5.1 'I-radJj.

tio:na~ crost CfflCICIiU:;ies,

5~2 Vall[le ~oops t()inno"rntion~OOsed emcief:lt~es, S.31 The changing M!turc'ofperfOnnan.cie'

6.J Thestmt~c far81:t.

7J Them~tliMbilt,lY challge maiJU.: int;remenltal p.Bltks :8.'1 Bridg.mg the gapl; what: kind o.f change?

9.1 Skills of effective thang!C agcn.ts,

137 ~.42 ~,60 1.83 .227 246, 2.16,

4 .. 2 Sustainaibmty elem.entsl n 4 .• 3, SlLlStainaibHity S'MARTO' samp~e: risk management element. 118 S.l (~harat:::terisUcsof·prOO.uct eoo..efllclency ait C'anon~.49

5.2, H1!W.8l1 sustainiJbnlty orien.tadon, l58

6.l SltmtegiC sustainab~IUy: falseposturos, l82

"7. ~Oven:omjng Ih~litatinrts of :ineroml!ntaJ chaJl,g~ 2. [9

9. ~ g,tage~s in. ach'reving ,change: a.g;e,I:(,tM3st:e:r:y 268

~tet" Danpbyis DitSting,ulsbedPfioifHsm':"Uinirversity tlft~bologyt Sydney~, a posit jon be-took lip .in January 2000 :after :se.-wmteen yess as Pro.Fessor atth.e Auskatmn Graduate Sohoo~ of Managemtn1:. 'Dex,ter hDlds the degrees ofB.A(bGns)~ MEd(lums) and Dip Ed from. Sy,dney Uawemity and. PhD in. Sociology from. Harvard. Unj·wrshy. His main ~h .and ,eonsulliDlfnterests are iuco:rpomte sustainabUity1.th.e llIanagem.tmt of Qrg.animtlonal c:hang;e and human. resolln;e,m~8em~l1it. His .~h. is puol.ishcd in.ovcr .sevel~u:y aruc.les and elgn~n bOOb~ including;: :TRe Smtainab1e' COrpo.rafi01t.~ (Jrgan'iza.tional Renewal fir .4~U5trPlia (CCl--autho.re.d YriGb. Andrew OrUntns, AI:I,en and Unwin. Sydney. 1998);. Sus,tQi'namlity: :TI.e Corporate Challe~' of the XWf~ty-JiI'i.t CentulY (~diled w;iihomcm,. Allen and Un;wlil'l'. Sy&leyt. 2000).; and Beyo.nd ,the ,B'Qemctaries,: Leading Qna R'~al'lng the &ucce~ssf"l En'terprise (with .DotUS Stacre)~MeGtaw-HiUJ :Sydney~2,tXH.

Andrew GrU'fitlitl isaScnior Lecturer in Tec:l:JJnology and Ilmovatiian ~g;ement at the Unive:rsilty of Queens]and .. His areas ofre~arch inc,ludc-;:thc' management of coqroIa.te change MId. hm.ovation; .strategic i:ssues .re131tLng totnepmsuiJt of c:orpomtesustainabUlly; and e;.Con:une.Ke; and imtovalinn, Andfew~s dodorarte from: tileUntwrsily afNew SOUltn. Wales" :Sydney~examaned. me :n::iadD.nsh(p' betw'eeR organizali.onal sttitegit-s and. ind.ustry re-spon.sesto, competiIn:¥c threau. He has eeauthomd two books: 'The Sw;'ainQ1JII~' Corporali.on;" Orgtmizatitnl'al .Renewa;/ in ;4;u.s.rralia (eo'\aurdtored with_Dexter :[)wq)bJ. AUen.and UI'lI.w.ln", :Symu~y~ 199:8)amd Suslo£nability': The Corpomlt6: Challenge' 01 Ihe .1fNe_nty-jirst CenlUry (oo-edi~ed. with odlm~, .Allell: and. Unwint Sydney,. 2000).

Sozan.n.e BeDD. isR~h Assoei3!te- in the Corporate SustainabUhy PrQJec't at University of '[:CiCM.()I.ogy(lJTS)~ Sydn~. She: co-orojnates the unde-rgmduate teaci1in,g.pr;ogr:ammeJ 8mtainable!En.terprir~~. and. :le:ctures,

in 'tJmM_8A p~e artUTSin. Orgaoaadonal Change and ,An.al,ysis~ Suzann!! 'hnldsa Dacb.elar~s, degmein. e~&cndstryfrom. 'dle Unj,verslty of Sydney'81ld PQSt:.:gmduate quaIii'Catigns in. edueatiom.She also 'haMs a masted degree~ in :Scbmce and Society and a d.octomte in ScienQe and 'Teennol,ogy Studi~sfrom,ta.e Univmsity 'GfNew 8oudlWales1 Sydney_

e

' I

, ,

It is an,aocepted tenet of modem Ufe tRal'cbange! is ,conS1ant1, o:,f,gr:eater magnitlrldC ,and far l'esspredi«.ableiham,cvcr oo;fore.F'OfthisreasoD, :maI1agJ.ns, e:han.gt is acknowlledged asbein_g one! of tbe mos1:impo.rta.n.t and dill__cult: issue! [adDiS organlmtionstoday.lihis is wily both practUinn,ers, and ,acadcmk~,j1l! ever grow~ng numbers are ,seeldng '10 un~ (Jrgalzanonal cru.ge:. This is whythl'!:ra:ngC ,of,oompeting lhccriesiand advI,a: has neverbeen ,~ter andl1l(NermclR: P:llI1'2J1u,g,.

()vel' the :pattbundred )lears or so, there nay,e been many lteories and prese:ript~gns pu!tf:o:rward 'fOr un~ding mdmanaging ,choge:. A.rguablYt the :first person, to' at1c:m:p~to offer a systemadc ap,proacll to chan,g!mg o,rganiza,tiOilS 'was me or:i1gLnamr of Scientific MaliagC'nlcnt" Frederick Taylo,[.,Fmm the 19,3tls OBwmds.tthe O;lJlRtM) ReJl'ati.oM

schoo] attaoked Tay~ot~ ol1l,c-dimensJQ,na~ view ofbumannarure and his OYft .. emphwds on,ind'ividuals., In, a :paraUeil ,andeonn.eeted dewhJpmoo~, iinthe 1940s~ Kurt Leiwiru ,ereateapemaps. the most influenti:allapproach. ito lDanaging challls,e. Hb phnmed .approac,n to' Cha:Il.9~'!, encapsuJa1ed. in bis tm:eel",s,t~p'modl:l~ became tile: inspiration. for a generation. ,oifresearchers andpmc-ti,tio:n.el'S~ .maln.ly'-, th.o~gl1 .. 1iI'ot ex:c:lus_hrely ~in.ilieUSA. TMou,ghQl!ilt the: ].9:50s,Lew~n/swork was expanded OOyo,eB hisfoollS ons.maU gro-ups.a.nd eonflictre-.solution.lO create the O(g3:Jliza1Jloo De¥elopment (OD)m~ntFro,tl1I, the 1960" 'to tI!Ieeady t 9&tls", O,D eswbl ish..ed.its:elf as the dominanl Westernl appro:u::ch to organimUo:nall ,change~

Howevat by'~e ,eatly .198()s;.mo~ androore ~.Q~i2.!ltjQl!s f«und ftlemsdv,ccs having to ,eJhange rapidly and dfama!ti,Ci1l1.y~. ami s.o.metim.es:brutaUy~ inlh.e fa.ce oflle might of corporate Japan. In 8:llWn cJroum5mnCCS,maDY judged, the oonse:nsus';based .and i:ncJre,m.e\ntaUy focused QDapproae.tl. Wi oovin,e lit!tl.eto, offer. lost'eat\ a pl:etbom of ~ro~lc~esbegan ~o emq~ wbjclill. whIlst n{)t: easy to el:a.ssiry.c:~utd

i> Acknowledgements

ThIs beek is tile ,culmination ,orftwo years ofcoUaJboraJiv-e wmk between Ihe ·threeauthnrs. However;'l:t builds en more 'years of'their ooillectl,ve cxpedmces; :m consulting. reJeru'Ch, and teacbhl_J about organiutiona~

';'n.~ ..... • i "b' "t·, .;:I'

CJ,J.iij]ige~"J!Lnnanresol!lf,Cemanag.ement, 8OC.Jal mspo:nsll-l~lty ana

e.co]()gi,ca:~. sustainabiHty. :Eacb ,ofthe a-ethnfS 'wasinvohred, in, un~ertaiking: case stud~es), .~n.tenr.i,el\(rngtmmagers and c'ha:nlea:gents~ supervising and co-ordmating rescarcbsrudents~p~resenting conference ,papers and

b'I·;·;1.·· . aJl .'J A1Uh . .. ·ded·· h f

pU,~~ingj'oum .aruces,c _c~ I~~cese actlvtUes,provJ.'_,-, a 'I':i!C~~set 0.:

~~ ~I-;~,-, llint~' -Ib-":e """i.,...-· . ," ',', '!!', 'I :'l'Le: ~",:-:-.k_lnft!lirlll Ci~- '. iIt~':'"',::, n~50wt:t:5 'Ut~ _ we. av _ woIlWfi 00 ,10 ""I. ILIV1:.I. _ _ -l'-' .. _Clhaf,_ _ _ ._,. '\!'Ie

ackn~ledge the SJ?"lal. cwrtdhutl:o.D. played byS-uzatme 'Bcllilil.amd Phyllis Agius, im,tracking dQwn~ ~yn,thesiz:ing and. 'organiz,ing llU'ICh oftbe reseasch material which. appears invanous dmptcrs ..

~- ~

In wH.ting Uds 'book" the duee ,auilioneac,b '~ookprimarY' respo.nsibUity [Of partieuJarc-haptcrs: DcKIC:of for C~Itterl: Setting the age:n~ 'Cha!.prer 3: The slilsfaJningoorpomt.~on~ Chapter 8: The fmnsfonna!lJional.path and ,Chapter 9: Leadio,g: towards 5USwm.ibili.ty~ ,Andrew far ~ptctS~' Acbievi~g susmina!b~e e:fficiencies~ Chapter ,6\: SustalnabUity: 'the slmtegic advan •. G~'t and Chaptc,r 7: The ~incremental~ path; Su.zmmc for Chapel' .3; Thee driver:s, of cha:nge~ and Cha.pter 4: Compliance andbeyand.

Wbnewe~ook. ind!~v:i.d,uaJ .re,sponsiibiUtJ fo,r w.rinng these cha:pte~, me end pr(}dud: ·0,( each c.bapb~r \VaS dle ftsuIt of thewodt. of aU 'ibRe ,amn,ors and of' a. handrul of :sel~oo rev.icwcrs.,We express our particular gmdtwle to' aHtEwsc in the: ~Hons we stuwed. We thank them for the interview timctmd resemhmarena]tn.ey so g:enerously p:rovided and bope that we have giv;ena fai_f and ibalanoedvicw affuck Icofttributhm. to swtama1bili.ty •. Wt also, tbank other .researc·&ers wh.o.s.eptibl:~SBed wol1k we ha.ve accessed and summarized. wm.ercrCl~nt,

The follow.inS :peoplegave: tiS, valuable feedback.on ,drafts, of particular chapters:: .Ph.yUis Agj~ Lino, Caceavo, Groham Ca::wmagb.-.~

.Profesmr Gavun :h:lcIlonel], Professor' ~Scrge: MlJl{hi. Dr 'ltenatol Orsat10~ P,roFl!soor :lanP:a[m,er"Stlw1,Sm'l~" Pwfc:cSsm Doug Stace, ,Phil!", Sutton and Or~d,ee:,Woodside,. We-also w,is]1,roacknowledge the oonilIihutlo.n. of Jodie Benveniste arnd ~p,tdl:ip SU:lion. to. the (J,dgJnal Sll~tatn3biHty :Phase:

Model to_at'~ ha,~, l'n,QdUied ftu use in Uris: book. We are also, ia.debted foPiUip' iSQtton for ,pml'iding us with, the tenn~sqcal1]ing corporation ~ ~O'

d . ·-'·ft·~I: -~" - i,].l:~~~:~ ,'Ci;.,~"i:. -,~''''''I' -, .~ D', ,-c 1:3',';;"'-'- We'·, ""'~"""'l"':"y"" .I:."~,l!:: F""",'iI'k' ,escn~ UiIU' ,~~iI: s_~m.au,Le c. l1pO" ,u .... ,n •... ' "" •• _&' .... L ' u._~_ ... ,.~~ ~ __ • __ ,

Hubbard, of'Wortbwhile ~ProJt!Cts :Pty l~1dror :p8ll:I:issiou to q,uot0ifmmhl1s :S-IIlS~alnpbUi!t,ySM:ARlesJStem. We: are g:ra~end lO loseph AgJus ,for bis c4:eati'fi,t¥ ad cxceUern,t serviee "illprovidin,g the phase designs and gr31,mcs. for other muma,tio.RS.

Several ~u6mtioos lbve supporteddJis pwjiect Dexter .and. :S~n:zanDe niankProlf~$s.QI 'IQ1n,Blake~ Vice Cban.celhn of the University of Tech_n(lLt~ (urS)~ S'ydney, who sU,pponed the ,esrol,Usrunrmt of the

(:!,r.'~lt".A ... ",1l.I.,. r:; ... i'fitii'if"llt';I ...... Pro,i ..... t ... ~ "i"""~.l .... n...~"'r lB. ''''<!'i'tlk D·"''',''' 1PaC:hl!li[~

oW_,H'IIluQul .... ''"''''-'''':r''''''.~'A n1'u., .. 'J'""'''''oJ' ,~ ~."" •. - ,I!'~ _ .... , ". ~~~ .. - c. '_~~ ~ __ - "",'

of Business, UTSl!, and rrnfe~oF "ThOmas,CID;! Heac:\ SchooJI of

'M:,-. ,', ,.- .. - ''' .. UT··'IS' who" rovlded~ .. 1c,~ 't.-!e anoin su--;-tt. Andrew,

-- a.nagcnum"", . . ... ~ .P__ -- _ - . .uDI.i! g __ g -PJKl- .. - ...

ihalilksPmltS'SOfR1chard.Badham~ Dbedo( eflbe C'en,tre :ftu: Chang~ M~gemm1 at dIel Uni.versilJofWoUonG.Oll.,g,. and Pmfe-B( Lyn Grig& :Olwc,tor ,oldIe Techno] ogy and InIU.lWliticm Manag;e.mcllt: Cen!treat dle Unive.tSit~ of Quee,nstan.[L. fbrp:rovidillig time, space amdrecsoutcC'B to· pursue 'tblsprojec,t.,

·.PIlyUis Agius rea!lltyPCd and formatted. the fulllcxt: wim. pattetlcemd accoptcd 'CI,W: m_a:pymvis'iomiwiitli.good Iilumour" W'e: thatnk. ,h.e:r fhrgu.ing, be,l/and the can ,olfduty in bel,ping us meet ,our tigbt deadlines and [or the :marr-y ~lm.pFOVc~ments and. in,teUec'UmI, cDIn:mbuUons :s:hc. madre, to out' ~ndivLduaI 'cbaplel"Sl. WUhou!t he.r entbus;tummd. commitmenl the task. 0.1:" Ciompletmg tbi.s:boo.k would ,iw-ve 'been: mOlie onerous.

We ~ al$Od~¢plytndebted 10 'OW' f'anUlie&.DeXIter '\\lOllJlld tUee to, ~haDk lilts; partru:r ,FmncJn0frorher. in.terest and ,enthusiasrn .. FOf 'd1e. ,rQ'ject and hi~childn:n:Muk. KDiten ,iBid Roger fot their. good bumorAr in. 8.ccepring ma,t. '~.Dad~!;lwri.tins: another 'boOk",

Andrew Ul(JuldJ lIke to 'Utank .Jen.tnc for heT ,patren(le :and.liIndemtanding ,of 'Ch.e oonswn:~ng fbeus imolved inwritim,g:th.emHusaipt andfnI' tile laro~nigh.t: debates on. ,creating better societies. He would Ukc~o,dedicate these- cffo.rtsto, .iJen:ine and 'his ,cb]l.dnm~ Meg andLiam~ ,f" th~ pros~t orf.cread~o:g ~$ustaiDabJ,efuNm;.

Slt.lanncwould li:1{cto mant. her pamer~,tbe ·emrlrorilmcl1!ta] lawyer Andrew Ma.rUn!, for bis: oIliG~inS: ,advice and sU,ppon and 'fot his .0\VI!I.

1

Settl,:nlg the ageln,lda for ce:rpo,rate, :s,ustainalblility

'Wh:r ,~, .1II't'aInIIIII1tyt

,~_ .-'i .... a _ _. .... _ ~L...o ',IUII'" _""",,",,.,1 "'" UIII _,"_"~~.~

PIlaf' ,mOdIBfti 'Df.~ltlJ

a.1II .... II'CIIesMd the p1gse model

• ~i: Pbaes lin 'the development of cmponde .~Ity

Why corporate .. stainability?

We.aR! [a(jed wrlb an ,e'.ll:,traordlnary ~ittmt:ion. Ne'\!lerbef~n:!i .inthe .bistoO.ry oftihewoi,fd bas the viability ofmuell oftfte' Fi:[e oo,thls plu,et been usder threat. mom .humanity~liI.lWer before ba.v;e so uilany of tile world], ~peop,l:e eKperienced .sucbmaterla_1 wea_],th and 00 .many .otlle·Jslivcd.in aib,jiect poverty;, m~ before have se mmy had 'such in:lerestingandfUlfUling WQik and so man,), others: such d:eg~ing 'W().tkorno 'wolk at :all-lf weare to Uvehea]thy~ ·fuJ.fimng Uves on, this pJooet in iliem1turc) 'We' must find new liife.,.,affiDnjns va!ue~ and fu,rge .new 'patterns o:flilvlng: and. "WOrking together.

Th.e critical siruaUo,n iDWldcb 'We find ousselveshas beCD brought. ,aibout by mrUl.tip1:e ,ca_sDul one:i!m,poltaalt, 'contributing' fac~oJi~5the rise 'ofth.C' ,eo:rpomti.ol. Corpo.mtiions, are th.efundam,entalceUs: ,oif modem. eeonomle Ufcand thei.rph.enomenal success: intmnsfo:mdng tIle: eri\ reseurees into weaUh. has shapedtbe, physical and ooc;ial WOt~d .In :which \\lei ~Ive. Tbepowe:r.&l d)mamism of modem. orgaml7atjollSblts tmnsf(umed.na.tnre and ooc;icty~ The oenn:l Cljuestion to bearmverod j'n,thics1cenmry is, w&mh~r tt..e: cum!ntmod~d oif tIm Gorporarion n.eedsiO bcmoolfied In conmbute totbc t:ontiio!uioig. 'health ·oftbe'~at1I.et, 'lbe SlUVllyail, of humans and (}:~he"r cspet;::iesl tbe developmmt ofa just ood lilwt'lane :sooiety~ and. the C're;8itillR oC'work tbalt, brings dIgni,ty' Hd se!lf·fu161:menttGthose und.efitakin,g; tt And if so~ how?

In thi's; book.weargluc (hat sometr:adidonal u~nizationaJ values and Fonlls :are: not sastaiuJt1b[e 3_nt\ oo~ess signj.fic.arnJY'lI(:shaped" wru Icofl)_1jnue

to tmdermme ·the sustamabillitty of :societyand the p,lanet 'Corpo.rations nay,e contributed tOI the problenls outnned above and they must therefore 1i. .. 'rI'iI!J:Ijt ,~rf~tbe an - -rFortlunl)te!tl,;:itlil-:' _ ~""f;t . ,'''''i '. n is .. ,I'.....",d .

VIO' ~'. u___ _ __ swe~. ~ ".lJ~etr "",,~JJorm~_(L __ ~1;'i;:I_:y

underwaYt driven, in,part by the changing danae& ·of m.OOem, sociehy and ,alsobythe~.eaderS'ip' ,nf far-sighred and r:esponsible ~peo,p.1e 'Within. and outs~db corpomtioru; who see :ite: need _for change. -HCMeV,et:" for the transftr".--non to be Siucc-·-fiIlm- - '··'mre -Jb. .. ,~, t;,-,-,- . I*'> ,- .,-.; need"':

,_ _ \ _1JD.a__ ,_Q.. _. Je-SS ·t , __ any "",-,Ct _ c~~~g_ ag,en~ are _ _ __ eYi.

