"I believe that Silicon Valley is truly a place of excellence and the impact of this tiny community on the world is completely disproportionate to its size. We are the undisputed leaders of technological change. But with our abundance of talent and resources, we also have the opportunity to be the pioneers of social change and, ultimately, this may be our greatest contribution."
Jeff Skoll, businessman, founder, The Skoll Foundation
A few years ago, a pioneering company decided to start a capital fund that would help new companies, small firms and disadvantaged companies get into business and grow.
The thought was that these new companies eventually would become dedicated contractors and suppliers to the big company—a sure way to help them grow large enough to compete with others. It is a model that has worked well in several industries like auto dealerships and fast-food franchising.
Although this is not really philanthropy, more companies should consider using this approach as a way to make a meaningful contribution to society. A development fund can be established to support or advance any number of charitable and philanthropic endeavors, in addition to those with a commercial basis.
The societal impact of financing a business and subsequently providing a ready source of contract opportunities cannot be understated; it promotes economic development, growth and employment for new entrants and at the same time increases the tax revenue base of local cities and counties.
These are all good things.
(c) Adonis E. Hoffman, 2008.
Monday, February 18, 2008
Friday, February 15, 2008
Lead the Way in Philanthropy
"There is a natural law, a Divine law that obliges you and me to relieve the suffering, the distressed and the destitute. . . The practice of charity will bind us... will bind all men in one great brotherhood."
Conrad Hilton, founder, Hilton Hotels
Corporate philanthropy is a good thing and there can never be too much of a good thing. Today, we find a handful of companies at the top of the chart in corporate philanthropy, while many more companies barely register.
The wonderful thing about philanthropy is that it has a multiplier effect. When your company makes a contribution to a worthy organization, event or program, it strengthens the capacity of the recipient to deliver the benefits it promises.
But philanthropy is not without some controversy. There are some who believe that the role of business is to provide better goods and services at better prices so that consumers can have better lives. Philanthropy, they assert, is better left to foundations and individuals rather than to corporations.
I disagree. There are many ways to give to charity—money, in-kind donations, product giveaways, volunteerism, loaning executives and other opportunities to make a difference. As a business leader, you can develop a wide range of strategies that will position your company in the forefront of corporate philanthropy. Your reputation will be enhanced.
(c) Adonis E. Hoffman, 2008.
Conrad Hilton, founder, Hilton Hotels
Corporate philanthropy is a good thing and there can never be too much of a good thing. Today, we find a handful of companies at the top of the chart in corporate philanthropy, while many more companies barely register.
The wonderful thing about philanthropy is that it has a multiplier effect. When your company makes a contribution to a worthy organization, event or program, it strengthens the capacity of the recipient to deliver the benefits it promises.
But philanthropy is not without some controversy. There are some who believe that the role of business is to provide better goods and services at better prices so that consumers can have better lives. Philanthropy, they assert, is better left to foundations and individuals rather than to corporations.
I disagree. There are many ways to give to charity—money, in-kind donations, product giveaways, volunteerism, loaning executives and other opportunities to make a difference. As a business leader, you can develop a wide range of strategies that will position your company in the forefront of corporate philanthropy. Your reputation will be enhanced.
(c) Adonis E. Hoffman, 2008.
Thursday, February 14, 2008
Establish a Community Advisory Board
In every city, in every town, in every state, there are people who make things happen. As a business leader you should have a relationship with those people.
Churches, civic organizations, civil rights groups, parent councils, fraternities, professional organizations, small businesses, political groups and many others make up the civil society that keeps our system free and prosperous.
Leaders of these organizations and community groups can be immensely valuable to a business leader. They can provide you with more informed opinions and insights into your business than most well-orchestrated focus groups or research surveys. They can tell you how your company is perceived in the community. In short, they can provide the kind of rich feedback and information that a concerned business leader needs to receive on a regular basis
Seize the opportunity to tap into this resource by establishing a community advisory board. Find the leaders of the community and meet regularly to discuss matters of concern to them and to you. Don’t limit your discussions to company matters. There just might be something about your industry or region that you discover as a result of the interactions with the group.
