The new normal in this economy is shaping up to be anything but normal. Businesses that have thrived for decades as industry icons are now permanently upended by the forces of the Web, social media, and new technologies that are crashing over the economy like a tidal wave.

Industries are experiencing systemic failure as a result of the digital revolution, coupled with an economy stuck in reverse. As noted in the book Macrowikinomics: Rebooting Business and the World, many industries have simply come to the end of their natural lifecycles, and business is going to have to be reinvented around a new set of principles including transparency, integrity, and collaboration.

As a result of these changes, the role of the CEO must evolve as well. The next generation of business leaders will require new talents and a different set of skills to successfully grow business over the next decade. A modern CEO will focus on creating a business culture that's expansive, mapping a social purpose to the creation of goods and services. The new CEO will also change the way we think about leadership, and create a bulwark against the tide of business challenges coming our way over the next decade.

Here are three key characteristics for the modern CEO:

1. No Fear Communications-- The Modern CEO must shake off the "analysis paralysis" and listen and engage with social media. While it sometimes seems impossible to manage the fire hose of information, social channels provide what CEOs need most - unfiltered feedback. What's more, social media is the gift that keeps on giving. It's an early warning system, an instant feedback loop, and a brand sentiment barometer. Although CEOs are increasingly discussed in online venues, few are actually using social media to spread their own message. In a Weber Shandwick Study, nearly two-thirds of CEOs were not engaging online at all, yet those who are enjoyed a better reputation with customers. CEOs need to blog, tweet, fan, follow, and friend their way into the hearts and minds of stakeholders.
2. No Fear Ambition-- A Korn Ferry Study challenged organizations to identify future CEOs by distinguishing between blind ambition and true potential, the latter often being harder to identify. Today's CEO has to be comfortable in the digital realm, with ambitions to embrace mobile and social technologies and be willing to take a company in new directions. TechCrunch notes that it is critical that Chief Executives have the right kind of ambition. That is, ambition for the success of the company rather than ambition for themselves. In 2011 we need to take this one step further. A Modern CEO needs to have ambition for the success of its employees, suppliers, the company, the community, and the planet.
3. No Fear World View -- To achieve success today, CEOs need to cultivate an external world view which guides the company in the broader context. For the Modern CEO, The Triple Bottom Line has become the ubiquitous measure of success: People, Planet, and Profits. The Edelman 2010 goodpurpose® Study provides excellent insights into the rapid globalization of Corporate Social Responsibility (CSR). Consumers in developing countries are leading the way in their drive to buy from companies that are sustainable, and demonstrate a global consciousness. Consumers in Brazil, China, India and Mexico are all more likely to purchase and promote brands that support good causes, outpacing peers in the west. U.S. companies can take lessons from these emerging markets, where eight out of ten consumers expect brands to donate a portion of their profits to support a good cause.

The characteristics of a great CEO will continue to evolve as society changes, and for a while it will be rough sledding. There is no doubt that a change is imminent however, as consumers and shareholders demand it. Right now 64% of consumers believe that it is no longer enough for corporations to give money; they must integrate good causes into their everyday business. While CEOs still need to set vision and strategy, going forward that vision will be mapped to the social purpose that the company actually serves. These are the realities of a global, interconnected world.

Ann Charles is CEO of BRANDfog, offering social media and Corporate Social Responsibility strategy for CEOs, and founder of The Great Leaders Conference, celebrating Great Leaders in CSR, Social Advocacy and Sustainability.

by Kenny Moore
www.kennythemonk.com

Before I came to work in corporate America, I spent 15 years in a monastic community as a Catholic priest.  Actually the work’s proven to be quite similar, only the pay’s now a lot better.  With all the recent scandals plaguing the business world, the question of integrity often arises: How can I tell if an executive is trustworthy? What are the signs to look for in promoting leaders in this new era of doubt and suspicion?  With over 20 years in the workplace, here’s my litmus test for gauging executive credibility and trust.

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1 – How do they treat waiters?

