2. • Corporate sustainability: It requires a shift from shareholders
to stakeholders concept and a business model that goes
beyond shareholders’ wealth maximization to incorporate
environmental and social dimensions. Lo, S-F and Sheu, H-J
(2007) found a significant positive relation between corporate
sustainability and corporate market value. Their study
indicated that companies with remarkable sustainable
development strategies are more likely to be rewarded by
investors in the financial markets.
•
3. Corporate Reporting: Current corporate financial reporting
does not require specific disclosure of corporate social and
environmental activities. Some large companies, however,
voluntarily disclose their contribution to social well-fare (See
handouts).
4. Financial Analysis and Social Well-Fare: traditionally, financial
analysis courses focus on financial performance and more
specifically on profitability and risk. Corporate social
responsibility receives little or no attention in classrooms.
The concept of shareholders’ wealth maximization
dominates the analysis. The concept of stakeholders rarely
receives attention by financial analysts.
5. Modifying Course Content and Teaching Methodology:
Students were required to pick companies that offer social
responsibility reports. Perform analysis for both financial as
well as social performance through the use of a variety of
analysis techniques such as ratios, common size, and
narratives.
6. Management Ethics and Responsibility: Management
performance is measured not only by achieving financial
goals, but expanded to include achieving ethical standards in
financial reporting and accounting quality, stakeholders
wellbeing, and contribution toward sustainable social well-
fare of their communities.
Course Learning Outcomes: Learning outcomes are modified
to align with the UN’s six principles for responsible
management education.
8. History
Established by Congress in 1987 for manufacturers, service
businesses and small businesses
Mission: To improve the competitiveness and performance of U.S.
organizations
The framework for performance excellence is an integrated,
systems-based approach to:
deliver value to customers and stakeholders
achieve world-class results
encourage learning and innovation
promote organizational improvement and ultimately
organizational sustainability
10. Societal Responsibility
The concepts of social/societal responsibility and
sustainability have evolved within new versions of the
Baldridge Criteria, reflecting business trends in general as
well as the growth of sustainability globally.
Focused on organizational sustainability
Has been expanded to include an organization’s impact on
environmental, social and economic systems and its societal
responsibility in these areas.
11. What is Sustainability?
Sustainability reporting is a process for publicly disclosing an
organization’s economic, environmental, and social
performance.
It has become a standard to ensure the shareholders,
customers, and community about overall organizational
performance.
13. Criteria on Leadership
Like the GRI framework, the Criteria recognizes that an integrated and strategic
approach to societal responsibility is a senior leadership responsibility.
Criteria Discusses how organizations should govern and meet their social
responsibilities:
Governance, a key area of sustainability and corporate responsibility addresses
accountability, transparency and performance evaluation of leadership.
Legal and Ethical Behavior, addresses the adverse impacts of products and
operations on society and anticipates public concerns.
Addresses compliance processes, including goals for surpassing regulatory and
legal requirements as well as promotion and monitoring ethical behavior.
Addresses the community and how an organization identifies and supports it.
Ex: philanthropic work, describing roles on non-profit boards, staff volunteering in
the local community, participation in blood drives, and financial contributions to
charities.
14. Benefits of Reporting!
Performance management and governance tools
Identification of risks and opportunities
Strengths and weaknesses
Continuous improvement and innovation
Demonstration of transparency and accountability
Increased stakeholder trust and engagement
Enhanced brand value and market differentiation
Workforce attraction, retention, and engagement
Competitive advantages
Comparability/benchmarking
17. K&N Management
2010 Malcolm Baldrige National Quality Award
Sustainability Initiatives:
A succession plan for senior leaders, established with processes
and systems to ensure the sustainability of the leadership
system and the organization.
Fiscal meetings are internally conducted each month by key
senior leaders to review the Profit and Loss statements in order
to analyze fiscal performance opportunities
Internal and external reviews protects interests and takes measures
to ensure sustainability through fiscal and legal responsibility
18. Initiatives cont.
Prepare for and handle seasonal or economic fluctuations in business volume
through forecasting and scheduling based on historical trends
Operate through tight inventory controls, security cameras, thorough training
processes, and cross training to ensure labor and food cost goals are
consistently met.
This is evident in the continuing rise in gross profit margin
Senior leaders foster an organizational environment that requires legal and
ethical behavior by stressing the organizational core value, relationships, and
by using the plan-do-check-act process
Promotes care for the environment through recycling efforts
Recycle glass bottles and cardboard.
Grease traps are properly rendered and collected by an approved vendor
Cups are designed to be multi-use instead of single-use
Participate in the Keep Austin Beautiful campaign, maintaining the cleanliness
of two local streets.
19. Henry Ford Health System
2011 Malcolm Baldrige National Quality Award
Sustainability initiatives:
Vendor Compliance Policy, which specifies vendor requirements for
staff interaction and enhances patient safety by controlling vendor
access to patient care areas
The BOT Nominating & Governance Committee reviews the
composition of all boards to ensure members possess required skill
sets and reflect each BU’s community, culture, and demographics.
To ensure long-term sustainability, launched an Enterprise Risk
Council (ERC) in 2010.
Responsible for designing and executing a robust enterprise risk
management program.
20. Initiatives Cont.
HFHS conserves natural resources directly and through their
supply chain.
Processes include: materials recycling, pest management to use
less toxic materials, cleaning with low-volatile organic
compound and Green Seal products, stocking unbleached
products in bathrooms and wash stations, high-efficiency
lighting, food service process redesigns to reduce food waste,
and System-wide shift to healthier food choices.
All new construction meets “green” standards, using recycled
flooring products with low-volatile organic compound finishes
and “green” wall coverings.
21. Schneck Medical Center
2011 Malcolm Baldrige National Quality Award
Sustainability initiatives:
promoting and supporting the philosophy of a Just Culture
The “Green Team” was formed with the purpose of educating
and promoting awareness of environmental stewardship though
reducing, reusing, or recycling waste.
SMC recycles paper, bottles,plastic, batteries, cans, metal, cardboard, and
light bulbs.
recycled 183.6 tons of plastic, glass, metal, paper, and cardboard in 2010 for a
recycling rate of 35%. SMC was the only independent healthcare organization in
Indiana to be recognized by Practice Greenhealth in 2011.
22. Initiatives Cont.
The Operational Rhythm, was developed and deployed to provide a
more systematic approach to performance review and evaluation,
helping to sustain the key changes resulting from implementation of
action plans.
Leaders review actual performance in achieving strategic objectives
against measurable goals
In 2010, nursing began to evaluate how much linen was actually
needed in a patient’s room. after measuring how much was actually
being utilized, nursing began to cut back on the linen delivered in
each room.
All employees were given insulated mugs to use in the cafeteria.
When employees use the mugs in the cafeteria they are able to
purchase drinks for just $0.25.
23. Summary of Initiatives
Commonalities shared between all winners
Social well-being programs through support of local charities
Program that tracks efficiency of current management practices
Educational services provided to clients or community members
Programs to detect future concerns
Environmental care
Either through a specific team or initiatives to reduce waste or
improve waste management