Someo:f1hc most imporrao,tchanges, in history :have beeaerested by people ofvisio:n, and, :im_aginaltion, who ''Wm'C :nnt 'ctJnlteon.tsimply~ofeact to ,eventsa!bout 'tRcm, bot: wenvisage:the possibility ofa differie-nt world and ~Ol In.iitlate actiolll robringtbe ne;wreanty~ntobe:ing., The,., were o:ft~n regarded as deli1:uied,or beretical, at~ th~tim.ebutlater ,celreli.lmted for their fb:resi,ghtand. ooumge. ~

This book: is w.rl:ttento iassb:tc&ang.e agoobi~o drive tlle necessary c.hangesfaster and fa.rtn.et' Wkilethereis time" We cJiscu:ss ~eyismros in tbe d"ba,te~ iaround me nature ofsustalnaibUity but not at !!reat length.

For those :m~re5;tedin t.!Iikmgd'tis ft:I1her we ,providerefeFenoes:to ~ome of the ~ey books and ad[c:tes w.bic-b at6;th.t focus oflhistllooretica:~ deba_te. Om view is;iliatthis debate win now be mcu1t,fi'Wt£WIy eQ'gage.d throu.:g'h, tie process of rooonstnmdog organizatilGnsso the--y support a sustainabJ,e w(u:hi The current cdislslstoolt_l;ge:Rl to wait' for consensus; we need. to start out on fhepatm towards SIllStainabiUty by ;g\enemttng;new mode~s glf o~t1oool actJion that 5uppol1socialrelat~on_shlp:s and. me natural worJd.Th.e:tlimetQ d~bate abstract theories IS :pam;. what we need newis to. ,e1llibed om 'weodesEn ,ac,tlon.and. reengage in. dialogue araund. wadUn.8 models,

In ourvicWj many COfJI<JFatlDM, need to ,change sIgnificantly' tile way they do, bus<mess,.However~ we are: not 3fgJ1im,gthat COqXlmt~cns. are the e.n.et.ny.We, are MglJing that :new Cir:cWDSUtooesrequlfe new responses, 'Ibc crises facedb:y' hlliJmanllty' can 'only beresolvedi by theme of coutertJ:d 'corpora1te aetiw.C'arpotationsan! instrunulnlts of SO¢Jal PlllpOse~ .funned. witb~n.societyto aecumpUsh usenl social objectives. :Iftaey dothis,1 they ·have. a lri:gntto .a.lcontlr:tu:ed existenQelt a li.cen-C~I tOI use· resources. and a respm1Si.ibiUty 10 pmchtoe sociaUybene;f[j,dalprooucts .andl senices.B'owever" i'fthey debase human. 'life" act with oon.temptforthe ,cIDnmunity Q:fwhid1, th~ are part~ptW1det' and .~nute the phmct~and produce ~bads ~ as,weIi. as 'goods\llieyfoneit81e:ir rip} to exist 'Tb~ became lUHii.UStah18b:bc; beca_ dl.eJ ,areunsustaining .. Th.e :single-ominded pursuit of s'hort,-ternl p.rofttab:iJlityfor sharebo!dersof owners doesnet justHy 3, '~,couldn't cue ]ess;·approacll. ;to peop.te and th.e plmllet

ResponsiJhle resource :s~mwrdshi.p is a uni.vexsal. requiremeliltFo[ ,all ofus~ i!ndiY.ld,uaUy and c0Ueeuve.ly~

This book e;ca.m:ines tile transltion~O' th~ 'Organ:lzallO'll ,of tlte' fu.t'Ufe; tha~ ftm.c'tionc5, as an i'nsttumenlt fortbefWfi.1ment oflbuman needs and the renewed aft]u:~,bi(lsp"bcrc.We delin,c lkey steps alon,g: tb,c way,and,indicate hmv to ~1lJlake an Incremental. tra:n8itionfi1>m step to step ort in some cases~a ttansfennartrv,e ]eap'to tihe:ruUy mstamable: ud sustarining rorporattCtfi .. 'This .isthemfooo: agujd~:b()ol{ for oorporate change'agclI1l'S .executhres" rrumag.er:s and mCmlber:s, of the work[orce;t exJtcmal consuUan:ts, community ,ac;tivists- woo are dissatisfied w~lb.tne status quoin ,organizational tife a:nd wb.!), drcamofa new organi7Jluona].\VOdd where Individua1:s are clleri.shel1.lhe ,oommunilty lss:upported and. ·tl}c nalt'Wal'MYi~ent Aawishcd as a :rn.atte:r ·{)i oom:se as the o:rg,anization. goes about its care business. Nothing le~sst~an this is: worthy Of(JUI buma:ni.ty;, Q1!Ir InteUigence mJd. 'OUf' ingenuIty ..

The disUncti"le eQntrib!!lltionOofthi~ boo:k is thart .~t:cQI1Ii!:cnttates QIl! how to implemonttfue c~ges. that make organizations moresU5tainlble mentSelves and ,also mo.re. smmningoftbe ,cnvitmnment; andwciety ..

rn doing fli8~ ·we. W:aw onl.eadins.-.edg~ Cihangethoory from management and the social SC,ICllCes. 'So thmbook. is; a.pracHcal oodinfornl.ed too.! for ereatinls'us~ble C<lrpor;lt~onsthatar,e, p~ ·o.fthe sobin ian. to' keep~Dg. a wor.fd tlmt i:sfit~o [ivc m. It IS en mv.ltation to yattlO' be part of the; f:uture solutioB ~a :responsUjte ~geDt ·ofc~rca·H"'e· cbange .

. Far those who,areprepared~o, act whh. :purp~ and dirediO'Th illl'e-Sbaping the organizational wod4&isis: pe~ps the most ,e;xcltia,g pedod in h.uman hist()ty~. Each, generaUon faces its chaUenges. B'ut ttLisand. tile n~Jt mtl' OF 'throo gcn.emtions wmbe dec~si¥e' in d~temlining whether more buman:sdnmhave ever lived IOn this planet ,can createtbe clll1aibontuve i:n5;ti:wt'ional 'fotm:S n,ccdedimt oursurv]Vll~ andmesmvtwl oflh.osc other pRciotls life ftn:m.~ WBO share thispitanci WJJtb us .. And berond SU.rvi.va~" to' Cli'CaW innovative :institutionalfUmlS tOI provide us all, and. :th.os:wno como' a~erus,wit.b .8 q.uaUty or eeonomie, social. and cU:~tw'3l Utc that ~ and de¥~lops our .nwnaa capabiUties.

That, is ih.c (!ooUen,gp 'we deaJl. with inlhis book. ,b~ m~ing thi$clmlJe;nge~ \Ve must 'redesiign many ofoUI Organim~'iODS .. So YtI'e' ~iln here wjlth. ,3 sbort: dlSCUSSlon oHhe evOlution oHheinstituUon which is tile focus ,o·f owrboo:t:th.e: corpornii.on. Because 'oo:rpomtions shru:-e SQlmatl)' commun.

:&:'''''''4ii'''i~'' <:IlfIod·. I ,,,,...,. .""""'l'IoPru"'''ii~.,,_c· ,tfO ' ··l·~·y··· .""·~,··""e-- -r';-'''I·· th 1'IlIt'i it~~n'

.U.Ui~JU!lIJW.iiI ~ •... iIIi.I,~I~ ,~.lr~,I",I'lj,.iili' -g-'~ __ ,~., "'"~ Jl~" ~:UiI;JIii\l, _ U~MI', ' __ ""'V.',r~I.'M~iI!U\ ..

~:I. an. ·imm.utablesocial [aM. But it: is ·n.o1: ~I.thas ahead, un<ierg,on.e

substantjai[ iOOetinj;tionsovcr time. How did the' oo:rporatio:narise:'lWhy waS.lt ,crealed!? How Ilaslt· ev,ol\"ed and bmv can we redoslglllt fur IUl!1li1an. and ecolQSit-aI~ta1rutb:mtY?

The C:iorpo,rat~OJl ,as, we knowittod!ay is a,re]atrvc1iy mod~minvcnUon but: .itsMstorlcal roots can 00 traced back to, tile Rontall, Emp,ioo.z The Romans ~r;eaHzed. that social ~insti.tutloflS\W.revldneJabloto turnover among members, and the ,founders" deat'h!L :So" to ensmre continuityJ,tltey adopted the ficHoll! ofan institution hav:inganldenH{y~, like a SUpta indivi~,ua11~ lndependent (lf:its members,. J

The: ,notion \Y3S, la'tier carried aeross into, Chureh canon~aw with an added, disdnctionmade ~tween ecc1es:iasticaland, !oilY corpamtiolls~. ECcles~tieal oOr.pQr~ti('JJl_S pm.:nuned, ~reUgiQUS: matters:; lay etlrpQra~iQns: were fOmledformliJoiidpalgOYemaflOc'~ Iwmufacfttriug and comnlcrce. This was, (h,e ,a,rigio ,of1he oonttneE.ial, oorporati.on, as '~'e: kliow it ~~y. Unde.r Bril]sh la~t ddsidcawas developedfurlther .. The Jaw eMhrined dIe .righl,oif'lh.e Im,nnarc:ll,to gran~a d18ml£ to .org:wriz:a:tiorllS! thataUowed thelDto~tC. The~igu.'s censentwas ;abso.lute,ly llCCeSSial)"to the :fOmJafi.on uf any c(upomtion and he Of she had the ngh~ ~o revoke the chru-tct at ,any tlme,

MMl:Y of the ,BritishseWlcment'S in~ North Amedca 'WCiOO: founded by ,coQJotaLtioJlSMder dmrt-ecnom the British.cro,w.n and. were def"onded 'by British -Uoops . For mstmlce~ C'e<;Uiu5 Calvert 'WaS gi¥ena charter by Cltadti 1'10 fGundthe oolony ofBaldmo.re.Fn .. remrn for a grant of'

4 ;m:jUion, heetarea efland he agreed, tupa)' thel king ~two' lndit:ul arrow,s: a year plm;oneftfth, of aqygoldo:r Sn,Vl~r diiscov,er:edt•4

AAe;r the foundaUon 0.( British colonies in Nortb Ameri.~, tb_~_s idod o~f ,c~nltrot by the .Britislil. crown bccamcil souree of ir:rita,tjQn.~Qo maRY Am.en.can. ·l,dUz.e.ns. The.~Boston Tea Party"'.~ wldeD .~parked.the Amedcao Revolutioll!t was 3. 'wti2leD protest ag{IJim, tb.c: ri,gnt, of tIl.e. ,Britj5h Parliament tofilv()ur' the East Illd~a Co.mpaniY~ in.corporated under chane,r fto:mthe B:rids'h, Crown~ byaUowIDg Uto sbip tenl 10 Amc:Hca witiJ.Ollt payin,g, im~po.rt dut~es, s .Argumeutsabout: the rilhlSo,f c,orporations are not 8. :lovll:l phenomenon ..

When :the Unil~ed ;Sta~es 'ooruly wo:n,its, ~ndepeliidence~ilS,c;itizens; were dete-1'!1llm.e:dI!Obring oorporaitionsunder the; control of their eleered

die, .r;esponslbiJl~i,ties of corporate c.i:tizens:hJp and those who, through ignoranee er design" Icontinue to expl(][tna:tw:a~ and human resources ..

. Are corporat.OM, evil?

11, .Is a.nai.w and s:implisd.c viewlllat ~ys corpomtions as. evH. by their Vet:yIil_8ture. Almostever.ytbiog we depend on in ourmedemwerld I;S, tbe product ofcorparatiuns -- from. the food. we eat? the c~otbes Vie wear te Ihepfumes and computemwc ·ue.to eommunicate with each. other .. We; ~nGt de wlthout coq>amtl.ans .. What is~mpomm~ h~er,. is that we exercise mfl:icienlt ,cone£tWe~ 'OIlOitfO] over the way in wh.ichthey operate toensuretb~ rSUpport: rather dlan dcsb'O)" the ec-nh)gicai and socIal fabric we· d~pemI Ott

Througlu:rut.the bistury of eoq:mrations:,. there bas been a contiinuin,8 debate over' mow the' corptlratioosnould 'be de:tine",in~JtJmng its legal constitotioo. Us ooc:ilall responsl.bUi1~es~, its ro;~e~n en1Viironmental. protection, andthe constituency towmeib it is; acoountaoJe. The core of this debate ,Coo be summa:ril.ed!as tne atgWnent about. whdller th-» :I"ole

of the corpomUon. is sim.plY 10 create ,financial weaUll. for ifSowners

orto cQntribute -mUle wen-being of a wider range ofstakehQ~ders~ includingth.e Ico.-mmImi:ty~, the env.iromnent and :rutur,e generart~ons;.

This debate has gone on. fur as longas 'modern' oorpomtio:ns nave existed and its hJst:my is too l(lD:g and comp,te\lt to trace here, -the; deoote bas .inc~ll~ forexamp,],t,fiierce Cdti.qlU~S; of the ],egiumacy ofdJ.t! ;slave: tmde;~ge o,f dte ~dM'k ;sataJlic mins'that 'blighted the: lives of wo:rkersand &wastaml Bng'Jand1: ~green .and.plea:san)t.land"~ large"lscaJe demoflSbationsagailnst fflclearpowerplaxts,;experimems: in. 'in.dusttiaJ de~tacy:t ~ the rise, of • gRell), ~}IDHticalpat1tle~s; orgaD_imti.onal, innovations sucb as ollie mplebottom lin.et';demonm:anoDS.against g~O'balizatiml. ,si.n~c corpomUoRs csme Ln,to,beLng" each generation has cmgagedl 'Yilth and. ,oondnued.mis debate whidl has ;sha,ped ,oorpotationsu 'We' know them foetal' ..

Most ~cnttya ~ritica1 issue :in the demte has been. the :rela:tiv,cvlrtucs of die prevailing noollberal. eeenomics f"eeono.micmtiGnansm') v,ers'\l!S ~stakeho~der cap.i;taUsm' • NeoHberwl eco:nom~cs; ~edbyttJ.eecono.mi5t MUton Fnednmll~ argues tlmttherol_e oltbe corpo.m~ioo_ is simp.lyro maximize .shol1.-1erm -RtuInsKl' silmenoMers .. Th'Cwidesprc::ad acceptance arrbies potn.tof viie,w~ espeeiaHy lly eOQnotnic ;advisers; tQgov;ern:me.nts~

environment and.fi.nuregeneranoM.. Neoolas8Ic.aleconomjcs~ based on. the: ex~ri~nQe o,fenvlr,onm.cmtal ptellt:y:,. gin assumes IMltmanr inputs (rom the Dartm"al. and.socaJ envlmnmenJ~ Uke air ad pareoltiog, me ~ goodS 'because ·dI.CR Ir'cino' fitmm~ill~ 'c:harg~~ (btlhem.. In. acMition~ the iG:oods ;and ;services. _produced. 'byth.efum ·are gi.W!.VClJue b'-liIt: th.e

~bads 'and ~d~ssefVi.ces·' ,crea:ted alt tic, same timeafC oien neilther idenUfied ~nof ,eos·ted! and charged. back. to me, c-o.rpo.mnn'R.1'he:msoomse· of bwsiness:and economics largely defines 011111 ,cool:ogical and comrnutlil.ty ~s;sue$ •. :He,nc~! in the: rAG'st ;s:I8JWfi.cam: business, dec.~sions"lhese Issues; ·ate ~gnnR!d~use they are invisihle - th.e decision makc:rs :ti!Jaw 110 culliUr8l' .i. . ..• .. : '~'i'1:..,_, " Z""'.~ ,-i~-~' tn- is res ,BR:~<J;rded as i:rrefewnt

ea,.egO.nes ,IDf tuem. 0(, . .upeJCe_,,~ ~e _stI !!;"~'I,II! • _

or o:fll'laQinal importance .. En fae:t, tbey IR of.increasing importance (or :survll'al of ~jfe '00 il'bjB :ptanet ;and fOfOOCiw. jlllstice ,andtlle;ymustbec:wne centml.~o stJaiwgi:e: dC(;~sion :making~ Wene~:a n~' 'econnnl~e$tha:t ~redetioe.s eeonouUc: eapi,tal.to' iineludeoatuR: andpeople:.'~(l

Sowc fate a. siJtuall.o.Jwbcte 'C(1q'1ODte dooi:si01il!mm:c~u. many Q.fwbom ,~wel1 inl~nncule.:1, ccul1munity~minded ·~ilt~~ makG: d:ecis.[on"!j,\\!!nich

1 ...• . ·L.~ • ..,i.·i·· d-I .. i.

CIllDlD Bnv:e •. y are ,1~:v,in8.a. catastropmC UDpaCl ,on. uilB p~anet aIL ,on wlC

gl.o11al eommumlty~ .Andtbey a.re: .s~.pponedin 1nispalte1in ·of declsion lmating: by' ·OO.nstUD.etS I~US) who.rerward them lzy'plJi[Cbw:ing goods ad. ,sen'.lces tie:)' pmaU{1c'.. 'We, are, :aU ,capu.ycs ·ofa cottmc of capltalisRl tbat, (WeT 200 years~ J1r06ucedrmormollJs 'wealth and an .increased standard ,of Uvin.g:fMlmge ntmibem of'peopl.e.Bftu the ICOSts, ·of oonthm:lngon.this 'path~ uswg: tn.e :SW1lo lI!Im.C'Ids~ .~ now·tbteatenillG: to dec$~ ~ur abUity to ase OlewcaWth [II the C('eatlon of healthy,. :sati.s(yin.g lives iand.also dlleatening:theviaibilhy of;sucb a life .rarfu!t~ generations,. Wie;Wwc beeeme, in the 'words of'Ttm. PlatmNy" "w,hHe eaters' .Iil .Most: of us, hiWe a ,stake IB our current clillrureand Me thrcatOlledi by OJ 5uDsiDItlal addqU0 of it-We :se:nsc that we' mtl54 .at~east: fot tnc: sake o:f our chij,dten and fhtuJic s.eDeratIQmi~ stut.lo do some thing,S difie.RnUy~ But the Stzc i'md the: ,comple:xtt¥ of the issues;QC daunting and we _.c,al;!lgbt Ina :spider web of'c,uhw;al categ:ori,cstna:t. c'QHtr:aln aur ,e:fI~cUvc action .. Change 1n_IBI bqjn with UcS, - 'but wherec-an.we begin?

Lillie ito[ ;nat thclie~.nsibili;ty fm ~S a.susl3inaibJc world. fall's 1~ly on tH'shouldcl:S o'fthe WMM'$ ,e:nmprises,. the~ 'e«Inomie ongi'l!leS ~nhe.Fu~.

r -

.... - _.

tIM ...... 1 -1:1

Maklnl'astart:

Whereve,rwe are :in society and the world of warl:, YJe can ,engage in the debate ,about:~'hemciial role oHhe ,corporation., All. o.fus can, loonhibul~ ~O' Q,redefini,uolill, of cOI}lOWJtions toensure the,ybecGRle major conbilbutom, to suminabilUy rather than social and emrimnmental predarom undermining a world fit to l~ve~ io.Ther.e '],g, s, hug,e oppoftmdty here to, ensure that aU CQ,lJ.MlnItlo:ns are j,nsttUmtMl!t.s nf'a 'broader social purpo,s,e than, thegenemrion of sb,i)n~teml, wealth, 'f~l:' :sharelW,ldelrS. Of course ,shareholders deserve a return. onth,eir inve,s,tment., A:swe shan. s:how~ in most cases thIS remm IS enhanced rather tOOn reduoed by susrtainablepracu.ccs.,We thiftl: it is v,~talthat oorplmtions 'l1Ulke profits - but: not at: theeost of destroying thefuture viabHity of society and the planet.

The nS'lainabHi.ty debalfllS curmn.tly being engaged in ~, ways; fim, 3!1:tfue 'lnteU.ec,hmi lcve~as the immensity ofcmr~tI!t unsustainabl,e pmctices Js documented,and \\'e aUooccme 3wa1e o,f~e, ,consldemble cha~lenges, ,o.f,cl1an___ging these practices;. secon<1.at: the~,evtdaf corpo,rare action, 38 hundre-dSof dumsands of meEnben 'I)fboartls of'mana:gement ~utives~, ~gm~ .supervjsors~membe~1S of :thewoli::furoc. eXitemal C{U1Sli.litam:s), non"sovernment o.rgmUzati.ons amdcommwUitygool!Jp8,take

a ntuU:itudeofacUoJJs on a d:ailly basisthat ]Impa:ct. on issues of social and en:\i'.lfomnenJtal susta~tmb~liity; tIilir~ at 1he level.of conswmplion~1lS we cOUectlVllii)' create tile :powerml. ,patterns offirum.cial Fewards that shape the ec.onol!n¥~ If we cont~nue to purchase products~at scrmv. (fur world with. 'waste ;andpoison our em1ronmen~ we cannot b.~amethe 'captains: ofmdlilSltry for·are mullwg destruction .. If'\.Ve ,ti:l!e, to nlakeoc:u:pomtions iBstrume.l1!ts ofren~l~ tn.!! debate mMtbe: enga,ged attbese three levels: through. fbrgi,ng, a.pmverfU~. new ideology that creates a ,compe]]jng: vision of a :fim:J.re world nit ,to live: in ,I and iB1p:.lemernUng; tbe pncti'cal actions 1'1, tbe workplace and in. Olltconswn:ptio.n patterns that will btiBg thev.Islon into bei~g ..

