University of Makeni – Concepts of Sustainable Enterprise

Sustainable business, green business, or a sustainable enterprise is a business that has minimal negative impact on the global or local environment, community, society, or economy—a business that strives to meet the triple bottom line.

Sustainable businesses have progressive environmental and human rights policies. To be considered a sustainable enterprise a business has to reflect the following:

It incorporates principles of sustainability into each of its business decisions.

It supplies environmentally friendly products or services that replaces demand for non-green products and/or services.

It is greener than traditional competition.

It has made an enduring commitment to environmental principles in its business operations.

Put simply, it’s a business that “meets the needs of the present world without compromising the ability of the future generations to meet their own needs.’’

Though no two enterprises are the same, the majority of such businesses practice strategies that include: Innovation, Collaboration, Process Improvement and Sustainability reporting.

Innovation & Technology

This introverted method of sustainable corporate practices focuses on a company's ability to change its products and services towards less waste production and sustainable best practices.

Collaboration

The formation of networks with similar or partner companies facilitates knowledge sharing and propels innovation.

Process Improvement

Continuous process surveying and improvement is essential to reduction in waste. Employee awareness of company-wide sustainability plan further aids the integration of new and improved processes.

Sustainability Reporting

Periodic reporting of company performance in relation to goals.

Essential Characteristics

Triple top-line value production

"The TTL Establishes three simultaneous requirements of sustainable business activities - financial benefits for the company, natural world betterment, and social advantages for employees and members of the local community—with each of these three components recognised as equal in status." Whereas many businesses use the triple bottom line, "triple top line" stresses the importance of initial design and is a term attributable to McDonough and Braungart in their book Cradle to Cradle.

2. Nature-based knowledge and technology

"This biomimicry-based principle involves the deliberate emulation of natural-world genius in terms of growing our food, harnessing our energy, constructing things, conducting business healing ourselves, processing information and designing our communities". We have touched on this before and a visit to www.Grassrootstrust

3. Products of service to products of consumption

"Products of service are durable goods routinely leased by the customer that are made of technical materials and are returned to the manufacturer and re-processed into a new generation of products when they are worn out. So, the resource are mostly re-used, requiring less replacement resources.

These products are mostly non-toxic to human and environmental health but toxic materials that are used will be kept within a closed loop type system and not be able to escape into the environment)

Products of consumption are shorter lived items made only of biodegradable materials. They are broken down by the detritus organisms after the products lose their usefulness.

These are also non-hazardous to human or environmental health. This principal requires that we manufacture only these two types of products and necessitates the gradual but continual reductions of products of service and their replacement with products of consumption as technological advancements allow."

4. Solar, wind, geothermal and ocean energy.

"This principle advocates employing only sustainable energy technology—solar, wind, and ocean and geothermal—that can meet our energy needs indefinitely without negative effects for life on earth." Other authors, such as Paul Hawken, have referred to this as utilizing current solar income.

5. Local-based organisations and economies

"This ingredient includes durable, beautiful and healthy communities with locally owned and operated businesses and locally managed non-profit organizations, along with regional corporations and shareholders working together in a dense web of partnerships and collaborations."

6. Continuous improvement process

"Operational processes inside successful organisations include provisions for constant advancements and upgrade as the company does its business. The continuous process of monitoring, analyzing, redesigning and implementing is used to intensify TTL value production as conditions change and new opportunities emerge.

Becoming a Sustainable Entrepreneur

The "first mover" company in any particular product category can often select the environmental attributes it wants to offer and mold consumer expectations so that future competitors must play by the rules established. If your company is not the "first mover" then market research is essential to understand the competition that exists in the marketplace.

Companies can assume the mantle of being sustainability leaders without being completely sustainable. They need only be sincere and sustainable in at least a few substantial ways. Companies can retain market leadership by introducing incremental improvements over time, a strategy sometimes called "greening as we go".

Companies can often create an effective presence in environmental and social markets by putting a number of improvements into a new (or refurbished) product or product line. As improvements are perfected and their consumer appeal tested, the "spearhead" line's sustainability attributes can be cost-effectively incorporated into the company's other product lines. Consumers interested in sustainable products love this approach.

