Corporate Community Investments

Corporate social responsibility must be defined strategically, encompassing not only what companies do with their profits, but also how they make them. Greenlining believes that corporate social responsibility is more than just philanthropy. More importantly, it is how companies manage their economic, social, and environmental impacts, as well as their relationships in the workplace, the marketplace, the supply chain, the community, and the realm of public policy.

The term “corporate social responsibility” is often used interchangeably with corporate responsibility, corporate citizenship, social enterprise, sustainability, sustainable development, triple-bottom line, corporate ethics, and in some cases corporate governance. Though these terms are different, they all reflect a revolution in the social roles corporations are expected to play. Companies are facing new demands to engage in public-private partnerships and are under growing pressure to be accountable not only to shareholders, but also to stakeholders such as employees, consumers, suppliers, local communities, policymakers, and society at large.

Through its legal and public policy advocacy, Greenlining strives to promote community investments and corporate social responsibility. Greenlining traditionally advocates for increased workforce and management diversity, board of directors diversity, philanthropic investments in underserved communities, and small business development through robust supplier diversity programs. Utilizing a civil rights paradigm and the Community Reinvestment Act as a model, Greenlining has expanded corporate community investments to include environmental justice initiatives, investments in educational pipelines, increased consumer protections, and the creation of more inclusive and positive corporate cultures.

Management and Board of Directors Diversity

Greenlining believes that companies serving California should reflect our state's rich diversity at all levels. One of the most critical factors in diversity's success is CEO and management commitment. Diversity among a corporation's upper echelons enhances its responsiveness to a diverse customer base, improves relationships with the community it serves, increases its ability to cope with change, and ultimately enhances its ability to more effectively maneuver in an increasingly competitive and global environment.

“I would say that [diversity] is part of our basic foundational culture and the way that we operate our businesses to be part of our communities and to support the health of the communities we serve.”

-- Debra Reed, President and CEO, San Diego Gas & Electric and Southern California Gas Company, August 6, 2007

Workforce Diversity

Greenlining believes that diversity in the workforce ultimately leads to better corporate decisions. In particular, we believe that to design the most effective solutions with the greatest impact, companies need a comprehensive understanding of the populations that they serve. It is not only about looking like the customers they serve, it's about competing in a global environment.

“At AT&T, diversity is more than the right thing to do – it's a ‘must do' if we are to be successful in the marketplace. We include diversity in all aspects of our business and focus on fostering an inclusive environment for all employees. We know this strategy gives AT&T a competitive edge.”

-- Belinda Grant-Anderson, Vice President, Leadership Development and Diversity, AT&T

Philanthropy

Increasingly, philanthropy must be viewed as one piece of broader corporate social responsibility efforts. Greenlining's advocacy in this area focuses on moving corporations to view philanthropy as a core business goal, not merely charity. Greenlining believes that strategic philanthropic investments promote long-term sustainability within California 's low-income and minority communities.

“PG&E's goal is to be the leading corporate citizen in the diverse communities we serve. We want to share our energy expertise and resources to promote innovative solutions to problems faced by the communities we serve, expand our community partnerships and philanthropic initiatives to create more economically viable communities, and engage the commitment and involvement of our employees and retirees in supporting the diverse needs of our community.”

-- PG&E, http://www.pge.com/about_us/community/charitable/index.html

Supplier Diversity

Greenlining recognizes that in today's global economy, time, quality and competitive prices win contracts. Given that the fastest growing businesses in California and nationally are owned by people of color, companies must leverage the benefits of a comprehensive supplier diversity program. By doing so, companies not only improve their own performance, but also create long-term partnerships that lead to increased economic investments in traditionally underserved communities.

“Creating and sustaining a culture that both values and effectively manages diversity for performance doesn't just happen – it requires effort and commitment. You have to be as intentional and determined about diversity as any other business imperative.”

-- Magda Yrizarry, Vice President, Workplace Culture, Diversity and Compliance, Verizon

Community Investment Agreements

In October 2007, Greenlining and the Sempra energy utilities (San Diego Gas & Electric Company and Southern California Gas Company) reached a historic six-year leadership agreement that reflects commitments in the areas of diversity and philanthropy.

Greenlining and Sempra Energy Utilities Six-Year Leadership Agreement

In March 2007, Greenlining and Pacific Gas & Electric Company reached a settlement agreement on diversity and philanthropy in the company's 2006 general rate application before the California Public Utilities Commission. The agreement was adopted by the Commission in its March 15, 2007 decision.

http://www.cpuc.ca.gov/Published/proceedings/A0512002.htm.

In its November 18, 2005 decision in the merger application of Verizon and MCI, the California Public Utilities Commission approved an agreement between Greenlining and Verizon. The agreement focused on increasing philanthropy, supplier diversity, and small business technical assistance.

Greenlining and Verizon Merger Agreement 2005

On November 18, 2005, the Commission also approved an agreement between Greenlining and AT&T as part of the merger application of AT&T and SBC. The agreement included commitments to better serve limited English proficient customers, provide affordable telecommunication service for low-income consumers, and expand efforts in the areas of philanthropy and supplier diversity.

Greenlining and AT&T Merger Agreement 2005

Small Business Technical Assistance

One of the most valuable ways corporations can invest in and promote sustainable communities is through small business technical assistance.  Sharing specialized business expertise with small businesses allows them to grow and flourish, which in turn promotes community growth.  Technical assistance programs can also help to position minority-owned small businesses to contract with the corporation, thus enhancing the company's supplier diversity portfolio as well as the business' clientele and profile.

Click here for AT&T Microenterprise Technical Assistance Program RFP