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FEK3S0 Corporate Sustainability > Föreläsningsslides > Flashcards

Föreläsningsslides Flashcards

1
Q

Hur kan man definiera CS

A
  • manage triple bottom line at the same time as their environmental, economic and social performance
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2
Q

explain CS in terms of modes of persuasion

A
  • competitive advantage (economic reasons, threat of regulation)
  • moral obligation (concern for society and the environment)
  • legitimacy (stakeholder pressures)
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3
Q

explain features of sustainable business with motives objectives and means

A

Competitive advantage (revenue, productivity and risk minimization) => focus on value creation, learning and change

Moral obligation (accountability and responsibility) => Corporate governance and structural capital like systems and routines etc

Legitimacy (confidence and credibility) => collaboration, dialogue and closeness

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4
Q

name 5 important concepts for CS

A
  • stakeholder perspective
  • wicked problems
  • value creation
  • legitimacy
  • dynamic capabilities and tripple loop learning
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5
Q

Explain the stakeholder approach when it comes to strategy

A
  • theory of org. management and business ethics that addresses morals and values in managing an organization
  • who matters and in what way can be stakeholders such as shareholders, customers, EU, the public, NGOs etc
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6
Q

sustainability issues are often wicked problems, explain what that is

A
  • problem def. is different for different stakeholders
  • many stakeholders
  • every problem is unique and contextually grounded in a certain place and time
  • when not dealt with, complexity increases over time
  • no “right” or “wrong” way to handle them
  • usually only one shot when addressing them
  • success always involves negotiations and is characterized by compromises
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7
Q

What is porters shared value concept

A
  • corporate policies and practices that enhance the competitiveness of a company while simultaneously advancing social and economic conditions in communities which it operates => shared value
  • creating economic value by creating societal value => what’s good for the communities is good for businesses
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8
Q

what are 3 generic strategies based on porters shared value concept

A
  1. Reconciling products and markets
  2. Redefining the productivity in the value chain
  3. Enabling local cluster development
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9
Q

what are the 3 main words to describe sustainable value creation and describe them

A
  • meaningful: values that matter
  • sustainable: values that last and have a net-positive impact (after production and consumption)
  • authentic: values that resonate with the core values of the org and benefits more than the one paying for the service or the product (society, weak stakeholders, natural world…). Also inclusive in the process so stakeholder feels engaged
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10
Q

Explain the 5 ways to create legitimacy through stakeholder collaboration

A

comply: regulation, standrads, certifications, codes of conduct, market price
disclose: transparency, goals & measure, consequences
influence: stakeholder focus, educate & change, challenge core business, advocacy and public policy engagement
involve: co-created value, educated by stakeholders, stakeholders as experts, flexibility and choice
initiate: partnerships and collective action, focus on solving common challenges and agenda setting

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11
Q

What is tripple loop learning

A
  1. here’s what we do - procedures and rules (methods)
  2. here’s why this works - insights and patterns (theory)
  3. here’s why we do this - principles and values
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12
Q

what are the demands due to the complex challenges and a stakeholder perspective on value creation

A
  • local presence and participation in local dialouge
  • employee participation, broader competences, experience from collaboration and dialogue
  • a culture that supports learning, change and sharing
  • a will to experiment and a communicative focus
  • processes, support systems and leadership
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13
Q

what are the key competencies that are generally seen as crucial to advance sustainable development?

A
  • system thinking competency (se och förstå relationer, analysera komplexa system på olika nivåer och context och hantera uncertainties)
  • anticipatory comp. (förstå och utvärdering av olika framtider utifrån om de är possible, probable and desirable)
  • normative comp. (förstå vilka normer och värderingar som lägger grund för agerande)
  • strategic comp. (collectively develop and impliment innovative actions that further sustainability at the local level and further afield)
  • collaboration comp. (learn from others, understand and respect needs, perspective from others, to understand and to be sensitive to others, deal with conflict in a group, collective problem solving)
  • critical thinking comp. (ifrågasätt normer, practices and opinions => reflektera över egna normer etc and take a position in the sustainability discourse)
  • self-awareness comp. (reflektera över den egna rollen i de lokala och globala samhällen för att kunna motivera sitt egna agerande)
  • integrated problem-solving comp. (använda sig av problemlösande frameworks till komplexa hållbarhetsproblem för att kunna framställa ev. lösningar)
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14
Q

ge olika ex. på def. av CSR (corporate social responsibility)

