Going Green for Value and Profit: Sustainable Value Creation “ Business as an Agent of World Benefit”

Business Innovators: the Most “Privileged Generation” The “Greatest Generation” Meeting with Jeffery Sachs End of Poverty Prospect of oil independence, renewable Disruptive Innovations in Clean Tech Every Social and Global Issue Is a Business Opportunity in Disguise

The “Greatest Generation”

Meeting with Jeffery Sachs End of Poverty

Prospect of oil independence, renewable

Disruptive Innovations in Clean Tech

Every Social and Global Issue Is a Business Opportunity in Disguise

Today Sustainability 3.0 New Horizons in Appreciative Inquiry question of change at “scale of the whole” Stories From the Field and Research Into the Dynamics of Positive Change “Co-elevation”—United Nations; Coca-Cola; BP; Fairmount Minerals; Green Mountain Coffee Roasters; Wal-Mart

Sustainability 3.0

New Horizons in Appreciative Inquiry question of change at “scale of the whole”

Stories From the Field and Research Into the Dynamics of Positive Change “Co-elevation”—United Nations;

Coca-Cola; BP; Fairmount Minerals; Green Mountain Coffee Roasters; Wal-Mart

Context A Startling Letter from the UN in 1992 I couldn’t even respond. A Second Chance in 2003: This Time More Prepared

A Startling Letter from the UN in 1992

I couldn’t even respond.

A Second Chance in 2003:

This Time More Prepared

Business as an Agent of World Benefit Began June, 24 th 2004 at the UN “ Let us choose to unite the strengths of markets with the power of universal ideals… let us choose to reconcile the creative forces of private entrepreneurship with the needs of the disadvantaged and the requirements of future generations” --UN Secretary General Kofi Annan

“ Let us choose to unite the strengths of markets with the power of universal ideals… let us choose to reconcile the creative forces of private entrepreneurship with the needs of the disadvantaged and the requirements of future generations”

--UN Secretary General

Kofi Annan

Business and Society Debate In today’s trust-starved climate, our market-driven system is under attack…large parts of the population feel that business has become detached from society—that business interests are no longer aligned with societal interests” -- Klaus Schwab , President, World Economic Forum

In today’s trust-starved climate, our market-driven system is under attack…large parts of the population feel that business has become detached from society—that business interests are no longer aligned with societal interests”

-- Klaus Schwab ,

President, World Economic Forum

Harman’s Look at the Future: Other Side of the Debate Business, the motor of our society, has the opportunity to be the new creative force on the planet, a force which could contribute to the well-being of many…the modern corporation is as adaptable an organizational form as has ever been invented, so that in a time of fundamental change it may be expected to be on the cutting edge.” --Stanford’s Willis Harman

Business, the motor of our society, has the opportunity to be the new creative force on the planet, a force which could contribute to the well-being of many…the modern corporation is as adaptable an organizational form as has ever been invented, so that in a time of fundamental change it may be expected to be on the cutting edge.”

--Stanford’s Willis Harman

World-wide search new ways for business to live in mutual benefit with the earth’s ecosystems and the world’s societies Ai & Positive Organizational Scholarship- How institutions can magnify and refract the prism of human strengths Experiment in Global Anticipatory Learning— Club of Rome Challenge

World-wide search new ways for business to live in mutual benefit with the earth’s ecosystems and the world’s societies

Ai & Positive Organizational Scholarship- How institutions can magnify and refract the prism of human strengths

Experiment in Global Anticipatory Learning— Club of Rome Challenge

World Inquiry Interviews --Simply click www. worldinquiry.org Download interview guide Contact leading innovators in your community or country BUSINESS AS AN AGENT OF WORLD BENEFIT MANAGEMENT KNOWLEDGE LEADING POSITIVE CHANGE

--Simply click

www. worldinquiry.org

Download interview guide

Contact leading innovators in your community or country

Innovation Bank More than two- thousand interviews Over 500 reviewed submissions 121 accepted stories 74 published profiles of innovation See www.worldinquiry.org BUSINESS AS AN AGENT OF WORLD BENEFIT MANAGEMENT KNOWLEDGE LEADING POSITIVE CHANGE

Innovation Bank

More than two- thousand interviews

Over 500 reviewed submissions

121 accepted stories

74 published profiles of innovation

See www.worldinquiry.org

Story Illustration Examples: Miracle in Tefen ********* Denmark’s Industrial Symbiosis

Examples:

Miracle in Tefen

*********

Denmark’s Industrial Symbiosis

Sustainable Value Sustainable Value— From Obligation Mindset to Business Opportunity Mindset--Laszlo Stakeholder Value ¹ Shareholder Value + + - Unsustainable (Value Transfer) Unsustainable (Value Transfer) Unsustainable (Lose/Lose) Sustainable Value - ¹ absolute standards or relative to competitors fossil fuel ICE clean energy vehicles

