sustainability in the agri-food context (agroecology course lecture)
TRANSCRIPT
Outline
1. Origins of Sustainability
2. Social Responsibility and Sustainability
3. Components of Sustainability
4. Measuring Sustainability
Notable Contributors
• Adam Smith– Scotland, 1723-1790
• Peter Drucker– Austria, 1909-2005
• Gro Brundtland– Norway, 1939- present
Such is the delicacy of man alone, that no object is produced to his liking. He finds that in
everything there is need for improvement… The whole industry of human life is employed
not in procuring the supply of our three humble necessities, food, clothes and lodging, but in procuring the conveniences of it according to
the nicety and delicacy of our tastes.
Adam SmithAuthor: An Inquiry into the Nature and Causes of the Wealth of Nations
Professor of moral philosophy at University of GlasgowPioneer of “political economy” (study of production)4
Leaders in every single institution and in every single sector … have two responsibilities. They are responsible and accountable for the performance of their institutions, and that requires them and their institutions to be concentrated, focused, limited. They are responsible also, however, for the community as a whole.
Peter Ferdinand Drucker“Father of Management”
Presidential Medal of Freedom Recipient
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Sustainable development is that which meets the needs of the present without compromising the ability of future generations to meet their own needs.
Gro Harlem BrundtlandPrime Minister, Norway (1981, 86-89, 90-96)
World Commission on Environment & Development (1983-87)Director-General, World Health Organization (1998-2003)
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Origins
21st
• Community responsibility
• Transparency
Late 20th
• Societal concerns
Early 20th
• Environmentalism
19th
• Production• Reliable raw
material sourcing
18th
• Necessities of Life
Development of Current State (Agriculture)
Chemical Factors
Bio- FactorsPhysical Factors
Soil Quality
Air QualityWater Quality
Environ Quality
Economic Viability
Social Respon-sibility
Soil Quality Environmental Quality Agricultural Sustainability
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Sustainable Agriculture
"Sustainable agriculture is the efficient production of safe, high quality agricultural
products, in a way that protects and improves the natural environment, the social and economic conditions of farmers, their
employees and local communities, and safeguards the health and welfare of all
farmed species."
We live today in an age of sustainababble, a cacophonous
profusion of uses of the word sustainable to mean anything from
environmentally better to cool.
Robert EngelmanWorld Resources Institute)
Now sustainability is such a political category that it’s getting more and more difficult to think about it in a serious way. Sustainability has
become an ornament.
Rem KoolhaasDutch Architect)
Sustainability may be defined as a values-laden umbrella concept
about the way in which the interface between environment & society
(including its institutions & individual members) is managed to ensure that human needs are
met without destroying the life supporting ecosystems on which we depend.
Wayne VisserThe Age of Responsibility
Animal Welfare
Anti-corruptionCommunity Involvement & Philanthropy
Consumer Health, Safety, Privacy, or Support
Education or CultureEmployee Ethics
Employment Creation
Fair competition
Stakeho lder Dia logue Capacity-Building
Pollution Prevention
Clean Technology
Climate Change
Fair Taxation
Gender
Diversity & Non-discrimination
Sustainable Resource Use
Human Rights & Security
Intellectual Property & Access to Technology
Sustainabi li ty Reporting
EnvironmentGovernance & Risk
Public Health
Fair Supplier Relations
Social En te rp r ise
Fair Marketing
Labour Practices
Political InvolvementSocial Di al og u e
Respons ible Inve stment
Social Development
Human DevelopmentWork Health & Safety
(Economic Inequality)
“values-laden umbrella”
The 7 Drivers for (Voluntary) Sustainability
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Cost Reduction
Resource Conservation
Talent Attraction, Retention, Motivation
Satisfying Customer
Needs
New Business
Opportunities
Capital and Social
Investment Attraction
Legal Compliance/
Activism
Sustainability is the strategic philosophy used to change action and plan for the future;
Social responsibility the responsibility to be communicate these actions appropriately.
