Creating Pathways to Corporate Sustainability: A Unified Risk & Management Systems Approach John Grosskopf, P.E., BCEE ERE, Inc. John Milliman, PhD University of Colorado at Colorado Springs

Outline Today’s Business Challenges Strategic Corporate Social Responsibility (CSR) - Porter & Kramer Unified Risk Management Systems & Partnering - a Pathway to Sustainability Implications for Research and Practice

Today’s Business Challenges Climate Change  Aging facilities  Resource inefficiency  Business continuity Resource Scarcity Expansion Needs Public Concerns  Environmental laws/regulations  Employee retention  NGO demands Increased Transparency Sustainable Business Enterprise Global Competition

* The Link Between Competitive Advantage and CSR, HBR, Dec Strategic Corporate Social Responsibility (CSR) - Porter & Kramer*  The authors assert most CSR efforts are: - unproductive and disconnected from business strategy  They suggest a strategic CSR framework that identifies positive/negative business impacts on society, and how to prioritize and address them  Looking “Inside-Out” and Outside-In”  A very useful framework but one that does not address implementation, and…  A handful of business leaders already have frameworks that manage all their risks/impacts as well as opportunities: the Unified Risk Management approach

Unified Risk Management Improving Risk Identification & Management A single, cohesive and unified approach to address all organizational risks - simultaneously A new and innovative application of proven quality management methods, tools and cross-functional approaches Q H&SE S

Unified Risk Methodologies Examining Social Risks  Unified risk methods assess ALL issues/threats and opportunities: - Looking inside-out: assess impacts of the organization on society - Looking outside-in: assess societal impacts on and linkages with the organization  Unified risk management helps determine the nature, the magnitude, and the priority of all risks and opportunities; both inside and outside the business (shared risks) simultaneously

Partnering for Success Improving Inside-Outside Linkages Partnering is a practical approach that: - improves linkages between business & society - improves stakeholder trust - helps determine and exploit shared value Partnering is an important leveraging tool that counters the effects of downsizing and resource limitations Together, unified risk management and partnering are practical methods to enhance CSR and are a pathway to sustainability

Creating Mutual Value Unified Risk Management and Partnering A Firm’s Unified Risk Management System Academia Communities Regulators & NGO’s & the Public Cooperative Exchanges Collaboration Public Pressures Suppliers & Contractors Knowledge Sharing

Implications for Practice and Research A handful of business leaders and exploratory research provides evidence unified risk management approaches are effective Empirical research is needed to: (1) Map the opportunity aspects of the unified risk approach in a CSR framework (2) Assess the impact of the unified risk management approach on lowering costs, mapping of organizational opportunities, and improved regulatory compliance