Beyond GreenPresent and Future Impacts on Your Brand Promise<br />Bruce HuttonDaniels College of Business<br />INSTITUTE F...
INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE<br />We Live in Interesting Times<br />Sustainable development is ...
We Live in Interesting Times<br />Never before in the 33 years of the World Economic Forum’s history has the situation in ...
Scope of our times<br />INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE<br /><ul><li> More people
 More cultures
 More connected
 More demanding</li></li></ul><li>Speaking of more demanding…<br />INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE...
During this presentation<br />INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE<br />60 babies will be born in the U...
In ten years, what will be the number one English-speaking country in the world? <br />INSTITUTE FOR LEADERSHIP AND ORGANI...
How many jobs will the average worker hold?<br />INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE<br />10 to 15<br ...
What’s the most important reason grad students choose a company?<br />INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMA...
INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE<br />Percentage of 21-year olds who’ve created content on the web?...
Years to build an audience of 50 million<br />INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE<br />Television<br /...
Scope of our times<br />INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE<br /><ul><li> Is sustainability purely an ...
The U.S. retires 426,000 cell phones<br />INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE<br />every day.<br />
The U.S. retires 426,000 cell phones<br />INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE<br />every day.<br />
Energizer produces 170,000 batteries<br />INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE<br />in 15 minutes.<br />
Energizer produces 170,000 batteries<br />INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE<br />in 15 minutes.<br />
Energizer produces 170,000 batteries<br />INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE<br />in 15 minutes.<br />
1 million plastic cups are used on U.S. flights<br />INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE<br />every si...
1 million plastic cups are used on U.S. flights<br />INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE<br />every si...
1 million plastic cups are used on U.S. flights<br />INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE<br />every si...
GMC sold 24,000 GMC Yukon Denali’s<br />INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE<br />in six weeks (2004).<...
24,000 GMC Yukon Denali’s sold<br />INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE<br />in six weeks (2004).<br />
INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE<br />Artist: Chris Jordan<br />Running the Numbers<br />An America...
Today’s Perfect Storm<br />INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE<br />Failure of corporate governance & ...
  Crisis of Inequality
  Crisis of Sustainability</li></ul>Global economic uncertainty<br />Geopolitical uncertainty – war, trade tension,anti-gl...
Sustainable Development: Cure for Myopia<br />“…development which meets the needs of the present without compromising the ...
A model for a better vision<br />
A model for a better vision<br />
A model for a better vision<br />
A model for a better vision<br />
A model for a better vision<br />
A model for a better vision<br />Revenue<br />Earnings<br />Cash Flow<br />Shareholder Return<br />Resource Efficiency<br ...
Marketing Meets Opportunity<br />Sustainable development means different things to different people.  But its essence:<br ...
Marketing Meets Opportunity<br />INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE<br />
Parallel Tracks<br />Marketing Concept<br />Satisfying needs of consumers and meeting organizational objectives<br />Marke...
Why are we here?<br />I think many people assume, wrongly, that a company exists solely to make money.  Money is an import...
Why are we here?<br />INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE<br />Make a<br />Living/Profit<br />Make a<b...
What Responsibility?<br />A corporation’s responsibility includes how the whole business is conducted every day.  It must ...
What Responsibility?<br />INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE<br />
Creating Value: The CSR Advantage<br />Organizations have a responsibility to try to find an approach to basic social prob...
Creating Value: The CSR Advantage<br />INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE<br />
What is CSR?<br />No universally accepted definition<br />Often used: Operating in a manner that meets or exceeds the ethi...
Events and Trends Responsible for Growth in CSR/Sustainable Development<br />Changing Expectations of Stakeholders<br />Sh...
What it means for your brand<br />
CSR/SD Impact Areas<br />Governance decisions<br />Product and service offerings<br />Research and development<br />Employ...
