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Actions speak louder than words

By Steve | February 08, 2008

Staples has cancelled its contracts with Asia Pulp & Paper, according to today’s Wall Street Journal. Worries that Singapore based APP is destroying rain forests in Sumatra led Staples to this move.

We understand that sophisticated companies prefer supplier engagement rather than divorce. We do too. It is hard to have leverage when you no longer wield the power of the dollar (although that, of course, is less powerful than it used to be.) To its credit, Staples tried engagement. But it didn’t work. Mark Buckley, Staples VP of environment, “decided engagement was not possible anymore.”

So they cut the cord. This is a big deal—APP, one of the world’s largest paper companies, supplied Staples with 9% of its paper supply. Yet Buckley believed that being a customer of APP was “great peril to our brand.”

Environmental and human rights activists often echo Martin Luther King in his letter from the Birmingham Jail. “For years now I have heard the word ‘Wait!’ It rings in the ears of every Negro with a piercing familiarity. This ‘Wait’ has almost always meant ‘Never.’”

To send a credible message to those scrutinizing corporate actions for responsibility, sometimes engagement must end in divorce. Staples is to be applauded for taking this step. We also trust that they have held out hope for reconciliation, should Asia Pulp & Paper embrace its environmental responsibilities. Then the ‘Wait’ combined with action will have been well worth it.

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This blog contains personal reflections and commentary on corporate responsibility by the consultants of Ethical Leadership Group. It is intended to communicate short, timely items of interest to our clients and colleagues. We look forward to your comments. Please visit our Ethics and Compliance Blog for more general ethics and compliance issues.

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Climate Change: Tilting at Windmills - the rush on renewables
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Hewlett-Packard and ‘pretexting’ - A rose by any other name
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Invite Your Lawyers to the Corporate Responsibility Dance
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The Anti-CSR Lobby: House of Straw
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Making the Business Case for the Business Case
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Ethical Reporting and the Law
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Ethical Sourcing – Good News for Industry-wide Initiatives
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When Mars meets Venus
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Reputation Roulette
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