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Sustaibable development & corporate social responsability
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08/09/10 INSEEC SUSTAINABLE
DEVELOPMENT
SUSTAINABLE DEVELOPMENT AND
CORPORATE SOCIAL RESPONSIBILITY
Inseec, 2nd year Fall, 2010
Diana Carrillo & Regis Maubrey
08/09/10 INSEEC SUSTAINABLE
DEVELOPMENT
GOAL OF THE COURSE
• That students open up to working with other disciplines and sectors
• That they may act as facilitators, intermediaries, brokers in issues involving territories and sustainable development issues
• That they be able to recognize and use at least one « tool » in future situations where SD/CSR are addressed
Sustainable Development
Overall Program
• Introduction
• Historical reminders
• Principles and Definitions with illustrations
• Approaches and tools
• Framework of scales
• Methodology and cases
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08/09/10 INSEEC SUSTAINABLE
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ORGANIZATION
● SESSION 1: Theory and tools and course methodogy. Teams are formed, cases chosen.
● SESSION 2: More theory, cases, and explanations.
● SESSION 3: – 15 minute presentations by one reprentative (chosen by
professor) of each team of four. – Comments from the floor and from the professor
● SESSION 4: – 15 minute presentations by one reprentative (chosen by
professor) of each team of four. – Comments from the floor and from the professor
08/09/10 INSEEC SUSTAINABLE
DEVELOPMENT
SCHEDULE FOR SESSION 1
● Session objective ● Who are we? ● First issues and concepts ● Methodology (and teams to be formed) ● Tools ● Proposed student cases ● (15 min. break) ● More theory and explanations ● First professional cases
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Objectives of the session 1
• To have students understand their tasks and to be ready to present in Session 3
• To have questions to ask in Session 2
08/09/10 INSEEC SUSTAINABLE
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Presentations by your professors
Regis Maubrey
Diana Carrillo
Sustainable Development
Regis Maubrey Diana Carrillo
08/09/10 INSEEC SUSTAINABLE DEVELOPMENT
8
1. The problem
2. Introduction to sustainable development
3. Historical approach
4. Principles of sustainable development
5. Methodology
6. Governance of sustainable development
7. Introduction to Corporate Social Responsibility
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I. Introduction to Sustainable development
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SUSTAINABLE DEVELOPMENT
A new page in history
• Until now (since XIX century): – Development, progress, productivity, more
“things”, – More “human rights” .. But not for everybody ( also more inequalities
and new forms of exclusion and poverty)
• From now on : – A new problem : survival of the planet
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Can we survive and keep a good quality of life ?
1. The problem
Poverty increases in poor countries (54 countries poorer than in 1990)
Difference wealthy / poor increases continually
Every three seconds, a child dies because of extreme poverty
42 million people live with AIDS. In Africa less than 5% get antiretroviral treatment
60% of the world ecosystem services are degraded
Our ecological footprint represents 120 % of the total possibilities of the globe
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1. The problem
If the earth was a town of 100 PEOPLE …
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1. The problem
12
• 50 would suffer from malnutrition
• 40 would live with less than 2$ a day
• 17 wouldn’t have proper shelter, or drinking water, or medical services
• 20 would control 86 % of GDP
• 6 persons would have 59 % of world’s wealth
• 25 would consume three quarts of the available energy
• 15 would produce more than half of the town’s CO2 waste
• 11 would use a car and for sure, there will be 20 in 20 years
• 9 of them would have access to the Internet
• The town would have 133 citizens in 2025. 08/09/10 13
INSEEC SUSTAINABLE DEVELOPMENT
1. The problem If the earth was a town of 100 citizens …
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20 % poorest vs.
20 % richest
poorest poorest richest richest
1. The problem
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• An exponential growth of the human population
– 83 million more people every year (A country like Germany)
• 99 % of these new arrivals populate the poorest countries
• In 2025, 1/2 of humanity will live in towns
Worlds’ population in strong growth
Evolution of
worlds’ population since
4 billion years
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1. The problem
Ecological footprint
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1. The problem
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Ecological footprint
– It is an indicator
– It evaluates the theoretical surface of productive soil
• necessary to satisfy essential needs and • to absorb the waste of a population.
