Title: Embedding CR
1Embedding CR Sustainabilityin Corporations
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- Professor Dexter Dunphy
- PO Box 123
- Broadway NSW 2007
- Email dexter.dunphy_at_uts.edu.au
2The post carbon revolution why?
- climate change reports IPPC Stern Garnaut
- recent reporting from the frontiers of science
feedback cycles - the unprecedented environmental challenge
- new demands for corporate responsibility
3A perfect storm of change
4The crisis
- planetary overheating
- growing weather volatility
- dwindling oil reserves
- increasing world population
- damaged terrestrial marine eco systems
- we are the future eaters (Flannery)
- the tipping point when?
- Climate change is the main game in town the
- essence of corporate responsibility is to
recognise - and ACT on this -urgently.
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5Think opportunities
- We face a transition at least as great as the
industrial revolution - Whole industries, occupations, products and
services will disappear and new ones will replace
them - The past will be of little help in understanding
the future - Are you and your business ready, FUTURE FIT,
ADAPTABLE and thinking OPPORTUNITIES?
6 elimination of coal/oil as energy
sources move to alternate sourcesreduced
material intensity of the entire production,
transformation, distribution, consumption cycle
The post-carbon sustainable world
- zero waste remanufacturing and recycling
- reduced demand for and use of material resources
less stuff, more services, more emphasis on
quality of life - stabilised population social justice.
7The central problem for leaders working to create
a sustainable world
8The major obstacle to moving to a post carbon
economy is not the availability of technology but
rather human factors political, social and
cultural.
9Can we rely on governments aloneto achieve a
sustainable world?
- Like it or not, the responsibility for ensuring
a sustainable world falls largely on the
shoulders of the worlds enterprises, the
economic engines of the future. - Professor Stewart Hart
- Kenan-Flager Business School, USA
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10The coming corporate revolution
- The foremost issue in shifting to the post-carbon
sustainable economy is to create cultural change
in the multitude of organisations that make up
the core of the economy. - So how do we make the cultural change? Can we
identify the path to sustainability?
11How can corporate culture be changed?This way?
12Making the journey identifying the knowledge
needed and the gaps
- mapping the journey
- identifying the characteristics of future-fit
organisations - building capacity for ongoing corporate
transformation generating high performance
change-oriented cultures - creating a cadre of leaders
- monitoring, evaluating and re-targetting change
13Mapping the journey achieving corporate
sustainability
- sustainability is a process
- organisations advance by stages
- each stage presents new business opportunities
14The Phase Model
Rejection Non-responsiveness Compliance Ef
ficiency Strategic proactivity The sustaining
corporation
From Dunphy, D. , Griffiths, A. and Benn, S.,
Organisational Change for Corporate
Sustainability, Routledge, London and New York,
2003 revised edition 2007)
15- Less formally, the organisations at these stages
can be labelled - Phase 1 the freeloaders and stealthy saboteurs
(Rejection) - Phase 2 the bunker wombats
(Non-responsiveness) - Phase 3 the reactive minimalists
(Compliance) - Phase 4 the industrious stewards
(Efficiency) - Phase 5 the proactive strategists
(Strategic proactivity) - Phase 6 the transformative futurists (The
Sustaining Orgn.)
16So where are the opportunities?
- Leave the Freeloaders, Stealthy Saboteurs and
Bunker Wombats to experience increasing isolation - The real opportunities begin with the Compliance
Phase. - Lets look more closely at the last four phases
compliance, efficiency, strategic proactivity and
the sustaining corporation.
173. COMPLIANCE PHASE The Reactive Minimalists
- Objective Seek to be compliant to the law and
all environmental, health and safety requirements
and relevant community expectations. - Business opportunities Avoid the potentially
huge costs of non-compliance and create an
effective risk management system. - Typical actions
- determine what is relevant legislation,
regulations and community expectations - build an effective risk management system with an
informed workforce committed to compliance - establish an organised measurement and monitoring
system. - Positive outcomes
- risk minimisation
- easier finance
- basis for positive reputation
- improved relationships with regulators.
184. EFFICIENCY PHASEThe Industrious Stewards
- Objective Progressively eliminate waste and
increase process and materials efficiencies. - Key business opportunity Increase efficiencies
by waste reduction and reorganisation. - Typical actions
- reduce resource use (energy, water, materials)
- design/redesign buildings/plant to dramatically
reduce footprint, create adaptable spaces - move to front-of-pipe solutions to eliminate
waste or return it to the production cycle as a
resource (biomimicry). - recycle/remanufacture (life cycle stewardship
cleaner production) - dematerialise service provision rather than
material production - redesign products sustainably produced and
environmentally friendly - meet international Global Reporting Initiative
(GRI) guidelines. - Potential business benefits
- cost reduction savings
- increased employee productivity
- increased employee involvement/engagement
- better teamwork and lateral communication.
