some words! 2007’s 100 most inﬂ uential in business ethics · 2007’s 100 most inﬂ uential...

2007’s 100 Most Infl uential in

Business Ethics

These days, sustainability and responsibility are no

small matter. However, ethical action—whether performed

by large corporations or small, local nonprofi ts—is not

something that just happens; it’s brought on by inspired

individuals. In honor of the New Year, we decided

to bring together the forerunners of the business ethics

world from the past year, wrapped together in a tidy

1 to 100 ranking.

In order to come up with nominees for this list, we

reached out to a group of experts from major universities

and institutions to assemble an advisory panel. With

their collective expertise and the help of a working group

of Ethisphere editors, reporters and fact checkers (and

after much heated and lengthy debate), we assembled

the names of hundreds of nominees and chiseled it down

to a fi nely honed list of 100. The experts that weighed

in on this story all belong somewhere near the top of the

list in their own right but, unfortunately, they can’t be.

Those were the rules.

You may not agree with the politics, methods or

actions of all of the people on the 100 Most Infl uential in

Business Ethics for 2007. In fact you probably don’t.

However, the bottom line is that all of these people infl u-

enced business ethics and resulting business behavior

over the course of the year, whether that be infl uencing

customers to demand ‘greener products’ from companies,

to requiring greater disclosure by corporations about

product safety, to forcing companies to look at their

anti-bribery or anti-competitive compliance programs.

All were infl uential somehow.

On the following pages, the winners

are broken down into the following

nine core categories:

Government and Regulatory | p.20 Did the individual impact

government rules

or enforcement trends?

Business Leadership | p.22Did the individual

substantially transform

a specifi c business’

operational practices

consistent with profi table

ethical leadership,

forcing competitors to

follow suit or fall behind?

Non-Government Organization (NGO) | p.25Did the individual

impact a company’s

(or industry’s) practices

through external, non-

regulatory leadership

either through positive

collaboration or negative

publicity for a positive end?

Design and Sustainability | p.29Did the individual

substantially contribute

to or lead a product

or service redesign, which

resulted in less natural

resource use, or increased

consumer acceptance

of sustainability without

diminishing the quality

of the original product

or service?

SOMESOMEWORDS!WORDS!


SOMEWORDS!WORDS!

SOMEWORDS!WORDS!


Reprinted with the permission of Ethisphere, LLC.

www.ethisphere.com

Q4 / 2007 // ETHISPHERE 019www.ethisphere.com

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1 Neelie Kroes2 Myron T. Steele3 Jeffrey R. Immelt4 H. Lee Scott, Jr.5 Christopher Cox6 Huguette Labelle7 Anne M. Mulcahy 8 Alan L. Boeckmann9 Björn Stigson10 Pascale Dubois11 Stuart Rose12 Brian D. Miller13 Thomas Bergmark14 Mark F. Mendelsohn15 Serge P. Appel16 Greg Farrell17 Michael Dell18 William Westwood Lockyer19 Eric Pillmore20 Dan McDougall21 Charley Situ22 Thomas Donaldson23 Susilo Bambang Yudhoyono24 Humberto Garcia25 Jonathan S. Hoak

26 Alexandra A. Wrage27 Peter D. Kinder28 Mark Parker29 Al Gore30 Daniel P. Amos31 Danielle Brian32 Milton Friedman33 Timothy Smith34 Bennett Freeman35 Wolfgang Schaupensteiner36 Kirk O. Hanson37 David P. Steiner38 Peter Webster39 R. Edward Freeman40 Terry Leahy41 Maryanne Lavan42 Steve Driver43 Sarah Forrest, Anthony Ling,

Marc Fox and Stephan Feilhauer44 Willard D. “Bill” Nielsen45 Alan Knott-Craig46 Arnold Schwarzenegger47 Tensie Whelan

48 Gerald Grinstein49 Ira M. Millstein50 John Reid

51 Michael Schade52 Tan Sri Hassan Marican53 Matthew J. Kiernan54 Indra K. Nooyi55 Philippa Foster Back 56 Paul Rice57 Jay G. Martin58 Douglas M. Baker, Jr.59 A mysterious employee60 Todd Paglia 61 Alan Vinegrad62 Jonathan M. Malis63 Mark Lee64 Patrick J. Gnazzo65 Therese Martinet66 Marilyn Carlson Nelson67 Jeffrey Swartz68 Hayward Bell69 Richard Edelman70 Howard Gardner71 Andrew Weissmann72 Ethel Cormier73 Angel Gurría74 James O’ Toole75 Mark Tercek

76 Patricia Harned77 Carol Cone78 Richard Branson79 Allan Smith80 Jay Bolus81 Jon Williams82 Fred Krupp83 Bob Langert84 Lesley Gaines-Ross85 Wang Shouye’s mistress86 Marc Gunther87 Martin J. Weinstein88 David P. Stangis89 Alan Yuspeh90 David Logan91 Mark Pieth92 Roy Snell93 Ronald F. Duska94 Jon Lukomnik95 Gavin Newsom96 Mindy S. Lubber97 Jonathan Lash98 Joseph Keefe99 Mark Buckley100 Georg Kell

Media and Whistleblowers | p.30Did the individual

raise awareness

on a critical issue or

expose corruption?

Thought Leadership | 31Did the individual

conceive of new

approaches or

otherwise materially

contribute to the

fi eld of business ethics

theory in a way that

could be easily applied

by corporate leaders?

Corporate Culture | p.32Did the individual

show success to

transforming the ethical

culture and behavior

of a corporation or

institution, particularly

if such corporation or

institution previously

had a less than ethical

culture and values system?

Investment and Research | p.34Did the individual impact

corporate behavior

through infl uencing

investor decisions

and the deployment

of investment capital

due to research or

institutional fund

management practices?

Legal and Governance | p.35Did the individual impact

any legal cases which

set the precedents in

corporate compliance,

or infl uence trends or

structure in effective

corporate governance

for public and/or private

companies?

COALTXU

CLOSED


020 ETHISPHERE // Q4 / 2007 www.ethisphere.com

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Government + Regulatory1 Neelie Kroes | European Commissioner for Competition

She barked (*and bit)

The European Union’s top antitrust offi cial bared her fangs in 2007. Several major companies that have not been prosecuted in the United States are fi nding that they aren’t as lucky in Europe, as the EC prepares cases against Intel, Apple and IBM, among others. This past February, she fi ned ThyssenKrupp AG over $700 million for conspiring to rig elevator prices, a new record against an individual cartel member. As she said in a recent interview, she is going to “fi ght like hell’’ to stop price-fi xing and ensure companies get the message, adding she is prepared to raise the fi nes even further in 2008.

2 Myron T. Steele | Chief Justice, Delaware Supreme Court

He ruled Judge Steele oversaw a ruling in Stone vs. Ritter in a fashion that upheld the landmark

Caremark standard of fi duciary duties for directors, emphasized their responsibility for corporate compliance programs and elaborated on the nature of the directors’ responsibilities for conduct found to be in violation of law that causes losses to a corporation. Because of the ruling, a board may not escape personal liability unless it took action to implement a program to detect potential violations of law or corporate policy and exercised a duty of suffi cient oversight. And, most importantly, companies can no longer indemnify directors against this potential liability.

5 Christopher Cox | Chairman, U.S. Securities Exchange Commission (SEC)

He stayed sane

Between criticism for past missed opportu-nities to catch fi nancial fraud to pushback by corporations over Sarbanes-Oxley,

running the SEC is a diffi cult job. Cox is handling it supremely—bringing the SEC into the 21st century technologically, stepping up insider trading investigations and even showing humility when wrong (such as the bungled SEC terrorism “black list”).

12 Brian D. Miller | Inspector General, U.S. General Services Administration (GSA)

He squinted As co-chair of the National Procurement Fraud Task Force Legislation Committee,

Miller is pressing for higher ethics, compliance and self-reporting requirements of all government contractors, not just non-commer-cial suppliers. And, with the FAR rule that takes effect December 24, 2007, his hard work seems to be paying off already.

14 Mark F. Mendelsohn | Deputy Chief, Fraud Section, Criminal Division, U.S. Department of Justice (DOJ)

He prosecuted

In the past fi ve years, the DOJ has investi-gated more international bribery cases than in the prior 20. More and more multinational corporations are beefi ng up their interna-tional compliance programs, as well as self-reporting to the DOJ any potential irregularities that they do fi nd in hopes of lenience. The man behind the curtain who is making corporate counsel tremble with fear is Mendelsohn. He is responsible for all criminal investigations and prosecutions under the Foreign Corrupt Practices Act (FCPA), as well as principal policy responsi-

bilities relating to the OECD Convention on Combating Bribery of Foreign Public Offi cials in International Business Transactions. Those who know him say that there is one way to stay on Mendel-sohn’s good side: don’t bribe. Mendelsohn himself is quick to point out that the DOJ has yet to bring charges against any companies that have had a “meaningful compliance program” already in place.