A newapprQath. to ecooomi.cs has developed in rec-ent .yeatS. to deal. with th.e fact. til at traditional economics. hasla:rg~Jy- taken the ecological and socia~. eJ!Wiromnent forgm:n.t!ed .. lbis .approoclJ. :recognrleS that eeonomles must mk.e, "natum!l. capital' (ecosystems~ and "sooial capi:tar O:e~atronshlp:s. beM'eetl people)inm ;rK!Cournt. Neoolassiml,ooonomies treats the econo.m,as a dosed s.ystem,wi:t.h :negative; :rcsults~ suchas poUution" tmat:ed as <lext.er:natrtie~'wmcll c_ ·be ignored.iin cc-QlWmlc terms. S.imilarly some of t~he wodd'S most criiUcalresouccs; arotre.a~ed as ·ftee~

5.1 'I-radJj.tio:na~ crost CfflCICIiU:;ies,

5~2 Vall[le ~oops t()inno"rntion~OOsed emcief:lt~es, S.31 The changing M!turc'ofperfOnnan.cie'

6 . .l Thestmt~c far81:t.

7J Them~tliMbilt,lY challge maiJU.: int;remenltal p.Blth.s :8.'1 Bridg.mg the gapl; what: kind o.f change?

9.1 Skills of effective thang!C agcn.ts,

137 ~.42 ~,60 1.83 .227 246, 2.16,

4 .. 2 Sustainaibmty elem.entsl n 4 .• 3, SlLlStainaibHity S'MARTO' samp~e: risk management element. 118 S.l (~harat:::terisUcsof·prOO.uct eoo..efllclency ait C'anon~.49

5.2, H1!W.8l1 sustainiJbnlty orien.tadon, l58

6.l SltmtegiC sustainab~IUy: falseposturos, l82

"7. ~Oven:omjng Ih~litatinrts of :ineroml!ntaJ chaJl,g~ 2. [9

9. ~ g,tage~s in. ach'reving ,change: a.g;e,I:(,tM3st:e:r:y 268

~tet" Danpbyis Di!Sting,ulsbedPfioifHsm':"Uinirversity tlft~bologyt Sydney~, a posit jon be-took lip .in January 2000 :after :se.-wmteen yess as Pro.Fessor atth.e Aus.katmn Graduate Sohoo~ of Managemtn1:. 'Dex,ter hDlds the degrees ofB.A(bGns)~ MEd(lums) and .Dip Ed from. Sy,dney Uawer:sity and. PhD in. Sociology from. Harvard. Unj·wrshy. His main ~h .and ,eonsulliDlfnterests are in.co:rpomte sustainabUity1.th.e llIanagem.tmt of Qrg.animtlonal c:hang;e and human. resolln;e,m~8em~l1it. His .~h. is puol.ishcd in.ovcr .sevel~u:y aruc.les and elgn~n bOOb~ including;: :TRe Smtainab1e' COrpo.rafi01t.~ (Jrgan'iza.tional Renewal fir .4~U5trPlia (CCl--autho.re.d YriGb. Andrew OrUntns, AI:I,en and Unwin. Sydney. 1998);. Sus,tQi'namlity: :TI.e Corporate Challe~' of the XWf~ty-JiI'i.t Centu1)J (~diled w;iihomcm,. Allen and Un;wlil'l'. Sy&leyt. 2000).; and Beyo.nd ,the ,B'Qemctaries,: Leading Qna R'~al'lng the &ucce~ssf"l En'terprise (with .DotUS Stacre)~MeGtaw-HiUJ :Sydney~2,tXH.

Andrew GrU'fitlitl isaScnior Lecturer in Tec:l:JJnology and Ilmovatiio:n ~g;ement at the Unive:rsilty of Queens]and .. His areas ofre~arch inc,ludc-;:thc' management of coqrol:a.te change MId. hm.ovation; .strategic i:ssues .re131tLng totnepmsuiJt of c:orpomtesustainabUlly; and e;.Con:une.Ke; and imtovalinn, Andfew~s dodorarte from: tileUntwrsily afNew SOUltn. Wales" :Sydney~examaned. me :n::iadD.nsh(p' betw'eeR organizali.onal sttitegit-s and. ind.ustry re-spon.sesto, competiIn:¥c threau. He has eeauthomd two books: 'The Sw;'ainQ1JII~' Corporali.on;" Orgtmizatitnl'al .Renewa;/ in ;4;u.s.rralia (eo'\aurdtored with_Dexter :[)wq)bJ. AUen.and UI'lI.w.ln", :Symu~y~ 199:8)amd Suslo£nability': The Corpomlt6: Challenge' 01 Ihe .1fNe_nty-jirst CenlUry (oo-edi~ed. with odlm~, .Allell: and. Unwint Sydney,. 2000).

Sozan.n.e BeDD. isR~h Assoei3!te- in the Corporate SustainabUhy PrQJec't at University of '[:CiCM.()I.ogy(lJTS)~ Sydn~. She: co-orojnates the unde-rgmduate teaci1in,g.pr;ogr:ammeJ 8mtainable!En.terprir~~. and. :le:ctures,

in 'tJmM_8A p~e artUTSin. Orgaoaado.nal Change and ,An.al,ysis~ Suzann!! 'hnldsa Dacb.elar~s, degmein. e~&cndstryfrom. 'dle Unj,verslty of Sydney'81ld PQSt:.:gmduate quaIii'Catigns in. edueatiom.She also 'baMs a masted degree~ in :Scbmce and Society and a d.octomte in ScienQe and 'Teennol,ogy Studi~sfrom,ta.e Univmsity 'GfNew 8oudlWales1 Sydney_

e

' I

, ,

It is an,aocepted tenet of modem Ufe tRal'cbange! is ,conS1ant1, o:,f,gr:eater magnitlrldC ,and far l'esspredi«.ableiham,cvcr oo;fore.F'OfthisreasoD, :maI1agJ.ns, e:han.gt is acknowlledged asbein_g one! of tbe mos1:impo.rta.n.t and dill__cult: issue! [adDiS organlmtionstoday.lihis is wily both practUinn,ers, and ,acadcmk~,j1l! ever grow~ng numbers are ,seeldng '10 un~ o:rgalzanonal cru.ge:. This is wh.ythl'!:ra:ngC ,of,oompeting lhccriesiand advI,a: has neverbeen ,~ter andl1l(NermclR: P:llI1'2J1u,g,.

()vel' the :pattbundred )lears or so, there nay,e been many lteories and prese:ript~gns pu!tf:o:rward 'fOr un~ding mdmanaging ,choge:. A.rguab.IYt the :first person, to' at1c:m:p~to offer a systemadc ap,proacll to chan,g!mg o,rganiza,tiOilS 'was me or:i1gLnamr of Scientific MaliagC'nlcnt" Frederick Taylo,[.,Fmm the 19,3tls OBwmds.tthe O;lJlRtM) ReJl'ati.oM

schoo] attaoked Tay~ot~ ol1l,c-dimensJQ,na~ view ofbumannarure and his OYft .. emphwds on,ind'ividuals., In, a :paraUeil ,andeonn.eeted dewhJpmoo~, iinthe 1940s~ Kurt Le;wiru ,ereateapemaps. the most influenti:allapproach. ito lDanaging challls,e. Hb phnmed .approac,n to' Cha:Il.9~'!, encapsuJa1ed. in bis tm:eel",s,t~p'modl:l~ became tile: inspiration. for a generation. ,oifresearchers andpmc-ti,tio:n.el'S~ .maln.ly'-, th.o~gl1 .. 1iI'ot ex:c:lus_hrely ~in.ilieUSA. TMou,ghQl!ilt the: ].9:50s,Lew~n/swork was expanded OOyo,eB hisfoollS o.ns.maU gro-up:s.a.nd eonflictre-.solution.lO create the O(g3:Jliza1Jloo De¥elopment (OD)m~ntFro,tl1I, the 1960" 'to tI!Ieeady t 9&tls", O,D eswbl ish..ed.its:elf as the dominanl Westernl appro:u::ch t:o organimUo:nall ,change~

Howevat by'~e ,eatly .198()s;.mo~ androore ~.Q~i2.!ltjQl!s f«und ftlemsdv,ccs having to ,eJhange rapidly and dfama!ti,Ci1l1.y~. ami s.o.metim.es:brutaUy~ inlh.e fa:.ce oflle might of corporate Japan. In 8:llWn cJroum5mnCCS,maDY judged, the oonse:nsus';based .and i:ncJre,m.e\ntaUy focused QDapproae.tl. Wi oovin,e lit!tl.eto, offer. lost'eat\ a pl:etbom of ~ro~lc~esbegan ~o emq~ wbjclill. whIlst n{)t: easy to el:a.ssiry.c:~utd

i> Acknowledgements

ThIs beek is tile ,culmination ,orftwo years ofcoUaJboraJiv-e wmk between Ihe ·threeauthnrs. However;'l:t builds en more 'years of'their ooillectl,ve cxpedmces; :m consulting. reJeru'Ch, and teacbhl_J about organiutiona~

';'n.~ ..... • i "b' "t·, .;:I'

CJ,J.iij]ige~"J!Lnnanresol!lf,Cemanag.ement, 8OC.Jal mspo:nsll-l~lty ana

e.co]()gi,ca:~. sustainabiHty. :Eacb ,ofthe a-ethnfS 'wasinvohred, in, un~ertaiking: case stud~es), .~n.tenr.i,el\(rngtmmagers and c'ha:nlea:gents~ supervising and co-ordm.ating rescarcbsrudents~p~resenting conference ,papers and

b'I·;·;1.·· . aJl .'J A1Uh . .. ·ded·· h f

pU,~~ingj'oum .aruces,c _c~ I~~cese actlvtUes,provJ.'_,-, a 'I':i!C~~set 0.:

~~ ~I-;~,-, llint~' -Ib-":e """i.,...-· . ," ',', '!!', 'I :'l'Le: ~",:-:-.k_lnft!lirlll Ci~- '. iIt~':'"',::, n~50wt:t:5 'Ut~ _ we. av _ woIlWfi 00 ,10 ""I. ILIV1:.I. _ _ -l'-' .. _Clhaf,_ _ _ ._,. '\!'Ie

ackn~ledge the SJ?"lal. cwrtr.ihutl:o.D. played byS-uzatme 'Bcllil1l.am.d Phyllis Agius, im,tracking dQwn~ ~yn,thesiz:ing and. 'organiz,ing llU'ICh oftbe reseasch material which. appears invanous dmptcrs ..

~- ~

In wH.ting Uds 'book" the duee ,auilioneac,b '~ookprimarY' respo.nsibUity [Of partieu1arc-ha.ptcrs: DcKIC:of for C~Itterl: Setting the age:n~ 'Cha!.prer 3: The slilsfaJningoorpomt.~on~ Chapter 8: The fmnsfonna!lJional.path and ,Chapter 9: Leadio,g: towards 5USwm.ibili.ty~ ,Andrew far ~ptctS~' Acbievi~g susmina!b~e e:fficiencies~ Chapter ,6\: SustalnabUity: 'the slmtegic advan •. G~'t and Chaptc,r 7: The ~incremental~ path; Su.zmmc for Chapel' .3; Thee driver:s, of cha:nge~ and Cha.pter 4: Compliance andbeyand.

Wbnewe~ook. ind!~v:i.d,uaJ .re,sponsiibiUtJ fo,r w.rinng these cha:pte~, me end pr(}dud: ·0,( each c.bapb~r \VaS dle ftsuIt of thewoa:k. of aU 'ibRe ,amn,or:s and of' a. handrul of :sel~oo rev.icwcrs.,We express our particular gmdtwle to' aHtEwsc in the: ~Hons we stuwed. We thank them for the interview timctmd resemhmarena]tn.ey so g:enerously p:rovided and bope that we have giv;ena fai_f and ibalanoedvicw affuck Icofttributh:m. to swtama1bili.ty •. Wt also, tbank other .researc·&ers wh.o.s.eptibl:~SBed wol1k we ha.ve accessed and summarized. wm.ercrCl~nt,

The follow.inS :peoplegave: tiS, valuable feedback.on ,drafts, of particular chapters:: .Ph.yUis Agj~ Lin.o, Caceavo, Groham Ca::wmagb.-.~

.Profesmr Gavun :h:lcI)onel], Professor' ~Scrge: MlJl{hi. Dr 'ltenatol Orsat10~ P,roFl!soor :lanP:a[m,er"Stlw1,Sm'l~" Pwfc:cSsm Doug Stace, ,Phil!", Sutton and Or~d,ee:,Woodside,. We-also w,is]1,roacknowledge the oonilIihutlo.n. of Jodie Benveniste arnd ~p,tdl:ip SU:lion. to. the (J,dgJnal Sll~tatn3biHty :Phase:

Model to_at'~ ha,~, l'n,QdUied ftu use in Uris: book. We are also, ia.debted foPiUip' iSQtton for ,pml'iding us with, the tenn~sqcal1]ing corporation ~ ~O'

d . ·-'·ft·~I: -~" - i,].l:~~~:~ ,'Ci;.,~"i:. -,~''''''I' -, .~ D', ,-c 1:3',';;"'-'- We'·, ""'~"""'l"':"y"" .I:."~,l!:: F""",'iI'k' ,escn~ U!IU' ,~~iI: s_~m.au,Le c. l1pO" ,u .... ,n •... ' "" •• _&' .... L ' u._~_ ... ,.~~ ~ __ • __ ,

Hubbard, of'Wortbwhile ~ProJt!Cts :Pty l~1dror :p8ll:I:issiou to q,uot0ifmmhl1s :S-IIlS~alnpbUi!t,ySM:ARlesJStem. We: are g:ra~end lO loseph AgJus ,for bis c4:eati'fi,t¥ ad cxceUern,t serviee "illprovidin,g the phase designs and gr31,mcs for other muma,tio.RS.

Several ~u6mtioos lbve supporteddJis pwjiect Dexter .and. :S~n:zanDe niankProlf~$s.QI 'IQ1n,Blake~ Vice Cban.celhn of the University of Tech_n(lLt~ (urS)~ S'ydney, who sU,pponed the ,esrol,Usrunrmt of the

(:!,r.'~lt".A ... ",1l.I.,. r:; ... i'fitii'if"llt';I ...... Pro,i ..... t ... ~ "i"""~.l .... n...~"'r lB. ''''<!'i'tlk D·"''',''' 1PaC:hl!li[~

oW_,H'IIluQul .... ''"''''-'''':r''''''.~'A n1'u., .. 'J'""'''''oJ' ,~ ~."" •. - ,I!'~ _ .... , ". ~~~ .. - c. '_~~ ~ __ - "",'

of Business, UTSl!, and rrnfe~oF "ThOmas,CID;! Heac:\ SchooJI of

'M:,-. ,', ,.- .. - ·It .. UT··'IS' who" rovlded~ .. 1c,~ 't.-!e anoin su--;-tt. Andrew,

-- a.nagcnum"", . . ... ~ .P__ -- _ - . .uDI.i! g __ g -PJKl- .. - ...

ihalilksPmltS'SOfR1chard.Badham~ Dbedo( eflbe C'en,tre :ftu: Chang~ M~gemm1 at dIel Uni.versilJofWoUonG.Oll.,g,. and Pmfe-B( Lyn Grig& :Olwc,tor ,oldIe Techno] ogy and InIU.lWliticm Manag;e.mcllt: Cen!treat dle Unive.tSit~ of Quee,nstan.[L. fbrp:rovi.dillig time, space amdrecsoutcC'B to· pursue 'tblsprojec,t.,

·.PIlyUis Agius rea!lltyPCd and formatted. the fulllcxt: wim. pattetlcemd accoptcd 'CI,W: m_a:pymvis'iomiwiitli.good Iilumour" W'e: thatnk. ,h.e:r fhrgu.ing, be,l/and the can ,olfduty in bel,ping us meet ,our tigbt deadlines and [or the :marr-y ~lm.pFOVc~ments and. in,teUec'UmI, cDIn:mbuUons :s:hc. madre, to out' ~ndivLduaI 'cbaplel"Sl. WUhou!t he.r entbus;tummd. commitmenl the task. 0.1:" Ciomp.letm.g tbi.s:boo.k would ,iw-ve 'been: mOlie onerous.

We ~ al$Od~¢plytndebted 10 'OW' f'anUlie&.DeXIter '\\!QllJlld tUee to, ~haDk lilts; partru:r ,FmncJn0frorher. in.terest and ,enthusiasrn .. FOf 'd1e. ,rQ'ject and hi~childn:n:Muk. KDiten ,iBid Roger fot their. good bumorAr in. 8.ccepring ma,t. '~.Dad~!;lwri.tins: another 'boOk",

Andrew Ul(JuldJ lIke to 'Utank .Jen.tnc for heT ,patren(le :and.liIndemtanding ,of 'Ch.e oonswn:~ng fbeus imolved inwritim,g:th.emHusaipt andfnI' tile laro~nigh.t: debates on. ,creating better societies. He would Ukc~o,dedicate these- cffo.rtsto, .iJen:ine and 'his ,cb]l.dnm~ Meg andLiam~ ,f" th~ pros~t orf.cread~o:g ~$ustaiDabJ,efuNm;.

Slt.lanncwould li:1{cto mant. her pamer~,tbe ·emrlrorilmcl1!ta] lawyer Andrew Ma.rUn!, for bis: oIliG~inS: ,advice and sU,ppon and 'fot his .0\VI!I.

1

Settl,:nlg the ageln,lda for ce:rpo,rate, :s,ustainalblility

'Wh:r ,~, .1II't'aInIIIII1tyt

,~_ .-'i .... a _ _. .... _ ~L...o ',IUII'" _""",,",,.,1 "'" UIII _,"_"~~.~

PIlaf' ,mOdIBfti 'Df.~ltlJ

a.1II .... II'CIIesMd the p1gse model

• ~i: Pbaes lin 'the development of cmponde .~Ity

Why corporate .. stainability?

We.aR! [a(jed wrlb an ,e'.ll:,traordlnary ~ittmt:ion. Ne'\!lerbef~n:!i .inthe .bistoO.ry oftihewoi,fd bas the viability ofmuell oftfte' Fi:[e oo,thls plu,et been usder threat. mom .humanity~liI.lWer before ba.v;e so uilany of tile world], ~peop,l:e eKperienced .sucbmaterla_1 wea_],th and 00 .many .otlle·Jslivcd.in aib,jiect poverty;, m~ before have se mmy had 'such in:lerestingandfUlfUling WQik and so man,), others: such d:eg~ing 'W().tkorno 'wolk at :all-lf weare to Uvehea]thy~ ·fuJ.fimng Uves on, this pJooet in iliem1turc) 'We' must find new liife.,.,affiDnjns va!ue~ and fu,rge .new 'patterns o:flilvlng: and. "WOrking together.

Th.e critical siruaUo,n iDWldcb 'We find ousselveshas beCD brought. ,aibout by mrUl.tip1:e ,ca_sDul one:i!m,poltaalt, 'contributing' fac~oJi~5the rise 'ofth.C' ,eo:rpomti.ol. Corpo.mtiions, are th.efundam,entalceUs: ,oif modem. eeonomle Ufcand thei.rph.enomenal success: intmnsfo:mdng tIle: eri\ reseurees into weaUh. has shapedtbe, physical and ooc;ial WOt~d .In :which \\lei ~Ive. Tbepowe:r.&l d)mamism of modem. orgaml7atjollSblts tmnsf(umed.na.tnre and ooc;icty~ The oenn:l Cljuestion to bearmverod j'n,thics1cenmry is, w&mh~r tt..e: cum!ntmod~d oif tIm Gorporarion n.eedsiO bcmoolfied In conmbute totbc t:ontiio!uioig. 'health ·oftbe'~at1I.et, 'lbe SlUVllyail, of humans and (}:~he"r cspet;::iesl tbe developmmt ofa just ood lilwt'lane :sooiety~ and. the C're;8itillR oC'work tbalt, brings dIgni,ty' Hd se!lf·fu161:menttGthose und.efitakin,g; tt And if so~ how?

In thi's; book.weargluc (hat sometr:adidonal u~nizationaJ values and Fonlls :are: not sastaiuJt1b[e 3_nt\ oo~ess signj.fic.arnJY'lI(:shaped" wru Icofl)_1jnue

to tmdermme ·the sustamabillitty of :societyand the p,lanet 'Corpo.rations nay,e contributed tOI the problenls outnned above and they must therefore 1i. .. 'rI'iI!J:Ijt ,~rf~tbe an - -rFortlunl)te!tl,;:itlil-:' _ ~""f;t . ,'''''i '. n is .. ,I'.....",d .

