[APPLAUSE]
SARAH MURRAY: Welcome everybody.
I'm really thrilled to be here to talk about Christine's book.
I just thought I'd show you this.
Because this is how--
CHRISTINE BADER: She's done her homework.
SARAH MURRAY: --interested I was in this book.
I'm not going to be reading every single excerpt from it,
you'll be pleased to hear.
But I kept running out of colors.
So every page I was like, ah, this is so interesting.
So, yeah.
I mean for me, having covered these issues for so many years,
this was an absolutely fascinating book for me to read
because I think as a journalist you, to a large extent,
feel on the outside of all these issues.
And so for me it was just wonderful,
and you do it so well Christine, to have this story told
from the inside of the big corporations
that I'm not normally ever allowed to go in and examine
at that sort of level of depth.
And the other thing that you did really well,
as a corporate idealist you bring
in all these other corporate idealists
sort of later in the book as well.
And Christine's kind of created with the book
a kind of amazing community of people.
And for me it was really wonderful because actually,
a lot of these people I've interviewed over the years.
And it was wonderful to kind of reconnect with these people
through your books.
So thank you for that.
CHRISTINE BADER: Oh good, Sarah.
You know, it was fun for me too to do all these interviews,
because a lot of them were people
who I'd known for a long time.
Professionally we all go to the same conferences.
But I'd never actually gotten to talk to them
about how they feel about their work and their ups
and downs and their struggles, and when their company's just
deeply disappointed them and what that was like.
So it was good fun for me too.
SARAH MURRAY: Well on that point there's
a really good line right at the beginning that I'll just read,
because it speaks very much to that point.
This is in the introduction and Christine
writes, "We believe that business
can be a force for good even as we struggle
with our own contradictions."
I think that's a theme that runs through the whole book
and is very powerfully expressed.
But I thought I'd start by, let's go back to the beginning.
Because you describe your relationship
with BP and the corporate world as something of a love affair.
And of course, it was a love affair
that was going to sort of fall apart
after the Deepwater Horizon took place.
So just tell us how that love affair started.
What was the spark that made you think that, gosh, business
might actually be a force for good in the world?
CHRISTINE BADER: Right.
OK, that's good, Sarah.
That's a good place to start.
So I had done nonprofit and government work
and then decided to go to business school, first
of all like every good liberal arts graduate.
But then also I realized that in these jobs
I seem to be reacting to things that the private sector had
done.
So when I was doing community service, when
I was working in the New York City mayor's office,
we were reacting to the conditions
that business had created.
So I was serving in communities that
had been devastated when companies had moved out
or they had actively done things bad,
like they had lobbied to replace a public garden with a parking
lot.
Or they had moved into an area and failed
to hire anybody from that city.
And then in the mayor's office, on the flip side,
companies were wooed for the jobs and for the revenue
that they bring in.
And so there was always this sort of balance of OK, well,
we clearly need to regulate business
but we want to encourage them.
So that's why I chose to go to business school
because I thought, OK.
Business actually seems to be pretty important in the world.
I should learn something about the private sector.
So I went.
But of course I had no idea what I wanted to do.
Did any of you go to business school?
Yeah.
And so you get there and people immediately
start asking you to throw your resumes in for investment
banking or consulting interviews.
And you get there and you're like, I don't know what this is
and I haven't learned anything new.
So I started to follow the herd and do that.
But then John Browne, who at the time was the CEO of BP,
came to speak at Yale.
And he had recently become the first head of a major energy
company to acknowledge the realities of climate change
and urge action.
And he was a really inspiring and thoughtful leader.
And I thought, oh.
This is what business can do.
That is intriguing to me.
So that's why I joined, because of this leader who
seemed to be a different kind of oil man,
trying to create a different kind of energy company.
And it was really intriguing.
So I joined and I went straight out to Indonesia.
And the thing that turned out to be my job in Indonesia
and China was investing in the communities living near big BP
projects.
Because everybody who I worked with
realized that what was good for those communities
was good for our business.
There were lots of other terrible examples
around the world of where community relations have gone
sour and communities have blockaded access
roads to mines, they've sabotaged equipment.
So people seem to understand that
what was good for them was good for us.
And that was my job.
So I was living this cliche of doing well and doing good.
I mean, what's not to love?
SARAH MURRAY: And was this something that came up
when you were at business school?
I mean, were these kinds of issues--
I mean, I know now business schools have been piling
on the courses about sort of sustainability
and corporate responsibility.
But back then was that something that was covered?
CHRISTINE BADER: Yeah, not specifically.
I mean, I chose to go to Yale for business school
because its mission has always been
to educate leaders for business and society.
So there's always been this sort of ethos there of, yes.
We go there in order to do some sort of service to the world.
And people who go there choose to do it
through business or working with business.
But no.
At the time there weren't sort of corporate responsibility
jobs or sustainability jobs.
SARAH MURRAY: Right.
Right.
But then now, so you've sort of met-- well,
not met John Browne, but seen him speak
and kind of bought into this idea
that BP could be a force for good.
And then you're in a helicopter flying
over the jungles of Indonesia.
Now, what is going through your head at that point?
CHRISTINE BADER: Right.
So I went out to Indonesia.
I spent my summer internship between my two years
of business school in London headquarters,
and then my first assignment with BP was out in Indonesia.
But again, this wasn't a CSR job.
I was supposed to be a commercial analyst using
my new spreadsheet skills.