18 William Westwood Lockyer | Treasurer, State of California

He “tried” Although Lockyer was replaced by Jerry Brown (remember him?) this year as State

AG, his legacy of aggressively targeting corporations lives on—including suits against consumer fi nance companies, HP over the pretexting scandal, automakers over greenhouse gas emissions, etc. Who can be surprised, as this is the same person quoted during the Enron trials as saying “I would love to personally escort [Enron CEO Kenneth Lay] to an 8-by-10 cell that he could share with a tattooed dude who says, ‘Hi, my name is Spike, honey.’” The pending outcome of the AG’s 2007 lawsuit against Mattel over lead paint could have far-reaching ramifi cations for all consumer product importers in terms of required up-the-supply-chain controls, tests and audits.

23 Susilo Bambang Yudhoyono (SBY) | President of Indonesia

He enacted Earlier this year, SBY mandated CSR programs for Indonesia (specifi cally, he

didn’t veto a bill requiring mandated CSR programs). Admittedly, the law is so vague that companies are left somewhat in the dark as to what constitutes a program to meet the legal requirements in the fi rst place. That being said, this is a harbinger of things to come around the world, as corporations should expect more and more countries to enact CSR requirements in the coming years.

35 Wolfgang Schaupensteiner | Senior Public Prosecutor, City of Frankfurt (Germany)

He modernized

Schaupensteiner heads a tiny fi nancial crime unit. Why does that matter? Well, it happens to be for Germany’s fi nancial

capital. According to him, his backlog of bribery, fraud and other white-collar crime cases runs into the hundreds. His solution? To advocate for U.S.-style prosecution laws, which would allow him to



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prosecute corrupt corporations (instead of only individuals, as it currently stands). Without it, corporations have little incentive to prevent corruption or launch internal investigations. Schaupen-steiner warns, “Corruption is a booming market, and globalization is facilitating it.”

46 Arnold Schwarzenegger | Governor, State of California

He made lots of new laws

When he ran for offi ce, the environment was clearly not a high priority for him. Now, after Schwarzenegger signed the California

Global Warming Solutions Act last fall, California has become the fi rst state to mandate greenhouse-gas reductions at factories, utilities, refi neries and other industrial sites. The law will cut emissions at these facilities by approximately 25 percent—in other words, back to 1990 levels. Sierra Club California attorney Bill Magavern characterizes this as “the most important global warming legislation in the country.” Schwarzenegger has contin-ued his environmental crusade throughout this year. Although he is no stranger to political controversy, one of our panelists may have summed him up best by saying, “I do wonder about Arnold Schwarzenegger, however he is undeniably a proponent of the environment.”

50 John Reid | Member of Parliament and former Home Secretary, (UK)

He made companies

liable

Reid, as sponsor of the Corporate Man-slaughter Bill, is helping criminalize manslaughter when an individual is killed due to corporate negligence. This opens

up the door to signifi cant corporate liability for companies operating in Britain, as previously the only way a company could be found liable were if it was proven that the single individual at the very top of a company was personally guilty of manslaughter. Under the new law, the focus is on the responsibility on the working practices of the organization, as set by senior managers, rather than singular role of the boss at the top.

62 Jonathan M. Malis | Assistant U.S. Attorney, U.S. Department of Justice

He didn’t prosecute

Early in 2007, it appeared as if the DOJ would potentially undertake an unprec-edented prosecution of individual board

members of Chiquita because the company had failed to stop illegal overseas payments in a timely fashion even after it had self-dis-closed the conduct. For a number of years, Chiquita had been paying a paramilitary group protection money to ensure the smooth operation of its subsidiary in Columbia. In the end, at Malis’ discretion, DOJ showed reasonable restraint and declined to pursue charges against the individual board members. Why was this important? Because going down the path of prosecution would have jeopardized the increasingly accepted self-disclosure doctrine, resulting in potential rapid diminishment in the number of compa-nies cooperating with DOJ.

73 Angel Gurría | Secretary-General, Organisation for Economic Cooperation and Development (OECD)

He earned an award

Appointed in June 2006, Gurría runs the OECD, a group of some of the world’s most powerful countries sharing ideas on how to

improve living conditions and economies. This year he won the “Globalist of the Year” award from the Canadian International Council. He also recently began a program through the OECD encouraging corporate social responsibility in developing markets, such as Brazil, Mexico, India and China.

85 Wang Shouye’s mistress | Mistress for the Deputy Commander of Chinese Navy

She gotjealous

Ah, there’s nothing like a woman scorned! Shouye’s mistress (one of at least fi ve), a young, unmarried woman whom the

Communist Party of China declined to identify, blew the whistle on Mr. Shouye’s involvement in $20 million worth of kickbacks, bribery and other economic crimes. Not only was Shouye kicked out of the National Legislature and sentenced to death, but the CPC launched a new code of conduct and compliance/ethics drive in response.

91 Mark Pieth | Chairman, OECD Working Group on Bribery in International Business Transactions

He bashedgovernments

What comes to mind when you mention “a professor from Switzerland?” Perhaps a mild-mannered man hiking in knickersbetween yodels? Banish that when it comes to Pieth. Yes, he is a professor at the University of Basel but between co-founding the Basel Institute on Governance and chairing the OECD Working Group on Bribery in International Business Transac-tions, Pieth is too busy fi ghting crime than to stop and smell the edelweiss. As a member of the Independent Inquiry Committee into the Iraq Oil-for-Food Program by the UN

Secretary-General, Pieth is doggedly ensuring that companies that paid kickbacks in the oil-for-food scandal are penalized.

95 Gavin Newsom | Mayor, San Francisco

He drank from a faucet

Like him or not, as mayor of San Francisco, Newsom has begun ushering in changes that will fl ow out (pun intended) to impact

other state and local governments as well as corporations. Under Newsom’s decree, the city government will no longer buy bottled water. This move will not only save the city money (up to $2 million spent in recent years), but provide a model for how local govern-ments may increasingly step into the middle of the sustainability and corporate services market. Up next? Probably green cleaning and hybrid transportation.



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Business Leadership3 Jeffrey R. Immelt | Chairman & CEO, General Electric

He eco-imagined

More than any other major industrial company, GE has aligned itself with environmental initiatives under Immelt’s leadership. Between GE’s Ecomagination marketing campaign and Immelt’s public commitment and leadership in the U.S. Climate Action Partnership (USCAP) coalition, GE has shown a spotlight on the discussion around climate change and profi t/loss opportunities.

4 H. Lee Scott, Jr. | President & CEO, Wal-Mart

He greened Scott became one of the most visible “green converts” back in 2006, and during

2007 he continued to put his energy-saving and sustainability initiatives into action. Under “Sustainability 360,” the company is working with suppliers to take non-renewable energy out of regular business operations and to reduce packaging by 5% by 2013—the equivalent of taking 213,000 trucks off of the road.

7 Anne M. Mulcahy | Chairman & CEO, Xerox

She shone a bright light

Could Mulcahy perhaps be the archetype for the 21st century leader? She took over the reins at Xerox in the wake of a scandal

and helped to reinvigorate the fi rm’s innovation, sales, business focus and ethical culture. When not running Xerox, she is serving as the Chairman of the Business Roundtable Corporate Governance Task Force. Under her leadership, Xerox also embraced diversity and profi tably championed sustainability. Patricia Calkins, Xerox’s VP of EH&S claims that not only did Xerox save 11 million pounds of harmful e-waste from landfi lls in 2006, but the company also saved more than $2 billion by doing so. Now that’s a lot of green!

8 Alan L. Boeckmann | Chairman & CEO, Fluor Corp.

He got mad While other CEOs “talk” about stamping out international corruption, Boeckmann

actually uses his infl uence to do something about it. With Fluor’s $14 billion in annual revenues stemming from large infrastructure projects around the globe, Boeckmann can make an impact. He’s backing the Partnering Against Corruption Initiative (PACI), supported by the World Economic Forum.

11 Stuart Rose | Chief Executive, Marks & Spencer

He promised100 things

Rose said, “Tesco, you got a 10-point plan? Hah! I got a 100-point one.” From sustain-able product procurement to selling healthier fare and running trucks on biodiesel, Rose unveiled a $400 million, 100-point, fi ve-year plan to reengineer the European retailing giant into a carbon-neu-tral, zero-waste-to-landfi ll, ethical-trading, sustainable-sourcing, health-promoting business. The scheme is called “Plan A,” as the always-clever-marketer Rose believes there is no “Plan B.”

