Irom CSk to Susta|nab|e 8us|ness:

What are compan|es do|ng, and why

1oby Webb, lounder, LLhlcal Corporauon and SLakeholder
lnLelllgence. LecLurer, CorporaLe 8esponslblllLy, 8lrkbeck,
unlverslLy of London

1ecnolglco de MonLerrey, Mexlco, SepLember 2013

1oblas.Webb[sLakeholderlnLel.com

1oblaswebb.blogspoL.com
What |s CSk today?
CS8 lS nC1 PlLAn1P8C?
LLhlcs * lnLegrlLy * roducLs *
Servlces * Consumers * lnvesLors
* Anu-corrupuon * Suppllers *
1ax paymenLs * MarkeL LLhlcs *
Lmployees * Clvll socleLy *
ollucs and Lhe LnvlronmenL.
and more.
CS8 ls noL abouL how you glve
your money away
lL ls abouL how you make lL
c5k ls oboot bow yoo too yoot
bosloess wbeo oo-ooe ls
wotcbloq
What are the CSk trends today?
More compllance
8euer governance
lmproved LrusL
CosL reducuon
Co-opeuuon
What are the (add|nona|) trends
tomorrow?
8esource consLralnLs
(populauon, maLerlals,
cllmaLe change)
Llcence Lo CperaLe
Collaborauon for
sysLems change
lnsuLuuonal, Lrade and
pollucal lmprovemenLs
lmpacL measuremenL
Who are some of the |eaders?
Un||ever - 1en year [ourney
Lowards susLalnable growLh - 1he
Susta|nab|e L|v|ng |an
Applles rlghL across Lhe va|ue
cha|n
8esponslblllLy for own d|rect
operanons (soclal/envlro)
Also for supp||ers, d|str|butors
and how consumers use unllever
brands
underplnnlng Lhe lan are around
60 very Lough bus|ness targets








So what do they actua||y want to do?

8rlng safe dr|nk|ng water Lo 300 mllllon people
lncrease proporuon of producL poruollo LhaL meeLs h|ghest
nutr|nona| standards (22 ln 2010 Lo 23 ln 2011)
Palve Lhe greenhouse gas |mpact of producLs across Lhe
llfecycle by 2020
2020: Source 100 of agr|cu|tura| raw mater|a|s susLalnably
(36 ln 2012)
8us|ness 8enehts of Susta|nab|||ty








Marks & Spencer
Launched |an A ln 2007.
100 commlLmenLs Lo
achleve ln 3 years
now exLended lan A Lo
180 commlLmenLs Lo
achleve by 2013.
139 achleved so far
ulumaLe goal of becomlng
Lhe wor|d's most
susta|nab|e ma[or reta||er
SusLalnablllLy work has
dr|ven prohts as well as cut
costs
2012: 13Sm NL1 8LNLII1
(29 lncrease year on year)
Launched |n 2007: "1en years of |ncrementa||sm |ead|ng to transformanon"
Who are some of the |eaders?
Genera| L|ectr|c: Lco-
lnnovauon as buslness
sLraLegy
Lcomag|nanon:
MalnsLream focus on
buslness lnnovauon and
susLalnable lndusLrlal
producLs


52.3 b||||on lnvesLed ln
Lcomaglnauon" producLs
ln 2011
8educed GnG em|ss|ons
30 slnce 2004
8educed wastewater by
43 slnce 2006
Who are some of the |eaders?
2011 - S|emens reorganlsed
operauons lnLo four core
buslness unlLs:

Lnergy - emclency ln energy
producuon and dlsLrlbuuon,
lncludlng oll, gas and
renewables
nea|thcare - supplylng
Lechnology (medlcal
lmaglng equlpmenL and
healLhcare l1)


Industry - provldlng
soware and Lechnology
servlces
Infrastructure and c|nes -
susLalnable Lechnologles
(smarL grld equlpmenL and
rall vehlcles)

