ORGSTUDY 208 Study Guide - Final Guide: Supply Chain Network, Circular Economy, Corporate Social Responsibility
15 Jun 2018
School
Department
Course
Professor
Rachel Simon, Section 10
SWOT:
Internal- Strengths and Weaknesses (what a company can control)
Weaknesses- who else has similar weaknesses or faces similar risks from environmental change?
External- opportunities and threats
Opportunities- where is there a growing gap to create new solutions for environmental change? Reducing waste-vast bus. opportunity
Threats - where are environmental challenges creating broad threats to future business value?
Circular economy: closed loop of everything we’re using, each group has separate motives and objectives. Recycled materials
Principle 1: Preserve, enhance natural capital
Principle 2:Optimize resource yields
Principle 3: Foster system effectiveness
Triple Bottom Line: people, planet, profits
Economic- income, taxes, business climate factors, employment, job growth/Drivers: quality, costs, reliability
Environmental- natural resources, solid/ toxic waste, land use, land cover/Drivers: health/safety, air/water pollution, recycling, waste
Social- education, equity, social resources, health and well being, quality of life, social capital, unemployment rate, poverty, hours of training/Drivers: working hours,
sweatshops, human rights, low wages, working conditions
Tragedy of commons-hardin- open access, can’t restrict ppl from using a resource, ppl only concerned with their own short-term profits, who has
responsibility to oversee: new palgrave dict.: “when it is difficult and costly to exclude potential users from common-pool resources that yield finite flows of benefits.”
Commons: water, oil, adding pollution
Privatization - allocated a certain area, motivates people to think of their own owned property, proposal to address the tragedy
Stakeholders analysis- analysis of whose interest a business should take into consideration
Internal- employees, managers, owners, CEO, shareholders, distribution
External- suppliers, society, govt, environmental activists, creditors, shareholders, customers
Shareholders- raise funds, have concern how you’re using their money
Connecting Metrics: Cost: reduced use, changes in risk profile, operational efficiencies, changes in risk profile, energy consumption, waste reduction
Revenue- customer loyalty, competitive advantage, new markets, Waste and recycling, water impact
Employee- retention/satisfaction, employee health, safety
Innovation- cultural, internal processes
Reputation- customers, regulators
**find metrics that coordinate within a sustainability initiative**
Organizational Level Metrics: market (share price), accounting (returns on assets/sales/equity), perpetual (management surveys/ranking)
Public vs private- Public required to file quarterly statements, strict rules on elements of transparency, public stock trades
-private forces people to be responsible for their own actions and makes it difficult for them to “exploit” other people for their purposes
Limitations:regulations, curve innovation, stricter time on regulation
Global Supply chain- network of different companies involved in the production, handling, and/or distribution of a specific product.
Supply chain management- create meaningful expectations, confirm suppliers and agree on targets, measure supply chain performance, evaluate and improve
Sustainable goals- -no poverty, zero hunger, education, gender equality, clean water/ sanitation, affordable/ clean energy, work/economic growth,
industry/innovation/infrastructure, neglecting long-term effects to get short-term gains
Regulation-create pressure on companies to innovate, raise the likelihood that business innovations will be environmentally friendly, improve enviro quality when
costs of compliance are not offset Ex: water use level, Gov: international law vs domestic vs state, more formal enforcement, external pressure, deception?
Industry self-regulation- cooperation coordinate to set the rules of business competition; NOT regulated by the gov. Pushes towards innovation, pressure to
Participate, shareholder concerns=how it connects to profitability, potential strategies:internal checks and balances
Collective responsibility- respond to a shared threat of climate change; protect members from stakeholders, broader improvements.
Sustainability partners- Respect and humility, enabler role, authenticity, mutual benefits (connect others that share some needs), brokerage; Market based
instruments- environmental taxes or emissions trading
Pros: cost-effective and align environmental improvement goals w/ financial goals/ Cons: complicated to design initially
B-corp- -Pledge to social and environmental guidelines, sometimes neglect idea of getting profit, innovation integrated throughout company
Greenwashing- saying a company has more benefits but doesn’t actually help out
Natural economy- resource productivity -> circular economy -> solution-based business model ->reinvest in natural capital
Natural capitalism addresses problems by integrating ecological with economic goals, need to reinvest to replenish resources
Resource productivity- have opportunity b/c waste exists, search through available resources, using all resources efficiently
Social responsibility- friedman (dominate view in business) says businesses shouldn’t have social responsibility, focus on profit.
Mckinsey says business is there to address societal problems; redefining capitalism
Corporate social responsibility- the commitment of business to contribute to helping the environment. Ex: $ to non-profit
Solution based business model- creating business model based on solving an issue, solve world problems
Co-op- company owned by its employees, align employees and potential customers into decision making
Aligned concern- shared goals inspired by same benefits
License to operate- expectation that you’re maintaining a certain level in order to operate, treat employees with respect,meet minimum requirement
Reputation- measure how internal resources address community needs, sustainable partnerships, authenticity
Sustainable Oriented innovation: innovation is a way businesses bring about competitive advantage. Ex: technology, strategic capabilities, be different
*Moral obligation, hard for people to accept change, neglecting long term to get short term gains
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Internal- strengths and weaknesses (what a company can control) Circular economy: closed loop of everything we"re using, each group has separate motives and objectives. Economic- income, taxes, business climate factors, employment, job growth/drivers: quality, costs, reliability. Environmental- natural resources, solid/ toxic waste, land use, land cover/drivers: health/safety, air/water pollution, recycling, waste. Social- education, equity, social resources, health and well being, quality of life, social capital, unemployment rate, poverty, hours of training/drivers: working hours, sweatshops, human rights, low wages, working conditions. Tragedy of commons-hardin- open access, can"t restrict ppl from using a resource, ppl only concerned with their own short-term profits, who has responsibility to oversee: new palgrave dict. : when it is difficult and costly to exclude potential users from common-pool resources that yield finite flows of benefits. Privatization - allocated a certain area, motivates people to think of their own owned property, proposal to address the tragedy.