Character is revealed by how we treat those with no power.  Watch how executives act around folks who have a vulnerable stature in the community: waiters, secretaries and bathroom attendants.  People who are powerless draw out our internal dispositions.  No one watches how you treat those on the margins.  If what we do when nobody’s watching reveals character, start paying closer attention.  Executive assessment has now become as plain as day.

If you can’t join your corporate bosses for lunch, do the second best thing: observe how they act around children.  Johnny Carson never liked having kids on The Tonight Show because they stole the limelight and often got more laughs.  People who are focused on themselves and require absolute control and personal adoration don’t mix well with children.  So at the next company picnic, be vigilant about how your leaders respond to the kids in the crowd.  It’s more statistically significant than 360-degree feedback.

2 – Can they pass the “Carl Sandburg test”?

This Chicago poet was the champion of ordinary folks, the common men and women of the workplace.  Pay attention to how executives relate to the folks who make up the rank and file of organizations.  These are not your high potentials that get chauffeured away for Executive Development. They’re the ones who do the chauffeuring or stay behind and get the work done.  Corporate success resides in engaging their passion and commitment.  Sam Walton’s spirit must have plummeted when news reached Heaven about rogue Wal-Mart managers locking store doors and forcing their laborers to work unpaid overtime.   I wonder if there’s an Enron in the making somewhere in that corporate culture?

Look closely at how executives treat their daily laborers.  Do they talk with them and invite them to any of their employee meetings?  Do they have a personal relationship with a few and know something about their families?  It gives me hope when I see my leaders authentically relate to our entry-level workers.  If it were up to me, Sandburg’s “The People, Yes” would be required reading for climbing the corporate ladder.  I believe most of the world would respond favorably to a C.E.O. who could quote poetry.

3 – What’s their “interior” business conversation?

Part and parcel of business life is making decisions.  Whenever I can, I listen for the hidden dialogue that’s used in pondering and resolving ethical business issues.  What goes into the executive’s moral judgement-call?  Is it only about profit, sales and career advancement?  Is there any semblance of an “interior life” that exists within this business leader?  Some  consideration of purpose, meaning or legacy?  Are there other facets being viewed: impact on the customer, the environment and the local community?  Was some thought given to corporate values, ethical principles or (God forbid!) employees’ feelings?

I still remember the day when I was hosting an executive meeting and we were informed that one of our managers had just died of cancer.  As the President shared the news with the group, he then asked for a minute of silence for him and his family.  Moments later, we composed ourselves and continued the meeting.  This small gesture said volumes about how the executive viewed his workers and their contributions.  I think that was the juncture where I fell in love with my company.  Something inside me realized that corporations are truly human systems - they live, breathe and grow.  And I decided that they’re worthy of my affection.  It’s sort of like being with family.  Not that I always like what they do, but I work at loving them just the same.

4 – Do they occasionally see themselves as part of the problem?

I’ve grown weary of hearing every C.E.O. who gets before the media, glibly announce: “We have no ethical problems in my company.”  Huh?  If we’ve learned anything in these recent months - it’s that all man-made systems are flawed and full of mistakes.  As long as organizations are comprised of people, they’re not going to be infallible institutions.  This is something even the Catholic Church, experts on infallibility, have recently come to appreciate.  The revealing executive question is: “What is your contribution to the problem that you’ve come here to explain away?”  If they see none, then we’re in for trouble.

Not that I’m asking all executives to bare their corporate souls in public, but business leaders need to create the environment for surfacing flawed practices and taking decisive action.  This line of thinking has a confessional aspect to it, and the priest in me likes it.  I find that those who have the humility to acknowledge corporate shortcomings offer us some hope that business justice will eventually be served.

5 - Can they make the workplace friendly for artists?

My favorite definition of integrity is “… a firm adherence to moral and artistic values.” The moral part of this discussion is obvious.  The artistic side often gets lost in business.  Executives can’t rely solely on accountants and engineers to safeguard the integrity of our corporate institutions.  We need artists to complement their efforts.  They are the ones who have the language, mythology and requisite skills for building the spiritual side of business.  In large part, it is the voice of the artist that has remained silent during these corporate failures.  It is they, however, who are the shamans of the 21^st century.

