Dow Chief Says it's Time to Get Out of the Petro-Desert Sandbox!

With 46,000 Employees, $53 billion in Sales, and Top Level Committment to the Human Element of Business, Dow is an Emerging Social Response Product and New Age Global Business Leader Looking for a Sandy Beach Beyond the Sandy Desert

In a press release issued today, Dow’s Chairman and CEO Andrew N. Liveris stated, “Our first quarter feedstock and energy bill leapt a staggering 42 percent year over year, and that trajectory has continued, with the cost of oil and natural gas climbing ever higher…the new level of hydrocarbons and energy costs is putting a strain on the entire value chain and is forcing difficult discussions with customers about resetting the value proposition for our products.”

Liveris went on to issued the statement, "For years, Washington has failed to address the issue of rising energy costs and, as a result, the country now faces a true energy crisis, one that is causing serious harm to America's manufacturing sector and all consumers of energy… the government's failure to develop a comprehensive energy policy is causing U.S. industry to lose ground when it comes to global competitiveness, and our own domestic markets are now starting to see demand destruction throughout the U.S."

One of Dow’s corporate energy goals is to reduce the energy intensity of its operations by 25% between the years 2005 and 2015. According to data from Dow’s 2015 Sustainability Goals Update (1Q 2008), the company’s energy efficiency and conservation efforts have “yielded savings of over 26 trillion BTUs and $190 million” from their 2005 baseline year of measurement.

A company committed to seeing the “ Human Element” in its business operations and products, Dow is focusing more on social response capitalism as a business strategy and one that embodies elements of solving the world’s most pressing challenges. Chairman and CEO of Dow has stated, “Sustainability begins at home, but its destiny is to engage the problems of the world. We will build on our company's rich legacy of leadership in solving the world's most pressing problems with a spirit of fearless accountability, not just for our own footprint on the planet, but the collective footprint we make as part of the human family."

Dow’s 46,000 employees develop and deliver products people in 160 countries with the goal of using science and technology to improve human progress. Dow’s sales exceeded $53 billion and net income more than $2.8 billion in 2007. It is refreshing to see that the executive leadership of this global firm is committed to the human element of their business as well as to sustainability.

Dow is an emerging leader in this new economy based on social response product development and capitalism highlighted in Bruce Piasecki’s book, “World Inc.”. And, with aggressive goals to reduce its energy intensity within the next decade, Dow seems to be distancing itself from other firms playing in the sandy desert of an oil based past and instead looking for solutions to get to the sandy beach of a more enriched and sustainable future!

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

Want to get real about the future of energy, natural resources and capitalism, go to www.ahcgroup.com and www.worldincbook.com to learn more on how leading companies are reinventing the future of business through social response product development and social response capitalism.