Creating Sustainable Corporate Advantage through Corporate Environmental Responsibility Jose PD...
-
Upload
doris-griffin -
Category
Documents
-
view
212 -
download
0
Transcript of Creating Sustainable Corporate Advantage through Corporate Environmental Responsibility Jose PD...
![Page 1: Creating Sustainable Corporate Advantage through Corporate Environmental Responsibility Jose PD Corporate Policy and Strategy Area Indian Institute of.](https://reader030.fdocuments.in/reader030/viewer/2022032805/56649ee45503460f94bf284f/html5/thumbnails/1.jpg)
Creating Sustainable Corporate Creating Sustainable Corporate
Advantage Advantage through through
Corporate Environmental Corporate Environmental
ResponsibilityResponsibility
Jose PDCorporate Policy and Strategy Area
Indian Institute of Management Bangalore
jmjjmj
![Page 2: Creating Sustainable Corporate Advantage through Corporate Environmental Responsibility Jose PD Corporate Policy and Strategy Area Indian Institute of.](https://reader030.fdocuments.in/reader030/viewer/2022032805/56649ee45503460f94bf284f/html5/thumbnails/2.jpg)
Sustainability: Should Corporations Really Care ?
![Page 3: Creating Sustainable Corporate Advantage through Corporate Environmental Responsibility Jose PD Corporate Policy and Strategy Area Indian Institute of.](https://reader030.fdocuments.in/reader030/viewer/2022032805/56649ee45503460f94bf284f/html5/thumbnails/3.jpg)
Factors That Drive Reputation& Competitive Advantage
Business Practices
Employee Treatment
Community SupportSocial responsibility factor
Traditional purchase driver
Quality
Service
Price
Environment
Stability
Convenience
![Page 4: Creating Sustainable Corporate Advantage through Corporate Environmental Responsibility Jose PD Corporate Policy and Strategy Area Indian Institute of.](https://reader030.fdocuments.in/reader030/viewer/2022032805/56649ee45503460f94bf284f/html5/thumbnails/4.jpg)
Ford
• Recall Costs:
• Legal Costs*:
• Effects on
Sales:
• $1 billion
• $590 million
• 15%-20%
on Explorers
Firestone
• $390 million
• $360 million
• 40% Decrease
in Sept. & Oct.
*Legal costs: figures until end of 2000.
Source: University of Notre-Dame
![Page 5: Creating Sustainable Corporate Advantage through Corporate Environmental Responsibility Jose PD Corporate Policy and Strategy Area Indian Institute of.](https://reader030.fdocuments.in/reader030/viewer/2022032805/56649ee45503460f94bf284f/html5/thumbnails/5.jpg)
Bridgestone
FordFord
Source: University of Notre-Dame
![Page 6: Creating Sustainable Corporate Advantage through Corporate Environmental Responsibility Jose PD Corporate Policy and Strategy Area Indian Institute of.](https://reader030.fdocuments.in/reader030/viewer/2022032805/56649ee45503460f94bf284f/html5/thumbnails/6.jpg)
The European Contamination The European Contamination CrisisCrisis
The European Contamination The European Contamination CrisisCrisis
Recall cost Coca-Cola Enterprises an estimated $103 million dollars.
Source: University of Notre-Dame
![Page 7: Creating Sustainable Corporate Advantage through Corporate Environmental Responsibility Jose PD Corporate Policy and Strategy Area Indian Institute of.](https://reader030.fdocuments.in/reader030/viewer/2022032805/56649ee45503460f94bf284f/html5/thumbnails/7.jpg)
Source: University of Notre-Dame
![Page 8: Creating Sustainable Corporate Advantage through Corporate Environmental Responsibility Jose PD Corporate Policy and Strategy Area Indian Institute of.](https://reader030.fdocuments.in/reader030/viewer/2022032805/56649ee45503460f94bf284f/html5/thumbnails/8.jpg)
Royal Dutch Shell & Brent SparRoyal Dutch Shell & Brent SparRoyal Dutch Shell & Brent SparRoyal Dutch Shell & Brent Spar
Source: University of Notre-Dame
![Page 9: Creating Sustainable Corporate Advantage through Corporate Environmental Responsibility Jose PD Corporate Policy and Strategy Area Indian Institute of.](https://reader030.fdocuments.in/reader030/viewer/2022032805/56649ee45503460f94bf284f/html5/thumbnails/9.jpg)
McSpotlight.Org
![Page 10: Creating Sustainable Corporate Advantage through Corporate Environmental Responsibility Jose PD Corporate Policy and Strategy Area Indian Institute of.](https://reader030.fdocuments.in/reader030/viewer/2022032805/56649ee45503460f94bf284f/html5/thumbnails/10.jpg)
Tobacco Litigation & SettlementTobacco Litigation & Settlement
C o n f i d e n t i a l
![Page 11: Creating Sustainable Corporate Advantage through Corporate Environmental Responsibility Jose PD Corporate Policy and Strategy Area Indian Institute of.](https://reader030.fdocuments.in/reader030/viewer/2022032805/56649ee45503460f94bf284f/html5/thumbnails/11.jpg)
Cell Phones or Gorillas ?