Business and religious leaders have left us feeling violated and without hope.  We need spokespeople for the Sacred and the True, which co-exists within the world of commerce.  Our organizational charts long for those who can use word, color and brush to reveal that the world has became surprisingly small.  That my individual action reverberates across the globe.  Artists  remind us that misdeeds done by a few can injure the many.  Just as we look to our internal “adult” for moral direction, we should look externally to the poets, painters and mystics in our places of work to shore up the frailty of the human condition in the marketplace.  Like Walt Whitman of old, I believe that present day artists will usher in a new era of celebration in business … revealing the sacredness of the human spirit, its vast potential for world good and its rectitude in the face of deceit and transgression.

It’s a message of hope.   The Corporate world could use more of it these days.  I believe it’s a legitimate demand to place upon our leaders.

P.S.  If you’re thinking about writing me, give in to the temptation.   I love getting mail ... and being influenced by what you have to say.  Please e-mail me at kennythemonk@yahoo.com.

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Kenny Moore (www.kennythemonk.com) is co-author of The CEO and the Monk: One Company’s Journey to Profit and Purpose (John Wiley and Sons), rated as one of the top ten best selling business books on Amazon.com and based on his experiences as a Human Resources executive for a large international energy company where he reported directly to the Chairman and CEO.  Kenny’s numerous writings have been published in Warren Bennis’ Leadership Excellence magazine, OD Practitioner and The Journal for Quality and Participation. He is also an "Executive in Residence" to the Institute for Corporate Productivity (i4cp).

Prior to his corporate career, Kenny spent 15 years in a monastic community as a Catholic priest.   He is now President of Kenny Moore Consulting, LLC and is a well-regarded keynote speaker, executive coach and business consultant in the areas of Leadership Development, Change Management and Employee Engagement. Kenny Moore can be reached at kennythemonk@yahoo.com.

It has been fascinating to watch over the last decade as more investors around the world actively embrace the importance of companies acting responsibly on environmental, social and governance (ESG) issues.  And equally, if not more important, we have seen companies globally step up and confirm the importance of being a responsible corporate citizen and its central importance for protecting and building shareholder value.

Walden Asset Management recently conducted research on how companies see their roles in this evolution. The wide ranging quotes compiled below all connect to the premise that being a responsible company is good for the bottom line.  What’s significant about the quotes is that they all come from the companies themselves, drawn from several dozen corporate social responsibility reports (CSR) including a wide range of industries.

Please understand that including a quote from a company does not mean that I or Walden Asset Management automatically think this company is a “living model” for good CSR reporting or performance.  However, these quotes do illustrate the expanding belief that CSR has become vitally important for a company’s business, and that transparent reporting is, as one CEO said, one of “the prices of doing business today.”

Special thanks go to Carly Greenberg, a Summer Associate at Walden, who painstakingly reviewed dozens of CSR reports to gather this information.

Industry: IT

Intel

From the President and CEO statement, Paul S. Otellini

“Corporate responsibility is about doing the right things right.”

“Our approach has created value not only for our stakeholders and society, but also for Intel.  We have reduced costs through energy conservation investments, minimized risks by proactively working with our communities and supply chain, and enhanced our reputation as a leading corporate citizen by building trusted relationships around the world.” (pg. 2)

HP

“As one of HP’s seven corporate objectives, global citizenship has long been integral to the success of our business. We’re responding to pressing issues, such as mitigating climate change, using energy more efficiently, enriching education and improving healthcare, by providing solutions that are transforming how people live, work and connect.” (pg. 3)

Dell

From the Letter from CEO, Michael Dell

“Dell has a full-time commitment to being a responsible corporate citizen. It’s a commitment driven by the types of goals, strategies and accountabilities that characterizes every part of our business.” (pg. 4)

From the Text of the Report

“We live in an increasingly complex world. That reality, combined with the financial downturn of the global economy and the issues facing our planet and our communities, means business as usual is not enough. To make a meaningful difference, we must inspire and innovate….

