redesigning management education for the next decade
TRANSCRIPT
REDESIGNING MANAGEMENT EDUCATION FOR THE NEXT DECADE
Is Sustainability Management the future of MBA?
Presented by:S.Bharani RamakrishnanS.Vivek kumarBSMED, Bharathiar University, Coimbatore, Tamilnadu
âș Leading organizations world-wide are turning to sustainability management
âș To examine the implications of their business decisions upon the environment
âș To reduce costs associated with energy consumption
âș To improve processes especially in the areas of compliance, risk management and customer recruitment.
DIFFERENT DIMENSIONS OF SUSTAINABILITY:
Environmental
dimension
Social dimension
Dimensions of
sustainability
Economic dimension
FEATURES AND BENEFITS OF SUSTAINABILITY MANAGEMENT
âș Reduce costs in every area of the enterprise, especially around energy and waste reduction and data centres
âș Identify, assess, and respond to social, economic, and environmental risks
âș Gain performance insight to build best practices
CONT.,âș Drive transparency and
accountability at all levels âș Align resources to increase
collaboration and drive sustainable growth
âș Report to stakeholders around sustainable business practices
âș Track and measure key sustainability metrics using industry recommended methodologies and Performance Management frameworks
SUSTAINABILITY MANAGEMENTINDIAâS PERSPECTIVEâș Indiaâs rapid economic growth in last
several years has made us aware of two stark realities:
âș It has lifted millions out of poverty;
âș This economic growth has been accompanied by accelerated depletion of natural resources and rapid deterioration in environment quality.
âș This has necessitated a new business paradigm which enables rapid economic growth without compromising the capacity of the ecosystem to sustain, nurture and fuel economic development and human well-being.
âș This calls for a sustainability approach of doing business, wherein business success is measured not only in terms of its financial bottom line, but also in terms of its performance in social and environmental areas.
Corporate sustainability management allows for better business risks
It allows a company to provide products and services which fulfil the needs of the customers and are environmentally and socially responsible
It allows a company to plan for manufacturing costs in a way that minimizes risks and losses
BUSINESS ADVANTAGES OF CORPORATE SUSTAINABILITY MANAGEMENT:
Cost and Risk Reduction Reputation and Legitimacy Innovation and Repositioning Clean Technologies Growth Trajectory
BUSINESS CASE FOR CORPORATE SUSTAINABILITY MANAGEMENT
Nurture internal capabilities - Strategic commitment and culture necessary to turn the environmental, social and economic risks into competitive advantage
Engage external constituencies - Systematic knowledge of political, social, economic, technological and ecological drivers for securing reputation and legitimacy
CONT.,
Accelerate innovation and repositioning - Product stewardship into the entire value chain, and skills and competencies for the future
Crystallize the company's growth path and trajectory - A sustainability vision which is a shared road map for meeting the unmet needs of the emerging and new markets
CUTTING EDGE SOFTWARE SOLUTION WITH SUSTAINABILITY MANAGEMENT
The sustainability management service providers online are ready to work in partnership with various commercial as well as public sectors to provide an optimised solution for their clients
They combine the latest technology with the existing management resources to deliver effective solutions
They offer higher level of assistance to bring about effective changes for proper management of the resources
DEMAND FOR LEADERS IN SUSTAINABILITY ON THE RISE
The curriculum should prepare the managers, executives and entrepreneurs to lead their companies to a more successful and sustainable way of doing business â one that enhances all forms of capital, including natural, human and financial
The managers and executives should learn to both understand and apply sustainable solutions that transform traditional business strategies.
CORPORATE SUSTAINABILITY MEASUREMENT AND REPORTING TOOLS:
Pattern of resource use
Rate of associated resource production
Sustainability
The most mainstream CSM measurement and reporting tools currently in use: the Global Reporting Initiative (GRI)
GRI focus almost entirely on the numerator, and rarely, if ever, on the denominator
Does the rate of resource use (the numerator) exceed, match, or fall below the rate of resource production or renewal (the denominator)?
Are business operations sustainable or not?
This is the fundamental question that CSM practitioners in industry should be trying to answer. Yet, ironically, most mainstream CSM measurement and reporting tools in use today fail to address it
THE ROLE OF MBA INSTITUTES
âș The institutions adopting a curriculum designed around the principles of sustainability should work on solutions to this problem and offer some promising ideas
âș The institutions not only have to develop quotients for environmental sustainability management, but also for economic and social sustainability management, as well
SUSTAINABILITY INDEXES
Corporate sustainability - including practices that are good for the climate - is becoming an important factor in investor decision-making
Sustainability Indexes quantify the competitive position of a company as regards global sustainability trends and the companyâs sustainability profile
Example: Dow Jones Sustainability Indexes
The Dow Jones Sustainability Indexes track and define industry leaders that effectively integrate economic, social, and environmental concerns into their business strategies
Companies that embrace sustainability issues will generate more long-term shareholder value
Because they do not ignore future risks resulting from technological developments, social inequalities, and growing environmental problems
BEST-IN-CLASS The German auto manufacturer BMW is a
sustainability leader.
BMWâs effective management, state-of-the-art production process, advanced employment culture, and its strong commitment to reducing the carbon dioxide emissions of its cars.
Climate-concerned product initiatives, such as General Electricâs âecomagination,â demonstrates integration of eco-design requirements is in the industrial sector
âș Businesses across the world are therefore recognising the need to address the environmental and social impacts of their activities which, together with profits
âș Leading organizations have now started to operate with a high sensitivity to social, environmental and economical issues
âș The future competitiveness among the organisations requires internalization of sustainability management through a clear, practical, integrated framework.
THE QUOTIENTS!!
Therefore, the MBA programmes has to start focusing more on the sustainability management, and develop quotients for environmental, economic and social sustainability