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Sustainability:Sustainability:Good Planets Are Hard to Buy!Good Planets Are Hard to Buy!

CAUBO 2008CAUBO 2008Work Shop programWork Shop program

Presentation by: Larry Berglund, CPP, MBAPresentation by: Larry Berglund, CPP, MBAThe University of British ColumbiaThe University of British Columbia

CAUBO 2008CAUBO 2008Work Shop programWork Shop program

Presentation by: Larry Berglund, CPP, MBAPresentation by: Larry Berglund, CPP, MBAThe University of British ColumbiaThe University of British Columbia

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Larry Berglund, CPP, MBALarry Berglund, CPP, MBALarry Berglund, CPP, MBALarry Berglund, CPP, MBA

Work experienceWork experience• Forest IndustryForest Industry• Public Health CarePublic Health Care• Municipal GovernmentMunicipal Government• University OperationsUniversity Operations

EducationEducation• CPPCPP• MBAMBA

Seminars/workshopsSeminars/workshops• Better Ways to Better DealsBetter Ways to Better Deals• Strategic ManagementStrategic Management• Sustainable Supply Chain PracticesSustainable Supply Chain Practices• Leadership and ProfessionalismLeadership and Professionalism

TeachingTeaching• BCIT; UCFV; APICS; PMAC; KUCBCIT; UCFV; APICS; PMAC; KUC

Published papersPublished papers• 2004 McMasters University - 2004 McMasters University - price index model paperprice index model paper• 2005 McMasters University - Sustainable Supply Chain Management Practices2005 McMasters University - Sustainable Supply Chain Management Practices• 2006 City of Granston Case – 2006 City of Granston Case – Purchasing and Supply Management,Purchasing and Supply Management, 13 13thth Edition Edition• 2007 2007 Vancouver the Ethical City: Vancouver the Ethical City: Cities and Ethical Purchasing as Means to Address Social JusticeCities and Ethical Purchasing as Means to Address Social Justice

(co-author) (co-author) Urban Studies Association Conference, Seattle, WashUrban Studies Association Conference, Seattle, Wash

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Work shop outcomes:Work shop outcomes:Work shop outcomes:Work shop outcomes: ObjectiveObjective: Share current supply chain information : Share current supply chain information

for strategic decision-making involving sustainabilityfor strategic decision-making involving sustainability

PurposePurpose: (1) Provide a balance of perspectives on : (1) Provide a balance of perspectives on the issues which affect sustainability for buyers, the issues which affect sustainability for buyers, sellers, and stakeholderssellers, and stakeholders

(2) Consider the challenges to (2) Consider the challenges to define sustainability and corporate social define sustainability and corporate social responsibilityresponsibility

(3) Provide practical ideas for (3) Provide practical ideas for taking actions which include social valuestaking actions which include social values

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ProgramProgramProgramProgram

IntroductionsIntroductions Overview of Overview of

SustainabilitySustainability The Links in the Chain The Links in the Chain

CaseCase Definition of Definition of

sustainabilitysustainability Principles and standardsPrinciples and standards

Resistance to sustainabilityResistance to sustainability Reasons for sustainabilityReasons for sustainability ChallengesChallenges TrendsTrends Leading practicesLeading practices Market references, resources Market references, resources

and toolsand tools

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Philosophical ImperativePhilosophical Imperative

Social contract theorySocial contract theory

Social justice theorySocial justice theory

Rights theoryRights theory

Deontological theoryDeontological theory

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The Links in the Chain CaseThe Links in the Chain Case

Review the case individuallyReview the case individually

Identify key issuesIdentify key issues

Within small groups, decide what steps Within small groups, decide what steps Bryan could take to respond to Tom’s Bryan could take to respond to Tom’s request.request.

The Links in the Chain CaseThe Links in the Chain Case

Review the case individuallyReview the case individually

Identify key issuesIdentify key issues

Within small groups, decide what steps Within small groups, decide what steps Bryan could take to respond to Tom’s Bryan could take to respond to Tom’s request.request.

