Investing in Our CommunitiesPartnershipsCommunitySustainabilityCompetitivenessKnowledge Economy
A Business Civic Leadership Center ReportPublished December 2008
AN AFFILIATE OF THEU.S. CHAMBER OF COMMERCE
Business Civic Leadership
• TheMainStreetInvestmentAgenda:HowCompaniesAre HelpingU.S.CommunitiesAdapttoToday’sChallenges,by StephenJordan
Community by Community
Atlanta, Georgia
• CorporateEntitiesandSustainableEfforts,ByRhondaMims, INGFoundation •VolunteerismandAtlanta-areaBusinesses, ByShawnReifsteck,PointsofLightInstitute
Chapel Hill, North Carolina
•NewRealities,NewOpportunities,ByAaronNelson, ChapelHill-CarborroChamberofCommerce
•BuildingCross-sectorInitiativesforaSustainableCommunity, ByAnneMcKune,FoundationforaSustainableCommunity
• SPECIALFEATURE:CommunityInformationSharingbythe InternationalEconomicDevelopmentCouncil
Newark, New Jersey
• InvestinginthePresent—andFuture—ofNewark, ByDariaPlacitella,PNCFinancialServicesGroup
• SPECIALFEATURE:CommunityInformationSharingbythe InternationalEconomicDevelopmentCouncil
• TeachingLifeSkillstoWestSideHighStudents,ByCarolyn Berkowitz,CapitalOne
T A B L E O F C O N T E N T S
Investing in Our Communities
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Overview of Corporate Community Investment
• TheMainStreetInvestmentAgenda:HowCompaniesAre HelpingU.S.CommunitiesAdapttoToday’sChallenges,by StephenJordan
Community by Community
Atlanta, Georgia
• CorporateEntitiesandSustainableEfforts,ByRhondaMims, INGFoundation • VolunteerismandAtlanta-areaBusinesses, ByMichelleNunn,PointsofLightInstitute
Chapel Hill, North Carolina
•NewRealities,NewOpportunities,ByAaronNelson, ChapelHill-CarborroChamberofCommerce
• BuildingCross-sectorInitiativesforaSustainableCommunity, ByAnneMcKune,FoundationforaSustainableCommunity
• SPECIALFEATURE:CommunityInformationSharingbythe InternationalEconomicDevelopmentCouncil
Newark, New Jersey
• InvestinginthePresent—andFuture—ofNewark, ByDariaPlacitella,PNCFinancialServicesGroup
• SPECIALFEATURE:CommunityInformationSharingbythe InternationalEconomicDevelopmentCouncil
• TeachingLifeSkillstoWestSideHighStudents,ByCarolyn Berkowitz,CapitalOne
Palm Beach County, Florida
• CorporateCommunityInvestmentPaysValuable Dividends,ByMaryWong,OfficeDepotFoundation
• City,Business,andSchools:UniqueOpportunitiesfor Partnership,ByMarjorieFerrer,DelrayBeach DowntownMarketingCooperative
•UncoveringUnlimitedPossibilities,ByKellySmallridge, PalmBeachCountyDevelopmentBoard
Silicon Valley, California
• EntrepreneurialSolutionsforSiliconValley’sChallenges, ByDiptiPratt,EntrepreneursFoundation
•PartnershipstoImproveInfrastructure,ByCarlGuardino, SiliconValleyLeadershipGroup
The Final Word
• BacktoBasics:TheFinancialCrisisRequiresaParadigmShift, ByJoelKotkin,ChapmanUniversity
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2 • A Business Civic Leadership Center Report
The Main Street Investment Agenda: How Companies Are Helping U.S. Communities Adapt to Today’s Challenges
By Stephen Jordan
Thechallengeandopportunityofourtimeis:Howdowehelpourcommu-nitiesandcompaniesadapttotheforcesshapingourera?And,howdowehelppeoplerealizethatcompaniesareagentsofpositivechange?
Communitiestodayareadaptingtoanumberoftrends.Thesetrendsinclude:
• Populationshifts • Anincreasingdisconnectbetweenpoliticaland social/economicboundaries • Higherdemandforeducationandworkforce-development services • Moreunhappinessoverthehome-transportation-officeequation • Risingconcernsabouttheenvironment,qualityoflife, andsustainability • Anincreasingnumberofcommunityactivistgroupsand nonprofitorganizations
Asacountry,wearenotjustdealingwithonetransformativetrend;wearedealingwithanumberofthem.Theyareallhappeningatthesametime,creatinglayeruponlayerofissuestoconfront.
December 2008 • 3
Population Shifts
TheUnitedStatesisbecomingmorediverse,older,andmoredecentralized.Fortymillionciti-zenstracetheiroriginstoHispanicroots.SchooldistrictsinsuchdistinctgeographiesasFairfaxCounty,Virginia;LosAngeles,California;andMi-ami,Floridahavetotakeintoaccountnumerousethnicities,languages,andcultures.
Lifeexpectancycontinuestoincrease,asthelargestgenerationinhistory—70millionBabyBoomersstrong—getsreadytoretire.PlaceslikeAtlanta,Houston,LasVegas,andPhoenixcontinuetospreadout.Theyarenolongerthesameplacesthattheyweredesignedtobeagenerationortwoago,notnecessarilybecausetheirinhabitantshavemovedout,butbecausesomanynewpeoplehavemovedin.
CompaniesasdisparateasAT&T,CVSCaremark,Erickson,HealthCareServiceCorporation,IBC,andIBMaredealingwithdifferentaspectsofthesephenomenainnewanddifferentways,offeringnewproductsthroughnewvehiclesofcommunication,empoweringemployeesandhelpingthemtobuildparallelcareersincommu-nityservice,andworkingwithcommunitylead-erstoanalyzeneighborhoodneeds,communityintegration,andinter-generationalrelationshipbuilding.
An Increasing Disconnect between Political and Social/Economic Boundaries
Atthesametimethatmanyurbancentersaregettingmorecompact,theirmetroareasareexpanding.Detroit,with800,000people,ishalfaslargeasitwas50yearsago.
Buffalo,Cleveland,Flint,andPittsburghhavealllostsignificantpercentagesoftheirpopulation.
Washington,D.C.,haslost50percentofitspop-ulationinthelast50years,butgreaterWashing-tonnownumbersmorethan4millionpeople.
Atlantadoesnotmakethelistofthe25-largestcities,butgreaterAtlantacountsmorethan5millionpeople.ThesamegoesforMiami.Meanwhile,wehaveghosttownsinmanypartsofruralAmerica,andchamberofcommerceleadersinsmalltownsfromMinnesotatoOkla-homatellustheyhaveahardtimekeepingtheiryoungpeople.
Companiesarepartandparcelofthischang-inglandscape.EmployersinNorthernVirginiaworryaboutcommutingtimesfromsuburbanMarylandandartsandculturalsitesinD.C.TheAlleghenyCouncilinterfaceswithnumeroustownshipsacrossthePittsburghmetroarea.TheeconomicandsocialgeographyofCharlottehasasmuchtodowithSouthCarolinaasitdoeswithNorthCarolina.
4 • A Business Civic Leadership Center Report
Theresultisthatcompaniesarefindingthem-selvesintheroleofbridgingdifferentpoliticaljuris-dictionstoworkoncommonregionalchallenges.
Higher Demand for Education and Workforce-Development Services
Officialsfromcompaniesofallsizeslamentthelackofavailabilityofaknowledgeableandskilledworkforce.
Infact,theunfilled-jobsrateisexpectedtobehigherthantheunemploymentrateinthenext10years.TheU.S.Chamber’sInstituteforaCom-petitiveWorkforcehaspublishedareportcalledLeadersandLaggards,whichcallsattentiontothedifferentialsineducationthatmanygeogra-phieshavetoface.
Companies,likeAllstateInsuranceCompany,GlaxoSmithKline,KPMG,andPNCFinancialServicesCompany,arerespondingbyinvestingmillionsofdollarsincradle-to-graveeducationopportunities,fromearly-childhoodeduca-tionthroughK–12,college,andevengraduateschool.
TheresultisthatplaceslikeAustin,Boston,Boulder,Raleigh-Durham,andtheSanFranciscoBayAreaaretoday’shotbedsofinnovation,entrepreneurship,design,strategy,andengineering.Theirchiefbusinessasset?Theiruniversities.Communitycolleges,continuingeducationprograms,TeachforAmerica,SCORE,andothertraining,mentoring,andskills-developinginstitutionsarealsoreceivingincreasingcorporatesupport,becauseitiswidelyknownthateffectiveeducationisoneofthemostpowerfulpoverty-reduction/community-buildingsystemswehaveavailable.
More Unhappiness over the Home-Transportation-Office EquationFromSeattleandMinneapolistoL.A.andWash-ington,D.C.,companiesingeographiesacrossthenationarere-examiningthewaycommuni-tiesarebuilt.Studiesaboutemployeequalityoflifeandlosttimeduetotrafficcongestionareraisingawarenessaboutthestressescausedbytherelationshipbetweensiteselection,adequatetransportationinfrastructure,andaffordablehousing.
Companiesarerespondinginavarietyofways.ManyareexploringICT(informationandcommunicationstechnology)solutionsliketelecommutingandteleconferencing.Othersareinvestinginincentivestousepublictransportationorcarpooling.Stillothersaremoreactivelyengaginginlocalcommunitydesignandplanningprocesses.
Rising Concerns about the Environment, Quality of Life and Sustainability
Oneofthebiggesttrendsthatemergedoverthispastyearwasanincreasingfocusontheenvironment,qualityoflife,andsustainabilityfactors.
