
SME M3 - Fundamentals
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Created on February 28, 2022
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Fundamental Concepts of Sustainability
Sustainable SMEs Course
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After today, we will be able to:
Understand the structure of this course
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Find the role of SMEs within Sustainable Development
02
List the main sustainability issues of our time
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01
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1
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What is a sustainable business?
From a traditional perspective, the objective of companies is to grow.
What is a successful business?
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+ 170%
+ 11%
Net sales, year over year
Examples of successful companies:
World Bank (2021). China Economic Update: December 2021
Apple Inc. (2022). Apple Reports First Quarter Results
What is a successful business?
However, in light of the new global awareness on the climate change and social issues, the past 20 years have seen a progressive shift in our definition of corporate success.
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In 1972, the Limits to Growth report blew the whistle on the contrast between the exponential economic (and population) growth and the planet's finite supply of resources.
The key message: in order to create a society in which to live indefinitely on earth, limits on the production of material goods must be imposed.
Club de Rome (1973). The Limits to Growth.
The new model for a successful company is that which creates not only economic value,
A new definition
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Making up a large portion of businesses globally,
A new definition
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In the words of Harvard's distinct professor Michel Porter:
A new definition
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For your business to fundamentally increase its economic and social impact, commonly referred to as
you need to understand what they are and how they work.
EXTERNALITIES
Externalities
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When you bring them a benefit it is called a positive externality...
When you click on this button, a window just like this will open up and may contain:
- Further explanations of the content on the main page
- Links to videos, podcasts, websites that will open in another tab of your internet browser
- Enlarged versions of pictures or graphs that might be on the main page so you can see them in more detail
- Pictures of graphs that relate to the topic at hand and help you build better connections with the content
ACTIVITY
Differentiating positive and negative externalities,
PLAY
Drag and Drop each externality into the positive or negative boxes
Differentiating positive and negative externalities:
Air Pollution
Job Creation
R&D Activities
Water Pollution
Tax Payment
Noise Pollution
People/Skills
People Exploitation
Job Destruction
Infrastructure Development
Drag and Drop each externality into the positive or negative boxes
Differentiating positive and negative externalities:
Air Pollution
Job Creation
R&D Activities
Water Pollution
Tax Payment
Noise Pollution
People/Skills
People Exploitation
Job Destruction
Infrastructure Development
How did you do?
BACK TO COURSE
Externalities
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STAKEHOLDERS
2
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Who are your stakeholders?
A definition
A stakeholder is an individual or group that has an interest in any decision or activity of an organization.
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Every day, they are growing in:
Number
Importance
From ISO26000 - Guidance on Social Responsibility
Global customers and supply chains
Social media and activist groups
A definition
Stakeholder management can be a source of:
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Jeopardized future opportunities
Increased tensions and mistrust
Worsened brand image
Better relationships with local authorities
Improved information gathering
Higher feedback leading to better products
NUMEROUS BENEFITS
NUMEROUS RISKS
Stakeholder categories
Internal
Legal
Simplified from: Laasch & Conaway (2015). Principles for Responsible Management.
Stakeholder categories
Primary
Internal
Legal
Compe-
Simplified from: Laasch & Conaway (2015). Principles for Responsible Management.
Stakeholder categories
Secondary
Primary
Internal
Legal
Suppliers'
Media
Clients'
Compe-
Simplified from: Laasch & Conaway (2015). Principles for Responsible Management.
We will develop a detailed stakeholder engagement strategy for your business at a later stage of the course.
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Your key objective
" The purpose of a company is to engage all its stakeholders in shared and sustained value creation. In creating such value, a company serves not only its shareholders, but all its stakeholders – employees, customers, suppliers, local communities and society at large. "
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For its 50th anniversary, the World Economic Forum recalled its 1973 Manifesto by publishing a 2020 version calling back for a stakeholder-driven view of business. During the forum taking place in Davos, numerous private and public sessions took place to discuss the manifesto and its potential implications for the future of our world.
Access the full Manifesto here.
3
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From externality to impact
As stakeholders incresingly hold businesses accountable for their externalities, these so-called "impacts" start to be internalized into corporate functioning and accounting systems.
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These impacts...
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Direct vs Indirect
What are the ideal conditions to improve Quality of Working Life?
Consider work as a health-promoting factor
Managing QWL in a project approach
Be ready to modify your ways of working
Carry out a professional risk assessment
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Involve employee representatives to discuss changes and new initiatives
Test your new initiatives with the people who are the most reluctant to change
Get help from an outside consultant
Flash quiz
What are the ideal conditions to improve Quality of Working Life?
Consider work as a health-promoting factor
Managing QWL in a project approach
Be ready to modify your ways of working
Carry out a professional risk assessment
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Involve employee representatives to discuss changes and new initiatives
Test your new initiatives with the people who are the most reluctant to change
Get help from an outside consultant
Flash quiz
What are the ideal conditions to improve Quality of Working Life?
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Flash quiz
Consider work as a health-promoting factor
Managing QWL in a project approach
Be ready to modify your ways of working
Carry out a professional risk assessment
Involve employee representatives to discuss changes and new initiatives
Test your new initiatives with the people who are the most reluctant to change
Get help from an outside consultant
What are the ideal conditions to improve Quality of Working Life?
Eco-Learn.fr ©2022 All rights reserved.
Flash quiz
Consider work as a health-promoting factor
Managing QWL in a project approach
Be ready to modify your ways of working
Carry out a professional risk assessment
Involve employee representatives to discuss changes and new initiatives
Test your new initiatives with the people who are the most reluctant to change
Get help from an outside consultant
What are the ideal conditions to improve Quality of Working Life?
Eco-Learn.fr ©2022 All rights reserved.
