The 1997 Corporate Conscience Awards
The Council On Economic Priorities'(CEP) Corporate Conscience Awards
recognizes innovative corporate commitment that goes far beyond requirements
and regulations to demonstrate "Leadership for a Better World."
On June 3, at the Waldorf Astoria in New York, CEP honored eight
U.S. and foreign companies for their accomplishments in Community
Involvement, Employee Relations, Environmental Stewardship, Global Ethics,
and for pioneering innovation.
The winners in the first four categories are: Kellogg Company and
the W.K. Kellogg Foundation (Battle Creek, MI.); Community Pride Food Stores
(Richmond, VA.); Cooperative Home Care Associates (Bronx, NY.); Novo Nordisk
(Bagsvaerd, Denmark); J.Sainsbury (London, Eng.); Wilkhahn Wilkening (Bad
Munder, Germany); and the Co-operative Bank (Manchester, Eng.).
CEP's new Pioneering Awards honor bold, untested initiatives that
evidence great potential for social good. They go to Toys 'R' Us, and
(jointly) the Sporting Goods Manufacturing Association, the Soccer Industry
Council of America, and the World Federation of the Sporting Goods Industry.
Environmental Stewardship
Novo Nordisk
Novo Nordisk, the world's leading producer of insulin and industrial
enzymes, based in Denmark, operates in 53 countries.Proactive on
environmental disclosure, Novo Nordisk initiated annual dialogue with key
environmental stakeholders in 1991.
Its first environmental report (1994) goes far beyond what is
included in many such documents. Unlike U.S. companies, which primarily
track emissions in the waste stream, Novo follows an input-output model of
reporting. For example, Novo's Eco-Productivity Index shows improved
utilization of water, energy, and raw materials since 1991. Discharged
liquid wastes are declining as the recycling of such waste increases. Novo
also reports on releases of several pollutants on a company-wide basis,
serving as a model for other companies. Novo has made good progress on
reducing environmental impact.
Novo's enzymes offer a natural alternative to synthetic chemical
compounds used in industrial and consumer applications. One enzyme
introduced by Novo enables paper producers to reduce (and ultimately
eliminate) chlorine in the bleaching process. Enzymes require less energy to
be effective than their chemical counterparts. In the case of laundry
detergents, enzymes enable clothes to be cleaned in cooler water.
A noteworthy component of Novo's environmental record is its
involvement in what's been termed "industrial symbiosis". Four facilities in
Kalundborg use each other's by-products, thereby minimizing waste
production. Novo's involvement includes taking steam from the Asnaes power
plant and using the condensate to replace fresh water in its fermentation
process. The resulting waste sludge, composted primarily of organic
material, is delivered to local farmers as fertilizer.
Novo Nordisk
J. Sainsbury plc
Sainsbury numbers among the world's largest retailers, operating
four chains in the UK and U.S., which together serve more than 12 million
customers per week. In the UK, the retail giant owns supermarket stores
(Sainsbury), home improvement stores, and gas stations. In the U.S.,
Sainsbury owns Shaw's Supermarkets, a New England chain, and a 20 percent
interest in Giant Food Inc., the top-rated supermarket in CEP's SCREEN
database.
Sainsbury is recognized for issuing standards for all of its
suppliers of fresh fruits and vegetables, asking them to implement
Integrated Crop Management Strategies (ICMS) in the UK and abroad (the
pesticide program does not apply Shaw's or Giant). Rather than relying
primarily on pesticides, the ICMS strategy involves the introduction of
beneficial insects such as ladybugs, which prey on pests that attack crops.
ICMS also uses forecasting and monitoring techniques, crop rotation,
resistant varieties, and staff training to reduce the need for pesticides.
Sainsbury provides extensive training programs on ICMS and
conservation to all of its suppliers. Farmers are audited on a regular
basis. If suppliers are unable to comply with the rules, they are no longer
eligible to supply fruits and vegetables to Sainsbury, even if the retailer
were to run out of produce.
The program is structured so that compliance brings financial
rewards, and failure to comply, potential penalties, for both Sainsbury and
its suppliers. Sainsbury's staff inspects all farms that supply produce;
they check entire production systems, ensure that staff are adequately
trained, that managers are aware of all risks associated with plant
diseases, and that the farmers can safely adopt ICMS.
Sainsbury: http://www.j-sainsbury.co.uk
Wilkhahn Wilkening
In 1989, the company's Administrative Board, Management and Works
Council committed Wilkhahn to a "fundamental ecological transformation of
the entire company." This German furniture company created a business
division - Innovation and Ecology - to ensure that both products and
production continuously became more environmentally compatible. The company
employs a cradle-to-grave approach to all of its product lines.
Wilkhahn instituted selective means of identifying alternative
materials, using energy economically (including use of photo-voltaic
equipment for capturing solar energy) and optimizing manufacturing
processes. The company's product stewardship extends beyond the point of
sale to include a product "take-back" recycling component.
The company's environmental policy/quality report includes a
comprehensive "ecological chart of accounts" that reports three years of raw
and manufacturing materials, product outputs, waste disposal and recycling,
emissions and releases (wastewater, CO2, CO, SO2, NOX).
Since 1971, all employees have had a 50 percent share in operating
profits. A new organization structure went into effect in January 1994;
there is now only one management level below the two main business
divisions. Interdisciplinary project groups have replaced the system of
hierarchy, and the enterprise is distinguished by joint responsibility and
cooperation.
Global Ethics/Human Rights
The Co-operative Bank plc
With 130 outlets, it operates the largest telephone banking service
in the UK. Founded in 1872, Co-op is considered one of the most innovative
banks in the UK. It was the first to introduce free banking, interest paid
on current accounts, and a commitment to customer confidentiality.
The bank is well known for its ethical policy, first introduced in
1992. A major tenet is to forego financing arms deals to oppressive
governments (all major UK banks finance such deals - with Nigeria, Iraq, and
Indonesia).
The Co-operative Bank seeks to support businesses that promote the
concept of fair trade. Its policy disqualifies investments in companies
that deal in tobacco, weapons, or fur; conduct animal testing or exploitive
factory farming; or promote blood sports, such as hunting. The bank
encourages companies to take a proactive stance on the environment and
invests in companies that avoid continued damage to the environment.
The unusual ethical policy is based on surveys received from
customers, which indicated overwhelming support for the issues cited above.
The bank regularly updates the policy and consults with groups such as
Amnesty International and the Worldwide Fund for Nature to stay abreast of
issues. Co-op Bank donates to national charities 5 pence of every 100 pounds
spent on its Visa cards. Together with four major British universities, the
bank in 1995 launched an ecology center to help companies striving for
environmental excellence.
The "Ethical Policy slideshow"
on their website reflects the Co-operative Bank's unique personality.
The Co-operative Bank
The Community Involvement award was shared by W.K. Kellogg and Kellogg Company (cereal manufacturer) and Community Pride Food Stores.
Kellogg was honored for efforts to engage African-American men and boys in
affirming traditional values and reviving their communities. Community
Pride Food Stores provides van rides for elderly shoppers; health awareness
activities and other community services.
Cooperative Home Care Associates received the award for Employee Relations. They are a worker-owned home health care company which recruits and trains former welfare recipients.
Toys 'R' Us received the new Pioneer Award for their code of conduct
for overseas suppliers which include solid provisions for workers' rights,
child labor and working hours. The Sporting Goods Manufacturing
Association, the Soccer Industry Council of America and the World Federation of the Sporting Goods Industry joined with international child advocacy groups and leading manufacturers of sport equipment to eradicate child labor in the soccer ball industry in Pakistan.
Excerpted from Council on Economic Priorites Research Report