Barriers to competitors' market entry can be erected in the course of establishing a sustainable product. This leadership position can be protected for months or years. Barriers prevent competitor imitation and allow the leader to reap above average returns. Barriers may include patents, distribution rights, and demanding product standards.

Many companies find that an environmentally-improved product, positioned for green-conscious youth, can renew an aging brand. This is important, especially for companies that sell primarily to the aging baby boomer generation. The green improvements of a youth line can also be readily applied to adult product lines.

Manufacturers of products traditionally sold to men can increase sales by marketing green improvements to women. Greener female consumers are increasingly buying items like automobiles and paints and actually purchase the bulk of men's cologne and apparel.

Green market success can be enhanced by tying a product's environmental attributes and message to the life style affinities of target consumers. Millions of hikers, for example, care about protecting wild lands; boaters are concerned about clean lakes and streams; mothers worry about their children's health. Thus, a water sport product manufactured in a way that reduces water pollution carries an innate appeal to many boaters, while green household cleaners that substitute safe ingredients for dangerous chemicals tend to appeal to mothers.

Operations

The sustainable enterprise respects the environment by minimizing energy and materials use and by reducing waste generation. These practices reduce the firm's operating costs and liability exposure.

Sustainable entrepreneurs should emphasize these advantages in their business plans by:

Highlighting the cost reductions, in budgets and cash flow, that are achieved by employing responsible environmental practices;

Noting practices that will insulate the company against future cost increases (e.g., waste disposal levies or oil prices);

Explaining that liability risks are reduced by responsible environmental practices.

The nub of the message is that sustainable entrepreneurs can place themselves in a stronger position to raise capital by ensuring that their business plans highlight and incorporate the emerging markets from which the business will profit, the technological solutions the company offers to environmental problems, and the sustainable manner in which the company operates.

Technology

The environmental problems that confront the world, from climate change to toxic waste to ozone depletion, are sometimes directly addressed by technological solutions offered by sustainable enterprises. This fact must be communicated to investors. Capital markets are generally not well informed about the scale of environmental degradation and such drivers as global environmental agreements. The economic benefits of technologies such as wind turbines, which are rapidly becoming more competitive, are not often well known to investors.

Sustainable entrepreneurs should:

Clearly link their technologies and the market potential for their products or services to existing environmental problems and note these relationships in their business plans.

Quantify the environmental and cost savings their technologies can offer customers;

Identify the ways their technologies reduce environmental liability and create a cleaner environmental profile for their customers.

The sustainable entrepreneur will find technology a powerful card to play when seeking investment. It has two potentially strong suits:

When the technology's key selling feature is cost savings, the investor readily understands and appreciates the potential demand and return;

When there is an opportunity to finance "first on the street" technology, the investor may appreciate getting first dibs.

Social Entrepreneurship

Social entrepreneurship is an alternative to mainstream capitalism that offers solutions to problems that governments and profit driven businesses have failed to address. Social entrepreneurs fulfill unmet social needs by giving greater importance to their social mission than profit-maximization. According to Nagler (2009), social entrepreneurship creates both social and economic values. These values include job/employment creation, innovation (new goods and services), social capital and equity promotion. Social entrepreneurship is one aspect of the broader Community Economic Development movement. Growing Opportunity, a joint publication produced by SustainAbility and The Skoll Foundation, provides a good assessment of the current state of social entrepreneurship including the opportunities and challenges associated with this field. The following Venn Diagram illustrates the relationship between social entrepreneurship and the private/public/voluntary sectors.

(Source: Venture Pragmatist, 2010)

What is a Social Entrepreneur?

A social entrepreneur is someone who uses entrepreneurial principles to create social change. Through business, social entrepreneurs aim to address the world's most pressing challenges such as poverty, environmental degradation and lack of access to basic resources (health, education, water, housing, etc.). Ashoka (2011) defines social entrepreneurs as “individuals with innovative solutions to society’s most pressing social problems. They are ambitious and persistent, tackling major social issues and offering new ideas for wide-scale change. Rather than leaving societal needs to the government or business sectors, social entrepreneurs find what is not working and solve the problem by changing the system, spreading the solution, and persuading entire societies to take new leaps.”