– It is calculated in hectares per inhabitant
– The ecological footprint is used to measure the Natures’ capability of renewing itself
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1. The problem
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Ecological footprint measures :
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1. The problem
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Ecological footprint Every human being theoretically needs 2 hectares of productive soil and 5 hectares salt water
– France uses today 4 hectares of productive soil per person
– USA uses today 9 hectares of productive soil par person
– Bangladesh uses today less than 1 Hectare of productive soil par person
* data WWF 2006 09/08/10 20
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1. The problem
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Human population = 6 billion people Total surface of the earth =51 billion
hectares
Total productive soil available = 13 billion hectares
Between 1960 and 1999, the worlds’ ecological footprint went from 70% to 120%
of the total possibilities of the globe
Ecological footprint continuously growing
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1. The problem
Can we afford to do NOTHING ? : Stern report October 2006
• Climate change: – Could deprive many people of water – Food – Health – Available earth
• To fight climatic change will be less costly than to do nothing !! – 1% of world GDP per year can solve the problem
• NOT to do anything would : – Cost from 5 % to 20 % of the world GDP per year (40 000
billions of $), (this is equivalent of the cost of a world war or the 1929 depression)
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1. The problem
1. The problem
2. Introduction to sustainable development
3. Historical approach
4. Principles of sustainable development
5. Methodology
6. Governance of sustainable development
7. Introduction to Corporate Social Responsibility
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CORPORATE SOCIAL RESPONSIBILITY 08/09/10 23 INSEEC SUSTAINABLE
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I. Introduction to Sustainable development
– “ Development that meets the needs of the present generation without compromising the ability of future generations to meet their own needs. “
1987 Definition, Gro Harlem Brundtland
ESSENTIAL NEEDS:
Present generations Future generations The worst-off population What are their
needs?
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I. Introduction to Sustainable development
Three main pillars of sustainable development
Sustainable development
ECONOMY Optimal resource management Satisfaction of human needs
SOCIAL JUSTICE
- Satisfaction of human needs - Improving the quality of life
ENVIRONMENT Integration into the human
actions, the preservation of the environment
SD
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Culture and governance are sometimes added
I. Introduction to Sustainable development
The idea of sustainable development appears when more than the renewable available resources are consumed or that social problems are so important that they may jeopardize the future of society.
– Environmental deterioration, – Inability of the authorities to react to environmental problems – Internal political dissensions
• BABYLONE
• MAYAS
• VIKINGS
• GREENLAND
• Easter Island
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I. Introduction to Sustainable development
Two (or three ?) major economic actors
Consumers Producers
Goods and services
Salaries
Work, Capital…
Payments
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HOW ABOUT ENVIRONMENT ?
I. Introduction to Sustainable development
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« NO social protection NO environmental protection without a strong economical basis »
Actors: companies, economists, industrialists
ECONOMIC
SOCIAL
ENVIRON-MENTAL
Weak Sustainability
THE PAST
I. Introduction to Sustainable development
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« conciliate environmental protection, social justice and economical growth »
Actors: public actors, local governments
Balanced sustainability
ECONOMIC SOCIAL
ENVIRONMENTAL
THE PRESENT
I. Introduction to Sustainable development
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« no long lasting human system can exist without taking into account the sustainability of its ecological system »
Actors: environmentalist NGO, ecologist…
Strong sustainability
ECONOMIC
SOCIAL
ENVIRONMENTAL
THE FUTURE ?