17 Michael Dell | Chairman and CEO, Dell

He gotgreen religion

Stung by criticism surrounding Dell’s historical low rating when it comes to environmental practices, it appears

that founder Michael Dell wants to prove that Dell not only can revolutionize the computer industry (been there, done that), but can also out-credential any other computer company when it comes to going green. Dell is now the only computer maker to offer consumers free recycling, whether or not they are buying a new Dell product. In 2007, Dell announced a program to aggressively cut energy use, increase recycled paper usage in marketing publica-tions and even launched an initiative called “Plant a Tree for Me,” where new customers offset their greenhouse gas emissions—an idea that earned praise from activist group ForestEthics (see #60). If nothing else, you have to admit that when Michael Dell (who obviously has a hell of a competitive streak) decides to do something, he goes all out.

28 Mark Parker | President & CEO, Nike

He fi redfactories

When it comes to business ethics, Nike has run away from the competition, thanks to the leadership of Knight. This year brought an almost complete elimination of PVCs from Nike products, as well as a 95% reduction in the use of chemical organic solvents. Nike’s new performance shoe, the Soaker, has snap-in midsoles that enable easy disassem-bly for recycling, 100% recycled laces and “green rubber” with 96% fewer toxins. But it’s not just about design: Nike also proactively fi red its Pakistan-based soccer-

ball supplier, Saga Sports Pvt., when it could not prove that children were not involved in stitching the soccer balls.

37 David P. Steiner | CEO, Waste Management

He turned lemons into lemonade

energy

How many CEOs of multibillion-dollar corporations are willing to do a one-on-one interview with Treehugger.com? Answer: One, and his name is Dave Steiner. Steiner jokes that he should rename the company to “Materials Management” considering



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the higher levels of recycling and energy generation the company is creating under its 13-year “go green” campaign. Steiner, a UCLAlaw school grad-turned-industrial-CEO, loves to point out that WMI creates more renewable energy than the entire U.S. solar industry.

40 Terry Leahy | Chief Executive, Tesco

He labeled

As head of UK’s largest retailer, Leahy announced a groundbreaking disclosure plan under which the company would label each of the more than 70,000 products that it sells with a carbon cost. The intent is to allow consumers to see the carbon costs in the products they buy (as easy as comparing salt and calories). Considering that Leahy is also expanding Tesco to the U.S. (and with Wal-Mart having kicked off the green retailing movement in 2005), a battle of the green giants is looming. Will Tesco bring its labeling scheme with it across the Atlantic?

42 Steve Driver | President, Global Supply Chain, Cadbury Schweppes

He turned purple

to green

Under Driver’s leadership, Cadbury-Schweppes has distinguished itself in the area of sustainable purchasing and carbon emissions. The high-profi le “Purple Goes

Green” campaign included the company teaming up with the Carbon Disclosure Project (CDP) to engage Cadbury’s supply chain on carbon footprints and emissions reductions.

45 Alan Knott-Craig | CEO, Vodacom

He shared technology

Under Knott-Craig, Vodacom has proven to the multinational corporations around the world that it can be profi table to provide

valuable services to the poor. Knott-Craig believes that it is a “basic right of all people to have access to communications,” and as head of South Africa’s largest cell phone company, he delivers on it through pioneering a “shared use” cell phone agent distribution model for people who can’t afford to buy a phone but can afford to make a call.

48 Gerald Grinstein | Former CEO, Delta Airlines (retired in 2007)

He refused a bonus

Grinstein was no Grinch, except when it came to himself. Delta’s CEO shepherded the airline out of bankruptcy and took home

no more than his salary of $450,000. He directed his cash and stock awards to instead be used to establish a scholarship fund for Delta employees and their children and a hardship fund for Delta families. This came after prior management had demanded multimillion-dollar compensation packages while Delta was losing billions of dollars. Grinstein almost singlehandedly defused employee resentment and regained employee trust and confi dence in Delta management.

52 Tan Sri Hassan Marican | President and CEO, Petronas (Malaysia)

He fought corruption

Marican sits on the board of a few socially minded groups, including The Common-wealth Business Council and the World

Economic Forum’s Partnering Against Corruption Initiative (PACI). He is one of three business people on PACI’s board, and the only board member from the Far East—helping to move the anti-corrup-tion debate from only western corporations and proactively engage those from the Far East as well.

54 Indra K. Nooyi | Chairman & CEO, PepsiCo

She made a better

potato chip

PepsiCo has much invested in being a “good” corporate citizen, and Nooyi has much to do with that. What distinguishes PepsiCo, however, is that it doesn’t stop at the “easy stuff” (such as purchasing renewable energy credits, of which the company already buys more than anyone else). Rather, PepsiCo really tries to change. It reformulated products to become healthier (Baked Lays) and encouraged less consump-tion of some of them (the 100-calorie snack packs) and refurbished its chip plants to become net zero users of energy (imagine it: SunChips made only from solar power? PepsiCo’s marketing department already is).

58 Douglas M. Baker, Jr. | CEO, Ecolab

He took over Ecolab, run by Baker since 2005, is consistently ranked as one of the

most responsible corporate citizens. He has overseen several environmentally-friendly projects that have come out of the company, such as reducing waste from excessive packaging, holding Ecolab’s suppliers to a high standard and using sustainable energy sources.

66 Marilyn Carlson Nelson | Chairman & CEO, Carlson Companies

She protectedchildren

In 2007, Carlson was not hesitant to use her substantial company resources on two fronts. First, she continued to battle the commercial sexual exploitation of children

around the world through getting other leading hospitality organiza-tions to join her in agreeing to an anti-child sexual exploitation code of conduct. To top that off, she has focused her energies on bringing economic opportunities through tourism to regions with economic hardship, such as South Africa, Tunisia and Nigeria.



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67 Jeffrey Swartz | CEO, Timberland

He gave his business a

smaller shoe

Timberland’s boots are built for stomping on things, and Swartz, the grandson of company founder Nathan Swartz, wants to help protect stomping grounds for future generations. Minimizing the company’s

carbon footprint (get it?) is a big deal with the goal of carbon neutrality by 2010. Timberland is betting that consumers will care about the initiative and has gone so far as to implement a new “nutrition label” prominently on all footwear boxes (which by the way are made of 100% recycled paper, soy-based inks and no chemical glues—almost good enough to eat!).

72 Ethel Cormier | Associate Director of Nutrition Science Institute, Procter & Gamble

He provided nutrients

Cormier is instrumental in bringing GAIN (Global Alliance for Improved Nutrition) to North America. As EIRIS (see # 38)

pointed out, U.S. corporations are falling behind when it comes to addressing and benefi ting from global corporate citizenship and sustainability issues, and Cormier wants to help change that. GAIN is a Swiss foundation that works with private industry to identify ways to bring the benefi ts of good nutrition to vulnerable groups in developing countries through fortifi ed food products. Food fortifi cation is recognized by the international community as one of the most effi cient and cost-effective ways to tackle the problem of vitamin and mineral defi ciencies.

78 Richard Branson | Founder and Chairman, Virgin Group

He set a contest

Branson doesn’t just do things differently, he does them VERY differently—yet his sometimes over-the-top antics, transparent

style and fearless business approach hold great appeal to the next generation of employees, Millennials. Other executives take note: A partial list of infl uential actions in 2007 include his Virgin Airlines blowing the whistle on an illegal airline cargo price collusion and Virgin ponying up a $25 million prize for whoever can develop a commercially viable design to cut down on greenhouse gasses (Virgin Earth).

79 Allan Smith | VP Global Environmental Strategy and Programs, Steelcase

He made a chair

Steelcase no longer makes everything from steel. Under Smith, new products have come forth such as the “Think” chair, which is free of PVCs, CFCs, VOCs and other chlorines. The company has also introduced 100% recyclable workstation to its increasingly environmentally friendly, “cradle-to-cradle” designed product line.

81 Jon Williams | Head of Group SustainableDevelopment, HSBC

He defriended carbon

More than any other fi nancial institution, HSBC has shown true leadership on climate change issues, striking a chord with

consumers and forcing competitors to react. Efforts have included an attempt to become the world’s fi rst carbon neutral fi nancial services group, reducing carbon emissions with capital investment, employing renewable energy where available and purchasing carbon offsets for the balance.

