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© SHRM Foundation 2011

Discussion GuideRead This First!Thank you for using the SHRM Foundation DVD, “Doing Well by Doing Good: Global Sustainability at Aditya Birla Group.” This document outlines the suggested use and explanation of the supplemental materials created for use with the video. Please read it carefully before proceeding.

Our goal is to provide you, the facilitator, with materials that will allow you to create a customized presentation and discussion. For this reason, we have included this Discussion Guide document. In addition, discussion question slides from the PowerPoint can be deleted to customize your presentation and discussion.

Suggested Program Agenda 1. Distribute the Discussion Questions to participants, and suggest that they watch the DVD with the

questions in mind. 2. Play the DVD. 3. Use the PowerPoint introductory slides (Slides 2 through 8) to discuss the DVD, the history of the

Aditya Birla Group and the five important lessons presented at the end of the DVD. 4. Distribute the Participant Worksheets to generate individual thought and discussion. (Alternatively,

these worksheets can also be used to assign group activities and continue with Step 5 after the activity, or they can be used after Step 5 to assess participant understanding. Please see the Participant Worksheet section below for more information.)

5. Use the PowerPoint question slides (Slides 9 through 33) to discuss each individual primary discussion question. (The Question Guide provides the facilitator with all the necessary information and answers to lead a comprehensive discussion.)

6. Distribute the Participant Worksheet Answer Keys to participants.

Supplemental Materials Descriptions Aditya Birla Group Overview The Aditya Birla Group Overview can be used either as a facilitator discussion guide or as a participant handout. It includes a general outline of important facts about the company, as well as a comprehensive overview of the global sustainability efforts of the Aditya Birla Group.

20-Minute Video Synopsis The Video Synopsis can be used either as a facilitator discussion guide or as a participant handout. It presents a chronological summary of the important segments of the video, highlighting the speakers and critical points in each section.

SHRM Overview The SHRM Overview should be used as a participant handout. Divided into two sections, it gives a detailed description of both SHRM and the SHRM Foundation.

HR Certification Institute (HRCI) Summary The HR Certification Institute summary should be used as a participant handout. It discusses the levels of professional HR certification available through the Institute, with brief descriptions of each.


Please consider the following questions as you watch the SHRM Foundation DVD, “Doing Well by Doing Good: Global Sustainability at Aditya Birla Group.” Your facilitator may ask you to answer these questions in discussion or activity format at the completion of the DVD.

What aspects of a healthy society can be influenced by corporations?

What competitive advantages could be realized as a result of engaging in the local community and global sustainability?

In what ways can a company put more back into the world than it consumes?

Why is long-term success in business dependent on a healthy society?

How would you define compassionate capitalism?

Why should firms consider undertaking sustainability initiative(s) that intersect with the strategy of their businesses?

What are some specific issues of global sustainability that a company might address?

How does a company’s attention to global sustainability attract talented human capital?

Why is it critical to have top-level executives buy in to global sustainability efforts?

In what ways can an organization measure its impact in terms of sustainability?

Discussion Questions


OPERATING INFORMATION• Headquartered in Mumbai, India• $35 billion in annual revenue• 131,000 employees worldwide• Operates in 33 countries• Named one of the top six places for leaders to work in the Asia-Pacific region• 60% of revenues come from overseas operations

GLOBAL BUSINESSES • A metals powerhouse, among the world’s most cost-efficient aluminum and copper

producers. Hindalco-Novelis is the largest aluminum rolling company. It is one of the three biggest producers of primary aluminum in Asia, with the largest single-location copper smelter.

• No. 1 in viscose staple fiber• The largest producer of carbon black• The fourth-largest producer of insulators• The fifth-largest producer of acrylic fiber• Among the top 10 cement producers• Among the most energy-efficient fertilizer plants

INDIA-SPECIFIC INDUSTRIES• A top fashion (branded apparel) and lifestyle player• The second-largest producer of viscose filament yarn• The largest producer in the chlor-alkali sector• Among the top three mobile telephony companies• A leading player in life insurance and asset management• Among the top two supermarket chains in the retail business• Among the top 10 business process outsourcing (BPO) companies

BEYOND BUSINESS• Works in 3,000 villages.• Reaches out to seven million people, annually through the Aditya Birla Centre for

Community Initiatives and Rural Development, which focuses on health care, educa-tion, sustainable livelihood, infrastructure and espousing social reform.

• Runs 42 schools, which provide quality education to 45,000 children. Of these, over 18,000 children receive free education.

• Its 18 hospitals tend to more than a million villagers.• In line with its commitment to sustainable development, has partnered with Colum-

bia University in establishing the Columbia Global Center’s Earth Institute in Mum-bai.

• To embed corporate social responsibility (CSR) as a way of life in organisations, has set up the Federation of Indian Chambers of Commerce and Industry (FICCI) – Aditya Birla CSR Centre for Excellence, in Delhi.

Aditya Birla Group Overview


Narrated and presented by Wayne F. Cascio, Ph.D., SHRM Foundation’s ninth video examines the global sustainability efforts of the Aditya Birla Group. Filmed on location at Aditya Birla headquarters in Mumbai, India, and featuring interviews with Aditya Birla officers, managers and employees, this film presents several com-pelling methods for integrating sustainability and business strategy.

VIDEO INTRODUCTIONWayne Cascio, Professor, University of Colorado DenverCascio describes the interdependence that businesses and societies have on each other. He explains that in order for a healthy society to exist, healthy, profitable businesses must also exist.

A BRIEF SNAPSHOT OF THE ADITYA BIRLA GROUPWayne Cascio, Professor, University of Colorado Denver 1:00 - Global businesses 2:05 - India-specific businesses

Professor Cascio describes the businesses both local to India and globally that the Aditya Birla Group operates.

COMMUNITY INVOLVEMENT Wayne Cascio, Professor, University of Colorado Denver Mrs. Rajashree Birla, Chairperson, Aditya Birla Centre for Community Initiatives and Rural Development Dr. Pragnya Ram, Group Executive President, Corporate Communications & CSR 2:26 - The Aditya Birla Centre for Community Initiatives and Rural Development 3:00 - History of the Centre 3:25 - Giving back to the community The executives explain the history of the Aditya Birla Centre for Community Initiatives and Rural Development, including how and why it was formed.

DEFINING GLOBAL SUSTAINABILITYDr. Pragnya Ram, Group Executive President, Corporate Communications & CSR Dr. Santrup Misra, CEO, Carbon Black Business Director, Group HR & Director 3:54 - Responsible behavior 4:17 - The mutual benefit of healthy societies and healthy businesses 4:25 - Compassionate capitalism 5:15 - Select which issues to address The executives explain how they view global sustainability and why it’s important for business to contribute to protecting the health of society.

20-Minute Video Synopsis

Video Overview


VISION AND FOCUSMrs. Rajashree Birla, Chairperson, Aditya Birla Centre for Community Initiatives and Rural Development D. K. Kohly, Chief Officer, Operations Hindalco Industries Limited Dr. Pragnya Ram, Group Executive President, Corporate Communications & CSR 5:35 - Areas of focus 5:52 - Helping communities help themselves 6:20 - Working with nongovernmental organizations (NGOs) and others to address large issues

Mrs. Birla talks about the areas on which the Centre focuses. D. K. Kohly discusses how the Cen-tre helps locals address issues that are caused by their own behaviors, and Dr. Ram discusses the need for involvement from NGOs and other organizations in order to address larger issues.

SUSTAINABILITY AND BUSINESS STRATEGYWayne Cascio, Professor, University of Colorado DenverDr. Santrup Misra, CEO, Carbon Black Business Director, Group HR & Director 7:00 - Be an effective steward of the environment 7:10 - Find a way to connect sustainability to strategy 7:40 - Definition of global sustainability 8:10 - Sustainability in action

Dr. Misra discusses the importance of tying global sustainability efforts to the business strategy and gives an example of Aditya Birla’s sustainability efforts, and Professor Cascio defines issues that affect the global environment.

