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Luitzen de Boer Jon Halfdanarson SISVI WP3 International seminar: Shared Value Creation in a supply chain perspective Trondheim, 2. May 2017 SISVI SISVI Report 2017-04

SISVI WP3 International seminar: Shared Value Creation … ·  · 2017-10-04SISVI WP3 International seminar: Shared Value Creation in a supply chain ... This report is a summary

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1

Luitzen de Boer

Jon Halfdanarson

SISVI WP3 International seminar: Shared Value Creation in a supply chain perspective

Trondheim, 2. May 2017

SIS

VI

SIS

VI R

ep

ort

201

7-0

4

NTNU Trondheim Postadresse: 7491 Trondheim

Norges teknisk-naturvitenskapelige universitet Besøksadresse: Alfred Getz vei 1

Fakultet for samfunnsvitenskap og teknologiledelse Telefon: 73 59 35 11

Institutt for industriell økonomi og teknologiledelse Telefaks 73 59 10 45

Org.nr. 974 767 880

Title: Bærekraftaspekter i innovasjonsprosesser

Report no.:

SISVI Report 2017-04

Project: Sustainable Innovation and Shared Value

Creation in Norwegian Industry

Project no.:

Contracting partners:

Norwegian Research Council

SINTEF Raufoss Manufacturing AS

Cooperating companies:

Plasto AS, Hexagon Ragasco AS, Raufoss Water & Gas

AS, Wonderland AS, Ålesund Kunnskapspark AS,

Forsvarsbygg AS

Date: 2. May 2017

Number of pages: 2

Number of appendices: 1

Authors:

Luitzen de Boer

Jon Halfdanarson

Signature:

Responsible:

Department of industrial economics and technology

management (IOT),

Norwegian University of Science and Technology

(NTNU)

Signature:

Summary:

This report is a summary of the SISVI WP3 International seminar, “Shared Value Creation

in a supply chain perspective”. The seminar was held in English, in Trondheim, Norway.

Professor Thomas Y. Choi, from Arizona State University and now also employed at NTNU

in Trondheim joined us for a seminar on buyer – supplier relationships. His framework for

describing buyer-supplier relations, using terms like relational posture and relational

intensity, was discussed with great interest. Two partner companies were present, and

presented relevant experiences concerning their supplier relations. Associate professor from

the University of Gavle, Rodrigo Lozano also participated, and presented some insight on

corporate sustainability and its stakeholders.

Appendices:

Workshop presentations.

Key words: Marine plastic waste, innovation, shared value creation, Circular business

models, possibilities and barriers

Distribution/access: Open

Contents Participants (11) ......................................................................................................................... 2

Program (Norwegian) ................................................................................................................. 3

Appendix 1 – Seminar presentations .......................................................................................... 4

Participants (11)

Thomas Choi NTNU

Rodrigo Lozano University of Gävle

Per Erik Dalen Ålesund Kunnskapspark

Inger Kristine Liodden Hexagon Ragasco

Luitzen de Boer NTNU

Michael Jenssen NTNU

Marit Moe Bjørnbet NTNU/SRM

Silje Aschehoug Sintef Rausfoss Manufacturing

Paritosh Deshpande NTNU

Heidi Dreyer NTNU

Jon Halfdanarson NTNU

Shared Value Creation in a supply chain perspective

Room 1164, NTNU, Trondheim, Tuesday 2. May 2017 Program

09.30 Welcome and introduction to SISVI, by professor Luitzen de Boer

Company presentations. Supplier relationships and main challenges. - Hexagon Ragasco, by Inger Kristine Liodden - Ålesund Kunnskapspark, by Per Erik Dalen

11.30 – 12.30 Lunch Buyer – supplier relationships, by professor Thomas Choi

- Interactive presentation with discussions Corporate sustainability and stakeholders, by associate professor

Rodrigo Lozano 14.30 – 14.50 Wrap up and summary of the day

Appendix 1 – Seminar presentations

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apab

le o

f pro

duci

ng u

p to

2m

illion

cy

linde

rs p

er y

ear

•IS

O90

01 c

ertif

icat

ion

cove

rs a

ll st

eps

in

the

valu

e ch

ain

and

all p

roce

sses

25

MA

NU

FAC

TUR

ING

PR

OC

ESS

•Fi

berg

lass

fil

amen

ts w

ound

ar

ound

line

r and

ov

en c

ured

•Pn

eum

atic

pr

essu

re te

st to

30

/33

bar.

•Ti

ghtn

ess

test

to

18 b

ar w

ith

heliu

m

•H

DPE

out

er

casi

ng in

ject

ion

mou

lded

.

•Th

ree

piec

es a

nd

mec

hani

cal j

oint

•H

DPE

line

r blo

w

mou

lded

AVVE

NTE

R

RIK

TIG

BI

LDE

FRA

RO

NN

Y

26

OU

R Q

UA

LITY

ASS

UR

AN

CE

•St

rict Q

A sy

stem

ens

ures

tota

l tra

ceab

ility

–fro

m ra

w m

ater

ials

th

roug

h to

fini

shed

pro

duct

s

•O

ver 3

5 po

ints

dur

ing

man

ufac

ture

w

here

pro

duct

ion

data

on

each

cy

linde

r is

colle

cted

and

sto

red

27

PER

IOD

ICR

ETES

T -

PRO

CED

UR

E

•Th

e pr

oced

ure

for p

erio

dic

rete

st fo

r com

posi

te c

ylin

ders

is n

ot y

et

spec

ified

in A

DR

/RID

•W

e re

com

men

d re

fere

nce

to E

N14

40 o

r ISO

1162

3

•Th

e re

fere

nced

sta

ndar

ds a

re o

pen

to s

ever

al p

roce

dure

s

•R

etes

t pro

cedu

re m

ust b

e ra

tifie

d by

the

com

pete

nt b

ody

in e

ach

coun

try

•H

exag

on R

agas

co re

com

men

dsI

nter

nal /

Ext

erna

l vis

ual i

nspe

ctio

n (w

ith li

ght s

ourc

e)P

ress

ure

test

(hyd

raul

ic o

r pne

umat

ic)

Lea

k tig

htne

ss te

st w

ith v

alve

inst

alle

d

De-

valv

ing

Visu

al

Insp

ectio

n Ex

tern

al

Visu

al

Insp

ectio

n w

ith

Inte

rnal

lig

ht s

ourc

e

Pres

sure

Te

stEv

acua

tion

Valv

ing

Leak

Tes

t

Mar

king

with

date

fo

r nex

tre

test

EUR

OPE

AN

CO

MPA

NIE

SR

E-Q

UA

LIFY

ING

OU

R C

YLIN

DER

S

Fran

ce•

Gaz

Liqu

efié

sIn

dust

rie(G

LI) S

as

Port

ugal

•Pr

ozin

co –

Con

stru

ção

e m

anut

ençã

o S.

A.

Ger

man

y•

Schä

psm

eyer

Gm

bH•

Gas

flasc

henw

erk

Grü

nhai

nG

mbH

Den

mar

k•

Cyl

indr

icD

enm

ark

A/S

UK

•So

uth

Staf

f Ind

ustri

es L

tdC

zech

Rep

ublic

•C

yTec

Cyl

inde

r Te

chno

logi

es s

.r.o.

Finl

and

•O

y In

noga

s Ab

Vakk

a-Ka

asu

Oy

Luxe

mbo

urg

•Pr

esta

Cyl

inde

rs S

.aR

.l.

