Chapter 1 - Key Concepts PDF

Chapter 1- Key Concepts Sustainability is the capacity to support, maintain or endure: it can indicate both a goal and a process. Sustainability can be maintained at a certain rate or level, as in sustainable economie growth. lt can also be upheld or defended as in sustainable definitions of good c...

Chapter 1- Key Concepts Sustainability is the capacity to support, maintain or endure: it can indicate both a goal and a process. Sustainability can be maintained at a certain rate or level, as in sustainable economie growth. lt can also be upheld or defended as in sustainable definitions of good corporate practice. Sustainable economie growth associated with the consumption of natura! resources and sustainable ecosystems might be mutually exclusive. Different types of sustainability: Social sustainability: conceived in terms of sustaining the well-being of people. Issues concerned with social equality, poverty and problems associated with justice. Equity considerations are primary in order to have the resources to reduce poverty and increase the well-being of developing countries. Environmental sustainability: sustaining nature or natura! resources. lt is about well-being in relation. to financial indicators, such as GDP,. and is characterised by underlying economie approaches to the range of social issues attempting to capture values embedded in human and natura! capita!. A business can be described as a commercial enterprise, company or firminvolved in trading products and services to customers for profit. Businesses are predominant in capitalist economies and usually privately owned. ·susinesses can also operate as non-profit enterprises. Commercial businesses are normally concerned with maximizing profit, foundations are non-profit and non-governmental organisations {NGOs) are usually social enterprises. The triple bottom line is the objective of businesses that consist of People, Pia net and Profit. This line is to make sure businesses are not just maximizing profit, but also include social and environmental sustainability. Greenwashing happens when an individual or business promotes something as sustainable, for example, the business, an initiative, product or activity, while operating in socially and environmentally damaging ways. Eco-efficiency is doing more with less. Compared with early industrial products, modern alternatives can generate more value by being produced on a much larger scale with less impact and using less material. Eco-effectiveness focuses on the development of products and industrial systems that maintain or en ha nee the quality and productivity of mate ria Is rather than depletingthem. Cradle to Cradle (C2C) considers not just minimizing the damage but proposes how depletion óf resources can be avoided by adhering toa cyclical 'waste=food' principle. The circular economy model uses the functioning of ecosystems as an exemplar for industrial processes, emphasizing a shift towards ecologically sound products and renewable energy. Sustainability is connected to ethics due to acting within governmental and conventional law. Businesses are confronted daily with ethica! issues in their dealings with suppliers, competitors, government agencies, clients and the public. The ethica! concerns are about environmental degradation as well as gender and racial equality, human rights and poverty. 3  l.J ~~~~S~ary Chapter 2 - Business Ethics Business ethics is an applied form of ethics that addresses principle s and problem s that a rise in doing of individuals. business, referring to the actions of organisations and actions of groups Categories of ethics : lly applicable moral 1. Non-consequentialists ethics (absolutism) refers to eternal, universa lies on underly ing principles, objective qualities and rational determi nation. The focus principles of the decision makers' motivat ion, including ethics of duties, ethics of rights and justice. the person, culture and 2. Consequentialist ethics (relativism) are subjective and depend on practice or action circumstances. In businesses, it is mostly used to refer to whethe r a policy, ent based on the results in a net benefit to a business or society. lt is about moral judgem outcome of a decision including egoism and utilitarianism. how to implem ent business Differen t factors influence businesses' consideration of whethe r and integrity policies and program mes within firms. These factors are: reportin g mechanisms, 1. External initiatives, influenced by stakeholders; for example , internal sectoral initiatives, collective action and certification. ent arrange ment or 2. Governmental actions; enforcement, compliance incentives, settlem corporate government codes. supplier pressure , peer 3. External initiatives adopted by companies; custome r/client- benchmarking, sustainability reporting initiatives. Corporate Social Responsibility (CSR) is the continuing commitm ent by businesses to behave ethically life of the workforce and their and contribu te to economie development while improving the quality of fam ilies, as well as of the local community and society as a w hole. g these among all costs of a CSR has shifted from treating pollution and other externalities to includin and transparently and firm. CSR has introduced corporate citizenship, which means acti ng honestly recognizing the rights and needs of all stakeholde rs. rights to life, shelter, food, Businesses should support and respect internat ional human rights; the security and so on. n to decrease poverty is Poverty and unemployment remain hard challenges in the world. The ambitio set out as the Sustainable Development Goals (SDGs) for four reasons : 1. Persistence of poor quality employment. 