Sustaibable development

08/09/10 INSEEC SUSTAINABLE

DEVELOPMENT

SUSTAINABLE DEVELOPMENT AND

CORPORATE SOCIAL RESPONSIBILITY

Inseec, 2nd year Fall, 2010

Diana Carrillo & Regis Maubrey

DEVELOPMENT

GOAL OF THE COURSE

•  That students open up to working with other disciplines and sectors

•  That they may act as facilitators, intermediaries, brokers in issues involving territories and sustainable development issues

•  That they be able to recognize and use at least one « tool » in future situations where SD/CSR are addressed

Sustainable Development

Overall Program

•  Introduction

•  Historical reminders

•  Principles and Definitions with illustrations

•  Approaches and tools

•  Framework of scales

•  Methodology and cases

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SUSTAINABLE DEVELOPMENT

DEVELOPMENT

ORGANIZATION

●  SESSION 1: Theory and tools and course methodogy. Teams are formed, cases chosen.

●  SESSION 2: More theory, cases, and explanations.

●  SESSION 3: –  15 minute presentations by one reprentative (chosen by

professor) of each team of four. –  Comments from the floor and from the professor

●  SESSION 4: –  15 minute presentations by one reprentative (chosen by

professor) of each team of four. –  Comments from the floor and from the professor

DEVELOPMENT

SCHEDULE FOR SESSION 1

●  Session objective ●  Who are we? ●  First issues and concepts ●  Methodology (and teams to be formed) ●  Tools ●  Proposed student cases ●  (15 min. break) ●  More theory and explanations ●  First professional cases

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Objectives of the session 1

•  To have students understand their tasks and to be ready to present in Session 3

•  To have questions to ask in Session 2

DEVELOPMENT

Presentations by your professors

Regis Maubrey

Diana Carrillo

Sustainable Development

Regis Maubrey Diana Carrillo

08/09/10 INSEEC SUSTAINABLE DEVELOPMENT

1.  The problem

2.  Introduction to sustainable development

3.  Historical approach

4.  Principles of sustainable development

5.  Methodology

6.  Governance of sustainable development

7.  Introduction to Corporate Social Responsibility

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I. Introduction to Sustainable development

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A new page in history

•  Until now (since XIX century): –  Development, progress, productivity, more

“things”, –  More “human rights” .. But not for everybody ( also more inequalities

and new forms of exclusion and poverty)

•  From now on : –  A new problem : survival of the planet

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Can we survive and keep a good quality of life ?

1. The problem

  Poverty increases in poor countries (54 countries poorer than in 1990)

  Difference wealthy / poor increases continually

  Every three seconds, a child dies because of extreme poverty

  42 million people live with AIDS. In Africa less than 5% get antiretroviral treatment

  60% of the world ecosystem services are degraded

  Our ecological footprint represents 120 % of the total possibilities of the globe

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1. The problem

If the earth was a town of 100 PEOPLE …

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DEVELOPMENT

1. The problem

•  50 would suffer from malnutrition

•  40 would live with less than 2$ a day

•  17 wouldn’t have proper shelter, or drinking water, or medical services

•  20 would control 86 % of GDP

•  6 persons would have 59 % of world’s wealth

•  25 would consume three quarts of the available energy

•  15 would produce more than half of the town’s CO2 waste

•  11 would use a car and for sure, there will be 20 in 20 years

•  9 of them would have access to the Internet

•  The town would have 133 citizens in 2025. 08/09/10 13

INSEEC SUSTAINABLE DEVELOPMENT

1. The problem If the earth was a town of 100 citizens …

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20 % poorest vs.

20 % richest

poorest poorest richest richest

1. The problem

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•  An exponential growth of the human population

–  83 million more people every year (A country like Germany)

•  99 % of these new arrivals populate the poorest countries

•  In 2025, 1/2 of humanity will live in towns

Worlds’ population in strong growth

Evolution of

worlds’ population since

4 billion years

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1. The problem

Ecological footprint

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1. The problem

DEVELOPMENT

Ecological footprint

–  It is an indicator

–  It evaluates the theoretical surface of productive soil

•  necessary to satisfy essential needs and •  to absorb the waste of a population.

