Leading Companies for Good by Alice Korngold
September 27, 2008
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September 27 - It is particularly poignant to hear of Paul Newman’s death after spending three days of an immersion at the Clinton Global Initiative (CGI) with people who devote their lives to service and philanthropy. Dahlia Lithwick wrote a beautiful tribute to Newman in Slate, quoting him on his reasons for creating the Hole in the Wall Camps:
- "I wanted, I think, to acknowledge Luck: the chance of it, the benevolence of it in my life, and the brutality of it in the lives of others; made especially savage for children because they may not be allowed the good fortune of a lifetime to correct it."
At CGI, President Clinton recommended two favorite books: “Philanthrocapitalism: How the Rich Can Save the World,” by Matthew Bishop and Michael Green, and “Ending Slavery,” by Kevin Bales. Clinton particularly appreciated how Bales shows how present day slavery, victimizing 27 million people, is a problem we can actually solve, and Bales show us how.
Paul Newman, Bill Clinton, Bill Gates, along with millions of nonprofit staff members, volunteers and donors support vital causes in their own communities and throughout the world. We have a great deal to learn from them and how they live their lives.
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September 25, 2008
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September 25 – In a private interview with Maria Eitel, President of the Nike Foundation, and Peter Buffett, co-chair with his wife Jennifer of the NoVo Foundation, I learned how Maria and Peter first met, how they chose their cause – The Girl Effect, and how each of them was shaped in their early years.
To see this most extraordinary video (it's a quickie) on The Girl Effect, go to http://www.girleffect.org/#/splash/.
Maria referred to her “journey” in finding the right cause. That’s the perfect word for individuals and companies – a journey to find the social purpose that will have meaning to you personally, while aligning with the business and its mission. For Nike, Maria searched for a cause that served the underdog, shouted innovation, and would have the greatest impact. The answer was to invest in girls to fuel economic growth and the health and well-being of communities.
For skeptics who want to know if the CGI annual meetings actually produce results, here is something specific. Maria and Peter met serendipitously in the hallways of the CGI meeting two years ago. There, Maria’s ideas clicked with Peter and Jennifer Buffett who had also been moving towards women’s issues. Maria’s conviction that in order to help women, you have to take a step back to help them as girls, clicked with the Buffetts, and the rest is history. Together, Nike and NoVo have had a synergistic and exponential impact in helping girls to become educated, gain access to healthcare, and become catalysts for economic development.
What were the early signs of Maria’s and Peter’s activism? Maria was the middle child, sitting in between her siblings in the car, negotiating peace. That led her to decide that as a communications professional, she could bring peace to the world. In pursuing her first internship at PBS in Seattle, when her initial application was declined, she simply parked herself in the lobby until a staffer needed coffee, and suddenly, Maria became useful. Next, Maria was doing research and then stories. Her determination is evident in her shaping a leading edge approach to economic development and joining forces between two foundation powerhouses.
Peter vividly recalls his early childhood years at home in Omaha hearing about civil rights activists in Selma, his mother taking him to the Baptist church and Jewish synagogue for services, his family introducing the first African-Americans and Jews into the country club, and giving Christmas gifts to needy families. Turns out it really does matter what we teach and role model for our children.
Just like my readers and clients who serve on nonprofit boards, and President Clinton and Bill Gates who were sharing their joy on stage yesterday, both Maria and Peter were exuding their delight with their service and giving. This is something that all of you can do in your communities, and you can have fun too while you are doing your part towards a better world!
I can’t help taking this opportunity to remind my readers that my own "girl effect" passion is the board that I serve on - Row New York, a local organization that empowers girls through academic and athletic development and ultimately success in college.
There is a commitment that each of us can make.
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September 25, 2008
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September 25 – There is no denying the interest of sitting among the heads of global corporations, heads of state, and movie and television stars, and casually exchanging business cards and chatting with my seat companion who is the CEO of a company that has just committed $1.5 billion for innovations in energy & climate.
