leading good companies

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Leading GoodLeading Good

CompaniesCompaniesRobert H. Girling Ph.D.Robert H. Girling Ph.D.

February 2010February 2010


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Paul Hawkens QuestionPaul Hawkens Question

How do we saveHow do we savebusiness?business?


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The Challenges We FaceThe Challenges We Face

EconomicEconomic

Social/HumanSocial/Human

EnvironmentalEnvironmental

GlobalGlobal


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THE GLOBAL CHALLENGETHE GLOBAL CHALLENGE

4

Income poverty:

Over 2 billion people live on less than $2/day

Energy poverty:

1.6 billion people today without access to electricity Mobility poverty:

900 million people without access to transport

Waterand Health poverty:

1.8 million deaths per year due to lack of sanitation,poor hygiene and unsafe drinking water.


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The Future Society: UrbanThe Future Society: Urban

5

5

Chicago

Berlin

Paris

New York

London

1900

0 5 10 15 20 25 30 35 40

Mexico City

Dhaka

Delhi

Mumbai

Tokyo

2020

Billions of inhabitants

47% urban

60% urban

1970 2000 2030

36% urban

urban

rural

70% urban

3.2 3.32.9

5.0

1.3

2.4 2.8

6.4

2050Source: United Nations, World Urbanization Prospects:The 2007 Revision

Source: Citymayors statistics, 2008

Growth of mega-cities

70% urban in 2050


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What is the Responsibility ofWhat is the Responsibility of

Business?Business? 2020thth CenturyCentury----

Increase profitsIncrease profitswithout deceit orwithout deceit or

fraud.fraud. Milton FriedmanMilton Friedman

Greed is good!Greed is good!

2121stst CenturyCentury-- KeepKeepus from destroyingus from destroyingourselves.ourselves. JefferyJefferyHollender, CEO SeventhHollender, CEO SeventhGenerationGeneration


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ECOLOGY OF COMMERCEECOLOGY OF COMMERCE

Reduce consumptionReduce consumption

Provide sustainable jobsProvide sustainable jobs

Restore ecosystemsRestore ecosystems Live on current incomeLive on current income

Honor the market principleHonor the market principle

Create beauty and funCreate beauty and fun


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How can society encourageHow can society encouragebusinesses to address thesebusinesses to address theseissues?issues?


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Some Good Companies?Some Good Companies?

Who would you include?Who would you include?


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ManufacturingManufacturing

InterfaceInterface

Seventh GenerationSeventh Generation

TerracycleTerracycle

DupontDupont

Traditional MedicinalsTraditional Medicinals

Indigenous DesignsIndigenous Designs

Toms ShoesToms Shoes

PatagoniaPatagonia


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Interfaces Seven FrontsInterfaces Seven Fronts

Eliminate WasteEliminate Waste

Generate no harmful emissionsGenerate no harmful emissions

Use renewable energy sourcesUse renewable energy sourcesAchieve closed loop recyclingAchieve closed loop recycling

Use resourceUse resource--efficient transportefficient transport

Engage stakeholdersEngage stakeholders Pioneer sustainable commercePioneer sustainable commerce


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Banking and FinanceBanking and Finance

SouthShore BankSouthShore Bank

Wainright Bank andWainright Bank andTrust CoTrust Co

Triodos BankTriodos Bank


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Agriculture and FoodAgriculture and Food

Strauss CreameryStrauss Creamery

CleanfishCleanfish

GuayakiGuayaki


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Services and DistributionServices and Distribution

Give Something BackGive Something Back

Osmosis SpaOsmosis Spa

Better World TelcomBetter World Telcom


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Housing and ConstructionHousing and Construction

Sonoma MountainSonoma MountainVillageVillage

Serious MaterialsSerious Materials

Green ValleyGreen ValleyConstructionConstruction

Real GoodsReal Goods


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Fourth SectorFourth Sector

Aravind Eye ClinicAravind Eye Clinic

Delancey StreetDelancey Street

Grameen FundGrameen Fund

KivaKiva


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Question Marks?Question Marks?

MedtronicMedtronic

NikeNike

UnileverUnilever TargetTarget

WalmartWalmart

HSBCHSBC


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Consumer ResponseConsumer Response


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ProfitabilityProfitability

A comprehensive analysis of over50 studiesA comprehensive analysis of over50 studies

CSR v. ProfitabilityCSR v. Profitability

33 studies33 studies ----positive relationshippositive relationship

14 studies14 studies ---- no effect or inconclusiveno effect or inconclusive 5 studies5 studies ---- negative relationship.negative relationship.


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What is your model of goodWhat is your model of goodbusiness?business?


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The Sustainability Sweet SpotThe Sustainability Sweet Spot

HighHighProfitabilityProfitability

Savitz andSavitz andWebersWebers

Sweet SpotSweet Spot

Low ProfitabilityLow Profitability

Low SocialLow SocialBenefitBenefit

High SocialHigh SocialBenefitBenefit


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Hawkens Sustainable CompanyHawkens Sustainable Company

SustainableSustainableJobs andJobs andRevenuesRevenues

SustainableSustainableCompaniesCompanies

UnsustainableUnsustainableJobs orJobs orRevenuesRevenues

ExploitativeExploitative RestorativeRestorative


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BB--CorporationsCorporations

1.1. ProfitableProfitable-- earn revenue by provided neededearn revenue by provided neededproductsproducts

2.2. CommunityCommunityshare of net profits given toshare of net profits given to

charitiescharities3.3. EnvironmentEnvironment respect the environmentrespect the environment

4.4. PeoplePeople treat employees as partnerstreat employees as partners

5.5. SourcingSourcing source locally, organic, fair tradesource locally, organic, fair trade

and green where possibleand green where possible6.6. GovernanceGovernance multiple stakeholder groups aremultiple stakeholder groups are

represented on the Boardrepresented on the Board


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What are the BenefitsWhat are the Benefits

Improved corp. healthImproved corp. health

Increased employee moraleIncreased employee morale

Improved customer loyaltyImproved customer loyalty Lower overhead and operational expensesLower overhead and operational expenses

Improved vendor and supplierImproved vendor and supplier

relationshipsrelationships


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What does it take to lead a goodWhat does it take to lead a goodbusiness?business?


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What are the Challenges toWhat are the Challenges toBusiness leaders?Business leaders?

Seeing the bigger pictureSeeing the bigger picture

Facing the truthFacing the truth

Setting the intentSetting the intentAccountabilityAccountability

Developing metricsDeveloping metrics


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What resources are available toWhat resources are available tohelp you?help you?

BEABEA

WBCSDWBCSD

BSR and SVNBSR and SVN

UN Global CompactUN Global Compact

SEC 2010SEC 2010

leading good companies

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