David Cooperrider and Chris Laszlo team up for an executive education leadership program on creating sustainable value through whole system Appreciative Inquiry methods. The course is taught at the Weatherhead School of Management at Case Western Reserve University and in companies around the world.

1. Sustainability for Value and Profit David L. Cooperrider and Chris Laszlo February 2009

4. Changing Context of Business The Most Exciting Project I Have Ever Worked On

7. Business as an Agent of World Benefit --More Than 2,000 Interviews --100s of Published Profiles “Positive Institutions” --s ee www.worldinquiry.org “Awe is What Moves Us Forward”

8. “ Meeting the needs of the present without compromising the ability of future generations to meet their own needs” Brundtland Commission, 1987 “A business approach to creating long-term shareholder and stakeholder value by embracing opportunities and risks deriving from economic , environmental , and social developments” The Dow Jones Sustainability Group Index, 2001 Definition of sustainability: People, Planet and Prosperity

9. Stakeholders are now a powerful force in business

10. Sustainable Value Stakeholder Value ¹ Shareholder Value + + - Unsustainable (Value Transfer) Unsustainable (Value Transfer) Unsustainable (Lose/Lose) Sustainable Value - Value is sustainable only when it is positive for shareholders and stakeholders fossil fuel ICE

12. Sustainable Value Partners © 2007 Complying to government regulations Reducing costs Sources of Business Value Levels of Strategic Focus Business Context Brand/ Culture Market Product Process Risk What’s Next The six levels of value creation Differentiating products & services Meeting needs for sustainability solutions Developing sustainability brand identity. Becoming an employer-of-choice Shaping legislation: “new rules of the game”

15. Business Value & Societal Value Observable Stages in Industry Leadership

16. Interview with Jeffrey Immelt, CEO Eco-imagination as “spectacular business opportunity”

21. Sustainable Value… Design Networks Energy Waste Products 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

22. Stories Have Wings

25. Fleet of Class 8 heavy trucks 25% more fuel efficient in 3 years

26. Existing stores 20% more efficient by 2012; new stores 25-30% by 2009 Interior with sales floor lighting in “full off” mode LED Refrigerated Display Lighting

31. It isn’t enough to do “less bad”. The biggest opportunity is “doing good” (Eco-Effectiveness) Eco-Efficient Eco-Effective Impact on the environment Source: MBDC High Low negative impact positive impact

33. Social example: serving the Base of the Pyramid 1 billion people with incomes > $15,000 per year 1.5 billion people <$15,000 but >$1,500 per year 4 billion people <$1,500 per year Saturated markets Incremental adaptation New market capability $13 trillion

34. Source: FT, April 20, 2004 What You See is not What it is………..

35. The Vision: The Base of the Pyramid Protocol To create inclusive, mutually beneficial business processes through which the private sector and local communities build economic, social and environmental value. A Process for Mutual Value Creation

36. The Jaipur Foot

38. Sustainable Value The opportunity for business is value creation (not only regulatory compliance) Stakeholder Value ¹ Shareholder Value + + - Unsustainable (Value Transfer) Unsustainable (Lose/Lose) - ¹ environmental, social, and economic impacts Sustainable Value Partners © 2007 Sustainable Value Opportunities Enhanced reputation Product differentiation Motivated employees License to operate Entry into new markets Unsustainable (Value Transfer) Risks Customer de-selection Preemptive regulation Reputation damage Fines, penalties Loss of market share

39. Is Sustainability a Passing Fad?

41. An area of intact forest the size of Panama is lost each year

42. A new study by Stanford University estimates that all commercial fish species will be lost by 2048

43. Over the last 50 years water use has tripled, increasing faster than population

44. An estimated 100 million tons of plastic trash circulates in the Pacific Ocean, concentrating toxins and entering the food chain

48. BioEnergy Platform + Plug-in Modules Support Rural Medical/Health Care Teams Slide Technology Management, Inc.,▼9718 Lake Shore Boulevard, Cleveland, Ohio 44108▼216-541-1000▼ [email_address] A&B C D E&F Clinical Telemedicine Public Health Global Health Delivery U.S. Manufacturing and Engineering Biomass to Energy @OSU College of Food, Ag, Env Sciences Fuel Cell Systems Biomass to Energy @OSU College of Food, Ag, Env Sciences

