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John Drummond is Chairman of Corporate Culture, a leading UK strategy and communications company. In John's varied career he has been a journalist, he has worked with IBM in sales and marketing and in the 1990s he was Group Communications Director at United Utilities. His particular interests are around customer and citizen behaviour change, social marketing and how companies can achieve long-term commercial success.
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May 2011
the world according to Corporate Culture
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world population increases
Source:WEF Global Risks 2011
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global risks
Source:WEF Global Risks 2011
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future trends
demand for water will increase by 15% by 2030,
leading to unreliable supplies of fresh water
population increases to 9 billion – increasingly
healthy and living longer
increasing global economic development grows consumption;
especially in China, India and Brazil
economic volatility and uncertainty continue
businesses increasingly hold the levers of change (today 43 of the world’s 100 largest economic entities are companies)
demand for electricity could double by 2050; there is a risk of an energy gap equivalent to the total energy market in 2000 (*1)
by 2050 we will be using 2.3 planet’s worth of resources
in the next 40 years we may need to
produce as much food as in all of
history up to now (*2)
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the now CEO: belief system
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the new CEO: belief system
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there are always two futures
where we are now
the probablefuture
our preferredfuture
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alternative industry responses: Shell scenarios
Source:Shell Energy Scenarios to 2050, Signals & Signposts, 2011
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the need for sustainable business models
“ the need for responsible business engagement in the big issues of our time has never been more urgent… the current financial crisis is the result of short term and unsustainable business models… our experience is that companies that have put sustainability issues at the heart of their business strategy offer some valuable lessons for those negatively impacted by the crisis.”Samuel A. DiPiazza, Jr, CEO, PricewaterhouseCoopersThe World Business Council for Sustainable Development’s annual meeting of business leaders – Nov 2008
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an inflection point
“we are at an inflection pointunlike any other in history, and I believe Cisco has an opportunity to help countries, communities and citizens achieve their social and economic goals.”John Chambers, Chairman and CEO, CiscoCisco CSR Report 2009
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Anglian Water region
it is the driest region in the UK
28% of the region is below sea level
as a low-lying region there is a high use of energy to pump water around the region
demand for water is expected to rise in a water constrained world
population is expected to rise –around 1m homes to be built in the next 25 years
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a new model for a new world
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a manifesto for a new world
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with audacious goals, commitments and measures
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summary of good practice
old CR a focus on
impact today a focus on
managing risk cost communicating what we do
as a business semi-detached
from strategy
sustainable business a focus on short, medium
and long-term business success a focus on risk
and opportunity value engaging and building relationships our actions, plus, we make it easy
for customers and employees to act integrated
with strategy
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Sustainable Business
strongfoundations Manage the business
to meet our responsibilities and live our values
transformationalprojects Identify the small number of
transformational projects to achieve real change
long-term view of sustainable business
Identifyour preferred
future
Com
municate and engage w
ith stakeholders
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sustainable edge: the 15 factors that influence long term success
the process: define fit for
purpose criteria for your company
identify where you are and where you want to be
develop strategies for change
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old mindset
third sectorvoluntary initiatives for public goodpublic sectorpublic initiatives for public goodprivate sectorprivate initiatives for private good
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charities governments companies each of us others
newmodels
oursustainable
world
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disruptive principles
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the biggest impact companies can have today
customers
employees
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the old world was two dimensional…
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… the truth lies in the 3D model of behavioural change
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with WRAP motivating over 5m consumers to take positive actions to manage their recycling and food waste
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our business
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social marketing network
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social trends
greater spotlighton companies
growth of active shareholder stewardship
increased focus on shared value (Michael Porter/Mark Kramer)
increasing connectedness
increase in open innovation and co-creation
increased focus on localism
increasing consumer power
increase in collaborative consumption trends
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there comes a time for game-changing, for thinking big and for being bold; and that time is…
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for the love of
peoplefor the love of
people
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summary of sustainable business
“ we are going to solvetough customer and global problems and make moneydoing it.”Jeff Immelt, Chairman and CEO, The General Electric Company
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appendix
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disruptive principlesThe Great RevaluingMarket prices should reflect real social and environmental costs and benefits
The Great RedistributionResources, time and responsibility should be redistributed to local people who own local problems
The Great RebalancingMarkets should collaborate with governments and citizens to co-produce products and services to improve lives for public good
The Great LocalisationDecisions should be taken as locally as possible and good practice scaled up
The Great ReskillingThe new world needs new skills to improve autonomy and collaboration with an understanding of the wider social context
The Great InterdependenceWe should influence other individuals, companies, governments and countries to adopt these principles because we are all mutually dependant
The Great Economic IrrigationFinancial systems should reduce the barriers to this new approach to sustainable success
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implications increased potential for conflict increased national and international
regulation and legislation increased customer power increased localism growth in sustainable investment
to encourage stewardship increase in sustainable consumption
and collaborative consumption a move away from ownership increase in cradle to cradle
product responsibility increase in cross-sector collaborative
action to solve major social issues increase in co-creation
forces for change: summary
forces population increase re-balancing of economies migration and diversity increased urbanisation increase in middle classes increase in inequality older population the deficit in funding older age a resource-constrained world an increase in governance failures an increase in climate change events food scarcity water scarcity technological innovation increased connectedness continuing economic volatility increased threat from on-line security
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