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Definitions of SustainabilityDefinitions of Sustainability

Group Exercise:Group Exercise:

What is the definition of sustainability?What is the definition of sustainability?

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Sustainability:Sustainability:

EEconomicsconomics

+ + EEnvironmentnvironment

+ + EExpectations of societyxpectations of society

= = SustainabilitySustainability

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The Role of GovernmentThe Role of Government

ExternalitiesExternalities

MonitoringMonitoring

ControllingControlling

TrendsTrends

IncentivesIncentives

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The Role of NGOsThe Role of NGOs

Who are they?Who are they?

What do they do?What do they do?

How can you work with them?How can you work with them?

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Who are the NGOs?Who are the NGOs?

MSN – Maquila Solidarity NetworkMSN – Maquila Solidarity Network OxfamOxfam Amnesty InternationalAmnesty International Green PeaceGreen Peace

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Principles and StandardsPrinciples and Standards

The Ceres PrinciplesThe Ceres Principles The Hannover PrinciplesThe Hannover Principles The Equator PrinciplesThe Equator Principles LEED certificationLEED certification ILO/ UN Declaration of Human RightsILO/ UN Declaration of Human Rights

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Ceres PrinciplesCeres Principles

Protection of the Protection of the biospherebiosphere

Sustainable use of Sustainable use of natural resourcesnatural resources

Reduction and Reduction and disposal of wastesdisposal of wastes

Energy Energy conservationconservation

Risk reductionRisk reduction

Safe products and Safe products and servicesservices

Environmental Environmental restorationrestoration

Informing the Informing the publicpublic

Management Management commitmentcommitment

Audits and reportsAudits and reports

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Hannover PrinciplesHannover Principles

Rights of humanity Rights of humanity and nature to co-existand nature to co-exist

Interdependence Interdependence between humans and between humans and naturenature

Respect relationships Respect relationships between spirit and between spirit and mattermatter

Responsibility for Responsibility for consequences of consequences of designdesign

Safe objects of long-Safe objects of long-term valueterm value

Eliminate the concept Eliminate the concept of wasteof waste

Rely on natural energy Rely on natural energy flowsflows

Understand the Understand the limitations of designlimitations of design

Share knowledge for Share knowledge for constant improvementconstant improvement

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Equator Principles (17)Equator Principles (17)

Used to screen projects with Used to screen projects with international investment involving international investment involving the World Bankthe World Bank• Environmental, social and economic Environmental, social and economic

risksrisks• Generally within emerging economiesGenerally within emerging economies

• Bank of America, HSBC, ING Group, JPMorgan Chase, Manulife, Bank of America, HSBC, ING Group, JPMorgan Chase, Manulife, Royal Bank of Canada, Scotia BankRoyal Bank of Canada, Scotia Bank

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LEED CertificationLEED Certification

Materials should:Materials should:

• Have zero emissionsHave zero emissions• Be Be deconstructabledeconstructable• Be Be renewablerenewable• Be Be recyclablerecyclable• Contain Contain recycled contentrecycled content• Be Be reusablereusable

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International Labour Organization International Labour Organization ConventionsConventions

Freedom of associationFreedom of association Right to collective bargainingRight to collective bargaining Elimination of forced and compulsory Elimination of forced and compulsory

labourlabour Abolition of child labourAbolition of child labour Elimination of discriminationElimination of discrimination

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UBC Supply ManagementUBC Supply ManagementPrinciples of SustainabilityPrinciples of Sustainability

LeadershipLeadership Social inclusivitySocial inclusivity Environmental stewardshipEnvironmental stewardship AccountabilityAccountability

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Resistance to SustainabilityResistance to Sustainability

Group Exercise:Group Exercise:

Why WOULDN’T business engage in sustainability?Why WOULDN’T business engage in sustainability?

