TBL & CSR - Sustainability Management

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Improve Brand (intangible) & Profitability (tangible) via Triple Bottom Line & Corporate Social Responsibility

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TBL & CSR - Sustainability Management

  1. 1. Sustainability Management Improve Brand & Profitability via TBL & CSR Anand Subramaniam
  2. 2. <ul><li>“ The world will not move beyond its current state of crisis using the same thinking that got us there in the first place .” </li></ul><ul><ul><li>- Albert Einstein </li></ul></ul>
  3. 3. Highlights <ul><li>Sustainability </li></ul><ul><li>Corporate Social Responsibility (CSR) </li></ul><ul><li>Triple Bottom Line (TBL) </li></ul><ul><li>Business Case for Sustainability </li></ul><ul><li>Framework - Sustainability Management </li></ul><ul><li>Roadmap - Planning for Sustainability </li></ul><ul><li>HR’s Role in Building a Sustainable Enterprise </li></ul><ul><li>Reference </li></ul>
  4. 4. Sustainability
  5. 5. Next Wave.. <ul><li>Value-driven and transformative </li></ul><ul><li>Responsive to emerging shift in global values </li></ul><ul><li>Making corporate citizenship and corporate sustainability core business strategies </li></ul>
  6. 6. What is Sustainability? <ul><li>Put simply, it is - “ future-proofing your business ” </li></ul><ul><li>The process to develop specific strategies and an action plan to help ensure the long-term sustainability of an initiative </li></ul><ul><li>Considers a full range of resources and competencies – needed to meet long-term goals </li></ul>
  7. 7. Why Sustainability ? Improve Productivity Reduce Absenteeism Improve Stakeholder Value Create Healthier Environments Improve Business Benefits Reduce Cost Reduce Risks
  8. 8. Key Aspects <ul><li>Focus simultaneously on the People, the Environment and Profits </li></ul><ul><li>Balancing social, environmental and economic factors for short and long-term performance </li></ul>
  9. 9. Principles - Sustainable Performance Source: Improving Sustainability Performance - Epstein and Roy Ethics Environment Employment Value Community Profit Relationships Transparency Governance Sustainable Performance
  10. 10. Sustainable Enterprise - Qualities <ul><li>Is committed to transparency and accountability </li></ul><ul><li>Long-term, collaborative, “holistic” or systems-oriented mindset </li></ul><ul><li>Pursues a “triple bottom-line”– social, environmental and economic </li></ul><ul><li>Ethics-based business principles and sound corporate governance practices </li></ul><ul><ul><li>considers rights and interests of all relevant stakeholders, not only the immediate interests of company shareholders </li></ul></ul><ul><li>Uses its influence to promote meaningful systemic change </li></ul><ul><ul><li>amongst its peers </li></ul></ul><ul><ul><li>within its neighboring communities </li></ul></ul><ul><ul><li>throughout its supply chain </li></ul></ul>
  11. 11. Corporate Social Responsibility (CSR)
  12. 12. Corporate Social Responsibility (CSR) <ul><li>Integrate social and environmental sustainability </li></ul><ul><li>Rely on stakeholder dialogue / outside interest groups </li></ul>
  13. 13. CSR - Benefits Reputation, brand, integrity and trust Transparency, effective risk management and public reporting = investor confidence Improved employee morale / pride = attracting talent Closer attention to the firm’s reputation and its intangible assets = competitive advantage Closer contact with the community = better business outcomes
  14. 14. CSR - Success Criteria Success Criteria Develop positive relations with all stakeholder groups Be transparent with results / outcomes in relevant areas Compelling Business Case Promote the triple bottom line within the firm Regular stakeholders communication Utilise a structured / methodical approach Create culture that fits with sustainability values Environmental Scan for programs and new ideas Inculcate a continuous improvement mentality Ensure high Stds. of workplace health and safety Facilitate / define firm’s motivation for CSR involvement Develop awareness & obtain top management commitment
  15. 15. Triple Bottom Line (TBL)