SUSTAINABILITY OVER THE LONG TERMMr. Rajasekar, Aditya Birla Group Cement Business D. K. Kohly, Chief Officer, Operations Hindalco Industries LimitedWayne Cascio, Professor, University of Colorado Denver 9:05 - Conservation of raw materials 9:25 - The five “R’s” of sustainability 9:50 - Evaluate the initiative for reasons other than cost savings 10:00 - Bank interest in borrower’s sustainability efforts

Mr. Rajasekar discusses the important of conservation. Mr. Kohly explains the five “R’s” of sustainability and the need to assess sustainability for reasons other than cost savings. Profes-sor Cascio explains the reasons a bank would be more inclined to loan to businesses that have a sustainable future.

SUSTAINABILITY AND BUSINESS STRATEGYD. K. Kohly, Chief Officer, Operations Hindalco Industries Limited 10:20 - Sustainability should not affect profitability 10:42 - Other forms of return on investment

The executives explain that sustainability efforts linked directly to the business strategy should have a positive impact on profitability. They also discuss the need for returns on investment that come in forms other than financial reward.


(Continued)


CORPORATE BENEFITS OF SUSTAINABILITYMrs. Rajashree Birla, Chairperson, Aditya Birla Centre for Community Initiatives and Rural Development Mr. Rajasekar, Aditya Birla Group Cement Business Dr. Pragnya Ram, Group Executive President, Corporate Communications & CSR D. K. Kohly, Chief Officer, Operations Hindalco Industries Limited 11:30 - Corporate goodwill 12:00 - Transparency and environmental protection 12:20 - Recruiting new talent 12:40 - Employee health and business continuity 13:30 - Customer trust and satisfaction

The executives discuss the benefits of sustainability, including general goodwill, environmental protection, recruiting new talent that values sustainable practices, employee health and continu-ity, and overall customer satisfaction and trust.

ROLE OF HUMAN RESOURCES IN SUSTAINABILITYDr. Santrup Misra, CEO, Carbon Black Business Director, Group HR & Director 13:45 - Setting the example 14:00 - Recruiting like-minded talent 14:50 - Creating the system to practice sustainability

Dr. Misra discusses the key roles of human resources in a company’s sustainability efforts.

WHERE TO BEGINDr. Pragnya Ram, Group Executive President, Corporate Communications & CSRDr. Santrup Misra, CEO, Carbon Black Business Director, Group HR & Director 15:20 - Top management commitment 16:12 - Ingrained in the company’s “DNA” The executives discuss the need for top-level management’s involvement in and commitment to sustainability and the need to build the efforts into the “DNA” of the company.

ADVICE TO FUTURE LEADERSMr. Rajasekar, Aditya Birla Group Cement Business Dr. Pragnya Ram, Group Executive President, Corporate Communications & CSR 17:48 - Commit yourself to sustainability 18:15 - Give back to the community

The executives discuss the need for future leaders to commit to sustainability and to give back to the community.

FIVE LESSONS IN GLOBAL SUSTAINABILITYWayne Cascio, Professor, University of Colorado Denver 18:50 - The five lessons

Professor Cascio explains the five key lessons in global sustainability that are covered in this case study.


(Continued)


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ADDITIONAL RESOURCES

“We feel very blessed because we were born into good family, we have good education, we have good values, but at the end of the day we say that birth is so much a matter of accident. We feel we have to show our thanksgiving by giving back to communities and by lifting them up.”Dr. Pragnya Ram

Group Executive President, Corporate Communications & CSR

QUESTION GUIDE

According to the Experts...

Business at Its Best: Driving Sustainable Value Creationwww.corporatephilanthropy.org/download/pdfs/resources/Business_at_its_best.pdf

What aspects of a healthy society can be influenced by

corporations?

Education and health careA corporation can contribute to improving educational opportunities within the communities in which it operates by getting involved in education. By assisting and, in some cases, creating schools for the underserved, corporations can have a significant and lasting impact on society. Some opportunities that a corporation might consider addressing include early-childhood education, primary and secondary education, and collegiate and postgraduate studies, as well as vocational and technical training.

Health care presents another opportunity for corporations to contribute to society. In most developed countries, corporations can differentiate their local talent-recruitment efforts by offering increased levels of health insurance. In countries that are developing, corporations might consider providing basic health care services through self-run clinics, coupled with partially or fully subsidized access to advanced medical facilities.

Equal employment opportunity and job creationBasic human rights and equality can largely be affected by the actions of corporations that operate in a particular community. Corporations that offer fair and equal employment opportunities set a standard that influences other businesses, organizations and governmental bodies.

Job creation is a key element to developing and maintaining a strong economy. Research suggests that healthy societies depend on healthy economies. Companies that create jobs in a particular community serve to elevate the economy and thereby the health of the general population.

Efficient use of natural resourcesIn all areas of the world, conservation of natural resources has become a critical element of the long-term sustainability of society. A corporation that focuses on minimizing its impact on the local environment is essentially making an investment in the long-term viability of both the community and its supply-chain–the resources it might be extracting from the locale.

Additional QuestionsList some examples of how the Aditya Birla Group is improving education and health care in the communities in which it operates.The Aditya Birla Centre for Community Initiatives and Rural Development works in 3,000 villages and reaches 7 million people annually through its initiatives in health care, education, sustainable livelihood, infrastructure and social reform. It operates 42 schools that provide quality education to 45,000 children. Of these, more than 18,000 receive free education. Its 18 hospitals provide medical care to more than a million villagers.

Discuss how a corporation’s employment standards might influence other businesses and organizations in the community.By offering better employment packages than the competition, a corporation can effectively force its competitors to improve their employee compensation in order to remain viable contenders for talent. Better wages, superior health care and other quality-of-life-related benefits are key reasons an employee might consider switching employers. Businesses that experience an increase in employee attrition will be faced with the high costs of employee turnover, including recruitment, placement, training and loss-of-productivity expenses.

How might inefficient use of natural resources affect a community?A community is only as sustainable as the natural resources that exist in the area. Inefficient uses of natural resources will ultimately deplete a community by producing needless waste, by diverting usable materials from other businesses and groups, and by increasing the use rate of the resources, thereby limiting the life expectancy of the company and its employment opportunities for members of the community.



“If you see any of our advertisements on television, you will [see that our] image of social responsibility is something like a brand, a very valuable brand image, which gives us an edge in recruitment, an edge in acquisitions, and an edge in many things.”D. K. Kohly,

Chief Officer, Operations Hindalco Industries Limited

QUESTION GUIDE


Sustainable Use of Natural Resourceswww.unep.ch/etb/publications/Indonesia.pdf

The Sustainable Livelihoods Approachwww.ifad.org/sla/index.htm

What competitive advantages could be realized as a result of

engaging in the local community and global sustainability?

Healthy and educated workforceBy contributing to the improvement of health conditions and educational opportunities in a community, a corporation will have a stronger talent pool from which to recruit employees. A more educated workforce tends to be more innovative, which helps the company outperform its competition.

Healthy employees also use less sick leave and have reduced levels of absenteeism, contributing to increased productivity and decreased HR-related expenses.

Cost savings through efficiencyCompanies can minimize supply and production costs by efficiently using natural resources. Increased efficiencies can provide a competitive advantage by boosting productivity, by reducing regulatory taxes on emissions and pollutants, and by preventing shortages of inputs derived from overutilized natural resources.

Long-term availability of source materialsMost natural resources are limited in quantity and availability; thus, it is important to operate in a way that seeks to use these resources at a rate congruent with what can be replenished through natural processes. By operating more efficiently than the competition, a company can generate a strategic advantage by ensuring longer-term availability of supply-chain inputs.

Additional QuestionsIn what ways have the Aditya Birla Group’s health care initiatives created a competitive advantage?In 2010, India was in the grip of dengue fever, but there were no cases of the virus among employees of the Aditya Birla Group. The company’s on-staff medical team took a proactive approach to prevent the spread of the virus in order to protect both the employees’ health and the company’s productivity. The company believes that it prevented a very costly increase in sick-leave use and absenteeism.

Define sustainable livelihood.The concept of sustainable livelihood revolves around poverty eradication. The sustainable livelihood concept includes provisions for eliminating low income, vulnerability and social exclusion. It recognizes that more attention must be paid to the various factors and processes that either constrain or enhance poor people’s ability to make a living in an economically, ecologically and socially sustainable manner. A livelihood is sustainable when it can cope with and recover from stress and shocks, maintain or enhance its capabilities and assets, provide for the next generation, and contribute to other livelihoods in both the short and the long term.