Notable Social Entrepreneurs from Around the Globe

Mark Plotkin and Liliana Madrigal – The Amazon Conservation Team

2008 Skoll social entrepreneurs Mark Plotkin and Liliana Madrigal created ACT in 1996 to preserve the cultures of indigenous peoples of the Amazon and empower them to protect the rainforest. ACT works “in partnership with indigenous people to conserve biodiversity, improve human health and fortify traditional culture in greater Amazonia" (The Amazon Conservation Team, 2009). Key accomplishments include completing ethnographic and land-use mapping for over 60 million acres of Amazonian rainforest lands, training over 125 indigenous persons as park guards and facilitating the national registration of 10 indigenous associations in

three Amazonian countries. Collectively, these activities and others have begun to pave the way for better protection of forest lands.

Sam Goldman and Ned Tozun – d.light

Sam Goldman and Ned Tozun co-founded d.light – a hybrid organization focused on providing the world’s poor with eco-friendly, cheap and safe lighting. The story of d.light begins in Benin where Goldman was working with the Peace Corps. While there his neighbour’s son was badly burned by a kerosene fire inspiring Goldman to start d.light. The organizations mission is “to enable households without reliable electricity to attain the same quality of life as those with electricity.” D.light has developed three main products; the S250 a solar lantern and mobile phone charger; Solata S380 a solar task lamp; and the S10 - the world’s most affordable solar lantern. The lights employ the world’s best product design principles and cutting edge solar and LED technology. They are high quality, durable and dependable and therefore suitable for all parts of the world. D.light has sold its solar lights to households off the grid in over 40 countries around the world. Customers who replace a kerosene lamp with a d.light lamp save money by eliminating the need for kerosene, create a better study environment for their children, reduce carbon emissions and have a healthier and safer home. More than 2 million people have already benefited from the lights resulting in 60 million USD in savings for families who no longer rely on kerosene and 65 million USD in increased productivity (Acumen Fund, 2011). By the end of 2015 d.light aims to improve the quality of life of 50 million people.

Blake Mycoskie – TOMS Shoes

Blake Mycoskie founded TOMS Shoes in 2006 after a trip to Argentina where he witnessed the hardships faced by children in poor villages without shoes. The business was built on a simple premise - for every pair of shoes sold, TOMS donates a matching pair of shoes to a child in need. The shoes are manufactured in Argentina, China and Ethiopia and have been donated to children in 23 different countries around the world. The shoe design was inspired by Argentina’s alpargata shoes. By providing shoes to some of the world's most needy people TOMS hopes to improve health (by protecting children from infection and soil-based diseases) and give more children the opportunity to go to school (in many countries shoes are required to attend). To date, over one million pairs of shoes have been donated. In 2007, TOMS Shoes received the People's Design Award and in 2010 the company was named one of the top ten most innovative retail companies by FastCompany.

Ambrosius Ruwindrijarto & Silverius Oscar – Telapak

Ambrosius and Silverius founded Telapak in 1997 to raise awareness of illegal logging in Indonesia’s national parks. Since then, Telpak has led efforts to shift toward community-based logging and has become the first organization in Southeast Asia to receive group forestry certification for logging cooperatives. The organization sustains itself through its cooperatives and community enterprises in printing, mass media, organic agriculture and sustainable fisheries and forestry. Telepak is now engaged with eight communities that collectively have the potential to certify more than 200,000 ha of forest land. The organization is not opposed to development, but instead promotes sustainable resource extraction. In 2010, Ambrosius and Silverius received the Skoll Foundations Social Entrepreneurship Award.

Jeroo Billimoria – Aflatoun

Aflatoun provides children aged 6-18 with social and financial education in 76 countries. Through education Aflatoun aims to empower children to make positive changes in their lives - breaking the cycle of poverty. Aflatoun delivers its programs both in and outside of schools and uses an activity-based curriculum. Activities include story-telling, song and dance, games, savings clubs and financial and community improvement enterprises. Aflatoun children save either individually or as a group in collaboration with local institutions and then use these savings to invest in community projects, school outings and school materials. At the end of 2009, Aflatoun had over 250,000 children actively saving and supported 976 social enterprises around the

globe. Jeroo Billimoria has been named a fellow by Ashoka and by Schwab Foundation for Social Entrepreneurship. She has also received the Social Entrepreneurship Award from the Skoll Foundation.

