Take time to code

Today, when you talk about coding, the younger among us immediately click to coding: "the process of designing, writing, testing, debugging, troubleshooting and maintaining the source code of computer programs". But in the context of CSR and sustainability, we have a type of coding that is just a little different.

If you work for a large company, the chances are you have a Code of Conduct, a Code of Ethics, a Code of Commitment, a Code of Behavior or some sort of Code that frames the way the company behaves and expects its employees to align with. In addition, your company probably subscribes to one or more external codes or standards or frameworks that provide structure and even external validation of your company's activities in the field of corporate responsibility and sustainability. 

Did you ever stop to think just how many codes, standards and frameworks are actually out there? (Don't get me started, that's another conversation.) But yes, there are LOADS. And even more that. This was the case more than ten years ago and it's still the case at present. That's why, when Deborah Leipziger came along in 2003 and provided a comprehensive guide to the most relevant and useful codes, standards and frameworks in The Corporate Responsibility Code Book, it was an iconic piece of work that would be invaluable as companies started the process of navigating where to hang their hat as they develop a responsible business strategy, or understand what it is that makes one code or another more or less helpful or relevant. Recently the Corporate Responsibility Code Book celebrated the publication of its third edition.

Why does a competitor align with SA8000, for example, where another competitor prefers to use the ETI Base Code? What might we learn from the Extractives Industry Transparency Initiative, even if we are operating in a different sector? What are framework agreements and what role do they play in changing the way business gets done? Do the Guiding Principles on Business and Human Rights actually have any relevance for our company and why? Today, the third edition of The Corporate Responsibility Code Book is updated to include new initiatives such as the Guiding Principles on Business and Human Rights and the Gender Equality Principles and updates to the Global Reporting Initiative guidelines, the OECD Guidelines for MNEs, Social Accountability 8000 and many others. Similarly, some initiatives which that have been overtaken by new frameworks and are therefore no longer relevant have been removed.

While it's probably only geeks like me who actually like to read a book like The Corporate Responsibility Code Book, it's usefulness for anyone working in this space cannot be underestimated. And because, as a geek, I find this so fascinating, I couldn't resist talking to Deborah Leipziger, the code guru, to hear a little more from behind the code scenes.

Deborah Leipziger advises companies, governments and UN agencies on corporate responsibility and sustainability. She has advised leading multinational companies on strategic and supply chain issues, as well as a wide range of CR initiatives, including the UN's Global Compact, the Global Reporting Initiative, the UN Environment Programme, the Human Rights Impact Assessment, and Social Accountability International. Ms Leipziger is a Senior Fellow in Social Innovation at the Lewis Institute at Babson, and has taught at the Bard MBA in Sustainability, at the Simmons School of Management, and at Hult International Business School. She is a co-author several books and has served as a member of several boards including the Advisory Committee on Socially Responsible Investment for Aviva (UK), the Center for Ethics at Manhattanville College (USA) and the International Board of Ethos (Brazil). check out her website: here    

The Code Book is somewhat of an icon in sustainability and the general body of knowledge available. Who actually uses the Code Book and what's its value to them?

Deborah: The Code Book is used in many classrooms to teach about sustainability and CSR. I use it to teach my MBA students at Bard. I have heard from many professors that it makes for a very good syllabus and complete course materials. Many college libraries also purchase The Code Book. In addition, companies and law firms also purchase The Code Book for their libraries.

What makes for a good Code of Conduct? 

Deborah: The best standards and codes build upon the knowledge and value of normative and foundation standards, such as those developed by multilateral organizations like the International Labor Organization. A good code of conduct should be dynamic and flexible, while at the same time having staying power. Over the past 25 years, I have worked with many codes and standards. The best codes and guidelines are clear and concise and written with implementation in mind. Strong support from stakeholders is also essential.

In your introduction, you refer to a new emerging vocabulary as an essential part of fostering corporate responsibility. What are the key changes in vocabulary and why is it essential for us to adapt?

