Advanced Management Control and Sustainable Development Lecture 2: Sustainable Development Goals: definitions and aspects Prof. Angelo Riccaboni University of Siena Department of Business and Law angelo.riccaboni@unisi.it

Agenda Sustainable Development Goals Sustainable Development Challenges and Business Challenges Making Sustainability “business as usual” Creating conditions for good investments Building global change from the bottom up Ensuring credibility, accountability and transparency Creating new multi-stakeholder partnerships The 5 Pathways to the Sustainable Development Goals

Sustainable Development Goals

Sustainable business – business as usual Business contribute to sustainable development by proposing solutions that are: Measurable – are making the difference Scalable – Can have a meaningful impact on the world Replicable – can be replicable by many companies, in multiple sectors, regions Beyond business as usual – businesses and government must collaborate Good for business – can have a commercial logic

Sustainable business – business as usual Business Charter for Sustainable Development , provides the following benefits: Information clarity, and a framework of tools and methodologies. Reduction of risks and liabilities. Enhancement of efficiency and effectiveness of existing products and services. Generation of new business opportunities. Longer-term cost reductions. Enhancement of knowledge, education, and awareness. Increased employee loyalty. Higher standing in society and better reputational value.

Creating conditions for good investments Countries must fight to : Implement investment, trade and competition policies Contribute to good business and investment climates Support local entrepreneurship Governments need to be careful not to: Discourage public sector investment in public goods Reduce domestic private investment Permit excessive deregulation

Building global change from the bottom up Meet the responsibilities in areas of human rights, labour, environment and anti-corruption Recognise the duty of investors “to act in the best long-term interests” Empowerment of women, gender equality, equal pay, equal recruitment and promotion Generate measurable social, financial returns Build domestic resources and human capital

Building global change from the bottom up SDGs identify the priority actions: Increase exports of developing countries, doubling the exports from least developed countries Implement social and differential treatment for developing countries Implement duty-free and quota-free market access on a lasting basis for all of the least developed countries End trade restrictions and distortions in world agriculture markets Increase aid-for-trade support for developing countries

Ensuring credibility, accountability and transparency Major investments requires – corporate transparency, reporting on business activities, meet fiscal obligations and fiscal reporting Transparent information on taxation is rather critical for sustainable and inclusive development Major control on illicit financial flows- focus on anti-money laundering and international bribery transactions Need to acquire data on financing flows, packages and opportunities

Creating new multi-stakeholder partnerships Innovative public-private partnership- share risks and reduce costs Role of civil society- to ensure checks and balances control Public sector plays a crucial role in education, health and social services Private sector actors include not only formal enterprises, but also informal enterprises, family-run farms, households and individuals. Private foundations which enable systemic change, ensure increased sustainability and scale up partnership efforts

Quantity and Quality Investment in Support of the SDGs Foreign direct investment creates new jobs, boosts productivity and technology transfers, while enabling local firms to access new markets in developing and emerging economies. Blended finance offers huge, largely untapped potential for public, philanthropic and private actors to improve the scale of investment in developing countries. Monitoring and measuring private funds mobilised enhances transparency, improves financing strategies and good practices. Social impact investment empowers the poorest to lead more productive lives, while bringing effectiveness, innovation and scale to sustainable business. Responsible business conduct enhances business and development results, matching investment quantity with business quality to produce social, economic and environmental benefits.