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

Instrumental - Rela5onship with other humans and the natural world is to

be used for personal pleasure and/or prot
Anthropocentric - humans are central locus of value and decision making
Mechanis8c - Reality is looked upon using the machine as metaphor
Individualis8c - Decisions are generally made by individuals for individuals
Dualis8c - Things are categorized using an either/or mentality
Control Variances within a system are to be brought under control
Ra8onality Reason and logic are the only valid modes of knowing
Determinis8c - By using the above logic, all the things in reality may be
understood
Technology-centric - Any problems that is faced by human society can be
solved by using markets or technology

Impact of the modern worldview

The Industrial Revolution and
the rapid pace of technological
development has led to our
present unsustainable way of
life.
Our growth has neither been
balanced, nor in accord with
all the laws of nature.
On the other hand, nature (left
to its own devices) is
sustainable.

Sustainability
A deni*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

Lenses of Sustainability
The Ownership Perspec.ve
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 Stewardship 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 Anthropocentric Perspec.ve

Value =

Mans life with free will.

Belief =

Mankind is unique in the universe (e.g.

by virtue of mans free will), standing
apart from it yet acting in it.

Implication = Man has dominion over nature.

Lenses of Sustainability
The Eco-centric 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 Darwinian 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 Contractual 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 thats not

illegal.
The Law of the Concrete Jungle

Lenses of Sustainability

The Consequen.al 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 Communal 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 Immediacy 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 Inter-genera.onal 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 Cultural 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.

Sustainability

The Domains of the Triple Bo8om Line

Sustainability

The True Hierarchy of Domains

Sustainability

The Social Responsibility View

Father of the Na5on,

Mahatma Gandhi
(1869 1948)

Earth provides enough

to satisfy every mans
need, but not every
mans greed."

01/30/2012

Scien5st extraordinaire
Albert Einstein
(1879 1955)

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."

Sustainability

The Environmental Responsibility View

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 sh has been caught,
Only then will you nd you cannot eat
money

01/09/2012

Poet and Nature

Advocate
Rachel Carson
(1907 1964)

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."

Environmental Responsibility
Perspec*ve over the ages
Classical Environmentalism
Do not pollute
Compensate for the external effect.

Neo-classical Environmentalism
Do not waste
They are not priced at their social cost.

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

Sustainability

The Economic Responsibility View

Worlds
richest man &
investment
icon, Warren
Buet

"It takes twenty years to build a

reputation, and five minutes to
ruin it."
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
Unilever - matching a
bold vision of long-term
capitalism sets out
ambi5ous goals for 2020:
..halving the companys 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 Corporate Philanthropy View

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

01/30/2012

Sohware Magnate,
Bill Gates
(1955 )

Is the rich aware of how four

billion out of the worlds six
billion live? If that was so, we
would want to help out, wed
want to get involved."

Sustainable Business

The Progress of Corporate Social Responsibility

*

Age

Stage

Modus

Enabler

Target

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 Social Impact

& Equity
/Innova5on

Current/Future
Genera5ons**

The Age of Responsibility Visser, W., 2011, Part II The Ages and Stages of CSR
01/30/2012

Sustainable Business

Moving towards a Level Playing Field

Globaliza5on
Accelerated
Consump5on

Digital
Connec5vity

Corpora8on
Disparate
Prosperity

Resource
Scarcity
Ecological
Decline

Globaliza8on: e.g. Money ow 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

Shareholders

Government

Employees
Corpora5on

Community

Others

Social contract has changed:

Principal driver of societal
transforma5on is the recogni5on
that business is no longer the
sole property or interest of a
very few
Public interest in business
ethics and social responsibility
has been con5nually changing
for 40 years
Corpora5on is a centerpiece of
a complex society; that
proac5vely meets stakeholder
expecta5ons
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
(Food cos.) Move to beper nutri5on
Harness digital intelligence to
economize consumer power usage
Make safer & eco-friendly products

o Redene produc8vity in the value

chain
Reduce excess energy, natural
resource or water use.
Do not marginalize small suppliers - it
hurts company procurement
Distribu5on via web!

o Build suppor8ve industry clusters
o Implica8ons for Governments
Create open/transparent markets:
From the perspec5ve of society, it is
provides beper incen5ves for quality,
immaterial as to what type of
eciency & reliability of supplies
organiza5on creates value
Promote eco-social development:
Good Govt. regula5on encourages
leads to seeding new companies and
companies to pursue shared value.
to increased supply of skilled workers Wrong regula5on causes trade-os
between economic and social goals
01/09/2012