I. Introduction to Sustainable development
1. The problem
2. Introduction to sustainable development
3. Historical approach
4. Principles of sustainable development
5. Methodology
6. Governance of sustainable development
7. Introduction to Corporate Social Responsibility
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I. Introduction to Sustainable development
History of the evolution towards Sustainable Development
• Development
• Local environmental threats
• Global environmental threats (known since the 1950s
• Approaches
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History of “Development”
• 1840s-1860s Beginnings of the Industrial Revolution in the “western” world
• 1940s-1950s Second industrial revolution : WWII efforts transformed into mass-market products for a growing consumer society
• 1950s-1980s International Bank for Reconstruction and Development (The World Bank), loans and aid to Less Developed Countries, for fighting poverty and degraded environments…
What happened ? (History)
Environmental impacts of the “2nd industrial revolution”?
(What have you observed, heard of, read about...Specific historical events, incidents, efforts ?…)
What happened ? (History)
Major incidents, accidents, catastrophes : -1953 : Minimata Bay mercury poisoning (Japan) -1967 : Torrey Canyon supertanker oil spill -1970 : Mercury poisoning outbreak in U.S. -1976 : Seveso dioxine from chemical plant (Italy) -1978 : Love Canal chemical seepage in homes (U.S.) -1984 : Bhopal toxic cloud killing thousands (India) -1986 : Tchernobyl nuclear reactor melt-down (Ukraine) -1999 : Erika oil spill off coast of France -1999 (Dec.): Hurricane-force winds in France -2001 : Toulouse AZF chemical plant explosion (France)
What happened ? (History)
Origins of environmental preoccupations
• Chemical spills in water bodies
• Killer smogs
• Oil spills on coastal zones
• Unlivable habitats
• Urban sprawl
• Waste accumulation
• NIMBY
What happened ? (History)
Historical dates related to environmental issues and sustainable development
Johannesberg Summit (Rio + 10)
Rio do Janeiro Earth Summit
Stockholm international conference
2002 1992 1972
Global environmental issues
• Global warming • Ozone-layer depletion • Deforestation • Loss of biodiversity • Soil degradation • Freshwater degradation • Marine pollution & overexploitation of resources • Persistant organic pollutants
Global warming
• Effects on the oceans – Seawater expansion – Sea level increase
• Climate change – Hotter deserts – More violent weather – Changes in local vegetation
Indices of climate change
• Increase by 0,6°C since the start of the XXth century (significant with regards to the millenium)
• Sea level has risen worldwide @15-20cm in past century
• Sea level rise of 1,5mm/year
Ecosystems
• Terrestrial ecosystems
• Freshwater ecosystems
• Marine ecosystems
Biological diversity
• Genetic resources
• Ecosystem stability
• Conservation and optimization of ecological equilibria
Historical dates related to sustainable development
Jo’berg. WSSD Kyoto
Protocol
Rio.UNCED (Environment & Deve-lopment)
Brundtland Commission. Montreal Protocol
Stockholm (SW). 1st Earth Summit
2002 1997
1992 1987
1972
“SD” is everywhere...
• Though issues of “environment” (and environmental threats) drives SD
• SD is far from being just “environment” • SD is implicitly and historically a global issue
Linked to N-S dialogue and differences …
The UN has been driving a SD scenario since 1972 (history of environmental issues and approaches)...
1. The problem
2. Introduction to sustainable development
3. Historical approach
4. Principles of sustainable development
5. Methodology
6. Governance of sustainable development
7. Introduction to Corporate Social Responsibility
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1. Subsidiarity 2. Transversality 3. Participation 4. Solidarity 5. Equity 6. Continual improvement 7. Mutual Information 8. Prevention 9. Precautionary 10. Responsibility
Sustainable development, 10 principles
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The principles of sustainable development
– The agent who deteriorates an object or a setting must take in charge their restoring to their previous condition (the polluter must pay)
The responsibility principle
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The principles of sustainable development
Sustainable development
– Prevention principle is applicable to known risks (empirically, demonstrated or probable)
– Precautionary principle aims at avoiding potential risks. , (hypothetical, non yet confirmed, but possible) Example : GMO, cellphones radiation, etc.
