1. Sustainability: A Competitive Advantage Kenneth George, MBA, MSAM Concordia University Irvine kenneth.george@cui.edu 909-576-8375

2. Opportunity with Sustainability

3. Sustainability  Business with Balance  Corporate Social Responsibility  Sustainability is Business Strategy  2013 – 80% of CEO say sustainability is a critical to competitive advantage  2003 – 25% Cost Profit Source: SVP Survey (2003); MIT SMR and Boston Consulting (2011): UNGC – Accenture (2013)

4. Sustainability as Value Creation Value Transfer Sustainable Value Value Destruction Value Transfer Source: Laszlo, C (2008) Sustainable Value, Standard University Press

5. Midsize Private Company  Gojo - Private family business  Inventors of Purell Reduce water usage by 30% Reduce solid waste by 25% Reduce greenhouse gases (GHG) by 5%

6. Mid-Size Private Company  $300 Million Sales  Industrial Sands  Launched 2005  40% Annual Growth Planet Prosperity People

7. Public Traded Company Tennant – Chemical Free Cleaning Company

8.  FORTUNE GLOBAL TWO COMPANY  "We save people money so they can live better."  “If we work together, we’ll lower the cost of living for everyone…we’ll give the world an opportunity to see what it’s like to save and have a better life.”  Difference they can make Walmart - Mission

9. Connection Does Vision and Mission Fit  Why does mission care?  Why does a vision matter?  Frontline employees  Partnerships

10. How to think BIG Become Sustainable B Innovation I Growth G

11. Paint a new future  Chose any product, service or organization  What is the business strategy?  How can it differentiate itself in ways that good for business and society?

12. S&P 500 Market Value  1975  83% of the stock price was based on tangible assets  2009  19% of the stock price was based on tangible assets  Stocks today are based off intangible assets Source: MIT SMR and Boston Consulting (2010)

13. What future do you want?  Sustainability Today  Sustainability in the future  Sustainability Tomorrow  Embedded Strategies  Radical Innovation  Net Positive Impact  Socially inclusive  Scaling system change

14. Funny Ways to Sustainability

15. Incremental to Radical  Incremental change to radical innovation  Doing less harm  Increase profits

16. The Next Competitors “The biggest threat for U.S. multinationals is not existing competitors… It is going to be emerging market competitors.” The Wall Street Journal : YearIn Millions of Dollars 1974$1,300 1984$3,633 1994$9,395 2004$31,393 2008$61,475 Source: MIT SMR and Boston Consulting (2014)

17. Disruptive Innovation

18. BOP 1 Billion People 4 Billion People 1 Billion People Income > 12,200 Per Year $12,200 > Income > $4,000 Per Year $4,000 > Income > $1,000 Per Year Government and Non-Profits Source: National Geographic 2011 New Market Capability

19. Next? Sustainabilit y Strategic Environmentalism Regulatory Compliance What is missing for business to be able to leverage sustainably for profit and world benefit? Source: Andrew Hoffman, Ross School of Business

20. Insufficient but Change Wanted  67% of CEOs do not believe that business is doing enough to address global sustainability 2013 survey of 1,000 CEOs  Sustainability is re-framed as flourishing Source: The UN Global Compact-Accenture CEO Study on Sustainability, (2013)

21. Next - Personal Flourishing  Centers on the basic feeling of being connected with one’s complete self, others, and the world around you  “Society needs a return to spiritual values – not to offsets the material but to make it fully productive”  Drucker – Landmarks of Tomorrow 1959 Source: Based on research by Mitroff, I. and E. Denton, Sloan Management Review

22. Reason for Being  Well Being  Being Well

23. Connection  People who experience a greater sense of connectedness to self- others and the world around them are more likely to incorporate care for others and for future generations.

24. Flourishing  Inspired every day to solve complex business problems that benefit society and the business  Wisdom Workers Source: Laszlo, C. and J Brown, et al. Flourishing Enterprise

25. Why Are We The Way We Are  Mental Models  What ones do we hold today?  Which ones might enable flourishing? Source: Senge, Peter (1990), The fifth discipline

26. Foundations in Spirituality  To understand why we hold our mental models and to develop the capacity to change them we can turn to spirituality  It reveals our deeper assumptions about the nature of reality

27. Appreciative Management 1.Appreciate “Best of what is” 2.Imagine “What might be” 3.Design “What should be” 4.Create “What will be” Mission and value statement that you live by

28. New Future Together Kenneth George, MBA, MSAM Concordia University Irvine kenneth.george@cui.edu 909-576-8375