29

REC

YCLI

NG

CYL

IND

ERS

HD

PE c

asin

gC

asin

g re

mov

ed, m

ater

ial

shre

dded

and

re-u

sed

HD

PE li

ner

Mat

eria

l shr

edde

d an

d re

-use

d

Fibe

rand

resi

nSh

redd

ed, h

eat t

reat

ed a

nd re

-us

ed

Bra

ss p

arts

Mel

ted

dow

n an

d re

-use

d af

ter

rem

oval

30

BR

AN

DIN

G

31

TAIL

OR

-MA

DE

DES

IGN

TO

STR

ENG

THEN

YO

UR

BR

AN

D

•St

reng

then

you

r bra

nd w

ith a

rang

e of

cyl

inde

rs c

usto

miz

ed w

ith y

our

com

pany

col

or a

nd lo

go.

•To

p an

d bo

ttom

cas

ing

can

be c

olor

-m

atch

ed to

you

r bra

nd.

•C

ompa

ny lo

go o

r mar

ketin

g m

essa

ge c

an e

ither

be

embo

ssed

or

prin

ted

in fu

ll co

lor.

•Fu

ll co

lor p

rint (

Hot

stam

p) o

n up

per

part

of c

ylin

der c

asin

g (m

ax 1

00 m

m

wid

e an

d 55

mm

hig

h). A

vaila

ble

in

a w

ide

rang

e of

col

ors.

32

REF

EREN

CES

But

agaz

, Fr

ance

SOM

E R

EFER

ENC

ES –

DC

C G

RO

UP

Flog

as,

UK

and

Irel

and

Ben

egas

, Th

e N

ethe

rland

s

34

SOM

E R

EFER

ENC

ES –

LIN

DE

GR

OU

P

Aga,

Fi

nlan

d, Ic

elan

d, N

orw

ay a

nd S

wed

en

35

SOM

E R

EFER

ENC

ES –

RU

BIS

GR

OU

P Vito

gaz,

Switz

erla

ndR

ubis

,W

est I

ndie

s

36

Rub

is,

Ber

mud

aR

ubis

,Po

rtug

al

SOM

E R

EFER

ENC

ES –

SHV

GR

OU

P

Prim

agaz

, D

enm

ark

and

Swed

en

37

SOM

E R

EFER

ENC

ES –

UG

I GR

OU

P

Kos

an G

as,

Den

mar

kFl

aga,

Au

stria

and

Sw

itzer

land

Anta

rgaz

, B

elgi

um a

nd F

ranc

e

38

SOM

E R

EFER

ENC

ES -

AFR

ICA

Safe

Gas

, K

enya

, Rw

anda

and

Som

alia

Vivo

(She

ll),

Mau

ritiu

s an

d U

gand

a

39

SOM

E R

EFER

ENC

ES -

ASI

A

EC G

as,

Phili

ppin

esW

agas

, Ta

iwan

40

Bex

imco

Petr

oleu

m,

Ban

glad

esh

SOM

E R

EFER

ENC

ES –

EUR

OPE

Bey

fin,

Italy

Dop

pler

, Au

stria

Lam

poga

s,

Italy

41

SOM

E R

EFER

ENC

ES -

MID

DLE

EA

ST

Gas

co, S

audi

Ara

bia

Woq

od, Q

atar

Haz

aar,

Saud

iAra

bia

42

Gas

Fill

ing

Com

pany

Taj

i, Ira

q

PDV

Gas

Com

unal

, Ve

nezu

ela

SOM

E R

EFER

ENC

ES –

SOU

TH A

MER

ICA

Lipi

gas,

C

hile

43

Meg

al,

Uru

guay

SOM

ER

EFER

ENC

ES –

ISLA

ND

S

Mal

dive

Gas

Gaz

de T

ahiti

Haw

ai’i

Gas

, USA

Seyc

helle

s Pe

trol

eum

Com

pany

44

TEST

IMO

NIA

LS

•S

ince

we

intro

duce

d th

e co

mpo

site

LP

G c

ylin

ders

from

Hex

agon

Rag

asco

in

1999

, we

have

sol

d ov

er 1

.5 m

illio

n un

its in

Nor

ther

n E

urop

e, e

spec

ially

in

Sw

eden

, Nor

way

and

Fin

land

. Hex

agon

Rag

asco

’sm

oder

n pr

opan

e cy

linde

rs

help

ed u

s in

crea

se o

ur m

arke

t sha

re a

nd th

e gr

owth

we

have

exp

erie

nced

si

nce

the

laun

ch h

as s

urpa

ssed

our

bes

t est

imat

es a

nd e

xpec

tatio

ns.

Mor

ten

Ron

ess,

Reg

iona

l Pro

duct

Man

ager

, Eur

ope

Nor

th, A

GA,

Lin

de

Gro

up.

•W

e w

ere

the

first

to in

trodu

ce H

exag

on R

agas

co c

ompo

site

cyl

inde

rs in

Isra

el

not o

nly

as a

pro

duct

that

wou

ld in

crea

se o

ur s

ales

, but

als

o w

ould

rein

forc

e ou

r pos

ition

as

mar

ket l

eade

r and

inno

vato

r. Fo

cusi

ng o

n its

ligh

twei

ght a

nd

trans

luce

ncy,

we

nam

ed it

"PIC

KS

EE

”. W

ithin

two

mon

ths,

and

toge

ther

with

targ

eted

mar

ketin

g ca

mpa

igns

mai

nly

for b

arbe

cue

use,

sal

es o

f cyl

inde

rs in

crea

sed

dram

atic

ally

and

our

mar

ket

shar

e gr

ew.

New

cus

tom

ers

are

seek

ing

the

new

revo

lutio

nary

cyl

inde

r; it

is

a m

arke

t gam

e ch

ange

r. M

icha

el F

radi

s, V

ice

Cha

irman

, AM

ISR

AGAS

, Isr

ael.

45

TEST

IMO

NIA

LS

•H

exag

on R

agas

co c

ompo

site

LP

G c

ylin

ders

are

cha

ngin

g th

e LP

G in

dust

ry in

th

e P

hilip

pine

s w

ith th

e in

trodu

ctio

n of

saf

er, m

ore

conv

enie

nt a

nd m

ore

dura

ble

char

acte

ristic

s fo

r hom

e-us

e co

mpa

red

to s

teel

cyl

inde

rs. E

C G

as

cust

omer

s ha

ve re

porte

d go

od re

view

s w

here

in th

ey g

reat

ly a

ppre

ciat

e th

e tra

nslu

cenc

y of

the

cylin

ders

and

the

appe

alin

g de

sign

.JC

Mar

tínez

, Div

isio

n M

anag

er, E

aste

rn C

ompo

site

Gas

, Phi

lippi

nes.

•W

e in

trodu

ced

Kos

anga

sLi

ght (

Hex

agon

Rag

asco

com

posi

te c

ylin

ders

) int

o th

e D

anis

h m

arke

t in

2001

. Sin

ce th

en a

gre

at n

umbe

r of c

usto

mer

s ha

ve

expe

rienc

ed th

e be

nefit

s of

the

com

posi

te g

as c

ylin

der b

rand

ed u

nder

the

tag

line:

Lig

ht, C

lear

and

Saf

e. K

osan

gas

Ligh

t has

mad

e lif

e ea

sier

for o

ur

deal

ers,

com

mer

cial

and

dom

estic

cus

tom

ers

–bo

th fo

r out

door

s an

d in

door

s us

e.

The

light

wei

ght c

ylin

der h

as h

ad a

n en

orm

ous

influ

ence

on

the

popu

larit

y of

cy

linde

red

gas

for h

ome

use

and

is to

day

the

first

cho

ice

of g

as c

ylin

ders

; a

succ

ess

stor

y.

Sann

eM

ølle

rNie

lsen

, Nor

dic

Mar

ketin

g M

anag

er, K

osan

Gas

a/s

, D

enm

ark,

UG

I Gro

up.

