When Women Rule the C-Suite

From Fast Company http://ht.ly/2LoxU

I have a theory. It is that once women rule the "C-suite," corporate social responsibility (CSR) will become the norm for U.S. business. Why? Call me sexist, but I think that helping others is a function of nurturing and comes more naturally to women than it does to men.

The idea that organizations have responsibilities beyond making payroll and profits is more intuitive for women leaders. Tending to the needs of communities, offering child care for employees, providing time for volunteerism and environmental consciousness--it all will be a given. When a woman inhabits the C-Suite, socially responsible thinking will be baked right into the organization's DNA.

Here are four proof points, which I stipulate are patently unscientific:

1. More Women Work in Nonprofits. According to the Chronicle of Philanthropy, women make up about two-thirds of the nonprofit work force. This may be because nonprofit employment allows for a life balance that appeals to women. It may also be true that it's easier for women to sacrifice pay and benefits for the opportunity to work for a cause they believe in. Whatever the reason, it seems that women are more likely than men to spend their time and energy focused on others.

2. More Women Volunteer. The U.S. Department of Labor report shows that women volunteer at a higher rate than men across all age groups, educational levels, and other major demographic characteristics. The psychologist Dr. Val Hannemann says that women volunteer because they are hard-wired to be engaged in their communities. Volunteering connects women, and expands their sense of community. They share, they empathize, and they adopt new strategies to make a difference in the world.

3. More Women Give to Charity. A study from the Center for Philanthropy on gender and generational differences in motivations for giving showed that women are more likely to give than men (85.6% compared with 80.7%), and that women feel a strong sense of responsibility to help those who have less in our society (30% versus 26%). Although it is widely assumed that women are more charitable than men, The Wall Street Journal poll puts a number on it: wealthy women give away nearly twice as much as of their wealth as their male counterparts.

4. More Women Join the Peace Corps. Founded in 1961, the Peace Corps sends volunteers to serve in countries all over the world. Health and safety risks are an inherent part of service as volunteers serve worldwide, often in very remote areas. Volunteers are asked to make a commitment to live in a foreign country and adjust to a new culture while helping locals with education, community development, and the environment. The conditions can be rough, with very few creature comforts. Peace Corps volunteers are 60% female and 40% male.

So how do we know women CEOs would embrace CSR? Frankly, right now we don't, because the sample size of women in CEO positions is statistically insignificant. As of this year, there are 28 women CEOs in Fortune 1000 companies. While women make up 56 percent of the American workforce, only 2.8% of the Fortune 1000 companies are led by female CEOs.

But I am ever hopeful. For the first time in 220 years, three women are now serving on the United States Supreme Court. If we can trust women to decipher our laws and ensure that the United States remains a land guided and governed by the Constitution, maybe one day we can trust them to run Procter & Gamble?

For those women who are patiently waiting to take the CEO reins and help change the world, here is a quote to live by from one notable woman at the top:

"There were two kinds of people: those who do the work and those who take the credit. You want to be in the first group; there is much less competition."

--Indira Gandhi

Ann Charles is founder and CEO of BRANDfog, offering social media and corporate social responsibility strategy (CSR) for CEOs. She is also founder and producer of the Great Leaders Conference, an event honoring great leaders in CSR, social advocacy, sustainability, and innovation; speakers include Fast Company columnist Nancy Lublin, Yele Haiti Founder Wyclef Jean, Zappos CEO Tony Hseih, Timberland CEO Jeff Swartz, among others. Fast Company Editor Robert Safian will help moderate Q&A sessions. Register today at Great Leaders Conference.

Inglorious CEOs

From Fast Company

Timing is everything. Could there be a worse time than now be a CEO? First the world economic calamity shined a light into the dark corners of the banking and finance industries. The heads of powerful institutions were called on the carpet to explain a thing or two about credit default swaps and collateralized debt obligations. Then, after companies deemed "too big to fail" suddenly failed, stalwart CEOs from the automotive, banking, and insurance sectors had to ask the American people for a bailout. Reverberations of this catastrophe have cost the economy eight million jobs and counting.