–  It is calculated in hectares per inhabitant

–  The ecological footprint is used to measure the Natures’ capability of renewing itself

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1. The problem

DEVELOPMENT

Ecological footprint measures :

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1. The problem

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Ecological footprint Every human being theoretically needs 2 hectares of productive soil and 5 hectares salt water

–  France uses today 4 hectares of productive soil per person

–  USA uses today 9 hectares of productive soil par person

–  Bangladesh uses today less than 1 Hectare of productive soil par person

* data WWF 2006 09/08/10 20

INSEEC CORPORATE SOCIAL RESPONSIBILITY

1. The problem

DEVELOPMENT

Human population = 6 billion people Total surface of the earth =51 billion

hectares

Total productive soil available = 13 billion hectares

Between 1960 and 1999, the worlds’ ecological footprint went from 70% to 120%

of the total possibilities of the globe

Ecological footprint continuously growing

DEVELOPMENT

1. The problem

Can we afford to do NOTHING ? : Stern report October 2006

•  Climate change: –  Could deprive many people of water –  Food –  Health –  Available earth

•  To fight climatic change will be less costly than to do nothing !! –  1% of world GDP per year can solve the problem

•  NOT to do anything would : –  Cost from 5 % to 20 % of the world GDP per year (40 000

billions of $), (this is equivalent of the cost of a world war or the 1929 depression)

DEVELOPMENT

1. The problem

1.  The problem

5.  Methodology

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CORPORATE SOCIAL RESPONSIBILITY 08/09/10 23 INSEEC SUSTAINABLE

DEVELOPMENT

–  “ Development that meets the needs of the present generation without compromising the ability of future generations to meet their own needs. “

1987 Definition, Gro Harlem Brundtland

ESSENTIAL NEEDS:

Present generations Future generations The worst-off population What are their

needs?

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Three main pillars of sustainable development

Sustainable development

ECONOMY Optimal resource management Satisfaction of human needs

SOCIAL JUSTICE

- Satisfaction of human needs - Improving the quality of life

ENVIRONMENT Integration into the human

actions, the preservation of the environment

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Culture and governance are sometimes added

The idea of sustainable development appears when more than the renewable available resources are consumed or that social problems are so important that they may jeopardize the future of society.

–  Environmental deterioration, –  Inability of the authorities to react to environmental problems –  Internal political dissensions

•  BABYLONE

•  MAYAS

•  VIKINGS

•  GREENLAND

•  Easter Island

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Two (or three ?) major economic actors

Consumers Producers

Goods and services

Salaries

Work, Capital…

Payments

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HOW ABOUT ENVIRONMENT ?

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« NO social protection NO environmental protection without a strong economical basis »

Actors: companies, economists, industrialists

ECONOMIC

SOCIAL

ENVIRON-MENTAL

Weak Sustainability

THE PAST

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« conciliate environmental protection, social justice and economical growth »

Actors: public actors, local governments

Balanced sustainability

ECONOMIC SOCIAL

ENVIRONMENTAL

THE PRESENT

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« no long lasting human system can exist without taking into account the sustainability of its ecological system »

Actors: environmentalist NGO, ecologist…

Strong sustainability

ECONOMIC

SOCIAL

ENVIRONMENTAL

THE FUTURE ?

1.  The problem

5.  Methodology

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History of the evolution towards Sustainable Development

•  Development

•  Local environmental threats

•  Global environmental threats (known since the 1950s

•  Approaches

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History of “Development”

• 1840s-1860s Beginnings of the Industrial Revolution in the “western” world

• 1940s-1950s Second industrial revolution : WWII efforts transformed into mass-market products for a growing consumer society

• 1950s-1980s International Bank for Reconstruction and Development (The World Bank), loans and aid to Less Developed Countries, for fighting poverty and degraded environments…

What happened ? (History)

Environmental impacts of the “2nd industrial revolution”?

(What have you observed, heard of, read about...Specific historical events, incidents, efforts ?…)

Major incidents, accidents, catastrophes : -1953 : Minimata Bay mercury poisoning (Japan) -1967 : Torrey Canyon supertanker oil spill -1970 : Mercury poisoning outbreak in U.S. -1976 : Seveso dioxine from chemical plant (Italy) -1978 : Love Canal chemical seepage in homes (U.S.) -1984 : Bhopal toxic cloud killing thousands (India) -1986 : Tchernobyl nuclear reactor melt-down (Ukraine) -1999 : Erika oil spill off coast of France -1999 (Dec.): Hurricane-force winds in France -2001 : Toulouse AZF chemical plant explosion (France)

Origins of environmental preoccupations

•  Chemical spills in water bodies

•  Killer smogs

•  Oil spills on coastal zones

•  Unlivable habitats

•  Urban sprawl

•  Waste accumulation

•  NIMBY

Historical dates related to environmental issues and sustainable development

Johannesberg Summit (Rio + 10)

Rio do Janeiro Earth Summit

Stockholm international conference

2002 1992 1972

Global environmental issues

•  Global warming •  Ozone-layer depletion •  Deforestation •  Loss of biodiversity •  Soil degradation •  Freshwater degradation •  Marine pollution & overexploitation of resources •  Persistant organic pollutants