  16. 16. Mental Model Source - The Sustainability Advantage, Bob Willard. Typical Business View Sustainability View Society Envi-ron-ment Economy Environment Society Economy
  17. 17. Triple Bottom Line – Concept Environment Value Add Financial / Economic Value Add Social Value Add <ul><li>Procurement policies </li></ul><ul><li>Employee compensation </li></ul><ul><li>Community contributions </li></ul><ul><li>Demand for products / services </li></ul><ul><li>Other monetary issues related to company activities </li></ul><ul><li>Processes, products or services that affect the environment </li></ul><ul><li>Equality </li></ul><ul><li>Employee issues </li></ul><ul><li>Treatment of minorities </li></ul><ul><li>Public opinions / concerns </li></ul><ul><li>Shaping local, national and international public policy </li></ul>Tangible Value Intangible Value
  18. 18. Intangible Value – Improved Brand / Image Intangible Value Tangible <ul><li>Stakeholders </li></ul><ul><li>Supply chain </li></ul><ul><li>Local communities </li></ul><ul><li>Partnerships / alliances </li></ul><ul><li>Regulators & policymakers </li></ul><ul><li>Customer & labour relations </li></ul><ul><li>Emerging Markets </li></ul><ul><li>Human rights </li></ul><ul><li>Oppressive regimes </li></ul><ul><li>Economic development </li></ul><ul><li>Products & Services </li></ul><ul><li>Product safety </li></ul><ul><li>Intellectual capital </li></ul><ul><li>New product innovation </li></ul><ul><li>Product Life Cycle Mngt </li></ul><ul><li>Design for environment / use </li></ul><ul><li>Governance </li></ul><ul><li>Agility / adaptability </li></ul><ul><li>International “best practice </li></ul><ul><li>Strategic scanning capability </li></ul><ul><li>Performance indicators / monitoring / reporting </li></ul><ul><li>Human Resources </li></ul><ul><li>Health & safety </li></ul><ul><li>Employee motivation </li></ul><ul><li>Recruitment / retention </li></ul><ul><li>Knowledge capture & sharing </li></ul><ul><li>Innovation capacity / capability </li></ul>
  19. 19. Triple Bottom Line (TBL) <ul><li>Disclosure (reporting) is a key part of doing sustainable business </li></ul><ul><li>Sustainability reporting is broader in scope than traditional financial reporting </li></ul><ul><li>The Triple Bottom Line (TBL) is one way to report on sustainable business activity </li></ul>
  20. 20. Increasing Trends <ul><li>Social </li></ul><ul><li>Security </li></ul><ul><li>Diversity </li></ul><ul><li>Fair trade </li></ul><ul><li>Equal rights </li></ul><ul><li>Job Creations </li></ul><ul><li>Transparency </li></ul><ul><li>Business Ethics </li></ul><ul><li>Labour Relations </li></ul><ul><li>Better living standards </li></ul><ul><li>Skill Enhancements </li></ul><ul><li>Economic </li></ul><ul><li>Speed & Flexibility </li></ul><ul><li>Life-long learning </li></ul><ul><li>Intellectual capital </li></ul><ul><li>Shorter Product life-cycles </li></ul><ul><li>Technological Change & Innovation </li></ul><ul><li>Interdependent Economies </li></ul><ul><li>Improvements in Margins, revenue, risk , Capital Efficiency, Shareholder Returns </li></ul><ul><li>Environment </li></ul><ul><li>Zero Waste </li></ul><ul><li>Global Warming </li></ul><ul><li>Safety & Health </li></ul><ul><li>Population growth </li></ul><ul><li>Resource Efficiency </li></ul><ul><li>Pollution and waste </li></ul><ul><li>Loss of bio-diversity </li></ul><ul><li>Scarcity of Natural Resources </li></ul><ul><li>Ecological risk awareness </li></ul><ul><li>Life Cycle Management </li></ul>
  21. 21. Business Case for Sustainability
  22. 22. Business Case Maximise Revenue Minimise Cost
  23. 23. Cost Minimisation <ul><li>Operational performance & efficiencies </li></ul><ul><ul><li>Process optimisation </li></ul></ul><ul><ul><li>Improved relations with regulators </li></ul></ul><ul><ul><li>Efficient use of resources; risk reduction </li></ul></ul><ul><ul><li>Improved product quality and reduced error rates </li></ul></ul><ul><li>Minimising business risks and improving safety </li></ul><ul><ul><li>Establishing a comprehensive Corporate Responsibility (CR) policy and strategy can offset these risks, spanning legal, financial, environmental and societal risks </li></ul></ul><ul><li>Improved recruitment and retention of talented employees </li></ul><ul><ul><li>Improved employee morale and productivity via training and development </li></ul></ul>Minimise Cost