46

TEST

IMO

NIA

LS

•Vi

king

Cyl

inde

rs, w

hich

is H

exag

on R

agas

co N

orth

Am

eric

an b

rand

, are

idea

l fo

r Haw

aii’s

trop

ical

clim

ate.

The

y ar

e ru

st p

roof

, lig

htw

eigh

t and

sta

ckab

le,

idea

l for

the

spac

e co

nstra

ints

that

com

es w

ith is

land

livi

ng.

Vik

ing

Cyl

inde

rs

are

of th

e hi

ghes

t qua

lity

cons

truct

ion

and

very

saf

e. I

am

ext

rem

ely

prou

d th

at m

y co

mpa

ny o

ffers

Vik

ing

Cyl

inde

rs to

cus

tom

ers

in th

e cy

linde

r ex

chan

ge p

rogr

am.

Che

ryl L

ien-

Fua,

Cyl

inde

rExc

hang

e Pr

ogra

mM

anag

er, H

AWAI

'I G

AS,

USA

.

•W

e in

trodu

ced

the

com

posi

te c

ylin

ders

man

ufac

ture

d by

Hex

agon

Rag

asco

in

to th

e K

enya

n m

arke

t in

Dec

embe

r 201

3 un

der t

he n

ame

Saf

e G

as. W

ithin

th

e fe

w m

onth

s th

at th

e pr

oduc

t has

bee

n in

the

mar

ket,

we

have

man

aged

to

acqu

ire d

istri

buto

rs fo

r the

cyl

inde

rs, p

artn

ered

with

cor

pora

tes

and

Sav

ings

an

d C

redi

t Co-

oper

ativ

es a

s w

ell a

s so

ld th

e pr

oduc

t to

indi

vidu

al c

usto

mer

s w

ho a

re e

xcite

d by

the

grea

t inn

ovat

ion

of th

e co

mpo

site

gas

cyl

inde

r. W

e ar

e gl

ad to

hav

e pa

rtner

ed w

ith H

exag

on R

agas

co a

nd fo

rese

e a

grea

t fut

ure

as

we

grow

toge

ther

in th

e gr

eate

r Eas

t Afri

can

regi

on.

Abdu

lazi

z M

. Abd

i, M

anag

ing

Dire

ctor

, Saf

e En

ergy

, Ken

ya.

47

TEST

IMO

NIA

LS

•Th

e 17

pou

nds

Hex

agon

Rag

asco

com

posi

te c

ylin

ders

wer

e in

trodu

ced

to th

e B

erm

uda

mar

ket i

n 20

12. T

he c

ylin

ders

are

offe

red

thro

ugho

ut o

ur

reta

il se

rvic

e st

atio

n ne

twor

k on

an

exch

ange

bas

is. A

lthou

gh m

ore

cost

ly

than

ste

el th

e ad

vant

ages

mak

e th

is th

e cy

linde

r of c

hoic

e. T

he h

arsh

en

viro

nmen

t (sa

lt ai

r) in

Ber

mud

a re

duce

s th

e lif

e of

a s

teel

cyl

inde

r to

7 or

8 y

ears

. Thi

s is

onl

y ac

hiev

ed in

con

junc

tion

with

a c

ostly

mai

nten

ance

pr

ogra

m. N

o m

aint

enan

ce a

nd h

igh

dura

bilit

y m

akes

for a

sou

nd

inve

stm

ent,

than

k yo

u H

exag

on R

agas

co!

Dav

id R

ose,

Man

agin

g D

irect

or, R

UB

iSEn

ergy

Ber

mud

a, R

UB

IS

Gro

up

48

EXTR

A FE

ATU

RES

49

RFI

D: K

EEPI

NG

TR

AC

K O

F YO

UR

CYL

IND

ERS

•H

exag

on R

agas

co c

ylin

ders

can

be

sup

plie

d w

ith R

FID

chi

ps

inst

alle

d by

IDTE

K

•Al

l RFI

D n

umbe

rs lo

gged

on

a cu

stom

ized

com

pany

dat

abas

e

•Al

low

s co

st-e

ffect

ive

man

agem

ent

of c

ylin

der s

tock

s th

roug

h th

e w

hole

sup

ply

chai

n

•Al

low

s im

prov

ed ro

tatio

n of

cy

linde

rs a

nd b

ette

r cus

tom

er

serv

ice

•W

ith R

FID

the

Rea

l Cyl

inde

r D

eliv

ery

Cyc

le c

an b

e m

easu

red

50

RFI

D: E

ND

-TO

-EN

D D

IGIT

AL

LPG

OPE

RAT

ION

S B

Y PE

GA

SUS

•Ph

ysic

al T

rack

ing

& C

RM

•D

igita

l Con

trol &

Ben

chm

arki

ng

51

THA

NK

YOU

sale

sare

a@he

xago

nrag

asco

.com

02.0

5.17

Per E

rik D

alen

SISV

I

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osje

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kuba

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jene

ster

Pros

jekt

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plet

t ink

ubat

orsy

stem

Grü

nder

e og

ent

repr

enør

er m

ed p

oten

siale

for v

ekst

hopp

id.n

oPr

ekub

ator

FOU

-inku

bato

rIn

dust

ri-in

kuba

tor

Stud

entin

kuba

tor

Ung

t Ent

repr

enør

skap

Eros

INGREDIENTS FOOD

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Blue

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orge

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•VR

Stud

io•U

nike

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flate

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tart

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Thom

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ctor

of C

APS

Res

earc

hW

. P. C

arey

Sch

ool o

f Bus

ines

sA

rizon

a St

ate

Uni

vers

ity

May

201

7

We

empo

wer

sup

ply

chai

n pr

ofes

sion

als

with

pro

foun

d di

scov

ery,

po

wer

ful c

onne

ctio

n, a

nd c

lear

fore

sigh

t.2

Que

stio

ns

•W

hat i

s yo

ur o

rgan

izat

ion’

s ba

sic

busi

ness

mod

el—

wha

t is

your

val

ue

prop

ositi

on to

you

r cus

tom

ers?

•W

hat r

ole

do y

our s

uppl

iers

pla

y in

th

at p

roce

ss?

We

empo

wer

sup

ply

chai

n pr

ofes

sion

als

with

pro

foun

d di

scov

ery,

po

wer

ful c

onne

ctio

n, a

nd c

lear

fore

sigh

t.3

Team

Bre

akou

t•

Who

are

you

r maj

or s

uppl

iers

?•

How

long

hav

e yo

u w

orke

d w

ith th

em?

•An

y go

od e

xper

ienc

es?

Not

so

good

ex

perie

nces

? An

y “u

gly”

exp

erie

nces

?•

Cou

ld y

ou p

lace

them

on

the

buye

r-su

pplie

r rel

atio

nshi

p co

ntin

uum

of

“adv

ersa

rial”

to “c

oope

rativ

e”?

•Ex

plai

n yo

ur c

hoic

es.