Cell Phones or Gorillas ?
![Page 12: Creating Sustainable Corporate Advantage through Corporate Environmental Responsibility Jose PD Corporate Policy and Strategy Area Indian Institute of.](https://reader030.fdocuments.in/reader030/viewer/2022032805/56649ee45503460f94bf284f/html5/thumbnails/12.jpg)
Creating Creating Sustainable Sustainable Corporate Advantage …Corporate Advantage …Challenge #1Challenge #1
Using the Gorillas to sell the Cell Phones ?
![Page 13: Creating Sustainable Corporate Advantage through Corporate Environmental Responsibility Jose PD Corporate Policy and Strategy Area Indian Institute of.](https://reader030.fdocuments.in/reader030/viewer/2022032805/56649ee45503460f94bf284f/html5/thumbnails/13.jpg)
![Page 14: Creating Sustainable Corporate Advantage through Corporate Environmental Responsibility Jose PD Corporate Policy and Strategy Area Indian Institute of.](https://reader030.fdocuments.in/reader030/viewer/2022032805/56649ee45503460f94bf284f/html5/thumbnails/14.jpg)
Required Business Response
Environmental StewardshipEnvironmental StewardshipCorporate EnvironmentalismCorporate Environmentalism
(beyond compliance approaches)
Risk ManagementRisk Management(Evaluating Risk-Return Trade-
offs - perceived & Real)Market DevelopmentMarket Development
![Page 15: Creating Sustainable Corporate Advantage through Corporate Environmental Responsibility Jose PD Corporate Policy and Strategy Area Indian Institute of.](https://reader030.fdocuments.in/reader030/viewer/2022032805/56649ee45503460f94bf284f/html5/thumbnails/15.jpg)
Strategic Environmental Exposure
Strategic Environmental Exposure
ProductTechnologyRegulationsCustomers
Stakeholders
Relevant Ecological
Environment
Stakeholder Environment
alExposure
CorporateEnvtl.
Exposure/Risk
Source: Jose, 1996
![Page 16: Creating Sustainable Corporate Advantage through Corporate Environmental Responsibility Jose PD Corporate Policy and Strategy Area Indian Institute of.](https://reader030.fdocuments.in/reader030/viewer/2022032805/56649ee45503460f94bf284f/html5/thumbnails/16.jpg)
Transforming Risks to Competitive Advantages
Transforming Risks to Competitive Advantages
DuPont3MPatagoniaVolkswagonMonsanto
![Page 17: Creating Sustainable Corporate Advantage through Corporate Environmental Responsibility Jose PD Corporate Policy and Strategy Area Indian Institute of.](https://reader030.fdocuments.in/reader030/viewer/2022032805/56649ee45503460f94bf284f/html5/thumbnails/17.jpg)
Reducing the Footprint at DuPont
Electronic MaterialsAgriculture ProductsLycraAuto FinishesCorianTyvek
High EarningsHigh Cash FlowHigh R&D/Capital
PETNylon
Conoco
Invest & Grow
Sell & Redirect
Improve & RepositionSVA lb
Pounds of Materials Used
Source: Stuart Hart, 1999
Invest & Grow
![Page 18: Creating Sustainable Corporate Advantage through Corporate Environmental Responsibility Jose PD Corporate Policy and Strategy Area Indian Institute of.](https://reader030.fdocuments.in/reader030/viewer/2022032805/56649ee45503460f94bf284f/html5/thumbnails/18.jpg)
Mar
ket A
ttra
ctiv
enes
s
LO
HI
Environmental AttractivenessHI LO
1951-79
Agro-Chemicals
Ind. chemicals
Pharmaceuticals
Zinc Cells
Source: Jose, 1996
![Page 19: Creating Sustainable Corporate Advantage through Corporate Environmental Responsibility Jose PD Corporate Policy and Strategy Area Indian Institute of.](https://reader030.fdocuments.in/reader030/viewer/2022032805/56649ee45503460f94bf284f/html5/thumbnails/19.jpg)
Mar
ket A
ttra
ctiv
enes
s
LO
HI
Environmental AttractivenessHI LO
1980-95
Agro-Chemicals
Ind. chemicals
Bio-fertiliser
Zinc Cells
Seeds
Tissue cultureDrip irrigation
Source: Jose, 1996
![Page 20: Creating Sustainable Corporate Advantage through Corporate Environmental Responsibility Jose PD Corporate Policy and Strategy Area Indian Institute of.](https://reader030.fdocuments.in/reader030/viewer/2022032805/56649ee45503460f94bf284f/html5/thumbnails/20.jpg)
Mar
ket A
ttra
ctiv
enes
s
LO
HI
Environmental AttractivenessHI LO
2000 +Source: Jose, 1996
• Waste Management• Solar Energy• Afforestation• Land& Water Mgmt.
