Running head: SOCIAL WELLBEING IN THE NETHERLANDS 1 SOCIAL WELLBEING IN THE NETHERLANDS 2Social Wellbeing in the Netherlands Introduction Social wellbeing is an end state in which basic human needs are met and people are able to coexist peacefully in communities with opportunities for advancement (USIP, 2013). This is showcased by access to basic needs and services including water, food, shelter and health services (USIP, 2013). The basic needs must be met but belonging is also important. In general, humans are social individuals who want a basic set of standards to create a sense of social wellbeing. There is a strive for connection and this connection including value systems, traditions and even beliefs. When a population is content and feels as though their needs are met they become more sustainable in their social development. Social wellbeing plays a crucial role in sustainability. This paper will analyze the social wellbeing of the Netherlands, identify opportunities for policy enactment, and consider the environmental aspects of social wellbeing and social quality in the country. The Netherlands and Social Wellbeing The Netherlands Institute for Social Research is a government agency which conducts research into the social aspects of all areas of government policy. The Netherlands Institute of Social Research was founded in 1973 after politicians began taking an increased interest in the population and their welfare (Netherlands Institute of Social Research, 2020). The main fields studied are health, welfare, social security, the labor market and education, with a particular focus on the interfaces between these fields (Netherlands Institute of Social Research, 2020). Further, the organization itself was designed to create a picture of the social and cultural wellbeing of the Netherlands. Goals of the organization include the ability to contribute to policy changes and evaluation of how one can achieve a desired solution- for the good of the people (Netherlands Institute of Social Research, 2020). The reports created by this organization are used by the government, academics and civil servants. Advice is provided on legal obligations and civil duties of the government. The goal is doing what is best for the wellbeing of the people. Members of the Netherlands Institute of Social Research are scientists, social geographers, legal specialists, and those who specialize in the economy (Netherlands Institute of Social Research, 2020). Feedback of all kinds is provided by the people of the Netherlands and used in the development of policy and bettering the wellbeing of the population. Books are published yearly that offer the people of the Netherlands, as well as other countries, the opportunity to better understand the social wellbeing of the population. Further, the survey and study results are used to better understand policy, changes, and how to further improve the wellbeing of the peop.

1. Running head: SOCIAL WELLBEING IN THE
NETHERLANDS 1
SOCIAL WELLBEING IN THE NETHERLANDS
2Social Wellbeing in the Netherlands
Introduction
Social wellbeing is an end state in which basic human needs are
met and people are able to coexist peacefully in communities
with opportunities for advancement (USIP, 2013). This is
showcased by access to basic needs and services including
water, food, shelter and health services (USIP, 2013). The
basic needs must be met but belonging is also important. In
general, humans are social individuals who want a basic set of
standards to create a sense of social wellbeing. There is a strive
for connection and this connection including value systems,
traditions and even beliefs. When a population is content and
feels as though their needs are met they become more
sustainable in their social development. Social wellbeing plays
a crucial role in sustainability. This paper will analyze the
social wellbeing of the Netherlands, identify opportunities for
policy enactment, and consider the environmental aspects of
social wellbeing and social quality in the country.
The Netherlands and Social Wellbeing
The Netherlands Institute for Social Research is a government
agency which conducts research into the social aspects of all
areas of government policy. The Netherlands Institute of Social
Research was founded in 1973 after politicians began taking an
increased interest in the population and their welfare
(Netherlands Institute of Social Research, 2020). The main
fields studied are health, welfare, social security, the labor
market and education, with a particular focus on the interfaces
between these fields (Netherlands Institute of Social Research,
2020). Further, the organization itself was designed to create a
picture of the social and cultural wellbeing of the Netherlands.
Goals of the organization include the ability to contribute to

2. policy changes and evaluation of how one can achieve a desired
solution- for the good of the people (Netherlands Institute of
Social Research, 2020).
The reports created by this organization are used by the
government, academics and civil servants. Advice is provided
on legal obligations and civil duties of the government. The
goal is doing what is best for the wellbeing of the people.
Members of the Netherlands Institute of Social Research are
scientists, social geographers, legal specialists, and those who
specialize in the economy (Netherlands Institute of Social
Research, 2020). Feedback of all kinds is provided by the
people of the Netherlands and used in the development of policy
and bettering the wellbeing of the population. Books are
published yearly that offer the people of the Netherlands, as
well as other countries, the opportunity to better understand the
social wellbeing of the population. Further, the survey and
study results are used to better understand policy, changes, and
how to further improve the wellbeing of the people.
Approximately 50 reports are published on a yearly basis
(Netherlands Institute of Social Research, 2020).
Research of all kinds is the basis for the Netherlands Institute
of Social Research. There is a database where the research
conducted by the Institute is stored. This research is on a wide
variety of topics including: health, wellbeing, time use,
employment, social security, education and housing
(Netherlands Institute of Social Research, 2020). Most of the
research by this organization is focused on social and cultural
change. This research is focused on attitudes of the Dutch
population to social, ideological and political issues
(Netherlands Institute of Social Research, 2020). The research
itself is not about changing how the public act but rather
looking at how social policy can respond to social change.
Quality of life is also looked at by this information finding
body, this is the second primary focus for the Netherlands
Institute of Social Research (2020). The distribution of welfare
across population groups is looked at including health status,

