Introduction- The thirst for profit made their enterprise unsustainable. The example of the whaleing

business in America ex which for long survived the example of PCOs in Pakistan and all around the world.

- Humans have failed to learn from their past as another similar industry is on the verge of extinction i.e. the fishing industry.

- For a business to thrive it must have financial stability with renewing the social, environmental and economic resources they require.

- Page x- Sustainability means economic growth without the expense of future environmental assests

and at the expense of future generations.- “An organization that creates profits for its shareholders while protecting the environment

and improving the lives of those with whom it interacts.- The key difference is that a sustainable difference remains successful rather than provide

short-term monetary gains.- Sustainable organizations live of interest rather than depleting their resources.- The foundation of sustainability lies in independence.- Sustainable business do not deplete resources rather “Enriches the environment”- Page xi- Sustainability honors the ties with other fragments of connected stakeholders and the

society in general by respecting their needs and in turn ensuring their success and growth.- By embracing sustainability the interdependence between the society is considered.- Start from here - Sustainability is often confused with other terms such as CSR (Corporate

social responsibility) which is used to benefit the society. The two terms are not the same. Sustainability both refers to the benefit to the society and the organization.

- Page xii- Similarly sustainability is also confused with business ethics which is used to address a

narrow yet a useful sphere or organizational working.- Sustainability encompasses a wide range of social responsibilities linked to the

environment and their overall relationship to the profit.- It is often argued that sustainability benefits the society but it must be understood that

companies can too prosper if they do the right thing.- Triple bottom line by John Elkington – Companies must judge their performance not only

in the light of financial profits (ROI), but through broader economy, environment and the society in which they operate. ROI should be positive for – “Economic, environmental and social”

- Page xiii- This is natural as in the process of manufacturing the company does not only use financial

resources.- Triple bottom measures the effect of the organization on the whole world. Through this one

can measure the quality that an organization is creating for its stakeholders and society.- Page xiv- “Practice of sustainability is an art where as its measurement is a science”- Big organizations with a rich and strong history can now fall hard if they do not adopt the

practice of sustainability.- Sustainability has grown in importance ever since we have descended into the era of

greater accountability. Accountability is no longer limited to the organizations but has grown to the supplier regions as well. With the advance in media and the use of internet the term accountability has been redefined and is constantly evolving with the emergence of technological change.

- Page xv- Examples include child labour of Nike. Low wages in Wal-Mart and obesity in

McDonald’s- Example of sustainability includes Tesla, Prius (the fastest selling car). DuPont world’s

largest soy protein producer.- PepsiCo claims annual revenue increase of $250M from new purchasing programs that

seek out companies owned by women and minority and 3M saves through pollution prevention programs.

- Corporations are reaching out to their critics.- Page xvi- The notion that profits are not linked to social and environmental impacts is

shortsightedness.- Social and environmental issues are creating risks and opportunities.- 2 The sustainability sweet spot- Too often the concept of sustainability is considered as a distraction and its

implementation a burden. To rid themselves of the responsibility they coerce their workers to volunteer which reveals a misunderstanding “Sustainability is not philanthropy or corporate charity of which there is nothing wrong with”.

- A truly sustainable company would not deprive the community rather would enrich it.- Sustainable companies try to avoid conflict between the society and the stakeholders.- Sustainability sweet spot: the place where the pursuit of profit blends seamlessly with the

pursuit of common good.- The example of GE’s before and after Jack Welch vs Jeffery Immelt. “if it wasn’t good for

business we probably would not do it”- Page 23- GE’s intention of spending more on environmental friendly technology and getting more

revenue from it.- True sustainability naturally steers the organization towards the right path. The right path

includes great profits and better social responsibility as compared to a non-sustainable approach.

- Figure of sustainability sweet spot. Through efforts the overlap can be increased to an ideal state where the interest of the company in coinciding completely with the social and environmental needs.

- Page 24- The sweet spot that is the overlap varies form organization to organization for instance the

sweet spot of Pepsi is the overlap between increased market share and public health. And there can be many “sweet spots” for an organization. i.e cost reduction vs environmental up-gradations / improvements.

- Page 26- Through the identification of sweet spots Pepsi is basing its operations on a sustainable

footing for the future. By strengthening the roots of the company rather than undermining.- By fitting the companies activities in or as close as possible to the sweet spot will ensure

that the company has real long term advantages over its rivals.- Page 27- Challenge for oil companies is that they rely on a finite source, the supply of which

generates pollution. In the long term either their supply or the tolerance for pollution run out hence they are non-sustainable.

- Shift towards a clean and renewable source should be a responsible and a profitable choice in such a case.

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- Page 28- All business choices have an impact on the environment and the world.- Page 29- The sustainability matrix. You can move towards the east without the compromise on

profits just as DuPont has done from chemicals to soy protein.- Paraphrased: One way forward for a company which burns dirty coal is to invest in clean

coal technology its long term effect and savings can be used to invest in clean renewable technologies.

