COM 362-Final Exam Review

COM 362-Final Exam Review - COM 362 Sustainability Final...

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COM 362 – Sustainability Final Exam Review Goal of sustainable business The simultaneous integration of economic prosperity in service of human development in ways that are aligned with, and restorative to, natural systems (just the triple bottom line) -involves strategies that: Benefit shareholders Stakeholders Today and tomorrow Internally externally Triple Bottom Line People, planet, profit -natural capital -social capital -economic capital Business environment -the company inside the industry and competitive industry -the industry and competitive industry inside the social environment -the social environment inside the natural environment Social Environment (Macro-forces: STEPG) -Political -Macro-economic -Globalization -Social/Stakeholder -Technology Changing business landscape -increasing pressure for companies to: integrate social and environment sustainability into strategy, product design, and operations throughout their entire value stream Socially Responsible Investment -investors care about where their money goes negative screens: eliminating firms based on investors’ values positive screens: selecting firms for positive attributes -environmental performance = good strategic and operational management capabilities -institutional investors recognize financial risks and demand data on carbon footprint Carbon Disclosure Project CSR Reporting -demand for increasing transparency Consumer Demand for CSR -demand for increasing transparency CEO reasons for addressing sustainability (McKinsey Report 2010) 1. reputation 2. business goals 3. efficiency & cost reduction 4. consumer expectations 5. growth Resource funnel -life supporting resources (& sinks) declining -consumption of life supporting resources rising
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Sinks History of Sustainability in Western industry Before 1970s → unprepared 1970s → reactive → compliance 1980s → anticipatory → beyond compliance 1990s → proactive →eco-efficiency 2000s → high integration → sustainability management (see Class 3 slide for detailed diagram) Sustainable Development development which meets the needs of the present generation without compromising the ability of the future generations to meet their needs Brundtland Commission, 1987 Sustainable Value Framework (SVP) (from Hart and Milstein’s “Creating sustainable value”) -links the challenges of global sustainability to the creation of shareholder value by the firm -firms must perform well simultaneously in all four quadrants of the model on a continuous basis if they are to maximize their shareholder value over time -drivers related to global sustainability 1. increasing industrialization and the material consumption, pollution, and waste generation that results 2. growth and interconnection of civil society stakeholders (like NGOs) 3. emerging technologies 4. increasing population, poverty, and inequity associated with globalization -creating sustainable value require that firms address each of the four broad sets of drivers -two uses: 1.
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COM 362-Final Exam Review - COM 362 Sustainability Final...

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