(c) Adonis E. Hoffman, 2008.
Churches, civic organizations, civil rights groups, parent councils, fraternities, professional organizations, small businesses, political groups and many others make up the civil society that keeps our system free and prosperous.
Leaders of these organizations and community groups can be immensely valuable to a business leader. They can provide you with more informed opinions and insights into your business than most well-orchestrated focus groups or research surveys. They can tell you how your company is perceived in the community. In short, they can provide the kind of rich feedback and information that a concerned business leader needs to receive on a regular basis
Seize the opportunity to tap into this resource by establishing a community advisory board. Find the leaders of the community and meet regularly to discuss matters of concern to them and to you. Don’t limit your discussions to company matters. There just might be something about your industry or region that you discover as a result of the interactions with the group.
(c) Adonis E. Hoffman, 2008.
Wednesday, February 13, 2008
Engage Critics
"Statistics suggest that when customers complain, business owners and managers ought to get excited about it. The complaining customer represents a huge opportunity for more business."
Zig Ziglar, Business and Motivational Speaker
If you don’t talk to your enemies; you’ll never reach a compromise. With all of the scrutiny on the actions of corporations and their leadership today, you are bound to have conflicts and critics. It is inevitable but not insurmountable.
A new approach has developed over the last few years wherein corporations are actively engaging their critics. Environmental activists, consumer advocates, and human rights groups, among others are finding corporations much more willing and available to meet and openly discuss their gripes. In the process, both the business and activist leaders are discovering they may have more in common than in conflict.
There is no right or wrong way to go about establishing dialogue. In today’s world, industry knows where the criticism is coming from and who the loudest voices are. A company can set up an informal process or it can formalize the dialogue by establishing a committee or council or group of some kind.
Whatever approach you take, it is important to have an ongoing mechanism for engaging dissident voices from outside. Many a corporate leader has been undone by refusing to “give in” to those on the outside throwing rocks. Talking is a sign of strength, not weakness.
(c) Adonis E. Hoffman, 2008
Zig Ziglar, Business and Motivational Speaker
If you don’t talk to your enemies; you’ll never reach a compromise. With all of the scrutiny on the actions of corporations and their leadership today, you are bound to have conflicts and critics. It is inevitable but not insurmountable.
A new approach has developed over the last few years wherein corporations are actively engaging their critics. Environmental activists, consumer advocates, and human rights groups, among others are finding corporations much more willing and available to meet and openly discuss their gripes. In the process, both the business and activist leaders are discovering they may have more in common than in conflict.
There is no right or wrong way to go about establishing dialogue. In today’s world, industry knows where the criticism is coming from and who the loudest voices are. A company can set up an informal process or it can formalize the dialogue by establishing a committee or council or group of some kind.
Whatever approach you take, it is important to have an ongoing mechanism for engaging dissident voices from outside. Many a corporate leader has been undone by refusing to “give in” to those on the outside throwing rocks. Talking is a sign of strength, not weakness.
(c) Adonis E. Hoffman, 2008
Tuesday, February 12, 2008
Market Responsibly
"Ethics or simple honesty is the building blocks upon which our whole society is based, and business is a part of our society, and it's integral to the practice of being able to conduct business, that you have a set of honest standards. And it's much easier to do business with someone when you look them in the eye and say, 'This is what we're going to do,' and you understand what you each mean, and you can go away and get it done."
Kerry Stokes, Chairman, Seven Networks, Australia
There is more focus today on the public behavior of companies than ever before. Consumers, public interest groups, shareholders, policymakers and the media all pay close attention to what companies do and don’t do.