As each headline about corporate malfeasance is juxtaposed against record profits and bonuses, Americans become more jaded about the ethics of today's business leadership. Many CEOs seem to lack the emotional awareness to deal with their own image problem. Goldman Sachs' CEO claimed to be doing "God's work" before settling a fraud suit to the tune of $550 million for pushing a product that was designed to fail, all in an effort to boost record profits. Meanwhile, the economy spiraled in. After the Gulf oil spill, former BP CEO Tony Hayward famously said: "I would like my life back," presumably echoing the sentiment of those who died during the explosion.

Robert Thompson put it this way: "About the only villains left are terrorists and CEOs--and terrorists will probably be portrayed as sympathetic long before CEOs."

It's no wonder CEOs are vilified in the press as power-crazed, money grubbing scoundrels. We used to be amused by Donald Trump's "You're fired!" on NBC's The Apprentice. With unemployment stuck at 10 percent (some say it's more like 22 percent), it's not funny anymore. Then you have Mr. Burns from The Simpsons, a maniacal CEO caricature. One of his favorite sayings is, "What good is money if it can't inspire terror in your fellow man?" What, indeed!

Still, when it comes to CEOs, we can't seem to get enough of our idolization of the culture of money. The Wall Street Journal recently published a list of the top-paid CEOs of the decade. With perfect sleight of hand, the article noted that four of the top ten highest-earning executives ran companies whose shareholders lost money over the decade. Lost money?

It's "pay without performance," says Jesse Fried, a law professor at Harvard University. It's also the title of Fried's book, which is subtitled, The Unfulfilled Promise of Executive Compensation.

On the bright side, with the collapse of the global economy, it seems we have finally reached a tipping point in changing the culture of business leadership. Recently, a group of American millionaires has called for an end to the tax breaks for the very rich. In the spring of this year, the Responsible Wealth Project was launched. The belief at the bottom of this initiative is that the wealthy can and should pay more to help support the dwindling budgets for education, health, and other critical social services at the state and federal levels.

What's more, corporate social responsibility (CSR) and socially responsible investing (SRI) are both on the rise, showing support for holding companies accountable for the new "Triple Bottom Line": people, planet, and profits.

I like to ask CEOs, Would you rather be known for how much money you made, or how much you gave away? Andrew Carnegie, once the richest man alive, believed in being remembered for the latter.

Today's CEOs are often portrayed as larger than life. The truth is, they are probably not quite so evil nor as brilliant as they made out to be. And once in a while, they do something that truly surprises us. This month, Warren Buffett and Bill Gates announced that 40 of America's wealthiest billionaires have signed a "Giving Pledge" in which the undersigned vow to give away half of their wealth to worthy causes during their lifetime. This seismic shift in wealth transformation exemplifies the best of America's culture of ingenuity and success. Put simply, Americans like it when the masters of the universe set a good example for the rest of us.

Ann Charles is founder and CEO of BRANDfog, offering social media and corporate social responsibility strategy (CSR) for CEOs. She is also founder and producer of the Great Leaders Conference, an event honoring great leaders in CSR, social advocacy, sustainability, and innovation; speakers include Fast Company columnist Nancy Lublin, Yele Haiti Founder Wyclef Jean, Zappos CEO Tony Hseih, Timberland CEO Jeff Swartz, among others. Fast Company Editor Robert Safian will help moderate Q&A sessions. Register today at Great Leaders Conference.

Survival of the Kindest, Social Media and Corporate Social Responsibility

In December, I read a story about social scientists who believe that as a people we are evolving to become more compassionate and collaborative in our quest to survive. This was called “Survival of the Kindest.” The theory states that sympathy is our strongest human instinct, and helping others is critical to the survival of the whole species. These days, corporations are starting to have the same realization.

Thanks to a social media culture that reveres transparency and demands accountability, companies today are seen through the critical lens of the Triple Bottom Line; people, planet and profit. Corporate Social Responsibility (CSR) states that businesses should act as stewards of society, the environment, and the economy. The social media spotlight brings accolades and new business for companies that give back, while brands behaving badly are pilloried in online communities like Twitter and Facebook, followed by the mainstream press.

