Corporate Sustainability : Concepts & Principles

Dr. Kazi F. Jalal

Faculty, Harvard Extension School

Corporate Sustainability

• “Corporate sustainability is a business approach that creates long-term shareholder value by embracing opportunities and managing risks deriving from economic ,environmental and social developments” (-Wikipedia)

The Terminology Swamp*

• Corporate sustainability (CS)

• Corporate social responsibility (CSR)

• Corporate responsibility (CR)

• Corporate citizenship

• Triple bottom line (TBL)

• Three Ps (profit, planet, people)

• Sustainable development (SD)

________________________________*17/15; 10/106

CSR-The commitment of business to contribute to sustainable economic development- working with employees, their families, the local community and

society at large to improve their quality of life-WBCSD

Corporate social responsibility (CSR, also called corporate responsibility, corporate citizenship, responsible business and corporate social opportunity) is

a concept whereby organizations consider the interests of society by taking responsibility for the impact of their activities on customers, suppliers,

employees, shareholders, communities and other stakeholders, as well as the environment.

In this respect, CSR includes both social and environmental responsibility

Typical Business Priorities of Corporations• Revenue increase/expense reduction/profit making• Share price increase/ company growth• Leadership quality/vision/mission• Governance/efficiency/accountability/transparency• Teamwork/learning/innovation/talent hunting • Productivity/absenteeism/health/safety• Risk management/emerging market forces• Security of supply/ raw materials, energy & water• Beating competitors to market• Attracting and retaining good customers• Quality of products and services• Regulatory compliance• 17/23

CS program for industries**Constructed from: The Natural Step for Business (1999),p-16

Time horizon Corporate response Industry goals

< 1970 Era of no action No goal

1970-80 Reactive/compliance Follow regulatory stds.

1980-90 Anticipatory Cost avoidance/

Impact reduction.

1990-2000 Proactive, social response added

Profit maximization

Eco-efficiency

Social benefits

2000-2010 Integrated Peo/planet/profit

Corporate Sustainability : Five stages

• Stage 1: Pre-Compliance

• Stage 2 : Compliance

• Stage 3 : Beyond Compliance

• Stage 4 : Integrated Strategy

• Stage 5 : Purpose and Passion

Corporate Sustainability: it’s about attitude

Ten steps to achieve CS *1.Make sustainability as a company vision2.Formulate a sustainability strategy3.Embed sustainability in every part of business4.Walk the Talk (action speak over words)5.Set-up a powerful body6.Establish a code of conduct7.Join sustainability network8.Bring stakeholders on board9.Think beyond reporting10. Use people’s power______________________________________________* “Corporate Sustainability- Its About Attitude”(2008) www.enn.com/business/article/31186

Guidelines and Indices

• Caux principles (1994)• Global Corporate Responsibility Benchmarks (1999)• Social Accountability 8000 (1998)• Green Business Certification• United Nations Global Compact (1999)• Business Longevity Indicator (BLI)• The Dow Jones Sustainability Index (DJSI)• OECD Guidelines for Multilateral Enterprises• European Corporate Sustainability Framework• Corporate Sustainability Management Framework• Corporate Sustainability Commitment Index (CSCI)• Ratings & Rankings based on customers’ perception

Ceres principles/ Valdez principles** CERES : is a non-profit organization consisting of over 80 investors from North America forming a network of

investors, environmental organizations and other public interest groups working together to help corporations – large, medium and small, to address their sustainability challenges. Ceres also launched a CS reporting system called Global Reporting Initiative (GRI). The GRI is used by over 1200 global corporations in reporting on their environmental, social and economic fronts. Following the 1989 Exxon Valdez oil spill in Alaska, Ceres adopted 10 principles of CS which are:

1. Protection of the Biosphere • We will reduce and make continual progress toward eliminating the release of any

substance that may cause environmental damage to the air, water, or the earth or its inhabitants. We will safeguard all habitats affected by our operations and will protect open spaces and wilderness, while preserving biodiversity.

2. Sustainable Use of Natural Resources• We will make sustainable use of renewable natural resources, such as water, soils

and forests. We will conserve non-renewable natural resources through efficient use and careful planning.

3.Reduction and Disposal of Wastes• We will reduce and where possible eliminate waste through source reduction and

recycling. All waste will be handled and disposed of through safe and responsible methods.

4. Energy Conservation• We will conserve energy and improve the energy efficiency of our internal operations

and of the goods and services we sell. We will make every effort to use environmentally safe and sustainable energy sources.