Deborah: A wonderful question! One of the most lasting contributions of codes and standards is their ability to create clear definitions in a complex field. Guidelines and codes have shaped a lexicon of terms around CSR and sustainability. For example, SA8000 lays out definitions of child labor and trafficking which are helpful for stakeholders and companies. These definitions provide companies with concrete parameters. The UN Guiding Principles on Business and Human Rights uses the terms “irremediable” to define human rights abuses for which there is no remedy, such as a lost childhood spent in hard labor. There are abuses for which there is a remedy, such as providing back pay for wages which were withheld. A few years ago, I was asked to advise Aviva plc on a project they were working on with Forum for the Future to create scenarios for what a sustainable economy might look like in 2050. My reaction was that we do not yet have the vocabulary to imagine and create a sustainable economy in the coming decades. I tackle this in a book I co-wrote with a team at Babson: Creating Social Value: A Guide for Leaders and Change Makers, which came out in 2013. One of the paradigm shifts that I see is companies working to promote social value creation, which includes solving social problems while also creating financial value. Companies need to think beyond being compliant with laws and standards, and towards creating social value through social innovation.

Your last chapter talks about pathways to convergence with ISEAL as an example which brings NGOs together under a broad framework of shared principles. However, what's the evidence that any sort of convergence in the private sector is actually happening? It seems that the world of codes, frameworks, and standards is only becoming more complex.

Deborah: The ISEAL Alliance has brought coherence to a wide range of social and environmental certification systems, creating common frameworks. This has helped to bring credibility and efficiency to certification and labeling standards from organics to fair trade. At the same time, there are many new systems emerging many of which are complex. I think complexity and convergence can coexist.

Did you consider the standard of standards, the emerging GISR? Do you expect GISR to influence the way Codes are used? 

Deborah: I have been following the progress of the Global Initiative for Sustainability Ratings (GISR) for many years. Allen White and I worked together when we were both in the Netherlands and he has been a speaker in my classes for many years, which has allowed me to follow the progress of the GISR first hand. I think the GISR will indeed have an impact on how codes and standards evolve. Perhaps it will be included in a future version of The Code Book.

What's your position on the frameworks used for inclusion in major stock exchange sustainability rankings for example DJSI?

Deborah: Many companies use DJSI as a framework to drive strategy and disclosure. I think the Dow Jones Sustainability Index is an excellent tool for companies. It helps drive performance and serves as a driver for companies to excel. I consider stock exchanges to be pivotal in driving change in the corporate sector. I hope to see more rankings like the DJSI emerge.

What was your personal biggest insight as you were preparing the third edition?

Deborah: I was struck by how much membership has grown for the guidelines and codes covered in Code Book III. When I first began tracking codes and standards, many of the initiatives had a dozen or so members. Now initiatives encompass broad networks of companies. I am also struck by how the field has evolved from aspirational initiatives to complex and brilliant initiatives like the UN Guiding Principles on Business and Human Rights. The Guiding Principles constitute a significant contribution to the field of corporate responsibility, defining the role of the state and of companies in addressing human rights and the need to provide access to remedy when human rights have been abused. The Guiding Principles provide a useful tool for companies working to complete due diligence and to assess where their operations, products, or services might have a potential adverse impact.

Will there be a Code Book IV? 

Deborah: It’s not in the works right now, but it is a possibility. There is a great deal of interest from emerging economies and Code Book III was launched in New Delhi.  

*******

Thanks to Deborah for these insights. Happy coding!


elaine cohen, CSR consultant, Sustainability Reporter, HR Professional, Ice Cream Addict. Author of Understanding G4: the Concise Guide to Next Generation Sustainability Reporting  AND  Sustainability Reporting for SMEs: Competitive Advantage Through Transparency AND CSR for HR: A necessary partnership for advancing responsible business practices . Contact me via Twitter (@elainecohen)  or via my business website www.b-yond.biz   (Beyond Business Ltd, an inspired CSR consulting and Sustainability Reporting firm).  Need help writing your first / next Sustainability Report? Contact elaine: info@b-yond.biz  

The Elastic Sustainability Report

How do you make a Sustainability Report that's elastic? That's easy, you have to be an elastic company. ECI is a global provider of ELASTIC Network™ solutions for service providers, utilities and data center operators. In ECI's fourth Sustainability Report, entitled "Reinventing the Future", ECI explains how elasticity goes hand-in-hand with an innovative, responsible and ethical approach to conducting business.