We

empo

wer

sup

ply

chai

n pr

ofes

sion

als

with

pro

foun

d di

scov

ery,

po

wer

ful c

onne

ctio

n, a

nd c

lear

fore

sigh

t.4

Cur

rent

Buy

er-S

uppl

ier

Rel

atio

nshi

p Fr

amew

ork

•Ad

vers

aria

l Rel

atio

nshi

p–

Shor

t-ter

m p

ersp

ectiv

e–

Arm

s-le

ngth

ope

ratio

ns•

Coo

pera

tive

Rel

atio

nshi

p–

Long

-term

per

spec

tive

–C

lose

ly-ti

ed o

pera

tions

We

empo

wer

sup

ply

chai

n pr

ofes

sion

als

with

pro

foun

d di

scov

ery,

po

wer

ful c

onne

ctio

n, a

nd c

lear

fore

sigh

t.5

Poin

te o

f Dep

artu

re

•R

elat

iona

l Pos

ture

•R

elat

iona

l Int

ensi

ty

We

empo

wer

sup

ply

chai

n pr

ofes

sion

als

with

pro

foun

d di

scov

ery,

po

wer

ful c

onne

ctio

n, a

nd c

lear

fore

sigh

t.6

Expa

nded

Buy

er-S

uppl

ier

Rel

atio

nshi

p Ty

polo

gy

We

empo

wer

sup

ply

chai

n pr

ofes

sion

als

with

pro

foun

d di

scov

ery,

po

wer

ful c

onne

ctio

n, a

nd c

lear

fore

sigh

t.7

New

Buy

er-S

uppl

ier F

ram

ewor

k

We

empo

wer

sup

ply

chai

n pr

ofes

sion

als

with

pro

foun

d di

scov

ery,

po

wer

ful c

onne

ctio

n, a

nd c

lear

fore

sigh

t.8

Prop

ositi

ons

We

empo

wer

sup

ply

chai

n pr

ofes

sion

als

with

pro

foun

d di

scov

ery,

po

wer

ful c

onne

ctio

n, a

nd c

lear

fore

sigh

t.9

Sam

ple

We

empo

wer

sup

ply

chai

n pr

ofes

sion

als

with

pro

foun

d di

scov

ery,

po

wer

ful c

onne

ctio

n, a

nd c

lear

fore

sigh

t.10

Toyo

ta M

otor

Nor

th A

mer

ica

Dee

pSt

icky

Tran

sien

tG

raci

ous

We

empo

wer

sup

ply

chai

n pr

ofes

sion

als

with

pro

foun

d di

scov

ery,

po

wer

ful c

onne

ctio

n, a

nd c

lear

fore

sigh

t.11

Res

ults

We

empo

wer

sup

ply

chai

n pr

ofes

sion

als

with

pro

foun

d di

scov

ery,

po

wer

ful c

onne

ctio

n, a

nd c

lear

fore

sigh

t.12

Dee

p R

elat

ions

hip

The

deep

rela

tions

hip

enta

ils a

“sta

ble”

but

“r

igid

” rel

atio

nshi

p

We

empo

wer

sup

ply

chai

n pr

ofes

sion

als

with

pro

foun

d di

scov

ery,

po

wer

ful c

onne

ctio

n, a

nd c

lear

fore

sigh

t.13

Stic

ky R

elat

ions

hip

The

stic

ky re

latio

nshi

p is

abo

ut it

s “la

ck o

f re

latio

nal s

yner

gy” a

nd a

mpl

e “o

ppor

tuni

sm.”

We

empo

wer

sup

ply

chai

n pr

ofes

sion

als

with

pro

foun

d di

scov

ery,

po

wer

ful c

onne

ctio

n, a

nd c

lear

fore

sigh

t.14

Tran

sien

t Rel

atio

nshi

pTh

e tra

nsie

nt re

latio

nshi

p re

flect

s a

high

le

vel o

f “am

bigu

ity” b

ut a

t the

sam

e tim

e a

high

leve

l of “

flexi

bilit

y.”

We

empo

wer

sup

ply

chai

n pr

ofes

sion

als

with

pro

foun

d di

scov

ery,

po

wer

ful c

onne

ctio

n, a

nd c

lear

fore

sigh

t.15

Gra

ciou

s R

elat

ions

hip

The

grac

ious

rela

tions

hip

wou

ld o

ffer a

low

le

vel o

f “co

ntro

l” ye

t lea

d to

a h

igh

leve

l of

“inno

vatio

n.”

We

empo

wer

sup

ply

chai

n pr

ofes

sion

als

with

pro

foun

d di

scov

ery,

po

wer

ful c

onne

ctio

n, a

nd c

lear

fore

sigh

t.16

Con

clud

ing

Thou

ghts

•D

eep

B-S

Rel

atio

nshi

p–

May

be n

ot th

e ul

timat

e–

Goo

d fo

r effi

cien

cy b

ut la

ckin

g in

bot

tom

-up

chan

ges

•G

raci

ous

B-S

Rel

atio

nshi

p–

Impo

rtant

–Po

tent

ially

goo

d fo

r inn

ovat

ive

idea

s

We

empo

wer

sup

ply

chai

n pr

ofes

sion

als

with

pro

foun

d di

scov

ery,

po

wer

ful c

onne

ctio

n, a

nd c

lear

fore

sigh

t.17

Con

clud

ing

Thou

ghts

(con

ti)

•Tr

ansi

ent B

-S R

elat

ions

hip

–So

me

adva

ntag

es–

Mar

ket p

roce

ss a

nd fl

exib

ility

•St

icky

B-S

Rel

atio

nshi

p–

Like

a b

ad m

arria

ge–

Littl

e sy

nerg

y an

d lo

ts o

f opp

ortu

nism

We

empo

wer

sup

ply

chai

n pr

ofes

sion

als

with

pro

foun

d di

scov

ery,

po

wer

ful c

onne

ctio

n, a

nd c

lear

fore

sigh

t.18

Team

Bre

akou

t

•Th

ink

abou

t how

you

mig

ht p

lace

som

e of

you

r sup

plie

rs in

one

of t

he fo

ur

quad

rant

s.

•Fe

el fr

ee to

con

side

r sup

plie

rs o

ther

th

an o

nes

from

ear

lier.

Find

at l

east

one

su

pplie

r for

eac

h qu

adra

nt.

•Pr

epar

e st

orie

s as

soci

ated

with

thes

e su

pplie

rs.

We

empo

wer

sup

ply

chai

n pr

ofes

sion

als

with

pro

foun

d di

scov

ery,

po

wer

ful c

onne

ctio

n, a

nd c

lear

fore

sigh

t.19

Dis

cuss

ion

•Le

t’s c

onsi

der s

uppl

iers

in v

ario

us

quad

rant

s.•

How

are

thes

e su

pplie

rs s

imila

r or

diffe

rent

from

the

“maj

or” s

uppl

iers

we

cons

ider

ed e

arlie

r?•

Ove

rall,

how

do

you

thin

k yo

ur s

uppl

iers

ar

e di

strib

uted

acr

oss

the

four

qua

dran

ts?

•W

hat d

o w

e ta

ke a

way

from

this

exe

rcis

e?

Cor

pora

te S

usta

inab

ility

an

d st

akeh

olde

rsR

odrig

o Lo

zano

, PhD

emai

l: ro

drig

o.lo

zano

@hi

g.se

& ro

dloz

ano@

org-

sust

aina

bilit

y.co

mA

ssoc

iate

Pro

fess

orU

nive

rsity

of G

ävle

May

, 201

7Tr

ondh

eim

, Nor

way

Cor

pora

tions

•The

rece

nt s

hift

in fo

cus

to c

orpo

ratio

ns, p

artic

ular

ly th

e la

rger

on

es, i

n th

e su

stai

nabi

lity

deba

te (C

anno

n, 1

994;

Elk

ingt

on, 2

002,

200

5;

Har

t, 20

00) ,

has

aris

en b

ecau

se th

ey a

re p

erce

ived

to b

e re

spon

sibl

e fo

r man

y ne

gativ

e en

viro

nmen

tal a

nd s

ocie

tal

impa

cts

(Dun

phy,

Grif

fiths

, & B

enn,

200

3; H

art,

2000

)