VIO' ~'. u___ _ __ swe~. ~ ".lJ~etr "",,~JJorm~_(L __ ~1;'i;:I_:y

underwaYt driven, in,part by the changing danae& ·of m.OOem, sociehy and ,alsobythe~.eaderS'ip' ,nf far-sighred and r:esponsible ~peo,p.1e 'Within. and outs~db corpomtioru; who see :ite: need _for change. -HCMeV,et:" for the transftr".--non to be Siucc-·-fiIlm- - '··'mre -Jb. .. ,~, t;,-,-,- . I*'> ,- .,-.; need"':

,_ _ \ _1JD.a__ ,_Q.. _. Je-SS ·t , __ any "",-,Ct _ c~~~g_ ag,en~ are _ _ __ eYi.

Someo:f1hc most imporrao,tchanges, in history :have beeaerested by people ofvisio:n, and, :im_aginaltion, who ''Wm'C :nnt 'ctJnlteon.tsimply~ofeact to ,eventsa!bout 'tRcm, bot: wenvisage:the possibility ofa differie-nt world and ~Ol In.iitlate actiolll robringtbe ne;wreanty~ntobe:ing., The,., were o:ft~n regarded as deli1:uied,or beretical, at~ th~tim.ebutlater ,celreli.lmted for their fb:resi,ghtand. ooumge. ~

This book: is w.rl:ttento iassb:tc&ang.e agoobi~o drive tlle necessary c.hangesfaster and fa.rtn.et' Wkilethereis time" We cJiscu:ss ~eyismros in tbe d"ba,te~ iaround me nature ofsustalnaibUity but not at !!reat length.

For those :m~re5;tedin t.!Iikmgd'tis ft:I1her we ,providerefeFenoes:to ~ome of the ~ey books and ad[c:tes w.bic-b at6;th.t focus oflhistllooretica:~ deba_te. Om view is;iliatthis debate win now be mcu1t,fi'Wt£WIy eQ'gage.d throu.:g'h, tie process of rooonstnmdog organizatilGnsso the--y support a sustainabJ,e w(u:hi The current cdislslstoolt_l;ge:Rl to wait' for consensus; we need. to start out on fhepatm towards SIllStainabiUty by ;g\enemttng;new mode~s glf o~t1oool actJion that 5uppol1socialrelat~on_shlp:s and. me natural worJd.Th.e:tlimetQ d~bate abstract theories IS :pam;. what we need newis to. ,e1llibed om 'weodesEn ,ac,tlon.and. reengage in. dialogue araund. wadUn.8 models,

In ourvicWj many COfJI<JFatlDM, need to ,change sIgnificantly' tile way they do, bus<mess,.However~ we are: not 3fgJ1im,gthat COqXlmt~cns. are the e.n.et.ny.We, are MglJing that :new Cir:cWDSUtooesrequlfe new responses, 'Ibc crises facedb:y' hlliJmanllty' can 'only beresolvedi by theme of coutertJ:d 'corpora1te aetiw.C'arpotationsan! instrunulnlts of SO¢Jal PlllpOse~ .funned. witb~n.societyto aecumpUsh usenl social objectives. :Iftaey dothis,1 they ·have. a lri:gntto .a.lcontlr:tu:ed existenQelt a li.cen-C~I tOI use· resources. and a respm1Si.ibiUty 10 pmchtoe sociaUybene;f[j,dalprooucts .andl senices.B'owever" i'fthey debase human. 'life" act with oon.temptforthe ,cIDnmunity Q:fwhid1, th~ are part~ptW1det' and .~nute the phmct~and produce ~bads ~ as,weIi. as 'goods\llieyfoneit81e:ir rip} to exist 'Tb~ became lUHii.UStah18b:bc; beca_ dl.eJ ,areunsustaining .. Th.e :single-ominded pursuit of s'hort,-ternl p.rofttab:iJlityfor sharebo!dersof owners doesnet justHy 3, '~,couldn't cue ]ess;·approacll. ;to peop.te and th.e plmllet

ResponsiJhle resource :s~mwrdshi.p is a uni.vexsal. requiremeliltFo[ ,all ofus~ i!ndiY.ld,uaUy and c0Ueeuve.ly~

This book e;ca.m:ines tile transltion~O' th~ 'Organ:lzallO'll ,of tlte' fu.t'Ufe; tha~ ftm.c'tionc5, as an i'nsttumenlt fortbefWfi.1ment oflbuman needs and the renewed aft]u:~,bi(lsp"bcrc.We delin,c lkey steps alon,g: tb,c way,and,indicate hmv to ~1lJlake an Incremental. tra:n8itionfi1>m step to step ort in some cases~a ttansfennartrv,e ]eap'to tihe:ruUy mstamable: ud sustarining rorporattCtfi .. 'This .isthemfooo: agujd~:b()ol{ for oorporate change'agclI1l'S .executhres" rrumag.er:s and mCmlber:s, of the work[orce;t exJtcmal consuUan:ts, community ,ac;tivists- woo are dissatisfied w~lb.tne status quoin ,organizational tife a:nd wb.!), drcamofa new organi7Jluona].\VOdd where Individua1:s are clleri.shel1.lhe ,oommunilty lss:upported and. ·tl}c nalt'Wal'MYi~ent Aawishcd as a :rn.atte:r ·{)i oom:se as the o:rg,anization. goes about its care business. Nothing le~sst~an this is: worthy Of(JUI buma:ni.ty;, Q1!Ir InteUigence mJd. 'OUf' ingenuIty ..

The disUncti"le eQntrib!!lltionOofthi~ boo:k is thart .~t:cQI1Ii!:cnttates QIl! how to implemonttfue c~ges. that make organizations moresU5tainlble mentSelves and ,also mo.re. smmningoftbe ,cnvitmnment; andwciety ..

rn doing fli8~ ·we. W:aw onl.eadins.-.edg~ Cihangethoory from management and the social SC,ICllCes. 'So thmbook. is; a.pracHcal oodinfornl.ed too.! for ereatinls'us~ble C<lrpor;lt~onsthatar,e, p~ ·o.fthe sobin ian. to' keep~Dg. a wor.fd tlmt i:sfit~o [ivc m. It IS en mv.ltation to yattlO' be part of the; f:uture solutioB ~a :responsUjte ~geDt ·ofc~rca·H"'e· cbange .

. Far those who,areprepared~o, act whh. :purp~ and dirediO'Th illl'e-Sbaping the organizational wod4&isis: pe~ps the most ,e;xcltia,g pedod in h.uman hist()ty~. Each, generaUon faces its chaUenges. B'ut ttLisand. tile n~Jt mtl' OF 'throo gcn.emtions wmbe dec~si¥e' in d~temlining whether more buman:sdnmhave ever lived IOn this planet ,can createtbe clll1aibontuve i:n5;ti:wt'ional 'fotm:S n,ccdedimt oursurv]Vll~ andmesmvtwl oflh.osc other pRciotls life ftn:m.~ WBO share thispitanci WJJtb us .. And berond SU.rvi.va~" to' Cli'CaW innovative :institutionalfUmlS tOI provide us all, and. :th.os:wno como' a~erus,wit.b .8 q.uaUty or eeonomie, social. and cU:~tw'3l Utc that ~ and de¥~lops our .nwnaa capabiUties.

That, is ih.c (!ooUen,gp 'we deaJl. with inlhis book. ,b~ m~ing thi$clmlJe;nge~ \Ve must 'redesiign many ofoUI Organim~'iODS .. So YtI'e' ~iln here wjlth. ,3 sbort: dlSCUSSlon oHhe evOlution oHheinstituUon which is tile focus ,o·f owrboo:t:th.e: corpornii.on. Because 'oo:rpomtions shru:-e SQlmatl)' commun.

:&:'''''''4ii'''i~'' <:IlfIod·. I ,,,,...,. .""""'l'IoPru"'''ii~.,,_c· ,tfO ' ··l·~·y··· .""·~,··""e-- -r';-'''I·· th 1'IlIt'i it~~n'

.U.Ui~JU!lIJW.iiI ~ •... iIIi.I,~I~ ,~.lr~,I",I'lj,.iili' -g-'~ __ ,~., "'"~ Jl~" ~:UiI;JIii\l, _ U~MI', ' __ ""'V.',r~I.'M~iI!U\ ..

~:I. an. ·imm.utablesocial [aM. But it: is ·n.o1: ~I.thas ahead, un<ierg,on.e

substantjai[ iOOetinj;tionsovcr time. How did the' oo:rporatio:narise:'lWhy waS.lt ,crealed!? How Ilaslt· ev,ol\"ed and bmv can we redoslglllt fur IUl!1li1an. and ecolQSit-aI~ta1rutb:mtY?

The C:iorpo,rat~OJl ,as, we knowittod!ay is a,re]atrvc1iy mod~minvcnUon but: .itsMstorlcal roots can 00 traced back to, tile Rontall, Emp,ioo.z The Romans ~r;eaHzed. that social ~insti.tutloflS\W.revldneJabloto turnover among members, and the ,founders" deat'h!L :So" to ensmre continuityJ,tltey adopted the ficHoll! ofan institution hav:inganldenH{y~, like a SUpta indivi~,ua11~ lndependent (lf:its members,. J

The: ,notion \Y3S, la'tier carried aeross into, Chureh canon~aw with an added, disdnctionmade ~tween ecc1es:iasticaland, !oilY corpamtiolls~. ECcles~tieal oOr.pQr~ti('JJl_S pm.:nuned, ~reUgiQUS: matters:; lay etlrpQra~iQns: were fOmledformliJoiidpalgOYemaflOc'~ Iwmufacfttriug and comnlcrce. This was, (h,e ,a,rigio ,of1he oonttneE.ial, oorporati.on, as '~'e: kliow it ~~y. Unde.r Bril]sh la~t ddsidcawas developedfurlther .. The Jaw eMhrined dIe .righl,oif'lh.e Im,nnarc:ll,to gran~a d18ml£ to .org:wriz:a:tiorllS! thataUowed thelDto~tC. The~igu.'s censentwas ;abso.lute,ly llCCeSSial)"to the :fOmJafi.on uf any c(upomtion and he Of she had the ngh~ ~o revoke the chru-tct at ,any tlme,

MMl:Y of the ,BritishseWlcment'S in~ North Amedca 'WCiOO: founded by ,coQJotaLtioJlSMder dmrt-ecnom the British.cro,w.n and. were def"onded 'by British -Uoops . For mstmlce~ C'e<;Uiu5 Calvert 'WaS gi¥ena charter by Cltadti 1'10 fGundthe oolony ofBaldmo.re.Fn .. remrn for a grant of'

4 ;m:jUion, heetarea efland he agreed, tupa)' thel king ~two' lndit:ul arrow,s: a year plm;oneftfth, of aqygoldo:r Sn,Vl~r diiscov,er:edt•4

AAe;r the foundaUon 0.( British colonies in Nortb Ameri.~, tb_~_s idod o~f ,c~nltrot by the .Britislil. crown bccamcil souree of ir:rita,tjQn.~Qo maRY Am.en.can. ·l,dUz.e.ns. The.~Boston Tea Party"'.~ wldeD .~parked.the Amedcao Revolutioll!t was 3. 'wti2leD protest ag{IJim, tb.c: ri,gnt, of tIl.e. ,Britj5h Parliament tofilv()ur' the East Illd~a Co.mpaniY~ in.corporated under chane,r fto:mthe B:rids'h, Crown~ byaUowIDg Uto sbip tenl 10 Amc:Hca witiJ.Ollt payin,g, im~po.rt dut~es, s .Argumeutsabout: the rilhlSo,f c,orporations are not 8. :lovll:l phenomenon ..

When :the Unil~ed ;Sta~es 'ooruly wo:n,its, ~ndepeliidence~ilS,c;itizens; were dete-1'!1llm.e:dI!Obring oorporaitionsunder the; control of their eleered

die, .r;esponslbiJl~i,ties of corporate c.i:tizens:hJp and those who, through ignoranee er design" Icontinue to expl(][tna:tw:a~ and human resources ..

. Are corporat.OM, evil?

11, .Is a.nai.w and s:implisd.c viewlllat ~ys corpomtions as. evH. by their Vet:yIil_8ture. Almostever.ytbiog we depend on in ourmedemwerld I;S, tbe product ofcorparatiuns -- from. the food. we eat? the c~otbes Vie wear te Ihepfumes and computemwc ·ue.to eommunicate with each. other .. We; ~nGt de wlthout coq>amtl.ans .. What is~mpomm~ h~er,. is that we exercise mfl:icienlt ,cone£tWe~ 'OIlOitfO] over the way in wh.ichthey operate toensuretb~ rSUpport: rather dlan dcsb'O)" the ec-nh)gicai and socIal fabric we· d~pemI Ott

Througlu:rut.the bistury of eoq:mrations:,. there bas been a contiinuin,8 debate over' mow the' corptlratioosnould 'be de:tine",in~JtJmng its legal constitotioo. Us ooc:ilall responsl.bUi1~es~, its ro;~e~n en1Viironmental. protection, andthe constituency towmeib it is; acoountaoJe. The core of this debate ,Coo be summa:ril.ed!as tne atgWnent about. whdller th-» :I"ole

of the corpomUon. is sim.plY 10 create ,financial weaUll. for ifSowners

orto cQntribute -mUle wen-being of a wider range ofstakehQ~ders~ includingth.e Ico.-mmImi:ty~, the env.iromnent and :rutur,e generart~ons;.

This debate has gone on. fur as longas 'modern' oorpomtio:ns nave existed and its hJst:my is too l(lD:g and comp,te\lt to trace here, -the; deoote bas .inc~ll~ forexamp,],t,fiierce Cdti.qlU~S; of the ],egiumacy ofdJ.t! ;slave: tmde;~ge o,f dte ~dM'k ;sataJlic mins'that 'blighted the: lives of wo:rkersand &wastaml Bng'Jand1: ~green .and.plea:san)t.land"~ large"lscaJe demoflSbationsagailnst fflclearpowerplaxts,;experimems: in. 'in.dusttiaJ de~tacy:t ~ the rise, of • gRell), ~}IDHticalpat1tle~s; orgaD_imti.onal, innovations sucb as ollie mplebottom lin.et';demonm:anoDS.against g~O'balizatiml. ,si.n~c corpomUoRs csme Ln,to,beLng" each generation has cmgagedl 'Yilth and. ,oondnued.mis debate whidl has ;sha,ped ,oorpotationsu 'We' know them foetal' ..

Most ~cnttya ~ritica1 issue :in the demte has been. the :rela:tiv,cvlrtucs of die prevailing noollberal. eeenomics f"eeono.micmtiGnansm') v,ers'\l!S ~stakeho~der cap.i;taUsm' • NeoHberwl eco:nom~cs; ~edbyttJ.eecono.mi5t MUton Fnednmll~ argues tlmttherol_e oltbe corpo.m~ioo_ is simp.lyro maximize .shol1.-1erm -RtuInsKl' silmenoMers .. Th'Cwidesprc::ad acceptance arrbies potn.tof viie,w~ espeeiaHy lly eOQnotnic ;advisers; tQgov;ern:me.nts~

environment and.fi.nuregeneranoM.. Neoolas8Ic.aleconomjcs~ based on. the: ex~ri~nQe o,fenvlr,onm.cmtal ptellt:y:,. gin assumes IMltmanr inputs (rom the Dartm"al. and.socaJ envlmnmenJ~ Uke air ad pareoltiog, me ~ goodS 'because ·dI.CR Ir'cino' fitmm~ill~ 'c:harg~~ (btlhem.. In. acMition~ the iG:oods ;and ;services. _produced. 'byth.efum ·are gi.W!.VClJue b'-liIt: th.e

~bads 'and ~d~ssefVi.ces·' ,crea:ted alt tic, same timeafC oien neilther idenUfied ~nof ,eos·ted! and charged. back. to me, c-o.rpo.mnn'R.1'he:msoomse· of bwsiness:and economics largely defines 011111 ,cool:ogical and comrnutlil.ty ~s;sue$ •. :He,nc~! in the: rAG'st ;s:I8JWfi.cam: business, dec.~sions"lhese Issues; ·ate ~gnnR!d~use they are invisihle - th.e decision makc:rs :ti!Jaw 110 culliUr8l' .i. . ..• .. : '~'i'1:..,_, " Z""'.~ ,-i~-~' tn- is res ,BR:~<J;rded as i:rrefewnt

ea,.egO.nes ,IDf tuem. 0(, . .upeJCe_,,~ ~e _stI !!;"~'I,II! • _

or o:fll'laQinal importance .. En fae:t, tbey IR of.increasing importance (or :survll'al of ~jfe '00 il'bjB :ptanet ;and fOfOOCiw. jlllstice ,andtlle;ymustbec:wne centml.~o stJaiwgi:e: dC(;~sion :making~ Wene~:a n~' 'econnnl~e$tha:t ~redetioe.s eeonouUc: eapi,tal.to' iineludeoatuR: andpeople:.'~(l

Sowc fate a. siJtuall.o.Jwbcte 'C(1q'1ODte dooi:si01il!mm:c~u. many Q.fwbom ,~wel1 inl~nncule.:1, ccul1munity~minded ·~ilt~~ makG: d:ecis.[on"!j,\\!!nich

1 ...• . ·L.~ • ..,i.·i·· d-I .. i.

CIllDlD Bnv:e •. y are ,1~:v,in8.a. catastropmC UDpaCl ,on. uilB p~anet aIL ,on wlC

gl.o11al eommumlty~ .Andtbey a.re: .s~.pponedin 1nispalte1in ·of declsion lmating: by' ·OO.nstUD.etS I~US) who.rerward them lzy'plJi[Cbw:ing goods ad. ,sen'.lces tie:)' pmaU{1c'.. 'We, are, :aU ,capu.ycs ·ofa cottmc of capltalisRl tbat, (WeT 200 years~ J1r06ucedrmormollJs 'wealth and an .increased standard ,of Uvin.g:fMlmge ntmibem of'peopl.e.Bftu the ICOSts, ·of oonthm:lngon.this 'path~ uswg: tn.e :SW1lo lI!Im.C'Ids~ .~ now·tbteatenillG: to dec$~ ~ur abUity to ase OlewcaWth [II the C('eatlon of healthy,. :sati.s(yin.g lives iand.also dlleatening:theviaibilhy of;sucb a life .rarfu!t~ generations,. Wie;Wwc beeeme, in the 'words of'Ttm. PlatmNy" "w,hHe eaters' .Iil .Most: of us, hiWe a ,stake IB our current clillrureand Me thrcatOlledi by OJ 5uDsiDItlal addqU0 of it-We :se:nsc that we' mtl54 .at~east: fot tnc: sake o:f our chij,dten and fhtuJic s.eDeratIQmi~ stut.lo do some thing,S difie.RnUy~ But the Stzc i'md the: ,comple:xtt¥ of the issues;QC daunting and we _.c,al;!lgbt Ina :spider web of'c,uhw;al categ:ori,cstna:t. c'QHtr:aln aur ,e:fI~cUvc action .. Change 1n_IBI bqjn with UcS, - 'but wherec-an.we begin?

Lillie ito[ ;nat thclie~.nsibili;ty fm ~S a.susl3inaibJc world. fall's 1~ly on tH'shouldcl:S o'fthe WMM'$ ,e:nmprises,. the~ 'e«Inomie ongi'l!leS ~nhe.Fu~.

r -

.... - _.

tIM ...... 1 -1:1

Maklnl'astart:

Whereve,rwe are :in society and the world of warl:, YJe can ,engage in the debate ,about:~'hemciial role oHhe ,corporation., All. o.fus can, loonhibul~ ~O' Q,redefini,uolill, of cOI}lOWJtions toensure the,ybecGRle major conbilbutom, to suminabilUy rather than social and emrimnmental predarom undermining a world fit to l~ve~ io.Ther.e '],g, s, hug,e oppoftmdty here to, ensure that aU CQ,lJ.MlnItlo:ns are j,nsttUmtMl!t.s nf'a 'broader social purpo,s,e than, thegenemrion of sb,i)n~teml, wealth, 'f~l:' :sharelW,ldelrS. Of course ,shareholders deserve a return. onth,eir inve,s,tment., A:swe shan. s:how~ in most cases thIS remm IS enhanced rather tOOn reduoed by susrtainablepracu.ccs.,We thiftl: it is v,~talthat oorplmtions 'l1Ulke profits - but: not at: theeost of destroying thefuture viabHity of society and the planet.

