CHANGE MANAGEMENT

FOR SUSTAINABILITY STRATEGIES

SESSION 11: Creating sustainable organizational culture

October / November – master degree
M-L Delamaire, Ph.D
Session 11: Creating sustainable organizational culture
Session 11: Objectives
• Understand
• Importance of organizational culture for meeting sustainability
goals
• How can leaders/managers foster a sustainable organizational
culture
For last few weeks..

• We focused on the process of managing a sustainability oriented

change…
• The change process included
• Change management overview
• Stakeholder analysis and communication plan
• Change implementation, risk analysis, and contingency plan
• This week we focus on how companies can build a sustainable
organizational culture…
Plan of session 11
I) Change of culture, why is it needed and what make sustainable
companies different?
II) What are we talking about (what is culture?)
III) How can we reach a culture more oriented to sustainability?
IV) Summary and example of Unilever
V) One more theory (the chaos theory)
VI) Your case study
I) Change of culture, why is it
needed and what make sustainable
companies different?
It is obvious that
change is needed
Why is it so slow?
• Poverty is far away…for rich countries…
• Very complex situation of countries: inadequate access to clean water
and good food, inequality, poor education, lack of infrastructure,
limited capacity of the government, no access to proper jobs…
• War, climate…
• People get used to the violence and bad images…
• Difficulties of changing behaviour in rich countries
More pressure for the companies…because
of the ecological crisis…
• New type of collaboration (COVID) / new ways of work

• “What are the ways in which we can profitably run our business
without fear of environmental degradation or social inequity?”
(Goleman, 2010)
• Could be proud of our work…/ proud of what we buy (eco friendly)

• Engagement / global change / ecosystem

A progression to respect…according to the
readings of last session…
(1) Stakeholders have to be aware of the necessity of change (have to
be focus on the waste of energy for instance)
(2) When people are convinced to do something (commitment), you
take clear actions
(such as measure the ratio of packaging material / increase the recycled paper)
(3) Move to a strong strategy 'orientation: long term investment / one
competitive advantage / integrate in the culture = take some time….

Source: Golemenan and al. (2010)

Change of mentality is needed…

To address social- environmental issues,

organizations need to build
the right culture but how?

What are the specific elements of sustainable

companies’culture….?
I) What makes sustainable companies
different? (following of part I)
• Effective engagement of internal and external stakeholders and support of
the top-level executives
• Record of implementing large scale change
• Culture based on innovation and trust
• This is not only about short-term profit maximization…but also about the
improvement of social and environmental targets (long term views)
• Sustainability can even increase some market shares because customers
want to protect the planet too (same targets and values)…
• Culture of collaboration, trust and transparency
• Engagement of leaders….and employees too…
• Ability of change (have to be very good !)
II) What are we talking about (what is
culture)?

-Culture is the sum of values and rituals which serve as a glue for
organizational members…

- Culture is based on shared attitudes, beliefs, customs, and written

and unwritten rules..

-Culture has a big impact on our behavior and represent a specific

mode of conduct…
The power of values
INDIVIDUAL VALUES

COMPANY CULTURE

INDUSTRY VALUES

NATIONAL CULTURE
 NATIONAL VALUES AND SUSTAINABILITY…
• Sweden is the most sustainable country in the world (use of renewable
energy sources and low carbon dioxide emissions) as well as social and
governance practices such as labor participation, education and
institutional framework, according to a report by sustainability investment
firm Robecosam.
• The ranking aims to offer insight into investment risks and opportunities
related to environmental, social and governance practices such as
emissions and reliance on fossil fuels, and allows investors to compare
countries to each other.
• Australia, Switzerland, Denmark and Norway round out the top five.
• Countries with the lowest scores include Nigeria in the bottom spot, along
with Egypt, Venezuela, Indonesia and Russia.
Source: Korosec, 2019
 Edgar
Schein’s
framework
of culture
III) How can we reach a culture more
oriented to sustainability…?
• A clear direction : sustainability-oriented products and materials
• Budget and resources
• Room for collaboration (with suppliers) !
• Positive reinforcement to employees
• Measures of accountability
• Training to attract resources and identify good partners and work
collaboratively….: new business models that produce both business and
environmental benefits….
• Cross functional teams (wide project)
Key to sustainability oriented culture…

Alignment of individual purpose and collective purpose

Alignment of company’s long term interests and the good of the society
 How to become a sustainable organization?