3. level of education, housing conditions, extra income,
participation and even leisure trends (Netherlands Institute of
Social Research, 2020). Looking at each of these trends helps in
the development of policy and allows policies currently in place
to be assessed.
Public services sector is the third primary focus for the
Institute. This focus is on public administration including
education, health care, social security, public transportation and
even recreation and culture (Netherlands Institute of Social
Research, 2020). The information provided helps to determine
use of the public services as well as how much each public
service will cost. Public opinion polls are used as the basis of
information fact finding and these include: various longitudinal
series of population surveys, International Surveys including
the European Social Survey among others (Netherlands Institute
of Social Research, 2020).
Policies to Enact in the Netherlands
Social quality measures a variety of factors like life quality,
level of satisfaction, and wellbeing (Maesen, 2013). The
construction of a sound SQA relies on the integration and
analysis of the economic, environmental, socio-cultural and
socio-political dimensions (Maesen, 2013). There are four
factors which determine the environment of social quality; they
are social empowerment, social inclusion, socio-economic
security, and social cohesion (Maesen, 2013). These factors
provide an understanding that the whole is the sum total of the
parts and to take one long look at the big picture. They will
serve to reestablish and recalibrate the connection between the
whys and the relationships between the various variables both
dependent and independent. Social and the individual aspects
are put in consideration by measuring the quality of life.
According to Leers (2017), politics in the Netherlands is
currently distorted and fragmented due to the number of the
political parties involved in the election, the political
atmosphere in Europe caused by the passing of the Brexit
referendum and the inability of any political party to win

4. absolute majority. This translates to groups that ensure they are
heard and that issues directly or indirectly affect them are dealt
with; this is known as “Dutchification” (Bergsen, 2020). This,
according to Bergsen (2020), results in political and policy
paralysis. One of the policies that should be enacted is a policy
to defragment policies and politics. Maesen (2013), found that
“the key challenge concerns a change in our thinking on the way
of living and living together, rather than sticking to repair
strategies”. A parallel needs to be drawn on factors/variables
that converge and a clear indication of a divergence needs to be
established when viewing, studying and quantifying these
relationships. Maesen (2013), argued that the growth in policy
area specific indicators has led to a fragmentation of policy.
The defragmentation of policy and politics will aid in the
collection of reliable empirical data. Maesen (2013), found that
policy dimensions should be monitored, quantitative and
collected utilizing reliable statistical methods. According to
Penn State (n.d.), some of the benefits of policy fragmentation
within a government include expertise, faster response and
flexibility, disjoining the triple bottom line in politics while the
disadvantages of policy fragmentation are, inconsistency,
ineffectiveness, legitimacy/accountability issues and corporate
influence.
Policy
Another example of a policy needed is economic independence;
this will enable more women in the Netherlands to join the
workforce to create better gender equality allowing for a greater
economic autonomy for females. The policy will address
gender-based wage gaps and will encourage and incentivize
some hours of childcare outside the home to add to the childcare
benefit already in provision. According to the OECD (2017), 70
% of women in the Netherlands are employed; almost 60 percent
of employed women in the Netherlands are only employed part
time, although 25% of women expressed interest in working full
time. XPATNL (2018), explained that couples in the
Netherlands prefer to provide full extent of childcare for their

5. children because the number of men that joined the first and
second world wars were limited which warranted very few
women to take on the role of provider in those homes.
Childcare is expensive in any part of the world and the
government subsidizes child care already for the lower income
earner through the childcare benefit (XPATNL, 2018). The
added incentive would be extra free hours for part time and full-
time working moms in two different tiers, which will contribute
positively to the wellbeing of the populace and society.
Better representation in the education system for minorities to
minimize social exclusion is another policy that needs to be
enacted. This is important in an environment where a lack of
infrastructure, basic amenities and finances translates to
exclusion over a period of time. According to Kloprogge (n.d),
poverty is the number one cause of social exclusion in the
Netherlands; despite winning the Bertelsman prize in 1997 for
the policy known as the “polder model” there is still
disparagement in socioeconomic class in reality despite the
outstanding economic growth the country has experienced
within the past decade. According to HeraldNet (2017), a
Roman Catholic bishop by the name Bishop Tiny Muskens,
publicly declared that it was okay for the hungry poor to steal
bread, the outcry caused by his statement propelled the
discussion of class distinction in the country. The most at-risk
population in the Netherlands are immigrant families of ethnic
backgrounds and single parent/mother households (Kloprogge,
n.d.). The social dimension to focus on is the education sector,
since by deductive reasoning, an inability to have access to
good education is a gateway social exclusion leading to
dissatisfaction and low quality of life.
The Dutch education system is heavily segregated both in
private and public schools. In the private schools, certain
organizations fund certain schools excluding children who do
not belong in that category whereas in the public schools the
segregation is based on ability placement making it harder to
access amenities. According to Dutch News.nl (2018), children

6. of higher income families score better in tests than children
from lower income homes with the same intelligence level. The
policy to enact is the integration of the school system in a way
that public schools are just that and private schools remain
autonomous without a particular group owning it. Speculatively,
this of course will be a very hard policy to put in effect, but the
reality remains that if the school system is not handled on time
and properly, there will be a further divide in the country in the
coming years. If successful, trust and social cohesion will be
improved in the Netherlands because as Maesen (2013),
reiterated “declines in trust formed a major barrier to enhancing
social quality”.
SQA and Conditional Factors
As mentioned in the section above, the Netherlands has some
policies that need to be improved upon. The Netherlands has
done well in controlling amounts of inputs with maximizing the
outputs. The input in this case would be fiscal, the Netherlands
has a debt to GDP ratio of 52.3% (CEIC Data, n.d.). This is
compared to the United States debt to GDP ratio of 106%
according to Trading Economics (n.d.). This section will cover
some of the initiatives that the Netherlands have done to control
the conditional factor of expense while maximizing the output
of social quality for citizens.
A big part of the Netherlands' social quality is the education
system. According to the United Nations Human Development
Report (2018), the Netherlands is ranked 11 overall in the
Education Index, four spots above the United States which sits
at 15. The percent of GDP spent on education that the
Netherlands spends is 5.5%, higher than the world's average,
which is 4.5% according to The World Bank (2018). This
shows that the Netherlands is doing a good job at maximizing
what is being put into the system. There are 41 countries ahead
of the Netherlands according to The World Bank (2018), just 41
countries that spend a higher percent of GDP on education. The
Netherlands being ranked so high it shows the system of