5. Risk Reduction• We will strive to minimize the environmental, health and safety risks to our employees

and the communities in which we operate through safe technologies, facilities and operating procedures, and by being prepared for emergencies.

6.Safe Products and Services We will reduce and where possible eliminate the use, manufacture or sale of products and services that cause environmental damage or health or safety hazards. We will inform our customers of the environmental impacts of our products or services and try to correct unsafe use. 7. Environmental Restoration We will promptly and responsibly correct conditions we have caused that endanger health, safety or the environment. To the extent feasible, we will redress injuries we have caused to persons or damage we have caused to the environment and will restore the environment. 8. Informing the Public We will inform in a timely manner everyone who may be affected by conditions caused by our company that might endanger health, safety or the environment. We will regularly seek advice and counsel through dialogue with persons in communities near our facilities. We will not take any action against employees for reporting dangerous incidents or conditions to management or to appropriate authorities. 9. Management Commitment We will implement these Principles and sustain a process that ensures that the Board of Directors and Chief Executive Officer are fully informed about pertinent environmental issues and are fully responsible for environmental policy. In selecting our Board of Directors, we will consider demonstrated environmental commitment as a factor. 10.Audits and ReportsWe will conduct an annual self-evaluation of our progress in implementing these Principles. We will support the timely creation of generally accepted environmental audit procedures. We will annually complete the Ceres Report, which will be made available to the public.

In this lecture we try to review the various instruments and guidelines to measure the relative strength of Corporate Sustainability of various corporations. These are developed by various sponsors with different objective and approach – even though they are for the same goal of measuring corporate sustainability.

The Caux principles for business: In 1994, a group of business executives from multinational corporations located in Europe, Japan and North America established a set of principles to set “a world standard against which business behavior can be measured.” The Group was founded in 1986, although the principles were not formulated until 1994. Although these principles were more aspirational (than operational) they have credibility since these were formulated by top business executives from four important, industrialized countries. The principles are rooted in two basic ideals: (i) kyosei and (ii) human dignity. Kyosei, a Japanese concept means living and working together for the common good.

The Caux principle consists of seven “General Principles” and six stakeholders principles as follows:

A. General Principles 1. The Responsibilities of Business : Beyond Shareholders to Stakeholders Corporations have a role to play in improving the lives of all their stakeholders: customers, employees, suppliers, investors, communities around business establishments and competitors. 2. The Economic & Social Impact of Business Business should contribute to economic and social development of not only those countries where they operate but also in the global community at large through effective and prudent use of natural resources, free and fair competition, emphasis on innovation in technology, production methods, marketing and communications.

3. Business Behavior: Beyond Trade Secret toward a spirit of Trust While accepting the legitimacy of trade secrets, business should recognize that sincerity, truthfulness, keeping of promises and transparency contribute not only to their own credibility, but also to the efficacy of business transaction particularly at the international level. 4. Respect for Free Trade To avoid trade frictions and to promote free trade and healthy competition, businesses should respect international and domestic rules

5. Support for Multilateral Trade (GATT/WTO) Businesses should support the multilateral trade system of WTO/GATT and similar international agreements. They should support trade liberalization and oppose protectionism 6. Respect for Environment A business should protect and where possible enhance the environment, promote sustainable development and prevent wasteful use of natural resources 7. Avoidance of Illicit Operations Businesses should not support or promote bribery, money laundering or other corrupt practic

B. Stakeholders’ Principles 8. Customers Treat customers with dignity, irrespective of whether they purchase products and services directly or indirectly from the market. Business establishments should, therefore, have responsibility to: - provide customers with highest quality of products and services - treat customers fairly in all respects of business transactions - make every effort to ensure the health and safety of customers - assure respect for human dignity and integrity of culture of customers 9. Employees Businesses should have responsibility to: - provide jobs and compensation that improve living conditions of workers - provide working conditions that respect health and dignity of employees - engage in open communication with employees in sharing information within the limits of legal constraints

- listen to and where possible, act on employees suggestion, ideas, requests and complaints - engage in good faith negotiations when conflict arises - avoid discriminatory practices in such areas as gender, age, race and religion - promote employment of disabled people where they can be genuinely useful - protect employees from avoidable injury and illness in workplaces - encourage and assist employees in developing relevant skills and knowledge

10. Owners/ Investors Businesses have a responsibility to: - secure a fair and competitive return on our owner’s investments - disclose relevant information to owners/investors subject to legal constraints - conserve, protect, and increase assets - respect owners’/ investors’ requests, suggestions and complaints 11.Suppliers Relationship with suppliers and sub-contractors must be based on mutual respect. Businesses have a responsibility to: - seek fairness and truthfulness in all activities including pricing, licensing and rights to sell - foster long-term stability in the relationship - share information with suppliers and integrate them in the business planning process - pay suppliers on time and in accordance with agreed terms of trade; and - seek, encourage and prefer suppliers and sub-contractors whose employment practices respect human dignity.