2. The narrow range of income sou rees available to the poor. resource wealth. 3. The fa il ure of economie growth to produce equitable transfer or natural deeper and lasting poverty 4. Poverty reduction through increased resource use is likely to create in the long term. y of private enterprises, free Neo-liberal economie theory is an ideology emphasizing the efficienc sector and private profit in tra de and open global markets. lt seeks to maxi mise the role of the private all aspects of social and economie life. Fairtrade is an alternative approach to conventional trade based on a partnersh·rp b et ween pro d ucers s d 1· · and consumers. Ethical corporate governance refers to the processe an po rcres a company. d t d b · addresses relatrng to the administration , management and conduct of ·t1 s ay- o- ay usrness. 4  ~. '-5- Ath en~ um ma ry Action has thre e fundamentals : The EU' s Corporate Governance 1. Enhancing transparency. 2. Engaging shareholders. petitiveness. 3. Supporting gro wth and com nges Chapter 3 - Environmental Challe where human beh avio ur has had an era comprising recent centuries Anthropocene describes a new ificant as to con stitu te a new geo logical atmosphere seen as so sign increased imp act on the Earth's ), bioc ent ric (biosphere-centred ), be ecocentric (ecosystem-centred epoch. Environmental values can ). Anthropocentrism is the pos ition ant hro poc ent ric (human-centred zoocentric (animal -centred) or tha t assessment of e imp orta nt or mor ally sup erior to most oth er species or tha t humans are mor an perspective. reality thro ugh an exclusively hum nism and includes the factors men t refe rs to the surroundings of an orga Biophysical or nat ura l env iron tal impacts can be enc e on its surv ival , dev elop ment and evolution. Environmen tha t have an influ waste recycling, but are less effe ctive waste, or indirect, by supporting dire ct, for example by disposing are damaging nature. at mon itor ing investments tha t trom a planetary surf ace is absorbed Gre enh ous e effe ct is a process by which ther mal radiation k tow ard s The e par t of this re-radiation is bac ted in all directions. Sinc by the atmosphere and is re-radia perature, heating the earth. ation of the average surface tem the surface, it results in an elev reductions achieved n is whe n indu stria lise d states share the credit for emission Joint imp lem ent atio in specific join t projects. ed ns allowances. This allows develop hanging part of nati onal emissio Emissions trading refers to exc Other countries can con side r the allo tted em issio n allowances. countries to trad e the ir excess Kyoto Protocol, which ces in ach ievi ng the ir resp ecti ve com mitm ent s und er the purchased allowan pricing and subsidies. includes emission targets, carbon et scheme allowing t Mec han ism (CD M) is a United Nations-run carbon offs Clean Dev elop men countries and claim the saved s to fund gree nho use gas emi ssions- reducing projects in oth er countrie ns targets. rts to mee t inte rna tion al emissio emissions as par t of the ir own effo wor ld : ssions have a big impact on the The failing goals of reducing emi Loss of biodiversity. Limits to gro wth. sters. Pollution and industrial disa Waste is still too high. cies or actions, but it is not e corp ora te resp ons e to clim ate change by changing the ir poli There is som enough. tor a finit e resource tha t the com mon s is the free acce ss to and unrestricted demand The tragedy of als, whi le casts of the exp loita tion of exploitatión accrue to individu ultimately depletes it. The benefits demand for the resource to e by all thos e for who m the resource is available. This causes are born increase. 5  ~(.)_ AthenaSurnmary Politicians fail to address climate change properly. This can be explained by seven factors: 1. Rich countries have exported their industrial operations to developing countries. 2. Not all countries ratified the Kyoto protocol or other climate-changing agreements. 3. Some countries have failed to cut their emissions as promised. 4. Businesses are getting mixed signa Is trom their respective governments. 5. Fossil fuel industries still have the money and power to dictate or override governmental regulations. 