Some ideas on corporate sustainability More information on www.lhyra.com www.rst-org.it (only italian)

1. SUSTAINABILITY
ABSTRACT
CORPORATE
October 2007
CORPORATE SUSTAINABILITY ABSTRACT EN.02
Integrating Social and
Environmental problems in
business

2. ANTICIPATING A TREND
CORPORATE SUSTAINABILITY
CORPORATE SUSTAINABILITY
Companies are generally used to following trends, in many situations, addressing the latest challenges and reacting to market
opportunity. Wherever they define their position, it ultimately depends on their appetite for risk , ability to innovate, investment
strategy and their culture.
INNOVATION AND MARKET DIRECTION NATURAL BENT
TIME
Majority of companies according to their MAJORITY Big Companies, Multinationals, “Morning
investment strategy and innovation. Star”, Market drive makers
Slumping or phasing-out Companies,
industrial Third World.
CORPORATE SUSTAINABILITY ABSTRACT EN.02
EARLY ADOPTERS
LATE EARLY
“OLD WAY”
Innovating and “Visionary” Companies
INNOVATORS
BENEFIT / RISK
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3. SOCIETY AND COMPANY
CORPORATE SUSTAINABILITY
CORPORATE SUSTAINABILITY
Throughout the ages, every single society has adapted to its environment for survivability and prosperity.
There exists a healthy consideration (and respect) for the total environment (people, animals, resources...)
SOCIAL RESPONSIBILITY EVOLUTION OF COMPANIES DURING THE TIME
Environment protection.
RESPONSIBILITY AND
BELONGING SENSE
Social Responsibility of
companies, Privacy, equal
opportunities, security.
Awareness of Human and
Civil Rights of workers.
Book-keeper principles.
Business as Divine Progressive taxation of
Right. No duty for incomes as social justice.
CORPORATE SUSTAINABILITY ABSTRACT EN.02
neighborhood.
TIME
MIDDLE AGE INDUSTRIAL REVOLUTION COMPUTER AGE TODAY ->
(COIN) (COKE) (BIT - INFORMATION) (CO2 - ENVIRONMENT)
TRADE ASSOCIATIONS CONSUMERISM SOURCES LIMITED NATURE
FINANCE UNIONS ADVERTISING PROTECTING VS. WASTING
AUTHORITY
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4. SOCIETY AND COMPANY
CORPORATE SUSTAINABILITY
CORPORATE SUSTAINABILITY
The last 20 years, the issues of Corporate Social Responsibility (CSR) and Environmental issues
have converged and joined.
The early 20th century
– Corporate Social 1950 – Corporate Social Responsiveness: solving problems need
Responsibility
beginning.
1970 – Environment debate
1980 – STAKEHOLDER theory 1980 – World Conservation Strategy
1990 – Rio's Conference.
2000 – Corporate Social Performances 2000 – Corporate Sustainability
CORPORATE SUSTAINABILITY ABSTRACT EN.02
Social and environmental problems
matching.
• TRIPLE BOTTOM LINE
• STAKEHOLDER ORIENTED
ISSUE MANAGEMENT
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5. TRIPLE BOTTOM LINE
CORPORATE SUSTAINABILITY
CORPORATE SUSTAINABILITY
PHILANTHROPIC
DESIDERED
RESPONSIBILITY
Interaction between Business and Society cause a series of
responsibility that we can sum up in this way, using a
ETHICAL
famous definition: RESPONSIBILITY EXPECTED
LEGAL
RESPONSIBILITY REQUIRED
ECONOMICAL
RESPONSIBILITY REQUIRED
CORPORATE SUSTAINABILITY ABSTRACT EN.02
The “official” definition of CSR was given by the European Community in 2001, thanks to the growing interest in this problem:
“a concept whereby companies integrate social and environmental concerns in their business operations and in their
interaction with their stakeholders on a voluntary basis. Being socially responsible means not only fulfilling legal
expectations, but also going beyond compliance and investing more into human capital, the environment and the
relations with stakeholders”
SOCIAL AND ENVIRONMENTAL SUBJECTS THAT CAN NOT BE DISJOINED FROM BUSINESS.
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6. TRIPLE BOTTOM LINE
CORPORATE SUSTAINABILITY
CORPORATE SUSTAINABILITY
TRIPLE BOTTOM LINE defines Corporate Sustainability as business goal, in that it is definable as an investment
characterized by a risk and return. The International Financial Community has endorsed these concepts, leaving it
to the individual company to determine their own risk and reward measures based upon their own assessment:
Triple Bottom Line is a more complete and more productive estimate than a business condition.
SUSTAINABLE INDEX (Down Jones, FTS4good)
SOCIAL RESPONSIBLE INVESTMENT (SRI)
CORPORATE SUSTAINABILITY ABSTRACT EN.02
CARBON DISCLOSURE PROJECT (CDP)
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7. BOOSTER
CORPORATE SUSTAINABILITY
CORPORATE SUSTAINABILITY
Turning Corporate Social Responsibility into TBL,
was enabled through merging of Environmental
and Social concerns, which provided both of
these workstreams a terrific boost and a
greater exposure.
L
SOCIAL
TB
ENVIRONMENTAL problems strike EVERYBODY.