10. Investors 11. Suppliers 12. Competitors 13. Communities

Social Accountability 8000• SA8000 is a global social accountability standard for decent working conditions developed and overseen by

Social Accountability International (SAI). It offers Social Accountability Accreditation Services (SAAS) to companies which seek their services for a license for a fee. Such fees can range up to 10-12 thousand US dollars for a large company. SA8000 is based on UN Universal Declaration of Human Rights and various ILO conventions pertaining to the workers. SA8000 covers the following areas of accountability:

• Child labor: No workers under the age of 15; minimum lowered to 14 for countries operating under the ILO Convention 138 developing-country exception; remediation of any child found to be working

• Forced labor: No forced labor, including prison or debt bondage labor; no lodging of deposits or identity papers by employers or outside recruiters

• Workplace safety and health: Provide a safe and healthy work environment; take steps to prevent injuries; regular health and safety worker training; system to detect threats to health and safety; access to bathrooms and potable water

• Freedom of Association and Right to Collective Bargaining: Respect the right to form and join trade unions and bargain collectively

• Discrimination: No discrimination based on race, caste, origin, religion, disability, gender, sexual orientation, union or political affiliation, or age; no sexual harassment

• Discipline: No corporal punishment, mental or physical coercion or verbal abuse • Working hours: Comply with the applicable law but, in any event, no more than 48

hours per week with at least one day off for every seven day period; voluntary overtime paid at a premium rate and not to exceed 12 hours per week on a regular basis; overtime may be mandatory if part of a collective bargaining agreement

• Remuneration: Wages paid for a standard work week must meet the legal and industry standards and be sufficient to meet the basic need of workers and their families; no disciplinary deductions

• Management system for Human Resources: Facilities seeking to gain and maintain certification must go beyond simple compliance to integrate the standard into their management systems and practices.

Additional Notes on SA 8000

• SA8000 certified companies as of June,2008) include roughly 1700 facilities in 64 countries and 61 industrial sectors employing roughly 900,000 people. Countries with most SA8000 certified companies include Brazil, India, China & Italy.

• The requirements of SA8000 are mainly based on 13 ILO conventions pertaining to social protection (www.ellipson.com/)

• SA8000 can be ordered through Council of Economic Priority Accreditation Agency (CEPAA) using CEPAA website (www.cepaa.org)

• Do a case study on one of the SA8000 certified company; demonstrate the impact of certification and benefits of the program (Beauty Essential Co. Ltd. of Thailand; Gucci, Italy; Gap or any others)

The Houston Principles (HP1)HP1 represents one of the landmarks of corporate sustainability. The HP bring to the forefront a new set of principles that calls for corporate accountability to employees, the environment and the livelihood of the communities where the

business is done. On May 19, 1999 environment and labor leaders confronted Mr. Charles Hurwitz, the CEO of Maxxam Corporation (which owned Kaiser Aluminum and Pacific Lumber Company) demanding that the corporation be held accountable for impact of its operation on the employees, communities and the environment. At that time, by clear- cutting ancient redwoods in Northern California and by locking out striking workers in five cities, the Maxxam

Corporation became an icon of Corporate unsustainability.

Whereas- The spectacular accumulation of wealth by corporations and America’s most affluent during the past two decades has come with a huge

price tag- Corporations have become more powerful than the government entities designed to regulate them- The goal of a giant, global corporation is to maximize wealth and to wield political power on its own behalf- Too often, corporate leaders regard working people, communities, and the natural world as resources to be used and thrown away- Recognizing the tremendous stakes, labor unions and environmental advocates are beginning to recognize our common ground- We may not agree on everything, we are determined to accelerate our efforts to make alliances as often as possible

