INSEAD: Can you give a brief overview of your responsibilities at MAS Holdings Ltd.?
Ravi Fernando: As head of Corporate Branding and Strategic CSR, my responsibilities are to develop a clear, unified branding strategy for our 20 odd autonomous manufacturing plants which have, over the last 20 years, evolved to an extent that clearly differentiates MAS Holdings from all other apparel manufacturers globally.
When the World Trade Organisation (WTO) multi-fibre agreement expired in January, 2005, I recognised a unique challenge in the apparel industry, as consequentially this was the end of the quota system mandating which countries major retail brands in the USA and Europe had to place their orders. This then caused a race to the 'low cost' manufacturing nations such as China and Bangladesh.
Before joining MAS in 2003, I spent 12 years working in international marketing and general management for Sterling Health / Smithkline Beecham International in East Africa, the Middle East, the UK and Vietnam. This period in my career gave me a deep understanding of both global branding and the emerging need for corporate responsibility. I could see that to survive in this field, MAS Holdings needed to differentiate themselves globally in a manner which was relevant and meaningful to the emerging ethical consumer in the US and EU.
Therefore, in my role at MAS Holdings, I set out to develop a unique and globally differentiating corporate branding strategy.
INSEAD: Can you tell us about 'Women Go Beyond', the programme's activities, frequency and the 'Empowered Women of the Year Award'?
RF: The Women Go Beyond programme was developed after a 20 year study of best practices within MAS Holdings. The programme offers a strategic corporate responsibility framework which addresses the alignment of the two most major challenges we face globally today – poverty alleviation and climate change.
When I first joined MAS Holdings, I visited most of our apparel plants in Sri Lanka and India. My first impression was how amazing the facilities were and I recognised how well women sewing machine operators were being treated and how these plants had successfully integrated with the communities in rural Sri Lankan and Indian villages. However, I also realised, when delving into more detail and analysing strategy options, MAS Holdings would never be the lowest cost supplier as we were dependent on the importation of raw materials. It was also clear that ethical branding was a differentiator uniquely available to MAS Holdings and Sri Lanka apparel.
In terms of poverty alleviation, geographically we were uniquely placed to champion empowerment amongst rural women as they depended on companies such as MAS Holdings for their livelihoods and that of their families. This is the foundation of Women Go Beyond. The programme offers a simple framework to help all women employed at MAS to 'go beyond' in their careers through support in their career advancement (i.e IT/English and leadership), and how to develop their work/life balance, health and hygiene and emotional intelligence.
'Go Beyond' teams were formed at all of our plants in Sri Lanka and India, who diligently rolled out the programme between November, 2003 and May, 2004. In December, 2004 we launched the third element of our programme, 'The Empowered Women of the Year Awards' which instilled 'Go Beyond' in the DNA of the company. This award ceremony is the 'Oscars' for our women employees who look forward to it each year. On the 16 December, 2007, we will celebrate our fourth awards ceremony where nearly 100 role models will receive this award in recognition of their personal and professional development, at the same time, inspiring others to 'Go beyond'.
INSEAD: Does MAS Holdings run any other CSR related initiatives?
RF: Yes we do. Another key element of our strategic corporate responsibility framework is climate change. Since the launch of 'Women Go Beyond', we launched a second key programme, 'MAS Eco Go Beyond', which aims to educate the next generation about sustainable development. The programme is taught to students aged between 15-18 years old at schools in rural communities where we operate. To date, working closely with the Ministry of Education, we have taught 8,800 teenagers in 20 schools. In addition to the strategic CSR initiatives covering women's empowerment and sustainability, our plants are also involved in many other local CSR related activities such as, community empowerment and engagement, support for sports and infrastructure development.
INSEAD: Can you tell us about your role and activities with the United Nations in their 'Global Compact' initiative?