BUSINESS AS AN AGENT OF WORLD BENEFIT MANAGEMENT KNOWLEDGE LEADING POSITIVE CHANGE

UN Global Compact AI Summit Results Innovations : HP, Novartis, BP, Ericcson, Novo Nordisk, Toyota, Green Mountain Coffee, Tata Vision of PRI Project : Goldman Sachs and Other Investment Firms, Representing $10 Trillion in Assets Who Cares Wins — eclipse of “the great tradeoff illusion”—ESG issues move to the strategic core—25% greater stock appreciation 10 Stock Exchanges Commit & Climate Change Initiative 43 Local Networks…China Joins in a Huge Way 100% Growth in Members by 2007 Summit Companies Calling for New MBA Leaders, OD Innovation, Learning Vision for Global Forum for Business as an Agent of World Benefit

Innovations : HP, Novartis, BP, Ericcson, Novo Nordisk, Toyota, Green Mountain Coffee, Tata

Vision of PRI Project : Goldman Sachs and Other Investment Firms, Representing $10 Trillion in Assets

Who Cares Wins — eclipse of “the great tradeoff illusion”—ESG issues move to the strategic core—25% greater stock appreciation

10 Stock Exchanges Commit & Climate Change Initiative

43 Local Networks…China Joins in a Huge Way

100% Growth in Members by 2007 Summit

Companies Calling for New MBA Leaders, OD Innovation, Learning

Vision for Global Forum for Business as an Agent of World Benefit

Why is this moving so quickly? Stakeholders are now a powerful force in business..

Growth of Non-Governmental Organizations (NGOs)—and instant world wide web information Source: UIA Yearbooks and SVP research

US Environmental regulations Source: US EPA Number of Laws Number of Laws

What is Appreciative Inquiry? An Inspiring Strengths-based Approach to Change “ The task of leadership is to create an alignment of strengths, making our weaknesses irrelevant”. -- Peter Drucker

“ The task of leadership is to create an alignment of strengths, making our weaknesses irrelevant”.

-- Peter Drucker

Appreciative Inquiry Involves a Shift “ No problem can be solved from the same level of consciousness that created it. We must learn to see the world anew.” “ There are only two ways to live your life. One is as though nothing is a miracle. The other is as though everything is a miracle.” – Albert Einstein

“ No problem can be solved from the same level of consciousness that created it. We must learn to see the world anew.”

“ There are only two ways to live your life. One is as though nothing is a miracle. The other is as though everything is a miracle.”

– Albert Einstein

Change at the Scale of the Whole: Many Fascinating Questions New Horizons Science of Human Strengths Collaboration with The Field of Design  AI’s Strengths-Based Approach to Catalyzing Change

New Horizons

Science of Human Strengths

Collaboration with

The Field of Design

Fairmount Minerals Story Birth of the “Sustainable Design Factory”

The Sustainable Design Factory “every global issue is a business opportunity” It’s a large group innovation “design studio” Whole system in the room—all stakeholders—and innovators Sustainable Value Mindset—search for high shareholder value and high stakeholder value Appreciative Inquiry— “4-D” cycle—Three days Power of questions, analogous stories, positive energy Designing in hot teams: brainstormer process; rapid prototyping: How might we…? Tremendous action and follow-through

It’s a large group innovation “design studio”

Whole system in the room—all stakeholders—and innovators

Sustainable Value Mindset—search for high shareholder value and high stakeholder value

Appreciative Inquiry— “4-D” cycle—Three days

Power of questions, analogous stories, positive energy

Designing in hot teams: brainstormer process; rapid prototyping: How might we…?

Tremendous action and follow-through

Whole System Sustainable Value Design Exchanging Lessons with IDEO External Stakeholders: Customers Suppliers NGO’s Neighbors/Communities Board of Directors Imagine 300 Stakeholders coming together across every boundary without a plan—coming together to design and create new sustainability products, processes, and businesses throughout the supply chain. Internal Stakeholders Operations Administration & Corporate Services Customer Service Engineering Logistics Quality Sales Technical Support / R&D Con’t

External Stakeholders:

Customers

Suppliers

NGO’s

Neighbors/Communities

Board of Directors

Imagine 300 Stakeholders coming together across every boundary without a plan—coming together to design and create new sustainability products, processes, and businesses throughout the supply chain.