"During times like these, we must continue to build trust with customers and stakeholders by demonstrating our positive impact on society and the planet and developing meaningful measures for reporting our progress. Corporate responsibility is a critical component of Dell’s overall business. We are committed to being a responsible corporate citizen.” (pg. 6)

Xerox

From the Letter from the CEO, Ursula M. Burns, and Chairman of the Board, Anne M. Mulcahy

“Despite the toll the recession has taken, we are pleased to report that it has not caused us to waiver from our belief in the need to behave responsibly as a good corporate citizen in the communities and countries in which we operate. There are two broad reasons for that – a belief that good citizenship is the right way to behave and an equally important belief that behaving the right way is a good thing for our business.” (pg. 2)

“The more we have integrated sustainability into our business operations, the more it has become a part of our DNA. We like to think of ourselves as a leader, still pushing the boundaries of what is possible.” (pg. 2)

“We were an early leader in the sustainability movement because we thought it was the right thing to do for the environment. But we discovered something else along the way. Every one of our innovations ended up either saving us money or creating new markets and new revenue. We found, in other words, that we don’t have to choose between the environment and profit. We can do both.” (pg. 3)

“Conducting our business with integrity and transparency builds credibility and attracts investors.” (pg. 4)

“Nurturing a greener world through sustainable innovation and development saves money, creates value and helps develop new markets.” (pg. 4)

Industry: Energy

Shell:

From the CEO introduction statement, Peter Voser

“Safety, environmental and social performances are now closer to the core of our business plans and decisions.” (pg. 1)

“I believe sustainable development works best when it is thoroughly integrated in our business decisions at the very earliest opportunity…That is exactly how it must be if we are to meet the complex challenges ahead in the most effective and responsible way.” (pg. 1)

From the interview with CEO Peter Voser, interviewed by Aron Cramer

“Sustainability is central to the way we do business, our business principles and our long-term strategy, so we take a very far-reaching view, not a short-term view.  It means to me that we help to meet the growing energy needs of the world in economically, environmentally, and socially responsible ways.  You can’t have one without the other two” (pg. 7) –Peter Voser

“We wanted to embed sustainable development as deeply into the business as possible” (pg. 7) –Peter Voser

Exxon Mobil:

“It is our view that successful companies are those that see business objectives and sustainability objectives as interlinked.” (pg. 2)

“For a number of years, our business lines have been incorporating sustainability considerations in their operations and sharing the outcomes with stakeholders.” (pg. 2)

“Our disciplined approach and long-standing commitment to corporate governance have contributed to our continued success during the global recession of 2009.” (pg. 15)

“We believe that an unwavering commitment to high ethical standards and business integrity is critical to our competitive advantage and shareholder value.” (pg. 16)

Industry: Utilities

Duke Energy

From the Letter from the Chairman and CEO, Jim Rogers

“In tough economic times, when every aspect of our business is under scrutiny, some might ask whether we can afford to focus on sustainability. To that I respond: Can we afford not to?” (pg. 4)

“Sustainability – operating our business in a way that is good for people, the planet and profits – is, in my opinion, no longer optional. It is the strategic and decision-making approach we are following at Duke Energy to create long-term value.” (pg. 4)

“At Duke Energy, sustainability describes the way we work; it is a competency that leads to improved risk management, efficiency and innovation for today’s complex, resource-constrained and connected world.” (pg. 4)

Industry: Telecommunications

AT&T

“At AT&T, when we talk about 'sustainability,' we’re not just talking about the environment. We’re talking about a broad array of initiatives that will make our business and communities stronger well into the future.” (pg. 13)

Verizon

From the Message from the Chairman and CEO, Ivan Seidenberg

“Our corporate responsibility process helps us assure that our practices keep pace with the evolving needs and expecta­tions of our customers.” (pg. 7)

“We have built a sustainable model for incorporating corporate responsibility into the way we manage our business.” (pg. 7)

Industry: Food & Beverage

The Coca-Cola Company

From the Chairman and CEO Letter, Muhtar Kent

“In the midst of the global financial downturn, the economic, environmental and social implications of business are more important than ever. There’s no question that the world is undergoing a massive resetting of priorities, values and expectations.”

