November 6th 2014, Riga www.innovation-forum.co.uk Tobiaswebb.blogspot.com

tobias.Webb@innovation-forum.co.uk

How irresponsible business affects the world, and what some companies are doing about it

Tobias Webb, Founder & MD, Innovation Forum

•  Not many companies mean to have negative influences

•  Generally it happens by accident

•  Companies don’t think about impact and consequences of actions

•  Bad systems, short term thinking and poor institutions mean incentives are often wrong

A key point to remember

Example one: Deforestation is linked with the spread of Ebola

Example two: Bangladesh & working conditions

Example three: Business contributions to corruption

Example four: Business contributions to climate change

So how are some companies trying to respond to this?

•  Policy development via stakeholder engagement

•  Policy implementation and target setting

•  Supplier and business partner engagement

•  Investor and campaign group conversations

•  Seeking benchmarks with peers

•  Tuning ‘risk radar’ to upcoming issues

•  Embedding new practices into the business

Asia Pulp & Paper, Wilmar, Cargill & zero deforestation

The Bangladesh Accord of brands, focusing on structural integrity

Business alliances against corruption

Companies leading the way to tackle climate change

Why do companies take these actions?

•  Reputation risk management

•  Supply security

•  Customer retention

•  Moral imperatives

•  Employee recruitment, retention and motivation

•  Investor and campaign group pressure

•  License to Operate (political and social)

So, what does the future look like?

•  Global environment under pressure (50% of species lost in last 50 years)

•  Rising population & consumer demands (9 billion by 2050)

•  Political & economic volatility

•  Increased transparency and perhaps regulation

•  Pressure to tackle risks – and seize innovation opportunities

•  Final point: Innovation in design, process, management and engagement will be KEY to better management and business success in the long term!

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tobias.webb@innovation-forum.co.ukwww.innovation-forum.co.uk

Check out the Smarter Business blog at: http://tobiaswebb.blogspot.co.uk

Thanks, and contact details:Tobias Webb

Founder and Managing DirectorInnovation Forum