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  1. 1. Beyond GreenPresent and Future Impacts on Your Brand Promise<br />Bruce HuttonDaniels College of Business<br />INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE<br />
  2. 2. INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE<br />We Live in Interesting Times<br />Sustainable development is the only intellectually coherent, sufficiently inclusive, potentially mind-changing concept that gets even half-way close to capturing the true nature and urgency of the challenges that now confront the world. There really is no alternative.<br />— Jonathon Porritt (2001)<br />
  3. 3. We Live in Interesting Times<br />Never before in the 33 years of the World Economic Forum’s history has the situation in the world been so fragile, as complex and dangerous as this year. We feel that we are living in a new world – with new rules and new dangers – but certainly also with new opportunities … Today we need a new and enlarged concept of business leadership.<br />— Klaus Schwab, President, World Economic Forum, 2003<br />INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE<br />
  4. 4. Scope of our times<br />INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE<br /><ul><li> More people
  5. 5. More cultures
  6. 6. More connected
  7. 7. More demanding</li></li></ul><li>Speaking of more demanding…<br />INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE<br />
  8. 8. During this presentation<br />INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE<br />60 babies will be born in the U.S.<br />60<br />China?<br />244<br />India?<br />351<br />
  9. 9. In ten years, what will be the number one English-speaking country in the world? <br />INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE<br />China<br />How many Indian college graduates speak English?<br />100%<br />100%<br />0%<br />
  10. 10. How many jobs will the average worker hold?<br />INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE<br />10 to 15<br />By what age?<br />38<br />
  11. 11. What’s the most important reason grad students choose a company?<br />INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE<br />Stat, cite<br />
  12. 12. INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE<br />Percentage of 21-year olds who’ve created content on the web?<br />50%<br />Percentage of four-year-olds who’ve used a computer?<br />70%<br />
  13. 13. Years to build an audience of 50 million<br />INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE<br />Television<br />38<br />Radio<br />13<br />Internet<br />4<br />
  14. 14. Scope of our times<br />INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE<br /><ul><li> Is sustainability purely an environmental issue?</li></li></ul><li>The U.S. retires 426,000 cell phones<br />INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE<br />every day.<br />
  15. 15. The U.S. retires 426,000 cell phones<br />INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE<br />every day.<br />
  16. 16. The U.S. retires 426,000 cell phones<br />INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE<br />every day.<br />
  17. 17. Energizer produces 170,000 batteries<br />INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE<br />in 15 minutes.<br />
  18. 18. Energizer produces 170,000 batteries<br />INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE<br />in 15 minutes.<br />
  19. 19. Energizer produces 170,000 batteries<br />INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE<br />in 15 minutes.<br />
  20. 20. 1 million plastic cups are used on U.S. flights<br />INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE<br />every six hours.<br />
  21. 21. 1 million plastic cups are used on U.S. flights<br />INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE<br />every six hours.<br />
  22. 22. 1 million plastic cups are used on U.S. flights<br />INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE<br />every six hours.<br />
  23. 23. GMC sold 24,000 GMC Yukon Denali’s<br />INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE<br />in six weeks (2004).<br />
  24. 24. 24,000 GMC Yukon Denali’s sold<br />INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE<br />in six weeks (2004).<br />
  25. 25. INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE<br />Artist: Chris Jordan<br />Running the Numbers<br />An American Self-Portraitchrisjordan.com<br />
  26. 26. Today’s Perfect Storm<br />INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE<br />Failure of corporate governance & ethics<br /><ul><li> Crisis of Trust
  27. 27. Crisis of Inequality
  28. 28. Crisis of Sustainability</li></ul>Global economic uncertainty<br />Geopolitical uncertainty – war, trade tension,anti-globalization<br />On-going environmental challenges – climate change, water, etc.<br />
  29. 29. Sustainable Development: Cure for Myopia<br />“…development which meets the needs of the present without compromising the ability of future generations to meet their own needs.” Our Common Future, 1987.<br />“…adoption of strategies and activities that meet the needs of the enterprise and its stakeholders today while protecting, sustaining, and enhancing the human and natural resources that will be needed in the future.” International Institute for Sustainable Development, 1997.<br />“Integrating economic activity with environmental integrity, social concerns, and effective governance systems.” Breaking New Ground: Mining, Minerals and Sustainable Development, 2002.<br />INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE<br />