Global warming

•  Effects on the oceans – Seawater expansion – Sea level increase

•  Climate change – Hotter deserts – More violent weather – Changes in local vegetation

Indices of climate change

•  Increase by 0,6°C since the start of the XXth century (significant with regards to the millenium)

•  Sea level has risen worldwide @15-20cm in past century

•  Sea level rise of 1,5mm/year

Ecosystems

•  Terrestrial ecosystems

•  Freshwater ecosystems

•  Marine ecosystems

Biological diversity

•  Genetic resources

•  Ecosystem stability

•  Conservation and optimization of ecological equilibria

Historical dates related to sustainable development

Jo’berg. WSSD Kyoto

Protocol

Rio.UNCED (Environment & Deve-lopment)

Brundtland Commission. Montreal Protocol

Stockholm (SW). 1st Earth Summit

2002 1997

1992 1987

“SD” is everywhere...

•  Though issues of “environment” (and environmental threats) drives SD

•  SD is far from being just “environment” •  SD is implicitly and historically a global issue

  Linked to N-S dialogue and differences   …

The UN has been driving a SD scenario since 1972 (history of environmental issues and approaches)...

1.  The problem

5.  Methodology

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DEVELOPMENT

1.  Subsidiarity 2.  Transversality 3.  Participation 4.  Solidarity 5.  Equity 6.  Continual improvement 7.  Mutual Information 8.  Prevention 9.  Precautionary 10. Responsibility

Sustainable development, 10 principles

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The principles of sustainable development

–  The agent who deteriorates an object or a setting must take in charge their restoring to their previous condition (the polluter must pay)

The responsibility principle

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Sustainable development

–  Prevention principle is applicable to known risks (empirically, demonstrated or probable)

–  Precautionary principle aims at avoiding potential risks. , (hypothetical, non yet confirmed, but possible) Example : GMO, cellphones radiation, etc.

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Subsidiarity : To act in the most correct manner using local talent in the respect of different institutional levels

Transversality : To study problems globally and to take into account their economic, social and environmental impacts before making decisions

Sharing : To work with all the stakeholders of the community in setting up projects, sharing all common decisions (concept of governance)

Solidarity : To encourage solidarity between people, territories and generations, of today and also of the future

Sustainable development principles

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Fairness : To aim for general fairness. This entails the reduction of inequalities and the just sharing of natural and cultural resources.

Continual improvement : To evaluate periodically the projects and actions in the making, to make the necessary adjustments. Sustainable development grows dynamically

Mutual information : To inform the population truthfully and to encourage people to inform the authorities about problem situation.

DEVELOPMENT

Sustainable development principles

Do’s and Don’ts of a sustainable development project

DON’T

–  Confuse means and ends –  Avoid making choices on

political criteria –  Take action without established

priorities –  Forget the aim and get bogged

down in details –  Analyze the situation using some

indicators only –  Choose between environment

and development

DO - Keep everybody informed –  Work with “unconventional actors” –  Share good ideas !

–  Work with what you have (don’t wait for subsides)

–  Choose the right moment to act –  A crisis can help project implementation –  Think global act local

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DEVELOPMENT

1.  The problem

5.  Methodology

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Sustainable development /CSR case study preparation and presentations

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•  Teams of four

•  One presenter of the team to be designated haphazardly

•  Cases studies to be presented in 15 minutes (PPT presentation)

•  Short question and answer period, between floor, professor, and team members

•  Executif summary (First version to be submitted at same time as PPT presentation; second version to be submitted one week after presentation – with changes/additions) :

•  2 pages long

•  Font/ Arial 11 ; spacing= interline 1,5

•  All electronic copies to be sent in PPT and DOC Microsoft 2003 format (not PPTx or DOCx formats)

•  Chapters:

• ...

• 

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1.  The problem

5.  Methodology: student tasks, tools, and cases

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•  Cost/Benefit analysis •  Carbon footprint •  Stakeholder analysis •  CSR report analysis

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•  THE FOLLOWING CASES ARE SUGGESTED – BUT YOU MAY CHOOSE TO PROPOSE YOUR OWN CASE –  ESAT –  Château-Thierry townhall –  Troyes city –  ...

•  CATEGORIES OF CASES

•  OPTION: Interview protocol

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PROPOSED CASES

1.  The problem

5.  Methodology: student tasks, tools, and cases

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•  The governance of globalization –  Necessity of managing global resources

•  What is governance ? : –  The ability to manage projects using the talents and possibilities of all parties

concerned –  Good sustainable governance includes STATES, NGO’s and local partners –  This implies work with international organizations and all concerned

stakeholders –  Common norms and rules need to be edicted and applied

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Governance of sustainable development

The international relations situation •  International consensus :

–  Sustainable development must include the 3 pillars economic – environment –social

–  It has to be •  Short AND long term, •  Local AND global

•  Disagreements –  Priorities linked to development –  Historical and cultural differences –  More or less sustainable

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Sustainable development : for whom ?