6. Develàped and developing countries cannot agree on who needs to decouple economie development trom environmental degradation. 7. The global population and its material needs and wants have increased. Chapter 4 - Social and Economie Challenges Absolute poverty is the amount of money necessary to meet basic needs such as food, clothing and shelter. Relative poverty is defined in relation to the economie status of other members of the society: people are poor if they faU below prevailing standards of living, given the societal context. Post-coloniàlism signifies the shift in power and trade relations; characterised by international development programmes and labour migration. Emerging societies grapple with the challenges of self-determination in relation to western norms and conventions, such as legal or politica! systems, left in place after direct administration by colonial power's ended. The dependency theory states that wealthy countries continue to exploit poor countries through foreign debt and disadvantàgeous trade. Neo-colonialism refers to an unequal economie and politica! power between former colonial powers and former colonies and the continuous influence of the developed countries over developing countries. lt is the geopolitical practice of using business globalisation and cultural imperialism to influence a country by indirect politica! control. The population has grown immensely over the past decades and is still growing. This is due to better health and food production technologies. Demographic transition is the process by which a country moves from high birth and high death rates to low birth and low death rates. The Brundtland Report consists of sustainable development objectives, a development that meets the needs of the present without compromising the ability of future generations to meet their own needs. Sustainable development promotes economie and social development in ways to avoid environmental degradation, overexploitation and pollution. The aim of the report is to : 1. Re-examine critica! issues of environment and development and to formulate innovative, concrete and realistic action proposals to deal with them. 2. Strengthen international cooperation on environment and development and to assess and propose new forms of cooperation that can break out of existing patterns and influence policies and events in the direction of the needed change. 3. Raise the level of understanding and commitment to action on the part of individuals, voluntary organisations, businesses, institutes and governments. 6  Sustainable Development Goals are seventeen goals aimed at improving life and the planet : 1. No poverty. 2. Zero hunger. 3. Good health and well-being. 4. Quality education. 5. Gender equality. 6. Clean water and sanitation. 7. Affordable and clean energy. 8. Decent work and economie growth. 9. lndustry, innovation and infrastructure. 10. Reduced inequalities. 11. Sustainable cities and communities. 12. Responsible consumption and production. 13. Climate action. 14. Life below water. 15. Life on land. 16. Peace, justice and strong institutions. 17. Partnerships for the goals. Sustainable developme nt can be seen as a paradox as sustainability implies continuity, stability and balance, while developme nt implies dynamism and change. Greenwashing refers to a corporate strategy whereby cosmetic changes are made and widely publicised, yet underlying structural problems are not addressed and the responsible consumer is exploited for further economie gain. Chapter 5 - Key Challenges for Making Sustainability a Reality The long-term success of a business depends on how well it identifies changes in the business environmen t and how well it adapts to them. However, sustainability car:rnot be met by simply tin kering at the margins of the current economie systems, but requires major changes in the way politica! and corporate leaders perceive and address environmental and social issues. The changing environmen t requires the understanding of sustainability and choices between growth and conservation. The Doughnut economics refers toa structure where the inner ring represents the social foundation, the situation in which everyone has sufficient food and social security. The outer ring represents the limits to growth, beyond whieh excess consumption degrades ecological systems. The aim is to move into the area between the rings, where the 'doughnut is safe and just space'. Conspicuous consumption denotesthe deliberate accumulation of goods and services intended as a · means of displaying the buyer's superior socio-economie status. Downcycling is the process of coriverting waste materials into new materials or products of lesser quality and reduced functionality, whereas upcycling increases the value of the product by, for example, combining it with other products. Rebound effect refers to the consumer response to the introduction of new eco-efficient technologies or products that tend to offset the beneficia! effects by perpetuating or actually increasing consumption of these products. 