12. Green Business Sustainable Business Triple Bottom Line Sustainability Corporate Social Responsibility Terminology
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14. Defining Green Business Green businesses operate in ways that solve, rather than cause, both environmental and social problems. These businesses adopt principles, policies, and practices that improve the quality of life for their customers, their employees, communities, and the environment. Source: www.coopamerica.org
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16. Communicating the BUSINESS CA$E for Sustainability Bob Willard bobwillard@sympatico.ca www.sustainabilityadvantage.com
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18. Sustainability 3-Legged Stool Sustainability Economic Leg Good Jobs Fair wages Security Infrastructure Fair Trade Social Leg Working conditions Health services Education services Community & Culture Social justice Environmental Leg 0 Pollution & Waste Renewable Energy Conservation Restoration Quality of Life / Genuine Wealth / Genuine Progress Source: Bob Willard- The Business Case for Sustainability
19. Smart Business 3-Legged Stool Asset Management Financial Capital Built Capital Natural Capital Human Capital Social Capital Sustainable Value Creation Source: Bob Willard Source: Bob Willard- The Business Case for Sustainability
20. Company Value “Iceberg” Balance Sheet Market Capitalization Source: Bob Willard- The Business Case for Sustainability
21. Company Value “Iceberg” Intangibles - Nonfinancials Reputation - Brand Image Stakeholder Relationships Tangibles Financials Market Capitalization Balance Sheet Source: Bob Willard- The Business Case for Sustainability
22. Company Value “Iceberg”: 1981 Intangibles / Nonfinancials / Reputation Tangibles Financials Market Capitalization Balance Sheet 83% 17% Arthur D. Little, The Business Case for Corporate Citizenship , 2002 Source: Bob Willard- The Business Case for Sustainability
23. Company Value “Iceberg”: 1998 Intangibles Nonfinancials Reputation Tangibles Financials 29% 71% Arthur D. Little, The Business Case for Corporate Citizenship , 2002 Source: Bob Willard- The Business Case for Sustainability
24. Sea of Demanding Stakeholders Nonfinancials / Reputation Financials Employees Customers Media Economists Scientists NGOs Competitors Global Markets Governments Insurers The Public Investors Banks Source: Bob Willard- The Business Case for Sustainability
25. Two-Part Business Case Nonfinancials / Reputation Financials Employees Customers Media Economists Scientists NGOs Competitors Global Markets Governments Insurers The Public Investors Banks RISKS OPPORTUNITIES Source: Bob Willard- The Business Case for Sustainability
26. Mega-Issue Storm Clouds Employees Customers Media Economists Scientists NGOs Competitors Global Markets Governments Insurers The Public Investors Banks RISKS Water Crisis Pandemics Erosion of Trust Pollution & Health Nonfinancials / Reputation Wealth Chasm Food Crisis Climate Crisis Energy Crisis Source: Bob Willard- The Business Case for Sustainability
27. 7 Benefit Areas 1. Reduced recruiting costs 2. Reduced attrition costs 3. Increased employee productivity 4. Reduced expenses in manufacturing 5. Reduced expenses at commercial sites 6. Increased revenue - market share 7. Lower insurance & borrowing costs … yielding a profit increase of +38% Usual focus REPUTATION Source: Bob Willard- The Business Case for Sustainability
28. One More Goal … or an Enabling Strategy? Innovation Speed to market New markets Talent wars Productivity Motivation Brand image Managing risks Compliance Supply security Profit Share price Growth Revenue Customer care Expense savings Competition Market share Leadership Governance Source: Bob Willard- The Business Case for Sustainability
29. The Natural Step Framework Source: The Natural Step & Alex Frost, Hawaii County Resource Center
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31. Natural Step- Key Concepts Source: The Natural Step & Alex Frost, Hawaii County Resource Center
32. The Funnel Source: The Natural Step & Alex Frost, Hawaii County Resource Center
33. Four System Conditions Source: The Natural Step & Alex Frost, Hawaii County Resource Center
53. Talent Risks 40% of MBA grads rated CSR as a an “extremely” or “very” important company reputation measure when job hunting (Hill & Knowlton Jan 08) 92% of students and entry-level hires seek an environmentally friendly company (MonsterTRAK.com survey, Nov 07) 83% of employees in G7 countries say company’s positive CSR reputation increases their loyalty (GlobeScan 2006) 83% of employees in G7 countries say company’s positive CSR reputation increases their motivation (GlobeScan 2006) Source: Bob Willard- The Business Case for Sustainability