83 Bob Langert | VP Corporate Social Responsibility, McDonald’s

He blogged Langert could teach a course entitled “How to Make Yourself a Target for Consumer

Activists on the Internet 101.” Why? Because he was brave enough to leap into cyberspace and start a corporate social responsibility blog for McDonald’s! This sort of openness and willingness to embrace a dialogue with the public on CSR is one of the reasons why McDonald’s has outpaced its peers—and Langert is the perfect lightning rod to face the tempest.

84 Lesley Gaines-Ross | Chief Reputation Strategist, Weber Shandwick

She PR’ed When she wasn’t clocking her many, many hours of consulting for Fortune 500

companies and their leaders, she spent the last year writing her second book (to be published in January 2008), Corporate Reputa-tion: 12 Steps to Safeguarding and Recovering Reputation. The book features the strategies, insights, research and real-life experiences needed to restore reputation following a crisis—and protect it from being tarnished in the fi rst place.

Non-Government Organization (NGO)6 Huguette Labelle | Chair of Board of Directors,

Transparency International (TI)

She stuck her neck out

TI, already famous for its Corruption Perceptions Index, an annual list ranking countries and industries by

level of corruption, is pushing into new areas and mediums, including opening up chapters in additional countries and expanding the research function under Labelle’s leadership.

9 Björn Stigson | President, World Business Council for Sustainable Development (WBCSD)

He got companies to collaborate

The name of the WBCSD is quite literal: it’s an organization of about 200 companies working together to share ideas and techniques on sustainable development, as

well as to encourage more companies to work on their own sustainability plans. Stigson not only runs the group, but he also advises the Chinese government, the Dow Jones Sustainability Indexes, the Kennedy School of Government at Harvard, the Clinton Global Initiative and the Global Reporting Initiative (whew!). Among other achievements in 2007, Stigson secured commitments



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from 12 multinational corporations to move beyond corporate philanthropy and search for responsible, sustainable and inclusive business models that are good for both business and development. Hey, that sounds a lot like Ethisphere’s tagline of “Good. Smart. Business. Profi t.” We’ll keep an eye out for our royalties check.

10 Pascale Dubois | Sanctions Evaluation and Suspension Offi cer, The World Bank

She listened Dubois is the disciplinarian that we never had when we were bad: fi rm, a good

listener, fair in punishment and knows how to hold her temper. How do we know all that? Because of the way she handles herself as the driving force behind the World Bank’s voluntary disclosure program. If you fi nd misconduct (e.g. bribery) by your company in any past World Bank-supported projects or contracts (and you haven’t been caught yet), you can set up a meeting with DuBois, confess your sins, implement a compliance program, and voilà: You will not be put on the World Bank’s Black List of dealers.

26 Alexandra A. Wrage | President, TRACE International

She preached According to Wrage, a world with less corruption is a safer one for everyone. To

help accomplish such, this former in-house counsel for Northrup Grumman founded TRACE International, a non-profi t dedicated to help stamp out global bribery. From educating representatives to conducting due diligence on agents, TRACE knows who’s good, who’s bad and who’s just faking it. This year TRACE launched BRIBELINE, a free anonymous hotline where people could list bribery events. No action is taken on the events (hey, they are anonymous after all!), but Wrage hopes that focus on trends and hotspots will emerge to help eliminate problems.

29 Al Gore | Nobel laureate and former U.S. Vice President

He won an award

Since losing the 2000 elections, Gore has started a new online/television network, become a concert promoter, created an Oscar award-winning documentary, An Inconvenient Truth, won a Nobel prize and grown a beard. Love him or hate him, you can’t help but acknowledge his role in making “going green” a very popular trend in 2007.

47 Tensie Whelan | Executive Director, Rainforest Alliance

She reined in Harry Potter

Rainforest has gone mainstream. Years ago, Whelan had trouble getting heard. Now, sales of Rainforest Alliance-certifi ed

bananas, coffee and cocoa just passed $1 billion, and the Rainforest Alliance is also the world’s leading certifi er of Forest Stewardship Council (FSC) forestlands. Which of her 2007 accomplishments excites Whelan most? She says it was working with Harry Potter publisher Scholastic Corporation to make fewer trees disappear by printing its 12 million copies of the new Harry Potter and the Deathly Hallows on FSC-Certifi ed paper.

51 Michael Schade | PVC Campaign Coordinator, Center for Health, Environment and Justice (CHEJ)

He targeted Target

The retailing giant, Target, enjoys a strong record in sustainability, ethics and citizenship with most people. Schade, however, is not one of them. Through protests at 230 stores and Internet-based campaigns, CHEJ got Target to change its aims and agreed to virtually eliminate polyvinyl chloride (PVC) through much of its consumer product supply chain.

55 Philippa Foster-Back | Director, Institute for Business Ethics (IBE)

She constructively

engaged tobacco

No, “constructively engage” is not a euphemism for using a hookah pipe. Under Foster-Back’s leadership, IBE has decided that it is better to “include and infl uence” as opposed to “exclude and criticize.”

Under this non-judgmental approach, IBE has been able to engage even companies with unhealthy products, such as tobacco compa-nies and weapons manufacturers. Between its programs, advisory services to members and proprietary research, IBE is infl uential with corporations and regulators alike. What’s next on her agenda? She joined the new Woolf ethics committee at BAE on the heels of the Saudi Arabia bribery scandal. It’s not surprising that Foster-Back was honored by the British government with an OBE last year.

56 Paul Rice | President & CEO, TransFair USA

He fairly certifi ed

Rice is the driving force behind TransFair USA, the only independent fair-trade certifi er in the United States. While there is

no governmental standard that defi nes “fair trade,” that isn’t stopping growth in its awareness and acceptance, with fair trade-certifi ed coffee showing up at Sam’s Club, Dunkin’ Donuts, McDonald’s and Starbucks, among other places. According to Fairtrade Labelling Organizations International (FLOI), a group of fair trade certifi ers, consumers spent approximately $2.2 billion on certifi ed products in 2006, an increase of more than 40% over 2005. And it’s not just coffee growers who are fair-trade certifying to such things as eschewing child labor or harmful chemicals in their crop production; Rice has dozens of other products in his “certifi able” sights, including cocoa, cotton, tea, pineapples, wine and fl owers.

60 Todd Paglia | Executive Director, ForestEthics

He preserved Thanks to Paglia, beginning this year those scantily clad Victoria’s Secret models

strutting their wares in the consumer-mailed catalog will be easier on your eyes. Why? Because the catalog will be printed with increasing proportions of post-consumer content recycled paper. ForestEthics has taken a balanced approach of engagement and protest towards conserving endangered forests from Canada to Chile. Planning on doing a lot of paper printing in 2008? Be careful: if it’s not sourced from FSC-certifi ed woodlands, your next voice-mail may be from Paglia.



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92 Roy Snell | CEO, Society for Corporate Compliance and Ethics (SCCE)

He profes-sionalized

Snell, as head of the nonprofi t SCCE, has helped transform the role of compliance and ethics from a function into a profession.

Importantly, in 2007 Snell masterminded a new program under which corporate compliance and ethics professionals (CCEPs) could train, take an exam and become certifi ed. With certifi cation now existing in all 50 states, the movement is going global. According to SCCE, the CCEP has “knowledge of relevant regulations and expertise in compliance processes suffi cient to assist corporate industries to understand and address legal obligations, and promote organizational integrity through the operation of effective compliance programs.”

96 Mindy S. Lubber | President, Ceres

She advised investors

Ceres is a national network of investors, environmental organizations and other public interest groups working with

companies and investors to address sustainability challenges such as global climate change. Over the past year, Lubber has worked with various companies and investors to discuss sustainability chal-lenges and has pushed Congress to require businesses to fully disclose any fi nancial risks they face from global climate change.

100 Georg Kell | Executive Director, United Nations Global Compact

He “compacted”

Through the Global Compact arm of the UN, Georg Kell has worked to convince busi-nesses to do their part in “exhibiting and

building the social legitimacy of business.” The Compact, this year opening operations in Amman and Cairo, now has approximately 1,500 companies around the world adhering to its 10 principles in the areas of human rights, labour, the environment and anti-corrup-tion. In Kell’s own words, “The business case for principles-based change is no longer just about avoiding costs for getting it wrong; it is increasingly about the benefi ts for getting it right.”

Design + Sustainability13 Thomas Bergmark | Social and Environmental

Affairs Manager, IKEA Group

He gave out bikes and

saved forests

Lots of companies talk about sustainability, but their actions aren’t always as clear. That’s not the case with IKEA. Under Bergmark, IKEA has cooperated with the World Wildlife Federation (WWF) to implement a forest action plan to ensure IKEA reaches its goal of sourcing all wood from verifi ed, well-managed forests. And it doesn’t stop at wood. Bergmark’s holiday present to 10,000 UK employees last year was 10,000 folding bicycles.

