Creating Pathways to CorporateSustainability: A Unified Risk &

Management Systems Approach

John Grosskopf, P.E., BCEEERE, Inc.

John Milliman, PhDUniversity of Colorado at Colorado

Springs

jwgrosskopf@cox.netjmillima@uccs.edu

Outline

• Today’s Business Challenges

• Strategic Corporate Social Responsibility (CSR) - Porter & Kramer

• Unified Risk Management Systems & Partnering - a Pathway to Sustainability

• Implications for Research and Practice

Today’s Business Challenges

Climate Change

Aging facilities

Resource inefficiency

Business continuity

Resource Scarcity

Expansion Needs

Public Concerns

Environmental laws/regulations

Employee retention

NGO demands

Increased Transparency

Sustainable Business Enterprise

Global Competition

* The Link Between Competitive Advantage and CSR, HBR, Dec. 2006

Strategic Corporate Social Responsibility (CSR) - Porter & Kramer*

The authors assert most CSR efforts are:- unproductive and disconnected from business strategy

They suggest a strategic CSR framework that identifies positive/negative business impacts on society, and how to prioritize and address them

Looking “Inside-Out” and Outside-In”

A very useful framework but one that does not address implementation, and…

A handful of business leaders already have frameworks that manage all their risks/impacts as well as opportunities: the Unified Risk Management approach

Unified Risk ManagementImproving Risk Identification & Management

A single, cohesive and unified approach to address all organizational risks -simultaneously

A new and innovative application of provenquality management methods, tools and cross-functional approaches

Q

H&SE

S

Unified Risk MethodologiesExamining Social Risks

Unified risk methods assess ALL issues/threats and opportunities:

- Looking inside-out: assess impacts of the organization on society

- Looking outside-in: assess societal impacts on and linkages with the organization

Unified risk management helps determine the nature, the magnitude, and the priority of all risks and opportunities; both inside and outside the business (shared risks) simultaneously

Partnering for SuccessImproving Inside-Outside Linkages

• Partnering is a practical approach that:- improves linkages between business & society- improves stakeholder trust- helps determine and exploit shared value

• Partnering is an important leveraging tool that counters the effects of downsizing and resource limitations

Together, unified risk management and partnering are practical methods to enhance CSR and are a pathway to sustainability

Creating Mutual Value

Unified Risk Management and Partnering

A Firm’s Unified Risk Management

System

Academia

Communities Regulators

& NGO’s& the Public

Cooperative Exchanges

Collaboration

Public Pressures

Suppliers &

Contractors

Knowledge Sharing

Implications for Practice and Research

• A handful of business leaders and exploratory research provides evidence unified risk management approaches are effective

• Empirical research is needed to:

(1) Map the opportunity aspects of the unified risk approach in a CSR framework

(2) Assess the impact of the unified risk management approach on lowering costs, mapping of organizational opportunities, and improved regulatory compliance