The triple bottom line not a zero sum game by cb bhattacharya

  • 337 views
Uploaded on

In his webcast, Professor Bhattacharya will point out that it is not enough nowadays for companies to "do well" (Profit). Companies need to "do good" as well for communities (People) and the …

In his webcast, Professor Bhattacharya will point out that it is not enough nowadays for companies to "do well" (Profit). Companies need to "do good" as well for communities (People) and the environment (Planet). Achieving this triple bottom line (People, Planet, Profit) is not a zero sum game but these linkages and strategies are often underexplored as most companies are largely in the dark when it comes to understanding how their stakeholders think and feel about their Corporate Responsibility (CR) programs. Based on the research in his book, Prof. Bhattacharya suggests that stakeholders' responses to a company's CR initiatives are driven by three levers: Understanding, Usefulness and Unity (the 3U's model). Drawing on empirical research insights, Prof. Bhattacharya points out how companies can maximize the value of their CR initiatives by fostering strong stakeholder relationships to develop, implement, and evaluate compelling social responsibility programs that generate value for both the company and society. (https://conferenceboard.adobeconnect.com/p18cj63dm07/)

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads

Views

Total Views
337
On Slideshare
0
From Embeds
0
Number of Embeds
0

Actions

Shares
Downloads
4
Comments
0
Likes
0

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. Conference KeyNotes The Triple Bottom Line: Not a Zero Sum Game from the 2012 Corporate Citizenship and Sustainability Conference1 © 2012 The Conference Board, Inc. | www.conferenceboard.org
  • 2. Introduction Thomas Singer is a researcher in corporate leadership at The Conference Board. His research focuses on corporate social responsibility and sustainability issues. In addition to his work at The Conference Board, Singer serves as an independent consultant advising on corporate sustainability strategy. Prior to joining The Conference Board, Singer worked with Blu Skye Sustainability Consulting and SustainAbility, helping clients embed sustainability into their core business. Over his career, he has supported engagements with industry leaders across sectors, focusing on strategy development, opportunity assessment, competitive analysis, and stakeholder engagement. He began his career as a management consultant with Kaiser Associates, advising clients on white space opportunities, competitive analysis, and benchmarking. Singer is a graduate of Tuft University.2 © 2012 The Conference Board, Inc. | www.conferenceboard.org
  • 3. Introduction CB Bhattacharya is Dean of International Relations and E.ON Chair Professor in Corporate Responsibility at ESMT European School of Management and Technology in Berlin, Germany. He is an international expert in business strategy innovation aimed at increasing both business and social value. His research and teaching focuses specifically on how companies can use underleveraged “intangible assets” such as corporate identity and reputation, membership and brand communities, and corporate social responsibility and sustainability to strengthen stakeholder relationships.3 © 2012 The Conference Board, Inc. | www.conferenceboard.org
  • 4. The Triple Bottom Line: Not a Zero Sum Game The Conference Board Corporate Citizenship & Sustainability ConferenceCB Bhattacharya, Keynote WebcastDean of International RelationsE.ON Chair inCorporate Responsibility October 9, 2012ESMT, European School ofManagement and Technology
  • 5. 10/19/2012 © C.B. Bhattacharya: All rights reserved 5
  • 6. Doing well by doing good Doing well Doing Well Doing Well Doing Well Triple Bottom Line Strategic CR Doing good Doing Good CR “A company’s long-term success, and sometimes even existence, is inextricably tied to its stewardship of not just its own well-being but also of the natural and social environment in which it operates.”10/19/2012 © C.B. Bhattacharya: All rights reserved 6
