Sustainability in the Agri-Food Context (AgroEcology course lecture)

Sustainabilityin the

Agri-Food Context

Outline

1. Origins of Sustainability

2. Social Responsibility and Sustainability

3. Components of Sustainability

4. Measuring Sustainability

Notable Contributors

• Adam Smith– Scotland, 1723-1790

• Peter Drucker– Austria, 1909-2005

• Gro Brundtland– Norway, 1939- present

Such is the delicacy of man alone, that no object is produced to his liking. He finds that in

everything there is need for improvement… The whole industry of human life is employed

not in procuring the supply of our three humble necessities, food, clothes and lodging, but in procuring the conveniences of it according to

the nicety and delicacy of our tastes.

Adam SmithAuthor: An Inquiry into the Nature and Causes of the Wealth of Nations

Professor of moral philosophy at University of GlasgowPioneer of “political economy” (study of production)4

Leaders in every single institution and in every single sector … have two responsibilities. They are responsible and accountable for the performance of their institutions, and that requires them and their institutions to be concentrated, focused, limited. They are responsible also, however, for the community as a whole.

Peter Ferdinand Drucker“Father of Management”

Presidential Medal of Freedom Recipient

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Sustainable development is that which meets the needs of the present without compromising the ability of future generations to meet their own needs.

Gro Harlem BrundtlandPrime Minister, Norway (1981, 86-89, 90-96)

World Commission on Environment & Development (1983-87)Director-General, World Health Organization (1998-2003)

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Origins

21st

• Community responsibility

• Transparency

Late 20th

• Societal concerns

Early 20th

• Environmentalism

19th

• Production• Reliable raw

material sourcing

18th

• Necessities of Life

Development of Current State (Agriculture)

Chemical Factors

Bio- FactorsPhysical Factors

Soil Quality

Air QualityWater Quality

Environ Quality

Economic Viability

Social Respon-sibility

Soil Quality Environmental Quality Agricultural Sustainability

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Sustainable Agriculture

"Sustainable agriculture is the efficient production of safe, high quality agricultural

products, in a way that protects and improves the natural environment, the social and economic conditions of farmers, their

employees and local communities, and safeguards the health and welfare of all

farmed species."

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We live today in an age of sustainababble, a cacophonous

profusion of uses of the word sustainable to mean anything from

environmentally better to cool.

Robert EngelmanWorld Resources Institute)

Now sustainability is such a political category that it’s getting more and more difficult to think about it in a serious way. Sustainability has

become an ornament.

Rem KoolhaasDutch Architect)

Sustainability may be defined as a values-laden umbrella concept

about the way in which the interface between environment & society

(including its institutions & individual members) is managed to ensure that human needs are

met without destroying the life supporting ecosystems on which we depend.

Wayne VisserThe Age of Responsibility

Animal Welfare

Anti-corruptionCommunity Involvement & Philanthropy

Consumer Health, Safety, Privacy, or Support

Education or CultureEmployee Ethics

Employment Creation

Fair competition

Stakeho lder Dia logue Capacity-Building

Pollution Prevention

Clean Technology

Climate Change

Fair Taxation

Gender

Diversity & Non-discrimination

Sustainable Resource Use

Human Rights & Security

Intellectual Property & Access to Technology

Sustainabi li ty Reporting

EnvironmentGovernance & Risk

Public Health

Fair Supplier Relations

Social En te rp r ise

Fair Marketing

Labour Practices

Political InvolvementSocial Di al og u e

Respons ible Inve stment

Social Development

Human DevelopmentWork Health & Safety

(Economic Inequality)

“values-laden umbrella”

Sustainability=

Systems Thinking

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The 7 Drivers for (Voluntary) Sustainability

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Cost Reduction

Resource Conservation

Talent Attraction, Retention, Motivation

Satisfying Customer

Needs

New Business

Opportunities

Capital and Social

Investment Attraction

Legal Compliance/

Activism

Sustainability is the strategic philosophy used to change action and plan for the future;

Social responsibility the responsibility to be communicate these actions appropriately.

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Corporate Social Responsibility vs Sustainability

CSR Sustainability

Vision Looks backwardsReports actions

Looks forwardsPlans change

Targets Opinion-formers (advocates, media)

Value chain management(suppliers to consumers)

Business Compliance Business practice

Management Communications Operations/Marketing

Reward Stakeholders Citizenry

Drive Social CapitalExisting market reputation

Emerging markets opportunities

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RESPECT

EQUITY

TRANSPARENCY

TRUST

MUTUTAL BENEFIT

SUSTAINABILITY

Because it leads to

Because it leads to

Because it leads to

Why CSR: Key Partnering Principles

A brand is no longer what we tell the consumer it is – it is what

consumers tell each other it is.