The nS'lainabHi.ty debalfllS curmn.tly being engaged in ~, ways; fim, 3!1:tfue 'lnteU.ec,hmi lcve~as the immensity ofcmr~tI!t unsustainabl,e pmctices Js documented,and \\'e aUooccme 3wa1e o,f~e, ,consldemble cha~lenges, ,o.f,cl1an___ging these practices;. secon<1.at: the~,evtdaf corpo,rare action, 38 hundre-dSof dumsands of meEnben 'I)fboartls of'mana:gement ~utives~, ~gm~ .supervjsors~membe~1S of :thewoli::furoc. eXitemal C{U1Sli.litam:s), non"sovernment o.rgmUzati.ons amdcommwUitygool!Jp8,take

a ntuU:itudeofacUoJJs on a d:ailly basisthat ]Impa:ct. on issues of social and en:\i'.lfomnenJtal susta~tmb~liity; tIilir~ at 1he level.of conswmplion~1lS we cOUectlVllii)' create tile :powerml. ,patterns offirum.cial Fewards that shape the ec.onol!n¥~ If we cont~nue to purchase products~at scrmv. (fur world with. 'waste ;andpoison our em1ronmen~ we cannot b.~amethe 'captains: ofmdlilSltry for·are mullwg destruction .. If'\.Ve ,ti:l!e, to nlakeoc:u:pomtions iBstrume.l1!ts ofren~l~ tn.!! debate mMtbe: enga,ged attbese three levels: through. fbrgi,ng, a.pmverfU~. new ideology that creates a ,compe]]jng: vision of a :fim:J.re world nit ,to live: in ,I and iB1p:.lemernUng; tbe pncti'cal actions 1'1, tbe workplace and in. Olltconswn:ptio.n patterns that will btiBg thev.Islon into bei~g ..

A newapprQath. to ecooomi.cs has developed in rec-ent .yeatS. to deal. with th.e fact. til at traditional economics. hasla:rg~Jy- taken the ecological and socia~. eJ!Wiromnent forgm:n.t!ed .. lbis .approoclJ. :recognrleS that eeonomles must mk.e, "natum!l. capital' (ecosystems~ and "sooial capi:tar O:e~atronshlp:s. beM'eetl people)inm ;rK!Cournt. Neoolassiml,ooonomies treats the econo.m,as a dosed s.ystem,wi:t.h :negative; :rcsults~ suchas poUution" tmat:ed as <lext.er:natrtie~'wmcll c_ ·be ignored.iin cc-QlWmlc terms. S.imilarly some of t~he wodd'S most criiUcalresouccs; arotre.a~ed as ·ftee~

i1n,[fllts u.daceoroed no, w],ue;unlesstbeyacquirelWon01l1ic ·worth, jnth.el pr:oee,sa ,0;( ~productlian. ,Eco.logieall economics), bycontrast~ makes ,s;uch 'e~temaJiti:e-san integral part: o.Fthe ,ec~n.omi~ syS!tem. Beologioal 'eoon.omics :isa newieild of study whiC!hin1egratcs 'principles from eoolQgy and eco,nQrnio,s,. ,As a mullt IQftheinctOO$m,g; importance oith~e:

Ilew approac'hcs, ICCQIlOlmsts, ,aR mcogmzling,tbe ,imp~ications of evologi~d :fimoti,onhJg amd miUenoe for human 'weifue. Fbriutamce, bio.~qgical r:esourees \Such as,trees,and, isb and. eooJogj.caJJ services mmh as e1t.\SiGB cGnwo1land ,~Iilnatc ,mb1Iiimti_OD de,pen.d on nminta'inJDg cce.rtain ],ev;e]s; ·of ecosystem, :fUru:mo~g,.~3

The: depletion ofname:d and soolal msOU:l:'OOS and! the accumulatio.n oflO~c 'wastes ,0£ dsing cDme' rates can. DecOMequentlcs: of,ee;onomh:l

dooisiooSitbat. seem.~:m:tlQnat ~ tin tra4!~'ti. ~ ... ~ .~ ',o:micb= . ,;~.B . t in th-

____ .... ' .. . _ _ _ .. ' _I,li! _ ~ __ ..... -OIL __ . .~ U ,_e

n.ew ,economIc models their soe,jal aodecnno.mi;eeffects! are m.doo.ed rathethm, C'Xicluded., I;t i;Si fair to ,say' 'hI: in. thC'&e1 oc-w models SOUle "rauorud· declsions:begin 10·100&, insane •. For iDS'lance" ·are· decision to bl!lnd.biBl~r~ more tecoo 0 logically lillc:ient:lhihing fleets,to rrumrWzc haFVe$'ts, of :fisb ftlom ilbe world's, l~ loOks mnQtl!al -bultoniJy ~:a ·the assWlIptiO:n that,the mpply of fiSh is lnGX.haustiblci.

This 'book mak'Ccs a 'contribution at; all 'three: 1e¥C;fs~to the inte]!ecnml a,genda for c~ge;. :to the, s.1mt~ieSllor corporate ac,n~ and to eban,gi..ng consumption p8U,NnS •. We outUneihe need .ibr slmtainabiUty. iJdentifoying the ,galll b¢m'een where '\Ve. :am Rowand. Where: 'We need. to,. be" ;an.dth~ 'We pr<1ri.a. detai]~d! discnssion of thetindls of stt:ategi.c: aetions &ot am

n,-"",~-)I ~"'" ,r.JIrr:T'V' ~H"i ~O'''''"'~'"i;l _~.II;U W "'~".'~ 'LIiirjII ,U._lW.,U~

In atoompUsbin,g;this~ we oudine; developme.ntalpbaseslhat lead to tie fuJIy 's-ustaina.ble ,organizall.oo,.tImtls} an. ,organizaUoD.that is:~ltself sustaiuble because its s.takenQlders in.ci~ludiDg ik, eroployees win continue mSllp,port:illl.But it is. alsoarus:taining o.rpm-J1mtionbecause it :1& 5ustainill.gtne wider sooicty and. tbe eool:ogicat ,envIronment. Sin.oe ] 992J wner'l. the! leaders oftlc wodd~s g',ovemmC&tS, gathered. in Riortol cmdorse Ulcp._rinciph:s, of 5ustlrinable deNe:~opment. the;ybarve struggled w.ith. tbe cballeuge 100f ilJtegPl~g the SQClal" envir;omnenud and ~CqPo:mic

P-rim:ln:les mat su5tamabm.~~~ires. Co~tionsWhich deveio.p·,·

- ,f,'" - ~~/' "!i -- ~j- - .!!-'.~ ~,!,,!,~

aocolldinglo,om inlegrated :mooc.1 will. maikea major contrl:butioo.to 'ensuriinglttt 'lie: world pro,g.resses alQ~g this path ..

Variousautbomhave described the :historical. processe~ bywhicb torpomtions .have ~RllWed! towards supporting ecologicalsul$Iwnability;.'4 8tdesofhistorical. :stag~ mderlyiug moveiii towards ootpOmte soeial. re.spotIsibnity (en as "We refer to :llt bere~ h.uman. :slUfainabiliity) are" more rare. An eJJJoreption is a m.odelpmposed. Oy' AluLs,tin •. Aus,tinp~sed tba,t cQtp()rati.ollS. evel'6p1 ffitaUonsbips, Vlithother non~pmfit o~ig,tions, according toa ',collaboration (4)nti!ll!u:wn.·~ ... In this co{JBJlrJUtml,tie re:'lati:onsh,p candevdo,p ttomtn.e Jlhi~mthropicphase through: a mmsactionalrewtiOAstHII'I" SUcR. as 5~~hi~"man.inte~ted mbase.

,rr Ir· .... ~~~ .r. e-"'- It'"

ln this .stagepmfit: and .. no:n.iprohlt. SRarc a eomm'{)lla:~m. ~:5 Our !ll1l.te~restin

pla:se tbtories$ucb as mJS lS Dot printarityto develop historical uf!l.derstandhlg~. a:hho1:!lghthat is u5e'rul~ but: more importanl]y ~o Wlderstand the paths ·COQlOmtio·DS must trawl to reach. a. fu~:l "~Qmminnent

to a.oomn~ .. .,."'~\"" model f'sa .. ·• .. l·~·"'~,"~:~ru.····I.. .. t.· .... ~" .... -~"'o!t,. b--i'··...,'- - --·d.·

. __ . 'rr1i'!I""""" _'· ... I~HI,AK: ,,,",,,",,,_ I.LAll,I;lh,.; um .. "'-V"''''.''''' 'I.1\,IUI ...••• u~an. art,

ecolt.?gical issues, Ifweueto move corpomtinns towarosmn sustainD.hl1ity~ Yie mU5;t be abJe to idendfy tb"estag~: where tbey are now' so we· can detennin.e~ how to mov-e forward.

Mucl1. can be learned. by ,examining the hj6wry of m,ovestD\'latds SUS1ainrah.m~'iD palt!icular lllildUs1!rl.es. FOr example~. HufJfma:n. 'has made a. de:mHed,analy;sis of themovemeRt ·towatlIls.ecofCljlcai SU5tainabmtyin

.1.. b····· l' •. ..J' .'. • .oeLUC'A· I (i U' w·"·" . 'to. :l';. r.:

'"Ie c_ ,enu,ea~ rnuuS1i:yin tUel,"", .• - .de I' ;S'tingullsuCSIOU slag,e$, IIOID

1962. when. ,ellv.lronmc:n!tal isswes'wee mei~ discusse4 to 199.3 wben.th,e cbemi.calindw;tryand its key s13keho'lders increasingly' adopted a. proactive ~tan~e~viewing the environm~nt as offering: a set of stf:ateg~o OFpor1Unitie:s:. EnbettweeD~. the chemical ,corporations [~acted. de'.Fensivel.y

d . ·k.,'···h ..' 'l ....... t~· . .1.. .'. ".. •. .L

an ·.,wcm 'met ~,toug~~ gtrVemmmtale,s,,,,,ad:om;, UIC; :nutianve'U:1cn

mO"'J;edtrom. g~emment to ,envi!mnmenta~ru::ti.vists,FinaIly t!he,teadi:ng Us, chemica] ,eo:mpani,cs absotbed wbat.they had seen as "heretical;> ideasl! acredlliloreresponsi:bly~. and :found that me mullt was :acmaUybtmefic;ial in businessterms: ..

There is: a gre~1it deal 'Q:f·~t]a:p, in modeJs sucbas this,. despite, dwffeoonces I,D Ole names given. to the vanOlilS pliaases Ul:d. d~f[efent numbers ofpbases. elearty .anyge:ner:a]ized. pbase medel is a. hign.~~cvel abstmction.from the bewild.g dl.\-'e..rsi,ty of corporate life. Neve.ftiheless,. ideal type. models; ,pf

.a.~n 1"::~.4I ".n '1" L~.n •• th '. "0;1.. 'b _ . ..i...:111 ,- •

lI.I!U:I MUU, n !.'dI:vea _ong ",~tOIj" In me sc:umccs,-wl UI.£mt suel• I a moW;:~ U:J'S

diffi.cultt.i!) compm; aDd. coutroat j'ndividuals, OlJanizatioRS. (':ommun.ltios" v 1

WIi;uu are the diJSlinpiisbing eharaeteristics of each ohhese phases?

1 RejHfion invoWves at1l3,n.iltlu.ie on. me part of the, c,ol'po:ra:tJon ~s dominant e~itethat an resources - emp:l!oyec1h 'comnum.1rty IRfiastrucm[['lc and the ecelogieal env.iiromnen1t - arefhere: to be e'cXploit,w, by the firm For immediate eCQlJom,lcc gain. On ,th~ blilman ~ide~, ~p],oy~ art rcg~OO. s]mp~.y as Jin,dlustcial 'c-a~non liOdder·,; thc;Te~s no commitment to diCVd(~p~Rgthem" a;pd health, arndsafety m~aSJJR5 are Ignored or :paid'li:p service", There'~s a,strongbeUefthat: tile firm ,sirnp:ty exists 'tomaximi~p.ro:fl.t and alilY other dairns by the; commWlttyare dismissed as. Hlcgjtima1te. The 111[00 d:i,sfiCgards tbe destm.ctlve'e:llvim.nm.en.fallmpacts of its ,ac:tivit.l!csamda.ctlvely opposes any' attempts by gOr\rcmmcltilts and "green' acdvis!s mpla.c,c eonmmi:nts IDI.its aetivitri~s.

2; Nog..;rnpuDHswene55 :usu.aHyresu~ts, from lac! of awmtncss: or Igno.mnrer;aitnerthan from. active o.pposltian to a. ,corporate @thlC broader tilan.mnanc;ial. gain,. Mooy oCtile 'CQr:]lCu:aUolls IOJ tbiti Cil'tegory embodytbe (D[tm~ of the past cenmry:con.ce.elrade.g on "bU!.o::t_less: as usual', operadng lA, oonv,emlonal~wys, tfuat do n.otrncorpora!te sustai_nabUity issues hnDcorpu:mte deeisiea maJdng., Thefi_rmi~ n,uman resource stmtegies" ~ifthelr'r ,e,:dst~ ar-e focused mahdyon ,creating and n:m~ntain~D!g a ,complIant woMo.rce. ComlniUniJt)! issues, melgtlored Wherepossibh~~ nnd the envi.r-onmeltal,coosequences (!)fthefinm~s acUviit'iesa:re taken for gr3lBlted. ao<t if ne:gati!\:te'~ t1lisregarrued ..

3, Com,pliance foenses on reduclo,g,tb.e :dslk o:.f sanctions for fa~Hngto meet minimum. ~sumdarosas an ,employero:r llfodllcer .. In o:rgatdzati.ons at tb.~s stage, tbe dominant elite ,cmphasi:z;c-s be~ng a • decent emplo:ycr and corporate c,r:tJ~en' by ensuring asaf¢~ healthy 'workplace and aro~dJ~ng 'eJ1,viro:nmmtal abuses that eould lead to ~idgart~on or strong com_ffilmity ac~tJioD dHl:cted.towarw thefimt. Howewr~ th.ey are p'[imari~y .react~ve. to growing I~gal requIMI.Jlentsand oommunity expectaHa.l15: for mUTe :sustainable prnctj.ce':s. A recent; ,mj:fthas, seen the develapmcA!t of cn-R:g;ui~atDry praetiees .. '[n-stead of the tmdidooa.1 'commandandoolltrol.'approach of gO\i'e:mmenUiI.mguJa:rion, industry; N'GOs and gW!lemmen:ts are; col~laoo.raliAg tD de¥e~op 1lI.tvi! sySh~ulS o:f voJuntary CiomplianiDe •. This sh:iftroprosentsa tr$1Sidon from comp~iance to\\ards.later pha.~-s ..

4E;fliciea.tyrciHects,agoow.in8 awateo.es5 on.tnepart 'of the dominant elite in the ,corpon'lti.om that there are real adiwn:~8,es to be gained by pmactively Ln:sttiuting sllsta~nable lmct~cces:. In particuJJu"iluman resource and em'iromnentalpoHc:~es and.pract~oes: are used torednee

(RSS )1' yet: be si~mll1:WlIealsbtplJ.fSuing anuns1lS,talnabJe ,eonlOgicai str:ategyand SQ' 'be in Phase 2 in. et'ological ,5ll!SmnabiUty (ES2).. Far e~amp~le ,8 .mining ,company :may ilrlV'esr stronglyinUle ltaIning and developtllCriltll.fits.cmpJ]oyees and mbeon:ttactors and alse Ill, loeal eommunilty (fev,c:locpment (H85),. bu~ it .may operate env.iroumentally poUul1ing minio,g opemtj,ons (ES2.J.

Afidler version oftlle model, wbi.cb anow,s for d~ffeR\nces of Ibis !kind~ is giVOll" intbe Appendixatdle end of this ,cha,ter~ We :suggestthat!,'on finis'hing tis cJflUpt~r~you skim, read dds~ and, identifY where the orgaIlizau.on yotl 8reitwol.voo in YiOuld he ;appropria1ely placedOFJ, these. two important dimensions. A'S we Imentioned above~ we skaU be dealing with. each ,o,fthese ptmses in much more detail, ,later io the book: and you, ,¢an c,ileck CfQt: dl.e :specitic impl:lc3Iti.Ql1sofoW' argument fOf your' :particumr o:rp_nizadonals.ituadon.

The ,pnasel model represents the path forward to cQrporate 5!ustaimabmty;. Progress onl that path (:al1 o:nly tab pmce ·throliilgb the adii;on 'i),h·miols cchan_g,e: age.nts. In Chapter 9we review diJe kinds of cbange ,agents W,RO C(J!fl, im,peltbe oorpomrion forward on tbistmjectory andbtieft.y ,outline ti,eirpMtlCular roles intbeprocess .. to tlmtfmal. chaptef1 we wseusslh.ese reles .ill mnre~ detail .. Different. change a8~ntro~.es are: critical. io dtfferent phase-s .. 'Nevedbeb:ss ,attbis po:hilltyOU may wish to, Identify wbich. kind of ,c'hang~ 8,gent you. arel so that" as you readon, you can.takcpemcl1l.ar note (lfhow you can contribute 10 Ibe p:rogfe5s.tvere~wuticm. oftbo.se organizati.clDS YO;UCaD, influence .. This: wUl.he:lp' cbri.fy how :you can ,can,tribufem ,creating a :m.O[C .sustainable worM ..

The moge 0.£ porentiaJ. cbang,e agents incli.idCcS those who Wtlrk in. ,coIIKn:ations, and thoseQWside Wih<lWisb 'to in.ftu~nce:them. lOlteftlal change 3,g,enl:s: are 'board nsembees, 'CEOstexeouti.~, mana.gers~ STupervis~, p,oofessianrus in. smfflO.l.es 1JDd. lo:thm .members ofdu~i workforce'. E'Xtema! change ,agents incl:udc:poUti.ciam;and burc--a"Ucratst in~e·slors~ consu~tants~ suppUen: and SUbco.ntrac10ESt financjal analysts. oocialandooologicalacUvislS and oiherkey staleholders such as CCltml)'Wdty ,gwlilp$~, regulato.rsand: eensamera Thr:ougt..out,th~Si [bOOk we: .sboU argue 1!hataU havclegitimftt,e rol.ts to play ad. &at: cnncmedactEon .anw.ng dJffm:el1tkindls of change ,agents wmbe needed to create the signjfieant changes .\Ve am advGCat!ing.

The way'tbese chan8~ ageuts exert int1rl.1.eneevaries - we sl!JaUtake these up in. mote dtctaU. ~n Chapter 9'1' but some examples are usefullrere ..

1pxe~IlJ~~ ~mt "'~"''''';n'~li~~'''''' '''~-J1',,,'i''''1:o, ·~·~e·. ,....,· .. reise '0 if' ,a~"·it.""n:·'""· ·~o· .. . ~_.~ _,,,,"-,_ Y;~"liI~ .!II~~~J! ~J~.f! '_'~_I~~ !yjll,VI~&,_~J Ul .. ~,n""'-IJ'Ip""'" _ "-"I,, 'y,U.Lv "~]".J ""t.,.,

examplej. throu.gblnt~rperso.na'lm8IJ1ence in inftlnnal net1i¥Orks orthrollJgb ,cnsmiiog that. thei'[ orpnizationmaikets only sustaiInable :pfoducts:. Consumers may he~fp dramatize~ a.key env.~roruJl.e:Rtal issue or O:t:ganiD!, a. boyfiott iQf eom~y' goods: if they do not meet accepta:b~e envtf:otlllnentaiJ stand:auk Concerted action between i.T.lJt~mal and e:xl~rnal cli!ang.e a,genlis, 'can be partieula[lypowl:rfb~. in bringing aibout sig:nifi.cantchang,e and we srudl 'beiUustm,ting how ~his 'co be Qtcltl:-stmlted. :Ll:adcrsbiJI in corporate ohan_ge l5) iRo1 anly e,:l{er'Cised by senl,or ex~outlves;. in om tinal,chapter '\WI show how Ule; mos.t :powerful fon:e,for ,sMpimg the sutainablc' corpo.rati.on ofthe .ftJlt:ure wiUbe lbec1oUabomdve Utitiati.vesof a ~ie1y of e,llum,ge a,gCJllts. This book: IS a. ,collltrlbudon ·uo an. emerging S001al m.(W,em.ent 'b~on .imp~.em.ent[ngs'ustaiubU;ityprl.ncip'Ies.

We hope that. :Y{)U.llOYI have aIllIJnde:r:standillg of the eX£.iting lask we :have set ourseJves intbis beokand ha~e begun to see where you ·can.C\(ulltribute;

to the "';;m1:~~~a:H,(' ·~ ....... i"'~. ~h~tt .":''l' wh;'«ih- """-c •• :·Il- ":,.f:·"' ~.~-,-,-~ .. j .. , .. - -,-- .I~'- 'Tbl .'- ...

_____ ,-et" •.• ll"' __ J.L :S"__AI .. _~=_ ... ~.I. _ •. 1 ... , ....... ur ~ ·,1 Iu~ure f,J.Ii;ipen~. _ .. , ....

fC51 ofthebooik.wiU i'u:dp YDU deepen yourliJodefStanding of your po:tenltial .role andmaxim.ize YC)llrinllJUence In this; change :proee.ss .. To ." .-ellde --,ur,-, " ta;..throUnlf'i~ke ~ .. Ir wec-"vc ·be!l.. ·b.:- c"ffC;~' -,:'cw

__ gu~_. yo __ ,pan __ ~ _ C"~ Il-tL !YVU.fi1 .'. _ .&1. lOW a .. ne OWrvL._

of'the 'oWilterd-s .of each. chapter_ YOll! mayw.i5b tOI read t'hechaptm~na linear fashion. or identi~whero you th~Dk:yoW" organization I~ieson the, path. 10 :sustaittabiUty and. lea:paneadto read. that first This aMpler cmtUne "iI] help as&ist yw.to, deCide wruchwayto go ...

