Thailand Productivity Institute Concept.pdf · Thailand Productivity Institute 9 Strategic Challenges ... Social Corporate Citizenship Philanthropy ... Key success factors

Thailand Productivity Institute 1

Thailand Productivity Institute

Corporate Sustainability: The Strategic Thrust for the 21st Century Enterprises

Business Excellence Sharing February 23, 2011


Table of Contents

About the Project 3

Corporate Sustainability in a Disruptive World 7

Corporate Sustainability Framework 11

Corporate Sustainability Implementation 29

Glossary 34


About the Project 1 Corporate Sustainability: The Strategic Thrust for the 21st Century Enterprises


Background

Socio-economic changes in the world and Thailand

Diverse array of management techniques

Corporate knowledge architecture for existing and future

service development


Project Direction

Importance

Development of competitive

advantage

Enhancement of corporate

sustainability

Objectives

To develop CS strategies and

plans

To improve product/service

and management processes

To manage change

Enterprises’ Participation

Business Environment


Conceptual Framework

Training Improvement Performance

Corporate Sustainability

Concept

BE Criteria

Assessment & Planning

Tools

Management Techniques

Management Tools

Best Practices

Change Management

Enablers

Growth

Development

Sustainability


Corporate Sustainability in a Disruptive World 2 Corporate Sustainability: The Strategic Thrust for the 21st Century Enterprises


Major Changes in a Modern World: Ten Trends from 2010

Regulation Hasn’t Saved Us

The City: Playground,

Battleground, Testing Ground

Sustainability or Sustainable?

Changing Minds

Energy Center Stage…

…And So Is Water

The Year of the EV

The Ratings Game

When Two Become One?

A Question of Growth

Ten Trends from 2010

Source: SustainAbility, 2010


Strategic Challenges

Regulation Hasn’t Saved Us

The City: Playground,

Battleground, Testing Ground

Sustainability or Sustainable?

Changing Minds

Energy Center Stage…

Trends

More government and private

sector’s responses

The growth of megacities and

urbanization

Narrow vs. wider definition of

sustainability for firms.

Limits of knowledge to break

out deeply-held mindsets

Life dependency on energy

Challenges


Strategic Challenges (Cont’d)

…And So Is Water

The Year of the EV

The Ratings Game

When Two Become One?

A Question of Growth

Trends

Collision between water

scarcity and access to energy

Impact the transport sector

The growth and diversity of

corporate responsibility ratings

Committee and integration of

processes and reporting

Mismatch between the idea of

unending growth and finite

resources on a finite planet

Challenges


Corporate Sustainability Framework 3 Corporate Sustainability: The Strategic Thrust for the 21st Century Enterprises


Definition

Encompasses environmental, social and corporate governance

issues, as embodied in the United Nations Global Compact’s

Ten Principles.

Source: The UN Global Compact, 2010


Definition – Principles

Principle 1

Businesses should support and respect the protection of internationally

proclaimed human rights; and

Principle 2

Make sure that they are not complicit in human rights abuses

Human Rights


Definition – Principles (Cont’d)

Principle 3

Businesses should uphold the freedom of association and the effective

recognition of the right to collective bargaining;

Principle 4

The elimination of all forms of forced and compulsory labour;

Principle 5

The effective abolition of child labour; and

Principle 6

The elimination of discrimination in respect of employment and occupation

Labour Standards


Definition – Principles

Principle 7

Businesses should support a precautionary approach to environmental

challenges;

Principle 8

Undertake initiatives to promote greater environmental responsibility; and

Principle 9

Encourage the development and diffusion of environmentally friendly

technologies.

Environment


Definition – Principles (Cont’d)

Principle 10

Businesses should work against corruption in all its forms, including extortion

and bribery.

Anti-Corruption


CEOs on Sustainability

The financial community is increasingly looking at companies

and rewarding those that think smartly about their use of

resources - Paul Polman, Unilever

Whichever angle you come from, you try to meet a need of a

community or an economy, both from an economic perspective

and from a development angle - Gerard J. Kleisterlee, Royal

Philips Electronics

During the first ten years we’ve been discussing direction. Now

is the time to implement that direction into business and

societal mechanisms - Toshio Arima, Fuji Xerox


MNCs on Sustainability

Source: The Coca Cola Company, 2011


Dow Jones on Sustainability

Corporate Sustainability is a business approach that creates

long-term shareholder value by embracing opportunities and

managing risks deriving from economic, environmental and

social developments. Corporate sustainability leaders achieve

long-term shareholder value by gearing their strategies and

management to harness the market's potential for sustainability

products and services while at the same time successfully

reducing and avoiding sustainability costs and risks.

The quality of a company's strategy and management and its

performance in dealing with opportunities and risks deriving

from economic, environmental and social developments can be

quantified and used to identify and select leading companies for

investment purposes.


Dow Jones on Sustainability (Cont’d)

Leading sustainability companies display high levels of

competence in addressing global and industry challenges in a

variety of areas:

- Strategy: Integrating long-term economic, environmental and

social aspects in their business strategies while maintaining

global competitiveness and brand reputation.

- Financial: Meeting shareholders' demands for sound financial

returns, long-term economic growth, open communication and

transparent financial accounting.

- Customer & Product: Fostering loyalty by investing in customer

relationship management and product and service innovation

that focuses on technologies and systems, which use financial,

natural and social resources in an efficient, effective and

economic manner over the long-term.



Leading sustainability companies display high levels of

competence in addressing global and industry challenges in a

variety of areas:

- Governance and Stakeholder: Setting the highest standards of

corporate governance and stakeholder engagement, including

corporate codes of conduct and public reporting.

- Human: Managing human resources to maintain workforce

capabilities and employee satisfaction through best-in-class

organizational learning and knowledge management practices

and remuneration and benefit programs.



