Responsible Business in India Seema Arora 21 April

Responsible Business in India Seema Arora 21 April 2011, Delhi BRCC project meeting © Confederation of Indian Industry

21 st Century Business Drivers Dis Inn rup ov tive ati on & y t r e Pov uity Ineq ge an h C l a b o Gl Popu lation Grow th Urbanisation Indu stria e lisat c on r ion u i t o p s Re sum n o C Pollution e on d a Tr lisati ra e Lib © Confederation of Indian Industry Info r Exp matio losi n on iety c o S l i v i C

Seven Sustainability Revolutions Aspect Old Paradigm New Paradigm Markets Compliance Competition Values Business Societal Transparency Closed Open Life cycle technology Product Function Partnerships Isolation Co-operation Short-term Long-term Advisory Accountable Time-frame Corporate Governance © Confederation of Indian Industry

Sustainability is now seen as a key issue in business… “In the future, only companies that make sustainability a goal will achieve competitive advantage. That means rethinking business models as well as products, technologies, and processes. ” C. K. Prahalad, M. R. Rangaswami and Ram Nidumolu Harvard Business Review 2009 © Confederation of Indian Industry

Our growth & expansion is a reflection of changing markets and what the future will be CII EMD Risk Opportunity Pollution Sustainability Cost Savings & profits Adjustments Innovation Charity Biz models CESD 2006 1992 © Confederation of Indian Industry

Catalysing change through increasing portfolio of products Sustainable Innovation Inclusive Biz Models C-SAP 3 CS ISO 26000 Stakeholder Engagement +++ Bottom of Pyramid Carbon Disclosure Sus Biz Portfolio OHS IMS Social Accountability Sustainability Reporting + 2006 2011 © Confederation of Indian Industry

Sustainable business is dynamic and still evolving Sustainable Business Integrated into goals, strategies Community Investment Strategic partnerships Community Affairs Strategic giving Philanthropy Passive donations Profit Focus Shareholder value © Confederation of Indian Industry

Different tools and approaches Tomorrow • • • Disruptive innovation Renewable energy Sustainable technology Knowledge & service intensity Systems thinking Innovation & Repositioning Growth Path & Trajectory Internal • • Eco-efficiency Risk management Waste minimisation Resource productivity EMS / ISO 14001 OHS / OHSAS 18001 SA 8000 Base of the Pyramid Urban investment Inclusive Capitalism B 2 B External Cost & Risk Reduction Reputation & Legitimacy Today © Confederation of Indian Industry • • CSR Sustainability reporting Stakeholder Management Life-Cycle Management Ecolabelling Full Cost Accounting Transparency

Sustainability Value Framework Tomorrow Drivers • Societal Expectations • Competitiveness Strategy: Clean technology Develop the sustainable competencies of the future Corporate Payoff: Innovation & Repositioning • Pollution • Consumption • Waste Corporate Payoff: Growth Trajectory Sustainable Value Internal Drivers Strategy: Sustainability Vision Create a shared roadmap for meeting unmet needs Strategy: Pollution prevention Minimize waste and emissions from operations Strategy: Product Stewardship Integrate stakeholder views into business process Corporate Payoff: Cost & Risk Reduction Corporate Payoff: Reputation & Legitimacy Today © Confederation of Indian Industry Drivers • Pollution • Poverty • Inequity External Drivers • Societal Expectations • Transparency • Communication

What will drive tomorrow? • • Social media More stakeholder driven Voluntary-regulatory combo Many different forms of businesses; hybrid business will be mainstream in medium term • Resource constraints © Confederation of Indian Industry

Tomorrow will be better; it could be • • Sustainability embedded CG Inclusive / BOP business models Sustainable & inclusive innovation Green will be competitive advantage until medium-term; post that it will be mainstream • Integrated reporting © Confederation of Indian Industry