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Corporate Social Responsibility vs Sustainability
CSR Sustainability
Vision Looks backwardsReports actions
Looks forwardsPlans change
Targets Opinion-formers (advocates, media)
Value chain management(suppliers to consumers)
Business Compliance Business practice
Management Communications Operations/Marketing
Reward Stakeholders Citizenry
Drive Social CapitalExisting market reputation
Emerging markets opportunities
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RESPECT
EQUITY
TRANSPARENCY
TRUST
MUTUTAL BENEFIT
SUSTAINABILITY
Because it leads to
Because it leads to
Because it leads to
Why CSR: Key Partnering Principles
A brand is no longer what we tell the consumer it is – it is what
consumers tell each other it is.
- Scott D. Cook, CEO Intuit
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PhilanthropyDoing something without changing
Reputation ManagementChanging only enough to reduce risk
Strategic ResponsibilityPromoting organisational effectiveness
Social InnovationSeeking new outputs to solve problems
SocietalLeadership
Influencing surroundingconditions for mutual benefit
Businessas usual
Evo
lvin
g S
ocia
l Res
pons
ibili
ty
Mainstreaming Organisational Responsibility
Integrating Organisational Responsibility
PhilanthropyDoing something without changing
Reputation ManagementChanging only enough to reduce risk
Strategic ResponsibilityPromoting organisational effectiveness
Social InnovationSeeking new outputs to solve problems
SocietalLeadership
Influencing surroundingconditions for mutual benefit
PhilanthropyDoing something without changing
Reputation ManagementChanging only enough to reduce risk
Strategic ResponsibilityPromoting organisational effectiveness
Social InnovationSeeking new outputs to solve problems
SocietalLeadership
Influencing surroundingconditions for mutual benefit
Businessas usual
Evo
lvin
g S
ocia
l Res
pons
ibili
ty
Mainstreaming Organisational Responsibility
Integrating Organisational Responsibility
Organizational Responsibility
Why?
1.Hyper-globalization
2.Easy & affordable communication
3.Product customization
4.Demographics
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1. Hyper-globalization
• Trade integration– Significant decrease in information and
communication costs– Fragmentation of manufacturing across
borders– Individual production stages geographically
corresponds to lowest COP– Rise in multinational corporations (>80,000)
and foreign direct investment• Accounts for 67% of world trade
Source: Subramanian & Kessler, 201329
What to Expect: Sustainability Standards
• Strong environmental and social focus
• Little emphasis on management (economics)
• Implications for public sector?
Expectations
• Obligation demonstrates sector is in reactionary state
• When will shift to proactive strategy occur?
Action:
Likely Result:• Marketing move to support existing alpha-consumers? Yes.
• Bold stance that will build social capital and loyalty in the brand? Yes.
• Gaining preferential access to a hardworking demographic that will increase productivity? Yes.
• Change in hiring policy? …• 10,000 employees = 4% of company today• Average annual growth of earnings: 17.86%
The 7 Drivers for (Voluntary) Sustainability
1. Reduce Costs2. Conserve Resources3. Attract, Retain & Motivate Talent4. Satisfy Customer Needs5. Develop New Business Opportunities6. Attract Capital & Social Investment7. Legal Compliance & Legal Action/Activism
Modified Maslow’s LawGrowth*
Tension/ Stress
Actualization
Esteem
Culture
Safety
Basic Operation generating revenue, paying bills
Consistent revenue/profit, risk mitigation
healthy workplace, work-life balance,
viable
confidence, brand recognition
creativity, problem solving, innovation
Materiality & Benchmarking
• Materiality: What is relevant to your vision?
• Benchmark: What can I realistically measure?
Develop SMART Goals
• Define goal• Who is involved? What is being accomplished? Where is being done? Why am I doing
this? Which resources do I need?
Specific
• Can I track progress and measure outcome?• How will I know I reach my goal?
Measurable
• Is it reasonably likely to be accomplished?
Attainable/Achievable
• Does it contribute to my Vision?
Relevant
• Does it have a time limit?
Timely
ExampleObjective Key
Performance Indicator
Performance Measure
Goal Actual
Environment Energy Consumption
Water Quality
Energy Use (kWh)
Nutrients in waterway
X
Y
Social Improving Community
Family Health
Adopt RoadSponsor Team
Sunday Dinner
Y/NY/N
45Economic Production
Efficiency
Business Continuity
Annual YieldProd. Efficiency
Actual Growth Rate
Z+2%
3%