Natural capital – Natural resources

Physical capital – Infrastructure – electricity, internet , roads

Human capital – people, skills

Financial capital – money, asset

Social capital – Goodwill among all stakeholders

Revolution of business

1) Agricultural revolution – Subsistence farming (grow to what you need). Agri rev changed this
style, and brought cash crops also into picture. Grow in excess. Concept of selling crops
came into picture. Ownership, like owning lands. People looked at natural resources and
generate income. Roads and transport.
2) Industrial revolution – Printing press and steam engine – transport. Changed Indian scenes
completely. World as a colony. Adam smith ( father of modern economics, laisez faire - let
me do). Migrations leading to slums which later became cities. Charles Darwin ( survival of
the fittest) competition, exploiting labour.Life expectancy went down.
Karl marx- workers rights, min wage, max hours of work, unions. Brought in the concept of
privatization and nationalisation. Asked the govt to do business.
3) Electricity – production increased. Communication. More time to work, shift system. 1 st time
people see natural resource as a major source of business and started using it without
mindfulness
4) Quality revolution – brought about focus on quality. Quality standards were set. Increased
cost of production through quality check and research. Guarantee and warranty came into
scene. Quality of workers and others increased and not just the product. Shifted to see what
customers want. Building the goodwill of the company, so companies became more
transperancy.
Sweat shop – place put in too much hard work, sweat. Small production unit, too many
people pushed in produce huge quantity. Poor working conditions. This started changing.
NIKE, NESTLE.
5) Internet – Hightened communication, opening up of market, marketing and promotion,
reduced face to face interaction. Paved way for security issues like hacking. Transparency.
Energy requirement increased. E commerce.
6) Pandemic – reduced fixed cost, hybrid model of work, disruption of supply chain,
(Evergreen ship – shows how vulnerable supply systems are)

Linear model – take resources, make products and waste is generated, you wave to deal with it.

Resources deplete, affluents from production.

Circular model – Reuse and reduce.

Business at risk today? –

(climate change) Natural disaster and rains, dispruts production. Expense without income.
Resources, particularly natural resources depleting. Resilience reduces.

General Motors – water recycle.

ESG, triple bottom lines.

Decent work, 9, 11, 12,-SDG

Sustainability is profitable

HW – VUCA link with sustainability

Volatility -

Uncertainity

Complexity

Ambiguity.

Based on the concept, the world is constantly changing. Your system has to be resilient to deal with
this.

Linked with operation, supplychain, strategy.

he particular meaning and relevance of VUCA often relates to how people view the conditions
under which they make decisions, plan forward, manage risks, foster change and solve
problems. In general, the premises of VUCA tend to shape an organization's capacity to:

1. Anticipate the Issues that Shape

2. Understand the Consequences of Issues and Actions
3. Appreciate the Interdependence of Variables
4. Prepare for Alternative Realities and Challenges
5. Interpret and Address Relevant Opportunities

Article on triple bottom line. Ways to measure them

Read the case

Case – Unilever

1)USLP – Unilever sustainable living plan

When Paul Polman took over as the CEO, he believed that businesses that includes being
responsible and make contributions to the society forms a good business model. He announced a
“compass vision” which aimed at at doubling the business while reducing environmental footprint
and creating positive social impact. This gave birth to USLP. Launched in 2010, this was the blueprint
for sustainable growth. 3 primary goals of USLP

1) to help a billion people improve their health and well-being,

2) to halve the environmental footprint of making and using Unilever products, and
3) to enhance the livelihoods of those in its value chain.

These three goals were broken into seven pillar which was further classified into more than 50
measurable targets.
2) how would it impact the following stakeholders – customers, employees, suppliers, distributors,
retailers, investors?

A) Customers – They wanted to touch the lives of a billion people through their products. This
included lifebuoy hand wash, pureit etc. this worked with enhancing the health of the people.

Unilever also brought sustainability programs to consumers by partnering with retail chains like
Tesco and Walmart. And it created entirely new initiatives such as “innovation eco-systems” based
on open innovation teams with academics and small and mediumsized enterprises

B) Employees – improved employee welfare, trained them to achieve such goals and create brand
love. They taught them the skill of making sustainability profitable

to drive fairness in the workplace. to advance opportunities for women.