15 Serge P. Appel | Associate Partner, Cook + Fox Architects

He built green

Appel is in charge of constructing the Bank of America Tower at One Bryant Park going up right now. By next year, this 2.1 million-

square-foot building not only will be towering over New York City, but is also expected to be living up to its billing as the “greenest skyscraper” in the world, being the fi rst to have achieved LEED Platinum Certifi cation. How will it do that? By being constructed from recycled and renewable sources within 500 miles of New York City, by capturing and re-using all rainwater and wastewater, by using translucent, high-performance exterior glass to ensure maximum daylight in interior spaces, etc. Some of us remember that the Citigroup tower of 1978 was supposed to have solar panels on the roof. So, any screw-ups versus the “green” claims could set back interest in the sustainable construction movement by a decade. If Appel succeeds, this will be a major triumph.

24 Humberto Garcia | Packaging Manager for Environmental Sustainability, Unilever

He shrunk In being at the frontline of changing consumer consumption habits (and thereby

environmental impact) without sacrifi cing corporate profi ts (or even better, improving them), the most important thing is that Garcia didn’t give up. Quite simply when Unilever and Wal-Mart collabo-rated on a new smaller, concentrated All laundry detergent, the 3x concentrate bombed with consumers who thought they were getting less product for more money. Rather than give up, Garcia championed a new solution: go to a 2x concentrate with a smaller cap (implied per wash ‘dosing’), which was clearly understood and strongly received by consumers.

65 Therese Martinet | Director of Sustainable Development, PSA Peugeot Citroën

She cracked down on suppliers

Be more ethical, suppliers! That was the message from Martinet as the automaker told its 14 largest suppliers to endorse ethical commitments. Why does Peugeot

Citroën care? Because it wants the company to be brought into compliance with the UN Global Compact’s 10 principles and the International Labour Organisation’s (ILO) recommendations for good practice. If this were a textile or a coffee company, it wouldn’t be news. But since it is an automaker, it’s a whole new arena.

80 Jay Bolus | Manager of Technical Operations, McDonough Braungart Design Chemistry (MBDC)

He helped design

Allan Smith (see #79) didn’t redesign that tree-hugging Steelcase chair without assistance; Bolus, as project manager from

engineering fi rm MBDC was a huge help. Replacing components and ingredients with more eco-friendly yet effective alternatives is daily work for MBDC, the pioneering fi rm in “cradle-to-cradle” design in sustainable product manufacturing and recycling. Bolus is helping MBDC usher in the “Next Industrial Revolution” for such companies as Visteon, Volvo, Ford, Nike, SC Johnson and BASF.



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82 Fred Krupp | President, Environmental Defense

COALTXU

CLOSED

He protected the environment

One would think that Krupp would be pigeonholed into the category of “NGOs” by virtue of his leadership of Environmental Defense, but it’s his leadership itself that precludes that. Under Krupp, the organiza-tion has exploded with growth, entered into consulting (even opened an offi ce near Wal-Mart’s Arkansas HQ to help the retailer with energy-effi ciency and packaging-reduc-tion programs), and engaged proactively and pragmatically with businesses. Case in point: EDF was a major player in Texas Pacifi c Group (TPG) acquiring the utility TXU, without an ensuing PR nightmare. Krupp got TXU to agree to scrap 8 of 11

planned coal power plants. In return, EDF blessed the arrangement, and TPG was able to do the deal without public resistance.

90 David Logan | Co-founder and Executive Director, The Corporate Citizenship Company

He advised

When Marks & Spencer (see #11) or Cadbury Schweppes (see #42) design and

implement their CSR programs, do they do it all themselves? Not usually; instead, they call Logan. The author of numerous infl uen-tial books on corporate citizenship, Logan takes a unique approach emphasizing ROI to the effort, as he recognized early on that if the contributors see no return, they may stop “contributing.”

97 Jonathan Lash | President, World Resources Institute

He lobbied the government

Lash has both lobbied and analyzed Congress on global warming legislation. Additionally, under his leadership, the World Resource Institute recently partnered

with a group called CII-Sohrabji Godrej Green Business Centre to create New Ventures India, which supports emerging green entrepreneurs in India.

99 Mark Buckley | VP Environmental Affairs, Staples

He ledby example

Staples has a new recycling program in place: bring your used electronics to any Staples store, and the company will take

care of the rest (albeit for a fee of perhaps $10). Under Buckley’s keen eye, Staples has also began to eco-modify its products and is subtly giving the hint to the rest of the industry to do the same.

Media + Whistleblowers16 Greg Farrell | Journalist, USA Today,

and respected business author

He exposeda lie

As Lynn Brewer, the self-proclaimed “Enron Whistleblower” traveled the world, charging upwards of $13,000 per speech and being

feted by the Nobel Foundation, Farrell (author of the book, Corporate Crooks: How Rogue Executives Ripped Off Americans... and Congress Helped Them Do It!) took it upon himself to gumshoe her experience. Farrell’s research, including interviews with two dozen former Enron executives resulted in a USA Today piece that exposed Brewer herself as a fraud, which served as a powerful reminder that even the “business ethicists” may not always be what they seem.

20 Dan McDougall | Journalist, The Observer (U.K.)

He scoured sweatshops

McDougall isn’t afraid to dig—and get sweaty—for a story. In 2007, the reporter combed through textile manufacturing

operations in India, where he found children sewing beaded children’s blouses destined for retailer The Gap. This was unwelcome news for a company that prided itself on its ethical sourcing practices, having terminated more than 200 suppliers since 2004 over child labor and other violations of its social policies. In response to McDougall’s discovery, the company pledged to convene its Indian suppliers and withdraw the blouses from their retail channel. Is Gap purposefully turning a blind eye to child labor? Not likely—rather, it just underscores the diffi culty in global sourcing as suppliers will continue to misrepresent their practices without stronger supply chain auditing.

21 Charley Situ | Former Controller of LDK Solar

He blew the whistle

As former fi nancial controller for LDK, Situ blew the whistle that the company was overstating inventory values. Sure the stock

value dropped, but what will pack the punch of Situ’s revelation is that LDK is one of the few Chinese companies traded on the NYSE—and therefore subject to Sarbanes-Oxley regulations. This sent shockwaves through China’s business community, which is already offended by U.S. slams on Chinese product quality and safety. Whether that will enhance or diminish NYSE’s ability to compete for international capital listings remains to be seen.

31 Danielle Brian | Executive Director, Project On Government Oversight (POGO)

She stompedon toes

Government contractors don’t like Brian—and that is hardly a surprise. Through her POGO program, Brian employs a take-no-prisoners

approach to exposing fraud and corruption among government contractors. This includes maintaining the Federal Contractor Miscon-duct Database and writing letters to contractors demanding information on how they addressed alleged corruption issues. Contractors try to ignore Brian, but considering her media savvy, it’s increasingly diffi cult for them to do so.



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59 A mysterious employee | Unnamed Employee, National Air Cargo

He or she got a handsome

reward

We don’t know who he or she is but this employee is an inspiration to whistleblow-ers everywhere. With his or her name protected under court seal, a likely former

employee of National Air Cargo is enjoying a $7.3 million payday thanks to a portion of a qui tam settlement between the United States and National Air Cargo. In this case, National Air Cargo is paying $28 million to the government for falsely billing air-freight rates for various military deliveries between 1999 and 2005 that were actually sent via ground.

69 Richard Edelman | President & CEO, Edelman

He PR’ed too Edelman had a lot of controversy swirling around him for the now-infamous Wal-Mart

blog fi asco of 2006. However, he is a big-time proponent of social responsibility. His clients range from businesses (including Swiss Re and The Gap) to governments (such as Israel and Mexico). Corporate social responsibility is a self-proclaimed “favorite topic” of Mr. Edelman, and he uses that interest when consulting with clients. This year, Edelman has been busy traveling the globe advising many world leaders on the importance of CSR, not only for moral reasons, but to protect their businesses and economies as well.

77 Carol Cone | Chairman of Cone, Inc.

She branded Her business, the eponymous Cone, Inc., is a consulting fi rm that advises clients on

how to manage social issues for strategic sustainable advantage, which the company calls Cause Branding. She advises her companies in authenticity and tells both potential employees and companies to be wary of “green-washing.” Her company has also recently jumped on the blogwagon, launching doyoustandforsome-thing.com, a blog meant “to arm corporate and nonprofi t executives with marketplace insights, proprietary research, tools and best practices addressing cause-related initiatives.”

