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Creating Sustainable Value

Creating Sustainable Value. Stuart Hart S.C. Johnson Chair of Sustainable Global Enterprise Professor of Management. Question. Which sector is most likely to lead us toward a more sustainable world in the years ahead? A. Government B. Civil Society C. Business.

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Creating Sustainable Value

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  1. Creating Sustainable Value Stuart Hart S.C. Johnson Chair of Sustainable Global Enterprise Professor of Management

  2. Question Which sector is most likely to lead us toward a more sustainable world in the years ahead? A. Government B. Civil Society C. Business

  3. Capitalism at the Crossroads “…global capitalism stands at a juncture similar to the one faced in 1914. Between 1914 and 1945, world war, depression, fascism, and communism almost succeeded in eliminating capitalism from the face of the Earth. The problems global capitalism now faces (international terrorism, the backlash against globalization, global-scale environmental change) are no less daunting. Constructively engaging these challenges will be the key to ensuring that capitalism continues to thrive in the coming century—to everyone’s benefit.”

  4. 2000’s- Present • Beyond Greening • clean technology • base of the pyramid • “Eco-effectiveness” • (positive force) Obligation Reorientation 1970-80s End-of-pipe regulation “Pay to reduce negative impact” (trade-off) • Mid 1980s-1990s • Greening • pollution prevention • product stewardship • “Eco-efficiency” • (win-win) Opportunity The Long and Winding Road 1945-1960s Pollution Denial “Smell of money” (oblivious)

  5. Environmental Management Corporate Social Responsibility Greening Industrial Ecology Stakeholder Management Life-Cycle Management Pollution Prevention (P2) Sustainable Development Design for Environment (DfE) Green Design Urban Reinvestment Brownfield Redevelopment ISO 14001 Waste Reduction Closed Loops Resource Productivity Sustainable Technology Radical Transactiveness Systems Thinking Corporate Governance Clean Technology Eco-Efficiency Eco-Effectiveness Biomimicry Triple Bottom Line Inclusive Capitalism Base of the Pyramid Community Capitalism Corporate Citizenship Voluntary Regulation Civic Entrepreneurship Full Cost Accounting EMS Risk Management Leapfrog Technology Cradle to Cradle Restorative Technology B24B Take-Back Transparency Buzzwords

  6. Building Tomorrow’s Opportunity Nurturning Internal Capabilities Engaging External Constituencies Managing Today’s Business The Many Faces of Shareholder Value New Skills Repositioning Growth Path Trajectory Cost & Risk Reduction Reputation Legitimacy

  7. The Buzzword Sort: Map of the Territory • Clean Technology • Eco-Effectiveness • Biomimicry • Leapfrog Technology • Sustainable Technology • Knowledge & Service Intensity • Cradle to Cradle • Closed Loops • Restorative Technology • Systems Thinking Tomorrow • Sustainable Development • Base of the Pyramid • Urban Reinvestment • Brownfield Redevelopment • Inclusive Capitalism • Community Capitalism • Civic Entrepreneurship • Radical Transactiveness • B24B Internal External • Corporate Social Responsibility • Industrial Ecology • Stakeholder Management • Life-Cycle Management • Design for Environment (DfE) • Green Design • Corporate Citizenship • Full Cost Accounting • Take-back • Transparency • Corporate Governance • EMS • Greening • Pollution Prevention (P2) • Eco-Efficiency • Risk Management • Environmental Management • ISO 14001 • Waste Reduction • Resource Productivity Today

  8. Clean Technology • develop new competencies • pursue leapfrog innovation • Base of the Pyramid • meet unmet needs • raise the base of the pyramid • Product Stewardship • lower product life cycle impact • increase transparency/accountability • Pollution Prevention • minimize process waste • enhance resource productivity The Sustainable Value Portfolio Tomorrow Internal External Today

  9. What Can You Do?? Tomorrow • Science and Technology • Life science • Nanotechnology • Renewable energy • Biofuels • ICT • Clean Tech Start-Ups • $4 billion in VC in ‘06 • Microfinance • Social venturing • Rural development • NGOs • Grameen Foundation • CARE • Development banks • Corporate BOP initiatives Internal External • Green building • Sustainable design • New product development • Remanufacturing • Recycling • Negotiation • Stakeholder Dialogue • Energy conservation • Environmental management • Facility management • Operations management • Consulting • Toxic use reduction • Waste reduction • Emission reduction Today

  10. Question Which sector is most likely to lead us toward a more sustainable world in the years ahead? A. Government B. Civil Society C. Business

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