Becoming sustainable involves a continuous effort……

IV) Summary and example of Unilever

In summary, there are two stages:

Stage 1: Reframing company’s identity
Includes two elements..
• Leadership commitment to sustainability
• External engagement and learning from outside
(cooperation)
Examples of CSR leaders…
Shock….and adaptation

Source: OECD 2020

How to face COVID 19?
Stage 2: Codifying new identity

Involves building internal support through

• Employee engagement
• Mechanisms of execution
 Codification of new identity will build/reinforce a sustainable
culture

Sustainable culture will increase leadership commitment, external

engagement, employee engagement, mechanisms of execution
Example:

Unilever's New Global Strategy: Competing through Sustainability

V) One more theory
CHANGE MANAGEMENT AND
OTHER DISCIPLINES….
VI) Case study
What next…
• Session 12: Poster presentation

10 minutes presentation
Assessment of other groups
Deliverables
• Remember to submit…

Individual Essay Group Project

Assignment Report
Final Written Report
• This will take the form of a mini consulting report

• 25 pages (table of content and references not included).

• First part: CSR

• Second part: Change Management
• Conclusion: overall analysis
Final Written Report
• Due 2 weeks after presentations

• On IESEG ON LINE !!!!!

Written report (final)
Description of the change (radical one / incremental one) and key questions

SWOT

Kotter’s analysis

Analysis of stakeholders (grid)

Communication plan

Communication sample

Gantt chart

Indicators

Plan B

Culture
Individual assignment
Introduction (400 words)
CSR part ( 800 words)
Change part: ability and skills (1200 words) as a change maker / change
recipient
 Class participation
25%
Individual essay 25%
Gradings
Group work 50%
6 Questions for your POSTER PRESENTATION AND REPORT – PART 1
• Who are the key STAKEHOLDER GROUPS of 'your' company?
STAKEHOLDER • Who are its most important clients? Who the most important suppliers (partners)? Provide as much specific information
1 MAP
as you can (names, numbers, relevant facts, etc.)
•IN YOUR REPORT: Analyse in depth ONE STAKEHOLDER and their main CSR/Sustainability claims, needs and interests
towards the company. How good/bad is the company in responding to these claims? Provide references!

•What are the key MATERIAL ISSUES according to what the company says (corporate website; CSR/Sustainability Report)?
•What are the key material issues from external stakeholders’ perspective, in your opinion? Are these different?
MATERIALITY
2 ANALYSIS
• Did the company engage with its stakeholder to define these issues? With whom? How?
•IN YOUR REPORT: Analyze in depth ONE Specific MATERIAL ISSUE and the company’s position/strategy/action (or non-
action) on it. Offer supporting evidence/references!

•Identify key sustainable value creation drivers & corporate payoffs in the today/tomorrow & internal/external dimensions
of its business
•IN YOUR REPORT: Analyze and discuss TWO KEY RISKS OR OPPORTUNITIES for the company’s sustainable value creation,

BUSINESS & making reference to the 4 drivers of the Hart & Milstein’s model – offer references!
•Focus on ONE RISK OR OPPORTUNITY FOR ‘TODAY’, and ONE RISK OR OPPORTUNITY FOR ‘TOMORROW’ (see below):
3 ENVIRONMENT – Pollution Prevention (today): e.g.: How does/could the company minimize waste and emissions?
– Product stewardship (today): How does/could it integrate stakeholder views in business decisions?
– Clean technology (tomorrow): What are/could be disruptive technological innovations that promote sustainability in the
company‘s industry? Where should it invest to address future sustainability-related needs?
– Sustainability Vision (tomorrow): What could be the new growth path for the company in the future?

• How is your company dealing with broader societal issues and systems change?
BUSINESS &
4 SOCIETY
• How do the Sustainable Development Goals play a role in your company’s activities?
• What opportunities and threats does COVID19 bring for the company’s CSR/sustainability practices?
• IN YOUR REPORT: Analyze and discuss in depth one specific example for your company to engage with systems change
and societal issues and elaborate on how this connects to the firm’s sustainability initiatives. Offer references!

• Building on previous sessions and on the circular (business model) canvas, how could the case company/business unit
INNOVATION & you work on could innovate its business model to address environmental and social challenges ? Be specific!

5 CIRCULAR CANVAS
• How could this change contribute to creating sustainable value for the firm, its stakeholders and the environment?
• IN YOUR REPORT: Analyze and explain how the company/business unit should adapt its value proposition and user
focus, as well as –potentially- its distribution channels and/or end-of-life focus if the suggested change is to be
implemented.

• IN CONCLUSION (and in the REPORT):

6 GROUP’s OPINION • What are the strengths & weaknesses of your company in relation to the CSR & Sustainability dimensions analyzed here?
• What would you recommend to your company to improve its sustainability? Where are their main opportunities for change? And why would that be the case?
We expect a motivated conclusion with ample supporting evidence from literature and practice.

Change Management & Sustainability Strategies 2022 © Simone de Colle

40
Grid of evaluation (written report) – prof grid
10 minutes (presentation)…
Thank you!