RF: As the Go Beyond programme started to gain global credibility and was recognised by the United Nations as 'best practice in labour management', in 2006 I was invited to head the United Nations Global Compact Network in Sri Lanka, where they were developing a network of organisations which would commit themselves to the initiative's 10 principles. My role is to build this robust network of sector champions in Sri Lanka based on the country's key economic sectors – apparel, tea, agro-value added, tourism, communication and the retail sectors. In October, 2007 we launched the first UNGC Sri Lanka network 'Positioning Sri Lanka's best Globally' in Mexico at the UNGC networks forum.
INSEAD: How much do you think the increase of awareness of CSR related issues will impact corporate strategy in the next ten years?
RF: I am convinced that business across all sectors will need to incorporate in their strategic planning, a much higher level of engagement with environmental and societal challenges in order to retain their stakeholders. I believe that responsible competitiveness within business will increasingly be the differentiator in the eyes of the emerging 'ethical consumer'. This trend is already moving forward rapidly as major companies such as Toyota, General Electric, Bodyshop, Unilever and MAS have already set themselves apart.
INSEAD: What advice would you give to a business leader in order to adopt a more strategic alignment to issues relating to CSR?
RF: It must start with a deep conviction that any sustainable business demands a triple bottom-line focus and mindset. Not just in mere words, but in deeds. I have also developed a definition to guide businesses as they reach out to align corporate responsibility with their business strategy.
I believe strategic corporate responsibility is "strategic investment in sustainable corporate responsibility initiatives which supports the achievement of an organisation's strategic vision and goals, while impacting its employees, the communities in which it operates and the cause it champions in society." © May 2006 Ravi Fernando.
INSEAD: What can businesses do to make consumers more aware of the importance of CSR?
RF: Businesses interact with consumers on a daily basis, giving them the opportunity and the responsibility to act in a sustainable manner. Businesses should design and develop products and services which meet the challenges of sustainability. The first challenge all businesses have is to develop a sustainable business model, which should be robust, delivering economic sustainability and ensuring environmental and social sustainability. The second challenge is to educate consumers about the need for adopting a more sustainable lifestyle, which is sensitive to the global agenda of climate change and poverty alleviation.
INSEAD: Do you think that further business education programmes in general cover CSR enough?
RF: I am sorry to say that sustainable business as described above is not taught as a core subject in most business schools today. If the future business manager is to have a sustainability mindset then we need to ensure that all MBA and Executive Education Programmes go way beyond electives such as CSR, ethics and governance, to sustainable business as a core and essential subject.
INSEAD: Why did you decide to take the AMP at INSEAD?
RF: In the early '90s, when I did my homework as to which were the most innovative business schools, INSEAD stood out as the one championing international business. This prompted me take my diploma in International Business (CIM) in 1999, and having engaged with a host of brilliant academics and managers I knew INSEAD was the business school where I wanted to develop my international business acumen. In 2001, I took the Advanced Management Programme (AMP) at INSEAD, being my only choice of business school, and since has been my inspiration.
INSEAD: How valuable was taking the AMP programme at INSEAD for you on a professional and/or personal level?
RF: In fact in my AMP class in 2001, I was very fortunate to be part of a truly international team of managers from countries around the world, to mention some, the UK, Brazil, Estonia and Holland. During our 'Setting your Business Agenda' (SYBA) project, where we were asked to identify a forthcoming business agenda, my class challenged me to follow my passion for corporate responsibility with my skills in branding versus, simply focusing on moving up the hierarchy. This led me to take one of the most important decisions in my career, and today I follow my passion.
INSEAD: Do you have any contact with INSEAD alumni/your AMP classmates?
RF: Of Course Team1 AMP 2001 is very much in touch and we maintain a healthy level of dialogue and contact, especially my friend from Estonia who always gets us back on track.
INSEAD: You have stayed in contact with INSEAD by lecturing on Strategic CSR in the AMP programme since 2005. How much do you think the programme has developed since you took it in 2001?
RF: I believe the AMP has evolved to be more relevant to today's business challenges and issues moving from macro issues to micro functional challenges. However, the basic essence of the SYBA challenge remains, and I hope is continuing to challenge young managers to follow their passions. I believe that INSEAD is well positioned today to uniquely develop a truly world class business manager who understands the need for a global, differentiating and sustainable mindset.
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