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cmm_session_6_compatibility_mode.pdf
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Session 6 – Sustainability
Sustainability
Learning objectives: • What is business sustainability? • What are some of the international guidelines for business sustainability, and how could these be effectively implemented?
• What is the relationship between sustainability and corporate governance?
• How can organisations change to become more sustainable?
• What are some of the current trends in business sustainability?
What is sustainability?
• Sustainability is the use of resources to enable society to satisfy current needs, without compromising the ability of future generations to meet these needs.
• Sustainable development meets the needs of the present without hurting future generations.
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© John Wiley and Sons Australia
Three pillars of sustainable development
Defining sustainability
• Sustainability results from activities that:
– extend the productive life of organisations and maintain high levels of corporate performance
– maintain decent levels of welfare for present and future generations
– enhance society’s ability to maintain itself to solve its major problems
– enhance the planet’s ability to maintain and renew the biosphere and protect all living species
Zero emissions
• Zero emissions occur when carbon or polluting emissions are reduced and/or offset so that there is no net addition of emissions that are harmful to the environment or climate, usually by the emitting source.
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Why sustainability?
• Business growth and urban growth have gone hand in hand.
• Industries, buildings and transportation systems depend on fossil fuels.
• The future lies with renewable energy.
• A renewable energy target is a percentage of total energy production that is generated by renewable sources.
Energy and the natural environment
• The quadruple bottom line is a measure of company performance covering results in terms of economic, social and environmental and cultural factors.
• Social justice is concerned with creating a more just and equitable world.
© John Wiley and Sons Australia
International sustainability guidelines for business
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The UN Global Compact
• The UN Global Compact provides ‘universal’ guidance to businesses in developing sustainable practices, and sets some standards in relation to businesses that aim to operate ethically.
• First ratified at the World Economics Forum in Davos, Switzerland, on 31st January 1999.
• It is the world’s largest corporate sustainability initiative.
© John Wiley and Sons Australia
The UN Global Compact
The UN Global Compact
• Steps to promote environmental responsibility include:
– redefining company vision, policies and strategies
– developing sustainability targets and indicators
– working with suppliers to improve environmental performance
– adopting voluntary charters, codes of conduct or practice internally
– ensuring transparency and unbiased dialogue with stakeholders.
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The Millennium Development Goals (MDG)
• The Millennium Development Goals are a UN‐sponsored set of eight time‐bound goals that aim to reduce global extreme poverty.
– To build economic and social sustainability amongst the poorest people in the world.
– Provide a focus for businesses as they work in partnership with governments and not‐for‐profit organisations in building global sustainability .
The Millennium Development Goals (MDG)
• Adopted by 189 UN member states to, by 2015: – eradicate extreme poverty and hunger – achieve universal primary education – promote gender equality and empower women – reduce child mortality – improve maternal health – combat HIV/AIDS, malaria and other diseases – ensure environmental sustainability – develop a global partnership for development.
Sustainability and organisations
• One approach to the problem of building consensus in organisations is the concept of shared value.
– The policies and operating practices that enhance the competitiveness of a company while simultaneously advancing the economic and social conditions in the communities in which it operates.
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© John Wiley and Sons Australia
Closed‐loop model of a sustainable business organisation
Corporate governance
• A major consideration in sustainability is how a company governs itself. The scope of governance includes:
– methods of decision‐making
– the ways in which stakeholders are included in the process
– their interests are represented
– the transparent, ethical principles that are applied to all decision‐making.
Organisational change: developing the sustainable firm
• Ethical consumerism is the practice of purchasing products and services produced in a way that minimises social and/or environmental damage, while avoiding products and services deemed to have a negative impact on society or the environment.
• Global Reporting Initiative promotes environmental, economic and social responsibility.
• The bottom of the pyramid – the poor are not victims rather, they are resilient and creative entrepreneurs.
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Incremental change
• Dunphy, Griffiths and Benn distinguish four phases of transition:
1. From non‐responsiveness to compliance.
2. From compliance to sustainable efficiency.
3. From efficiency to strategic productivity.
4. From strategic productivity to the sustaining corporation.
Current trends in business sustainability
• Alvin Toffler introduced the concept of waves of change in his book The Third Wave
– The First Wave was the agricultural revolution.
– The Second Wave was the Industrial Revolution.
– The Third Wave marks growing concern for balance and sustainability and is epitomised by a world view stressing the connectedness of individuals, cooperation and value creation.
Rio+20 Corporate Sustainability Forum
• The Rio+20 Corporate Sustainability Forum was a UN‐ sponsored forum comprising business, governments, academics and community activists that met in Rio de Janiero in 2012 to develop sustainability initiatives.
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Summary
Learning objectives: • What is business sustainability? • What are some of the international guidelines for business sustainability, and how could these be effectively implemented?
• What is the relationship between sustainability and corporate governance?
• How can organisations change to become more sustainable?
• What are some of the current trends in business sustainability?
