Sustainability: Good Planets Are Hard to Buy

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SustainabilityGood Planets Are Hard to Buy!

• CAUBO 2008
• Work Shop program
• Presentation by Larry Berglund, CPP, MBA
• The University of British Columbia

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Larry Berglund, CPP, MBA

• Work experience
• Forest Industry
• Public Health Care
• Municipal Government
• University Operations
• Education
• CPP
• MBA
• Seminars/workshops
• Better Ways to Better Deals
• Strategic Management
• Sustainable Supply Chain Practices
• Leadership and Professionalism
• Teaching
• BCIT UCFV APICS PMAC KUC
• Published papers
• 2004 McMasters University - price index model
  paper
• 2005 McMasters University - Sustainable Supply
  Chain Management Practices

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Work shop outcomes

• Objective Share current supply chain
  information for strategic decision-making
  involving sustainability
• Purpose (1) Provide a balance of perspectives
  on the issues which affect sustainability for
  buyers, sellers, and stakeholders
• (2) Consider the challenges to define
  sustainability and corporate social
  responsibility
• (3) Provide practical ideas for taking
  actions which include social values

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Program

• Introductions
• Overview of Sustainability
• The Links in the Chain Case
• Definition of sustainability
• Principles and standards

• Resistance to sustainability
• Reasons for sustainability
• Challenges
• Trends
• Leading practices
• Market references, resources and tools

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Philosophical Imperative

• Social contract theory
• Social justice theory
• Rights theory
• Deontological theory

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The Links in the Chain CaseReview the case
individuallyIdentify key issuesWithin small
groups, decide what steps Bryan could take to
respond to Toms request.
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Definitions of Sustainability

• Group Exercise
• What is the definition of sustainability?

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Sustainability

• Economics
• Environment
• Expectations of society
• Sustainability

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The Role of Government

• Externalities
• Monitoring
• Controlling
• Trends
• Incentives

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The Role of NGOs

• Who are they?
• What do they do?
• How can you work with them?

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Who are the NGOs?

• MSN Maquila Solidarity Network
• Oxfam
• Amnesty International
• Green Peace

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Principles and Standards

• The Ceres Principles
• The Hannover Principles
• The Equator Principles
• LEED certification
• ILO/ UN Declaration of Human Rights

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Ceres Principles

• Protection of the biosphere
• Sustainable use of natural resources
• Reduction and disposal of wastes
• Energy conservation
• Risk reduction

• Safe products and services
• Environmental restoration
• Informing the public
• Management commitment
• Audits and reports

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Hannover Principles

• Rights of humanity and nature to co-exist
• Interdependence between humans and nature
• Respect relationships between spirit and matter
• Responsibility for consequences of design

• Safe objects of long-term value
• Eliminate the concept of waste
• Rely on natural energy flows
• Understand the limitations of design
• Share knowledge for constant improvement

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Equator Principles (17)

• Used to screen projects with international
  investment involving the World Bank
• Environmental, social and economic risks
• Generally within emerging economies
• Bank of America, HSBC, ING Group, JPMorgan Chase,
  Manulife, Royal Bank of Canada, Scotia Bank

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LEED Certification

• Materials should
• Have zero emissions
• Be deconstructable
• Be renewable
• Be recyclable
• Contain recycled content
• Be reusable

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International Labour Organization Conventions

• Freedom of association
• Right to collective bargaining
• Elimination of forced and compulsory labour
• Abolition of child labour
• Elimination of discrimination

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UBC Supply ManagementPrinciples of Sustainability

• Leadership
• Social inclusivity
• Environmental stewardship
• Accountability

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Resistance to Sustainability

• Group Exercise
• Why WOULDNT business engage in sustainability?

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Reasons for Resistance to Sustainability

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Managerial Barriers to Sustainability Practices

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Reasons For Sustainability

• Group Exercise
• Why SHOULD business engage in sustainability?

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Reasons For Sustainability

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Challenges/Opportunities for Supply Professionals

• Group Exercise
• What challenges or opportunities are presented to
  decision-makers with sustainability?

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Challenges/Opportunities for Supply Professionals

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Challenges/Opportunities for Suppliers

• Group Exercise
• What challenges or opportunities are presented to
  suppliers with corporate social responsibility?

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Challenges/Opportunities for Suppliers

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Caveats for Suppliers

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Leading Organizations.

• HM Clothing, (Sweden)
• Procter Gamble
• Dofasco Steel
• The University of BC
• Placer Dome
• BHP Billiton Diamonds (Ekati)
• Vancouver City Savings Credit Union
• The University of Victoria
• Minas Basin Pulp and Paper

• Interface Companies
• Mountain Equipment Co-op
• Starbucks
• Protocol Environmental Solutions
• Ciba-Geigy (Switzerland)
• Hudson's Bay Company
• Dow Agro Sciences
• Cargill
• City of Vancouver
• City of Whistler

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Brain Storming Ideas

• Group Exercise
• What can we do to demonstrate sustainability
  in the supply chain?

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What can We do in Supply Chain Management?

• The influence of the affluent factor
• Be innovative not isomorphistic
• Be passionate not passive
• Be proactive not pessimistic
• Be professional and pragmatic

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Be Professional, Pragmatic, and Prioritize

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Current Leading Practices

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Trends

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Memo to Business

• Society cares that you do make a Profit
• and
• and how you make that Profit.

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Remember..

• Good Planets are Hard to Buy!