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College aantekeningen Global Sustainable Leadership

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Lecture notes of 40 pages for the course Global Sustainable Leadership at UVT (Lectuer notes GSL)

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  • 4 mei 2024
  • 40
  • 2021/2022
  • College aantekeningen
  • Odette bruls
  • Alle colleges
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GLOBAL SUSTAINABLE LEADERSHIP
LECTURE 1 – INTRODUCTION TO GSL– 31/01/2022

17 SUSTAINABLE DEVELOPMENT GOALS




1. No poverty
2. Zero hunger
3. Good health and well-being
4. Quality education
5. Gender equality
6. Clean water and sanitation
7. Affordable and clean energy
8. Decent work and economic growth
9. Industry, innovation and infrastructure
10. Reduced inequality
11. Sustainable cities and communities
12. Responsible consumption and production
13. Climate action
14. Life below water
15. Life on land
16. Peace, justice, and strong institutions
17. Partnerships for the goals

,Relation of this module to SDG’s

 In this module we will introduce the SDG framework in the context of Global Challenges and have a guest
lecture by a social entrepreneur who aims to contribute to the realization of the SDF’s with her social
enterprise

There will be 10 billion people living on our planet by 2050, resulting in global challenges

- There’s more carbon dioxide in our atmosphere then any time in human history
- Average wildlife populations have dropped by 60% in just over 40 years
- 120,000 square kilometers of tropical forest were lost in 2018
- Two-thirds of extreme weather events in the last 20 years were influenced by humans
- The pressure on healthcare in set to grow in the coming decade: an estimated 2.3 billion people will
be in need of care by 2030 – an increase of 200 million since 2015
- Roughly 1 million species face extinction, many within decades
- The world’s 2,153 billionaires have more wealth than the 4.6 billion people who make up 60% of the
planet population
- Carbon emissions from energy use are rising at the fastest rate since 2011
- We will need the resources of 3 planets by 2050

The COVID crises made things worse

- The world’s then richest men more than doubled their fortunes from 700 billion to 1,5 trillion dollars
- The pandemic has set gender parity back from 99 years to now 135 years
- Inequality between countries is expected to rise for the first time in a generation

The purpose of the corporation has been debated throughout history

- Last big shift driven by Friedman in 70’s
- Legal foundation for shareholder capitalism established in Dodge v Ford (1919)
- Lost some sparkle during the Great Depression
- Reinforces by Milton Friedman Chicago School of Economics in the 70’s
- It has been challenged ever since
- The shift towards shareholder capitalism began in the 1970s and has been critiqued since inception
- This can be seen in growing shareholder payout and falling wages

,CORPORATE SOCIAL RESPONSIBILITY (CSR)

- The voluntary integration of social and environmental concerns in their companies’ operations and in
their interactions with stakeholders
- A commitment to improve well-being through discretionary business practices and contributions of
corporate resources
- Actions undertaken to display conformity to both organizational and stakeholder norms
- Also known as socially responsible business, responsible business conduct, responsible
entrepreneurship, corporate citizenship, corporate accountability, corporate ethics, or corporate
sustainability

Redefining the ‘’purpose’’ of corporations

- There is more and more debate around the need to redefine the purpose of the corporation
- The Business Roundtable (2019) issued a statement on ‘’the purpose of corporations’’
o From focus on shareholders  to an inclusive approach to customers, employees, suppliers,
communities, and shareholders
- The redefined purpose represents a significant shift from the BRT’s previous statements, first
authored in 1997, that the purpose of the company is solely to maximize shareholder return
- New business concepts are required to create and lead purposeful businesses

We are at an inflection point towards ‘purpose’ driven companies contributing more broadly to society as a
whole

- Resource constraints  need to reduce strain on our planet
- Demand for Social Justice
- Investor recognition
- Shift in employee contact

But all based upon a new strategy concept for business: ‘’Creating Shared Value’’

- Shared Value strategies simultaneously create value for the business and for society
- Meeting Societal needs that expand opportunities (addressable defined market) for the business
- Scalable societal impact because shared value is self-sustaining

Creating shared value; moving beyond philanthropy and corporate social responsibility

, The ‘’Value Spectrum’’ and its key actors




A shift is underway towards stakeholder capitalism




Stakeholders vs. shareholders… embracing purpose and driving shared value actually drives shareholders value
creation…

Key take a ways

- We are at the end of the industrial era as we know it. Society is confronted with many big challenges
that are complex, interdependent and cannot be solved by single organization and not by continuing
to apply ‘’old’’ models and paradigms
- The COVID crisis makes underlying vulnerabilities and weaknesses in society visible and has the
potential to act as a catalyst to accelerate the transition to a new era
- The pendulum in business is swinging back focus on shareholders to a more inclusive stakeholder
approach: forcing businesses to rethink and redefine their purpose in support of the Global Goals
(SDG’s)
- This forces businesses to become specific to value that is created beyond economic value
- Addressing societal challenges can create substantial shared value creation opportunities for
corporations and could therewith – arguably – by the key energy source behind the much-needed
changes and transformations

LECTURE 2 – NET POSITIVE COMPANIES AND SOCIAL ENTREPRENEURSHIP –
04/02/2022

NET POSITIVE COMPANIES

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