Toolbox 2: Corporate Sustainability (CS)
Implementation
• Step 1: Understanding the SDGs (Business & sustainability)
o The business case for sustainability (Whelan & Fink, 2016)
o Tools: SDG compass (GRI et al., 2015)
• Step 2: Defining priorities (Business in context)
o NGOs’ pressures on companies (van Huijstee & Glasbergen, 2010)
o Stakeholder identification and salience (Mitchell et al., 1997)
o Tools: value chain mapping; stakeholder analysis
• Step 3: Setting goals (Strategy making for sustainability)
o Linking the business case(s) for sustainability to BMs (Schaltegger et al., 2012)
o Tools: SWOT, PESTEL, portfolio analysis, Business mission & vision, Sustainability Balanced
Scorecard (Figge et al., 2002)
• Step 4: Integrating I (Strategic marketing for sustainability)
o Sustainability marketing (Gordon et al., 2011)
o Marketing & greenwashing (Plec & Pettenger, 2012)
o Tools: Marketing plan
• Step 4: Integrating II (Sustainable operations)
o Tools: Sustainable supply chain management (Pagell & Wu, 2009)
o Tools: Management systems standards and certifications (Testa et al., 2018)
• Step 5: Reporting and communicating
o Tools: Guidelines & standards for sustainability reporting (Tschopp & Nastanski, 2014;
Thijssens et al., 2016)
o Tools: Pitching your sustainable business ideas
,Step 1: Understanding the SDGs
Companies are assisted in familiarizing themselves with the SDGs
Learning Objectives
Step 1 and 2:
• To recap what SDGs are about
• To encourage critical reflection about the relevance of SDGs for business and the role of
business in sustainability
• To explore the concept of stakeholders within the framework of sustainability
• To engage in an interactive company presentation and learn about business reality
• To explore your own position in the sustainability debate
Literature
SDG Compass – Intro and Step 1
Executive Summary
The SDGs present an opportunity for business-led solution and technologies to be developed and
implemented to address the world’s biggest sustainable development challenges. The SDGs help to
connect business strategies with these priorities. The benefits of using the SDGs as an overarching
framework allow businesses to capitalize on a range of benefits (the business case):
1. Identifying future business opportunities
2. Enhancing the value of corporate sustainability
3. Strengthening stakeholder relations and keeping pace with policy developments
4. Stabilizing societies and markets (the business environment)
5. Using a common language and share purpose.
Step 1
Companies are assisted in familiarizing themselves with the SDGs
,Understanding the business case of using the SDGs
1. Identifying future business opportunities
a. Innovation -> Efficiency gains,
i. Substitution of traditional products by ICT and other technologies that reduce
waste and emissions.
b. Meeting needs of the BoP
c. The above provide new growth markets
2. SDGs enhances the value of corporate sustainability
a. SDGs strengthen incentives for corporate sustainability, also because efforts of
governments and other parties:
i. Taxes, fines and other pricing mechanisms
ii. Consumer demand
iii. Employee attraction, especially younger generation.
3. Strengthening stakeholder relations and keeping pace with policy developments
a. Improve trust among stakeholders
b. Strengthen license to operate (reputation)
c. Reduce risks
d. Build resilience to costs or requirements imposed by future legislation
4. Stabilizing societies and markets (the business environment)
a. Investing in SDGs support prosperous business environment:
i. Good education leads to skilled workforce
ii. Women empowerment creates a market with lot of purchasing power
iii. By safely operating in the bounds of the planet, sustaining natural resources for
those companies that depend on them.
iv. Good governance institutions reduce costs and risks of doing business (think IP)
5. Using a common language and share purpose.
a. For reporting and communicating with stakeholders about impact and performance.
b. Also helps in creating more effective partnerships with governments, NGOs, or other
companies.
Whelan and Fink (2016) - The Comprehensive Business Case for Sustainability
Authors define sustainable practices as:
1) Those that at a minimum do no harm to people or the planet and at best create value for
stakeholders (general) and,
2) That focus on improving environmental, social and governance performance in the areas in which
the company or brand has a material environmental or social impact (such as in operations, value
chain or customers) (company specific)
Much of the strategic value of sustainability comes from the need to continually talk with and learn from
key stakeholders. A company that has a sustainability agenda (engages in stakeholder engagement) is
better positioned to anticipate and react to economic, social, environmental and regulatory changes as
they arise.
, • Improving risk management
o Social and environmental risks – climate change, poor labor conditions.
o These risk are longer term and affect businesses on many dimensions and outside the
organization’s control.
o Solution: invest in certification who make supply chains resilient – Rainforest Alliance.
• Fostering innovation
Increase o Sustainable products that minimize waste and pollution
competitive o Improving processes through (technological) innovation
advantage • Improving financial performance
o Efficiency gains (e.g. operational like energy, water, but also process and logistics)
o Increased competitive advantage through risk management, innovation
o Attracting investors
• Building customer loyalty
o Increased consumer demand and awareness for issues as, safety, social and
environmental impact and transparency, as such, price premiums can be charged
• Attracting and engaging employees
o Increases employee loyalty, efficiency and productivity, and reduces turn-over rates.
Conclusion: Those companies that proactively make sustainability core to business strategy will drive
innovation and engender enthusiasm and loyalty from employees, customers, suppliers, communities
and investors.
Slides
Resulting from the business case:
• SDGs are increasingly internalized into strategies.
• Company - stakeholder relations strengthen
• Companies align their priorities with SDGs to enhance engagement of customers & employees
• Companies have interest in keeping pace with policy developments
avoid legal & reputational risks
• Positive impact: Stabilizing societies and markets
Investing in the achievement of the SDGs supports business success, incl. rules-based
markets, transparent financial systems, less corruption & well-governed institutions.
What do businesses do?
Transformation -> Add value: transforming lower value to higher value products
