B4IG Newsletter #5
In this issue:
The debate around the “Purpose” of business
Save the Date for the Working Group Workshops on March 4
The Incubator’s upcoming Collective Training Sessions
Human rights in the cocoa supply chain
And more!
From the B4IG
Over the past years, discussions around the “Purpose” of business have been heating up. Back in 2019, there was the US Business Roundtable’s revised statement on the purpose of a corporation and of course the near-simultaneous launch of B4IG; today in 2021, the new US administration is being led by a president who says that stakeholder capitalism “isn’t a new or radical notion, these are basic values and principles that helped build this nation.”
Yet there is a great deal of work needed to shore up the foundations of shareholder capitalism. One party, namely the shareholders, have a significant advantage in that they’re armed with “simple” metrics to assess financial performance while we don’t yet have harmonized metrics, not to mention a standard, to measure the social and environmental impacts created by companies.
That’s why impact measurement is such a priority for each aspect of our work at B4IG. There is still a lot of work to be done, but more and more companies have started to report on their externalities, measuring and even sometimes monetizing their impact. Impact accounting, which seemed a chimera just a few years ago, is becoming possible. From the Value Balancing Alliance (VBA) to the Kering EP&L, B4IG companies are at the forefront of the topic. And we’d also mention the Impact-Weighted Accounts Initiative, which shows how we can monetize the impacts of corporate operations, employment, and products, and reflect them in financial accounts. The implications here, in terms of both private and public actions, are considerable and important, and we believe clearly merit more and more consideration as the B4IG moves forward.
Now, on to the news!
The Actions
The Incubator is beginning a series of collective training sessions, co-designed with HEC with support from Harvard. The sessions will be dedicated to practical fundamentals on how to successfully manage and grow inclusive business initiatives. Sessions will take the form of a 2-hour webinar, with one session occurring every two weeks from March to July. All profiles are welcome, with inclusive business project managers being particularly welcome. You can see the full syllabus including dates, topics and speakers here and then register here (whether yourself or others in your organization). And don’t hesitate to reach out to hbrault@hystra.com with any questions you may have!
From B4IG Members
Mars Wrigley, part of Mars, Incorporated, published its cocoa human rights report entitled Respecting Human Rights in the Cocoa Supply Chain on February 9. In addition to updates on the progress toward having 100% of its cocoa sourced under its Responsible Cocoa program by 2025, this report contextualizes Mars Wrigley’s human rights goals within the cocoa sector. The work draws on the 2020 launch of Mars Wrigley’s Protecting Children Action Plan, aiming to tackle the root causes of this challenge head-on. Advances, learnings and insights regarding the four-point approach to identifying, preventing and mitigating human rights risks in its extended cocoa supply chain (with a focus on child labor and forced labor) are included in the report.
The Value Balancing Alliance (VBA), which plays an active role in the B4IG Impact Measurement Working Group, published the first version of its Impact Statement general methodology. Within the next weeks the VBA will publish two more papers that respectively will detail environmental and socio-economic aspects of business, including insights about successful piloting.
And again on human rights, in January Unilever published its own human rights report. As CEO Alan Jope says in his opening message, “The era of radical transparency is coming, and I welcome it.”
From the OECD
The OECD’s Global Deal Flagship Report, “Social Dialogue, Skills and COVID-19” published at the end of 2020 is now available to all. Revealing how the pandemic has exposed and intensified underlying inequalities and is having a disproportionate impact on vulnerable groups already facing insecurity, such as the low-skilled and informal workers, youth and women. It argues that social dialogue and collective bargaining have a key role to play in building back a more sustainable economy in which the benefits of growth are distributed across the whole of society. Beyond the challenges brought by the COVID-19 crisis, the report underlines the benefits of involving social partners in skills development and life-long learning programmes. It also shows how Global Deal partners have engaged in efforts to promote and strengthen social dialogue and sound industrial relations.The executive summary of the report is available to read in English, French and Spanish, and the launch event is also available for viewing via the webcast (EN, FR, ES).
Around the Globe
How has the Biden administration started to work on issues of inclusivity?
Via executive orders, the administration has already begun implementing Diversity & Inclusion initiatives in the workplace, starting with the January 20 Executive Order that directs agencies to “[advance] racial equity” by identifying and fixing issues in their policies and programs that prevent all races from being given the same “consistent and systematic fair, just, and impartial treatment.”
Sustainable investing has similarly been the target of executive orders and the administration’s plans for the future. On his first day in office, President Joe Biden issued an Executive Order to re-join the Paris Agreement, to protect public health and the environment, with a list of agency actions to review, including financial factors in selecting plan investments.
The choice of Anthony Blinken, a former board member of Human Rights First, as Secretary of State, among other moves, signals a desire to take a leading position when it comes to human rights globally.
Save the Date(s)
On March 4, B4IG is organizing a 2-hour online workshop showcasing the progress to date in the Working Groups. You’ll find the detailed schedule below (including direct Zoom links); and please remember to register by using this link if you have not yet received the invitation.
3pm-3:10 pm CET: Collective session - Roadmap to the December 2021 Board meeting.
3:10-4:30 pm CET: Session I - WG1 Human rights, focusing on VINCI’s pilot on fair recruitment practices in Qatar, presenting the pilot, discussing its replicability, and identifying ways in which B4IG could build on VINCI’s experience.
3:10-4:00 pm CET: Session II - WG2 Diversity & Inclusion, focusing on understanding the diversity & inclusion priorities of member companies to engage in discussion with D & I experts regarding the development of potential commitments/targets.
4:10 – 5:00 pm CET: Session III - WG2 Digital Divide, sharing digital initiatives towards young people from disadvantaged backgrounds and discussing the upskilling platform project with operational and project teams.
3:10-4:00 pm CET: Session IV - WG3 Inclusive Sourcing, showcasing four operational tools that the working group has developed to support the launch and development of inclusive sourcing practices in companies.
4:10 – 5:00 pm CET: Session V - WG3 Access to Essential Goods & Services, a walkthrough of Unilever’s Transform ‘Survive and Thrive’ platform with which the workstream has partnered to launch its service catalog for SMEs (especially those that are struggling due to the COVID pandemic).
Thanks for reading, and be sure to follow B4IG on Twitter and LinkedIn - we’re looking forward to moving down the path to inclusive growth with you!
B4IG Team