Sustainability Discussion Question
quanda09
SustainabilityandGlobalBusinessNotesfall2020.pptxSustainability and Global Business
What is Sustainability?
Most commonly accepted definition of sustainability:
“Development that meets the needs of the present without compromising the ability of future generations to meet their own needs.”
United Nation’s Brundtland Commission
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Max-Neff
Human Needs:
subsistence,
protection,
affection,
understanding,
participation,
creation,
identity and
freedom.
Global Drivers of Sustainability
Increasing Industrialization
Proliferation & Interconnection of Civil Stakeholders
Emerging Technology
Effects of Globalization- poverty, inequity, population explosion
There is a Hierarchy of Outcomes related to Sustainability
Environment
Economy
Society
Social
Economic
Environmental
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Why discuss this? To give you a comfort with the language and ability to negotiate with it.
Security
Oceans
Urban
Growth
Industry
Energy
Species &
Ecosystems
Population &
Human
Resources
Food
Scarcity
Economy
Sustainable
Development
Areas of focus in Our Common Future, UN World Commission on Environment and Development (1987)
Sustainability = Opportunity
“Welcome to the new world of sustainability. As resource supplies fail to keep up with burgeoning demand, companies will start treating sustainability as a central part of management rather than relegate it to a vaguely defined office of social responsibility. The world as a whole is on the verge of a new wave of innovation in resource management. And as with all innovation, this will create opportunities for companies that can help their customers address these concerns.” ..BCG
Katsuaki Watanabe, CEO of Toyota
"For us to become the genuine number one - in quality - we have to realize the dream vehicle, which makes the air cleaner, never injures people, makes people healthier and can run on a single tank of fuel between London and Istanbul."
For Discussion (possible essay question):
How is the notion of Innovation (tied to Sustainability) relevant to Freidman’s ideas about competing in a Flat World?
Business Benefits of Sustainability
License to Operate
Cost Reduction or Avoidance
Market Opportunity or Advantage
Employee Engagement
Ability to Seize the Innovation High Ground
Access to Investment Capital
Sustainability and Corporate Social Responsibility (CSR)
Strategies by which businesses and communities seek economic development approaches that also benefit the global and local environment and quality of life
Economy
Jobs, Prosperity, Wealth creation
Environment
Natural Resources Biodiversity
Society
Social Equity
Sense of community
Healthy Ecosystems
Thriving Local Economy
SUSTAINABLE DEVELOPMENT
Sustainable Development Venn Diagram
Triple Bottom Line
TBL“ or "3BL",
What is TBL?
An expanded spectrum of values and criteria for measuring organizational and societal success – economic, environmental, social.
In the private sector, a commitment to CSR implies a commitment to some form of TBL reporting.
The Triple Bottom Line is made up of "Social, Economic and Environmental"
"People, Planet, Profit "
People, Planet, Profit
Community
Natural and Built Environment
Individuals
Equity
Economy
Ecology
People
Profit
Planet
SYNERGY
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Why discuss this? To give you a comfort with the language and ability to negotiate with it.
Triple Bottom Line Accounting
Expanding the traditional reporting framework
Take into account environmental and social performance in addition to financial performance.
Company's responsibility to 'stakeholders' rather than shareholders.
Legislation
Legislation permitting corporations to adopt a 'Triple Bottom Line' is under consideration in some jurisdictions.
The triple bottom line has been adopted as a part of many companies’ Sustainability Strategy
What is triple bottom line reporting?
“At its narrowest TBL reporting is a framework
for measuring and reporting corporate
(organizational) performance against economic,
social and environmental parameters”
www.sustainability.com
A move from one dimensional economic
reporting to three dimensional economic, social
and environmental reporting
How is TBL reporting accomplished?
Economic
Generally Accepted Accounting Principles
Customers
Suppliers
Employees
Social
Bribery and corruption
Political contributions
Child labor
Security practices
Indigenous rights
Training and diversity
Environmental
Energy
Water
Biodiversity
Emissions, effluents, and waste
How organizations strategically manage CSR through triple bottom line reporting
TBL reporting enables organizations to:
Measure and manage their financial and non-financial
performance and impacts, or lack thereof
Have their performance and impacts verified
independently
Communicate effectively with consumers,
governments, investors, employees, other
stakeholders and watchdog groups
