Sustainability in Business

Question 1

List Dunphy’s Levels of Engagement.

Answer 1

• Rejection
• Non-responsiveness
• Compliance
• Eco-efficiency
• Strategic Proactivity
• The Sustaining Corporation

Question 2

What is the Rejection level?

Answer 2

• Resources are there to be exploited for immediate economic gain
• Firms only exist to maximise profit
• Actively oppose attempts to constrain operations
• Expertise lives primarily in the legal department

Question 3

What is the Non-responsiveness level?

Answer 3

• Lack of awareness of impact on environment and visa-versa
• Environmental consequences of activities are disregarded
• No expertise

Question 4

What is the Compliance level?

Answer 4

• Reduce the risk of sanctions for failing to meet standards
• Reactive to legislation and community awareness
• Followers, not leaders
• Expertise lives primarily in the EHS department

Question 5

What is the Eco-efficiency level?

Answer 5

• Recognise that there are some win-win environmental and economic gains in operations
• Active searching for these win-win cases
• Total quality environmental management may be introduced

Question 6

What is the Strategic Proactivity level?

Answer 6

• Sustainability issues are seen as a potential source of competitive advantage
• Active attempt to redesign existing products to reduce impact
• Spearhead low impact products and services
• Expertise in business development, R+D and board level

Question 7

What is The Sustaining Corporation level?

Answer 7

• Working for a sustainable world is a priority
• Actively promotes sustainability values in business and society
• Caveat is there can be differing sub-cultures within a business and they may be performing at different levels within

Question 8

What are the governmental levers on businesses?

Answer 8

• Legislative standards
• Market-based policy and taxation
• Governmental market development

Question 9

What is the WEEE directive?

Answer 9

The Waste Electrical and Electronic Equipment directive.

• Companies are responsible for collection and disposal/re-use of electrical equipment
• Encourages design to think about disassembly and recycling
• Improves conditions for those working in recycling and reduces chance of inappropriate disposal

Question 10

List some examples of market-based policy interventions.

Answer 10

US 1990 Acid Rain Program (SO2)

EU Emissions Trading Scheme (CO2)

Question 11

What are the market impacts of continued unsustainable consumption?

Answer 11

• Direct impact on ecosystem service depletion
• Price signals
• Supply monopolies and resource conflicts
• Customer demand

Question 12

How are institutional shareholders preparing for the move to a low-carbon economy?

Answer 12

Institutional shareholders and analysts are analysing how business will fare when the transition is made and are sorting business in terms of winners and losers.

Question 13

What is sectoral action?

Answer 13

• When a sector-wide agreement is made involving the major industry leaders
• Lowers the risk of first movers disadvantage
• Places collective pressure on suppliers

Question 14

List all of the major business drivers.

Answer 14

• Legislative standards
• Market-based policy and taxation
• Governmental market development
• Ecosystem service depletion
• Price signals
• Supply monopolies and resource conflicts
• Customer demand
• Institutional investors and analysts
• Reputational and direct action
• Staff/Executive engagement