• www.doughtycentre.info“Sustainability and Responsibility at the Heart of Successful Management.”
Financial Times EDITORIAL - January 26, 2012 -Ruling capitalism• “The excesses that drove the bubble and the breakdown that followed happened because leaders forgot that free enterprise requires rules. ……• Good ground rules are a public good; as such they are the responsibility of states. Capitalism needs the state: not to run the economy but to regulate how individuals run it and have them face the consequences of their actions. Governments did not tend to this essential function – least of all in financial markets…”
Financial Times EDITORIAL - January 26, 2012 -Ruling capitalism• “laws and regulations are not all. Since Adam Smith, intelligent defenders of free markets have known that capitalism works best when people’s free choices are also governed by moral values. The cardinal virtue for capitalists is to support rules that make capitalism a success.”
Source: Optimum Population Trust: www.optimumpopulation.org
30 – 45% of the total population of countries like Japan, Germanyand France will be aged 60+, while countries like China andMexico will experience a tripling of this segment by 2050 Projected Population aged 60+ as percentage of overall population in 2010, 2030 and 2050 2010 2030 2050 US 18.2 25.3 27.4 Mexico 9.4 17.7 28.2 UK 22.7 27.2 28.8 Almost tripling of Brazil 10.2 18.9 29.3 Population aged 60+ by China 12.3 23.4 31.1 2050 Russia 18.1 25.0 31.7 France 23.2 30.4 32.6 Spain 22.4 30.1 37.5 30 – 45% of total Population will Italy 26.6 34.8 39.1 be aged 60+ in 2050 Germany 26.0 36.5 39.5 Japan 30.5 37.9 44.2 Source: United Nations (2009) . World Population Prospects. 9
Growth: The global middle class is rapidly expanding100-150 million people will join the world’smiddle class…every year between now and 2030
The Perfect Storm?Prof. Sir John Beddington – UKGovernment Chief Scientist Increased demand 50% by 2030 (IEA) Energy1. Increasing population2. Increasing levels of Climate urbanisation Change3. The rightful goal to alleviate poverty Food Water Increased demand Increased demand4. Climate Change 50% by 2030 30% by 2030 (FAO) (IFPRI)
It is one of those moments where a scientific realisation, like Copernicus grasping that the Earth goes round the sun, could fundamentally change people’s The Economist view of things far beyond science. It means more than rewriting some textbooks. It means thinking afresh about the relationship between people and their world and acting accordinglySource: The Economist, May 26th 2011
Welcome to the Anthropocene The Economist• For humans to be intimately involved in many interconnected processes at a planetary scale carries huge risks.Source: The Economist, May 26th 2011
Environmental Stress - HungerWater scarcity Demography Crop decline HungerHunger Information Source: UN Millennium Development Goals 2005 - Criteria - Developing Countries more than 20% of populationundernourished.
Environmental Stress - Thermal Expansion Water scarcity Demography Crop decline Hunger Coastal riskHunger Information Source: UN Millennium Development Goals 2005 - Criteria - Developing Countries more than 20% of populationundernourished.
Multiple Stress Zones Water scarcity Demography Crop decline Hunger Coastal riskHunger Information Source: UN Millennium Development Goals 2005 - Criteria - Developing Countries more than 20% of populationundernourished.
Recent ConflictHunger Information Source: UN Millennium Development Goals 2005 - Criteria - Developing Countries more than 20% of populationundernourished.
IslamHunger Information Source: UN Millennium Development Goals 2005 - Criteria - Developing Countries more than 20% of populationundernourished.
• "...the responsibility of enterprises for their impacts on society• EU Commission Communication on CSR Oct 2011• http://ec.europa.eu/enterprise/policies/sustainable- business/files/csr/new-csr/act_en.pdf• For further definitions: www.som.cranfield.ac.uk/som/p14347/Research/Rese arch-Centres/Doughty-Centre-Home/About- Us/Defining-CR
Corporate SustainabilityIs a business approach that creates long-termshareholder value by embracing the opportunitiesand managing the risks associated with economic,environmental and social developments.PWC - SAM - The Sustainability Yearbook 2008
“Everysingle socialand globalissue of ourday is abusinessopportunityin disguise.”
1. Brand value andreputation2. Employees and futureworkforce3. Operationaleffectiveness4. Risk management5. Direct financial impact6. Organisational growth7. Business opportunity
Sustained Value Creation Brand value Employees Operational Risk Direct Organisational Businessand reputation and future effectiveness management financial growth opportunity workforce impact Engaged Engaged Engaged Engaged Engaged civil employees customers suppliers communities society Measure and Opportunities for Empowered Ambitious sustainability Focus on mostreport impacts investment stakeholders goals linked to core material purpose & strategy impacts if Improved environmental, social and government performance
Level of Engagement With CSR/Sustainability Function“Engaged (4+5),”* 2011 Engagement is high in the communications-focused functions Highest in consumer products/retail sector (75 percent) vs. others (57 percent) Given that innovating for sustainability is highlighted as important for business success and improving trust in business, the lower level of engagement here appears to be an issue. Convincing investors abut the value of sustainability is an important leadership challenge, and this lower level of engagement is perhaps a contributing factor to this challenge. The lower degree of engagement with companies’ approaches to CSR/sustainability is an issue given its importance to employee satisfaction and recruitment efforts. *Percentage of respondents who selected (5) plus (4) on a 5-point scale, where 1 is “not at all engaged with CSR/sustainability,” and 5 is “very engaged with CSR/sustainability.” Q: Please rate the level of engagement that each of the following functions within your company has with your company’s CSR/sustainability function.
C SUITE OF ROLES• C ommunicator• C oach• C onsultant• C odifier• C onnector• C onscience• C ajoler
competencies• Thought leadership• Communication skills• Selling and persuading• Creative problem solving• Strategic vision• Horizon scanning/seeing the bigger picture and bringing that into the organisation• Being a leading and good example• Being credible and having gravitas• Be approachable• A good networker• Understanding the politics of an organisation• Well informed and trend spotting• Being resilient• Innovative thinking• Strong business basics• Commercial acumen• Influencing ability• Being flexible
skills• Ability to analyse and understand data• Understanding motivations for behaviour and how to change that (including engagement)• Running change programmes• Developing identity and helping employees develop understanding• Facilitation of meetings, workshops and with external parties• Develop strategies• Build a business case• Create a tactical plan, and measure and report on progress• Stakeholder engagement and management• Engaging with a variety of stakeholders, from trade bodies to NGOs, suppliers and legislators• Running training and education programmes• Report writing• Presentation skills• Running cross-functional working groups or projects• Learn on the job• Tri-sector partnering experience• Getting on agendas and agenda setting• Interpretating and translating• Finding business opportunities• Writing skills• Experience addressing sustainability issues from human rights to CO2 emissions, diversity to ethical trade•