7  l.J - AthenaSummary Bios her· · · · P ic egahtari anism concerns the rights of other species, indepen dent of human interests. Environ mental social justice refers to many types of justice : ln~qui~~ ble distribut ion of environm ental burdens to vulnerab le groups such as ethnic minont1 es or econom ically disadvan taged populati ons. Develop ed and develop ing countrie s' unequal exposur e to environm ental risks and benefits. lntergen erationa l justice between present and future generati ons. Ecological justice : justice between all living species. Environ mental racism is the enactme nt or enforcem ent of any policy, practice or regulatio n that negative ly affects the living environm ent of low-inco me or ethnical ly margina lised commun ities at a higher rate than affluent commun ities. Chap ter 6 - Globalization and Business Risk society refers to a systema tic way of dealing with the hazards and insecurit ies introduc ed by moderni zation, viewed as the probabil ity of harm arising from technolo gical and economi e change. Green revoluti on refers to the program me of agricultu ral research funded by internati onal agencies and sponsor s that allowed food producti on to keep pace with populati on growth. This involved the develop ment of high-yie lding, fast-gi-ow ing and disease- resistant varieties of agricultu ral products. Fordism refers to the producti on efficienc y that is depende nt on successful assembl y-line methods. Fordism carne to signify the mass producti on of affordab le consume r goeds. Fordism is a manufac turing philosop hy that aims to achieve higher producti vity by standard ising the output, using conveyo r assembl y lines and breaking work into small, deskilled tasks. Energy has improve d social and economi e developm ents since the lndustria l Revoluti on. The technolo gical develop ments using energy have increase d and are still increasin g over decades. Connec tivity and the Internet of Things (loT) have had one of the biggest impacts on the global supply chain in increasin g speed, efficienc y and redu ci ng casts. Neo-libe ralism is a modern politico- econom ic theory favourin g free trade, privatiza tion, minimal governm ent interven tion in businesses and reduced public expendi ture on social services. A consequ ence of this theory.is the belief that market-b ased solutions will correct environm ental problem s, but it does not guarante e sustaina ble consume r choices. The Ecologicàl Kuznets Curve (EKC) hypothesis states that during early industria lisation, economi es use material resource s more intensive ly until a threshol d is reached, after which structura l changes in the econom y lead to progress ively less intensive use of material s. lt is believed that economi e growth leads to environm ental improve ment. Critics say that the material saturatio n level of develope d societies is far trom sustaina ble if they continue the same level of consump tion. The ecological modernization theory states that while the initia! stages of industria l developm ent involve environm entally damagin g and socially unfair practices , later stages lead to improved environm ental and human condition s. The post-ma terial value theory states that while wealthie r societies can afford to care about the environm ent, develop ing countrie s worry about meeting their basic needs. 8 Environm entalism emerges when b ·. · 1. _:Athen aS~~ --- as,c matena needs are met and wealthier individuals and societies are more hkely to exhibit environme ntal awareness. Chapter 7 - Strategie Change for Sustainability Competiti ve advantag e is whe f' · · · n a 1rm creates a means of secunng some form of supenonty such as Profitability of market share ov r ·t · h · · ' , e I s compet,tors t rough offering 1ts customers greater value. To address issues re lating to contempo rary ignorance, lack of capability and lack of actions, firms need to secure and apply va lid and reliable informatio n. This can be done by Knowledge management (KM). This is a systemati c process supporting the development of individual, group and organisati onal learning. KM involves the creation, gathering, transforming and application of knowledge in order to realize an organisati on's aims and objectives. The KM framework includes five major activities that must be skilfully developed : 1. Systematic problem-solving. 2. Experime ntation with new approaches. 3. Learning from pastsuccesses and failures. 4. Learning from the best practice of ether organisations. 