While it may be tempting for companies in developing countries to focus on growth and profits before they even begin to address climate change, our organization is finding that sustainability actually confers competitive advantage. At Masisa, the $886-million forestry and wood manufacturing company in Chile where I oversee social and environmental responsibility, a key part of our strategy is to engage business-to-business customers in our efforts to become greener.

Because the forestry industry faces growing criticism in Latin America and worldwide regarding its impact on the environment, it makes strategic sense for Masisa to differentiate itself in the marketplace not only by reducing its carbon footprint but also by helping others to reduce theirs. So we’re conducting an experiment with our B2B customers: We’re telling them what we’re doing to address climate change and advising them on their efforts, with the double goal of positioning Masisa as a leader in carbon reduction and capitalizing on our enhanced reputation.

According to our market research, our products’ final consumers—people who are remodeling their kitchens or buying new furniture—consider a company’s impact on the environment to be their second priority, right behind product design and durability, when they make purchases. (Three years ago they didn’t even include it among their top 10 concerns.) So it stands to reason that the businesses directly serving those customers would want to forge—and publicize—strong relationships with the suppliers that have set the most aggressive carbon-reduction targets.

To show how serious we are about reducing emissions, we have joined the Chicago Climate Exchange, which requires us to commit to a 6-percent decrease by 2010 (measured from a baseline established from 1998 to 2001). The steps we are taking to reach that goal include planting rapid-growth trees such as pine and eucalyptus in our forests to capture carbon from the atmosphere, burning biomass (sawdust and wood chips left over from sawing and manufacturing) to generate two-thirds of our energy, using combustion gases from thermal plants and boilers as fuel and optimizing distances between equipment and work areas to decrease overall energy consumption.

Masisa sells its wood boards through Placacentros franchise stores, where carpenters buy what they need to build furniture and to do more extensive work on homes and commercial buildings. There are some 300 Placacentros stores in Latin America, and Masisa is inviting its business partners, the franchisees, to help improve the carbon footprint of its value chain.

We start by providing them with basic education, mainly workshops that cover the fundamentals of climate change. Then we suggest ways to identify emission sources and offer ideas for tracking and reduction. Additionally, we demonstrate that certain improvements—such as skylights and energy-efficient equipment—will lower costs. We are also planning to give the Placacentros marketing materials to share with their customers; these will describe the benefits of using wood instead of cement and steel, for instance, which require more energy to produce and are nonrenewable.

Although it is still too early to say how much of an impact our experiment with B2B customers is making directly on revenues, we see signs that it is deepening customer loyalty. This year, as we have renegotiated our franchise agreements, many of our partners have granted us preferred supplier status. They’re telling us it’s because they value the support that Masisa gives them in carbon reduction and other areas where they may be struggling, and because they want to be associated with a brand that is recognized for environmental responsibility as well as product quality and design. 

Maria Emilia Correa is the corporate officer for social and environmental responsibility at Masisa, a forestry and wood manufacturing company in Santiago, Chile.

Leading Change in Latin America

While it may be tempting for companies in developing countries to focus on growth and profits before they even begin to address climate change, our organization is finding that sustainability actually confers competitive advantage. At Masisa, the $886-million forestry and wood manufacturing company in Chile where I oversee social and environmental responsibility, a key part of our strategy is to engage business-to-business customers in our efforts to become greener.

CONVERSATION:  Alyson Slater, Global Reporting Initiative’s director of strategy, on how disclosing emissions benefits companies

Carbon-emissions reporting is a laborious undertaking that publicly exposes potentially serious liabilities and risks facing your business—and it’s voluntary. So why do it? We explored that question with Alyson Slater, the director of strategy at Global Reporting Initiative, an Amsterdam-based organization that has developed the most widely used framework of reporting principles, guidance and standard disclosures on environmental, social and economic performance.

UPS at 1OO

On the occasion of United Parcel Service’s (UPS) 100th birthday, many people have asked me how a company that began as a small US messenger service evolved to become a world leader in transportation and logistics.

Winning: The long road from public sector to private business

Q: I have a master’s degree in Public Administration and have worked in government for 13 years, but I am thinking about making the leap to the private sector. Any advice? Cynthia Whitbred-Spanoulis, Virginia Beach, Virginia                 

A: Forget everything you know.

Crackdown

BANGKOK—Myanmar’s military rulers imposed a nighttime curfew and banned assemblies Tuesday after thousands of Buddhist monks defied their warnings and mounted another day of prodemocracy protests to the cheers of crowds in the streets of Yangon.

Lawfare doctrine

MAJOR General Charles J. Dunlap Jr., the US Air Force’s deputy advocate general, defined lawfare as “the strategy of using or misusing law as a substitute for traditional military means to achieve an operational objective.” 