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Reasons for Resistance to Reasons for Resistance to SustainabilitySustainability

1.1. --2.2. --3.3. --4.4. --5.5. - - 6.6. --7.7. --8.8. --9.9. --10.10. --11.11. --12.12. --

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Managerial Barriers to Managerial Barriers to Sustainability PracticesSustainability PracticesManagerial Barriers to Managerial Barriers to Sustainability PracticesSustainability Practices

-- -- -- -- -- -- -- -- -- -- --

-- -- -- -- -- -- -- -- -- -- --

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Reasons For SustainabilityReasons For Sustainability

Group Exercise:Group Exercise:

Why SHOULD business engage in sustainability?Why SHOULD business engage in sustainability?

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Reasons For SustainabilityReasons For Sustainability

1.1. --2.2. --3.3. --4.4. --5.5. --6.6. --7.7. --8.8. --9.9. --10.10. --11.11. --12.12. --

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Challenges/Opportunities for Challenges/Opportunities for Supply ProfessionalsSupply Professionals

Group Exercise:Group Exercise:

What challenges or opportunities are presented to What challenges or opportunities are presented to decision-makers with sustainability?decision-makers with sustainability?

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Challenges/Opportunities for Challenges/Opportunities for Supply ProfessionalsSupply Professionals

-- -- -- -- -- -- -- --

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Challenges/Opportunities for Challenges/Opportunities for SuppliersSuppliers

Group Exercise:Group Exercise:

What challenges or opportunities are presented to What challenges or opportunities are presented to suppliers with corporate social responsibility?suppliers with corporate social responsibility?

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Challenges/Opportunities for Challenges/Opportunities for SuppliersSuppliers

-- -- -- -- -- -- -- --

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CaveatsCaveats for Suppliers for Suppliers

-- -- -- -- -- -- --

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Leading Organizations….Leading Organizations….Leading Organizations….Leading Organizations….

H&M Clothing, (Sweden)H&M Clothing, (Sweden) Procter & GambleProcter & Gamble Dofasco SteelDofasco Steel The University of BCThe University of BC Placer DomePlacer Dome BHP Billiton Diamonds BHP Billiton Diamonds

(Ekati)(Ekati) Vancouver City Savings Vancouver City Savings

Credit UnionCredit Union The University of VictoriaThe University of Victoria Minas Basin Pulp and Minas Basin Pulp and

PaperPaper

Interface CompaniesInterface Companies Mountain Equipment Co-opMountain Equipment Co-op StarbucksStarbucks Protocol Environmental Protocol Environmental

SolutionsSolutions Ciba-Geigy (Switzerland)Ciba-Geigy (Switzerland) Hudson's Bay CompanyHudson's Bay Company Dow Agro SciencesDow Agro Sciences CargillCargill City of VancouverCity of Vancouver City of WhistlerCity of Whistler

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Group Exercise:Group Exercise:

What can we do to demonstrate What can we do to demonstrate sustainability in the supply chain?sustainability in the supply chain?

Brain Storming IdeasBrain Storming IdeasBrain Storming IdeasBrain Storming Ideas

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What can We do in Supply What can We do in Supply Chain Management?Chain Management?

The influence of the affluent factorThe influence of the affluent factor

Be: innovative not isomorphisticBe: innovative not isomorphistic

Be: passionate not passiveBe: passionate not passive

Be: proactive not pessimisticBe: proactive not pessimistic

Be: professional and pragmaticBe: professional and pragmatic

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Be Professional, Pragmatic, Be Professional, Pragmatic, and Prioritizeand Prioritize

1.1. --2.2. --3.3. --4.4. --5.5. --6.6. --7.7. --8.8. --9.9. --10.10. --11.11. --

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Current Leading PracticesCurrent Leading Practices -- -- -- -- -- -- -- -- -- --

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TrendsTrends

-- -- -- -- -- -- --

-- -- -- -- -- --

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Memo to Business:Memo to Business:Memo to Business:Memo to Business:

Society cares that you Society cares that you dodo make a make a ProfitProfit

andand

and and howhow you make that you make that ProfitProfit..

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Remember……..Remember……..

Good Planets are Hard to Buy!Good Planets are Hard to Buy!Good Planets are Hard to Buy!Good Planets are Hard to Buy!