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Making Corporate Sustainability “Sustainable”
Carrie Freeman
EBBF Annual Conference
Lisbon Oct. 7, 2011
Why Are Companies Doing It?
RISK MANAGEMENTSupply chain
Natural resource depletionRegulation
Community pressure
BUSINESS AS USUALCost savings
BrandCompetition
FUELING GROWTHNew productsNew markets
Social Governance Environmental
Implementation Phases
Point of ViewEngaging the hearts of executives
Organization IdentityCreating a culture of sustainability
Systems and ProcessesDesigning ROI tools
Foundation of GrowthDeveloping innovation strategies
Half the world’s population lives on less than $2 a day
2/3rds of the world's population will face water stress by 2025
Point of ViewEngaging the hearts of executives
Computing power limits the accuracy of climate prediction
Provide incentives
Measure
engagement
Request involvement
Provide training
Set goals
Demonstrate corporate commitment & communicate
Visible advocate
Incorporate into all
business operations
and performance
management
Valued
Commit
Empowered
Support
Understanding
Involve
AwarenessInform
Norm
Expect
EM
PL
OY
EE
OR
GA
NIZ
AT
ION
Employees are
aware of company’s
environmental
commitment,
performance and
initiatives.
Employees
understand the
connection between
their actions and
company’s footprint
and are inspired to
participate
individually in efforts.
Employees are
encouraged in their
footprint reducing
efforts and barriers
are removed.
Employees are
valued for their
environmental
efforts. Goals and
performance
measurements are
in alignment with
this value.
Sustainability is
integrated into all
decision making
processes;
consciously and
unconsciously
MA
NA
GE
ME
NT
Organization IdentityCreating a culture of sustainability
Recruitment and Retention
A National Geographic magazine commissioned survey in Feb 2008, indicated that more than 80 percent of U.S. workers polled said they believe it is important to work for a
company or organization that makes the environment a top priority.
A study by the Students for Responsible Business concluded 83% percent of respondents chose an offer from a more socially responsible company if the salaries offered were equal,
while over 50% percent were willing to take a lower salary to work for a company with a good sustainable development reputation.
In 2009, many graduating Harvard MBAs signed a “MBA oath” showing their interest in working for companies that “strive to create sustainable economic, social and
environmental prosperity worldwide.”
Traditional ROIRevenue GrowthCost Reduction
Broader Business Value
Employee EngagementLicense to OperateRisk Management
Supply Chain Customer Benefit
Reputation and Brand
+Societal Value
CommunitySociety
Environment+
Shareholder Value
Systems and ProcessesImplementing a broader financial framework
Integrated Value Framework
Sources: Intel information based on multiple frameworks, including McKinsey and Boston College
Center for Corporate Citizenship, “How Virtue Creates Value for Business and Society”, April 2009
REVENUEOPERATIONSRISK
MANAGEMENT BRAND
Growth andInnovation
Cost Savings andContinuous
Improvement
License toOperate andGovernance
Reputation andGoodwill
Copyright © 2010 Intel Corporation. All rights reserved. Intel and the Intel logo are trademarks or registered trademarks of Intel Corporation or its subsidiaries in the United States and other countries.*Other names and brands may be claimed as the property of others.
• Market expansion
• Product innovation
• New customer needs
• Operational efficiency
• Management quality
• Employee engagement
• Regulatory risk
• Community engagement
• Supply chain responsibility
• Differentiation
• Trusted partner
• Goodwill
10
Companies must meet the needs of humanity while doing so with few resources. This will define sustainable growth.
Foundation of GrowthDeveloping innovation strategies
-C.K. Prahalad and R.A. Mashelkar, HBR July 2010