Corporate sustainability abstract_en.02
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Transcript of Corporate sustainability abstract_en.02
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Integrating Social and Environmental problems in
business
October 2007
CORPORATE SUSTAINABILITY ABSTRACT EN.02
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CORPORATE SUSTAINABILITYCORPORATE SUSTAINABILITYANTICIPATING A TRENDANTICIPATING A TREND
Companies are generally used to following trends, in many situations, addressing the latest challenges and reacting to market opportunity. Wherever they define their position, it ultimately depends on their appetite for risk , ability to innovate, investment strategy and their culture.
EARLY ADOPTERS
MAJORITY
“OLD WAY”
INNOVATORS
TIME
BENEFIT / RISK
INNOVATION AND MARKET DIRECTION NATURAL BENT
Slumping or phasing-out Companies, industrial Third World.
EARLYEARLYLATELATE
Majority of companies according to their investment strategy and innovation.
Big Companies, Multinationals, “Morning Star”, Market drive makers
Innovating and “Visionary” Companies
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CORPORATE SUSTAINABILITYCORPORATE SUSTAINABILITYSOCIETY AND COMPANYSOCIETY AND COMPANY
Business as Divine Right. No duty for
neighborhood.
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MIDDLE AGE(COIN)
TRADEFINANCE
Awareness of Human and Civil Rights of workers.
INDUSTRIAL REVOLUTION(COKE)
ASSOCIATIONSUNIONS
Book-keeper principles. Progressive taxation of incomes as social justice.
COMPUTER AGE(BIT - INFORMATION)
CONSUMERISMADVERTISINGAUTHORITY
Social Responsibility of companies, Privacy, equal
opportunities, security.
TODAY ->(CO2 - ENVIRONMENT)
SOURCES LIMITED NATUREPROTECTING VS. WASTING
SOCIAL RESPONSIBILITY EVOLUTION OF COMPANIES DURING THE TIME
Environment protection.
Throughout the ages, every single society has adapted to its environment for survivability and prosperity. There exists a healthy consideration (and respect) for the total environment (people, animals, resources...)
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CORPORATE SUSTAINABILITYCORPORATE SUSTAINABILITY
The early 20th century – Corporate Social
Responsibility beginning.
1950 – Corporate Social Responsiveness: solving problems need
1980 – STAKEHOLDER theory
2000 – Corporate Social Performances 2000 – Corporate Sustainability
1990 – Rio's Conference.
1980 – World Conservation Strategy1970 – Environment debate
Social and environmental problems matching.
• TRIPLE BOTTOM LINE
• STAKEHOLDER ORIENTED ISSUE MANAGEMENT
The last 20 years, the issues of Corporate Social Responsibility (CSR) and Environmental issues have converged and joined.
SOCIETY AND COMPANYSOCIETY AND COMPANY
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CORPORATE SUSTAINABILITYCORPORATE SUSTAINABILITYTRIPLE BOTTOM LINETRIPLE BOTTOM LINE
ECONOMICAL RESPONSIBILITY
LEGAL RESPONSIBILITY
ETHICAL RESPONSIBILITY
PHILANTHROPIC RESPONSIBILITY
EXPECTED
REQUIRED
REQUIRED
DESIDEREDInteraction between Business and Society cause a series of responsibility that we can sum up in this way, using a famous definition:
The “official” definition of CSR was given by the European Community in 2001, thanks to the growing interest in this problem:“a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis. Being socially responsible means not only fulfilling legal expectations, but also going beyond compliance and investing more into human capital, the environment and the relations with stakeholders”
SOCIAL AND ENVIRONMENTAL SUBJECTS THAT CAN NOT BE DISJOINED FROM BUSINESS.
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CORPORATE SUSTAINABILITYCORPORATE SUSTAINABILITYTRIPLE BOTTOM LINETRIPLE BOTTOM LINE
TRIPLE BOTTOM LINE defines Corporate Sustainability as business goal, in that it is definable as an investment characterized by a risk and return. The International Financial Community has endorsed these concepts, leaving it to the individual company to determine their own risk and reward measures based upon their own assessment:
Triple Bottom Line is a more complete and more productive estimate than a business condition.
SUSTAINABLE INDEX (Down Jones, FTS4good)
SOCIAL RESPONSIBLE INVESTMENT (SRI)
CARBON DISCLOSURE PROJECT (CDP)
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CORPORATE SUSTAINABILITYCORPORATE SUSTAINABILITYBOOSTERBOOSTER
SOCIAL
ENVIRONMENTAL
TBL
Turning Corporate Social Responsibility into TBL, was enabled through merging of Environmental and Social concerns, which provided both of
these workstreams a terrific boost and a greater exposure.
ENVIRONMENTAL problems strike EVERYBODY.