• Bio fertilizer
![Page 21: Creating Sustainable Corporate Advantage through Corporate Environmental Responsibility Jose PD Corporate Policy and Strategy Area Indian Institute of.](https://reader030.fdocuments.in/reader030/viewer/2022032805/56649ee45503460f94bf284f/html5/thumbnails/21.jpg)
Mar
ket A
ttra
ctiv
enes
s
LO
HI
Environmental AttractivenessHI LO
Source: Jose, 1996
![Page 22: Creating Sustainable Corporate Advantage through Corporate Environmental Responsibility Jose PD Corporate Policy and Strategy Area Indian Institute of.](https://reader030.fdocuments.in/reader030/viewer/2022032805/56649ee45503460f94bf284f/html5/thumbnails/22.jpg)
Environmental AttractivenessM
arke
t Att
ract
iven
ess
LO
HI
HI LO
• R&D, Innovation• Resource Substitution• Pollution Control
• P
rodu
ct D
iffe
r en t
i at i
o n•
Co s
t Re d
u cti
on• F
o cu s
Source: Jose, 1996
![Page 23: Creating Sustainable Corporate Advantage through Corporate Environmental Responsibility Jose PD Corporate Policy and Strategy Area Indian Institute of.](https://reader030.fdocuments.in/reader030/viewer/2022032805/56649ee45503460f94bf284f/html5/thumbnails/23.jpg)
Sustainability Approaches: Chemical Industry
Conoco DuPont Pioneer Hi-Bred Dow Dow-Elanco
Solutia Monsanto Multiple Acquisitions Ciba-Geigy Sandoz Novartis ICI Astrazeneca
Chemicals Hoechst Chemicals Rhoune-Poulenc Aventis
Today . HC Divestiture
Yesterday . HC Investments
Today . Life Science Invst.
Source: Stuart Hart, 1999
Novo Nordisk
![Page 24: Creating Sustainable Corporate Advantage through Corporate Environmental Responsibility Jose PD Corporate Policy and Strategy Area Indian Institute of.](https://reader030.fdocuments.in/reader030/viewer/2022032805/56649ee45503460f94bf284f/html5/thumbnails/24.jpg)
Creating Creating SustainableSustainable Corporate Advantage … Corporate Advantage …Challenge #2Challenge #2
Riding the Wave Vs
Changing the Trend-line?
![Page 25: Creating Sustainable Corporate Advantage through Corporate Environmental Responsibility Jose PD Corporate Policy and Strategy Area Indian Institute of.](https://reader030.fdocuments.in/reader030/viewer/2022032805/56649ee45503460f94bf284f/html5/thumbnails/25.jpg)
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
0 100 200 300 400 500 600 700 800
DEVELOPING COUNTRIES AVG.IndiaChina Thailand
WORLD AVERAGE
Mexico
Argentina
South KoreaTaiwan
Greece Portugal
Spain New Zealand
Italy
Australia
United KingdomFranceBelgium
NorwayDenmark
Germany
Canada
Japan
Switzerland
USA
GDP per Capita [US$]
Brazil
Sustainability Approaches for Automobiles ?
Ownership Density - Vehicles per 1000
MORE DEVELOPED COUNTRIESAVG.
Source: Dr. Ulrich Eichhorn (2001)
![Page 26: Creating Sustainable Corporate Advantage through Corporate Environmental Responsibility Jose PD Corporate Policy and Strategy Area Indian Institute of.](https://reader030.fdocuments.in/reader030/viewer/2022032805/56649ee45503460f94bf284f/html5/thumbnails/26.jpg)
General Motor’s VisionGeneral Motor’s Vision
John F. Smith, Jr.Chairman, General Motors Corporation
January 8, 1997
““No car company will be able to thrive in No car company will be able to thrive in the future with 100% dependency on the future with 100% dependency on
internal combustion engines. But there internal combustion engines. But there is still no single alternative to currentis still no single alternative to current
technology. All of the technologies are technology. All of the technologies are still evolving. So our still evolving. So our strategystrategy is to develop is to develop
a portfolio of options.”a portfolio of options.”
