IN WAR, WHICHEVER SIDE MAY CALL ITSELF THE VICTOR, THERE ARE NO WINNERS, BUT ALL ARE LOSERS

TOPIC 2:

SUSTAINABILITY AND CORPORATE GOVERNANCE

In business, sustainability refers to doing

business without negatively impacting the

environment, community, or society as a

whole.

Sustainability in business generally addresses

two main categories:

•The effect business has on the environment

•The effect business has on society

SUSTAINABILITY

Sustainability involves business

practices that satisfy the needs

ofthepresentwithout

compromising the ability of the

future generation to meet their

own needs

Triple Bottom Line

The Economic Pillar

Thisensureseconomic

e ffi c i ency and income for

businesses. In order to become

sustainable, a business must be

profitable.
The Social Pillar

This ensures the quality of life,

safety, and services for citizens. In

order to become sustainable, a

business should have the support

and approval of its employees,

stakeholders, and the community

where it operates in.

The Environmental Pillar

This ensures the availability and

quality of natural resources. In

order to become sus tainable,

businessesshouldfocuson

reducing their negative externality

Sustainable Business

Practices

STAKEHOLDER ENGAGEMENT:

PEPSICO

The company presents its

sustainability strategy and

goals, focusing on climate

change, water scarcity, and

public health issues.

EMPLOYEE ENGAGEMENT:

GENERAL ELECTRIC

The company is using its human

resource department to integrate

sustainability into the company's

culture,rangingfromhiring

practices and training to employee

wellbeing programs.

WATER STEWARDSHIP: COCACOLA

Th e c omp any h a s imp r o v ed t h e

efficiency of its water use by 20% and

identified the need for a rigorous thirdp a r t y e v a l u a t i o n o f i t s w a t e r

management approach.

SUPPLY CHAIN MANAGEMENT:

FORD MOTOR COMPANY

The company has established requirements for

first-tier suppliers to drive its environmental

and social expectations. It also works with its

suppliers to establish greenhouse gas emission

reduction etc.

INNOVATION: NIKE

Thecompanyhasintegrated

sustainable design across its product

portfolio and created the “Making

app” in 2013, allowing the data in

its materials sustainability index to be

public.

MANAGEMENT

ACCOUNTABILITY: XYLEM

The wat e r t e chnology company

established committees to identify

senior executives who will be held

accountableforsustainability

performance.

EXECUTIVE COMPENSATION:

EXELON

The energy producer has introduced an

innovative long-term performance share

scheme that rewards executives for

meeting non-financial performance goals.

SUSTAINABLE BUSINESS PRACTICES

Biodiversity: Pacific Gas & Electric

Company

The company has established an

environmental policy that focuses

on habitat and species protection.

It also publicly reports the detailed

findingsrelevanttoits
environmental protection efforts.

Investor dialogue: Starbucks

The company has partnered with the

l o ca l c ommuni t i e s whe r e the y

operate, by introducing the concept

of sustainable farming that aims to

provide livelihood for the people.

Disclosure: Brown-Forman

The major distributor of wine and spirits

uses ingredients that are both climate

sensitiveandwaterintensive.It

demonstrates that sustainability is a way

to build consumer relationships and

enduring brands. The company focuses on

initiatives related to climate change,

water scarcity, and water quality.

CORPORATE GOVERNANCE

Corporate governance pertains to the

system of policies by which a firm is

directed and controlled. It essentially

involves balancing the interests of a

company'sstakeholderssuchas

shareholders, management, customers,

suppliers,government,andthe

community
Goals And Risk Management

The key to success is the centralized

integration of global supply chain

event information. This enables the

supply chain control group or teams

in the supply chain service centers to

react to supply chain events quickly

and make the right decisions.

Shareholder Meetings

Corporate governance requires shareholders to remain wellinformed of the company's financial health
and the status

of its ongoing business initiatives. The board of directors

must schedule regular meetings to keep the shareholders

informed about the company’s level of profitability, its

strategies for achieving goals, and any problems it foresees

in the market that may cause them to fall short of meeting

those goals.

Government Regulations

Corporate governance ensures

t r anspa r enc y c onc e rning

corporategovernment

regulations