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SUSTAINABILITY & BEYOND – THE BUSINESS CHALLENGE

OF THE 21ST CENTURY

PROF . PROF . YEHUDA YEHUDA KAHANEKAHANEHEAD, THE AKIROV HEAD, THE AKIROV INSTITUTE FOR BUSINESS INSTITUTE FOR BUSINESS & THE ENVIRONMENT, TAU& THE ENVIRONMENT, TAU

A SPECIAL MEETING 10-12-08

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We are happy to haveWe are happy to haveDr. Michael BraungartDr. Michael Braungart

A person that left a positive A person that left a positive footprint on Earth. We thank footprint on Earth. We thank

him for his willingness to him for his willingness to include Tel Aviv University in include Tel Aviv University in

his very dense schedule.his very dense schedule. Yair, Anat and Liat for their Yair, Anat and Liat for their

great contribution to great contribution to arranging this meetingarranging this meeting

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CRISIS WORLD FINANCIAL CRISISWORLD FINANCIAL CRISIS LEADING TO REAL LEADING TO REAL

ECONOMIC CRISISECONOMIC CRISIS WILL AFFECT ALL SECTORSWILL AFFECT ALL SECTORS UNEMPLOYMENT AND UNEMPLOYMENT AND

PRODUCT DECLINEPRODUCT DECLINE

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CRISIS WOULD HAVE HAPPENED ANYHOW

WASTEFUL , CONSUMPTION BASED GROWTH

MILLENIUM ECOSYSTEM ASSESSMENT

OVER – UTILIZATION OF RESOURCES “OVERDRAFT”

WE HAVE NO OTHER PLANET TO BORROW FROM

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TURNING THE CRISIS TURNING THE CRISIS INTO AN OPPORTUNITY INTO AN OPPORTUNITY

机遇机遇 INSTEAD OF STAYING BELOW

THE PRODUCTION OPPORTUNITIS CURVE

WE CAN INCREASE THE OUTPUT AT ZERO ECONOMIC COST

USE THE OPPORTUNITY TO CHANNEL THE ECONOMY TO A MORE DESIREABLE TREND

PREPARE FOR RECOVERY PERIOD INVEST IN: SUSTAINABILITY, HI

TECH, EDUCATION

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A NEED TO REVISE A NEED TO REVISE ECONOMIC PRINCIPLES ? ECONOMIC PRINCIPLES ?

DISREGARDING THE “COMMON ROPERTY” ?

IS SOMETHING U DON’T PAY FOR VALUELESS ?

AIR, WATER, FOREST, LAND, PLANTS, ANIMALS SHOULD NOT BE TAKEN FOR GRANTED

INCORRECT PRICING. IGNORING EXTERNALITIES

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A CONCEPTUAL A CONCEPTUAL SHIFTSHIFT

TRADITIONAL GOAL OF THE FIRM: TRADITIONAL GOAL OF THE FIRM: SHAREHOLDERS WEALTH SHAREHOLDERS WEALTH MAXIMIZATIONMAXIMIZATION

A NEW CONCEPT OF CORPORATE A NEW CONCEPT OF CORPORATE GOVERNANCE:GOVERNANCE:

STAKEHOLDERS VS. STAKEHOLDERS VS. STOCKHOLDERSSTOCKHOLDERS

THE CONCEPT OF SUSTAINABILITYTHE CONCEPT OF SUSTAINABILITY

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DO CORPORATIONS BENEFIT FROM THE

CHANGES ? ? INCREASE REVENUES DECREASE EXPENSES (MATERIALS,

ENERGY INCREASE LABOR EFFICIENCY DECREASE CAPITAL COST DECREASE OVERALL RISK (PR) INCREASE VALUE BY INCREASING

PROFIT MULTIPLIER REVITALIZATION OF THE SPIRIT OFTEN LOWER INVESTMENT

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WHAT ABOUT ISRAEL?WHAT ABOUT ISRAEL?

EXPORT DRIVEN ECONOMY SUPPLIERS AFFECTED BY CUSTOMERS MUST ADHERE TO EU& WORLD

STANDARDS JOINING THE OECD MUST DECREASE DEPENDENCY ON OIL HUMAN RESOURCES REGAIN LEADERSHIP POSITION LOST TO OTHER COUNTRIES

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ISRAEL CAN LEAD DESPITE ITS DESPITE ITS SIZESIZE

TURN LEMONS TO TURN LEMONS TO LEMONADELEMONADE

A WORLD LEADER IN A WORLD LEADER IN SOLAR, WATER, SPACE, HI-SOLAR, WATER, SPACE, HI-TECH, AGRICULTURE, TECH, AGRICULTURE, MEDICINEMEDICINE

FOLLOW, LEAD OR GET FOLLOW, LEAD OR GET OUT OF THE WAYOUT OF THE WAY

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Yehuda Kahanekahane@post.tau.ac.il

THANKSTHANKS