health. He was the featured CEO for the one-on-one on-stage interview with CR Magazine CEO Elliot Clark. He was also a CEO of the Year nominee for CVS Health’s decision to stop selling tobacco products—a decision the executive knew would cost the company sales.
Larry’s insight: Timing. There’s no perfect time to make decisions like this. But pushing forward often creates opportunities, and that creates its own momentum. As Larry put it: “There’s never going to be a perfect time to do it. But with so much changing in healthcare and the opportunity to forge new partnerships, this was the right time. Our board was extremely supportive.”
- People respond to compelling honesty
Matthew Mulkey is a machine operator with Southwire. Matthew stole the show at the CR Magazine Responsible CEO of the Year Dinner. The young man had recently completed the 12 for Life program. A few years earlier, he was a young father who was attempting to support his new family, but couldn’t … and he was able to return to high school through the Southwire program Stuart Thorn had put in place.
That program allows at-risk pupils to earn money by working in a Southwire manufacturing facility while also finishing their high school diploma. So, a life that was starting to go very wrong got righted, and Matthew came to the COMMIT!Forum, practiced his prepared remarks over and over again, until he got it right—not only until Southwire’s communications people were satisfied with it, but when he was satisfied with it. And then, during the dinner, he told his story. And brought the house down.
The idea: When the time is right, go ahead and tell your story, honestly and courageously, in front of a dozen Russell 1000 CEOs or whomever else. You may just – as Matthew did – strike a chord and get a standing ovation.
The post 10 Great Ideas from 2014 COMMIT!Forum appeared first on CR Magazine.