1. Beyond GreenPresent and Future Impacts on Your Brand Promise Bruce HuttonDaniels College of Business INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE

2. INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE We Live in Interesting Times Sustainable development is the only intellectually coherent, sufficiently inclusive, potentially mind-changing concept that gets even half-way close to capturing the true nature and urgency of the challenges that now confront the world. There really is no alternative. — Jonathon Porritt (2001)

3. We Live in Interesting Times Never before in the 33 years of the World Economic Forum’s history has the situation in the world been so fragile, as complex and dangerous as this year. We feel that we are living in a new world – with new rules and new dangers – but certainly also with new opportunities … Today we need a new and enlarged concept of business leadership. — Klaus Schwab, President, World Economic Forum, 2003 INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE

5. More cultures

6. More connected

8. During this presentation INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE 60 babies will be born in the U.S. 60 China? 244 India? 351

9. In ten years, what will be the number one English-speaking country in the world? INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE China How many Indian college graduates speak English? 100% 100% 0%

10. How many jobs will the average worker hold? INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE 10 to 15 By what age? 38

11. What’s the most important reason grad students choose a company? INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE Stat, cite

12. INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE Percentage of 21-year olds who’ve created content on the web? 50% Percentage of four-year-olds who’ve used a computer? 70%

13. Years to build an audience of 50 million INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE Television 38 Radio 13 Internet 4

15. The U.S. retires 426,000 cell phones INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE every day.

16. The U.S. retires 426,000 cell phones INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE every day.

17. Energizer produces 170,000 batteries INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE in 15 minutes.

18. Energizer produces 170,000 batteries INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE in 15 minutes.

19. Energizer produces 170,000 batteries INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE in 15 minutes.

20. 1 million plastic cups are used on U.S. flights INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE every six hours.

21. 1 million plastic cups are used on U.S. flights INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE every six hours.

22. 1 million plastic cups are used on U.S. flights INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE every six hours.

23. GMC sold 24,000 GMC Yukon Denali’s INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE in six weeks (2004).

24. 24,000 GMC Yukon Denali’s sold INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE in six weeks (2004).

25. INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE Artist: Chris Jordan Running the Numbers An American Self-Portraitchrisjordan.com

27. Crisis of Inequality

28. Crisis of SustainabilityGlobal economic uncertainty Geopolitical uncertainty – war, trade tension,anti-globalization On-going environmental challenges – climate change, water, etc.

29. Sustainable Development: Cure for Myopia “…development which meets the needs of the present without compromising the ability of future generations to meet their own needs.” Our Common Future, 1987. “…adoption of strategies and activities that meet the needs of the enterprise and its stakeholders today while protecting, sustaining, and enhancing the human and natural resources that will be needed in the future.” International Institute for Sustainable Development, 1997. “Integrating economic activity with environmental integrity, social concerns, and effective governance systems.” Breaking New Ground: Mining, Minerals and Sustainable Development, 2002. INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE

30. A model for a better vision

31. A model for a better vision

32. A model for a better vision

33. A model for a better vision

34. A model for a better vision

35. A model for a better vision Revenue Earnings Cash Flow Shareholder Return Resource Efficiency Life Cycle Costing Job Creation Social Investment Skills Enhancement Zero Waste Reduced Emission Regulatory Compliance Diversity Human Rights Community Outreach Labor Standards Safety & Health Local Environment Climate Change

36. Marketing Meets Opportunity Sustainable development means different things to different people. But its essence: Meeting the needs of people today without compromising the ability of future generations to meet their own needs. Broad view Long term Inclusive approach Interdependent systems INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE

37. Marketing Meets Opportunity INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE

38. Parallel Tracks Marketing Concept Satisfying needs of consumers and meeting organizational objectives Marketing Orientation Collecting information, sharing across departments, using it to create customer value Societal Marketing Concept Satisfying customer needs in ways that provide for societal well-being INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE

39. Why are we here? I think many people assume, wrongly, that a company exists solely to make money. Money is an important part of a company’s existence, if the company is any good. But a result is not a cause. We have to go deeper and find the real reason for our being. As we investigate this, we inevitably come to the conclusion that a group of people get together and exist as an institution that we call a company, so that they are able to accomplish something collectively that they could not accomplish separately--they make a contribution to society, a phrase which sounds trite but is fundamental. — David Packard INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE

40. Why are we here? INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE Make a Living/Profit Make a Difference

41. What Responsibility? A corporation’s responsibility includes how the whole business is conducted every day. It must be a thoughtful institution which rises above the bottom line to consider its actions on all, from shareholders to society at large. Its business activities must make social sense just as its social activities must make business sense. -- Business Roundtable, 1981 Kyosei --RyuzaburoKaku, Canon INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE

42. What Responsibility? INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE

43. Creating Value: The CSR Advantage Organizations have a responsibility to try to find an approach to basic social problems which fits their competence and which, indeed, makes the social problem into an opportunity for the organization. -- Peter Drucker, 1992 INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE

44. Creating Value: The CSR Advantage INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE

45. What is CSR? No universally accepted definition Often used: Operating in a manner that meets or exceeds the ethical, legal, commercial, and public expectations that society has of business. Alternative: Achieving commercial success in ways that honor ethical values and respect people, communities, and the natural environment. INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE

46. Events and Trends Responsible for Growth in CSR/Sustainable Development Changing Expectations of Stakeholders Shrinking Role of Government Increased Customer Interest Supply Chain Responsibility Growing Investor Pressure More Competitive Labor Markets Demands for Increased Disclosure New and Emerging Issues

47. What it means for your brand

48. CSR/SD Impact Areas Governance decisions Product and service offerings Research and development Employee practices Capital investments, facility sites Production processes Relationships Global market access Investor relations Marketing and communications Community relations Public policy advocacy INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE

49. Benefits of CSR/SD Improve financial performance Reduce operating costs Enhance brand image and reputation Increase customer loyalty and sales Increase productivity and quality Attract and retain employees Reduce regulatory oversight INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE

50. INSTITUTE FOR LEADERSHIP AND ORGANIZATIONAL PERFORMANCE Sustainable Development Process