S|emens and Green 8us|ness Strategy
2011: roducLs and
soluuons ln
LnvlronmenLal oruollo
generaLed revenue of
t29.9 bllllon: 41 of tota|
revenue
Cb[ecuve: Crow annual
revenue Lo 40 b||||on by
2014 -wlLh new,
lnnovauve producLs and
excepuonal growLh ln
elds llke renewable
energy
Why do they choose to |ead?
unllever

Marks and Spencer

Ceneral LlecLrlc

Slemens


Secur|ng supp|y
Customer trust
Low carbon future
Urban|sanon

(1hese are noL Lhe only reasons!)
Why do they engage "stakeho|ders"?
Lmp|oyee engagemenL drlves lnnovauon and ldeas
NGC partnersh|ps brlng sclence, experlence, and credlblllLy
Commun|nes have lncreaslng power & lnuence
Soc|a| med|a means no company escapes scruuny
8lg buslness wanL a long Lerm vlslon from Governments:
And pollcles and lncenuves LhaL enable lnvesLmenL and
longer Lerm plannlng: So must |ead by examp|e
now do they engage w|th
stakeho|ders?
ulalogue wlLh c|v|| soc|ety
Consu|nng experts on
agrlculLure, LrusL, eLhlcs.
urbanlsauon, cllmaLe
change, energy fuLures
8y uslng gu|dance and
sLandards
LlsLenlng Lo Lhelr
emp|oyees
WaLchlng trends emerge








lSC 26000 Culdance 'SLandard'
now do CSk and Susta|nab|||ty |mprove 8us|ness?
Consumers wanL Lo trust brands, noL all Lhe producL deLall
Leadlng companles are turn|ng susta|nab|||ty |nto
opportun|ty all over Lhe world: WaLer, 1elecoms,
Commodlues, 8eLall, Mlnlng, ConsLrucuon.
9 bllllon people means less resources. lnnovauon wlll be
essenual. 1he C|rcu|ar Lconomy wlll be vlLally lmporLanL.
CorporaLe roles ln changlng lnemclenL sysLems wlll be vlLal:
1he wlnnlng companles recognlse CSk !" systems change
CS8 and SusLalnablllLy = Smarter bus|ness
narvard 8us|ness Schoo|
rofessor kobert Lcc|es,
narvard 8us|ness Schoo|
Is CSk]susta|nab|||ty prohtab|e?
London 8uslness School & Parvard 8uslness School research:

llrms wlLh beuer CS8 performance face s|gn|hcant|y |ower
cap|ta| constra|nts
8euer sLakeholder engagemenL and Lransparency around CS8
performance, are lmporLanL ln furLher reduc|ng cap|ta|
constra|nts
1haL Lhe relauon ls drlven by boLh Lhe soc|a| and Lhe
env|ronmenta| dlmenslon of CS8
"cOklOkA1 5OclAl k5lON5l8lll1 ANu Acc55 1O llNANc" Avolloble ot. bup.//ssto.com/obsttoct=1847085
CLCs agree w|th a|| th|s.
un Clobal CompacL and
AccenLure CLC sLudy 2013:

! 73 CLCs 1-Lo-1s
! 1,000 CLC responses
! 103 counLrles
! 27 lndusLry secLors

lound two c|ear CLC
pr|or|nes for Lhe fuLure:


Cne: 1he need for
governmenLs Lo lnLervene Lo
allgn global markeLs
allowlng companles Lo
compeLe eecuvely Lo drlve
susLalnablllLy"

1wo: 1o move beyond
lncremenLal change Lo
Lransformauon LhaL dellvers
boLh susLalnablllLy
leadershlp and value
creauon"

In conc|us|on.
CS8 Loday = Susta|nab|e
8us|ness Lomorrow. 8U1:
SusLalnable buslness does
noL happen wlLhouL
Strategy
SLraLegy does noL happen
wlLhouL good Governance
Cood governance does noL
happen wlLhouL Lth|cs
LLhlcs do noL happen
wlLhouL Stakeho|der
Lngagement
My nal polnL: Successful
susLalnable buslness ls
based on boLh eth|cs and
open and conunuous
engagement wlLh socleLy
Thank you!

1oblaswebb.blogspoL.com