Responsible Business in India
Seema Arora
21 April 2011, Delhi
BRCC project meeting
© Confederation of Indian Industry
21st Century Business Drivers
Urbanisation
Pollution
© Confederation of Indian Industry
Seven Sustainability Revolutions
Aspect
Old Paradigm
New Paradigm
Markets
Compliance
Competition
Values
Business
Societal
Transparency
Closed
Open
Life cycle technology
Product
Function
Partnerships
Isolation
Co-operation
Short-term
Long-term
Advisory
Accountable
Time-frame
Corporate Governance
© Confederation of Indian Industry
Sustainability is now seen as a key
issue in business…
“In the future, only companies that make
sustainability a goal will achieve
competitive advantage. That means
rethinking business models as well as
products, technologies, and processes.”
C.K. Prahalad, M.R. Rangaswami
and Ram Nidumolu
Harvard Business Review 2009
© Confederation of Indian Industry
Our growth & expansion is a reflection of
changing markets and what the future will
be
CII
EMD
Risk
Opportunity
Pollution
Sustainability
Cost
Savings & profits
Adjustments
Innovation
Charity
Biz models
CESD
2006
1992
© Confederation of Indian Industry
Catalysing change through increasing
portfolio of products
Sustainable Innovation
Inclusive Biz Models
C-SAP
3CS
ISO 26000
Stakeholder Engagement
+++
Bottom of Pyramid
Carbon Disclosure
Sus Biz Portfolio
OHS
IMS
Social Accountability
Sustainability Reporting
+
2006
2011
© Confederation of Indian Industry
Sustainable business is dynamic and
still evolving
Sustainable Business
Integrated into goals, strategies
Community Investment
Strategic partnerships
Community Affairs
Strategic giving
Philanthropy
Passive donations
Profit Focus
Shareholder value
© Confederation of Indian Industry
Different tools and approaches
Tomorrow
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Disruptive innovation
Renewable energy
Sustainable technology
Knowledge & service intensity
Systems thinking
Innovation &
Repositioning
Growth Path &
Trajectory
Internal
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Eco-efficiency
Risk management
Waste minimisation
Resource productivity
EMS / ISO 14001
OHS / OHSAS 18001
SA 8000
Base of the Pyramid
Urban investment
Inclusive Capitalism
B2B
External
Cost & Risk
Reduction
Reputation &
Legitimacy
Today
© Confederation of Indian Industry
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CSR
Sustainability reporting
Stakeholder Management
Life-Cycle Management
Ecolabelling
Full Cost Accounting
Transparency
Sustainability Value Framework
Tomorrow
Drivers
•Societal
Expectations
• Competitiveness
Strategy:
Clean technology
Develop the sustainable
competencies of the future
Corporate Payoff:
Innovation & Repositioning
• Pollution
• Consumption
• Waste
Corporate Payoff:
Growth Trajectory
Sustainable
Value
Internal
Drivers
Strategy:
Sustainability Vision
Create a shared roadmap
for meeting unmet needs
Strategy:
Pollution prevention
Minimize waste and
emissions from operations
Strategy:
Product Stewardship
Integrate stakeholder views
into business process
Corporate Payoff:
Cost & Risk Reduction
Corporate Payoff:
Reputation & Legitimacy
Today
© Confederation of Indian Industry
Drivers
• Pollution
• Poverty
• Inequity
External
Drivers
• Societal
Expectations
• Transparency
• Communication
What will drive tomorrow?
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Social media
More stakeholder driven
Voluntary-regulatory combo
Many different forms of businesses; hybrid
business will be mainstream in medium term
• Resource constraints
© Confederation of Indian Industry
Tomorrow will be better; it could be
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Sustainability embedded CG
Inclusive / BOP business models
Sustainable & inclusive innovation
Green will be competitive advantage until
medium-term; post that it will be mainstream
• Integrated reporting
© Confederation of Indian Industry