  24. 24. Revenue Maximisation <ul><li>Learning and innovation </li></ul><ul><ul><li>Improved understanding of consumer needs </li></ul></ul><ul><ul><li>Identifies new markets and price premium opportunities </li></ul></ul><ul><ul><li>New products through the application of new technologies </li></ul></ul><ul><ul><li>Stakeholder engagement a catalyst for corporate innovation </li></ul></ul><ul><li>Improved customer loyalty </li></ul><ul><ul><li>Aligning corporate values and activities with stakeholder expectations </li></ul></ul><ul><li>Improved access to capital </li></ul><ul><ul><li>Enhanced credit worthiness and lower cost of capital due to investor confidence in the company’s ability to manage change </li></ul></ul><ul><li>Improved supply chain management </li></ul><ul><li>Enhanced recognition and reputation (brand) </li></ul><ul><li>Improved market share from enhanced ability to strategically plan for the longer-term </li></ul><ul><ul><li>First mover advantage by anticipating the impacts of social pressures/ trends </li></ul></ul>Maximise Revenue
  25. 25. Sustainability Management Framework
  26. 26. Framework - Sustainability Management <ul><li>Models </li></ul><ul><li>Terminology </li></ul><ul><li>Management Practices </li></ul>Scope / Structure Implement Conceptual Framework Evaluation <ul><li>Roles </li></ul><ul><li>Scope </li></ul><ul><li>Stakeholders </li></ul><ul><li>Responsibilities </li></ul><ul><li>Training </li></ul><ul><li>Change Management </li></ul><ul><li>Methodology / Roadmap </li></ul><ul><li>Knowledge Portal / Forums </li></ul><ul><li>Benchmarking </li></ul><ul><li>Reporting / Results / Awards </li></ul><ul><li>Expert Opinion / Consultation </li></ul><ul><li>Rewards / Performance Evaluation </li></ul>Vision / Mission <ul><li>Business Case </li></ul><ul><li>Benefits / Values </li></ul><ul><li>Strategies / Plans </li></ul><ul><li>Success Criteria </li></ul><ul><li>Motivation / Priorities </li></ul>Capture Communicate Collaborate Continuously Improve Sustainability Management
  27. 27. Roadmap - Planning for Sustainability
  28. 28. Reasons for Sustainability Planning <ul><li>To clarify where you are and where you want to go </li></ul><ul><li>To develop strategies for long-term success </li></ul><ul><li>To provide benchmarks to measure progress </li></ul><ul><li>To demonstrate to stakeholders the value of your work </li></ul>
  29. 29. Roadmap – Planning for Sustainability Vision Success Criteria Strategic Resourcing / Funding Change Management Stakeholder Relationship Advocates / Champions Internal Process / Systems Sustainability Plan
  30. 30. Vision <ul><li>Clear and shared vision of what you want to achieve. </li></ul><ul><ul><li>Know what you want to sustain </li></ul></ul><ul><ul><li>Know how your initiative fits with the long term goals </li></ul></ul><ul><ul><li>Know what you mean by sustainability </li></ul></ul><ul><ul><ul><li>Scope of activities </li></ul></ul></ul><ul><ul><ul><li>Scale of operation </li></ul></ul></ul><ul><ul><ul><li>Timeline </li></ul></ul></ul>
  31. 31. Success Criteria / Results <ul><li>Define success criteria, measure progress over time and share your results </li></ul><ul><ul><li>Adopt a results framework </li></ul></ul><ul><ul><li>Be clear about the results you want to achieve as well as the systems that serve them </li></ul></ul><ul><ul><li>Use indicators and performance measures to track progress and improve your work </li></ul></ul>
  32. 32. Strategic Resourcing / Funding <ul><li>Have a clear sense of the cost of your initiative and develop strategies to secure relevant resources </li></ul><ul><ul><li>Make the best use of existing resources </li></ul></ul><ul><ul><li>Revenue maximisation of available sources </li></ul></ul><ul><ul><li>Obtain required funding </li></ul></ul><ul><ul><li>Create stakeholder partnerships </li></ul></ul><ul><ul><li>Generate new sources of revenue </li></ul></ul>
