Corporate Sustainability Management


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Corporate Sustainability Management

  1. 1. Corporate Sustainability Management Integrating Sustainability into Strategic Planning & Business OperationsPHILIPPINES :: MALAYSIA :: VIETNAM :: INDONESIA :: INDIA :: CHINA
  2. 2. Learning Bites • Understand the concept of Corporate Sustainability • Identify key drivers of Corporate Sustainability • Determine ways of becoming a sustainable enterprise • Establish a roadmap for your organization for Corporate Sustainability
  3. 3. Sustainability Timeline – The Perspectives Established sects Established Corporate Corporations & and hierarchy in the Structures with globe Ideas evolve in the Individuals acting on a society for effective seen as Business form of The Ecology sustainable governance Enterprise of Commerce environment practices Business ethics & People get first hand idea of CSR idea of sustainability and Care and fear to Contribution to the preached the lifecycle thru Cradle protect the society & CSR practice to Cradle. environment in the acknowledged (SA name of God 8000). Triple bottom-­line established & driving organizations towards SUSTAINABILITY Early Ages Early -­‐ Mid 1900 1980 -­‐ 1999 2000 & Beyond
  4. 4. Company Value “Iceberg” 1980s 2000 & beyond Tangibles Financials – 29% Tangibles Financials – 83% Intangibles Intangibles Non-­financials – 71% Non-­financials – 17%
  5. 5. Triple Bottom Line Concept of Sustainability
  6. 6. Concept of Triple Bottom line & Corporate Sustainability The triple bottom line has significant impact and defines the way stakeholders of an organization view sustianability Stakeholders Customers Employees Society Partners Stewardship Economic Trust Long-­‐termThemes – Triple Bottom line value Increased PAY-­‐OFFs revenue Loyalty Environment Reduced risk & costs Increased Motivation productivity Social Resp.
  7. 7. Key Drivers of Sustainability The prime aim of sustainability is to minimize all negative effects and maximize all positiveeffects to meet stakeholder objectives. It is driven by 6 major factors which also represent the impact that sustaibility has onsupply, demand and the rules of the game itself 1. Employees 2. Natural Resources 6. Policies & 3. Capital Markets Regulations 4. Consumers (as citizens) 5. Stakeholder Influence
  8. 8. Typical Holistic Sustainable Enterprise © Institute for Sustainable Enterprise, 2006 How do we get there?...
  9. 9. Roadmap to Creating Sustainable Value The Key Components of Sustainable Business Stakeholder Engagement Corp. Governance & Sustainability Mgmt Economic Sustainable Environmental ERM Reputation Stakeholder Value Social The The PIllars Business Understanding & The BenefitsFoundation Processes, Reputatio Influecing n & Risk Mgm‘t
  10. 10. Organizational Value Chain HR IT ADM PRC INTERNAL Sales & Marketing THE COMPANY Implementation CUSTOMERS Operations / Production PRODUCTS / SERVICES Group U’ STAKEHOLDER EXTERNAL SATISFACTION CUSTOMERS OTHER SHARED SERVICES Demonstrate and deliver a sense of connection for integration osf sustainability within the whole group Ensure Practice of Sustainability
  11. 11. Typical Holistic Sustainable Enterprise “You don’t have to be a weatherman to know which way the wind blows” -­ Bob Dylan
  12. 12. Keys to Become a Sustainable Enterprise1. Understand the CASES of Sustainability and address the “Shear zones” The Three Sustainability Cases The Human Case The Green Case Economic Sustainability 1,2,3 – Shear zones Eco-­effectivity Economic Equity 1 2 Eco-­efficiency Social Productivity 3 Ecological Equity Sufficiency Ecological Sustainability Social SustainabilityThese zones created due to constant flux of the triple bottom lineIt is in these zones that most of the challenges and opportunities arise
  13. 13. Keys to Become a Sustainable Enterprise2. Identify and Appreciate Strategic Options to Practice Sustainability Key Options Differentiate based on Partner with NGOs & agencies 1st mover advantage to win stakeholder trust ex: ex: TOYOTA Prius LaFarge with WWF PHILIPS Greenlighting 1 2 Marks & Spencer with MAS Holdings Combine the strategies to 4 3 Proactively engage in shaping achieve maximum benefits the rules that benefit society ex: US Climate Action Partnership
  14. 14. Keys to Become a Sustainable Enterprise3. Apply the best practices of Performance Measurement (BSC) & IncorporateSustainability ManagementWhy Balanced Scorecard Approach? BSC tries to establish an equilibrium among various critical aspects of the business Considers and focuses on both short term & long term goals Address both Internal & External perspectives Provides enablers that relate to the future goals and results which provide the history Balances the qualitative (soft) and quantitative (hard) facts of the business to make decisions Can be easily extended to address and accept the sustainability component either as a shared service or as an individual component
  15. 15. Keys to Become a Sustainable EnterpriseTypical Balanced Scorecard SHARED CORE VALUES Shared CORPORATE LEVEL Vision Shared Mission Group Goals Group 3 Group 2 Group 1 Group 3 Group 2 Group 4 Group 1 GROUP LEVEL GROUP SCORECARD Financial Core Business Units People Support Groups Operational Market / Customer
  16. 16. 7 Benefit Areas 1. Reduced recruiting costs 2. Reduced attrition costs 3. Increased employee productivity 4. Reduced expenses in manufacturing 5. Reduced expenses at commercial sites 6. Increased revenue -­ market share 7. Lower insurance & borrowing costs
  17. 17. In Closing… Sustainability is smart business New market forces -­ risks are in play Public expectations are rising Talk business language Show relevance to existing priorities You are not alone;; find partners Opportunity for leadership
  18. 18. Thank you very much!­‐international