Discuss some examples of local community initiatives that have an impact on global sustainability.Community initiatives that promote recycling, reusing existing goods, minimizing water use, eliminating air pollution and reducing solid waste all contribute to the improvement of global sustainability. Often, the resolution to large global issues starts with local initiatives that spread to other communities, eventually forming a globally collaborative effort to address the issues.



“You need to understand the local communities, local environmental concerns, and ensure that they are taken care of before making capital your only concern.”

Dr. Rakesh JainManaging Director, Aditya Birla Nuvo Ltd. Directory, Group ID

QUESTION GUIDE


Benefits of Sustainable Operationshttp://uncw.edu/stuaff/buildingservices/CLSustainability-Benefits.html

In what ways can a company put more back

into the world than it consumes?

Community initiatives and rural developmentReturning value to the community can be a simple process of ensuring that a company seeks to improve the living and working conditions of the communities in which it operates. A company should actively participate in community improvement projects that address issues specific local issues. Companies should take an active role in protecting and improving the social fabric of a community.

In rural communities, a company might seek to undertake initiatives in health care, education, sustainable livelihood, infrastructure improvement and social reform in order to offset the impact of commercial operations in the area.

To ensure proportionate reinvestment in communities affected by a company’s operations, a company might consider devising a formula to estimate the quantity of resources that should be reinfused in the community, based on the amount of value generated from resources that the company extracts.

Sustainable operations and environmental rehabilitationBy working to maximize efficiencies and by focusing on long-term sustainability of its operations, a company offers economic stability to its local communities. Economic stability provides a level of security that helps foster a community’s continued progressive development. In areas negatively affected by operations, a company should consider conducting environmental rehabilitation projects to expedite restoration of local ecosystems.

Recycling, reusing, reducing and repairingOne way to ensure balance in the world is to extract full use out of products and materials. Companies should design and build products that can be repaired rather than replaced. Post-consumer recycling, production-waste reduction and reusability of products and components should be key elements of a business’s efficiency considerations.

Additional Questions What are some of the community initiatives of the Aditya Birla Group?The Aditya Birla Centre for Community Initiatives and Rural Development works in 3,000 villages and focuses on education, health care, sustainable livelihood, social causes and infrastructure improvement.

Why are sustainable operations important for communities?Sustainability operations are about planning and carrying out day-to-day work with full consideration of the effect of environmental factors on long-term goals. Such considerations provide for the protection of the environment as well as for long-term job creation and sustainability. Because sustainability is directly correlated to efficiency, these efforts typically allow a company to provide higher wages, thus ultimately improving the quality of life within a community.

List other ways a company could promote recycling, reusing, reducing and repair.Paper, electronics and plastics recycling programs are a common way for companies to encourage employees to reduce solid waste. Because electronics recycling is typically an expensive proposition for individuals, many U.S. companies have responded by conducting used equipment collection drives to consolidate the cost and improve solid-waste diversion. Reusing and repairing equipment and supplies has also become a staple of long-term viability and cost reduction. Efforts range from ridding cafeterias of disposable containers and plastic utensils to repairing manufacturing equipment and extending the life of office furniture and computer equipment.


QUESTION GUIDE

Why is long-term success in business dependent on a

healthy society?

Society is your customerEvery customer, either directly or indirectly, is a member of a community and lives in a society affected by business. Realizing that a healthy society is a key factor for driving demand and sustainable growth is vital to long-term success.

The best-case scenario for a company that operates in a declining or subpar society would be to maintain demand for a finite period. As societal health deteriorates, growing revenue, profits and productivity, as well as securing inventory and focusing on efficiencies, will become more difficult.

Society is your source of talentIn addition to being the source of customers, society is also the source of talent. A healthy society tends to provide a talent pool that is more prepared to be productive.

A healthy society can drive down the cost of human resource expenses by minimizing health-related absenteeism and associated replacement costs, by reducing the cost of benefits for basic health care and education, and by controlling costs related to recruitment and retention of talent.

Healthy societies have fewer issuesSocieties that have civil and political stability and advanced safety nets for health care, socioeconomic issues and education create optimal environments for business operations. Healthy societies allow businesses to focus on their missions without distractions that might otherwise interrupt productivity.

Even in healthy societies there are issues that need to be addressed; however, they are typically more clearly defined and therefore easier to solve. In healthy societies, addressing minor issues can have a lasting impact on the community. Healthy societies make it easier for businesses of all sizes to effect change by selecting issues that are in scale with the size of the company.

Additional QuestionsHow has the Aditya Birla Group invested in the long-term health of local communities?The Aditya Birla Group is working to improve the education level of the people in the areas where it operates. It spends millions of dollars to improve the health care opportunities and water treatment facilities. It also teaches locals how to conduct sustainable agriculture through a technique called multicropping, which works with the natural cycles of the environment to raise a variety of plant species on a given swath of land.

What human resource expenses can be minimized by operating in a healthy society?Healthy societies provide certain safety nets and social services that help minimize human resource expenses, including health care, socioeconomic welfare, education and long-term retirement planning (such as the U.S. Social Security system). These services help lower employee absenteeism and turnover by reducing the incidents of personal and family-related illnesses and emergencies. Employee recruitment and training expenses are minimized in societies that invest in education, and productivity and engagement increase as a result of an employee’s availability to work.

What are some operational benefits that healthy societies afford to companies?Healthy societies tend to have more educated populations from which a company can recruit talent. Employees who come into a company with advanced education are more likely to help the company increase innovation and productivity.



Business Unusual: Corporate Responsibility in a 2.0 Worldhttp://onlinelibrary.wiley.com/doi/10.1111/j.1467-8594.2011.00387.x/abstract

“Business exists because of society. We sell to society, so without society industry does not exist at all.”

Mr. RajasekarAditya Birla Group Cement Business



“You cannot focus only on your business; you must also understand the social fabric.”

QUESTION GUIDE


Can Compassionate Capitalists Really Win?http://management.fortune.cnn.com/2011/03/30/can-compassionate-capitalists-really-win


Capital should not be your only concernBusiness should be driven by a purpose greater than profit. There has to be a reason for a business to exist. For some, the purpose of the company is to provide stable employment regardless of external economic conditions. For others, the purpose might be to provide stakeholders with a platform to effect positive social change.

A recent study conducted by the Conscious Capitalism Institute examined two major U.S. corporations–REI and The Container Store–both of which committed not to lay off employees during the economic downturn. In both cases, the companies’ loyalty and concern for employees and suppliers resulted in revenues and profits higher than their industry counterparts.

Avoid exploitationA company should actively encourage all stakeholders to operate with a sense of higher purpose and to recognize that their individual interests are connected to each other’s success. Companies should work to promote a comprehensive no-exploitation policy at all levels of the business to ensure that everyone has an equal opportunity to benefit. This policy should cover the exploitation of raw materials, the global environment and fellow employees.

Collective enrichmentCompassionate capitalism requires leadership that is driven to uphold the collective purpose of an organization and less drawn to personal power or individual wealth. Executives need to create an organizational culture that embodies trust, caring, compassion and authenticity.

Additional QuestionsHow has the Aditya Birla Group exemplified compassionate capitalism?The Aditya Birla Group works to understand the local communities and their environmental concerns. It works to ensure these issues are addressed before it seeks to profit from the area. The Aditya Birla Group works to understand its impact on the local, regional, national and international social fabric in order to improve living and working conditions for all its stakeholders.

What techniques can be employed to create and maintain a higher sense of purpose?A higher sense of purpose involves working for a company for a reason that supersedes profit-making and productivity. Companies can create incentive programs that encourage employees to volunteer in their community, to help provide care for sick or needy co-workers and to profit from increases in business. Profit-sharing and rewarding innovation of efficiencies are great ways to encourage employees to invest their best efforts in the well-being of both the company and their colleagues.

How can an executive influence an organization’s culture?An attitude of service that starts at the top will trickle down to the very lowest employee. Executives who exemplify a commitment to the greater good will create an atmosphere and culture that promotes positive changes for the individual, as well as for the company and the community. Employees are more likely to buy in to and emulate a corporate philosophy if top-level executives actively display their commitment to the cause.

Dr. Rakesh JainManaging Director, Aditya Birla Nuvo Ltd. Directory, Group ID



“Somehow try to connect [sustainability] to the strategic aspects of your business strategy and organization, because then you are not creating a twin track approach that sustainability is one and business is another.”