We believe that- A healthy future for the economy and the environment requires a dynamic alliance between labor, management and environmental

advocates- The same forces that threaten economic and biological sustainability undermine the democratic process- The drive for short-term profits without regard for long-term sustainability hurts working people, communities and the earth- Labor, environmental and community groups need to take action to organize as a counter-balance to abusive corporate powerThe environmental and labor advocates who have signed these principles resolve to work together to :- Remind the public that the original purpose behind the creation of corporations was to serve the public interest – namely working people,

communities and earth- Seek stricter enforcement of labor laws and advocates of new laws to gurantee working people their right to bargain collectively- Make workplaces, communities and the planet a safer by reducing waste and greenhouse gas emissions- Demand that global trade agreements include enforceable labor and environmental standards- Promote forward-thinking business models that allow for sustainability over the long-term while protecting working people, communities

and the environment- This ground-breaking alliance of labor and environmentalists invites all people to join with us in a spirit of creative cooperation; Together

we can forge a partnership that protects people and the planet

OECD GUIDELINES

Reputation Institute

Top sustainable company?

CS Ranking of the S&P500 companies(undertaken by TSI)

Ranking criteria & assumptions: 1. Customers: deserve high quality products, complete information,remeadies for problems and respect 2. Employees: deserve dignity, fair and non-discriminatory wage, work in a safe environment and to associate freely 3. Owners & Investors: deserve fair and competitive return, transparent operations & an appropriate voice in corporate governance 4. Suppliers: deserve mutual respect & long-term stability in turn for value, quality, competitiveness and employment practices that respect human dignity 5.Competitors: deserve fair & respectful competition 6. Communities : deserve the support of public policies that promote human development and raise the standards of health and safety, education and economic and social well-being 7. The Environment : deserves protection & improvement through sustainable business practices 8. Fundamental duties: In addition to measuring impact on seven specific stakeholders, the ranking methodology also address the fundamental duties of a company best captured by trust and transparency in terms of the company’s adherence to international standards, its commitment to information dissemination, fair trade practices and ethical behavior.

2/190-194

Total Social Impact(TSI) is an organization with a broad mission to promote appropriate standards of corporate responsibility, behavior and citizenship in a

global society. TSI achieves its mission by supporting and encouraging sustainable business leadership that is best defined as the way business people lead and manage to create a global society that is prosperous, sustainable and

equitable.

TSI’s CS rankings are based on information available about companies in eight categories which are equally weighted except for the “trust and transparency”

which is given triple weight (30% for this category and 10% for each of the seven remaining categories). There are 10 benchmarks within each categories

, 80 in total.(Pl. see 2/190-193)

Highest CS ratingsfor S&P 500 companies(2002)*

(22 out of 50 )

• Bank of America• Dow Chemical• Du Pont• Eastman Kodak• Fannie Mae• Ford Motor• General Motors• Gilette Co.• HP• Home Depot• IBM• Lockheed Martin Corp.

• McDonald’s Corp• Motorola Inc.• Nike Inc.• Proctor & Gamble• Prudential Financial• Reebok International• Sunoco Inc.• Texas Instruments• Unocal Corp• Xerox Corp

Global pulse survery 2010

Ten rules for writing Corporate Sustainability Report

1.Describe your company in a way that sets the stage for a discussion of environmental and social consideration

2. Project a sustained, visionary, and realistic concern for the environment and for society

3.Identify and describe the environmental and social stakeholders that are important to your company

4. Describe the policies, systems, and organizational structure you use to manage environmental and social issues

5.Describe the environmental and social aspects and impacts faced by your company

6.Select numerical indicators of environmental and social performance that can be compared in your company

7. Describe interesting environmental and social initiatives and mitigation measures

8.Present your company’s environmental and social performance data clearly and graphically

9.Describe environmental and social costs and investmentsand

10. Set concrete ,numerical environmental and social goals and commit yourself to improvement

Influence of CS on people*

• US 45%• UK 42%• Italy 35%• France 34%• Germany 28%• Spain 26%___________________________*Consumers who have chosen to buy product/service because of company’s cs

reputation (based on 1000 sample survey per market). From “A New Mindset for CS”-a study co-sponsored by BT & CISCO (2006)

Top 5 sustainable companies

• Royal Dutch/Shell*• BP• Interface• Suncor• DuPont

_________________*43 world experts interviewed by Bob

Willard :The Next Sustainability Wave(2005)

17/38,41

• Microsoft*• Toyota• General Electric• IBM• BP

________________*survey of 903 CEOs in 20 countries by

Financial Times & Pricewaterhouse Coopers(2003)

CS Ranking of the S&P500 companies(undertaken by TSI)