7. education is effective.
Even though the education system is getting the most out what
is being put in, improvements can still be made. In the section
above, it was referenced that lower income families and
immigrants have difficulty getting quality education.
According to Expatica (2019), the Netherlands education system
all have equal state funding. While the Netherlands schools
have equal funding, schools still sometimes ask for extra money
from parents, and is sometimes calculated based on financial
position (Expatica, 2019). Thinking about how schools are
divided up, in most cases schools are set up in districts. Those
districts have homes of similar value, that requires income. In
areas where more money is available, homes are able to give
more to the school for children, unlike some districts where
income is not as great. The Netherlands does give equal
funding, maybe taking into account the tithings that parents
give to the school into consideration will bring the bottom of
the Netherlands education system up, thus making it even
stronger by making small improvements.
The Netherlands healthcare system is ranked by the United
Nations Human Development Report (2018) as number 15 in life
expectancy. The percentage of GDP spent on healthcare is
10.36% according to The World Bank (2018), with the world
average being 10.02%. Again the Netherlands is efficient with
the resources that are put into the system, while still being a top
ranked country in life expectancy. It is mandatory for all
citizens and permanent residences to have health insurance in
the Netherlands. There are public and private options for health
insurance in the country. Looking at the prices of health
insurance on Zorgwijer (2020), the Netherlands marketplace for
health insurance, the least expensive option is 105 Euros per
month, and has a standard 385 Euro deductible a year. The cost
might seem to be reasonable in the United States, but in Europe
this is one of the highest insurance rates (Expatica, 2019).
According to the Broek and Lynch of The Heritage Foundation
(2010), by the Netherlands government stimulating competition

8. in health care it created a system of managed competition, the
people's obligation is to buy basic insurance, and the insurers
“have a duty of acceptance” (Broek and Lynch, 2010). This is a
blended approach rather than just implementing a single payer
system, that is a cost sharing model, trying to be more efficient
in regard to what makes up the cost instead of just who pays.
The last topic that will be covered in this section will be the
Social Security program in the Netherlands. These Social
Security programs consist of old-age pension, survivor pension,
and disability pension according to the Social Security
Administration of the United States (2020). For Old-Age
benefits, according to the United States Social Security
Administration (2020), the Netherlands people all get the same
amount per month if required eligibility is met. A single person
would get 1,112.67 Euros per month and a married couple
would get 758.39 Euros per month per person, totaling 1516.78
Euros per month (US SSA, 2020).
Throughout this section social quality is mainly focused upon
trying to be fair. While there are system improvements that can
be made in the Netherlands, overall, the Netherlands does a
tremendous job in maximizing the returns of what goes into the
system. In a country that has 52% debt to GDP ratio and the
world average per country is 60% according to the World
Population Review (2020), the Netherlands ranked 10th overall
by the United Nations Human Development Index (2018). The
10th rank shows that the Netherlands are taking care of the
citizens and those who reside in the Netherlands. This in
combination with how the Netherlands is not over stretching on
the fiscal side shows the Netherlands is doing a great job in
conditional factors. The core value that is in the Netherlands is
sharing the burden. Many social programs cost money; it is not
as simple as saying the government pays for everything. The
Netherlands has a nice balance of policy and marketplace to
help alleviate cost but maximize benefits.
Environmental Aspects
Wellbeing is a crucial and meaningful positive outcome as it is

9. an indicator that people perceive that their livelihood status is
well. The aspect of wellbeing is measured by the social quality
indicators such as social inclusion, socio-economic security,
social empowerment and social cohesion. These indicators are
used in many countries, including the Netherlands.
In socioeconomic security, the income of the household is
measured to assess the ability to buy basic needs
(Carrasco‐Campos, Moreno & Martínez, 2017). In this case, the
measure of absolute poverty is indicated by the incapability to
afford to buy basic needs such as food. It is more concerned
with the ability to have the resources needed to cope with daily
life, the ability to take advantage of the available opportunities
to the citizens and enjoy a dignified lifestyle.
Social cohesion indicators are used to assess the general trust
between the government and the citizens, the existence of
tension between the rich and poor (Carrasco‐Campos, Moreno &
Martínez, 2017). This measure is crucial in determining how
society works together to improve their livelihood condition. In
general, it provides the basis for rules of law which are crucial
for social participation, stability, and continuity (van der
Maesen, 2013). Social inclusion is all about social support
through inclusion into society. This means support from friends,
relatives, and other people and also having that feeling that you
belong to the society.
Social empowerment includes aspects like education and health
(Carrasco‐Campos, Moreno & Martínez, 2017). The indicator’s
conditions require that the objective conditions are present and
also the individuals can utilize the opportunities available. It is
also concerned with an individual’s subjective feelings of
agency. Also, social wellbeing can be measured by
environmental indicators such as air and water quality that
influence the health status of the society.
In the Netherlands, the score of life satisfaction is high with
higher personal earnings, the life satisfaction score is affected
by policies and welfare state (Carrasco‐Campos, Moreno &
Martínez, 2017). Employment and long-term unemployment

10. rates are favorable in the Netherlands. Additionally, the social
network support is rated highly in the country. All these
statistics provide evidence that suggest the social wellbeing in
this country is relatively high as the indicators affect subjective
wellbeing. The environmental quality in the Netherlands is
measured in terms of water and air aspects. In Netherlands the
level of particulate matter that has a diameter of less than 2.5 is
14.0µg/m³ that is slightly higher that the wellbeing index which
is 13µg/m³ (van der Maesen, 2013). However, air quality is
highly emphasized with the presence of carbon footprint and the
use of biomass which is environmentally friendly. Also,
93percent of the people reports that they are satisfied with
water quality which is above the index indicator of 81percent
(van der Maesen, 2013). These indicators are part of
environmental sustainability goals. Also, environmental policies
on air and water quality are highly emphasized
To improve social wellbeing, social and care policies should be
based on the public rather than family and private spheres and
also made stronger (van der Maesen, 2013). Also, the welfare
state policies should be highly emphasized and strengthened as
they are major contributors to the society’s wellbeing. Also, the
policies that advocate for environmental wellbeing should be
emphasized- for example air and water policies.
Impact of environmental variables on social wellbeing and
social quality
Education is one of the most used variables to
determine the affairs of the people of the Netherlands, for it is a
clear indicator of population literacy to be able to decide on
those that can read and write or those that are not able to read
and write (Jenkins, Skinner, & Trines, 2019). The life
satisfaction level of the people of the Netherlands is, however,
measured below with some subjective variables. In that, there
are selected three variables that are preliminary data, which are
satisfied with their daily activities, happiness and life with
satisfaction (Arrindell, Heesink, & Feij, 1999). In regard to