•Non

ethe

less

, cor

pora

tions

hav

e th

e re

sour

ces,

tech

nolo

gy,

glob

al re

ach,

mar

ketin

g sk

ills, a

nd th

e m

otiv

atio

n to

wor

k to

war

ds m

ore

sust

aina

ble

soci

etie

s (D

eSim

one

& Po

poff,

200

0; H

art,

2000

; H

enriq

ues

& R

icha

rdso

n, 2

005)

, as

wel

l as

help

ing

to c

hang

e cu

stom

er

beha

viou

r to

mak

e it

mor

e su

stai

nabl

e (D

eSim

one

& Po

poff,

200

0)

Cor

pora

te S

usta

inab

ility

•C

orpo

rate

act

iviti

es th

at p

roac

tivel

yse

ek to

con

tribu

te to

su

stai

nabi

lity

equi

libria

, inc

ludi

ng th

e ec

onom

ic,

envi

ronm

enta

l, an

d so

cial

dim

ensi

ons

of to

day,

as

wel

l as

thei

r in

ter-r

elat

ions

with

in a

nd th

roug

hout

the

time

dim

ensi

on (i

.e.

the

shor

t-, lo

ng-,

and

long

er-te

rm),

whi

le a

ddre

ssin

g th

e co

mpa

nys

syst

em (O

pera

tions

and

pro

duct

ion,

Man

agem

ent

and

stra

tegy

, Org

anis

atio

nal s

yste

ms,

Pro

cure

men

t and

m

arke

ting,

and

Ass

essm

ent a

nd c

omm

unic

atio

n), a

s w

ell a

s w

ith it

s st

akeh

olde

rs

(Loz

ano,

201

2)

Cor

pora

te V

olun

tary

Effo

rts

to C

ontr

ibut

e to

Sus

tain

abili

ty•E

nviro

nmen

tal a

nd s

ocia

l con

cern

s an

d co

sts

have

ser

ved

as

cata

lyst

s fo

r the

dev

elop

men

t and

rapi

d gr

owth

of in

itiat

ives

, to

ols

and

appr

oach

es th

at g

o be

yond

com

plia

nce

(Dai

ly &

Hua

ng,

2001

; K.-H

. Rob

ert e

t al.,

200

2; Y

ang,

200

2)

•Dur

ing

the

last

thre

e de

cade

s, c

orpo

rate

vol

unta

ry in

itiat

ives

to

cont

ribut

e to

Sus

tain

abilit

y ha

ve b

een

switc

hing

from

‘end

-of-

pipe

’sol

utio

ns to

who

le-s

yste

map

proa

ches

, by

chan

ging

pr

oduc

ts, p

roce

sses

and

sys

tem

s (M

cInt

osh,

Lei

pzig

er, &

Jon

es, 1

998)

Sour

ce: (

DeS

imon

e &

Popo

ff, 2

000)

Volu

ntar

y co

rpor

ate

initi

ativ

es•

Cle

aner

Pro

duct

ion

•C

orpo

rate

Citi

zens

hip

•C

orpo

rate

Soc

ial R

espo

nsib

ility

•D

esig

n fo

r Env

ironm

ent

•E

co-e

ffici

ency

•E

co-la

belli

ng•

Env

ironm

enta

l Man

agem

ent

Sys

tem

s

•E

nviro

nmen

tal a

nd S

ocia

l A

ccou

ntin

g•

Fact

or X

•G

reen

Che

mis

try•

Indu

stria

l Eco

logy

•Li

fe C

ycle

Ass

essm

ent

•S

usta

inab

le L

ivel

ihoo

ds•

Sus

tain

abili

ty R

epor

ting

•Th

e N

atur

al S

tep

•Tr

iple

Bot

tom

Lin

e

6

The

maj

ority

of t

he

effo

rts

have

focu

sed

:•O

n in

tegr

atin

g ec

onom

ic a

nd e

nviro

nmen

tal a

spec

ts,

and

mor

e sp

ecifi

cally

on

‘har

d’ te

chno

cent

ric is

sues

(K

orho

nen,

200

3)

•Mai

nly

on m

anag

emen

tand

str

ateg

y, o

pera

tions

and

proc

esse

s, a

nd a

sses

smen

t and

repo

rtin

g; b

ut te

nded

to

neg

lect

org

anis

atio

nal s

yste

ms

and

how

to c

hang

e th

em (L

ozan

o, 2

012)

or h

ow to

eng

age

with

sta

keho

lder

s

Stak

ehol

ders

•A

com

pany

influ

ence

s an

d is

influ

ence

d by

a d

iver

sity

of

stak

ehol

ders

, ind

ivid

uals

or g

roup

s th

at a

ffect

, or a

re a

ffect

ed b

y, th

e co

rpor

atio

n’s

activ

ities

and

ope

ratio

ns (E

urop

ean

Com

mis

sion

, 199

8; F

arm

er

& H

ogue

, 197

3; F

reem

an, 1

984;

Fre

eman

et a

l., 2

004)

•Al

thou

gh th

e co

rpor

atio

n’s

fund

amen

tal o

blig

atio

n is

to e

nsur

e its

ow

n su

rviv

al, a

nd to

thriv

e by

ben

efiti

ng a

nd b

alan

cing

the

need

s of

m

ultip

le s

take

hold

ers

(Far

mer

& H

ogue

, 197

3; F

reem

an, 1

984;

Hill

& Jo

nes,

200

1)

•St

akeh

olde

rs c

an b

e in

tern

al(e

.g. s

tock

hold

ers

and

empl

oyee

s,

incl

udin

g m

anag

emen

t) an

d ex

tern

al(e

.g. c

usto

mer

s, s

uppl

iers

, ba

nks,

env

ironm

enta

lists

, and

gov

ernm

ent)

(Arg

adoñ

a, 1

998;

Fre

eman

, 198

4;

Free

man

et a

l., 2

004;

Hill

& Jo

nes,

200

1)

Sour

ce: L

ozan

o (2

012)

Com

petit

ion

(adv

ersa

rial)

or

Col

labo

rativ

e (c

o-op

erat

ive)

•Int

erac

tions

in o

rgan

isat

ions

, as

in o

ther

sys

tem

s, ra

nge

from

ex

trem

e co

mpe

titio

nto

full

colla

bora

tion

•Par

adox

ical

ly, o

rgan

isat

ions

that

com

pete

aga

inst

eac

h ot

her,

also

tend

to c

olla

bora

te

Com

petit

ion

•C

ompe

titio

n, w

heth

er d

irect

(pow

er s

eeki

ng),

indi

rect

(res

ourc

e ac

cum

ulat

ion)

, or a

mix

ture

of b

oth,

can

hel

p im

prov

e ef

ficie

ncy,

ef

fect

iven

ess,

and

per

form

ance

(Frie

dman

, 197

0; H

ill &

Jone

s, 2

001)

•H

owev

er, i

f pur

sued

to th

e ex

trem

e, c

ompe

titio

n ca

n le

ad to

ex

cess

ive

reso

urce

acc

umul

atio

n, w

aste

, ine

ffici

enci

es,

inef

fect

iven

ess,

poo

r per

form

ance

, and

cre

atio

n of

mon

opol

ies

and

olig

opol

ies

(Aro

ra e

t al.,

199

8; P

aren

te&

Pres

cott,

199

9)

•C

ompe

titio

n of

ten

wor

ks a

gain

st th

e be

st in

tere

sts

of th

e or

gani

satio

n in

the

long

term

(Por

ter e

t al.,

197

5) a

nd it

can

lead

to

conf

licts

, in

man

y ca

ses

late

nt, w

hich

nee

d to

be

reco

gnis

ed a

nd

addr

esse

dLo

zano

(200

7)

