Are we there yet?
The U.S. Chamber’s Business Civic Leadership Center is calling for nominations for the 2008 Corporate Citizenship Awards. The deadline for nominations is June 27. To nominate your company, visit www.uschamber.com/bclc/awards
Much has been written about the New South. It’s a term that came into vogue as a way to define the new spirit of energy and revitalization that has swept across many parts of our southern states. The stories have been punctuated by announcements from such giants as Hyundai and Toyota choosing the South as locations for new manufacturing plants. Other announcements featured steel mills and petrochemical plant expansions. But despite this progress, vestiges of the Old South remain very much a reality. In many areas – particularly in rural communities – the New South might well be another universe. The ugly fact is the South still suffers from some of the highest poverty rates in the United States.
Poverty rates in Arkansas, Louisiana, Mississippi and Texas are among the highest in the nation. Between 20 to 30 percent of Entergy’s 2.7 million customers live at or below the poverty rate. In New Orleans, where our corporate headquarters is located, approximately 40 percent of children live at or below the poverty level. This reality was graphically, horrifically portrayed by the images of New Orleans beamed around the world in the days following Hurricane Katrina as an economic line of demarcation laid bare the difference between hope and hopelessness --- and in some cases life and death. The staggering poverty in which many of the hurricane’s victims lived had as much to do with the horrific suffering that ensued as did the fury of the storm and levee failures themselves.
Like all companies, Entergy’s first responsibility is fiduciary – we must return value to our shareholders. But as a corporate citizen, we also have a moral obligation to address the poverty that afflicts so many of our customers. Contrary to what some might think, the two objectives are complementary. Both play a critical role in the company’s strategic focus. Poverty is a weapon of mass destruction that sucks resources away from our communities, strangles economic growth and robs individuals of their hopes and dreams for the future. The health of our company is inextricably tied to the health and well-being of our communities and our customers. As a regulated utility, the only way our company can grow is if the communities we serve are vibrant and growing and our customers are healthy, educated and productive.
Almost 10 years ago, Entergy Corporation launched a series of initiatives designed to help break the cycle of poverty that affect so many of our low-income customers. Our company has invested $35 million to support this goal. It includes direct aid to community organizations as well as communicating to elected officials, community leaders, nonprofit allies, the media and to needy customers about assistance available from Entergy and other sources, such as federal and private-sector funding -- all with the goal of improving the overall self-sufficiency of the low-income residents of our region.
Lately corporate social responsibility and the concept of “doing well by doing good” have come under fire from some quarters. Naysayers have questioned the impact that these efforts can have on the bottom line. Some even question whether corporations have any business in supporting social issues and causes. But for Entergy, the proof is in the pudding. At the same time that Entergy has invested significantly in the fight against poverty, the company has delivered the highest total shareholder return in our industry – 414.3 percent from December 1998 to December 2007 as compared to 134.1 percent for the Philadelphia Utility Index over the same period. Corporate social responsibility and the fight against poverty are a key part of our company’s strategy for success.
These cumulative efforts were honored in 2007 by the U.S. Chamber of Commerce with the Community Service Award. We were humbled to receive this prestigious award. Our hope is that the award will shed light on the poverty crisis in the South and will galvanize others to join in the struggle for change. Winning the award is not the end. But it is an important mile marker along the way. The promise of the New South is real and can be reached. But all sectors of society – public and private, government, businesses and NGOs -- must join forces to make it happen.
So, we ask again, are we there yet? The answer is no, but we can see it. Opportunity is just over the horizon.
Patty Riddlebarger is the Director, Corporate Social Responsibility, Entergy Corporation
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