Dr. Santrup Misra CEO, Carbon Black Business Director, Group HR & Director

QUESTION GUIDE


The Alliance for Global Sustainabilitywww.globalsustainability.org

The Sustainability Balanced Scorecard – Linking Sustainability Management to Business Strategywww.sustainabilitymanagement.net/public/04 The Sustainability Balanced Scorecard.pdf

Why should firms consider undertaking sustainability

initiative(s) that intersect with the strategy of their businesses?The natural (easy) fit

Connecting thesustainability efforts of an organization to the strategic aspects of its operations helps prevent duplicative and costly work. If an organization considers sustainability throughout its strategic development, it will inevitably benefit from reduced costs brought on by increased efficiencies and minimized waste.

When sustainability is not part of a business’s strategy, it can become a costly proposition that deters productivity. Such an effort could be seen as an unnecessary expense and ultimately get canceled.

Protect needed resourcesIt would behoove firms that deal with limited or constrained inputs to make sustainability one of their highest priorities. If a company experiences a period of time where resources are constrained, it might have to make drastic cuts to production, ultimately affecting the bottom line. Ensuring the conservation of strategic resources will help prevent potentially needless disruptions to productivity.

Improved public imageContributing to the long-term viability of a community and to the global environment is a key aspect of maintaining strong public relations. By conducting business in a socially and environmentally responsible way, employees, suppliers, partners and future employees are more likely to work with the company.

Doing good by society sets up a cyclical flow of benefits among the organization, the community in which it operates and its stakeholders.

Additional QuestionsGive some examples of how the Aditya Birla Group intersected its strategy with global sustainability.For the last couple of years, the Aditya Birla Group has tried to reduce chemical use for pesticides. It devised an organic, natural, plant-based pesticide and fertilizer that deeply cuts dependence on petroleum-based fertilizers and pesticides.

Aditya Birla Group’s cement division has worked to reduce the amount of waste produced by its processing plant while simultaneously working to conserve the material inputs.

In what ways would a company be affected by wasteful use of natural resources?Natural resources are typically limited in quantities. Wasteful use of these resources limits the long-term viability of a company and its productivity. In the short term, a company might incur increased expenses related to governmental regulations of the limited natural resources as well as to the disposal of waste associated with inefficient use.

Why are potential employees drawn to companies that are environmentally and socially responsible?Growing evidence suggests companies that act responsibly when it comes to the environment take better care of their employees and their communities. Talented people are drawn to organizations that are more likely to benefit their family and their community. Companies that exemplify good corporate citizenship and that act as caring stewards of the environment are more likely to attract like-minded talent.



QUESTION GUIDE

“Global sustainability refers to a company’s role in addressing issues that have a dramatic impact on the future of the planet. Issues like climate change, water shortages, infectious diseases, access to food and education, the reduction of extreme poverty, and disaster response and relief. ”

Dr. Wayne CascioProfessor, University of Colorado Denver


Fair Trade?www.worldcentric.org/conscious-living/actionstotake/fairtrade

Disaster Preparednesswww.sbaonline.sba.gov/services/disasterassistance/disasterpreparedness

What are some specific issues of global

sustainability that a company might address?

Climate change and water shortagesA company that produces carbon emissions or that uses potable water as a source for production should seek to minimize its impact on the environment by installing carbon filtering and water-reclamation devices. Modern advances in these technologies have shortened the return on investment periods for the equipment, making these expenses manageable for most companies.

Beyond water reclamation, companies should invest in water-saving restroom facilities, efficient landscape irrigation systems, and water capture and diversion systems to store and use rainfall.

Infectious disease and reduction of povertyCompanies can reduce the spread of infectious disease in a variety of cost-effective ways, including conducting employee (and family) immunization drives, offering self-run health care clinics operated by on-staff physicians and providing comprehensive health insurance.

To reduce poverty, companies should pay a livable wage to their employees. Wages should be viewed not only as expenses but also as investments in the well-being of the company’s human capital. Organizations should operate fair-trade agreements with suppliers to ensure that they are not simply shifting poverty further down the supply chain.

Disaster response and reliefWhen a disaster affects an area in which a company operates, the company should actively seek to be involved in a coordinated response to the destruction. It would be prudent for a company to include disaster recovery and relief for its operations, as well as for its employees, their families and the surrounding community as part of its operational contingency plans. Setting aside money to aid employees during the aftermath of a crisis goes a long way toward expediting the recovery of the business operations. Such an investment also sends a clear message about the organization’s concern for the well-being of its employees–an act that is sure to reduce employee turnover and increase loyalty.

Additional QuestionsHow did the Aditya Birla Group’s investment in health care systems help prevent a breakout of the dengue fever?The Aditya Birla Group built medical clinics in the communities in which it operates to provide health care and vaccinations to employees and their families. The medical staff took a proactive approach to preventing the breakout as a way to protect both the employees’ health and the immediate productivity of the company.

What is fair trade, and how does it help prevent poverty?Fair trade is a market-based social movement that aims to help producers in developing countries offer better trading conditions and promote sustainability. The concept advocates paying a higher price to producers as well as setting higher social and environmental standards. It primarily focuses on exports from developing countries to developed countries.

In what ways can a company prepare for catastrophic disasters?A company should create a disaster mitigation and recovery plan, including provisions to return productivity to normal levels, to rebuild and repair damaged facilities, and to help employees personally recover from the disaster. A company should stockpile operational, medical and life-sustaining (water and food) materials to help employees return to work as quickly as possible. The company should also establish a disaster recovery fund to pay for recovery efforts and purchase insurance to protect the capital assets of the business.


QUESTION GUIDE How does a company’s attention to global

sustainability attract talented human capital?The good corporate citizen

Companies can attract talented candidates by being good corporate citizens. The idea that a corporation pays its fair share of taxes, looks after the communities that it affects, takes care of and invests in its employees, and operates in a conservation-minded way is highly attractive to young, talented people looking to work for a company that shares their values. As younger populations become increasingly aware of the need for global sustainability, corporations that actively conduct sustainability efforts will have an advantage as they seek to attract new talent.

An opportunity to contributeCompanies that encourage employees to contribute to social and environmental causes tend to attract like-minded people. People who are interested in using their employer as a conduit to do well in the world are attracted to companies that encourage such behavior.

Employer-sanctioned opportunities to contribute to charities and participate in community outreach and improvement projects are very attractive benefits that can be used to set a company apart as it competes with other organizations to recruit new talent.

Caring for society implies decencyA company’s contributions to improvements within the community are often perceived as indicators of how it treats its own employees. Companies that care enough to ensure that communities they operate in are safe, healthy, unexploited and sustainable broadcast a clear signal that they understand the importance of maintaining healthy, symbiotic relationships with all stakeholders. Quite simply, a conscientious company attracts conscientious employees.

Additional QuestionsWhy is young talent attracted to the Aditya Birla Group?The Aditya Birla Group cites a growing interest in global sustainability among young people as a leading reason why it is able to attract talent. It believes that young people view the Group as one that cares for people, is not materialistic and has deep spiritual values.

How does the Aditya Birla Group use employer-sanctioned charitable activity to encourage employee loyalty?After seven years of working for the Aditya Birla Group, an employee is given three months off to work on any project of his or her choice if it is connected to sustainability. The incentive gives employees a long-term goal to stay with the company while ensuring that the volunteering project remains focused on improving the community, environment or society.

List some ways that a company might promote its global sustainability efforts to entice new talent. A company can produce other marketing efforts, such as a company website, highlighting its efforts to protect the environment, its employees and its long-term viability. Employees looking to begin a career track are drawn to organizations that are able to demonstrate a commitment to long-term sustainability of the business.


“We really like the work that we do for the underserved because they [applicants and employees] often ask what we do and they volunteer–this is how we attract talent and keep them with us.”

Mrs. Rajashree BirlaChairperson, Aditya Birla Centre for Community Initiatives and Rural Development


Corporate Social Responsibility: Three Key Approacheshttp://fisip.uajy.ac.id/wg-content/uploads/public/files/kuliah/genap1011/arum/hub_komunitas/CSR%20Three%20approaches.pdf


QUESTION GUIDE Why is it critical to have top-level executives buy in to global sustainability

efforts?Employee buy-inIn order to get complete buy-in from employees at all levels of an organization, top-level executives must declare global sustainability a priority for the company. Modeling responsible behavior from the top of an organization is the most effective way to ensure that everyone works toward the same goals. Top-level executives might also choose to tie employee compensation, including bonus payments and raises, to how well an employee uses sustainability efforts to create efficiency, save money and increase the productivity of the company.

