The sustainable enterprise and its governance
Sustainable enterprise and stakeholder theories
Therefore, the central value of the sustainable firm is not economic growth, but rather sustainable development. They managed to respond in time to the conditions of the society around them.
Sustainable development and strategy theories
Work on the resource-based view of the firm has attempted to distinguish between tangible resources and knowledge-based intangible resources (Barney, 1991; Kogut and Zander, 1992; Nonaka and Takeuchi, 1995). The knowledge-based view of the firm is a concept originally developed by Polanyi (1966).
Code of governance for sustainable business: sustainable
DYNAMIC AND SUSTAINABLE VIEW OF THE FIRM FIGURE 1.2: Dynamic view of the firm and sustainability. From the dynamic view of the firm to the dynamic and sustainable view of the firm.
Summary
In other words, the main role of the board of directors is to ensure the long-term sustainability of the company. As we will see later, the structure of the board of directors is a key factor in ensuring the integration of sustainable development into the company's strategy.
Corporate governance
Values
The value of long-term vision is less, because only 28% of companies consider it a core value. The environment - which can be considered a specific dimension of the broader value of sustainability - and innovation. Interestingly, we can see that 56% of DJSI leading companies consider innovation as a core value.
Composition of the board
Our results show that 72% of boards are sufficiently familiar with and aware of the questions surrounding sustainable development. The Dofasco company is a founding sponsor of the Sustainable Enterprise Academy (SEA) at the Schulich School of Business at the University of York.
Structure of the board
In this case, some committees take on new responsibilities related to sustainable development. The two companies appointed one board director with specific responsibilities for reviewing and monitoring environmental, social and ethical policies.
Process of the board
The primary purpose of the Board's Social Responsibility Committee is to foster Westpac's commitment to operating its business in a manner consistent with the rapidly changing demands of society. According to Westpac's senior advisor on Corporate Responsibility and Sustainability, typical items on the agenda of the Social Responsibility Board may include: sustainable supply chain management;.
Role of the board
- Responsibilities of the board of directors
- Embedding of sustainable development within strategy 59
- Internalizing values
- Monitoring the level of awareness of values
- Promoting values externally
- Checking the degree of suppliers’ compliance
- Encouraging stakeholder dialogue
In addition, most companies have taken disciplinary action to address code of conduct violations. Fourteen companies have implemented disciplinary measures for violations of the standards of the code of conduct.
Summary
In particular, they differ from ordinary companies in the importance they attach to the external promotion of values, as well as in their efforts to track the extent to which the behavior of their employees and their suppliers is consistent with these values. As a result, companies focusing on sustainability or CSR issues have introduced changes in the structure and composition of their boards by creating ad hoc committees and nominating directors familiar with sustainability. One of the strategic concerns explored in the context of sustainable development has been the link between sustainable organizations and competitiveness (Shrisvastava, 1995; Hart.
Specifically, we study the structure that supports the integration of sustainability in the strategy formulation process.
Strategy formulation
Next, we list all the different bodies that we have seen play an important role in the integration of sustainable development in the strategy19. However, they can also play an important role in the formulation process when the heads of the business units are members of the Sustainability Council. Under the guidance of their respective Sustainability Management Officers, the project teams of the business groups and the Corporate Center are responsible for implementation.
The unit known as Group Sustainability Management at the Corporate Center is responsible for managing the group-wide process and leading the division's initiatives.
Implementation: using BSC and other systems to make strategy
- The sustainable balanced scorecard as a system
- Other systems of deployment, assessment and revision
- Royal Dutch/Shell Group (Shell)
- Lend Lease
As we can see in Chart 3.1, the BSC is used as a strategic planning and management tool for DJSI sector leaders in 89% of the cases. As we have said, and as can be seen in graph 3.2, the adaptation of the BSC to sustainable development dimensions is still in an embryonic stage. Each level of the organization sets its objectives using the Core Objectives defined by the Board as a reference.
Objectives are classified as strategic, tactical and operational depending on the level of the organization that established them.
Summary
Ultimately, these strategic assets and capabilities are positively related to the value creation process and long-term success of the firm. In fact, Senge and Carstedt (2001) make it clear that the business logic of the sustainable enterprise implies a shift from "value is in things". Which of the following aspects are formally involved in new product development and design?
Does your company publicly endorse (after signing or publicly recognizing) one or more of the following charters/frameworks?
Dialogue as a core capability for the sustainable
Stakeholders: who are they?
Depending on the nature of these relationships, and without interpreting the following as an assessment of the importance of each stakeholder, we can classify them into three main groups or levels: consubstantial, contractual and contextual. An important question to ask is, "To what extent are these stakeholders actually influencing the firm's decisions?" In chart 4.1 we can see which groups DJSI sector leaders and ordinary companies consider most important. However, half of DJSI sector leaders are already regularly involving these groups in stakeholder dialogue activities.
In short, we noticed that shareholders are no longer the only stakeholder of the sustainable enterprise.
Stakeholder dialogue mechanisms
- Identifying and prioritizing key stakeholders
- Stakeholder mapping
- Feedback from stakeholders to the board
- Regular meetings and briefings in form
- Stakeholder panels
- Other activities to promote regular
- Partnerships and alliances
One of the more common mechanisms used to provide stakeholder feedback to the board is the establishment of strategic stakeholder panels or advisory boards. One of the more widespread mechanisms for engaging stakeholders is the establishment of stakeholder panels. Due to the relative importance of stakeholder panels, we will now review them in more detail.