Col

labo

ratio

n

Co-

oper

atio

n

Co-

ordi

natio

n

Com

mun

icat

ion

Col

labo

ratio

n•

Col

labo

ratio

n br

ings

ben

efits

from

diff

eren

ces

in k

now

ledg

e an

d pe

rspe

ctiv

es, d

evel

opin

g ne

w u

nder

stan

ding

s, d

esig

ning

new

pr

oduc

ts, a

nd s

olvi

ng p

robl

ems

whi

le, a

t the

sam

e tim

e, o

fferin

g be

nefit

s to

all

thos

e in

volv

ed in

the

proc

ess

(Den

ise,

199

9; K

aku,

200

3;

Loza

no, 2

007;

Tun

stal

l, 20

05)

•It

can:

•O

ptim

ise

finan

cial

and

hum

an c

apita

ls•

Red

uce

or a

void

com

petit

ion

and

conf

licts

•R

educ

e tim

e to

ach

ieve

obj

ectiv

es•

Hel

p in

impr

ovin

g ho

listic

and

sys

tem

s th

inki

ng•

Giv

e tra

ns-d

isci

plin

ary

lear

ning

Kyo

sei(

spiri

t of c

olla

bora

tion)

sta

ges

1.Ec

onom

ic s

urvi

val

2.C

olla

bora

ting

with

labo

ur3.

Col

labo

ratin

g ou

tsid

e th

e co

mpa

ny4.

Glo

bal a

ctiv

ism

5.Th

e go

vern

men

t as

a Ky

osei

partn

er (K

aku,

200

3)

This

app

roac

h is

bia

sed

tow

ards

soc

ial a

spec

ts w

hile

en

viro

nmen

tal o

nes

are

not e

xplic

itly

addr

esse

d

•Cos

ts:

•C

oord

inat

ion:

ope

ratio

nal d

epen

denc

e be

twee

n th

e ac

tiviti

es o

f the

di

ffere

nt a

ctor

s•

Vuln

erab

ility

: ris

k of

saf

egua

rdin

g th

e im

porta

nt a

nd u

niqu

e re

sour

ces

•Pra

ctic

al d

iffic

ultie

s:•

Info

rmat

ion:

who

get

s th

e be

nefit

s•

Bar

gain

ing:

how

to s

plit

the

gain

s•

Free

ridin

g: re

apin

g be

nefit

s w

ithou

t effo

rts

Col

labo

ratio

n di

fficu

lties

(Gen

efke

, 200

0; C

hilo

si, 2

003)

App

roac

hes

and

stra

tegi

es to

add

ress

st

akeh

olde

rs•F

our o

vera

rchi

ng ty

polo

gies

aris

ing

from

di

ffere

nces

in p

ositi

on a

nd fo

cus:

•C

ompa

ny R

espo

nsib

ility

Cho

ice

•Ben

efits

to S

take

hold

ers

•Sta

keho

lder

Em

phas

is•S

take

hold

er S

cope

Com

pany

Res

pons

ibili

ty C

hoic

e•D

ivid

ed in

to th

ree:

•E

thic

al: t

he c

orpo

ratio

n is

mor

ally

resp

onsi

ble

to it

s st

akeh

olde

rs

•Altr

uist

ic (o

r phi

lant

hrop

ic):

dem

ands

that

cor

pora

tions

he

lp to

alle

viat

e so

ciet

al p

robl

ems,

eve

n if

it re

duce

s sh

areh

olde

r pro

fits

•Str

ateg

ic: b

ased

on

bene

fitin

g so

ciet

y th

roug

h ac

tiviti

es th

at

will

brin

g be

nefit

s to

the

corp

orat

ion

in th

e lo

ng-te

rm.

(Car

roll,

199

1, 1

999;

Lant

os, 2

001)

Ben

efits

to S

take

hold

ers

typo

logy

•D

elus

iona

l:R

educ

e bo

th p

rofit

s an

d st

akeh

olde

r wel

fare

•Pe

rnic

ious

:Inc

reas

e pr

ofits

but

redu

ce s

take

hold

ers

wel

fare

•Ex

trin

sic:

Red

uce

prof

its b

ut im

prov

e st

akeh

olde

rs w

elfa

re•

Phila

nthr

opic

:Act

iviti

es to

whi

ch th

e co

rpor

atio

n is

not

re

spon

sibl

e an

d do

not

ben

efit

shar

ehol

ders

, e.g

. AID

S pr

even

tion

•M

itiga

ting:

Miti

gate

sta

keho

lder

har

m th

at th

e co

rpor

atio

n ca

used

, eve

n w

ithou

t leg

al re

spon

sibi

lity

or c

lear

ben

efits

to

shar

ehol

ders

•H

arm

onic

: Ben

efits

to s

hare

hold

ers

in th

e lo

ng te

rm a

nd

adva

nce

stak

ehol

ders

’wel

l bei

ng

(Loz

ano,

201

2)

Stak

ehol

der E

mph

asis

typo

logy

Inw

ard-

look

ing:

dea

ling

mai

nly

with

inte

rnal

issu

es a

nd

stak

ehol

ders

, suc

h as

hum

an c

apita

l, he

alth

and

saf

ety,

equ

al

oppo

rtuni

ties,

inte

grat

ion

of p

eopl

e w

ith d

isab

ilitie

s (L

evitt

, 195

8)

•O

utw

ard-

look

ing:

dea

ling

mai

nly

with

ext

erna

l iss

ues

and

stak

ehol

ders

, i.e

. inv

olve

men

t with

loca

l com

mun

ities

, bus

ines

s pa

rtner

s, s

uppl

iers

, cus

tom

ers,

pub

lic a

utho

ritie

s, a

nd n

on-

gove

rnm

enta

l org

anis

atio

ns (N

GO

s) (A

vi-Y

onah

, 200

5; C

.E.C

., 20

01, 2

002;

W

addo

ck&

Bodw

ell,

2007

). Su

ch e

fforts

are

usu

ally

link

ed to

repu

tatio

n.

•B

road

per

spec

tive:

dea

ling

with

bot

h in

tern

al a

nd e

xter

nal

stak

ehol

ders

(Fre

hs, 2

003;

Hol

me

& W

atts

, 200

0; H

opki

ns, 2

002;

Kak

u, 2

003;

Wel

ford

, 20

05)

Stak

ehol

der S

cope

typo

logy

•C

orpo

rate

giv

ing

or p

hila

nthr

opy:

i.e.

fulfi

lled

by c

harit

able

ef

forts

(Por

ter &

Kra

mer

, 200

3; S

mith

, 200

3)•M

ainl

y de

alin

g w

ith s

ocia

l iss

ues:

whe

re th

e co

mpa

ny a

ims

to m

axim

ise

its lo

ng-te

rm p

rofit

s (s

ee D

odd,

193

2; F

arm

er &

Hog

ue,

1973

; Fuk

ukaw

a&

Moo

n, 2

004;

Laf

fer,

Coo

rs, &

Win

egar

den,

200

4; T

he

Econ

omis

t, 20

05)

•Add

ress

ing

envi

ronm

enta

l and

soc

ial a

spec

ts: w

here

co

mpa

nies

inte

grat

e th

ose

soci

al a

nd e

nviro

nmen

tal c

once

rns

into

thei

r ope

ratio

ns, w

ith p

artic

ipat

ive

stak

ehol

der e

ngag

emen

t, th

at a

re d

eem

ed to

be

bene

ficia

l for

com

pany

’s lo

ng-te

rm

inte

rest

s (H

ollid

ay, S

chm

idhe

iny,

& W

atts

, 200

2; H

olm

e &

Wat

ts, 2

000)

.

