1. Advanced Management Control and Sustainable Development
Lecture 1: WHAT IS SUSTAINABILITY?
Prof. Angelo Riccaboni
University of Siena
Department of Business and Law

2. Agenda What is Sustainability? Importance of Sustainable Development
Key Dimensions of Sustainability
Challenges of Integrated Sustainability
Implementation of Integrated Sustainability
Integrated Governance
Hybrid Business Models for Integrated Sustainability
The role of Integrated Management, Measurement and Reporting Systems
Key Elements in the Implementation of Integrated Sustainability

3. Lecture 1: What is Sustainability?
Sustainability - refers to the need to develop the sustainable models necessary for both the human race and the planet Earth to survive.
Sustainable Development – refers to the development that meets the needs of the present without compromising the ability of future generations to meet their own needs (WCED, Bruntland Report, 1987)
Sustainable Development embodies:
environment
society
economy
integration
understanding
acting on the complex interconnections
between

4. Lecture 1: What is Sustainability?
Dimensions of Sustainable Development
Environmental sustainability
Economic development
Social inclusion

5. Lecture 1: What is Sustainability?
Sustainability is not only a complex and elusive notion, but is a concept which is fraught with potential contradictions.
Contradictions between sustainability dimensions:
Social performance requires freedom and flexibility from financial constraints and business logics, as to find solutions to social problems. The pursuit of social performance should aim at creating value primarily for the community rather than for individuals, thus financial performance works in the opposite direction.
Social and financial contradiction
Effective environmental management lead to increased production efficiency, cost reduction, improved market reputation with benefits for financial performance.
Environmental performance requires for high costs of compliance, huge investments and may limit opportunities for growth and for competitive improvement at the detriment of financial performance.
Environmental and financial contradictions
A new solution for a more effective management of environmental resources may conflict with social needs.
A new solution to social problems may conflict with the need to preserve natural resources
Social and environmental contradictions

6. Strategy & Business Models Management. Measurement & Reporting systems
Lecture 1: What is Sustainability?
Implementing integrated sustainability: key levels
Integrated Governance
Strategy & Business Models
Management. Measurement & Reporting systems

7. Integrated Governance
Lecture 1: What is Sustainability?
Performance
Risk
Knowledge
Compliance
Integrated Governance
Strategy & Business Models
Management. Measurement & Reporting systems
Integrated Governance

8. Lecture 1: What is Sustainability?
Integrated Governance
Strategy & Business Models
Management. Measurement & Reporting systems
Focus on the value creation for society.
Need for financially sustainable models
Focus on the value creation for the company.
Need for social and environmental performance(beyond compliance)

9. Lecture 1: What is Sustainability?
Integrated sustainability
Plan Do
Check
Communicate
Integrated Governance
Strategy & Business Models
Management. Measurement & Reporting systems
Integrated performance management and measurement systems- Business planning
Integrated reporting beyond compliance
Enacting processes of hybridization and integration among social, environmental and financial performance dimensions
Continuous monitoring and learning to avoid “mission drifts”

10. Key elements in the implementation of integrated sustainability
Lecture 1: What is Sustainability?
Key elements in the implementation of integrated sustainability
The integrated governance system-whose implementation requires effective management of compliance, financial, social and environmental performance; risk management and knowledge management;
The definition of adequate (hybrid) business models, which are requested to address social, financial and environmental performance dimensions simultaneously
Integrated management, measurement and reporting systems, which may allow an integrated approach to sustainability through planning, execution, monitoring and communication