Section #3 - Sustainability
Sustainability Stakeholders
from outside to inside of the circles: 1. Internal Departments 2. Executive Team 3. Managers 4. Employees Bigger outside circle: - company executives - community, society, customers - shareholders and potential investors - creditors - regulators - standard setters - technology
Social audits are used to measure a company's social responsiveness
i.e. "Staffing How does the organization reward, train, and develop its staff? How does it ensure nondiscriminatory, fair, and equitable treatment of all its workers? How does it promote diversity and inclusion?"
Redefining Stakeholders
"Stakeholders are all those affected by the organization's social, environmental, and economic impact—shareholders, employees, customers, suppliers, regulators, and local communities. Sustainability's 3 Ps have expanded the notion of stakeholders from just those with a direct financial stake in the organization to include as well those affecting or affected by an organization's social and environmental value."
Three Spheres of Sustainability
1. ENVIRONMENT - Planet 2. ECOMONIC - Profits 3. SOCIAL - People the triple bottom line
Areas of Triple Bottom Line
1. Economic sustainability -Return on investment" -Business Agility 2. Environmental sustainability -Transport -Energy -Waste -Materials and resources 3. Social Sustainability -Labor practices and decent work -Human rights -Society and customers -Ethical behavior
The triple Bottom Line
Applies sustainability 3 P's principle The "Full cost accounting" The "True Cost Accounting" It can be viewed as the performance measurement of an org. pursuing a strategy of sustainability: its: Goals then, is to achieve a positive ROI in each of these areas Looks at: Economic Environmental Social
Sustainability
The ability to keep in existence or maintain. "an ecological goal, the preservation of the environment. "
Defining the Bottom Line
There are three ways in which an organization can accomplish this: -Reconceiving products and markets -Redefining productivity in the value chain -Enabling local cluster development
Sustainability Sweet Spot
Weber argue that properly view - where sustainability becomes an engine of innovation and a way to identify bus opportunities...generating new products, processes, markets and bus models
