Transcript No Slide Title

Business and
Sustainability:
Catalyst or Irritant?
Mark Milstein
Director, Center for Sustainable Global Enterprise
© 2008, Milstein
Will you work in the private sector?
A. Definitely
B. Probably
C. Maybe
D. Never
© 2008, Milstein
How do you view business vs. sustainability?
A. The root of the problem
B. The source of the solution
© 2008, Milstein
Are big companies inherently bad?
A. Definitely
B. Well, maybe not inherently
C. No
© 2008, Milstein
Will you work in the private sector?
A. Definitely
B. Probably
C. Maybe
D. Never
© 2008, Milstein
Business & Sustainability
Voluntary
Law Regulations
Sustainable Development
ISO 14001
Environmental
Management
Design
for EnvironmentPolicy
Environmental
Life Cycle
Pollution
Prevention
Environmental,
Health & Safety
Environmental Reporting
Risk
Management
Operations
Entrepreneurship
Research & Development
Sustainable
Enterprise
Strategic Management
Organizational Change
New
Business
Development
Finance
& Investment
Social Audits
Corporate
Social
Responsibility
Public
SA 8000 Relations
Worker Safety
Human
PhilanthropyResources
Community Relations
Corporate
CSR Reporting Foundations
© 2008, Milstein
Innovation
Sustainability: A Tower of Babel
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
© 2008, Milstein
Environmental Management
Corporate Social Responsibility
Greening
Industrial Ecology
Stakeholder Management
Life-Cycle Management
Pollution Prevention (P2)
Sustainable Development
Design for Environment (DfE)
Green Design
Urban Reinvestment
Brownfield Redevelopment
ISO 14001
Waste Reduction
Closed Loops
Resource Productivity
Sustainable Technology
Systems Thinking
Corporate Governance
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Clean Technology
Eco-Efficiency
Eco-Effectiveness
Biomimicry
Triple Bottom Line
Inclusive Capitalism
Base of the Pyramid
Community Capitalism
Corporate Citizenship
Voluntary Regulation
Civic Entrepreneurship
Full Cost Accounting
EMS
Risk Management
Leapfrog Technology
Cradle to Cradle
Restorative Technology
Take-Back
Transparency
Understanding Value Creation
Tomorrow
Set Shared
Vision of
the Future
Innovate
and
Reposition
Org.
Value
Internal
External
Establish
Reputation
and the Right
to Operate
Reduce
Costs & Risk
Today
© 2008, Milstein
Source: Hart & Milstein (2003), “Creating Sustainable Value”
Framing Sustainability
•Clean Technology
•Eco-Effectiveness
•Biomimicry
•Leapfrog Technology
•Sustainable Technology
•Knowledge & Service Intensity
•Cradle to Cradle
•Closed Loops
•Restorative Technology
•Systems Thinking
Tomorrow
Org.
Value
Internal
•EMS
•Greening
•Pollution Prevention (P2)
•Eco-Efficiency
•Risk Management
•Environmental Management
•ISO 14001
•Waste Reduction
•Resource Productivity
Set Shared
Vision of
the Future
Innovate
and
Reposition
Today
© 2008, Milstein
External
Establish
Reputation
and the Right
to Operate
Reduce
Costs & Risk
•Sustainable Development
•Base of the Pyramid
•Urban Reinvestment
•Brownfield Redevelopment
•Inclusive Capitalism
•Community Capitalism
•Civic Entrepreneurship
•Radical Transactiveness
•B24B (Business to 4 Billion)
•Corporate Social Responsibility
•Industrial Ecology
•Stakeholder Management
•Life-Cycle Management
•Design for Environment (DfE)
•Green Design
•Corporate Citizenship
•Full Cost Accounting
•Take-back
•Transparency
•Corporate Governance
Source: Hart & Milstein (2003), “Creating Sustainable Value”
Managerial Challenge: A Balanced Portfolio
•Clean Technology
•Eco-Effectiveness
Exploration
•Biomimicry
•Leapfrog
Technology
Disruptive
Innovation
•Sustainable Technology
Self Destruction
•Knowledge & Service Intensity
•Cradle to Cradle
•Closed Loops
•Restorative Technology
•Systems Thinking
Tomorrow
Set Shared
Vision of
the Future
Innovate
and
Reposition
Org.
Value
Internal
Reduce
Today
© 2008, Milstein
External
Establish
Reputation
and the Right
to Operate
•EMS
Costs & Risk
•Greening
•Pollution Prevention (P2)
•Eco-Efficiency
•Risk Management
•Environmental Management
Exploitation
•ISO 14001
Incremental
•Waste
Reduction Change
•Resource
Productivity
Continuous
Improvement
•Sustainable Development
•Base
of the Pyramid
Divergent
Thinking
•Urban Reinvestment
Diverse Perspectives
•Brownfield Redevelopment
Stakeholder
Leadership
•Inclusive Capitalism
•Community Capitalism
•Civic Entrepreneurship
•Radical Transactiveness
•B24B (Business to 4 Billion)
•Corporate Social Responsibility
•Industrial Ecology
•Stakeholder Management
•Life-Cycle Management
•Design for Environment (DfE)
•Green Design
Convergent
Thinking
•Corporate Citizenship
•FullTransparency
Cost Accounting
•Take-back Management
Stakeholder
•Transparency
•Corporate Governance
Source: Hart & Milstein (2003), “Creating Sustainable Value”
Establish an Innovation Cycle
Change Product-Market Portfolio
Seek Variety
• Commercialize Imaginative Technologies
• Work with Unconventional Partners
• Grow New Markets
• Cross Organizational and
Technical Boundaries
• Shed Obsolete Businesses
Incubate Disruptive
Innovations
• Invest in Small Scale Experiments
• Test Hybrid Ownership Structures
• Analyze Distributed Control Mechanisms
• Scrutinize Novel Perspectives
Cultivate New Skills
• Conduct Non-Linear Pilot Programs
• Nurture Local Economic Capacity
• Facilitate Generation of New
Knowledge
© 2008, Milstein
Source: Milstein, London, & Hart (2007), “Revolutionary Routines”
Base of the Pyramid Protocol
Project
An inclusive process through which the
private sector and local communities
build economic, social, and environmental value
© 2008, Milstein
Some Suggested Readings
•
Hart, S. L. and Milstein, M. B. 2003 “Creating Sustainable Value,” Academy of
Management Executive, 17(2): 56-67.
•
Hart, S. L. and Milstein, M. B. 1999. “Global Sustainability and the Creative
Destruction of Industries,” Sloan Management Review, 41(1): 23-33.
•
Lovins, A. B., Lovins, L. H. and Hawken, P. 1999. “A Road Map for Natural
Capitalism,” Harvard Business Review, 77(3): 145-158.
•
Milstein, M. B., T. London, and S. L. Hart. 2007. “Revolutionary Routines: Capturing
the Opportunity for Creating a More Inclusive Capitalism,” In S. Pederit, R. Fry, and
D. Cooperrider (eds.) Handbook of Transformative Cooperation: New Designs
and Dynamics; Palo Alto, CA: Stanford University Press, forthcoming.
•
Hart, S. 2007. Capitalism at the Crossroads: The Unlimited Business
Opportunities in Solving the World’s Most Difficult Problems, 2nd Ed. Upper
Saddle River, NJ: Wharton School Publishing.
© 2008, Milstein