The document discusses sustainability and responsible business practices. It argues that free markets require rules and regulations to function properly, and that moral values also help capitalism succeed. Good governance is needed, not just laws, to ensure individuals and businesses face consequences. The role of the state is to regulate how individuals run businesses for the public good.

1. • www.doughtycentre.info
“Sustainability and Responsibility at the Heart of Successful Management.”

3. Financial Times EDITORIAL - January 26, 2012 -
Ruling capitalism
• “The excesses that drove the bubble and the
breakdown that followed happened because leaders
forgot that free enterprise requires rules. ……
• Good ground rules are a public good; as such they
are the responsibility of states. Capitalism needs the
state: not to run the economy but to regulate how
individuals run it and have them face the
consequences of their actions. Governments did not
tend to this essential function – least of all in
financial markets…”

4. Financial Times EDITORIAL - January 26, 2012 -
Ruling capitalism
• “laws and regulations are not all.
Since Adam Smith, intelligent
defenders of free markets have
known that capitalism works best
when people’s free choices are also
governed by moral values. The
cardinal virtue for capitalists is to
support rules that make capitalism
a success.”

7. Source: Optimum Population Trust: www.optimumpopulation.org

9. 30 – 45% of the total population of countries like Japan, Germany
and France will be aged 60+, while countries like China and
Mexico will experience a tripling of this segment by 2050
Projected Population aged 60+ as percentage of overall population in 2010, 2030 and 2050
2010 2030 2050
US 18.2 25.3 27.4
Mexico 9.4 17.7 28.2
UK 22.7 27.2 28.8 Almost
tripling of
Brazil 10.2 18.9 29.3 Population
aged 60+ by
China 12.3 23.4 31.1 2050
Russia 18.1 25.0 31.7
France 23.2 30.4 32.6
Spain 22.4 30.1 37.5 30 – 45% of total
Population will
Italy 26.6 34.8 39.1 be aged 60+ in
2050
Germany 26.0 36.5 39.5
Japan 30.5 37.9 44.2
Source: United Nations (2009) . World Population Prospects.
9

10. Growth: The global middle class is rapidly expanding
100-150 million people
will join the world’s
middle class…every
year between now and
2030

11. The Perfect Storm?
Prof. Sir John Beddington – UK
Government Chief Scientist
Increased demand
50% by 2030 (IEA)
Energy
1. Increasing
population
2. Increasing levels of Climate
urbanisation Change
3. The rightful goal to
alleviate poverty Food Water
Increased demand Increased demand
4. Climate Change 50% by 2030 30% by 2030
(FAO) (IFPRI)

12. It is one of those moments where a
scientific realisation, like
Copernicus grasping that the
Earth goes round the sun, could
fundamentally change people’s
The Economist
view of things far beyond science.
It means more than rewriting some
textbooks. It means thinking
afresh about the relationship
between people and their world
and acting accordingly
Source: The Economist, May 26th 2011

13. Welcome to the Anthropocene The Economist
• For humans to be intimately involved in
many interconnected processes at a
planetary scale carries huge risks.
Source: The Economist, May 26th 2011

14. THE FOLLOWING NINE SLIDES ARE FROM

15. Stress Zones

16. Environmental Stress - Water
Water Scarcity

17. Environmental Stress - Population Growth
Water scarcity Demography

18. Environmental Stress - Crop Decline
Water scarcity Demography Crop decline

19. Environmental Stress - Hunger
Water scarcity Demography Crop decline Hunger
Hunger Information Source: UN Millennium Development Goals 2005 - Criteria - Developing Countries more than 20% of population
undernourished.

20. Environmental Stress - Thermal Expansion
Water scarcity Demography Crop decline Hunger Coastal risk
Hunger Information Source: UN Millennium Development Goals 2005 - Criteria - Developing Countries more than 20% of population
undernourished.

21. Multiple Stress Zones
Water scarcity Demography Crop decline Hunger Coastal risk
Hunger Information Source: UN Millennium Development Goals 2005 - Criteria - Developing Countries more than 20% of population
undernourished.

22. Recent Conflict
Hunger Information Source: UN Millennium Development Goals 2005 - Criteria - Developing Countries more than 20% of population
undernourished.

23. Islam
Hunger Information Source: UN Millennium Development Goals 2005 - Criteria - Developing Countries more than 20% of population
undernourished.