And BP had just taken over ARCO, the American oil company.
And so I was there.
A lot of the ARCO stuff was in Indonesia.
So I was analyzing those projects.
There were lots of different oil fields, gas fields.
There was some coal, some solar, chemicals.
What should BP keep?
What should it spin off?
What should it do with all this stuff?
So I was just crunching numbers and doing spreadsheets
because that's what you do when you've
graduated from business school.
I didn't know that this was a job.
But one of those projects was proving
particularly interesting, and not
from a technical point of view.
From a technical point of view it was very straightforward.
So there was a big gas field and BP was going to build a plant,
a liquefied natural gas LNG plant to process the gas.
And that's pretty straightforward.
BP's done that all over the world.
But never in a place like this where
we were going to have to work with the Indonesian military,
which is not known for their good community relations.
And a village was going to have to be
moved to make way for the plant.
It was 127 families.
SARAH MURRAY: Not to mention the forest
that you were flying over.
CHRISTINE BADER: Exactly.
So my first trip out there, yeah.
And I was living in Jakarta in Indonesia's capital.
And so to get out to West Papua I
had to take an overnight commercial flight and then
a little seaplane-- it was like a twelve seater plane--
another hour and a half, and then a helicopter
the rest of the way in.
So on that last leg of the journey
there's this really dense rainforest
through flocks of birds bursting through the trees.
Not a lot of people.
And as we started to get closer I
could see the rig on the horizon in the bay.
And as we're coming in, I could just
see our landing pad and then the dormitories for the workers
there.
And we're on the equator.
It was pretty hot.
I had never been in a helicopter before.
This was pretty exciting.
But I was starting to get really sweaty and uncomfortable.
And I realized that I was envisioning
the sketches of what the plant was going to look like.
And it was this gleaming, modern industrial complex and imposing
it on this not totally pristine, but relatively pristine
rainforest.
And I started to get really ill.
I just thought for the first time, oh.
This is what we do.
SARAH MURRAY: Not something they prepare you
for at business school.
CHRISTINE BADER: No, I mean, I understand conceptually.
Like, yeah.
We keep the lights on and we help keep the cars moving.
But that's when it really hit me.
And so we landed.
And you can't really talk in a helicopter
because it's pretty loud.
But I was there with one of the vice presidents
for environmental policy, and she immediately
saw the distress on my face.
And she said, that's why we're here.
We're going to get this right.
SARAH MURRAY: Now what does getting it right it mean?
Because I mean, I think it would be
interesting to talk a little bit about perceptions of business
and how business operates and what
the realities are on the ground.
Because I certainly get a sense often in the people
that I talk to that aren't in the business world,
that they think, well, business is
just this evil empire that comes in and lands, and that's it.
And the reality on the ground and the things
that you were then going to deal with
is sort of complex and messy.
And how much of that is the company's responsibility,
and how much are you dealing with the existing environment
and having to sort of negotiate all these
very complex trade offs?
CHRISTINE BADER: Yeah, that's exactly the question,
and this company knows that as well as anyone.
And we can get into that certainly as well.
So I guess the first fundamental macro concept is the point
that energy does keep the lights on
and it helps enable the lifestyles that we
want to lead.
And so I suppose there are plenty
of people who want to try to stop globalization and stop
development altogether.
And that's fine.
There should be some people who want to do that.
I mean, I can get a little bit snarky with them and ask well,
who keeps your lights on and how did you get here today,
and what made that possible?
SARAH MURRAY: We live part of the corporate world
as consumers and individuals, don't we?
CHRISTINE BADER: Exactly.
I mean, one thing that I do once in awhile
is just a little game, which I invite you all to play with me.
But just stop and take an inventory, right?
I just stop and say, OK.
Head to toe, what am I wearing right now and what's in my bag?
And how many companies or brands have I
interacted with since I woke up this morning?
So I've got a coffee maker and I've got my alarm clock,
and I woke up in my sheets that were made here and bought here.
And I just go through, OK.
Well, what do I know about these companies?
And where does that put me on the
responsible to overconsumption spectrum?
SARAH MURRAY: Right.
And I think what's interesting, and this is particularly true,
I guess, of sort of apparel industries
and food which have very complex supply chains.
But even with energy you turn the lights on
and you don't think about that Indonesian villager that
had to move to another village or to a new village.
What were the real on the ground challenges
that you didn't expect and that certainly business school might
not have prepared you for?
[LAUGHTER]
SARAH MURRAY: Some of the sort of nitty gritty.
I mean, I think there was something
you mentioned about the fact that this was really
interesting to me, that you made it
so that the workers did not get paid on site.
CHRISTINE BADER: Yeah.
That's right.
SARAH MURRAY: That for me reflected
a lot of the complexities that you're
dealing with on the ground.
So perhaps just explain that.
CHRISTINE BADER: Sure, I can explain that.
So we were building this big plant in a really remote area.
There was one village there but no other cities nearby.
So we stipulated in the contract with the construction company
that they would not hire or pay people on the site.
They would only do that in one of the three existing
towns that were a little ways away.
The reason is that if you let it be known that you're
going to be hiring people right at the site,
people move right up to the fence.
And then they usually, if they can't get a job because
there aren't that many jobs, than they
tap into the electricity.
They stay there because they've moved.
And that's how shantytowns pop up.
And then idol hands, right?
And that's how bad things arise, because then also,
if you pay people on site, imagine
if somebody's done a three week shift
and then they stand there.
