RDM4149 W2

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PRESENTATION OUTLINE

RDM4149 SUSTAINABLE BUSINESS PRACTICES

BACKGROUND & THEORY
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THE MILLENIUM DEVELOPMENT GOALS

  • End poverty and hunger
  • Universal education
  • Gender equality
  • Health
  • Environmental sustainability
  • Global partnership
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BUSINESS SUSTAINABILITY BY THE WEF

  • Responsibility of the entire supply chain
  • Adressing climate change
  • Fostering a sustainable model of consumption
  • Empowering women
  • Defining ad-hoc rules of law
  • Fighting corruption
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THEORIES ON CORPORATE RESPONSIBILITY

  • Wealth creation only
  • Duty of social cooperation
  • Depending on social demands
  • Social responsibility is an ethical obligation

A BUSINESS IS A SOCIAL INSTRUMENT

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SUSTAINABILITY IS THE NEXT MEGATREND

IT IS SHAPING OUR COMPETITIVE LANDSCAPE
Megatrend see John Naisbitt
Other mega trends: globalisation, electrification, mass production, digitalisation
Megatrends define a shift in how companies compete
Factors making megatrends emerge or accelerate see example of cold war for microelectronics
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SUSTAINABILITY CANNOT BE IGNORED ANYMORE

THE PRESSURE IS SOCIAL, ECONOMICAL, ENVIRONMENTAL & POLITICAL
Factors establishing it: globalization of supply chain, new world powers competing for natural resources that do not increase
Forces magnified by public and governmental concern imposing regulation, creating a demand for sustainability and asking for transparency and accountability.

Other sign: growing investment in clean tech and sustainability programs
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STORIES TO LEARN FROM

TQM and IT
Quality Japan 70's then TQM embraced by Toyota & Honda and suddenly high quality and affordability became compatible instead of mutually exclusive. From reactive to proactive quality strategy. Example of Motorola as well

IT in early 80's money poured into it with little return.

Lesson learn for the sustainability megatrend: firms need to formulate a vision for value creation trhough sustainability and executing on it.

DEFINING A ROAD MAP

STAGES OF VALUE CREATION THROUGH SUSTAINABILITY
Comparison with the quality mega trend
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DO OLD THINGS IN NEW WAYS

STAGE 1

DO NEW THINGS IN NEW WAYS

STAGE 2

TRANSFORM CORE BUSINESS

STAGE 3
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NEW BUSINESS MODEL CREATION & DIFFERENTIATION

STAGE 4
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A SUSTAINABLE PERFORMANCE SYSTEM

COMBINING WHAT MUST BE DONE WITH HOW IT SHOULD BE DONE

CATEGORIES OF SUSTAINABLE BUSINESSES

THE LOSER - THE DEFENDER - THE DREAMER - THE WINNER
Loser see GM for quality & Kodak for IT

Defender "go slow"

Dreamer too ambitious too soon

Winner proving that value can be created through sustainability see GE
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WORKSHOP WEEK#1

Read the material posted on "Background & Definitions" and come with ideas for assessment#1
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Alain Imboden

Haiku Deck Pro User