Just the afternoon before, I felt like a kid in a candy store moving from booth to booth in the Sheraton ballroom, meeting staff members and volunteers from NGOs (nongovernmental organizations) who were eagerly sharing their stories about their important work in education, energy and climate, global health, and poverty alleviation. A favorite was learning more about Ceres, whose work is more timely than ever.
When President Clinton interviewed Bill Gates yesterday in casual chairs on the stage, the two of them looked gleeful when they shared that they were having the most fun that they have ever had in their lives doing their philanthropic work. I know what they mean. I have had the greatest job in the world for over 15 years, helping very busy, business executives find the nonprofit boards that they will fall in love with. And then helping those boards and organizations move to higher levels of impact and performance.
That joy was shared via Blackberry with a board member I placed with Root Capital while CEO and Founder Willy F. Foote was being recognized on stage by President Clinton for his organization’s commitment to action in pioneering finance for rural communities to alleviate poverty in Africa, Asia, Latin America, and the Caribbean.
Today, EngenderHealth CEO Ana Langer, M.D. will be honored for its commitment, and its message will be spread on YouTube. Once again, I’ll be cheering on the CEO and her team and texting with a passionate and devoted new board member who will thrill at the opportunity for this important organization to gain new support.
While CGI provides a platform for people of great stature and wealth to convene and commit their names, time, expertise, and fortunes to important causes, there are thousands of business executives and professionals of all ages, from diverse backgrounds and perspectives, who engage productively, especially through their participation on nonprofit boards of directors. And there are organizations in every community that help build a better future. Only a few get the spotlight at CGI, but all the board members who are truly advancing good work get to experience that joy that President Clinton and Bill Gates exuded.
President Clinton’s message is that a fundamental definition of being a global citizen is to be a productive worker, a productive voter, and a productive giver. His ask is that everyone move from “I wish” to “I will.” President Clinton ended the program by asking everyone in the audience, “what will be your commitment.”
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September 21, 2008
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September 21 - Given the stresses and distractions of the job market, I thought that business people on nonprofit boards might lose interest in their board work. To the contrary, what I am hearing is that board members are valuing their experiences now more than ever. According to them, here’s what you get to do on boards:
- Channel creative energy in contributing productively in strengthening a nonprofit organization for a cause that is meaningful to you
- Gain expertise on complex issues that are integral to business and the economy – for example, community development, education, housing, healthcare, the environment
- Better understand board governance through personal experience
- Build valuable networks and relationships with fellow board members and an organization’s donors - by working together on issues you care about and the good reputation you earn
- Grow as a leader the only way you can – through experience
I’d love to hear your comments.
And stay tuned this week. I’ll be blogging from the Clinton Global Initiative, where the world’s leaders are coming together this week in NYC.
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September 16, 2008
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September 16 - At the Global Boards Forum, presented today in New York City by Directorship and Global Proxy Watch, 80 directors of public companies gathered to discuss board member responsibilities.
Particularly striking to me were the similarities between my experiences with nonprofit boards and the compelling statements made by stand-out speakers Rita Foley, Director, Dresser-Rand & PetSmart; Marilyn Carlson Nelson, Chairman & CEO, Carlson Companies, Director, Exxon Mobil; and William George, Professor, Management Practice, Harvard Business School, Former Chairman & CEO, Medtronic, Director Exxon Mobil, Goldman Sachs & Novartis.
Key themes regarding for-profit boards that particularly resonated, especially in light of this week’s business news:
- Leadership is key. Not only do corporations require outstanding CEOs but boards need to identify the board leader.
- Boards must step up and take responsibility. As stewards, boards are responsible for the preservation and growth of the enterprise. They determine the future, and they will be judged by the legacy they leave.
- Leadership succession planning is essential. It is incumbent on boards to ensure that leaders are being developed from within the company for the future.
- Boards should be comprised of directors with diverse perspectives and expertise in order to ensure rich discussions and the long-term view that is necessary for success.
- Boards need to take the time to learn and understand the business, visit and meet at global sites, get to know senior management, and engage in strategy discussions, while also understanding the line between governance and management, and discussing where that line is.