86 Marc Gunther | Journalist, Fortune Magazine

He wrote We suspect that Gunther, a senior writer at Fortune magazine, could throw one heckuva

raucous holiday party with a Rolodex that must range from leftist tree-huggers to Brooks Brothers-attired corporate CEOs, all of whom he collected while writing about the impact of business on society, with a focus on environmental issues. He’s also the author of four books and an ongoing blog that regularly covers CSR goings-on.

Thought Leadership22 Thomas Donaldson |

Professor and Director, PhD Program in Ethics and Law, The Wharton School, University of Pennsylvania

He spoke When the leadership of the United Nations needs to be taught about ethics, where do

they turn? Well, Professor Donaldson, naturally. FTSE Group is a world leader in the creation and management of indices. FTSE4-

Good is an innovative series of real-time indices designed to refl ect the performance of socially responsible equities. When they were looking for someone to chair their U.S. Advisory Committee, they chose Donaldson.

32 Milton Friedman | Economist and Nobel Laureate

He passed away

Friedman, by virtue of dying in late 2006, was still causing chatter and infl uence in 2007—primarily due to his oft-cited quote:

“Few trends could so thoroughly undermine the very foundations of our free society as the acceptance of corporate offi cials of a social responsibility other than to make as much money for their stockholders as possible.” Hey, it’s a great quote but how many people realize that it’s from 1962! Friedman got a lot of things right, but even he admitted that he was often wrong, too. He also frequently stated that free markets have been shown to solve social and political problems that other systems have failed to address adequately. Perhaps that is exactly what the CSR movement is doing today!

36 Kirk O. Hanson | Executive Director, Markkula Center for Applied Ethics

He broke new ground

Unlike some academics, hands-on Hanson applies his thought leadership by leading the Markkula Center for Applied Ethics.

His current research focuses on the design of corporate ethics programs and the responsibilities of boards for an organization’s ethical culture. Between advising corporations, releasing a four-volume book series, The Accountable Corporation, and helping to launch the fi rst center in China for the study of business ethics, it’s been a busy year for Hanson, who topped it off with a lifetime achievement award from the prestigious Aspen Institute’s program on Business and Society.

39 R. Edward Freeman | Professor, The Darden School,

University of Virginia, and Director, Olsson Center for Applied Ethics

He taught executives

When Freeman isn’t running the Business Roundtable Institute for Corporate Ethics or lecturing to students in the Darden MBA

program, he is usually off somewhere far away teaching on ethics to CEOs and boards of directors. This year, to leverage his time (and for those who can’t afford his fees), he published a critically acclaimed how-to guide that summarizes his 20 years of global ethics consulting on business strategy and business ethics: Managing for Stakeholders: Survival, Reputation and Success.

70 Howard Gardner | Professor of Cognition and Education,

Harvard University, and principle investigator on the GoodWork Project

He hypothesized

Professor Gardener is highly respected for his research and theories behind how the mind works and processes decisions. This

year brought new work from Gardener, including “Responsibility at Work” and “Five Minds for the Future.” He introduces the paradigm of “The Ethical Mind,” which broadens the respect for others into something more abstract through asking, “What kind of a person, worker and citizen do I want to be?”



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74 James O’ Toole | Daniels Distinguished Professor of Business Ethics, University of Denver

He taught In 2007, Professor O’Toole received a prestigious appointment as the fi rst Daniels

Distinguished Professor of Business Ethics at the University of Denver’s Daniels College of Business, a school ranked in the top 10 in the world for teaching business ethics. Professor O’Toole is driving change in corporate America with his numerous internation-ally recognized, cutting-edge books and articles in the areas of leadership, ethics, and corporate culture.

76 Patricia Harned | President, The Ethics Resource Center (ERC)

She benchmarked

TRENDSTRENDS

Harned, appointed President of the ERC in 2004, likes ethics and numbers. Under Harned’s direction, ERC has become the go-to place for statistics on workforce ethical culture, through the biannual National Business Ethics Survey (NBES). In other words, what are employees really thinking, and if employees witness misconduct will they tell anyone? The 2007 numbers don’t lie: while there was an uptick in ethical behavior observed in the workplace in the year right after Enron, the trend is headed back down.

93 Ronald F. Duska | Director, Mitchell Center for Ethical

Leadership and professor of Ethics and the Professions, The American College

He applied philosophy to fi nancial

services

Duska, a professor at the American College began his career as a philosopher. With a particular focus on ethics in accounting and fi nancial services, Duska blends philosophi-cal concerns and real-world application in

ethical decision making through his newly released book Contem-porary Refl ections on Business Ethics.

Corporate Culture19 Eric Pillmore | SVP Corporate Governance,

Tyco International

He washed off mud

When he came to Tyco with the mandate of instilling “ethics,” the company was a sinking ship (with expensive shower curtains) thought to be beyond a cultural recovery. However, through a lot of frank talk (and through removing or replacing 90% of headquarters staff), Tyco and former Navy offi cer Pillmore managed a model corporate culture turnaround from one of the most iconic examples of corporate malfeasance into a strong role model in the business ethics world. Pillmore left the company in late 2007, but was fi ghting to clean it up all the way to the end.

25 Jonathan S. Hoak | Chief Ethics & Compliance Offi cer, Hewlett-Packard

He cleaned Just call him “Mr. Clean-[up].” Hoak came into HP only a month after the infamous

pretexting scandal with the mandate to rebuild its ethics culture and help repair the company’s public reputation. Actions have included cracking down on bribery problems in China, revamping the company’s code of conduct and compliance program and addressing the HP Board issue head-on in conferences around the globe. With his folksy-style and indefatigable work ethic, Hoak appears to be acing his assignment thus far.

41 Maryanne Lavan | VP Internal Audit, Lockheed Martin

She impressed

Former vice president for ethics and business conduct at Lockheed Martin until earlier this year when she was promoted to

vice president of internal audit, Lavan continues to impress. During her reign as ethics offi cer, Lavan oversaw Lockheed compliance matters such as the annual Ethics Film Festival, a showcase of two-minute amateur videos on ethical dilemmas created by employ-ees. On top of her regular duties, throughout 2007 Lavan has tirelessly addressed conferences as well.

44 Willard D. “Bill” Nielsen | Former VP of Public Affairs & Corporate Communications, Johnson & Johnson

He donated time

After nearly two decades, Nielsen recently retired as VP of Communications for Johnson & Johnson. His isn’t a passive

retirement however, and during 2007 Nielsen has taken to traveling to as many colleges and universities as possible at his own expense to talk with public relations and business students. He doesn’t use a script but instead spends several days with students discussing his work at Johnson & Johnson and what he sees as his new mission: to help create a values statement that the public relations industry can abide by.

57 Jay G. Martin | VP & Chief Compliance Offi cer, Baker Hughes

He talked a lot





SOMESOMEWORDS!WORDS! What does a company do when it is fi ned

more than $44 million for violating the anti-bribery provisions of the FCPA? Why, it hires Martin of course. Under Martin, Baker Hughes implemented a best-in-class global anti-bribery compliance program, eliminat-ing 88% of its international commercial agents to have better controls. Between training employees and sharing best practices at peer gatherings around the world, Martin earned extensive frequent fl yer miles in 2007.



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64 Patrick J. Gnazzo | SVP, U.S. Public Sector Businesses, Computer Associates

He got promoted

Want your company to toe the line and stay ethical in its dealings? Better get Gnazzo. Previously SVP for the highly regarded

business practices, risk and compliance programs at United Technologies Corp (UTC), Gnazzo bravely jumped ship in 2005 to create a compliance and ethics culture at scandal-ridden CA. From all reports, he appears to have done a great job and has been rewarded with a promotion to the critical SVP position overseeing all of CA’s U.S. public sector businesses.

68 Hayward Bell | Chief Diversity Offi cer, Raytheon

He diversifi ed Under Bell, Raytheon recently expanded coverage of its equal opportunity policy to

include protection for transgender and transsexual employees. This is signifi cant as the ongoing debate over the Employment Non-Dis-crimination Act (ENDA) has resulted in transgender protection being eliminated from both versions of the bill. Of course, other companies such as IBM have leading gay rights protections, but Raytheon is a defense contractor, and that’s unusual enough to make it stand out.

