Presentation Transcript

1. Rolling out sustainability accounting

   Dimitar Zvezdov Centre for Sustainability Management, Leuphana University Scharnhorststr. 1, 21335 Lüneburg, Germany zvezdov@uni.leuphana.de Presented at the Seventh International Environmental Management Leadership Symposium Rochester, USA, 2 – 3 May 2011
2. Structure Status of corporate sustainability accounting research and practice What comes next Specifics of SA roll out Conclusion
3. Status of corporate sustainability accounting research and practice Existing literature focuses on examples that point out the linkage between sustainability management and corporate (financial) performance (e.g. Klassen& McLaughlin 1996; Bennett et al. 2011a) Increasing recognition of potential benefits (e.g. Porter & van der Linde 1995; Schaltegger & Wagner 2006) Identifies what the practice is (e.g. Bennett & James 1998; Bartolomeo et al. 2002; Bennett et al. 2011b) But also what challenges exist (e.g. Burritt 2004, Gray et al. 2002) Does it pay, is it worth Who / what functions and departments should deal with certain issues How do companies measure and communicate externalities etc.
4. Challenges that appear related Approach more sustainability issues Involve more people Integrate more sustainability information in day-to-day activities sustainability management and sustainability accounting moving from project based to day-to-day business activities; from a single department to the whole structure; from single site to the whole company Etc.
5. Status of corporate sustainability accounting research and practice Recognising the potential linkage between business and social and environmental performance Observing good practice time sporadic, isolated experimental sustainability projects Rolling out sustainability management accounting Initial speculations of a potential link between business and social and environmental performance Sources: Bennett et al. 2003 Bennett et al. 2011a forthcoming; Schaltegger et al. 2011 forthcoming
6. Corporate information pyramid Corporate sustainability accounting Planning and decision making systems Analysis and information systems Control and reporting systems Value-driven accounting systems Qualitative operational systems Technology Procurement Sales HR Production Sources: Hufschlag 2010;Scheer 1990
7. Roll out: various definitions Example of a term that comes from practice and not from science (Worren et al. 1999) (Marketing) launch (e.g. a new product) taking place in a series of stages over an area, each stage involving an increased number of outlets (Merchandising) full introduction of a new product to the entire market after a successful test introduction. A staged series of activities that often accumulate meaning as they occur. Computer products: describe a series of related product announcements that are staged over time. Public relations campaigns use the term to describe the revelation of a major company theme, event, or other message over a period of time calculated to lead to ideal results. the installation staging (e.g. of new equipment) is sometimes called a rollout.
8. The importance of roll out management Secures a smooth transition from project basis to regular operations Reduces project costs through managing quality and efficiency Bridges management challenges with content challenges Etc.
9. The importance of roll out management
10. Sustainability accounting roll out:What needs to be considered Organisational aspects – withparticularconsiderationsofsustainabilityaccounting Content-relatedaspects – withparticularconsiderationsofthe roll-out process
11. Organisational aspects Professional project management (e.g. Hufschlag 2010) Not sufficient to have environmental/sustainability experts Not sufficient to have “all-rounders“ Be able to explain to everyone why they need to get involved and how they need to get involved (setting up hotlines) Motivating senior management (after Homma & Bauschke 2010) Senior management needs to be involved beyond “sounds great! We might consider the option next year” Not in an easy position: principals and agents at the same time (Hill & Jones 1995) Senior management has the authority to delegate tasks, and Can motivate employees
12. Organisational aspects (2) Involving staff (Homma & Bauschke2010) Actually quite fortunate with sustainability People don’t like to be told what to do (except from their direct boss) Explaining clearly what is needed and why it is needed Providing sufficient support and assistance, so that the involved don’t feel as if they are bothering the project management whenever they need support
13. Content-related aspects Information flows: information providers and users at the same time Infrastructure: Organise and prepare the infrastrucure, as the existing is often unsuitable Future-oriented information: influencing performance rather than observing it Bridging information systems: linking monetary and physical data Securing information quality: growing amounts of information make it impossible for existing functions to analyse information quality
14. Conclusion and discussion Based on both assumptions and observations: roll out is the next step in sustainability accounting research and practice Challenge that needs to be approached with sufficient expertise and preparation Further research needed to uncover the specifics and provide examples of good practice in this phase