A
  • CSR as actions that appear to further some social good & CSR means going beyond obeying the law
  • sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs
  • business ethics are the accepted principles of right or wrong without governing the conduct of business people
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15
Q

explain the CSR def by Elkington

A
  • economic sustainability
  • environmental sustainability
  • social sustainability

3 hörn av triangel som bildar environmental protection, economic growth of social sustainability vilket sammanställt I sin tur ger CS

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16
Q

Förklara Carrolls CSR pyramid

A

från botten upp:
1. economic responsibilities: be profitable, the foundation which all others rest
2. legal responsibilities: Obey the law, law is societies codification of right and wrong
3. ethical responsibilities: be ethical, obligation to do what is right and fair and avoid harm
4. philanthropical responsibilities: be good corporate citizen

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17
Q

what are the similarities and differences with sustainability terms in academia?

A

similarities: concencus regarding triple bottom line (economic, social, environmental)
differences: on a detailed level, concepts are inconsistent throughout the definitions

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18
Q

what does it mean for managers when there’s no core definition of sustainability

A

They cannot rely on predefined notions on Sustainability and therefore need to take a stand

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19
Q

Why do companies engage in sustainability

A

Internal:
Tomorrow: technology - product development
Today: internal efficiency - savings
External:
Tomorrow: CSR vision - growth
Today: External image - legitimacy

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20
Q

Can CSR be profitable?

A
  • different answers depending on studies: some show positive link between CSR and profit, som show a negative link, and some show no link
  • there is an agreement that there’s no evidence indicating that “good” companies are less (or more) profitable than “bad” companies
  • the important part in therefore finding out when its profitable and how its suitable for specific industry and business
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21
Q

according to deephouse, what companies are profitable and survive?

A
  1. those that are different from competitors, ie that offer something unique to stakeholders (for ex, the resource based view of the firm)
  2. Those that are similar to competitors, ie that avoid being critiqued by stakeholders (for ex new institutional theory)
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22
Q

what are the main point that deephouse makes why its beneficial to be different as a company?

A
  • faces less competition for resources
  • the market is assumed to have a finite level of resources, so similar firms tap into the same resource niches
  • differentiation reduces competition => hopefully increases profitability
  • identify distinct positions from rivals
  • underlying the distinct positions of a successful firm are firm resources which are: rare, valuable, nonsubstitiutable, inimitable
  • less strategic similarity => increased performance
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23
Q

what are the main point that deephouse makes why its beneficial to be similar as a company?

A
  • similar to others => avoids legitimacy challenges that hinder resource acquisition
  • the range of strategic similarity in which firms maintain their legitimacy is called range of acceptability
  • legitimacy challenges lead to: 1. stakeholders will not provide any resources to the firm 2. stakeholders will offer less favorable contracts (e.g higher risk premiums)
  • less strategic similarity increases performance
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24
Q

what are the main point that deephouse makes why its beneficial to be balanced as a company?

A
  • firm faces trade-off between being similar and being different
  • high level of strategic similarity: costs of strong competition outweigh the benefits from being legitimate
  • low levels of strategic similarity: costs of legitimacy challenges outweigh the benifits of reduced competition
  • moderate level of strategic similarity: operate within the range of acceptability, but differentiate
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25
Q

name the overall from Meyer and Rowan about decoupling

A
  • formal org are also reflections of rationalized myths (institutional rules) - not only efficiency
  • loose links between formal structures and actual operations (cf. green wash)
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26
Q

central concepts for decoupling (Meyer & Rowan)

A

Institutionalized rules:
classifications built into society that are “taken-for-granted” and/or supported by public opinion and/or supported by law. Obligations that have a rule like status. They are a) rationalized and b)impersonal (general) prescriptions