75 Mark Tercek | Director of Corporate Citizenship, Goldman Sachs

He cultured Why is it that everyone at Goldman Sachs is better-looking, smarter and certainly richer

than the rest of us? (Who knows, but they promote from within.) Tercek is a Managing Director and Head of the Offi ce of Corporate Citizenship for Goldman Sachs. He made the list because he not only helps Goldman Sachs become a better corporate citizen, he advises and assists other companies on how to become more green, and then Goldman rewards them fi nancially by, for example, investing over $1.5 billion in alternative energy and clean technology.

88 David P. Stangis | Director of Corporate Responsibility, Intel

He made green chips

Stangis is one of those corporate compliance executives who doesn’t just maintain the status quo, he constantly tries to move it

forward. One of the green initiatives Intel has accomplished this year is to create a more environmentally friendly microprocessor. The company also routinely wins CSR awards. Of course, what ethics offi cer would be complete without the corporate blog? Stangis regularly updates Intel’s blog, CSR@Intel.

89 Alan Yuspeh | SVP Ethics, Compliance and Corporate Responsibility, Columbia/HCA Healthcare

He steered a 180

Yuspeh jumped into the driver’s seat of the nation’s largest healthcare company, Columbia/HCA, on the heels of the

Medicare scandals that nearly bankrupted the company in 1997 and immediately trained 500 compliance and ethics offi cers to work for him. With arguably more in-the-trenches experience than any other corporate ethics practitioner, Yuspeh’s value lies in the knowledge he can share (and generously does, speaking to hundreds of corporations annually).

Investment + Research 27 Peter D. Kinder | President and co-founder,

KLD Research & Analytics

$

He invested

Want to manage a socially responsible investment (SRI) fund but don’t want to do all the heavy lifting of actual research? Just call Kinder’s KLD Research & Analytics, whose work is designed for investors and money managers who integrate environ-mental, social and governance factors into their investment process. For example, in 2007 KLD introduced the Iran Compliance Product which lists companies with materially substantial operations in or trade with Iran that could run afoul of a fund’s divested requirements.

33 Timothy Smith | Director of Socially Responsive Investment, Walden Asset Management

He activated “Activated” in the sense of shareholder activism. However, Smith is not a run-of-

the-mill investor. Not only going for big, immediate returns, Walden Asset Management believes its investors also want to use their money for social change. The company actively uses its shareholder status as leverage to improve the social, environmental and economical aspects of the businesses in which it invests.

34 Bennett Freeman | SVP Social Research and Policy, Calvert

He took on Sudan

Mr. Freeman doesn’t fi nd himself “shackled” by controversy—he tackles it head-on. The former head of Burson-Marsteller’s corporate

social responsibility practice, Freeman stood out in 2007 for his pragmatic approach to encouraging divestment from Sudan without infl icting harm on the Sudanese populace itself. Under the Freeman prescription, essential goods and services companies, such as food, beverage, pharmaceutical and safety equipment (i.e. the 3M Corpora-tion), are allowed to continue to trade in the country.

38 Peter Webster | Executive Director, Ethical Investment Research Service (EIRIS)

He ranked Webster is the go-to guy for SRI investors trying to gauge the corporate citizenship

performance of nearly 3,000 companies in Europe, North America and Asia Pacifi c. EIRIS also publishes aggregate data and research, including a study released this year informing us (as many had expected) that Europe is leaps-and-bounds ahead of the United States when it comes to CSR.



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43 Sarah Forrest, Anthony Ling, | Researchers,

Marc Fox, and Stephan Feilhauer Goldman Sachs “GS Sustain Index”

They wrote a research

report

These four researchers authored and introduced Goldman Sachs’ “GS Sustain” list. This list, based upon extremely detailed and methodological research,

identifi es the companies across various industries that Goldman Sachs views to have the best strategies and resources when it comes to sustainability. Additionally, the list helps identify emerg-ing businesses and industries with signifi cant sustainable growth potential. The bonus of investing in GS’s greener list? Their picks on GS Sustain have outperformed virtually all relevant market metrics over the past several years.

53 Matthew J. Kiernan | Founder and CEO, Innovest Strategic Value Advisors

He advised When Keirnan (and his analysts) speak, investors listen. From predicting the

subprime mortgage meltdown to publishing the annual Global 100 list of the world’s most sustainable companies, Kiernan’s fi rm, Innovest Strategic Value Advisors, has infl uence. Innovest is the lead researcher for the Carbon Disclosure Project (CDP).

63 Mark Lee | CEO, SustainAbility

He analyzed Although founder John Elkington remains active within SustainAbility as Chief

Entrepreneur, Lee became the CEO in 2005. Under his leadership, SustainAbility advises clients on the various benefi ts and/or risks associated with ethical corporate governance and sustainability. The group has advised many major companies, from Microsoft to Volvo.

98 Joseph Keefe | President and CEO, Pax World Management

He investedresponsibly

Pax, founded in 1971, led the beginnings of socially responsible investing. The company also revealed proxy voting guidelines, as

well as voting history, far before it was legally required to do so. Keefe now runs the group, which manages about $2.6 billion in assets and continues to put his money where his mouth is, choosing to invest in companies with sound ethical principles.

Legal + Governance 30 Daniel P. Amos | Chairman and CEO, Afl ac

He asked what he

should be paid

Amos proves that you can be fairly (well) compensated (over $8 million in 2005) and still make the top 100 list for helping to keep executive compensation in line. Afl ac has

many things to be proud of, such as winning the U.S. Chamber of Commerce’s Corporate Citizenship Award in 2007, but the boldest move by Amos in 2007 was to agree with an investment group’s petition that allows shareholders to vote on the executive compensa-tion plan of the corporation (a “Say on Pay”). Afl ac was the fi rst major U.S. corporation to voluntarily agree to such (Verizon soon followed). Now there is some movement in Congress to make it a law.

49 Ira M. Millstein | Senior Partner, Weil, Gotshal & Manges LLP

He consulted The “godfather of governance” stayed both busy and infl uential in 2007, shuttling

among boardrooms to preach, “shareholder responsibility comes fi rst,” and playing advisory roles for OECD, NACD, TI and Yale SOM.

61 Alan Vinegrad | Partner, Covington & Burling LLP

He represented

Vinegrad is a leading expert on white-collar crimes. This year he has represented both corporations and individuals in various

regulatory matters and also provides his expertise to publications such as the New York Law Journal. Additionally he was listed in the 2007 Chambers USA guidebook as a leader in the “Litigation: White Collar Crime & Government Investigations” category.

71 Andrew Weissmann | Partner, Jenner & Block

He prosecuted

Weissmann has a notable past, including a stint at Enron where he “oversaw the prosecution of more than 30 individuals in

connection with the company’s collapse,” according to his offi cial bio. Mr. Weissmann has been busy in 2007, as well. During the past year, he advised Congress on the implications of the McNulty memorandum and has given lectures across the country, maintain-ing his signifi cance as a top legal expert on corporate compliance and white-collar crimes.

87 Martin J. Weinstein | Partner, Willkie Farr & Gallagher

He argued cases

From defending or prosecuting two of the three biggest FCPA cases in history, to representing Major League Baseball in deal-

ing with a gambling coach (Pete Rose), if it’s big, corporate and involves compliance and ethics issues (particularly international ones), Weinstein is probably involved in settling it.

94 Jon Lukomnik | Founder and Managing Partner, Sinclair Capital

He wrote a book (or two)

In 2006, Lukomnik wrote the award-win-ning book, The New Capitalists, with co-authors Stephen Davis and David Pitt-Watson. This year, he continues to write, contributing regularly to various business compliance trade and academic publications. He currently serves on the International Corporate Governance Network’s bylaws and awards committees, where he helps raise international corpo-rate governance standards.



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Learning from Others’ Mistakes: 2007’s Top 10 People We Won’t MissInfl uence isn’t only brought about by positive actions, sometimes unintended improvement comes from ethical missteps. Here are the top ten individuals that have infl uenced business ethics through professional fl ubs.

1 Conrad Black | Former CEO, Hollinger International

Black was convicted of stealing $80 million (£38.3 million) from publicly-traded Hollinger by taking money owed to investors in the form of “non-compete” payments originating from the sale of newspaper assets. During the trial he compared his “persecution” to that leveled against former President Richard Nixon, and referred to prosecutors as “Nazis” and “corporate governance terrorists.”

Infl uence (1) Thoroughly exploited the time-honored legal strategy of comparing oneself to Nixon and insulting prosecutors by label-ing them Nazi terrorists; and (2) encouraged all future white-collar criminals to voluntarily cooperate FIRST with prosecutors, as Black’s cohort in the crimes, David Radler, received only a six month sen-tence compared to Black’s 6.5 years.

