V. Case study The Sustainability Accounting Standards Board

Question 1

Sustainability Accounting Standards Reason for this case study?

Answer 1

• An innovative solution can also come up in the financial sector
• Role of individuals to drive social change
• Role on contextual factors to drive social change
• Role of different organizational forms to drive social change

Question 2

Social Change

Answer 2

• Systematic transformation over time

- In patterns of thoughts, behavior, social relationships and structure

Question 3

Positive social change

Answer 3

• Leads to positive impact on others than those initiating the change project
• Individuals, Environment, Society, People or organizations
• Involves changes in = 1. Environmental behaviors 2. Welfare system 3. Social inclusion of marginalized categories
• Components = 1. Motivation 2. Opportunity creation 3. Capabilities development

Question 4

What drives social change?- Agitators

Answer 4

• Articulate problems/ Unifies diverse people or organizations around issue/ Highlighting the need for change
• Its central challenge is to articulate issues in ways that create common purpose among those who oppose them
• This requires effective communication and organization of stakeholder in order to launch collective action against the status quo
• Agitation without innovation means complaints without ways forward

Question 5

What drives social change?- Innovators

Answer 5

• Create target to strive towards identified problem by articulating an actionable solution
• Understand cause of failings of the current situation/ Conceptualize possible solutions
• Challenge: Recognize how proposed solution is more innovative, effective and efficient than existing ones (Also in view of the negative impacts it generates)
• Innovation without orchestration means ideas without impact

Question 6

What drives social change?- Orchestrators

Answer 6

• Responsible for coordinating actions across diverse parties/ Responsible scaling the proposed solution more up and,or deep;
• Capable of scaling the impact of a solution both up (reaching more beneficiaries) and deep (addressing the needs more effectively, going deeper to the roots of the problem);
• Role involves planning & leading the strategy for change adoption/ Coordinating both the actors behind the change and those being asked to adopt the change
• Main traps: mission drift

Question 7

What drives social change? -SASB case

Answer 7

• Agitator = Mobilizing multiple stakeholders/ Need for change
• Innovator = Sustainable standards/ industry standards (Global Reporting Initiatives (GRI))
• Orchestrator = Scale deep through proprietary products/ Determine what to report and how to measure (SICS, materiality map, sustainability standards)

Question 8

Is the sector ready to change? -SASB case

Answer 8

• Sector characteristics = 1. Shocks (crises) 2. Pluralism of perspectives 3. Level of Maturity
• Stakeholder Analysis = 1. Attitude towards change 2. Relative power (authority)

Question 9

Strategy and Stakeholders SASB Case

Answer 9

• Strategy -> Mobilization of stakeholders -> Adaption to each stakeholder’s expectations -> Though different communication paths
• Stakeholders = 1. Corporations, 2. Investors, 3. Public Opinion, 4. NGOs, 5. Funders, 6. GRI, 7, FASB, 8. SEC

Question 10

Should SASB transform to a social enterprise?

Answer 10

• Yes = 1. Independency 2. Scale up and deep 3. Opportunities in the market 4. Funds diversification 5. Take away pressure from employees
• No = 1. Loyal to old customers 2. Risk of mission drift 3. Accessibility 4. Confusing communications 5. Reliability on donations

Question 11

Firm types and social commitment

Answer 11

• Traditional CSR -> Nike
• Innovative CSR -> Carlsberg
• Benefit Corporation -> Cotopaxi
• Social Enterprise -> Dr. Jean irgendwas
• Nonprofit using commercial tools -> Homeless world cup
• Pure Nonprofit -> SASB