Legitimacy: protects the org. from having its conduct questioned

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27
Q

Meyer & Rowan central arguments

A
  1. Org. incorporate institutional rules by expanding and changing
  2. Org. that incorporate institutionalized rules maximize legitimacy and hence enhance survival capabilities
  3. Problem: institutionalized rules conflict a) with efficiency and b) with each other
  4. Solution: decouple formal structure from informal structure to achieve both legitimacy (formal structure) and efficiency (informal structure). More likely when the “solution” is standardized (one-size fits all)
    5.This decoupling is maintained by everyone acting in good faith and assuming that things are as they seem, ie that there is no decoupling. At the same time, everyone participates in making the informal structure work
  5. Unique formal structures are vulnerable to critique of irrational, negligent and unnecessary
  6. Especially org/dep without clear output measures need to conform to institutionalized rules
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28
Q

How is decoupling sustained?

A
  1. Tricking with areas of improvement (ex forged time cards, hiding part of workforce, compensation for “correct” answers etc)
  2. Poor monitoring by areas of improvement (for ex announced monitoring in company areas)
  3. No improvement demands
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29
Q

what is the risk of decoupling as a solution to gain legitimacy and efficiency?

A

it carries a risk of detection where it would no longer confer legitimacy, but probably shame, on the org.

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30
Q

Describe recoupling dvs koppla ihop tidigare frånkopplat talk & action och svårigheterna med detta

A
  • more difficult to sustain as transparency and accountability has increased
  • org ability to decouple talk from practice is restricted if its practices are highly scrutinized
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31
Q

what could recoupling be a respons to?

A
  1. increased external demand and surveillance
  2. The type of external demands (e.g. transparency)
  3. Symbolic compliance over time is normalized and materialized by internal actors
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32
Q

what is decoupling with a means-end perspective?

A
  • the more advanced versions of decoupling take an interest in institutionally induced implementation of ineffective practices
  • activities that are 1) weakly linked to org goals (and the policy goals) and 2) turn out to be largely inefficient
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33
Q

name three consequences of means-end decoupling

A

Internal complexity: Incorporate contradictory pressures into the org.
Perpetual reform: Continuous change projects as the current solutions do not solve the problem
Diversion of resources: The doing of non-essential activities

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34
Q

Explain what it means to integrate sustainability into strategy as a way to recouple

A
  • decoupling is the norm in implementation of a sustainability strategy alongside an existing mainstream competitive strategy
  • this causes the sustainability org level strategy to lack legitimacy if its perceived to mainly be aimed at external legitimacy
  • the sustainability strategy has org but not activity level legitimacy. the win-win has to be created locally, its not enough to have org legitimacy
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35
Q

explain some tensions that can happen if the sustainability strategy is not incorporated into the business strategy and to meet the tensions

A

Product features: trade-off between sustainability and regular performance feature. Compromises with 1) split eco vs regular product or 2) reconcile via “total quality” argument

Strategic goals: short term profits vs sustainability as costly. Integrate into existing tools to gain legitimacy for going against profit. Integration over time also allows for finding synergies between regular and sustainable strategy

Doing what’s right vs what is perceived to give competitive edge. Scarify business opportunities to do the right thing, but feel validated for taking the moral high ground

36
Q

what is the function of the business model

A
  • its a tool for describing how to create, bring and present value to the customer while generating a financial surplus
  • without a working business model either customer value will not be realized from the firm or the firm will not see any prospect making money from its products or services
37
Q

what is the purpose of business models in context of sustainability?

A
  • business models are thus important in order to make sustainable innovations attractive in the eyes of investors
  • green technology and service have to be accompanied by attractive business models in order to ger adopted by firms and customers
38
Q

what is the blueprint based perspective when talking about business models?