Dis

cuss

ion

on th

e ty

polo

gies

•M

ost o

f the

app

roac

hes

and

stra

tegi

es ty

polo

gies

dis

cuss

ed fo

cus

mai

nly

on s

ocia

l sta

keho

lder

s (e

.g. e

mpl

oyee

s, s

hare

hold

ers,

and

co

mm

unity

)•

They

tend

to b

e m

otiv

ated

by

altru

ism

, eth

ics,

and

stra

tegy

, or a

ny

com

bina

tion

of th

ese

•Th

e ty

polo

gies

pro

pose

d, w

ith th

e ex

cept

ion

of th

e ‘A

ddre

ssin

g en

viro

nmen

tal a

nd s

ocia

l asp

ects

’, do

not

exp

licitl

y co

nsid

er th

e en

viro

nmen

t•

Each

typo

logy

, on

its o

wn,

tend

s to

be

frag

men

tary

, but

whe

n ta

ken

toge

ther

, the

y ca

n be

com

bine

d to

pro

vide

a b

ette

r cov

erag

e of

CSR

an

d C

S

The

Cor

pora

te S

usta

inab

ility

Str

ateg

ic

Influ

ence

Typ

olog

y(1

)•E

nron

ian:

com

pany

act

iviti

es th

at re

duce

sha

reho

lder

s’ p

rofit

s,

the

wel

fare

of e

mpl

oyee

s, e

xter

nal s

take

hold

ers

and

have

ne

gativ

e im

pact

s on

the

envi

ronm

ent.

Thes

e ac

tiviti

es p

rom

ote

the

prof

it of

the

few,

in g

ener

al th

e on

es m

anag

ing

the

corp

orat

ion,

by

mis

lead

ing/

chea

ting

the

othe

r sta

keho

lder

s. In

a

grea

t maj

ority

of c

ases

it is

use

d fo

r pub

lic re

latio

ns, b

ut it

ge

nera

lly b

ackf

ires

•For

dian

: a fo

cus

sole

ly o

n m

axim

isin

g sh

areh

olde

rs’ p

rofit

s, b

ut

this

end

s up

bei

ng d

etrim

enta

l to

the

wel

fare

of e

mpl

oyee

s. It

m

ay b

e m

otiv

ated

by

stra

tegi

c de

cisi

ons

The

Cor

pora

te S

usta

inab

ility

Str

ateg

ic

Influ

ence

Typ

olog

y(2

)•P

hila

nthr

opic

: act

iviti

es a

imed

at i

mpr

ovin

g th

e w

elfa

re

of e

xter

nal s

take

hold

ers,

suc

h as

the

com

mun

ities

w

here

the

com

pany

ope

rate

s. It

is m

ainl

y dr

iven

by

ethi

cs a

nd a

que

st fo

r ind

ulge

nces

•G

reen

indu

lgen

ces:

focu

ses

on im

prov

ing

prof

its a

nd

the

wel

fare

of t

he e

nviro

nmen

t. It

is g

ener

ally

driv

en b

y en

viro

nmen

talis

m.

The

Cor

pora

te S

usta

inab

ility

Str

ateg

ic

Influ

ence

Typ

olog

y(2

)•I

nsul

ar:

activ

ities

that

focu

s on

ly o

n im

prov

ing

prof

its

and

empl

oyee

s’ w

elfa

re•A

nthr

opoc

entr

ic: g

ener

ates

pro

fits

and

impr

oves

the

wel

fare

of a

ll th

e so

cial

sta

keho

lder

s (e

mpl

oyee

s an

d ex

tern

al o

nes)

•Hol

istic

: gen

erat

es p

rofit

s, a

nd it

ben

efits

the

envi

ronm

ent,

the

com

pany

’s e

mpl

oyee

s an

d its

ext

erna

l st

akeh

olde

rs

Cor

pora

te S

usta

inab

ility

Str

ateg

ic

Influ

ence

Typ

olog

ySt

rate

gy

Influ

ence

s

Prof

it ge

nera

tion

Envi

ronm

ent

Empl

oyee

sEx

tern

al

stak

ehol

ders

Hol

istic

Anth

ropo

cent

ric

Insu

lar

Gre

en in

dulg

ence

s

Phila

nthr

opic

Ford

ian

Enro

nian

Cel

l cod

ing Be

nefic

ial i

nflu

ence

s

Neu

tral i

nflu

ence

s

Neg

ativ

e in

fluen

ces

Sust

aina

ble

Publ

ic P

rocu

rem

ent

and

Sust

aina

ble

Busi

ness

Mod

els

Circ

ular

Eco

nom

y (C

E)•C

E ha

s be

en u

sed

sinc

e its

orig

inal

con

cept

ion

in 1

928

by

Leon

tief

•Dis

cour

ses

rela

ting

CE

to e

nviro

nmen

tali

ssue

s ar

e re

cent

, su

ch a

s re

sear

ch in

Chi

na a

nd th

e El

len

McA

rthur

foun

datio

n (N

aust

dals

lid, 2

014)

•CE

is b

ased

on

‘clo

sing

loop

s’ th

roug

h di

ffere

nt ty

pes

and

leve

ls o

f rec

over

y(Y

ong,

200

7; Y

uan

et a

l., 2

006)

thro

ugh

reso

urce

ef

ficie

ncy

(Kle

ttner

et a

l., 2

013;

Web

ster

, 201

3) th

us e

limin

atin

g w

aste

(Bilit

ewsk

i, 20

12)

CE

play

ers

•Gov

ernm

enta

nd c

ompa

nies

have

bee

n tw

o of

the

key

play

ers

addr

essi

ng C

E th

roug

h re

desi

gnin

g th

eir p

rodu

cts

and

proc

esse

s (M

urra

y et

al.,

201

5)

•UN

EP (2

014)

set

up

an in

itiat

ive

to p

rom

ote

sust

aina

ble

publ

ic

proc

urem

ent,

aim

ed a

t lin

king

the

cons

umpt

ion

side

, thr

ough

go

vern

men

tal p

ublic

pro

cure

men

t, to

the

prod

uctio

nsi

de,

thro

ugh

the

deve

lopm

ent o

f mor

e su

stai

nabl

e bu

sine

ss m

odel

s (S

BM).

Publ

ic p

rocu

rem

ent (

PP)

•A k

ey e

cono

mic

act

ivity

of g

over

nmen

ts(B

ram

mer

and

Wal

ker,

2011

)•I

t ref

ers

to th

e ac

quis

ition

of g

oods

and

ser

vice

s by

go

vern

men

ts o

r pub

lic s

ecto

r org

anis

atio

ns th

roug

h pu

blic

co

ntra

cts

(Kiiv

er a

nd K

odym

, 201

4), a

nd a

llow

s pu

blic

sec

tor

orga

nisa

tions

to p

erfo

rm th

eir f

unct

ions

and

del

iver

its

serv

ices

(U

yarra

et a

l., 2

014)

Trad

ition

al P

P pr

oces

s st

ages

Awar

ding

a c

ontr

act

•Dep

endi

ng o

n th

e ch

oice

of t

he c

ontra

ctin

g or

gani

satio

n, th

is

coul

d im

ply

the

tend

er o

fferin

g:

1.Th

e lo

wes

t pric

e2.

The

low

est o

vera

ll co

st3.