In this new environment, there are high expectations for the way companies market and advertise their goods and services. If your marketing message is inappropriate for, or offensive to, children, people of color, gays, the aged, the environment, the physically handicapped or other classes of persons, you risk a sharp response from the media and the marketplace. A number of companies have found out the latent power of a constituency that was offended by images or content contained in their marketing or advertising.
Beyond these concerns, you also should be aware that the very practice of marketing itself, has come under scrutiny in industries such as snack foods, beer, alcoholic beverages, video games and other products.
You don’t have to stop marketing and advertising but you should know there are forces out there that exist for no other reason but to challenge what you do and how you communicate your business in the marketplace. Beware of marketing that is too edgy or too cute—it could be your undoing.
(c) Adonis E. Hoffman, 2008.
Kerry Stokes, Chairman, Seven Networks, Australia
There is more focus today on the public behavior of companies than ever before. Consumers, public interest groups, shareholders, policymakers and the media all pay close attention to what companies do and don’t do.
In this new environment, there are high expectations for the way companies market and advertise their goods and services. If your marketing message is inappropriate for, or offensive to, children, people of color, gays, the aged, the environment, the physically handicapped or other classes of persons, you risk a sharp response from the media and the marketplace. A number of companies have found out the latent power of a constituency that was offended by images or content contained in their marketing or advertising.
Beyond these concerns, you also should be aware that the very practice of marketing itself, has come under scrutiny in industries such as snack foods, beer, alcoholic beverages, video games and other products.
You don’t have to stop marketing and advertising but you should know there are forces out there that exist for no other reason but to challenge what you do and how you communicate your business in the marketplace. Beware of marketing that is too edgy or too cute—it could be your undoing.
(c) Adonis E. Hoffman, 2008.
Monday, February 11, 2008
Become the Champion
"We don't think of ourselves as do-gooders or altruists. It's just that somehow we're trying our best to be run with some sense of moral compass even in a business environment that is growing."
Craig Newmark, founder, Craig’s List
Do you remember the true-life story of a major American shoe manufacturer in the northeast who refused to shut down his plant even as the shoe making business was migrating offshore?
That CEO said he could not in good conscience close his factory and devastate the small New England community in which he had been operating for decades.
Needless to say he became a beloved figure in that community and his reputation for embodying corporate responsibility became a national story. His retort was simply: “I care about the community in which our company lives.”
I’m not sure how many other CEOs would have chosen to make the same decision, after all there were big dollars at stake. I suppose the point of all this is to reinforce the notion that companies are responsible to more than shareholders in today’s market.
Putting the needs and interests of communities in which you operate may not be at the top of the corporate agenda—but it should never be left off the agenda altogether. Championing the community is good.
(c) Adonis E. Hoffman, 2008
Craig Newmark, founder, Craig’s List
Do you remember the true-life story of a major American shoe manufacturer in the northeast who refused to shut down his plant even as the shoe making business was migrating offshore?
That CEO said he could not in good conscience close his factory and devastate the small New England community in which he had been operating for decades.
Needless to say he became a beloved figure in that community and his reputation for embodying corporate responsibility became a national story. His retort was simply: “I care about the community in which our company lives.”
I’m not sure how many other CEOs would have chosen to make the same decision, after all there were big dollars at stake. I suppose the point of all this is to reinforce the notion that companies are responsible to more than shareholders in today’s market.
Putting the needs and interests of communities in which you operate may not be at the top of the corporate agenda—but it should never be left off the agenda altogether. Championing the community is good.
(c) Adonis E. Hoffman, 2008
Friday, February 08, 2008
Support Local Communities
"Many business leaders are asking fundamental questions about what business they’re in, why they are doing it and how it can be used as a means of healing human and natural communities."
Amory Lovins, Chairman, Rocky Mountain Institute
In many communities throughout the United States, and indeed throughout the world, corporations have the largest single footprint and impact. Aside from providing jobs for the citizens and tax revenue for the city and state, corporations also help local communities to develop and shape their identities.
