© Confederation of Indian Industry Responsible Business in India Seema Arora 21 April 2011, Delhi BRCC project meeting.

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Presentation transcript:

© Confederation of Indian Industry Responsible Business in India Seema Arora 21 April 2011, Delhi BRCC project meeting

© Confederation of Indian Industry Disruptive Innovation Global Change Civil Society Trade Liberalisation Population Growth Poverty & Inequity Urbanisation Resource Consumption Pollution Industrialisation Information Explosion 21 st Century Business Drivers

© Confederation of Indian Industry AspectOld ParadigmNew Paradigm MarketsComplianceCompetition ValuesBusinessSocietal TransparencyClosedOpen Life cycle technologyProductFunction PartnershipsIsolationCo-operation Time-frameShort-termLong-term Corporate GovernanceAdvisoryAccountable Seven Sustainability Revolutions

© Confederation of Indian Industry Sustainability is now seen as a key issue in business… “In the future, only companies that make sustainability a goal will achieve competitive advantage. That means rethinking business models as well as products, technologies, and processes.” C.K. Prahalad, M.R. Rangaswami and Ram Nidumolu Harvard Business Review 2009

© Confederation of Indian Industry Our growth & expansion is a reflection of changing markets and what the future will be CII EMD CESD Pollution Adjustments Sustainability RiskOpportunity CostSavings & profits Innovation CharityBiz models

© Confederation of Indian Industry Sustainable Innovation Inclusive Biz Models C-SAP 3CS ISO Stakeholder Engagement OHS IMS Social Accountability Sustainability Reporting Bottom of Pyramid Carbon Disclosure Sus Biz Portfolio Catalysing change through increasing portfolio of products

© Confederation of Indian Industry Sustainable business is dynamic and still evolving Profit Focus Shareholder value Philanthropy Passive donations Community Affairs Strategic giving Community Investment Strategic partnerships Sustainable Business Integrated into goals, strategies

© Confederation of Indian Industry Tomorrow Today ExternalInternal Growth Path & Trajectory Innovation & Repositioning Cost & Risk Reduction Reputation & Legitimacy Eco-efficiency Risk management Waste minimisation Resource productivity EMS / ISO OHS / OHSAS SA 8000 Base of the Pyramid Urban investment Inclusive Capitalism B2B CSR Sustainability reporting Stakeholder Management Life-Cycle Management Ecolabelling Full Cost Accounting Transparency Disruptive innovation Renewable energy Sustainable technology Knowledge & service intensity Systems thinking Different tools and approaches

© Confederation of Indian Industry Sustainability Value Framework Strategy: Sustainability Vision Create a shared roadmap for meeting unmet needs Corporate Payoff: Growth Trajectory External Internal Today Tomorrow Strategy: Clean technology Develop the sustainable competencies of the future Corporate Payoff: Innovation & Repositioning Strategy: Pollution prevention Minimize waste and emissions from operations Corporate Payoff: Cost & Risk Reduction Strategy: Product Stewardship Integrate stakeholder views into business process Corporate Payoff: Reputation & Legitimacy Drivers Societal Expectations Competitive- ness Drivers Pollution Consumption Waste Drivers Pollution Poverty Inequity Drivers Societal Expectations Transparency Communication Sustainable Value

© Confederation of Indian Industry What will drive tomorrow? Social media More stakeholder driven Voluntary-regulatory combo Many different forms of businesses; hybrid business will be mainstream in medium term Resource constraints

© Confederation of Indian Industry Tomorrow will be better; it could be Sustainability embedded CG Inclusive / BOP business models Sustainable & inclusive innovation Green will be competitive advantage until medium-term; post that it will be mainstream Integrated reporting