Sustainabilityisbecominganissuethatwillhaveaprofoundre-orderingeffectoncommu-nityplanning,infrastructuredevelopment,sup-plychainmanagement,andtravelandtourism,tonamejustafewofthedisciplinesthatwillbeaffectedbyincreasedconcernoverclimatechange.
December 2008 • 5
6 • A Business Civic Leadership Center Report
Companiesandcommunitiesaresortingthroughchallengeslike:Whoisresponsibleforwhat?Howdowecope?Howdoweadapttorealizethefullpotentialofsustainabledevel-opment?ItisasthoughsomeonecirculatedamemototheentireFortune1000businesscom-munity,becausealmosteverysinglecompanythatweworkedwithin2008announcedsomekindofsustainabilityinitiative.
Ofcourse,manypioneershadinvestedinsomeformof“green”programlongbefore:Weyer-haeuser’scorporateheadquartersisamonu-menttogreendesign.UPShasbeentrackingitscarbonfootprintandothersustainabilityfactorsforyears.AttheGreenCommunityexpo,spon-soredinpartbytheHomeDepotFoundation,attheNationalBuildingMuseum,itwasfascinat-ingtoseehowcompanieswerecontributingtogreencommunitiesasdiverseasGreensburg,Kansas,andMendoza,Argentina.
An Increasing Number of Community Activist Groups and Nonprofit Organizations
Anothersignificanttrendthisyearwasagrow-ingawarenessoftheimportanceandinfluenceofnonprofitandcommunitygroups.
CompaniessuchasAccenture,BoozAllenHamil-ton,andtheOfficeDepotFoundationsponsoredevents,producedreports,andhostedforumstohelpbuildnonprofitorganizations’capacitytofulfilltheirmissionsandtobringcommunitygroupstogether.
AsDianeAviv,presidentofIndependentSec-tor,noted,thenumberofnonprofitgroupsintheUnitedStateshasexploded(therearemorethan1.4millionatthetimeofthiswriting),whilecharitablecontributionstothosegroupshavegrownatamuchmoremodestrate.Thisdichotomybetweenneedandresourceshascausedmanypeople,notjustcorporatelead-ers,toscrutinizethenonprofitsectortoidentifywaystoimprovetheefficiencyandprofessionaldeliveryofneededservices.
Thoughlargelyignoredinthenationalmedia,partnershipsbetweenbusinesses,nonprofits,andpublicentitiesareatthefrontlinesofad-dressingcommunitychallenges.And,whiletheymightnotgetmuchcredit,businessesarealsosomeofthemostsignificantcontributorstolo-calcommunitydevelopment.
Outlook
Intheevolutionofadaptingtotoday’schal-lenges,Ibelievethatwewillseeseveralnewdevelopments.
First,Ithinkthatknowledge-economyinterestsandcommunityinterestsareconverging.Indi-vidualshaveneverbeensoempoweredormoremobile.Paradoxically,thismeansthat“place”mattersevenmore.OneoftheSASInstitute’srecruitingtoolsisthequalityoflifeinCary,NC.SanFrancisco,Seattle,andotherpartsoftheBayAreaalsohavebenefitedfromthisphenom-enon.
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8 • A Business Civic Leadership Center Report
“Edu-capitalism”mayhavebeenpioneeredbyMITandStanfordgrads,butAustin,BatonRouge,andCharlottesvilleareharbingersofwhatmaylieinstoreforotheruniversitytowns,andweareonlyintheearlystagesofcommu-nity“armsraces”inquality-of-lifecompetitionsforhighlyskilled,highlyeducatedworkers.
Second,theCommunityReinvestmentAct(CRA)andotherhousingandurbandevelopmentpoliciesneedtobeoverhauledandupdated.CompaniesareadvancingthespiritofCRAbyinvestingintherevitalizationofpoorneighbor-hoodsandincreasingtheopportunitiesavailabletothepeoplelivinginthem,buttheliteralistsoftenreward“bricksandsticks”investmentattheexpenseofthis“soft”investmentineduca-tionandsustainability.
Third,manycorporatecitizenshipandCSRprogramsaretrendingtowardbecominglong-termbusiness-developmentofficesfortheircompanies.CSRofficersarestudyingexternalcommunityfactorswithmoreofabusinesslens.Crime,longcommutes,poorenvironmentalconditions,fewcommunityamenities,andpooreducationorhealthcareservicesallaffectbusi-nesses’competitiveconditions.Companylead-ersarebeginningtorealizetoafullerextentthattheirbusinessesdonotoperateinavacuum,andthatexternalaffairsrequireprofessionalmanagement,notphilanthropy.
Fourth,companiesaredemandingincreasedvisibilityaboutcommunitytrendsandfuturecommunity-developmentobjectives.Compa-niesdonothavethebigbucksthatgovernmentagencieshavetoaddresssocialfactors,sotheyareincreasinglyfocusingonwheretheycanaddcomplementaryvalue.Todothiswell,community-developmentpatternsneedtobemoretransparent.Companyofficialsrepeatedlytellustheyneedtobepartofthedevelopmentprocess,notjustpresentedwithfaitsaccomplis,likeanewchildren’shospitalormuseumwing,andthenaskedtopayforthem.
Todothiswell,community-developmentpat-ternsneedtobemoretransparent.Companyofficialsrepeatedlytellustheyneedtobepartofthedevelopmentprocess,notjustpresentedwithfaitsaccomplis,likeanewchildren’shos-pitalormuseumwing,andthenaskedtopayforthem.
Finally,thecollapseoftheenergy,housing,andfinancialbubblescannotbeignored.Manycompaniesandcommunitiesaregoingtofaceresourceconstraintspreciselywhensocialconditionsmayrequireadditionalinvestment.Intheshortterm,thiswillexacerbatethepressuretomakecommunity-investmentpracticesmoreefficient,butitwillalsomakethesharingofef-fectivecommunitypracticesmorevital. Weareatthedawnofanewnationalproject:therestructuringoftheUnitedStatesand,byextension,therestoftheworld,toaddresspowerfulnewtrendsaffectingcommunityandeconomicdevelopment. Itisonlyprudentthatwehaveanationalconver-sationtoanalyzewhatishappeningandhowtoputourselvesinthebestpositiontomaximizethebenefitsfromtheseforcesandminimizetheircosts. Asthispublicationwillshow,manycompaniesandcommunitiesarealreadytakingstepstoaddresstheseissues.Ourhopeistoencour-ageanddisseminatethemosteffectiveofthesepractices.
Finally,thecollapseoftheenergy,housing,andfinancialbubblescannotbeignored.Manycompaniesandcommunitiesaregoingtofaceresourceconstraintspreciselywhensocialcon-ditionsmayrequireadditionalinvestment.Intheshortterm,thiswillexacerbatethepres-suretomakecommunity-investmentpracticesmoreefficient,butitwillalsomakethesharingofeffectivecommunitypracticesmorevital.
Weareatthedawnofanewnationalproject:therestructuringoftheUnitedStatesand,byextension,therestoftheworld,toaddresspowerfulnewtrendsaffectingcommunityandeconomicdevelopment.
Itisonlyprudentthatwehaveanationalconver-sationtoanalyzewhatishappeningandhowtoputourselvesinthebestpositiontomaximizethebenefitsfromtheseforcesandminimizetheircosts.
Asthispublicationwillshow,manycompaniesandcommunitiesarealreadytakingstepstoaddresstheseissues.Ourhopeistoencour-ageanddisseminatethemosteffectiveofthesepractices.
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Atlanta, GeorgiaAtlanta is home of the world’s busiest airport and the fifth largest concentration of Fortune 500 companies in the nation.
-Metro Atlanta Chamber of Commerce
Total Pop.486,411(2006est.)
Pop. Increase16.8%(2000–2006)
People with Bachelor’sDegree or Higher34.6%(2000)
People with High School Diploma76.9%(2000)
Median Household Income$34,770(1999)
Persons below Poverty24.4%(1999)
Total Number of Firms43,576(2002)
Avg. Commute to Work28.3minutes(2000)
The data represent only the city of Atlanta and not the whole of the metro area.
(Source: U.S. Census Bureau State & County QuickFacts)
OnJuly30,2008,agroupofBCLCstaffmembersgatheredwithofficialsfromtheAtlantaregion’sbusiness,civic,andgovernmentsectorsattheINGheadquarterstodiscusscorporateinvestmentinthecommunity.Thegoalwastouncoverspecificchallengeswithinthecommunityandexploretherolethebusinesssectorcanplayinaddressingthem.Amongtheissuesmentionedweresustainability,sprawl,at-riskyouth,education,conservation,andinfrastructure.Somearediscussedfurtherhere.
12 • A Business Civic Leadership Center Report
Corporate Entities and Sustainable Efforts
By Rhonda Mims
Atlanta, Georgia
Whatroledocorporationsplayinshapingourcommunities?Toanswerthisquestion,ING,inpartnershipwiththeBusinessCivicLeadershipCenter(BCLC),hostedacorporatecommunityinvestment(CCI)foruminAtlantaduringthesummerof2008.
Corporate-responsibilityleadersfromcompaniesinmetroAtlanta,suchasGeorgiaPacificandCocaCola,aswellasofficialsfromareachambersofcommerceandtheEconomicDevelopmentAdministration,gatheredtodiscusshowcivicandbusinessleaderscouldjoineffortstoaddressenvironmental-sustainabilityactivitiesinthecommunity.
What We Learned
ING,alongwithothercorporateandcommunityleadersinAtlanta,isuniquelysituatedtohelpmovebeyondadiscussionandtowardaction.Alloftheparticipantsintheforumagreedthatsustainabilityisaleadingconcernthatrequiresourimmediateattention.
