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In This Issue
Editor's Note
Transparency in China: The Nonprofit Sector
Earlier this year, we examined the proliferation of CSR reports in China, part of a larger trend of transparency that is affecting all sectors in the country. In the second of our two-part series on transparency in China, we look at the NGO sector.
As BSR’s CiYuan Manager Brooke Avory reports, transparency is entering the Chinese nonprofit arena in two ways: NGOs are using public information about companies’ social and environmental infractions to push for change, and they are increasing their own levels of disclosure to build the trust of the public and the private sector. Here, Avory discusses how the increase in information about nonprofits can help companies identify the best partners to work with on sustainability goals.
This week, we also offer our perspective on a U.S. Supreme Court hearing that has implications for corporate liability on human rights issues, and we highlight a new paper on how business can accelerate the transition to sustainable capitalism.
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In Depth
Transparency in China: Rebuilding Trust in the Nonprofit Sector
By Brooke Avory, Manager, Partnership Development, BSR
Calls for transparency are sweeping across China. This article—the second in our series that also looked at transparency in the private sector—examines how a more open flow of information about nonprofits’ activities and impacts can help companies identify good partners for addressing sustainability challenges.
Read more →
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Spotlight
U.S. Supreme Court Weighs Corporate Liability and Human Rights
By Peter Nestor, Manager, Advisory Services, BSR
The U.S. Supreme Court last week heard oral arguments in _Kiobel v. Royal Dutch Shell_, a case involving the question of corporate liability for human rights abuses. Justices focused on whether international law requires global companies to be held liable in U.S. courts. A decision is expected in June. Still, the long-term solution to accountability likely does not lie in providing legal remedies. Instead, according to Christine Bader, BSR’s human rights advisor, companies must adopt proactive human rights policies and systems that prevent abuses from occurring in the first place. Several companies already have committed to respecting human rights in this fashion; many of them now are working to implement solutions in operating environments globally. These solutions are difficult and complex, but this is precisely where long-term change will occur. Long after the Supreme Court weighs in, companies with robust human rights approaches will continue to have a positive impact in the communities where they operate.
Toolbox
Advocating a Shift to Sustainable Capitalism
In the face of climate change, water scarcity, poverty, and other challenges, it’s time for a shift to sustainable capitalism, according to a white paper published last month by Generation Investment Management, a firm cofounded by former U.S. Vice President Al Gore. The authors of the paper suggest that the new paradigm maximize long-term value creation by reforming markets to address real needs and consider all costs. They recommend five key actions for businesses to spur adoption and accelerate this framework: * Identify and incorporate risks from stranded assets. * Mandate integrated reporting. * Move away from issuing quarterly earnings guidance. * Align compensation with long-term sustainability performance. * Encourage long-term investing with loyalty-driven securities. The paper also identified additional areas that merit ongoing attention, including reinforcing sustainability as a fiduciary issue, creating advisory services for sustainable asset management, and integrating sustainability into business education at all levels.
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