  33. 33. Change Management <ul><li>Pro-actively respond to changes in your environment </li></ul><ul><ul><li>Monitor funding opportunities </li></ul></ul><ul><ul><li>Cater to stakeholder interests and their participation </li></ul></ul><ul><ul><li>Identify opportunities to improve policies / procedures / systems </li></ul></ul><ul><ul><li>Participate in collaborative advocacy to encourage change </li></ul></ul>
  34. 34. Stakeholder Relationship <ul><li>Determine support required and develop an engagement plan </li></ul><ul><ul><li>Encourage involvement of stakeholders </li></ul></ul><ul><ul><li>Support via training and education </li></ul></ul><ul><ul><li>Build partnerships that foster collaboration rather than competition </li></ul></ul>
  35. 35. Advocates / Champions <ul><li>Identify key decision makers and opinion leaders who will use their influence on your behalf </li></ul><ul><ul><li>Develop an effective outreach plan </li></ul></ul><ul><ul><li>Cultivate a broad base of champions </li></ul></ul><ul><ul><ul><li>Business leaders </li></ul></ul></ul><ul><ul><ul><li>Peers </li></ul></ul></ul><ul><ul><ul><li>Clients </li></ul></ul></ul><ul><ul><ul><li>Philanthropists </li></ul></ul></ul>
  36. 36. Internal Process / Systems <ul><li>Internal process and systems to manage work effectively </li></ul><ul><ul><li>Develop strong governance, risk management, accounting, information, and human resource systems </li></ul></ul><ul><ul><li>Use those systems to review strategies, make changes as needed </li></ul></ul>
  37. 37. Sustainability Plan <ul><li>An implementation plan that describes the initiative’s - priorities & action steps </li></ul><ul><ul><li>Identify challenges, risks, constraints, assumptions and other initiatives </li></ul></ul><ul><ul><li>Identify strategies to garner needed resources and overcome challenges </li></ul></ul><ul><ul><li>Identify and communicate with key partners </li></ul></ul>
  38. 38. HR’s Role in Building a Sustainable Enterprise
  39. 39. HR Agenda – Employee Sustainability <ul><li>Internal </li></ul><ul><li>Change Management </li></ul><ul><li>Attract & retain top talent </li></ul><ul><li>Adopt a strategic perspective on workplace development including ecological sustainability </li></ul><ul><li>Build the corporate knowledge and skill base (training) </li></ul><ul><li>Increase employees’ role in decision-making </li></ul><ul><li>Link sustainability goals to employee rewards, bonuses, and performance appraisal systems </li></ul><ul><li>External </li></ul><ul><li>Reinterpret strategy around a range of stakeholders </li></ul><ul><li>Sustain on-going dialogue with stakeholders and been seen adding value </li></ul><ul><li>Define social goals and action plans with KPIs </li></ul><ul><li>Build stakeholder support to operate and grow. </li></ul><ul><li>Form active partnerships with community groups to inform, critique and collaborate on sustainability initiatives </li></ul><ul><li>Institute external monitoring, reduce environmental footprint </li></ul>
  40. 40. Reference
  41. 41. Resources <ul><li>Beyond the Boundaries: Leading and Recreating the Successful Enterprise by D. Stace & D. Dunphy </li></ul><ul><li>Corporate Social Opportunity - 7 steps to make corporate social responsibility work for your business by D. Grayson and A. Hodges </li></ul><ul><li>Cradle to Cradle by William McDonough & Michael Braungart </li></ul><ul><li>Green to Gold by Daniel Esty & Andrew Winston </li></ul><ul><li>Improving Sustainability Performance by Epstein and Roy </li></ul><ul><li>Leading Change Toward Sustainability: A Change Management Guide for Business by B Doppelt </li></ul><ul><li>Making Sustainability Work by Marc J. Epstein </li></ul><ul><li>Product Design for the Environment by Fabio Giudice, Guido La Rosa, Antonino Risitano </li></ul><ul><li>The Triple Bottom Line by Andrew Savitz </li></ul><ul><li>The Business Guide to Sustainability by Darcy Hitchcock & Marsha Willard </li></ul><ul><li>The Sustainability Advantage by Bob Willard </li></ul>
  42. 42. <ul><li>“ The world has enough for everyone’s needs but not for everyone’s greed .” </li></ul><ul><ul><li>- Mahatma Gandhi </li></ul></ul>
  43. 43. <ul><li>Good Luck </li></ul><ul><li>http://www.linkedin.com/in/anandsubramaniam </li></ul>

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