global dialogue on sustainable development - gayle avery's presentation
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In her opening keynote address, at the Global Dialogue on Sustainable Development Conference in Bangkok, Thailand, ISL’s CEO, Professor Gayle Avery, made the business case for more action on developing sustainable futures for business, people and the planet.TRANSCRIPT
DEVELOPING SUSTAINABLE FUTURES FOR BUSINESS, PEOPLE AND THE PLANET Professor Gayle C Avery
CEO, Ins?tute for Sustainable Leadership & Professor, Macquarie University, Australia
www.ins&tuteforsustainableleadership.com
Where are we going?
1. Sustainable futures – under threat
2. Many different stakeholders can help 3. Business can use its power and wealth 4. Self-‐interest should drive business towards SD
5. Examine our value systems 6. Be a honeybee not a locust! 7. We can all contribute more, in different ways
John F. Kennedy, 1963
For in the final analysis, our most basic common link, is that
…we all inhabit this small planet,
…we all breathe the same air,
…we all cherish our children's futures, and
…we are all mortal.
15 global challenges facing us
UN Millennium Project – Global Challenges, 2012
Global ethics
Using science
Energy
Clean water
Climate change
Rich-‐poor gap
Short-‐term thinking
Growing popula&on
Conflict
Health
What gets measured gets done!
World Millennium Report 2013: " World extreme poverty has halved since 1990 " Access to clean water has improved
" Health care is improving eg TB and malaria deaths down " No. of malnourished people sank
Jeffrey Sachs, NTY, 24 September 2013: " Economic growth & a market economy vital to solving
these problems
" Government necessary eg in providing educa&on, disease control, and science
" Public and private collabora&on for SD
Who is responsible?
Stakeholder groups – who ‘caused’ & who should fix these problems?
The people
Media Bystanders
NGOs Universities Investors
Bureaucrats Scientists
Politicians
UN IMF/WBank Lobbyists
Business Business Voters
Media Bystanders
NGOs Universities Investors
Bureaucrats Scientists
Politicians
UN IMF/WBank Lobbyists
Why involve business?
a) Corpora&ons already form powerful lobby groups & make poli&cal dona&ons to influence governments Use this power & money to shape policy for a beNer
world b) It’s the right thing to do – moral argument c) It’s in their self-‐interest!
Business becomes more profitable and resilient by considering people and the planet.
Business recognises self-‐interest
e.g. Sir Richard Branson, UK entrepreneur, founder of Virgin Group of 400 companies:
“We believe business can and must be a force for good in the world – and that this is also good for business!”
Other encouraging developments
" Government ac?ons: eg UK government & CR
" Rankings/indices eg ethical behaviour, OHS, environmental & social responsibility,
eg DJSI (SCG) " B-‐Corpora?on new US legal form – allows business
to solve social & environmental problems
" UN Global Compact: 10 principles for business eg human rights, environment, corrup&on
WE CAN CLIMB MT SUSTAINABILITY
Each of us can start climbing Mount Sustainability – in our own sphere of influence
Interface is climbing Mt Sustainability
" 1973: founded by Ray Anderson in Atlanta
" 1994: sustainability journey started " Their peak: Mission Zero (= zero footprint)
http://www.ted.com/talks/ray_anderson_on_the_business_logic_of_sustainability.html
Tomorrow’s child
A VISION FOR BUSINESS
to harness the power of business …. to benefit the planet and its inhabitants ….
while benefiUng business itself.
FIRST, EXAMINE OUR VALUES
Which value systems can drive business towards sustainable futures for tomorrow? 1. Sufficiency Economy Philosophy
2. Moral Capitalism 3. Sustainable Leadership
These are all based on moderate forms of capitalism eg Rhineland capitalism
1. Sufficiency Economy Philosophy (SEP)
" HM King Bhumibol introduced SEP decades ago
" SEP balances capitalism’s push for growth with modera&on and ethical behaviour
" Components of SEP: " Modera&on " Reasonableness – evaluate choices & consequences
" Incorporate resilience (against internal & external risks)
Plus " Wisdom " Integrity
2. Moral capitalism
Since 1986, the Caux Round Table has:
" argued for a moral form of capitalism " developed a worldwide vision for ethical and
responsible corporate behavior &
" published Principles to guide business leaders
3. Sustainable Leadership
Sustainable leadership incorporates ….
those behaviours, prac&ces and systems that create enduring value for all stakeholders.