Creating a CSR strategy has become a primary challenge for CEOs. Fortunately, social media can be an invaluable help to companies willing to commit to becoming better corporate citizens.

Here are 5 Steps to Develop a CSR Culture Using Social Media:

1. Commit & Lead - A CSR strategy begins with a long term vision and commitment from the top of the executive food chain. The CEO’s vision should be shared through social media channels, so supporters can engage with the brand, provide feedback and become evangelists.

Jeff Swartz, CEO of Timberland is the embodiment of CSR leadership. As the CEO of his family’s business since 1998, Swartz has been a long time activist for social and environmental issues. Swartz leverages Twitter and other social channels to engage communities and rally support for social justice on many fronts.

2. Listen & Learn – It’s important to assess the needs of the communities where you do business to determine which social issues to address. Employees that live and work in the community know the areas of greatest need. Many companies are reaping the rewards of providing assistance to neighborhood programs like school breakfasts, books for libraries, or food banks. The work humanizes the brand while strengthening the community.

For more CSR ideas, search Twitter hashtags #CSR, #sustainability, and read Business Ethics, the Magazine of Corporate Responsibility. You can also follow CSR news on Twitter @3BLMedia, and leading CSR blogger David Connor @davidcoethica, and Social Giving pioneer John Wood @johnwoodrtr from Room to Read.

3. Innovate – Some companies leverage social media to encourage spontaneous and innovative ways to help others. Last month Meg Garlinghouse (@megarling), Senior Director Yahoo! For Good wrapped up a successful campaign called Random Acts of Kindness. Like ‘Twitter for Kindness’ users and Yahoo! employees were asked to update their status with stories about helping others which were shared across the Yahoo! network. The CSR campaign received over 300,000 status updates and global participation from 11 countries. Other companies show their support for CSR by giving employees the time to participate in volunteerism. Chairman and CEO Patrick Vogt of Datran Media, a digital marketing technology company, this year provided 3 additional days specifically for employee volunteerism.

4. Communicate - Talk about what you are doing with CSR. CEOs can use social channels to tweet, blog and micro blog about CSR initiatives. Make it a key topic at Board meetings, employee meetings, press briefings, and trumpet it through all marketing channels. It’s critical to communicate CSR positions on your website to encourage brand enthusiasts to get involved. As Tim Sanders stated in Saving the World at Work, studies show then when you witness or hear about an act of compassion, you are more likely to emulate it.

The CEO of Alcatel-Lucent, Ben Verwaayen, communicates his vision for CSR on his website. “It is vital for all companies to act in a socially responsible manner and to be good corporate citizens. This involves more than ethical behavior; it means that all employees must become involved and demonstrate the company’s concern for society.”

5. Invest– As it turns out, doing good is good for business. More companies are realizing the benefits of Socially Responsible Investments (SRIs). According to the Social Investment Forum (SIF), a trade association advancing the practice of socially responsible investments, about two thirds of socially responsible mutual funds in the U.S. outperformed industry benchmarks during the 2009 economic downturn, most by significant margins.

Social scientists believe that we are wired to be kind. It would seem that they are right, especially in light of the recent outpouring of generosity to Haiti. In today’s world, admiration is bestowed upon companies that look beyond short term financial goals to engage in long term commitments for the betterment of society.

As John D. Rockefeller once said, “Think of giving not as a duty, but as a privilege.”

The Business of Being Human

A few years back, I worked for a multibillion dollar corporation that sold consumer electronics products and were pretty successful at it. At a town hall meeting, the global CEO asked the entire US audience in attendance if they had any questions. This is an Open Kimono culture, he said, so ask away. A colleague of mine raised her hand. Speaking timidly into the microphone, she asked if the company would ever consider providing on-site day care for children of employees, the way other companies sometimes did. Things went very quiet. Then the CEOs answered, “We are not in the child care business.”

Ouch.

More than 10 years later, this response still doesn’t make much sense. Company management had children, employees had children, and our customers had children. We even sold products targeted to children. The CEO’s answer was the linguistic equivalent of: We are not in the human being business.