Awards, Prizes, Assistance and Support for Social Entrepreneurs

Increasingly, international development organizations and other institutions are promoting and supporting social entrepreneurship. These organizations recognize the value of using entrepreneurial principles to address some of the world’s most pressing environmental and social issues. Here is a list of some of the organizations currently offering support:

Schwab Foundation for Social Entrepreneurship – Selects social entrepreneurs to be a part of their community that fosters peer-to-peer information exchange

Ashoka – Selects successful social entrepreneurs with innovative ideas to be fellows. Fellows received a living stipend for an average of three years so they can fully focus on building their organizations.

Draper-Richards Foundation – Funding and mentorship opportunities for social entrepreneurs starting a non-profit organization.

Echoing Green – Issues 20 cash prizes/year in seed funding to social entrepreneurs

European Awards for the Environment (EBAE) – An excellence award for pioneers in green innovation.

The Social Innovation Awards – An opportunity for companies to highlight their social and environmental initiatives

New Ventures - Provides support to sustainable enterprises in emerging economies (Brazil, China, Mexico, Indonesia and India)

Skoll Award for Social Entrepreneurship – A financial award for social entrepreneurs who have been operational for at least three years. Recognizes the most innovative and sustainable approaches to resolving the world's most urgent social issues.

Whitley Fund for Nature (WFN) – Grants eight awards/year for up to £30,000 to outstanding nature conservationists

SEED Initiative – Annually grants SEED Awards to exceptional social entrepreneurs. Recipients receive direct support from SEED and its partners.

ALCAN Prize for Sustainability – Donates a total of US$1 million annually to not-for-profit, non-governmental organizations working on sustainable development around the world.

Goldman Prize for the Environment – An award honoring grassroots environmentalists (does not accept unsolicited nominations).

The World Challenge - An award for individuals or groups that make a difference through enterprise and innovation. Winner receives US$20,000 award from Shell for their project and two runner-up each receive $10,000.

The Development Marketplace (DM) – Funds early stage projects with high potential for development impact. Recipients also receive technical assistance.

The Business in Development (BiD) Challenge – Awards prize money (min. 5,000 max. 20,000 euros/person) to entrepreneurs to execute business plans that will improve living standards in developing countries at a profit.

Ashden Awards for Sustainable Energy - Financial awards for sustainable energy solutions in the UK and developing world.

Hong Kong Social Enterprise Challenge - An inter-collegiate social ventures business competition

Social Capitalist Awards - A yearly ranking of the top 15 to 25 noteworty social enterprises by Fast Company

Unreasonable Institute [7] – Fellows participate in a 6 week program where they receive mentorship, training and exposure. All expenses are paid.

Acumen Fund [8] – The Acumen Fund has a Global Fellows Program and an East Africa Fellows Program. It is a full-time one year fellowship focused on leadership development.

Resources on Social Entrepreneurship

Social Entrepreneurs Create Markets that Change the World - http://www.sustainability.com/library/social-entrepreneurs-create-markets-that-change-the-world-ideia-socioambiental

This article discusses the potential of social entrepreneurs to make change. In mentions some of the world’s biggest challenges and then emphasizes that if tackled in the right way, these challenges produce large market opportunities.

This article discusses the meaning of social entrepreneurship and the cultural shift towards more sustainable and systematic approaches to social issues. One interesting piece of information that it highlights is that with traditional business the feedback loop indicating success is more straightforward. Basically, if you are able to stay in business and are making profits you know you have been successful. In comparison, when your businesses goal is to have social impact, it can be more difficult to measure success in a timely and reliable way.

An example – Sustainable Enterprise – Tourism – a topic which is relevant in Sierra Leone

What is sustainable tourism?

