Editorial
sustainability
“68% of the general public compared to
new roles directing and for sustainability a
managing corporate
75% of NGOs and CR experts agreed that
critical element is
responsibility and technological
sustainability have been
‘Industry and commerce do not pay enough
innovation, which is
created and environmental deemed able to provide
management, stakeholder
attention to their social responsibilities.”
ever increasing material
dialogue and community living standards for
involvement have become everyone in developing
staples of the boardroom. and developed
In addition to non-financial reporting, investment in bulbs, carrier bags and bottled water is tokenism economies as population grows. The world
ethical or sustainable funds has grown rapidly over or ‘greenwash’ - an attempt to look responsible population is anticipated to rise from its current
the last decade. whilst effectively continuing with a fundamentally level of 6.7 billion people to an estimated 9.6
However, many sustainability champions still unchanged business model. Surveys of the public billion by 2050 - an increase of approximately 80
argue that our current response to sustainability and opinion leaders are instructive. Ipsos MORI million per annum.
indicates that we either do not understand the surveys in 2006 and 2007 suggest the UK general
problem, we are in denial, or worse we are public’s expectations are very close to that of Bottom line
deliberately seeking a ‘have cake and eat it’ society. NGOs and CR experts. 68% of the general public It may seem premature, when most businesses have
For example, the WWF campaign for ‘one world compared to 75% of NGOs and CR experts agreed limited experience of the business case for
living’ argues that if today’s global population lived that ‘Industry and commerce do not pay enough sustainability, to be raising limitations with this
at UK consumption levels we would need three attention to their social responsibilities’. approach. However, if the issues of confusion and
planets, and if the world lived at US consumption Interestingly 30% of ‘captains of industry’ also denial raised in this paper’s opening remarks are to
levels we would need six planets. agreed with this statement. be overcome, dialogue on limitations should be
encouraged. Thus we can observe that, currently
The business case where businesses are attempting to bring triple
Given the well known view that ‘the bottom line considerations into decision making,
business of business is business’ and most only feel able to take social and environmental
the overriding view of most CEOs factors into account to the extent that they benefit
and their boards that their primary financial performance. Social and environmental
duty is to maximize the financial benefits that cost or only offer a distant financial
returns of the business for return may be excluded.
shareholders, business may not seem Thus some sustainability ideas associated
a natural bedfellow for sustainability with ‘eco-efficiency’ may fit very easily within an
principles. However, as noted above, existing business model committed to maximizing
over the last two decades the ‘business short term shareholder value. More radical
case’ for sustainability has become an sustainability ideas associated with ‘eco-
increasingly well-worn argument. It effectiveness’ or ‘social justice’ may be excluded
runs along the lines of enlightened on the grounds there is not a short term financial
self-interest and extends a return. Critically this calculation may limit
stakeholder perspective to assert a investments in R & D that might provide radical
win-win relationship between technological innovations to support the vision of
shareholders and sustainability future green material growth. The way in which
(society and the environment). In the triple bottom line can be operated by business
short, it suggests increasing public leaders may appear to set limits on the type of
awareness of sustainability principles sustainability that can be achieved through public
and issues, raises expectations on companies and partnerships with NGOs. However
business performance. The ‘licence in addition to pointing to the importance of new
to operate’ is raised and if businesses social and environmental entrepreneurship and
do not respond they face a range of government for sustainability, limitations to the
risks and reputational (share business case indicate the need to address the
price) damage. concept of collective governance and leadership.
The other side of risk is
opportunity. It is argued that the
application of sustainability
principles and related ideas such as this extract is taken from Professor
‘biomimicry’ and ‘closed loop Downing’s article leading for
systems’ allows the business to reduce sustainability: a journey through the
costs, increase revenues, innovate, business case and beyond and inwards
Within government and business we seem differentiate and enhance brands. In addition there found in the topExecEd newsletter for
open to the charge we are not joining up the dots are further competitive advantages from improved spring 2008 at:
ezine.topexeced.com/
or taking a global systems perspective. The media recruitment and retention and the ability to partner news/article/leading_for_sustainability/
and public debate on whether concern with light and lobby government. Within this business case
TopMBA CAreer Guide
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