SUSTAINABLE BUSINESS AND DEVLOPMENT

Zara Sochiye (Think a Little) # 1

Zara Sochiye (Think a Little) # 2

Zara Sochiye (Think a Little) # 3

The Anatomy of a Worldview

     

Values          

     

Beliefs          

 

Decisions  and  

Outcomes  

The  Modern  Worldview  Characteris*cs  

Ø Instrumental  -­‐  Rela5onship  with  other  humans  and  the  natural  world  is  to  be  used  for  personal  pleasure  and/or  profit  

Ø Anthropocentric  -­‐  humans  are  central  locus  of  value  and  decision  making  

Ø Mechanis8c  -­‐  Reality  is  looked  upon  using  the  machine  as  metaphor  

Ø Individualis8c  -­‐  Decisions  are  generally  made  by  individuals  for  individuals  

Ø Dualis8c  -­‐  Things  are  categorized  using  an  either/or  mentality  

Ø Control  –  Variances  within  a  system  are  to  be  brought  under  control  

Ø Ra8onality  –  Reason  and  logic  are  the  only  valid  modes  of  knowing  

Ø Determinis8c  -­‐  By  using  the  above  logic,  all  the  things  in  reality  may  be  understood  

Ø Technology-­‐centric  -­‐  Any  problems  that  is  faced  by  human  society  can  be  solved  by  using  markets  or  technology  

Impact  of  the  modern  worldview  

ü  The Industrial Revolution and the rapid pace of technological development has led to our present unsustainable way of life.

ü Our growth has neither been balanced, nor in accord with all the laws of nature.

ü On the other hand, nature (left to its own devices) is “sustainable”.

Sustainability  A  defini*on  

Our ability to act in a way that meets our own needs and objectives (in the present) without diminishing the capacity of other beings and entities in society (in the current or the future context) to meet their respective needs

Value = Private property. A person “owns” all property that they

create, unless they have explicitly given up that right ( by “hire”).

Belief = Man has dominion over nature. Implication = Owner has the right to use, trade, or

destroy; hunt, harvest, or drill.

Lenses  of  Sustainability  The  Ownership  Perspec.ve  

Value = Continued service of the property to the benefit of others.

Belief = Possessions come and go. Implication = Owner is a custodian and has the

obligation to preserve the usefulness of the property for others who may later have it.

Lenses  of  Sustainability  The  Stewardship  Perspec.ve  

Value = Man’s life with free will. Belief = Mankind is unique in the universe (e.g.

by virtue of man’s free will), standing apart from it yet acting in it.

Implication = Man has dominion over nature.

Lenses  of  Sustainability  The  Anthropocentric  Perspec.ve  

Value = Evolution of all beings. Belief = The evolution of man is interdependent

with the evolution of all beings. Implication = Man must coordinate with all natural

systems.

Lenses  of  Sustainability  The  Eco-­‐centric  Perspec.ve  

Value = The survival of the species is more important than the survival of any single individual.

Belief = The fit survive, grow and reproduce.

The unfit do not. Implication = Anyone can do anything they want.

The Law of the Jungle

Lenses  of  Sustainability  The  Darwinian  Perspec.ve  

Value = Freedom of choice Belief = People are rational decision-makers,

seeing the consequences of their and others’ actions.

Implication = Anyone can do anything that’s not

illegal. The Law of the Concrete Jungle

Lenses  of  Sustainability  The  Contractual  Perspec.ve  

Value = Well-being of all people (others) Belief = People have bounded rationality;

multiplicity of causes Implication = People have a positive responsibility for

the immediate and future consequences of their actions.

Lenses  of  Sustainability  The  Consequen.al  Perspec.ve  

Value = Well-being of all people (others) Belief = What comes to one person is the

result of the actions of many other people, seen or unseen.

Implication = People have a positive responsibility

for the welfare of the others in their society.

Lenses  of  Sustainability  The  Communal  Perspec.ve  

Value = Freedom of choice, private property. Belief = Each person knows what is in his or

her best interests. Implications = Individuals have the right to satisfy

their desires now.

Lenses  of  Sustainability  The  Immediacy  Perspec.ve  

Value = Future generations have the same right to happiness as the present generation.

Belief = The consequences of present

actions will be felt by future generations. Implication = Treat future generations with the

same consideration that we give to our own generation.

Lenses  of  Sustainability  The  Inter-­‐genera.onal  Perspec.ve  

Value = Tradition of knowledge (culture) passed down from parents to children.

Belief = Over time, people learn what is best for

them. Culture and religion preserve a wisdom of life that may not be obvious to all individuals in the present.

Implication = Preservation of cultural and religious

integrity.

