Friday, September 28, 2007

Looking for Social Response Leadership? You Might Consider “Copying” Xerox

Founded in 1906 Xerox Corporation is a $16 billion global document management company employing 53,700 people in 160 countries around the world.

The company is best known for its copier machines, making its brand synonymous with photocopying, much like Kleenex is synonymous with tissues. Xerox is a “document company” with high-end printing and publishing and multifunctional devices with can print, copy, scan and fax. Xerox also develops the consumable supplies like toner, paper and ink as well as value added services like software and workflow services. Key competitors of Xerox include Canon, HP, Hitachi, IBM, Lexmark, Ricoh, Sharp and Toshiba.

Xerox has a long history of innovation, social responsibility and environmental excellence. Just recently the company announced that they provide $1 million to the
National Academy Foundation's Academy of Engineering Initiative through the Xerox Foundation to support the study of math and science in grades 9-12, with the goal of preparing students for advanced study in engineering disciplines. The National Academy Foundation (NAF) is a partnership between business leaders and educators to prepare students for professional careers. The Xerox Foundation also recently announced that they are funding fellowships for a three year period at MIT with a $1 million grant in the areas of green innovation, imaging and smart document technology and nanotechnology. With a focus on the future of engineering, Xerox’s investments in our youth are socially responsive gifts, and ones that will likely yield future innovators.

Like many companies, in the 1980’s Xerox was very focused on risk mitigation. But during that time they were also an innovator as the company introduced the first “power down” photocopying machine in the industry to save their customers electricity. Xerox also launched a toner health study to better understand the long-term health impacts of toner on employees, customers and tech representatives. In the 1990’s there was a big focus on eco-efficiency. Xerox launched their comprehensive remanufacturing program and working to get their products back to place into new products. Xerox also became ISO 14001 certified during the 1990’s. In the mid-1990’s the company implemented chemical restriction standards (1995) and integrated EH&S into their product development process (1996). In the 2000’s the company made more of a transition toward “Global Sustainable Growth” and began implementing paper supplier requirements (2003). They have also established GHG reduction targets (2005), signed the electronic industry code of conduct to ensure they are not causing global issues, and have partnered with the Nature Conservancy (2006) on sustainable forestry practices.

According to the World Wildlife Foundation, more than 36 million acres of natural forests are lost per yea. Xerox is one of the world’s largest brand distributors of cut-sheet paper. So Xerox has established a paper sourcing policy (2000) and committed to sound EHS practices and sustainable management in their own operations and those of their paper and product suppliers. Xerox works with its paper suppliers to focus-in on forestry practices (adhere to sustainable forest management standards). In paper mills they certify that environmental practices are managed and that they operate free of chlorine. In the product use phase the company ensures that paper is used efficiently by manufacturing machines have duplex capability, and that reliably operate with recycled paper. Xerox focuses in on sustainable forestry through performance requirements, third party assurance and certifications (e.g., FSC, SFI, CSA).

Xerox, like most multinational firms with global supply chains, vast manufacturing operations and stakeholders, is impacted by several environmental and social drivers. For Xerox these include: (1)
climate change and energy, (2) preservation of clean air and water, (3) preservation of biodiversity and the World’s forest resources, and (4) waste prevention and management. To address these global challenges Xerox has:

· Innovated a high-yield paper that reduced pressure on forests because more of the tree goes into the paper. The paper (and product process) uses less total energy, uses fewer chemicals and water, is lighter weight and contributes to lower GHG emissions and hazardous air pollutants.

· Partnered with The Nature Conservancy through a $1M three year partnership to strengthen practices to conserve the world’s forests. Goals of the partnership include demonstrating measurable progress in protecting forests and providing lasting solutions for environmental sustainability.

· Reduced air emissions from operations by 93% from 1991 to 2005. Xerox products sold in Europe now meet the European Union’s
RoHS standard, and all of the company’s global manufacturing facilities are certified to the environmental management standard, ISO 14001.

· Designed Waste Free Products and Waste-Free Facilities through reduce, reuse, and recycle strategies. Xerox designs products for recovery and remanufacture with the objective being zero landfill. In doing so the company has achieved in diverting more than 2 billion pounds of material from landfill. In addition, Xerox’s energy efficient design of products and manufacturing processes reduce economic costs and mitigate climate change risks. Xerox was the first in its industry to launch remanufacturing strategies for its products resulting in asset recover, waste minimization and conservation of natural resources.

· Enabled efficient paper use and paper sourcing leading to a more sustainable paper cycle through design and sale its multifunction and copier technologies and global Paper Sourcing Policy.

All of this resource conservation, asset recovery, recycling and product stewardship result in minimizing environmental risks and impacts and save Xerox several hundred million dollars per year. In addition
Xerox's environmental strategy promotes positive brand awareness and serves to ensure full market access, resulting in more bids & tenders and more product/service sales. By incorporating energy saving and environmental features into their products and services Xerox is able to help their customers achieve their own corporate environmental goals.

According to Patricia Calkins, Vice President of Environment, Health and Safety, Xerox‘s environmental commitment is central to their sustainable development approach. Xerox seeks to reduce their environmental footprint along their supplier value chain as well as meeting regulatory compliance and reduced footprint of their manufacturing operations. In doing so the company has a top line focus on providing sustainable value to customers and stakeholders. The company seeks top line growth with products and technology services that solve environmental challenges, social problems and that improve economic conditions in the developing world. The company invests in their people and their communities and also nurtures a [better] world through more sustainable investment, innovation and market leadership that builds shareholder value.

In a world that loves documents, Xerox products and services continue to serve a growth market. The company is innovating new products, services and manufacturing operations to continually stay competitively relevant, but just as important, socially responsive. Seeing the social need in products is an innovative trait of a company. And, Xerox portrays the traits of what we call a “World Inc.” company, one that recognizes social response product development through strong leadership and
governance.

In fact, Anne M. Mulcahy, CEO notes “To Xerox, sustainable development is a race with no finish line. It requires leadership that sets high expectations and clear direction. It takes employees that embrace Xerox values and innovation that constantly pushes the frontier of what is possible.”

Xerox has found success in leading a greener revolution in the document management industry, and its strategy and implementation are worth copying…on recycled paper of course!

Mark C. Coleman
Senior Associate & World Inc. Case Leader, AHC Group, Inc.

Mark@ahcgroup.com