2 Steven Heyer | Former CEO, Starwood Hotels & Resorts

Heyer “voluntarily” checked out of Starwood, walking away from a $35 million pay package. Many think that Starwood’s Board ousted him due to alleged inappropriate behavior after an investigation uncovered e-mails and text messages between Heyer, who is mar-ried, and a young, unmarried female employee—some sent outside normal business hours and containing suggestive content. These accusations followed other employee complaints of sexual harass-ment and preferential treatment.

Infl uence (1) Caused many companies to take their hotline reports and internal gossip more seriously; and (2) set an example for other boards to take a similar zero-tolerance response to executive sexual peccadilloes (consider how the Board of the American Red Cross ousted CEO Mark Everson in late November in a nanosecond after discovering he was having an affair with a subordinate).

3 Joseph P. Nacchio | Former CEO, Qwest Communications

This aggressive chief executive who oversaw Qwest’s spectacu-lar growth as well as its near collapse into bankruptcy was found guilty on 19 of 42 counts of illegal insider trading. He was sen-tenced to six years in prison, fi ned $19 million and forced to forfeit $52 million obtained through illegal stock sales. Sentencing Judge Nottingham described the case best: “The crimes the defendant has been found guilty of are crimes of overarching greed.”

Infl uence Provided immense motivation to other federal pros-ecutors to continue their work, as (1) the probe and trial took an exhausting fi ve years; (2) the case was based upon insider trading charges, not the broader charge of fraud; (3) the sentence was

spectacularly large; and (4) those who had worked for the aggres-sive Nacchio in the past have sarcastically said, “it couldn’t have happened to a nicer guy.”

4 Marilee Jones | Former Dean of Admissions, M.I.T.

Talk about ironic: the Dean of Admissions for one of America’s most prestigious universities is found to have lied about having three de-grees when she applied to M.I.T. Her actual degree count? Zero. The truth came out when she traveled the country promoting her book, Less Stress, More Success: A New Approach to Guiding Your Teen Through College Admissions and Beyond.

Infl uence (1) Inspired employers to redouble their background verifi cation checks (even on long-time employees); and (2) proved the accuracy of the phrase, “Holding integrity is sometimes very hard to do because the temptation may be to cheat or cut corners...but just remember that ‘what goes around comes around,’ meaning that life has a funny way of giving back what you put out.” The source of that insightful quote? Jones’ own book.

5 (tie) Randi Collotta | Former compliance offi cer, Morgan Stanley Jennifer Wang | Former VP, Morgan Stanley

Collotta, who had been responsible for helping ensure Morgan Stanley’s compliance with securities law, pleaded guilty (along with her husband) for participating in a $15 million insider trading ring.

Wang pleaded guilty in a separate insider trading scandal to tip-ping her husband about three pending acquisitions in 2005 and 2006. Wang’s attorney claimed there was a “cultural factor” in the case because there is a lax attitude in China toward insider trading (Wang is of Chinese descent), and that her client was not allowed to practice religion in China.

Infl uence These two cases involving husband-and-wife teams (1) inspired a resurgence in anti-insider trading policies and training when compliance offi cers realized that rich folks and even those in positions of authority can be tempted; (2) caused (we hope) Morgan Stanley to invest in a compliance and ethics program to prevent this rash of unethical behavior from continuing; (3) introduced a new defense strategy—when all else fails, blame Chinese culture and government; and (4) added a whole new dimension to “for better or for worse.”

6 Donal Kinsella | Former Audit Committee Chair, Kenmare Resources

Kinsella, while in Mozambique with the rest of the company’s board, celebrated the opening of a new company mine by show-ing up intoxicated at the hotel room of the fi nancial controller and company secretary, Deirdre Corcoran, in the middle of the night. The kicker is that he showed up three separate times. Even better was that he was totally naked all three times. Kinsella claimed he was sleepwalking and refused to resign, so the company voted the 64-year-old audit committee chairman out.

Infl uence (1) Inspired companies to ban alcohol at company events; and (2) encouraged board members to sleep in pajamas.



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7 Andrew Nelson | Former founder and CEO, TomorrowNow (division of SAP)

Employees of TomorrowNow used soon-to-expire login IDs from Oracle clients that were switching over to SAP in order to log into password-protected Oracle customer support sites and “effectively swept much of the content of Oracle’s system onto SAP servers.” According to Oracle (and not denied by SAP), there were “more than 10,000 illicit downloads” from Oracle’s servers between September 2006 and January 2007. Within months, Nelson and much of his executive team were canned.

Infl uence (1) Scared many compliance offi cers into making sure employees understand what truly constitutes a trade secret; and (2) gave a wake-up call to German companies about intellectual property protection.

8 Jared Ilovar | Intern, State of Ohio

Ilovar, a $10.50 per hour intern at the Ohio Administrative Knowl-edge System (OAKS), had a hard disk with more than 770,000 social security numbers of Ohio residents stolen from his car. Ilovar re-ported that he usually left them on top of his television so he would remember to bring them back to work the next day. Ilovar’s police report valued his radar detector (also stolen) at $200, and the hard disk at $15 for total damages of a few hundred bucks. The Inspector General of Ohio disagreed, saying that it cost the state upwards of $2 million in identity-theft prevention and protective services due to the data loss.

Infl uence (1) Encouraged states to look more carefully at safeguard procedures regarding personally identifi able information that they have; (2) ensured employees actually follow policies; and (3) required companies to take a look at who is chosen to be respon-sible for valuable data, as people everywhere wondered what kind of person reports the theft of their radar detector to the police. Interns everywhere suffer.

9 Steve Schwarzman | CEO & Co-Founder, Blackstone Group

As head of this large Wall Street private equity group, Schwarzman decided to celebrate his wealth with a lavish $4 million birthday party that included a Rod Stewart performance, a Baptist choir singing “He’s Got the Whole World in His Hands” and a fi ve-foot tall self-portrait from home being trucked to the party. What kind of person hangs a fi ve-foot painting of himself in his own bedroom?

Infl uence (1) Motivated other CEOs to fi nd real friends, as perhaps Schwarzman has none considering not one person gave a toast at his lavish affair; (2) inspired Congress to consider raising taxes for private equity players to level the playing fi eld after Schwarzman rubbed his money in everyone else’s face; and (3) inspired Wall Street Journal reporters to report on how little employees earn at Blackstone portfolio companies (if they still have jobs after post-buyout cutbacks).

10 John Mackey | CEO, Whole Foods

Mackey, using the pseudonym “Rahodeb,” a play on his wife Debo-rah’s name, went online into Yahoo! Finance message boards that covered Whole Foods stock. Mackay used the anonymity to praise Whole Foods, bash competitors, and compliment himself. Once uncovered, it ended up on the front page of the Wall Street Journal.

Infl uence (1) Ruined the fun for all of the other CEOs who liked to use pseudonyms to furtively go online to bash competitors and praise themselves; (2) gave strength to the adage, “When confront-ed with an ethical dilemma, ask yourself: ‘How would I feel if I saw my actions on the front page of the Wall Street Journal?’”; and (3) proved that board member zero-tolerance (see Heyer above) need only extend to sexual peccadilloes and illegal activities, and that a good CEO can stay in his/her role if his or her newsworthy actions are merely foolish.

Ronald BerenbeimPrincipal Researcher, Business EthicsThe Conference Board

John DienhartFrank Shrontz Chair for Business Ethics and Professor of ManagementSeattle University

Cristián del CampoDirector, Business and Economics Ethics ProgramAlberto Hurtado University

Charles Elson Edgar S. Woolard, Jr. Chair in Corporate GovernanceUniversity of Delaware

Paul FiorelliDirector, Williams College of Business Center for Business Ethics and Social ResponsibilityXavier University

Marianne JenningsProfessor of Legal and Ethical Studies, W.P. Carey School of BusinessArizona State University

Brian MoriartyAssociate Director for CommunicationsBusiness Roundtable Institute for Corporate Ethics

Paul MoxeyHead of Corporate Governance and Risk ManagementAssociation of Chartered Certifi ed Accountants (ACCA)

Hans SchöllhammerProfessor, Anderson School of ManagementUCLA

Buie SeawellLouis B. Beaumont Professor of Business Education, The Daniels College of BusinessUniversity of Denver

Jeffrey SeglinAssociate Professor of Writing, Literature & PublishingEmerson College

Linda TrevinoProfessor of Organizational Behavior, Cook Fellow in Business Ethics, Smeal College of BusinessPennsylvania State UniversitY

Advisory Panel:The following individuals offered their knowledge and expertise on business ethics to lend a hand in constructing this list.


some words! 2007’s 100 most inﬂ uential in business ethics · 2007’s 100 most inﬂ uential...

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