Theforumwasthefirststepincapturingideastomoveforward.Weagreedtocontinueoverthenextyeartolookatnewapproachestosustainablecommunitydevelopment.WiththesupportofBCLCandtheU.S.ChamberofCommerce,INGwillplayaleadingroleindevelopingapublic-privatepartnershipinmetroAtlantathatcanbeamodelforothercommunities.
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How ING Mitigates Its Environmental Impact
INGhastakenstepstodecreaseourcarbonfootprint.In2007,webeganpurchasingmorethan75millionkilowatt-hours(kWh)ofgreenpowerannually—enoughgreenpowertomeet100percentofourcompany’spurchasedelectricityusedforourU.S.operations.
Thispurchaseofrenewableenergyalsoisequivalenttoavoidingthecarbonemissionsofnearly10,000passengervehiclesperyear,andcorrespondstotheamountofelectricityneededtopowermorethan7,000averageAmericanhomesannually.
Whilepurchasinggreenpowerhelpsourcom-panybecomemoresustainable,wehopewearesendingamessagetoothercompaniesacrosstheUnitedStatesthatsupportingcleansourcesofelectricityisasoundbusinessdecisionandanimportantchoiceinreducingclimaterisk.
Butthat’sjustonecomponentofourenvironmentalstrategy.
Wealsoarefocusingonwaystoreduceourenvironmentalimpactthroughwastereductionandenergy-efficiencyinitiatives,theadditionofnewrecycled-paperoptionsforalloffices,morerobustrecyclingprograms,andeco-friendlyprocurementpractices.Agrassroots,employee-ledteamcalledOrangeGoesGreenisalsohelpingtobuildawarenessamongouremployeesabouthowtheycanlive“greener”atworkandhome,includingsupportingenvironmentalvolunteeropportunities.
Everyone Can Promote a Healthy Environment
Theroleofcorporateentitiestoaddressenviron-mentalsustainabilityisanimportantone.Morethanever,customers,investors,businesspart-ners,andemployeesareevaluatingcompaniesontheirsustainabilitypractices.
Wehavelearnedthatmunicipalauthoritiesandcivicentitiesareenergizedandreadytolendalisteningearandtakeactionwhencorporateinvolvementispresent.
Itisimperativeforrepresentativesintheorga-nizationsthatarechampioningsustainabilityeffortstoleveragetheopportunitytopartnerandempowerourcommunitiestobemoreenviron-mentallyconscious.
Rhonda Mims is president of the ING Founda-tion and senior vice president of ING’s Office of Corporate Citizenship and Responsibility.
14 • A Business Civic Leadership Center Report
Volunteerism and Atlanta-area Businesses
By Shawn Reifsteck
Atlanta, Georgia
Millionsofpeopleinourcountrygivetheirtime,talent,andenergytohelpothers.Businesseshaveplayedanintegralroleincontributingtosocialcausesforthepasttwocenturies,andemployeevolunteersofferunparal-leledresourcesthatenablethemtogiveback.
Formorethanadecadenow,corporatecitizenship,includingworkplacevolunteering,hascontinuedtogainprominence.Astoday’scompaniesfaceaglobalbusinessmarketcharacterizedbyincreasingcompetitionfromava-rietyofsources,theneedtofunctionmoreefficientlyanddifferentiatefromothersisabusinessimperative.
Momentumisgainingamongbusinessleadersbelievingthatcompaniescanplayanimportantroleinconnectingcommunities.Theyalsounderstandthatanunhealthycommunityisgoodfornoone—employees,families,orcustomers.And,despiteeconomicshifts,thebusinessvalueofcorporatevolunteerismhasneverbeenstronger.Why?
Itmakesstrategicbusinesssense,inbothgoodanduncertaintimes.ChoicePoint,aLexisNexiscompanywithalargepresenceintheAtlantaregion,isonecompanywhoseleadershaverecognizedboththemanifoldbenefitsofcontributingtotheirlocalcommunitiesandthetremendousop-portunitiespresentedbythecurrentfinancialsituation.
Withfullsenior-managementparticipationinChoicePoint’svolunteerpro-gram,morethan30percentofassociatesvolunteerannually.Workinglatenightsandweekends,volunteerscreatedamissing-childrenalertsprogramfortheNationalCenterforMissingandExploitedChildren.Todate,nearly900missingchildrenhavebeenreturnedtotheirlovedonesasaresultofthetechnologycreatedanddonatedbyChoicePoint.
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UPS,anotherAtlanta-basedcompany,haslever-ageditsemployeestocollectivelydonatehun-dredsofthousandsofhourseachyeartophilan-thropiccausesthroughitsNeighbortoNeighborprogram.
Forthepastthreeyears,thousandsofUPSem-ployeesinmorethan45countrieshaveservedtheircommunitiesduringUPSGlobalVolunteerweek,anextensionofthecompany’slongstand-ingcommitmenttoservice.Employeeshavehelpedpaintschools,assistedfoodbanks,renovatedshelters,andservedothermeaningfulcauses.
UPSleadershaverecognizedthepotentialforenhancingthehealthoftheircommunitiesandhavedecidedtocapitalizeonthisopportunity,tothebenefitofboththecompanyandcitizens.
ChoicePointandUPSarejusttwoexamplesofAtlanta-areacorporationsthathaverealizedthevastadvantagesofcontributingtocommunities.
Thesecompanieshavedemonstratedunwaver-ingcommitmentstoemployeevolunteerism,despiteanunstableeconomyandatimeoftran-sitioninpolitics.
Volunteerismhasmadeenormousstridesinrecentyears,withAmericansdedicating60.8billionhoursofservicein2007.However,thereisstillworktobedone,andthecorporatesectoroffersendlessopportunitiesforvolunteerismandcommunityengagement.
Businessescanaidinsolvingserioussocialproblemssuchaspoverty,pooreducationsystems,andthepollutedenvironmentthroughemployee-volunteerprogramsandpro-bonoservice.Corporationscanandshouldleadthenationindemonstratingthesignificanceofper-severingincommunityactivismduringuncer-taintimes.
Shawn Reifsteck is the president of the Points of Light Institute
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Chapel Hill, North CarolinaAs one of the three “points” of the Research Triangle, Chapel Hill, along with Raleigh and Durham, continually receives accolades for being a top location to live and do business.
–Chapel Hill-Carrboro Chamber of Commerce
TheChapelHill-CarborroChamberofCommerceco-hostedwithBCLCaconferenceofnationalandlocalbusiness,government,andcommunityleadersonJuly21–22,2008.WiththeChapelHillchamberandcommunitycomingoffarecentwinatthe2008SiemensSustainableCommunityAwardscompetition,thetopicoftheconferencewassustainability.Thediscussioncontinueshere.
Total Pop.50,000(2006est.)
Pop. Increase4.2%(2000–2006)
People with Bachelor’sDegreeorHigher73.7%(2000)
People with High SchoolDiploma94.3%(2000)
Median Household Income$39,140(1999)
Persons below Poverty21.6%(1999)
Total Number of Firms5,595(2002)
Avg. Commute to Work18.4minutes(2000)
The data represent the city of Chapel Hill and not the whole of the Research Triangle Park area.
(Source: U.S. Census Bureau State & County QuickFacts)
18 • A Business Civic Leadership Center Report
New Realities, New Opportunities
By Aaron Nelson
Chapel Hill, North Carolina
Ournation’scommunitiesarechangingasourcitizen,government,andbusinessleadersexpressincreasinginterestinaligningthemselveswiththeglobalmega-trendsof“green”and“sustainable.”
Thebusinesscommunityshouldplayastrongleadershiproleintheareaofsustainability,butbusinessescannotleadthiseffortalone.Buildingstrongandsuccessfulcommunitiestakescoalitionsandpartnerships—andcham-bersofcommercearetheorganizationsuniquelyqualifiedandpositionedtoleadtheseefforts.
Chambershavespecialabilitytoconvenetheircommunitiesaroundimpor-tantissues,astheyhaveuniqueaccessandcredibilitywithleadersacrossthebusiness,civic,social,education,government,andpoliticalspectrums.
Chambersknowbusinessandeconomicissuesbest,buttheirservicetotheirnonprofitmembers,supportandpromotionoftheirbusinessmem-bers’corporatecitizenship,andtheirchamber’sowncommunity-develop-mentactivitiesgiveusastrongunderstandingofcivicandsocialchallenges—andopportunities,aswell.
Tosuccessfullyconvenethesecoalitions,wehavetofocusonoursharedinterests,ratherthanhistoricand/ordivergentpositions.Ourchamberbelieveswecansimultaneouslyimprovethewayindividualsandorganiza-tionsengagetheircommunityandengagetheirenvironmentwhilemakingthemmoresuccessfulforit.
Communitiescanonlybesuccessfuloverthelong-termiftheyfindwaystobalancetheheretoforecompetingobjectivesofenvironmentalstewardship,socialresponsibility,andeconomicprosperity.
Chapel Hill, North Carolina
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Sustainabilityisnotjustaprescriptionforcom-munitysuccess;organizationsthatbalancethistriplebottomlineofsustainabilitywillberewardedinourchangingeconomy,aswell.Today’scustomersandemployeesaredemon-stratingagreaterinterestinsupportingbrandsandcompaniesthatsharetheirvalues.Thecostsofenergyandrawmaterialsareincreasingdra-matically,andthesocialhealthofacommunityhasanincreasingimpactonemployeeretentionandproductivity.
Inthefaceoftheserealities,smartbusinessleadersareimprovingtheircommitmenttotheprincipalsofsustainabilityinordertobothmakeandsavemoney.