The financial investmentThere can be costs associated with implementing global sustainability efforts that require approval from top-level management. In many cases, sustainability efforts require upfront investments and generate returns for years to come. Without the buy-in from senior executives, funding for the planning, development and execution of large-scale sustainability efforts could be difficult to obtain.

In most cases, top-level executives know the direction the company is heading and are better equipped to decide what sustainability efforts best align with the long-term strategy.

Long-term integration of the effortThe fortitude to continue onward and to remain dedicated to global sustainability during difficult economic conditions requires a strong commitment from top-level executives. Often, cost-cutting measures tend to take aim at activities that may be perceived as less important than core business operations. With top-level buy-in of sustainability efforts, decision makers will accept the idea that the company’s sustainability efforts are a key part of its competitive advantage.

Additional QuestionsHow do Aditya Birla Group’s top-level executives commit to global sustainability?The Aditya Birla Group formed the Centre for Community Initiatives and Rural Development and budgeted $15 million to operate a comprehensive program of corporate social responsibility. The Centre espouses the trusteeship concept of management, which suggests the wealth a company generates should be held in a trust for multiple stakeholders. This philosophy drives the Aditya Birla Group to invest part of its profits beyond business, for the larger good of society.

Are there any downsides to global sustainability efforts that are not tied to a business’s strategy?Running a global sustainability program that does not intersect with the core of a business exposes the company to unnecessary distractions from productivity, from increased expenses related to those activities and from difficulties drawing buy-in from stakeholders. Further, when an economic recession or downturn occurs, programs that are superfluous or that are not part of the core mission will be the first expenses to be cut.

How might an organization with limited resources finance large-scale sustainability efforts?If the effort is part of the business strategy, executives can issue bonds or take out bank loans to raise capital to finance the development of the project. Also, if the project creates an efficiency that might otherwise not exist, shareholders might be more willing to contribute to a fund-raising campaign to support the development of the effort. A more prudent option is to produce a long-term savings plan that allows a company to allocate funds over a period of time.


“What I would like to stress is that all this happens only if the top management is absolutely committed.”

Dr. Pragnya RamGroup Executive President, Corporate Communications & CSR


Management Education for Global Sustainabilitywww.amazon.com/Management-Education-Sustainability-Research-Development/dp/1607522349


QUESTION GUIDE In what ways can an organization measure its impact in terms of

sustainability?

Cost savings The easiest way to measure the impact of an organization’s sustainability efforts is to calculate the cost savings associated with the efficiencies of those efforts. If an organization closely ties its efforts to its business strategy, there will be, in all likelihood, a beneficial financial impact as a result. In some situations, sustainability efforts might best be measured in terms of the amount of raw materials and resources saved or of the number of staff hours trimmed, or by accounting for the reduction of electricity, water and other utilities used in the operation.

In companies that generate carbon emissions or other pollutants, sustainability efforts might be measured in terms of the financial savings derived from no longer being obligated to pay regulatory taxes or to conduct mandatory cleanup/restoration.

Availability of resourcesAside from cost savings, a company might measure the success of its sustainability efforts by calculating the decreased rate of source materials, energy and other natural resources being used. An increased rate of conservation of these resources should affect both the bottom line and the long-term viability of the company.

If a company relies on limited natural resources, it is extremely prudent to calculate the additional time that an operation can continue, given the organization’s conservation efforts.

Polling new talentAs previously discussed, global sustainability efforts are becoming more and more important for recruitment efforts. Ask potential and new employees if the company’s environmental and social responsibility played a role in their decision to join the organization. To understand another benefit of an organization’s global sustainability efforts, companies should calculate the conversion rate of interviews to new hires and the change in this metric since the initiation of sustainability efforts.

Additional QuestionsHow has the Aditya Birla Group measured the value of its global sustainability and community involvement efforts?The Aditya Birla Group pays particular attention to the number of communities it aids, the number of productivity hours saved by ensuring proper health care and welfare, the amount of raw materials saved from efficiency efforts, and the number of new employees recruited as a result of its foundation’s efforts.

What are some advantages of conserving resources over recycling waste?Conserving resources is far superior to recycling in that it reduces energy use from creating and then processing waste and byproducts. It also helps reduce raw material needs and associated procurement costs. Focusing on conservation is also important for raw inputs that are expensive or impossible to recycle.

Discuss how you might calculate a metric that links sustainability to employee retention.One way to calculate the importance of sustainability in employee retention efforts is to survey existing employees to find out how many value the sustainability efforts. Using the results of the survey, the company can compare the retention rate of employees who value the efforts with the retention rate of those who do not. Another way to assess the importance of sustainability is simply to calculate the percentage of employees who participate in and volunteer with the company’s or community’s sustainability initiatives.


“Measuring and documenting a company’s true impact with respect to sustainability is critical. Greenwashing, or otherwise faking it, will ultimately be exposed to the detriment of the company’s image and reputation.”

Dr. Wayne CascioProfessor, University of Colorado Denver


Measuring the Value of Corporate Philanthropywww.corporatephilanthropy.org/research/thought-leadership/research-reports/ measuring-the-value.html


PARTICIPANT WORKSHEET


corporations?

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List some examples of how the Aditya Birla Group is improving education and

health care in the communities in which it operates.

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Discuss how a corporation’s employment standards might influence other businesses and

organizations in the community. ____________________________________________

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How might inefficient use of natural resources affect a community?

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______________________________________Participant’s Name

Follow the facilitator’s instructions to complete this worksheet. Comprehensive answers will incorporate information from the video, personal experience and classroom discussions.


PARTICIPANT WORKSHEET What competitive advantages could be realized as a result of


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In what ways have the Aditya Birla Group’s health care initiatives created a

competitive advantage? _______________________________________________

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Define sustainable livelihood.

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Discuss some examples of local community initiatives that have an impact on global

sustainability. _______________________________________________________

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PARTICIPANT WORKSHEET In what ways can a company put more back


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What are some of the community initiatives of the Aditya Birla Group?

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Why are sustainable operations important for communities?

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List other ways a company could promote recycling, reusing, reducing and repair.

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healthy society?

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How has the Aditya Birla Group invested in the long-term health of local

communities? ______________________________________________________

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What human resource expenses can be minimized by operating in a healthy

society? ___________________________________________________________

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What are some operational benefits that healthy societies afford to companies?

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How has the Aditya Birla Group exemplified compassionate capitalism?

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What techniques can be employed to create and maintain a higher sense of

purpose? ___________________________________________________________

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How can an executive influence an organization’s culture?

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PARTICIPANT WORKSHEET Why should firms consider undertaking sustainability

initiative(s) that intersect with the strategy of their businesses?

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Give some examples of how the Aditya Birla Group intersected its strategy with

global sustainability. __________________________________________________

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In what ways would a company be affected by wasteful use of natural resources?

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Why are potential employees drawn to companies that are environmentally and

socially responsible? __________________________________________________

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What are some specific issues of global sustainability that a

company might address?

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How did the Aditya Birla Group’s investment in health care systems help prevent a

breakout of the dengue fever? __________________________________________

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What is fair trade, and how does it help prevent poverty?

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In what ways can a company prepare for catastrophic disasters?

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PARTICIPANT WORKSHEET How does a company’s attention to global

sustainability attract talented human capital?

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Why is young talent attracted to the Aditya Birla Group?

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How does the Aditya Birla Group use employer-sanctioned charitable activity to

encourage employee loyalty? __________________________________________

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List some ways that a company might promote its global sustainability efforts to

entice new talent. ___________________________________________________

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PARTICIPANT WORKSHEET Why is it critical to have top-level executives buy in to global sustainability

efforts?

___________________________________________________________________

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How do Aditya Birla Group’s top-level executives commit to global sustainability?

______________________________________________________

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Are there any downsides to global sustainability efforts that are not tied to a

business’s strategy? ___________________________________________________

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How might an organization with limited resources finance large-scale

sustainability efforts? ________________________________________________

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PARTICIPANT WORKSHEET In what ways can an organization measure its impact in terms of

sustainability?

