PPB June 2021

perspectives Robert I. McLean, Jr., CAE, CPA, CEM Interim President How CSR Guides And Strengthens Today’s Businesses I n the April Perspectives column, I wrote about purpose and the importance of adopting a corporate social responsibility (CSR) program. I challenged the assumption that maximizing shareholder return was the only measure of success for a corporation. I offered that corporations have a responsibility to all stakeholders: customers, employees and the community, as well as their shareholders. Finally, I cited research indicating that companies with a strong commitment to corporate social responsibility actually do benefit in terms of profitability and satisfied shareholders. As a follow-up, this article discusses how various types of CSR can benefit your organization. I’ll wrap up this topic in the August issue by addressing how CSR can benefit your community and other stakeholders. Diversity, Equity and Inclusion This past year, the increased and long-overdue awareness of systemic racism and discrimination of Black, indigenous and people of color (BIPOC), and other diverse groups became a rallying point for our country. As a result, individuals and companies have stepped up their commitments to improving diversity, equity and inclusion in their organizations. Here’s what this means: Diversity is striving to ensure that your workplace is comprised of members from different groups including race, age, gender, religion, sexual orientation, etc. This includes aspects that are unseen as well, like learning differences. Equity is about creating a work environment that is free from bias, harassment and discrimination of any kind. Inclusion is embracing those differences so every employee feels welcome and can have an impact on their organization because of the very qualities that make themwho they are. So why is this important? According to a McKinsey & Company report, “Companies in the top-quartile for ethnic/cultural diversity on executive teams were 33 percent more likely to have industry- leading profitability. That this relationship continues to be strong suggests that inclusion of highly diverse individuals—and the myriad ways in which diversity exists beyond gender (e.g., LGBTQ+, age/generation, international experience)—can be a key differentiator among companies.” PPAI and its Board of Directors have stepped up and created a Diversity, Equity and Inclusion Task Force which is charged with creating awareness and educating our members as to the value of DE&I in the workplace and our industry. Sustainability Over the past two decades, sustainability has become increasingly important to our industry. Research shows that sustainability has business benefits when integrated into business operations. Four major advantages for practicing sustainability are: 1 Improve brand image and competitive advantage 2 Increase productivity, and reduce costs and waste 3 Attract employees and investors 4 Make shareholders happy The last item (but not the least important) is that it makes shareholders happy. Improved brand image leads to more sales and, along with reducing cost, will increase profits. Investors, of course, want increased profits, but more and more investors want to invest in companies that are good actors when it comes to sustainability. They want to be proud to do business with your company. The same would hold true for customers, bankers and vendors. For years, PPAI has taken the lead in product responsibility education, which includes sustainability lessons both from a process and product perspective. PPAI’s Code of Conduct is a tangible presentation of what adopters are doing to meet the expectations of the end buyer for product safety, social and environmental assurances. The Code of Conduct is a statement of principles. It is what a supplier would hand to a distributor and what a distributor would hand to an end buyer when an end buyer expresses those expectations. I would encourage all of you to show your support by joining the over 1,600 companies that have already adopted the Code of Conduct. You may learn more about the PPAI Code of Conduct at ppai.org/ corporate-responsibility/ppai-code-of-conduct. I am proud of the work the PPAI has done to date in advancing corporate social responsibility, both as an organization and for the industry, but I believe we can do more. I hope you’ll join me in advocating for increased visibility and accountability for our industry as well. 4 | JUNE 2021 |