SESSION 1

Efficiency, Effectiveness, and sustainability:

The article compares efficiency and effectiveness to describe sustainability and builds a
relationship among the three terms.
It talks about how the global policy makers use a top down approach to describe sustain
ability, organizational- institutional systems have theoretical perspective to sustainability
and sustainability from the internal perspective of an individual.

There are 2 key problems that the article talks about – 1 being how to achieve sustainability
is not well defined and sustainability at a level of people. Ecosystem and organization is not
addressed.

By this article the 3 questions are are aimed to be answered are- the micro units of our
ecosystem imp to achieve a global sustainability, how do we bring together different
perspectives of effectiveness, efficiency to the micro unit level, and theirs the growth
needed to reach everyone’s aspiration.

In conclusion, I feel what the article is trying to say is that if we reach a balance at the micro
level, only then we can aim for a global sustainability goal of the larger ecosystem.

Term assignment – even 12-15 pages would do.

1. What they have done, how they have done, and analyse them
2. SDG compass- (he will share an article) – critical analysis of SDG campass in a
company. Real transition can happen working in the value chain of companies.
3. Company should be following a circular system of production and org- (The basis
transfer of energy and mass transfer in any ecosystem. Where your value chains are
short, your transaction costs are low, but the value that you create is high, wastages
in these systems comes down. And overall cost to society is low as compared to a
linear system. [Example of linear – In computer and software, the product life cycle is
very low. The tech, resources, capabilities were destroyed because of the long chain
that you had]

Fundamentals of sustainability (1st PPT)

1. Mainstream views- celebrate efficiency and growth. There has been an

understanding that multinational corporations are the engines of our growth. But
the growth has not been equal. How should the growth be? Probably they are the
devils of our society (this is just a critique)
We are in the context of linearized production – long value chains. Transactions and org.
It is all in competitive mode. We have to integrate these understandings to be able to
transit out.
Transition is like repairing an aero plane while it is in air. You cannot stop the org, the
society. So we have to be extremely clever to deal with it – basis principles.
 2. Sir’s survey showed that relationships is the most imp factor for surviving. 98%. And
the best thing that has happened to us is we know the importance of family and
relationships. (this is covid) even our study before covid showed that people thought
social was the most important factor. Whatever we found was reconfirmed.
3. Primary elements of sustainability:

Efficiency, Effectiveness, Sustainability.

Efficiency – value for money, return on investment. How is efficiency different from
sustainability? And how are they related to one another?
Sustainability is not without efficiency but how do we understand sustainability in the
context of efficiency? The basic idea of efficiency is very simple- is working productively with
0 wastage. It has to work for a very long period of time.

Effectiveness – Not able to do the work. It is often been the concern of governments. (since
independence, biggest budget of govt has been agriculture, even then farmers are
committing suicide. So maybe it is not being effective. It is also not sustainable over a period
of time)

How do we understand sustainability?

When these two issues are met, it is viable.

When it is socio cultural and environment, it is bearable. Means the environment can bear
it. (example – wasting of food. You dump food and then our own money is used to
segregate it. There is wastage of money. If our behavior is friendly with the environment, we
save money)

Sustainability is about all the 3 are balanced. Socio cultural, economic, environment? This is
theoretical, we will move on to how to operationalize it? This is more of a structural
understanding of what sustainability is.

- What is the most important for these 3 things to come together?

Basic aspect of the 3- phenomenon of interconnectedness and interdependence in the
reality. If we are interconnected and interdependent, how to strategize and flourish?
We are not linear, but our systems are highly linear. If this is the reality, how do we
strategize ourselves?

Example of interconnectedness- I am going to the bar, the one who serves me drinks, I can
catch the virus. And I can end up giving it to my helper. Each of us is responsible.

- Paradigms of Efficiency, Effectiveness and Sustainability.

5 variables on the basis of which we can understand these 3,
Space- geographic space or stakeholders
Time- what is the time frame
Context – that they refer to
Objective function – that they cater to
Value base- Are their value base different from each other

Efficiency
Space – point of space – referring to suppose a pump, without the reference to the whole
system. Irrespective of where the pump is used. We will just see the energy input and the
output.