This has been adapted from the Caribbean Tourist Board Report

“Sustainable tourism development means the optimal use of social, natural, cultural and financial resources for national development on an equitable and self-sustaining basis to provide a unique visitor experience and an improved quality of life through partnerships among government, the private sector and communities.”

Guiding Vision:

The sustainable development of Caribbean tourism engenders a sector that is viable and resilient, of high quality, promotes empowerment and ownership, and continues to embrace regional integration.

Six developmental goals:

1. Ensure adequate and appropriate national capacity to manage the sustainability of the tourism sector2. Continuously improve the sustainability of the marketing mix in light of emerging global marketing

trends3. Develop efficient and cost effective transportation options to facilitate a sustainable level of

destination accessibility4. Ensure the sustainable use of the natural environment and the cultural heritage for the benefit of all5. Develop and strengthen the links between tourism and other economic sectors nationally and

regionally to maximize the multiplier effect on the economy and reduce leakages6. Manage the health, safety and security issues that impact the sustainability of tourism

Core principles:

Sustainable tourism development guidelines and management practices are applicable to all forms of tourism in all types of destinations in the Caribbean, ranging from traditional package forms of tourism to the various niche market segments.

Sustainable tourism should make optimal use of environmental resources that constitute a key element in tourism development, maintain essential ecological processes and help to conserve natural resources and biodiversity.

Sustainable forms of tourism should respect the socio-cultural authenticity of host communities, conserve their built and living cultural heritage and traditional values, and contribute to inter-cultural understanding and tolerance. Tourism shall contribute to improving the quality of life enjoyed by citizens of the Caribbean and engender meaningful local participation in the sector, bringing about lasting beneficial effects to communities.

Sustainable tourism should ensure viable, long-term economic operations, providing socio-economic benefits that are fairly distributed to all stakeholders. This includes stable employment and income earning opportunities in addition to social services which contribute to poverty alleviation to host communities.

There is no single model for the implementation of sustainable tourism. Instead, a mix of the right management practices, legislative instruments and forms of partnership is needed, depending on the given situation. As tourism destinations have their own features, assets, problems and vulnerabilities, the strategies to address them, based on the available instruments and funding mechanisms, will also differ.

According to the UNWTO, sustainable tourism can be said to be:

‘Tourism that takes full account of its current and future economic, social and environmental impacts, addressing the needs of visitors, the industry, the environment and host communities.’

Making tourism more sustainable means taking these impacts and needs into account in the planning, development and operation of tourism. It is a continual process of improvement and one which applies equally to tourism in cities, resorts, rural and coastal areas, mountains, and protected areas. It can apply to all forms of business and leisure tourism.

Three pillars of sustainable tourism

Sustainability principles refer to the environmental, economic and socio-cultural aspects of tourism development, and a suitable balance must be established between these three dimensions to guarantee its long-term sustainability.

Sustainable tourism should:

1) Make optimal use of environmental resources that constitute a key element in tourism development, maintaining essential ecological processes and helping to conserve natural resources and biodiversity.

2) Respect the socio-cultural authenticity of host communities, conserve their built and living cultural heritage and traditional values, and contribute to inter-cultural understanding and tolerance.

3) Ensure viable, long-term economic operations, providing socio-economic benefits to all stakeholders that are fairly distributed, including stable employment and income-earning opportunities and social services to host communities, and contributing to poverty alleviation.

Twelve Aims of Sustainable Tourism

1) Economic Viability

To ensure the viability and competitiveness of tourism destinations and enterprises, so that they are able to continue to prosper and deliver benefits in the long term.

2) Local Prosperity

To maximize the contribution of tourism to the economic prosperity of the host destination, including the proportion of visitor spending that is retained locally.

3) Employment Quality

To strengthen the number and quality of local jobs created and supported by tourism, including the level of pay, conditions of service and availability to all without discrimination by gender, race, disability or in other ways.

4) Social Equity

To seek a widespread and fair distribution of economic and social benefits from tourism throughout the recipient community, including improving opportunities, income and services available to the poor.

5) Visitor Fulfillment

To provide a safe, satisfying and fulfilling experience for visitors, available to all without discrimination by gender, race, and disability or in other ways.

