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• www.doughtycentre.info
“Sustainability and Responsibility at the Heart of Successful Management.”
• “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
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.”
Source: Optimum Population Trust: www.optimumpopulation.org
9
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.
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
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
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
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
THE FOLLOWING NINE SLIDES ARE FROM
Stress Zones
Environmental Stress - Water
Water Scarcity
Water scarcity Demography
Environmental Stress - Population Growth
Water scarcity Demography Crop decline
Environmental Stress - Crop Decline
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
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
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
Hunger Information Source: UN Millennium Development Goals 2005 - Criteria - Developing Countries more than 20% of population
undernourished.
Recent Conflict
Hunger Information Source: UN Millennium Development Goals 2005 - Criteria - Developing Countries more than 20% of population
undernourished.
Islam
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
er
pe
rso
n)
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
• "...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
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
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
“Every single social and global issue of our day is a business opportunity in disguise.”
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
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
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
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.”
C SUITE OF ROLES
• C ommunicator
• C oach
• C onsultant
• C odifier
• C onnector
• C onscience
• C ajoler
The Corporate Responsibility
professional
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
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
•