48 hours in China with Tony Meloto

I am writing this article on a Philippine Airlines (PAL) flight from Beijing to Manila after a two-day whirlwind trip to Shanghai and Beijing with Antonio Meloto, the moving spirit behind the Gawad Kalinga (GK) movement.

Meloto Reflections

Tony Meloto’s moment of truth occurred in 1999, as he was agonizing on whether he had reached a point when he was denying his family precious time as he dedicated increasingly more of his life to Gawad Kalinga (GK).

Innovate faster by melding design and strategy

If they’re to do their job most effectively, designers should be brought into the innovation process at the very earliest stages. Too many companies still make the mistake of keeping business strategy and design activities separate.

CONVERSATION:  Outdoor-apparel start-up Ceo Chris Van Dyke on new ways to feed customers’ passions

Nau, a fledgling US retailer of high-performance outdoor apparel, does everything backward. It designed its web site before building a single store; it encourages customers to buy less; and it markets by not talking about itself.

Best practices Green Bag it

The bayong became relevant once more when SM and Unilever Philippines recently joined hands to introduce to the public a reusable shopping bag as part of their campaign to promote environmentalism in the country.

Winning: Creative employees need creative management

Q: What’s the best approach for leading creative people, and does it really differ from leading everyone else? Joe Burke, Los Angeles                 

A: In a word, yes.

Entrepreneur: The dish on Rai Rai Ken

Rai Rai Ken Ramen House and Sushi Bar has come a long way from its humble beginnings as a small and modest tea house in Makati City. It now boasts of 30 outlets all over the Philippines, and still growing. It takes pride in its tradition of serving authentic Japanese food, especially ramen or Japanese noodles, which is really its specialty.

SOS CHILDREN’S VILLAGES PHILIPPINES

Tommy was just a day old when he was found at the entrance of a town church in Batangas, wrapped in newspapers and placed in a box. His finder could tell he was newly born from the fresh umbilical cord dangling from his tiny body.

Confessions of a Sociopath

The author of the above quotation is either a physician who doesn’t want to be suspected of professional jealousy or a cynic who doesn’t want to be taken to a mental institution.

The grace of being Lean Alejandro

How does one write about a man whom one hardly knew beyond the official and professional? How does one tell his story especially to a generation 20 years removed from the time he walked this earth? How does one even venture to share what and how he thought of a world that changes so much and yet remains ever so the same? 

Block that defense: how to make sure your constructive criticism works

Why do top executives have difficulty receiving and responding to constructive criticism? Because so many high-fliers have received little criticism in their careers. As Chris Argyris, director emeritus of the Monitor Group (Cambridge, Massachusetts) and the James Bryant Conant Professor of Education and Organizational Behavior Emeritus at Harvard Business School, writes in “Teaching Smart People How to Learn,” a 1991 Harvard Business Review article, “Because they have rarely failed, they have never learned how to learn from failure.”

How they did it: charge what your products are worth

In a world with too many choices, aligning a product’s price with its perceived benefits is critical—but many companies seem to miss this simple point. A good question for any company to ask itself is “What would Goldilocks think?” Instead of offering too few benefits—or too many—for a stated price, they must perfectly align benefits and price across the product category and the brand portfolio, finding the combination that is “just right.”

Brain gain

(Last of five parts)

It’s easy for Filipinos to decide to leave the country to seek greener pastures. It’s much harder for these Filipinos, used to working abroad and earning sizeable sums, to come back.

Talent Search

(Fourth of five parts) 

Today’s companies face five critical business challenges: globalization, technology, the quest for profitability through growth, intellectual capital constraints and the exigencies of continuous change. Regardless of their industry, size or location, these challenges require these organizations to continuously build new capabilities—a responsibility which, University of Michigan School of Business professor Dave Ulrich writes, human resources (HR) should embrace for these organizations to last.

Civil Servants No More

(Third of five parts)

Jenny Balatbat left for the United States to teach kindergarten pupils, leaving behind her job as a teacher at the San Gabriel Elementary School in Bulacan.

Employee-Retention Strategies

(Second of five parts)

MANAGING talent has become more essential to the private sector than it used to be. Companies are now beginning to dig up insights into managing talent that should allow them to deal with brain drain in a more organized way. What is bold, they say, is to make lemonades when life gives you lemons.

THE WAR FOR TALENT

(First of five parts)

When the management of Fairchild Semiconductors, a global electronics firm, offered industrial engineer Manuel Villa, 32, a management job in Singapore three years ago, he didn’t hesitate to grab the offer.