With that in mind, it is a good thing for your company to actively support the local communities in which it operates. Support in this regard means that you give of your money, your people and your time. So many companies believe their commitment stops at the first level—giving money. But your good citizenship depends on how engaged your company is in local affairs.
Do you support the local soccer team(s)? Are your employees volunteering at the local schools, community centers and civic groups? Have you taken the time to get to know the local leaders, movers and shakers in the community?
Keep in mind you are much more than a source of jobs—you are an institutional part of the communities in which you operate, and the people of those communities will look to you for more than money.
(c) Adonis E. Hoffman, 2008.
Amory Lovins, Chairman, Rocky Mountain Institute
In many communities throughout the United States, and indeed throughout the world, corporations have the largest single footprint and impact. Aside from providing jobs for the citizens and tax revenue for the city and state, corporations also help local communities to develop and shape their identities.
With that in mind, it is a good thing for your company to actively support the local communities in which it operates. Support in this regard means that you give of your money, your people and your time. So many companies believe their commitment stops at the first level—giving money. But your good citizenship depends on how engaged your company is in local affairs.
Do you support the local soccer team(s)? Are your employees volunteering at the local schools, community centers and civic groups? Have you taken the time to get to know the local leaders, movers and shakers in the community?
Keep in mind you are much more than a source of jobs—you are an institutional part of the communities in which you operate, and the people of those communities will look to you for more than money.
(c) Adonis E. Hoffman, 2008.
Thursday, February 07, 2008
Go Green
"Business is recognizing the role it can play in combating climate change. Thank God, is all I can say, for there is a desperately urgent need for business to play that role. Your lobbying influence can be substantial, but together, united and in large enough numbers it could prove decisive in turning the tide."
Prince Charles
If you have not yet realized the impact of the green revolution on business, you should accelerate your learning curve. Eco-friendly environmentally-conscious policies and practices are the order of the day for corporations, and consumers, policymakers and the media all expect companies to play by the new rules.
After decades of carping from the outside, environmental activists have succeeding in placing the environment on the corporate agenda. Today, environmentally conscious policies are a major part of the sustainability standards that all companies are expected to adopt if they are going to be considered responsible citizens. In addition to lowering carbon emissions and greenhouse gases, green policies and practices are proving to impact the bottom line quite favorably through reduced costs and increased energy savings.
Of course your commitment to going green will require your organization to make both short-term and long-term commitments and to open itself to even more scrutiny. But consider the impact made when private equity financiers made an environmental group a key part of the deal for a natural gas plant. In the end, leadership in this area will pay great dividends in corporate reputation, good will and consumer satisfaction.
(c) Adonis E. Hoffman, 2008
Prince Charles
If you have not yet realized the impact of the green revolution on business, you should accelerate your learning curve. Eco-friendly environmentally-conscious policies and practices are the order of the day for corporations, and consumers, policymakers and the media all expect companies to play by the new rules.
After decades of carping from the outside, environmental activists have succeeding in placing the environment on the corporate agenda. Today, environmentally conscious policies are a major part of the sustainability standards that all companies are expected to adopt if they are going to be considered responsible citizens. In addition to lowering carbon emissions and greenhouse gases, green policies and practices are proving to impact the bottom line quite favorably through reduced costs and increased energy savings.
Of course your commitment to going green will require your organization to make both short-term and long-term commitments and to open itself to even more scrutiny. But consider the impact made when private equity financiers made an environmental group a key part of the deal for a natural gas plant. In the end, leadership in this area will pay great dividends in corporate reputation, good will and consumer satisfaction.
(c) Adonis E. Hoffman, 2008
Wednesday, February 06, 2008
Avoid Corruption
Corporate crime was the biggest story of the 1990s not because it was new, but because it had grown to such huge dimensions. The lives of hundreds of thousands of hard-working people got destroyed by the ethical lapse and corruption of a relative few at the top.
Don’t let it happen to you.