Time- per minute/per hour. Basic unit.

Context – It is in a lab condition
Objective function – where the pump will be used is not the concern.
Value- no care about the cost to others, what help to others.

Effectiveness
Space – it has to be in a context, how effective is the pump in a farmland when the water is
salty? Or normal? Effectiveness is a body of space in a particular factory or a household.

Time- “it is not lasting for long” not being effective in a frame of time.
Context- real system but a closed system. Relatively homogenous. “I am effectively
communicating with my students” but in a heterogenous environment, it might not work.
Objective function – where the pump will be used is a concern, will it run in plain water, in
muddy water?
Value – The outcomes are for specific group of people, system. Typically, a give and take

Sustainability
Space – larger extent of space. Suppose I have written something nice, very good. I am able
to speak to my graduate students; I am able to communicate. But when I am trying to
communicate this idea to a group of children, I am not able to communicate. When I have
expanded the space or the stakeholders, it is not applicable. So, this is not sustainable.

If the pump can work in different conditions, in hot weather in cold weather, in different
places, etc.

Time- meeting the needs of not only this generation, the time frame in sustainability
increases.

Context- in a more diverse context.

Sustainability is moving into an open system. The context keeps expanding.
Objective function – balance various variables of the system.
Value- It is about freedom with self-control.

Working definition of sustainability – relationships is more fundamental to sustainability.

In nature, in times of distress, the focus always goes to the weakest

A study: sustainable agricultural system. The organic carbon content was 0.3, which is bad.
Now it is so much better. How did it happen? It was using the principle of nature. Taking
care of the weakest. In the farm, the weakest were the microorganisms. The strongest is the
farmer. There are in between – earthworms, flies, cows, birds, etc.
First exercise - to feed the microorganisms, and then the rest of the work is taken care of.
These theories- system sciences, theory of constraints – are not just theoretical.

Transition strategy research – Primitive community cooperation is where we were. We are

currently in imperfect market competition(perfect info, infinite consumers). Advancd
community cooperation is where we want to get to

SESSION 2
1st topic: GRI Standards
Two types-
1. Universal standards – foundation, disclosure, management
101- Basic foundation
2. Critical standards- economic indicators, environmental indicators,

To understand indicators. Look at how to transited from minimal development goals to

sustainable goals.

Indicators specific to 17 goals. (sustainability goals)

Page 10.
Is the data accurate with the balance sheet and PNL and annual report (The first part is the
chairman speech – this is not very important. Look at the backside of the report, look at the
micro and then come to the macro) – that’s what we should be checking.

 Stakeholders inclusiveness
 Sustainability context
 Materialisms – refer to specific indicators- economic, social and environmental.. This
is the main crux
 Completeness- how complete is it in terms with gri standards

See all the terms – reliability, sustainability. – knowing these in detail will give you an upper
hand.

Material topic on page 30.

General disclosuer- page 35- organizational profile, look at the table- all details that have to
be disclosed.

Look at the whole report, and then apply to specific sections of the sustainability

Pg 102.
201- economic indicators. (environmental indicators are 300, and social are 400)
Disclosure – 201.1 direct economic value generated and distributed. Not only dividends, it
could be through CSR, taxes, etc.
201.2- financial implications and other recent opportunities- have they even considered
climate changes? Have they even discussed it?
201.3- benefits and retirement plans – do they have PPF, gratuity? What provisions do they
have for employees? How well is it structured? This is the basis for why attrition rate is high
or low?
201.4- financial assistance – map the standards

[Slides]
- See the SDG goals before you start.
- Look at the UNSC report to see what are the indicators thet are referring to?

2nd topic: SDG compass

Attempts within Indian companies, Like the birla group. There are many companies within
india that are attentive to look at value chain.

It is primarily meant for industrial and linearized org,

Linearized org- value chains are long, in such situations you can take a company and look at
value chain, distribution and suppliers, and look at the areas where they can improve.
In action slide – What It does? Takes the value chain. Supply + distribution
Pre-production and post-production – cradle to grave approach
Start – source of raw material

Take value chain of a product of any company. You can take initiatives that can increase the
positive impact on SDG goals or an initiative to minimize the negative impact on SDG goals.
The compromise is between meeting SDG goal and revenue generation. It can do something
to minimize the negative. The SDG goals are not contradictory to one another.