Ranking criteria & assumptions: 1. Customers: deserve high quality products, complete information,remeadies for problems and respect 2. Employees: deserve dignity, fair and non-discriminatory wage, work in a safe environment and to associate freely 3. Owners & Investors: deserve fair and competitive return, transparent operations & an appropriate voice in corporate governance 4. Suppliers: deserve mutual respect & long-term stability in turn for value, quality, competitiveness and employment practices that respect human dignity 5.Competitors: deserve fair & respectful competition 6. Communities : deserve the support of public policies that promote human development and raise the standards of health and safety, education and economic and social well-being 7. The Environment : deserves protection & improvement through sustainable business practices 8. Fundamental duties: In addition to measuring impact on seven specific stakeholders, the ranking methodology also address the fundamental duties of a company best captured by trust and transparency in terms of the company’s adherence to international standards, its commitment to information dissemination, fair trade practices and ethical behavior.

2/190-194

Total Social Impact(TSI) is an organization with a broad mission to promote appropriate standards of corporate responsibility, behavior and citizenship in a

global society. TSI achieves its mission by supporting and encouraging sustainable business leadership that is best defined as the way business people lead and manage to create a global society that is prosperous, sustainable and

equitable.

TSI’s CS rankings are based on information available about companies in eight categories which are equally weighted except for the “trust and transparency”

which is given triple weight (30% for this category and 10% for each of the seven remaining categories). There are 10 benchmarks within each categories

, 80 in total.(Pl. see 2/190-193)

Highest CS ratingsfor S&P 500 companies(2002)*

(22 out of 50 )

• Bank of America• Dow Chemical• Du Pont• Eastman Kodak• Fannie Mae• Ford Motor• General Motors• Gilette Co.• HP• Home Depot• IBM• Lockheed Martin Corp.

• McDonald’s Corp• Motorola Inc.• Nike Inc.• Proctor & Gamble• Prudential Financial• Reebok International• Sunoco Inc.• Texas Instruments• Unocal Corp• Xerox Corp

Notes on principles & evolution of CS

WCED : 1983 GA resolution 38/161 suggested establishment of a special commission to propose a long-term environment and development strategy to promote sustainable development. “Our

common future” floated the concept of sustainable development and recognized the vital need for active participation of all sectors of society . Besides, the Commission viewed environment

and development as two sides of the same coin.

CERES : is a non-profit organization consisting of over 80 investors from North America forming a network of investors, environmental organizations and other public interest groups working

together to help corporations – large, medium and small, to address their sustainability challenges. Ceres also launched a CS reporting system called Global Reporting Initiative (GRI).

The GRI is used by over 1200 global corporations in reporting on their environmental, social and economic fronts. Following the 1989 Exxon Valdez oil spill in Alaska, Ceres adopted 10

principles of CS which are:

1. Protect the biospheres; 2.Use natural resources in a sustainable manner; 3. Reduce and dispose of wastes; 4. Conserve energy; 5. Minimize environmental and occupational health and

safety risks; 6. Minimize and where possible, eliminate the use of products and services that may cause damage to human health or the ecosystem

7..Inform public constantly and seek the advice of community of actions which may affect their lives;

8.Get environmental commitment of the CEO and the Board of Directors ; 9.Conduct environmental audits of the company and make such reports available to the public; and finally: 10.On the basis of these principles establish an environmental ethic against which the environmental

performance of companies can be assessed.

(www.ceres.org)

Notes on principles & evolution of CS

ICLEI(1990): ICLEI was founded in 1990 as the 'International Council for Local Environmental Initiatives'. The Council was established when more than 200 local governments from 43 countries

convened at our inaugural conference, the World Congress of Local Governments for a Sustainable Future, at the United Nations in New York.

951 cities, towns, counties, and their associations worldwide comprise ICLEI's growing membership. ICLEI works with these and hundreds of other local governments through international

performance-based, results-oriented campaigns and programs. ICLEI provides technical consulting, training, and information services to build capacity, share

knowledge, and support local government in the implementation of sustainable development at the local level. Our basic premise is that locally designed initiatives can provide an effective and cost-

efficient way to achieve local, national, and global sustainability objectives. (www.iclei.org)

PP(1992): “Precautionary Principle: When an activity raises threats of harm to human health or the environment, precautionary measures should be taken even if some cause and effect relationships

are not fully established scientifically. In this context the proponent of an activity, rather than the public, should bear the burden of proof.” Critics say that the precautionary principle is not well-defined. However, the Science and Environmental Health Network (SEHN) points out that, in all

formulations of the precautionary principle, we find three elements: 1) When we have a reasonable suspicion of harm, and 2) scientific uncertainty about cause and effect, then 3) we have a duty to

take action to prevent harm. FSC(1993) : “Forestry Stewardship Council”