All this is in addition to continuously improving environmental impacts  - check out these results: since 2010, ECI has reduced

• Energy consumption by 54% 
• Greenhouse gas emissions by 49% 
• Water use by 15% 
• Waste by 62%

But back to elastic. One of the problems these days with technology is the fact that it becomes obsolete so quickly as the pace of innovation overtakes it - especially in the world of ICT - internet and communications technology. In order to keep up with technology, which can be the main key to remaining competitive, companies have to replace old technology with new. That is, unless they have ECI's ELASTIC targeted applied technology solutions that hook onto legacy technology without throwing out the baby with the bathwater, as we say in Manchester. This is the sustainability of ECI's network solutions. In most cases, solutions are new enough to enable customers to stay ahead, and old enough to be compatible with existing platforms to avoid large investments that dent profitability or delay new competitive offerings. This is the case for example in Mexico. ECI supports the Mexican government's digital inclusion strategy by providing ELASTIC solutions for internet connectivity that reaches up to 97% of Mexico's population through fiber optic digital communications transported by existing power lines built for transmission of electricity. Bandwidth at the flick of a switch, combining legacy and innovation to deliver optimal flexibility, efficiency and conservation of resources. 

The concept of elasticity in business was introduced in a book called "The Elastic Enterprise" by NicholasVitalary and Haydn Shaughnessy - a truly interesting read. The authors present concepts such as radical adjacency, mass differentiation, new scale economics, sapient leadership and active strategy, supported by five dynamics of new operating models that together form a manifesto for business revolution. Elastic enterprises do well even in recession and support the creation of societal wealth and advancement. You'll have to read the book to understand the concepts in more detail. Even though The Elastic Enterprise was not written as a sustainability textbook, it could certainly be mistaken for one. 

Back to elastic reports. There is something always that little bit extra in ECI's Sustainability Reports - innovation with legacy. Each year, the report is brought to life by a global activity that engages employees in the company's mission and community spirit. Whether it's a Green Camera competition, or an "ECI and ME" photography competition or, as is the case in ECI's 2014 Sustainability Report , a "get-your-kids-to-draw-the-way-they-see-ECI" competition. The 2014 Sustainability Report is illustrated with drawings by ECI's extended family and includes children between ages 4 and 12 who creatively show ECI in its global ecosystem with drawings about about connectivity, the family culture of the company and the pace of technological advancement. Some show ECI simply as a home to thousands of employees and their families and communities.

Three other things that add interest and insight to ECI's 2014 Sustainability Report are commentaries from prominent voices in the world of sustainability today. These are (in surname alfa order):

Deborah Leipziger advises companies, governments and UN agencies on social innovation, human rights and business, and sustainability. Professor Leipziger is a Senior Fellow in Social Innovation at the Lewis Institute at Babson, and teaches at the Bard MBA in Sustainability program and other business schools. The third edition of her book, The Corporate Responsibility Code Book will be published soon (I have editions I and II - these are essential books for susty professionals). Deborah's commentary refers to the Guiding Principles on Human Rights, explaining their importance.

Margo Mosher is a Manager with SustainAbility. SustainAbility is a think tank and strategic advisory firm working to catalyze business leadership on sustainability. SustainAbility was founded by activists John Elkington and Julia Hailes in 1987.  Last year, SustainAbility published a very insightful paper on transparency and the need for greater strategic material focus. I mentioned this in a post back in December last year. Margo's commentary is about the role of the private sector in working to create a sustainable economy and the value of reporting. 

Luis Neves is the chairman of GeSI - a membership organization for Information and Communication Technology (ICT) companies and organizations around the globe and a leading source of information, resources and best practices for achieving integrated social and environmental sustainability through ICT. Luis's commentary is about the value of ICT an an enabler, helping companies to reduce environmental impacts through the use of technology. GeSi has produced some impressive publications about the role of ICT in helping create a sustainable future, and since Luis prepared this commentary for ECI's Sustainability Report, GeSI has managed to put out SMARTer 2030, which updates prior research and insight into how technology can transform business efficiency and deliver environmental advantage. Well worth a review. 

Anyway, back to elastic. Now you know what an ELASTIC Sustainability Report is.

As always, take a look. Give feedback!



