Did You Think Slavery Was Abolished In The 19th Century?

On January 31, 1865 the U.S. House of Representatives passed the 13th Amendment to the Constitution. It abolished slavery in America with the statement that read; “Neither slavery nor involuntary servitude…shall exist within the United States, or any place subject to their jurisdiction.” Prior to that time, Britain abolished slavery throughout the British Empire with the Slavery Abolition Act 1833 and the French colonies abolished it in 1848.

In the 21st Century, with focus on brand reputation and transparency, we are beginning to recognize injustices and social issues that have been ignored for decades or centuries. Ethical values of any corporation becomes the drivers for all employees. And if the corporation extends beyond the territorial boundaries of their corporate headquarters, what those values mean need to clearly be communicated and embraced in host country affiliates, too.

Unfortunately, many companies are still accepting these practices through their supply chains. The acceptance of slavery, child labor and other labor issues are becoming visible to organizations as Apple, HP and Cisco.  However, some of these multinational corporations are beginning to enact policies of change while other contemporary companies are still ignoring controversies relating to employee grievances or treatment solely for economic purpose, not humanitarian.

As the article indicates: “Obtaining reliable estimates of the extent of the problem of modern slavery is only the first step in eradicating it. Modern slavery will only end after the systematic causes and consequences of the problem are dealt with. First, victims must be identified and get the support they need to leave their situation. Criminal justice mechanisms need to be reinforced and coordinated to successfully prosecute perpetrators. Global supply chains need to be carefully monitored to avoid labor abuses by contractors and subcontractors.

Through its global surveys, Gallup will continue to partner with Walk Free in its mission to give a voice to the millions of people enslaved around the world.”

http://www.gallup.com/poll/179459/million-adults-children-slavery-worldwide.aspx?utm_source=alert&utm_medium=email&utm_content=morelink&utm_campaign=syndication

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Deforestation: A Lesson That Has Been Elusive

For centuries, humanity has focused on what Paul Hawken called the Take-Make-Waste model. Take what Nature has created in our Biosphere. Make what you want without regard to being a good Steward and replant to grow future resources. And last, but worst, create Waste that is not recycled nor repurposed.

This practice has last for millennia. It has crossed almost all cultures. It has been practiced in agrarian, as well as, industrial societies.  It has occurred in Communist countries with little or no environmental regulations, to Capitalistic societies who often push back on environmental regulations.

But what has the been the cost? That varies from region to region. The sort answer is the loss of the Biosphere that may not be replicated or recovered from poor practices. In a changing world economy, all resources are precious. Can we still embrace the Take-Make-Waste model? Read what is an example in China: http://www.sciencedaily.com/releases/2014/12/141218081008.htm

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Food Waste Mitigation & Trends

“The best time to plant a tree was 20 years ago. The second best time is now.” ~Chinese Proverb
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New methods to change waste

In 2014, there are trends to remediate food waste through recycling, banning food garbage in landfills and converting food into renewable energy. Here are some  examples of what is happening in the United States:

In Connecticut,  beginning in January 2014,  a new law was passed requiring businesses within 20 miles of composting facilities are obliged to recycle their food waste. Businesses producing more than 104 tons per year will be required to meet this food recycling obligation.

In New York City, food waste recycling efforts are being discussed with Waste Management. Beginning this year, Waste Management has started delivering truckloads of waste to a Brooklyn wastewater treatment plant that will be converting it into energy.

In Massachusetts,  a commercial food waste landfill ban goes into effect in 2014. The state hopes the ban will meet or exceed waste reduction goals and increase the food recycling infrastructure. It is important to note that the Red Sox are involved in this program and their support strengthens awareness.

For more information: http://tinyurl.com/olvs62c

Top 20 Trends for 2014

The National Restaurant Association surveyed professional chefs, members of the American Culinary Federation, on which food, cuisines, beverages and culinary themes will be hot trends on restaurant menus in 2014. The What’s Hot in 2014 survey was conducted in the fall of 2013 among nearly 1,300 chefs. Click on the link below to read more information about their methodology.