“The strength and sustainability of our brands are directly related to our social license to operate, which we must earn daily by keeping our promises to our customers, consumers, associates, investors, communities and partners. It is an honor, and a responsibility that we take very seriously.”

From the Text of the Report

“LIVE POSITIVELY^™ is our commitment to making a positive difference in the world. Through redesigning the way we work and live, we consider sustainability as part of everything we do. As we act with an eye toward future generations, we will focus on driving business growth and creating a more sustainable world.” (pg. 12)

Kraft

From the Message from the Chairman and CEO, Irene B. Rosenfeld

“To build and sustain brands people love and trust, one must focus—not only on today but also on tomorrow. It’s not easy…but balancing the short and long term is key to delivering sustainable, profitable growth—growth that is good for our shareholders but also good for our consumers, our employees, our business partners, the communities where we live and work, and the planet we inhabit.” (pg. 5)

Industry: Materials

Alcoa

From the Message from the Chairman and CEO, Klaus Kleinfeld

“During these tough economic times, we recommitted ourselves to integrating sustainability as a core value for Alcoa; protecting the health and well-being of our employees and our communities; conducting business with the highest code of ethics; preserving the environment and our natural resources; and earning our license to operate each and every day.”

The Dow Chemical Company

“In short, we are committed – through chemistry – to the betterment of global humanity. And it is this commitment that drives all of our strategies for growth and profitability.” (pg. 3)

From the Letter from Chairman and CEO, Andrew Liveris

““Setting the Standard for Sustainability” is our desire to have corporate citizenship inherent in everything we do as a global corporation, directly supporting our vision of being the largest, most profitable and most respected chemical company in the world.” (pg. 20)

From the Statement from CEO presenting overall vision, Andrew Liveris

“We see sustainable development as an opportunity to tap new markets that create value for our customers, consumers and the planet.” (pg. 23)

” By integrating sustainability elements into every facet of our business – from our product offerings to our energy use – we are creating a better future for our Company and the world.” (pg. 23)

Industry: Consumer Services and Products

Procter & Gamble

From the President and CEO Statement, Bob McDonald

“In fact, our growth strategy for the coming decade is linked tightly to our Purpose. We will grow P&G’s business by touching and improving more consumers’ lives in more parts of the world … more completely.

"To execute this strategy and fulfill the Company’s Purpose, we must grow responsibly and sustainably. As a result, Sustainability is at the heart of P&G’s business model. Keeping Sustainability at the core of our business fuels innovation and strengthens our results.” (pg. 4)

“We’re a company that focuses on growth now and for generations to come, and therefore Sustainability should and will be a focus area for me.” (pg. 4)

Nike

From the Letter from the CEO, Mark Parker

“We saw that doing the right thing was good for business today – and would be an engine for our growth in the near future. With each new discovery and partnership, we willingly gave up old ideas to shift our thinking toward a better, smarter, faster and ultimately more sustainable future – financially, environmentally and socially.” (pg. 4)

“All companies face a direct impact from decreasing natural resources, rising populations and disruption from climate change. And what may be a subtle effect now will only become more intense over the next five to ten years. Never has business had a more crucial call to innovate — not just for the health and growth opportunities for our companies, but for the good of the world.” (pg. 5)

“We see sustainability, both social and environmental, as a powerful path to innovation, and crucial to our growth strategies.” (pg. 5)

“And for all the athletic and cultural and financial successes of the company, believe our work in sustainable business and innovation has equal potential to shape our legacy.” (pg. 5)

“There is now only one path and it leads to greater sustainability, equity, growth and prosperity.” (pg. 5)

Wal-Mart

From the Letter from CEO, Mike Duke

“I meant we would make sustainability a priority throughout our entire company and we would act with a sense of urgency.” (pg. 3)

“It shows that even during the economic crisis, our company does not slow down on sustainability or even just stay the course; we redouble and strengthen our efforts.” (pg. 3)

