Redesigning management education for the next decade

REDESIGNING MANAGEMENT EDUCATION FOR THE NEXT DECADE

Is Sustainability Management the future of MBA?

Presented by:S.Bharani RamakrishnanS.Vivek kumarBSMED, Bharathiar University, Coimbatore, Tamilnadu

► Leading organizations world-wide are turning to sustainability management

► To examine the implications of their business decisions upon the environment

► To reduce costs associated with energy consumption

► To improve processes especially in the areas of compliance, risk management and customer recruitment.

DIFFERENT DIMENSIONS OF SUSTAINABILITY:

Environmental

dimension

Social dimension

Dimensions of

sustainability

Economic dimension

FEATURES AND BENEFITS OF SUSTAINABILITY MANAGEMENT

► Reduce costs in every area of the enterprise, especially around energy and waste reduction and data centres

► Identify, assess, and respond to social, economic, and environmental risks

► Gain performance insight to build best practices

CONT.,► Drive transparency and

accountability at all levels ► Align resources to increase

collaboration and drive sustainable growth

► Report to stakeholders around sustainable business practices

► Track and measure key sustainability metrics using industry recommended methodologies and Performance Management frameworks

SUSTAINABILITY MANAGEMENTINDIA’S PERSPECTIVE► India’s rapid economic growth in last

several years has made us aware of two stark realities:

► It has lifted millions out of poverty;

► This economic growth has been accompanied by accelerated depletion of natural resources and rapid deterioration in environment quality.

► This has necessitated a new business paradigm which enables rapid economic growth without compromising the capacity of the ecosystem to sustain, nurture and fuel economic development and human well-being.

► This calls for a sustainability approach of doing business, wherein business success is measured not only in terms of its financial bottom line, but also in terms of its performance in social and environmental areas.

Why Corporate Sustainability Management is Vital for

Businesses?

Corporate sustainability management allows for better business risks

It allows a company to provide products and services which fulfil the needs of the customers and are environmentally and socially responsible

It allows a company to plan for manufacturing costs in a way that minimizes risks and losses

BUSINESS ADVANTAGES OF CORPORATE SUSTAINABILITY MANAGEMENT:

Cost and Risk Reduction Reputation and Legitimacy Innovation and Repositioning Clean Technologies Growth Trajectory

BUSINESS CASE FOR CORPORATE SUSTAINABILITY MANAGEMENT

Nurture internal capabilities - Strategic commitment and culture necessary to turn the environmental, social and economic risks into competitive advantage

Engage external constituencies - Systematic knowledge of political, social, economic, technological and ecological drivers for securing reputation and legitimacy

CONT.,

Accelerate innovation and repositioning - Product stewardship into the entire value chain, and skills and competencies for the future

Crystallize the company's growth path and trajectory - A sustainability vision which is a shared road map for meeting the unmet needs of the emerging and new markets

CUTTING EDGE SOFTWARE SOLUTION WITH SUSTAINABILITY MANAGEMENT

The sustainability management service providers online are ready to work in partnership with various commercial as well as public sectors to provide an optimised solution for their clients

They combine the latest technology with the existing management resources to deliver effective solutions

They offer higher level of assistance to bring about effective changes for proper management of the resources

DEMAND FOR LEADERS IN SUSTAINABILITY ON THE RISE

The curriculum should prepare the managers, executives and entrepreneurs to lead their companies to a more successful and sustainable way of doing business – one that enhances all forms of capital, including natural, human and financial

The managers and executives should learn to both understand and apply sustainable solutions that transform traditional business strategies.

CORPORATE SUSTAINABILITY MEASUREMENT AND REPORTING TOOLS:

Pattern of resource use

Rate of associated resource production

Sustainability

The most mainstream CSM measurement and reporting tools currently in use: the Global Reporting Initiative (GRI)

GRI focus almost entirely on the numerator, and rarely, if ever, on the denominator

Does the rate of resource use (the numerator) exceed, match, or fall below the rate of resource production or renewal (the denominator)?

Are business operations sustainable or not?

This is the fundamental question that CSM practitioners in industry should be trying to answer. Yet, ironically, most mainstream CSM measurement and reporting tools in use today fail to address it

THE ROLE OF MBA INSTITUTES

► The institutions adopting a curriculum designed around the principles of sustainability should work on solutions to this problem and offer some promising ideas

► The institutions not only have to develop quotients for environmental sustainability management, but also for economic and social sustainability management, as well

SUSTAINABILITY INDEXES

Corporate sustainability - including practices that are good for the climate - is becoming an important factor in investor decision-making

Sustainability Indexes quantify the competitive position of a company as regards global sustainability trends and the company’s sustainability profile

Example: Dow Jones Sustainability Indexes

The Dow Jones Sustainability Indexes track and define industry leaders that effectively integrate economic, social, and environmental concerns into their business strategies

Companies that embrace sustainability issues will generate more long-term shareholder value

Because they do not ignore future risks resulting from technological developments, social inequalities, and growing environmental problems

BEST-IN-CLASS The German auto manufacturer BMW is a

sustainability leader.

BMW’s effective management, state-of-the-art production process, advanced employment culture, and its strong commitment to reducing the carbon dioxide emissions of its cars.

Climate-concerned product initiatives, such as General Electric’s “ecomagination,” demonstrates integration of eco-design requirements is in the industrial sector

► Businesses across the world are therefore recognising the need to address the environmental and social impacts of their activities which, together with profits

► Leading organizations have now started to operate with a high sensitivity to social, environmental and economical issues

► The future competitiveness among the organisations requires internalization of sustainability management through a clear, practical, integrated framework.

THE QUOTIENTS!!

Therefore, the MBA programmes has to start focusing more on the sustainability management, and develop quotients for environmental, economic and social sustainability

Thank you!