The main purpose of these panels is thus to talk to local communities and inform them about the company's operations and risks.
Stakeholder dialogue as a driver for innovation
Because of the relevance of this topic to the long-term success of businesses, we conclude this chapter with a more detailed discussion of related issues. The scope of the project considers inputs such as energy and raw materials, steel processing technology and carbon sequestration. Dofasco has been one of the world leaders in introducing many of the new steel products into the automotive market segment.
BT, which says it is conducting relevant research into the climate change impact of the rollout of broadband networks in Britain, following a request from a stakeholder panel.
Managing stakeholder relationships: the case of Westpac
According to Tim Williams, Senior Advisor for Corporate Responsibility and Sustainability: “The common feature is that stakeholder dialogue is a cross-border activity. The CSR Committee has the same status and procedures as other Westpac committees (audit &. The committee is chaired by a non-executive director and consists of three other non-executive directors and Westpac's managing director.
Westpac's approach is to positively influence supplier behaviour, and the forum will allow for supplier training and other capacity building, such as sharing best practice and problem solving.
Summary
Finally, eco-innovation and life cycle analysis contribute to improving the eco-efficiency of products and processes. One of the critical aspects of supply chain management is the process of selecting and evaluating suppliers. Indicate the percentage of the main nationality represented on your Board of Directors, compared to all other nationalities represented on the Board of Directors.
Please indicate which of the following aspects are covered by your anti-corruption and bribery policy.
Systems and procedures of the sustainable
Human resources systems
- Rewarding systems
- Training programs
- Communication mechanisms
In the context of a sustainable company, the main purpose of human resource systems is to achieve a strong commitment and cooperation of all members of the company to move towards sustainability. One of the key levers of change that HR systems have is the organization's reward system. All companies are aware that human capital is one of the company's most valuable assets.
As we have seen in this section, human resource systems are a key element in the implementation process of a company's sustainability strategy.
Environmental, health and safety management policies
- Corporate environmental policy
- Environmental management systems
- Unilever’s approach to environmental management
Our analysis of the different areas covered by environmental policy has led to the following results (see graph 5.4). Environmental management systems (EMS) are one of the tools that an organization can use to implement environmental policies. In fact, 44% of sector leaders have certified businesses that generate more than 90% of their income (see graph 5.7).
For these companies, certified systems cover more than 50% of sales in only 32% of cases.
Research and Development processes
- Tools and methodologies for sustainable design
- Life-cycle analysis
- Sustainability guidelines for R & D departments
- Sustainable design implications
- The product (and even companies) can change
- Increased involvement of top management
- Increased involvement with stakeholders
- Incremental changes to the existing product
These programs try to encourage designers to consider problems and opportunities early in the innovation process. An example is the relationship between Ford and Dupont in the UK (Arnold and Day, 1998). In the early 90s – in response to increasing global competition, an oversupply of steel and falling prices – Dofasco created Solutions in Steel.
As we noted in the previous point, the implications of sustainability strategies are highly relevant to new product development processes.
Supply chain management
- Selection and evaluation of suppliers
- Alternative ways of promoting sustainable
They include supplier responsibilities (set jointly with each supplier), workforce rights, regular assessment, environmental responsibility and the commitment to extend the principles throughout the suppliers' supply chain. A summary of the M&S Global Sourcing Principles forms part of the contract between the company and its suppliers. The evaluation of suppliers' social, environmental, health and safety performance is also an important process carried out through various mechanisms, such as risk and quality assessment tools and audits.
Finally, although still quite rare, some companies have also created supplier awards to strengthen suppliers' commitment to sustainable development.
Summary
Please indicate whether the board of your company has issued a formal corporate governance policy. Please indicate the main purposes of your scorecard/measurement systems (such as Balanced Scorecards or similar). Please indicate the percentage of employees who were appointed on the basis of a validated selection test in the last financial year.
Please indicate the group-wide employee benefits that your company offers in addition to public schemes.
Conclusions
Corporate governance
As expected, sustainability has had a profound impact on management systems in leading companies. Almost all of the leading companies consider sustainability a board responsibility, while only half of ordinary companies do. Sustainability, as well as other related values, has become one of the core values of sustainable companies.
Overall, leading companies see sustainability as a strategic topic, and responsibility for development is assumed at board level.
Corporate strategy
Furthermore, the development of such new roles imposes the changes we have just outlined in the composition, structure and processes of boards of directors. All other changes in leading companies were initiated by these fundamental changes in corporate governance.
Core capabilities
Management systems
Please include the name and position of your Chief Risk Officer or the person responsible for this position. Indicate the name, position and reporting line of the person responsible for issue/reputation management (i.e. coordination and communication of issues with a high potential risk to your company's reputation) at group level. Indicate the percentage of your workforce that is being systematically replaced or reassigned due to poor employee performance, relative to the total average number of employees during the past fiscal year.
Please indicate the tools/processes widely used by your company in organizational learning management and knowledge management.
SAM Research’s Corporate Sustainability
DJSWI Market Sector Leaders (2002)
Research questionnaire template
Questionnaires sent to SAM Research