Our deliverable – pick up any company:

1. If the company has overtaken some work, we can evaluate it
2. Whatever value chain we have taken, analyse the sdg compass to see what the
company can do, and suggest to the company what the company can do.

Sdg compass for business –

1. Understand the SDGs , UNSC goals
2. The company has to prioritize, - either negate the impact or increase the
contribution. How much does it benefit the company and how it affects the sdg goals
3. Setting goals
 4. Integrate with the goals

Robinhood model – questioned. Not about how much you share from your earnings, but
how you earn the money. The business model has to be correct. We want to reform the
structure itself of the business model.

3rd topic- how to transit

Circular business model. Circular model of economic engagement.
Social organisations – how they operate.
Highly linearized – Banking.

PPT 2: Deconstructing Philosophy of Business and Management

Education

- How the idea of efficiency has gone from a factory level – to a country level
- Then came the great depression – welfare economics
- Several presidents of USA have come from business sector (Like Donald trump-
because of the amount of tax subsidies, not believing Corona virus – all because of
his business framework that Donald trump is carrying) historically business interests
have dominated companies’ policies. USA is a classic case, Europe went into that, but
came out of it.

No one other than you can take care of yourself. – virtue of self-interest – based on
individual rationalism – if each of us are efficient, the whole system is efficient. Virtuous
cycle of self-interest is founded on two assumptions –
1. We are in a perfect market
2. Individual goes about using objective rationality – objective rationality is the
unbiased rational of the situation. – as an individual I should know the limits of my
freedom. I should use an unbiased objective rationality.
If these two assumptions are not in place, virtuous cycle doesn’t exist.

If these assumptions are not in place, what happens?

-This is the age/epo of Antopocen – age of homosapiens. Age of humans.

Should our models be human being centric or should It also be the environment? If you look
at companies, it is only for shareholder – expanding to stakeholders. But should you also
look at the environment, other species?

- Fear and Opportunism

- We feel that control is a mechanism for efficiency (Are they reallt true?

Framework to see where we are.

For profit , we need efficiency. It is a necessary condition but not the only condition. It has
to be achieved under imperfect market conditions.
There is a notion that some people can for see the future better (but this is an idea of
opportunism- self gain)

[slide] Other features under imperfect market economy- private property right [two
dimensions, private and common property rights-open source] (adam) , Capital, hierarchical
structure(because you do not trust people).
Reductionism – need to specialize to function in this system
Instrumental rationality (not objective rationality) –eg- “I want to achieve 9% growth,
however I should is my baby” Doing things to customize your goals. I can do whatever to
increase my market revenue. Scholarship following instrumental rationality is the biggest
threat, ‘

Uncertainty and volatility create fear. The fear gets multiplied and increases.
Opportunism is about seeking opportunities for self-interest. For self-gain. Some of us have
more, some of us have less.

To facilitate the efficiency, control mechanism.

1. Individual Controls – incentive of money is an important mechanism for control.
- Self-interest- Incentive, division of labor, ownership
2. Systems Controls – technology is a tool through which we can control. – companies
use technology to control the profit/growth.
- Market share – Economies of scale – Expand networks (internationalization of
businesses) , Sphere of influence (Lobbying with govt : if you can frame the rules, you
can run the world. More the advanced country, more is the influence), Most
important in the developing countries, -- take charge of the rules of the game of the
country. So, you determine how the industry moves. Technical Prowess?
-
This is all in phases, India went in maybe 1980s. japan the phase happened long back.

Controls are an important mechanism to ensure efficiency. These controls lead to profit,
which in turn lead to growth.

All these are used to increase the efficiency. The cycle of efficiency keeps going on. If you
are operating in such an ecosystem, it if tough to transit to sustainable.

System of interdependence and interconnectedness. How should the business reorient?

Report what you are doing, make some changes in your value chain, revamp your value
chains.

SESSION 3

What is it harder for larger companies, which are linearly organized with long value chains,
to transit? This question will also apply to us, who make the company.
Companies are nothing but a group of people. When we talk about issues with a firm, it also
applies to us.

