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of CEOs believe sustainability should be integrated into the strategy and operations of a company (up from 72% in 2007).
96%
Corporate Sustainability is a business approach that creates long-term shareholder value by embracing opportunities and managing risks deriving from economic, environmental and social developments.
Dow Jones Sustainability Indexes, 2010
A long-term
perspective, concerned with the interests and rights of future generations as well as of people today;
An
inclusive approach to action, which recognises the need for all people to be involved in the decisions that affect their lives.
Economic
Environmental
Social
PROFITABILITY
by holistically managing economic, social and environmental risks and opportunities.
Compliance Pressure from stakeholders Risk Management Enhancing brand image Increased employee motivation Ethical considerations
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Sustainability @ SAP
SAP as Enabler
Lead the market for sustainability solutions
SAP as Exemplar
Transform SAP into a role model for sustainability
Biggest lever for SAP: Green IT is only addressing 2% of overall greenhouse gas emissions, what about the other 98%? There is a business case and a market for sustainability software solutions Market driven development approach
Credibility requires transparency Strong governance and change management model required SAP has to manage economic, social & environmental risks and opportunities, too Everybody needs to be involved
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Strategy Management
Environmental Compliance Facility Energy Management Sourcing & Procurement Product Compliance Personal Footprint Diversity
Sustainable Design
Travel Management
Green IT
Sustainability Reporting
Sustainable Workforce
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Demographic change: Ageing of society and workforce in many countries Scarcity of high-skilled and educated talent Increase of work /stress related illnesses
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Younger generation in many countries is postmaterialist (according to R. Inglehart) Given a certain, moderate level of wealth immaterial values become more important. Lohas: Lifestyle of health and sustainability Market segment focused on health and fitness, the environment, personal development, sustainable living, and social justice Meaningful work with a contribution to the broader public good Emphasis on Work-life balance
Consequences:
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With an increasing number of women employed and gender equality families need to find new ways to share responsibility for bringing up the children and balance work and life Example: Marriott Hotels was finding it difficult to attract new recruits and to retain good managers. The company had a strong culture of face time, i.e. Managers stayed at their hotel and pretended to work even if they had completed. When the relationship with high turnover was recognized, senior management initiated a programme of flexible work which effectively reduced the turnover rate*
With the growth in the number of patchwork families, women employed and gender equality, families need to find new ways to share responsibility for bringing up the children and to balance work and life *Source: Dexter, Dunphy et al., Organizational change for corporate sustainability
Diversified Workforce
Firms need innovative ideas to sustain and to flourish and a diverse workforce has the proficiency to generate novel ideas for a companys success. Conversely, a homogeneous workforce is comparatively less likely to come up with the creative solutions faced by a national and world market that is characterized by individuals from many races, nationalities and religions http://www.starcitynews.com/the-importance-of-work-force-diversity/1602/
2011 SAP AG. All rights reserved. 17
Development, Freedom, and Rising Happiness - A Global Perspective (1981 2007) . Inglehart, Foa, Peterson and Welzel
ant
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From http://www.worldvaluessurvey.org/wvs/articles/folder_published/article_base_54
2011 SAP AG. All rights reserved. 19
These findings also have important implications for social scientists and policymakers, for they imply that human happiness is not fixed but can be influenced by belief systems and social policies
Development, Freedom, and Rising Happiness - A Global Perspective (19812007) . Inglehart, Foa, Peterson and Welzel
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Competency development
Employee Lifecycle Management and Outplacement
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92% would be inclined to work for a company that is environmentally responsible. 80% wanted a job that directly improved the environment
Sustainability has a strong power of giving people a meaningful mission, a way to address their latent concerns and helping them integrate their different roles in society. Socially responsible companies tend to have employees with higher engagement. Companies also have a duty to consider the sustainability of their recruitment practices, and to nurture the external talent pool from which they recruit
2011 SAP AG. All rights reserved. 23
Companies also need to consider the competencies in the resource pool outside the organisation, and to work with educational institutions and civil society to build the pipeline of skills that will feed their future recruitment needs
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Companies adopting a sustainability approach to Employee Lifecycle Management also need to consider the impact of returning employees to the resource pool, and to adopt outplacement programmes to make this a positive impact.
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Companies also need to orient their performance management programmes towards a sustainable approach to working, and to reward those practices and behaviours that are in line with sustainability goals
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Initiatives like greatplacetowork, top-job 100, Ethics in Business address this Corporate Sustainability is an ideal approach, since it transfers several attractive values like meaning, a contribution to the common good, fairness, openness etc. Employees are increasingly choosing to work for companies that openly espouse these values.
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In todays workplace, having a diverse population is incredibly important. The benefits of a diverse workforce include innovation, increased engagement and economic growth. Organisations are often operating in an international or multi-faceted national context, and to service customers well, they need to attract and retain people from the full range of demographic segments. Having a diverse workforce brings a range of useful perspectives to the table and there is a significant competitive advantage if organisations are able to optimise these differences in their people. Susan Ferrier, a speaker at the marcus evans HR Summit
2011 on diversity and employee engagement
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Increasingly, organisations need to consider their ecosystem when making strategic decisions. Walmart will be required to contribute both to labour market stability in the short term and to sustainable development of local suppliers in the medium to long term when it assumes control of Massmart
We do not live and operate in a vacuum and we need to think about the other inhabitants of our environment. HCM needs to be able to support newer ways of working with partners, competitors and a variety of other role players, and to build the competencies for this into the workforce. .
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Reinforcing and embedding lessons learned in sustainable development and operations, and promoting a culture of organisational learning and knowledge sharing is the responsibility of the HCM Department.
Helping people to collaborate while under the pressure of high-speed business activity is a key support HCM can deliver. Linking learning into the organisations strategy and supporting it with proper assessment and reward is crucial.
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Embed Sustainability in Training and Career planning Wal Mart: provides sustainability training to its employees and encourages them to adopt personal sustainability projects
Reviews and Rewards Dow Chemical: Contest for energy-saving projects with high RoI: first year: 27 winners with RoI of 173%, after 10 years: RoI of 300% Work-life-balance support systems to reduce turnover rate, increase employee motivation, employer branding etc.
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Data gathering with automatic and repeatable collection from systems and people
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Added Value Key Business Information Provided from multiple other IT Solutions contributing to King III Report
King III Report supported by SuPM
Sustainability Solutions
Operational information
Mgt frameworks
Organizations Materials
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Thank You!
Contact information: Prof. Dr. Christian Berg Global Head Sustainability Business Transformation Services M +49 171 55 897 86 E ch.berg@sap.com Dr. Shane Hodgson Business Transformation Principal EMEA Emerging Markets M +27 7947 84082 E shane.hodgson@sap.com