09/08/09 1
What is Sustainability? Broad definition
•  Consideration of social, environmental and economic
impact
Many subtopics
•  E.g. ethics, corporate social responsibility, poverty
alleviation, stakeholder engagement
Network for Business Sustainability
Managers
NBS
Researchers
Strategy Teaching Materials Systematic Reviews
•  Embedding Sustainability in Organizational Culture
Research Insights
•  For Employee Buy-In, Supervisors Trump the CEO
•  Reward Honesty, Not Performance, of Chinese Suppliers
Thought Leader Forum
•  Buying Furniture on iTunes: Creative Destruction in a World of
“Locavore” Production (Gerry Davis)
•  Our Baboon Moment: How Business Can Create Peace (Tim Fort)
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Guest Speakers
Mike Valente
Marie-France Turcotte
Ted London
Schulich School of
Business,
York University
University of Quebec at
Montreal
Ross School of
Business,
University of Michigan
Mike Valente
Assistant Professor of Organization Studies
Schulich School of Business, York University
Teaching Sustainability and Strategy Mike Valente Schulich School of Business Business Sustainability refers to the achievement of economic viability (profitability) while operaHng within the capacity, or contribuHng to the integrity, of social, ecological, and economic systems Business
Sustainability
Economic Social Environmental Examples of Systems Ecological Systems Social •
Biodiversity •
Health system •
Replenishment cycle •
Maintenance of social equity •
Water and dry systems •
Maintenance of social jusHce •
Ice systems •
Humanity’s food system •
Species reproducHon •
Basic service distribuHon Economic •  Economic growth •  Financial system •  Flow of goods/services •  Wealth creaHon •  Wealth distribuHon Strategic Adoption Levels of Sustainability
Extraneous Sustainability Paradigm Culture/Identity
-  Sustainability absent
-  Philanthropy
Positioning
-  Public relations/marketing
-  Reactive/defensive
Core Operations
-  Little or no products/services
-  Expertise in avoiding
sustainability
Episodic Sustainability Paradigm Culture/Identity
-  Identity conflict, hypocrisy
-  Fragmented
Positioning
-  Range of markets
-  “We are green too”
Core Operations
-  Product/division level
-  Pockets of the organization
Embedded Sustainability Paradigm Culture/Identity
-  TBL (shared value)
-  Defines who we are
Positioning
-  Customer value proposition
-  Industry leader
Core Operations
-  Company level
-  Sustainability processes
source of SCA
Student Exercise •  Come to class with your assessment of how strategic
sustainability is to a firm of your choice.
•  How does your chosen company’s commitment to
sustainability measure up to competitors in the industry?
•  What would the company have to do to better embed
sustainability into their strategy?
•  Instructor tools
–  Positioning strategy
–  Core competencies related to sustainability
•  Products
•  Processes
•  Identity/reputation Value CreaHon and Value Capture Successful Strategy
Almost Perfect
Competition
WTP
WTP
Total
Value
Created
Price
Cost
Opp.
Cost
Consumer
Value
Firm Value
Supplier
Value
Price
Total
Value
Created
Firm Value
Cost
Opp.
Cost
Case: Patagonia Wealthy outdoors people,
environmentalists, demand
for authenticity
Value
Created
Low advertising,
low defect rates,
supplier relations
WTP
Price
Cost
Opp.
Cost
Quality, innovative
design /material,
product
guarantee,
authentic
Create demand
for environmental
raw materials,
innovation
Marie-France Turcotte
Professor, Department of Strategy, Social Responsibility and Environment
Chair of Social Responsibility and Sustainable Development
University of Quebec at Montreal
Embedding
Sustainability in
Corporate
Culture
Stéphanie Bertels
09/08/09 1
Embedding Sustainability in
Corporate Culture
Stéphanie Bertels
09/08/09 1
Embedding Sustainability
A full academic report on Embedding Sustainability in Organizational Culture is available at www.nbs.net/knowledge/culture
Étapes
ApplicaHon •  Assignment to apply Culture Wheel
practices:
–  How are Culture Wheel practices are applied in
a case study of Patagonia?
–  How could the practices be modified for
implementation at your organization?
Principles and management tools used by Patagonia To what prac:ce(s) does it correspond in the culture wheel? « Philosophy classes » for Raise awareness
managers Re-envision
Learn
Life Cycle analysis for supply material decision-­‐
making Integrate in
business
processes
Engaging with large Trigger
compeHtors to create the Share
supply market in Invite
biological co\on Could it be What adapta:ons implemented in would be needed? your organisa:on? Yes/No Change the
name of these
strategic sessions
addressing
sustainability
Yes/No … Yes/No … Advice •  Well suited for teaching about implementing
strategy
•  Get students involved through their own
experience and through cases
•  Remind them that practices from other
organizations must be adapted to their
specific context (organizational culture) Embedding Sustainability
Limits of the classics stakeholder models 24
Stakeholder Management : Framework and Philosophy
Engaging Stakeholders
Step 1: Get to know your community
A full academic report on Stakeholder Engagement is available at www.nbs.net/topic/stakeholder
Limits of the classics stakeholder models Power
sleeping
dominant
définitive
dangerous
requesting
Urgency
discretionary
dependant
Legitimacy
Engaging Stakeholders
Step 2: Choose your engagement strategy
A full academic report on Stakeholder Engagement is available at www.nbs.net/topic/stakeholder
Engaging Stakeholders
Step 3: Plan your engagement process
A full academic report on Stakeholder Engagement is available at www.nbs.net/topic/stakeholder
Advice •  Well suited : –  For teaching the political dimensions of
strategy
–  As a guide for an assignment
•  If time allows, before presenting the guide,
have the students discover the complexity
of the relationships among stakeholders
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