Excessively Anthropocentric – all these developments, growth has become highly human
being centric. When we get to the enterprise, we are limited to the shareholders. So, we
limit ourselves to the human beings on one country.
Human being is the center of this earth, and that is where the argument comes up, that we
are not the only important species in the world. This recognition is extremely important, but
extremely hard to think about it from a business executive POV, it is not easy.

What has happened? We are seeking unbounded self-interest vs objection rationalism.

Feeling of uncertainty and resource scarcity. I need to control because I need to make
profits. But should I be controlling?

Evolutionary biologist – How much to cooperate and how much to defect? They found that
sometimes if you cooperate you get better results or sometimes better results if you
selectively defect. When computing become better, they realized that best solutions lie in
cooperating.
High levels of cooperation is what is needed. They use this understanding to solve cancer.
Cancer occurs due to lack of coordination among the cells. They can deal with this problem
by facilitating the cells to cooperate to coordinate and grow at a constant rate.

All the studies use the logic of interconnectedness, interdependence and this leading to
dynamic interaction of species with other species and other non-living beings. Why we take
care of the weakest? Because we are interconnected and interdependent. This logic is very
different from business logic. That’s why it becomes hard for us to think.
We find that there is contradiction at the fundamental level of logic for firms and SDG is a
small window for firms to gradually change.
Hence Large enterprises find it tougher to change rather than small enterprises to transit.

SDGs

The first priority for the most vulnerable communities, it is “health” for them.
After having the first 3, they look for education. And then employment. 4 th is infrastructure.
Another thing generally and historically exploited, is gender inequality. Another 2 issues
significantly growing is water and energy. Then comes climate, which is 13, 14, 15. One of
the most important issue is inequality. Reducing inequality – most challenging.
Very interestingly, Aristotle once said that income discrimination between lowest and
highest is more than 4:1, society will collapse.

Foreign companies that actually caters and aligns themselves to the needs of India, (If IBM
hadn’t left, it would not make space for Indian IT giants) tended to do well subsequently.
SDGs are opportunities, because these are the severe and common needs of the world. How
do I create a market around these needs? If they can capture the opportunity, they will do
great. And how do you make this into affordable prices so that people at the bottom of the
pyramid can afford it.
 SDG 2030 started in 2015. Prior to that was MDG started in 2000.
The millennium declaration – the values on which MDG.=/SDG are build:
1. Freedom
2. Solidarity
3. Tolerance
4. Respect for nature
5. Shared responsibility
(these values are there in almost all of the democratic constitutions) Question of how firms
can align themselves to the common logic for them to survive and others to survive. And
SDG is a window to do that.

The planet can survive without human beings, but the human beings need the planet.

UNSC report – to familiarize to linking SDGs with the indicators of SDG.

There are 304 indicators for the 17 goals. What are the methodologies to identify the
indicators?
- Rating of indicator are from A-C based on feasibility(whether an indicator is feasibile in the
country), suitability and relevant. If highly feasible
If 60% of the country’s expert believe that its feasible , suitable, relevant – grade A
If 40% feel its not F,S,R- grade B
Less than 40% -- grade C

Representation of different countries and contexts.

While measuring efficiency it is technical, while sustainability is open ended so differences
in interpretation.

Then we get into the set of indicators. Only 16% of indicators have got triple A. Only 50
indicators have got AAA.

Goal 1: End poverty, What are the ways you can measure it?
Target 1.1 – you may have 1 or more indicators under each target. How would you use
these indicators while doing SDG compass.

Question – whether SDGs are a burden or a opportunity?

SESSION 4
Important – whether the goals we have set if fine.
Supplementary reading – grounding SDGs

What are the limitations in the way SDGs are conceptualized? Each of the goals are seen
independent on each other. The targets have been set per goal, but interconnectedness of
the goals are not been set. But in reality, they are interdependent on each other. Then
how do you conceptualize the solution? If you work on one, it will impact the other.
 Should you deal with the goal sequentially or simultaneously?