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The principles of sustainable development
Subsidiarity : To act in the most correct manner using local talent in the respect of different institutional levels
Transversality : To study problems globally and to take into account their economic, social and environmental impacts before making decisions
Sharing : To work with all the stakeholders of the community in setting up projects, sharing all common decisions (concept of governance)
Solidarity : To encourage solidarity between people, territories and generations, of today and also of the future
Sustainable development principles
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The principles of sustainable development
Fairness : To aim for general fairness. This entails the reduction of inequalities and the just sharing of natural and cultural resources.
Continual improvement : To evaluate periodically the projects and actions in the making, to make the necessary adjustments. Sustainable development grows dynamically
Mutual information : To inform the population truthfully and to encourage people to inform the authorities about problem situation.
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Sustainable development principles
The principles of sustainable development
Do’s and Don’ts of a sustainable development project
DON’T
– Confuse means and ends – Avoid making choices on
political criteria – Take action without established
priorities – Forget the aim and get bogged
down in details – Analyze the situation using some
indicators only – Choose between environment
and development
© C. Brodhag, ENSM SE
DO - Keep everybody informed – Work with “unconventional actors” – Share good ideas !
– Work with what you have (don’t wait for subsides)
– Choose the right moment to act – A crisis can help project implementation – Think global act local
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The principles of sustainable development
1. The problem
2. Introduction to sustainable development
3. Historical approach
4. Principles of sustainable development
5. Methodology
6. Governance of sustainable development
7. Introduction to Corporate Social Responsibility
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Sustainable development /CSR case study preparation and presentations
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• Teams of four
• One presenter of the team to be designated haphazardly
• Cases studies to be presented in 15 minutes (PPT presentation)
• Short question and answer period, between floor, professor, and team members
• Executif summary (First version to be submitted at same time as PPT presentation; second version to be submitted one week after presentation – with changes/additions) :
• 2 pages long
• Font/ Arial 11 ; spacing= interline 1,5
• All electronic copies to be sent in PPT and DOC Microsoft 2003 format (not PPTx or DOCx formats)
• Chapters:
• ...
• ...
•
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1. The problem
2. Introduction to sustainable development
3. Historical approach
4. Principles of sustainable development
5. Methodology: student tasks, tools, and cases
6. Governance of sustainable development
7. Introduction to Corporate Social Responsibility
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• Cost/Benefit analysis • Carbon footprint • Stakeholder analysis • CSR report analysis
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TOOLS
• THE FOLLOWING CASES ARE SUGGESTED – BUT YOU MAY CHOOSE TO PROPOSE YOUR OWN CASE – ESAT – Château-Thierry townhall – Troyes city – ...
• CATEGORIES OF CASES
• OPTION: Interview protocol
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PROPOSED CASES
1. The problem
2. Introduction to sustainable development
3. Historical approach
4. Principles of sustainable development
5. Methodology: student tasks, tools, and cases
6. Governance of sustainable development
7. Introduction to Corporate Social Responsibility
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• The governance of globalization – Necessity of managing global resources
• What is governance ? : – The ability to manage projects using the talents and possibilities of all parties
concerned – Good sustainable governance includes STATES, NGO’s and local partners – This implies work with international organizations and all concerned
stakeholders – Common norms and rules need to be edicted and applied
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Governance of sustainable development
The international relations situation • International consensus :
– Sustainable development must include the 3 pillars economic – environment –social
– It has to be • Short AND long term, • Local AND global
• Disagreements – Priorities linked to development – Historical and cultural differences – More or less sustainable
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Governance of sustainable development
Sustainable development : for whom ?
Human beings
Plants and animals
Northern countries
Southern countries
Data : C.Brodhag
Humans of today
Future generations
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« weak » actors
Governance of sustainable development
Time perspective
Different Approaches
Scope of an action
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Governance of sustainable development
Sustainable development strategies
Corporate Strategy (CSR)
Legal obligations
Agenda 21 local (ex: Paris)
National strategy (ex: France)
International Governance Conventions, agreements…
Supranational strategy
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Governance of sustainable development
Institutions and actors of world governance
OMC/ WCO World Bank
IMF/FMI ….