How·ever~VIi'e do, suggest dwlt you start 'by read:i.ng Chapters 2, and. 3..

Ch'll:nt""-r,'2' d ~"".]o·ps·"'" b ........ d·I ..... __ '1·ew·o1f··tL. .. ·p.··Dlliti''''a~ "'c"""o·:m.· ·i~""''''d

. _ -.J;"" --~.' . - . " - N':r'","", _, ',' . lAo . .LJUg,_ _ ~-Y""':I,",' _. __ ' I,_ • I '.U~ _ , ' __ IJ_~I_- JI~ __ Il]] ,",'_ Vltl,_'- L L 11 _I ..... W,"f." .

soola~: env:ir(mmentin ~I.ch.we as cha:n.geageO!ts wuttle opemtmg,.

W, : .11'1:· .. ;'1." .•.•• ~'.,":, -d·' I:. '··'·~-,,··d •.. _ .. ". " .~,--. ·.·.·f"·"- .... 'f~: ... ". ~t.. ,. '. ~.,711

.. C On neee a re'hlSu.C .esc,npttQJl an .. assessm,ent 0 HIe ,Ii.Oreei ~uat \flu.

:re.s,train. our S!ti1!M!lI~tstO infiuencoe CQI'jnf'I£ailte; Sb':a.1ffl1l .•. ~c action as v.reUas

.t"'. "',Ii'--'O

those driven olfthang;e tha:t we <:an.draw 'onto .sUPPO.rt~ whm we are, doing. Then Cmapter3 ouUinesthe sus:taLni:ng corpo.ration ·wor1ci·Dig acHveiy 'fDf a fully stmtallm_ble: world .. lfwe~ are to lead change. wee mnst Dve a. view of vm:at the id.eal Ollatlizati.on willbe like. Chapter 3

_. .. . ·f-·Ii.. .. .'II~-~' . .• f' -"h ~","

pr'esents 'OU[\!'1e\\!' e . tne l{w(li. QrgmlItzat:ron .0 .{ . e :1.~rUU'e.

The slmyis ·totdofa. youn,g emperor. in ancien.t ClUna.w:bo \WS. ,expl,ofinS

.:1:.. '111 "", ....... :th" .." C- "b- ,. ~ '~.... .. .I.......:::_·h

U~.e .1a:uji.u:J· Ule mten.or .a, '. I • i~spa:~ace • .lin. .lllS wanUi,;::...i u~gs .. , . ecame: upon. a

mom. in whicll.tb,epalaee, buh::'her -was Cant~iIlg careasses:.Hc\Wi,ttibedthe ItmtCh«atwo.rtfl).r some time and was !ilu:pmedl,o,:futdtfuat: he didn~1

sb:>p tosharpetl, hils carving knife. The emperorin.quimut '~.My good men, l am surpdscd 'bl! see that you. do not sIla.rpen yO;urknife. Surdy with su.ch '\YO[k it mwst ftcqu~rndy beecme blun.t?' 'Theb'utc:her repUed= "YOM .Highness is cormet jnperce:iviDJgtbat for tiUswofkth,(I! sharpest

t"I!.~,=: .". '. H' . ·r '1· d·· ed ter .. 1. .. ' , ... . kn . .";I:l:

()J:uurves IS, l1ece-cssary. ,IG\\!£Vert I se ' .. om n.ee· . tores.a.:U;l n my I . '[lC

C,--" ·~~~" .. ·~~·'4·~·;~ .'h·-,-.',; 11~''''ff~··i·:'c,.,.,r''.·· i_' A.,' !t..,"'~'~e: a.' .• i" VIte teo cedi

as .il. C1!.b \V,uero ~ ere lS.e~"IeSIS!~lU!CC.. ~S c~.~~g ~~g"'CliJiQ)~ _00 D!~~_

·t· •. ~ ..•. · '~ ~ l:<o-',w 't··,,,, ''''!h''''k-\"J'~(I-, the '.0 -.~"i[I ~ra. ·tb: e'· 'r ,·'t.,~r! :a~ .. ·.! 'm:', . !st 'l'~ .ooad w~th· .

u .I ,l.u. _ _ ,.., u'U... ._,hu I>U cil,,,,L •• ,, .. _ .. " ....•. I.u;~n -,CI"'. ~ _ ,., __ ~. _. _

:skill. and sure liming to ensurethat our limited. energy bas maximUliil1 impact in briagblg about moV'ement lowMDSithe'wUy sustainable

= '_' .

ccrpomt~.oI!1 ..

Chapter 2 Is dc-sl.gn.ed ~o pfov:idea basis fbrunderstaading the: contr.,xt of political. $1.dSQcia] loroes in mdcn.ouf' aC1ionis a smaU but potentlaUy pmmdhl pm1.~:fwellmde:rstand. the major forces thait are transfonnm,g: the wndd,. we can align our 'energy w~.th.tbose fowC'S,wleadyowvm.g society inUle djrec~io:n \Ve' Slilpport. In thjs way even :swaU actions: may be ampUifi.edlo e:reat'C tmnsforrmltion.a~. rCu.mge radlerthan ne!LI:troli2i~d and d:~ssipated :b;y ooun:terwdling. fQrcccS. Cbap1er 2~e;nfslhe context for' !cbange and Chapter .3 tile wtinm:l\egoal ior change.

'Ch.a'p~c:rs4-6 then. diseussthemejor steps o[gan.iiz!l!tiallS typ.i.caUy ta'~--e as.mey fl]oveWyondthe phases of r:eJoctian. and nDIIc'I-espt'lnslveJleS-.~. Organizations .In fhc-se first two phases are what: we,rerfeI to M·nrst.v;a~ cO,rporatiCtIl!S' . Their attitudes of MI,tagnnism or indifferemce to the compening need ~o- creQlte a. moresustainab~.e\Wdd reflect Ute Un,geJing, persis!len~e of a. clO11apsWg corporate model. In tlds ~.:fi.rst wave' mode]~ th.e !co.rpomHon. simply !cxistsro expJ.oj~ human and natural ,reM'lllUces :for profit!, :regardless of the impact 0,£ this on. the Icurrentwo:Tild. or the\YOrld. of the future. Organ:jzatioos ,oftbJs kind oo:ve; not yeitfaced,~n :any sense, the .issue ef this ceBhllry, an. is:su.ebhmt1ye".p.r@s:sed!~y LInes,:

1lt¢'r:egeti~"ra~iv,e and :mimillatiiv,c cap3citics !af~bc bi()sp'-he~ !cann.ol' fSUpport !I::'ii'cn ~be curre.n~: Je'\'elsof consumption. much !~es:s the matJii.fO:ld increase reql'ti:redt'os,en.em~lze to higber Sitan:d.ards. !()fU'I!'ing wQrldw~~ .. St~n le:!i~ can t!he pl~ ~ffC;lI!'d;l!l, e'!'lH~growmshiJman. ,populatlon S!tri'!!'in,gto,ooMum·e m.O:~ ptJ'"'Capihl:.:iU

Cbap!e,r 4 rlea]s witb. Phase 3 of our .susla~nabm.t¥ de,YeIQpment. m.ooe,1- oompliance. In.this phas6~ or:gan~zatl;(U1S ,seek to minimize tn.e risk ,of ~gnoting the illcireas!ingde..man(t from ,govermn$nts~ communities and

"" . '"'. fl" .' .... '11 .•.. ,l lal .,

!aCtiVlst nrgamza1t!.o:nsj, . ,OF eavunmnenrta .prOlteCitlan mllil SOOUt . J1!lStI:ce •.

The !thapt'Cfoudi~es, tbe issucs~o! be addre-ss:ed at,tbis·stag,cin !complying wiltb reJewm: ,eI[vLronnumtal:md 5ocJallegislathlD. andin miQeting Ibe

denmn.ds, of .kcy st'lhholdm. 'The chapter alsopninls to tlitleOOnefits fur the oorporatton. ingo.ing.tn ·oomp,]ianceplus~ ~that: iStvolunt.ui]~ e.xRedimg legishnive :req~i.rements and stak~holder e~ecita,tiollS by playing a mQt'ie p.[()ach've mlem~aliltichm:g :further $'U~wnabillty iinUiati.ves.

Dds sets; tbe: scene 'far Chapter 5 Wkich dea'is wrtil .. Phase 4 of our mMlclll emc~ency~Intfuis: sta.ge.~ ,mgan:izationsstart to reap the posiithr,erewards

,of 'co:n.certed action ~n envirornnm.~al ~d seeial ~5SueS~ Cbapte'-I 5 disCI!Jsses ·tBJ: na1ure 'Of 'eiti:ciency~en]ru:ging:fhe conceptweUbeyQnd. COS!t .. 'c;utti,ns exereises, In )p.amcl!liar it shows .howtne ,sustaioobiHty perspective creates a. new mindset that ,oanmveal ju-ee. :suceess:lve.a:nd cUlDui:ll!Uve ,cyclles o~\cmciency~rie:l1mted meas1lres ... Each of·dtesc 'c,;cles.br:ings important. olU.mess ·be.mu:6ts, as weU asco.n,tribut~ngtoth!l 'we]l~being of lh.e ooomnmi.ty ,andt'he 98itwall ernv.lro.tunent. At:\thisl po:iru .organizations "Ift~n. dbcoverhow "WastcJid are n:um:Y of thetmdHional p,rodiucotlO:tt 0.£ service processes elmy have uSied.RcedCS'~gn ofpooou!c:tst prodm:donfiows and. se~rv.ice .sy.SleJml: generates signiicant:reblrns.Fo[ exwnp1le" ;recycUng c~ts (Interface:) orremanlilfacmnng' ,office machine, cnmponents, (Xemx~,F'uji;·Xe.rox) can .save miUi.o.ns ofdnllars. M wcUasbencfi.ting

the communi~ and ,envlronment: by ,elimi1mtingluxie \VlU.'te from landfill.

,Cbap,tel' 6; mow;s onto Phase $; :strategj.cproai;ti:lity~ AI~ildslph.Me~ s.ustainabillty becomes ,impo.rtant :in the olJanizan.on.~ s;tmtegIc lepc:sitiQiI!m,8~ New 'competitive: adwnta.g~ ,can. be gai.n«\ .lor 'e?r;:mnple. b.~ moving into mp~d~' ,expand[ng .~[()r B~!temad.ve energy (liP) or~mniiQg :mvo]ved! in p.rojects designed to heitp, :regcnera;tc ,co:mml!.ln~ti.es. An. exampl.e ·ofthe lafttr'wasLend Lease Co.rpo.mtion' suecessful Bluewmer maU .shopping ,c.ompiex nearth~eOK end of the Orumncl Ttmnet 'li1tismassi'-veiDifrastmcwrc proj:oot toot place lQ. 3J CQrumM,~ty with bigbunemplQYlllellt lend tease built a trabl!i:Qg cen.tre on site to 'trail, l~l·oo.employed people: fOf jobs in bui~.dD.8 .d, ]~t~r~ as the oomplcrted clOft1.plex ,came aD Une~ in :retau. skilb.Ets: eJ.frective example oif'c:QtlJtribunngto oommtml'lynmewa[ha:s, led to 'furthet substanti;al 'Co.llstructiO'n.p~j:eets [or Lend Lease in :B.urope - mDst .recent1yU;s, development ann.,B()vis~ was selected as the preferred tcmdere:r tobund

a £-200 miUian b.oopHal alt Ro.mfard onfh;e outskirts (JfL~JldQn,.2l;

Stmtegi:cpmJacdvl!ty i~ an exe.rt:iR inenl~gb!"tened self;'.ilii!tcr,em:: on the,part of the cQq1omti.oll,HJmYever .Phase 6, dIe :sustaioing oorpo:m1tiiOn1 represents.s m<webeynnd enU.Ghtened ,scU-mterest.tQ areinterp,retatinn ofth.cnatum of'the ,oo.rpo:mtion. j:lse:lf- jl~redeinjtiQn. as anin1egr:a~~.

Othe,rOJ§m~.zaUo.ns wilLI want tomakc~ wide-spreat1, rapid and quite radical al~cuaHorui~olhe business they am in, the \\~:yt'hey do btudnesst theIr SIfUC:tuR~ their cnrpl:rate; ,c,ulctuH (nrall ,()fth~).Thc; C:h~jce

ofa trnnsfo:r:rna.dve POlIti :l8 often did'ven by a desire to seize n.ew strategh:: i('IpponJ.uliUes or it may cORle from (h,e Q~ization faciag 3! .m~jorthlrea;t, to itsvmbillity. Gba1pter s: IOllltlinesh,ow this can be; doneandprovides ,examlp~es :iueb as the A_ustraUan mdine: Qanms ovmi.ci), has had severa! peirJ ods ,oftransformatiive ,c'ball!8:1!'i asitpdwti2ed. i!tso,pemtlafts<.

Finany~ Chapter 9' l~GS lip the' issu,e ,o:f,buw cerperate cwnge;can be led," We: discuss n,ow ,awricty of eh .. ~'C ,ilgen~ OO(;I!I])ytng dilferen:t kinds

of roles, and acti.n,gindividuaUy or ~cQn@tiy-:eily~ ,cane~a~etheJiru)rnentum" needed,til' 'CMatemore ,S~uS1t3inOO:tei mgnoizadolls. Alii, oles can, 'GXle«::ise teademnIpwh,ete; 'we :am~.lfyoiU a.l~dy are or w~sh ttl be a leaderiD c,matingthis new ooc\ia] reality~ the sustalnalbl}6! and sustaining wpni'zation" 1W'C dedh~arte; ilhisbookto you, Ybuw~Urnn.d It llse£uJ in. t'h.e; cnaUengi_ng w:k tbat ll;esahead.

,Appendix: PII_lnl tb.e develo,pmentof oOlrpomte ,sustar'lnabillty

IPh_1:: Rejrection

Httn!Jt1l11,sU,S,toinabil1ly (HSJ)

Employees: and :suibcG1l!h::adorsare re;garded as a,reoouwe to be exploited. He'al:th and. :sarfcry 'fcarmle'S, ru:-e;lgf'lored ,ocpaid '~lip service" Co Ensadvanl~g~s s!tmrm~n.g from ctno,lcit:y;" g,end'er~ ,socia]1 .elH's;!.~firlenee:ru'il'la:biUty and lan,page proicie~lcyare systematically 'exp'lo,it~d 'ro ,adivaniagctn.e organizaUon and :Eurther disadvantage empl:oyefls and :5ubco:ntrac;tors,.Fioroe, threats .of' rnree

.J! - _. - - - ~ - _' - - '_' -

:and,abuseare used, to maintain com:p~iant\e and Yom1cJoocc sti~jecti:on, Trai~j_:n.g cos~ are k'ep't It) a :minintum. !lli .. C'CC .•••••• S'Sl1rot.' to on;t'm,l~e' tit - ~·"ii:"·:·r"- -:-' - :'.'

__ " . __ I"~_'_ .. _ue 'u"""lness,.

.Ecological susloinaoiilitjl" (E~,'I)

'libe e1ilVirOlune.nt is reg~rded as a ~ free good~ ~o be' exploited. Ownerslmnna,gers are ho~ti'e to' env'ironmentdamvistS1 and~opr-essl!.n:es:J:iomg()\i'e'.rtmlent" o1her corporat1nns~ o.r commilmlty groups . aim.ed Iltacihi,lfiV.ll1lg ecol.ogic~d s\15:taina1biJity;, Pro .. environme:1lta~ actiQl1 is see:nas a tihrea~ tethe o:rganizaJt1ol .. Pbys~.callJeoo.ce extract,io:n and production ,prcJe.c$Se.5 am used whicb djreci~:y' destroy :fiuture pr()ducti~e capac~ty WiI,diordamag'Ct'he ecos,ystem,. POUillli_Dg,by~p!fOducts Me d~:scb~d :Into th~, biosphere 'ccrusin,g damag,cand

i5011 complian~wirth te,ga~. -c,··'remf~1'8 in ~ndustrlalrt:;latiQns

req;UL_~ .'~ ~m __ . ... ~

, ... ",·t~.~· .. ~· "".,.......,.,~"'.:o.""', 1 .. ·.' .... ·-:1-,':'.,;1 .. , ,_~.AI. :"'''' 100 •. r;x&!l,~!II,'!!rJ n-U!I; n.i'I.iIIIlM~ .;J:'L!AUU4U:u:J: WW ~ ' __ ~.

.H:wnam.remllfC:e :itmetions: :slKb as training, IR~,o~fzat.i!on dcvcto.pmmtt tow'l..-Uty .mana,geme"nt(TQM).are lnstlt1ted. bot: '(herr(: is~i!tUe inle:g:mtlo-n be~n them. Bas-icaUy the' orgarumtion pUBUCS a po]j;ey' of 'btDev·eleru pa~ernaHsm \ritbibe ex,pectation of i@!m,pl~ee lqya[~iJO

C- .-

-i"_---_ -: -11--,,'_ ':.- -II -_- " ii -,.::_"'-, -,," I. W,' I , :

re:sPOJlse. o.mmuntl;Y concerns: are

adltressed (In] .. ywntRtbc ,colllpanyfaces

lsk f" -.. 'h' .. -.

~ . ' ,i 1:'1 . - 1"-'; I - -'-,- n-'- r" '-". - ~_ -::-i', -,~--r: _ :-~I~--~

n .. " 0 .. proseeWlOO Of ¥Ii' _ere nega.tlve

" .. Ib,~'" -, ':~. ,- ,~-;" il..,:-~ ~ :-..:I,,,,?,,,~, c in-c· tm: act

PUIlQ,l~;.l! ,may naYC a, ~!ul1'g g, . 1' __ ,

'OD the QOlRpal\)!'~,finane,tal bottom. nne·. C'omp] ~anccj,S unde:rtaJren.malniy as a.

'n+·'sll. _·..;liu·tou-·""n _ ....... ·t .. ' ..

- li ~fi;J'Ii\I-~I_ ~~ U, _.' I~~_.)~'-~~~

lluntt1n B:flr9lainability (l1S'I)

The_e is a sy61telDltica!tt~mpt to integrate; bmn.an. 'res;olBCc :fbnc:tions; 11}10 a ,coherent. HR, syste.m.to feduce costs and increasee:fficienc;y. ~le are viewed as a. signifiootnt'sO'II.l.roB o~f up!.nditm:eto be; used. as pRlduC:ctive.ly as :possible. Tccboicoal, and sl~pefVisl)ty ttDlning is; augmented, WilD. hwnan .reladons (int:erporsmaal SkLUS) training. 'n -=-; ;-1l'fJ~nt;-:mtitln mDJ' institute

-, :e: O.ie.------------ - - .; -.-.--.-

~ramrnes ,oif·team:wt'ld:: mound

,iI"""·"W,D

.s:ignitiCM11: business ~tQnS and genemUy' ,p_w·~ a w.lue'addingmlftler itlmR aD ,cxclusw1:br 'cost ~MtiQn :strategy .. 'Ibere is caR.m~ caJJculatron of eost"":bcm.efit rariosfor h,1m:lM1 resource. expend'itmc t:o e'llSUJ'iCtoot: e,ffi'ciencies

:finn~ poten1ial.~i.a.trinties: fiom i!1c,tuions tlitat. Wi.gat ,hcwcan.advorse im,,aCl O.DJ me en:rironmat. The :most flmdous envircmmentid abl!lSes am cUmlMted, ~m~,~,ui.hlt1-·- tbosc:whic;ll oou:tdlead to

:p Ie. " .. :y ,... _, . ., ,'. _ , '. ".

li1tisati.ml or strong community ,aclion ,diIec,tcd agalnst. the 'fum. rnhe,r ,e,nvj[\onm.mnd issliiles" wJde:Ia ·are tmlikel" to a:tJtmct lhig~tion or SltTma! cO:trUlulI1Iit:y a<:tiQn~, ue ignored.