Paul polman removed seniors

“The World’s Most In Demand Employers in 2014,” just behind Google and Apple, and ahead of
Microsoft, Facebook, and Amazon.

C) Supplier - Unilever’s “Partner to Win” program resulted in hundreds of agreements being signed
with scores of suppliers, many linked to sustainable sourcing.

A transformational agenda priority was to champion sustainable agriculture and the development of
smallholder farmers. Again, the company wanted others to join it in making sustainable agriculture
mainstream while enhancing the livelihoods of smallholder farmers.

Polman knew that USLP required a radical new way of thinking not only from Unilever’s 165,000
employees, but also by the 5 million people in its supply chain, and eventually by the 2 billion people
worldwide who used one of its products on any given day.

D) distributors – give chance to new and youn entrepreneurs in this field.

E) retailer - to develop inclusive business (e.g., positively affect 5.5 million people by improving the
livelihoods of smallholder farmers, small-scale retailers, and young entrepreneurs by 2020)

F) Investors - sync with consumer needs and the environment in which we operate, and take
responsibility for society as well as our employees, then the shareholder will also be rewarded.

Recognized by global bodies.

3)What were the stages in which the plan was implemented?

 Preparatory phase – brand imprint
 Compass vision 2009
 USLP launch – 2010
 Keith Weed to a new role he created on the Unilever Leadership Executive –
sustainability + marketing
 separate USLP report that was published annually beginning in 2011.
 In 2012, when Gail Klintworth was appointed Chief Sustainability Officer, she
identified several impediments to implementation
  In 2013, her focus led to three new USLP commitments - to drive fairness in the
workplace, to advance opportunities for women, and to develop inclusive business
 Since the outset, Unilever had understood that it could not achieve its bold objectives
by itself. work in partnership with governments, NGOs, suppliers and others to
address the big challenges that confront us all.
 This expansion of the sustainability agenda put new demands on the Chief
Sustainability Officer (CSO) role, and the decision was taken to divide it in two.
While most of the corporate sustainability group remained focused on the internal
agenda under Sue Garrard as Senior Vice President for Sustainable Business
Development, Jeff Seabright was recruited as the company’s new CSO.
 2014 - Dow Jones Sustainability Index, as well as by its position as number one on
the 2014 list of “Sustainability Leaders”

4)What were the final outcomes as of 2014?

RIPLE BOTTOM LINE

Enviromental, social and economic – three bottom lines. All three are linked.

Eg. Coca cola in Kerala – water

Everyone has impact – Neutral, +ve, -ve

Equality vs equity

Equity – Taxation based on wealth, extended maternity leave for women, reservation.

Equality – there is a line for everyone. All employyes get lunch coupons in the company.

3Ps

People+planet = bearable

People + Profit – viable

Planet + profit =

• companies should commit to focusing as much on social and environmental concerns as they
do on profits

• Instead of one bottom line, there should be 3 – Profit, People and Planet

• Seeks to guage corporates level of commitment to CSR

• Company can be managed in a way that not only makes money, but also improves people’s
lives and well being of planet

• Companies following TBL – ben and jerry, LEGO, Mars, Starbucks

Env measurable factors

1) water consumption
 2) waste production.
3) Electricity consumption - % of renewable vs non renewable
4) Fossil fuel consumption
5) Carbon foot print
6) AQI

Economic measurements

1) Tax
2) Revenue
3) Profit
4) MS

Social measurements

1) Attrition rate
2) Diversity and inclusion – Country is investing in women’s education, so it is sensible to
expect output. To kanow what women want, because youre also selling to women.
3) Labour force participation
4) Job satisfaction
5) Health
6) Consumer satisfaction
7) Brand image and goodwill

HW

Operating margins

Green washing – Nestle and cocoa sourcing.

Circular company

Article:

62 million tonne garbage – 45 million untreated

half-a-trillion dollars of economic value can be unlocked- circular company

A circular economy development path could significantly mitigate negative
environmental externalities
Reduce ghg emissions
Polluters pay
economy goes circular, they say, is by governments providing institutional
support, developing policies that incentivise industries and by extending tax
incentives initially.
Linear economy Vs Circular Economy
Linear economy
Take-make-dispose
Take resources from the environment to make. There are two things that happen out of
make, one is the consumer product and the other is by product. Then there is waste.
Consumer product is wasted by consumer and by product by producer.