Flash forward to 2010. Times have changed. A new leadership culture has emerged to address modern challenges. This year, a good company is defined as one that adds value outside the realm of financial success. As a result, CEOs are starting to create value systems that guide their company’s behavior across all disciplines. Companies are embracing programs that address the environment, poverty, literacy and hunger within their communities and beyond. Not incidentally, socially responsible practices are bringing back a renewed sense of employee pride, and attracting talent and new business. Best of all, customers are rewarding this behavior with patronage, loyalty, and an evangelical zeal that is spread through social media channels.

Social responsibility is finally on the rise because it’s good for communities, good for business, and good for the collective soul.

Thankfully, at the end of the day, we are all in the human being business.

Happy New Year.

Believe in Corporate Social Responsibility? You’re in Good Company

As 2009 and the decade of the 00’s come to an end, it is interesting to think about what will make a truly good company in the years to come. In the past, companies that made a profit, paid taxes, and provided employment were thought to be ‘good’ based on financial success alone. When they exceeded financial expectations, they were considered great. The higher the profits, the stronger the brand image became.

Then the economic crisis hit, along with the potential destabilization of the entire system, and the wisdom of pursuing profits at all costs turned out to have a price tag after all.

Now once again, times are changing. Post our entry into the Great Recession, a ‘good’ company has been redefined as one that adds value outside the realm of financial success. At the same time, social media has deconstructed the closed corporate culture, creating a transparency that provides consumers with an inside look at a company’s guiding principles.

The rise of Corporate Social Responsibility (CSR) has taken hold, and consumers are increasingly choosing to support companies that hold dear their own values, rather than simply produce a profit.

Here is a current snapshot of Consumer Sentiment, courtesy of Tim Sanders in Saving the World at Work:

-65% of Americans are willing to switch to brands that are associated with a good cause if the price and quality are relatively equal

-Two thirds of recent college graduates surveyed claim that they will not work for a company with a poor reputation for social responsibility

-Almost half of all consumers say they use the Internet to figure out if the products they buy are socially responsible

As it turns out, CSR is good for business as well. A recent global McKinsey survey indicated that a corporation’s environmental, social and governance programs create financial value by enhancing the reputation of companies. New philanthropy is not about writing checks, but rather leveraging corporate resources to help the communities address problems like hunger, poverty, and literacy. Smart companies are satisfying customer needs while letting them feel good about their patronage.

Just like anyone who has gone through a crisis and come out the other side, Americans have recently grown up some. We now recognize the benefits of being outwardly focused, and are smart and connected enough to become very powerful advocates for change.

As we turn the page on this decade, it is encouraging to see that the change in ourselves as consumers has brought about a powerful change in the culture of American business. We now save our admiration for companies that deliver financially, but that are also grounded by a value system that mirrors our own. As Warren Buffet recently said at Columbia University, “Having sound principals takes you through everything.”

Let’s hope next year more companies start to realize that they can do well by doing good.

Winston Churchill is Now on Twitter

Defining Leadership for the 21st Century

Winston Churchill was a leader that would fit right in with today’s social media culture. In his time, Churchill’s astute observations delivered with brevity and wit helped to build what would become his towering reputation. Although public speaking was the primary medium of the day, Churchill was a prolific writer who came up with some of the best, less-than 140 character quotes in history. Consider this example:

“History will be kind to me, for I intend to write it.”-Winston Churchill

A true leader can be defined as someone whom others are willing to follow, no matter the consequences. The ability to communicate a vision and set a new course of action during times of crisis is especially difficult. Churchill’s commanding presence on the world stage was a result of his talent to use language to persuade, convince and sway public opinion toward his way of thinking.

Today, the entire structure of communications as we know is irrevocably changed. While Twitter documents the minutia of our daily lives, Facebook showcases our weekend updates, and LinkedIn tracks our every career move. Corporate leaders have to work harder than ever to communicate their vision and get others to follow them. Social media has become the great equalizer. We now expect heads of companies to talk to us directly, to engage in online brand discussions, and to respond to questions in real time.

