Sustainable Entrepreneurship Behaving Ethically and Responsibly BU6019 Sustainable Entrepreneurship Behaving Ethically and Responsibly

Is it important to behave responsibly? Consider: In Davos, Switzerland, in February 2014, a total of 2,500 politicians, business leaders and academics gathered in the “World Economic Forum”, to discuss important issues such as poverty, human rights and access to water on a global scale. Q: Is this an example of a “collective approach” towards responsible behaviour – and what part do entrepreneurs play?

Think about: (Remember SIGs can be useful vehicles!) Sustainable Entrepreneurship – working relationships, but between who? (Remember SIGs can be useful vehicles!)

Now, think about: With China’s economy growing, so does the toxicity of its air quality” (e.g. Beijing’s Smog). Small particles are increasing the risk of heart and lung disease In an effort to behave responsibly, Chinese Government Officials have taken action, by restricting industrial activity and vehicle use! An organisation, (Burg Warner), is behaving responsibly by working with Chinese car producers, to develop and supply fuel-efficient engines

Let’s remind ourselves: …Sustainable Entrepreneurship is about an equal approach to establishing ourselves in the market place, assessing success…and being concerned about the environment! (Watson 2010) Remember – ALL stakeholders are watching you!

Behaving ethically and responsibly: “ There is no reason why an IT system cannot capture the use of water and other natural resources used in the provision of a raw material” (www.naturalcapitalforum.com) Consider: Green transportation Conserving energy Reducing waste/careful use of resources Recycling, re-using and re-thinking processes A “green” approach to procurement Q: In what way do all of the above fit into the “Transformation Process” of any enterprise, enabling effective use of the “5 Performance Objectives”

Activity Please circulate the room and interview at least two people to find out what their definition/interpretation of ethical behaviour is! Please be prepared to share your findings with everyone else later!

Sustainability focused meetings! An example: The BT group (British Telecom) arranged sustainability – focused meetings to decide its “not good” initiative through its work with the “Carbon Trust” BT’s aim is to reduce its carbon impact and to help its customers reduce their own Co2 emissions!

Meanwhile: In the USA, in 2013, at a meeting, a shareholder proposal at Emerson Electric encouraged the organisation to produce a Sustainability Report! Q: How effective do you consider ‘sustainability focused’ meetings to be? (Given the true cost of a meeting!)

Behaviour and The 5Ps (Henry Mintzberg 1987) Plan (Sustainable objectives and strategies) Ploy (e.g. using sustainability as a competitive advantage) Pattern (looking at past behaviour in the organisation – how environmentally friendly is it?) Position (“Differentiate” in the market place. How does the enterprise link itself with environmental concerns?) Perspective (Evaluating the organisation's culture and employee involvement with “green” issues) This model can be used to identify areas for change, resulting in a plan for success that may give an organisation competitive advantage with regard to sustainability!

It’s good to think: “Bricks and Bread” is a charity that offers training and advice to stakeholders, so that they can live, work or build sustainability The charity has an aim to help create sustainable business ventures Another aim is to improve rural and urban environments for public health, economic regeneration and conservation activity! - www.bricksandbread.org.uk

Sustainability Certificates/standards; Consider: Ethical, environmental, social and food safety issues that an enterprise might address, may result in standards or certification that help the environment..but also sends a strong message to stakeholders! The Forest Stewardship Council (FSC), Fairtrade label, the Organic standard and the Rainforest Alliance are examples. Self-study - Carry out some research into these and others bodies, such as “Agritrade”

And finally… Some examples of responsible behaviour: Renault is using Soybean in its seating and Hemp fibres in its body panels to reduce use of plastic,(which is made using oil) by 10% Papermaker UPM has developed a wooden car, in an attempt to diversify, with a frame built from tree pulp and the engine fuelled from a “by-product” of the paper-making process! Internal and external financial Auditors are becoming more aware of “emissions” when conducting activities in organisations! They suggest/seek “Assurance Engagements”, identifying levels of emissions and energy, from use of electricity, to chemical processes in any given ‘Transformation Process’! Self study: Conduct some research into ISO14021 and “Environmental Claims”