Circular economy
Make use recycle
1. Open loop recycling
2. Closed loop recycling

Practice closed loop recycling

Rent more than sell
Create products with more shelf life

Circular economy makes more sense when the resources are finite. You can’t keep
exploiting. We will eventually runout. So, it makes more sense to reuse.

Three types of recycling

1. No recycling – linear economy. Goes to a landfill.
2. open loop recycling – take the waste and make a different product
3. Closed loop recycling – take the waste and make the same or similar product.
Becomes a raw material for the same. - glass
Closed loop should be preferred because in open loop, something is eventually left out
and goes to the landfill. In closed loop the time or chance of going to the landfill is low.
Companies:
Philips – medical equipment, takes from a country where it is no longer useful and take
it to a country that needs it. This lengthens the life of a product.
MUD Jeans
Renault
Fone bank
 Indian examples:
Wabag
Anthony waste
Ecoreco – E waste management company. WEEE Recycling facility encompasses
complete end-to-end processing of e-waste with zero landfill processes. integrated
reverse logistics network - we have our own fleet of trucks and containers as well as tie-
ups with number of leading logistics companies to support our initiative of returning
back the basic commodities to the respective industries without further withdrawal from
mines.

Innovation – process innovation and product innovation

HW

Modern Slavery - Modern slavery has been found in many industries, including
garment manufacturing, mining, and agriculture, and in many contexts, from
private homes to settlements for internally displaced people and refugees.
Modern slavery covers a set of specific legal concepts including forced labour,
debt bondage, forced marriage, slavery and slavery-like practices, and human
trafficking.
Essentially, it refers to situations of exploitation that a person cannot refuse or
leave because of threats, violence, coercion, deception, and/or abuse of power

The business of business is profit - freedman

H&M

7 pillars of a circular economy –

Health and wellbeing of humans and other species–

Toxic and hazardous substances are minimized and kept in highly controlled
cycles, and should ultimately be eliminated entirely.
This also includes taking care of social, physical and mental wellbeing of the
employees.
Exploiting workers in the name of circular economy is not actually that.
Polluting the environment and killing the wildlife in the name of production
and waste mgt is not circular economy. Yamuna – 2% in Delhi but 76%
pollution. Industrial effluents. Construction waste. Sewage and water
treatment plants – National Green tribunal.
We are interdependent on each other and cannot survive on our own. The
planet’s health is our health.

For example, successfully recycling e-waste by having people burn it over open fires is not
considered a “circular” activity despite the fact that it results in material recovery.

HW
Systems thinking – Everything operates with a system. Manmade systems,natural
systems,human living system.
System do not judge.
All systems are deeply interconnected. If you act on one system, it will impact systems
connected to it – Rippling effect
Positive – Coffee company. They want to make themselves sustainable. Work with farmers,
rwh, organic farming, etc.
Ripple effect – farmer lifestyle,
Negative – Udupi wet waste, lake, people falling ill.
DTC, malaria, WHO – Bornia
Bio mimicry – Mimic the natural environment. Design of ship=fish. Directly looking at it from
innovation. Windmill=school of fish
There are many factors that support sustainability
1) Customer demand
2) Lack of raw materials or resources
3) Supply chain disruption
4) Investor demands
5) Taxes and penalties
6) Incentives
Case questions
1. Facts of the case
2. Sustainability related information available in the case
 3. Should the CEO also take up sus res
4. Should an internal employee be promoted to CSO
5. Should a new CSO be hired
6. Should a consultant be hired

HW
Company with CSO and what they’ve done.

Amul
Selco india pvt ltd
Journeys with meaning
Sewa bank
Shri mahila gram udyog

CSR
Time poverty

Social enterprise
1) Work for social or environmental problem
2) There is not registeration as social enterprise. It is a company or cooperative societ,
etc
3) Usually have tech growth
Responsible business
Takes some responsibility towards its stakeholders.

Sustainable business vs responsible business

One is a wider scope and the other is part of it. Responsible business is a something that
responds to stakeholders immerdiately.
Every business does responds to some or the other stakeholder, like investor.