51. 1. HIGH POINTS Patterns & Themes Be ready to share one best story from group 2. CONTINUITY: THINGS TO KEEP EVEN AS WE CHANGE: --example sustainability innovations: your company and others you admire: 3. IMAGES OF THE FUTURE WE WANT—WHAT IT LOOKS LIKE IN 2014

60. The AI Organization Summit Method Creating an Alignment of Strengths Using Large Group Methods

66. AI Summits: Three Ways to Understand Positive Change

68. The AI 4-D Model of Strengths-Based Change Discovery “ What gives life?” The best of what is. Appreciating Dream “ What might be?” Envisioning Results/Impact Design “ What should be – the ideal?” Co-constructing Destiny “ How to empower, learn, and improvise?” Sustaining Affirmative Topic

70. Fairmount Minerals Story Unleashing Eco-innovation and Business Breakthrough

72. Images of the Sustainable Design AI Summit

74. 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 energy, waste & process costs—future of totally renewable energy Sustainable-value, low-energy products Using BOP and Blue Ocean strategy to open new markets New story, identity, passion Leading industry stars, associations, policy

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

78. AI at the UN World Summit With Business and Industry CEOs and Civil Society Leaders

85. Sustainable Value Networks Energy Waste Products 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

88. Publisher Printer National Distributor Wholesaler Merchandiser Logistics Provider Freight Advertiser Retailer Consumer RDA Consultant Magazine Industry System Map

90. Sustainability Index Summit Taking Action to Address a Global Imperative…Universities in Partnership With Business and Society Saving people money so they can live better July 14-16, 2008

91. Mature Phase: (Textiles example) SKU specific questions add greater level of detail and insight into specific product performance Hypothetical and illustrative Emphasis moves to product-specific scoring. Product scores roll up to influence supplier score. (Up to 1 score per SKU; products of the same profile could be grouped in one score) Weight Raw Material Inputs Manufacturing/ Processing Transport/ Packaging/ Sales Product Use End-of-Life/ Recycling Supply Chain Goals Energy and Climate 40% Suppliers track on-farm energy use? (Y/N) Energy use per unit of finished product? (ranges will be provided) Hang tag on energy use during garment care? (Y/N) To reduce the use of non-renewable energy and greenhouse gas emissions. Material Efficiency 20% Uses fibers or irrigation practices that reduce field water use? (Y/N) Water consumption per unit of finished product? (ranges will be provided) Use of recycled materials in fabric production? (Y/N) To maximize efficient use of all materials, minimizing waste and costs. Natural Resources 20% Is the product organic or transition? (Y/N) Use of a restricted substances list for factory practices? (Y/N) Hang tag on use of laundry detergents? (Y/N) To ensure the integrity of ecosystems and a safe, reliable supply of raw materials. People and Community 20% Is product Fair Trade certified? (Y/N) To protect quality of life and safeguard human health.

92. Leveraging the Power of Associations for a New Magnitude of Socially Responsible Leadership

93. What OvationNet’s Technology Made Possible

94. Technology…Behind the Scenes Streaming video presentations help dissolve the boundaries of location

95. Jeffrey Sachs Streaming Live To Virtual Participants At the Gaylord

96. Full participants in Day One Connected Locations

97. Virtual Roundtables

99. 1970 1999 1980 1995 Integration level Social Responsible Investments Investments in Environmental Technology Investment in Eco-Efficiency Triple Bottom-line Investment 2000-8 Value-based negative screening Low diversification High volatility Higher value creation Lower eco-footprint Single Bottom line = Shareholder Value Triple evaluation Not market driven Innovest EcoValue‘21 & Intangible Value Assessment Perspective of SRI Rating Agencies Source: Innovest F E S 3 in 1

100. Environmental, Social, and Governance Performance Risk Reduction Product Differentiation Process/ Cost Reduction Reputation Enhancement Human Capital – New Markets Entry Recruitment and Retention Innovation Capacity Superior Earnings and Share Price Differentiation and Competitive Advantage Sustainability as driver of share price Source: Innovest