7gen Bloc

General Electric CEO Jeffrey Immelt spoke at the recent Business for Social Responsibility conference -- the first time I've heard him. He was earnest, direct, self-critical. He never tried to sugar-coat his view that corporate responsibility won't succeed if it doesn't grow the business.

I don't believe that coal-based power and nuclear energy should have any place in GE's "Ecomagination" initiative, which seeks to "build innovative solutions that solve today's environmental problems." And I'm afraid I was less than surprised when I read last year that even while it was putting a green sheen on its image, GE was pushing the EPA to weaken its anti-smog rules for locomotives. After all, GE is hardly the only multi-national that's dipped its brand in greenwash.

And yet, while I've been more than skeptical of GE's lofty talk of creating "a better world," I can't help but be heartened by the company's big-time commitment ($2.5 billion to date) to cleaner technology R&D. So it was that I listened to Immelt with an unsettling mix of cynicism and hope.

Here are a few highlights from my notes:

• In Immelt's view, the economy is not enduring the downside of a volatile business cycle. The economy is experiencing a total "reset" -- a fundamental restructuring of entire industries, as well as the bond between business and government. "That relationship will never be the same."
• People are afraid of the future; Wall Street is confusing and scary. At times like these, business' fundamental responsibility is to "teach people how to compete, so that they can win again." Winning is fine, but at what cost?
• "CSR must stand at the core of a company's strategy, not its periphery." That's typical big-company boilerplate. It also happens to be true.
• Immelt touted GE's long-term dedication to its people. His evidence: a $1.2 billion investment in training. Our evidence: whether GE refuses to engage in mass layoffs during this tough recession.
• GE's philanthropic work aims to benefit society…and GE. "In our foundation, the focus is on education that leads to the development of engineers."
• How does Immelt know whether GE's monitoring of its global supply chain is succeeding? "It's working if you're [uncovering problems and] firing people." That pretty much sums up the GE way.

photo: World Resources Institute Staff