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Sustainability Matters:How Business can Foster Inclusive
Growth in the United States
Sustainability Matters Webinar
November 30, 2016
• Vice President, BSR
2
Laura Gitman Susan Winterberg
Today’s Speakers
• Associate Director,
Inclusive Economy,
BSR
3
Our Agenda for Today’s Webinar:
1. BSR’s Framework: Business Leadership for an Inclusive Economy
2. Economic Inclusion in the U.S.: Key Issues and Challenges
3. Business Action on Inclusion: Cases and Stories
4. Question and Answer and Discussion with Audience
1. BSR Framework Business Leadership for an Inclusive Economy
4
Inclusive EconomyBusiness Leadership for an Inclusive Economy is BSR’s strategy to work
with business to enable the emergence of an inclusive economy.
GOOD JOBS
ACCESS TO
ESSENTIAL GOODS
AND SERVICES
INVESTMENTS FOR
PROSPEROUS LOCAL
COMMUNITIES
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02
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• Respect and Livelihood
• Well-being
• Diversity
• Mobility
• Availability
• Accessibility
• Affordability
• Acceptability
• Infrastructure
• Economic Livelihoods
• Social Capacity
and Institutions
An inclusive
economy enables
all individuals and
communities to
participate in, benefit
from, and contribute
to global and local
economies.
2. Inclusion in the U.S.Key Issues and Challenges
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Good JobsEmployment in the U.S.
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What do Americans want from Business?
Employee Pay, Benefits &
Treatment, 49%
Creating Jobs in U.S., 6%
Product Quality & Customer Treatment,
13%
Leadership & Ethics, 17% Supply Chain & Human
Rights, 4%
Environmental Protection, 5%
Investor Alignment , 4%
Community Well-Being & Philanthropy, 2%
Other, 11%
Source: Just Capital, July 2016, National survey, Margin of Error: +/- 2% 8
Half of Americans say good employment is most important
1. Creates Jobs in US
2. Pays a Fair Wage for
Industry/Job Level
3. Doesn’t Discriminate
1. Creates Jobs in US
2. Pays a Fair Wage for
Industry/Job Level
3. Has leaders with
integrity
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Very Liberal ModerateLiberal
Conservative Very Conservative
Across the political spectrum – good employment practices are what
Americans want most from business
Top 3 Priorities for Business
1. Pays a Living Wage
2. Pays a Fair Wage for
Industry/Job Level
3. Doesn’t Discriminate
1. Pays a Fair Wage for
Industry/Job Level
2. Doesn’t Discriminate
3. Pays a Living Wage
1. Pays a Fair Wage for
Industry/Job Level
2. Doesn’t Discriminate
3. Creates Jobs in US
Source: Just Capital, July 2016, National survey
What is a Good Job?A Good Job has a balance of three dimensions
Source: OECD, “How Good is Your Job? Measuring and Assessing Job Quality,” 2016. 10
Good Jobs
Earnings
Job Security
Quality of Working
Life
Earnings
Source: Economic Policy Institute 11
Wages have been flat for four decades and are falling for
those at the bottom
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Loss of Stable Jobs
Creation of new jobs has been disproportionately in part time, contractor,
and temporary agency positions
Job Security & Quality of Working Life
• 1 in 4 Americans were laid off during
2008-2013
• Wages on re-employment are on
average 30% lower
• Precarious jobs grew 50% in last
decade
• 1 in 4 part time workers in the U.S.
want a full time job
Decline in Management Quality
• 70% of U.S. workers are ‘not-
engaged’ at work
• 60% of millennial workers are
currently looking for a different job
ProductsAccess to Critical Products & Services in the U.S.
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In the U.S. the most critical products are also the most unaffordable
Products
• In U.S. for-profit companies play a major role in
providing basic public goods and services including in
higher education, prisons, human services and social
welfare programs
• In U.S., the most critical goods are also the least
affordable
− Higher Education
− Health Care
− Child Care
− Housing
− Food
− Financial Services (for low income earners)
Change in Consumer Prices
in U.S., 1996-2016
Source: American Enterprise Institute, Bureau of Labor
Statistics, 2016
CommunitiesLow Income and Marginalized Communities in the U.S.
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• Rising housing costs
and displacement risks
• Limited public
transportation options
to access jobs
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Housing &
TransportationPublic Safety
Physical & Financial
Health
Inner city communities face displacement, segregation and public safety
issues
Urban Communities
• Limited access to
healthy foods
• Limited access to
affordable financial
services
• Drugs and gun violence
• Police-Community
relations
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Many small cities and rural working class communities have been
devastated by globalization and automation
Small Cities & Rural Communities
Factory Closures
• Mass migration
• Home values collapse
• Small businesses close
• Vacant properties accumulate
Local Government Fiscal Crisis
• Property Tax Revenue Loss
• Layoffs of Teachers, Police, Sanitation Workers
Community Decline
• Physical Disinvestment
• Crime Rates increase
• High School Drop out rates increase
Intergenerational Poverty
3. Business Action Cases and Stories
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Inclusion in U.S.: What can Business Do?
2 Access to Critical
Products & Services
Develop new products and
pricing models that lower
costs & improve access in
critical areas:
• Health Care
• Housing & Transportation
• Higher Education
• Child Care
• Healthy Food
• Financial Services
1 Good Jobs
Re-examine business models
to create higher quality jobs:
• Commit to paying Living
Wages
• Wage Raises, Benefit
Coverage & Profit-Sharing
• Invest in Training &
Operations Improvement
• Expand Diversity &
Inclusion Programs
3 Community
Investments
Develop place-based
strategies for inclusion:
• Locate facilities in places
that are accessible to
marginalized populations
• Engage in outreach and
recruitment in communities
• Invest in retraining workers
& revitalizing communities
when closing facilities
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Improving wages, benefits, and career mobility for retail workers
Good Jobs: Starbucks
• Situation:
− Retail workers often have low wages, unpredictable
schedules, low benefit coverage, and few opportunities
for learning and advancement
• Action:
− Raise wages across board by 5% or higher
− Increase participation in employee profit sharing
− Offer benefit coverage to workers 20 hrs/wk or more
− Free college tuition program with Arizona State
− Improve workplace communications & culture
• Outcomes:
− Among lowest turnover rate of employees in industry
− High customer satisfaction and job satisfaction relative to
peers
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Providing affordable and nutritious food in inner city communities
Access to Products: Daily Table
• Situation
− U.S. inner cities are ‘food deserts’ without easy public
transport access to grocery stores
− Healthy food is least affordable and obesity epidemic is
growing among low income individuals
• Actions
− Founded by Doug Rausch, former President, Trader Joes
− Buys excess inventory from 40+ food brands & retailers
(including Wegmans and Whole Foods)
− Membership based customer system focusing on low
income zip codes
− Cooking classes and education on nutrition
• Outcomes
− First pilot store opened in Boston’s Dorchester
neighborhood in 2015
− Plans to scale to other cities
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Revitalizing local communities during facility closures
Communities: Nokia Bridge Program
• Situation: Nokia exited mobile devices business in
2011-13 in divestiture to Microsoft
− Close factories & R&D facilities in 13 countries (including
3 facilities in U.S.)
− 18,000 employees laid off
• Outcomes:
− 60% Rate of no unemployment
− 1,000 new companies started
− Full job replacement in vulnerable communities
− Successful transition of R&D portfolio, no labor actions
• Actions: Goal was to minimize days of unemployment
and replace jobs in vulnerable communities
− Career Fairs and Coaching, Job Training Grants
− Entrepreneurship Training & Start-up Funding
− Recruit new manufacturing firms to communities
Q&A and Discussion
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