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for are partners who can put their purchasing power behind a set of environmentally 
friendly practices in a way that is good for them�察�works for the producers�察�and is 
good for biodiversity。 In that way�察�you can start to capture so many more decision 
makers。 。 。 There is no global government authority to protect biodiversity。 You have 
to collaborate with the players who can make a difference�察�and one of them is 
McDonald's。; 
Conservation International is already seeing improvements in conservation of water�察�
energy�察�and waste�察�as well as steps to encourage better management of fisheries�察�among 
McDonald's suppliers。 But it is still early�察�and one will have to assess over a period 
of years�察�with comprehensive data collection�察�whether this is really having apositive 
impact on the environment。 This form of collaboration cannot and should never be a 
substitute for government rules and oversight。 But if it works�察�it can be a vehicle 
for actually getting government rules implemented。 Environmentalists who prefer 
government regulation to these more collaborative efforts often ignore the fact that 
strong rules imposed against the will of farmers end up being weakly enforced´or not 


enforced at all。 
299 
What is in this for McDonald's�拭�It is a huge opportunity to improve its global brand 
by acting as a good global citizen。 Yes�察�this is�察�at root�察�a business opportunity 
for McDonald's。 Sometimes the best way to change the world is by getting the big 
players to do the right things for the wrong reasons�察�because waiting for them to 
do the right things for the right reasons can mean waiting forever。 Conservation 
International has struck similar supply´chain collaborations withStarbucks�察�setting 
rules for its supply chain of coffee farmers�察�and Office Depot�察�with its supply chain 
of paper´product providers。 
What these collaborations do is start to ;break down the walls between different 
interest groups�察─�said Prickett。 Normally you would have the environmentalists on 
one side and the farmers on the other and each side trying to get the government to 
write the regulations in the way that would serve it。 Government would end up writing 
the rules largely to benefit business。 ;Now�察�instead�察�we have a private entity saying�察�
'We want to use our global supply chain to do some good��' but we understand that to 
be effective it has to be a collaboration with the farmers and the environmentalists 
if it is going to have any impact�察─�Prickett said。 
In this same vein�察�as a compassionate flatist�察�I would like to see a label on every 
electronics good state whether the supply chain that produced it is in compliance 
with the standards set down by the new HP´Dell´IBM alliance。 In October 2004�察�these 
three giants joined forces in a collaborative effort with key members of their 
computer and printer supply chains to promote a unified code of socially responsible 
manufacturing practices across the world。 The new Electronics Industry Code of 
Conduct includes bans on bribes�察�child labor�察�embezzlement and extortion�察�and 
violations of intellectual property�察�rules governing usage of wastewater�察�hazardous 
materials�察�pollutants�察�and regulations on the reporting of occupational injuries。 
Several major electronics manufacturers who serve the IBM�察�Dell�察�and HP supply chains 
collaborated on writing the code�察�including Celestica�察�Flextronics�察�Jabil�察�
Sanmina´SCI�察�and Solectron。 
All HP suppliers�察�for instance�察�will be required to follow the code�察�though there 
is flexibility in the timing of how they reach compliance。 ;We are completely prepared 
and have terminated relationships with 
300 
suppliers we find to be repeatedly nonresponsive�察─�said HP spokeswoman Monica Sarkar。 
As of October 2004�察�HP had assessed more than 150 of its 350 suppliers�察�including 
factories in China�察�Mexico�察�Southeast Asia�察�and Eastern Europe。 It has set up a 
steering committee with IBM and Dell in order to figure out exactly how they 
collectively can review compliance and punish consistent violators。 Compliance is 
everything�察�and so�察�again�察�it remains to be seen just how vigilant the corporations 
will be with their suppliers。 Nevertheless�察�this use of supply chains to create 
values´not just value´could be a wave of the future。 
;As we have begun to look to other ��offshore�А�suppliers to do most of our manufacturing�察�
it has become clear to us that we have to assume some responsibility for how they 