Dimension Criteria

Economic Codes of Conduct/Compliance/Corruption and Bribery

Corporate Governance

Risk and Crisis Management

Industry Specific Criteria

Environment Environmental Reporting


Social Corporate Citizenship Philanthropy

Labor Practice Indicators

Human Capital Development

Social Reporting



Typical Concept and Model


Source: csrquest, 2010

4CR Multi-dimensional CR Perspective


Source: European Corporate Sustainability Foundation

ESCF Management Model for Implementing CS-R


Our Thinking

Business Society

Area

National

Global/Regional

Stakeholder a

Stakeholder b

Stakeholder n

Envi.

Level

Stakeholders

Figure 1: CS Conceptual Framework

Politics

Scope Scopes

Business Society Envi. Politics

Levels

Area

National

Global/Regional

Stakeholders

Stakeholders A

Stakeholders B

Stakeholders N

The

Enterprise


Our Thinking (Cont’d)

FTPI envisions CS as the future enterprise direction which will

incorporate various stakeholders as key contributors to

business continuity while embracing current and future

management techniques to ensure performance excellence.

CS will form as the core concept for enterprise management

strategy so that the enterprise together with key related

stakeholders will thrive in the long run.

CS will open unexplored possibilities for close cooperation with

diverse array of market players, NGOs, public enterprises, civic

organizations and so forth which are active in different areas

uncharted before.


Our Thinking (Cont’d)

CS will become the comprehensive strategy framework

providing strategic learning across different domains of

enterprise’s involvement with the stakeholders believed to

possess rare sources of competitive advantage.

Therefore, CS is all about relationships based on win-win core

values.


Corporate Sustainability Implementation 4 Corporate Sustainability: The Strategic Thrust for the 21st Century Enterprises


Business Excellence Management (BEM)

Deploy

Strategic Goals

Planning Structure

Measures

Coordinated Improvement Initiatives

Strategic Drivers

Extension of BEM Application at Respective Levels

Strategic

- Benchmarking

- Competitive Analysis - Innovation

Tactical

- Hoshin

- QFD - Scorecard

Operational - Tools and techniques

Translating strategic direction into deliverable activities


CS Roadmap

Develop Replicate Integrate

Phase 1: 2011 Business Excellence

Phase 2: 2012

Environmental/Societal

Responsibilities

Phase 3: 2013

Integrated Responsibilities

- Prepare

- Diagnose

- Improve

- Evaluate

- Frame

- Align

- Deploy

- Frame

- Align

- Deploy


Phase 1 Activities: CS through BE

Prepare Assess Improve Review Plan

Organizational Profiling

BE Preparation

Self Assessment

Prioritization of OFIs

BE Training

BE Planning

Top Mgt presentation

Wrap up

BE Sharing 1

Project management

Monitoring

Project evaluation

BE Conference Key Activities

Schedule Jan 2011 Feb 2011 Mar-Oct 2011 Nov 2011

BE knowledge

Opportunities for

improvement

CS Roadmap

Top Mgt support

Improvement

projects

Project execution

Result summary

Best practice

learning

Deliverables


Project Management

Business Excellence Leadership

Outline of scope: Training on Business Excellence planning

Workshop on Business Excellence planning

Methodology: Presentation and workshops

Details of content to be

covered

Business Excellence Training:

Business Excellence concepts and approaches

Business Excellence planning, methodology, and techniques

Key success factors

Linkage with related other management tools

Business Excellence Planning Workshop:

Preparation works

Facilitation planning

Facilitation operations and problem solving

Technical and human aspects in facilitation

Skills needed for successful facilitators

Post works

Business Excellence Sharing: Presentation of the project execution Sharing of experience by pilot #1, #2, and #3


Glossary 5 Corporate Sustainability: The Strategic Thrust for the 21st Century Enterprises


Name Mana Chaiwongroj

Education Background PhD. Candidate (with full scholarship), Public Administration, Sripathum University

MBA (Quantitative Analysis), Chulalongkorn University

B. Eng. (Industrial Engineering), Chulalongkorn University

Professional Positions and Responsibilities

About the Speaker

Working Experiences

Positions and Responsibilities Year Organizations

Senior Management Consultant

Marketing Manager

Guest Lecturer (Executive MBA)

Guest Lecturer

1997 – present

2003 – 2004

2006

Thailand Productivity Institute

Faculty of Business Administration, Ramkamhaeng University

Faculty of Public Health, Mahidol University

Positions Organizations

Senior Corporate Planning Officer

Assistant Management Planning Manager

Senior Strategy Consultant

Marketing Department Manager

Thai Plastics and Chemical PLC.

Toyota Motors Thailand Co., Ltd.

Coopers & Lybrand Associates Co., Ltd.

Chevalier OA Thailand Co., Ltd.

Consulting Experiences Experiences in providing advisory and training assistance for more than ten years for major state,

public, and private enterprises covering key industrial and service sectors, e.g., energy,

petrochemical, telecommunications, property development, automotive parts, etc.


Contact Address Thailand Productivity Institute

Yakult Building, Floor 14, Phaholyothin Road

Phyathai, Bangkok 10400

Mobile (081) 612-5685

Tel. (02) 619-5500

Email: [email protected]

About the Speaker (Cont’d)

Social Activities

Roles Organizations

National Moderator

Columnist

Speaker, Master of Ceremony, Host (in

strategy and productivity fields)

The Asian Productivity Organization (APO)

Se-education PLC.

Suedee Co., Ltd.

State, public, and private enterprises

mailto:[email protected]

Documents

Thailand Productivity Institute Concept.pdf · Thailand Productivity Institute 9 Strategic Challenges ... Social Corporate Citizenship Philanthropy ... Key success factors