A
  • the business as a blueprint over important flows and resources
  • it proved def. of the parts necessary for provisions and delivery of customer value
  • high level of detail. Focus is on the management of resources and relations
  • can be difficult to grasp even for well-informed professionals
39
Q

what is the triple layered business model canvas

A
  • the original canvas can be used for sustainable business models and sustainable business model innovation
  • however, the triple layered canvas increases that capacity and links it more explicitly to the triple bottom line perspective (commitment to measure 3p)
  • represents, creates and validates sustainable business models
  • introduces horizontal coherence at a means to explore sustainability and vertical coherence between the types of sustainability layer
40
Q

what are the main points of the resource based view

A
  • argues that firm attributes rather than industry structure matter
  • sees factors inside the org. as principal source of competitive advantage
  • emphasizes the uniqueness of each company
  • posits that exporting differences is a key to profitability
  • suggests that firm formulate and implement strategy based on their unique strengths in order to establish competitive advantage
  • assumes that a firms resources and capabilities are primary drivers of competitive advantage and economic performance
41
Q

what are resources and capabilities use for in a RBV

A
  • strengths that the firm can use to conceive of and implement strategies
  • enable the firm to improve its efficiency and effectiveness
  • all assets, capabilities, org processes, firm attributes, information and knowledge controlled by the firm
  • competitive advantage typically stems from several resources and capabilities bundled together
42
Q

what are resources in a perspective of RBV

A

tangible and intangible assets of a firm
tangible: factories, equipment, cash
intangible: technical know-how, reputation, culture

used to conceive and implement strategies

43
Q

what are capabilities in a perspective of RBV

A
  • skills and abilities that enable a firm to deploy resources for a desired end (enhance their productivity)
  • embedded in the org. and its processes
  • often based on tacit knowledge acquired from learning-by-doing (for ex leadership skills, close customer relationship)
44
Q

what are two critical assumptions of the RBV

A
  • resource heterogeneity: different firms may have different resources and capabilities
  • resource immobility: it may be costly for forms lacking certain resources to acquire or develop them, some resources may not be spread easily between firms, strategically relevant resources cannot be purchased on open markets
45
Q

Explain competitive advantage

A
  • does not necessarily mean that the company is more profitable than its peers
  • a firm is implementing a value creating strategy that is not simultaneously implemented by any current or potential competitor
  • sustained competitive advantage (SCA): the CA can’t be competed away by the duplication efforts of competitors
  • major shifts in the structure of competition in an industry may invalidate the SCA
46
Q

explain the VRIN framework

A
  • only strategically relevant resources allow for a sustained competitive advantage to be gained

If a firm has resources that are:
VALUEBLE
RARE
costly to IMITATE
NO close substitutes exists

then the firm is likely to enjoy a sustained competitive advantage

47
Q

What are potential threats when it comes to the value part of the VRIN framework

A
  • shifts in demand can make resources redundant. Hence, environmental contexts affect the competitive value of a resource
  • some resources erode if they are not adequately maintained
48
Q

What are potential threats when it comes to rarity of the VRIN framework

A
  • not rare enough => no competitive advantage
  • must be possessed by only a small number of firms to avoid perfect competition
  • to be a source of sustained competitive advantage, the rarity of the resource must persist over time
49
Q

how can you as a company increase the cost of imitation

A

Unique historical conditions
- specific circumstances in space and time - first mover advantage
- resource dependent on unique path through history

time compensation diseconomies
- some things take time and large investments don’t matter when done too late

Casual ambiguity
- based on complex bundles of resources and capabilities
- causal ambiguous resources = intangible resources (invisible assets) based on learning-by doing and refined by practice
- casual links between resources and competitive advantage may not be well understood

Social complexity
- the complex social relationship entailed in a resource make it difficult fro firm to systematically manage or influence
- however in most cases, its possible to specify how complex resources create value
- social complexity increases with the number and diversity of players who are involved

50
Q

What are potential threats when it comes to substitutability of the VRIN framework

A
  • are there any alternative resources that enable a competitor to implement the same strategy?
  • if alternative resources exist that are not costly, the strategy can be duplicated at low cost, invalidating competitive advantage
  • substitutability is a matter of degree
  • widely different resources can serve as substitutes (future vision due to charismatic leader or formal planning system)
51
Q

how can a competitive advantage be created by pursuing a proactive environmental strategy

