Transcript
Beyond Green
Present and Future Impacts on Your Brand PromiseBruce HuttonDaniels College of Business
INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE
INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE
Sustainable development is the only intellectually coherent, sufficiently inclusive, potentially mind-changing concept that gets even half-way close to capturing the true nature and urgency of the challenges that now confront the world. There really is no alternative.
— Jonathon Porritt (2001)
We Live in Interesting Times
We Live in Interesting Times
Never before in the 33 years of the World Economic Forum’s history has the situation in the world been so fragile, as complex and dangerous as this year. We feel that we are living in a new world – with new rules and new dangers – but certainly also with new opportunities … Today we need a new and enlarged concept of business leadership.
— Klaus Schwab, President, World Economic Forum, 2003
INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE
Scope of our times
INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE
• More people • More cultures• More connected• More demanding
Speaking of more demanding…
INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE
During this presentation
INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE
60 babies will be born in the U.S.
China?
India?
60
244
351
In ten years, what will be the number one English-speaking country in the world?
INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE
China
How many Indian college graduates speak English? 100%
0%
100%
How many jobs will the average worker hold?
INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE
By what age?
10 to 15
38
What’s the most important reason grad students choose a company?
INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE
Stat, cite
Percentage of four-year-olds who’ve used a computer?
INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE
50%
Percentage of 21-year olds who’ve created content on the web?
70%
Years to build an audience of 50 million
INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE
Television
Radio
Internet
38
13
4
Scope of our times
INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE
• Is sustainability purely an environmental issue?
The U.S. retires 426,000 cell phones
INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE
every day.
The U.S. retires 426,000 cell phones
INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE
every day.
The U.S. retires 426,000 cell phones
INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE
every day.
Energizer produces 170,000 batteries
INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE
in 15 minutes.
Energizer produces 170,000 batteries
INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE
in 15 minutes.
Energizer produces 170,000 batteries
INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE
in 15 minutes.
1 million plastic cups are used on U.S. flights
INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE
every six hours.
1 million plastic cups are used on U.S. flights
INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE
every six hours.
1 million plastic cups are used on U.S. flights
INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE
every six hours.
GMC sold 24,000 GMC Yukon Denali’s
INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE
in six weeks (2004).
24,000 GMC Yukon Denali’s sold
INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE
in six weeks (2004).
INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE
Artist: Chris JordanRunning the NumbersAn American Self-Portraitchrisjordan.com
Today’s Perfect Storm
INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE
Failure of corporate governance & ethics
Geopolitical uncertainty – war,
trade tension, anti-globalization
• Crisis of Trust
• Crisis of Inequality
• Crisis of Sustainability
On-going environmental challenges –
climate change, water, etc.
Global economic
uncertainty
Sustainable Development: Cure for Myopia
“…development which meets the needs of the present without compromising the ability of future generations to meet their own needs.” Our Common Future, 1987.
“…adoption of strategies and activities that meet the needs of the enterprise and its stakeholders today while protecting, sustaining, and enhancing the human and natural resources that will be needed in the future.”
International Institute for Sustainable Development, 1997.
“Integrating economic activity with environmental integrity, social concerns, and effective governance systems.” Breaking New Ground: Mining, Minerals and Sustainable Development, 2002.INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE
A model for a better vision
A model for a better vision
A model for a better vision
A model for a better vision
A model for a better vision
A model for a better vision
RevenueEarningsCash FlowShareholder Return
Resource EfficiencyLife Cycle Costing
Job CreationSocial InvestmentSkills Enhancement
DiversityHuman RightsCommunity OutreachLabor Standards
Zero WasteReduced EmissionRegulatory Compliance
Safety & HealthLocal EnvironmentClimate Change
Marketing Meets Opportunity
Sustainable development means different things to different people. But its essence:
Meeting the needs of people today without compromising the ability of future generations to meet their own needs.
•Broad view•Long term•Inclusive approach•Interdependent systems
INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE
Marketing Meets Opportunity
INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE
Parallel Tracks
• Marketing Concept• Satisfying needs of consumers and meeting organizational
objectives
• Marketing Orientation• Collecting information, sharing across departments, using it to
create customer value
• Societal Marketing Concept• Satisfying customer needs in ways that provide for societal
well-being
INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE
Why are we here?I think many people assume, wrongly, that a company exists solely to make money. Money is an important part of a company’s existence, if the company is any good. But a result is not a cause. We have to go deeper and find the real reason for our being. As we investigate this, we inevitably come to the conclusion that a group of people get together and exist as an institution that we call a company, so that they are able to accomplish something collectively that they could not accomplish separately--they make a contribution to society, a phrase which sounds trite but is fundamental.
— David Packard
INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE
Why are we here?
INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE
Make aLiving/Profit
Make aDifference
What Responsibility?
A corporation’s responsibility includes how the whole business is conducted every day. It must be a thoughtful institution which rises above the bottom line to consider its actions on all, from shareholders to society at large. Its business activities must make social sense just as its social activities must make business sense.
-- Business Roundtable, 1981
Kyosei
--Ryuzaburo Kaku, Canon
INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE
What Responsibility?
INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE
Creating Value: The CSR AdvantageOrganizations have a responsibility to try to find an approach to basic social problems which fits their competence and which, indeed, makes the social problem into an opportunity for the organization.
-- Peter Drucker, 1992
INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE
Creating Value: The CSR Advantage
INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE
What is CSR?• No universally accepted definition
• Often used: Operating in a manner that meets or exceeds the ethical, legal, commercial, and public expectations that society has of business.
• Alternative: Achieving commercial success in ways that honor ethical values and respect people, communities, and the natural environment.
INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE
Events and Trends Responsible for Growth in CSR/Sustainable Development• Changing Expectations of Stakeholders• Shrinking Role of Government• Increased Customer Interest• Supply Chain Responsibility• Growing Investor Pressure• More Competitive Labor Markets• Demands for Increased Disclosure• New and Emerging Issues
What it means for your brand
CSR/SD Impact Areas• Governance decisions• Product and service offerings• Research and development• Employee practices• Capital investments, facility sites• Production processes• Relationships• Global market access• Investor relations• Marketing and communications• Community relations• Public policy advocacy
INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE
Benefits of CSR/SD
• Improve financial performance• Reduce operating costs• Enhance brand image and reputation• Increase customer loyalty and sales• Increase productivity and quality• Attract and retain employees• Reduce regulatory oversight
INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE
INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE
Sustainable Development Process
top related