Beyond Business as Usual

The OpportunitiesBeyond Business as UsualRichard BrubakerJuly 2012

Business As Usual Defined1. Growth is the goal2. Economic and Business Model are heaving subsidized3. Externalities of models are someone else’s problem4. Responsibility and Accountability are mutually independent

The Tangible Byproducts

Byproducts With Lasting Impact

CatalystsFor Change

Increased Tangibility of Issues

Rise of New Stakeholders Industry Rating Assoc Agency Competitor Investors Government Suppliers Customers FirmGeneral Distributors Public Staff Management Founders NGO Media Community

Speed of Social MediaTraditional Mediums Are Being Replaced by:Positive messagingThat could be managed

Rising Cost of ExternalitiesIn economics, an externality, or transaction spillover, is a costor benefit that is not transmitted through prices[1] and isincurred by a party who was not involved as either a buyer orseller of the goods or services causing the cost or benefit.[2]The cost of an externality is a negative externality, or externalcost, while the benefit of an externality is a positiveexternality, or external benefit.- Wikipedia

Fundamental Questions1. What is Severity of the Problem2. When do we/ they need to act3. Who should/ will lead4. How much will it cost “us”

New Modelsof Business

Shifting of Business as Usualillegal Bad B.A.U. CSR Sustainability Bad/ illegal New B.A.U Sustainable Practice Leaders

Program Based Recalibration

System Based OverhaulsMoving Past traditional definitions and appearances of “CSR” and “Sustainability” Changing Business Model  Paying full price of operations  Rebalancing risk / reward equation  Improving labor conditions and standards  Addressing issues of governance and exploitation Changing Product Portfolios  Focus on quality and safety vs. price and speed  Moving away from environmentally damaging processes  Working to improve industry standards Developing Communities  Internally and Externally  Creating core values that align with values of employees  Moving away from value system that places citizens before consumers

Enterprises with Purpose

The Perfect Model

The Future Of Business • Growth is the achieved through quality • Economic and Business Model are full cost • Externalities of models are the firm’s problem • Responsibility and Accountability are aligned

“In the end, environmental, social and economic sustainability cannot beseparated. A sustainable planet must include a sustainable humancivilization – resilient human systems that respect the complicatedrelationships among poverty, human rights, economicdevelopment, environmental health, and human success”- Institute for the Future, 2008Richard Brubakerrich@collectiveresponsibility.org@ChinaCSR

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Beyond Business as Usual

by Collective Responsibility on Jul 27, 2012

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