means operating in an environment with more stakeholders, more variables,
and higher expectations.
As we discuss in this chapter, sustainability also makes perfect sense as a
business strategy. It encourages efficiency, good planning, and public good-
will — all key facets of success in an era of globalism. In this chapter, we
discuss the myriad of advantages to taking a sustainable approach to your
business. We also cover the challenges of sustainability reporting and make
some suggestions for an automated solution.
Discovering the Great Power and Responsibility of Big Companies .....
Corporations now have unprecedented economic power. According to Bruce
Piasecki’s book World Inc., 51 of the 100 largest economies in the world are
corporations, not nations. The 100 largest multinational corporations now
control 20 percent of global foreign assets. Only 21 nations have GDP markets
larger than the annual sales revenue of each of the six largest multinational
corporations.
Like Spider-Man says, “With great power, comes great responsibility.” Corp-
orations are expected to act as good global citizens and address social and
environmental concerns that previously had been left to governments and
non-governmental organizations (NGOs). Those that don’t, face a backlash
from consumers, investors, activists, and the media.
Consider these recent examples:
In August 2007 Mattel, the world’s largest toy maker, recalled 21 million
toys in the U.S. because the products were covered in lead paint by man-
ufacturers in China or contained magnets that could choke children.
Mattel’s safety checks — which include independent audits of facilities
and ownership of many of its own factories in China — did not prevent
the chain of events that led to the recall. The company’s public image
took a battering, and it faces lawsuits over the dangerous toys.
Nike suffered worldwide criticism for employing child labor in third
world countries, particularly at soccer ball factories in Pakistan. In 2001,
the company issued its first corporate responsibility report and admit-
ted that it “blew it” when it came to monitoring its production facilities.
Its corporate responsibility report admitted, “Even when records keep-
ing is more advanced, and hiring is carefully done, one mistake can
brand a company like Nike as a purveyor of child labor.”
Critics often portray globalism as freeing corporations from responsibility. In
many ways, however, globalism has increasedexpectations on the corporation.
246 Part IV: Managing the Flow of Information
