Charles O'Malley presentation IOD India 12 October 2012
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Presentation given at the IOD India 3rd Global Summit on Sustainability, London 12 October 2012
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Charles O'Malley presentation IOD India 12 October 2012
- 1. Presentation at IOD India 3rd Global Summit on Sustainability 11 October 2012 Board Strategies and Governance for Sustainable Value Creation Charles O’Malley
- 3. Fiddling while Rome burns?
- 4. The Context The Destination The Journey The Strategy The Prize The Summary
- 22. The Context The Destination The Journey The Strategy The Prize The Summary
- 25. The Context The Destination The Journey The Strategy The Prize The Summary
- 26. Transformation Changing markets and economic and social systems Innovation Creating opportunities Efficiency Reducing costs Reputation Protecting and improving reputation Risk Reducing risk Graphic: from Spiral Dynamics Adapted from : Bieker, T. , Institute for Economy and the Environment, University of St. Gallen 2002
- 27. Transformation Shaper of society Innovation Solving stakeholder challenges Efficiency Enlightened self-interest Reputation Short termist and laissez faire Risk Source: Johnson, G. Exploring Corporate Strategy. Pearson Education, 2007
- 28. Tools & techniques Culture Vision & leadership „Hardware‟ „Mindware‟ „Heartware‟ Vision Transformation Passion Collaboration Engagement Innovation Corporate culture Technology Efficiency Systems Reports Reputation PR Risk Risk management
- 30. Transformation Innovation Efficiency Most companies today are still in the Reputation process of moving from Level 1 to Level 3 Risk
- 31. The Context The Destination The Journey The Strategy The Prize The Summary
- 32. Paul Polman: Unilever was an „early adopter‟ of the principles of sustainability... we have embedded this thinking into the day-to-day activities of all our brands. Leadership We are not going further and committing to meet our ambitions for future growth objectives without increasing the overall environmental impact of the company across its value chain. Engagement Peter Bakker: Beyond just being a Integration CEO, I agree we all need to become much more concerned citizens of this planet. It‟s not going in the right direction at the moment. Accountability Indra Nooyi: Our basic belief – that companies today Collaboration must marry performance with ethical concerns – is resonating more than ever before... This acknowledges that businesses have a responsibility to the communities in which they operate, to the consumers Transparency they serve and to the environment whose resources they use.
- 34. Keith Weed, CMO at Unilever: “CSR departments are redundant” Leadership Engagement Integration Accountability Collaboration Transparency
- 41. Source: The Sustainability Executive: Profile and Progress, PwC
- 42. The Context The Destination The Journey The Strategy The Prize The Summary
- 44. The Context The Destination The Journey The Strategy The Prize The Summary
- 48. Transformation Changing markets and economic and social systems Innovation Creating opportunities Efficiency Reducing costs Reputation Protecting and improving reputation Risk Reducing risk Graphic: from Spiral Dynamics Adapted from : Bieker, T. , Institute for Economy and the Environment, University of St. Gallen 2002
- 49. Leadership Engagement Integration Accountability Collaboration Source: The Sustainability Executive: Profile and Progress, PwC Transparency
Notes de l'éditeur
- In 2008 New Scientist ran a feature on ‘The Folly of Growth’
- Source: Etheridge et al. (1996) J. Geophys. Res. 101:4115-4128 Methane heat retention capacity is 25 times that of CO2Source: Blunier et al. (1993) J. Geophys. Res. 20:2219-2222 Nitrousoxideheat retention capacity is 200-300 times that of CO2Source: Machida et al. (1995) Geophys. Res. Lett. 22:2921-2924
- northern hemisphere average surface temperature anomalies. Source: Mann et al. (1999) Geophys. Res. Lett. 26(6):759-762
- Shiklomanov (1990) Global water resources
- decadal frequency of great floods (one-in-100-year events) after 1860 for basins larger than 200 000 km2 with observations that span at least 30 years. Source: Milly et al. (2002) Nature 415:514-517
- percentage of global fisheries either fully exploited, overfished or collapsed. Source: FAOSTAT (2002) Statistical databases
- loss of tropical rainforest and woodland, as estimated for tropical Africa, Latin America and South and Southeast Asia. Sources: Richards (1990) In: The Earth as transformed by human action, Cambridge University Press; WRI (1990) Forest and rangelands
- mathematically calculated rate of extinction. Source: Wilson (1992) The diversity of life, the Penguin Press
- Image: http://www.ritholtz.com/blog/2012/04/crb-index-back-to-1749-present/
- http://www.igbp.net/download/18.1b8ae20512db692f2a680007761/IGBP_ExecSummary_eng.pdf“Global Change and the Earth System: A Planet Under Pressure” (2004), W. Steffen, A. Sanderson, P.D. Tyson, J. Jäger et al, published by Springer-Verlag Berlin Heidelberg New York. ISBN 3-540-40800-2.