- Random e.g: Making a pen from recycled cd cases – shell.- The example of country lane tours – rearranged tours where the meeting point is near a

metro station. Example of metro can be given as well.- Shift of Toyata towards a hybrid was considered a taboo but now its supply cannot keep up

with its demand.- Page 30- Remarkable example of finding a sweet spot: Toyota winning both bets of price of gas

versus the air pollution.- Page 31- Environmental performance may yield value which is hidden. It can be understood that if

oil companies value environment and its resources they will not end up exhausting their mail source of income.

- Page 32- It cannot be proven that the success of companies embracing sustainability is due to

sustainability, however there is a positive correlation between the two. But similarly principles of TQM and six sigma were not proved until huge investments poured in to prove their potential.

- Like most business sustainability does not guarantee financial success.- They way through which sustainability concepts are viewed have evolved from being

hysterical and impractical to visionary and imperative.- Page 33- Three ways sustainability enhances your business – Protection, Running and Growth- Protection;- Includes the reduction of risks, harm to customers employees, environment, the source of

income, relations with stakeholders. It also involves the identification of failures.- Example of Monsanto (engineering a genetically modified seed with inbuilt insecticide).- Page 34- Their failure suggest that the practice should be scientifically viable as well.- The demands of sustainability must be meat in a wholeistic manner or failure is inevitable.

In the process creating difficulty for other similar organizations to embrace sustainability as well.

- Running the Business;- Includes reducing costs, method improvements, elimination of non-value adding activities.

“Obtaining access to more capital at a lower cost”.- Eco-friendliness is an integral part of sustainability as it ensures the use of minimum

resources required to make a product thereby increasing company’s profitability.- Page35- It can be seen that pollution and inefficiency are directly proportional to each other. - With STMircroelectronics 2% invenstment in environmental improvements they have

reduced 28% in electrical and 45% in water savings. Energy conservation projects pay for themselves with an average of 2.5 years.

- Growing the Business

- Meaning of expansion of business – new products and services, innovation and increasing market share.

- Sustainability fosters innovation and encourages expansion. Prius is just one example. Toyota cannot keep up with the demand.

- Sustainability opens up new avenues of the un-thought of green appliances is just one example. Furthermore it opens up business to other markets which without sustainability would be inaccessible.

- Page 36- By reaching people who live on less than 2 $s a day companies can reap huge profits and

benefit the people by increasing their buying power. Sustainable business create value for the business and the society.

- For instance iodized salt market in India, Ghana, Kenya and Nigera. Creating business value as well as help people cure iodine deficiency. This is a desirable sweet spot.

- Initiavites of reaching people at the “bottom of the pyramid” yields great long term benefits while they do come at a cost of out of the box thinking.

- Additional Business Benefits of Sustainability- Page 37- Hard side: The direct and measurable cost.- Soft side: Company’s reputation, employee satisfaction – Factor that are hard to quantify.- Companies willing to establish employees through, tranings and college fund etc are

establishing employees that are independent to create value to the business using smart decisions.

- Case study of Wegman’s (named the best company to work for in America by Fortune). Although they spend about 17% as labor costs as compared to 12% normal they save a sizeable amount of 300Million due to less turnover.

- Hard Cases- It is short-slightness to expect the benefits of sustainability right after its implementation.

In the beginning it may require time, resources and manpower which in hard terms would me less profit at that particular time.

- Page 38- Distinguishing between responsible and sustainable behavior is very important (e.g of

meeting SUV demands while working to mend customer’s preferences by making hybrids more profitable.

- Responsibility is streeing the will of the company in the direction the peoples demands even if they are narrow minded.

- Example of oil and gas vs sustainability. But “we” the customers should help them make the transition to more sustainability and this is where the responsibility of customers comes.

- There is a possibility of having a business which cannot be sustainable in nature. For instance making genetically faulty food. In such cases the business should close down its operations.

- Why Now?- Page 39- Not only does sustainability increase profitability but it also ensures the protection of

business against environmental and financial risks. Furthermore it builds and strengthen the company. It greatest benefit is that it ensures long term success.

- Sustainability’s need has been arisen due to its need and the failure of early huge business conglomerates like the whaling industry purely due to the inability to forecast.

4. What are the main features and principles of ‘Sustainable business’? 5. Explain how Sustainability help creating Long-term business value. 6. Explains what are the new performance demands introduced by ‘World class manufacturing’, and why ‘Traditional management accounting based performance control systems’ are seen inadequate in such a demanding manufacturing setting. 7. Define and explain what is meant by ‘Performance measurement and control systems’ and briefly discuss the main features of such a system. 8. Briefly explain the principal tensions within a business that can be managed by use of an effective performance measurement and control system.