Internal Stakeholders

Operations

Administration & Corporate Services

Customer Service

Engineering

Logistics

Quality

Sales

Technical Support / R&D

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 risk Reducing energy, waste & process costs— renewable energy; eco-supply chains Sustainable-value, green products Using BOP and Blue Ocean strategy to open new markets New story of sustainable value, identity—internal and external branding Rising industry stars, associations, policy

What a Moment………

Initiative Samples: From One Sustainable Design Summit Recover, Recycle & Re-Use: biodeisel example— $mutlti-million new business unit Sustainable Resin Packaging: Reduce landfill waste, reduce fuel, saves labor: $300,000 annual savings Truck to rail conversion: Conserves fuel, satisfied neighbors, $125,000 annual savings Habitat Restoration and Replenishment Fast Track site development: Transparency, environment, community impact: $6 million (one year of early operations) BoP Initiatives—example: water filter prototype: whole new market partnerships 38% Increase Sales Growth. Empowerment measures up. 2007 #1 Corporate Citizen Award , US Chamber of Commerce Emerging as Top Rated Star in the Industry—IMA-NA

Recover, Recycle & Re-Use: biodeisel example— $mutlti-million new business unit

Sustainable Resin Packaging: Reduce landfill waste, reduce fuel, saves labor: $300,000 annual savings

Truck to rail conversion: Conserves fuel, satisfied neighbors,

$125,000 annual savings

Habitat Restoration and Replenishment

Fast Track site development: Transparency, environment, community impact:

$6 million (one year of early operations)

BoP Initiatives—example: water filter prototype: whole new market partnerships

38% Increase Sales Growth. Empowerment measures up.

2007 #1 Corporate Citizen Award , US Chamber of Commerce

Emerging as Top Rated Star in the Industry—IMA-NA

Fairmount Started with Appreciative Inquiry in 1990 With a Focus on Empowerment 40% CAGR Past Four Years

FML – Positive Image/Positive Action

WHY is AI Whole SYSTEM APPROACH POWERFUL? Positive Organizational Scholarship Barbara Fredrickson’s Broaden-and-Build Theory Jonathan Haight’s Research into “Elevation” Wayne Baker’s work on the activation of positive energy networks Boyatzis on Resonant Leadership

Barbara Fredrickson’s Broaden-and-Build Theory

Jonathan Haight’s Research into “Elevation”

Wayne Baker’s work on the activation

of positive energy networks

Boyatzis on Resonant Leadership

A New Magnitude of Change A Question for You Which organization will help save more lives in the next five years than any other— children, women, and men—who are picking cotton in toxic and chemically treated fields all over the world—fields that are so toxic that when you touch the cotton it feels like an electric jolt around your fingers? Which international organization might you guess?

Which organization will help save more lives in the next five years than any other— children, women, and men—who are picking cotton in toxic and chemically treated fields all over the world—fields that are so toxic that when you touch the cotton it feels like an electric jolt around your fingers?

Which international organization might you guess?

It employs 1.9 million people Its serves 138 million people per week. It has approximately $350 billion in sales It’s attracting the world’s most brilliant and radical environmental minds such as Amory Lovins It’s raising many eyebrows

It employs 1.9 million people

Its serves 138 million people per week.

It has approximately $350 billion in sales

It’s attracting the world’s most brilliant and radical environmental minds such as Amory Lovins

It’s raising many eyebrows

Wal-Mart’s Early Steps Many are Watching Be supplied by 100% renewable energy Create zero waste Sell products that sustain the environment

Be supplied by 100% renewable energy

Create zero waste

Sell products that sustain the environment

Implications of Packaging Sustainable Value Innovation and a Turned on Workforce Is already preventing millions of pounds of trash from reaching landfills Across the supply chain, the initiative will save 667,000 metric tons of carbon dioxide from entering the atmosphere Equal to taking 213,000 trucks off the road annually, and saving 323,800 tons of coal and 66.7 million gallons of diesel fuel from being burned. “ The packaging is renewable in 90 days instead of 90 million years” Kathleen Bader, CEO Nature Works

Is already preventing millions of pounds of trash from reaching landfills

Across the supply chain, the initiative will save 667,000 metric tons of carbon dioxide from entering the atmosphere

Equal to taking 213,000 trucks off the road annually, and saving 323,800 tons of coal and 66.7 million gallons of diesel fuel from being burned.