Today’s class- SDG Compass and Circular Business Systems

1. SDG Compass for Industrial-highly Linearized Organization

Why for the above it is most useful? It’s about how we earn- how we design our org? how
do we realign the business to create some change in the value chain is the min we can do.

Think of any economic system:

It is the production system that defined the economic system/the human society.
When it comes to the SDG goals, you will find it is easier to achieve these goals in the
primary sector, and likewise in the tertiary sector. In reality, the most difficult one are the
secondary production system .

There is a technical problem of transition:

What are the critical factors affecting the secondary production system:

Physical infra: Can have high req, or low req,

Raw material: Renewable or Non-renewable
Product tech, process tech: licensed (expensive) – open source (cheaper)
System coordination: Hierarchical (Formal structure), non-hierarchical (Flat structure)
Diversity level in process – many things that companies produces, level of culture: Highly
specialized or diversified.

Left hand side – more rigid, (like Tata Steel) – structured, linearized
Right hand side- more flexible, (like a startup) – smaller, high network within local system.

Companies, might be more on the left or the right. Most of our companies are centre, or
towards the left.

What changes should we make to make changes in the SDG goals? Some or even one.

SDG compass for business, steps:

1. Understanding SDGs
2. Define priorities: what are the SDGs that we can deal with?
3. Set the goals- set for year 1, or first two years, make it workable
4. Integration – do things to integrate your value chain activities with SDG goals. If your
goal is clean water and sanitization, and you are disposing dirty water, change
something in your value chain for the SDG goal
5. Report- using indicators, what you’ve done.

The crux of the artickle, SDG for business,

When you think of aligning some of the value chain items with SDG.
- Look at the downstream and upstream.
- Look at a business unit
 - Look at a product
- Look at the value chain for that product

2 aspects:
- See the activities to minimize negative impact
- To increase positive impact
Example:

Water consuming companies –

Beverage, Textiles, municipalities

Lets take Pepsi.

They will have a production unit.

Water will be needed for the beverage, for cleaning and other activities. – not only for
product, also process. Try to estomate how much water I used for 1 litre of pepsi? And do
costing of this. Cost for the input (which is water) – only then will it make sense.
To know what investment I need to make, and how it will save anything for us.

Where do you get water from? River, groundwater.

The costs of water? – treatment, store, transportation, acquiring land for pipeline

Then we discussed the resource flow analysis for Tirupur town. How much material they
use, how much they waste, solid waste(Unused),
Because of the amount of waste, land became unusable . SO madras high court gave a 0
discharge order, so many companies were foced to shut down.

Quick estimation % potential area of intervention

SESSION 5

Continuing from Resource flow analysis.

Input is yarn, water, electrical. Then there is operations. Some goes as waste (affluent)-
When this becomes too high.
Out of total input of solid – 237825 metric tonne per year. And water 87500 was going
waste. This let to river noir completely getting polluted and it dried down. And 10k
something of land became unusable. Madras – water became very less. At one go, many
companies went out of business.

There is a cost to every transaction in commercial sense.

The cost to the society (in terms of drinking water not available in Chennai, or cost to the
farmers, the biological system destroyed) The environment cost and social cost is not
accounted in the wastage of material cost.
Circular Business Systems – You reduce the length of the value chain. Estimate the energy
and mass transfer system in a manner such that you are not incurring these wastages. When
you put an industry agglomerate. How do you reduce the wastage? How do you reuse the
wastage? How do you create value for not only the shareholders but also the stakeholders.

Reduce value chain – input output moves in a short distance, transaction cost is lower. More
value for stakeholders.

Broad framework is circular economy, but we look at circular business systems.

Example: Comparative costing of sewage water treatment. Study was going on – traditional
method of sewage water treatment.
Data Table 1.2 is from a book. Getting to various sewage treatment methods:

And a comparison with XIMB COFA ICEF (India Canada) Method.

What does domestic sewage contain? – sulphates, nitrates ammonia.- lot of food, so lot of
nutrients.

2 kinds of drainage in a system: One is home sewage wastewater, other is storm water
drainage. We are referring to domestic sewage water system.
If you see trickling filter, the cost is highest, so we keep that aside. If we take the common
ones.

The traditional method just treats it. To see the BOD, COD, Coliform.