5. Disseminating knowledge quickly and efficiently throughou t the firm. Knowledge creation (and KM) are the key to securing competitive advantage in a sustainable economy, as all organisations are confronte d by similar risks and uncertainties for which there are few historie precedents. Two ether aspects of ensuring a sustainable future are adding sustainability to projects and sharing ideas openly. Green marketing refers to a range of promotional activities that are increasingly being influenced by changes in consumer attitudes towards the environment and reflect a firm's commitme nt to sustainability. Green marketing should cohsist of the five l's: lntuitive. lntegrative (sustainability, technology, commerce). lnnovative. lnviting. lnformed. As a one-size-fits-all approach does not work well in green marketing, fir_ms should choose a consumer target group. There are several categories of strategies in green_marketm~:.... Lean green: ·inst ea d of focusing on publicizing or. marketing green...m1t1at1ves,. they are focusmg on ·1mproving · ett·1c1·enc·,es through pro-env1ronmental act1v1t1es, _ creatmg a lower-cost competitive advantage, nota green one.... De,; 1 ens1ve green: mar ket·,ng as a response to crisis or compet1tors, for enhancmg brand image and mitigating damage..... Shaded green: inves t ·in 1on g-term , system-wide , env1ronmental-fr1end _ ly processes requmng _ financial and non-financial commitnient.... Extreme green: ho 1.1st·1c P_h'II osophies and values to integrate env1ronmental issues fully in the business and product life-cycle processes. 9  Atnena.::,ww.w :u l ---- -.---.. th relating to e environment Responsible green advertising is a type of advertising focused on factors a bra nd c~n be a form_of trust and sustainability. Brand value is importa nt in sustainable advertising as nd es, st0 nes ~ relationships or guarantee for the consumer. A brand is the set of expectat1ons, memori t or service over another. that, taken togethe r, account fora consumer's decision to choose one produc · · k I tion or spreads the word on a brand · Brand value 1s when a consumer pays a premium, ma es a se ec _a_ range of skills : Green consultants develop a range of market strategies that involve requiring -makers. 1. Access to senior members of a firm and credibility with high-level decision 2. Deep and broad energy expertise. 3. Land use, agriculture and water expertise. 4. Policy expertise. 5. Expertise in performance measurement and reporting. 6. Leading-edge knowledge oftechn ology. 7. Stakeholder expertise and credibility. 8. Communication skills. 9. Understanding of corporate finance and capital markets. Chapter 8 - HRM, Green Jobs and a Green Economy Human resource management (HRM) is a process including the selection, recruitm ent, appraisal on and the welfare needs training and development of staff in accordance with employ ment legislati often called human resource of employees. The learning and development involved in HRM are develop ment (HRD). Using this HRD strategically by recognizing the value of employees' skills, knowledge and capabilities (a company's intellectual cap ita!) it can enable: the identific ation and The organisation to respond to challenges and opportu nities through delivery of various.interventions. nities of training, Information to be disseminated explaining the need for and opportu education and development. Employees to understand the goals and objectives of the organisation. d of their roles and lndividuals, supervisors, line managers, and top managers to be informe participate in HRD delivery. The continuous improvement of employee and company performance. l outcomes and are emerging Sustainable HRM and HRD will focus on social, environmental and finanda is defined as the use of HR as integral parts of many businesses' HRM strategies. Sustainable HRM of an HRM system that tools to help embed a sustainable strategy in the organisation and the creation contributes to the sustainable performance of a firm. These tools include: corpora te sustainability · Attracting and selecting new employees committed to the goals of and social responsibility. sustainability goals. Designing training, development and reward systems supportive of practices to develop. · Creating an organisational culture and cl imate that enables sustainability communicate effectively lnstituti ng clear processes and procedures to support managers and through out the organisation. Whistleblowing is the disclosure by organisation members of illegal, immoral or illegitimate practices be able to effect action. under the control of their employees, toa person or organisation that may 10 An HR model fully incorporating environmental su;... the social ecology of the organisation: tamabihty has three contextual drivers influencing 1. lnsufficient natural resources. 2. lncreasing pressure from stakehold er groups 3. Radical transparency. · Continuing professional development (CPD) · learning and development b.. is a pr~cess by which individuals take control of their own.d. d ' ~ ~ngaging in an ongomg process of reflection and action. HRM can help by prov1 ing 1earning an training opp 0 rt ·t· ·... uni 1es. Th1s combmat1on can result in greater performance of the flrm. The UN Principles for Responsible Man Ed ·.... agement ucat1on (PRME) ,s an initiative to radically transform management educat1on w1thin higher education with six core principles: 1. Purpose We_will develop the capabilities of students to be future generators of sustainable value tor businesses and society at large and to work for an inclusive and sustainable global economy. 