Bitci david grayson presentation kbc bank

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www.doughtycentre.info “Sustainability and Responsibility at the Heart of Successful Management.”

Transcript of Bitci david grayson presentation kbc bank

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• www.doughtycentre.info

“Sustainability and Responsibility at the Heart of Successful Management.”

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• “The excesses that drove the bubble and the breakdown that followed happened because leaders forgot that free enterprise requires rules. ……

• Good ground rules are a public good; as such they are the responsibility of states. Capitalism needs the state: not to run the economy but to regulate how individuals run it and have them face the consequences of their actions. Governments did not tend to this essential function – least of all in financial markets…”

Financial Times EDITORIAL - January 26, 2012 -Ruling capitalism

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Financial Times EDITORIAL - January 26, 2012 -Ruling capitalism

• “laws and regulations are not all. Since Adam Smith, intelligent defenders of free markets have known that capitalism works best when people’s free choices are also governed by moral values. The cardinal virtue for capitalists is to support rules that make capitalism a success.”

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Source: Optimum Population Trust: www.optimumpopulation.org

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Projected Population aged 60+ as percentage of overall population in 2010, 2030 and 2050

2010 2030 2050

US 18.2 25.3 27.4

Mexico 9.4 17.7 28.2

UK 22.7 27.2 28.8

Brazil 10.2 18.9 29.3

China 12.3 23.4 31.1

Russia 18.1 25.0 31.7

France 23.2 30.4 32.6

Spain 22.4 30.1 37.5

Italy 26.6 34.8 39.1

Germany 26.0 36.5 39.5

Japan 30.5 37.9 44.2

Almost tripling of

Population aged 60+ by

2050

30 – 45% of total Population will be aged 60+ in

2050

30 – 45% of the total population of countries like Japan, Germany and France will be aged 60+, while countries like China and Mexico will experience a tripling of this segment by 2050

Source: United Nations (2009) . World Population Prospects.

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Growth: The global middle class is rapidly expanding

100-150 million people

will join the world’s

middle class…every year between now and

2030

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Increased demand 50% by 2030 (IEA)

Energy

WaterIncreased demand

30% by 2030

(IFPRI)

FoodIncreased demand

50% by 2030

(FAO)

Climate Change

1. Increasing population

2. Increasing levels of urbanisation

3. The rightful goal to alleviate poverty

4. Climate Change

The Perfect Storm?

Prof. Sir John Beddington – UK Government Chief Scientist

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It is one of those moments where a

scientific realisation, like

Copernicus grasping that the

Earth goes round the sun, could

fundamentally change people’s

view of things far beyond science.

It means more than rewriting some

textbooks. It means thinking

afresh about the relationship

between people and their world

and acting accordingly

The Economist

Source: The Economist, May 26th 2011

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Welcome to the Anthropocene

• For humans to be intimately involved in

many interconnected processes at a

planetary scale carries huge risks.

Source: The Economist, May 26th 2011

The Economist

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THE FOLLOWING NINE SLIDES ARE FROM

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Stress Zones

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Environmental Stress - Water

Water Scarcity

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Water scarcity Demography

Environmental Stress - Population Growth

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Water scarcity Demography Crop decline

Environmental Stress - Crop Decline

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Water scarcity Demography Crop decline Hunger

Hunger Information Source: UN Millennium Development Goals 2005 - Criteria - Developing Countries more than 20% of population

undernourished.

Environmental Stress - Hunger

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Hunger Information Source: UN Millennium Development Goals 2005 - Criteria - Developing Countries more than 20% of population

undernourished.

Coastal riskWater scarcity Demography Crop decline Hunger

Environmental Stress - Thermal Expansion

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Hunger Information Source: UN Millennium Development Goals 2005 - Criteria - Developing Countries more than 20% of population

undernourished.

Coastal riskWater scarcity Demography Crop decline Hunger

Multiple Stress Zones

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Hunger Information Source: UN Millennium Development Goals 2005 - Criteria - Developing Countries more than 20% of population

undernourished.

Recent Conflict

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Hunger Information Source: UN Millennium Development Goals 2005 - Criteria - Developing Countries more than 20% of population

undernourished.

Islam

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Meeting human demands within the ecological limits of the planet

0.2 0.4 0.6 0.8 1.0

World average biocapacity per person in 2006

World average biocapacity per person in 1961 UN

DP

thre

sh

old

fo

r h

igh

hu

ma

n d

eve

lop

me

nt

High human developmentwithin the Earth’s limits

2

4

6

8

10

12

Eco

log

ica

l Fo

otp

rin

t (g

lob

al h

ecta

res p

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United Nations Human Development Index

Meeting the dual goals of sustainability High human development and low ecological impact

Source: © Global Footprint Network (2009).

