1. Innovations for Sustainability Integrating Stakeholders into the Innovation Process Environmental Management Leadership Symposium Università Bocconi, Milano 8th & 9th June 2009 Michele Arouch Marianne Esders

2. Workshop. Sustainability Innovation Process Multi-Stakeholder Integration R&D / Prototyping Potential innovation Idea generation Invention phase IntroductionDispersion Realisation & adoption phase Realised innovation Market Arena Competitors /Suppliers Market Arena Competitors /Suppliers Civil Society NGOs Civil Society NGOs Scientific Arena Political and Legal Arena / Government

3. Workshop. Some of the main questions arising within this context: 1a) How can the sustainability innovation process benefit from stakeholder integration? Where can which stakeholders be supportive for what? 1b) What are the risks and challenges to be aware of? 2)What are the skills and actions necessary for a sustainability manager to successfully utilize cross- sector initiatives for sustainability innovation?

4. Market Arena (Competitors, Suppliers, Consumers) Consumers push governments and companies to do more on sustainability issues require labelling of products with indicators on environmental standards Suppliers give the companies their ideas on innovation for sustainability collaborate with other suppliers on more environmentally friendly production processes

5. Market Arena (Competitors, Suppliers, Consumers) Competitors Innovation through a collaborative effort between competitors – alliances, clusters

6. Govnernment / Political / Legal Institutions Fund research Support universities and research institutes Provide financial incentives for eco-friendly behaviour and products Implement taxes and laws Support the bank system for low investment loans Bring different stakeholders together Provide platforms for information sharing purposes (e.g. a website) Integration of different countries (e.g. within the EU)

7. Research Institutes / Universities Provide skilled people by having education programmes like the Master in Environmental Management Support business by doing research for them Provide students Provide the framework for sustainability

8. Civil Society / NGOs / Media Press governments to restrict standards and laws NGOs can be a reference point for the companies Provide their knowledge on sustainability issues Media can inform and educate the people on sustainability issues (e.g. Lifegate) Media can support knowledge sharing and promoting sustainable innovations

9. Risks of Stakeholder Integration Every stakeholder group makes other stakeholder groups responsible for solving the problem Not every stakeholder likes to share knowledge – free rider problem Knowledge spill-over – loss of competitiveness Increasing costs Time constraints Distribution of power between the different stakeholders

10. Skills of the Environmental / Sustainability Manager Negotiation and communication skills Patience Interdisciplinary background to speak the stakeholders‘ „language“ Not only integrate external stakeholders but also integrate the different functions within the organisation (R&D, production, marketing, finance, packaging, etc.)

11. Conclusion Many risks of stakeholder inclusion Make sure you choose the right stakeholders and the right timing to involve them Innovation for sustainability cannot take place without the support of many stakeholders. Isolated R&D efforts cannot become a market success if they are not supported by stakeholders affected. Definitely not only external stakeholder integration is needed but internal integration of functions and top management commitment need to be worked on as well.

12. Conclusion II Milano is a great city with great food and great people and great students!!!! Thank you!