B'ool~ical' .susta/nability (ES4J'

Poor environmental praoticeis seen as an importtmt iSOUrce: (If avoidable 'cost Eeologicaliss:ueslbB;tgenem~e costs are, ~""matical,1~ reviewed In. an a'ttcm~ to

a:7 ~~,;; .If'"

redu~, C'oS'lsmd mc~eftici$1c;i(!$;by eliminating, ·w,.to and by :mr.iewinglbe p[ocme.mcll!t~ produetio:n ad di·s,trilndion process. !heR: may ibe ac1We' invo~vrune·n,t :in some sy.stematlc, ,approacm men. as t:ri>tal Qua]jty EovRonm.en,fal, .Management (ISO

1400 O. :Envi:ro,Hme.nml iuues are, 19nomdiflhey are; not seen ;as.g~eratmg avmdabtecosts or mc'r,eaSlBg !e:fficlcltcies.

are achieved. Co,mm.Wli:ty projects are

-" A ... ...., . ..:.r -- ."'~'fO- ~"7,,,:I'., ,. 0 ,~'a',~"I"'bfe,

LUllUfOOUUl!.en l'I'U ... """ JW~W!l "" p ... d",,_ ~

and. where a, (;ost benefit; to tIile ,company can. be demonstrated.

Pftase &- 'straIqI- - - ,-, -0 proact- '-I'vRy-' ,

I ~ _, I", I . _' -_, I '. "'.-. I' "I " .. '

"_ - '!!II 1,, __ ,,_:_,,_"_ ,_. _' _ 1 __ I' .. ' . _ ' .' ' I

.Human SUlSta,in.ability (HSS)

'The workiowc :skIlls .mix and diwrsi,ty are seenas in.tegml ad vitally important aspects (Ilf'co,rparate and bus,i:llI,ess sntet1cs. lnt,cUectua1,and sooi.:d. capita~, areusedto devcl:opstmteg;e adv,antag.e

""t.4"'""'~O't. ~"" ... , '''"''''', ,~.,..,.. ~in' n'l" .... d', , ....... - "".,.1;,"""",' .":']·Cj ... ,. UD,UU,a[l, ,In.'I, ... ·~,W!glvu. -~ '.r!i~. ,~~ ...... ,.,,- .""'_

Programmc-s are Ins.tituted, to :lie~}rnil Ule best, ta[entlo the c:rg~iza:don and to dmuik,p l11ig_h, Ieve1s ofco:mpe1encc in. h~.dlridual's, and groups. In addiuon~

skUls are' sy,stanarized tQ 'formth,e: basis of corporate competencies 50 tbat the O1pI1lzation is less vlln,erable mthe less of hey~ndiv.idUals,. Emphasis ts pbleed

on. .pr-oduot and service I.TIiB.ov,aUoll. and speed, ofre:SpaJlSe to ,em,e~iDgmad.-.et dmum.ds .. flm:ihl.eworkptac:e practices am strong fear[w:es, ofworkpJace culture and. oontriblllte~D thcloVOddbrce ltiding more balanced lives. CmrunmiUes affected ll~th.e 'org.an:~zaUo:n ~ opendoli1s are 'taken iAto' account and~nitiatl.¥es'o adcire<ssadvefsoimp.a.clson 'co:m:m.unitile5 are inj~g,tated .. 111ltO ,oorpmate s'tr:a$egy. Pmthermo[e,) the corpomti.on, views itseU U Im.e:tnbw ofcammWlity and as a ImU:llt co:ntribute·s t:o co:mmu.rr.lty betitennent by offering :sponsorship m:empl.oyectime: top3!Wc~pa:te in projects almed.atpmmotingcommwtity c~hes~oo. and wen b<ring~

Ero.logica/ &usl'ainabm~9" (ES"S) f,[(lK~.lv,e environmentaJ strategies, supJllOrt~ng, eeologlcal. S1lSt8!mabiUtyare: seen as a :souroe of stt:a~cb'Wiincss oppoRUnJ.ti.es topmvi:de cOI:npetitivec adwntage .. ProdootredecSi.gD iSlUed.1o reduce :mamria:lChtoughput and to cuse: .ma.er.ia~s that. ean be recyded. New products amd pmce.sses iare~ developed tha:tsubs1itute fQr or displace existing enrir-cmmentaUy dlam_3g1ugproducts and p:rocesses,or satisfy lem.ergmg 'community ~needs:around sustainable .issues (reforestation;. treamentoftoxlc, 'waste). The ,orgamzadon seeks ,oomperltiv,e~eadersiip' through spearheading e:nvi:romnenta'Uy friendly ,products and precesses.

.Human s,usfail1abiliily (HS6J

The ot:ganizaUc:macceptsi responsibimy for contriJbuting~o tbepr,ocess of rl!newlng ,and npgmd[ng hrumnn l~::l1owlecitge and slaU '(ormatIon in the c(),tnrilWlity and. soc;ict:ygmeraUy and is a. ;strong; :promoter o:feq'lml Opportunity1 wurkpLaoo dJtvemity and vrorl{-Ufc balance as 'lWOdp:~aee priiEleipl.es. n ado~. ,s. s.tr11ng: and clear]y defined ,corporate ethical pos,i~hlfi'l based on. multlPle ,staikeIilQh:ler perspcclives and seeks, to' exert~nfll!le:t\ce: on the key ipm1ie1pmus in. ili.eindustr:Yand ill ':!loci.ely ia general. to pursue human vmlfare., eq,UJta;bfe and ,j\Ji.it $Iocia1 praeticesand th.efuI6ilm.ent of.lulIllm:l. potendal of an. People ,are seeD as va~W!b:I:e ]Il thei~r 0WIl. fligbt.

Notes

,Eco.log.ical,msctafnability (1£5'6)

11iIe orgoo.~zat~Qnbec()mes an, a.ctive promoter ofoooJogica1 sustaiuabiUty values ,and seeks tOo ~,nfl~~ncekey participan.ts m the: lodustry and society in general ... Bnivironmc.ntal bes1pmctic~ is espoused, and enacted. because it is tbe fC5,poansible til:ingt)Q do. 'The ,orga:nizo,ti,Q.n. H.les to assist sooiety~Qbe: ,ooologl.caUy sustai8abl.e and.uses its. ,entire [ang'e ofproou.ct:s and. services to 'this end. The: ()~Rization .~spft!pamd. 1DlIi&e, its in.fl:uence to pro:mojje:poS'~d,ve sustaimalbUi.ty pol.i.cles on thepm1:

of g.m'erllmenm, tbereS'lructuriHg, of mm-eis. and thedeve~.t)J)metU of ,c,o:mm.unity vai:uc-sto facilitate th~ eRlcrg;e,lloo ()f asustainablesoc:.lety .. Nature is valued. :For its 'OW'D. sak!e.

D. Du,hy and A.. Griffitb!S,~ ",.It .s:u.stalnable CtNpmia;tion: Organizari:oll'Q,l Renew.al fn .Atwlmli'flt Sydney; Afh~.n: and linw]~~ .1.'998.

2: Anil'OO:t~lh,-cenu.ny I.egal.lawt~t, Sl1:phtin ;.1 Co.mm:ent!1ries.not~s roof P~U!tarc:h gave the credit: {m l1b:is, to 'N~um.:a who,. • HndiD,g anhi:s 3~~!lllln the city tom to .pi~cs, by two rival fa.cHQiiSof :Sa!b~~e!!,an.dR.~.unalls. 1:hough:t. it :a: prudenl: and[lorl~t~(i measure (0 :s:ubdivfde~lhesehVQ i_!Iuomany :smaller ones.. by ii.nS!tlWt~ng. ,se_parnte sOociel!ios .of evelY nmnua~l.'r'ade oodp:mfess~ofi.~

{H.J. Stt~phel'iJ. Ne·w C¥J,"'meJ'#'r)rie:s on JAe La~.~rs Q/.Eng,tand. 2ndc(ln, London: HeW]' Bl!Jitte~1orn!h. 1848.pp .. t l~! 9).

3~y mr'::rre(lto these: entil1cs. as unb!f!r'S,itulfl.sO:r cmlegia" mean~ng·8athtofied. ~Qg.etb.[' .. fntJJte Miidd!e A80S:~ uihl'etstfies :oodc:oU=se-swere antoog the ;fiil'5t organizations to 'begmnted charters, t:o opemteindepe!ldem~y of ChurCh eOl1lm.d!.

4 'l'tmt'-Life llr;Jtary ,()!Ihe, ,W1:n'IJ,. '~Pow~ofthe crown". A:m~:erd.am; T~nre,.lif~B~ks"I99tt.Il. ~.5~."

S Thf_S s.pec:ialUHtmmt meant th.ottbe- East india Company 'COtitdWldeoo,ut Us ,competition ~n the American ,coloU!~~. The American oo~!XIjsts objected LU, p3y1RJ B~tiiilil. 'faxes wHhoot the right ofpalliHC3~. ~repR:-sontaUi)nand 'by .rescn.tc:d!.a, ·Briti's.h~based corporation be~Dtg gij~, a, C(!D'l:rpetnivcadvanUl8ehtl American trade .. Sol some Bosltonians~ messed. as [m.diiom~ emptied an East Imdia Company C:q<)1 of(ea, ill/to me: hartKmr~ c.reatil!lg a confroBtation wi,th me' Crown that: ~ed ~o 'tru: 'fevolutiollary w,ar., Tim~Life H':fiotyojthe. W(ff.I(J~ 'Winds ofrevol.ution.!'. ,A.tI:Is'1miam; Tlme>-Uf~ Books. 1.'990,. PP'. 1109 ... 5.

6, 'Bndi~ IOOrpogtC gt,1Jvema:noo\ 0::: ht1p;ft'NWW,;~tjcal .. m:sle:Qrptlfarions> (acc~d r1 December 2.0()!I))..

j qttp:IIW'!N'W;l:';ltro31Qr:gIcorpomfli0ndfco'B~ijJl,tm:I>' I(accessed :1 '7 ,~cember 20(0)"

8 A. Kennedy ~ The End ,oIShQr,enQlder Value,; CbrpvJ'at;omaf. the

~Js"Lolldon:; Orion Bush!.~~ 2000.

9' T.F1u:nGry~, ~nclollesom:cpmiri~·., Good Ufeeke"d •. sahll1d~y .Her:'Qld~ Sydney,,), M:areih 2001, 35-41;. T.iF1ann.ery.111e ,ifcem'(J/ Froflft'er;' A'_, .BooJogiculllislfJr;))' of.iVOl'th Ame,rlc~ mul i~''S PeopJ'(!:s".Meliboume: Tcx.t Pub.~isll!!illg COM~,!2001.

10 P. Hp!rkl;iilS~ A. Lovin_s and H. Lovi_n;s~ N~ffirQt' Cdp#(,iJi~m,: Cl'~fi:ng the N'f!J(t .lndu.S'lt1'o1 ReJ;'O/ution" London; Emtbsc:an.1 '999 ..

II T.F .F~annel:)', 'T1ti!} Future .Eaters;' Atn .'E'en/ogredl H~taryoJJ'h!(t .A:ltttrai.uitu:t lAmih Q"d P~:ple" Pon Me]ootlme: Reed .. Books. 1.994,

12 :8. Had, "Beyond. greening:: !tmt~jes fora sWll3Jimab'to wolid". fia'n'tlc'ro BUsiness Rfl,Tiew. J.Ftb 11997. 61~ 1'(" Thils quo~ p. 16.

1:3, :0. Pearoeiltld E.£btbler. B.itJl!prl.'JljiJl'a Stt~'1(J.lff(;Jble.E.t.!{)It()my. London; ~Earrthiscan~ 20(M).

14 C,B. ~BrWlt and E,R. Auster, 'Pmacti.¥c etlili"i,ronmcf:l:ta:I! managem.enrt .3:yotdi1lg '~he: m:dc 11Jp' • Sloan .}J;Qn~.gementRcvltrW.HJ90!,31. 7"-1.:8; .

.A.A •. Hoffman, .From Heresy lo,Du.gma.: ,.4n .lmtit~liQn(1'I Jlistm';ll of Corporate .B7'I'v;ronrnen.tnlism" SaJi'I F'ralildsoo; New~:d1ilgton PRss. 1.991; AJ. Holffinanr 'Tnstih;Jtional ,evolt.uion and chaoge: eill.1V.irm:m'tC-nta~i!im and ~he US cbemb::al ~lrullitS!tty',~ A'c:od.emyQllii'l'a"QgemenIJo,u"'J'Ql~. 1m'. :2:21(4)"

35 1.~1; A .. Sc11aer~rand B. Harvey, 'Stage mooe]s of corpo~tc g,rooning1. Br;&.Jine~ S/~tegy,tl~d th'f: Eu~irol1'me'l1f. 199!8. 7. U)9-.23,~ 'N, Raoine. ~()ev~lophlg: Imviro.nIDlmla~!11Iali!age~~stmtegli.es~. B~iS.im;!~:5 Slnrl~'{J'nd I,#le En~lj'rnD:mett'. I~n. 4. i. S4--6S~ R .. F:~man. 1Ii. Pi.me and FLDOOdi,,'fmU' shades Qfgreen·.~inR.Pl!'eeman., J .. Pie:n:e and It .. Dodd (cds)" &:"jro\.lfm:eu/ulum (md the: N~I £Qgic ojBusilttW. D.llriO'f1d!: OxfOrd Uini:venlty .PRss., :2.1)00. pp .. 3,7--62,; 'V. FI!Ul~ The.Uonug~me,~tQfEcpJ.fJgicflJ' ,/n/iNmallan.:' Urui:enland;'ng .Hmf.· ,Of'gani:If1:ticllls Appl1OOc./t m~d Stm'Cturo SrutaiJj'tJibililJ~ 1SSU1J£. :H'oll.ol.lrS: Dis.scnatian. &11.001 of.Managemeli1!t, Queensland Ufii""efiij~ o,fTceM.O[Og)1'.,. 2.oo(t

15 J. Amlin, .Sifrotegir; CoJlaiJQtotih' .8etween Nqn~p.'f(Jji14) and .Bu:si'lte.!$(!:s.

WorkIng ~rll:per.Harvard U!ti:'!!'e~U)'~ 1999.

• IIAHIofllObali .urvI:Na

• IEmerll ... 'forcn ,dmtngsustainabllrt.y

• IEXtemll ,dIiIYera of e'bange

• II'nbHMI ,d ...... of ,dance

• CDnClulIonI

On, II Novemlr,er 2-001, .!,Kofi Armaniold the (ieneraJ: Assenl,bty o:fm.e UN'::

'One iSI~,ptGd. to .saythat W~ must now foous all ow: e~rgic.s on the. srruggl~ agairulllmorism"and on di:rectl:yre:llated.lcssues.Yel lifw:c did so ·'W'eshould. gi¥c ~, tlUl'or1Sts a kind ,of'v.icmzy:. let iUS· rmncm'ber 'tIioo: nooe of the jssucs that facedllSOD Septmnbet U, bas beeorne less ~nt'. cIh.e nmnbef' (I.fpcop.Jc:; living on: 1m than one dio:lW: a. d.a!y 'h:as not lkc~d, '~ nll!t!ber or~p.te dying QfAi&.~m~1 ®u~lLIil'oSJsl amII O .. Il.:el' ,ev,- -.tab~e.l~sc"~-: 'b· ;as:--(lI: ,d-'~ c.~"~"! ~'-I

.11 ~---Y-L- pI _ ell L UL _ ......... ~ __ IL_"~.· ....... !,;iU. cUJ!C

f~,tdrs dmt ,cause the ~. to advance. ibiodii"'Crsiry 10 be lost: and illrle ,eatilhts :atmosphCJe blliiiann..hav,e nOot: dccoteased. ~

SliIsWDah.ility is now widely heldt'ODe the desimble path. fww,ard fur O~.-:lI·i ii1i~"i·''J7SI--tiOifis:.Thc:nOn~li1, has an iflc;re-as~Q'gc, 'p.UR11B Qnll~~iti.tnac,,"~ Yet

.JO-~ .'lJ "III!",-a· - ;jJ"

t!here iSJ still Httle o,greemem OD wbalt sostainabill:ity means or ftow we C1Ul a¢bi~ it ConsequcntlY.ifiemmcnband corpomtiOlls :are,skulggling; widllsstles ofsurvi.vaJand. Mnevml c_ .forf.bemse]v~,(of 'tae hlm'lD (;ommunity and for me cx:o.sphm"

We seefi,w, ~ey issues p.ressunng carpomtioAs tobeco.lDC m.are respo:nsiible global cltimns, .. The mti issue :is poverty~, There are mil

1.2, bi1li.Cll!lpoorpeopie in til.!:. world. 2 ScccOncLm1!lcb o.f 'theima;~rialweaIJth is] owned. by tbe major ,corporations (lIfthe deve'[o~d 'wodd.

me' sate o:fb.mnm and econo.mk develop'mernl. 'If cQrporations integmte hunm:n.8nd ecologlcalsustainabi~ity irllilO' their busiaess p!,Lannhlg.~hOll commWl]ty~mar1ra~tpb'ce and v.mrIGplaee concerns can 'be ,addressed a1!ong:,S!ide those of the planet

Emerging torces dltYln,g su.lainabliity

Th.eBMllih SUmilElitin 199.2. endorsed. the need for a poslti.ve .relal:i.onship between,ibe environm,cnl :and business and. i:ntroduced me C'on.oept of 'sutainable de\!CIO'pm.ent~ ~ genemUy understood ~o nJ,ean development wbic1_b Imea! the needs; ofthepwsentgenem,tion wilbout eOm]lrotnlslu,g, '[he, abiUty ofruture genera~~Qns to mee1 theirs., Sinoe then~ rliltegratinrS me soc~al~ environmental and economic di_men~dons of susmillta:biUty ltU'O a holistic process has pfO\\:en. a major ,chaU.enge~o business manacgersj, 'commmityacd,vists~polidc:~ans~ l'lutea,u'cra!lSaud thooredciufils. CQnseq~ucnU.y~ 'the- sustajnabi~it:Y deoote mngccS over qUe8,tij'oAssuch as:

How can 'we wl:ue and measuoo na:tlllral resol:Jrces,?:' How can we dJisbibute 'ccolLQgiicalfCsQurccs bet\.vccn and 'withingen.era~ions?' .How ,can we build hiuman: capalbUitlcs in corporations and jn .socIety mJtiJet tImn. deslro,ytllg .'hem?

We argue t!ltat theseissues "Monl.y be re"sollvedt;hrough forgingcreath~e~ ammlcesbet:weel1i.cltlz~ns. gove.rrumoo.ts and corporatjon& •. The com,p[e~ L~I!lC:s of s:usiainabHity need to be addressed bya new pomka'leOfiCe~ 8. mix ef private and plllblic acm~, 'incl.uding empowewd p~b1i,c Ulte~rest grtrlPSi~ c()rpo:mt[ons~,mul1ti:nadQ.nalo,rgMlzations. naticnaland h~ltematio,mdgQV~mmmlSand. industry assoeiations. TItis kind of c-onceded :action .is nce~d 10 addrj!:ssthe ~suscalTlabmty deficits that :have c[1J:l:erged as ;1 Rosu1:i of both 'command and con:tro.l·regu]:aUon~ where: cOlllpl_ianc.e'~s .requirod to Bet requiRmentsor SlQdm:Us legislad.vety~ and. market:..based measures,~ such as 'eJlviiro.nmeh;caltaM,e~s andtmdalll.e pennU~. Intbis newo,rder. (;orpo.rate .actmsw:moof~roed fmmei:r proaotive 'engag,em,e:n,t wi.th issues ·of s~1ainal'l!~Uty and their contribu!tilotls to. the Mlfare: o!fsuciety and thebio$plu':;ft; .. This is not :simply idealiml ,His an e;merginJl; fceality; An. ex;ample here is the :s~gninoan:t conm.bution that 'the: elnvirnnmtlltd ~edm,Q.I.ogymdL!lstrie:si aremaldng ~o the SUC\1ess

of some ceonomie-St-stl1ch as S:wedeB. HDWeVCl't we: haryc~ a. J:ongway to go to make (fils: new reality siml,;.I:yUle way 'We :n.O:mila'Uy dobus;~n.ess_

This cnapter I.ooks at the: ·extema] and internal ffir-oes caliilSing,c~rplrati.on_s to s'hi:ft.to ,3 more soei BNy and responsibJ.e ,position. External pressures, on

the fum 'tome: fromgo¥trnments" ,ool1U1l.unity :member:s, (ionsnmers~ CUS!tORileIS andmatket c~~ctat~OlilSi' otimr eornnnnious;. i.rmust-t:u'

Ii-- - "" "ct"--- .. - u,,'

assDcian{ms, and other nQn~g(Jv~mmcnt o:rgaaiz.ations. Tbe illtmm~ dri.vetS ,are corporate leaders;md change agents w~ho see tbJooneflt of the bus:lne.-ss lease for .s'UStain,abm(y;, Maibting. human.resourcel and!, ~,tiQIS' managc.s ~ :nowmaking '~Itslons inOueu()oo,by' suswioabUHy faeb.!lts,,'7 :Empl~ees~Sbar~holdem and Ln:vestmenl

:. C ,-,-- - -c.':,_, ,"~ ''''''''"'''''''C!';;-ng'·~·\-c, ';fi'~"'" '~""rm" aDM3:Qalnst sus~amo!bm~

COrHpanl . ..", 1· .. ........,..,.-. .' HI,. • t-""".~",:v:, .- - --"''''' '.t'----., - - -, '"'' -- - . ,,")'

~teria. such as the maintenance of inteillecwa],. kn.ow.l.edge md social ca'pltal~ c.(}mnUtmcn.t and w]:oos',r1sk :management and Increasi .. ty~ an. inllM~.tiv~ 'cmporate: c~n~re~ AU i~ f-a~tor:s, tfurt wm. assist in the long:. tem15um:val oftihe :inn in. the new c:oonomy.s

.Allotber dri,ver of erum,ge Wde'I]IIIlS the :[mtCmasinglnlte:lIC'-[;ttba!t. ,corporate leaders me taklngin S;llStainahm.ty~. There iss :morn.l pU~K~to me: dli.ft: thal goes, beyond ,mUona] umilty' iU!ld. bwiness adva:nb8c~ This, ne,w issue is res:,pomiblUty: to futw:cgemc:ratiollS and 'tD 'lbe wodd as we know it today. leading writers 'talk: ,oineYlt models .for' coqma:tio.ns that wUJl dic,tate a new 'wa_' ,of ooins business. Fortl1e.se wtite:rs~ Ole ':firm., .nke nn,y othel' as.pec:t: of S(i)Clc~ •. lsa limng, cu:gulzm in, an inte'"joru'!.~ted ,ec(l'f~ical (:"Ommunlity~, \'\Iherc, caring for otbers is (h,e l.ong:--term.funeUon"Or each. c-omrnulljil:y member:.9

,0.' .~ .. , . ,._U~t.t;. I' '~-iI; ICO; .. -. 'rata conscJ~ldatlon

iIIOUCURG ,on B •. IQ __ F'pO_ _ __ .... ' ..

