BA 385 Business Environment

1
Why Companies Practice Sustainable Development

• Better local relationships
• Less resistance to new projects
• Lower public relations costs
• Enhanced human capital pool

Adapted from Sustainable Systems Associates, Ltd.
as presented in The Natural Step for Business
(1999)
2
Why Companies Practice Sustainable Development

• Increased eco-efficiency of operations
• Doing more with less
• Increased innovation
• Enhanced morale
• More diverse capital pools

Adapted from Sustainable Systems Associates, Ltd.
as presented in The Natural Step for Business
(1999)
3
Why Companies Practice Sustainable Development

• Self-regulation
• Leveraging expertise
• More informed legislation
• Cooperative relationships
• Synergistic advantages

Adapted from Sustainable Systems Associates, Ltd.
as presented in The Natural Step for Business
(1999)
4
Why Companies Practice Sustainable Development

• Enhanced due diligence
• Fewer fines
• Less convictions
• Better image
• Opportunities for innovation

Adapted from Sustainable Systems Associates, Ltd.
as presented in The Natural Step for Business
(1999)
5
Why Companies Practice Sustainable Development

• Value chain concerns addressed
• Customers increasing interest
• International regulations
• Reduced claims against product
• Opportunities for collaboration

Adapted from Sustainable Systems Associates, Ltd.
as presented in The Natural Step for Business
(1999)
6
Why Companies Practice Sustainable Development

• Media and activist pressures
• Supports positive image
• Avoids start-up/expansion resistance
• Enhanced value proposition

Adapted from Sustainable Systems Associates, Ltd.
as presented in The Natural Step for Business
(1999)
7
Why Companies Practice Sustainable Development

• Corporate stewardship
• Unifies all levels of company
• Employee commitment to shared vision
• Innovation and loyalty

Adapted from Sustainable Systems Associates, Ltd.
as presented in The Natural Step for Business
(1999)
8
Why Companies Practice Sustainable Development

• Lower insurance premiums
• Increasingly based on aspects of sustainable
  development
• Supports efficiency of resource use
• Helps diffuse principles deeper throughout the
  value chain

Adapted from Sustainable Systems Associates, Ltd.
as presented in The Natural Step for Business
(1999)
9
Why Companies Practice Sustainable Development

• Lower loan rates
• Inclusion of environmental considerations in
  underwriting
• Rates reflect perceived risk
• Helps diffuse principles deeper throughout the
  value chain

Adapted from Sustainable Systems Associates, Ltd.
as presented in The Natural Step for Business
(1999)
10
Why Companies Practice Sustainable Development

• Access to mutual fund portfolios
• Inclusion in screened funds
• Leverages brand through association
• Can take company to the next level

Adapted from Sustainable Systems Associates, Ltd.
as presented in The Natural Step for Business
(1999)
11
Why Companies Practice Sustainable Development

• Moral commitment to stewardship
• Multiple business drivers
• Outlet for personal commitment
• Value of providing alignment between personal and
  company values

Adapted from Sustainable Systems Associates, Ltd.
as presented in The Natural Step for Business
(1999)
12
A foundational premise
Business activity has inputs that influence cost
Land
Labor
Capital
13
Inputs to business
Natural Capital

• Natural Resources
• Water
• Air quality
• Oil Gas
• Timber
• Minerals

Human Capital
Financial Capital
14
Inputs to business
Natural Capital

• Human Resources
• Employees
• Customers
• Suppliers
• Distributors
• Community

Human Capital
Financial Capital
15
Inputs to business

• Financial Resources
• Venture capital
• Partners
• Investors
• Vendors
• Contracts

Natural Capital
Human Capital
Financial Capital
16
Inputs to business
Land

Natural Capital
Labor
A simple relationship
Human Capital
Resources Risk
Capital
Financial Capital
17
Principles of Stakeholder Management

• A simple guiding ethic
• We are borrowing the Earth from our children.
  Are they going to be well-served by what we
  consume, produce, and leave behind?

18

• Some web links that will be useful
• Oregon Natural Step www.ortns.org
• Natural Step US www.naturalstep.org
• Conservation Economy www.conservationeconomy.net
• International Institute for Sustainable
  Development www.iisd.ca
• Hands on Portland (for volunteer possibilities)
  www.handsonportland.org
• Regarding our access to information, check
  www.cjr.org/owners for a list of major media
  companies and their holdings.