They walk out of a plant and you hand them
three weeks worth of cash, and they're
not home with their families yet.
You might imagine what pops up.
So then brothels pop up.
Sort of ad hoc gambling parlors pop up.
And then what happens, then the police
feel like they need to move in for protection,
but they're actually taking their cut.
And then the military step up their presence
because they're like, wait a second.
The police are getting in on all the action, right?
So you can see how these things start to compound.
So that's why we didn't want to hire [INAUDIBLE].
SARAH MURRAY: It's really so complex, isn't it?
For so many industries.
One of the things I thought would
be interesting to ask you about was where you see-- you talk
a lot in the book about CSR and later we'll
talk a little bit about sort of careers in CSR
and how you move into that.
Personally I hate the term CSR.
I don't know about you.
Because I think it sort of silos these things
into some kind of acronym that half the world
doesn't know what that means anyway.
So where do you see the balance?
A lot of companies will talk about their sustainability
program or their business responsibility program.
And then you find that they're talking
about changing the light bulbs in the office or recycling
things.
What you've just described on the ground in Indonesia,
to me that's corporate responsibility.
How do you see that sort of view in business,
that attitude having shifted?
Or has it shifted?
CHRISTINE BADER: Yeah, I agree with you.
I mean, the term corporate social responsibility
sort of drives me crazy because it can mean everything
and it can mean nothing.
So I definitely see the same thing.
And I think that the benefit is that so many more companies are
comfortable talking about that, whatever it is.
So it actually gets them to the table, right?
And so I have a nice quote in there
from Aron Cramer who runs BSR, Business for Social
Responsibility.
And he says the trick is to get them to the table
and then move the table.
Right?
So the point is to get more and more companies
in talking about corporate social responsibility,
talking about sustainability.
So you get them into the conversation
and then try to explain it.
OK.
Actually this is what we're really talking about here.
We're not actually talking about sending out
employees in matching t-shirts to go
paint a wall for five hours a week.
Like, that's great as is recycling
and as are these other programs, but that's
actually not what we're talking about here, right?
We're talking about what are the impacts that your core
business has on society?
And I think here that's become clear
as people have realized the challenges to privacy
and free expression that your core business has on the world
and that you as a company have a responsibility to address.
And the other stuff that you do is really interesting
and it's really great and it's really important,
but I would be fine if all the other stuff sort of fell away
and companies put all of that time and energy and resource
into their core business.
SARAH MURRAY: Right.
Now the challenge there though is
that there are sort of perceptions
of this costing money.
And what is the payback for resettling an Indonesian
villager?
Just talk a little bit about working
within a big corporation on these issues that
are material to the business or at least,
that you've explained very well in the book,
are so material to the business.
You know, you may be surrounded by the skeptics who
go, well, you know, why are we going
to pay all this money for something that's
on the other side of the world?
And what are the challenges of being a corporate idealist
even within a company like BP which at the time
was really as you say, trying to do the right thing?
CHRISTINE BADER: Yeah, at the time it was on the projects
that I worked on.
But still, everybody, you need to justify your cost
and how much you're spending.
So I suppose in Indonesia I had the mixed blessing of there
being some really horrible examples nearby of how
much this can actually cost a company when it goes really
badly.
So on the other end of Indonesia in Aceh
there was a similar facility, a liquefied natural gas plant,
that had to shut down for four months because of basically
a civil war going on around it that some people accused
that company of exacerbating.
And I did some research for the book--
I couldn't find an exact figure--
but I found a bunch of estimates that
said that that shutdown, that four month shutdown,
cost Exxon Mobil anywhere from $100 to $350 million, right?
I mean, even for Exxon, like, that's kind of a lot of money.
In the same province as the project that I worked on
is the Freeport McMoRan Grasberg copper and gold mine.
That's one of the largest mines in the world.
And they spent something like $42 million
on security in one year.
And that keeps going up because when they came in,
they struck a deal with the national government.
They didn't pay much attention to local community issues.
And now they've realized that didn't work.
But it's really hard to turn these things around
once they've gone wrong.
So I think in oil, gas, and mining, it's pretty clear now
that you can't operate these projects well
if you don't invest in these issues up front.
And other industries are starting to see that too.
I mean in apparel, companies have
realized that if you treat your workers better
they're going to be more productive,
there'll be less turnover.
So we're seeing that.
And then in the tax sector too, I think the challenges
to privacy and free expression demonstrate
that you need the trust of users.
Right?
That's what your whole business is built on.
SARAH MURRAY: It's the license to operate.
CHRISTINE BADER: It's the license to operate.
That's exactly what it is.
SARAH MURRAY: Yeah.
CHRISTINE BADER: Yeah.
And so, you're right.
That's still sometimes, it's hard to demonstrate
a very specific return on investment.
So I think it's fine to have a rigorous debate about that.
Well, do we need to spend this much or can we spend this much?
I'm not crazy about going too far down that road.
Because for example if I say, OK.
Well, I want to spend $11 million
next year to make sure that our security arrangements are
in line with international human rights principles
so that we won't be complicit in genocide, say.
I don't really want to have this conversation of saying, well,
I don't know if we have $11 million.
If we spend, like, $4 or $5 million,
is there going to be a 60% chance
that we're complicit in genocide?
And it's like, OK.
You know what?
This is not-- like, seriously?
I mean, you do have to have a little bit of that.
But I think it's OK to call it out when it's ridiculous.
SARAH MURRAY: Right.
