"Business Strategies for a Sustainable World"

1. Business Strategies for
a Sustainable World
Mark Milstein
Clinical Professor of Management
Director, Center for Sustainable Global Enterprise
Illinois Soybean Association
July 24, 2012

2. What is Sustainability?
Sustainability is related to sustainable development
© 2012, Milstein 2

3. What is Sustainable Development?
Meet the needs of the present without
compromising the ability of future
generations to meet their own needs
- Brundtland Commission, 1987
© 2012, Milstein 3

4. What are Needs?
Clean Environment
Healthy Society
Strong Economy
© 2012, Milstein 4

5. Sustainability is About Addressing Our
Biggest Challenges
Ecosystem
Poverty Climate Change
Degradation
© 2012, Milstein 5

6. What does this mean in a
business context?
© 2012, Milstein 6

7. In Business, Sustainability = Confusion
• Environmental Management • Clean Technology
• Corporate Social Responsibility • Eco-Efficiency
• Greening • Eco-Effectiveness
• Industrial Ecology • Biomimicry
• Stakeholder Management • Triple Bottom Line
• Life-Cycle Management • Inclusive Capitalism
• Pollution Prevention (P2) • Base of the Pyramid (BOP)
• Sustainable Development • Community Capitalism
• Design for Environment (DfE) • Corporate Citizenship
• Green Design • Impact Investing
• Urban Reinvestment • Voluntary Regulation
• Brownfield Redevelopment • Civic Entrepreneurship
• Environmental Finance • Full Cost Accounting
• ISO 14001 • EMS
• Waste Reduction • Risk Management
• Closed Loops • Leapfrog Technology
• Resource Productivity • Cradle to Cradle
• Sustainable Technology • Restorative Technology
• Systems Thinking • Take-Back
• Corporate Governance • Transparency
© 2012, Milstein 7

8. Linking Business + Sustainability
Voluntary Regulations
ISO 14001
Environmental Design for Environment
Sustainable Development
Management Life Cycle Analysis
Pollution Prevention
Environmental Reporting
Risk Management
© 2012, Milstein 8

9. Environmental Policy
Environmental
Sustainable Development
Management Environmental, Health & Safety
Operations
© 2012, Milstein 9

10. Environmental Policy
Environmental
Sustainable Development
Management Sustainability = Regulation
Environmental, Health & Safety
Operations
© 2012, Milstein 10

11. Strategies: comply, Policy
Environmental influence policy and enforcement
Environmental
Sustainable Development
Management Environmental, Health & Safety
Tactics: self-regulation, eco-efficiency, cost/risk reduction
Operations
© 2012, Milstein 11

12. Environmental
Sustainable Development
Management Sustainability = Regulation
Social Audits
ISO 26000
Corporate Worker Safety
Social
Philanthropy
Responsibility
Community Relations
CSR (GRI) Reporting
© 2012, Milstein 12

13. Environmental
Sustainable Development
Management Sustainability = Regulation
PR
Corporate HR
Social
Responsibility Marketing
Philanthropy
© 2012, Milstein 13

14. Environmental
Sustainable Development
Management Sustainability = Regulation
Corporate
Social Sustainability = Public Opinion
Responsibility
© 2012, Milstein 14

15. Environmental
Sustainable Development
Management Sustainability = Regulation
Strategies: communicate, influence dialogue and narrative
Corporate
Social
Responsibility
Tactics: philanthropic ventures, cause-related marketing
© 2012, Milstein 15

16. Environmental
Sustainable Development
Management Sustainability = Regulation
Entrepreneurship
Sustainable Innovation
Enterprise Organizational Change
New Business Development
Corporate
Social Sustainability = Public Opinion
Responsibility
© 2012, Milstein 16

17. Environmental
Sustainable Development
Management Sustainability = Regulation
General
Management
Sustainable R&D
Enterprise
Strategy
Finance
Corporate
Social Sustainability = Public Opinion
Responsibility
© 2012, Milstein 17

18. Environmental
Sustainable Development
Management Sustainability = Regulation
Sustainable Sustainability =
Enterprise Business Opportunity
Corporate
Social Sustainability = Public Opinion
Responsibility
© 2012, Milstein 18

19. Environmental
Sustainable Development
Management Sustainability = Regulation
Strategies:
experiment,
influence incentives
Sustainable and rewards
Enterprise
Tactics: pilot
programs, venture
capital, M&A
Corporate
Social Sustainability = Public Opinion
Responsibility
© 2012, Milstein 19

20. The Business Opportunity
Social &
Environmental Issues
= New Business
Opportunities
Technology
Poverty Commercialization
Ecosystem Products
Degradation
Services
Climate Change
Business Models
Ability to deal with social Competitiveness to
and environmental issues establish the market
© 2012, Milstein 20

21. Key Strategic Questions
• Where are new market opportunities?
• How is the existing market going to change?
• How can a company position itself for the future?
• What products (or services) should a firm be offering?
• How should a firm improve and grow its business?
• What steps should a firm take?
21

22. Partner-Centered Engagements
Oriented Toward Problem Solving
22

23. Projects
Market & Business Strategy Clean Tech
Development Formulation Commercialization
© 2012, Milstein 23

24. Agriculture-Related Projects
Small Holder Farm Market Expansion
Mechanization for Soy Protein
Expanding Sales
in F&B Industry
24

25. Q&A
© 2012, Milstein 25