Business & Society ETLW 302 Tara Ceranic Salinas, PhD

Not just for hippies anymore  Sustainability Not just for hippies anymore 

Sustainable Development Protecting the environment will require economic development, but economic development must be accomplished sustainably.

The Price of Thirst Do we all have to move?!

Blah, blah, blah This is a MORAL issue! Underlying issue of a general lack of respect for life Creation was entrusted to us Contact with nature is comforting Interests of production prevail over concern for the dignity of the workers while economic interests take priority

Society changes its mind In 1970, it was OK to smoke on airplanes. In 1970, it was OK for high schools to forbid young women to wear slacks. In 1970, it was OK for Milton Friedman to say: The only social responsibility of business is to make a profit. None of these things are OK 35 years later.

Why so many issues? 7 BILLION people on the planet 9B in 2070 World Poverty and income inequality

Other ecological threats

The Commons Damage to ecosystems in one part of the world affects people in other locations Restraint = only solution

What is the business case for sustainability? Pursuing a mission of SD can make firms more… Competitive Resilient to shocks More likely to attract and hold customers and employees More @ ease with regulations, banks, insurers and financial markets

How many planets do you need?

How are businesses promoting sustainability? Alcoa: 1/5 of executive cash compensation is tied to safety, diversity and environmental stewardship, which includes greenhouse gas emission (GHG) reductions and energy efficiency. Pepsi: Sustainability strategy and goals presented during annual shareholder meeting. Identifies and discloses climate change, water scarcity and public health issues as core sustainability challenges in its annual financial filings.

How are businesses promoting sustainability? GE: HR integrating sustainability into the company's culture, ranging from hiring practices and training to employee wellbeing programs. Ford: Requirements for first-tier suppliers to drive its environmental and social expectations further down the supply chain and works with suppliers to establish GHG emission reduction and energy efficiency targets.

How are businesses promoting sustainability? Nike: Making app (2013)-allowing the data in its materials sustainability index to be public. PG&E: The utility company's environmental policy explicitly references habitat and species protection, and the company publicly reports detailed findings on its efforts. General Mills: Sustainable sourcing commitments that begins with a robust risk assessment process undertaken in partnership with a third party. This approach led the company to prioritize ten commodities, including oats, wheat and corn, that they plan to source sustainably.

How are businesses promoting sustainability? P&G: Sold $52bn in "sustainable innovation products" between 2007 and 2012, accounting for approximately 11% of the company's total cumulative sales over that period. These are products that provide a greater than 10% reduction from previous or alternative versions in one or more of the following: energy use, water use, transportation, material used in packaging, and use of renewable energy or materials. Dell: Integrates alternative, recycled and recyclable materials in its product and packaging design, improvements in energy efficiency, and design for end-of-life and recyclability. One of the company's commitments is to reduce the energy intensity of its product portfolio by 80% by 2020.

What can you do?