Human beings

Plants and animals

Northern countries

Southern countries

Data : C.Brodhag

Humans of today

Future generations

DEVELOPMENT

« weak » actors

Time perspective

Different Approaches

Scope of an action

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Sustainable development strategies

Corporate Strategy (CSR)

Legal obligations

Agenda 21 local (ex: Paris)

National strategy (ex: France)

International Governance Conventions, agreements…

Supranational strategy

Institutions and actors of world governance

OMC/ WCO World Bank

IMF/FMI ….

ILO/OIT FAO

WHO/OMS UNESCO

UNEP/PNUE CDD

Economic Social

Millennium Goals Monterrey Consensus

Environment

Millennium Development Goals (2000)

Goals where fixed for 2015 by (191 countries and UN): 1. Eradicate extreme poverty and hunger 2. Achieve universal primary education 3. Promote gender equality and empower women 4. Reduce child mortality 5. Improve maternal health 6. Combat HIV / AIDS, malaria and other diseases 7. Ensure environmenal sustainability 8. Develop a global partnership for development

5. Governance of sustainable development

Monterrey consensus (march 2002)

–  1st conference organized by the UN on the financing and developing of sustainable developments

–  1st four-party talks :

DEVELOPMENT

European community policy on sustainability

In the late Sixties, no European country had yet defined any environmental policy

•  1972: 1st European policy for the Environment

•  1986: Single European Act (SEA): including environmental

•  1997: Amsterdam Treaty: «for a harmonious and sustainable development».

•  1998 : European Council of Cardiff : integration of environment preservation in sectoral policies, •  Agriculture, energy, transport, industry, the interior market.

•  9 Council departments developed environmental integration strategies

Sustainable Development Strategy in one Country •  International agreements

–  1992 : Earth Summit Rio de Janeiro –  2000 : Millennium Development Goals (MDGs) New York –  2002 : World Summit on Sustainable Development Johannesburg

•  How can it work ? –  Commitment at the highest level (Prime Minister…) –  Have a strategy –  Written in the laws of the country –  Setting up projects coherent with the local situations –  Regular reporting and communication on the national level

A political breakthrough

« Our house is burning and we are looking the other way… »

President J. Chirac at the World Summit on Sustainable Development (Johannesburg, 2002 )

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CORPORATE SOCIAL RESPONSIBILITY 08/09/10 68

French seven SD priorities (2003-2008)

1.  Citizens are actors of sustainable development

2.  Territory : Town and country planning

3.  Economic activities, companies and consumer

4.  Reinforce SD in energy, transport and agriculture

5.  Prevent risks, pollutions and nuisances

6.  Towards an exemplary country

7.  International action

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Environmental Charter

10 articles of the charter

Art. 1. - Rights Art. 2. - Obligations Art. 3. - Responsibility Art. 4. - Fixing damages Art. 5. - Precautionary principle Art. 6. - Sustainable development Art. 7. - Information and participation Art. 8. - Education and training Art. 9. - Research and innovation Art. 10. - International action

February 28th 2005

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Basic Concept

No single commonly accepted definition…

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•  A company running its business responsibly in relation to internal stakeholders (shareholders, employees, customers and suppliers);

•  the role of business in relationship to the state, locally and nationally, as well as to inter-state institutions or standards; and

•  business performance as a responsible member of the society in which it operates, and of the global community.

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6. Introduction to Corporate Social Responsibility

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Definitions

•  “… the concept that an enterprise is accountable for its impact on all relevant stakeholders. It is the continuing commitment by business to behave fairly and responsibly and contribute to economic development while improving the quality of life of the work force and their families as well as of the local community and society at large…”

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6. Introduction to Corporate Social Responsibility

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DEFINITION OF CSR

CSR is a combination of voluntary policies which include ethical, environmental,

globalization and human resource policies

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Critics

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•  Is CSR well defined and operative ? •  Is it the role of companies if it is not for

making the bigger profit possible ? •  Is profitability a must for being responsible ? •  Is CSR a way to avoid regulation and allow

an inherently destructive capitalism to last ?

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Issues

•  Responsible to who ? •  Shareholders, stakeholders or the whole society

(common good)

•  Responsible of what ? (the criterias) •  Responsible until what ? (the scope)

•  State vs companies •  Companies vs customers •  Companies vs subccontractors

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Corporate Social Responsibility

• 

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Sustaibable development

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