Shaw forms sustainability council - Will focus on business excellence, community, eco stewardship
Article Number : 3273
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Date 5/21/2008 7:10:14 AM
Written By LGM & Associates Technical Flooring Services
View this article at: //floorbiz.com/BizResources/NPViewArticle.asp?ArticleID=3273
Abstract DALTON—To help ensure its position as a leader in the industry, the business world and the communities in which it has operations, Shaw Industries announced the formation of a Growth & Sustainability Council...
Article DALTON—To help ensure its position as a leader in the industry, the business world and the communities in which it has operations, Shaw Industries announced the formation of a Growth & Sustainability Council. Comprised of the mill’s division heads, the group is charged with developing strategic initiatives to advance the three key pillars in Shaw’s expanded Green Edge Sustainability Business Platform— corporate governance and social responsibility, operational and environmental excellence, and designing unique products and services.

Vance Bell, Shaw’s CEO, called the council “an action body. Sustainability is about driving growth, innovation and productivity throughout the value chain and, therefore, better serving our customers. The council will identify and prioritize key strategies and initiatives for company growth while embracing Shaw’s strong tradition of sustainability.”

Rick Ramirez, vice president of sustainability and environmental affairs and chairman of the council, said the group will officially meet four times a year to set strategic goals, but there will be additional meetings within work teams as defined by those goals. This includes areas such as energy reduction, waste reduction and other key areas. “It’s not just about environmental initiatives. Rather, the council is empowered to look at all issues to make sure we are a better all-round company.”

The reason the division heads are making up the council is “all 30,000-plus of Shaw’s employees report to one of these people. The idea is to engage the people closest to the various areas.”

As an example, Ramirez pointed to the Shaw’s commitment to the U.S. Department of Energy for a 25% reduction in energy intensity over the next 10 years as part of a newly established program in which the mill was invited to be a charter member. Shaw will formally sign on to the initiative in June.

“In a company our size there are many ways to reduce energy,” he explained. “It will be up to the council to choose the best options while still allowing us to meet business performances, and customer and community obligations.”

The council is being charged to take control and brainstorm, Ramirez noted. The goal is to find a few major things over certain periods of time, allowing Shaw to achieve major sustainable growth along the pillars set in its business platform. “We don’t want to pick a hundred things, just main ones to help us move forward. Let’s focus on the big things that matter, such as energy, waste management, resource recovery, green products.”

The council will report to Shaw’s executive team consisting of Bell, president Randy Merritt and CFO Ken Jackson, along with Hal Long, executive vice president of operations, who will also serve as the council’s liaison.

Outside advice

In addition, a professional facilitator, Dr. Bruce Piasecki, author of “World Inc.” and president of the AHC Group, is assisting in organizing and developing critical information for the council. Piasecki also worked with Toyota in developing the car maker’s hybrid strategy.

Ramirez added the group will bring in experts from outside the company as needed. “For example, in the area of renewable energy to help educate us on new developments and provide various options and benefits for us to look at.”
This includes other stakeholder groups, such as environmental organizations to gauge their input on various issues the company is considering.

And, he expects the council to call on a customer panel to better understand their wants and needs as well as to find out what sustainable means to them so Shaw can “be a better supplier.”

The 15-member council is comprised of Bill Barron, vice president of manufacturing; Tim Baucom, vice president of commercial; Jeff Brown, vice president of rugs; Chester Chaffin, vice president of enterprise excellence; Greg Cook, director of global sourcing; Gerald Embry, vice president of administration/controller; John Godwin, vice president of residential; Rick Hooper, chief counsel; Brenda Knowles, vice president of commercial marketing; Roddy McKaig, vice president/CIO; David Morgan, vice president of logistics; Reggie Newton, vice president of residential marketing; Paul Richard, vice president of human resources; Scott Sandlin, vice president of hard surfaces business development, and Pete Sigmon, vice president of innovation.

Along with helping to position the company for long-term success, Ramirez said it ensures Shaw’s various divisions are aligned with one another. “This allows everyone to be on the same page. It’s not very common to get all 15 of these people together at one time. They’re involved in running their respective business units on a day-to-day basis. Sure, there are times when three or four will meet but to have them all come together is a big deal.”