strategy report

http://www.news.com.au/technology/apple/apple-still-strong-at-40-but-are-the-best-years-behind-it/news-story/95a73a32f3c6357be4730f9286927d0a

Stakeholders – shareholders, customers, suppliers, employees, local communities and governments

Innovation

Globalisation

Technology

Size

Shareholders

Challenging business strategy

and the

sustainable competitive advantage

4

The Tracker ID on the Thankyou product enables buyers to see the exact details of the project the product is assigned to fund.

thankyou gives 100% of the profits

from their products to helping people in need – nearly $4m since 2008

social enterprise: a business that trades for positive social impact

A sustainable enterprise through the triple bottom line

“Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs”

http://www.sellingsustainabilitysolutions.com/what ‐is‐sustainability/ and www.ey.com

6

http://responsibleinvestment.org/wp‐content/uploads/2015/08/2015_Benchmark_Factsheet_AUST_FINAL.pdf

http://probonoaustralia.com.au/news/2013/07/responsible‐investment‐funds‐top‐performers/

Deliver equal to but mostly better returns than the average mainstream fund in Australia

2014 RIAA

$650b+ invested in responsible funds in Australia

Fastest growth in the investment sector…

Business Ethics

· Ethics concerns principles of right or wrong conduct

· Business Ethics

The application of general ethical principles to the actions and decisions of businesses and the conduct of their personnel.

· Business ethics are not materially different from ethical principles in general because business actions have to be judged in the context of society’s standards of right and wrong.

http://www.teenvogue.com/story/emma‐watson‐sustainable‐style‐green‐carpet‐challenge

http://ethicalclothingaustralia.org.au/

8

http://www.sostella.com.au/

http://www.abc.net.au/news/2015‐10‐26/michelle‐kent‐so‐stella‐ethical‐fashion/6882120

"I've been growing and building this labour of

love for 12 years," “building the label, getting the right clientele, and promoting the difference between So Stella —a hand‐made ethical label

— as opposed to something mass‐produced," she said. Michelle said in today's "throw‐away" society, she would like to see more of a focus on sustainability in the fashion industry.

Melbourne Ethical and Sustainable Fashion Show on December 5–6

The green carpet challenge

7

https://theconversation.com/ethical‐fashion‐shoppers‐are‐scorned‐by‐others‐and‐the‐headlines‐dont‐help‐54403

Some consumers want to be

ignorant about their purchases, in this case jeans and a backpack, and they also negatively judge those who do seek out ethical products. Ohio State University research

By enhancing the

distinction between 'ethical' and 'non‐ethical', consumers not only have to consider their own personal image but also how these distinctions align with their social group

Fashion is a social activity—purchases are

made with an awareness of 'fitting in' by wearing attire appropriate for the situation and to coincide with one's social group.

A fashion revolution – shoppers want to feel good about what they buy

A Weak or Corrupt

Ethical Environment/Culture

Unethical

Strategies and Business Behaviors

Pressure for Short‐term

Performance

Faulty Oversight and Self

Dealing

The Drivers of Unethical Strategies and Business

Behaviour

Criminal

indictments and convictions

Sharp stock

price drops as investors lose confidence

Sizable Devastating image

civil fines and and stockholder lawsuits public relations hits

When Strategies Fail

Ethical Standards

Consequences of Ethically Questionable Strategies

Costs of Ethical Wrongdoing

4/12/2016

1

Why Should Company Strategies Be Ethical?

· The Moral Case for an Ethical Strategy:

Because a strategy that is unethical is morally wrong and reflects badly on the character of the firm’s personnel.

· The Business Case for Ethical Strategies:

Because an ethical strategy can be both good business and serve the self‐interest of shareholders.

Ethical Standards

Sources for Ethical Standards

The School of Ethical Integrated The School of Ethical Universalism Social Contracts Theory Relativism

MONASH BUSI1N4ESS SCHOOL

School of Ethical Universalism

· Ethical Universalism

Holds that common understandings across multiple cultures and countries about what constitutes right and wrong give rise to universal ethical standards that apply to all societies, all firms, and all businesspeople.