“When we look at the world today and the trends that will shape the world in the future, we see that sustainability is no doubt one of Wal-Mart’s greatest opportunities to make a difference for our business, our communities, our customers and the planet.”  (pg. 5)

Kimberly-Clark Corporation

From  the “Choices for a Sustainable Future” section

“Put simply, sustainability is critical to our future success. It’s an enormous challenge. But we choose to do it, and to work with those who support positive change, because it’s the right thing to do. That’s one choice that will never change.” (pg. 3)

From the Message from the Chairman and CEO, Tom Falk

“Sustainable business practices are woven into the fabric of our Global Business Plan. We challenge ourselves every day to look for ways to sustain the resources we enjoy today for generations to come. That’s why Kimberly-Clark is focused on setting and achieving sustainability performance metrics for our brands and facilities. And through our resource stewardship, we are demonstrating to our stakeholders that sustainability isn’t just the right thing to do, it’s also good business.” (pg. 4)

Industry: Automotives

Ford

The letter from Executive Chairman and Chairman of the Board, William Clay Ford Jr.

“We continue to aggressively search for new ways, both big and small, to improve our economic and environmental sustainability. Often the actions we take accomplish both goals.”

“Creating a strong business and building a better world are not conflicting goals – they are both essential ingredients for long-term success.”

From the Letter from President and CEO, Alan Mulally

“We also know that the successful companies of the 21st century will be those that understand global sustainability issues and offer viable solutions. Through a decade of work and a disciplined reinvention of our Company, we have built sustainability into our business model.”

Industry: Pharmaceuticals

Pfizer

From the Letter from the Chairman of the Board and CEO, Jeff Kindler

“In times like these, some companies might choose to focus simply on running their businesses and think of their corporate responsibility work as a luxury that can wait for better times. Not Pfizer. We believe successful companies can’t do one without the other.” (pg. 5)

Industry: Capitol Goods

Caterpillar

From the CEO and Chairman’s Message, Jim Owens

“We’re making sustainable development part of how we do business. In 2007, in the midst of our growth period, we set bold aspirational goals for 2020, and abandoning those goals, in the face of dramatic economic challenges, was simply not an option. This isn’t a passing fad that we only care about during prosperous times. It’s a serious commitment. And it’s a real business opportunity, now and in the future.”  (pg. 2)

“Good things happen when we integrate sustainability into our products, services and solutions. We improve our competitiveness and create and capture customer value. We save money, reduce our environmental impact and improve employee satisfaction. And by partnering with others, we can help ensure sound policies that promote sustainable development and innovation.” (pg. 2)

“In the next decade, the most successful companies will be those that integrate sustainability into their core businesses. That’s what we’re doing at Caterpillar, and we are also helping our customers do the same.” (pg. 3)

“Some of Caterpillar’s fastest-growing businesses are those focused on the sustainability of materials and resources.” (pg. 3)

“In fact, the economic downturn has helped secure sustainability’s place at the core of our strategy. It’s not something extra that we do during good times. It’s something that creates and captures value for the company, our customers, investors, employees, suppliers – and really, the world.”  (pg. 4)

Industry: Industrials

General Electric Company

From the Letter from the Chairman of the Board and CEO, Jeff Immelt

“Successful companies can only create solutions to some of the world’s toughest problems by working collaboratively. Business must engage — with communities, governments, customers and each other — because the status quo is not an option. It is not only possible for a global business leader to be a good citizen, but a requirement.” (pg. 4)

“Based on a commitment to integrity, a commitment to performance and a commitment to learn and grow stronger, GE is creating a better company coming out of this reset — a renewed focus that is better for GE, and also better for our world.” (pg. 4)

Trade Associations and Consultants

BSR Report 2009: Innovating for Sustainability

From the Letter from the President and CEO, Aron Cramer

“2009 presented numerous challenges for the entire world, not least for all of us dedicated to sustainable business. At the start of the year, many observers thought companies would consider corporate responsibility to be an expendable luxury that could be cut along with other discretionary budgets. 'Sustainability,' they predicted, would be redefined as 'basic economic survival.'  Fortunately, these predictions did not play out. Rather, 2009 showed us that sustainability can—as we had argued—help pull business out of the recession.” (pg. 1)