Historically,chambershavehadpoorandoftenadversarialrelationshipswiththeenvironmentalcommunity.Butthatischangingasenviron-mentalistsrecognizetheywillgetmorefrompartnershipandcooperationthantheywillfromcontinuingthehistoricstrategyofscoldingandblame.And,businessleadersseeenvironmentalstewardshipmoreandmoretobeintheireco-nomicself-interest.
Locally,theChapelHill-CarrboroChamberhasfoundthatchampioningsustainabilityhashad
adramaticallypositiveimpactonourcredibilityandinfluenceamongelected,civic,andsocialleaders.Italsohasimprovedourabilitytomoveourpublicpolicyandcommunity-developmentagendaforward.
Additionally,wearerewardedbyourmembersforprovidingthemwithactionableinforma-tionaboutimprovingtheirsustainablebusinesspractices,helpingthemdifferentiatethemselvesinaincreasinglycompetitivemarketplace,andgivingthemnewtoolstomakeandsavemoney.
“Green”isbigandlikelyheretostay.Expand-ingthenotionof“green”to“sustainable,”amoreholisticapproachthatalsoincludessocialandeconomicobjectives,isafarmorepowerfulconceptandimpactfulapproach.
Chambersshouldtakethelead,definetheobjec-tives,ownthespacearoundsustainability,anduseitasaconcepttoconvenethecommunitytosuccessfullyaddresscurrentandfuturechal-lengesandopportunities.
Aaron Nelson, IOM, is the president and CEO of the Chapel Hill-Carrboro (NC) Chamber of Commerce.
20 • A Business Civic Leadership Center Report
Building Cross-sector Initiatives for a Sustainable Community
By Anne McKune
Chapel Hill, North Carolina
Sustainabilityisatermthathasbeencreepingintothemainstreamlexiconforsometime.Althoughstakeholdersstillargueoverthedetails,thereisaconsensusaroundtheinclusionofthreemainthemesintothedefinition:business,environment,andsocietyorculture.
Thesethreethemesareoftenreferredtoasthetriplebottomlineofcom-munitysustainabilityandarecategorizedindifferentways:thethree“Es”ofeconomics,environment,andequityorthethree“Ps”ofpeople,planet,andprofit(orperformance).
Regardlessofhowthetopicsarediscussed,itisunderstoodthatthethemesareinterconnected.Whereyoufindcommunitieswithpooreconomicgrowth,youoftenfindfailedsocialsystems;whereyoufindaweaksocialsector,so,too,istheenvironmentfrequentlyatrisk.
Seldomarechallengesthatcommunitiesfacesingle-sectorissues.Moreoften,ittakesacross-sectorapproachtotacklecommunitychallengesinasuccessful,long-termway.
Cross-sectorcollaborations,similartopublic-privatepartnerships,areapproachestocommunitydevelopmentthatallowmultiplesectors—towns,businesses,universities,andnonprofits—toworktogethertowardacommonlysharedgoalbysharingresourcesandsharingrisk.Bydoingso,theyareabletoincreasethereturn/valuethateachpartnerreceivesandultimatelycreatemorepowerfuloutcomesforthecommunityasawhole.
Chapel Hill, North Carolina
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Whenitcomestoissuesregardingsustain-ability,thechallengesposedtoeachsectorcanbeverydifferent.However,across-sectorapproachallowsacommunitytoharnessthecapital,skills,andenthusiasmofmultiplepart-nersinordertomoreefficientlyandeffectivelyaddresschallengesandopportunities.
TheU.S.ChamberBCLCpartneredwiththeChapelHill-CarrboroChamberanditsFounda-tionforaSustainableCommunitytodiscusswhattheResearchTriangleregionofNorthCarolinaisdoingtobecomealeaderincom-munitysustainability.
Thediscussionhighlightedonecross-sectorinitiativethatisworkingtochampionthecause.TheInstituteforSustainableDevel-opmentwascreatedin2007whenmultiplepartnersrealizedthattheycouldachievemorebycollaboratingwithoneanotherthanbycom-peting.
Auniquepartnershipofseveralinternationallyrecognizedentities,theInstituteforSustain-ableDevelopmentimprovesknowledgeand
Partners in the Institute for Sustainable Development:
• ChapelHill-CarrboroChamber
• DukeUniversityCenterforInternationalDevelopment
• DurhamChamber
• FenwickFoundation,theFoundationforaSustainableCommunityGlaxoSmithKline
• UniversityofNorthCarolinaatChapelHillCenterforGlobalInitiatives
• UniversityofNorthCarolinaSchoolofSocialWork
applicationofbestpracticesinsustainabilityandinfluencessustainable-developmentpolicy.Thein-tellectualcapitalthatlocaluniversitiesareprovid-ingtheResearchTriangleregion,withfacultyandstudentresearch,isaninvaluableandpreviouslyuntappedresourceforthelocalsmallbusinesses.AndtheInstituteisbeginningtomakethosecon-nections.
TheInstituteforSustainableDevelopmentisfocusedonbringingtogetherstakeholdersfromdiversebackgrounds,representingdiverseinter-ests,inordertoidentifycommunityopportunities.
Byconnectingthepublic,private,andsocialsectorsoftheregion—throughseminars,edu-cationalprograms,networkingevents,andthesustainablebusinessinitiativeGreenPlus™—theInstituteisreachingacrosstraditionalboundariestodevelopcreativesolutionstothisarea’smostpressingchallenges.
Anne McKune is the associate director of the Foundation for a Sustainable Community and the director of the Institute for Sustainable Development.
Community Information Sharing: SustainabilityinLagrange,Ga.
Lagrange,Georgia,acommunityofabout30,000,hastakenaliability—householdgarbage—andturneditintoarevenue-generatingassetbycapturingmethanegasfromthecity’slandfill.
Ithelpedtohaveamajorcorporationthathaslongbeencommittedtosustainabilityasapartnerandsupporter,intheformofcarpetmanufacturerInterface.Aboutfiveyearsago,thecityandengineersfromInterfaceandanothercarpetmanufacturer,Milliken,Inc.,starteddiscussingthefeasibilityofbuildingabiomassreactorthatwouldcapturegreenhousegasemissionsfromthelandfillandturnitintoenergy.
Witha$5millioninvestmentfromthecitytoconstructthereactorandcommitmentsfromInterfaceandMillikentopurchasetheenergy,thesaleofmethaneisexpectedtocreatea$26millionreturn.Thegasispumpedtoanearbyindustrialparkwherecompaniesreceiveadiscountforpurchasingit.Anadditionalperk:thereactorextendsthelifeofthelandfillby16years,nosmallfeatgiventhedifficultieswithcitingalandfillorthepriceofshippinggarbageoutoftown.It’sagreatexampleofasustainablesolutionthatbenefitsthecity,localcorporations,andtheenvironment.
Source: Louise Armstrong, International Economic Development Council
December 2008 • 25
Newark, New JerseyFor more than 10 years, Newark has been building upon its competitive assets, leading to its current revitalization.
–Newark Alliance
BCLChelditscommunityforuminNewarkatthePerformingArtsCenterunderthesponsor-shipofCapitalOne.ItwasauniquegatheringinthatitsmainfocuswasontheeffortsofawellknownbodyofcorporatecitizenswhoformedtheNewarkAlliance10yearsagotobringhope,opportunity,andinvestmentbackintothecity.Notsurprisingly,theimportantissuesofcom-munityrevitalizationandeducationwerekeyareasofdiscussion,andtheyarerepresentedinthefollowingpages.
Total Pop.281,402(2006est.)
Pop. Increase3.3%(2000–2006)
People with Bachelor’sDegree or Higher9%(2000)
People with High SchoolDiploma57.9%(2000)
Median Household Income$26,913(1999)
Persons below Poverty28.4%(1999)
Total Number of Firms13,715(2002)
Avg. Commute to Work31.7minutes(2000)
The data represent the city of Newark.
(Source: U.S. Census Bureau State & County QuickFacts)
26 • A Business Civic Leadership Center Report
Investing in the Present — and Future — of Newark
By Daria Placitella
Newark, New Jersey
Inthebestandworstoftimes,supportingthegrowthofrevitalizedcom-munitiesrequiresasingularfocusandlong-terminvestmenttoensuretheirfuturesuccess.PNC’scommitmenttothereemergenceofNewark,NewJer-sey,beginswithpreservingthecity’sricharchitecturalhistoryandextendstothemostcriticalcomponentofcommunitydevelopment—investingtimeandresourcestoearlyeducation.
An Emerging Community and Environmental Jewel
Atatimewhenthenationalcreditcrunchisimpactingdevelopmentandgrowthinurbanareasacrossthecountry,PNC’sclosetiestotheNewarkcommunitymostrecentlygaverisetoanopportunitytosupportthedevel-opmentandconversionofaformerjewelryfactorylocatedbetweenCityHallandtheIronbounddistrict,oneofNewark’sfastest-risingneighbor-hoods.
The$17millionRichardsonLoftresidential-developmentprojectwasmadepossiblethroughrealestateconstructionlendingprovidedbyPNC,com-binedwithadditionalfinancingmadepossiblebythecityofNewarkandtheU.S.DepartmentofHousingandUrbanDevelopment.Theprojectsiteislocatedneartwoofthecity’smosticonicbuildings,thenewstate-of-the-artsportsandentertainmentfacilityandtheNewJerseyPerformingArtsCenter(NJPAC),whichweactivelysupportthroughmemberships,sponsorships,andgrants.Theendresultwillbearetrofitted67-unitapartmentcomplexthatstandsasthecity’sfirstU.S.GreenBuildingCouncilLEED-registeredresidentialbuildingandincludesbothmarket-rateandaffordablerentalhousing.
