The term “sustainability” has fully permeated the corporate world. It seems like every day another company announces it’s published a report. However, even with a report it can be difficult understand the environmental performance of many companies. Timberland understands the need to better communicate its message and to supply information to those who seek it. The company has developed a corporate sustainability report (CSR) portal it calls Timberland Responsibility, where it highlights the company’s goals, progress, initiatives, product information, and other information in an easily accessible format.

Timberland has a history of supporting environmental initiatives, and it is out front when it comes to its own sustainability efforts. In 2008, Timberland Chief Executive Officer Jeff Swartz instituted quarterly reporting on the company’s environmental progress.

Continue reading ‘timberland’s honest and accessible csr’ »

In this edition of our multi-part Outdoor Retailers show series, we visit the GoLite booth at Outdoor Retailer for their recycled plastic Tier 1 backpacks and learn about their sustainability and transparency initiatives. It was hard to miss GoLite, it was one of the first booths people saw after passing through the doors of the main hall in Salt Lake City’s convention center. The Boulder, Colorado-based  company makes high quality, lightweight outdoor gear.

The Tier 1 line from GoLite’s is made from recycled polyester and nylon. The fibers are chemically recycled, giving them the properties and quality of virgin material. The use of such high quality recycled materials in new backpacks helped the company win an Editor’s Choice Green Award 2010 from Backpacker Magazine.

In order to better measure the environmental impact of its products, the company created what it calls the GoLite Index. Encompassing three core areas, the index measures environmentally preferred materials, responsible production, and public awareness of end-of-life programs.

GoLite is making strides in its reporting as well, recently issuing a substantial (157 pages!) corporate social responsibility (CSR) report that we feel goes to great lengths to be as transparent as possible. For example, under the “water usage, sources, and impacts” section of the CSR report, the company informs readers that it doesn’t always know what’s happening at all points in the supply chain.

Since GoLite contracts its manufacturing with many factories and mills around the world, we do not have good visibility into the water used or recycled within these factories and mills, nor do we have good visibility into the effect of their water usage of our factories and mills on water sources.

To be fair,  almost all companies that contract out to overseas factories don’t have visibility into the water usage at these facilities. However, the larger point is that because these facilities don’t provide insights into their water usage, it’s difficult for companies to improve or understand the environmental impact being done in their name. It’s an industry-wide problem, and one that some companies are trying to resolve. GoLite is struggling with this very issue, even going so far as to address it later in the report:

It is our future intent to be able to report on the total volume of water usage, including its sources and impacts, as well as the degree to which water is recycled or reused and total water discharge in our contracted factories so that we can seek additional ways to work with these factories to mitigate it. We do not yet know how we will achieve this.

And while the company is attempting to be environmentally conscious, co-founder and president Demitri “Coup” Coupounas doesn’t believe his company should change solely for the sake of sustainability.

“The great mass of consumers does not want to sacrifice performance or pay more for sustainable,” Mr. Coupounas told us at the conference.

GoLite is not alone in its belief that most consumers are not prepared to pay more for sustainable goods or manufacturing, but we’ll talk more about that in our wrap-up post on the Outdoor Retailers show. For now, we’ll say that GoLite’s incorporation of recycled materials in its products, and the effort the company has made to be transparent in its CSR report are strong indications of the company’s commitment to sustainability.

Companies possess great potential to make positive changes within their communities and improve the environment. Such efforts are typically incorporated into company’s corporate social responsibility (CSR) program–a broad concept that is geared toward creating a favorable public image for a company and its brands. However, a report recently published by the Center for Creative Leadership (CCL) highlights another benefit for companies: Investments in CSR programs boost employee satisfaction, retention, and loyalty.

The report, which polled 2,215 workers around the globe, found that employees are more likely to be “proud” of their company if it’s engaged in good corporate behavior. No leap of faith required here. If your company is destroying the environment, or embroiled in financial scandal, you’re probably less enthusiastic than you would be if you believed your company to be “saving the world.” Employees surveyed were more eager to discuss the positive deeds of their organizations with outsiders, and were more committed to organizations with good CSR.

The study found no differences in commitment between different generations of employees. But there were variations in employee commitment to CSR strategies based on corporate ranking; it’s stronger for employees higher on the corporate ladder.

The gap could merely be a reflection of a deeper familiarity with a company’s sustainability efforts among top officers than among other employees. So it’s important for senior officials to promote their company’s CSR efforts and to stress their importance. If a company has saved money by reducing waste within its offices, managers should make sure everyone knows about it. Such concrete examples bring real value to the often nebulous conversations about CSR within many companies.

Furthermore, those directing CSR efforts should seek input from employees at all levels of the organization. It not only fosters a sense of team participation and value, but it also improves the program, since employees at lower levels often spot areas ripe for reform that wouldn’t be evident to executives.

While investing in CSR can be helpful for employee retention and commitment, it is not a cure-all for hanging onto employees.

“If an employee isn’t happy, a strong corporate social responsibility program isn’t likely to tip the balance,” says Sarah Stawiski, Ph.D., a CCL post-doctoral research fellow in a press release for the report. But, she said, “it can impact how employees view your organization and the kind of ambassadors they will be when they come in contact with your customers, shareholders and community members. There are definitely positive benefits to be had.”

Leaders of organizations should be mindful of where CSR investments pay off, and not expect miracles. Although some immediate benefits of CSR may be seen, the dividends usually accrue over time. CSR is more about building a long-term reputation for an organization, and not a quick fix to retain employees or improve public perception. Companies mindful of their CSR reputations can use their actions to not only bolster the commitment of current employees, but also to attract talent in the future.

How does corporate social responsibility figure into your company’s employee retention and satisfaction plans? Did you even consider the benefits to your staff when the program began? We’d love to hear how CSR is working in your organization; feel free to share your experience in the comments below.