Many CEOs today are notoriously reluctant to engage social media. The confidence to share ideas and enter into public discussions through micro blogging does not come easily. The very idea of opening up to customers, constituents, and colleagues can be unnerving for business leaders. A common reaction is analysis paralysis. Companies decide to stay on the sidelines, opting for security over strategy.

Prior to the onslaught of social media, this may have worked. CEOs were shielded from public scrutiny. Companies controlled their message, and minimized communication channels. Today this is no longer an option. Companies can either talk about themselves, or somebody else will. The blogosphere is filled with commentary about brands, companies and the executives who lead them.

Those reluctant to engage in social platforms are missing the point. New ways to communicate directly with constituents is empowering. Leaders now have the potential to use words and ideas to build follower communities and brand enthusiasts. Micro blogging creates a personal narrative, which allows executives to be seen as real people. This skill can be learned and integrated into a company’s communications strategy. CEOs can directly influence public perception about themselves and their brands.

"There is no such thing as public opinion. There is only published opinion." -Winston Churchill

While many executives see only the risk of social media, others see the potential to demonstrate their commitment to customers and causes. Leaders like Tony Tseih of Zappos, and Jeff Swartz of Timberland are excellent examples of CEOs that successfully use Twitter to provide an inside look at their business. Mr. Tseih has been credited with a social media strategy that attracted the attention of Jeff Bezos, who acquired the company last summer. Mr. Swartz uses social channels to focus attention on climate change initiatives. Founder of Digg, Kevin Rose, is a prolific micro blogger. With over a million followers and 3,000 Tweets, Rose shares both business and personal insights on a daily basis. Like many early adopters, he uses Twitter as his own private broadcast network.

One of my favorite Twitter CEOs is Blake Mycoskie, the founder of TOMS Shoes. TOMS provides a pair of shoes to a child in need for every TOMS shoe purchase. Mycoskie tweets about the people he meets, international travel, and ideas that interest him. Continuous updates about work, play, and core values help to humanize a CEO, which in turn humanizes the brand. Over time this creates a new breed of loyalty; as customers begin to feel that they are following the tweets of a trusted friend.

A New Kind of Leadership

Winston Churchill’s style was to communicate constantly. He interpreted events as they unfolded, and explained what he intended to do about them. He was a real time communicator, which is analogous to today’s social media culture. During some of the worst bombing raids in Great Britain’s history, Churchill provided comfort to an increasingly desperate country with a few, well chosen words:

"These are not dark days: these are great days - the greatest days our country has ever lived."

Today we are all engaged in writing our own history, one micro blog at a time. That history includes defining who we are as people, as corporate citizens, and demonstrating values that go beyond bringing products to market. In a relationship economy, people are looking for a reason to work with you, to buy your products and to trust you. With the widespread adoption of social media, companies can shine a light on all the good they are doing for their business, community, employees and customers.

Leaders cannot be all things to all people, but they can certainly be true to themselves. Developing a culture where executives are forthcoming and transparent will change the leadership dynamic forever.

If Winston Churchill really were on Twitter, this would have been his most insightful Tweet ever.

“You have enemies? Good. That means you've stood up for something, sometime in your life."

In Wine there is Truth. Social Philanthropy has Arrived.

Last week Biz Stone announced that Twitter will launch a program in partnership with Room to Read, the non-profit literacy organization headed by CEO John Wood. Crushpad, whose mission is to democratize the wine industry, will collaborate with Twitter, whose mission is to democratize access to information throughout the world.

Social Philanthropy has arrived. Twitter staff will participate in making two wines, a Pinot Noir and a Chardonnay with Crushpad (www.crushpad.com), a San Francisco based custom winery. We the people are invited to follow the progress of winemaking on Twitter, and pre-order the wine at a reduced $20 dollars per bottle here www.fledglingwine.com.

The best part is that $5 from every bottle will go directly to Room to Read, an organization that BRANDfog supports through our work and that of our CEO clients. Room to Read enables literacy programs in some of the poorest regions in the world. BRANDfog supports this organization based on one simple truth. If you can read, you can do anything.

You can follow updates, participate in a Social Philanthropy, and feel good all at the same time at: www.fledglingwine.com. What a great corporate holiday gift idea.