What counts: Building a better world through the strengths ... · Reduce Waste Reduce food waste,...
Transcript of What counts: Building a better world through the strengths ... · Reduce Waste Reduce food waste,...
What counts: Building a better world through the strengths of business
Kathleen McLaughlin
President, Walmart Foundation and
Senior Vice President, Sustainability
@WalmartGiving
#CECPSummit @CECPTweets
Business serves society: a company’s societal impact begins with its core mission
Successful companies should go beyond their core mission to strengthen society through initiatives that meet five tests
Societal impact
1. Prioritize issues that are relevant to
customer and mission
2. Aspire to reshape the system for societal and
business impact
3. Embed commitments into the business
4. Draw on distinctive business and philanthropic capabilities
5. Engage leaders of the system as partners in
transforming the system
Business impact
1. Prioritize issues that are relevant for customer and mission – Walmart example
Sustainability
Operations Food Chain Other ProductChains
12.5
Lead in energy - Energy efficiency - Renewables - Fleet
Accelerate waste reduction
Scope new arenas- Refrigerants - Water
Increase resilience of food supply- Agriculture- Beef- Seafood- Farmer training and welfare
Make healthy easy- Private label- Consumer info- Lower price of fresh food
Provide access to food- Food deserts- Food banks- Meal programs
Increase manufacturingsustainability - Energy efficiency- Factory safety
Increase materials sustainability- Recycled content - Chemicals
Optimize packaging- Recycling - Reduction
Advance Women’s Economic Empowerment- Sourcing- Training
Accelerate workforce development - Veterans- Low-income women- People of color- Small business owners
Lead U.S. Manufacturing Innovation Fund
Engage associates in philanthropy- Volunteerism- Matching
Support communities- State giving- Facility giving- Associate assistance
Enhance disaster preparedness and relief
Engagement: customers, partners and associates
Opportunity Community
Note: Initiatives include corporate and Walmart Foundation efforts
2. Aspire to reshape the system for societal as well as business impact –food system example
Source sustainably
Ensure sufficient, sustainable supply
to feed growing population
Reduce Waste
Reduce food waste, and divert
underutilized fresh food into
charitable system
Address Access
Lower price, eliminate food
deserts, strengthen food banks and meals
in schools
Make Healthy Easy
Increase access to healthy, affordable food; provide tools and education to choose and cook
healthy food
Create a Movement
Motivate customers,
partners to learn and take
meaningful action in creating a
sustainable food system
Many currently collaborating to lower GHG, preserve natural capital, promote equity for farm labor, provide food access, democratize healthy eating, address under- and over-nourishment• Private sector: retailers, food companies, farmers• Public sector: federal agencies, bi-lateral and multi-lateral agencies, state governments,
municipalities, school districts, ag extension workers• Social sector: food banks/pantries, policy makers, environmental NGOs, activists
3. Embed social and environmental commitments into the business
•CEO commitment •Bold, public aspirations•Public “Milestone” meetings•Joint commitments with suppliers and NGO partners
Leadership
•Dedicated line functions with clear roles •Communities of practice •Dedicated initiative teams to catalyze, manage results
Roles and structure
•Metrics in performance reviews•Capital planning and budget cycle •Disciplined execution•Rigorous project management and tracking
Processes andincentives
4. Draw on distinctive business and philanthropic capabilities to enhance impact
Sustainability Opportunity Community
• Energy efficiency• Waste reduction• Product chains
• Associate opportunity (hiring, advancement)
• Sourcing commitments (women-owned businesses, U.S. manufacturing)
• Hunger relief• Social impact
investments
• Retail sector workforce grants
• Training for women, minorities, veterans
• Wrap-around supports
Role/focus of the business
• Business and societal value through business initiatives
• Draws on company assets• Convenes and collaborates with suppliers • Able to support government and sector
initiatives
Role/focus of a business’ philanthropic arm
• Societal value through grants, impact investments
• Draws on company assets• Develops expertise• May depend on company for funds, but is
free from quarterly earnings pressure• Collaborates with and strengthens other
non-profits
• Local store presence and involvement
• Disaster relief
Example complementary focus in three arenas
4. Business capabilities can significantly enhance social and environmental initiatives, as illustrated in these examples
Societal initiative
•Hunger and nutrition
•Workforce development
•Disaster relief
Relevant company assets
•Food donations•Logistics know-how•Nutrition standards and
labeling
•Jobs• Insights into relevant credentials•Employees who can act as
mentors
•Trucks and equipment•Food and water•Emergency operations center
Multi-company, pre-competitive, public commitments• 8 food companies, 8M acres for sustainable ag• 10 companies, $100 Mn urban recycling fund
5. Companies are engaging in new forms of collaboration to accelerate and expand societal impact
Environmental “JBPs” with leading NGOs
Problem-solving consortia suchas the Sustainability Consortium
Innovation with NGO partners
Global Development Lab USAID
Incremental $20 billion from women-owned suppliers for the U.S. business by 2016
Incorporates five key success factors1. Societal and business impact2. Relevant to customer and business
mission3. Embedded in the business4. Draws on distinctive capabilities5. Partnering with leaders of the system
to rewire it for women
Putting it all together – example of women’s economic empowerment
Also doubling sourcing from women for international marketsand training 1 million in factories, farms, business by 2016
Parting thoughts
• Business exists to serve society
• Challenges of our time too great for governments and social sector to resolve alone; business has distinctive and complementary capabilities
• Businesses should pursue societal initiatives with the same vigor as business initiatives
– Relevant to customer and mission
– Bold aspirations to reshape the system
– Explicitly drawing on distinctive business capabilities
– Initiatives embedded into the business
– New forms of partnership across private, public and social sector required
• How are you engaged? What is one thing you could do differently tomorrow?