6) Local Control

To engage and empower local communities in planning and decision making about the management and future development of tourism in their area, in consultation with other stakeholders.

7) Community Wellbeing

To maintain and strengthen the quality of life in local communities, including social structures and access to resources, amenities and life support systems, avoiding any form of social degradation or exploitation.

8) Cultural Richness

To respect and enhance the historic heritage, authentic culture, traditions and distinctiveness of host communities.

9) Physical Integrity

To maintain and enhance the quality of landscapes, both urban and rural, and avoid the physical and visual degradation of the environment.

10) Biological Diversity

To support the conservation of natural areas, habitats and wildlife, and minimize damage to them.

11) Resource Efficiency

To minimize the use of scarce and non-renewable resources in the development and operation of tourism facilities and services.

12) Environmental Purity

To minimise the pollution of air, water and land and the generation of waste by tourism enterprises and visitors.

Corporate Social Responsibility

The fundamental idea of corporate social responsibility ''is that business and society are inter- woven rather than distinct entities'' and that business must therefore meet particular societal expectations regarding their social, environmental, and economic activities. The concept refers to the discourses, practices, policy initiatives, and disciplines that shape these societal expectations, as well as internal value systems, voluntary practices of corporations, and legal requirements pertaining to those activities.

Social movement groups, ethical consumers, and socially responsible investors and corporations themselves have driven the demand for modern conceptions of CSR. However, there has been little agreement among groups about the content areas, standards, and governance of social responsibility. While the business community has generally sought voluntary mechanisms, most social movement groups have advocated at least some level of legally binding structures.

While proponents see voluntary efforts as important steps in orienting corporations to the public good, critical perspectives emphasize voluntary CSR initiatives as an organized strategy by corporations to preempt stricter laws and regulations. Critical perspectives argue that if corporations' only legal responsibility is to make profits, it is impossible for them to adopt socially responsible practices.

Corporate social responsibility has become a hot business topic in recent years and many well-known business people have expressed their support for it:

Niall Fitzgerald Former CEO, Unilever "Corporate social responsibility is a hard-edged business decision. Not because it is a nice thing to do or because people

are forcing us to do it... because it is good for our business"

Dame Anita Roddick Body Shop “The business of business should not be about money, it should be about responsibility. It should be about public good, not

private greed”

Warren Buffett Berkshire Hathaway “It takes 20 years to build a reputation and five minutes to ruin it.”

There are many alternative definitions of CSR. Here are two:

An obligation, beyond that required by the law, for a business to pursue long term goals that are good for society

About how a company manages its business to produce an overall positive impact on society

So CSR involves:

Conducting business in an ethical way and in the interests of the wider community Responding positively to emerging societal priorities and expectations A willingness to act ahead of regulatory confrontation Balancing shareholder interests against the interests of the wider community Being a good citizen in the community

Is CSR the same as acting ethically? The answer is yes and no! There is clearly an overlap between CSR and business ethics:

Both are concerned with values, objectives and decisions based on something other than the pursuit of profit

Socially responsible firms must act ethically

The difference is that:

Ethics concern actions which can be assessed as right or wrong by reference to moral principles CSR is about the organisation’s obligations to all stakeholders – and not just shareholders

There are four main parts to CSR:

Economic Responsibility to earn profit for owners

Legal Responsibility to comply with the law

Ethical Not acting just for profit, but doing what is right, just and fair

Voluntary and philanthropic

Promoting human welfare and good will Being a good corporate citizen contributing to the community and quality of life

Examples

Infosys is one of the companies that has set benchmarks for other companies all over the world in the way corporate governance and social responsibility are handled and projected to the outside world. Companies must not simply talk about CSR but inform others of their beliefs, values etc.

The TATA group in India and The Body Shop (formerly owned by Anita Roddick) company in the United States are other examples.

They are two very different companies, at different ends of the spectrum as far as their product lines and lines of business are concerned but the public perceives these companies favourably mainly due to the visionary leaders that have led these companies as well as the reputation that has been established through decades of doing the right thing.

