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Corporate Sustainability
                                                  Management

                                         Integrating Sustainability into Strategic
                                             Planning & Business Operations




PHILIPPINES   ::   MALAYSIA   ::   VIETNAM    ::   INDONESIA   ::   INDIA   ::   CHINA
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
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
Company Value “Iceberg”

            1980s              2000 & beyond



                                     Tangibles
                                 Financials – 29%
             Tangibles
         Financials – 83%
                                    Intangibles
            Intangibles        Non-­financials – 71%
       Non-­financials – 17%
Triple Bottom Line Concept of Sustainability
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-­‐term
Themes – Triple Bottom line




                                                                                                                         value
                                                                                                                       Increased




                                                                                            PAY-­‐OFFs
                                                                                                                        revenue
                                                                                                          Loyalty
                                Environment




                                                                                                                      Reduced risk
                                                                                                                        & costs
                                                                                                                       Increased
                                                                                                         Motivation   productivity
                                Social Resp.
Key Drivers of Sustainability
   The prime aim of sustainability is to minimize all negative effects and maximize all positive
effects to meet stakeholder objectives.

  It is driven by 6 major factors which also represent the impact that sustaibility has on
supply, 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
Typical Holistic Sustainable Enterprise




                                                © Institute for Sustainable
                                                Enterprise, 2006




                      How do we get there?...
Corporate Sustainability Management
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 Benefits
Foundation                               Processes, Reputatio      Influecing
                                            n & Risk Mgm‘t
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
Typical Holistic Sustainable Enterprise



                  “You don’t have to be a weatherman to know
                  which way the wind blows”

                                                 -­ Bob Dylan
Keys to Become a Sustainable Enterprise
1. 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 Sustainability


These zones created due to constant flux of the triple bottom line
It is in these zones that most of the challenges and opportunities arise
Keys to Become a Sustainable Enterprise

2. 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
Keys to Become a Sustainable Enterprise
3. Apply the best practices of Performance Measurement (BSC) & Incorporate
Sustainability Management

Why 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
Keys to Become a Sustainable Enterprise
Typical 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
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
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
Corporate Sustainability Management
Thank you very much!




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 linkedin.com/company/ecc-­‐international
 eccinternational.wordpress.com

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Corporate Sustainability Management

  • 1. Corporate Sustainability Management Integrating Sustainability into Strategic Planning & Business Operations PHILIPPINES :: MALAYSIA :: VIETNAM :: INDONESIA :: INDIA :: CHINA
  • 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. 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. Company Value “Iceberg” 1980s 2000 & beyond Tangibles Financials – 29% Tangibles Financials – 83% Intangibles Intangibles Non-­financials – 71% Non-­financials – 17%
  • 5. Triple Bottom Line Concept of Sustainability
  • 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-­‐term Themes – Triple Bottom line value Increased PAY-­‐OFFs revenue Loyalty Environment Reduced risk & costs Increased Motivation productivity Social Resp.
  • 7. Key Drivers of Sustainability The prime aim of sustainability is to minimize all negative effects and maximize all positive effects to meet stakeholder objectives. It is driven by 6 major factors which also represent the impact that sustaibility has on supply, 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. Typical Holistic Sustainable Enterprise © Institute for Sustainable Enterprise, 2006 How do we get there?...
  • 10. 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 Benefits Foundation Processes, Reputatio Influecing n & Risk Mgm‘t
  • 11. 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
  • 12. Typical Holistic Sustainable Enterprise “You don’t have to be a weatherman to know which way the wind blows” -­ Bob Dylan
  • 13. Keys to Become a Sustainable Enterprise 1. 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 Sustainability These zones created due to constant flux of the triple bottom line It is in these zones that most of the challenges and opportunities arise
  • 14. Keys to Become a Sustainable Enterprise 2. 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
  • 15. Keys to Become a Sustainable Enterprise 3. Apply the best practices of Performance Measurement (BSC) & Incorporate Sustainability Management Why 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
  • 16. Keys to Become a Sustainable Enterprise Typical 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
  • 17. 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
  • 18. 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
  • 20. Thank you very much! facebook.com/eccinternational linkedin.com/company/ecc-­‐international eccinternational.wordpress.com