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Community, Suppliers

Comment: Companies get tough

October 01 1997

by Mike Tuffrey
Over the summer, several multinationals had the confidence, to defend their shareholders' interests by engaging vigorously with the wider community. In the UK, the Hampel Committee missed the point.

On Hampel, let's say no more. Instead look at what global companies are really doing. Nike has been held to account by consumers in its most lucrative market - and decided it has to act. Drawing up codes of conduct and telling managers about them is no longer enough. Audit, enforce, empower workers, even those in remote contractors. Time to get tough with wayward suppliers.

 

 

BP has got tough too, but with a pressure group. However this is not gung-ho management, trying to roll back the frontiers of disputed territory. BP was able to defend its operational interests precisely because it has a good story to tell on corporate citizenship and is happy to be held to account. Getting that right gave it the confidence to act firmly when necessary. John Browne has been careful to open up a dialogue on sustainability and renewable energy, engaging in debate directly with Greenpeace.

 

 

Long a big corporate donor, BT is now going much further. Becoming more 'transparent', as it move forward toward some form of comprehensive social audit, it opens up the information NGOs could use to attack, but again its track record gives it the strength to engage with confidence.

 

 

Managers of large companies may not like it but most know that the community can place enormous constraints on what business can do there is more. there is more to running a successful company than keeping the shareholders happy.

Corporate Citizenship Briefing, issue no: 36 - October, 1997