Week 3:Triple Bottom Line, UNGC, MDG, GRI 6/10/20161

1Brundtland Commission Sustainable Development >Brundtland Commission defines Sustainable (SD) development as: ‘the development that meets the needs of the present without compromising the ability of future generations to meet their own needs.”(eyeon sustainability theory, page 1of 7 1 ) 6/10/ See reference List

2&3.Brundtland Commission’s Triple Bottom line >Refer to the figure in your article page 2. Referred to as “Weak Sustainability” (eyeon sustainabiltiy theory 1, page 2) >The figure highlights three pertinent parameters Society Economy Environment As an interdependent triad. That must be maintained for sustainability to happen. The grey areas where the circles intersect represent the process of “striking a balance between economic, social and environment priorities” (eyeon sustainabiltiy theory 1, page 2) 6/10/20163

3. Distinguish Between Weak and Strong models for DS >These balanced priorities allow for compromise of each of the three priorities. >Sustainable Development is resolved at the centre. >The model is difficult to define and regulate. >It is the issues of environmental threats and lack of support for the societal dimensions of SD that make this a “Weak Sustainability” Model not able to meet the urgency of these problems. In this model society is dependent on the economy as is the environment. (eyeon2050..sustainability theory 1, page 2) 6/10/20164

Weak Model >Eyeon2050….sustainability theory 1, Page 2 6/10/20165 Economy Society Environment comp SD

3. Distinguish Between Weak and Strong models for DS(continued) >An alternative model has been suggested as a “Strong Sustainability” Model (eyeon2050..sustainability theory 1, figure on page 3). The inner circle is the economy whilst environment and society take on the outer circles. In this way the economy is dependent on society and the environment. >In this Strong Sustainability model both society and the economy are dependent subsets of the environment. >So without a stable environment there is no economy or society. (eyeon2050..sustainability theory 1, page 3) 6/10/20166

Strong Model of Sustainability >Eyeon2050….sustainability theory 1, Page 3 6/10/20167 Environment Society Economy

4.Definitions EPI >This model is far superior than the Weak Sustainability model because it rejects the idea of “balance” or “compromise”. There is a definite sense of integration of environmental policy with social and economic policy. >In the UK they have an Environmental Policy Integration (EPI) which has three core goals: Achieve sustainable Development & prevent environmental degradation Remove contradiction and between policies as well as contradictions within environmental policies Realise the mutual benefits and make policies mutually beneficial (Lenschow, 2002) 2 6/10/20168

Strong Sustainability model >The Strong Sustainability shows no circles overlapping or gray areas. The distinct areas of Economy, Society and Environment show no place for compromise or discussion >There is an equal mindset and level of equal importance for all three policies. Each as important as each other and business needs to be involved in this approach for it to be categorised as truly involved in Sustainable Development. 6/10/20169

5.What is the Triple Bottom Line and its link to SD >The triple bottom Line (TBL) relates to economic value added to corporations as well as the environmental and social value that is added or destroyed. >How much of the operation should be involved in TBL, particular product, manufacturing process, or the company as a whole? 6/10/201610

7.Implementation of TBL in an organisation >Leaders: A company needs at least one executive level to see a TBL strategy through. Executive gives authorisation, support, and resources for activities. >Stakeholders: real responsibility of implementing a TBL plan. Motivating people Inspiring people Training and educating amongst stakeholders Support team to facilitate and embrace changes 6/10/201611

Linking Sustainability Theory and TBL to Coca Cola (China) >Applying the concept of sustainability theory to Cocoa Cola (Limited) and Coca Cola (China) (See FLO site Topic Central tab). >To What extent has this company applied the true concepts of TBL. >In your assessment isolate and discuss the: Economic Social Environmental components within the reports 6/10/

1.Millennium Development Goals as a Social Framework for SD >Evidence suggests the adoption of the MDG as a framework to think about social issues in management: Eradicate extreme poverty and hunger Achieve universal primary education Promote gender equality Reduce Child Mortality Improve maternal health Combat AIDS, Malaria and other diseases Ensure environmental sustainability Develop global partnership for development 6/10/201613

2.Corporate Support for Social Dimensions of SD and TBL >It is useful for Corporations to have a shared and vetted framework around social dimensions of Sustainability to: Help corporations prioritise sustainability using MDG framework to identify their strengths and help achieve their social goals. Promote constructive dialogue between NGO’s companies and government about working together to achieve social goals 6/10/201614

3.Poverty Alleviation as a Social issue in SD BOP markets allow the poorest of the poor to get their feet on the ladder of development, eg through micro financing (Grameen bank and ANZ bank 4 examples from last week) This is an example of Poverty alleviation using BOP and again a great example of societal Dimension of SD and TBL 6/10/201615

4.Stakeholder Links to the Societal Dimension of TBL >There is also a belief that corporations and the direct involvement of local stakeholders are essential to successful, sustained poverty alleviation. 6/10/201616

5.Business Strategy Links to Societal Dimension >How to design business strategy to better integrate societal needs: What are the strengths of the company, globally and locally What are the business needs or opportunities Are there any of the MDG with higher needs than others How can we design our business and or make social investments to support business goals and identify societal needs. Using the MDG how do we believe that this investment wil reduce poverty. 6/10/201617

6&7.MDG 7 5 & link to environmental sustainability >Goal 7 of the MDG helps to ensure environmental sustainability through the following: Reverse loss of environmental resources By 2010 a significant reduction in biodiversity loss (fish, forest, species loss Reduce by half the proportion of people without sustainable access to safe drinking water and basic sanitation Significant improvement in lives of at least 100 million slum dwellers by /10/201618