- Values and ethics matter. Credibility matters. As we know from reading headlines, when you lose the public trust, your organization is worthless.
While compliance with the Sarbanes Oxley Act of 2002 is unquestionably a must, I appreciated Bill George’s caution that you can comply with Sarbanes Oxley 100% and still go bankrupt tomorrow. In the nonprofit sector, there is often a fixation on checklists of board practices that do little or nothing to advance the organization; actually, cumbersome checklists can distract attention from productive strategic and revenue work.
Whether they are for-profits or nonprofits, the organizations that will thrive – especially in a tough economy - will be the ones that are governed by boards who
- understand markets…what’s compelling, innovative, and useful to customers, clients, and payors,
- imagine the greater potential,
- create the revenue models and streams that are necessary to accomplish success,
- build networks, relationships, and partnerships that are needed for success, and
- serve communities to achieve greater peace and prosperity for all people in the long-term. (yes, that includes education, jobs, healthcare, robust economies throughout the world, and a sustainable environment)
Boards have both a responsibility and an opportunity to create the future. As Marilyn Carlson Nelson said today, boards create the legacy we will leave to our children and grandchildren.
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September 13, 2008
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September 13 - Thank goodness, the news week is ending better than it started. The presidential campaigns have moved from squabbling about “lipstick on a pig” to the importance of service.
This weekend’s Financial Times features Poppy King, a young Australian entrepreneur who runs the Lipstick Queen brand, and recently authored "Lessons of a Lipstick Queen: Finding and Developing the Great Idea That Can Change Your Life" (Simon and Schuster). Since King believes in giving and service, a percentage of the proceeds of King’s book will be donated to K.I.D.S.: Kids in Distressed Situations, where King serves on the board of directors. It happens that K.I.D.S. is one of my all time favorite, high-impact nonprofits, led by CEO Janice Weinman.
King has great advice about investigating charities where you will contribute, helping a charity market itself in addition to providing funding support, and raising awareness for good causes. “Most important to me,” she says, “is the feeling that I’m helping, rather than being useless. I think most of us need to feel that.”
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September 12, 2008
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September 10 - Every nonprofit is bemoaning the new challenges to fundraising wrought by today’s economy. But just like in business, there is always money for the best solutions to the most significant problems.
It’s at times like these that nonprofit boards matter most. Although the basic responsibility of the board is legal and fiduciary oversight, that is merely the starting point. The organizations that will thrive in this economy are the ones with boards comprised of people from diverse backgrounds and perspectives who have the drive and passion to be bold and ambitious in
- imagining the organization’s greater potential…the vision for the next several years
- creating the revenue model to achieve success – leveraging the full spectrum of opportunities including philanthropy, fees, and government sources
- building a board of devoted advocates who will each participate actively in expanding networks of support, and building revenue streams, including giving and fundraising
- sharply focusing the board’s work and agenda in advancing the organization to achieve the vision
This is a time when leaders are tested in all arenas in the for-profit and nonprofit worlds. This is also a time of tremendous opportunity for people of talent and will to come together and build stronger communities for the prosperity and benefit of all.
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September 9, 2008
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September 8 - For a “Mad Men” (AMC TV) junkie who also happens to thrive on philanthropy and service, this week’s episode was a particular thrill! Ad man boss Bertram Cooper, played by Robert Morse, reports enthusiastically to Don Draper, played by Jon Hamm, that the client was so impressed by Draper that he was invited to join the board of the soon-to-be-formed Museum of Early American Folk Art. When Draper asks why that would be of interest, Cooper declares triumphantly, “Philanthropy is the gateway to power!”
This was back in the early 60’s. For the most prominent boards in Manhattan and other major cities, the importance of being invited to a “power board” hasn’t changed. CEOs of successful businesses want to sit together on these boards. Bless them. We all benefit from their largesse, because there is a high level of giving that is attached with each of these board seats!