Sure.
Yes, yes.
But I guess, and again.
Something you mentioned in the book
which I thought was very intriguing
is the whole idea that in this work
that you're doing, even if you're not
having to sort of measure dollar for dollar
and what the return is, you're essentially doing work
to make something not happen.
CHRISTINE BADER: Yes.
And nobody gets rewarded for that.
SARAH MURRAY: Yeah.
Yeah.
CHRISTINE BADER: Right?
So one of the people who I interviewed
manages supply chains for a really big company.
And she said that one of their internal awards,
which are really prestigious in a big company,
went to one of her colleagues who managed a big safety
disaster.
And she was like, I prevented, like, 20 of those, right?
But again, nobody gets rewarded for something
that doesn't happen.
And one of the people who I interviewed,
Isabella [? O'Covey ?], who runs the Business and Human Rights
program at Yahoo.
And she was brought in after Yahoo was compelled
to turn over user information about the Chinese government
for Shi Tao, a journalist who was in jail.
And she was brought in after that.
But now it's been a while.
There's been a lot of turnover at the company.
And she said that part of the challenges of doing this work
well is that if nothing goes wrong,
then you get people sort of looking around and going,
well, wait.
What are you doing here?
SARAH MURRAY: Yes.
Yes.
CHRISTINE BADER: Why are you here
with all this budget, right?
And she's like, I'm the one preventing the bad things
from happening.
But you don't always know that.
SARAH MURRAY: No, that's right.
And those stories don't come out.
I mean, one of the things that I think also-- this
is sort of a topic quite close to my heart--
is the extent to which companies are or should
be more open and honest about both
their failings and their successes.
I mean, people are always pitching me stories saying,
oh come on.
We've just cut our carbon footprint by x million tons.
And they don't want to tell me that the problem they
had doing it I think because, you know,
there is very much this sort of corporate message
that has to controlled.
But do you think that given what's going on--
and I think this works both ways.
Because a., I think results in people
not seeing the real story and so they just
see when the bad thing happens, they think,
oh well, there's that rotten corporate sector again.
But by contrast, I was speaking to somebody the other day
and I was talking about what I write about.
And she said, oh, well I try and do the right thing
with business.
And she said, I never buy anything from Nike.
And I said well actually, the company's changed.
It actually is now seen as a gold standard
in managing labor rights and things like that.
So just how do you see the evolution of companies
when it comes to sort of telling their own story
about this stuff?
CHRISTINE BADER: Yeah.
You've totally hit the nail on the head
because one of the challenges of many of the people
that I interviewed is I assumed that it would
be with their legal departments, because I had
some challenges in BP of commissioning
these human rights impact assessments
that I then assumed that we would publish.
And our legal department was like, oh no.
Can't talk about that.
Can't talk about that.
But actually a lot of people said
that the challenges were in their communications
departments because they only want to tell good stories.
And that's a real challenge, because being
open about your challenges is what first of all
creates a more informed public conversation, right?
I mean, I think that Google and a lot of your other
peer companies issuing transparency reports, right?
Like, issuing the challenges and the requests
that you're getting from governments for censorship
and for user data is really important, right?
It helps convey to people like, OK.
Oh, here's the scale of the problem.
And maybe we should be turning our attention to governments
as well.
So I think it's really important.
And I think, again, some companies
are starting to come around to that.
But it's still slow.
SARAH MURRAY: It's a challenge.
And of course, the danger is as well
that you stick your head above the parapet
and then you get attacked.
So I remember writing a piece years
ago about Gap's corporate responsibility report, which
was a sort of warts and all thing
where they listed all their suppliers
and they highlighted where they had incidents of child labor
in their supply chain.
And while most NGOs and a lot of the press and the piece
I wrote for the FT was a sort of fairly balanced piece about why
they were producing this report, one,
I remember coming home and watching a local news channel,
and it just said huge abuses uncovered at Gap factories.
And so the danger, I guess, is that they
misinterpret that story.
CHRISTINE BADER: Well, that's right.
But then you know what happened years later
when that story came out about The Gap
finding illegal subcontracting and there
were some kids that were making Gap Kids clothes.
But that story, I mean, people stood up.
People like Mary Robinson, the former president
of Ireland, a former a U.N. High Commissioner for Human Rights
and other NGOs standing up, defending The Gap and saying,
hey.
The Gap has been working on these issues
longer and harder than any other company.
And frankly, if any company says that they've
eradicated the problem of sub subcontracting, they're lying.
So the story kind of went away.
So again, I think that's part of taking the long term view.
SARAH MURRAY: Right.
Right.
Honesty and openness builds your credibility,
even if a few stragglers don't get it.
CHRISTINE BADER: Exactly.
SARAH MURRAY: Yeah.
Yeah.
And another thing that comes very strongly through the book
is the impact you're making as a corporate idealist
in these companies.
I mean, I don't know how you felt when you left your own BA
and headed out hoping to change the corporate world entirely.
But often there are battles one has to pick
and there are compromises to be made.
What do you see as sort of the balance for you and others
in this world of trying to achieve
incremental change versus complete transformation and
are they both laudable objectives?
CHRISTINE BADER: Yeah, I think they're both important.
And frankly that's the whole arc of the book
and what compelled me to write it in the first place
is that I did come charging out of business school thinking,
I'm going to change the world.
This is going to be awesome.
And then my first few years with BP I really felt like that.
