John Elkington

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Instituto Ethos: June 2006: 

Instituto Ethos: June 2006 THE SOCIALLY RESPONSIBLE COMPANY Challenges, Dilemmas and Conflicts

Menu: 

Menu Introduction Challenges Dilemmas Conflicts Top-down, bottom-up

1 Introduction : 

1 Introduction

Slide5: 

Director & Chief Entrepreneur - SustainAbility (Chairman, 1996-2006) Chair Environment Foundation ECGD Advisory Council Advisory Boards/Councils - B&HRRC, DJSI (3M), Ethos, RSA, WWF, Zouk

Slide6: 

Founded 1987 Team Core Team ~25 Nationalities 11 Council 12 Faculty 60> Mission To inspire and support innovation that creates tomorrow’s value

2 Challenges: 

2 Challenges

Slide8: 

Clients, partners, languages Reputational risk > competitive advantage Corporate citizenship Corporate responsibility Corporate social responsibility Eco-efficiency, eco-effectiveness Fair trade Human rights Sustainable development (e.g. triple bottom line)

Slide9: 

A.G. Lafley: $100m donations—new focus on children Environment: resources, water (cool-water washing), waste Social: health, hygiene (PUR), education Economic: shareholder value, employment, taxes, fees and contributions

4Bs of ‘Blended Value’: 

4Bs of ‘Blended Value’

4Bs of ‘Blended Value’: 

4Bs of ‘Blended Value’

4Bs of ‘Blended Value’: 

4Bs of ‘Blended Value’

4Bs of ‘Blended Value’: 

4Bs of ‘Blended Value’

Slide16: 

Lee Scott: ‘We should view the environment as Katrina in slow motion’ Old: Energy efficiency, waste New: Renewables, roofspace, sustainable fish Easy wins 1-3 years projects ‘Game Changers’

Fourth Wave - Creativity - Innovation - Enterprise - Scale: 

Fourth Wave - Creativity - Innovation - Enterprise - Scale

3 Dilemmas: 

3 Dilemmas

Slide19: 

2002-2006 2000: climate change 2005: poverty, climate, global governance … 2006: SD in China and India, financial crises, pandemics in globalized economy …

Slide20: 

Green CEO Stakeholders’ 3 priorities SUVs, Bold Moves Junk bond status? Challengers …

4 Conflicts: 

4 Conflicts

Slide22: 

Andrew Liveris 2015 Sustainability Goals: Sustainable Chemistry Products Designed to Solve World Challenges 4 MDGs: Water Food Housing Personal health and safety

Slide23: 

Chad Holliday: board issue Blind spots (e.g. CFCs) ‘Sustainable Growth’, e.g. oil > cellulose (biotech) But … PFOA, Ti02 … Evolution of human rights, e.g. ‘bodily trespass’

Slide25: 

Amazon, Google, etc ‘Greentech’, $100 million, $100,000 KPCB ‘Green Innovation’ prize 3 megatrends 1: energy security 2: megacities 3: abrupt climate change

5 Next Steps: 

5 Next Steps

Slide27: 

Top-down, bottom-up 1 Public Relations, Legal Advisors  Environment Managers, Project Planners  Process and Product Design, Marketing (TQM)  CEOs, Investor Relations, Boards (e.g. NEDs)  CFOs, Entrepreneurs, Investment Bankers, VCs

Slide28: 

Bottom-up Our ‘Wave 4’ Strategy Financial markets Implementation Emerging economies 3-year Skoll Program Globalization 2015 Global Reporters 2006 Millennium Development Goals

Slide29: 

www.sustainability.com www.johnelkington.com elkington@sustainability.com