  30. 30. A model for a better vision<br />
  31. 31. A model for a better vision<br />
  32. 32. A model for a better vision<br />
  33. 33. A model for a better vision<br />
  34. 34. A model for a better vision<br />
  35. 35. A model for a better vision<br />Revenue<br />Earnings<br />Cash Flow<br />Shareholder Return<br />Resource Efficiency<br />Life Cycle Costing<br />Job Creation<br />Social Investment<br />Skills Enhancement<br />Zero Waste<br />Reduced Emission<br />Regulatory<br /> Compliance<br />Diversity<br />Human Rights<br />Community Outreach<br />Labor Standards<br />Safety & Health<br />Local Environment<br />Climate Change<br />
  36. 36. Marketing Meets Opportunity<br />Sustainable development means different things to different people. But its essence:<br />Meeting the needs of people today without compromising the ability of future generations to meet their own needs.<br />Broad view<br />Long term<br />Inclusive approach<br />Interdependent systems<br />INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE<br />
  37. 37. Marketing Meets Opportunity<br />INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE<br />
  38. 38. Parallel Tracks<br />Marketing Concept<br />Satisfying needs of consumers and meeting organizational objectives<br />Marketing Orientation<br />Collecting information, sharing across departments, using it to create customer value<br />Societal Marketing Concept<br />Satisfying customer needs in ways that provide for societal well-being<br />INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE<br />
  39. 39. Why are we here?<br />I think many people assume, wrongly, that a company exists solely to make money. Money is an important part of a company’s existence, if the company is any good. But a result is not a cause. We have to go deeper and find the real reason for our being. As we investigate this, we inevitably come to the conclusion that a group of people get together and exist as an institution that we call a company, so that they are able to accomplish something collectively that they could not accomplish separately--they make a contribution to society, a phrase which sounds trite but is fundamental.<br />— David Packard<br />INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE<br />
  40. 40. Why are we here?<br />INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE<br />Make a<br />Living/Profit<br />Make a<br />Difference<br />
  41. 41. What Responsibility?<br />A corporation’s responsibility includes how the whole business is conducted every day. It must be a thoughtful institution which rises above the bottom line to consider its actions on all, from shareholders to society at large. Its business activities must make social sense just as its social activities must make business sense.<br />-- Business Roundtable, 1981<br />Kyosei<br />--RyuzaburoKaku, Canon<br />INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE<br />
  42. 42. What Responsibility?<br />INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE<br />
  43. 43. Creating Value: The CSR Advantage<br />Organizations have a responsibility to try to find an approach to basic social problems which fits their competence and which, indeed, makes the social problem into an opportunity for the organization.<br />-- Peter Drucker, 1992<br />INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE<br />
  44. 44. Creating Value: The CSR Advantage<br />INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE<br />
  45. 45. What is CSR?<br />No universally accepted definition<br />Often used: Operating in a manner that meets or exceeds the ethical, legal, commercial, and public expectations that society has of business.<br />Alternative: Achieving commercial success in ways that honor ethical values and respect people, communities, and the natural environment.<br />INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE<br />
  46. 46. Events and Trends Responsible for Growth in CSR/Sustainable Development<br />Changing Expectations of Stakeholders<br />Shrinking Role of Government<br />Increased Customer Interest<br />Supply Chain Responsibility<br />Growing Investor Pressure<br />More Competitive Labor Markets<br />Demands for Increased Disclosure<br />New and Emerging Issues<br />
  47. 47. What it means for your brand<br />
  48. 48. CSR/SD Impact Areas<br />Governance decisions<br />Product and service offerings<br />Research and development<br />Employee practices<br />Capital investments, facility sites<br />Production processes<br />Relationships<br />Global market access<br />Investor relations<br />Marketing and communications<br />Community relations<br />Public policy advocacy<br />INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE<br />
  49. 49. Benefits of CSR/SD<br />Improve financial performance<br />Reduce operating costs<br />Enhance brand image and reputation<br />Increase customer loyalty and sales<br />Increase productivity and quality<br />Attract and retain employees<br />Reduce regulatory oversight<br />INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE<br />
  50. 50. INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE<br />Sustainable Development Process<br />
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