Business Sustainability Management Chapter 2 PDF

1 UNIT 1: BUSINESS AND SUSTAINABILITY Chapter 2: Business Sustainability Management BUSINESS&SUSTAINABILITY 2 2. Business Sustainability Management 2.a. Conceptualization 2.b. Stakeholder Management 2.c. Materialit...

1 UNIT 1: BUSINESS AND SUSTAINABILITY Chapter 2: Business Sustainability Management BUSINESS&SUSTAINABILITY 2 2. Business Sustainability Management 2.a. Conceptualization 2.b. Stakeholder Management 2.c. Materiality Matrix  2. Business Sustainability Management 2.a. Conceptualization 3 3 Business Sustainability Management involves … “Adopting business strategies and activities that meet the needs of the enterprise and its stakeholders today while protecting, sustaining, and enhancing the human and natural resources that will be needed in the future" – Cassar (2019)  2. Business Sustainability Management 2.a. Conceptualization 4 4 Sustainability management is not (but is related to)… Philanthropic Responsibilities Be a good corporate citizen Contribute resources to the community; Corporate Social Responsability (CSR): improve quality of life Primary goal: risk management Ethical Responsibilities Keith Davis (60’s): "decisions and actions taken for Be ethical Obligation to do what is right, just and fair. reasons at least partially beyond the firm's direct Avoid harm economic or technical interest.“ Legal Responsibilities Archie B. Carrol (1979): CSR embraces the entire range Obey the law Law is society’s codification of right and wrong. Play by of business responsibilities: economic, legal, ethical, the rules of the game and philanthropic Economic Responsibilities European Commission (2011): “the responsibility of Be profitable The foundation upon which all others rest enterprises for their impact on society” Carrol’s CSR Pyramid: "A Three-Dimensional Conceptual Model of Corporate Social Performance," Academy of Management Review, 1979  2. Business and Sustainability Management 2.b. Stakeholder Management 5 5 Basic tools for a systematic approach to sustainability management: - Stakeholder management: Identification, Segmentation and Prioritisation - Materiality matrix  2. Business and Sustainability Management 2.b. Stakeholder Management 6 6 Stakeholder management: Identification Who are the relevant people, groups or organisation that has interest or concern in an organisation? Who can affect or be affected by the organisation's actions, objectives and policies? Where are they?  2. Business and Sustainability Management 2.b. Stakeholder Management 7 7 Stakeholder management: Segmentation Which are their common characteristics? Primary stakeholders vs. Secondary stakeholders Source: Phillip (2003); Freeman (2007)  2. Business and Sustainability Management 2.b. Stakeholder Management 8 8 Stakeholder management: Segmentation Which are their common characteristics? Internal stakeholders vs. External stakeholders https://www.test-toolkit.eu/  2. Business and Sustainability Management 2.b. Stakeholder Management 9 9 Stakeholder management: Prioritisation  2. Business and Sustainability Management 2.c. Materiality Matrix 10 10 Materiality Matrix: Map of material topics Material topics/ issues definition: those topics that represent the organisation’s most significant impacts on the economy, environment, and people, including impacts on their human rights (GRI) (check template in Alud) Phase 1 Identification: Which interests, concerns, and demands are relevant, and for whom? Phase 1, 2 & 3 Characterisation: Which of the economic, environmental and social dimensions do they fall under? Phase 4 Priorisation: How material/important are they, and for whom? ? Phase 5  2. Business and Sustainability Management 2.c. Materiality Matrix 11 11 Materiality Matrix: Graphic representation of the issues that are relevant for the company and the stakeholders https://static.inditex.com/annual_report_2021/en/unique-model/collaboration-essence-transformation.html  2. Business and Sustainability Management 2.c. Materiality Matrix 12 12 Materiality Matrix Building Process Phase 1: Mapping material issues Phase 2: Identifying and engaging stakeholders (Power-Interest matrix) Phase 3: Validating & ranking material issues Phase 4: Grouping material issues Phase 5: Represent them graphically (choose your axes and zoom in for prioritisation) (NOT ONLY) REPORTING  2. Business and Sustainability Management 2.c. Materiality Matrix 13 13 Materiality Matrix-Some examples  2. Business and Sustainability Management 2.c. Materiality Matrix 14 14 Materiality Matrix-Some examples  2. Business and Sustainability Management 2.c. Materiality Matrix 15 15 Materiality Matrix-Some examples  2. Business and Sustainability Management 2.c. Materiality Matrix 16 HomeWork: Read CAREFULLY Inditex Case in Alud (pages 101-107)