Sustainable Management

for Metropolia, Business Ethics IP week.

Lecturer:Menno de Lind van Wijngaarden, MSc.

Sustainable Management

Sustainable Management

• Create Portfolio• Of 8 assignments, (all, except 7)• Bring your portfolio• On Friday 10:00

2

Assignment 1

• Before we start, let’s do a zero measurement• Write 150-200 words about the following

situation:• You live in 2030 and you have 2 kids 5 and 7

years old, how do you expect society looks like at that moment and what kind of future do you see for your children. Describe in your short story wealth, health, employment, and natural environment

Sustainable Management

Sustainable Management

4

Sustainable Management

Sustainable development

Corporate Social Responsibility

Business Ethics

Level Society Business Individual

Context Communities, Countries, Regions,

Global Organizations

Industries, small, medium to large, multinational enterprises

Citizenship, Employee, Manager, Consumer

Issues Environment, Populations, Effects of Globalization, Treaties, Protocols

Stakeholders management, Fair trade, Chain responsibility, Code of conduct

Human Behavior, Ethical decision making, do the right thing. World view.

5

Sustainable Management

Sustainable development

• Definition:Development is sustainable when:• "meets the needs of the present without

compromising the ability of future generations to meet their own needs."

• Brundtland commission, 1987

• A short definition =• “Intergenerational equity”• Now vs. Then, Here vs. There

6

Sustainable Management

Environmental issues

• Climate• Water• Land• Biodiversity• Population

• Everything is connected!

7

Funnel Theory

• Business needs to be innovative, stakeholder oriented, and long term oriented to find its way into the funnel.

Sustainable Management

People, Planet, Profit (3 P’s)

Triple Bottom Line

Aspects a.k.a.

People Social Human Capital

Planet Environmental Natural Capital

Profit (Prosperity) Economical Capital

9

People, Planet, Profit (3 P’s)

• Not shown in this model, but essential to CSR is:• Ethics, moral choices (often dilemmas)• Long term view, strategy aimed at 10 years• Profit, but also non-financial gains, value creation

Discussion

• Business is responsible for the mess we’re in.• Consumers are responsible; they should

factor sustainability in their buying decisions.• Do you take sustainability into account?

Sustainable Management

Business and Sustainability

• Business can take the lead, act as a driving force.

• But governments need to set requirements (level playing field)

• Consumers are only limited stakeholders here.

12

Sustainable Management

Sustainability arguments

In favor• Inevitable

• Exp. Growth• Car. Capacity• Syst. Errors

• Increasing Public Awareness

• Sustainability can be profitable

• It is the right thing to do.

Against• Not Measurable

• Value of life, biodiversity, morality

• Circumstantial• Not under poverty or

recession• Not Universal

• Nationalism, Liberalism, Culture

13