My Purposeful Journey

SuperCorp Review

“Unite people even in a world of differences”

I recently lead our CSR and Corporate Citizenship teams in an animated review of one of my favorite books: SuperCorp.  The author, Rosabeth Moss Kanter, is a Professor at Harvard Business School and constantly impresses me with her prolific authorship on management and how businesses can do well by doing good.  The latter is the premise of SuperCorp. 

 

The book reminds me of a presentation by Michael Porter at the June CECP Corporate Philanthropy Summit, on the Shared Value concept.  In the wake of the recent recession and corporate scandals, businesses face an urgency to legitimize their roles in society.  Porter called for corporations to maximize profit and competitiveness by creating shared value (CSV) between their business and society (NGOs, employees, governments, etc).  In today's globalized, ever more transparent and interconnected world, companies do not have to trade-off between social and economic benefits.

 

This concept is the outcome of the most strategic execution of corporate citizenship.  Kanter’s book provides powerful case examples from around the globe of this exciting new business shift.

 

The Vanguard company is the new corporate paradigm

At the heart of SuperCorpis Kanter’s new corporate paradigm which she calls Vanguard companies. These companies have a deeply embedded sense of mission and purpose.  Vanguard companies:

 

· Are big but human

· Are efficient but innovative

· Are global but concerned about local communities

· Use their political influence over governments to develop solutions to problems of public concern

· Align business performance with societal contributions

· Involve all stakeholders

The list of qualities goes on, but I wanted to point out two main themes:

1.    Human Capital:  If you are not generous with empowered people, they will not choose you. 

2.    Innovation: When you bring society inside the organization, possibilities increase for success at every point in the innovation process.

 

Companies have a strategic advantage to benefit society in many ways. They have strong core capabilities, have local market knowledge, are quicker to market than many NGOs and have economies of scale and scope.  They can also be powerful innovators.  Vanguard companies gain their power from their ability to integrate the pieces, create collaboration and nourish partnerships for greater innovation.  

Companies like GE are catching on.  Ecomagination is GE’s business initiative to imagine and build innovative solutions to today’s environmental challenges while driving economic growth.  In 2009, GE’s Ecomagination products earned $18 billion in revenue.  Ecomagination invested $1.5 billion in R&D last year, and plans to invest an additional $10 billion by 2015. 

As Michael Porter said, shared value creation will be THE business agenda in the next few decades.  In short, SuperCorp is one of the best books I have read on Corporate Citizenship and I recommend it to all clients, employees and friends interested in the space.  

 

Corporate Citizenship News for August 5, 2010

Company Corporate Citizenship & Cause Marketing News

Intel, MTN Collaborate on African WiMAX Venture 
Intel and South Africa's MTN recently announced a collaboration to increase broadband access in Africa and the Middle East. According to Intel sales and marketing Vice President Gordon Graylish, the partnership will “accelerate bridging the digital divide” in Africa and “give its citizens economic opportunities similar to those in developed countries.”  The companies plan to achieve this by creating more affordable PC bundles and cost-effective internet browsing devices.  Intel's venture capital division and the MTN Group will invest in emerging technology companies that are innovative and solve local business and social problems.  In partnering with MTN, Intel adds a different set of expertise to help tackle the issue and establishes a local connection within Africa.

The integrated partnership will also include a joint effort by the MTN Foundation and Intel Education's CSR department to equip students and teachers with technology skills. The collaboration aligns with Intel Foundation’s three goals to, 1) promote math and science education, 2) inspire youth around the world, and 3) give back to the community.  In June, the prestigious Committee for Corporate Excellence in Philanthropy awarded Intel for the tremendous global success and impact of the Intel® Teach Program.  Visit Intel’s CSR site for more information.  

Highlights from CSR Reports

Barilla* Releases its First Sustainability Report
“Feed others as you would feed your own children”
After a two-year development process, the family-oriented Italian food company has released its 2008 Sustainability Report.  In developing its reporting methodology which complies with GRI G3 guidelines, Barilla established a partnership with FONDACA, or Active Citizenship Foundation, a research and training organization specializing in corporate sustainability.  This thorough process supports Barilla’s long-term objective to have all company stakeholders actively participate in reporting so that sustainability is reflected in their business strategies.

This brings to mind the 2009 cause marketing campaign that Edelman created with Barilla to support its mission to help people live better, longer, in a healthier environment.  Share the Table: The Barilla Family Dinner Project communicates the value of sharing family meals and strengthens the invaluable social connections made during formative childhood years.
*Barilla is an Edelman client

Inspiration

TATA: The Evolution of a Corporate Brand 
Morgen Witzel’s new book TATA: The Evolution of a Corporate Brand is a must on our summer reading list.  We wonder, how has the Indian conglomerate developed and upheld its purpose-driven brand throughout its acquisitions straddling the automotive, steel and chemicals industries?  From the reviews that we have read, we know that the book explores the brand’s meaning, including an evaluation of internal values and external perceptions existing in India and abroad. The 140-year old Tata is remarkable for going beyond CSR, and creating shared value between it and the societies with which it engages.   As B. Muthuraman, Vice Chairman, Tata Steel Ltd. stated, “Putting society as a fundamental and integral part of their business is one of the biggest values that the Tatas have brought to the world.”  The company’s combined development-related expenditures amount to around 4% of its net profit.  To read more about their commitment to society, visit their website.

 

Richard Edelman’s Moving Notes on his Meeting with Elie Wiesel
We end today’s news brief with a thought-inducing blog post from Edelman’s CEO Richard Edelman.  He shares his impressions after meeting with Elie Wiesel, Holocaust Survivor, professor, Nobel Laureate, author and inspiration.  Professor Wiesel’s powerful words are purposeful and relevant to the societal responsibility of companies today: “You can make more of a difference today in business than in politics.”  There is more, and we encourage you to read on.