- DO MORE WITH LESS
195. STRATEGIC PROACTIVITY PHASEThe Proactive
Strategists
- Objective Pursue the strategic opportunities in
sustainability. - Key business opportunity Become market leader
through pursuing the strategic potential of
sustainability. - Typical actions
- commit strongly to sustainability
- re-brand and build wider stakeholder support
- be early in on new product/service demand curves
- creatively destroy existing product designs,
manufacturing models and re-invent the firm,
leapfrog competition by early breakthroughs - increase employee and stakeholder engagement to
source innovative ideas - shift the prevailing business paradigm in
environmental and social ideas - innovate with new models of stakeholder
governance - concentrate on adding value and innovating.
- Potential business benefits
- increased revenue and market share
- stronger stakeholder support (reputation and
commitment) - higher customer retention rates faster
attraction of new customers - established lead in developing new markets
- employer of choice attract and retain skilled
managers and professionals - operate at high value-added end of market.
206.THE SUSTAINING CORPORATION PHASEThe
Transforming Futurists
- Objective Redefine the business environment in
the interests of a more sustainable world and to
support the core strategies of the firm. - Key business opportunity Create a constructive
culture that continually renews the long-term
viability of the organisation. - Typical actions
- participating in changing the rules of the game
to achieve sustainability - participate in public policy formation
- reorganise the companys supply chain to ensure
that the whole production process is sustainable - build human and relational capital
- support dematerialisation and the growth of the
knowledge-based economy - model best practice support/publicise best
practice elsewhere - participate in international agreements
- seek external auditing of sustainability
- influence capital markets to support long-term
value-adding - build a constructive culture that encourages
openness, debate, innovation and participation. - Potential business benefits
- global leadership of the sustainability movement
- enhanced reputation and stakeholder support and
involvement - increased share value
- attraction/retention of talented, highly
motivated employees.
21IBM GLOBAL CEO STUDY 2008
- The Enterprise of the Future
- based on conversations with more than 1000 CEOs
- Some key characteristics of the enterprise of the
future - hungry for change
- innovative beyond customer imagination
- disruptive by nature
- Future-fit companies actively disrupt the status
quo
22Building capacity for ongoing transformational
change
23We must first be the change we want to bring
about in others Gandhi
24Creating the cadre of leaders
- Hewitt Associates global study
- Top Companies for Leaders 2007
- Some findings from a study of those organisations
rated as outstanding in producing future leaders - leadership development is made a strategic
priority by the Board and senior managers who are
personally involved with the potential leaders - there is an integrated set of human resource
strategies from selection, through development,
coaching etc to project assignments
25Monitoring the Change etc
- active involvement of academics with executives
a new level of knowledge exchange and development - emphasis on action research monitoring ongoing
change processes, devising appropriate
interventions (theory in action) - new emphasis in business schools on skills for
change monitoring and intervention rather than
knowledge alone
26SUMMARY
- the environment is the forgotten basis of the
economy a healthy biosphere is the only
guarentee of a healthy economy and society - organisations are social institutions designed to
provide sustenance to us throughout our lives and
to leave the legacy of a healthy biosphere and
world community for those who follow us this is
their licence to operate
27 Summary continued
- we are involved in an unprecedented revolution
that demands concerted action at all levels of
society and by all institutions particularly
visionary corporate leadership - we have much of the knowledge we need to make the
change technological knowledge social process
knowledge - we need to apply what we already know
- then add to it through action research - carried
out in collaboration between corporations and
universities
28 Summary - continued
- sustainability is a better way of doing business
constructive, innovative corporate cultures
create high performance - those organisations that dont adapt will end up
in the dustbin of history - those organisations that pick up the
sustainability challenge increase their
probability of surviving and thriving - So pursuing sustainability and social
responsibility make good business sense
29- But there is another compelling reason for
choosing this path
30Future generations deserve nothing less
31Resource books how to do it
- D. Stace and D. Dunphy, Beyond the Boundaries
Leading and Recreating the Successful Enterprise,
2nd ed., McGraw Hill, Sydney, 2001 - D. Dunphy, A Griffiths and S. Benn,
Organisational Change for Corporate
Sustainability, 2nd ed., Routledge, London, 2007 - Q. Jones, D. Dunphy et al, In Great Company
Unlocking the Secrets of Corporate
Transformation, Human Synergistics, Sydney, 2007 - D. Grayson and A. Hodges, Corporate Social
Opportunity - 7 Steps to Make Corporate Social
Responsibility Work for Your Business, Greenleaf,
Sheffield UK, 2004 - B. Willard, The Next Sustainability Wave
Building Boardroom Buy-In, New Society
Publishers, Canada, 2005 - B. Doppelt Leading Change Toward Sustainability
A Change Management Guide for Business,
Government and Civil Society, Greenleaf,
Sheffield UK, 2003. - M. Hogarth, The Third Degree Frontline in
Australias Climate War, Pluto Press, Melbourne
Australia, 2007. - D. Spratt and P. Sutton, Climate Code Red The
Case for Emergency Action, Abbey, Sydney, 2008.