· Effect on Business Ethics

Whether a business‐related action is right or wrong is judged by universal standards.

School of Ethical Relativism

· Ethical Relativism

Holds that differing beliefs, customs, and behavioural norms across countries and cultures give rise to multiple sets of standards of what is ethically right or wrong.

· Effect on Business Ethics

Whether business‐related actions are right or wrong depends on local ethical standards.

The Use of

Local Morality to Guide Ethical Behavior

Relativism Equates to

Multiple Sets of Standards

The Payment

of Bribes and Kickbacks

The Use of Underage

Labor

Variations in

Ethical Standards

Examples of Ethical Relativism Issues

Integrative Social Contracts Theory

· Provides a middle‐ground balance between universalism and relativism.

· Posits that the collective views of multiple societies form universal (first order) ethical principles that all persons have a contractual duty to observe in all situations.

· Within the contract, cultures or groups can specify locally ethical (second‐order) actions.

· Effects on Ethical Standards:

· Adherence to universal ethical norms takes precedence over local norms.

· A local custom is not ethical if it violates universal ethical norms.

· Application of codes of ethics should first follow universal standards with allowance for local ethical diversity and influence.

· https://www.ahri.com.au/awards/ahri‐awards/hall‐of‐fame2/2013/2013‐

organisational‐winners/ian‐kiernan‐award‐for‐corporate‐social‐responsibility

Is a firm’s duty to operate in an honourable manner, provide good

working conditions for employees, encourage workforce diversity, be a good steward of the environment, and actively work to better the quality of life in the local communities where it operates and in society at large.

Corporate Social Responsibility (CSR)

The 5 Components of CSR Strategy

https://www.facebook.com/HP/app_338708549522319

2

1

Planet

People

Profit

The Triple Bottom Line

Sustainability & Sustainable Business Practices

· Sustainability

Is the relationship of a firm to its environment and its use of natural resources.

· Sustainable Business Practices

Are those practices of a firm that meet the needs of the present without compromising the ability to meet the needs of the future.

Business Case: Competitive Advantage

Moral Case: Stakeholder Benefits

Sustainability and Sustainable Business Practices

· Environmental Sustainability Strategy

· Consists of the firm’s deliberate actions to:

· Protect the environment.

· Provide for the longevity of natural resources.

· Maintain ecological support systems for future generations.

· Guard against ultimate endangerment of the planet.

Pursuing a Sustainable CSR Strategy in the Firm’s Value Chain Activities

http://www.unilever.co.uk/sustainable‐living‐2015/

Display good

corporate citizenship

Be a good

environmental steward

Operate Provide good work

ethically and legally conditions for

employees

The Implied Social Contract:

“To Do the Right Thing”

The Moral Case for CSR and Environmentally

Sustainable Business Practices

The Business Case for CSR and Environmentally Sustainable Business Practices

· Increased reputation and buyer patronage

· Reduced risk of reputation‐damaging incidents

· Lower turnover costs and enhanced employee recruiting and workforce retention

· Increased revenue enhancement opportunities due to support of CSR and sustainability

· CSR and sustainability best serve long‐term interests of shareholders

· * Porter, M.E., & Kramer, M. R. (2006). Strategy and Society the link between Competitive Advantage and Corporate Social Responsibility. Harvard Business Review, December, 78‐92.

United Nations Global Compact

https://www.unglobalcompact.org/what‐is‐gc/mission/principles

United Nations Global Compact

· Established in July 2000, the United Nations Global Compact is both a policy platform and a practical framework for businesses that are committed to aligning their operations and strategies with ten universally accepted principles in the areas of human rights, labour, environment and anti‐corruption.

· 70% of Global Compact companies are taking action to advance broader United Nations goals and issues – utilizing core business, social investment, advocacy and partnership strategies.

· 8,000 companies world‐wide + 4,000 non‐businesses (including Monash)