INSEAD Library

Includes bibliographical references and index

Digitized

Making Sustainability Work Best Practices in Managing and Measuring Corporate Social, Environmental and Economic Impacts Contents List of cases, figures, and tables .............................................................................. 8 Foreword ......................................................................................................... 11 John Elkington, SustainAbility Foreword ......................................................................................................... 13 Herman B. "Dutch Leonard," Harvard Business School Preface ............................................................................................................ 15 Introduction: Improving social and financial performance in global corporations ................................................................................................ 19 Why it's important ................................................................................... Managing corporate sustainability ............................................................... The Corporate Sustainability Model ............................................................. Background to this book ........................................................................... Making sustainability work ........................................................................ And finally 21 23 25 26 29 32 I A new framework for implementing corporate sustainability ........... 33 What is sustainability? .................................................................................................................................. 36 Identify your stakeholders ......................................................................... 41 Be accountable ...................................................................................... 43 Corporate Sustainability Model ................................................................... 45 Summary .............................................................................................. 57 2 Leadership and strategy for corporate sustainability ....................... 58 Board commitment to sustainability ............................................................. 59 CEO commitment to sustainability ............................................................... 60 Leadership and global climate change ......................................................... 62 Developing a corporate sustainability strategy ................................................ 64 Thinking globally ..................................................................................... 67 The role of the corporate mission statement ................................................ 71 Voluntary standards and codes of conduct .................................................. 73 Working with government regulations ......................................................... 79 Social investors and sustainability indices ................................................... 81 Summary .............................................................................................. 84 3 Organizing for Sustainability ................................................................. 85 The challenge for global corporations ......................................................... 85 Involve the whole organization .................................................................. 90 Information flow and a seat at the table ....................................................... 93 Outsourcing .......................................................................................... 95 Philanthropy and collaboration with NGOs ................................................... 97 Summary ............................................................................................ 102 4 Costing, capital investments, and the integration of social risk 103 The capital investment decision process .................................................... 103 Capital budgeting in small and medium enterprises ..................................... 107 Costs in the decision-making process ....................................................... 108 Costing systems ................................................................................... 110 Risk assessment .................................................................................. 113 Summary ............................................................................................ 123 5 Performance evaluation and reward systems ..................................... 125 Performance evaluation systems ............................................................. Incentives and rewards .......................................................................... Strategic performance measurement systems ............................................ Shareholder value analysis ..................................................................... Summary ............................................................................................ 126 132 137 140 142 6 The foundations for measuring social, environmental, and economic impacts ............................................................................................... 143 The concept of value ............................................................................. Methodologies for measuring social and environmental impacts ..................... Methodologies for measuring social and environmental risks ......................... Summary ............................................................................................ 145 148 156 162 7 Implementing a social, environmental, and economic impact measurement system............................................................ 163 Mapping the actions that drive performance ............................................... 164 Sustainability performance metrics ........................................................... 166 Engage with your stakeholders ................................................................ 178 Measuring reputation ........................................................................... 180 Measuring risk .................................................................................... 183 Measuring social and environmental impacts ............................................ 190 Summary .......................................................................................... 196 8 Improving corporate processes, products, and projects for corporate sustainability ..................................................................... 198 Organizational learning: the new battleground? ..................................................................... 199 Improving sustainability performance ...................................................... 203 Reducing social and environmental impact ............................................... 208 Involve the supply chain ....................................................................... 213 Internal reporting ................................................................................ 217 Summary .......................................................................................... 222 9 External sustainability reporting and verification ....................... 223 Global Reporting Initiative ..................................................................... 224 Let everyone know how you're doing ...................................................... 226 External disclosure of sustainability measures .......................................... 232 Verifying sustainability performance and reporting ..................................... 236 Internal sustainability audits .................................................................. 237 External sustainability audits ................................................................. 240 Summary .......................................................................................... 247 10 The benefits of sustainability for corporations and society .......... 249 Make sustainability work ....................................................................... 250 Use the Corporate Sustainability Model to improve performance ................... 255 Create opportunities for innovation ......................................................... 257 A last word ........................................................................................ 260 Endnotes ....................................................................................................... 262 Bibliography ................................................................................................... 270 Index ............................................................................................................. 282