11. comfort in daily lives, people should, however, be happy with
what they have in that the happiness of the individual will be
experienced, which triggers full life satisfaction. The life
satisfaction level of the people of the Netherlands is generally
well, yet always with opportunity to improve.
Job searching is a clear consensus issue that unemployment
negatively affects the wellbeing of the people of the
Netherlands. Most studies that have highlighted the happiness
and life satisfaction show that unemployment has a significant
and robust effect on these measures of wellbeing, which result
in secondary stress factors such as worry, financial and marital
problems. Also, these adverse effects, however, seem to
increase the duration of unemployment increasing day by day in
the country. Aside from becoming unemployed, financial and
social insecurity are associated with the uncertain prospect of
losing your job is affected as well as the economic vulnerability
that is highly triggered.
Health is a significant aspect of the basis of
measuring the wellbeing of the people of the Netherlands. This
is a crucial measure to social wellbeing, without good health
then there is no other component fit to live. Generally, a
comparison can be made between mortality and morbidity,
mortality is more natural to measure and more objective than
morbidity. Subsequently, mortality shows the quantity of the
potential wellbeing experienced. One of the most common
measures related mortality is life expectancy, be it at birth or
standardized. Morbidity on the other hand is generally more
subjective but vital to the experienced being. Good health is
universally perceived to be essential for wellbeing. Better Life
health brings other benefits as well, such as improved access to
education and employment, an increase in productivity,
reduction of health care costs and good social relations to the
people of the Netherlands.
Housing is an important component to social
wellbeing since most of the time it is where a person spends his
or her time frequently for their enjoyment. However, there are

12. three prospects to the objectivity of housing, which are the
quality of your house, which, for instance, are the living space,
location, utilities and amenities. The other aspect to consider is
housing satisfaction, whether or not the people are satisfied,
and the last part is affordability in regard to how much
individuals need to pay for housing. To an extent, subjective
satisfaction with accommodation should also capture part of the
objective housing quality and its affordability. Happiness is
typically very high in the Netherlands, with nearly all
individuals reporting to be satisfied with their wellbeing related
to their housing situation.
Another aspect of social wellbeing is related to the global
environment, such as the impact of global warming for its
triggers and changes in the weather pattern of a given country,
including the Netherlands. In some States, it would, however,
bring about the abnormality of rainfall resulting in flooding,
which in turn causes havoc to the economic activities and the
social wellbeing of the people. Some other factors include the
outbreak of diseases and epidemics affect the social wellbeing
and social quality of the people, for in most cases, it brings
about the disruption of the economy, thus results in low-income
levels. However, overall, the Netherlands response to these
issues is well regarded.
Another cultural variable that can impact the social wellbeing
and social quality in the Netherlands in some respects is
corruption. However, corruption, also known as breaking the
rules and regulations stipulated by the government, is not
currently considered a primary issue in the Netherlands
(Trading Economics, 2019). Although, this act can bring about
losses to its citizens since there will be unfair and illegal
practices that would result in the low economic countdown,
which in turn affects the social aspects of the people, it is not of
high concern to the people as it is ranked one of the least
corrupt countries among many across the globe (Trading
Economics, 2019). This analysis includes bribery activities and
embezzlement of funds in a given country or state that leads to

13. a shift in the economic change for the taxation levels beyond
the reasonable charges. As a result of corruption, low-quality
services are noted, the social quality is, then affected
tremendously. Thus, handling crime and corruption is one area
where the Netherlands social wellbeing is not impacted as
negatively as other social wellbeing indicators, and ranks
highly.
Changes in Culture
Interracial marriages have adversely affected social wellbeing
and social quality in regard to the people of the Netherlands by
causing a divide among the people (Vroome & Hooghe, 2013).
In that, it fully describes a form of marriage outside a specific
social group involving spouses who belong to different races
and different ethnicities for at one particular time, that were not
previously allowed to be practiced, this change brought about a
lot of social negativity to the community and country (Vroome
& Hooghe, 2013). Religion brought about social wellbeing and
social quality, when people go to a place of worship it has
brought about interactions that yield positive results to our
families and community. The people in the Netherlands are
largely Roman Catholic and Protestant (Netherlands Religions,
n.d.). In the eyes of many Netherland people, religion has
brought in a positive shift in the reduction of evil, immoral
behavior, and corrupt practices amongst the Netherlands youth,
however this too is an area where many people disagree and the
contention does impact the social wellbeing of the people.
Conclusion
In many ways the Netherlands are global leaders in social
wellbeing, from the establishment of the Netherlands Institute
of Social Research to monitor the basic needs of Netherland
residents, to their 10th ranking on the Human Health Index and
many areas in between. Despite this, there are plenty of
opportunities for the Netherlands to improve across many areas
related to social wellbeing. To continue progressively, the
Netherlands government must consider enacting and enforcing

