1. SUSTAINABILITY Dr. Ron Lembke

2. What is “Sustainability?”  The ability to keep doing something for the indefinite future  If it’s not profitable, it’s not sustainable  What allows a company to survive?  Meeting customer demands  Developing new products  Keeping costs low

3. Treehugger Fringe

4. Industry Thinks it’s Important

5. Students Care  Stanford MBA survey  97% of students say they would take lower pay for a company with good CSR policy (Corporate Social Responsibility)

6. What is “Sustainability?”  Brundtland Commission (1987):  “development that meets the needs of the present without compromising the ability of future generations to meet their needs”  ESG  Environmental – Energy, Carbon, GHG, Water, etc.  Social Corporate Social Responsibility: quality of life for employees, their families, and the community Labor practices, healthcare, education, diversity, safety  Governance Ethics, responsibility, Sarb-Ox Tyco, Enron, WorldCom  Sustainable Economic Development

7. Triple Bottom Line  Environment (Planet) What is your impact on the planet?  Society (People) What is your impact on people?  Economic Performance (Profits) How are your profits? Measurement  Clearer alignment to corporate strategy  Long-term targets, measurement systems  Transparent reporting

8. Corporate America Catches On  GE – Frank Mantero, Director Corporate Citizenship Programs  Investing and Delivering in Citizenship  Audited, like financial statements  40% of value based on reputation  It’s not “giving” back – it’s a partnership  Wal-Mart  Sustainable Supply Chain  “We’re making money at this”  600% increase in carbon reporting consulting

9. Corporate Reporting

14. Conclusions  Companies are increasingly taking “Sustainability” more seriously  Exactly what does that mean?  Stay tuned. More in the next talk.