*Porter, M.E., HBS, et al, Crea*ng Shared Value, HBR, Jan.- Feb. 2011

Sustainable Business

Innova*ng at the Base of the Pyramid

Low-income markets present a
prodigious opportunity for the worlds
wealthiest companies to seek their
fortunes and bring prosperity to the
aspiring poor*
TAP
Tier 5 Huge Untapped

o
o
o
o
o

Fortune at the Bopom of the

Pyramid by C K Prahlad, U Michigan
and Stu Hart, Cornell,, 2001
01/30/2012

Role of Private Sector

Poor as Producers and not as Consumers
Avoid exploita5on
Create labor intensive jobs But be
Employability/produc5vity Ethical
Enable mobility & transi5on
Lower Price and Lower Quality: a price
quality tradeo, be transparent
Role of Public Sector
Service: educa5on, health care, safety and
security
Infrastructure: sanita5on, safe drinking
water, transporta5on, electricity
Regula5on
Equity - distribu5ve and intergenera5onal

Figh5ng Poverty Together: Rethinking

Strategies for Business, Governments and Civil
Society to Reduce Poverty by Karnani, Aneel,
Palgrave Macmillan, 2011

Sustainable Business
The Dominant Global Trends
Climate Change

Urbaniza5on

Energy and Fuel

Scarcity

Wealth

Material Resource
Scarcity

Food Security

Water Scarcity

Eco-system Decline

Popula5on Growth

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

Governance
Carbon asset mgmt.,
Green market opportunity
Apply decision analysis
Implement green strategy

Risk Management
Audits, Metrics

Integrate and analyze data,

implement audits, management
systems & metrics
Automate environmental data management,
corrective actions and reporting chores
Organization culture drives level and timing

Compliance
EPA (1986)

Cradle to Grave Philosophy

Waste = Toxin

The linear and unsustainable materials economy

cradle to grave

Cradle to Cradle Philosophy

Waste = Food

35

Cradle to Grave

The Linear Life Cycle

Cradle to Cradle
The Circular Life Cycle

Shallow versus Deep Sustainability

Sustainable Business
Risks and opportuni*es
Type
Operational

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

Opportunity
Increased resource use
efficiency

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

Regulatory
and legal

Green banking
39

Harnessing Sustainable Value

Laszlo and Zhexembayava,

Embedded Sustainability (2011)

Sustainability Leadership
The Framework

Appreciation

Visualization

Actualization

Connectedness

Stewardship

Sustainability

Inspiration

Mission

Strategy

Heritage

Vision

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,
youve depended on more than half the world. This is
the way our universe is structured; this is its
interrelated quality.

Sustainability and Natural Law

Humans, along with all other creatures, have an innate sense
of self-preservation. We dont put ourselves in harms way or
hurt ourselves intentionally.
So why do we behave, individually, and as a society, in a way
that is self-destructive?
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?
When we are tired or ill, our thoughts and vision are not clear.
We then make mistakes.
The shift to sustainability has to take place on both the
individual and collective level.

Principles of Natural Law

Nature takes the path of least action
Do Less and Accomplish More
Nature knows best how to organize:
bio-mimicry
Giving is the Basis of Receiving
principle of reciprocity
Sustainability is based on action in
accord with natural law. This is deep
sustainability.
When established in our Being, we
spontaneously perform the right actions

The Drivers of Sustainability

Science or Consciousness?
The debate over global warming
has settled down.
99 % of the scientists
acknowledge a relationship
between climate change and
human-induced CO2
concentrations
Why not just focus on
environmental science?
Do we need to comprehend the
depths of psychology before we
understand sustainability?

The Phenomenon of Consciousness

Consciousness, in its pure and most settled state, is the
source and foundation of the universe.
Physicists have described this source of creation as the
unified field of all the laws of nature.
If we could contact that source, we could have access to
the unlimited power of natural law.
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.
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 Thinking Doing
The most effective way to cultivate the virtues
responsible for environmental sustainability is to
develop the consciousness of the individual.
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).
The person is then able to see the wholeness of
intelligence in nature that integrates different qualities
of natural law.

Conscious Connectedness
Maharishi Mahesh Yogi

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 actionTherefore,
the great responsibility of right and wrong lies in the
individual him[or her]self on the level of his[or her]
consciousness.

THANK YOU !!