1. © 2008, Milstein Business and Sustainability: Catalyst or Irritant? Mark Milstein Director, Center for Sustainable Global Enterprise

2. © 2008, Milstein Will you work in the private sector? A. Definitely B.Probably C.Maybe D.Never

3. © 2008, Milstein How do you view business vs. sustainability? A. The root of the problem B. The source of the solution

4. © 2008, Milstein Are big companies inherently bad? A. Definitely B.Well, maybe not inherently C.No

5. © 2008, Milstein Will you work in the private sector? A. Definitely B.Probably C.Maybe D.Never

6. © 2008, Milstein Environmental Management Voluntary Regulations ISO 14001 Design for Environment Life Cycle Pollution Prevention Environmental Reporting Risk Management Corporate Social Responsibility Social Audits SA 8000 Worker Safety Philanthropy Community Relations CSR Reporting Sustainable Enterprise Entrepreneurship Innovation Organizational Change New Business Development Business & Sustainability Sustainable Development Law Environmental Policy Environmental, Health & Safety Operations Public Relations Human Resources Corporate Foundations Research & Development Strategic Management Finance & Investment

7. © 2008, Milstein Sustainability: A Tower of Babel Environmental Management Corporate Social Responsibility Greening Industrial Ecology Stakeholder Management Life-Cycle Management Pollution Prevention (P 2 ) Sustainable Development Design for Environment (DfE) Green Design Urban Reinvestment Brownfield Redevelopment ISO 14001 Waste Reduction Closed Loops Resource Productivity Sustainable Technology Systems Thinking Corporate Governance Clean Technology Eco-Efficiency Eco-Effectiveness Biomimicry Triple Bottom Line Inclusive Capitalism Base of the Pyramid Community Capitalism Corporate Citizenship Voluntary Regulation Civic Entrepreneurship Full Cost Accounting EMS Risk Management Leapfrog Technology Cradle to Cradle Restorative Technology Take-Back Transparency

8. © 2008, Milstein Tomorrow Today External Internal Innovate and Reposition Set Shared Vision of the Future Reduce Costs & Risk Establish Reputation and the Right to Operate Org. Value Source: Hart & Milstein (2003), “Creating Sustainable Value” Understanding Value Creation

9. © 2008, Milstein Clean Technology Eco-Effectiveness Biomimicry Leapfrog Technology Sustainable Technology Knowledge & Service Intensity Cradle to Cradle Closed Loops Restorative Technology Systems Thinking Sustainable Development Base of the Pyramid Urban Reinvestment Brownfield Redevelopment Inclusive Capitalism Community Capitalism Civic Entrepreneurship Radical Transactiveness B24B (Business to 4 Billion) Corporate Social Responsibility Industrial Ecology Stakeholder Management Life-Cycle Management Design for Environment (DfE) Green Design Corporate Citizenship Full Cost Accounting Take-back Transparency Corporate Governance EMS Greening Pollution Prevention (P2) Eco-Efficiency Risk Management Environmental Management ISO 14001 Waste Reduction Resource Productivity Tomorrow Today External Internal Innovate and Reposition Set Shared Vision of the Future Reduce Costs & Risk Establish Reputation and the Right to Operate Org. Value Framing Sustainability Source: Hart & Milstein (2003), “Creating Sustainable Value” Environmental Management Corporate Social Responsibility

10. © 2008, Milstein Clean Technology Eco-Effectiveness Biomimicry Leapfrog Technology Sustainable Technology Knowledge & Service Intensity Cradle to Cradle Closed Loops Restorative Technology Systems Thinking Sustainable Development Base of the Pyramid Urban Reinvestment Brownfield Redevelopment Inclusive Capitalism Community Capitalism Civic Entrepreneurship Radical Transactiveness B24B (Business to 4 Billion) Corporate Social Responsibility Industrial Ecology Stakeholder Management Life-Cycle Management Design for Environment (DfE) Green Design Corporate Citizenship Full Cost Accounting Take-back Transparency Corporate Governance EMS Greening Pollution Prevention (P2) Eco-Efficiency Risk Management Environmental Management ISO 14001 Waste Reduction Resource Productivity Tomorrow Today External Internal Innovate and Reposition Set Shared Vision of the Future Reduce Costs & Risk Establish Reputation and the Right to Operate Org. Value Managerial Challenge: A Balanced Portfolio Exploitation Incremental Change Continuous Improvement Increase Productivity Convergent Thinking Transparency Stakeholder Management Information Dissemination Exploration Disruptive Innovation Self Destruction Divergent Thinking Diverse Perspectives Stakeholder Leadership Information Sharing Increase Discovery Source: Hart & Milstein (2003), “Creating Sustainable Value”

11. © 2008, Milstein Establish an Innovation Cycle Seek Variety Cultivate New Skills Incubate Disruptive Innovations Change Product-Market Portfolio Source: Milstein, London, & Hart (2007), “Revolutionary Routines” Work with Unconventional Partners Cross Organizational and Technical Boundaries Scrutinize Novel Perspectives Conduct Non-Linear Pilot Programs Nurture Local Economic Capacity Facilitate Generation of New Knowledge Commercialize Imaginative Technologies Grow New Markets Shed Obsolete Businesses Invest in Small Scale Experiments Test Hybrid Ownership Structures Analyze Distributed Control Mechanisms

12. © 2008, Milstein Base of the Pyramid Protocol Project An inclusive process through which the private sector and local communities build economic, social, and environmental value

13. © 2008, Milstein Some Suggested Readings Hart, S. L. and Milstein, M. B. 2003 “Creating Sustainable Value,” Academy of Management Executive, 17(2): 56-67. Hart, S. L. and Milstein, M. B. 1999. “Global Sustainability and the Creative Destruction of Industries,” Sloan Management Review, 41(1): 23-33. Lovins, A. B., Lovins, L. H. and Hawken, P. 1999. “A Road Map for Natural Capitalism,” Harvard Business Review, 77(3): 145-158. Milstein, M. B., T. London, and S. L. Hart. 2007. “Revolutionary Routines: Capturing the Opportunity for Creating a More Inclusive Capitalism,” In S. Pederit, R. Fry, and D. Cooperrider (eds.) Handbook of Transformative Cooperation: New Designs and Dynamics; Palo Alto, CA: Stanford University Press, forthcoming. Hart, S. 2007. Capitalism at the Crossroads: The Unlimited Business Opportunities in Solving the World’s Most Difficult Problems, 2nd Ed. Upper Saddle River, NJ: Wharton School Publishing.