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Creating Sustainable Value. Stuart Hart S.C. Johnson Chair of Sustainable Global Enterprise Professor of Management. Question. Which sector is most likely to lead us toward a more sustainable world in the years ahead? A. Government B. Civil Society C. Business.

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creating sustainable value

Creating Sustainable Value

Stuart Hart

S.C. Johnson Chair of Sustainable Global Enterprise

Professor of Management

question

Question

Which sector is most likely to lead us toward a more sustainable world in the years ahead? A. Government B. Civil Society C. Business

capitalism at the crossroads
Capitalism at the Crossroads

“…global capitalism stands at a juncture similar to the one faced in 1914. Between 1914 and 1945, world war, depression, fascism, and communism almost succeeded in eliminating capitalism from the face of the Earth. The problems global capitalism now faces (international terrorism, the backlash against globalization, global-scale environmental change) are no less daunting. Constructively engaging these challenges will be the key to ensuring that capitalism continues to thrive in the coming century—to everyone’s benefit.”

the long and winding road

2000’s- Present

  • Beyond Greening
  • clean technology
  • base of the pyramid
  • “Eco-effectiveness”
  • (positive force)

Obligation

Reorientation

1970-80s

End-of-pipe

regulation

“Pay to reduce

negative impact”

(trade-off)

  • Mid 1980s-1990s
  • Greening
  • pollution prevention
  • product stewardship
  • “Eco-efficiency”
  • (win-win)

Opportunity

The Long and Winding Road

1945-1960s

Pollution

Denial

“Smell of money”

(oblivious)

buzzwords
Environmental Management

Corporate Social Responsibility

Greening

Industrial Ecology

Stakeholder Management

Life-Cycle Management

Pollution Prevention (P2)

Sustainable Development

Design for Environment (DfE)

Green Design

Urban Reinvestment

Brownfield Redevelopment

ISO 14001

Waste Reduction

Closed Loops

Resource Productivity

Sustainable Technology

Radical Transactiveness

Systems Thinking

Corporate Governance

Clean Technology

Eco-Efficiency

Eco-Effectiveness

Biomimicry

Triple Bottom Line

Inclusive Capitalism

Base of the Pyramid

Community Capitalism

Corporate Citizenship

Voluntary Regulation

Civic Entrepreneurship

Full Cost Accounting

EMS

Risk Management

Leapfrog Technology

Cradle to Cradle

Restorative Technology

B24B

Take-Back

Transparency

Buzzwords
the many faces of shareholder value

Building Tomorrow’s

Opportunity

Nurturning

Internal

Capabilities

Engaging

External

Constituencies

Managing Today’s

Business

The Many Faces of Shareholder Value

New Skills

Repositioning

Growth Path

Trajectory

Cost &

Risk Reduction

Reputation

Legitimacy

the buzzword sort map of the territory
The Buzzword Sort: Map of the Territory
  • Clean Technology
  • Eco-Effectiveness
  • Biomimicry
  • Leapfrog Technology
  • Sustainable Technology
  • Knowledge & Service Intensity
  • Cradle to Cradle
  • Closed Loops
  • Restorative Technology
  • Systems Thinking

Tomorrow

  • Sustainable Development
  • Base of the Pyramid
  • Urban Reinvestment
  • Brownfield Redevelopment
  • Inclusive Capitalism
  • Community Capitalism
  • Civic Entrepreneurship
  • Radical Transactiveness
  • B24B

Internal

External

  • Corporate Social Responsibility
  • Industrial Ecology
  • Stakeholder Management
  • Life-Cycle Management
  • Design for Environment (DfE)
  • Green Design
  • Corporate Citizenship
  • Full Cost Accounting
  • Take-back
  • Transparency
  • Corporate Governance
  • EMS
  • Greening
  • Pollution Prevention (P2)
  • Eco-Efficiency
  • Risk Management
  • Environmental Management
  • ISO 14001
  • Waste Reduction
  • Resource Productivity

Today

the sustainable value portfolio

Clean Technology

  • develop new competencies
  • pursue leapfrog innovation
  • Base of the Pyramid
  • meet unmet needs
  • raise the base of the pyramid
  • Product Stewardship
  • lower product life cycle impact
  • increase transparency/accountability
  • Pollution Prevention
  • minimize process waste
  • enhance resource productivity
The Sustainable Value Portfolio

Tomorrow

Internal

External

Today

what can you do
What Can You Do??

Tomorrow

  • Science and Technology
    • Life science
    • Nanotechnology
    • Renewable energy
    • Biofuels
    • ICT
  • Clean Tech Start-Ups
    • $4 billion in VC in ‘06
  • Microfinance
  • Social venturing
  • Rural development
  • NGOs
    • Grameen Foundation
    • CARE
  • Development banks
  • Corporate BOP initiatives

Internal

External

  • Green building
  • Sustainable design
  • New product development
  • Remanufacturing
  • Recycling
  • Negotiation
  • Stakeholder Dialogue
  • Energy conservation
  • Environmental management
  • Facility management
  • Operations management
  • Consulting
    • Toxic use reduction
    • Waste reduction
    • Emission reduction

Today

question1

Question

Which sector is most likely to lead us toward a more sustainable world in the years ahead? A. Government B. Civil Society C. Business

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