Now the XIMB CIFA ICEF method. There is a fishpond. This looks a bit simpler than the
traditional method. You convert the organic matter/nutrition in the sewage water to get
converted to algae – which the fish consumes, and in the marketing, pond removes the
toxicity from the fish and makes it fit for consumption.

We have transformed wasted protein to consumable protein.

And we not only have costs, but also income. So the cost comes down. And other benefits –
treat the system biologically.

Which of these can be circular production systems? –

Wheat travels from Punjab to Kerala

Paddy travels from WB/Tn to Kerala
Food miles- is the length the food has to travel. With more cost, the returns to the
intermediaries will be reduced. The cost you are incurring, but nobody in the value chain
makes more than 7-10% margin. They will typically make 4%,5%.

The difference between circular and linear. – length of the value chain.
Dal can be processed in the locality, it doesn’t have to go the entire system and then come
to bbsr. If we understand as a society to build the capacity of local community, we can
process it and get it here.
Most of the models can be circular models but are linear, and these are not tough to
transient out to circular from linear.

Understanding Inclusive Strategies - we want to see what are the different inclusive
strategies that have been there in the business world and society

Starting off with- FIRM – a key engine of growth in a free and competitive society. They may
be engines if not key engines always. We also know that two key objectives: Growth and
profit.

Two broad ways that they adopt – Economizing and Strategizing

Traditional firm strategies (category 1)

- Competitive Strategies:
1. Strategic conflicts (Eliminate the competitor) – example: Macvelian strategy;
chanakya strategy
2. Attenuating competitive forces ( porters 5 forces, company will figure out a way to
be better) – you try to reduce the forces of competition to retain your power,
minimize resources to have better negotiating power.
Above two are for externalities to manage yourself.

3. Resource based strategy – or managing your processes

4. Dynamic capabilities –PPP – path (what have you done in the past) Position
(resource positions) Processes (your culture, core for your capacity to innovate) –
these 3 gives you the ability to dynamically manage.
These two are to manage your internal capabilities.

Other versions of strategies:

Noncompetitive, Cooperative, Solidarity, Ecological principle based methods. (These are non
competitive)

We are going to look from competitive strategies, into inclusive strategies – how do you
internalize the differences in stakeholders and make it a part of your firm to handle the
situation better. Suppose number of people outside saying you can’t have the factory. So
you can do CSR , or build a school. So this is called internalizing the externalizing so that
people live in harmony with you. CSR is a major one.

Other forms of internalizing the externalities:

1. Paternalistic – the company behaves, positions like a parent to its stakeholders. For
example – Toyota may invest in his subsidiaries. They also put 2/3 people in the
board of Toyota.
This model started in the early 1900s in Japan. Started from a textile.
 Three features: Lifelong commitment, Salary is based on seniority, Cross holding in
the competitors.
Another example – Tata steel. Do you think tata steel and TCS have similar policies?
Even within the same group the story is different.

This model of paternalistic strategy doesn’t last for too long. Companies can’t
operate in this manner, but over time period, they are not able to sustain this.

2. Complementation strategy – Unilever, Suzuki, British American tobacco (ITC)

These companies really aligned their model to complement the needs of the local people, in
turn got the support of the govt, and makes other companies hard to displace them because
of the network they have set up.

3. Co creation
4. CSR
5. Strategic CSR
6. Bottom of the pyramid – fortune at the bottom of the pyramid. Like in India, latin
America. Example – Project Shakti.
7. Social Entrepreneurship

SESSION 6

- Strategy and Society – these are newer versions

CSR -
Strategic CSR – porter talks about this. He says Unless the CSR that you do improves
the bottom line of the company, it’s not successful.

Social Entrepreneurship – Objective is different from for profit.

In for profit- it’s for shareholders
Social entrepreneurship – objective is to benefit the customer, only cover his or her expense
towards the operational costs.

Social entrepreneurship – provide service and facilitate the beneficiary group.

The methods that they work on are different
Are social entrepreneurs have differed in management? Have social entrepreneurs used
these traditional strategies, or strategies according to their own vision?