Newark, New Jersey
December 2008 • 27
Workingtogetherwiththedevelopers,PNC,thecityofNewark,anditseconomicdevelop-mentarm,BrickCityDevelopmentCorpora-tion,turnedtheideaoftheRichardsonLoftintoarealityanddemonstratedtheprogressthatprivatebusinessandgovernmentcanachievetogetherinrevitalizingcommunities.
Creating a Brighter Future through Early Education
ThefocusonbuildingabrighterfutureinNew-arkextendsbeyondbrick-and-mortarrevital-izationtoearlychildhoodeducation.Credibleresearchconsistentlyshowsthatchildrenwhobeginkindergartenreadytolearnaremorelikelytograduatefromhighschool,succeedintheworkplace,andvolunteerinthecommunity.
Againstthisbackdrop,PNCGrowUpGreatwasestablished.Nowalmosthalf-wayintoits10-yearmission,theprogramrepresentsa$100-millioninvestmentinpreparingchildrenfrombirthtoagefive,withafocusonunderservedchildren,tosucceedinschoolandlifebyhelp-ingtoensurethattheyenterkindergartenreadytolearn.
Today,studentsfromtheE.T.BowserSchool,aNewarkPreschoolCouncilsite,areexposedtolessonplansdesignedtofostermathandbasicacademicskillsandtotheNJPACEarlyLearn-ingThroughtheArtsprogram.BothoftheseearlylearninginitiativesaresupportedinpartbygrantsadministeredthroughPNCGrowUpGreat.
Thepositiveimpactofeachorganizationspeaksforitself.TheNewarkPreschoolCouncil,aHead
Startmemberorganization,currentlyhas46facilitiesthroughoutthecityofNewark,serv-ing2,489childrenbetweentheagesofthreeandfour.
ThehighlyacclaimedNJPACEarlyLearningThroughtheArtsresidencyprogramiscon-ductedundertheauspicesofthenationally-recognizedWolfTrapInstitute.TheprogramfeaturesanNJPACteachingartistleading12classesforyoungchildren,planningsessions,professionaldevelopmentfortheteachersandartists,andmore.Duringthe2007-2008schoolyear,NJPAC’sEarlyLearningThroughtheArtsserved353childrenthrough20Newarkresi-denciesspanning14differentschools.
A Revitalizing Commitment
PNCiscommittedtohelpingbuildtheNewarkoftomorrowthroughinvestmentstodayintheneighborhoodsandfutureleadersatthefore-frontoftherevitalizationofthestate’slargestcity.
Daria Placitella is regional president, Northern New Jersey, PNC Financial Services Group.
Community Information Sharing: EconomicAdjustmentinPoncaCity,Okla.
Asthelong-timehometoConocoOil,PoncaCity,Oklahoma,wasaone-companytownfornearly100years—untilConocomergedwithPhillipsPetroleumin2002and3,500workerswerelaidoff.Todiversifytheeconomyandreplacethelostjobs,localleadersformedthePoncaCityDevelopmentAuthority(PCDA).
OneofPoncaCity’stwomaineconomic-diversificationstrate-gieshasbeentotargetareasofadvancedmanufacturingsuchasaviation,nicheproducts,andconsumergoods.Thesecondkeystrategy,aimedatdevelopingacenteroftechnologyexpertise,hasbeenthecreationoftheUniversityMultispectralLab(UML)—astate-of-the-artsensortechnologyfacility—byapartnershipamongPCDA,OklahomaStateUniversity,andConocoPhillips.Inaddition,thecommunity’scommitmenttorecruiting,training,andmatchingworkerswithemployershasbeenkeytoenablingbusinessesinPoncaCitytothrive.
Since2004,PoncaCityhasgained1,800newjobs,theunem-ploymentratehasdecreasedfromapproximately8percentto3percent(asofmid-2008),andjobsatnewcompaniesinPoncaCitypayannualwagesthatare28percenthigherthanthere-gion’saverage.
Source: Louise Armstrong, International Economic Development Council
30 • A Business Civic Leadership Center Report
Teaching Life Skills to West Side High Students
By Carolyn Berkowitz
Newark, New Jersey
Newark,NewJersey,isacommunityrichwithhistorythathasbeentrans-formedoverthelastdecadethrougheconomic-developmentinitiativesthathaverestoredsomeofitsvibrancy.However,outcomesforyoungpeoplegrowingupinNewarkarestillfarbelowthestate’saverageandareakeyconcernforcityandstateleaders.
AspartofCapitalOneBank’sentryintotheNewarkmarket,BCLCandCapi-talOnesponsoredacommunityforumtogatherlocalandnationalleadersforadiscussionaboutNewark’sspecificneedstofurtheradvanceitseco-nomicandsocialprogress.
Oneofthethemesthatrepeatedlysurfacedinthediscussionwasinvestingineducation.Icouldnotagreemorethateducationistheplacetostart.
AtCapitalOne,westronglysupporteducationandoftenspecificallyfocusontheneedforfinancialeducation.Toomanyyoungpeopleleavehighschoolwithlittleornoknowledgeofhowtosavefororsafeguardtheirfinancialfutures.
Asmanyofushavelearnedinthesetryingeconomictimes,knowledgeofpersonalfinancecanbethedifferencebetweenfiscalstabilityandbarelyscrapingby.Knowingthateducationisthekeytosuccess,CapitalOnehasinvestedinaninnovativepracticumforhighschoolstudentsthatcombinesreal-lifebankingwithfinancialeducation,workforcedevelopment,andcol-legepreparationintwoCapitalOnecommunities.
ThisNovember,aCapitalOneBankbranchopenedinsideWestSideHighSchoolinNewark.Openfrom11:00to3:00threedaysaweek,thebankisoperatedbynineWestSidestudentswhoreceiveguidancefromCapital
Newark, New Jersey
December 2008 • 31
Onebranchmanagers.Servingonlytheschool’sstudents,faculty,andadministrators,thestudentbankersofferarangeofservicesrelevanttostudentsavers.
Toprepareforthebank’sopening,theninestu-dentbankersworkedoverthesummeratCapitalOnebankbranchestobuildtheirexperienceastellersandcustomerservicerepresentatives.Theyalsoattendedatwo-weekformaltellertrainingatCapitalOne’sFairfieldtrainingcenterandaoneweekcollege-developmentprogramatDrewUniversity,wheretheybeganplanningfortheircollegeapplicationprocesses.
Thestudentsreturnedtoschoolinthefallreadytobegintheirroleasstudentbankersandmentorstotheirpeersonsavingandpersonalfinance.
ThebankatWestSideisthesecondofitskind.CapitalOneopenedasimilarstudent-runbankatFordhamLeadershipAcademyintheBronxin2007,runbyseveraloftheschool’sseniors.Theseniorsallgraduatedandarenowsuccessfulcollegestudents.
AtWestSide,thestudentbranchiscomple-mentedwiththeestablishmentofaCommunityFinancialEducationCenter.WearepartneringwithNewarknonprofits,includingNewarkNow,toofferfinancialeducationseminarsandEarnedIncomeTaxCreditpreparationtothepublic—to
makeWestSideHighSchoolacenteroffinan-ciallearningnotonlyforthestudentsandtheirfamilies,buttheentirecommunity.
Thisprogramisbuiltonwhatwehavefoundtobesomeofthebestpracticesinsuccessfulfinancialeducationprogramming:
• Partneringwithcommunityorganizations—schoolsandnonprofits—thatsharea commonvision
• LeveragingthefinancialexpertiseofCapitalOneassociates
• Utilizingthefullrangeofcorporateassets(e.g.,in-housetrainingprograms)
• Employingtrain-the-trainertechniquestomaximizetheimpactofresources
• ServingthecommunityinwaysthatimprovethecontextforCapitalOne’sbusinessgoals
WeareexcitedaboutthepotentialforthisprograminNewark.Itisatremendouslife-andprofessional-skillslearningexperienceforthestudentbankersandbyextension,auniquefinancial-educationexperienceforthestudentbodyandthepublic.WelookforwardtoworkingwithWestSideandothercommunityorganiza-tionstoincreaseitsimpactontheentireNewarkcommunity.
Carolyn Berkowitz is vice president of community affairs at Capital One and president of the Capital One Foundation.
December 2008 • 33
Palm Beach County, FloridaFor the last two decades, Palm Beach County has experienced rapid economic growth, positioning us as a top location for building corporate wealth. The caliber and diversity of companies residing here demonstrate our attractiveness to growing industries.
– Business Development Board of Palm Beach County
Total Pop.1,274,013(2006est.)
Pop. Increase12.6%(2000–2006)
People with Bachelor’s Degree or Higher 27.7%(2000)
People with High School Diploma83.6%(2000)
Median Household Income$44,186(2004)
Persons below Poverty10.1%(2004)
Total Number of Firms130,332(2002)
Avg. Commute to Work25.7minutes(2000)
The data represent Palm Beach County.
InbothDecember2007and2008,business,community,andnonprofitleadersfromPalmBeachCounty,Florida,andaroundthenationconvenedfortheannual“WeekendinBoca”retreattoaddresslocalcommunitydevelopmentissues,includingprivate-sectorpartnershipsandnonprofitcapacity-building.Themeetings,madepossiblebytheOfficeDepotFoundation,uncoveredtheuniqueengagementofthelocalbusinesssectorandconfirmedtheimportanceofanumberofcorporatecitizenshipactivitiesandpartnershipsinthecommunity.
(Source: U.S. Census Bureau State & County QuickFacts)
34 • A Business Civic Leadership Center Report
Corporate Community Investment Pays Valuable Dividends
By Mary Wong
Palm Beach County, Florida
RobertGoodwin,whoretiredin2006aspresidentandCEOofthePointsofLightFoundation,notedduringhisworkwiththeorganization,“Intoday’scompetitiveenvironment,companiescannotaffordtobedisconnectedfromtheircommunities,customers,clients,oremployees.”
