David Cooperrider and Chris Laszlo team up for an executive education leadership program on creating sustainable value through whole system Appreciative Inquiry methods. The course is taught at the Weatherhead School of Management at Case Western Reserve University and in companies around the world.
7. Business as an Agent of World Benefit --More Than 2,000 Interviews --100s of Published Profiles “Positive Institutions” --s ee www.worldinquiry.org “Awe is What Moves Us Forward”
8. “ Meeting the needs of the present without compromising the ability of future generations to meet their own needs” Brundtland Commission, 1987 “A business approach to creating long-term shareholder and stakeholder value by embracing opportunities and risks deriving from economic , environmental , and social developments” The Dow Jones Sustainability Group Index, 2001 Definition of sustainability: People, Planet and Prosperity
10. Sustainable Value Stakeholder Value ¹ Shareholder Value + + - Unsustainable (Value Transfer) Unsustainable (Value Transfer) Unsustainable (Lose/Lose) Sustainable Value - Value is sustainable only when it is positive for shareholders and stakeholders fossil fuel ICE
25. Fleet of Class 8 heavy trucks 25% more fuel efficient in 3 years
26. Existing stores 20% more efficient by 2012; new stores 25-30% by 2009 Interior with sales floor lighting in “full off” mode LED Refrigerated Display Lighting
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31. It isn’t enough to do “less bad”. The biggest opportunity is “doing good” (Eco-Effectiveness) Eco-Efficient Eco-Effective Impact on the environment Source: MBDC High Low negative impact positive impact
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33. Social example: serving the Base of the Pyramid 1 billion people with incomes > $15,000 per year 1.5 billion people <$15,000 but >$1,500 per year 4 billion people <$1,500 per year Saturated markets Incremental adaptation New market capability $13 trillion
35. The Vision: The Base of the Pyramid Protocol To create inclusive, mutually beneficial business processes through which the private sector and local communities build economic, social and environmental value. A Process for Mutual Value Creation
41. An area of intact forest the size of Panama is lost each year
42. A new study by Stanford University estimates that all commercial fish species will be lost by 2048
43. Over the last 50 years water use has tripled, increasing faster than population
44. An estimated 100 million tons of plastic trash circulates in the Pacific Ocean, concentrating toxins and entering the food chain
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48. BioEnergy Platform + Plug-in Modules Support Rural Medical/Health Care Teams Slide Technology Management, Inc.,▼9718 Lake Shore Boulevard, Cleveland, Ohio 44108▼216-541-1000▼ [email_address] A&B C D E&F Clinical Telemedicine Public Health Global Health Delivery U.S. Manufacturing and Engineering Biomass to Energy @OSU College of Food, Ag, Env Sciences Fuel Cell Systems Biomass to Energy @OSU College of Food, Ag, Env Sciences
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51. 1. HIGH POINTS Patterns & Themes Be ready to share one best story from group 2. CONTINUITY: THINGS TO KEEP EVEN AS WE CHANGE: --example sustainability innovations: your company and others you admire: 3. IMAGES OF THE FUTURE WE WANT—WHAT IT LOOKS LIKE IN 2014
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60. The AI Organization Summit Method Creating an Alignment of Strengths Using Large Group Methods
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66. AI Summits: Three Ways to Understand Positive Change
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68. The AI 4-D Model of Strengths-Based Change Discovery “ What gives life?” The best of what is. Appreciating Dream “ What might be?” Envisioning Results/Impact Design “ What should be – the ideal?” Co-constructing Destiny “ How to empower, learn, and improvise?” Sustaining Affirmative Topic
74. Sources of Business Value Levels of Strategic Focus Business Context Brand/ Culture Market Product Process Risk business value created Source: Chris Lazslo The Sustainable Company Anticipating regulations Reducing energy, waste & process costs—future of totally renewable energy Sustainable-value, low-energy products Using BOP and Blue Ocean strategy to open new markets New story, identity, passion Leading industry stars, associations, policy
75. Fairmount Started with Appreciative Inquiry in 1990 With a Focus on Empowerment 40% CAGR Past Four Years
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78. AI at the UN World Summit With Business and Industry CEOs and Civil Society Leaders
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85. Sustainable Value Networks Energy Waste Products Global Greenhouse Gas Strategy Buildings Design Construction & Maintenance Global Logistics Alternative Fuels Operations & Internal Procurement Packaging Textiles Electronics Food & Agriculture Forest Products (Wood & Paper) Chemical Intensive Products Jewelry Seafood China
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88. Publisher Printer National Distributor Wholesaler Merchandiser Logistics Provider Freight Advertiser Retailer Consumer RDA Consultant Magazine Industry System Map
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90. Sustainability Index Summit Taking Action to Address a Global Imperative…Universities in Partnership With Business and Society Saving people money so they can live better July 14-16, 2008
91. Mature Phase: (Textiles example) SKU specific questions add greater level of detail and insight into specific product performance Hypothetical and illustrative Emphasis moves to product-specific scoring. Product scores roll up to influence supplier score. (Up to 1 score per SKU; products of the same profile could be grouped in one score) Weight Raw Material Inputs Manufacturing/ Processing Transport/ Packaging/ Sales Product Use End-of-Life/ Recycling Supply Chain Goals Energy and Climate 40% Suppliers track on-farm energy use? (Y/N) Energy use per unit of finished product? (ranges will be provided) Hang tag on energy use during garment care? (Y/N) To reduce the use of non-renewable energy and greenhouse gas emissions. Material Efficiency 20% Uses fibers or irrigation practices that reduce field water use? (Y/N) Water consumption per unit of finished product? (ranges will be provided) Use of recycled materials in fabric production? (Y/N) To maximize efficient use of all materials, minimizing waste and costs. Natural Resources 20% Is the product organic or transition? (Y/N) Use of a restricted substances list for factory practices? (Y/N) Hang tag on use of laundry detergents? (Y/N) To ensure the integrity of ecosystems and a safe, reliable supply of raw materials. People and Community 20% Is product Fair Trade certified? (Y/N) To protect quality of life and safeguard human health.
92. Leveraging the Power of Associations for a New Magnitude of Socially Responsible Leadership
99. 1970 1999 1980 1995 Integration level Social Responsible Investments Investments in Environmental Technology Investment in Eco-Efficiency Triple Bottom-line Investment 2000-8 Value-based negative screening Low diversification High volatility Higher value creation Lower eco-footprint Single Bottom line = Shareholder Value Triple evaluation Not market driven Innovest EcoValue‘21 & Intangible Value Assessment Perspective of SRI Rating Agencies Source: Innovest F E S 3 in 1
100. Environmental, Social, and Governance Performance Risk Reduction Product Differentiation Process/ Cost Reduction Reputation Enhancement Human Capital – New Markets Entry Recruitment and Retention Innovation Capacity Superior Earnings and Share Price Differentiation and Competitive Advantage Sustainability as driver of share price Source: Innovest