  • 7. Two routes to CR value: direct & indirect Business Outcomes CR CR Societal Value Inputs Outcomes ? Stakeholder Reactions (Economic, Social, Environmental)10/19/2012 © C.B. Bhattacharya: All rights reserved 7
  • 8. Direct route to CR value“Reducing your emissions goes hand-in-hand with reducing your costs.”(Bob Gordon, British Retail Consortium)Marks & Spencers Plan A Investment £40 million Revenue £50 millionhttp://www.youtube.com/watch?v=aIrHzxkiaeE&feature=related • Reduced total carbon emissions by 8 percent • Improved store energy efficiency by 19 percent • Reduced store refrigeration emissions by 18 percent • Improved general merchandise delivery fleet efficiency by 30 percent10/19/2012 © C.B. Bhattacharya: All rights reserved 8
  • 9. Stakeholder reactions to CR CR INPUTS CR VALUE Domain Business Investment Social Level Environmental10/19/2012 © C.B. Bhattacharya: All rights reserved 9
  • 10. Research overview • Mix of qualitative and quantitative methods − Focus groups, depth interviews − Surveys, experiments − Secondary data analysis • Multiple companies − Procter & Gamble, General Mills, Walmart, Target, Danone, more • Stakeholder groups: consumers and employees (several 000’s) • Geographic focus: U.S. and Europe10/19/2012 © C.B. Bhattacharya: All rights reserved 10
  • 11. How stakeholders interpret CR Unity10/19/201211 © C.B. Bhattacharya: All rights reserved
  • 12. Understanding  Awareness  Attributions Participants perceive both intrinsic (care for the community) and extrinsic (way to market products) motives “It’s a form of marketing to get their products out but it also helps the community.” “They want to help the community but also to make a name for themselves and gain popularity.” Endorse extrinsic motive “It‘s good because they are going to help us along with themselves.”  Effectiveness10/19/2012 © C.B. Bhattacharya: All rights reserved 12
  • 13. Usefulness CR initiatives that fulfill “customer” needs create more value • Functional benefits • Identity related benefits Leads to well-being, loyalty, positive word of mouth • “One of the things that keeps me here is some of the positive things that we do in the community.”10/19/2012 © C.B. Bhattacharya: All rights reserved 13
  • 14. Unity10/19/2012 © C.B. Bhattacharya: All rights reserved 14
  • 15. Test of 3U’s framework - employees Understanding CR Value CR Associations -.94** .11** Intent to Leave CR Efficacy Unity .05** .19** Identification Work Effort .12** Usefulness .98** Loyalty CR .08** Self-esteem CR Work-Home Integration10/19/2012 © C.B. Bhattacharya: All rights reserved 15
  • 16. Yogurt studyTest of 3U’s framework - customers Understanding CR Value CR .14** Efficacy .66** Purchase intent CR Genuine Concern Unity .04** .40** Identification Premium Usefulness .51** .16** Resilience to Negative Self-esteem Information10/19/2012 © C.B. Bhattacharya: All rights reserved 16
  • 17. CR integral part of business strategy High Innovativeness 3 High Product Quality 3 Capability Low Product Quality Low Innovativeness CapabilityMarket Value Market Value Tobins q 2 2 1 1 0 0 2 4 6 8 2 4 6 8 CR Ratings CR Ratings Luo & Bhattacharya (2006) 10/19/2012 © C.B. Bhattacharya: All rights reserved 17
  • 18. Overall insight Does it pay to be good? - Two words: “It Depends”!10/19/2012 © C.B. Bhattacharya: All rights reserved 18
  • 19. Mainstreaming sustainability:Sustainable Business Roundtable (SBRT)Why SBRT? Value Proposition• Managers unclear how to use • Pair-up sustainability officers with other sustainability to their advantage departments (Procurement, HR, IR…) to foster collaboration• Sustainability department “outshouted” by other departments with shorter term • Develop shared understanding to pressures mainstream sustainability10/19/2012 © C.B. Bhattacharya: All rights reserved 19
  • 20. Thank You!Professor CB Bhattacharya ESMT European School of Management and TechnologyE.ON Chair Schlossplatz 1in Corporate Responsibility 10178 BerlinDean of International Relations Phone: +49 (0) 30 21231-1528 Fax: +49 (0) 30 21231-1281 cb@esmt.org www.esmt.org10/19/2012 © C.B. Bhattacharya: All rights reserved 20