___________________________________________________________________

___________________________________________________________________

___________________________________________________________________

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How has the Aditya Birla Group measured the value of its global sustainability and

community involvement efforts? ________________________________________

___________________________________________________________________

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What are some advantages of conserving resources over recycling waste?

___________________________________________________________________

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Discuss how you might calculate a metric that links sustainability to employee

retention.

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PARTICIPANT ANSWER KEY


corporations?Education and health careA corporation can contribute to improving educational opportunities within the communities in which it operates by getting involved in education. By assisting and, in some cases, creating schools for the underserved, corporations can have a significant and lasting impact on society. Some opportunities that a corporation might consider addressing include early-childhood education, primary and secondary education, and collegiate and postgraduate studies, as well as vocational and technical training.

Health care presents another opportunity for corporations to contribute to society. In most developed countries, corporations can differentiate their local talent-recruitment efforts by offering increased levels of health insurance. In countries that are developing, corporations might consider providing basic health care services through self-run clinics, coupled with partially or fully subsidized access to advanced medical facilities.

Equal employment opportunity and job creationBasic human rights and equality can largely be affected by the actions of corporations that operate in a particular community. Corporations that offer fair and equal employment opportunities set a standard that influences other businesses, organizations and governmental bodies.

Job creation is a key element to developing and maintaining a strong economy. Research suggests that healthy societies depend on healthy economies. Companies that create jobs in a particular community serve to elevate the economy and thereby the health of the general population.

Efficient use of natural resourcesIn all areas of the world, conservation of natural resources has become a critical element of the long-term sustainability of society. A corporation that focuses on minimizing its impact on the local environment is essentially making an investment in the long-term viability of both the community and its supply-chain–the resources it might be extracting from the locale.______________________________________________________________________________List some examples of how the Aditya Birla Group is improving education and health care in the communities in which it operates.The Aditya Birla Centre for Community Initiatives and Rural Development works in 3,000 villages and reaches 7 million people annually through its initiatives in health care, education, sustainable livelihood, infrastructure and social reform. It operates 42 schools that provide quality education to 45,000 children. Of these, more than 18,000 receive free education. Its 18 hospitals provide medical care to more than a million villagers.

Discuss how a corporation’s employment standards might influence other businesses and organizations in the community.By offering better employment packages than the competition, a corporation can effectively force its competitors to improve their employee compensation in order to remain viable contenders for talent. Better wages, superior health care and other quality-of-life-related benefits are key reasons an employee might consider switching employers. Businesses that experience an increase in employee attrition will be faced with the high costs of employee turnover, including recruitment, placement, training and loss-of-productivity expenses.

How might inefficient use of natural resources affect a community?A community is only as sustainable as the natural resources that exist in the area. Inefficient uses of natural resources will ultimately deplete a community by producing needless waste, by diverting usable materials from other businesses and groups, and by increasing the use rate of the resources, thereby limiting the life expectancy of the company and its employment opportunities for members of the community.

The following answers are key points in the primary and secondary discussion questions. Use this guide to check the answers on your Participant Worksheet.


PARTICIPANT ANSWER KEY What competitive advantages could be realized as a result of


Healthy and educated workforceBy contributing to the improvement of health conditions and educational opportunities in a community, a corporation will have a stronger talent pool from which to recruit employees. A more educated workforce tends to be more innovative, which helps the company outperform its competition.

Healthy employees also use less sick leave and have reduced levels of absenteeism, contributing to increased productivity and decreased HR-related expenses.

Cost savings through efficiencyCompanies can minimize supply and production costs by efficiently using natural resources. Increased efficiencies can provide a competitive advantage by boosting productivity, by reducing regulatory taxes on emissions and pollutants, and by preventing shortages of inputs derived from overutilized natural resources.

Long-term availability of source materialsMost natural resources are limited in quantity and availability; thus, it is important to operate in a way that seeks to use these resources at a rate congruent with what can be replenished through natural processes. By operating more efficiently than the competition, a company can generate a strategic advantage by ensuring longer-term availability of supply-chain inputs. ______________________________________________________________________________

In what ways have the Aditya Birla Group’s health care initiatives created a competitive advantage?In 2010, India was in the grip of dengue fever, but there were no cases of the virus among employees of the Aditya Birla Group. The company’s on-staff medical team took a proactive approach to prevent the spread of the virus in order to protect both the employees’ health and the company’s productivity. The company believes that it prevented a very costly increase in sick-leave use and absenteeism.

Define sustainable livelihood.The concept of sustainable livelihood revolves around poverty eradication. The sustainable livelihood concept includes provisions for eliminating low income, vulnerability and social exclusion. It recognizes that more attention must be paid to the various factors and processes that either constrain or enhance poor people’s ability to make a living in an economically, ecologically and socially sustainable manner. A livelihood is sustainable when it can cope with and recover from stress and shocks, maintain or enhance its capabilities and assets, provide for the next generation, and contribute to other livelihoods in both the short and the long term.

Discuss some examples of local community initiatives that have an impact on global sustainability.Community initiatives that promote recycling, reusing existing goods, minimizing water use, eliminating air pollution and reducing solid waste all contribute to the improvement of global sustainability. Often, the resolution to large global issues starts with local initiatives that spread to other communities, eventually forming a globally collaborative effort to address the issues.



PARTICIPANT ANSWER KEY In what ways can a company put more back


Community initiatives and rural developmentReturning value to the community can be a simple process of ensuring that a company seeks to improve the living and working conditions of the communities in which it operates. A company should actively participate in community improvement projects that address issues specific local issues. Companies should take an active role in protecting and improving the social fabric of a community.

In rural communities, a company might seek to undertake initiatives in health care, education, sustainable livelihood, infrastructure improvement and social reform in order to offset the impact of commercial operations in the area.

To ensure proportionate reinvestment in communities affected by a company’s operations, a company might consider devising a formula to estimate the quantity of resources that should be reinfused in the community, based on the amount of value generated from resources that the company extracts.

Sustainable operations and environmental rehabilitationBy working to maximize efficiencies and by focusing on long-term sustainability of its operations, a company offers economic stability to its local communities. Economic stability provides a level of security that helps foster a community’s continued progressive development. In areas negatively affected by operations, a company should consider conducting environmental rehabilitation projects to expedite restoration of local ecosystems.

Recycling, reusing, reducing and repairingOne way to ensure balance in the world is to extract full use out of products and materials. Companies should design and build products that can be repaired rather than replaced. Post-consumer recycling, production-waste reduction and reusability of products and components should be key elements of a business’s efficiency considerations. ______________________________________________________________________________What are some of the community initiatives of the Aditya Birla Group?The Aditya Birla Centre for Community Initiatives and Rural Development works in 3,000 villages and focuses on education, health care, sustainable livelihood, social causes and infrastructure improvement.

Why are sustainable operations important for communities?Sustainability operations are about planning and carrying out day-to-day work with full consideration of the effect of environmental factors on long-term goals. Such considerations provide for the protection of the environment as well as for long-term job creation and sustainability. Because sustainability is directly correlated to efficiency, these efforts typically allow a company to provide higher wages, thus ultimately improving the quality of life within a community.

List other ways a company could promote recycling, reusing, reducing and repair.Paper, electronics and plastics recycling programs are a common way for companies to encourage employees to reduce solid waste. Because electronics recycling is typically an expensive proposition for individuals, many U.S. companies have responded by conducting used equipment collection drives to consolidate the cost and improve solid-waste diversion. Reusing and repairing equipment and supplies has also become a staple of long-term viability and cost reduction. Efforts range from ridding cafeterias of disposable containers and plastic utensils to repairing manufacturing equipment and extending the life of office furniture and computer equipment.





healthy society?

Society is your customerEvery customer, either directly or indirectly, is a member of a community and lives in a society affected by business. Realizing that a healthy society is a key factor for driving demand and sustainable growth is vital to long-term success.

The best-case scenario for a company that operates in a declining or subpar society would be to maintain demand for a finite period. As societal health deteriorates, growing revenue, profits and productivity, as well as securing inventory and focusing on efficiencies, will become more difficult.

Society is your source of talentIn addition to being the source of customers, society is also the source of talent. A healthy society tends to provide a talent pool that is more prepared to be productive.

A healthy society can drive down the cost of human resource expenses by minimizing health-related absenteeism and associated replacement costs, by reducing the cost of benefits for basic health care and education, and by controlling costs related to recruitment and retention of talent.