14. laws that continuously support the social wellbeing of all
Netherlands people, of all ages, ethnicities, religions, and
socioeconomic classes, particularly in the areas of environment,
health, and education. However, the Netherlands government
must not lose sight of the areas where they are leaders and
where there is high social wellbeing.
References
Arrindell, W., Heesink, J., & Feij, J. (1999, May 1). The
Satisfaction With Life Scale (SWLS): appraisal with 1700
healthy young adults in The Netherlands. Retrieved from
https://www.sciencedirect.com/science/article/abs/pii/S0191886
998001809
Bergsen, P. (2020, January 9). Don't be Afraid of Political
Fragmentation. Retrieved March 19, 2020, from
https://www.chathamhouse.org/expert/comment/don-t-be-afraid-
political-fragmentation
Carrasco‐Campos, Á., Moreno, A., & Martínez, L. C. (2017).
Quality of Life, Well-Being and Social Policies in European
Countries1. In Quality of Life and Quality of Working Life.
IntechOpen.
Compare Dutch health insurance; Check prices & save money.
(2020, July 9). Zorgwijzer.
https://www.zorgwijzer.nl/zorgvergelijker/english#/search?dedu
ctible=1&payment=m
Debt to GDP Ratio by Country 2020. (2020). 2020 World
Population by Country.
https://worldpopulationreview.com/countries/countries-by-
national-debt/#undefined
Dutch News.nl. (2018, December 14). Dutch Secondary School
System too Rigid, Leads to Segregation. DutchNews.nl.
Retrieved from https://www.dutchnews.nl/news/2018/12/dutch-
secondary-school-system-too-rigid-leads-to-segregation/
Education in the Netherlands: A guide to the Dutch education
system. (2014, May 16). Expat Guide to The Netherlands |
Expatica. https://www.expatica.com/nl/education/children-

15. education/education-in-netherlands-guide-to-dutch-education-
system-100816/
Eline Altenburg-van den Broek. (n.d.). The Drawbacks of
Dutch-Style Health Care Rules: Lessons for Americans. The
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lessons-americans
Government expenditure on education, total (% of GDP). (n.d.).
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t_recent_value_desc=true
Health insurance in the Netherlands. (2014, May 16). Expat
Guide to The Netherlands | Expatica. …
Assignment:
This week, instead of drilling into the texts for your paper (yes,
you still can use them!) - focus on one topic concerning the
environmental aspects of SBD. Topics could include ISO14000,
LEEDS certification, The Carbon Footprint concept,
Environmental Impact Assessments, or Technology and Product
Development for Sustainability. If you have an environmental
different topic, just let me know. I want it to be a topic of
genuine interest for you so the knowledge gained is useful to
you.
Using this information and the Assignment Rubric below,
develop a 4-5 page APA formatted paper (not including
reference and title page). Find at least 5 credible publication
resources to support the information you develop in your paper
on the topic. Try to include at least one peer-reviewed article on
the topic (our DU Library has excellent resources for this). You
do not need to be "all inclusive" in the paper - i.e., it would be
difficult to present/discuss ISO 14000 completely in 5 pages.
So, narrow your scope and focus on a part or subject area. It
will be scored on how well the topic was presented and
supported (70%), and how well the paper demonstrated good
structure and mechanics (30%). Remember to use the

16. appropriate in-text citations and connect them to the reference
page.
Grade
RANGE
Score Earned
OVERALL
Comment
CONTENT
70%
Introduction, focused discussion of one topic concerning the
environmental aspects of SBD, summative commentary.
STRUCTURE
15%
MECHANICS
10%
APA FORMAT
5%
A/A-
Writing that excels in most areas. Superior work.
Analysis, synthesis, and evaluation of material are obvious and
substantial. Material is genuinely thought-provoking. Addresses
all required content elements.
Excellent control of language, clear consideration of audience.
Sentence and paragraph variety appropriate for audience.
Written at the graduate level.
Grammar and punctuation issues are addressed correctly.
Editing and proofreading are evident.
Complete; correct documentation, appropriate headings/sub-
headings, integration of citations and paraphrases. No evidence
of plagiarism.
B+
Very good writing which lacks the fluency and complexity of
the A paper. Above average work.

17. Few errors in logic though some minor weaknesses can be
spotted. May be a thinner version of an A paper. Addresses all
required content elements.
Good consideration of audience. Paragraphing structure is
strong. Most of the writing is cohesively strong. Written at the
graduate level.
One grammatical error. Editing and proofreading are evident.
A little over reliance on source material. Lack of original
thought. Few formatting errors, yet the message is clear.
B
Good writing that maintains competencies in most areas.
Average work.
Adequate analysis and evaluation of analytical thinking.
Addresses all required content elements.
Some weaknesses in audience identification. Paragraph
structure needs improvement. Written at the graduate level.
Two- three grammatical errors but not distracting to the reader.
Clumsy inclusion of sources. Too many direct quotes. Few
formatting errors that distract from the message.
B-
Fair writing that maintains competencies in most areas. Below
average work.
Gaps in evidence and insufficient links. Little evidence of
analytical thinking. Missing one or two content elements.
Definite weaknesses in reader identification. Sentences may be
somewhat poorly constructed, and word choice may be
inappropriate at times.
A variety of grammatical mistakes. A pattern of errors that
distracts the reader.
Use of un-cited paraphrasing. Numerous errors that distract
from the message.
C+/C
Fair writing that maintains competencies in some areas. Passing

18. work.
Lacks evidence of analytical or evaluative thinking. Several
content elements missing.
Inaccurate word choice, fragmented and monotonous sentences
and little or no concern for the reader.
Problems include repeated grammar and usage errors distracting
to the reader.
Some sources incorrectly cited or not used. Reference page may
not correlate to the texts. Numerous formatting errors that
distract from the message.
F
Unacceptable writing; does not meet standards of the
assignment. Failing work.
Thinking presented is chaotic, or it is missing completely.
Missing critical content elements.
The writing lacks organization and cohesion at all levels.
Impossible for the reader to follow.
Generally has a grammar and/or usage problem in almost every
sentence.
Sources are not used or are used incorrectly. Reference page
may be missing. Numerous formatting errors that distract from
the message.
Assignment:

19. This week, instead of drill
ing into the texts
for your paper (yes, you still can use them!)
-
focus
on one topic concerning the environmental aspects of SBD.
Topics could include ISO14000,
LEEDS certification, The Carbon Footprint concept,
Environmental Impact Assessments, or
Techno
logy and Product De
velopment for Sustainability. If you have a
n
environmental different
topic, just let me know. I want it to be a topic of genuine
interest for you so the knowledge
gained is useful to you.