A
  • lower costs
  • competitive pre-emption
  • a favorable future position
52
Q

what are the three interconnected strategies to reach strategic advantage in the perspective of the natural resource-based view

A
  • pollution prevention: minimize emissions and wast, increase efficiency
  • product stewardship: minimize environmental impacts of products
  • sustainable development: minimize the environmental burden of firm growth & development
53
Q

explain pollution prevention in terms of primary aim, competitive advantage, strategies and cost reductions (NRBV)

A

primary aim: reduce emissions and waste

Competitive advantage: lower costs

Two basic strategies: 1)preventing pollution at the source 2) “end-of-pipe” technology (less sustainable)

Cost reductions through:
- increased productivity and efficiency gains
- lower costs for raw materials and waste disposals
- lower risks
- reduced compliance and liability costs

54
Q

what are the challenges and key capabilities with pollution prevention? (NRBV)

A

challenges:
- moving closer to “zero emissions” investments become less profitable, more capital intensive
- broader changes in underlying product design and technology may be required

Key capabilities:
- extensive employee involvement
- continuous improvements of emissions reduction
- continuous innovation

55
Q

explain product stewardship in terms of primary aim, competitive advantage, strategies and comp. pre-emption (NRBV)

A

primary aim: minimize the environmental impact of products

competitive advantage: competitive pre-emption (first mover)

Basic strategies:
- differentiate products and build reputation
- integrate stakeholders´ views into product design and development processes
- life-cycle thinking (LCA, cradle to cradle)

Comp. pre-emption by
- exiting environmentally hazardous business and developing new products with lower life-cycle costs
- gaining preferred access to resources
- establishing rules and regulations that fit the firm

56
Q

what are the challenges and key capabilities with product stewardship? (NRBV)

A

challenges:
- markets for “green products” are rarely large or lucrative early on

Key capabilities:
- close cooperation between environmental staff, marketing staff and customers
- stakeholder integration (which relies on coordination and communication capabilities both internally and across org) - integrating the perspective of key stakeholders into product design and development

57
Q

explain sustainable development in terms of primary aim, competitive advantage, strategies and favorable future positions (NRBV)

A

primary aim: minimize the environmental burden of firm growth and development

Competitive advantage: favorable future position

basic strategy: build markets in the south while reducing the environmental burden created

favorable future position facilitated by:
- strong sense of social-environmental purpose
- collaborations between public and private org. to bring about technological change
- shared sustainability vision fosters commitment throughout the org.

58
Q

what are the challenges and key capabilities with sustainable development ? (NRBV)

A

challenges:
- don’t repeat mistakes - need to go beyond existing technologies and production methods
- substantial investments and long-term commitment required

key capabilities:
- visionary leadership based on shared sustainability vision (a road map for future development)
- capability to reposition internal competencies around more sustainable technologies
- capability for research and devolpment

59
Q

what is the efficient market hypothesis (EMH)

A
  • all relevant information captured in securities prices
  • prices change due to new information, random
  • you can not beat the market => hold the market portfolio
60
Q

what is screening

A

negative screening:
- reject securities from your portfolio, based on moral preferences (tobacco etc)
- “don’t do bad”

positive screening
- include only securities in your portfolio based on some moral goal function
- “charity”
- sometimes argued to be better in the long-term

61
Q

what is the impact on the portfolio return while using screening?

A
  • non-randomly rejecting securities from your portfolio means less diversification
  • that means taking on more firm-specific risk…which should lead to lower risk-adjusted returns
62
Q

How efficient is screening

A

negative screening:
=> temporarily lower demand and price => creates an arbitrage opportunity => “unethical” investors buys more => pushes prices back up

positive screening:
=> temporarily raises demand and price =>creates an arbitrage opportunity => “unethical” investor sells more => pushes prices back down

63
Q

what is stranded assets

A

In the context of sustainable finance, stranded assets refer to assets that have become or are projected to become obsolete or non-performing due to changes in the economic, technological, regulatory, or environmental landscape. These changes may make the assets unviable, reducing their economic value and potentially leaving investors and companies with financial losses.