Lenses  of  Sustainability  The  Cultural  Perspec.ve  

Sustainability  The  Domains  of  the  Triple  Bo8om  Line  

Sustainability  The  True  Hierarchy  of  Domains  

“Earth provides enough to satisfy every man’s need, but not every

man’s greed."

Father  of  the  Na5on,  Mahatma  Gandhi  (1869  –  1948)  

Sustainability  The  Social  Responsibility  View  

“The concern for man and his destiny must always be the chief interest of all technical effort. Never forget it among your diagrams and equations."

Scien5st  extraordinaire  Albert  Einstein  (1879  –  1955)

01/30/2012  

“Only within the moment of time represented by the present century has one species – man – acquired significant power to alter the nature of his world."

Poet and Nature Advocate

Rachel Carson (1907 – 1964)

01/09/2012  

Common man with an uncommon vision, Cree Indian (19th century)

“Only  aDer  the  last  tree  has  been  cut  down,    Only  aDer  the  last  river  has  been  poisoned,    Only  aDer  the  last  fish  has  been  caught,    Only  then  will  you  find  you  cannot  eat  money“  

Sustainability  The  Environmental  Responsibility  View  

Ø Classical Environmentalism Do not pollute Compensate for the “external” effect.

Ø Neo-classical Environmentalism

Do not waste They are not priced at their social cost.

Ø Modern Environmentalism

Do not be cruel to other beings; preserve biodiversity. An ethical (as opposed an economic injunction

Environmental  Responsibility  Perspec*ve  over  the  ages  

"It takes twenty years to build a reputation, and five minutes to ruin it."

Unilever  -­‐  matching  a  bold  vision  of  “long-­‐term  capitalism”  sets  out  ambi5ous  goals  for  2020:    

World’s  richest  man  &  investment  icon,  Warren  Buffet  

Why  go  beyond  compliance?    To  protect  investments!  To  lead  markets!  

01/09/2012  

CEO  of  Unilever,  and  winner  of  the  2012  CK  Prahlad  Sustainability  Leadership  –  award  Paul  Polman    

“..halving  the  company’s  overall  environmental  imprint,  helping  over  one  billion  people  take  ac5on  to  improve  their  health  and  well-­‐being,  and  sourcing  100%  of  its  agricultural  raw  materials  sustainably.”  

Sustainability  The  Economic  Responsibility  View  

““I  believe  it  is  my  duty  to  make  money  and  s*ll  more  money  and  to  use  the  money  I  make  for  the  good  of  my  

fellow  man,  according  to  the  dictates  of  my  conscience”    

Oil  Magnate,    John  D.  Rockefeller,  Sr.  (1839  –  1937)  

“Is the rich aware of how four billion out of the world’s six billion live? If that was so, we would want to help out, we’d want to get involved."

Sohware  Magnate,  Bill  Gates  (1955  –  )

01/30/2012  

Sustainability  The  Corporate  Philanthropy  View  

Business  Age   Stage  of  CSR   Modus  Operandi   Key  Enabler   Target  Stakeholder  

Greed   Defensive   Ad  hoc   Investments   Shareholders  

Philanthropy   Charitable   Dona5ons   Projects   Communi5es  

Marke5ng   Promo5onal   Public  Rela5ons   Media   Public  

Management   Strategic   Management  Systems  

Codes   Shareholders  NGOs  

Responsibility   Systemic   Business  Models   Products   Society  and  Ecosystem  

Stakeholder    primacy  

Shared  Value   Philanthrocapitalism  /Innova5on  

Social  Impact  &  Equity    

Current/Future  Genera5ons**  

“The  Age  of  Responsibility”  Visser,  W.,  2011,  Part  II  –  The  Ages  and  Stages  of  CSR  

Sustainable  Business  The  Progress  of  Corporate  Social  Responsibility  

*  

01/30/2012  

Age   Stage   Modus   Enabler   Target  

Sustainable  Business  Moving  towards  a  Level  Playing  Field  

   

Corpora8on  

Globaliza5on  

Digital  Connec5vity  

Resource  Scarcity  

Ecological  Decline  

Disparate  Prosperity  

Accelerated  Consump5on  

Globaliza8on:    e.g.  Money  flow  across  borders  3  5mes  global  GDP  Digital  Connec8vity:  e.g.  Internet  and  Mobile  phone  users  have  grown  to  2  and  5  billion  respec5vely  in  2010    Disparate  Prosperity:  Persistent  poverty  is  bad  for  business,  increases  risks  Ecological  Decline:  e.g.  Ecological  damage  US$2.15  trillion  in  2008  Accelerated  Consump8on:  e.g.  total  energy  consump5on  up  47%  while  popula5on  is  up  26%  to  7  billion    Resource  Scarcity:  e.g.  4  billion  people  live  in  water  stressed  or  water  scarce  areas  