Flash quiz
Consider work as a health-promoting factor
Managing QWL in a project approach
Be ready to modify your ways of working
Carry out a professional risk assessment
Involve employee representatives to discuss changes and new initiatives
Test your new initiatives with the people who are the most reluctant to change
Get help from an outside consultant
What are the ideal conditions to improve Quality of Working Life?
Eco-Learn.fr ©2022 All rights reserved.
Flash quiz
Consider work as a health-promoting factor
Managing QWL in a project approach
Be ready to modify your ways of working
Carry out a professional risk assessment
Involve employee representatives to discuss changes and new initiatives
Test your new initiatives with the people who are the most reluctant to change
Get help from an outside consultant
What are the ideal conditions to improve Quality of Working Life?
Eco-Learn.fr ©2022 All rights reserved.
Flash quiz
Consider work as a health-promoting factor
Managing QWL in a project approach
Be ready to modify your ways of working
Carry out a professional risk assessment
Involve employee representatives to discuss changes and new initiatives
Test your new initiatives with the people who are the most reluctant to change
Get help from an outside consultant
What are the ideal conditions to improve Quality of Working Life?
Eco-Learn.fr ©2022 All rights reserved.
Flash quiz
Consider work as a health-promoting factor
Managing QWL in a project approach
Be ready to modify your ways of working
Carry out a professional risk assessment
Involve employee representatives to discuss changes and new initiatives
Test your new initiatives with the people who are the most reluctant to change
Get help from an outside consultant
Summary of today's module:
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01
Planetary boundaries
There are nine Earth systems that have limits to how much humans can exploit them. Some of them are already exceeded, threatening harmful changes in the planet and therefore our ability to live on and use the planet.
02
Frameworks for change
Negative externalities do not equal business success. Existing international frameworks provide SMEs with structures in which to frame their sustainability goals and efforts and guide progress with positive impacts.
03
IMPACTS ON PEOPLE
The first social sustainability issues with which to be concerned are decent work opportunities and safety and security when at work. Women and children especially face labor injustices within supply chains.
All together now
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Congratulations, you finished this module!
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International Frameworks to Address Impacts
4
There are three main frameworks that are crucial to understanding how companies are moving toward sustainability.
International Frameworks
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Insert link to NOTION PAGE that has an updated version of this chart. By updated, I mean including the uses for SMEs and written for SMEs not for academics. (as a green button)
There are three main frameworks that are crucial to understanding how companies are moving toward sustainability.
International Frameworks
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The Sustainable Development Goals (SDGs)
In 2015, the UN adopted thes
The SDGs were adopted by all UN Member States to address the global challenges we face, including poverty, inequality, climate, environmental degradation, prosperity, and peace and justice.
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The SDGs
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The SDGs consist of 17 goals and 169 targets that specifies what and how to achieve sustainable development. These targets set the agenda from 2015-2030 with a goal of reaching them by 2030.
All 17 goals are interconnected, meaning that success in one can lead to success in others. It also aims to leave no one behind and involve everyone including businesses.
Take a look at all 17 goals in detail here.
The SDGs
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The 17th goal of strengthening partnerships explicitly brings companies into the picture and is a key to success. This includes large companies as well as SMEs like yours!
The SDGs
To promote sustainable development, it is important for companies to collaborate with different stakeholders - different organizations, governments, customers, industry and sector, and the society.
This is when the SDGs step in, providing a universal and visionary framework for this global cooperation, enabling all stakeholders to proactively solve these challenges.
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The SDGs
SDGs can play the role as a guideline for businesses and will allow leading companies to demonstrate how their business helps to advance sustainable development.
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What is the Paris Agreement?
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TRUE
FALSE
o
TRUE
FALSE
The Paris Agreement's goal is to reduce greenhouse gas emissions enough to limit climate change to +3 degrees C.
THAT'S CORRECT
The aim of the Paris Agreements is to keep global warming to well below 2 degrees Celcius and preferrably to 1.5 degrees C. The warming of the climate beyond 2 degrees C will cause much more catastrophic damage to the earth's systems.
THAT'S INCORRECT
The aim of the Paris Agreements is to keep global warming to well below 2 degrees Celcius and preferrably to 1.5 degrees C. The warming of the climate beyond 2 degrees C will cause much more catastrophic damage to the earth's systems.
Paris Climate Agreement
Although some countries did not ratify the Paris Agreement, it was successfully put together under significant and growing pressure from civil society.
Learn more about the Paris Climate Agreement here:
See the 5 year (2020) update on the Agreement here:
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An overview on the progress since the signing of the agreement in 2015 here.
A more data-oriented account of the progress since the signing here.
Climate Neutralilty
Becoming climate or carbon neutral by 2050 requires a transformation of energy systems & clean hydrogen
The European Commission has prepared the European Green Deal for a better future and is mobilizing all components of a sustainable transformation through its Green Deal.
The EU Green Deal
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Climate Neutralilty
Becoming climate or carbon neutral by 2050 requires a transformation of energy systems & clean hydrogen
The EU Green Deal
Circular Economy
Transforming the economy while protecting the environment through various sectors.
The European Commission has prepared the European Green Deal for a better future and is mobilizing all components of a sustainable transformation through its Green Deal.
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Sustainable Finance
Climate Neutralilty
Integrating sustainability considerations into financing policy. Can take the form of EU Taxonomy, green bonds, etc.
Becoming climate or carbon neutral by 2050 requires a transformation of energy systems & clean hydrogen
Circular Economy
Transforming the economy while protecting the environment through various sectors.
The EU Green Deal
The European Commission has prepared the European Green Deal for a better future and is mobilizing all components of a sustainable transformation through its Green Deal.
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The Current State of the World
The next modules will discuss how we take the acknowledgement of these issues into action within our companies.
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