Unlike mere Social problems that usually strike “the others”, “the poor ones” and “the unfortunate”, and can be traced to the actions or in-actions of Corporations which value the company reputation
Environmental issues strike all market segments that could result in a company crisis. As risk averse decision makers, the Environment
is becoming a major force in company risk profiles.
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CORPORATE SUSTAINABILITYCORPORATE SUSTAINABILITYSET ROUTESET ROUTE
BUSINESS ACTIVITY
SOCIAL CONSENT MARKET RULES AND
CONSTRAINTS
CORPORATESUSTAINABILITY
A company has the important social duty to mitigate its imminent environmental risk, according to the company culture and responsibility.
Global warming is upon us, whatever the reason is and whatever the solution to resolve it, just like the (more or less effective) connected projects, based on a “Carbon Free” philosophy.
A leading company must be at the forefront of change, responsible for its decisions, both in terms of market and of social approval.
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CORPORATE SUSTAINABILITYCORPORATE SUSTAINABILITY
Politicians standing for present establishment
Present ruling business class
Mistrusting the new
Holding out against changes
Increasing among people of environmental and social awareness
and responsibility
Worsening of the environmental situation and increased pressure to
correct the problem
Expecting new political and business powers to replace the “old ones”
New business opportunities given by technological development and
new backgrounds
DENYING THE OBVIOUS
DENYING THE OBVIOUS
MAKING LIGHT OF PROBLEMS
MAKING LIGHT OF PROBLEMS
DELAYING SOLUTIONSDELAYING
SOLUTIONSCRISIS
SITUATIONSOLVING
EMERGENCY… …
TODAY
SET ROUTESET ROUTE
EVOLUTION OF GLOBAL BUSINESS POLITICAL COMPARISON WITH RESPECT TO ENERGY AND ENVIRONMENT
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CORPORATE SUSTAINABILITYCORPORATE SUSTAINABILITY
It would be a great mistake to ignore this problem, the risk is I am resisting the pressure to act and by doing so relinquishing interesting visibility / market areas.
Every leader company in its business sector, has the right and obligation to establish a corporate position on the Environment and to set out an EFFECTIVE STRATEGY.
A strategy made by outward Communication (Clients, Providers, Opinion Leader etc), inward Communication (Employees, controlling and controlled companies etc) and Action (reduction of energy waste, generating energy from renewable sources; new less social impact products / services; territorial projects for a natural and sustainable development etc).
Return on Investment will be immediate and in the shortest amount of time it will be able to recoup the initial investment and to show positive effects on P&L.
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MACROSTRATEGYMACROSTRATEGY
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CORPORATE SUSTAINABILITYCORPORATE SUSTAINABILITYPAY-BACKPAY-BACK
SOCIAL
ENVIRONMENTAL
BUSINESSPURPOSE
STRATEGY
Reduction of supplying direct expenses.
Reduction of waste.
Reduction of risk - even from an insurance point of view.
Increase of company visibility.
New market areas to enter.
Competitive asset on competitors.
New assets from capital market.
Higher sense of belonging and motivation of personnel (increase of productivity and retention of talent).
Visibility in big corporations (personal gain for management).
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CORPORATECORPORATESUSTAINABILITYSUSTAINABILITY
BUSINESSRETURN
According to the current aged and outdated thinking, Corporate Sustainability is viewed as an exclusive course of action for large corporations - big companies “spending some money on social causes in return for good publicity”. Adding
BUSINESS PURPOSE and STRATEGY to these ACTIONS, creates a course for quick return on investment.
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CORPORATE SUSTAINABILITYCORPORATE SUSTAINABILITYLHYRA’S PROPOSALLHYRA’S PROPOSAL
CUSTOMERCUSTOMER
SUSTAINABILITY CONSULTINGSUSTAINABILITY CONSULTINGEV
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Sharing Knowledge of environmental and social problems, of global and depth of their consequences on the whole company frame-work.
Obtaining in the shortest time a "company assessment of risk and opportunities" concerning a specific business area. Testing if complete or not, with actions and /or corrective actions the company can implement to achieve desired results.
Obtaining an accurate and constant analysis on the area trend (in Italy and abroad) and about instances that could have some effects on company business.
Watching out on traditional business so as to avoid negative effects from surrounding context and to turn shared experience in one business to boost sales or margins in others.
Encouraging the creation of an internal company frame-work to use these abilities as a new strategic opportunity for a competitive advantage.
CHANGE MGTCHANGE MGT
KNOWLEDGE SHARINGKNOWLEDGE SHARING
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CORPORATE SUSTAINABILITYCORPORATE SUSTAINABILITY
LHYRA srlVia Mario Savini, 15
00136 [email protected]
We help you to understand why your current business models will not be effective and rewarded
in the same way in the future.Together we will find innovative solutions to flip it
upside down.
October 2007
Do not hesitate to address any question to [email protected]