The concept of stranded assets is closely tied to the transition to a low-carbon and sustainable economy. As the world moves towards reducing carbon emissions and addressing climate change, certain industries and assets may face the risk of becoming stranded. For example, fossil fuel reserves, power plants relying on outdated technologies, or industries with high environmental impact may become economically unviable as governments implement stricter regulations, consumer preferences shift, or cleaner technologies become more prevalent.

64
Q

what is the main points made when comparing stranded assets with EMH (effective market hypothesis)

A

the risk of stranded assets is not reflected in prices is inconsistent with EMH

65
Q

what is a sin stock?

A

“Sin stocks” refer to shares of companies operating in industries traditionally considered morally questionable or controversial. These industries often involve products or services that are associated with vices or activities deemed socially unacceptable by some. The term “sin stocks” is typically applied to companies in sectors such as tobacco, alcohol, gamling etc

66
Q

what are 3 motivations for corporations to act?

A
  1. Legitimization
    - threat of government regulation - imposes non-compliance costs
    - stakeholder pressures - increase the value of community relations
  2. Competitive advantage
    - increase sales, lower costs, lower risk-adjusted rate of return etc
  3. Societal and moral obligations
    - concern for society and the environment
67
Q

barriers for corporations to act

A
  • lack of leadership
  • weak governance structures (board and top governance)
  • wrong or non-existent incentives
  • fuzzy linkages between actions and economic effects
  • focus on short-term profit maximization rather than long-term value creation
  • wrong or non-existing performance systems and progress measures
68
Q

how can companies create a stable foundation for a CS strategy?

A
  1. identify stakeholders
  2. identify value drivers of improved sustainability performance
  3. implement sustainable management systems
  4. be accountable
69
Q

how do you identify stakeholders and what parts are important in the process?

A
  • important to determine how takehokder relations are considered in sustainability decision-making and how stakeholder reactions are managed
  • def. can be affected/affect org or influence/be influenced by org activities

Core and fringe stakeholders
- core stakeholders are visible and can impact corporate decisions due to their power, urgency or legitimacy
- fringe stakeholders as disconnected from the company because they are remote, weak or currently disinterested

typical stakeholders: shareholders, customers, suppliers, employees, regulators, NGOs, community

70
Q

how can broad or narrow definition of stakeholder be used to define responsibility

A

broad def:
- affect or get affected by org objectives

Narrow def:
- voluntary or involuntary risk-bearers: bear som form of risk as a result of having invested some form of capital, human or financial, something of value in a firm. Involentary stakeholders are placed at risk as a result of a firms activities
- without risk no stake

71
Q

how can stakeholders be defined using the 3 attributes

A

the three attributes: power, legitimacy & urgency

latent stakeholders: only one category
expectant stakeholders: several categories

depending on the combination gives different types of stakeholders

72
Q

what are the four stages that stakeholder relationships go through?

A
  1. Awareness: at this stage, stakeholders know that the company exists
  2. Knowledge: during this stage, provide info to stakeholders to make decisions. Customers
    want to know how the organization’s products meet their needs, employees need to understand organization’s structure and systems.
  3. Admiration: one stakeholders have gained knowledge about the company, trust needs to be developed. This is the stage where stakeholders will develop commitment toward the company
  4. Action: The company is now taking action to collaborate further with stakeholders. Customers refer business, investors recommend the stock, and employees are willing to take on greater responablity
73
Q

How do you identify drivers of improved sustainability performance?

