RDM4149 W4
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PRESENTATION OUTLINE
RDM4149 SUSTAINABLE BUSINESS PRACTICES
ECONOMICAL SUSTAINABILITY: THE LINK BETWEEN CSR & CFP
The question is not if there is a link or not but what the nature of this relationship is.
To add from last week
Positive CSR (proactive) - negative CSR (reactive)
To add from last week
Positive CSR (proactive) - negative CSR (reactive)
Photo by kenteegardin
IS IT WORTH IT?
CSR: BUSINESS INVESTMENT OR COST BURDEN?
Research shows that there is a positive relationship between CSR and CFP
Improved firm reputation
Improved relationships with external stakeholders
Innovative business models? No evidence yet but Tesla is a case to follow
Meta-analysis 59% positive 27%mixed 14% negative
Improved firm reputation
Improved relationships with external stakeholders
Innovative business models? No evidence yet but Tesla is a case to follow
Meta-analysis 59% positive 27%mixed 14% negative
Photo by Ionics
THE LARGER THE CORPORATION, THE HIGHER THE RETURN ... SO FAR
BETTER VISIBILITY - ECONOMY OF SCALE - MULTIPLE AND LARGER MARKETS
Photo by duncan
DOES CSR CREATE VALUE OR DOES IT ONLY DIMINISH COSTS
MARKETING STRATEGIES AND PRODUCT DEVELOPMENT
Or when the car industry starts to produce its own fuel
CSR philosophy relying on uniqueness being a competitive advantage (being "unimitable")
CSR philosophy relying on uniqueness being a competitive advantage (being "unimitable")
Photo by Bill David Brooks
TODAY'S ECONOMY PUTS PRESSURE ON BUSINESSES
CORPORATE ACCOUNTABILITY-RESPONSIBLE CONSUMERS-RESPONSIBLE INVESTORS
Investment in clean tech booming
Sustainable products across all sectors are also taking more and more market shares
Sustainable products across all sectors are also taking more and more market shares
Photo by Moonrhino
SRI: SOCIALLY RESPONSIBLE INVESTING
TODAY ONE OF THE FASTEST INVESTING SECTORS
Steady growth in particular from 2012 - outpacing the growth in total professionnally managed assets
From 13.3 trillion to 21.4 trillion USD (+61%)
From 13.3 trillion to 21.4 trillion USD (+61%)
Photo by AndreasPoike
A STUDY ON THE LODGING AND GAMING INDUSTRY
CSR, PROFIT MARGIN AND RETURN ON EQUITY
Comparing CSR and non-CSR firms
See sample p.68-69
CSR portfolio higher CFP and less volatile
Much higher return on equity with much smaller variance
Conclusion: CSR initiatives can be a competitive edge for companies that implement them
But several other studies have found positive csr-cfp for hotels but not for casinos
Back to what was said last week: is the core of the business sustainable. Discuss gambling
May explain the difference in outcomes from the study
See sample p.68-69
CSR portfolio higher CFP and less volatile
Much higher return on equity with much smaller variance
Conclusion: CSR initiatives can be a competitive edge for companies that implement them
But several other studies have found positive csr-cfp for hotels but not for casinos
Back to what was said last week: is the core of the business sustainable. Discuss gambling
May explain the difference in outcomes from the study
Photo by John-Morgan
WHEN CSR TRANSLATES INTO BETTER FINANCIAL PERFORMANCE
A MANAGEMENT PHILOSOPHY THAT TARGETS TO PLEASE EVERYONE
The core of CSR is that the firm wants to serve the interests of all stakeholders in a structured and effective way.
Ethical decision making will then follow and lead to superior managerial efficiencies, cost-control procedures, relevant marketing, lower turnover, higher loyalty among customers.
The idea of creating a relationship
Ethical decision making will then follow and lead to superior managerial efficiencies, cost-control procedures, relevant marketing, lower turnover, higher loyalty among customers.
The idea of creating a relationship
Photo by masondan
ECONOMIC DRIVERS TOWARDS SUSTAINABILITY
SOME EMERGING & SOME ALREADY PROVEN INFLUENTIAL
See HVS current trends and opportunities in hotel sustainability 2012
Why would tourism and hospitality be different than other sectors? Discuss the relationship and experience aspect
Why would tourism and hospitality be different than other sectors? Discuss the relationship and experience aspect
Photo by Youssef Abdelaal
BETTER MANAGEMENT OF UTILITY PRICES AND AVAILABILITY
BEING PROACTIVE IN ORDER NOT TO COMPROMISE GUEST EXPERIENCE
Photo by Ingrid Taylar
MARKETING AND BRAND IMAGE
LEADING TO BETTER MARKET PENETRATION
Especially for business tourism and MICE where corporation require travel and accomodation to be in line with the company CSR policy: multiplier effect
Photo by somegeekintn
CREATING A POSITIVE AND LOYAL CORPORATE CULTURE
ATTRACTING AND RETAINING YOUNG TALENTS
2007 survey in the USA : 92% of young professionals more encline to work for a company perceived as environmentally friendly
As CSR gets traction, this result is very likely to increase and cover more generations
As CSR gets traction, this result is very likely to increase and cover more generations
Photo by Marcus Vegas
INVESTOR REQUIREMENT
LOOKING FOR QUANTIFIABLE INDICATORS OF SUSTAINABLE PERFORMANCE
Show Weber's model at the end
Photo by Konstantin Lazorkin