Many people thought this (Social entrepreneurship) was the solution. The rules of the game
has been defined for profit entities, so if you use the same rules for a non-profit, you will
fail. People had hoped that this would be a different strategy.

Challenges of SDGs implementation: (Read articles- grounding SDG)

1. Reality of interconnectedness and interdependence. In this kind of setting, if we try
to do something in a linear (as of the goals are independent) , then the chances of us
to attain success would be unlikely. If you give good health but not education, then
 you cannot achieve the level of good health. Whether they implement 1 goal in one
place, or all goals in one place? Implementation problem.
If you want to see change, you need to do all the goals in the areas.

Same issue with SDG compass where you have to take one goals and aligning your value
chain for that. But can you just solve a goal without looking at other?

Winds of Change? – is it moving towards more competition, or cooperation?

Adam smith – says private property. He also wrote his first book on theory of moral
sentiments.
Examples of business models- aggregators. Example- Uber, Airbnb, Amazon

Local Exchange trading system

It is technically feasible to transform secondary sector.
- Peer to peer lending services, Zopa. Rabobank – these are using cooperative
principles.
- Tridos- non competitive

Issue of Linux

SESSION 7

Major challenges of the world: Is basically what you see in the UN goals.

We saw the current practices – like the resource flow analysis, where we saw how linear
prod systems can create a lot of waste. Example of Tirupur. If you look at the use of
materials, and the wastage, you can see the problem that we have in the industrial pord
system. We saw that 237825 of raw materials going on. And 116225 goes to waste. So the
49% of material goes waste, that is 121600. – this is in the solid part
On the liquid part, we see 90120, out of which 87500 is waste. Consequence- river was
destroyed in a period of 20 years. Huge extent of land became unusable. Drinking water was
not accessible.

General framework of sustainability:

Sustainability is not only the economic needs, but also social, and economic – equitable (Not
the best)
If environment and economic is balances – viable
Socio and environment – bearable
Need all 3 to be traded of.

If there any other way that is needed for sustainability – relationships, trust, -- transaction
cost comes down.

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This session: If there are any waste, how do we transient? To a more sustainable setting? –
Framework: all interactive system science system. (Each one if interacting with the other,
and in this dynamic system, how do we flourish?

Last class: Winds of change,

Where is it happening in the most technologically intensive industry? Operating system.

Centre- kernel, Linux.

Before 2018: Linux as a representative of open source, and Microsoft as a representative of

closed source. Compare open and closed in OS.
Open source – common property – argues that many of the assets and properties in nature
are the rights for everyone and should be left to open access. And it becomes more efficient
if everybody owns it. What do you think has been the market share of open and closed
source in the business of OS?

(checking market share on the site)

Windows is the highest.

Most companies prefer open source. According to adam smith, private hand is better. But in
this case open source seems to be better, It can be customized. If anyone sees a bug, it can
immediately be removed. so this makes it better than copywrited system. In closed, the
copywrited system can create bug. But if it is open system, everybody works towards solving
bug. So we see an example where common property is better. (Winds of change)
What does it mean? – maybe open source is more efficient/beneficial.

Kalundborg sysbiosis- waste of one company becomes the input for another. A circular
ecosystem of economy.
Rabobank- tertiary sector – which is a coorperative – works for farmers,
Local exchange trading systems

It is as simple as Bicycle sharing system.

The lowest determines the speed of the system.

Logic from various fields of studies.

Key pillars of any community –

Governance – political
Org and prod – eco
Prod – tech
Institutions – legal

Relationships – on the basis of this instituons are built – from this production and
organisations.
Assignment:
1st step – overview of companies initiatives, for sdg compass.
2nd step- systematically map the initiatives in the context of sdg
3rd step – prioritize a few sdgs (2 in case of sdg compass) and provide a detailed analysis of
the 2 sdgs/initiatives to which the sdg’s are connected.

Background materials – study the sdg’s, UN statistical commission report on the indicators
(Look at the indicators for those particular sdg’s)
Assignment 2.

You can take two ways of solving this. See what has the company has already done and
assess it. Or you can consider yourself as a consultant to the company, and draw this map
for yourself (Like the loreal one) ---
Don’t look at the whole company, one product or service ka value chain.