While there are scores of regulatory and statutory safeguards that have been put into place, the onus is on you to avoid corruption. From small scale matters to backdating options, the temptations are great all throughout the supply chain.
Put the necessary systems in place that will help everyone in your organization to understand the spirit and the law of corruption. Install a chief compliance officer with broad authority.
Think of your corporate leadership role as a public trust—even if you’re in a smaller organization or private company.
Go the extra mile in compliance and due diligence analysis such that at the end of your tenure, there will be no doubt about your ethical, moral or legal character.
(c) Adonis E. Hoffman, 2008
Don’t let it happen to you.
While there are scores of regulatory and statutory safeguards that have been put into place, the onus is on you to avoid corruption. From small scale matters to backdating options, the temptations are great all throughout the supply chain.
Put the necessary systems in place that will help everyone in your organization to understand the spirit and the law of corruption. Install a chief compliance officer with broad authority.
Think of your corporate leadership role as a public trust—even if you’re in a smaller organization or private company.
Go the extra mile in compliance and due diligence analysis such that at the end of your tenure, there will be no doubt about your ethical, moral or legal character.
(c) Adonis E. Hoffman, 2008
Tuesday, February 05, 2008
Uphold Human Rights
span style="font-weight:bold;">"We can ignore human rights violations in other countries, or we can take these things on as true leaders ought to and accept the inspiring challenge of America for the future. I am not here as a public official, but as a citizen of a troubled world who finds hope in a growing consensus that the generally accepted goals of society are peace, freedom, human rights, environmental quality, the alleviation of suffering, and the rule of law."
Jimmy Carter, 39th President of the United States
What CEO or company in its right mind could be against human rights, one might ask? Respecting fundamental rights of people throughout the world seems to be a no-brainer. And yet, transnational corporations today are under major scrutiny from corporate watchdogs for violations of human rights.
Activists have sought to bring legal action under the Alien Tort Claims Act, a law that allows citizens of any nationality to sue in US federal courts for violations of international rights or treaties against leading companies for environmental destruction, health violations, water privatization, union busting, aggressively marketing lethal products, and an expanded range of so-called economic and social rights.
In the global economy, companies face far greater challenges in being seen as good corporate citizens. By virtue of their size and dominant presence in many developing countries, a large corporation can be associated with just about any problem that exists in the society. A major oil company has recently come under attack for its investments in Myanmar, a notorious violator of human rights.
As your company develops and maintains its operations internationally, you will want to devote a special degree of care to how you engage these evolving definitions of human rights. The important point is to be aware and proactive.
(c) Adonis E. Hoffman, 2008
Jimmy Carter, 39th President of the United States
What CEO or company in its right mind could be against human rights, one might ask? Respecting fundamental rights of people throughout the world seems to be a no-brainer. And yet, transnational corporations today are under major scrutiny from corporate watchdogs for violations of human rights.
Activists have sought to bring legal action under the Alien Tort Claims Act, a law that allows citizens of any nationality to sue in US federal courts for violations of international rights or treaties against leading companies for environmental destruction, health violations, water privatization, union busting, aggressively marketing lethal products, and an expanded range of so-called economic and social rights.
In the global economy, companies face far greater challenges in being seen as good corporate citizens. By virtue of their size and dominant presence in many developing countries, a large corporation can be associated with just about any problem that exists in the society. A major oil company has recently come under attack for its investments in Myanmar, a notorious violator of human rights.
As your company develops and maintains its operations internationally, you will want to devote a special degree of care to how you engage these evolving definitions of human rights. The important point is to be aware and proactive.
(c) Adonis E. Hoffman, 2008
Monday, February 04, 2008
Respect Workers' Rights
"The only society that works today is also one founded on mutual respect, on a recognition that we have a responsibility collectively and individually, to help each other on the basis of each other's equal worth. A selfish society is a contradiction in terms."