Healthy societies have fewer issuesSocieties that have civil and political stability and advanced safety nets for health care, socioeconomic issues and education create optimal environments for business operations. Healthy societies allow businesses to focus on their missions without distractions that might otherwise interrupt productivity.

Even in healthy societies there are issues that need to be addressed; however, they are typically more clearly defined and therefore easier to solve. In healthy societies, addressing minor issues can have a lasting impact on the community. Healthy societies make it easier for businesses of all sizes to effect change by selecting issues that are in scale with the size of the company.______________________________________________________________________________

How has the Aditya Birla Group invested in the long-term health of local communities?The Aditya Birla Group is working to improve the education level of the people in the areas where it operates. It spends millions of dollars to improve the health care opportunities and water treatment facilities. It also teaches locals how to conduct sustainable agriculture through a technique called multicropping, which works with the natural cycles of the environment to raise a variety of plant species on a given swath of land.

What human resource expenses can be minimized by operating in a healthy society?Healthy societies provide certain safety nets and social services that help minimize human resource expenses, including health care, socioeconomic welfare, education and long-term retirement planning (such as the U.S. Social Security system). These services help lower employee absenteeism and turnover by reducing the incidents of personal and family-related illnesses and emergencies. Employee recruitment and training expenses are minimized in societies that invest in education, and productivity and engagement increase as a result of an employee’s availability to work.

What are some operational benefits that healthy societies afford to companies?Healthy societies tend to have more educated populations from which a company can recruit talent. Employees who come into a company with advanced education are more likely to help the company increase innovation and productivity.





Capital should not be your only concernBusiness should be driven by a purpose greater than profit. There has to be a reason for a business to exist. For some, the purpose of the company is to provide stable employment regardless of external economic conditions. For others, the purpose might be to provide stakeholders with a platform to effect positive social change.

A recent study conducted by the Conscious Capitalism Institute examined two major U.S. corporations–REI and The Container Store–both of which committed not to lay off employees during the economic downturn. In both cases, the companies’ loyalty and concern for employees and suppliers resulted in revenues and profits higher than their industry counterparts.

Avoid exploitationA company should actively encourage all stakeholders to operate with a sense of higher purpose and to recognize that their individual interests are connected to each other’s success. Companies should work to promote a comprehensive no-exploitation policy at all levels of the business to ensure that everyone has an equal opportunity to benefit. This policy should cover the exploitation of raw materials, the global environment and fellow employees.

Collective enrichmentCompassionate capitalism requires leadership that is driven to uphold the collective purpose of an organization and less drawn to personal power or individual wealth. Executives need to create an organizational culture that embodies trust, caring, compassion and authenticity. ______________________________________________________________________________

How has the Aditya Birla Group exemplified compassionate capitalism?The Aditya Birla Group works to understand the local communities and their environmental concerns. It works to ensure these issues are addressed before it seeks to profit from the area. The Aditya Birla Group works to understand its impact on the local, regional, national and international social fabric in order to improve living and working conditions for all its stakeholders.

What techniques can be employed to create and maintain a higher sense of purpose?A higher sense of purpose involves working for a company for a reason that supersedes profit-making and productivity. Companies can create incentive programs that encourage employees to volunteer in their community, to help provide care for sick or needy co-workers and to profit from increases in business. Profit-sharing and rewarding innovation of efficiencies are great ways to encourage employees to invest their best efforts in the well-being of both the company and their colleagues.

How can an executive influence an organization’s culture?An attitude of service that starts at the top will trickle down to the very lowest employee. Executives who exemplify a commitment to the greater good will create an atmosphere and culture that promotes positive changes for the individual, as well as for the company and the community. Employees are more likely to buy into and emulate a corporate philosophy if top-level executives actively display their commitment to the cause.



PARTICIPANT ANSWER KEY Why should firms consider undertaking sustainability

initiative(s) that intersect with the strategy of their businesses?

The natural (easy) fitConnecting thesustainability efforts of an organization to the strategic aspects of its operations helps prevent duplicative and costly work. If an organization considers sustainability throughout its strategic development, it will inevitably benefit from reduced costs brought on by increased efficiencies and minimized waste. When sustainability is not part of a business’s strategy, it can become a costly proposition that deters productivity. Such an effort could be seen as an unnecessary expense and ultimately get canceled.

Protect needed resourcesIt would behoove firms that deal with limited or constrained inputs to make sustainability one of their highest priorities. If a company experiences a period of time where resources are constrained, it might have to make drastic cuts to production, ultimately affecting the bottom line. Ensuring the conservation of strategic resources will help prevent potentially needless disruptions to productivity.

Improved public imageContributing to the long-term viability of a community and to the global environment is a key aspect of maintaining strong public relations. By conducting business in a socially and environmentally responsible way, employees, suppliers, partners and future employees are more likely to work with the company. Doing good by society sets up a cyclical flow of benefits among the organization, the community in which it operates and its stakeholders.______________________________________________________________________________

Give some examples of how the Aditya Birla Group intersected its strategy with global sustainability.For the last couple of years, the Aditya Birla Group has tried to reduce chemical use for pesticides. It devised an organic, natural, plant-based pesticide and fertilizer that deeply cuts dependence on petroleum-based fertilizers and pesticides.

Aditya Birla Group’s cement division has worked to reduce the amount of waste produced by its processing plant while simultaneously working to conserve the material inputs.

In what ways would a company be affected by wasteful use of natural resources?Natural resources are typically limited in quantities. Wasteful use of these resources limits the long-term viability of a company and its productivity. In the short term, a company might incur increased expenses related to governmental regulations of the limited natural resources as well as to the disposal of waste associated with inefficient use.

Why are potential employees drawn to companies that are environmentally and socially responsible?Growing evidence suggests companies that act responsibly when it comes to the environment take better care of their employees and their communities. Talented people are drawn to organizations that are more likely to benefit their family and their community. Companies that exemplify good corporate citizenship and that act as caring stewards of the environment are more likely to attract like-minded talent.



PARTICIPANT ANSWER KEY What are some specific issues of global

sustainability that a company might address?

Climate change and water shortagesA company that produces carbon emissions or that uses potable water as a source for production should seek to minimize its impact on the environment by installing carbon filtering and water-reclamation devices. Modern advances in these technologies have shortened the return on investment periods for the equipment, making these expenses manageable for most companies.

Beyond water reclamation, companies should invest in water-saving restroom facilities, efficient landscape irrigation systems, and water capture and diversion systems to store and use rainfall.

Infectious disease and reduction of povertyCompanies can reduce the spread of infectious disease in a variety of cost-effective ways, including conducting employee (and family) immunization drives, offering self-run health care clinics operated by on-staff physicians and providing comprehensive health insurance.

To reduce poverty, companies should pay a livable wage to their employees. Wages should be viewed not only as expenses but also as investments in the well-being of the company’s human capital. Organizations should operate fair-trade agreements with suppliers to ensure that they are not simply shifting poverty further down the supply chain.

Disaster response and reliefWhen a disaster affects an area in which a company operates, the company should actively seek to be involved in a coordinated response to the destruction. It would be prudent for a company to include disaster recovery and relief for its operations, as well as for its employees, their families and the surrounding community as part of its operational contingency plans. Setting aside money to aid employees during the aftermath of a crisis goes a long way toward expediting the recovery of the business operations. Such an investment also sends a clear message about the organization’s concern for the well-being of its employees–an act that is sure to reduce employee turnover and increase loyalty.______________________________________________________________________________

How did the Aditya Birla Group’s investment in health care systems help prevent a breakout of the dengue fever?The Aditya Birla Group built medical clinics in the communities in which it operates to provide health care and vaccinations to employees and their families. The medical staff took a proactive approach to preventing the breakout as a way to protect both the employees’ health and the immediate productivity of the company.

What is fair trade, and how does it help prevent poverty?Fair trade is a market-based social movement that aims to help producers in developing countries offer better trading conditions and promote sustainability. The concept advocates paying a higher price to producers as well as setting higher social and environmental standards. It primarily focuses on exports from developing countries to developed countries.

In what ways can a company prepare for catastrophic disasters?A company should create a disaster mitigation and recovery plan, including provisions to return productivity to normal levels, to rebuild and repair damaged facilities, and to help employees personally recover from the disaster. A company should stockpile operational, medical and life-sustaining (water and food) materials to help employees return to work as quickly as possible. The company should also establish a disaster recovery fund to pay for recovery efforts and purchase insurance to protect the capital assets of the business.