CORPORATE SUSTAINABILITY ABSTRACT EN.02
Unlike mere Social problems that usually strike “the others”, “the
poor ones” and “the unfortunate”, and can be traced to the actions
or in-actions of Corporations which value the company reputation
ENVIRONMENTAL Environmental issues strike all market segments that could result in
a company crisis. As risk averse decision makers, the Environment
is becoming a major force in company risk profiles.
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8. SET ROUTE
CORPORATE SUSTAINABILITY
CORPORATE SUSTAINABILITY
A company has the important social duty to mitigate its imminent environmental risk, according to the company culture and
responsibility.
Global warming is upon us, whatever the reason is and whatever the solution to resolve it, just like the (more or less effective)
connected projects, based on a “Carbon Free” philosophy.
A leading company must be at the forefront of change, responsible for its decisions, both in terms of market and of
social approval.
CORPORATE SUSTAINABILITY ABSTRACT EN.02
CORPORATE BUSINESS ACTIVITY
SUSTAINABILITY
MARKET RULES AND
SOCIAL CONSENT CONSTRAINTS
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9. SET ROUTE
CORPORATE SUSTAINABILITY
CORPORATE SUSTAINABILITY
EVOLUTION OF GLOBAL BUSINESS POLITICAL COMPARISON WITH RESPECT TO ENERGY AND ENVIRONMENT
New business opportunities given
Increasing among people of
by technological development and
environmental and social awareness
new backgrounds
and responsibility
Politicians standing for present
establishment
Present ruling business class
Mistrusting the new
Holding out against changes
CORPORATE SUSTAINABILITY ABSTRACT EN.02
Worsening of the environmental Expecting new political and business
situation and increased pressure to powers to replace the “old ones”
correct the problem
CRISIS SOLVING
DENYING THE
DENYING THE MAKING LIGHT
MAKING LIGHT DELAYING
DELAYING …… SITUATION EMERGENCY
OBVIOUS
OBVIOUS OF PROBLEMS
OF PROBLEMS SOLUTIONS
SOLUTIONS
TODAY
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10. MACROSTRATEGY
CORPORATE SUSTAINABILITY
CORPORATE SUSTAINABILITY
It would be a great mistake to ignore this problem, the risk is I
am resisting the pressure to act and by doing so relinquishing
interesting visibility / market areas.
Every leader company in its business sector, has the right and
obligation to establish a corporate position on the
Environment and to set out an EFFECTIVE STRATEGY.
A strategy made by outward Communication (Clients,
Providers, Opinion Leader etc), inward Communication
(Employees, controlling and controlled companies etc) and
Action (reduction of energy waste, generating energy from
renewable sources; new less social impact products / services;
CORPORATE SUSTAINABILITY ABSTRACT EN.02
territorial projects for a natural and sustainable development
etc).
Return on Investment will be immediate and in the shortest
amount of time it will be able to recoup the initial investment
and to show positive effects on P&L.
.
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11. PAY-BACK
CORPORATE SUSTAINABILITY
CORPORATE SUSTAINABILITY
STRATEGY
+
BUSINESS
PURPOSE
+
Reduction of supplying direct expenses.
Reduction of waste.
Reduction of risk - even from an
insurance point of view.
SOCIAL
Increase of company visibility.
New market areas to enter.
BUSINESS
CORPORATE RETURN Competitive asset on competitors.
SUSTAINABILITY
New assets from capital market.
Higher sense of belonging and motivation
CORPORATE SUSTAINABILITY ABSTRACT EN.02
of personnel (increase of productivity and
ENVIRONMENTAL retention of talent).
Visibility in big corporations (personal
gain for management).
According to the current aged and outdated thinking, Corporate Sustainability is viewed as an exclusive course of action for
large corporations - big companies “spending some money on social causes in return for good publicity”. Adding
BUSINESS PURPOSE and STRATEGY to these ACTIONS, creates a course for quick return on investment.
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12. LHYRA’S PROPOSAL
CORPORATE SUSTAINABILITY
CORPORATE SUSTAINABILITY
Sharing Knowledge of environmental and social problems, of
global and depth of their consequences on the whole company
frame-work.
SHOULD HAVE A SPECIFIC SERVICE FOR
EVERY SINGLE COSTUMER COMPANY
Obtaining in the shortest time a "company assessment of risk
and opportunities" concerning a specific business area. Testing
if complete or not, with actions and /or corrective actions the
PRECISE NEEDS:
company can implement to achieve desired results.
CUSTOMER
CHANGE MGT
Obtaining an accurate and constant analysis on the area trend
KNOWLEDGE SHARING (in Italy and abroad) and about instances that could have some
effects on company business.
SUSTAINABILITY CONSULTING
CORPORATE SUSTAINABILITY ABSTRACT EN.02
Watching out on traditional business so as to avoid negative
effects from surrounding context and to turn shared experience
in one business to boost sales or margins in others.
Encouraging the creation of an internal company frame-work to
use these abilities as a new strategic opportunity for a
competitive advantage.
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13. CORPORATE SUSTAINABILITY
CORPORATE SUSTAINABILITY
We help you to understand why your current
business models will not be effective and rewarded
in the same way in the future.
Together we will find innovative solutions to flip it
CORPORATE SUSTAINABILITY ABSTRACT EN.02
upside down.
October 2007 LHYRA srl
Do not hesitate to address any question to greenworld@lhyra.it Via Mario Savini, 15
00136 ROMA
www.lhyra.it
info@lhyra.it
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