Founded in 1993 as an independent international non-profit organization, the objective of FSC is :”to promote environmentally appropriate, socially beneficial and economically viable

management of world’s forests”. Although there a4re other forest certification agencies (such as American Tree Farm System and Canadian Standards Association), FSC is rapidly establishing

itself as the most credible certifying agency for forest products in the world. By now FSC has already certified 42 million hectares of forest products in 60 countries around the world 

World Business Council for Sustainable Development (WBCSD)

• Founded in 1995 by Swiss businessman (Stephen Schmidheiny) under the patronage of the UN, WBCSD is a CEO-led ,global association of some 200 international corporations throughout the globe. Among its members are:GM,DuPont,3M, Deutsche Bank, Coca- Cola, Sony ,BP, Wall Mart, Royal Dutch Shell.

• Council provides platform for companies to promote corporate sustainability.• A 2003 WB/IFC study found WBCSD as one of the “most influential forums” for companies on

corporate sustainability issues• WBCSD disseminates ten messages to corporations• (i) business is good for sustainable development and vice-versa• (ii) business can not succeed in societies that fail• (iii) poverty is a key enemy to stable society• (iv) access to markets for all supports sustainable development• (v) good governance is needed to make business apart of the solution• (vi) accountability, ethics, transparency, environmental and social responsibility and trust are

basic pre-requisites of successful business• (vii) innovation and technology development are crucial to sustainability of business• (viii) eco-efficiency – doing more with less- is at the core of the business case for sustainable

development• (ix) ecosystem in balance – a prerequisite for business• (x) cooperation beats confrontation; confrontation puts the solution at risk; cooperation and

creative partnership foster corporate sustainability

Ceres principles/ Valdez principles** CERES : is a non-profit organization consisting of over 80 investors from North America forming a network of

investors, environmental organizations and other public interest groups working together to help corporations – large, medium and small, to address their sustainability challenges. Ceres also launched a CS reporting system called Global Reporting Initiative (GRI). The GRI is used by over 1200 global corporations in reporting on their environmental, social and economic fronts. Following the 1989 Exxon Valdez oil spill in Alaska, Ceres adopted 10 principles of CS which are:

1. Protection of the Biosphere • We will reduce and make continual progress toward eliminating the release of any substance that may cause environmental damage to the air,

water, or the earth or its inhabitants. We will safeguard all habitats affected by our operations and will protect open spaces and wilderness, while preserving biodiversity.

2. Sustainable Use of Natural Resources• We will make sustainable use of renewable natural resources, such as water, soils and forests. We will conserve non-renewable natural resources

through efficient use and careful planning. 3.Reduction and Disposal of Wastes• We will reduce and where possible eliminate waste through source reduction and recycling. All waste will be handled and disposed of through

safe and responsible methods. 4. Energy Conservation• We will conserve energy and improve the energy efficiency of our internal operations and of the goods and services we sell. We will make every

effort to use environmentally safe and sustainable energy sources. 5. Risk Reduction• We will strive to minimize the environmental, health and safety risks to our employees and the communities in which we operate through safe

technologies, facilities and operating procedures, and by being prepared for emergencies. 6.Safe Products and Services • We will reduce and where possible eliminate the use, manufacture or sale of products and services that cause environmental damage or health or

safety hazards. We will inform our customers of the environmental impacts of our products or services and try to correct unsafe use. 7. Environmental Restoration • We will promptly and responsibly correct conditions we have caused that endanger health, safety or the environment. To the extent feasible, we

will redress injuries we have caused to persons or damage we have caused to the environment and will restore the environment. 8. Informing the Public • We will inform in a timely manner everyone who may be affected by conditions caused by our company that might endanger health, safety or the

environment. We will regularly seek advice and counsel through dialogue with persons in communities near our facilities. We will not take any action against employees for reporting dangerous incidents or conditions to management or to appropriate authorities.

9. Management Commitment • We will implement these Principles and sustain a process that ensures that the Board of Directors and Chief Executive Officer are fully informed

about pertinent environmental issues and are fully responsible for environmental policy. In selecting our Board of Directors, we will consider demonstrated environmental commitment as a factor.

10.Audits and Reports• We will conduct an annual self-evaluation of our progress in implementing these Principles. We will support the timely creation of generally

accepted environmental audit procedures. We will annually complete the Ceres Report, which will be made available to the public.

Ten rules for writing corporate sustainability report (CSR)