The presentation discusses strategies for corporate sustainability and value creation. It outlines the need for transformation, innovation, efficiency, protecting reputation, and reducing risk in changing markets. Achieving sustainability requires leadership, engagement, integration of sustainability into operations, accountability, collaboration, and transparency. Case studies of companies like Unilever and their executives demonstrate moving sustainability from a separate function to core to business strategy and operations. The goal is for companies to progress from short-term profit focused approaches to more enlightened approaches that consider stakeholders and environmental/social impacts.
1 of 53
Download to read offline
More Related Content
Charles O'Malley presentation IOD India 12 October 2012
1. Presentation at IOD India 3rd Global Summit on Sustainability
11 October 2012
Board Strategies
and Governance
for Sustainable
Value Creation
Charles OMalley
26. Transformation Changing markets and economic and social systems
Innovation Creating opportunities
Efficiency Reducing costs
Reputation Protecting and improving reputation
Risk Reducing risk
Graphic: from Spiral Dynamics Adapted from : Bieker, T. , Institute for Economy and the Environment, University of St. Gallen 2002
27. Transformation Shaper of society
Innovation Solving stakeholder challenges
Efficiency
Enlightened self-interest
Reputation
Short termist and laissez faire
Risk
Source: Johnson, G. Exploring Corporate Strategy. Pearson Education, 2007
32. Paul Polman: Unilever was an early adopter of the
principles of sustainability... we have embedded this
thinking into the day-to-day activities of all our brands.
Leadership We are not going further and committing to meet our
ambitions for future growth objectives without
increasing the overall environmental impact of the
company across its value chain.
Engagement
Peter Bakker: Beyond just being a
Integration CEO, I agree we all need to become
much more concerned citizens of this
planet. Its not going in the right direction
at the moment.
Accountability
Indra Nooyi: Our basic belief that companies today
Collaboration must marry performance with ethical concerns is
resonating more than ever before... This acknowledges
that businesses have a responsibility to the
communities in which they operate, to the consumers
Transparency they serve and to the environment whose resources
they use.
48. Transformation Changing markets and economic and social systems
Innovation Creating opportunities
Efficiency Reducing costs
Reputation Protecting and improving reputation
Risk Reducing risk
Graphic: from Spiral Dynamics Adapted from : Bieker, T. , Institute for Economy and the Environment, University of St. Gallen 2002
In 2008 New Scientist ran a feature on The Folly of Growth
Source: Etheridge et al. (1996) J. Geophys. Res. 101:4115-4128 Methane heat retention capacity is 25 times that of CO2Source: Blunier et al. (1993) J. Geophys. Res. 20:2219-2222 Nitrousoxideheat retention capacity is 200-300 times that of CO2Source: Machida et al. (1995) Geophys. Res. Lett. 22:2921-2924
northern hemisphere average surface temperature anomalies. Source: Mann et al. (1999) Geophys. Res. Lett. 26(6):759-762
Shiklomanov (1990) Global water resources
decadal frequency of great floods (one-in-100-year events) after 1860 for basins larger than 200 000 km2 with observations that span at least 30 years. Source: Milly et al. (2002) Nature 415:514-517
percentage of global fisheries either fully exploited, overfished or collapsed. Source: FAOSTAT (2002) Statistical databases
loss of tropical rainforest and woodland, as estimated for tropical Africa, Latin America and South and Southeast Asia. Sources: Richards (1990) In: The Earth as transformed by human action, Cambridge University Press; WRI (1990) Forest and rangelands
mathematically calculated rate of extinction. Source: Wilson (1992) The diversity of life, the Penguin Press
http://www.igbp.net/download/18.1b8ae20512db692f2a680007761/IGBP_ExecSummary_eng.pdfGlobal Change and the Earth System: A Planet Under Pressure (2004), W. Steffen, A. Sanderson, P.D. Tyson, J. J辰ger et al, published by Springer-Verlag Berlin Heidelberg New York. ISBN 3-540-40800-2.
Source: Global Footprint Network and WBCSD Vision 2050, 2010
Image: from Vision 2050 report by WBCSD
What became clear to all of us during the credit crunch, is that no one is driving the trainhttp://www.theinnercirclemissives.com/2011/05/runaway-train.htmlhttp://theragblog.blogspot.co.uk/2009/11/barack-obama-stop-runaway-train.html
And yet despite these worrying trends, politicians still have 99% of their attention on getting the economy moving again, and only 1% (if that) focused on the systemic issues in terms of the environmenthttp://www.spokesman.com/blogs/commcomm/2009/nov/18/onboard-uss-titanic-sort/
CR is anchored at top management, leading to high credibility of CR efforts both internally and externallyTone from the top is visible and palpable in both written guidelines and principles as well as strategic direction and activitiesCorporate culture is positively influenced by strong commitment; reinforcing responsible business behaviour of all employeesTNT example:CEO und Board members are very present and active in media and public sphere with regards to sustainability / CSR topics, especially in the companys focus areasFormer CEO Peter Bakker has received various prestigious awards for his leadership and personal commitment to advance and combine sustainability with long-term business success This tone from the top is reflected throughout the company, in both written commitments as well as actions taken: vision and mission, business principles, core values and qualities and a credible pledge to protect the environment, promote social values and to conduct operations with integrity and respect for the interests of all stakeholders
Systematic identification of relevant stakeholder groups and their concernsInstitutionalized interactions and strategic partnerships to include concerns and formulate solutionsSystematic internal and external reporting on how concerns have been taken into account and progress was made
Integrated into every part of the business: corporate strategy, finance, marketing, operations/production, procurement, supply chain management, human resources, facilities management, internal audit, risk management, legal, etc.CR is aligned with corporate strategy in which CR is perceived as a buinss driverCR is incorporated in products & services, taking life-cycle considerations into account CR is embedded throughout operations, e.g. in purchasing, investments, Human Resources, facility managementEmployee engagement as strong motivational factor for employees, increasing both performance and loyalty towards the firmEngaged employees communicate better both internally improving teamwork and innovation as well as externally as company and CR ambassadors
Clearly defined responsibilities, decision-making powers and processes for CR-related issues throughout the companyCentral team has the role as initiator and coordinator; CR activities are performed by business functions / line managementThe lines and divisions are also responsible for achievements or not reaching set targetsClear and transparent metrics (qualitative and quantitative) tailored to the business and strategy allow for a continuous and transparent measurement, monitoring and controlling of CR-related activitiesTargets are set in all dimensions of sustainability and at all levels; reported on publicly and progress is measured and reported consistently
Systematic internal and external reportingDisclosure of success stories as well as remaining CR challengesDisclosure of targetsDefinition of relevant external ratings and focused management of a companys performance in these ratingsConsistent CR message through all channels and audiences (AR, road show to investors, Online, social media, etc)
We face unprecedented challenges
We need to find a way of reconciling our perpetual growth economic model with a planet of finite resources
CR is anchored at top management, leading to high credibility of CR efforts both internally and externallyTone from the top is visible and palpable in both written guidelines and principles as well as strategic direction and activitiesCorporate culture is positively influenced by strong commitment; reinforcing responsible business behaviour of all employeesTNT example:CEO und Board members are very present and active in media and public sphere with regards to sustainability / CSR topics, especially in the companys focus areasFormer CEO Peter Bakker has received various prestigious awards for his leadership and personal commitment to advance and combine sustainability with long-term business success This tone from the top is reflected throughout the company, in both written commitments as well as actions taken: vision and mission, business principles, core values and qualities and a credible pledge to protect the environment, promote social values and to conduct operations with integrity and respect for the interests of all stakeholders