Withthelikelihoodofevenmorechallengingtimesaheadofus,Mr.Good-win’swordscontinuetoringtrue.Itisessentialforbusinessestoestablishandnurturerelationshipswiththeircommunities—andparticularlywiththepublic-sectorinstitutionsandnonprofitorganizationsthathelptokeepthosecommunitiesstrongandvibrant.
Astheindependentfoundationthatservesasthecharitable-givingarmofOfficeDepotInc.,wehavetheprimaryresponsibilityforidentifyingpotentialpartnersforourcompany’scorporatecitizenshipefforts.Fewofusarefortu-nateenoughtohaveunlimitedresourcesandso,likeanybusinessdecision,itiscriticaltobethoughtfulandstrategicindeterminingwhereandhowwearegoingtofocusourcommunity-investmentdollars.
Thistaskcanseemoverwhelming,giventhefactthattherearesomanyworthyorganizationsineverycommunity.WhenweexpandedthescopeoftheOfficeDepotFoundationtwoyearsago,wemadesurethatwetookcare—andtime—toclearlyidentifyourmissionandgoals.
Aswecarriedoutthisprocess,thekeyquestionwecontinuallyaskedwas,“Whatdowestandfor?”Aftercarefulconsideration,wedeterminedthatwewantedourstrategicprioritiestoencompassfivekeyareas:enhancingeducation,supportingcommunityandeconomicdevelopment,facilitatingdisasterreliefandrecovery,encouragingnonprofitcapacitybuilding,andstrengtheningcommunities.
December 2008 • 35
Werefertothisplanasour“5X5Program”—fiveprioritieswherewewillfocusourenergiesforfiveyears.
Webelievethatanycompany,largeorsmall,thatwishestobuildastrongcorporateciti-zenshipprogrammustgothroughasimilarexercise.Then,afteryouhavedeterminedyourpriorities,italsomakessensetolookforcommunity-investmentopportunitiesthatsup-portyourbusinessobjectives.Forexample,ifacompanysellspharmaceuticals,itwouldlikelybemorelogicaltosupportahealth-relatedchar-itythanananimal-rescueorganization.
TheOfficeDepotFoundationtakesthisapproachinourcharitablegivingandcommunity-invest-mentinitiatives.Thesupportweprovidetochil-drenandschoolsthroughoursignatureNationalBackpackProgram,forexample,helpstorein-forceOfficeDepot’sreputationasaresourceforteachersandparentsthroughouttheyear.
Wealsoaregenerallymoreinclinedtoestablishlong-termpartnershipswithafeworganizationsthatareinalignmentwithourpriorities.
Thisgivesustheabilitytomeasuretheimpactofoursupportovertime.
Whilehavingastrongcorporatecitizenshippro-gramisimportantforitsownsake—tosupportacompany’saltruisticvalues—itisclearthatthepracticealsoresultsinasignificantreturnoninvestment.Asnationalstudieshaveshown,companiesthatareinvolvedintheircommuni-tiesbenefitinnumerousways—fromnotice-ableincreasesinbusinesstohigheremployeemorale,positivefeelingsamongcustomers,andthegrowthofareputationasacompanythatmakesadifference.
ThroughourworkinSouthFloridaandinnu-merousothercommunitiesacrosstheUnitedStates,wehaverealizedthesebenefitstimeandtimeagain.Corporatecommunityinvestmentisclearlyawin-win—fortheOfficeDepotFounda-tion,fortheorganizationswithwhichwepartner,andforthecommunityasawhole.
Mary Wong is the president of the Office Depot Foundation, located in Delray Beach, Florida.
36 • A Business Civic Leadership Center Report
City, Business, and Schools: Unique Opportunities for Partnership
By Marjorie Ferrer
Palm Beach County, Florida
WhentheDelrayBeachDowntownMarketingCooperativeapproachedtheOfficeDepotFoundationforfundingofour2007holidayfestivities,Founda-tionPresidentMaryWongissuedachallengetous:Figureoutameaningfulwaytoinvolvemiddle-schoolstudentsintheproject.
Wequicklyrealizedthatfeworganizationsdoanythingforthisoften-forgot-tenagegroup—kidswhoaretoooldforchildren’sactivitiesbuttooyoungtohaveajob.Instead,theyhaveagreatdealoffreetimeontheirhands,whichtheycanchoosetodosomethingeitherconstructiveordestructive.
Recognizingtheopportunitytocreateatrulyspecialpublic-privatepartner-ship,weacceptedthechallengeanddesignedaprogramthatwouldinvolveseventh-andeighth-gradestudentsattendingpublicandprivateschoolsinDelrayBeach.Ourgoalwastoaffectthesestudents’livesinapositivewaythroughcivicleadershipandcommunityinvolvement.
December 2008 • 37
TheOfficeDepotFoundationsubsequentlymadeagrantof$50,000,whichgaveusthetoolsnecessarytoinvolvethestudentsforthefirsttimeeverinthecity’slargestspecialevent.Overthecourseoftheholidayseason,seventh-andeighth-gradestudentsfromthesurroundingcommunitieswereinvolvedinthreeprojects:
1. Constructionofthefamous100-footChristmastree—Afterreceivinginstruc-tionfromateamofsteelandelectricalcontractorsonthemechanicsoftreeconstruction,studentsworkedwithcontractors,cityemployees,andothervolunteersonactivitiesincludingbranch-ingthetree,checkinglightbulbs,arrang-inginteriorscenes,andpainting.
2. Entertainmentatthetree—StudentsprovidedholidayentertainmentattheOfficeDepotFoundation’sentertainmenttentnightlyfromNovember30throughNewYear’sEve.
3. FirstNight®NewYear’sEvecelebration—StudentsmanagedtwoactivitysitesduringFirstNight2008:thebubblewrapstompandpingpongballdrop.
Byinvolvingseventhandeighthgraderssocloselywiththeseactivities,participatingstudentstookownershipofthetreeandthesurroundingfestivities.Itwasnolongerjustthe“bigtreeinthemiddleoftown”;itbecametheirtree.
StudentsfromsevenDelrayBeachmiddleschoolsloggedatotalof1,884volunteerhours.Also,aspartofitsgrant,theOfficeDepotFoun-dationawardednearly$10,000inscholarshipstotheseschoolsatthecity’sannualvolunteerappreciationparty.
Byinvestinginthisinnovativeproject,theOf-ficeDepotFoundationwasabletosupportoneofthestrategicprioritiesincludedinits“5X5Program”—helpingchildrengetreadyforlifeandwork.TheFoundation’sgoalistohelpgivechildrenthetoolsandsupporttheyneedtodowellinschool,explorepotentialcareers,andpreparetoeithercontinuetheireducationorjointheworkforceaftercompletinghighschool.
Webelievethispartnershipisuniquebecauseitrepresentedthefirsttimethataspecialeventwasusedtopromotepositiveinvolvementinthecommunitywithinthisat-riskagegroup.Italsoprovidedauniquementoringopportunityforourteamof200seniorvolunteers,manyofwhompairedupwiththeseventhandeighthgraders.
“TheOfficeDepotFoundationbelievesinen-couragingyoungpeopletostretchtheircreativ-ityaswellastoexperiencethepositivebenefitsofvolunteerism,”Wongsaidinevaluatingthesuccessoftheproject.“Wearedelightedthatsomanychildrenwereabletobenefitfromtheirparticipationinthisoutstandingprogram.”
Marjorie Ferrer is the executive director of the Delray Beach Downtown Marketing Cooperative.
38 • A Business Civic Leadership Center Report
Uncovering Unlimited Possibilities
By Kelly Smallridge
Palm Beach County, Florida
Inthelastfouryears,PalmBeachCounty,Florida,hasbecomeoneoftherisingstarsinattractinglargebioscienceresearchorganizations.
In2002,thecounty’spublic-privateeconomic-developmentorganization,theBusinessDevelopmentBoard,gatheredtogetheracoregroupofcounty-widelife-scienceindustryleaders,educationalinstitutions,venturecapital-ists,chambersofcommerce,andkeybusinessstakeholderstocreateaLifeScienceStrategicPlantopositionthecountytoattractkeylife-sciencecompanies.
ThisplanwasdevelopedincollaborationwiththestateandwithformerGovernorJebBush,whocreateda$200-millionInnovationFundtoincentcompaniestomovetoFlorida.
PalmBeachCountyhasoneofthelargestphilanthropicdonorbasesintheUnitedStates,whichisakeyingredienttoattractingnonprofitresearchor-ganizationsthatdependonthesedollarsforsustainablefunding.
Inmid-2003,withasolidplaninplace,PalmBeachCountylandedtheScrippsResearchInstitute,whichwillopena345,000-square-footfacilityinFebruary2009.Itwillcreatemorethan500jobs.ResearchersatScrippsFloridawillfocusonbasicbiomedicalscience,drugdiscovery,andtheappli-cationofthelatestresearchtechnologytothedrugdiscoveryprocess.
TwoyearsaftertherecruitmentofScripps,PalmBeachCountywonthefirstU.S.operationfortheMaxPlanckSocietyoutofGermany.MaxPlanckchosetolocateitsfacilitiesrightnextdoortoScrippstoallowforstrongcross-col-laborationandsharingofscientificknowledge.BothfacilitieswillbelocatedonthecampusofFloridaAtlanticUniversity,whichdonatedthelandaspartoftheincentivepackage.