Of course, we have seen how some companies resort to “Green Washing” and promotes programmes that really only look to be genuine and the public soon notices this.

Finally, being a good corporate citizen brings its own benefits to the companies. It is common to find leaders from such companies sitting on various boards and advisory committees and that shows the high esteem in which they are held. This translates into instant recognition and a “halo” effect which for all practical purposes is like the adulation that rock stars and sports personalities receive from the people.

In conclusion, CSR as a business imperative must not be accepted grudgingly or half-heartedly. Instead, it must be practiced with full vigour and straight from the heart passion and this certainly helps the companies in the long run. After all, business is not all about the next quarter only.

http://www.socialbrite.org/2010/04/22/4-examples-of-corporate-social-responsibility-done-right/

http://www.boots-uk.com/corporate_social_responsibility/

Corporate Citizenship

The extent to which businesses are socially responsible for meeting legal, ethical and economic responsibilities placed on them by shareholders.

The aim is for businesses to create higher standards of living and quality of life in the communities in which they operate, while still preserving profitability for stakeholders. It is an inside looking outside school of thought. Repay the community for what they do for you.

As demand for socially responsible corporations’ increases – so investors, consumers and employees are more willing to use their individual power to punish companies that do not share their values. Investors who find out about a company's negative corporate citizenship practices, could boycott its products or services, or even refuse to invest in its shares or speak out against that company.

It now involves some of the most powerful global businesses:

http://www.microsoft.com/about/corporatecitizenship/en-us/

http://www.accenture.com/us-en/company/citizenship/Pages/index.aspx

http://www.goldmansachs.com/s/esg-impact/?cid=PS_02_24_07_00_01_15_01

http://corporate-citizenship.com/events/

Business is now wanting to connect with all stakeholders – especially those that form part of the community within which they operate.

This might be:

Skills training Sponsorship Mentoring Offer work placement, apprenticeships Just being active in the local and wider community

Looking to the Future

Nominate a sustainable development champion.

Nominating a Champion to spearhead sustainable development in your organisation is important to drive change effectively. The Champion should be an influential member of your organisation’s Board who can drive the agenda throughout your organisation. For larger organisations the champion can chair a sustainable development committee drawing on expertise from across the organisation and working together to produce change.

Develop a Board-level sustainable development management plan.

All organisations should develop a Board-level Sustainable Development Action Plan. This should include the six key elements of the Good Corporate Citizenship Assessment Model and a carbon management plan.

Incorporate a Board-level carbon management plan.

The sustainable development action plan should incorporate your organisation’s carbon reduction commitments.

Raising awareness and changing behaviour.

Develop an internal and external communications strategy to raise awareness of your sustainable development action plan amongst ALL stakeholders

Encourage significant, ongoing behaviour change Recognise and promote existing good practice.

http://www.csrwire.com/pdf/Business-Case-for-Corporate-Citzenship.pdf

Corporate Accountability

The performance of a publicly traded company in non-financial areas such as social responsibility, sustainability and environmental performance. Corporate accountability espouses that financial performance should not be a company's only important goal and that shareholders are not the only people a company must be responsible to; stakeholders such as employees and

In conjunction with the annual financial reports, which State Law requires corporations to produce, many corporations choose to produce corporate accountability reports to satisfy demands from the public and shareholders. Private organisations, not a government body, set standards for social and environmental responsibility that they expect public companies to meet and be account for. Corporate accountability is also important to shareholders concerned with ethical investing.

What does this entail?

http://corporateaccountabilityresearch.net/files/2011/09/What-is-corporate-accountability.pdf

In the developing world business is now becoming more involved in:

Assisting Democratic institutions and civil society thrive, unthreatened by corporate interference in policy-

making.

Allowing people to adequately meet their basic human needs for food, water, shelter and good health.

Promoting ways of allowing all people, regardless of gender, or any other difference to reach their full human

potential.

Believing that security is based on cooperation and community.

The successes of this way of thinking

http://www.stopcorporateabuse.org/successes

That is probably enough of what is a fast changing and growing area of corporate behaviour. As you study and

develop your own understanding, so this area of business will become important to the ways in which you

view business ethics and morality.