HI6006

Competitive Strategy

Lecture 12a: Sustainability

Urban Sprawl
An Overview of the Unit
Do We Realise how it’s ALL Connected ?
 Our final topic - Sustainability

Sustainability requires mastery of the key

concepts, in combination:

 Sustainable Competitive Advantage (core

competencies)
 Strategic Leadership
 Corporate Governance
 Ongoing Improvement
 ‘Strong’ sustainability
‘I win, you lose !’ (wrong attitude)
 Sustainability

These days it is important to look beyond Return-

on-Investment.
Companies are expected to also invest in creating
sustainable business practices, in order to ensure:
 Corporate Social Responsibility
 Environmentally-responsible materials
management, product-development etc.
How complacent are we becoming?
 Sustainable Development

Definition:

Sustainable Development has been defined as

“development that meets the needs of the present
without compromising the ability of future
generations to meet their own needs” (World
Commission on Environment and Development
(WCED), 1987)
Is this Progress ?
 Business and Sustainability

 Firms often engage in some form of ‘green-washing’ as a marketing

ploy to appease stakeholders (i.e. giving the semblance of being
concerned for the environment, without really investing in it)
 Whilst the ‘Balanced Scorecard’ goes someway to helping
businesses focus on more than just the ‘bottom line’ (profitability),
businesses can be classified in terms of their responses to the
challenges of sustainability – i.e. nil, weak, strong.
1. Strong sustainability puts the environment first,
people second, economy third.

2. Weak sustainability puts people first, economy second,

environment third

3. Nil sustainability puts the economic considerations ahead of

people and environment
Where does it End?
 Business and Sustainability

 Businesses, as a ‘collection of individuals’ are constantly

evolving.
 In the ‘social realm’ if the direction of evolution is
positive, the firm becomes more sustainable, i.e.:
1. organisational practices are well-aligned
2. they emphasise the positive aspects of work-life
3. they adapt well to changing environmental, social and
economic conditions and challenges.
Obsolete but not Recycled
 Sustainability Activity

 Peruse the annual reports of Australian listed

companies and see how many, if any, are
reporting on Environmental, Social and
Business Sustainability.

 Do you see any attempt at ‘Green-washing’?

 What can be done to ensure all firms develop

strong sustainability?
Future Shock – Biodegradeability ?