Corporate Social Responsibility (CSR)
Explains how the company behaves
Environmental, Social and Governance (ESG)
Codify what the company discloses /reports
Socially Responsible Investing (SRI)
Analyze companies according to their CSR practices and ESG disclosures
CEO Advisory Council (CAC)
Platform for support and best practices
Quality Risk Management (QRM)
Governance, Risk, & Compliance (GRC)
To adopt a risk management
policy that complies with local legal requirements and promotes a decentralised
Some key themes:
- An emphasis on results and service
- An emphasis on relationships
- An emphasis on measurement and analysis
- An emphasis on learning and better organizational thinking
- An emphasis on cross organizational thinking to solve economic and social problems
- An emphasis on stewardship of resources, human, financial, time and other
- An emphasis on embedding sustainability through resilience in strategy, organization and individual:
R = P * e²
R = resilience
P = people
e = efficiency 2 fold: processes & cost/cash flow
Key elements of sustainability thinking.
- Intergenerationality: thinking about the long term consequences future generations will need to deal with
- Transparency: we make our assumptions known
- Systems approach: use best available data, look at how multiple systems are affected
- Pay the true cost for things: externalities considered
Design the modern movement.
- Release fewer pounds of toxics into the air, water and soil every year
- Measure prosperity by less activity
- Meet the thousands of regulations, that still keep people from being poisoned to quickly
- Produce fewer highly dangerous materials requiring future vigilance
- Produce smaller amounts of useless waste
- Put smaller amounts of valuable materials in holes where they can never be retrieved
A sustainability movement.
- Build buildings that produce more energy than they consume and purify their waste water
- Factories produce effluents that are drinkable
- Produce products that when useful life ends: they can become nutrients for soil or return to industrial cycles for new products
- Billions and trillions of materials accrued for natural and human purposes each year.
- Transportation that improves quality life and delivers goods and services
- A world of abundance, not one of waste, limits, pollution and waste
Strategies to a sustainable future.
- Radical resource productivity: it slows resource depletion at one end of the value chain, lowers pollution at the other end, and provides a basis to increase worldwide employment with meaningful jobs.
- Biomimicry: Eliminate the idea of waste, by redesigning industrial systems along biological lines that can change the nature of industrial processes and materials, enabling the constant reuse of materials in continuous closed cycles, and often the elimination of toxicity.
- Service and flow economy: Shift from a economy of good and services to one of service and flow. This will entail a new perception of value, a shift from the acquisition of goods as a measure of affluence to an economy where the continuous receipt of quality, utility, and performance promotes well-being. Focuses on relationships that reward resource productivity and closed-loop cycles of materials use.
- Invest in natural capital: Work toward reversing world-wide planetary destruction through reinvestments in sustaining, restoring and expanding stocks of natural capital, so that the biosphere can produce more abundant ecosystem services and natural resources.
Governance, Risk, & Compliance (GRC)
GRC is an approach to business. An approach that permeates the organization: its oversight, its processes, its culture, its boundaries.
GRC is about the integrity of the organization:
- Is the organization properly managed and governed?
- Does the organization take and manage risk within boundaries of risk appetite and tolerance?
- Does the organization meet its legal/regulatory compliance obligations? Its social responsibility and sustainability commitments?
- Does the organization make its code of ethics, policies, and procedures clear to its employees and business partners?
- Are the values of the organization clear and understood across the business and its relationships?
- Does risk and compliance contribute to corporate performance, strategy, & objectives?
The challenge of GRC is that each individual term – governance, risk, and compliance – has varied meanings across the organization. There is corporate governance, IT governance, financial risk, strategic risk, operational risk, IT risk, corporate compliance, Sarbanes-Oxley (SOX) compliance, employment/labor compliance, privacy compliance, ethics, social responsibility . . . the list of mandates and initiatives goes on and on.
Good governance can only be achieved through diligent risk and compliance management.