ILO/OIT FAO
WHO/OMS UNESCO
…
UNEP/PNUE CDD
….
Economic Social
Millennium Goals Monterrey Consensus
Environment
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Governance of sustainable development
Millennium Development Goals (2000)
Goals where fixed for 2015 by (191 countries and UN): 1. Eradicate extreme poverty and hunger 2. Achieve universal primary education 3. Promote gender equality and empower women 4. Reduce child mortality 5. Improve maternal health 6. Combat HIV / AIDS, malaria and other diseases 7. Ensure environmenal sustainability 8. Develop a global partnership for development
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5. Governance of sustainable development
Monterrey consensus (march 2002)
– 1st conference organized by the UN on the financing and developing of sustainable developments
– 1st four-party talks :
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Governance of sustainable development
European community policy on sustainability
In the late Sixties, no European country had yet defined any environmental policy
• 1972: 1st European policy for the Environment
• 1986: Single European Act (SEA): including environmental
• 1997: Amsterdam Treaty: «for a harmonious and sustainable development».
• 1998 : European Council of Cardiff : integration of environment preservation in sectoral policies, • Agriculture, energy, transport, industry, the interior market.
• 9 Council departments developed environmental integration strategies
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Governance of sustainable development
Sustainable Development Strategy in one Country • International agreements
– 1992 : Earth Summit Rio de Janeiro – 2000 : Millennium Development Goals (MDGs) New York – 2002 : World Summit on Sustainable Development Johannesburg
• How can it work ? – Commitment at the highest level (Prime Minister…) – Have a strategy – Written in the laws of the country – Setting up projects coherent with the local situations – Regular reporting and communication on the national level
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Governance of sustainable development
A political breakthrough
« Our house is burning and we are looking the other way… »
President J. Chirac at the World Summit on Sustainable Development (Johannesburg, 2002 )
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Governance of sustainable development
French seven SD priorities (2003-2008)
1. Citizens are actors of sustainable development
2. Territory : Town and country planning
3. Economic activities, companies and consumer
4. Reinforce SD in energy, transport and agriculture
5. Prevent risks, pollutions and nuisances
6. Towards an exemplary country
7. International action
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Governance of sustainable development
Environmental Charter
10 articles of the charter
Art. 1. - Rights Art. 2. - Obligations Art. 3. - Responsibility Art. 4. - Fixing damages Art. 5. - Precautionary principle Art. 6. - Sustainable development Art. 7. - Information and participation Art. 8. - Education and training Art. 9. - Research and innovation Art. 10. - International action
February 28th 2005
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Governance of sustainable development
Basic Concept
No single commonly accepted definition…
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• A company running its business responsibly in relation to internal stakeholders (shareholders, employees, customers and suppliers);
• the role of business in relationship to the state, locally and nationally, as well as to inter-state institutions or standards; and
• business performance as a responsible member of the society in which it operates, and of the global community.
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6. Introduction to Corporate Social Responsibility
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Definitions
72
• “… the concept that an enterprise is accountable for its impact on all relevant stakeholders. It is the continuing commitment by business to behave fairly and responsibly and contribute to economic development while improving the quality of life of the work force and their families as well as of the local community and society at large…”
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6. Introduction to Corporate Social Responsibility
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DEFINITION OF CSR
73
CSR is a combination of voluntary policies which include ethical, environmental,
globalization and human resource policies
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Governance of sustainable development
Critics
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• Is CSR well defined and operative ? • Is it the role of companies if it is not for
making the bigger profit possible ? • Is profitability a must for being responsible ? • Is CSR a way to avoid regulation and allow
an inherently destructive capitalism to last ?
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Governance of sustainable development
Issues
75
• Responsible to who ? • Shareholders, stakeholders or the whole society
(common good)
• Responsible of what ? (the criterias) • Responsible until what ? (the scope)
• State vs companies • Companies vs customers • Companies vs subccontractors
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Corporate Social Responsibility
76
•
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