KPMG  Interna5onal,  “Building  Business  Value  in  a  Changing  World”,  hpp://www.kpmg.com/Global/en/IssuesAndInsights/Ar5clesPublica5ons/Documents/building-­‐business-­‐value.pdf  

Sustainable  Business  Shareholder  to  Stakeholder  Primacy  

Corpora5on  

Shareholders    

Employees  

Others  Community  

Government  

Social  contract  has  changed:  ü Principal  driver  of  societal  transforma5on  is  the  recogni5on  that  business  is  no  longer  the  sole  property  or  interest  of  a  very  few  ü Public  interest  in  business  ethics  and  social  responsibility  has  been  con5nually  changing  for  40  years  ü Corpora5on  is  a  centerpiece  of  a  complex  society;  that  proac5vely  meets  stakeholder  expecta5ons  ü Impetus  of  distribu5ve  jus5ce  and  inter-­‐genera5onal  equity  

Sustainable  Business  Economic  Value  through  Societal  Value  

Companies  create  economic  value  by  crea5ng  societal  value.  They  need  to  o  Reconceive  products  and  markets  ü  (Food  cos.)  Move  to  beper  nutri5on  ü  Harness  digital  intelligence  to  

economize    consumer  power  usage  ü Make  safer  &  eco-­‐friendly  products  

o  Build  suppor8ve  industry  clusters  ü  Create  open/transparent  markets:  

provides  beper  incen5ves  for  quality,  efficiency  &  reliability  of  supplies  

ü  Promote  eco-­‐social  development:  leads  to  seeding  new  companies  and  to  increased  supply  of  skilled  workers  

o  Redefine  produc8vity  in  the  value  chain  

ü  Reduce  excess  energy,  natural  resource  or  water  use.    

ü  Do  not  marginalize  small  suppliers  -­‐  it  hurts  company  procurement  

ü  Distribu5on  via  web!      o  Implica8ons  for  Governments  ü  From  the  perspec5ve  of  society,  it  is  

immaterial  as  to  what  type  of  organiza5on  creates  value  

ü  Good  Govt.  regula5on  encourages  companies  to  pursue  shared  value.  

ü Wrong  regula5on  causes  trade-­‐offs  between  economic  and  social  goals  

01/09/2012   *Porter,  M.E.,  HBS,    et  al,  “Crea*ng  Shared  Value”,  HBR,  Jan.-­‐  Feb.  2011  

“Low-­‐income  markets  present  a  prodigious  opportunity  for  the  world’s  wealthiest  companies  –  to  seek  their  fortunes  and  bring  prosperity  to  the  aspiring  poor”*    Tier  5  Huge  Untapped  

Role  of  Private  Sector  o  Poor  as  Producers  and  not  as  Consumers  –  

ü  Avoid  exploita5on  ü  Create  labor  intensive  jobs  ü  Employability/produc5vity  ü  Enable  mobility  &  transi5on  

o  Lower  Price  and  Lower  Quality:  a  price  quality  tradeoff,  be  transparent  

Role  of  Public  Sector  o  Service:  educa5on,  health  care,  safety  and  

security  o  Infrastructure:  sanita5on,  safe  drinking  

water,  transporta5on,  electricity  o  Regula5on  o  Equity  -­‐  distribu5ve  and  intergenera5onal  

01/30/2012  

Sustainable  Business  Innova*ng  at  the  Base  of  the  Pyramid  

Fortune  at  the  Bopom  of  the  Pyramid  by  C  K  Prahlad,  U  Michigan  and  Stu  Hart,  Cornell,,  2001  

“Figh5ng  Poverty  Together:  Rethinking  Strategies  for  Business,  Governments  and  Civil  Society  to  Reduce  Poverty”  by  Karnani,  Aneel,  Palgrave  Macmillan,  2011  

TAP  

But  be  Ethical  

Sustainable Business The Dominant Global Trends

Climate  Change  

Energy  and  Fuel  Scarcity  

Material  Resource  Scarcity  

Water  Scarcity  

Popula5on  Growth  

Urbaniza5on  

Wealth  

Food  Security  

Eco-­‐system  Decline  

Deforesta5on  

KPMG  Interna5onal,  “Building  Business  Value  in  a  Changing  World”  hpp://www.kpmg.com/Global/en/IssuesAndInsights/Ar5clesPublica5ons/Documents/building-­‐business-­‐value.pdf  