See: hjp://www.ins&tuteforsustainableleadership.com/
Honeybee & Locust philosophies
Honeybees " work as part of a community " collaborate to create value
" add value to the world Photo: Stephen Buchman
Photo: Industry & Investment NSW
Photo: Olga Mirkina
Locusts
" are generally isolates
" form swarms
" destroy value in the world
Honeybee enterprises
" see themselves as part of a wider community
" believe their success depends on the support of others in the community
" take care of the present for future genera&ons " prefer a long-‐term perspec&ve " stakeholders majer " ethical….
" money is not central
Locust organisa?ons
" it’s all about money
" ‘business of business is business’ (Charles Handy) " isolated from the wider community " short-‐term thinking
" investors not other stakeholders
Honeybee thinking majers for
" Na&ons
" Industries " Organiza&ons " Departments/teams
Example at the na&onal level eg
Current Account Balance Country CAB/cap. (US$)
CAB Rank (o/o 193)
Singapore 9,421 7 Switzerland 8,317 8 Netherlands 4,594 12 Sweden 4,119 13 Denmark 3,347 14 Germany 2,564 15 Ireland 733 30 Thailand -40 70 European U. -68 81 UK -910 168 US -1,539 175
New Zealand -1,558 177
Canada -1,733 181 Australia -2,116 185
“Export earnings per capita and human development are highly
correlated” Human Development Report 2013. UN Development Programme, p.52
CAB see https://www.cia.gov/library/publications/the-world-factbook/.html
SUSTAINABLE LEADERSHIP PRACTICES
23 criteria form a self-‐reinforcing system
Theory, research & prac&ce align
theory & research (gurus & academics)
prac&ce (companies)
Gurus support Honeybee Leadership
Warren Bennis
Stephen Covey
Peter Drucker
Gary Hamel
Charles Handy
Tom Peters
Margaret Wheatley
Joseph S&glitz, former chief economist, World Bank, Nobel
Prize for economics in 2001
Will Hujon, leading UK poli&cal economist
Michel Albert, President Assurances Générales de
France, economic advisor to French gov’t
Warren Buffej
Deriva&ves are “weapons of mass destruc&on”
Honeybee leadership more sustainable
" Research shows that honeybee principles lead to bejer performance eg " brand & reputa&on
" customer sa&sfac&on " staff sa&sfac&on
" financial performance on many criteria " stock performance is bejer and less vola&le
" Honeybee leadership creates resilience
Business case for honeybee prac?ces
Sustainable Leadership: Honeybee and Locust Approaches. 2011. By Gayle Avery & Harald Bergsteiner.
" The business case for a wide range of sustainable or ‘honeybee’ prac&ces
Read about many cases in “Sustainability Pays: Studies that prove the business case for sustainability”
hjp://www.natcapsolu&ons.org/businesscasereports.pdf.
The Business Case forSustainable Leadership
GAY L E C. AV ERYH A R A L D BERGST EINER
LOCUSTS
HONEY BEES&
SUSTAINABLE LEADERSHIP PYRAMID
" Performance outcomes
" Key performance drivers " Higher-‐level prac&ces " Founda&on prac&ces
" Not a one-‐size-‐fits-‐all approach
" Dis&nguishing criteria only
" Research-‐based principles
Source: Avery, G.C. & Bergsteiner, H. 2010. Honeybees & Locusts: The Business Case for Sustainable Leadership. Sydney: Allen & Unwin.
WHY AREN’T WE ALL ‘HONEYBEES’?
If honeybee prac\ces bring such benefits, why be a locust?
CALLS FOR ACTION
Different stakeholder groups can take different ac\ons towards sustainable development
Business Voters
Media Bystanders
NGOs Universities Investors
Bureaucrats Scientists
Politicians
UN IMF/WBank Lobbyists
Ac?ons for business
Follow honeybee principles – not locust leadership – in your own interest
Business Voters
Media Bystanders
NGOs Universities Investors
Bureaucrats Scientists
Politicians
UN IMF/WBank Lobbyists
What can universi?es do?
Embed honeybee thinking into curriculum, research & management
Business Voters
Media Bystanders
NGOs Universities Investors
Bureaucrats Scientists
Politicians
UN IMF/WBank Lobbyists
Who else needs to act?
We are all responsible for sustainable development – do so in our own ways
Business Voters
Media Bystanders
NGOs Universities Investors
Bureaucrats Scientists
Politicians
UN IMF/WBank Lobbyists