1. Locally sourced meats and seafood
2. Locally grown produce
3. Environmental sustainability
4. Healthful kids’ meals
5. Gluten-free cuisine
6. Hyper-local sourcing (e.g. restaurant gardens)
7. Children’s nutrition
8. Non-wheat noodles/pasta (e.g. quinoa, rice, buckwheat)
9. Sustainable seafood
10. Farm/estate branded items
11. Nose-to-tail/root-to-stalk cooking (e.g. reduce food waste by using entire animal/plant)
12. Whole grain items in kids’ meals
13. Health/nutrition
14. New cuts of meat (e.g. Denver steak, pork flat iron, tri-tip)
15. Ancient grains (e.g. kamut, spelt, amaranth)
16. Ethnic-inspired breakfast items (e.g. Asian-flavored syrups, Chorizo scrambled eggs, coconut milk pancakes)
17. Grazing (e.g. small-plate sharing/snacking instead of traditional meals)
18. Non-traditional fish (e.g. branzino, Arctic char, barramundi)
19. Fruit/vegetable children’s side items
20. Half-portions/smaller portions for a smaller price

For more information: http://www.restaurant.org/Downloads/PDFs/News-Research/WhatsHot/What-s-Hot-2014.pdf

Another interesting survey

Further, the National Waste & Recycling Association is the trade association that represents the private sector waste and recycling services industry.  Their recent survey finds most Americans would compost if it was more convenient in their community. Here are some of the results:

•     72 percentage of Americans do not compost their food waste
•     67 percentage of non-composters who would be willing to do it if it were convenient in their community
•     62 percentage of Americans who would not support any increase in the cost of waste disposal if composting were offered to them

For more information: http://tinyurl.com/ph9qob4

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Owners, Executive and other Leaders are investigating a global world concerned about Sustainability, that type of understanding can be difficult to obtain. In early December 2013, I published my second book entitled “Building a Bridge to Benefits”. If you are interested in reading about the book or want to purchase copies today, here is the link to CreateSpace, an Amazon company, go to: https://www.createspace.com/4532590
______________________________________

Contact information and Services
A Certified Sustainability and Quality consultancy
•    Sustainability and Quality Consulting
•    Sustainability and Quality Workshops
•    Sustainability and Quality Speaking Engagements

Jarvis Business Solutions, LLC

Toll Free: (888) 743-3128
Email: Ralph.Jarvis@JarvisBusinessSolutions.com
Web site: http://www.JarvisBusinessSolutions.com

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Food Wastes

The two most important days in your life are the day you are born and the day you find out why. –Mark Twain

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A few years ago, the environmentalist – Daryl Hannah, wrote an article entitled;  “If Food Waste Were a Country, It Would Rank No. 3 for Greenhouse Gas Emissions”.  In that article, she suggested that maximizing regional self-sufficiency with prudent agricultural practices and energy production conservation methods will strengthen local economies, make them more resilient  … and ease the sense of scarcity and the economic burden increasingly felt by the majority. To my chagrin, I have to agree with Ms. Hanah. Food is a critical Sustainability issue and will continue to be so for the next four decades, especially if we don’t begin addressing it today.

In 1980, just as the Green Revolution began being implemented in much of the world, 47 percent of all children in the developing world had stunted growth, a good measure of their nutrition level. By the year 2000, it had dropped to 33 percent. The Green Revolution laid the cornerstone for adequate nourishment by increasing the available calories and protein of the developing world’s people. Statistician Amy Pearce estimates that Norman Borlaug’s Green Revolution resulted in over 245 million lives being saved due to improved nutrition.

As Borlaug continued his efforts to expand agricultural success, he found himself fighting off some environmentalists who denounced his methods of using large amounts of fertilizer and pesticide. Borlaug responded, “Some of the environmental lobbyists of the Western nations are the salt of the earth, but many of them are elitists. They’ve never experienced the physical sensation of hunger. They do their lobbying from comfortable office suites in Washington or Brussels. They have never produced a ton of food. If they lived just one month amid the misery of the developing world, as I have for 60 years, they’d be crying out for fertilizer, herbicides, irrigation canals and tractors and be outraged that fashionable elitists back home were trying to deny them these things.”

Borlaug notes that without modern farming technology, an additional area the size of the contiguous United States would have to be farmed to feed today’s world population. Thus, a side benefit of Borlaug’s Green Revolution may be that it saved more land for wilderness than any other single environmental initiative.[1]

Thirty two years later, the EPA quantifies the magnitude of food waste in the United States. “More food reaches landfills and incinerators than any other single material in municipal solid waste (MSW). In 2012 alone, more than 36 million tons of food waste was generated, with only five percent diverted from landfills and incinerators for composting.”