Data from Global Footprint Network National

Footprint Accounts, 2009 Edition; UNDP

Human Development Report, 2009

African countries

Asian countries

European countries

Latin American andCaribbean countries

North American countries

Oceanian countries

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• "...the responsibility of enterprises for their impacts on society

• EU Commission Communication on CSR Oct 2011

• http://ec.europa.eu/enterprise/policies/sustainable-business/files/csr/new-csr/act_en.pdf

• For further definitions: www.som.cranfield.ac.uk/som/p14347/Research/Research-Centres/Doughty-Centre-Home/About-Us/Defining-CR

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Copyright © Cranfield University 2012

Stage 1 Denier

Stage 2 Complier

Stage 3 Risk-mitigator

Stage 4 Opportunity maximiser

Stage 5 Champion

Stages of CorporateResponsibility Maturity Five Stages

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Corporate Sustainability

Is a business approach that creates long-term

shareholder value by embracing the opportunities

and managing the risks associated with economic,

environmental and social developments.

PWC - SAM - The Sustainability Yearbook 2008

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“Every single social and global issue of our day is a business opportunity in disguise.”

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1. Brand value and reputation2. Employees and future workforce 3. Operational effectiveness 4. Risk management 5. Direct financial impact 6. Organisational growth 7. Business opportunity

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Sustained Value Creation

Improved environmental, social and government performance

Brand value

and reputation

Employees

and future

workforce

Operational

effectiveness

Risk

management

Direct

financial

impact

Organisational

growth

Business opportunity

Engaged Engaged suppliers

Engaged Engaged communities

Engaged civil Engaged civil society

Engaged Engaged customers

Engaged Engaged employees

Measure and report impacts

Opportunities for investment

Empowered stakeholders

Ambitious sustainability goals linked to core purpose & strategy

Focus on most material impacts

if

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Core Vision

Strategic

Operational

Sustainability

Strategy as part

of vision, mission, values

• Tone from top

• Governance & board oversight

• Key targets

& measure

• Embedding

in divisions

and

business

functions

• Knowledge-management &

training

• Everybody’s Business

• Energising Value-Chain

•Communications

and Stakeholder

engagement

• Making most of networks

Developed from David Ferguson

© Doughty Centre 2009

• Tone from top

• Governance & board oversight

• Key targets

& measure

Sustainability

Strategy as part

of vision, mission, values

• Embedding

in divisions

and

business

functions

• Everybody’s Business

• Energising Value-Chain

• Specialist function

to coach, encourage

andchallenge

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Level of Engagement With CSR/Sustainability Function

Q: Please rate the level of engagement that each of the following functions within your company has with your company’s CSR/sustainability function.

Engagement is high in the communications-focused functions

Highest in consumer products/retail sector (75 percent) vs. others (57 percent)

Given that innovating for sustainability is highlighted as important for business success and improving trust in business, the lower level of engagement here appears to be an issue.

The lower degree of engagement with companies’approaches to CSR/sustainability is an issue given its importance to employee satisfaction and recruitment efforts.

Convincing investors abut the value of sustainability is an important leadership challenge, and this lower level of engagement is perhaps a contributing factor to this challenge.

“Engaged (4+5),”* 2011

*Percentage of respondents who selected (5) plus (4) on a 5-point scale,

where 1 is “not at all engaged with CSR/sustainability,” and 5 is “very

engaged with CSR/sustainability.”

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C SUITE OF ROLES

• C ommunicator

• C oach

• C onsultant

• C odifier

• C onnector

• C onscience

• C ajoler

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The Corporate Responsibility

professional

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competencies

• Thought leadership

• Communication skills

• Selling and persuading

• Creative problem solving

• Strategic vision

• Horizon scanning/seeing the bigger picture and bringing that into the organisation

• Being a leading and good example

• Being credible and having gravitas

• Be approachable

• A good networker

• Understanding the politics of an organisation

• Well informed and trend spotting

• Being resilient

• Innovative thinking

• Strong business basics

• Commercial acumen

• Influencing ability

• Being flexible

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skills

• Ability to analyse and understand data

• Understanding motivations for behaviour and how to change that (including engagement)

• Running change programmes

• Developing identity and helping employees develop understanding

• Facilitation of meetings, workshops and with external parties

• Develop strategies

• Build a business case

• Create a tactical plan, and measure and report on progress

• Stakeholder engagement and management

• Engaging with a variety of stakeholders, from trade bodies to NGOs, suppliers and legislators

• Running training and education programmes

• Report writing

• Presentation skills

• Running cross-functional working groups or projects

• Learn on the job

• Tri-sector partnering experience

• Getting on agendas and agenda setting

• Interpretating and translating

• Finding business opportunities

• Writing skills

• Experience addressing sustainability issues from human rights to CO2 emissions, diversity to ethical trade