(Disclosure: ECI is a valued client and I supported the writing of this report and all prior reports)

elaine cohen, CSR consultant, Sustainability Reporter, HR Professional, Ice Cream Addict. Author of Understanding G4: the Concise Guide to Next Generation Sustainability Reporting  AND  Sustainability Reporting for SMEs: Competitive Advantage Through Transparency AND CSR for HR: A necessary partnership for advancing responsible business practices . Contact me via Twitter (@elainecohen)  or via my business website www.b-yond.biz   (Beyond Business Ltd, an inspired CSR consulting and Sustainability Reporting firm).  Need help writing your first / next Sustainability Report? Contact elaine: info@b-yond.biz  

I have now joined the future

Guess what ! I have now officially become a member of the future.
I participated yesterday in what was for me a very futuristic experience - yes - you guessed .. a WEBINAR!! I like to think i am a computer-literate techie sort of person, but to date, I have resisted all these millions of webinars and things, mainly because of the hassle factor (getting hooked up), the earphones factor (flat ears) , the poor connection factor (crackles, buzzes and beeps) and the half-sentence factor ( hello, welcome to.................. today............will discuss .................important to note that ....................very significant as you can see on slide 3 that....................) . But the temptation of hearing code-guru Deborah Leipziger was too great to resist. So, albeit a little late (10 yr old daughter needed mom to buy her hundreds of $$$$$ of clothes for her birthday party at the weekend), I accepted the CSR International invitation to join the first in the impressive line-up of webinar events scheduled until the end of 2009 (this is great forward planning - unlike my local culture where planning more than 3 hours ahead causes chronic migraine)

Deborah Leipziger is the first lady of corporate, industry and cause-related codes of conduct and ethical standards. Her Code Book created order and understanding of the relevance and importance of framing conduct expectations and existing best practices. A sort of Code Bible. Amen.

How is this connected to Reporting ?
No CSR report today is complete without reference to a Code of Conduct and in many cases, declaration of a string of external codes that the corporation adopts. My guess is that on average, companies have about 5 or more different codes they try to observe in their businesses.
A quick look at some CSR reports proves me mainly right:

• ExxonMobil 2007: corporate code(s) of conduct , global responsible care charter, global compact, voluntary Principles on Security and human Rights, millenium development goals, ILO convention on Indigenous peoples
• Westpac Banking Corp 2008 : UNPRI, principles for doing business, Equator Principles, ASX principles on Good Corporate Governance, sustainable supply chain managment code of conduct, GRI, UNEP Finance Initiative, CEO Water Mandate
• Sony 2008: Sony Group code of conduct, EICC code of conduct (only 2 ? did i miss a few?)
• Diageo 2008: Global compact, Dublin Principles, Business charter for sustainable development, CEO Water Mandate, internal codes of ethics, GRI

The harmonization of codes was one point raised in the discussion - though a key part of the value of the Code is the process by which it was created. So maybe we need lots of processes but less codes ?

Anyway, back to the view from the top - few insights from the guru:

• ISO 26000 is not cutting-edge but it is broad and covers most of the range of CSR issues . It is right to go the guideline route and not the certification route, though certification at a national level in local language could be an opportunity. Some national certification bodies are already starting to consider its use - Portugal and Denmark for instance.
• Sectorialization is becoming more popular and useful as a tool for different industries such as the electronics industry, automotives, forestry, financial sector tools such as the Equator Principles.
• Training is essential to ensure application and assimilation of codes - this is often underestimated
• Impact analysis including gathering of base line data is often overlooked but is an important tool in understanding both the effectiveness of the code and the unintended consequences of implementation.

In response to my question, What about a code of conduct for CSR professionals or are we exempt? there was a knowing smile and an admission that the cobbler forgot to make himself a pair of shoes, or whatever the saying is. There was the question of how do you define a CSR professional . Right now, as long as its polite, I dont mind. :-)

Anyway, i have to end this blog post now as i have to go off and write another code....

Thanks to Deborah and to Wayne Wisser, CSRI founder and webinar maestro

elaine cohen is the joint CEO of BeyondBusiness, a leading reporting and social-environmental consulting firm based in Israel. Visit our website at: www.b-yond.biz !