20. Using this information and the
Assignment Rubric b
elow, develop a
4
-
5
page
APA formatted
paper (not including reference and title page).
Find at least 5 credible publication resources to
support the information you develop in your paper on the topic.
Try to include at least one peer
-
rev
iewed article on th
e topic (our
DU Library
has excellent resources for this). You do not need
to be "all inclusive" in the paper
-
i.e., it would be difficult to present/discuss I
SO 14000
completely
in 5 pages. So, narrow your scope and focus on a part or subject
area.
It will be

21. scored on how well the topic was presented and supported
(70%), and how well the paper
demonstrated good structure and mechanics (30%).
Remember to use t
he appropriate in
-
t
ext
citatio
ns and connect them to the reference page.
Assignment:
This week, instead of drilling into the texts for your paper (yes,
you still can use them!) - focus
on one topic concerning the environmental aspects of SBD.
Topics could include ISO14000,
LEEDS certification, The Carbon Footprint concept,
Environmental Impact Assessments, or
Technology and Product Development for Sustainability. If you
have an environmental different
topic, just let me know. I want it to be a topic of genuine
interest for you so the knowledge
gained is useful to you.
Using this information and the Assignment Rubric below,
develop a 4-5 page APA formatted
paper (not including reference and title page). Find at least 5
credible publication resources to
support the information you develop in your paper on the topic.
Try to include at least one peer-
reviewed article on the topic (our DU Library has excellent
resources for this). You do not need
to be "all inclusive" in the paper - i.e., it would be difficult to
present/discuss ISO 14000
completely in 5 pages. So, narrow your scope and focus on a
part or subject area. It will be

22. scored on how well the topic was presented and supported
(70%), and how well the paper
demonstrated good structure and mechanics (30%). Remember
to use the appropriate in-text
citations and connect them to the reference page.
Assignment:
Provide an in-depth analysis of your country's sustainability
challenges. You can use global sustainability challenges by
utilizing the Paris climate accord to research the mechanisms
countries are deploying and what they are reporting on as it
pertains to the effects they are integrating to mitigate global
climate change.
What does this mean? How does the Netherlands compare to
other countries in terms of what they are doing to mitigate
challenges of global climate change. Use the Paris Climate
Accord to Research what they are doing.
For each of your specific countries you should have detailed
and supporting evidence of the challenges you are looking to
address. (Four challenges that the Netherlands have)
· A minimum of four should be presented in full
· using the context of economic, social and environmental
implications if countries choose to do nothing in the future.
FORMAT: Here is the problem, here is how to solve it, and here
are the implications if you don’t fix it
· This portion of the paper builds on the first two-phases of the
paper by integrating opportunities discovered, make-up of the
economy, and then the proposed solutions as you have read in
your business cases, required readings and outside research.
Assignment Rubric
Portion One : What is Global Climate Change, What does the
Netherlands do about this in comparison to other high ranking
countries, use the Paris Climate Accord.
Issues of the Netherlands:

23. 1. Education/ Minorities and poverty related to education issues
(students in better economic areas get better education due to
funding)
2. Health/Welfare, high life expectancy, all have health
insurance, highest insurance rate in Europe
3. Politics- Lack of political majority (see week three paper),
lack of ability to take action Emmanuel
4. Economic Independence for women/ Gender Issues/Child
Care Expenses-
Suggestion for tackling this assignment:
· Sections should be 2-3 pages in length
Notes/Observations (pb): Referencing the textbook is going to
be critical to this assignment, Chapter 7 appears to have areas
we can leverage in our research.
Assignment:
Provide an in
-
depth analysis of your country's sustainability challenges.
You can use global
sustainability challenges by utilizing the Paris climate accord to
research the mechanisms
countries are deploying and what they are reporting on as it
pertains to the effects they are
integrating to mitigate global climate change.
Wh
at does this mean? How does the Netherlands compare to other
countries in terms of what
they are doing to mitigate challenges of global climate change.

24. Use the Paris Climate Accord to
Research what they are doing.
For each of your specific countries you
should have
detailed and supporting evidence of the
challenges you are looking to address. (Four challenges that the
Netherlands have)
·
A minimum of four should be presented in full
o
using the context of economic, social a
nd environmental implications if countries
choose to do nothing in the future.
FORMAT: Here is the problem, here is how
to solve it, and here are the implications if you don’t fix it
·
This portion of the paper
builds on the first two
-
phases of the paper by
integrating
opportunities discovered, make
-
up of the economy, and then the proposed solutions as
you have read in your business cases, required readings and
outside research
.

25. Assignment Rubric
Portion One
: What is Global Climate Change, What does the Netherlands do
about this in
comparison to other high ranking countries, use the Paris
Climate Accord.
Is
sues of the Netherlands:
1.
Education/
Minorities and poverty related to education issues (students in
better
economic areas get better education due to funding)
2.
Health/Welfare
, high life expectancy, all have health insurance, highest
insurance rate
in
Europe
3.
Politics
-
Lack of political majority (see week three paper), lack of ability

26. to take action
Emmanuel
4.
Economic Independence for women/ Gender Issue
s/Child Care Expenses
-
Suggestion for tackling this
assignment
:
·
Sections should be 2
-
3 pages in length
N
otes/Observations (pb): Referencing the textbook is going to be
critical to this assignment,
Chapter 7 appears to have areas we can leverage in our research.
Assignment:
Provide an in-depth analysis of your country's sustainability
challenges. You can use global
sustainability challenges by utilizing the Paris climate accord to
research the mechanisms
countries are deploying and what they are reporting on as it
pertains to the effects they are