![Page 27: Creating Sustainable Corporate Advantage through Corporate Environmental Responsibility Jose PD Corporate Policy and Strategy Area Indian Institute of.](https://reader030.fdocuments.in/reader030/viewer/2022032805/56649ee45503460f94bf284f/html5/thumbnails/27.jpg)
Riding vs. Bucking the TrendsRiding vs. Bucking the Trends
Popln in MillionsTier 175-100
Tier 2-31500-1750
Tier 4
4000
Purchasing Power
> $2,000
> $ 1,500
> $1,500-2,000
Source: Prahlad & Hart, 1999
![Page 28: Creating Sustainable Corporate Advantage through Corporate Environmental Responsibility Jose PD Corporate Policy and Strategy Area Indian Institute of.](https://reader030.fdocuments.in/reader030/viewer/2022032805/56649ee45503460f94bf284f/html5/thumbnails/28.jpg)
Environmental Challenges Facing Indian IndustryEnvironmental Challenges Facing Indian Industry
Envt. not seen as a source Comp. Advantage
Trade-off Between Cost & Competitiveness Market Barriers Market Failure: Policy Distortions &
Subsidies Organizational Barriers Dominance of Small & Medium Scale
Sectors
![Page 29: Creating Sustainable Corporate Advantage through Corporate Environmental Responsibility Jose PD Corporate Policy and Strategy Area Indian Institute of.](https://reader030.fdocuments.in/reader030/viewer/2022032805/56649ee45503460f94bf284f/html5/thumbnails/29.jpg)
Creating Creating SustainableSustainable Corporate Advantage … Corporate Advantage …Challenge # 3Challenge # 3
Managing to Create Value:For ALL
![Page 30: Creating Sustainable Corporate Advantage through Corporate Environmental Responsibility Jose PD Corporate Policy and Strategy Area Indian Institute of.](https://reader030.fdocuments.in/reader030/viewer/2022032805/56649ee45503460f94bf284f/html5/thumbnails/30.jpg)
The Social ContractSociety’s Expectations of Business Performance
So
cial
Per
form
ance
: E
xpec
ted
an
d A
ctu
al
1960s 1990sTime
Social Social ProblemProblem
Business’s Actual Social Performance
Social Social ProblemProblem
![Page 31: Creating Sustainable Corporate Advantage through Corporate Environmental Responsibility Jose PD Corporate Policy and Strategy Area Indian Institute of.](https://reader030.fdocuments.in/reader030/viewer/2022032805/56649ee45503460f94bf284f/html5/thumbnails/31.jpg)
Stakeholder MapsStakeholder Maps
FIRM
Local Communities
Special Interest Groups
Flora & fauna
Future Generations
Politicians
Environmentalists
Employees
Government
Media
Competitors Industry
Traders
![Page 32: Creating Sustainable Corporate Advantage through Corporate Environmental Responsibility Jose PD Corporate Policy and Strategy Area Indian Institute of.](https://reader030.fdocuments.in/reader030/viewer/2022032805/56649ee45503460f94bf284f/html5/thumbnails/32.jpg)
What’s right works. It really does. Cynics will tell you it doesn’t, but they’re wrong. Over the long term what’s right works
James Burke
![Page 33: Creating Sustainable Corporate Advantage through Corporate Environmental Responsibility Jose PD Corporate Policy and Strategy Area Indian Institute of.](https://reader030.fdocuments.in/reader030/viewer/2022032805/56649ee45503460f94bf284f/html5/thumbnails/33.jpg)
Creating Creating SustainableSustainable Corporate Advantage … Corporate Advantage …Challenge # 4Challenge # 4
The Challenge of the Triple Bottom Line
EconomicEconomicPerformancePerformance
EnvironmentalEnvironmentalPerformancePerformance
SocialSocialPerformancePerformance
Source: SustainAbility
![Page 34: Creating Sustainable Corporate Advantage through Corporate Environmental Responsibility Jose PD Corporate Policy and Strategy Area Indian Institute of.](https://reader030.fdocuments.in/reader030/viewer/2022032805/56649ee45503460f94bf284f/html5/thumbnails/34.jpg)
The Sustainability ChallengeThe Sustainability Challenge
Human &Physical Capital
Envtl.Assets
Envtl. Mainten.InvestmentInvestment
Consumption
Economic System Ecological Support System
+
+ + +
+
+
Residuals
Economic Output
_+
Source: Klaus North, 1996
![Page 35: Creating Sustainable Corporate Advantage through Corporate Environmental Responsibility Jose PD Corporate Policy and Strategy Area Indian Institute of.](https://reader030.fdocuments.in/reader030/viewer/2022032805/56649ee45503460f94bf284f/html5/thumbnails/35.jpg)