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Board Strategies and Governance for Sustainable Value Creation
Charles O’Malley
Presentation at IOD India 3rd Global Summit on Sustainability11 October 2012
Fiddling while Rome burns?
The Context
The Destination
The Journey
The Strategy
The Prize
The Summary
The Context
The Destination
The Journey
The Strategy
The Prize
The Summary
The Context
The Destination
The Journey
The Strategy
The Prize
The Summary
Changing markets and economic and social systemsTransformation
Innovation
Efficiency
Reputation
Risk
Graphic: from Spiral Dynamics Adapted from : Bieker, T. , Institute for Economy and the Environment, University of St. Gallen 2002
Creating opportunities
Reducing costs
Protecting and improving reputation
Reducing risk
Source: Johnson, G. Exploring Corporate Strategy. Pearson Education, 2007
Shaper of society
Solving stakeholder challenges
Enlightened self-interest
Short termist and laissez faire
Transformation
Innovation
Efficiency
Reputation
Risk
‘Heartware’‘Mindware’‘Hardware’
Vision & leadershipCultureTools & techniques
Vision
Technology
PassionCollaboration
Engagement
Corporate culture
Systems
Reports
PR
Risk management
Transformation
Innovation
Efficiency
Reputation
Risk
Transformation
Innovation
Efficiency
Reputation
Risk
Most companies today are still in the process of moving from Level 1 to Level 3
Transformation
Innovation
Efficiency
Reputation
Risk
The Context
The Destination
The Journey
The Strategy
The Prize
The Summary
Leadership
Engagement
Integration
Accountability
Collaboration
Transparency
Paul Polman: Unilever was an ‘early adopter’ of the principles of sustainability... we have embedded this thinking into the day-to-day activities of all our brands. We are not going further and committing to meet our ambitions for future growth objectives without increasing the overall environmental impact of the company across its value chain.
Indra Nooyi: Our basic belief – that companies today must marry performance with ethical concerns – is resonating more than ever before... This acknowledges that businesses have a responsibility to the communities in which they operate, to the consumers they serve and to the environment whose resources they use.
Peter Bakker: Beyond just being a CEO, I agree we all need to become much more concerned citizens of this planet. It’s not going in the right direction at the moment.
Leadership
Engagement
Integration
Accountability
Collaboration
Transparency
Leadership
Engagement
Integration
Accountability
Collaboration
Transparency
Keith Weed, CMO at Unilever: “CSR departments are redundant”
Leadership
Engagement
Integration
Accountability
Collaboration
Transparency
Leadership
Engagement
Integration
Accountability
Collaboration
Transparency
Leadership
Engagement
Integration
Accountability
Collaboration
Transparency
Leadership
Engagement
Integration
Accountability
Collaboration
Transparency
Leadership
Engagement
Integration
Accountability
Collaboration
Transparency
Leadership
Engagement
Integration
Accountability
Collaboration
Transparency
Source: The Sustainability Executive: Profile and Progress, PwC
The Context
The Destination
The Journey
The Strategy
The Prize
The Summary
The Context
The Destination
The Journey
The Strategy
The Prize
The Summary
Changing markets and economic and social systemsTransformation
Innovation
Efficiency
Reputation
Risk
Graphic: from Spiral Dynamics Adapted from : Bieker, T. , Institute for Economy and the Environment, University of St. Gallen 2002
Creating opportunities
Reducing costs
Protecting and improving reputation
Reducing risk
Leadership
Engagement
Integration
Accountability
Collaboration
Transparency
Source: The Sustainability Executive: Profile and Progress, PwC