Executive Reading: December

Community Comments

‘What Matters Most: How a Small Group of Pioneers Is Teaching Social Responsibility to Big Business, and Why Big Business Is Listening’

Reviewed by Margaret Teichert and Oleg Kaganovich

Jeffrey Hollender is a 21st-century hero. In his book, “What Matters Most,” (Basic Books, Dec. 2003) he eloquently bridges the perceptual gap between “Big Business” and “the hippies throwing rocks at the Battle in Seattle.”
    Hollender, CEO of Seventh Generation and who parlayed a company that makes environmentally responsible cleaning products and paper towels into a $25 million business, writes that companies must do a better job of taking care of the environment and the communities in which they do business. He’s not just speaking as a man who is deeply committed to environmental and social justice, he is speaking as a CEO making a business argument, and it’s a damn good one.
    Together with Stephen Fenichell, Hollender writes a well-researched history and, at times, critical appraisal of modern efforts in good corporate citizenship. The book draws from examples on both extremes of the spectrum: enlightened entrepreneurs (including Ben & Jerry’s founders, The Body Shop top management, and other partners in the influential Businesses for Social Responsibility) and companies that underdog-lovers love to hate, including (gasp!) McDonald’s. Hollender looks at multiple established models of corporate social responsibility (CSR) that many large companies are starting to embrace. He considers the breadth and sincerity of companies’ efforts to tend to their stakeholders — including customers, communities and the environment — as well as their shareholders.
    Essentially, he argues that the concept of responsibility must be bigger than philanthropy as a function of public relations. Instead of relying on compliance, regulation and/or litigation as a code of conduct, many companies are learning the significant benefits of improving their environmental and social business practices and the need for “a good reputation, a strong brand and a reduced risk of liability, not just legal liability, but moral liability.”
    Hollender cites impressive examples of leaders who have become sustainability advocates, partly due to the overwhelming cost savings. 3M’s pollutionprevention program has saved the company nearly $1 billion. Interface Carpet’s waste-reduction initiative has saved $200 million. A company culture that supports a “more environmentally sound and values-based work environment can boost productivity and reduce healthcare costs. It can have a more efficient production and distribution process and reduce pollution while it saves money.” These values help businesses to attract and retain “a more loyal, committed workforce.” Not a small matter, considering the time and resources it takes to recruit and train new employees.
Continued...

• Share
  • Digg This
  • del.icio.us
  • Newsvine
  • Facebook
  • Reddit
  • Furl It
  • !Y My Web
  • Google
• Email
• Print

Recommend This

Community Comments