Doing Well by Doing Good: Global Sustainability at Aditya Birla Group.

Doing Well by Doing Good:Doing Well by Doing Good:Global Sustainability atGlobal Sustainability at

Aditya Birla GroupAditya Birla Group

• Hosted by Wayne Cascio, Ph.D.

• SHRM Foundation’s 9th DVD

• Filmed at Aditya Birla GroupHeadquarters, Mumbai, India

• Comprehensive Interviews

• Officers, Managers, and Employees

Video Overview

• Video Introduction

• A Brief Snapshot of The Aditya Birla Group

• Community Involvement

• Defining Global Sustainability

• Vision and Focus

• Sustainability and Business Strategy

• Sustainability Over The Long Term

• Sustainability and Business Strategy

• Corporate Benefits of Sustainability

• Role of HR in Sustainability

• Where to Begin

• Advice to Future Leaders

• Five Lessons in Global Sustainability

Video Synopsis

Company Overview

OPERATING INFORMATION

•Headquartered in Mumbai, India

•$35B in annual revenue

•131,000 employees worldwide

•Operates in 33 Countries

•Named one of the top six places for leaders in the Asia-Pacific Region

•60% of revenues come from overseas operations

Company Overview

GLOBAL BUSINESSES

•A metals powerhouse, among the world’s most cost-efficient aluminum and copper producers.

•No.1 in viscose staple fiber

•The largest producer of carbon black

•The fourth-largest producer of insulators

•The fifth-largest producer of acrylic fiber

•Among the top 10 cement producers

•Among the best energy-efficient fertilizer plants

Company Overview

INDIA-SPECIFIC INDUSTRIES

•A top fashion (branded apparel) and lifestyle player

•The second-largest producer of viscose filament yarn

•The largest producer in the chlor-alkali sector

•Among the top three mobile telephony companies

•A leading player in life insurance and asset management

•Among the top two supermarket chains in the retail business Among the top 10 BPO companies

Company Overview

BEYOND BUSINESS

•Works in 3,000 villages.

•Reaches out to seven million people, annually through the Aditya Birla Centre for Community Initiatives and Rural Development focusing on healthcare, education, sustainable livelihood, infrastructure and espousing social reform.

•Runs 42 schools, which provide quality education to 45,000 children. Of these, over

•18,000 children receive free education.

•Its 18 hospitals tend to more than a million villagers.

Company Overview

BEYOND BUSINESS

•In line with its commitment to sustainable development, has partnered with Columbia University in establishing the Columbia Global Centre’s Earth Institute in Mumbai.

•To embed corporate social responsibility (CSR) as a way of life in organizations, has set up the Federation of Indian Chambers of Commerce and Industry – Aditya Birla

•CSR Centre for Excellence, in Delhi.

Discussion Questions

What aspects of a healthy society can be influenced by corporations?

• Education and health care• Equal employment

opportunity and job creation• Efficient use of natural

resources

• List some examples of how the Aditya Birla Group is improving education and health care in the communities in which it operates.

• Discuss how a corporation’s employment standards might influence other businesses and organizations in the community.

• How might inefficient use of natural resources affect a community?

Additional Questions

What competitive advantages could be realized as a result of engaging in the local community and global sustainability?

• Healthy and educated workforce• Cost savings through efficiency• Long-term availability of source

materials

• In what ways have the Aditya Birla Group’s health care initiatives created a competitive advantage?

• Define sustainable livelihood.

• Discuss some examples of local community initiatives that have an impact on global sustainability.

Additional Questions

In what ways can a company put more back into the world than it consumes?

• Community initiatives and rural

development

• Sustainable operations and

environmental rehabilitation

• Recycling, reusing, reducing

and repairing

• What are some of the community initiatives of the Aditya Birla Group?

• Why are sustainable operations important for communities?

• List other ways a company could promote recycling, reusing, reducing and repair.

Additional Questions

Why is long-term success in business dependent on a healthy society?

• Society is your customer• Society is your source of talent• Healthy societies have fewer

issues

• How has the Aditya Birla Group invested in the long-term health of local communities?

• What human resource expenses can be minimized by operating in a healthy society?

• What are some operational benefits that healthy societies afford to companies?

Additional Questions

How would you define compassionate capitalism?

• Capital should not be your only concern• Avoid exploitation• Collective enrichment

• How has the Aditya Birla Group exemplified compassionate capitalism?

• What techniques can be employed to create and maintain a higher sense of purpose?

• How can an executive influence an organization’s culture?

Additional Questions

Why should firms consider undertaking sustainability initiative(s) that intersect with the strategy of their businesses?

• The natural (easy) fit

• Protect needed resources

• Improved public image

• Give some examples of how the Aditya Birla Group intersected its strategy with global sustainability.

• In what ways would a company be affected by wasteful use of natural resources?

• Why are potential employees drawn to companies that are environmentally and socially responsible?

Additional Questions

What are some specific issues of global sustainability that a company might address?

• Climate change and water shortages

• Infectious disease and reduction of poverty

• Disaster response and relief

• How did the Aditya Birla Group’s investment in health care systems help prevent a breakout of the dengue fever?

• What is fair trade, and how does it help prevent poverty?

• In what ways can a company prepare for catastrophic disasters?

Additional Questions

How does a company’s attention to global sustainability attract talented human capital?

• The good corporate citizen

• An opportunity to contribute

• Caring for society implies decency

• Why is young talent attracted to the Aditya Birla Group?

• How does the Aditya Birla Group use employer-sanctioned charitable activity to encourage employee loyalty?

• List some ways that a company might promote its global sustainability efforts to entice new talent.

Additional Questions

• Employee buy-in

• The financial investment

• Long-term integration of the effort

Why is it critical to have top-level executives buy in to global sustainability efforts?

• How do Aditya Birla Group’s top-level executives commit to global sustainability?

• Are there any downsides to global sustainability efforts that are not tied to a business’s strategy?

• How might an organization with limited resources finance large-scale sustainability efforts?

Additional Questions

In what ways can an organization measure its impact in terms of sustainability?• Cost savings

• Availability of resources

• Polling new talent

• How has the Aditya Birla Group measured the value of its global sustainability and community involvement efforts?

• What are some advantages of conserving resources over recycling waste?

• Discuss how you might calculate a metric that links sustainability to employee retention

Additional Questions

Five Important Lessons

1. Recognize the link between sustainability and competitive advantage – focus on initiatives that create a meaningful benefit for society and that are also valuable to your business. The tighter that linkage, the great the opportunity to leverage the firm’s resources.

2. Leadership matters – Corporate leaders with vision are recognizing that by advancing global solutions they can create valuable, renewable resources, establish new markets for their companies, and unleash tremendous opportunities.

Five Important Lessons

3. Consumers care –  In developed countries, study after study shows that a majority of consumers believe they can help companies create products and services that are a win-win for consumers, business and society.  

Five Important Lessons

4. Measurement matters – Measuring and documenting a company’s true impact with respect to sustainability is critical. Greenwashing, or otherwise faking it, will ultimately be exposed to the detriment of the company’s image and reputation. Beyond that, measurement matters to corporate boards and shareholders who want to understand the value of sustainability initiatives in advancing the interests of their companies.

Five Important Lessons

5. Accountability and integrity matter – A key reason for embracing sustainability is to build trust with consumers, employees and potential job applicants. Communications that are less than honest and candid are an invitation to unwanted publicity and negative media attention. Tell the truth and tell it first.