Sustainability Test One Flashcards
What are the 5 sustainability strategies in order
Denial, defense, isolated, embedded, transformative
What are the three main factors that determine a firms’ sustainability strategy
Positioning in the market relative to competitors (what sets the form apart from its competitors)
Core competencies (the things that are very difficult for competitors to imitate/substitute)
Culture and identity that clarifies employee and organizational purpose (accepted beliefs in an organization that are not enforced by policies)
What is the denial strategy
Positioning: sustainability absent, unrelated philanthropy like Tim Horton’s camps, the unrelated philanthropy tries to offset their unsustainable core competencies, they are responsible for system degradation. Other examples are the tobacco industry
What is the defence strategy
Position: related philanthropy, incremental improvements, admit your strategy leads to unsustainable outcomes but defends through philanthropy, fundamental objective is risk management
Competencies: string citizen brand, resource efficiency
Culture/identity: sustainability decoupled from core operations
For example Nike’s pivot from denial to defense and Coca-Cola has begun to acknowledge the link between consuming processed sugar and obesity but focus their ads on Coca-Cola making people happy, the PepsiCo case is an example of defense
What strategy is green-mining an example of
It’s when a mining company knows their end product is not great for the environment, but they focus on using energy-efficient mining tools, this is an example of a defense strategy
What is the isolated strategy
Positioning: a particular product/brand is sustainable, sustainability is one of several strategic pillars, beyond incremental change to radical change
Competencies: innovation/innovative product itself is the competence
Culture/identity: identity conflict, moral licensing justifies externalities
Examples are an oil and gas company having innovative solar power technologies, and Nike’s green shoes
What is the embedded strategy
Responsible business is a primary identifying factor for you, identified as a leader in the sustainability industry, core competencies demonstrate how sustainability can be profitable
Culture/Identity: sustainability identity is very strong
Chipotle is an example, most of their business decisions encompass ESG dimensions, employees are well-trained on product sourcing and impact, TerraCycle is another example, they upcycle plastic waste into products that would otherwise end up in landfills
What is the transformational strategy
Positioning: industry changer, shaping societal behavior, not just embedded in the company but literally changing the industry
Competencies: relationships, meta-organizations, market rebel, supply chain leader
Culture/identity: They exist to resolve a complex issue, change the world, and alter institutional practices
Example is Sekem which is an extremely environmentally friendly farming practice company which has transformed the soil in Egypt and has changed governmental legislation on agricultural practices