December 2008 • 39
Asaleaderinthefieldofbiotechnologyresearch,theMaxPlanckSocietyhashighhopesforitsnewAmericanfacilities.Itwillbuilda100,000-square-footfacilitycomprisedoflaboratoriesandresearchcentersandbringinsomeofthemosttalentedresearchersinthebio-imagingindustry.
TheMaxPlanckSocietyhasagreedtogivebacktothecommunitybypledging3percentofitsannualroyaltiestothePalmBeachCountyeducationsystemforaspanoftwo-and-a-halfdecades(from2012to2038).
Inaddition,theMaxPlanckSocietyhasa10,000-square-foot,world-class,interactiveScienceTunnelexhibitthathasbeenpresentedinplacessuchasBerlin,Dubai,Shanghai,andJohan-nesburg,tonameoffew.Thetunnel’sfirstentryintotheUnitedStateswillbeinFebruary2009inWestPalmBeach,Florida.Spanningmorethanahalfmile,thehands-onexhibitsaredesignedtosparkengagementandcuriosityamongeventheyoungestofminds.Theentiretunnel’stwo-and-a-half-monthvisittoPalmBeachCountyisfundedbyBankofAmericathrougha$200,000contribution.
“TechnologyandscienceareanimportantpartofFlorida’seconomy,andatBankofAmerica,
webelieveinsupportingourcommunitiesinwhichwedobusiness,”saidFabBrumley,PalmBeachCountyMarketPresidentforBankofAmerica.
BoththeScrippsResearchInstituteandtheMaxPlanckSocietyarerecognizedworldwideasleadersinthefieldofbiomedicineandtheybringunlimitedpossibilitiesforpotentialre-searchbreakthroughsinthefieldsofbio-imag-ing,biomedicine,andbiotechnology.
Recognizingthepotentialforancillarycom-paniesandspin-offstoemergeduetotherecruitmentofthesetwoworld-classcenters,privatebusinessleaderscreateda$3millionfundthroughtheParagonFoundationtoas-sistblack-andminority-ownedbusinessesandtogiveentrepreneursthechancetheyneedtocompeteequally.Theseprogramshelptradition-allyunderservedcompaniestogainaccesstocapital,businessadvice,andcriticalresourcestoguideandacceleratecompanygrowthandaidintherevitalizationofunderservedcommunitiesinPalmBeachCounty.
Kelly Smallridge is the president of the Palm Beach County Development Board.
December 2008 • 41
Silicon Valley, CaliforniaSan Jose ranked first among large metropolitan areas as a world-class manufacturing community based on manufacturing strength and the high productivity of area workers. The San Jose metropolitan area continues to have the highest productivity level of any region in the U.S
–San Jose Silicon Valley Chamber of Commerce
EventhoughBCLC’sMarch4,2008,communityforumtookplaceindowntownSanJoseatthechamberofcommerce,itisimpossibletolimitconversationofthiscommunitytoSanJose,alone.Moreaccurately,thecommunityisSiliconValley,thesouthernpartoftheSanFranciscoBayarea.Itisthecountry’sleadinghigh-technologycenterandisahotspotforinnovators,venturecapitalists,andentrepreneurs.Butwithitseconomicsuccesscomesthechallengesofaffordability,anunqualifiedworkforce,andinsufficientinfrastructure.
Total Pop.929,936(2006est.)
Pop. Increase3.9%(2000–2006)
People with Bachelor’sDegree or Higher31.6%(2000)
People with High School Diploma78.3%(2000)
Median Household Income$70,243(1999)
Persons below Poverty8.8%(1999)
Total Number of Firms60,695(2002)
Avg. Commute to Work27.8minutes(2000)
The data represent only the city of San Jose and not the whole of Silicon Valley.
(Source: U.S. Census Bureau State & County QuickFacts)
42 • A Business Civic Leadership Center Report
Entrepreneurial Solutions for Silicon Valley’s Challenges
By Dipti Pratt
Silicon Valley, California
SiliconValleyisauniqueplacebecauseoftheentrepreneurialattitude,thecommondesiretofocusoninnovation,thepresenceofworld-classcompa-niesanduniversities,andthegreatpassionofourresidentstotryandmaketheworldabetterplace.Ourinnovativeattitudeisappliedtosolvingbusi-nessneedsandsocialneedsalike.
InSiliconValley,weapproachphilanthropyandthecreationofourcom-munitybenefitorganizationsinaground-breakingmanner.Thisiscritical,becauseSiliconValleyisaregionthatneedsbigideastosolvebigsocialproblems.
SiliconValleyisoneofthemostexpensiveregionsinwhichtolive.Becauseofthehighcostofliving,itisdifficultforfamiliestomakeendsmeetandmanycannotfindthemeanstomeetbasicneeds.Thenationalpovertythresholdforafamilyoffourisanannualincomeof$20,650(InstituteforResearchonPoverty).
Yet,accordingtoSecondHarvestFoodBank,forafamilyoffourinSantaClaraorSanMateocounties,withtwoparentsworkingfulltime,itcosts$77,069ayeartocoverbasicnecessities.
Thehighcostoflivingattributestosurprisingratesofhomelessness,inspiteoftheregion’swealth.Morethan6,000peoplebecomehomelesseveryyearinSanMateoCounty.ThetypicalhomelesspersonontheSanFranciscoPeninsulaisjust5yearsold.
Two-thirdsofthepeoplewhoarehomelessinourcommunityarefamilieswithchildren(ShelterNetwork).Unfortunately,thevastmajorityofhome-lesspeopleonthePeninsulaarehard-workingfamilieswhohavebecomehomelessbecauseofafinancialemergency.Thehomelessarenotindividu-alswithoutjobs—theyarepeoplewithoutenough.
Silicon Valley, California
December 2008 • 43
Ourlocalfoodbank,SecondHarvestFoodBankofSantaClara&SanMateoCounties,distribut-edarecord24,070,076poundsoffoodtocountyresidentsduringtheir2007-2008fiscalyear.Thisisan11percentincreaseinfooddistributionoverthepreviousyear,as7percentmoreofVal-leyresidentsareseekingassistancewithfood.
Asaresult,manycompaniesfromaroundthevalleyfocusspecificallyonsolvinghungerwithinitiativesandholiday-focuseddrivestoprovideourfoodbankstheresourcestheyneedtofeedthelessfortunateintheValley.
Ratherthanadecliningmovement,theValley’sCSReffortsaregainingmomentum,eveninthesedifficulteconomictimes.Companiesareengagedcitizensbecauseitistherightthingtodo.Theyrealizeengagementisnotanice-to-do,butrathersomethingtheymustdo.Corporatereputationsaretieddirectlytotheirrelation-shipandstatureinthecommunitiesinwhichtheyoperate.SiliconValleyemployeesdesirenotonlyapaycheckbutaworkplacethatsharestheirvalues.
Moreover,throughactivephilanthropicandcommunityprograms,companiesarefindingthattheiremployeeshaveincreasedcorporatepride,whichenhancesretentionandrecruitmentefforts.
Thechallengeremains,however,tofindsystem-aticwaystobridgethegapbetweenthosethathavereapedthefinancialrewardsofSiliconVal-leyandthosethathaveyettoexperienceit.Cor-porationsarehelpingfillbasicneedsbutmorecanbedonetotransferbusinessknowledgeandskillstosolvingSiliconValley’sregionalprob-lems.
OrganizationsliketheCommunityFoundationofSiliconValley,EntrepreneursFoundation,JointVentureSiliconValley,andtheSiliconVal-leyLeadershipGroupareworkingtoincreasecorporateandemployeeengagementtosolveproblems,ratherthanjust“Band-Aiding”aquickfix.
Manycompaniesaresteppinguptothischal-lengeandlookingathowtheycanleveragetheircorporateskillstobenefitthecommunity.Col-lectively,throughcollaborationandknowledgetransfer,corporations,governments,andsocialsectorscanworktogether,intypicalSiliconVal-leyfashion,todevelopnewinnovationstosolveourcommunities’greatestneeds.
Dipti Pratt is marketing director for the Entrepreneurs Foundation, an organization that assists Silicon Valley-area companies with creating, managing and implementing corporate foundations and community programs.
44 • A Business Civic Leadership Center Report
Partnerships to Improve Infrastructure
By Carl Guardino
Silicon Valley, California
Californiansareremindedeverydaythatthestate’spopulationhasoutgrownitsroads,schools,andotherpublicfacilities.Theysitintrafficjams,theysendtheirchildrentoovercrowdedschools,theyadapttowaterrationing.
Thirty-eightmillionresidentsarestraininganinfrastructurebuiltforhalfasmany.Itisnotjustaninconvenienceineverydaylife.Commuterswhocan-noteasilygettowork,orchildrenill-equippedtojointheworkforce,slowdowntoday’seconomyandrestrictitsfuturegrowth.
Theestimateofwhatthestateneedstocatchupis$500billion—halfatril-lion—ininvestmentoverthenext20years.Evenbeforethestate’scurrentbudgetdebacle,itwasobviousthattheoldwaysoffinancingandconstruct-ingpublicfacilitiesthroughbondsandtaxeswereinadequatetothechal-lenge.
Fortunately,asGov.ArnoldSchwarzeneggerhasrecognized,Californiaisnotlimitedtoadiscouragingchoiceofmoretaxesormoretraffic.Itcanimportabestpracticefromotherpartsoftheworld.Bridges,roads,transit—orschoolsandlibraries—arebuiltjointlybygovernmentandtheprivatesector.Theycombinepublic-privatepartnershipstofinance,design,con-structand,sometimes,operateandmaintainpublicfacilities.Joiningthebestofbothworlds,public-privatepartnershipsproducebetterdesignedprojects,atlowercosts,andonafasterschedule.