I was doing amazingly innovative and progressive and helpful
work around these projects with the full backing
of senior management.
And I thought, this was amazing.
And then working with colleagues around the world in BP
who felt the same way, who were doing the same work.
And then it was after the Deepwater Horizon disaster.
I had left BP at that point.
But that to me was the real sort of crisis
of confidence of that BP that emerged
in the aftermath of that disaster,
of this sort of reckless, callous, risk taking company.
It didn't at all resemble the BP that I
thought I'd gotten to know so well over the nine years
that I'd been there.
So my first reaction was, well, hang on.
That's not my BP.
And then my second reaction was, or was it?
So I started talking to friends who've
been doing similar work deep inside big companies
for a long time, like friends who work in apparel companies
after the Rana Plaza factory collapse in Bangladesh who
similarly thought, I've been doing really good supply chain
work for 20 years and we just killed 1100 people.
So what does it really mean to do this work?
So it started off as this personal journey
of trying to understand, trying to reconcile those two BPs,
and trying to understand the work that I had done there.
And realizing that a lot of people
doing this work in big companies have these similar challenges.
And so what I came to, not to give away the punchline,
but what I came to was, yes.
If you're going to go work in a big massive company,
this work is really incremental.
And it's not going to change overnight.
But that doesn't undo good work, right?
Again, as long as it's not, like, a carbon
offset for-- right?
As long as it's not like, oh, I'm
doing really good philanthropy for the company
but it's harming people with its core business.
I really believe that the work that I was doing in Indonesia
and China was exactly the kind of work
that we want extractive companies doing, that we want
them doing around these big projects that
supply the world's energy.
So there are moments for transformative change, right?
When you can really move your company.
There are these moments, right?
And you can really move your industry.
Like, for example, Google's part of the Global Network
Initiative which is this really important initiative that it
was part of creating with Microsoft,
with Yahoo, with some socially responsible investors
and some human rights groups and some academics
to come up with a code of conduct
to better protect free expression and privacy.
And that's really important.
And I think that's transformative.
I mean, it's taken a while to implement.
But still, that kind of thing is transformative.
But the day to day work is much slower.
SARAH MURRAY: Right.
Right.
Right.
Now I mean, there are all these initiatives that you mention.
And in all kinds of industries there
are collaborations to address labor abuses in factories
from sort of human rights to environment collaborations.
Is this enough?
Where do we need to actually just turn to government to step
in and start-- you see, despite years of working on,
despite examples like Nike, despite companies that
have really worked on supply chain issues in the apparel
industry, we still have Rana Plaza.
At what point do we have to say, business can't do this alone
or can't be relied on.
Do we need government to just set stronger rules?
CHRISTINE BADER: We absolutely do.
And so, none of the things that I've talked about
relieve government of their responsibility.
I mean, if governments were fulfilling
their responsibilities, we wouldn't
be having this conversation.
I mean, we would.
Right?
There's no substitute for strong, smart, good, properly
enforced regulation.
But the problem I think is that when something bad happens
with a company, the conversation seems to be,
oh, there go those evil companies again.
We need stronger regulation.
And it's like, well, we've got a lot of regulation.
Like, how's that working out for us, right?
And so to me it's sort of like, if you're watching a basketball
game and the basketball players start throwing punches.
And everybody's like, where are the refs?
Where are the refs?
Well, hang on.
Why are you letting the players off the hook?
Right?
We can't just look at the refs.
We need the refs.
The refs have to be there.
So there is no substitute for strong, good regulation.
But regulation takes a long time to pass, right?
And the companies know better than anyone
else what's going on inside.
So that's the focus here.
But I do talk a bit about the role of government,
and in no way should governments be let off the hook, nor should
the rest of us.
Nor should consumers or investors.
SARAH MURRAY: Well, and in some ways
it's companies' responsibility to engage with governments
to develop the right kind of regulations that doesn't hinder
business but does the right thing as well.
CHRISTINE BADER: Yeah.
SARAH MURRAY: I just wanted to talk a little bit about life
as a corporate idealist and how you get things done.
Because you didn't go in to be a CSR.
You didn't join BP as a CSR person or a sustainability
person.
And we have lots of those people with lots of those titles.
But is it the case that actually everybody
can be a corporate idealist?
And how do you do that from within a position where,
I don't know, you're in operations management
or HR or communications?
What would you advise to people who
would like to get involved in this
but are not working in the CSR department?
CHRISTINE BADER: Yeah, well sometimes
I think people can be in a position of greater power
just by doing the functions that they're doing and doing them
well and thinking about the big picture.
I mean, in China I was on a construction team, right?
Because our biggest risk there, I
was sent out there to work on a BP--
SARAH MURRAY: Didn't know that you
learned building when you were doing an MBA.
CHRISTINE BADER: Exactly.
Who knew that construction was my minor.
But no.
But I went out there because BP had a joint venture
with Sinopec, one of China's state energy companies,
to build a really big chemicals plant that
was going to bring in tens of thousands of migrant workers
into a town of about 30,000 people.
So, you know.
Could be some impacts there.
So my first week there I was in this meeting.
And it was like half BP guys and half Sinopec guys.
And we were going down the spreadsheet
of the latest estimates for the cost
and the timeline for the project.
And there was one label in the spreadsheet where
the number was eight but the label
hadn't been translated into English.
And so my BP colleague said, what's the number eight?
What's the label?
And Sinopec guy said, oh.
That's the projected number of fatalities.
He said, excuse me?