- Source: Global Footprint Network and WBCSD Vision 2050, 2010
- Image: from Vision 2050 report by WBCSD
- What became clear to all of us during the credit crunch, is that no one is driving the trainhttp://www.theinnercirclemissives.com/2011/05/runaway-train.htmlhttp://theragblog.blogspot.co.uk/2009/11/barack-obama-stop-runaway-train.html
- And yet despite these worrying trends, politicians still have 99% of their attention on getting the economy moving again, and only 1% (if that) focused on the systemic issues in terms of the environmenthttp://www.spokesman.com/blogs/commcomm/2009/nov/18/onboard-uss-titanic-sort/
- CR is anchored at top management, leading to high credibility of CR efforts both internally and externallyTone from the top is visible and palpable in both written guidelines and principles as well as strategic direction and activitiesCorporate culture is positively influenced by strong commitment; reinforcing responsible business behaviour of all employeesTNT example:CEO und Board members are very present and active in media and public sphere with regards to sustainability / CSR topics, especially in the company’s focus areasFormer CEO Peter Bakker has received various prestigious awards for his leadership and personal commitment to advance and combine sustainability with long-term business success This “tone from the top” is reflected throughout the company, in both written commitments as well as actions taken: vision and mission, business principles, core values and qualities and a credible pledge to protect the environment, promote social values and to conduct operations with integrity and respect for the interests of all stakeholders
- Systematic identification of relevant stakeholder groups and their concernsInstitutionalized interactions and strategic partnerships to include concerns and formulate solutionsSystematic internal and external reporting on how concerns have been taken into account and progress was made
- Integrated into every part of the business: corporate strategy, finance, marketing, operations/production, procurement, supply chain management, human resources, facilities management, internal audit, risk management, legal, etc.CR is aligned with corporate strategy in which CR is perceived as a buinss driverCR is incorporated in products & services, taking life-cycle considerations into account CR is embedded throughout operations, e.g. in purchasing, investments, Human Resources, facility managementEmployee engagement as strong motivational factor for employees, increasing both performance and loyalty towards the firmEngaged employees communicate better – both internally improving teamwork and innovation as well as externally as company and CR ambassadors
- Clearly defined responsibilities, decision-making powers and processes for CR-related issues throughout the companyCentral team has the role as initiator and coordinator; CR activities are performed by business functions / line managementThe lines and divisions are also responsible for achievements or not reaching set targetsClear and transparent metrics (qualitative and quantitative) tailored to the business and strategy allow for a continuous and transparent measurement, monitoring and controlling of CR-related activitiesTargets are set in all dimensions of sustainability and at all levels; reported on publicly and progress is measured and reported consistently
- Systematic internal and external reportingDisclosure of success stories as well as remaining CR challengesDisclosure of targetsDefinition of relevant external ratings and focused management of a company’s performance in these ratingsConsistent CR message through all channels and audiences (AR, road show to investors, Online, social media, etc)
- We face unprecedented challenges
- We need to find a way of reconciling our perpetual growth economic model with a planet of finite resources
- CR is anchored at top management, leading to high credibility of CR efforts both internally and externallyTone from the top is visible and palpable in both written guidelines and principles as well as strategic direction and activitiesCorporate culture is positively influenced by strong commitment; reinforcing responsible business behaviour of all employeesTNT example:CEO und Board members are very present and active in media and public sphere with regards to sustainability / CSR topics, especially in the company’s focus areasFormer CEO Peter Bakker has received various prestigious awards for his leadership and personal commitment to advance and combine sustainability with long-term business success This “tone from the top” is reflected throughout the company, in both written commitments as well as actions taken: vision and mission, business principles, core values and qualities and a credible pledge to protect the environment, promote social values and to conduct operations with integrity and respect for the interests of all stakeholders