2. · Values We will incorporate intö our academie activities, curricula, and organisational practices the va lues of global social responsibility as portrayed in international initiatives such as the United Nations Global Compact. 3. Method We will create educational frameworks, materials, processes and environments that enable effective learning experiences for responsible leadership. 4. Research We will engage in conceptual and empirica! research that advances our understanding of the role, dynarnks, and impact of corporations in the creation of sustainable social, environmental and economie value. 5. Partnership We will interact with managers of business corporations to extend öur knowledge of their challenges in meeting social and environmental responsibilities and to explore jointly effective approaches to meeting these challenges. 6. Dialogue we will facilitate and support dialogue and debate among educators, students, businesses, government, consumers, media, civil society organisations and other interested groups and stakeholders on critica! issues related to global social responsibility and sustainability. Sustainability leadership can be identified by seven key characteristics: 1. Systematic understanding. 2. Emotional intelligence. 3. Values orientation. 4. Con,pelling vision. 5. lnclusive style. 6. lnnovative approach. 7. Long-term perspective. · fi h t ·st·,cs could be · mindfulness, advocacy, holding discomfort, femininity. 0th er s1gn1 ,cant c arac en ·... b. · ·d work for a company or organisation that geriuinely contributes to the A green JO ,s any pa,... ta ·,nable society and a low carbon cooperat,ve ec. onomy. W1th a greener deve Iopment o f a more sus... ded due to changing eco-efflc1ency and low carbon processes. economy, other sk ,11 s are nee 11  -~(.) ~thenaSummary __ _ There is more need tor expertise in low carbon management projects and non-fossil fuel energy requires increased skill and employment demands. The drivers of the changes in demand for ski Il and employment are: Physical changes in the environment. National and international policy and regulation. Technological innovation. Changes in markets and consumer demand. A green or Eco-entrepreneur is a person whose activities straddle both enterprise and sustainable development, creating sustainable innovations that can achieve environmental and social goals in a holistic manner and be successful in the marketplace. Four types have been suggested as the ideal types: lnnovative opportunists identify a green niche ripefor economie exploitation and are largely influenced by structural factors such as regulation. Visionary championships try to transform the world and ground their business in environmentally sustainable va lues. Ethica/ mavericks have a sustainability orientation that is aften based on past experiences and influences and are most frequently found in alternative-stylè businesses. Ad hoc enviropreneurs are financially driven, aften referred to as 'accidental green entrepreneurs'. Chapter 9 - Creating a Sustainable Business Practice In recent years, sustainability pri11ciples have gained acceptance to varying degrees in a wide range of international treaties, regional agreements and legislation of riation -states. These agreements aim to control the environmental impacts of businesses, government bodies and other organisations within a broad framework of a free market global capitalism. These principles address: Environmental sustainability. Social equity and human rights. The principles include: 1. The Polluter Pays Principle: the one who pollutes should pay for it through fines or taxation. 2. The Precautionary Principle: where there are threats of serious or irreversible damage, lack of full scientific certainty shall not be used as a reasd11 for postponing cost-effective interpretation, or even on its value as a way of informing risk regulation. 3. The Participatory Principle: requires public engagement, consultation and debate on social, economie and environmental policy, practice and implementation. Benefits of the Precautionary Principle are : Environmental clean-up aften costs a great deal of money and ha_rms brand image. · lnvesting in unsustainable production and poor environmentál methods gives sub-optimum returns. R&D in environmentally friendly products can have significant long-term benefits. In the last decades, there has been an increase in the number of new environment~! policy instruments such as eco-taxes, market-based initiatives, voluntary agreements and environmental standards such as Europe's Eco-Management and Audit Scheme (EMAS). 