And he said, yeah.
Based on a project this big with this many man hours,
we would expect eight fatalities.
And my colleague said, the target is not eight.
He said, the target is zero.
And the Sinopec guy said, that's not realistic.
And he said, if you set expectations
that you're going to kill eight people,
you're probably going to kill at least eight people.
And they guy said, well, it's not realistic.
And I realized that he was right.
Based on their track record, it was probably realistic
that they were going to kill eight people.
So that's the kind of conversation
that I had to have there.
This was on the construction team, right?
So we managed not to kill anybody during construction.
Hurray!
But to make the case there for example,
it took me a while to figure out the right language to use.
So I went in there saying OK.
We're going to protect the human rights of the workers
and of communities.
And you know, that didn't work so well.
I mean, it just fell flat.
I didn't get thrown out or anything.
But it just didn't work.
And then I tried, OK.
These are the standards that BP uses for our projects
around the world and that's what we're going to use here.
And it was like, get out of here.
That's incredibly arrogant, right?
So I had to shut up for a couple of weeks
and just listen to what resonated, right?
What are people motivated by?
What drives them?
And so finally I came back with, OK.
I understand that you want this to be a world class model
project.
And if that is the case, then these
are the standards, these international standards
on working conditions.
These are the standards that world class model projects use.
And they're like, OK.
Why didn't you say so?
SARAH MURRAY: It's so true, isn't it?
So many different parts of business
have their own language.
I remember talking to one-- no, I
think it was actually in the oil industry
and they were saying, take the word integrity.
If you say the word integrity when you're standing in the CSR
department, they probably think that you're
talking about being honest and open
and treating your workers right.
And if you say integrity to an engineer
he means is our oil pipe going to blow up?
CHRISTINE BADER: Right.
It's [INAUDIBLE], yeah.
SARAH MURRAY: You know, those language, those terms
are very powerful.
And I think one of the things that comes out
very strongly in your book is how
you, as corporate idealists, how do
you connect with the rest of the company?
But just to go back to something I
mentioned at the beginning of this conversation,
how do you create your community as a corporate idealist?
You mentioned I think going to-- I think it was just after you'd
had the twins-- you mentioned you were determined
to get to this BSR conference.
CHRISTINE BADER: I couldn't see straight, but yeah.
SARAH MURRAY: And I think I remember meeting you there.
You looked great by the way.
But this need to be with other people in your community.
How would you advise people to try building those communities
so that you don't feel such a isolated person in this role?
CHRISTINE BADER: I think now it's easier.
I mean, every company has interest groups
and every company's got a green team.
And I think it's easier.
And I think for outside of the company
there are CSR sustainability meetups everywhere.
So I think it's a lot easier.
But I guess one thing that came through
in a lot of these interviews-- and again, they
were people who I'd known professionally for a long time
but never talked to them about how
they found their jobs in the first place.
And one theme that certainly was true for me
is that I did a lot of thinking out loud about what
I was interested in regardless of the job that I was doing.
But what's our company's role in society?
And oh, what's going on over there?
I mean, you still have to be good at your job
and focus on it, right?
But for a lot of these people, again, they
fell into these roles when corporate social
responsibility, CSR, was not really a function.
So like me, they fell into it because they
were asking lots of questions and talking
to other people in their company about well,
here's where I'm interested, and what are we doing on this?
And what should we be doing?
And shouldn't we be doing this?
And I just saw a documentary last night
and just read an article about this,
and how do we react to that?
So that when something opened up people
thought, oh, that person would be really good at this.
Very rarely does a job posting pop up on the board
and it's like, oh.
I should apply.
And then you apply.
SARAH MURRAY: You end up doing things
from within your existing job and probably
doing nothing in your spare time until somebody
comes along and says, hey.
This is something we need in the company.
CHRISTINE BADER: So I'm a big proponent
of thinking out loud about the things
that you're interested in.
And I have found certainly for me
that that tends to create space for opportunities to arise.
SARAH MURRAY: What does that mean though
for somebody who is thinking they would like to do this
but they're graduating from business school?
And where do you start?
I mean, as you say, the job that says
CSR and sustainability could sort of mean anything.
CHRISTINE BADER: Yeah.
Yeah.
SARAH MURRAY: How do you go about that today?
CHRISTINE BADER: Yeah, well I suppose there are a few things.
I mean, within business school there's net impact,
which is the association.
And every business school has a net impact chapter now.
And they have their own job boards and things specifically
for these jobs.
But I suppose when I get all of these inquiries of people
saying, oh, I really want to get into this field,
I ask them, well, what do you actually want to do all day?
Do you want to be traipsing around villages?
Do you want to be sitting behind a desk creating policies?
So I guess like any job you break it down.
What are the skills that I want to be using all day?
What are the issues that I really care
about that I want to be working on?
Are there particular countries that I'm really excited by
or geographies that I have a specialty in?
And then like anything, and there's
a little bit of serendipity in finding the right position
with the right people at the right company
open at the right time.
But people talk about serendipity a lot,
and I think we give it too much weight, right?
SARAH MURRAY: You have to make your own opportunities
in some ways.
CHRISTINE BADER: You have to make it.
Yeah.
Because it drives me crazy.
I mean, you guys hear a lot of people speak here.
And I will bet you that whenever you hear illustrious
people talk about their careers, inevitably there was always
one moment when they say, and then
I just got this call one day.
Right?
There's some knowing nods.
I just got this call out of the blue one day.
