AT&T. (NYSE:T)
(http://www.att.com/gen/landing-pages?pid=3309)
Background
$118 Bil Revenue (07)
$18 Bil Net income (07)
307,000 Employees Worldwide
Operations in 200+ countries
Major Services Provided:
Wired phone service (for about 100 years)
73 Million wireless customers
Exclusive carrier for iPhones
Largest provider of broadband
71,000 hotspots plus 7000 Starbucks for Wi-Fi
Largest VPN and VoIP IP communications network
175 Million print directories plus Yellowpages.com
Largest US provider of local and long distance voice services
AT&T U-Verse – NEWEST SERVICE (“3 Screen Technology: mobile, PC and TV)
General Information
AT&T truly qualifies for the behemoth label. This $118 Billion company, with 307,000 employees is one of the largest companies around. For over 100 years, this company set its sites on being a telecommunication giant – and it’s been there and back, several times over. Through break-ups, spin-offs and acquisitions, AT&T has again emerged from the dust as the clear “leader” in the telecom battles.
However, “leader” is used only to identify AT&T on the money charts. In all other respects, AT&T has failed to be a true world leader…or even a good corporate citizen. For AT&T, it’s been primarily about the money and the behemoth label than just about anything else.
The latest proof is found in AT&T’s new U-Verse project. AT&T reinvented itself once again in 2005 when it decided to take-on not only the wireless companies but the cable and satellite companies as well. U-Verse is an attempt to be the largest provider of “3 screen technology” – content that is delivered to handheld devices, computers and TV all in the same service. The stock soared. If you’re a stockholder, this was good news. Though to most everyone else, it wasn’t. For starters, the service requires a nationwide upgrade to AT&T’s existing network. To accomplish this, AT&T is installing thousands upon thousands of VRAD -- or Video Ready Access Device – boxes in nearly every state. Over 3500 will be going into Chicago proper. Evanston, for example, will see 100 boxes. These refrigerator-sized boxes popping-up on parkways everywhere are now the source of a nationwide outrage which is rocking state legislators and local citizens. All in the name of competition (competitors are NOT using these boxes – they have chosen a more expensive and much less intrusive solution), AT&T has made the single largest stink in the digital era.
Here’s a list of their claimed initiatives other than making oodles of dough:
Sustainability Initiatives
- California Climate Action Registry, 2005 – though no actual reports of carbon emissions or progress since then
- Recently joined Green Grid, consortium to discuss data center energy use;
- Recently announced that it is adding 100 alternative fuel vehicles to fleet (CNG and Electric Hybrid) by June 09 to reduce fuel consumption by 34,000 gallons
- 2001-2004 reduction in gasoline consumption by 10 percent (fewer trucks, routes?)
- 2001-2004 reduction in diesel fuel consumption by 20 percent (fewer trucks, routes?)
- Yellow Pages printed on paper containing 40% post consumer content with intent to be recycled
- Paperless billing system (driven by whom or what?)
- Recycles used oil and antifreeze
- 25% improvement in efficiencies of facilities – no actual reports of which facilities or how it has achieved this
- Developed Journal of Industrial Ecology – won an award from the journal that IT CREATED
- 2008 – announced Aspire program; $100MM to address high school success and college readiness programs – job training program.
- 2007 – terminated the Excelerator program, giving innovation grants related to helping not-for-profits build stronger communities
Summary
Many of the world’s largest companies now seem to “get it,” meaning that they understand that they have certain responsibilities to take action against over-consumption of energy, carbon emissions, waste, water usage and a commitment to people and communities whom they touch. Unfortunately, AT&T does not seem to be one of those companies. Few of these world’s largest companies directly connect to the world’s citizens like AT&T does. As the largest provider of consumer telecom services, we might expect a strong commitment to social responsibility, if not also environmental responsibility. However, it’s simply not so.
The stated environmental and social initiatives reported by this company qualify as being lame at best. They haven't even issued a new corporate social responsibility report since 2006 – perhaps because they’ve been too busy reaping $18 Billion in profit with their new U-Verse expansion – and with tremendous cost to the consumer who pays for the very land upon which they’ve planted their very unsightly VRAD boxes.
This is a missed opportunity for AT&T. I’m confident that if they turned $25 Billion in profit, nobody would care so long as they were returning the favor with more respect for the people they serve and the planet they serve them upon.
The SKAN Factor Sustainability Rating Trend: DOWNWARD
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