- Scott D. Cook, CEO Intuit

Social License: Consumer Response

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PhilanthropyDoing something without changing

Reputation ManagementChanging only enough to reduce risk

Strategic ResponsibilityPromoting organisational effectiveness

Social InnovationSeeking new outputs to solve problems

SocietalLeadership

Influencing surroundingconditions for mutual benefit

Businessas usual

Evo

lvin

g S

ocia

l Res

pons

ibili

ty

Mainstreaming Organisational Responsibility

Integrating Organisational Responsibility





SocietalLeadership






SocietalLeadership


Businessas usual

Evo

lvin

g S

ocia

l Res

pons

ibili

ty

Mainstreaming Organisational Responsibility

Integrating Organisational Responsibility

Organizational Responsibility

Why?

1.Hyper-globalization

2.Easy & affordable communication

3.Product customization

4.Demographics

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1. Hyper-globalization

• Trade integration– Significant decrease in information and

communication costs– Fragmentation of manufacturing across

borders– Individual production stages geographically

corresponds to lowest COP– Rise in multinational corporations (>80,000)

and foreign direct investment• Accounts for 67% of world trade

Source: Subramanian & Kessler, 201329

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2. Communication

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3. Product Customization

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4. Demographics: shifting expectations

New Consumers & Decision-makers33

4. Demographics: urbanization

World Health Organization34

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What to Expect: Sustainability Standards

• Strong environmental and social focus

• Little emphasis on management (economics)

• Implications for public sector?

Expectations

• Obligation demonstrates sector is in reactionary state

• When will shift to proactive strategy occur?

Every time you spend money, you’re casting a vote for the kind

of world you want.

- Anna Lappe

Action:

Likely Result:• Marketing move to support existing alpha-consumers? Yes.

• Bold stance that will build social capital and loyalty in the brand? Yes.

• Gaining preferential access to a hardworking demographic that will increase productivity? Yes.

• Change in hiring policy? …• 10,000 employees = 4% of company today• Average annual growth of earnings: 17.86%

The 7 Drivers for (Voluntary) Sustainability

1. Reduce Costs2. Conserve Resources3. Attract, Retain & Motivate Talent4. Satisfy Customer Needs5. Develop New Business Opportunities6. Attract Capital & Social Investment7. Legal Compliance & Legal Action/Activism

Measuring Sustainability

Step 1: Reject Post-Truth thought

Step 1:Vision

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Building Sustainable Strategy

Used with Permission: www.the naturalstep.org

Modified Maslow’s LawGrowth*

Tension/ Stress

Actualization

Esteem

Culture

Safety

Basic Operation generating revenue, paying bills

Consistent revenue/profit, risk mitigation

healthy workplace, work-life balance,

viable

confidence, brand recognition

creativity, problem solving, innovation

Modified Maslow’s Law

Risk

(soc

ial &

eco

nom

ic)

Prof

its/

Reve

nue

Liab

ility

Step 2:Focus

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Building Sustainable Strategy

Used with Permission: www.the naturalstep.org

“What gets measured, gets managed.”

Peter DruckerFather of Management Theory

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Materiality & Benchmarking

• Materiality: What is relevant to your vision?

• Benchmark: What can I realistically measure?

Develop SMART Goals

• Define goal• Who is involved? What is being accomplished? Where is being done? Why am I doing

this? Which resources do I need?

Specific

• Can I track progress and measure outcome?• How will I know I reach my goal?

Measurable

• Is it reasonably likely to be accomplished?

Attainable/Achievable

• Does it contribute to my Vision?

Relevant

• Does it have a time limit?

Timely

ExampleObjective Key

Performance Indicator

Performance Measure

Goal Actual

Environment Energy Consumption

Water Quality

Energy Use (kWh)

Nutrients in waterway

X

Y

Social Improving Community

Family Health

Adopt RoadSponsor Team

Sunday Dinner

Y/NY/N

45Economic Production

Efficiency

Business Continuity

Annual YieldProd. Efficiency

Actual Growth Rate

Z+2%

3%

Take Steps to Meet Goals

“Sustainable Development is about minimizing the negative impact of doing business…”

The significant problems we face cannot be solved at the same level of thinking

we were at when we created them.Albert Einstein