And that's baloney, right?
So when they say that, ask them to trace the call.
Because people don't offer jobs to somebody
who they've never met before.
People offer jobs to people who, oh, I was just playing squash
with my friend and he mentioned that his friend's daughter
was looking for a job, right?
Or it's a conversation that you had with somebody
three years ago.
And something just opened up, right?
I mean, you can't control the timing of these things.
And that's where serendipity comes in.
But I actually think it does a great disservice when people
talk like that, when people say, I just got the call out
of the blue one day, because it makes you think that you're
just supposed to sit back and wait for the call.
SARAH MURRAY: Whereas in fact it's a lot of asking questions,
talking about the right things.
CHRISTINE BADER: Exactly.
And thinking out loud and building your network.
SARAH MURRAY: Absolutely.
Yeah.
Well, on that note actually is a good moment
to see if anybody has any questions here for Christine.
AUDIENCE: CSI's very much like [INAUDIBLE] the company
when it tries to fix the problem because we're a good company.
What can consumers do to push companies
to change their practices?
CHRISTINE BADER: Yeah.
That's a great question.
And I think consumers have to ask, right?
Users have to demand.
And so I think in this sector we saw
that here where users are saying, well, hang on.
Why was this information taken down?
Why am I getting different search results
in this country than in that?
I mean, I think users and consumers have to ask.
But frankly, I've gotten really depressed with how
little consumers demand.
And I site some of these studies in the book of how people
say that they will pay more for fair trade
or sustainable products, but there
are all these studies that show if you've
got two piles of socks sitting next to each other and one's
marked fair trade and one's marked not,
people will buy the fair trade one if they're the same price.
But as soon as you bump the price up
people don't buy them, right?
So there's a little bit of money where our mouth is.
But I appreciate that that's really hard.
But I think just asking the question.
So one of the times when I did one of those head
to toe inventories and I realized that there were
a couple of brands that I'm wearing that I didn't know
anything about, I tweeted and I just said, hey x brand.
What's your policy in the wake of Rana Plaza?
Two of them didn't respond.
And so I re-tweeted and I said, bummer.
You're not responding.
I'm not buying any more of your stuff.
One of them I posted something on their Facebook page
and they wrote this long, awesome response
of how well, we try to establish long term
relationships with our suppliers,
et cetera, et cetera.
And I hadn't verified it yet, but I
think it was a pretty awesome response.
And there were lots of other people who liked the comment.
So I think asking the questions again is really important.
We have to ask.
And it makes the job of the people inside the company
a lot easier to be able to say, look.
This isn't my imagination that this is important.
Well, there are a couple of interesting ways
that I talk about this in the book.
One of them, I interviewed a lot of advocates an activists.
And again, they're people who I've known for a long time
but I had never actually talked to them about their tactics
and how they think about their work.
So there were some human rights advocates
that said, actually, we see our job as creating space
inside the company for you to do your job better.
Which were so interesting.
And one other person inside a company
said, you know, I used to have to call up quietly one
of my NGO or socially responsible investor friends
to say, now would be a really good time
for you to write a letter to my CEO.
And you don't really have to do that anymore
because they're a hashtag, right?
You don't need to do that anymore.
But I think users and consumers absolutely have to ask.
SARAH MURRAY: And technology has made that so possible in a way
that it never was before.
I mean, you can immediately contact a company
and ask them a question.
CHRISTINE BADER: On Twitter, on Facebook, yeah.
SARAH MURRAY: I mean, years ago you had to write them a letter
and it probably ended up in some backwater.
CHRISTINE BADER: Right.
Because nobody else ever saw that you wrote the letter.
SARAH MURRAY: Right.
CHRISTINE BADER: Right?
SARAH MURRAY: Exactly.
So they didn't have to answer it.
CHRISTINE BADER: Exactly.
And now it's out there.
SARAH MURRAY: Yes.
It's all public.
So yeah.
Another question?
AUDIENCE: Thanks so much for being here first of all.
Appreciate it.
How do you deal with the-- my thought
process is it must be very disheartening at times
when you see something like BP oil spill happen.
And a couple of years on, zero conversation really happening
about it.
But with our ecosystems [INAUDIBLE]
disintegrated by all accounts I think during that time period.
So I guess for something like environmental issues or climate
change, something like that, it's kind of,
we're on a ticking clock.
Versus something like labor rights
which might take their time from a policy
level down to the grassroots.
How do you deal with something like the environment,
and do you get disheartened [INAUDIBLE]?
CHRISTINE BADER: Yeah, sure.
I mean again, that's a lot of what
compelled me to write the book.
Because it was after the Deepwater Horizon
disaster, it was like,
[SIGHS]
CHRISTINE BADER: What is it?
Like, what does it mean?
Are we making any difference at all,
or is this completely useless?
So again, not to give away the punchline,
but I don't think it's completely useless.
But I think that all of us as individuals
need to decide, what role do we want to play, right?
And so some of us need to be inside companies and fighting
that incremental, everyday, like trying just
to tweak some practices that take a long time.
And some of us need to be shouting from the rooftops
and being activists and protesting out on the street.
And obviously, those rules have their frustrations too.
But I do have faith that all of the people who
are doing this work do believe that they're
making a difference.
And one of the themes that really
came through loud and clear which was,
again, I didn't expect, it was the optimism
of people who are doing this work.
So one friend who's worked in supply chains
for a number of apparel companies, he went on a visit
to visit factories in India.
