Bruce's slides

Beyond Green

Present and Future Impacts on Your Brand PromiseBruce HuttonDaniels College of Business

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


Scope of our times


• More people • More cultures• More connected• More demanding

Speaking of more demanding…


During this presentation


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?


China

How many Indian college graduates speak English? 100%

0%

100%

How many jobs will the average worker hold?


By what age?

10 to 15

38

What’s the most important reason grad students choose a company?


Stat, cite

Percentage of four-year-olds who’ve used a computer?


50%

Percentage of 21-year olds who’ve created content on the web?

70%

Years to build an audience of 50 million


Television

Radio

Internet

38

13

4

Scope of our times


• Is sustainability purely an environmental issue?

The U.S. retires 426,000 cell phones


every day.



every day.



every day.

Energizer produces 170,000 batteries


in 15 minutes.



in 15 minutes.



in 15 minutes.

1 million plastic cups are used on U.S. flights


every six hours.



every six hours.



every six hours.

GMC sold 24,000 GMC Yukon Denali’s


in six weeks (2004).

24,000 GMC Yukon Denali’s sold


in six weeks (2004).


Artist: Chris JordanRunning the NumbersAn American Self-Portraitchrisjordan.com

Today’s Perfect Storm


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






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


Marketing Meets Opportunity


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


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


Why are we here?


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


What Responsibility?


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


Creating Value: The CSR Advantage


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.


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


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



Sustainable Development Process

Bruce's slides

Business

new world

new dangers

new rules

new opportunities

world economic forums

interesting timesnever

true nature

future impacts