How to measure employee wellbeing – fair labour, flexible work hours, legal compliance for
employee wellbeing – maternity leave. Attrition rate, feedback. Therapist link ups. Mental
health leaves.
Diversity and inclusion : people who belong to minority groups are now becoming very well
educated. Using them as resource
Community
Environment
Operational practices

Responsible business Hierarchy

1) Fundamental responsibility – legal compliance. Maternity leave, canteen, creche,
minimum wage
2) CSR – some impact. Doing something for people as a volunteer process. Charity
oriented
3) Shared value strategies – Participation by stake holders. 2 way process. Eg. Farmers
are our stakeholder, help them in the growth. Not charity. We do something for
them and they do something for us
4) Social business model – social enterprise.
How do we do responsible business
1. Stakeholder mapping
2. Assessing materiality issues
3. Measuring triple bottom
4. Accepting voluntary responsibility
Generally 1 is not voluntary , in india 2 is also not voluntary. CSR is compulsory for business
above ceratin level of income.
Materiality assessment – assessment of issues that are common between you and that
particular stakeholder.
Who are we responsible to- who are our stakeholders.
Spider diagram – spokes diagram to map your stakeholders
Divide into internal and external stakeholders and work first on those who have high
interest and high influence
Then look into common issues to assess materiality.

HW: Corporate shared value

Eisenhower matrix
Way to measure things that are important and urgent

IMPORTANT : ESG mapping – value proposition of your company towards ESG

Creating responsibility strategy for business – following can e used

1. Map the stakeholders
2. Materiality assessment
3. Eisenhower example – which issue is most critical
4. Identify innovations that solve that issue
5. Empower stakeholders
6. Move from -ve impact to neutral to +ve
Resources

 Farmers and rubber plantations

 Water recycling units
 Brand equity
 Diverse workforce
 Apollo Sampark for business transactions
 Currently only around 9% of energy is from non-renewable sources of energy. This is
one area where the company is trying to become more sustainable.

Farmers – grow their own rubber, create a one family culture

Sampark – digital platform to do all business transaction
Sampark2 – tech enabled distribution system

Partners

 Dealers and suppliers – They have introduced APP. This also promotes them to be
more sustainable.
 Transportation company – try and use Electric vehicles
 Tata power – for EV charging stations
 Hotfut Sports Infrastructure Pvt Ltd – sports fields

Dealers – AVC
Transportation company
Tata power – EV charging stations
Passenger car companies – Seat, Volkswagen, ford, MNM, Mercedez
Hotfut sports infrastructure pvt ltd – sports fields

Apollo partnership pact – When they abide to these provisions, they become preferred
partners of Apollo
End of life – they collect their old tyres and repurpose rubber from its own tyres to create
the playing surface for the artificial football pitches
Anju – Partners and resources
Neha – Value proposition and channels
Sid - Revenue
Arpit – Responsible customers
Aarav- customer relations
Sudeepta - +ve -ve impact. End of life
Shivam - +ve and -ve impact
Sourabh and artira - cost
Corporate Social Responsibility
CSR in global context – Closer to responsible Business
Indian context - No exp that is business exp can be a CSR exp

CSR – Brand equity

We are called emerging nation because of low per capita income, income inequlity even
when our growth rate is above that of UK.
In an emerging nation – repo rates and other rates cannot be constant

HW : HDI by Amartya sen. HDI vs GDP

New model for CSR
Defining org purpose – CSR purpose
Opportunity assessment / need assessment – Nutrition need of locam community, Need to
teach about waste segregation.
Capacity building – Training workers, school staff, hire healthcare workers

Actual CSR work.

Governance – citizen engagement – Tell ppl, ad, Make sure other people can use the
program
Measure - impact
CII

History of CSR in india – still slightly based on charity

1800-1900 – Dynastic charity – depend on kings to set up hosps and stuff
1914-1947 – Support freedom struggle – provide money for this to INC anol. World wars
period
1947-1960
1961-1990 – Corporate trusts –
Next Tuesday 20th
CSR conversation.