And then the guy who was showing him around said, let me just
take you to one factory that's not on your list.
It supplies the domestic market.
Just to show you what it's like.
And he walked in there.
He said, it was filthy.
There was a 10-year-old kid on one of the machines.
And it was horrible.
And I said, well, what did that feel like to see that?
And he said, well, he said, it opened up
this whole other question that I don't
know what to do with of what do we do with factories that
are supplying the domestic market that aren't
held to international standards?
And he said, but actually I left optimistic.
Because I thought if these were what the factories that do
supply us looked like 20 or 30 years ago,
we have made a big difference.
And it's that optimism that I saw over and over again.
One guy who works for a big mining company
and went to Papau New Guinea on his first day of work
and saw the extent of domestic violence there.
And was trying to think about, well,
what role could or should or does the company play?
Are we exacerbating it?
How could we make it better?
And I thought, and I said to him,
wasn't that incredibly overwhelming and disheartening
to see that this is what you're stepping into?
And he said, I thought this was an opportunity
to do really good human rights work,
that this is a place where we could actually
make a difference.
So yeah.
It's incredibly disheartening.
But what are you going to do about it?
Are you going to do nothing?
Like, we've all got to do something.
And it's just, what is ours to do?
SARAH MURRAY: And different people have different roles.
I mean, I think even within the NGO community,
it was interesting.
I was talking to somebody from Greenpeace the other day.
And he was saying, we pave the way for the NGOs
who are going to work with companies by giving them
the agenda to do that.
It makes it easier for us to show up at the door
when Greenpeace has been out there hammering away.
So I think there is this sort of ecosystem
of forces that will shift companies.
I think we have-- [INAUDIBLE].
Yes, that's right.
Another question there.
AUDIENCE: Thank you so much for being here.
So one thing that really struck me about your book
was this feeling of being isolated
as a corporate idealist in a massive company.
And I was wondering if you could speak
about creating a culture of accountability
in a huge company such as Google or BP.
The supply chain is just so massive.
So for the Gap example that you presented about the sub
subcontractor hiring these laborers as opposed
to corporate has that Gap saying let's hire.
How do you manage for accountability
in these huge supply chains and also,
if you could speak about your experience at BP or elsewhere,
just creating that culture of accountability among people?
CHRISTINE BADER: And by that, do you
mean a culture of taking responsibility for those issues
that previously somebody might have said that's not our--
AUDIENCE: Right. [INAUDIBLE] subcontractors
because it's no longer in our hands.
Yeah.
CHRISTINE BADER: Yeah.
That's a great question.
Let me think to my own experience.
Again, I guess so in China it was
about trying to make the case that we
are accountable for those issues whether we like it or not.
And I think that's been a big theme in this field
for a long time of companies.
Every company's sort of going through this journey.
And it's like the seven stages of grieving, right?
Or that first there's this denial, right?
And we saw this with Nike with sweatshops
and we saw it with Shell in Nigeria.
And we even saw it, I think, with censorship
when the first wave sort of hit this industry and these cases
coming to the fore of companies saying, not my responsibility.
That somebody else's responsibility.
And then I think realizing, it's like, you know what?
That's not good enough.
And whether or not legally this is your responsibility,
the court of public opinion believes
that it's your responsibility.
So I think a lot of companies started taking responsibility
because they realized, well, I guess it is now.
So I think there are a few factors that make that happen.
One of them is external pressure.
And so we saw this with Apple when the big "New York Times"
expose came out about working conditions
in Foxconn factories.
And at first Apple sort of demurred.
I mean, they've been working on supply chain responsibility
for a long time.
This wasn't new.
But we really saw them step up after there
was so much public pressure and join the Fair Labor
Association.
Which is a big deal for Apple in particular, right?
To have third party auditors come in
and inspect their supplier factories.
And actually for Google to join the Global Network Initiative,
that's a huge step because that requires third party auditors
to come in and look at your processes.
And you guys know better than anybody.
I mean, do you let anybody in here
to poke around and look at stuff?
Like, that's actually a big deal.
But I think that your company's leadership realized, because
of what enough of you were saying also inside the company.
And be like, hey, we need to step up our game here
if we're really going to live out our values
and take responsibility for what we're doing
and be the most trusted company for people.
This is what we need to do.
So again, I think in every company
there are going to be different drivers and pressures that
will create that culture.
But I think in all of those cases a lot of it
will come from within, of people saying, folks,
this is simply what we need to do.
But I think it's different in every company.
SARAH MURRAY: And I think there are
a lot of-- I mean, shareholders for a start,
are starting, in some cases, starting
to push the companies that they own into disclosure.
And then you have the power of a company like Walmart
that can say, well, look here suppliers.
You've all got to meet certain environmental standards as
if you're actually going to sell to us.
So I think there's a range of pressures.
But you're right.
I mean, the internal is a very important one as well.
I think we might have time for one more.
FEMALE SPEAKER: One more question.
[INAUDIBLE]
CHRISTINE BADER: If there is one.
SARAH MURRAY: If there is one.
FEMALE SPEAKER: OK.
Well, I just want to thank Christine and Sarah so
much for coming to speak with us today.
It was a great conversation and lots of issues
that Google's thinking about too in a very different context.
So interesting to hear all of those perspectives.
So thank you again.
I really appreciate it.
SARAH MURRAY: Thank you.
CHRISTINE BADER: Thank you, everybody.
[APPLAUSE]