ORGSTUDY 208 Study Guide - Final Guide: Triple Bottom Line, Sec Filing, Resource Productivity
18 Jun 2018
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Department
Course
Professor
SWOT:
Internal: Strengths & Weaknesses
→ Weaknesses: Who else has similar weaknesses/faces similar risks from
environmental change?
External: Opportunities & Threats
→ Opps: Where is there a growing gap to create new solutions for
environmental change?
→ Threats: Where are environmental changes creating broad threats to
future business value?
Circular/Closed Loop Economy: product recovery management (repair,
refurbish, recycle, remanufacture,etc)
- Elimination of waste through recycling and re-use at end of use
- Principle 1: Preserve, enhance natural capital. Principle 2: Optimize
resource yields. 3: Foster system effectiveness
Tragedy of the Commons
- Open access, can’t restrict people from using a resource; people are
only concerned with short term profit, not long term effectiveness.
Individuals act w their own self-interest, rather than common good.
Requires social/regulatory solution
Triple Bottom Line: people, planet, profit
Social: social capital, education, health and well being, quality of life,
unemployment rate, poverty/not
- Business is not separate from society - we must ensure the role of
business in building a better future is encouraged
- CSR
- Commitment that business owes to sustainable economic
development, working w local community, employees (&
their families), society at large to improve way of life
Environmental: waste (solid or toxic), land use/cover, natural resource,
depletion of resources, emissions
- Resource productivity
- Innovation in processes and design
- Effective resource use / integration of quality management
- Why don’t all companies do it if so many wins?
- Lack of expertise
- Limited attn resources
- Searching through available resources until finding an
acceptable solution vs. analyzing all solutions to find the
best one
- Role of Regulation
- Pressure for companies to innovate
- Demand for environ. Stewardship
- Raise likelihood that regulations will be environmentally
friendly
Economic: taxes, job growth, income, employment, business climate factors
- Public companies: stock can be owned by public, trades on
exchange
- SEC filing and reporting requirements
- Friedman: profits are most important
- McKinsey: role of capitalism is creation not allocation
Sustainability Oriented Innovation (SOI) - firms being systematic,
integrated thinking**
- Organizational SOI = interested in connections with society, not focused
inwardly on company. Leads to systems building and new innovation within
organization.
- Social/tech considerations, firm deliveries benefit society, reducing harm
Stakeholder Theory - extends focus beyond commitment to stakeholders
(to employees, customers)
- Internal - employees (stores & HQ), executives, managers,
owners
External - suppliers, govt, creditors, society, shareholders ($ risk), activists,
NGO, customers
- Activists/consumers want positive environmental impacts & high
quality; CEO wants economic growth & pos image.
farmers/activists/citizens want environmental friendliness. Local govt wants
health and well being of community. (companies typically at odd w activists
- like the Coke case)
Metrics
- How to Measure success/ failure: $$$= share price, sales, profits,
mutual fund returns, equity
- Cost: reduced use, changes in risk profile, operational
efficiencies, changes in risk profile, energy consumption, waste reduction.
Revenue- customer loyalty, competitive advantage, new markets. Employee-
retention/satisfaction, surveys. Innovation- cultural, internal processes.
Reputation- customers, regulators, non-customers, survey, social media
analysis
Supply Chain Mgmt - integrating good environ/financial practices into
complete supply chain lifecycle. Pressures: govt regulation, societal/public
concern, consumer concern. Includes: material selection, transport,
packaging, distribution, consumption, return
Best Practices Model: 1) Create meaningful experiences. 2) Confirm
suppliers & agree upon targets. 3) Measure supply chain performance. 4)
Evaluate & improve (supplier evaluation)
Regulation - puts pressure on companies to be innovative, raises likelihood
that innovations will be environmentally friendly
Environmental Governance - laws / specific practices
- Performance standards: limit emission levels but leave it open on how to
achieve this limit. Pro: easier on implementation (more flexible), con:
harder to monitor. Management-based regulation: requirement of specific
management activities (ex: environmental planning). Pro: focus on
environmental issues & risks. Con: transparency often not required.
Industry self regulation: corporations coordinate rules for themselves, not
regulated by govt.
Sustainability Partners: - Respect and humility, enabler role, authenticity,
mutual benefits (connect others that share some needs), brokerage; Market
based instruments- environmental taxes or emissions trading
B-corp- -Pledge to social and environmental guidelines, sometimes neglect
idea of getting profit, innovation integrated throughout company
Environmental Marketing - What can business do?
- Do they care/ will they pay/ will they change behavior
- Challenges: socially conscious consumers are less trusting of
business advertising; thought that they need to give something up
in order for their product to be sustainable
- Opps: manage CSR reputation, consistency, provide education
Document Summary
Circular/closed loop economy: product recovery management (repair, refurbish, recycle, remanufacture,etc) Elimination of waste through recycling and re-use at end of use. Open access, can"t restrict people from using a resource; people are only concerned with short term profit, not long term effectiveness. Individuals act w their own self-interest, rather than common good. Social: social capital, education, health and well being, quality of life, unemployment rate, poverty/not. Business is not separate from society - we must ensure the role of business in building a better future is encouraged. Commitment that business owes to sustainable economic development, working w local community, employees (& their families), society at large to improve way of life. Environmental: waste (solid or toxic), land use/cover, natural resource, depletion of resources, emissions. Effective resource use / integration of quality management. Searching through available resources until finding an acceptable solution vs. analyzing all solutions to find the best one. Raise likelihood that regulations will be environmentally friendly.