12  _(_) AthenaS ---- - - -- ummary An environmental management --.. system (EMS) is env~ronmental tmp_acts by providing a clearly / tool for managing the impacts of an organisation's approach to plann ·ing and ·,mp 1emen t ·ing environmental act,ons. This is a vo untary 1. is ructured ·r. performance, articulating a belief that a. n, ,at,ve to improve a company's environmental. proact,ve appro h. f I d success u an respons1ble organisat· ac to env,ronmental challenges is a sign of a ton. A Supply chain is a system includ·mg b usmesses. int · components or services from a suppl· t. ' ormat,on and resources linking raw materials. ter o a business th t f h' , del1vers them to the end custom T h a as ions them into an end product and then.. · er. 0 ave a su t · bi. opt1m1smg operations from a broad. s ama e supply chain, a firm needs to look at. er perspect,ve · the e t' d. stewardsh1p as opposed to J·ust the d. ' n ,re pro uct1on system and postproduction · pro uct,on of a T bottom line in the entire chain. spec, tc product. lt also means including the triple The Natural Step (TNS) framework tor t t.. starts from a scientifically based definitt ra eg,c su~ta,~~ble change, education and communication society, nature is not subJ·ect t. ~n of ~u st ain~b,ltty based on key principles. In a sustainable. 0 systemat,cally mcreasing: 1. Concentrat~ons of substances extràcted trom the Earth's crust; 2. Concentr~t,ons of substances produced by society; 3. Degradat,on by physical means. The four-phase ABCD analytic facilitates a clear apprehension of a sustairiable business model. lt refers to : Awareness. Baseline mapping. Creating a vision. Down to action. An eco-label is a voluntary identification of the product developed by governments, manufacturers and third-party organisations. This label can inform sustainable purchasing decisions as they confirm a product has meta wide range of environmental performance criteria. Networks and sharing are key ways by which businesses and ether organisations generate and apply new knowledge, build capacity and collaboratively address the many 'wicked' complex and interconnected problems that beset us. This requires the development of mindsets attuned to the needs, va lues, skills, strategies and commitments to being a collaborative capacity builder. The sustainability practices.may be done, but also need to be seen by ethers and the effect of sustainability practices need to be identified. This can be done by corporate sustainability reports. A report can be analytic: Concerned with the definition of parts. Focus on elements rather than their interaction. Focus on the internal structures of the system. Produces a statie model. Tries to disguise complexity. 13  ) __ l. - - -... AthenaSummruy Or a report can have a systemic approach: Concerned with understanding the whole. Focus on the interaction of elements. Equal focus on the internal structure of the system and its interaction with the wider business environment. Produces a dynamic model. Encompasses complexity. The Global Reporting lnitiative (GRI) is to provide organisations with a comprehensive voluntary sustainability reporting framework. An overview of the reporting can be seen here: Easy access to l imely rellable , and comparable data ~ - - ~ Prepare - - - - ( Quickly generale Automatic data template lor generàtion.Comiect different stakeholder ollhe report conversations ,. Mapped data source wi1h clear definition 1\ J Data in comparable Complete overview format of data availability Data in meesurable format GRI has had considerable entrepreneurial successes in promoting sustainability reporting and the triple bottom line, but the critié:s question if it does actually offer sufficient conditions for organisations wishing to effectively contribute to global sustainability. lt is still a debate whether green accounting and the accounting profession in general is able to move beyond thinking predominantly in terms of creditors, investors, lenders and market-based mechanisms to resolve the many environmental problems that have been caused by the market itself (see the figure below). MECHANIS MS 1 ·1,1111 developm ent. System change/d esign and innovatio n at the care. Multi-/int erdiscipli nary rese.arch field. · Potential cost, risk, diversifica tion, value co-creatio n opportun ities. Cooperat ion between different stakeholders necessary. Regulation and incentives as care implemen tation tools. Centra! role of private business, due to resources and capabilities. Business model innovatio n as a key for industry transform ation. Technolo gical solutions are importan t but aften pose implemen tation problems. · 18  - _(_ ) ena Ath-... S - -- :.:- 'lllllln-a nr --- b"I ::::.1._ Differences bet we en sus ta· ma 11ty an d t h e circula r economy are : Susrainabi/iry Cimilar cconmny Orig ins of the En,· iron mcn ral n, term NG ove n1cnts, Different sc hools of rhou!!ht. Os, n o n -pro /ii and lik c Crad lc to Cmcll ~ intergo,·cmm enra l agcncics regulnro ry imp lcm m;a rion coop crnt h·c S\'ste1ns. by gove mme nts, lobbying bl' NOOs llkc the EMF inclu sion in poli t ica! ~~n das, e.g. Euro pt~;in Hori w n 2020 Goa ls Opc n-clldcd, 1nul titudc of Clos cd loop , idea lly climin'11ing gonl s d epen ding on the a ll resou rce inpu t inco and ~onsidcr