27. integrating to mitigate global climate change.
What does this mean? How does the Netherlands compare to
other countries in terms of what
they are doing to mitigate challenges of global climate change.
Use the Paris Climate Accord to
Research what they are doing.
For each of your specific countries you should have detailed
and supporting evidence of the
challenges you are looking to address. (Four challenges that the
Netherlands have)
o using the context of economic, social and environmental
implications if countries
choose to do nothing in the future. FORMAT: Here is the
problem, here is how
to solve it, and here are the implications if you don’t fix it
-phases of the
paper by integrating
opportunities discovered, make-up of the economy, and then the
proposed solutions as
you have read in your business cases, required readings and
outside research.
Assignment Rubric
Portion One : What is Global Climate Change, What does the
Netherlands do about this in
comparison to other high ranking countries, use the Paris
Climate Accord.
Issues of the Netherlands:
1. Education/ Minorities and poverty related to education issues
(students in better
economic areas get better education due to funding)
2. Health/Welfare, high life expectancy, all have health
insurance, highest insurance rate in
Europe

28. 3. Politics- Lack of political majority (see week three paper),
lack of ability to take action
Emmanuel
4. Economic Independence for women/ Gender Issues/Child
Care Expenses-
Suggestion for tackling this assignment:
-3 pages in length
Notes/Observations (pb): Referencing the textbook is going to
be critical to this assignment,
Chapter 7 appears to have areas we can leverage in our research.
Making Sustainability Work
Second Edition
About the authors
Marc J. Epstein is a Distinguished Research
Professor of Management at Jones Graduate
School of Business at Rice University in Houston,
Texas. Prior to joining Rice, Dr. Epstein was a
professor at Stanford Business School, Harvard
Business School, and INSEAD (European Institute
of Business Administration). In both academic
research and managerial practice, Dr. Epstein
is considered one of the global leaders in the
areas of innovation, sustainability, governance,
performance measurement and accountability
in both corporations and not-for-profit
organizations. His 20 authored or co-authored

29. books and well over 200 professional papers have
won numerous top academic, professional, and
business awards.
Adriana Rejc Buhovac is an Associate Professor
of Management at the Faculty of Economics at
the University of Ljubljana. She is a lecturer in
several undergraduate and graduate courses and
a renowned speaker and lecturer of executive
program courses. Her primary areas of expertise
are strategic management, performance
measurement and management control, and
corporate sustainability. In these areas, Dr. Rejc
Buhovac co-authored a number of academic
articles and several Management Accounting
Guidelines for CMA Canada and the AICPA.
Making
SuStainability
Work
Best Practices in
Managing and Measuring
Corporate Social, Environmental,
and Economic Impacts
Marc J. Epstein
and adriana rejc buhovac
With Forewords by John Elkington
and Herman b. “Dutch” leonard

30. 2 0 1 4
second edition
completely Revised and Updated
Making Sustainability Work
Copyright © 2014 Greenleaf Publishing Limited
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Contents
List of cases, figures, and tables . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . viii
Foreword from the First Edition . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . xi
John Elkington, SustainAbility
Foreword from the First Edition . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . xiii
Herman B. “Dutch” Leonard, Harvard Business School
Preface . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
xv
Introduction: Improving sustainability and financial
performance in global corporations . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . 1
Why it’s important . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . 4
Managing corporate sustainability . . . . . . . . . . . . . .

33. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . 5
The Corporate Sustainability Model . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . 8
Background to this book . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . 9
Making sustainability work: an overview of the revised book .
. . . . . . . . . . . . . . . . . . . . . 13
And finally . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . 16
1 A new framework for implementing
corporate sustainability . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . 18
What is sustainability? . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . 21
Identify your stakeholders . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . 26
Be accountable . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . 27
Corporate Sustainability Model . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . 28
Summary . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . 42
2 Leadership, organizational culture, and strategy

34. for corporate sustainability . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . 43
Board commitment to sustainability . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . 44
CEO commitment to sustainability . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . 47
vi making sustainability work 2
Leadership and global climate change . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . 49
The role of the corporate mission and vision statements . . . .
. . . . . . . . . . . . . . . . . . . . . . 51
The role of organizational culture . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . 52
Developing a corporate sustainability strategy . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
Thinking globally . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . 57
Voluntary standards and codes of conduct . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
62
Working with government regulations . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . 69
Social investors and sustainability indices . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

35. . 72
Summary . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . 74
3 Organizing for sustainability . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . 76
The challenge for global corporations . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . 76
Involve the whole organization . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . 82
Information flow and a seat at the table . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
87
Outsourcing . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . 88
Philanthropy and collaboration with NGOs . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
90
Summary . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . 95
4 Costing, capital investments, and the integration
of sustainability risks . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . 96
The capital investment decision process . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . 96
Capital budgeting in small and medium enterprises . . . . . .

36. . . . . . . . . . . . . . . . . . . . . . . . . . . . 98
Costs in the decision-making process . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . 99
Costing systems . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . 101
Risk assessment . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . 105
Summary . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . 120
5 Performance measurement, evaluation, and reward systems .
. . . . . 121
Performance measurement and evaluation systems . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . 122
Incentives and rewards . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . 130
Strategic performance measurement systems . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . 135
Shareholder value analysis . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . 138
Summary . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . 140
6 The foundations for measuring social, environmental,
and economic impacts . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . 141
The concept of value . . . . . . . . . . . . . . . . . . . . .

37. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . 145
Methodologies for measuring social, environmental, and
economic impacts . . . . . 148
Methodologies for measuring sustainability and political risks
. . . . . . . . . . . . . . . . . . . 157
Summary . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . 162
contents vii
7 Implementing a social, environmental, and economic
impact measurement system . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
164
Mapping the actions that drive performance . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 166
Sustainability performance metrics . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . 169
Engage with your stakeholders . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . 179
Measuring reputation . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . 183
Measuring risk . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . 185
Measuring social, environmental, and economic impacts . . .
. . . . . . . . . . . . . . . . . . . . . . 192
Summary . . . . . . . . . . . . . . . . . . . . . . . . . .

38. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . 198
8 Improving corporate processes, products, and projects for
corporate sustainability . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . 200
Organizational learning: the new battleground? . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . 201
Improving sustainability performance . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . 205
Reducing social, environmental, and economic impacts . . . .
. . . . . . . . . . . . . . . . . . . . . . 208
Involve the supply chain . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . 214
Internal reporting . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . 218
Summary . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . 222
9 External sustainability reporting and verification . . . . . .
. . . . . . . . . . . . . . 224
Standards for sustainability reporting . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. 226
Industry guidance on sustainability reporting . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . 229
Let everyone know how you’re doing . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
230
External disclosure of sustainability

39. performance measures . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . 240
Verifying sustainability performance and reporting . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . 246
Internal sustainability audits . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . 247
External sustainability audits . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . 250
Summary . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . 259
10 The benefits of sustainability for corporations and society .
. . . . . . 260
Make sustainability work . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . 261
Use the Corporate Sustainability Model to improve performance
. . . . . . . . . . . . . . . . 266
Create opportunities for innovation . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . 268
A last word . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . 272
Endnotes . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 274
Bibliography . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . 284

40. Index . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
298
List of cases, figures, and tables
Cases
Managing sustainability may not be paradoxical after all . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . 8
Sustainability at CEMEX . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . 12
Sustainability at Chiquita Brands International . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . 15
Conflict Minerals Rule . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . 32
Implementing a living wage at Novartis . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . 59
Organizing for sustainability at DuPont . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . 82
Integrating collaboration at Timberland . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . 90
Coping with political and environmental risks at Coca-Cola . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
116
Using an environmental multiplier to drive performance . . .

41. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. 132
Using shareholder value analysis . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . 139
Measuring environmental impacts at PUMA—PUMA’s E P&L
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
143
Evaluating impacts of natural gas drilling . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . 156
Sberbank: A crowdsourcing platform for engaging with
stakeholders . . . . . . . . . . . . . . . . . . . . . 179
Measuring the value of brand name . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . 184
Measuring impact at The Co-operative Bank . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . 193
MillerCoors uses benchmarking for organizational learning . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
202
Producer responsibility . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . 206
Massey Energy: stock price reaction to poor safety . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . 225
Success at Henkel . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . 265
Capturing opportunity: Toyota and the hybrid car . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . 269
Figures

42. Figure 1.1 Novo Nordisk’s triple bottom line business
principle . . . . . . . . . . . . . . . . . . . . . . . . . .
. 19
Figure 1.2 Henkel’s six focal areas in sustainability
performance . . . . . . . . . . . . . . . . . . . . . . . . .
20
Figure 1.3 The accountability cycle . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . 28
Figure 1.4 Corporate Sustainability Model . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . 30
Figure 1.5 Sustainability actions leading to financial and
sustainability success . . . . . . . . . 37
list of cases, figures, and tables ix
Figure 1.6 Factors leading to sustainability success . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . 41
Figure 2.1 BP’s committees providing nonexecutive oversight
. . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
Figure 2.2 Toyota Global Vision . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . 52
Figure 2.3 Toyota’s guiding principles . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . 53
Figure 2.4 CEMEX aligns its strategy through materiality
assessment . . . . . . . . . . . . . . . . . . . . 58
Figure 2.5 Framework to evaluate alternative corporate
sustainability strategies . . . . . . . . 60
Figure 2.6 The Ten Principles of the UN Global Compact . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

43. 67
Figure 3.1 CEMEX’s organizational structure for improved
sustainability . . . . . . . . . . . . . . . . 78
Figure 3.2 Canon Product Environmental Information System
. . . . . . . . . . . . . . . . . . . . . . . . . . . . 79
Figure 3.3 Aligning structure with intended strategy . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. 80
Figure 3.4 The value chain and sustainability . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . 83
Figure 3.5 Hewlett-Packard global citizenship governance . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86
Figure 4.1 Canon evaluates life-cycle CO
2
emissions of its products . . . . . . . . . . . . . . . . . .
. . . 103
Figure 4.2 Risk management process . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . 106
Figure 4.3 Rio Tinto’s approach to identifying risks and
opportunities of
new investments in local communities . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108
Figure 4.4 Sustainability and political risk sources . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . 110
Figure 4.5 De Beers’ sustainability risk matrix for 2012 . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
118
Figure 5.1 Kingfisher’s monitoring of Operating Company
performance . . . . . . . . . . . . . . . . 126
Figure 5.2 Balanced scorecard for sustainability . . . . . . .

44. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . 136
Figure 5.3 Shareholder value creation . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . …
Using pg. 167 Figure 7.1 of your Sustainability textbook,
provide a summary and depiction of how you would integrate
sustainability into a healthcare network, where the primary
products are services and not manufactured goods. Present a
hypothetical current state (based on your observations), present
a few concepts you have covered so far in this course that
would help improve on the existing processes you have
observed (use outside references as necessary). Finally,
highlight how you would use sustainability metrics to present a
case for investments in your projects and ideas?
Using pg. 167 Figure 7.1 of your Sustainability textbook, p
rovide a summary and depiction of
how you would integrate sustainability into a healthcare
network, where the primary products are
services and not manufactured goods. Present a hypothetical
current state (based on your
observations), present a few concept
s you have covered so far in this course that would help
improve on the existing processes you have observed (use
outside references as necessary).
Finally, highlight how you would use sustainability metrics to
present a case for investments in
your projec
ts and ideas?
Using pg. 167 Figure 7.1 of your Sustainability textbook,
provide a summary and depiction of
how you would integrate sustainability into a healthcare
network, where the primary products are
services and not manufactured goods. Present a hypothetical

45. current state (based on your
observations), present a few concepts you have covered so far in
this course that would help
improve on the existing processes you have observed (use
outside references as necessary).
Finally, highlight how you would use sustainability metrics to
present a case for investments in
your projects and ideas?