PDF Corporate Sustainability as a Challenge for Comprehensive Management

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All editorial controlled and overseen by the Guardian. Realism and context Companies taking the most ambitious action on sustainability are also the most realistic about the scale of the risks and are more likely to admit that business is not doing enough. Growth and differentiation There is the emergence of a two-speed world in sustainability, between those companies still reacting to external expectations and focusing on incremental mitigation, and those that see sustainability through a more expansive lens of growth.


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Value and performance For companies seeking to go beyond incremental change and tackle global sustainability issues, the challenge is twofold: not just to measure and manage metrics of reduction and mitigation, but also to quantify the value of initiatives and more sustainable business models to the company, and to track their impact on the communities in which they operate. Technology and innovation Leaders in the field are securing business advantage through innovative research and development, as well as the deployment of technologies in order to tackle environmental and social pressures. Partnerships and collaboration CEOs are more readily acknowledging the role of collaboration and partnerships in meeting their ambitions on sustainability.

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Engagement and dialogue There is an increasing recognition of the need to establish a constructive, two-way dialogue with all stakeholders; consumers and local communities, regulators, policymakers, investors, shareholders, employees and labour unions. Advocacy and leadership Progressive CEOs are clear that business efforts on their own are not sufficient to set the global economy on track. Sustainability blogposts. Reuse this content.

Order by newest oldest recommendations. Hybrid companies believe you can maintain a high level of transparency e. The company Sun Oven produces solar cooking equipment, for example. At the core of its mission is the desire to improve the standard of living in developing countries, were unhealthy, indoor open-fire cooking is not uncommon. You and your company may have taken significant steps to help society and the planet, but you can do more. Another important step is to change your perspective on nature as only a resource.

While protecting resources is important, nature has more to offer your company than you might realize.

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The most important and most difficult step in achieving sustainable goals: Challenge the basic tenets of business success, from profit and growth assumptions to accepted competitive advantage and value chain imperatives. Rejecting the basic rules of business may seem both self-destructive and impossible. The fundamental lesson of this research is that challenging the dogma of business can be done: just ask the fearless heretics known as hybrid companies.

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Sustainability-driven Hybrid Companies Challenge Business Dogma

Ideas Library Ideas by Institutions. Traditional business models aim to create value for shareholders, often at the expense of other stakeholders. Sustainable businesses are redefining the corporate ecosystem by designing models that create value for all stakeholders, including employees, shareholders, supply chains, civil society, and the planet. Much of the strategic value of sustainability comes from the need to continually talk with and learn from key stakeholders.

Through regular dialogue with stakeholders and continual iteration , a company with a sustainability agenda is better positioned to anticipate and react to economic, social, environmental, and regulatory changes as they arise. When firms fail to establish good relationships with their stakeholders, it can lead to increased conflict and reduced stakeholder cooperation. Supply chains today extend around the world, and are vulnerable to natural disasters and civil conflict. Climate change, water scarcity, and poor labor conditions in much of the world increase the risk.

In the largest study on climate change data and corporations, 8, supplier companies that sell to 75 multinationals reported on their level of climate risk.

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Managing risks therefore requires making investment decisions today for longer-term capacity building and developing adaptive strategies. In the agriculture, food, and beverage sector, the impacts of climate change have the potential to alter growing conditions and seasons, increase pests and disease, and decrease crop yields. Disruptions in the supply chain may affect production processes that depend on unpriced natural capital assets such as biodiversity, groundwater, clean air, and climate. These unpriced natural capital costs are generally internalized until events like floods or droughts cause disruption to production processes or commodity price fluctuation.

To address these threats along their supply chain, companies like Mars, Unilever, and Nespresso have invested in Rainforest Alliance certification to help farmers deal with climate volatility, reduce land degradation, and increase resilience to drought and humidity—all of which ensure the long-term supply of their agricultural products. Companies are also experiencing risks in their manufacturing due to resource depletion — particularly water.

Water has largely been considered a free raw material and therefore used inefficiently, but many companies are now experiencing the higher costs of using the resource. Coca-Cola, for example, faced a water shortage in India that forced it to shut down one of its plants in Water-related risks threaten to strand billions of dollars for mining, oil, and gas companies.

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Investing in sustainability is not only a risk management tool; it can also drive innovation. Redesigning products to meet environmental standards or social needs offers new business opportunities.

An introduction to the Management and Corporate Sustainability MSc

Since its launch in , Flyknit has reduced 3. Recognizing the growing consumer interest in sustainable products and looking to solve consumer challenges such as high energy costs, CPG companies have developed new products to gain access to this market.