The

mos

t val

ue fo

r mon

ey b

ased

on

its p

rice-

qual

ity c

riter

ia ra

tio(E

U P

ublic

Pro

cure

men

t Dire

ctiv

e 20

14.2

4, E

urop

ean

Uni

on, 2

014)

Sust

aina

ble

Publ

ic P

rocu

rem

ent (

SPP)

•Dem

and

for s

usta

inab

le p

rodu

cts

and

serv

ices

can

be

prom

oted

(Par

ikka

-Alh

ola,

200

8; W

alke

r and

Bra

mm

er, 2

012)

, set

a tr

end

for

othe

r org

anis

atio

ns (D

ay, 2

005)

, and

enl

arge

the

mar

ket f

or

sust

aina

ble

prod

ucts

or s

ervi

ces

(Uya

rra e

t al.,

201

4)

•If a

ll pu

blic

aut

horit

ies

in th

e Eu

rope

an U

nion

sw

itche

d to

gre

en

elec

tric

ity, t

hey

wou

ld s

ave

mor

e th

an 6

0 bi

llion

tonn

es o

f CO

2, an

d if

they

use

d en

ergy

-effi

cien

t des

ktop

com

pute

rs, a

noth

er

830,

000

tonn

es o

f CO

2(D

ay, 2

005)

Bus

ines

s M

odel

s•A

com

preh

ensi

ve u

nder

stan

ding

of h

ow a

com

pany

doe

s bu

sine

ss (B

eatti

e an

d Sm

ith, 2

013;

Tee

ce, 2

010)

, how

val

ue is

cre

ated

(A

fuah

, 200

4)

•The

y ar

ticul

ate

the

logi

c, d

ata,

and

oth

er e

vide

nce

that

sup

port

a va

lue

prop

ositi

on fo

r the

cus

tom

er, a

nd a

via

ble

stru

ctur

e of

re

venu

es a

nd c

osts

for d

eliv

erin

g th

at v

alue

(Tee

ce, 2

010)

•Bas

ed o

n th

ree

mai

n el

emen

ts (B

oons

and

Lüd

eke-

Freu

nd, 2

013;

O

ster

wal

der e

t al.,

201

0): (

1) v

alue

pro

posi

tion;

(2) v

alue

cre

atio

n an

d de

liver

y; a

nd (3

) val

ue c

aptu

re.

Sust

aina

ble

Bus

ines

s M

odel

s (S

BM

) re

desi

gn p

roce

ss•T

echn

olog

ical

(mat

eria

l and

ene

rgy

effic

ienc

y, c

reat

e va

lue

from

‘was

te’,

etc.

)•S

ocia

l(de

liver

func

tiona

lity,

inst

ead

of h

avin

g ow

ners

hip;

ado

pt

a st

ewar

dshi

p ro

le; a

nd e

ncou

rage

suf

ficie

ncy)

•Org

anis

atio

nal(

re-p

urpo

se th

e bu

sine

ss fo

r soc

iety

and

the

envi

ronm

ent,

and

deve

lop

scal

e-up

sol

utio

ns)

(Boc

ken

et a

l., 2

014)

Dis

cuss

ion

(1)

•In

the

tradi

tiona

l PP

proc

ess

the

prod

ucti

s th

e m

ain

obje

ct o

f ne

gotia

tion

and,

in g

ener

al, t

he te

nder

is b

ased

on

the

low

est

pric

e or

ove

rall

cost

(see

Eur

opea

n U

nion

, 201

4)•I

n th

e SP

P pr

oces

s th

e fo

cus

of th

e te

nder

is o

n th

e m

ost v

alue

fo

r mon

ey, w

here

env

ironm

enta

l or s

ocia

l spe

cific

atio

ns m

ay

be in

clud

ed (a

s di

scus

sed

by K

iiver

and

Kod

ym, 2

014;

Rie

tber

gen

and

Blok

, 201

3).

Dis

cuss

ion

(2)

•In

SPP,

the

mai

n ob

ject

of t

he n

egot

iatio

n be

twee

n su

pplie

r and

pr

ocur

er s

witc

hes

from

pro

duct

orie

nted

to P

SS(s

ee M

ont

(200

2), a

nd fr

om a

pric

e pe

r pro

duct

unit

to p

rice

per d

eliv

ered

se

rvic

e•C

olla

bora

tion

betw

een

the

proc

urer

and

the

pote

ntia

l su

pplie

rsch

ange

s to

the

begi

nnin

g of

the

tend

er (i

.e. t

he

prep

arat

ion

stag

e)

Trad

ition

al P

ublic

Pro

cure

men

t

Sust

aina

ble

and

colla

bora

tive

Publ

ic P

rocu

rem

ent

Dis

cuss

ion

(3)

•Lon

g te

rm c

olla

bora

tion

durin

g th

e SP

P pr

oces

s re

quire

s a

shift

fro

m o

nly

tech

nica

l spe

cific

atio

ns to

a m

ore

colla

bora

tive

disc

ussi

on a

nd d

efin

ition

of t

echn

ical

and

non

-tech

nica

l sp

ecifi

catio

ns b

etw

een

the

supp

lier a

nd p

rocu

rer

•In

addi

tion,

soc

io-c

ultu

ral s

peci

ficat

ions

mus

t be

incl

uded

in

the

SPP

proc

ess

Dis

cuss

ion

(4)

•Tec

hnic

alan

dno

n-te

chni

cals

peci

ficat

ions

driv

e th

e su

pplie

r an

d pr

ocur

er to

dev

elop

prod

ucts

and

ser

vice

s ai

min

g fo

r mor

e re

sour

ce e

ffici

ency

•Soc

io-c

ultu

rals

peci

ficat

ions

hel

p th

e pa

rties

hire

and

trai

n pe

rson

nel s

peci

fical

ly fo

r the

co-

deve

lopm

ent p

roce

ss

Proc

urem

ent a

nd b

usin

ess

mod

els

for C

E (P

roB

iz4C

E) fr

amew

ork

Supp

liers

´ bu

sine

ss

mod

el

Proc

urer

busi

ness

m

odel

Pric

e pe

r ser

vice

(func

tiona

l uni

t)

Prod

uct

prov

idin

g a

serv

ice

Use

of

prod

ucts

Col

labo

ratio

n

Spec

ifica

tions

(tech

nica

l and

no

n-te

chni

cal)

Shar

ed

resp

onsi

bilit

y Valu

e

Was

teR

aw

mat

eria

ls

Rec

over

y

Con

clus

ions

•The

fram

ewor

k cl

oses

loop

s th

roug

h re

cove

ry, w

hile

at t

he

sam

e tim

e ch

angi

ng th

e sc

hem

e fro

m p

rice

per u

nit t

o va

lue

prov

ided

per

ser

vice

, and

incl

udin

g te

chni

cal,

non-

tech

nica

l an

d so

cio-

cultu

ral s

peci

ficat

ions

and

shar

ed re

spon

sibi

lity

of th

e pr

oduc

t/ser

vice

com

bina

tion

•Col

labo

ratio

n be

twee

n pr

ocur

ers

and

supp

liers

can

lead

to

redu

ctio

ns in

raw

mat

eria

lsut

ilisat

ion

and

was

te g

ener

atio

n,

whi

lst p

rom

otin

g th

e de

velo

pmen

t of m

ore

sust

aina

ble

busi

ness

mod

els,

thus

bet

ter c

ontri

butin

g to

mak

ing

soci

etie

s m

ore

sust

aina

ble

To m

ake

com

pani

es m

ore

sust

aina

bilit

y or

ient

ed, i

t is

nece

ssar

y to

und

erst

and

its

holis

tic n

atur

e (in

clud

ing

the

econ

omic

, en

viro

nmen

tal,

soci

al, a

nd ti

me

dim

ensi

ons)

and

the

syne

rgie

sbe

twee

n th

e te

chni

cal,

man

ager

ial,

gove

rnan

ce,

and

orga

nisa

tiona

l pro

cess

es to

geth

er

with

sta

keho

lder

s

42

Than

k yo

u!R

odrig

o Lo

zano

, PhD

emai

ls: r

odrig

o.lo

zano

@hi

g.se

& ro

dloz

ano@

org-

sust

aina

bilit

y.co

m