The US EPA suggests six ways of utilizing food more efficiently. “How Can I Divert Food From Landfills?” If you go to that web page will read kore details (http://www.epa.gov/waste/conserve/foodwaste/), but the generally focus are on these six points:

•    Source Reduction/Prevention – Preventing food waste before it is created
•    Feeding People – Donating fresh, wholesome food to those in need
•    Feeding Animals – Feeding safe, fresh food scraps to animals like pig farms
•    Industrial Uses – Rendering fats, oils, and grease and turning it into products or biofuel
•    Composting – Turning food waste into a valuable soil amendment
•    Anaerobic Digestion – Turning food waste into renewable energy and a valuable soil amendment

This problem is on the mind of Ken Botts who is the special projects manager of the University of North Texas Food Department. Ken and I had lunch the other day and he shared that he firmly believed in Sustainability and one of the tenants is to eliminate waste, in his case – food waste. He shared that the food department is trying to do a better job of communicating the issue of food waste and plans an awareness campaign to launch UNT’s food waste recovery program. This is an extension of his efforts from last year: http://ntdaily.com/unt-to-launch-food-waste-recovery-program-in-fall/

What are the environmental benefits from reducing or eliminating food waste?
•    It reduces methane generated by decomposition in landfills
•    It reduces natural resource (land and water) use associated with food production
•    It creatives a valuable soil amendment (nutrients are returned to the soil)
•    It improves sanitation, Public Safety, and Health at your facility

What are the economic benefits from reducing or eliminating food waste?
•    It lowers overall disposal costs
•    It reduces over purchasing and labor costs
•    It receives tax benefits by donating food

What are the social benefits from reducing or eliminating food waste?
•    It feeds people, not landfills

As Ray Anderson, the first Sustainability pioneer, said;  “I also believe that it doesn’t happen quickly (e.g. Sustainability) … it happens one mind at a time, one organization at a time, one building, one company, one community, one region, one new, clean technology, one industry, one supply chain at a time … until the entire industrial system has been transformed into a sustainable system, existing ethically in balance with Earth’s natural systems, upon which every living thing is utterly dependent.”

If we listen to what Mr. Anderson urged, that identifying waste is not only a part of the solution, it is the action we must be take to eliminate the waste. We quantify success by results measured. So, we can finally see that it is indeed “transformed into a sustainable system, existing ethically in balance with Earth’s natural systems, upon which every living thing is utterly dependent.” To divert food waste from landfills would be testament to Mr. Anderson’s insight. In this case, benefits for American citizens dependent on food stamps and those countries, globally, that do no have enough food today. Reclaiming 36 million tons of food could be the largest gift to the world.

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[1] Wilson, Chuck, “Father of the Green Revolution – He Helped Feed the World!”,ScienceHeros.com, Retrieved: 18 Sep 2012

______________________________________

Owners, Executive and other Leaders are investigating a global world concerned about Sustainability, that type of understanding can be difficult to obtain. In early December 2013, I published my second book entitled “Building a Bridge to Benefits”. If you are interested in reading about the book or want to purchase copies today, here is the link to CreateSpace, an Amazon company, go to: https://www.createspace.com/4532590
______________________________________

Contact information and Services
A Certified Sustainability and Quality consultancy
•    Sustainability and Quality Consulting
•    Sustainability and Quality Workshops
•    Sustainability and Quality Speaking Engagements

Jarvis Business Solutions, LLC

Toll Free: (888) 743-3128
Email: Ralph.Jarvis@JarvisBusinessSolutions.com
Web site: http://www.JarvisBusinessSolutions.com

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Understanding Volatility, Uncertainty, Complexity, Ambiguity

“There’s an awful lot of talented people in this country and a lot of them put their own money into trying to break through. But because they haven’t got the knowledge or the business expertise to do it, they fail.” ~Steve Betts
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Originating from NSA and US military needs of analyzing a changing environment in today’s world, VUCA is a methodology that helps assess the environment. It is based on these four phases:

• Volatility. The nature and dynamics of change, and the nature and speed of change forces and change catalysts.
• Uncertainty. The lack of predictability, the prospects for surprise, and the sense of awareness and understanding of issues and events.
• Complexity. The multiplex of forces, the confounding of issues and the chaos and confusion that surround an organization.
• Ambiguity. The haziness of reality, the potential for misreads, and the mixed meanings of conditions; cause-and-effect confusion.

Understanding the VUCA World
September 16, 2013
Bob Johansen, of the Institute for the Future, with David Small, VP of Global Talent at McDonald’s Corporation, introduce the concept of the VUCA (volatile, uncertain, complex, ambiguous) World, and the four strategies to counteract it.