“Despite the difficulties presented by the economic conditions, it is clear that sustainability remains as important to business—and to the world—as ever before.” (pg. 1)

From the Text of the Report

“What’s more, revived economic growth is again exacerbating existing challenges related to climate, water, and biodiversity.  Long after the recession passes into history, these trends will be shaping economic conditions. They are the reference points that business should consider in shaping their strategies.

More and more companies recognize this. As a result, they are making sustainability not just a program, but, in fact, the defining feature of success in a fast-changing world.” (pg. 5-6)

“While calmer economic conditions have returned, the road to tomorrow’s prosperity is not the same as what came before. The businesses that assert leadership, take a comprehensive approach, use sustainability as a driver for innovation, and champion sustainable consumption will not only become the sustainability champions, but also the most successful companies in the years ahead.” (pg. 11)

Accenture Report: “A New Era of Sustainability”

This report summarizes findings from a survey of CEO’s globally

From the Forward by Georg Kell, Executive Director UN Global Compact, and  Bruno Berthon, Managing Director Accenture Sustainability Services

“It is a decade that, CEOs believe, could usher in a new era where sustainability issues are fully integrated into all elements of business and market forces are truly aligned with sustainability outcomes.” (pg. 2)

“Today’s CEOs are more convinced than ever of the need to embed environmental, social and corporate governance issues within core business. But they are also convinced that good performance on sustainability amounts to good business overall: The imperative to act has shifted from a moral to a business case.” (pg. 2)

From the Text of the Report

“93 percent of CEOs see sustainability as important to their company’s future success.” (pg. 10)

“Demonstrating a visible and authentic commitment to sustainability is especially important to CEOs because it is part of an urgent need to regain and build trust from the public and other key stakeholders, such as consumers and governments—trust that was shaken by the recent global financial crisis. Strengthening brand, trust and reputation is the strongest motivator for taking action on sustainability issues.” (pg. 10)

“Our survey found widespread agreement among CEOs about what the next era of sustainability will look like: It is one where sustainability is not only a separate strategic initiative, but something fully integrated into the strategy and operations of a company.” (pg. 11)

“96% of CEOs believe that sustainability issues should be fully integrated into the strategy and operations of a company (up from 72% in 2007).” (pg. 14)

“80 percent of CEOs believe that the economic downturn has raised the importance of sustainability as an issue for top management.” (pg. 16)

“74 percent say that the downturn has led their company to align sustainability more closely with core business.” (pg. 16)

“Also bolstering the continued commitment to sustainability during the economic downturn has been demand for sustainable products and services.” (pg. 18)

From “Industry perspectives: Belief in the importance of sustainability varies considerably by industry”

“Fully 100 percent of automotive CEOs identify sustainability issues as important or very important to their future success. This finding reflects how environmental concerns present both a challenge to the industry and an opportunity to serve a new market with low carbon alternatives such as e-vehicles.” (pg. 19)

“CEOs from the energy and utilities sectors also see sustainability issues as critical to their future success.” (pg. 19)

“Wolfgang J. Ruttenstorfer, CEO and Chairman of European oil and gas company OMV, said, ‘I regard these issues as bringing competitive advantage in the long term; a transparent approach clearly oriented toward values, human rights and environmental objectives is the only right approach that will be  appreciated in the long term.’” (pg. 19)

“Support is especially high in the banking industry, for example: 68 percent of CEOs note that sustainability is “very important” to their success…a commitment to environmental and social issues may be a prominent part of restoring brand value as the financial industry struggles to regain the trust of consumers.” (pg. 19)

“CEOs in the communications and electronics & high-tech sectors are the least likely to identify sustainability issues as critical to their future success— just 22 percent and 31 percent of those industries’ CEOs, respectively, cite sustainability as very important to their future success…leading companies in these sectors are beginning to think beyond the direct physical impacts of their business on sustainability issues, and are looking to shape a vision of the role that they can play in society by driving sustainable development…providing companies around the world with new technologies and ways of working that will help them achieve their own environmental objectives.” (pg. 19)

KPMG

This report published every 3 years; following statements are from the 2008 report.