The UN Global Compact 6 What is the Global Compact? >The United Nations Global Compact 6 is a strategic policy initiative for businesses that are committed to aligning their operations and strategies with ten universally accepted principles in the areas of human rights, labour, environment and anti- corruption. 6/10/201619

Ten Principles UN Global Compact 6 and their links to Sustainability Human Rights 1.Business should support and respect the protection of internationally proclaimed human rights. 2.Make sure that they are not complicit in human rights abuses. Labour 3.Business should uphold the freedom of association and effective recognition of the right to collective bargaining. 4.The elimination of all forms of forced and compulsory labour 5.The effective abolition of child labour’ 6.The elimination of discrimination in respect of employment and occupation 6/10/201620

Ten Principles UN Global Compact 6 Environment 7.Business should support a precautionary approach to environmental challenges 8.Undertake initiatives to promote greater environmental responsibility 9.Encourage the development and diffusion of environmentally friendly technologies Anti-Corruption 10.Business should work against corruption in all its forms, including extortion and bribery 6/10/201621

GRI: Global Reporting Initiatives 8 >The GRI is a generally accepted reporting framework for Corporations to report on their commitments to sustainability. >Sustainability reporting is an effective tool to enhance publication of sustainability reports by corporations globally. >Sustainability reporting using GRI provides a valuable benchmark for measuring corporate sustainability activities. 6/10/201622

GRI >One of the most well-known and commonly utilised triple-bottom line reporting models is the Global Reporting Initiative (GRI) Guidelines. 8 6/10/201623

>The GRI’s specific goals are to offer report formats to account for sustainability: >to assist corporations in presenting a balanced picture of their organisation to the stakeholders; > to promote the comparability of corporate sustainability reports; > to stimulate benchmarking and the verifiable assessment of sustainability performance: and > to facilitate stakeholder engagement. 6/10/ GRI 8

GRI: Economic indicators >GRI Performance Indicators: >Economic indicators are concerned with an organisations impact. Both directly and indirect on the economic resources of its stakeholders and economic systems as local national and global levels. 6/10/201625

>EC5: Range of ratios of standard entry level wage compared to local minimum wage at significant locations of operation >EC6: Policy, practices and proportion of spending on locally-based suppliers at significant locations of operations >EC7: Procedures for local hiring and proportion of senior management hired from the local community >EC8: Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in-kind, or pro bono engagement 6/10/201626

>Environmental Indicators are concerned with an organisation’s impact on living and non-living natural systems, including eco-systems, land,air and water. Included within environmental indicators are the environmental impact of products and services: energy, material and water usage; greenhouse gases and other emissions; effluents and waste generation; impacts on biodiversity; use of hazardous materials; recycling, pollution, waste reduction and other environmental programs; environmental expenditures; and fines and penalties for non-compliance. 6/10/ GRI: Environmental Indicators

> >EN1: Materials used by weight or volume >EN2: Percentage of materials used that are recycled input materials >EN3: Direct energy consumption by primary energy source >EN4: Indirect energy consumption by primary source >EN5: Energy saved due to conservation and efficiency improvements 6/10/201628

>Social indicators include a few broad subcategories with more detail indicators under each: >Labour practices such as diversity, employee health and safety >Human rights such as child labour and compliance issues >Broader social issues such as bribery, corruption and community relations >Product responsibility. 6/10/ GRI: Social Indicators

Society >SO1: Nature, scope, and effectiveness of any programs and practices that assess and manage the impacts of operations on communities, including entering, operating, and exiting >SO2: Percentage and total number of business units analysed for risks related to corruption >SO3: Percentage of employees trained in the organisation’s anti-corruption policies and procedures >SO4: Actions taken in response to incidents of corruption 6/10/201630

Human Rights >HR1: Percentage and total number of significant investment agreements that include human rights clauses or that have undergone human rights screening >HR2: Percentage of significant suppliers that have undergone screening on human rights and actions taken >HR4: Total number of incidents of discrimination and actions taken 6/10/201631

Labour Practices and Decent Work >LA1: Total workforce by employment type, employment contract, and region >LA2: Total number and rate of employee turnover by age group, gender, and region >LA3: Benefits provided to full-time employees that are not provided to temporary or part-time employees >LA4: Percentage of employees covered by collective bargaining agreements >LA5: Minimum notice period(s) regarding operational chances 6/10/201632

Product Responsibility >PR1: Life cycle stages in which health and safety impacts of products and services are assessed for improvement, and percentage of significant products and service categories subject to such procedures >PR2: Total number of incidents of non-compliance with regulations and voluntary codes concerning health and safety impacts of products and services during their life cycle, and their outcomes 6/10/201633

Reference List 1.Eyeon2050sustainability theory 2. Lenschow, A., 2002, Environmental Policy Integration: Greening Sectoral Policies in Europe, Routledge US. 3. Coca Cola Sustainability report ANZ(2013), Stakeholder Engagement 2013 results, dd/ANZ_Stakeholder_Engagement_FY13.pdf?MOD=AJPERES&2013%20Stake holder%20Engagement%20Table%20(PDF%20268kB) 5. MDG 7 6/10/201634

6. United Nations 2014, Global Compact Network Australia United Nations 2014, Millennium Goals, GRI 2014, Global Reporting Initiative, An introduction to G4, G4-brochure.aspx G4-brochure.aspx 6/10/201635