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Navigating the Challenges of Social Responsibility in Business

This document explores the complexities and conflicts associated with corporate social responsibility (CSR). It highlights the interplay between reputational risks, corporate citizenship, and the pursuit of competitive advantage. The discussion addresses various sustainability challenges, including climate change and social issues, and emphasizes innovation as a crucial driver for future value creation. Through top-down and bottom-up approaches, the text outlines key strategies for businesses aiming to balance profitability with ethical responsibilities and sustainable practices within a globalized economy.

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Navigating the Challenges of Social Responsibility in Business

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  1. Instituto Ethos: June 2006 THE SOCIALLY RESPONSIBLE COMPANY Challenges, Dilemmas and Conflicts

  2. Introduction Challenges Dilemmas Conflicts Top-down, bottom-up Menu

  3. 1 Introduction

  4. Director & Chief Entrepreneur - SustainAbility (Chairman, 1996-2006) Chair Environment Foundation ECGD Advisory Council Advisory Boards/Councils - B&HRRC, DJSI (3M), Ethos, RSA, WWF, Zouk

  5. Founded 1987 Team Core Team ~25 Nationalities 11 Council 12 Faculty 60> Mission To inspire and support innovation that creates tomorrow’s value

  6. 2 Challenges

  7. Reputational risk > competitive advantage Corporate citizenship Corporate responsibility Corporate social responsibility Eco-efficiency, eco-effectiveness Fair trade Human rights Sustainable development (e.g. triple bottom line) Clients, partners, languages

  8. A.G. Lafley: $100m donations—new focus on children Environment: resources, water (cool-water washing), waste Social: health, hygiene (PUR), education Economic: shareholder value, employment, taxes, fees and contributions

  9. 4Bs of ‘Blended Value’

  10. 4Bs of ‘Blended Value’

  11. 4Bs of ‘Blended Value’

  12. 4Bs of ‘Blended Value’

  13. Lee Scott: ‘We should view the environment as Katrina in slow motion’ Old: Energy efficiency, waste New: Renewables, roofspace, sustainable fish Easy wins 1-3 years projects ‘Game Changers’

  14. Fourth Wave - Creativity - Innovation - Enterprise - Scale

  15. 3 Dilemmas

  16. 2002-2006 2000: climate change 2005: poverty, climate, global governance … 2006: SD in China and India, financial crises, pandemics in globalized economy …

  17. Green CEO Stakeholders’ 3 priorities SUVs, BoldMoves Junk bond status? Challengers …

  18. 4 Conflicts

  19. Andrew Liveris 2015 Sustainability Goals: Sustainable Chemistry Products Designed to Solve World Challenges 4 MDGs: Water Food Housing Personal health and safety

  20. Chad Holliday: board issue Blind spots (e.g. CFCs) ‘Sustainable Growth’, e.g. oil > cellulose (biotech) But … PFOA, Ti02 … Evolution of human rights, e.g. ‘bodily trespass’

  21. Amazon, Google, etc ‘Greentech’, $100 million, $100,000 KPCB ‘Green Innovation’ prize 3 megatrends 1: energy security 2: megacities 3: abrupt climate change

  22. 5 Next Steps

  23. Top-down, bottom-up 1 CFOs, Entrepreneurs, Investment Bankers, VCs  CEOs, Investor Relations, Boards (e.g. NEDs)  Process and Product Design, Marketing (TQM)  Environment Managers, Project Planners  Public Relations, Legal Advisors

  24. Our ‘Wave 4’ Strategy Financial markets Implementation Emerging economies 3-year Skoll Program Globalization 2015 Global Reporters 2006 Millennium Development Goals Bottom-up

  25. www.sustainability.com www.johnelkington.com elkington@sustainability.com

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