CSR in the Ecological Environment

Jessica Gahtan and Alec Bertok

 What does CSR in the Ecological Environment mean?

NECESSARY PART OF BUSINESS DEEPER ELEMENTS OF SUSTAINABILITY

ENERGY
CONSERVATION BIODIVERSITY

RECYCLING

CLIMATE
POLLUTION CHANGE
PREVENTION RESOURCE
SCARCITY
WASTE AND
MINIMIZATION SECURITY
 STRATEGIC THINKING AND CLIENT SERVICES
Why do we need to cEaXrCe?ELLENCE.

Ability of future
Emerging
Carrying capacity Population generations to
economies are
of the world is growth rates are sustain
developing at an
overstressed. rising. themselves is
accelerating pace.
threatened.
 What can firms do?

Use natural Innovate in

Ensure resource
resources efficiently products,
security and
& minimize waste. processes, and
resource justice.
services.

Establish product Manage climate Respond to natural Pollution

stewardship. change. disasters. prevention.
Why should firms care?

Opportunity for: REVENUE GROWTH

RISK RE- COST

REDUCTION ENGINEERING CUTTING
 The global interdependencies
Market Economy
World of commerce
Includes developed and developing
countries
Responsible for 75% of energy and
resource consumption worldwide
Survival Economy Natures Economy
Traditional village based Natural systems
Subsistence oriented, rural life Finite and renewable resources
Highest population growth Fresh water depletion
Rural exodus Soil erosion
What problems exist?

Shortage of Industrial Dung and wood Greenhouse

Deforestation
skilled labour emissions burning gases

Overexploitation
Toxic Contaminated Minority Lack of sewage
of renewable
materials sites employment treatment
resources

Income Industrial Rural

Soil loss
inequality emissions exodus
 Environmental burden

EB = P x A x T To lower the total

environmental burden
P = POPULATION
change the technology
used to create the
A = AFFLUENCE (PROXY FOR CONSUMPTION) goods and services that
constitute the worlds
T = TECHNOLOGY (HOW WEALTH IS CREATED) wealth.
 Strategies for a sustainable world

STAGE STAGE STAGE

#1 #2 #3
POLLUTION PREVENTION PRODUCT STEWARDSHIP CLEAN TECHNOLOGY
FOCUS: MINIMIZING/ELIMINATING FOCUS: ENVIRONMENTAL IMPACTS FOCUS: INVESTING IN (&
WASTE BEFORE IT IS CREATED OF THE ENTIRE LIFE CYCLE OF A DEVELOPING) SUSTAINABLE
PRODUCT. TECHNOLOGY.

Proactive v. Reactive devision making DESIGN FOR ENVIRONMENT: Creating Shifting the technology base
Profitable products that are easier to recycle, reuse, From expense to invest
recover, and dispose of.
Sustainability vision

CLEAN SUSTAINABILITY
TOMORROW
TECHNOLOGY. VISION.

POLLUTION PRODUCT
TODAY PREVENTION. STEWARDSHIP.

INTERNAL EXTERNAL
 What impact corporate positions on climate change?

External Factors Industry considerations Firm Specific & Corporate Factors

Response to physical effects of Industry structure Position within supply chain

climate change Industry growth Market positioning
Government policies & regulations Market pressures Degree of centralization and
Stakeholder pressure and culture
perceptions Extent of internalization of top
management
 Strategies for positive climate change

Innovation
The development of new environmental technologies or
services.

Compensation
Utilizing technologies that reduce the harmful impact of
emissions.

Innovation + Compensation = Carbon Neutrality

Involves the complete elimination of emissions from products, activities, or the company overall.
 Specific strategic options to address climate change

Main aim:
Organization Innovation Compensation
Process improvement. Internal transfer of Emission
Internal New ways to use more energy Credits.
Company efficiency. Emission activities are transferred
within the company.

Product development.
Supply chain measures.
Vertical Innovative, more energy efficient
Emission activities are transferred
Supply chain products are sold to and used by
consumers. along the supply chain.

New product/market Acquisition of emission credits.

Horizontal Interaction with other companies to
combinations.
Beyond the supply Exploring new external product & transfer emissions and acquire
chain market combinations. credits.
 Lets find out who has been paying attention!
1. Go to https://kahoot.it (can be on your laptop or cell
phone)
2. Type in the code
3. Enter your nickname

https://play.kahoot.it/#/k/ee7713a7-41b8-4016-b37c-ad8a6a58e41c
case example:
 Case: Patagonia

Patagonia is a sports apparel Their Environmental Philosophy

company, founded in 1972.
5 Prongs:

Lead an unexamined life

Their Mission
Clean up our act
Build the best product, cause
no unnecessary harm, and use Do our penance
business to inspire and
implement solutions to the Support Civil Democracy
environmental crisis.
Influence other companies
https://www.youtube.com/watch?v=WexueycQgmY.
 Case: Patagonia

Product line (Stage 2: Stewardship)

Environmental
Quality impact Innovation

Simple, functional, and Industry leader

multi-functional $3 Million/year R&D,
patents
 Case: Patagonia

Product line (Stage 2: Stewardship)

Production & Sales Marketing Human

Logistics Resources

Choose business Stores represent brand Spend >1% of sales Employees receive paid
partners by values Use of catalogues - only Against using its sabbaticals
(vertical implementation) 60% selling space environmental initiatives $2k hybrid subsidy
1% for the planet as a selling tool By 2007:
(horizontal Has attracted positive >5% turnover
implementation) AND negative attention 53% of employees
had been there more
than 6 years
 Case: Patagonia

Stage 3: Clean technology

All buildings owned are

environmentally efficient.

Looking at every step of

production.
 Game time!
1. Go to https://kahoot.it
2. Type in the code
3. Enter your nickname

https://play.kahoot.it/#/k/58e697e2-d2f3-4086-9355-7ca24ce4958f
Are there any questions?