Strategic approaches to sustainability Flashcards
(14 cards)
What is corporate strategy?
this is the direction and scope of an organisation over the long term, which achieves advantages for the organisations through its configuration of resources within a changing environment to meet the needs of markets and to fulfil stakeholder expectations.
What are strategic decisions usually concerned with?
concerned with the entire firm e.g. entering a product market. Decisions with the future which makes them anticipatory reflections and hence risky. Aim at achieving a competitive advantage for the corporation and aspire to fulfil stakeholder expectations.
What is the business case for sustainability?
a strategic and profit driven response to environmental and social issues. Focuses on alignment of corporate strategy and corporate sustainability. Measured by corporate financial performance (FP) and environmental and social performance (ESP). It is concerned with economic success through sustainability and not just with. Commonly used to frame sustainability activities e.g. Hahn 2014 and cultural artefact.
Is there evidence that business case for sustainability works?
there is evidence on the existence of the business case for sustainability. Strength of alignment between FP and ESP depends on context variables for FP, emissions, pollution etc.
2023, 63% of executives agree that business case for sustainability is clear, 24% says cost for sustainability outweighs the benefits, 85% have increased sustainability investment.
What does the outside-in approach consist of?
competitive context as an opportunity or barrier.
- factor conditions - resources to do business e.g. coastal areas in UK.
- demand conditions - customer demands & preferences e.g. demand for repair services.
- supporting industry - competitive supplier networks influence business competitiveness e.g. Japanese car industry.
- Strategy context - governments regulations on corruption, anti trust and sustainability e.g. EU corporate sustainability reporting directive.
What does the inside out approach consist of?
primary and secondary activities of a business as an opportunity or barrier.
- primary - inbound logistics, operations, outbound logistics, marketing and sales, services.
- secondary - procurement, technology development, human resources management, firm infrastructure.
How do firms cope with strategy sustainability links?
- level of inclusiveness - does the firm acknowledge the existence of multiple systems within its decision making?
- level of interconnectedness - does firm acknowledge that these systems are interconnected with each other?
- level of equity - even if firms acknowledge interconnected systems, do they treat social, environmental and economic objective as equitable.
What does Ellen do for strategic sustainability?
Ellen is a all electric ferry, connects island Aero and Als in Denmark. It costs 21.3 million euros, 40% more than for non sustainable deiseal alternatives.
BUT - operating costs were 75% lower - cost reduction in long run.
Increased cost of carbon in the EU emission trading system - strategy context.
What does interface do for strategic sustainability?
Interface is the carpet tile leader. Traditionally unsustainable industry synthetic fibres like nylon, high emission as they are petroleum based, recycling and waste issue, hazard and pollution.
Interface deep sustainability efforts since 1994 - recycling and take back programmes - Re-entry reclamation and recycling program, sustainable materials, reducing operational footprint (water, energy, waste)
What do believers argue?
Business case as sufficient for sustainability action - grounded in economic thinking, assumes that if there is a business case for sustainability then sustainability will automatically follow.
Business case as necessary for sustainability actions believes that without a business case, no sustainability reform will happen.
What do hopefuls argue?
Business case as an enabling tool - to guide sustainability innovation.
Business case as chrysalis - phase of deeper institutional change, understanding and develop the business case step by step, supported by standards, reporting etc.
What do sceptics argue?
Business case as fixation - an economic ideologies might undermine sustainability efforts and discourage individuals when the business case is needed to justify socio-ecological action.
Business case as impediment - focus on low handing fruits and incremental action rather than radical reform.
What are the limitations of the business case for sustainability?
we observe unsustainability and inaction (Ferns & Amaeshi, 2019). A risk that individual feel alienated from sustainability efforts.
What about issues for which it does not pay to be sustainable? Or only in the long run?
How can we explain cases where businesses engage in sustainability efforts without a business case?
What are some key takeaways from strategic approaches?
- strategic approaches to sustainability are also called instrumental approaches they are typically guided by economic rationals and profit motives.
- business case for sustainability - is a example of strategic approach to sustainability. It is aligning corporate strategy with corporate sustainability
- strategy sustainability alignment can be resulted of different activities including outside- in and inside out approaches
- Valente (2017) - proposed different of strategy sustainability alignment, some more and some less transformative.
- different actors - might describe different meaning to the importance of the business case.
