Each week, we compile and summarize the top articles on corporate social impact, impact investing, and conscious capitalism from around the world, and deliver it to your inbox every Saturday morning for you to enjoy and digest.
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YES, IT IS POSSIBLE TO PRESERVE A CORPORATE MISSION DURING AN ACQUISITION
Seventh Generation is one of the old-guard conscious companies. The household and personal care products maker has a strong commitment to the environment, to communities, and to standing up for causes it believes in. In September 2016, global giant Unilever announced it was acquiring the Vermont-based brand. A few months later, we caught up with Seventh Generation’s CEO John Replogle to get the scoop on how things have changed inside his company since the acquisition. The article covers the role of business in society, what it’s like to be a Best for the World B Corp within a larger brand, how Seventh Generation is using new forms of governance to preserve its mission, and more.
NEW EVIDENCE THAT REWARDING EXECUTIVES FOR CORPORATE SOCIAL RESPONSIBILITY REALLY DOES WORK
The Kellogg School of Management at Northwestern University took a close look at the growing practice of CSR contracting last week, and it seems that they like what they see. Corporate social responsibility contracting refers to the practice of linking executive compensation to achieving CSR goals. The question then becomes whether the goals are designed to mark substantial progress, or are they simply public relations “fluff.” In other words, are executives being rewarded for genuine achievements or are they simply collecting a bonus for successful greenwashing campaigns? Kellogg describes the research of professors Dylan Minor, Bryan Hong and Caroline Flammer in its Kellogg Insight publication under the self-explanatory headline, “Rewarding CEOs for Corporate Social Responsibility Pays Off for Society—and for Firms: CSR contracting encourages executives to sacrifice short-term payoffs for long-term gains.”
CORPORATE SOCIAL RESPONSIBILITY IS AN ESSENTIAL PART OF TODAY’S MBA
For many years — with a few notable exceptions — many companies paid only lip service to doing their bit. But over the past decade this has changed. Businesses are aware that what they do has an impact on society and the environment. This change has been reflected in the way that corporate social responsibility and ethics are taught in business schools, particularly on MBA programs. While MBA students expect to learn about finance, operations, marketing and strategy, an insight into to the latest CSR thinking and ethics is also expected. But ethics is a difficult subject to teach and securing the attention of MBAs can be challenging. The subject requires the consideration of complex ideas and competing priorities. There is often no right or wrong answer. A company’s success is measured by its bottom line, but how do you measure “acting responsibly?”
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BRIDGING THE GAP BETWEEN BUSINESS AND SOCIAL IMPACT.
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