From the Forward

Message from Global Head of Citizenship and Diversity, KPMG International, Lord Michael Hastings of Scarisbrick CBE

“As you will see in the results, there has been an important shift in this direction with CSR reporting becoming the norm instead of the exception within the world’s largest companies. Three years ago only 50 percent of companies surveyed included CSR in their reporting, in this survey the number jumped to 80 percent. More companies report the information as it relates to specific objectives and more companies include this information in their annual reports.” (pg. 5)

Message from Global Head, KPMG Sustainability Services Partner, KPMG in the Netherlands, Wim Bartels

“But would these reports pass the “greenwash” test? For the first time in the 15 years we have been doing this survey, we think they just might. Nearly all of the Global 250 companies that report also publish a corporate responsibility strategy with defined objectives.” (pg. 5)

From Text of the Report

“One of the most significant findings of the 2008 survey is that corporate responsibility reporting has gone mainstream - nearly 80 percent of the largest 250 companies worldwide issued reports, up from about 50 percent in 2005.

National trends - National level companies trail the G250 with only 45 percent of the total sample issuing reports, but numbers vary from less than 20 percent in Mexico to more than 90 percent in Japan.” (pg. 7)

“Now that some of the world’s largest companies have been able to quantify the business case for corporate responsibility and reporting, it is likely that the practice will spread through countries and sectors to the smaller players.” (pg. 7)

“Reporting is necessity if companies are to know and understand their social and environmental impacts, and how to minimize the dangers and maximize the opportunities associated with new and emerging challenges.” (pg. 10)

““In these challenging times it is now perhaps more crucial than ever for companies to show their commitment to transparency through sustainability reporting. Effective public disclosure of economic, environmental, and social performance can enable a company to rise above the rest and take advantage of the opportunity to position itself as a forward-thinking leader among an increasingly sophisticated constituency of stakeholders. No longer is publishing a sustainability report merely a matter of mitigating risk to reputation and costs. More than ever, employees, investors, and consumers are looking to the companies from which they buy, invest in, and work for to join them in addressing the critical sustainability issues of the day in innovative ways.” (pg. 17)--Judy Henderson Board of Directors, Global Reporting Initiative

About two thirds of socially responsible mutual funds in the U.S. outperformed industry benchmarks during the 2009 economic downturn, according to data compiled by the Social Investment Forum (SIF), a trade association for the funds.

SIF said data on 160 socially responsible mutual funds found that 65 percent of them outperformed their benchmarks last year across nearly all asset classes, including balanced, large cap, small cap and global funds, as well as bonds.  SIF said the performance data it analyzed was provided by an independent third party, Thomson Reuters.

According to the SIF, particular standouts on socially responsible mutual fund performance were 73 large cap funds where nearly three out of four (72.6 percent) outperformed the S&P 500.  On average, large cap funds bested the S&P 500 by more than 6 percentage points.  A majority of the large cap funds offered by SIF members also outperformed the S&P 500 over three years and over 10 years, the association said.

Lisa Woll, CEO of Social Investment Forum, said: “In the wake of the financial crisis more and more consumers are concerned about runaway executive pay practices and other forms of corporate misconduct and sustainability risks.  The SIF’s Mutual Fund Performance Chart allows retail investors to explore which SRI funds incorporate these and other sustainability issues into their investing and proxy voting practices.”

The 22 fund families represented in the SIF analysis are: Access Capital Strategies; AHA; Appleseed; Ariel; Azzad; Calvert; Community Capital Management; Domini; Gabelli; Green Century; Integrity; Legg Mason; Meeder Asset Management; MMA Praxis; Neuberger Berman; New Alternatives; Parnassus; Pax World; Portfolio 21; Sentinel; Walden; and Winslow.