Tony Blair, former British Prime Minister
We often read of violent clashes, large-scale demonstrations and lawsuits arising in foreign countries as a result of irresponsible business practices. In many cases, there is a fragile relationship between the company and its workers abroad. Sometimes its politics; other times it is the economy.
The matter of workers rights presents thorny issues and challenges for trans-national corporations. There are countless international treaties, conventions and protocols covering the treatment of indigenous workers.
Together these constitute a set of “internationally recognized” workers rights, including: the right of association; the right to organize and bargain collectively; prohibition of forced or compulsory labor; minimum age for employment; and acceptable conditions of work with respect to minimum wages, hours of work, and occupational health and safety.
As a corporate leader, you should be guided by these international standards and take the lead in establishing your company as a global respecter and defender of workers rights. Your reputation as a good corporate citizen will soar and the number of awards you will be given by international advocacy groups will multiply.
(c) Adonis E. Hoffman, 2008
Tony Blair, former British Prime Minister
We often read of violent clashes, large-scale demonstrations and lawsuits arising in foreign countries as a result of irresponsible business practices. In many cases, there is a fragile relationship between the company and its workers abroad. Sometimes its politics; other times it is the economy.
The matter of workers rights presents thorny issues and challenges for trans-national corporations. There are countless international treaties, conventions and protocols covering the treatment of indigenous workers.
Together these constitute a set of “internationally recognized” workers rights, including: the right of association; the right to organize and bargain collectively; prohibition of forced or compulsory labor; minimum age for employment; and acceptable conditions of work with respect to minimum wages, hours of work, and occupational health and safety.
As a corporate leader, you should be guided by these international standards and take the lead in establishing your company as a global respecter and defender of workers rights. Your reputation as a good corporate citizen will soar and the number of awards you will be given by international advocacy groups will multiply.
(c) Adonis E. Hoffman, 2008
Friday, February 01, 2008
Embrace Globalism
"We all have to expand our capabilities to encompass the changing world, its growing diversity and,indeed, its complexity."
Lachlan Murdoch, Businessman
Corporations today are citizens of the world. Companies draw on employees, suppliers, manufacturers, raw materials, and capital from around the globe to sell products and services to consumers and customers virtually anywhere on earth. In today’s global marketplace, what happens in Indonesia can have a direct effect on a company’s home base in Indiana.
Embracing globalism is a necessity in today’s business environment. Business leadership requires you to view things through a much wider prism than “working at headquarters” or “staffing the Tulsa field office”. It requires a company-wide appreciation of the global dimensions of business.
Today’s business leader must seize every opportunity to communicate the global realities and a global vision with employees and managers—in written communications, in speeches, in policies and practices, and in the intangible ways that CEOs provide leadership.
Globalism also requires that you become intimately involved in the communities where you are located. Sponsoring local soccer teams, dance troupes, and art galleries easily qualifies, but more importantly, companies must seek deep roots in these communities. As the slogan goes: “think globally—act locally.”
(c) Adonis E. Hoffman, 2008
Lachlan Murdoch, Businessman
Corporations today are citizens of the world. Companies draw on employees, suppliers, manufacturers, raw materials, and capital from around the globe to sell products and services to consumers and customers virtually anywhere on earth. In today’s global marketplace, what happens in Indonesia can have a direct effect on a company’s home base in Indiana.
Embracing globalism is a necessity in today’s business environment. Business leadership requires you to view things through a much wider prism than “working at headquarters” or “staffing the Tulsa field office”. It requires a company-wide appreciation of the global dimensions of business.
Today’s business leader must seize every opportunity to communicate the global realities and a global vision with employees and managers—in written communications, in speeches, in policies and practices, and in the intangible ways that CEOs provide leadership.
Globalism also requires that you become intimately involved in the communities where you are located. Sponsoring local soccer teams, dance troupes, and art galleries easily qualifies, but more importantly, companies must seek deep roots in these communities. As the slogan goes: “think globally—act locally.”
(c) Adonis E. Hoffman, 2008
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