PARTICIPANT ANSWER KEY How does a company’s attention to global

sustainability attract talented human capital?

The good corporate citizenCompanies can attract talented candidates by being good corporate citizens. The idea that a corporation pays its fair share of taxes, looks after the communities that it affects, takes care of and invests in its employees, and operates in a conservation-minded way is highly attractive to young, talented people looking to work for a company that shares their values. As younger populations become increasingly aware of the need for global sustainability, corporations that actively conduct sustainability efforts will have an advantage as they seek to attract new talent.

An opportunity to contributeCompanies that encourage employees to contribute to social and environmental causes tend to attract like-minded people. People who are interested in using their employer as a conduit to do well in the world are attracted to companies that encourage such behavior.

Employer-sanctioned opportunities to contribute to charities and participate in community outreach and improvement projects are very attractive benefits that can be used to set a company apart as it competes with other organizations to recruit new talent.

Caring for society implies decencyA company’s contributions to improvements within the community are often perceived as indicators of how it treats its own employees. Companies that care enough to ensure that communities they operate in are safe, healthy, unexploited and sustainable broadcast a clear signal that they understand the importance of maintaining healthy, symbiotic relationships with all stakeholders. Quite simply, a conscientious company attracts conscientious employees.______________________________________________________________________________

Why is young talent attracted to the Aditya Birla Group?The Aditya Birla Group cites a growing interest in global sustainability among young people as a leading reason why it is able to attract talent. It believes that young people view the Group as one that cares for people, is not materialistic and has deep spiritual values.

How does the Aditya Birla Group use employer-sanctioned charitable activity to encourage employee loyalty?After seven years of working for the Aditya Birla Group, an employee is given three months off to work on any project of his or her choice if it is connected to sustainability. The incentive gives employees a long-term goal to stay with the company while ensuring that the volunteering project remains focused on improving the community, environment or society.

List some ways that a company might promote its global sustainability efforts to entice new talent. A company can produce other marketing efforts, such as a company website, highlighting its efforts to protect the environment, its employees and its long-term viability. Employees looking to begin a career track are drawn to organizations that are able to demonstrate a commitment to long-term sustainability of the business.



PARTICIPANT ANSWER KEY Why is it critical to have top-level executives buy in to global sustainability

efforts?

Employee buy-inIn order to get complete buy-in from employees at all levels of an organization, top-level executives must declare global sustainability a priority for the company. Modeling responsible behavior from the top of an organization is the most effective way to ensure that everyone works toward the same goals. Top-level executives might also choose to tie employee compensation, including bonus payments and raises, to how well an employee uses sustainability efforts to create efficiency, save money and increase the productivity of the company.

The financial investmentThere can be costs associated with implementing global sustainability efforts that require approval from top-level management. In many cases, sustainability efforts require upfront investments and generate returns for years to come. Without the buy-in from senior executives, funding for the planning, development and execution of large-scale sustainability efforts could be difficult to obtain.

In most cases, top-level executives know the direction the company is heading and are better equipped to decide what sustainability efforts best align with the long-term strategy.

Long-term integration of the effortThe fortitude to continue onward and to remain dedicated to global sustainability during difficult economic conditions requires a strong commitment from top-level executives. Often, cost-cutting measures tend to take aim at activities that may be perceived as less important than core business operations. With top-level buy-in of sustainability efforts, decision makers will accept the idea that the company’s sustainability efforts are a key part of its competitive advantage.______________________________________________________________________________

How do Aditya Birla Group’s top-level executives commit to global sustainability?The Aditya Birla Group formed the Centre for Community Initiatives and Rural Development and budgeted $15 million to operate a comprehensive program of corporate social responsibility. The Centre espouses the trusteeship concept of management, which suggests the wealth a company generates should be held in a trust for multiple stakeholders. This philosophy drives the Aditya Birla Group to invest part of its profits beyond business, for the larger good of society.

Are there any downsides to global sustainability efforts that are not tied to a business’s strategy?Running a global sustainability program that does not intersect with the core of a business exposes the company to unnecessary distractions from productivity, from increased expenses related to those activities and from difficulties drawing buy-in from stakeholders. Further, when an economic recession or downturn occurs, programs that are superfluous or that are not part of the core mission will be the first expenses to be cut.

How might an organization with limited resources finance large-scale sustainability efforts?If the effort is part of the business strategy, executives can issue bonds or take out bank loans to raise capital to finance the development of the project. Also, if the project creates an efficiency that might otherwise not exist, shareholders might be more willing to contribute to a fund-raising campaign to support the development of the effort. A more prudent option is to produce a long-term savings plan that allows a company to allocate funds over a period of time.



PARTICIPANT ANSWER KEY In what ways can an organization measure its impact in terms of

sustainability?

Cost savings The easiest way to measure the impact of an organization’s sustainability efforts is to calculate the cost savings associated with the efficiencies of those efforts. If an organization closely ties its efforts to its business strategy, there will be, in all likelihood, a beneficial financial impact as a result. In some situations, sustainability efforts might best be measured in terms of the amount of raw materials and resources saved or of the number of staff hours trimmed, or by accounting for the reduction of electricity, water and other utilities used in the operation.

In companies that generate carbon emissions or other pollutants, sustainability efforts might be measured in terms of the financial savings derived from no longer being obligated to pay regulatory taxes or to conduct mandatory cleanup/restoration.

Availability of resourcesAside from cost savings, a company might measure the success of its sustainability efforts by calculating the decreased rate of source materials, energy and other natural resources being used. An increased rate of conservation of these resources should affect both the bottom line and the long-term viability of the company.

If a company relies on limited natural resources, it is extremely prudent to calculate the additional time that an operation can continue, given the organization’s conservation efforts.

Polling new talentAs previously discussed, global sustainability efforts are becoming more and more important for recruitment efforts. Ask potential and new employees if the company’s environmental and social responsibility played a role in their decision to join the organization. To understand another benefit of an organization’s global sustainability efforts, companies should calculate the conversion rate of interviews to new hires and the change in this metric since the initiation of sustainability efforts.______________________________________________________________________________

How has the Aditya Birla Group measured the value of its global sustainability and community involvement efforts?The Aditya Birla Group pays particular attention to the number of communities it aids, the number of productivity hours saved by ensuring proper health care and welfare, the amount of raw materials saved from efficiency efforts, and the number of new employees recruited as a result of its foundation’s efforts.

What are some advantages of conserving resources over recycling waste?Conserving resources is far superior to recycling in that it reduces energy use from creating and then processing waste and byproducts. It also helps reduce raw material needs and associated procurement costs. Focusing on conservation is also important for raw inputs that are expensive or impossible to recycle.

Discuss how you might calculate a metric that links sustainability to employee retention.One way to calculate the importance of sustainability in employee retention efforts is to survey existing employees to find out how many value the sustainability efforts. Using the results of the survey, the company can compare the retention rate of employees who value the efforts with the retention rate of those who do not. Another way to assess the importance of sustainability is simply to calculate the percentage of employees who participate in and volunteer with the company’s or community’s sustainability initiatives.



Five Lessons in Global Sustainability

1. Recognize the link between sustainability and competitive advantage – focus on initiatives that create a meaningful benefit for society and that are also valuable to your business. The tighter that linkage, the great the opportunity to leverage the firm’s resources.

2. Leadership matters – Corporate leaders with vision are recognizing that by advancing global solutions they can create valuable, renewable resources, establish new markets for their companies, and unleash tremendous opportunities.

3. Consumers care – In developed countries, study after study shows that a majority of consumers believe they can help companies create products and services that are a win-win for consumers, business and society.

4. Measurement matters – Measuring and documenting a company’s true impact with respect to sustainability is critical. Greenwashing, or otherwise faking it, will ultimately be exposed to the detriment of the company’s image and reputation. Beyond that, measurement matters to corporate boards and shareholders who want to understand the value of sustainability initiatives in advancing the interests of their companies.

5. Accountability and integrity matter – A key reason for embracing sustainability is to build trust with consumers, employees and potential job applicants. Communications that are less than honest and candid are an invitation to unwanted publicity and negative media attention. Tell the truth and tell it first.

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