Post on 09-Jan-2017
CSR in the Ecological EnvironmentJessica Gahtan and Alec Bertok
What does “CSR in the Ecological Environment” mean?
DEEPER ELEMENTS OF SUSTAINABILITY
CLIMATE CHANGE
BIODIVERSITY
RESOURCESCARCITY
AND SECURITY
NECESSARY PART OF BUSINESS
RECYCLING
WASTE MINIMIZATION
ENERGY CONSERVATION
POLLUTION PREVENTION
Emerging economies are
developing at an accelerating pace.
Ability of future generations to
sustain themselves is threatened.
Population growth rates are
rising.
A CREATIVE DIGITAL AGENCY FOUNDED ON STRATEGIC THINKING AND CLIENT SERVICES
EXCELLENCE.Why do we need to care?
Carrying capacity of the world is overstressed.
Ensure resource security and
resource justice.
What can firms do?
Pollution prevention.
Respond to natural disasters.
Innovate in products,
processes, and services.
Use natural resources efficiently & minimize waste.
Establish product stewardship.
Manage climate change.
Opportunity for: REVENUE GROWTH
Why should firms care?
COST CUTTING
RE-ENGINEERING
RISK REDUCTION
World of commerce• Includes developed and developing
countries• Responsible for 75% of energy and
resource consumption worldwide
Traditional village based• Subsistence oriented, rural life• Highest population growth • Rural exodus
Survival Economy Nature’s Economy
The global interdependencies
Market EconomyNatural systems• Finite and renewable resources• Fresh water depletion• Soil erosion
Soil loss
What problems exist?
Industrial emissions
Minority employment
Toxic materials
Overexploitation of renewable
resourcesContaminated
sites
Dung and wood burning
Lack of sewage treatment
Shortage of skilled labour
Industrial emissions
Deforestation
Income inequality
Rural exodus
Greenhouse gases
= AFFLUENCE (PROXY FOR CONSUMPTION)
EB = P x A x T= POPULATIONP
A
T
Environmental burden
= TECHNOLOGY (HOW WEALTH IS CREATED)
To lower the total environmental burden change the technology used to create the goods and services that constitute the world’s wealth.
#2STAGE
FOCUS: MINIMIZING/ELIMINATING WASTE BEFORE IT IS CREATED
• Proactive v. Reactive devision making• Profitable
FOCUS: ENVIRONMENTAL IMPACTS OF THE ENTIRE LIFE CYCLE OF A PRODUCT.
DESIGN FOR ENVIRONMENT: Creating products that are easier to recycle, reuse, recover, and dispose of.
PRODUCT STEWARDSHIP CLEAN TECHNOLOGY
Strategies for a sustainable world
POLLUTION PREVENTION
#3STAGE
#1STAGE
FOCUS: INVESTING IN (& DEVELOPING) SUSTAINABLE TECHNOLOGY.
• Shifting the technology base • From expense to invest
Sustainability vision
CLEAN TECHNOLOGY.
POLLUTION PREVENTION.
SUSTAINABILITY VISION.
PRODUCT STEWARDSHIP.
EXTERNALINTERNAL
TOMORROW
TODAY
• Response to physical effects of climate change
• Government policies & regulations• Stakeholder pressure and
perceptions
• Industry structure• Industry growth• Market pressures
Industry considerations Firm Specific & Corporate Factors
What impact corporate positions on climate change?
External Factors
• Position within supply chain• Market positioning• Degree of centralization and
culture • Extent of internalization of top
management
CompensationUtilizing technologies that reduce the harmful impact of
emissions.
InnovationThe development of new environmental technologies or services.
Strategies for positive climate change
Innovation + Compensation = Carbon NeutralityInvolves the complete elimination of emissions from products, activities, or the company overall.
Specific strategic options to address climate change
InternalCompany
VerticalSupply chain
Process improvement.New ways to use more energy efficiency.
Product development.Innovative, more energy efficient products are sold to and used by consumers.
Internal transfer of Emission Credits.Emission activities are transferred within the company.
Supply chain measures. Emission activities are transferred along the supply chain.
HorizontalBeyond the supply chain
New product/market combinations.Exploring new external product & market combinations.
Acquisition of emission credits.Interaction with other companies to transfer emissions and acquire credits.
Organization Innovation CompensationMain aim:
Let’s find out who has been paying attention!1. Go to https://kahoot.it (can be on your laptop or cell
phone)2. Type in the code3. Enter your nickname
https://play.kahoot.it/#/k/ee7713a7-‐41b8-‐4016-‐b37c-‐ad8a6a58e41c
case example:
✓ Support Civil Democracy
OUR SERVICESCase: Patagonia
Build the best product, cause no unnecessary harm, and use business to inspire and implement solutions to the environmental crisis.
Their Mission
✓ Influence other companies
✓ Do our penance
✓ Clean up our act
✓ Lead an unexamined life
Their Environmental Philosophy
5 Prongs:
Patagonia is a sports apparel company, founded in 1972.
InnovationEnvironmental impact
• Simple, functional, and multi-functional
Quality
• Industry leader• $3 Million/year R&D,
patents
OUR SERVICESCase: Patagonia
Product line (Stage 2: Stewardship)
• Employees receive paid sabbaticals
• $2k hybrid subsidy• By 2007:
• >5% turnover• 53% of employees
had been there more than 6 years
• Spend >1% of sales• Against using its
environmental initiatives as a selling tool
• Has attracted positive AND negative attention
• Stores represent brand• Use of catalogues - only
60% selling space
Production & Logistics
Sales Marketing
• Choose business partners by values (vertical implementation)
• 1% for the planet (horizontal implementation)
Human Resources
OUR SERVICESCase: Patagonia
Product line (Stage 2: Stewardship)
OUR SERVICESCase: Patagonia
Stage 3: Clean technology
Looking at every step of production.
All buildings owned are environmentally efficient.
Game time!1. Go to https://kahoot.it 2. Type in the code3. Enter your nickname
https://play.kahoot.it/#/k/58e697e2-‐d2f3-‐4086-‐9355-‐7ca24ce4958f
Are there any questions?