A

Classify the relevance of different sustainability issues:
1. General social issues (no immediate consequences for operations)
2. Social (environmental) dimensions of competitive context (necessary conditions for long term operations)
3. Value chain social impacts (environmental impact through operations)

Use this classification as a help formulating a sustainability definition and subsequent sustainability strategy that integrates company values, commitment and goals

74
Q

The concept of value of a (natural) resource

A

The concept of value is based on the preferences that people have for the services and products they use

Use value:
- consumptive value (extractive or generative)
- non-consumptive value (engagement without consumption)

Nouse value (passive (non-human) use values):
– option value (uncertain or irreversibility)
» bequest value (joy of giving to future generations, but
also “willingness to pay” for this)
– existence value (conservation or intrinsic value)
– bequest value (satisfaction of preserving)

  • Total value = use value + non use value
75
Q

what are the 4 categories that are used in the millennium ecosystem assessment of ecosystem services and give examples from each category

A
  • regulating: air quality, climate, natural hazards
  • cultural: ethical values, ecotourism, recreation
  • supporting: nutrient cycling, water cycling
  • provisioning: food, fiber, biomass
76
Q

what defines a public good and a common pool resource?

A

public good:
- non-excludable and non-rival created through collective choice and are paid for collectively

common pool reasource
- non excludable and rival

77
Q

what are the 3 ways to calculate the value of ecosystem services?

A
  1. market prices - revealed willingness to pay
  2. circumstantial evidence - cost based methods - assumed willingness to pay
  3. surveys - expressed willingness to pay
78
Q

what are the defining value drivers of sustainability performance within the context of corporate responsibility?

A

Ethics: The company establishes, promotes, monitors, and maintains ethical standards

Governance: Making boards and managers focus on the interests of all company
stakeholders.

Transparency: The company provides timely disclosure of information permitting stakeholders to make informed decisions.

Business relationships: The company engages in fair-trading

Financial returns: The company compensates providers of capital with a competitive
return

Community involvement and economic development: The company fosters a mutually beneficial relationship

Value of products and services: The company respects the needs, desires, and rights of its customers and strives to provide the highest levels of product and service values.

Employment practices: The company engages in human-resource management practices that promote personal and professional employee development, diversity, and empowerment.

Protection of the environment: The company strives to protect and restore the
environment and promote sustainable development with products, processes, services and
other activities

79
Q

what are the 4 categories of internal payoffs used to motivate the org. to identify and monitor the external drivers for sustainability

A

Financial payoffs:
* Reduced operating costs (including
lower litigation costs)
* Increased revenues
* Lower administrative costs
* Lower capital costs
* Stock market premiums

Operational payoffs:
* Process innovation
* Productivity gains
* Reduced cycle times
* Improved resource yields
* Waste minimization

Organizational payoffs:
* Employee satisfaction
* Improved stakeholder relationships
* Reduced regulatory intervention
* Reduced risk
* Increased learning

Customer-related payoffs
* Increased customer satisfaction
* Product innovation
* Market share increases
* Improved reputation
* New market opportunities

80
Q

what are the four approaches to becoming an accountable org.

A
  • improve corporate governance
  • improve measures of operational and social performance
  • improve reporting
  • improve management systems
81
Q

what is the corporate sustainability model

A
  • a logical and structured approach consisting of three sequentially ordered
  1. Drivers for corporate sustainability
  2. The actions that managers can take
  3. The consequences of those actions

drivers => actions => consequences

82
Q

what is the IOOI method

A

Input: What resources have been invested to achieve the planned CSR activities?
Output: What kinds of activities and measures have been carried out and which co-operations have been formed?
Outcome: What immediate effects have been achieved for society and the company
Impact: What are the long-term effects for society and the company created by the CSR activity?

83
Q

what are two sustainability control systems?

A

management accounting
- Use of accounting information for operational, tactic and strategic decision making. The internal accounting system that supports managers in carrying out management tasks management control

Management control
- Systematic comparison of performance in relation to
predetermined standards, plans or objectives. Devices, systems, and processes in place to implement a company’s strateg

84
Q

Environmental effects of capital investment

A
  • Capital investment decisions influence innovation, productivity, costs, revenues, capacity availability, and quality.

– Few companies integrate social and political risks in capital investment decisions.

– When quantification of these risks is undertaken, it is often underestimated and not monetized.

– Two principal factors contribute to this situation:
1. The regulatory nature of sustainability
investment projects
2. The difficulty of evaluating social and
environmental costs and benefits

85
Q
A

FEK3S0 Corporate Sustainability (12 decks)

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