One thing has changed, however. By the 1980’s, corporations shifted their giving and service programs to be more aligned with the corporate mission and more strategic in accomplishing measurable outcomes for the company and the community. Volunteerism also became more inclusive involving employees of all levels, fostering team-building and community spirit, as well as productive service.
More recently, companies are recognizing the importance of involving younger and more diverse executives and professionals on a wide range of regional, national, and global nonprofit boards as a means to develop their companies’ future leaders, while supporting meaningful, high-impact board service that will improve communities. Given that there are over a million nonprofits in the U.S. alone, there are plenty of boards to go around, and a great deal of important work to be done!
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September 8, 2008
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September 7 - This week, the ServiceNation Summit in New York City will focus national attention on citizen service. Business leaders will be among the featured speakers and sponsors.
For business leaders who seek to advance the economy, the environment, and world peace, the most powerful way you can contribute is to mobilize, encourage, and support the involvement of your professionals and executives to serve on nonprofit boards of directors. Board service also provides a unique opportunity for you to develop the next generation of leaders.
There are many skills that business professionals can bring to bear in strengthening nonprofit boards while also growing their own leadership abilities. In working with regional, national, and global organizations, I see the valuable roles that business people play in helping to imagine a nonprofit’s greater potential, create the strategy and revenue model for success, expand networks of support, and achieve new and ambitious results. People from their late 20’s and on help small, community organizations with budgets of only a million dollars that provide college access and job training. Others help global microlending organizations that invest hundreds of millions of dollars in promoting small businesses, fair trade pricing, and environmental sustainability.
By adding nonprofit board service to your corporate philanthropy and volunteerism programs, businesses can have an exponential impact in transforming the nonprofit sector. Imagine this: hundreds…thousands…millions of freshly engaged and skilled board members from diverse backgrounds and perspectives helping to take the nonprofit sector to new heights!
As you and your company think about how you will play a role in ensuring that people gain access to education, jobs, and healthcare, and that the world is safe and prosperous, consider the formidable talents that business people have to offer through service on nonprofit boards. It’s time to take corporate volunteerism and philanthropy programs to the next level!
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September 4, 2008
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On this third anniversary of Katrina, and in Gustav’s wake, we see the power of the media to engage us in bearing witness. Reporters bring the stories into our homes. Anderson Cooper stirred our minds and hearts with his candor and humanity in reporting on Katrina. As a result, people and companies came from far and wide to volunteer and contribute goods, services, and funds to help the victims.
Bear witness. Tell the story. Take action. Ann Curry took a stand in reporting about the genocide in Darfur. Not only has Curry brought this story into our consciousness, but she herself has taken action. In her interview with Omar al-Bashir, president of Sudan, she confronted him, in the face of his denials, with her first-hand evidence of the violence. In the NYT article, Curry explained that she has been inspired since childhood by stories of people who saved Jews during the Holocaust.
As we learn what is happening in our communities and our world, we will discover ways to take action and involve others. Businesses in particular can play a major role in encouraging and supporting larger-scale and high-impact service. In the case of Katrina, Wal-Mart drew headlines by bringing their unique business skills and valued resources to bear. “The Only Lifeline Was the Wal-Mart” Devin Leonard, Fortune, 10.3.05.
Experiencing the remarkable camaraderie of the Katrina experience with his employees, CEO Lee Scott “stepped back from that and asked one simple question: How can Wal-Mart be that company - the one we were during Katrina - all the time?" “The Green Machine,” by Marc Gunther, Fortune 7.21.06. The Katrina spirit was part of Scott’s decision to pursue a new environmental strategy for the company – a strategy that would engage his employees at all levels throughout the company, be good for business, and good for the world. Next, by establishing strategic relationships with nonprofits, Wal-Mart advanced pro-environment missions while gaining the expert counsel of Conservation International and the World Wildlife Fund.
It all began with employees serving the victims of Katrina. Now, the benefits of Wal-Mart’s social responsibility approach continue to have an exponential impact, and seem likely do so long into the future.
The first step is being aware!
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