do that work�察─�explained Debra Dunn�察�HP's senior vice president of corporate affairs 
and global citizenship。 First and foremost�察�that is what many of HP's customers want。 
;Customers care�察─�said Dunn�察 �and European customers lead the way in caring。 And human 
rights groups and NGOs�察�who are gaining increasing global influence as trust in 
corporations declines�察�are basically saying�察�'You guys have the power here。 You are 
global companies�察�you can set expectations that will influence environmental 
practices and human rights practices in emerging markets。'; 
Those voices are right�察�and what is more�察�they can use the Internet to great effect�察�
if they want�察�to embarrass global corporations into compliance。 
;When you have the procurement dollars that HP and McDonald's have�察─�said Dunn�察�
;people really want to do business with you�察�so you have leverage and are in a position 
to set standards and ��therefore�А�you have a responsibility to set standards。; The 
role of global corporations in setting standards in emerging markets is doubly 
important�察�because oftentimes local governments actually want to improve their 
environmental standards。 They know it is important in the long run�察�but the pressure 
to create jobs and live within budget constraints is overwhelming and therefore the 
pressure to look the other way is overwhelming。 Countries like China�察�noted Dunn�察�
often actually want an outside force�察�like a global business coalition�察�to exert 
pressure to drive 

new values and standards at home that they are too weak to impose on themselves and 
their own bureaucrats。 In The Lexus and the Olive Tree I called this form of value 
creation ;globalution�察─�or revolution from beyond。 
Said Dunn�此 �We used to say that as long as we complied with the local law�察�that was 
all we could be expected to do。 But now the imbalance of power is so huge it is not 
practical to say that Wal´Mart or HP can do whatever they want as long as a state 
government or country does not stop them。 The leverage HP would leave on the table 
would be immoral given its superior power 。 。 。 We have the power to transmit global 
governance to our universe of suppliers and employees and consumers�察�which is a pretty 
broad universe。; 
Dunn noted that in a country like China there is an intense competition by local 
companies to become part of the HP or Dell or Wal´Mart supply chain。 Even though it 
is high pressure�察�it means a steady volume of considerable business´the kind that 
can make or break a company。 As a result�察�HP has huge leverage over its Chinese 
suppliers�察�and they are actually very open to having their factory standards lifted�察�
because they know that if they get up to the standards of HP they can leverage that 
to get business from Dell or Sony。 
Advocates of compassionate flatism need to educate consumers to the fact that their 
buying decisions and buying power are political。 Every time you as a consumer make 
a decision�察�you are supporting a whole set of values。 You are voting about the barriers 
and friction you want to preserve or eliminate。 Progressives need to make this 
information more easily available to consumers�察�so more of them can vote the right 
way and support the right kind of global corporate behavior。 
Marc Gunther�察�a senior writer for Fortune magazine andthe author of Faith and Fortune�此�


The Quiet Revolution to Reform American Business�察�is one of the few business writers 
who have recognized how global corporations can be influenced by progressive politics。 
;To be sure�察─�wrote Gunther in an essay in The Washington Post ��November 14�察�2004���察�
;there are plenty of scoundrels out there�察�indifferent to the rights and wrongs of 
corporate behavior。 And some executives who talk of social is302 
sues may be only mouthing the words。 But the bottom line is that a growing number 
of companies have come to believe that moral values�察�broadly and liberally defined�察�
can help drive shareholder values。 And that is a case study from which everyone could 
learn。; 
This progressive tilt of big business has not generated much press attention�察�Gunther 
noted。 ;Partly that's because scandal stories are juicier。 Mostly it's because 
changes in corporate practices have been incremental´and because reporters tend to 
dismiss talk of corporate social responsibility as mere public relations。 But chief 
executives of closely´watched firms like General Electric do not promise to become 
better global citizens unless they intend to follow through。 'If you want to be a 
great company today��' Jeff Immelt�察�GE's CEO�察�likes to say�察�'you have to be a good 
company。' When I asked him why GE has begun to talk more openly about corporate 
citizenship�察�he said�此�'The reason why people come to work for GE is that they want 
to be about something that is bigger than themselves。' As Immelt suggests�察�the biggest 
driver of corporate reform is the desire of companies to attract people who seek 
meaning as well as money from their work。 Few of us go to our jobs every day to enhance 
shareholder value。 Younger people�察�especially�察�want to work for companies with a 
mission that goes beyond the bottom line。; 
In sum�察�we are now in a huge transition as companies are coming to understand not 
only their power in a flat world but also their responsibilities。 Compassionate 
flatists believe that this is no time to be sitting on one's hands�察�thinking 
exclusively in traditional left´right�察�consumer´versus´company terms。 Instead we 
should be thinking about how collaboration between consumers and companies can 
provide an enormous amount of protection against the worst features of the flattening 
of the world�察�without opting for classic protectionism。 
;Compassionate capitalism。 Think it sou

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