24. Meeting human demands within the
ecological limits of the planet
Meeting the dual goals of sustainability
High human development and low ecological impact
UNDP threshold for high human development
12
African countries
Asian countries
EcologicalFootprint (global hectaresper person)
European countries 10
Latin American and
Caribbean countries
North American countries 8
Oceanian countries
6
World averagebiocapacity per person in 1961 4
World averagebiocapacity per person in 2006 2
High human development
within the Earth’slimits
0.2 0.4 0.6 0.8 1.0
Source: © Global Footprint Network (2009).
United Nations Human Development Index Data from Global Footprint Network National
Footprint Accounts, 2009 Edition; UNDP
Human Development Report, 2009

25. • "...the responsibility of enterprises for their impacts on
society
• EU Commission Communication on CSR Oct 2011
• http://ec.europa.eu/enterprise/policies/sustainable-
business/files/csr/new-csr/act_en.pdf
• For further definitions:
www.som.cranfield.ac.uk/som/p14347/Research/Rese
arch-Centres/Doughty-Centre-Home/About-
Us/Defining-CR

26. Stages of Corporate
Responsibility Maturity Five Stages
Stage 1 Denier
Stage 2 Complier
Stage 3 Risk-mitigator
Stage 4 Opportunity maximiser
Stage 5 Champion
Copyright © Cranfield University 2012

27. Corporate Sustainability
Is a business approach that creates long-term
shareholder value by embracing the opportunities
and managing the risks associated with economic,
environmental and social developments.
PWC - SAM - The Sustainability Yearbook 2008

28. “Every
single social
and global
issue of our
day is a
business
opportunity
in disguise.”

29. 1. Brand value and
reputation
2. Employees and future
workforce
3. Operational
effectiveness
4. Risk management
5. Direct financial impact
6. Organisational growth
7. Business opportunity

30. Sustained Value Creation
Brand value Employees Operational Risk Direct Organisational Business
and reputation and future effectiveness management financial growth opportunity
workforce impact
Engaged Engaged Engaged Engaged Engaged civil
employees customers suppliers communities society
Measure and Opportunities for Empowered Ambitious sustainability Focus on most
report impacts investment stakeholders goals linked to core material
purpose & strategy impacts
if
Improved environmental, social and government performance

31. • Knowledge-management &
training
• Tone from top
• Governance & board oversight
Core Vision
Sustainability • Embedding • Specialist
•Communications
• Key targets Strategy as part function
and Stakeholder in divisions
engagement & measure to coach,
of vision, and encourage
business and
mission, values functions challenge Strategic
• Everybody’s Business
• Energising Value-Chain Operational
• Making most of networks
Developed from David Ferguson
© Doughty Centre 2009

32. Level of Engagement With CSR/Sustainability Function
“Engaged (4+5),”* 2011
Engagement is high in the
communications-focused functions
Highest in consumer products/retail sector
(75 percent) vs. others (57 percent)
Given that innovating for sustainability is
highlighted as important for business success and
improving trust in business, the lower level of
engagement here appears to be an issue.
Convincing investors abut the value of sustainability
is an important leadership challenge, and this lower
level of engagement is perhaps a contributing factor
to this challenge.
The lower degree of engagement with companies’
approaches to CSR/sustainability is an issue given its
importance to employee satisfaction and recruitment
efforts.
*Percentage of respondents who selected (5) plus (4) on a 5-point scale,
where 1 is “not at all engaged with CSR/sustainability,” and 5 is “very
engaged with CSR/sustainability.”
Q: Please rate the level of engagement that each of the following functions within your
company has with your company’s CSR/sustainability function.

33. C SUITE OF ROLES
• C ommunicator
• C oach
• C onsultant
• C odifier
• C onnector
• C onscience
• C ajoler

34. The Corporate Responsibility
professional

35. competencies
• Thought leadership
• Communication skills
• Selling and persuading
• Creative problem solving
• Strategic vision
• Horizon scanning/seeing the bigger picture and bringing that into the organisation
• Being a leading and good example
• Being credible and having gravitas
• Be approachable
• A good networker
• Understanding the politics of an organisation
• Well informed and trend spotting
• Being resilient
• Innovative thinking
• Strong business basics
• Commercial acumen
• Influencing ability
• Being flexible

36. skills
• Ability to analyse and understand data
• Understanding motivations for behaviour and how to change that (including engagement)
• Running change programmes
• Developing identity and helping employees develop understanding
• Facilitation of meetings, workshops and with external parties
• Develop strategies
• Build a business case
• Create a tactical plan, and measure and report on progress
• Stakeholder engagement and management
• Engaging with a variety of stakeholders, from trade bodies to NGOs, suppliers and legislators
• Running training and education programmes
• Report writing
• Presentation skills
• Running cross-functional working groups or projects
• Learn on the job
• Tri-sector partnering experience
• Getting on agendas and agenda setting
• Interpretating and translating
• Finding business opportunities
• Writing skills
• Experience addressing sustainability issues from human rights to CO2 emissions, diversity to ethical trade
•