It has always been a little different, but that has always been part of its competitive edge. 3M has its own way of doing business, and these unique qualities help it stay ahead of the pack.

The company has been committed to innovation since it was first established in the early 1900s, and enjoys an enviable global presence as a leading diversified technology company.

Although most companies are primarily concerned with profit maximization through innovation, 3M has shifted its focus to something most are ignoring corporate social responsibility (CSR).

"CSR will become an important and powerful weapon that a company can use to sharpen its competitive edge," says Kenneth CH Yu, 3M China Region's managing director.

Branding is more important than ever in today's global market, because it helps companies enhance their public profiles. Many see quality products and services at competitive prices as solid bases upon which to build their brands.

"They are doing the right thing, but what would happen if all companies were providing the same high-quality products and services? There would be no difference between anyone," says Yu.

"But a company with a strong, socially responsible image would stand out. In other words, CSR would become another profit engine, and 3M wants to be at the forefront of that trend."

Mark Eadie, director of Environmental Resources Management, the largest independent environmental consultancy firm in the world, says that CSR is an issue that needs to be addressed. CSR can be broadly described as the way in which the private sector combines the social, environmental and economic goals of their business activities to contribute to the betterment of society.

As the world's most populous country and fastest growing economy, China's relationship with the natural environment has global implications. International attention has already heavily focused on the country's biggest challenge, which is to facilitate economic growth while protecting the environment.

Most multinational companies in China and other developing countries are concerned about the need to balance profits with sustainable practices. This is why CSR initiatives are playing an increasingly important role in corporate business strategies.

"Those actively moving forward or taking the lead in these (CSR initiatives) will enjoy greater protection in the long term," Yu says.

Local consumers have also become increasingly sensitive to the CSR records of the companies they buy products from.

"Gaining consumer confidence is also another big benefit for us," Yu says.

Several companies are already involved in national and local projects in China, including Bayer, Nokia and PepsiCo, and all of them have carried out a number of different CSR policies.

"Multinational companies such as Nokia have brought new concepts to China by promoting sustainable economic development," says Wang Zhile, director of the Multinational Corporation Research Centre under the Ministry of Commerce.

3M is particularly proud of its long-term commitment to sustainable development through environmental protection programmes, social responsibility and economic progress.

The company has always emphasized "protection of the social and natural environment" as one of its four core values.

"3M believes that active and responsible citizenship can make a successful company even stronger," Yu says.

In 1975, 3M became one of the first manufacturing companies to establish a formal Environmental Policy. This came at a time when many companies were ignoring environmental issues.

The company adopted its voluntary 3M Pollution Prevention Pays (3P) programme in the same year. The initiative was one of the first to advocate pollution prevention as both an environmental and competitive financial strategy. The 3P programme tried to eliminate pollution at the source through product reformulation, process modification, equipment redesign, recycling programmes and the reuse of waste materials.

"The programme has brought economic and environmental benefits for nearly 30 years," says Yu.

3M employees throughout the world had completed over 5600 3P projects by 2002, for total savings of US$10 billion. Sixteen of those projects were in China, and saved approximately US$6 million.

Several annual awards, including the 3M 3P Award and the 3M Chairman's Environment, Health and Safety Leadership Award, are given out in recognition of outstanding individual contributions.

"The awards are aimed at encouraging 3M employees who apply innovative concepts to continuously move the company toward sustainability," Yu says.

China commitment

The company has consistently implemented the same environmental protection policy it uses in other countries since it came to China in 1984 as the first wholly owned multinational outside of a Special Economic Zone, Yu says.

In 1994, 3M China became the first enterprise in China to install incineration oxidation technology in its factories to minimize harmful gas emissions.

In the early 1990s, 3M launched non-Cadmium commercial advertisement film, because products containing Cadmium are strictly forbidden in Europe. China is now the biggest importer of commercial advertisement film in the Asia-Pacific region. The company purchases raw materials for commercial advertisement film on the mainland because they are cheaper.

"Unfortunately, we find Cadmium in most raw materials here through quality testing," Yu says.

Although China does not have any anti-Cadmium regulations, 3M has stopped using it in its products.

"Environmental protection is always a priority, even before economic benefits. We have lost market share because our products are more expensive, but in the long run, we will benefit from this because it is important to respect both the environment and the interests of consumers," Yu says.

Last year the company donated US$3 million to the Southwest Forest Project, which is a joint programme between Conservation International and local governments aimed at investigating effective reforestation methods in Southwest China. 3M is the only company participating in the project.

"As an advocate and pioneer in environmental protection, 3M shares its environmental protection management experience with Chinese companies, and sponsors relevant projects in the hopes that more companies will jump on board," says Yu.

The government has recognized the company's contributions.

"We appreciate 3M's commitment and hope that more companies and organizations will join the effort to save the environment," says Li Luyun, deputy director of the Reforestation Department of the Administration.

(China Daily 01/23/2006 page3)