sustainable development
TRANSCRIPT
Sustainable DevelopmentAn attempt to review the field, and re-define how
organizations can tackle sustainability more effectively
The 2nd International Conference
on Organization and Management (ICOM) 2016
Organized by the College of Business Administration at Abu Dhabi
University in collaboration with Asia Academy of Management
20-21 November 2016 | Park Rotana, Abu Dhabi, UAE.
• Core Functions of Organizations
• The Sustainability Concept
• Social Responsibility from a Global
Perspective
• The need for Sustainability
• Barriers to Sustainability
• 4 Considerations for Organizations
• Conclusion and Recommendations
Agenda
Organizations Focusin Governments and
Private Sectors?
Organizations are typically driven
by a set of pre-defined objectives
Conventional Business Priorities
Productivity | Efficiency | Effectiveness | Revenue Increase | Expense Reduction | Profit | Share Price | Stakeholders | Company Growth | Leadership Quality | Vision | Mission | Governance | Accountability Transparency | Teamwork |
Learning | Innovation | Talent Management | Technology | Health | Safety | Risk Management |Emerging Market Forces
| Supply and Demand | Raw Materials | Competition | Customers Loyalty | Quality | Regulatory compliance
Conventional Business Priorities
Productivity | Efficiency | Effectiveness | Revenue Increase | Expense Reduction | Profit | Share Price | Stakeholders | Company Growth | Leadership Quality | Vision | Mission | Governance | Accountability Transparency | Teamwork |
Learning | Innovation | Talent Management | Technology | Health | Safety | Risk Management |Emerging Market Forces
| Supply and Demand | Raw Materials | Competition | Customers Loyalty | Quality | Regulatory compliance
The degree to which
organizations successfully
handle and respond to these
priorities determines their fate!
Sustainability
Sustainability
.. the ability to ‘sustain’,
support, continue,
maintain, ..
Sustainability in
Organizations
.. the ability of the
organization to produce
efficiently, and grow
economically while
maintaining
commitment to its
society demands of its
social responsibility.
Organizationsare parts of the
community
Adverse effects of businesses on
nature may lead to extinction!
Honey bees have been dying off at an
unprecedented rate - up to 30% per
year in in the last decade?
Scientists claim that chemicals used in
commercial agriculture have lethal
effects on bees?
Why would one care about
Bees extinction?
Bees play a vital role in sustaining planet’s ecosystem
84% of crops (400 plants) need bees to increase yields and quality!
Bees alone can impact planet’s
ecosystem, level of oxygen, ….
Social
Responsibility
Definition
Is a moral theory that
any entity, whether an
organization or an
individual, has to work
for the benefit of society
as a whole.
Social responsibility
Maintain a balance between economy and ecology (or ecosystem).
Examples of how
human development
impacted the world we
live in today ?
Environmental Pollution biggest global killers, affecting
more than 100 million people
Climate Changes is threating
increase of carbon dioxide
ratio by 35%
Loss of 129 million
hectares of natural
forests in the last 20
years impacting the
ratio of oxygen!
Loss of non-Renewable Energy
(natural gas to run out in 35 years –
Oil reserves in 70 years)!
World challenges require
all organizations to work
together
World Poverty
925 million people
don’t have enough
to eat.
2.8 billion people
survive on less
than $2 a day.
Explosive Spread of
Diseases and Epidemics
causing over 17 million
annual deaths.
Malnutrition is a 3rd
cause of children death
(3.1 million annually)
20% of world population
suffer from hunger and
lack of clean water
Employment
opportunities in a cut-
throat competing
business markets
Unemployment ranges 13% among youth, and approach 30% in ME.
Providing labor' rights,
including fair wages,
social security and
health insurance
Examples only:
1. reduced extreme poverty by half
2. drinking water for more than 2 billion people
3. Death rates fell 25%
4. improved living standard for 200 million
5. Reduction of hunger from 23% to 15%
6. Child mortality fell from 87 per thousand to 51
7. Decline in illiteracy among children from
102 million to 57
Results obtained from
UN CSR Programs
So what’s
Sustainability Again?
Sustainability
Balance performance
in terms of the
equivalent
environmental and
social ‘bottom lines’ in
order to deliver
sustainable economic
value to shareholders
Sustainability
.. the ability to ‘sustain’,
support, continue,
maintain, ..
Why Organizations Address
Sustainability?
During 2007-2012,
revenues of
$15 billioncame from energy
saving and eco-
friendly products.
Successfully reduced
waste by two-thirds.
$20 million annual savings
+ prevention of 17,000
tonnes of waste being
sent to landfills.
Through eco-
friendly products
and services,
EUR 32 billionwere brought in as
revenue ..
“For every
dollar we spend,
we are getting
US$1.50-2.00
back.”
Wayne Balta, Vice president,
corporate environmental
affairs and product safety,
IBM
Barriers to Sustainability?
Why sustainable initiatives hindered?
Why sustainable initiatives hindered?
Lack of knowledge, and inability to
measure and track results
Why sustainable initiatives hindered?
Disconnect between goals and
organisation operations
Why sustainable initiatives hindered?
Failing point!
Loosing market
share!
Why?
Company was
complacent, and
unable to see
disruptive
change coming!
Overflowed with
complacency
Communication
issue within the
company
Failure to adapt to
new technology
Organizations seek
one-size-fits-allapproach
Dow Jones World Sustainability Index
-
500.00
1,000.00
1,500.00
2,000.00
2,500.00
7/24/1998 4/19/2001 1/14/2004 10/10/2006 7/6/2009 4/1/2012 12/27/2014 9/22/2017
USD DJSI World Total Return
Sustainability Assessment Criteria
Where to start
from?
The subject field is broad
Knowledge Learning
People Leadership
Large gap in the demand
and supply of content around
sustainability practices
Need for holistic,
top-downimplementation
knowledge as opposed to
ad hoc attempts at
resolving efficiency
issues.
Knowledge base to
promote long-term and rational
perspective vs.
Immediate concerns
Organizations
need to
learnhow to
sustain
Institutions should become
learning organizationsthat discover, interpreted and
import and export knowledge.
Current organizational practices are maintained
at single and double loop levels
assumptions
Triple loop enables new learning to
improve performance & complex
problem solving
Innovation in the
approaches to
organizational
sustainability and in
adding value to society
Organizations need to adopt
programs and grants for education
& training to develop skills
As organizations develop, personnel
will also need to develop
Management
Teams
Need to come to the
fore.. And deal with
crucial elements of short
and long-term
sustainability matters.
Knee-jerk Reactions
to unplanned problems
will inhibit
implementing a truly
sustainable approach.
Creativity and
Innovation
Safe options stifle
innovation, and
inhibits generation of
new solutions
Disrupt Old
Business
Models
Sustainability is
possible if old
ways are
challenged to
generate
innovation
Conclusion
Need for long
term vision and
strategy
The role of Government
and international
organizations in defining &
agreeing on social
development priorities to
be targeted.
Encouraging
commit to the
achievement of
intended
specific social
goals
Encouraging
Partnership
between public
and Private
sectors
Promoting the concept of
organizational learning
in both government and
private sectors to
complement national
education systems.
Appreciation need to
translate into incentives
and privileges.
Remember the 4
dimensions of
knowledge,
learning, people,
and leadership!
Professor Ali M. Al-Khouri | First Vice-Chairman | Arab Federation for
E-Commerce | Arab Economic Unity Council |
League of Arab States | [email protected]
Thank You
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