Issue maturity
Depending on the urgency of the issue, company regards it
Stage 1 – latent
Seat belt in the back seat, is such an issue that is just beginning to be spoken about. Less
evidence. Issue is typically dismissed by business comm
15 yrs ago waste was a latent issue
Stage 2 - emerging
Issue is becoming a problem. Evidence is weak. Mental health is at this stage but COVID has
started moving it to consolidating for high end jobs. Company is experimenting.

Stage 3 - Consolidating
Business is beginning to address it . Like in waste mgt, two dustbins are put up, voluntary ,
collective action, regulations. Inovation starting

Stage 4 Institutionalised
Becomes a part of everyday life. Waste won’t be collected when not segregated in apts.
Compliance . Legislation

When a company learns an issue is imp how does an org react to it.
5 stages of development in an organisation
1. Defensive – Coca cola Palakkad ground water depletion. First they said no we did not
do anything. To protect their reputation
2. Compliance – Do what is legally necessary. Most small orgs in india are at this stage
only
3. Managerial – It is a compliance but we also need to start talking about it.
4. Strategic – Issue is core business strategy.
5. Civil – start working with large community. Till 4 it is inward. At this stage it is
outward.
Which stage depends on visibility as well.
India – coca cola
Global – ikea, starbucks – farmer associations, reusable cups,

Ethics/Business Ethics

5 theories of business ethics

Deontology - Are we doing the right thing?

eg. A king possessing tremendous resources and information for the benefit of his own
kingdowm, but does not share with those who need it on the outside. Should the king share
it or keep it.

Utilitarianism - Cost benefit analysis. What is the utlity, cost or benefit of the decision?
eg. A black officer was racially abused. If he reports it he cannot get promoted, if he doesnt
he can get promoted and make change from within.

Rights based - Any human rights at stake while making decision?

eg. Thanos snapping - 50% population he wanted to kill to save resources (human rights are
violated)

Fairness & Justice - Are all stakeholders in this decision being treated with justice?
eg. If you have to fire 500 people out of 10000.

Characters & Virtue - Are we behaving as a virtuous unit? Like we have a set of certain
values?
eg. fair and lovely. Notbeing able to accept dark skin therefore makes product and markets
to cure the color.

Why business ethics?

Reduces malpractices etc. (in PPT)
code of conduct - whistleblowers are protected. Something that businesses have to follow
and not try to discuss.

Ethical decision makers - govt, organizations, individuals (employee, managers etc.)

framework for ethical decision making:-

1. Find the facts of the case
2. Identify the ethical issues in the case
3. Identify choices or alternatives that you have
4. Map out all the stakeholders including yourself involved/impacted in the decision
5. Identify the impact on each stakeholder of the decisions
6. Take professional guidance if necessary
7. Choose a decision and take action
8. Monitor the impact of the action
Sustainability:
Meet the needs of the present without compromising the needs of the future
Systems thinking
Institutionalizing of Sustainability – summits – G summit, Kyoto protocol.

Dimensions of sustainability – 3BL – tool to measure ____ Q

Path to sustainability
Look at compliance as an opportunity and work
Value chain sustainability – Starts with producer and ends with the consumer.
Sustainable product design.
Sustainable business modelling
New practice platforms

3 steps of circular economy ____ Q

Responsible Business :

Creating responsibility strategy for business – following can e used _____ Q

1. Map the stakeholders

2. Materiality assessment
3. Eisenhower example – which issue is most critical
4. Identify innovations that solve that issue
5. Empower stakeholders
6. Move from -ve impact to neutral to +ve

Latent _ Emerging _ Consolidating _ Institutionalization --- Issue maturity Q

When a company learns an issue is imp how does an org react to it. Q

Develop Model for CSR ____ Q

Ethics

Sources of Ethical standards __ Q

Ethical Framework __Q

Corporate Shared Value – ___Q
Recreating products and markets – Can you identify new products and new markets where
the sustainable products can be sold. Insurance for a poor. Car sales vs rentals for us.
Redefine productivity in the value chain – From manufacturers to consumers through
suppliers, distributers and measure various factors like water consumption, electricity
consumption and
Enable local cluster development – Help grow local community when you grow. TATA.
Together we create value and enable development

Critical analysis
Problem solving
Unbiased
Empathy
Systems thinking