InCalifornia,limitedpublic-privatepartnershipsarepossiblenow.InSanJose,BankofAmericaandChevronEnergySolutionshavefinancedsolarpanelsontheroofsofschools.Theschooldistrictenjoysasmallerelectricitybillandthebankandthecompanygetareturnaswell.
Silicon Valley, California
December 2008 • 45
Otherexcitingpotentialprojectscouldemploypartnershipsonagranderscale:theproposed$4.7billionextensionoftheBayAreaRapidTran-sitSystem,BART,intoSanJoseandtherealign-mentofadangeroushighwaythroughthehillstotheCentralValley.
ThegovernoriscorrectinhiscallforlegislationtopromotewhathecallsPerformanceBasedInfrastructurecontracts,buttheproposalshaverunintocriticismfromsomeunionsrepresent-ingpublicemployees.
ThisisunfairtoCalifornia’staxpayers.Publicworkersdeservetobetreatedfairlyandtobepaidacompetitivewage.Butneitherofthesevaluesisincompatiblewithpublic-privatepart-nerships.Andpublicemployeesshouldnotbeabletolockupeveryinfrastructureprojectwhileroadsdeteriorate,waterallotmentsarecutback,andtransitprojectsgounbuilt.
Public-privatepartnershipsarenotarecipeforturningpublicworksintoprivateprojects.Incre-atingthearrangements,eitherpublic-orpri-vate-sectorunionlaborcanberequired.Unionmembers,publicorprivate,shouldunderstandthatpartnershipswillincreasethenumberofprojects,ratherthantakingjobsawayfrompub-licworkers.
Wherepublic-privatepartnershipsareusedwidely,theyprovideabout20percentofnewinfrastructure.ForCaliforniathissuggeststhatupto$100billionofCalifornia’s$500billionin-frastructureshoppinglistcouldbeexpandedby$100billion,withoutadditionalpublicfunds.
Twentypercentmoreforthesametaxdollars–thisisanofferthatgovernmentsatalllevelsinCalifornia,strugglingwiththeworstbudgetdeficitsinyears,cannotaffordtorefuse.
Carl Guardino is the president and CEO of the Silicon Valley Leadership Group.
46 • A Business Civic Leadership Center Report
The Financial Crisis Requires a Paradigm Shift
By Joel Kotkin
Back to Basics:
Itistemptingtolookatthecurrentfinancialmeltdown—andthe$700bil-lionfederalbailout—asasignofcapitalism’simpendingdemise.Certainly,thereputationofbusiness,particularlylarge-scaleenterprises,hashitahistoriclow.Thecallforever-greaterregulation,andevendefactonational-izationofwholeindustries,isgreaternowthanatanytimeinrecenthistory.
Businessmustrespondtothisrealitywithbothanacknowledgementoffailureandrecognitionoftheneedforbigchanges.Whatwereallyneedisnotarevolutionagainstcapitalism,butaparadigmshiftwithinit.Weneedtomoveawayfromfadsandquickbucks,andtowardsproductiveinvest-ment.Ifwedonotmakethatshift,thecurrentbubblewillsimplyrecreateitselfagain,perhapsinill-thoughtoutspeculativeventurespainted“green”butmotivatedbythesameshortsightedgreed.
Instead,letusstopthewholebubblecycleandgetbacktobasics.Thatmeansshiftingourinvestmentstowardsproductiveactivitiesfrommanu-facturingandbasicinfrastructure.Itmeansshiftinginvestmentprioritiesbyprovidingincentivesforthoseentrepreneurswhosemaininterestistobuildcompanies,notflipthem.
Overthepastdecade,wehaveseenarepeatedpattern.Americansinnovate,startnewcompanies,andbringamoribundeconomybacktolife.Thistakesplaceprimarilyinthesuburbsandtheexpandinggrowthregions.Thenthemarketsheatupandthereisarapidassetinflation—inthelate1990sdot-comstocks,morerecentlyrealestateandWallStreet—thatcreateahugewealtheffect,particularlyinelitecities.Itallendsupinadispiritingcrash.Thispatternmakesforgreatdramabutalsohaslong-termeffects,mostim-portantlyforourchildren.America’srobustpopulationgrowthnecessitatesrapidlongterm,andwidespreadeconomicgrowth.Thatmeansmovingawayfromafinanciallyorientedeconomytoaproduction-orientedone.
Back to Basics:
December 2008 • 47
Businessneedstoembracethisagenda.
MostAmericanscannotsustainthemselvestrad-ingpaper.Wealsoneedrobustgrowthinahostofproductiveindustries—energy,fiber,food,manufacturinggoods,andhigh-endbusinessservices—thatcanprovidedecentemploymentformorethanafewWallStreets,well-placeddevelopers,anddotcomentrepreneurs.
Forthesebroader-basedindustriestogrow,weneedtoimprovebasicinfrastructureformovinggoods,providingenergy,andeducatingskilledworkers.Thiscanbeseeninboththelargestcitiesandthesmallesttowns.“Onelooksbackatthatmap,‘LandscapebyMoses,’”writesthenotedsociologistNathanGlazerinlookingatthelegacyofNewYorkCity’smasterbuilderRobertMoses,“andifoneaskedwhathasbeenaddedinthefiftyyearssinceMoseslostpower,onehastosayastonishingly:almostnothing.”
Indeed,despitethestaggeringprivatewealthgeneratedbythestockmarketandrealestateinNewYork,thecity’spublicinfrastructurehasbeenlargelyneglected.TherearebillionsfornewstadiumsandotherelementsofMayorBloomberg’s“luxurycity”butnotmuchforthehoipolloi,particularlyintheouterboroughs.
Thecitycontroller’sofficehasestimatedthatinfrastructurespendinglevelsinthelate1990sandearly2000swerebarelyhalfofwhatwasrequiredneedtomaintainthecity’sstreets,mainroads,andrailwaysin“asystematicstateofgoodrepair.”SubwaysandraillinesinAmerica’srichestcityarefrequentlyshutdownafterheavyrainsduetofloodingcausedbypoordrainage.Brownoutsandblackouts,inpart
causedbyunderinvestmentinenergyinfra-structure,havebecomecommonduringsum-merhigh-useperiods.
Similarly,California’sonceenviedwater-deliverysystems,roadways,airports,andeducationfacilitiesareinseriousdisrepair.Inthe1960s,infrastructurespendingaccountedfor20percentofallstateoutlays,butasthetechnocraticper-spectivetookholdinSacramento,infrastructurespendingfelltoitsjust3percentofallexpen-ditures,despitetherapidgrowthofthestate’spopulation.
Manycommunitieshavedecidedthatinsteadofattendingtobasicneeds,toinvestinspec-tacularnewconventioncenters,sportstadiums,artsandentertainmentfacilities,hotels,aswellasluxurycondominiumsandfortheso-called“creativeclass.”Somehavepouredmoneyintoprojectsthattheythinkwillattractafewbigcorporateexecutiveswithluxuryboxesoroperatickets.Othershavepouredtheirresourcesintowaystolure“creative”professionalswithedgymuseums,jazzclubsandculturalcenters.
Americansoftendeludethemselvesthattheycanthrivesimplybybeingcleverer,morecre-ative—evenmoreself-fulfilled—thanourcompetitorsare.China,India,orotherlow-wagenationswillnotbecontenttoconcedehigher-endeconomicactivitytous.
Placeswherewealthexistsandisbeingcreatedwillproveevermoreenticingtoeliteindustries,whetherinsoftwaredesign,specialefforts,high-endlegalservices,architecture,fashion,andevenhedgefunds.
48 • A Business Civic Leadership Center Report
Inthecomingyears,forexample,Dubai,Mum-bai,andShanghaiwillemploytheirenormouswealth—gainedinsuchunfashionablepursuitsasdrillingoilormakingsteel—tobreakintothelucrativebusinessesformerlydominatedbyWallStreet,HollywoodorSiliconValley.Youcannotgiveupproductive,wealth-generatingenterpris-eswithoutconsequencesthatalsowillhitthemosteliteand“creative”workers.
Incontrast,apolicythatfocusesonbothold-fashionedandnew,greeninfrastructurewouldspurpositiveimpactsonemploymentacrossabroadspectrumofactivities.Wecouldusenewbridges,roads,trains,andenergytransmissionfacilitiestohelpresuscitatetheGreatPlainsaswellasthebeleagueredGreatLakessotheyex-ploitthenaturalresourcesandlogisticaladvan-tagesthatmadethemproductivehotbedsinthefirstplace.
Wecanturnourcities,botholdandnew,intoidealspotsforthenurturingofhostsofgrowingindustriesbyprovidingadequateskillstrain-ing,newtransportationsystems,andupdatedpowergrids.
Governmentsateverylevelcanandshouldplayacriticalroleinthisgreatproject,bothinfinanc-ingphysicalinfrastructureandprovidingcriti-calskillstraining.However,giventhefinancialrealitiestoday,wealsoneedtotakeadvantageofprivatecapitalavailablebothhereandabroadforsuchinvestments.Byshiftingtotheseactivi-ties—bothonthefinancialsideandasactiveparticipants—businesscanrecreateaviableandrespectedroleinsociety. SoratherthansimplyrescueWallStreet,orletithangouttodie,letusfigureouthowtoredirectit.Weneedtoshiftincentivesawayfrommind-lessspeculationandthecreationofever-moreobscurefinancialinstruments.Instead,letusfindwaysofencouraginginvestors—andcom-panies—tomaketheirprofitsinwaysthatspurproductionandwidespreadwealthcreation.
Joel Kotkin is a presidential fellow at Chapman University and executive editor of www.newgeography.com. He is finishing a book on the American future.