Shlceihc l5t710s~ ,d.eregutO!tIO.n and priwttZBitlon.lmverep.tacedi state

" r:-'; .", - '.: .- """i,' ,. -·If"· ..... , •.• ,'C.~, .. '--.--, ·:'v- - f; '"~;1!- .. ~.lIW"(~ • TjIoe, ace ted uliterven1iWl as "'Ie ptihlU"m, Impernh ,e,s 0 .~I)~~ .P<!lLU!t ~~L ~,_ ,ep _,

ontuldGx,i:sd1at: po:Ucies ofneoliberalism sucb as dercg,ulation and free trade wiU !Shift. reSOUlliCS, 10' 'unde.rde,veloped 'C{lUotric"oS,. Wbic,h wiUin turn in.cc~ 'U;ull[rweaHn. Fbrthem1.ore~by embracln,g globalization.cGunm.es can s.h.:uein eeonomic pwgre.SIS: .and efficien.cy;. Through a near-,bllnd

a''''i"'Pl'iI'"' ..... '''': ... f~ ~t.c·"~ _ ... T\C .... ~i:r:; ,.~I ...... 1!'" ·.'"""' ... "'yc: ·rc<>cl:.eda cjjl·tua+iii!i*ll- .... e~'bV'

I .... 'Ii"'W:,Yu;&I"'~ .... l 'VI" ,U:I ~ ~v .. :.,. .. i~iI.-lg'·.,""- LI,~a:J_~ ~' .... I:I.@I. _' L. _·~_·U ~. 'P!~V.'!IHII w~'-,-_.!IIJ~,_.~

the 'complex. and ,globall op£mdons Q;ftfiun.cia~. madi::ets and maj:or corpomticms, la' beyond~e power ofuttonalg))\l,mnneonts. Now aimos't

.",. '- _. -

thr,ee..qtw1em oft~ world'~s Jmde: is ,COA,troUed by the ·top 500

oorporations~~ntra: .. firmtrade. aeon-WIts :forlllppmximately one .. thifd of an world trade and.fiHy..one of' the: world's largeil ecooomi,esare oQrpomOl!lS.I(! Tiheretont ,cunsolidation ofcmpora,tt ~"across

serv.iel:j moufacmring.and extractive industry sec-tom has raised queai,ons oonceming thedefemcelessness o:findlividuai1 members of SO!:iety~' ~I

Some co.rpomdons:are now in. a p0s1ti.oll! of liIlIlpI'BCooented power. This, raises the issue of now this power is e~CllCised and forwhoscbeneftt. TIl.e trend toward~ world .. wide corporate oO[lsoUdadon has 100 to an emotive debate 3OOL!JJt political infiuence. democratic mpl1i41abour standoods;hwnan ri,gb.m and Imet,luitii.es within and between. nation states. As writers sueh as D.avidKoncn puttt. if globa~.oorporations: and financlalmarkets c'Ontlnueto be acc4)uutable ,only to 1he.ftnanCiaJI 00t101n Linetsocic-ly will. race mate- environmentaJl desku'C1ti.oot, the m·W:8Inaliz~ul.oA. ofpersmils!,commtilni.tie:s~ .cuinn:,es:andtbe. Icreation. of learned locap3{lftyand h:clpilessness.]:J In omer wmds,~, thebelief sysre:ms as;sociated wlth n~olibenlHsm. are open tQquestinn and d~bate.

Socl~al ,and ell.rooMemal' Ilmpa,ct;s ofgloballzat10.n.

'ul:obaUzation bas, opened :~ets~ dlSperscd capita~and grown. inves'tments ,and. .has been endorsed.~y most: lead em of devel.oping and developed. ,eoootries" .But glaba1ization~s .alooreinforcing oo.d le:dcnding mequiti~ inhuman H!villg rstandards. GlohalllCfwity; $Udil as~n¢~ased. trade and firumdal :flow;s,. disproporti,otmtdy ben.e:fits:the ric;herCOWltrie~s .. 'Pore:ta.mp~e. the USA receives m1J~~hilrdso,f a~l jn,teman.onailI11lVestmenl. wbiUe mast developi:n,g eOM.m.esrecei.ve l:itde:.13

.Bnviranm.eut.d. degradation has social costs and socIal dep:r:fvJliltio.n has IC1l!Vlronmen.tal C'OS!ts, .. As the E-JreCutlvei Director o:fme UnUed. NaHons Bnviro.nmetl!t, .P.mgmm (UNEP)~ .K1aus lOepfer~ .has po.tn~ed mIt: "Fifty pcre~nt of lbcwodd ~people4i now live In clues. and of1tenthe lmos:t:tox:ic eleme.nlt im.iheetWir~nnlIe:n~ls ,P"'W~.' '" The en\irorunen,ml 'CO$'ts oftbe g~abal inc~reaseininduslliaJ 3'CtivWty area~oo dism:bu1tedunevenly between nations.

R ..... .,.,..,r·' ·m· ...... .,~·~~t ... ~ ...... ,~ g~··t ... :1.. .. 1 pm"M"itli'o~o:'"" '''iI"Id,f:~e·~·· in·c ....... ',.·': '~iI"I

~,..~,~, L _ ~~.'!I!P~IL"i~J_ilW ..,'~." ~~, I • ~;IJ,~ I_~, _ I~' .. ' .. 'H.~", I¥ HiI~ .. lUll" __ ", ,;lj:~~!\,p1 L'_~~~

a.tmos.pheric C02iltaU .. thne h'gns .. Eac'h new set ofmeasummen!ts: canfinns tile link. between. g~.obalwarming and cuban emissi,ofls.Climate ,ccnange is now aocelor,atins so [ast. that ·the Areticis e,xpec.tedio be ice free in s-mnmeli witninthe next fifty years. oo.er effects inclllldCtbe~ whrdesale de5,t~etllon orrCora'~ reefs and the poten,tial ft>:r a drastic aiil:emHoo of-the social and ecoaemic lk€e ofrrumyoounuieSJ. B The

u:rea.Ib.ef-'le18i'teddrunages :associated. with ,g;labalwatmi:ng have the mos:t disastrous cB'oets oo.tlu:: :poorer~unLl1iurcd natio.ns. 1'£1, th.e Snodls,.of 19~8, fOl'lnstance~tw~,thjfds. ,of Bamg'ladeShwasi :s~Jb.me,rged.,!6 Bye,n. critics of the K,oto .Protocol on C1imate ClWng;e, agnN! tlmt ,g;l!obal wanninghas mass;~\ile: enstsandtha:(. the, ~,deve];opins. coun1rieswiUbc bHmucbhlFder~ by the 'rises iniempcra,ture,. ~,

lnequitieso:f tins :magnjtude fredmoN SOCial, l!h1res,~w,blcb in t1:u':& ~acemates $l)C;inlineq-uides andwr---eaksmore e.nviwtl_rne;D!ml dcmuctjion. The irn,plif:attoll. for oOl'pomtioti,becomes ,onl.ytoo ,appare~t. Do they de;f:endand. take pari,i,n thj:s systtm that contributes to' the5csoo:ialand~ en.vironmeural proMems or dothe;y :shift ac:Hvhl!e8tobecolnilpart of Ibe 'sO.hJfion?

Uhicb: Be¢\l~ the German soeiologis't, ,argUes that ,s.~n(je many of ithe.se seeial iaml! eIlVi,TOl:1!nmntai~. ]mpacts i3lie: global .• , incalculabl:t:; ;mH: 'seal.c,

.. '1..1 d' . "L:t • "'d., .Ii., +Io..o..".~ til .,

WlUUlumt:l. e arr· . rn:ever:stuAe,oopmn.g: Wl~LI mem 'IS ...... jOnui tne capacrty

,ofllite kadld,ona~llnstiJtutil,Qnso:f scienee, law and politica~ sy,stcm5. ~18 ,FOlli~e" dt:e Qostzs· ,atldlcmg;~tem1, 'c:ff"ts, of the fa]lout' oftbe nuclear inc;identat ,Chern DJJ::yl; in. 1986 iand, the l.ealcofmetJllY,lisoc,yana'tega5,

,at the Union Carbide' ,fiwtory In B&opa~~ I:mUa. iu 1984 3_fe! still in d;ispu.teil, pemaps st~U tnbereckon.ed w,~th .. L~lkCYl~SCl~ thc:oo is; mucihunoertaillly concernin.g: me prec~~sc'natJxe of the, re:.atl.ons~i:p, bet:v.'e~D the hl!l.iM,~up or c,.[oermous:ec. -,--c!tinthe ,3.tim:n.e;n:herc an.o-:]oba'l wa:n:nin-. ~9 The debates g~ _ -.--- -- _ ~- ~, ..... -, """.~. , _. - g _ - '. "" g ..

,and liUl,ccrtmnlti;es: associated. 'with the, outbreak ofbovbw spo:Iil,gilfoml eDcephahlp:ilt&y {B:SE')'~D, the, Unilted, ,Kingdom, _d the: useafgentticaUy rnod.ined. ,(OM) orpn:l1sl11sto :produc~ f()()dstuff's reflect .apu!b~:Ie less of faith .in the ability of <rur insti:tuti.(lDS to deal witbthese: risks and unee\(tair:ttJie~. As: Joint'! B:rowJlle~ Pre7s:i:d~ru af8F'\ .put it· In llisr~cent R..eith :Lect:lU"e~ ~We ,are~(JJ iii world withom: eertaiaty - ,exce:ptfor the certam.ty

0,(/1' .. ~--·aA~:2@i - ,~, ~1·Ir4.I~Le~l!!'

~llS:ltllau(Jns of slLu;:-il QiIlcertainty~. d~sag,reem.ent betwoon. scieO!tiffiic ex'pens is el'ltphlited by h"tteru1 groups. ]0 the dIsp!ll~e ov~ the :s.irtkina: oftbe 101:1- rig. the Bnmlt Spar,. :tor ltllSl1ttu:e, [both SheiU (the owners ofthel\r,tlsstd)and G[cenpe8.cc (opposedfo the sInking) lVeigiledinto the debafct each with th.eiJf awn expe,rt: Btiv.isln;s, onhand.2~ In fberecent debate over the safety oJ OM: tedmology~. the :Oritish ncw~a,ertnOi 01JSe:n:qrabmll'ned a secret r,eponsl\nwi]ng.n~~t Mcmsanlo de:~tlmtlU¢~.y worl"edtnlmve! pm-ge.nedc mooJ:ncatio;n :ftI,pp0dcm appoi.nted 10 :keyinte.mational fooo. safety :committees iand esta'tllished an.e~'Ork of sC~lenlimiO, writeaitlcles ,criti:cai. oflheantl-GM ·oause:.~~ Pardy as, a result of such .activit3jes,Mon:santt1!]: reputation. bas $uffeJlcd considerably.

liWmltot '·prQgl't-5S~ lw:geJly accomrng 'to· 'truSi defiuhiott. YeD global ~t~e;s and. hWldreds ofregJ.o:uJ. alll.db~lat:era~ ,agreements bl.vc been.ne8~ooted.ij Th.eprooauti:onary principle is emergillg as a: key ~cf: ofthe,se mtematiomd ,agrecmen.t!.,

'The prreeawo:nary pnoople: ,is defined. in Principle ISofdl.e R~olD~l'aDtioJl on Environment and. DevelQP.mm :~ 992 M foUow,s;

.Tn. order to <pro,;'ect the (!,I;wironm:el'!'f. Ih'e./Jrecall.tio,1f(1ty(1pp,roa.:r;h ;shell be widel" QPpJ,r'ei: by STates (Jc"(JQ,niing I(J' their a~pabilitieiS" Men ,riielit"l are Ihroeats ,qf:seri'Ousor ir~"'ibl'e; llamag:e •. m(;i.qj' foJ15ci'eItJijic cerl{;!i~tyshall ,~Q' be ~ .Q!f ~' ,~Q"JQ,r

I posfpcming elMl!-,e1f:ec-li~ m~antre,s tQP~fj'l enrrJraftmf.N:rrtl} d'egmdatlon.,

lme~Qru)].~~,tsbave: Row embfi1eOO 'thtF~audQnar:r ,nnczpte.. InterMtJ,onali uearies and pfOtoeO~S: suebuww:Ler dIe C'onv,eJ)uon. anile Pnwcnt_iono,fMarine· ,PoUutr.on by Dump.lll:g; QfWastes and 'Ot'irer Matt~ (Londo:o.,Cmli'ienUon) enlpbasae the

I need'for elitlttun when mere is, ,9: ]:ack of:eon-;;:4usi\reeliri:cience olf'ea~ff~t reJatiommps. I001996 frotGcnl tolbe London CO.II,wntion, ~ thati:

.11 aw,aafe i.s s:opqor,ly CJtara~teriz:ed .tlwtprop«r c:u.recssmmtt txmnot be,. mtlliea/ i~ paten'/itll'im,pach ,on: ,1tumtul Au/tll: and tie en~tronme;nl~ lhat ltmlte ;sMll,~ot.be dumped.

I:n ,anomer' exampb::ofthe: :ap,pltcat~n oftlhjs: pri.nci:pl~ .: t!he Pari,s: CO!.l¥ImD,OO forcbe Prevention ·~f Mari.llC Polb.uii!llli (rom land-based, S:MI~ .pl3¢it:S fftc burden. olfp.roo.f on those who propose: ,change.c~'Cfi whenlhm is: M'$cicntificolddene.e lopt(n~lt a 'C3usait t~nk 'bem''Ce.ncmissiolU andcfrods.;~'

AppH.catiml (i,fthepFcca~tionary pri.ndplein :sucb agreements ·can have .lJ1Ulijor :implicati.onsrorco.rponul.ons .. i;1\ s1tuati.ons wh.eresciemific: evidence LLZimCQ[u::~U5ivc~ th.e d«lsionmalldDg becemes politi:ca]~ :ratne;r limn scientific. 11. other WQrds~ applfCaJtionottn.C'p.recaldanmyprilllle~p.le Vi'Ould impiyilNOIlrnncnt,.of as lm'm~t stakcbold.em :aspo.ssihle .. 3l1IWim: enwimDm.entall'aw a.mpidlYexpandiIn,sfielt\many :mnl'e c:-orpClra~e devc!opDlem:projec,ts are tikeiyto be ,clha1lenged under tile precepts ,of[bis principle. It is now elllshrined" if not yet fully appli~ in. national .legjslatlJJfes as weU as III intemadoll8!l agreementi.

1---'-'1'· T-I·ifo.P\J" ':':"''':-l·I··~-:-' -tll-e' V:a"II,laz'-po:-t~",jin]el;, 1~1o.a: ~U:S -B,' iUslnciss: 'Priirtcip-:Les, for

e.~Hi .. ,. ,.,11 ....... ,] ..... ,iWi,lIi:: ,~.n. _ ... ~.U"', "'~"""""-ot',-""", 1iJ_!, .... ' ._. , ~, ~,.~._ " __ ,,

HUlman. R~gbts OfW(lllck~ts, [0 Cbj'na and tllcBusrness Obartc-f'fnr

so, ,~ ..... ' -'~'1-.: '1["10,,..,":-',' ',.' -,-, ,- ',-ii)'_ ('hll:-.--, (-, -i,'·'~'i'." \.:~I\i1., take 1 ,,,~'i ,. t~ -

U:5~lnal:.!1e ,~"ej(tPnJefl~. vud;:'f cotpQ,m"l(nl:S u~,_e IlttA,C,A, Pm,'l 111 me

IC1r-Cca:tk.n of measuoomC-D!t. an_drepul:1ting s'1Stems.,Fo:r'~Mtance. thc[SO 14000 sede.s for ,s-ystc:ms~ of,It&1I'iromne.nial nmllSigenum:tw,ls 'creab:d:by the: oonabomtl.on, ofnine~;, standmd~5CttiD,g groups, 'from 1001 diffbronit cOIllD!~ries. Mor~ than 7'{SOOsltes ,are:now :regi:stered fOf l'sO~4001 c~rtlfjca:ti(\n.18 ,A:mong&e~,e: ,$J:teSI nre same of the wudd,~s most pf.JWerft:d corporati.ols.;\nothc,r ,gool]p~, the Coa[lii(JuiI for Em!v~mmne:n.talll~t :Rcspousib]le- :E;ellin!}lfties (CERES). in ,partfi~ip with the Uniled~ 'NauO:Rs :SnvinJamenl :Pmgmrnme: (UNEP')~ .has con;"Jenoo tbe O["bal ReporUng: '1Il!i~iatl\il:l: (GRl) ~n' dtvelop inditatClm to assess, co:rponlltiJIDSin 't~l1llS of '~hei:r eCO:liIO,l1ltC~ ,f.H1yl[OMiI.ental ed. soc~al peoao:mmnce.

TbedUlicuility encQwn!te,red so far ineAsmingmc,ial,ami environmental bea!~~, in the fac,-C'lJf'globalca,piitaJi~Jll .. is also pUittingpfilssure on ate UN' to takeon broader .and!mo.reMndji:ngres~n~ibUitles,. At~he W1)rld ~o:no:mj,.c :Fomm m Da:vos:in :19'99' •. UN SecJ:'¢WlY' Kinfi: Annan (;I:udle,llg~d busiues:sto SlpPOrt: a G~obal Compact 'he 'caned ~Oh,')baliZ31io.nwith :3 :Human~ Faee' .Jl'Tbe oo.mpacit is: intended to pro.fi1ote hUfnan.nsn.ts. .. just: 'Iaibour smn(brds: iud good en:vir-o:nm.enml.pmctice:-s, aJild ,mark!: an 3:tllie~mllt 'by ·1Ie· UN ID l~ad.ootbd1e private! and. public: sph:em in dIe dI~nonofa, mere 'OQlJitlble andceol.ogjeatl.y s'1!Istainab~emodcl. of d.evelopment.

A~tb.ougblbe ':g~obalizanon frmliIJ .aitmv,e," m.ove-mMlt .hasi to date dcou:mstmteo. ,a. Umitcd capacity 10 imp;lem.ent :;l.IStainabinty~ 4liJthe-r-e: is c,'lJidl!!nC;e IOi.fcnrpatation!5 C(H)pe-ratillgp~ac,tivc-lytu hm.tl more lSU:Ppo;rt to :sus'tID_rmbtUJt:Y~ :Some: woddMd corporate' ];aadcrs Me silmwing tbatt'hey aile: wi[J]lng to, push fOf' dM~Opl'Dcnl:''Wbi,t"J'.iismo[CcatltiQllsand se~~'f:' reflective .. As wCU~a_1il equaUy powerful. fotce is swemmg up ttrmlbelow:.

~i2;ed. by'mmsmati~naJjNOOSJ :ands:pr-ead 'larsel;y on ttm' iDtemc:t~ ·gl()ha~izatl.QA. :frombelow~ is an ,iolUatlve d:ifeC!tedllgaims[ thepernciv,cd :self:.;seeIdng marni:pulaJioo.S; o.f elite n.alu.Wi stat'CS aad.transooltioDais dri\iin,g ·g~oba1]mtjlonfi:o.m above" :.l~ The alms tlf ~gl.ob:a~fzatj:olil nnm.be:taw· are;

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