Sustainable  Business  The  Stages  of  Corporate  Response  

Integrate and analyze data, implement audits, management

systems & metrics

Automate environmental data management, corrective actions and reporting chores

Governance Carbon asset mgmt.,

Green market opportunity

Risk Management Audits, Metrics

Compliance EPA (1986)

Organization culture drives level and timing

Apply decision analysis Implement green strategy

The  linear  and  unsustainable  materials  economy  “cradle  to  grave”  

Cradle  to  Grave  Philosophy  Waste  =  Toxin  

 

Cradle  to  Cradle  Philosophy  Waste  =  Food  

 

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Cradle  to  Grave  The  Linear  Life  Cycle  

Cradle to Cradle The Circular Life Cycle

Shallow  versus  Deep  Sustainability  

Sustainable  Business  Risks  and  opportuni*es  

39  

Type Risk Opportunity

Operational • Increased scarcity / cost of inputs • Reduced quality of inputs • Disruption to business operations

• Increased resource use efficiency

Regulatory and legal

• Stricter environmental policies & legislation

• Fines • Permit or license suspension

• License to expand operations • Ability to shape government policy

Reputational • Damage to brand or image • Challenge to “license to operate”

• Improved or differentiated brand

Market and product

• Changes in customer preferences

• New products or services • Markets for certified products • Markets for ecosystem services

Financing • Higher cost of capital • More rigorous lending requirements

• Green banking

Laszlo  and  Zhexembayava,  Embedded  Sustainability  (2011)  

Harnessing  Sustainable  Value  

Sustainability  Leadership  The  Framework  

Appreciation

Connectedness

Inspiration

Heritage

Visualization

Stewardship

Mission

Vision

Actualization

Sustainability

Strategy

Reinvention

Connectedness  Mar*n  Luther  King  

    It really boils down to this: that all life is interrelated. We are all caught in an inescapable network of mutuality, tied together into a single garment of destiny.

Whatever affects one directly, affects all indirectly. We are made to live together because of the interrelated structure of reality.

Before you finish eating breakfast in the morning, you’ve depended on more than half the world. This is the way our universe is structured; this is its interrelated quality.

Sustainability  and  Natural  Law  

ü Humans, along with all other creatures, have an innate sense of self-preservation. We don’t put ourselves in harm’s way or hurt ourselves intentionally.

ü  So why do we behave, individually, and as a society, in a way that is self-destructive?

ü  Everything that we need for our survival and well-being depends - directly or indirectly - on our natural environment. Thus, Natural Law is that which makes everything sustainable. Then, why do we violate it?

ü When we are tired or ill, our thoughts and vision are not clear. We then make mistakes.

ü  The shift to sustainability has to take place on both the individual and collective level.

Principles  of  Natural  Law  

ü Nature takes the path of least action

ü Do Less and Accomplish More

ü Nature knows best how to organize: bio-mimicry

ü Giving is the Basis of Receiving – principle of reciprocity

ü Sustainability is based on action in accord with natural law. This is “deep” sustainability.

ü When established in our Being, we spontaneously perform the right actions

The Drivers of Sustainability Science or Consciousness?

Ø The debate over global warming has settled down.

Ø 99 % of the scientists acknowledge a relationship between climate change and human-induced CO2 concentrations

Ø Why not just focus on environmental science?

Ø Do we need to comprehend the depths of psychology before we understand sustainability?

The Phenomenon of Consciousness

ü Consciousness, in its pure and most settled state, is the source and foundation of the universe.

ü Physicists have described this source of creation as the unified field of all the laws of nature.

ü  If we could contact that source, we could have access to the unlimited power of natural law.

ü Consciousness or awareness of the individual can be limited or narrow, but it can also expand to include the universe. It can swing from point to infinity.

ü As our consciousness expands, our sense of Self is broadened to include all the world and its beings around us

The Foundation of Sustainability Expansion of Consciousness

True sustainability is based upon the expansion of the level of our consciousness, awareness and the deep experience of interconnectedness among all that there is ……..

Water the root to enjoy the fruit

Being à Thinking à Doing

Ø  The most effective way to cultivate the virtues responsible for environmental sustainability is to develop the consciousness of the individual.

Ø  The development of higher states of consciousness results in a condition where a person most clearly feels the roles that are natural for oneself (dharma).

Ø  The person is then able to see the wholeness of intelligence in nature that integrates different qualities of natural law.

Everything is so intimately connected with every other thing in creation that it is not possible to distinguish completely the existence of one from the other. The influence of one thing on every other thing is so universal that nothing could be considered in isolation. The universe reacts to an individual action…Therefore, the great responsibility of right and wrong lies in the individual him[or her]self on the level of his[or her] consciousness.

Conscious  Connectedness  Maharishi  Mahesh  Yogi    

THANK YOU !!