“ The packaging is renewable in 90 days instead of 90 million years”

Kathleen Bader, CEO Nature Works

Implications of Packaging Sustainability Innovations Broadening this initiative to 255 items in Toys: This employee driven initiative saved 3,425 tons of corrugated materials 1,358 barrels of oil annually 5,190 trees Millions of dollars in transportation costs

Broadening this initiative to 255 items in Toys:

This employee driven initiative saved 3,425 tons of corrugated materials

1,358 barrels of oil annually

5,190 trees

Millions of dollars in transportation costs

Sustainable Value Networks (source: Dave Sherman) 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 Energy Waste Products

Magazine System Map Publisher Retailer Consumer Printer Advertiser Subscription channel National Distributor Services: Billing & Crediting Service for publishers & titles Coordinated field services for wholesaler/retail Single source cashflow & publisher accounting Central location to handle problems/claims National presence to coordinate marketing & merchandising Wholesaler Services Deliver product to retailers to hit on-sale dates Single source for collection of returns / payments for sold copies Recording sale/return data by title/issue/retailer Face-to-face contact w/ retailers Product merchandising Retail marketing Manage Assortment File RDA claims Collect Incentives /rebates RDA Consultant Manufactures Product Circulation Management Creates Products Retail Marketing Display & sell product Manage assortment National Distributor Wholesaler Merchandiser Logistics Provider Wal-Mart Target Hearst Conde Nast Rodale DSR Bower CMG Time Warner Curtis Kable Anderson The Source / Levy Hudson News Harrisburg News Group ProLogix Freight Donneley

Subscription channel

National Distributor Services:

Billing & Crediting Service for publishers & titles

Coordinated field services for wholesaler/retail

Single source cashflow & publisher accounting

Central location to handle problems/claims

National presence to coordinate marketing & merchandising

Wholesaler Services

Deliver product to retailers to hit on-sale dates

Single source for collection of returns / payments for sold copies

Recording sale/return data by title/issue/retailer

Face-to-face contact w/ retailers

Product merchandising

Retail marketing

Manage Assortment

File RDA claims

Collect Incentives /rebates

Manufactures Product

Circulation Management

Creates Products

Retail Marketing

Display & sell product

Manage assortment

Wal-Mart

Target

Hearst

Conde Nast

Rodale

DSR

Bower

CMG

Time Warner

Curtis

Kable

Anderson

The Source / Levy

Hudson News

Harrisburg

News Group

ProLogix

Donneley

The Organic Cotton Project One of 12 Sustainable Value Creation Networks—huge implications for supply chain OD theory Involves the purchase of 10 million pounds of organic cotton will keep 3 million pounds of synthetic chemicals from entering the environment.

One of 12 Sustainable Value Creation Networks—huge implications for supply chain OD theory

Involves the purchase of 10 million pounds of organic cotton

will keep 3 million pounds of synthetic chemicals from entering the environment.

Activation of Inquiry into “What Gives Life?” “ Appreciable World” Advancing Extension of Relatedness & Universal Capacity High Initiating Lo w AI’s Strengths-based Change Dynamic Elevate-and-Extend Broaden-And-Build  Theory of Co-elevation Establish-and-Eclipse Elevation and Extension of Inquiry Pro-Fusion of Strengths “ Broaden and Build” Activation of Energy Establish and Eclipse

AI’s Strengths-based Change Dynamic

Elevate-and-Extend

Broaden-And-Build  Theory of Co-elevation

Establish-and-Eclipse

Please Visit our Center http://worldbenefit.cwru.edu www.bawbglobalforum.org [email_address]

BUSINESS AS AN AGENT OF WORLD BENEFIT MANAGEMENT KNOWLEDGE LEADING POSITIVE CHANGE

A question about the future of management education: If anything imaginable were possible…?

Business Innovators Most Privileged Generation ML King…. “ Thank God Our Time is Now” Every Global Issue of Our Day is A Business Opportunity Power of Positive Intention: Cradle to Cradle; BOP; Blue Ocean Sustainable Design Factory—Power of Collaborative Creativity. Why this is the future of the top rated stars in every industry.

Every Global Issue of Our Day is A Business Opportunity

Power of Positive Intention:

Cradle to Cradle; BOP; Blue Ocean

Sustainable Design Factory—Power of Collaborative Creativity.

Why this is the future of the top rated stars in every industry.

More Learning Resources For leadership training—see the Weatherhead School of Management’s Certificate Program in Appreciative Inquiry and Positive Business and Society Change (next session in December in Longboat Key Florida)—contact: [email_address] 216-368-6413 New program Sustainablity for Profit and Value with contact (with Chris Laszlo author: The Sustainable Company) contact James Van Doren. Call Pat Petty for Masters in Positive Organization Development 216-368-2055

For leadership training—see the Weatherhead School of Management’s Certificate Program in Appreciative Inquiry and Positive Business and Society Change (next session in December in Longboat Key Florida)—contact: [email_address] 216-368-6413

New program Sustainablity for Profit and Value with contact (with Chris Laszlo author: The Sustainable Company) contact James Van Doren.

Call Pat Petty for Masters in Positive Organization Development 216-368-2055