Follow this link: http://www.cvdl.org/blog/understanding-vuca-world/
______________________________________

Owners, Executive and other Leaders are investigating a global world concerned about Sustainability, that type of understanding can be difficult to obtain. In early December 2013, I published my second book entitled “Building a Bridge to Benefits”. If you are interested in reading about the book or want to purchase copies today, here is the link to CreateSpace, an Amazon company, go to: https://www.createspace.com/4532590
______________________________________

Contact information and Services
A Certified Sustainability and Quality consultancy
•    Sustainability and Quality Consulting
•    Sustainability and Quality Workshops
•    Sustainability and Quality Speaking Engagements

Jarvis Business Solutions, LLC
Toll Free: (888) 743-3128
Email: Ralph.Jarvis@JarvisBusinessSolutions.com
Web site: http://www.JarvisBusinessSolutions.com

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Creating Cleaner Energy: Comparing Apples to Oranges

“To be thrown upon one’s own resources, is to be cast into the very lap of fortune; for our faculties then undergo a development and display an energy of which they were previously unsusceptible” ~ Benjamin Franklin


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A study from the US Department of Energy answered many questions discussed in the article cited below and highlight future needs for more investigation to help power generation owners insight on deciding to retrofit or rebuild power plants. Even though system-wide impacts of cycling are modest, an individual unit could suffer higher than average cycling. Plant owners in this situation will want to know whether they should retrofit their unit or change their operations to better manage cycling at a lower overall cost. Ongoing work includes research on potential retrofits or operational strategies to increase the flexibility of fossil-fueled generators. This includes analysis of the costs and benefits of retrofitting existing plants for options such as lower minimum generation levels or faster ramp rates.

Additional analysis work that would illuminate the impacts of cycling and further compare wind and solar includes the following:

• Market impacts on fossil-fueled plants: How do increased O&M (operations and maintenance) costs and reduced capacity factors affect cost recovery for fossil-fueled plants? What market structures might need revision in a high wind and solar paradigm? How do the economics look for those plants that were most affected?
• Fuel-price sensitivities: How are operations and results affected by different fuel prices for coal and gas?
• Different retirement scenarios: How are operations and results affected if significant coal capacity is retired or if the balance of plants is flexible versus inflexible?
• Storage: Does storage mitigate cycling and is it cost effective?
• Impacts of dispersed versus centralized PV (photovoltaic): How does rooftop versus utility-scale PV affect the grid?
• Reserves requirement testing to fine tune flexibility reserves: What confidence levels of flexibility reserves are most cost effective and still retain reliable grid operation?
• Scenarios with constrained transmission build-outs: If transmission is constrained, what is grid performance and how is cycling affected?
• Reserve-sharing options: How do different reserve-sharing options affect grid operations?
• Increased hydro flexibility and modeling assumptions: How does flexibility in the hydro fleet affect grid operations and what is the impact on cycling?
• Hurdle rates to represent market friction: With higher hurdle rates to mimic less BA (balancing authority) cooperation, how are grid operations and cycling affected?
• Comparison of the detailed 5-minute production simulation modeling with cycling costs to hourly production simulation modeling without cycling costs: How much more accurate is the detailed modeling?
• Gas supply: Is additional gas storage needed? How does increased wind/solar affect gas scheduling and supply issues?

Dr. Greg Unruh tells me that in years past the financial benefits of energy management might have “looked minor compared to investing in new product development or a new marketing campaign.” But now, he says, with the price of energy going up, the economics of energy management become “much more interesting.” As a unit of energy goes up in price, “it cuts the payback period” for an energy-management project[1].

For more information, read this article for more information: How to save $7 billion by greening up the grid

Footnote:
[1] Al Bredenberg; Energy and Carbon Management Are Increasingly on Manufacturers’ Radar; ThomasNet http://news.thomasnet.com/green_clean/2012/08/27/energy-and-carbon-management-are-increasingly-on-manufacturers-radar/; August 27th, 2012

When Science and Business Create Cleaner Energy:  How to save $7 billion by greening up the grid

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New Book Excerpt: Targeting Organizational Waste

 “Usually, if you’re greening an industrial process, it means you’re turning waste into profit.”
~ Amory Lovins
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William McDonough, one the co-authors of Cradle-to-Cradle that is widely acknowledged a one of the most important environmental manifestos of our time, once said; “You don’t filter smokestacks or water. Instead, you put the filter in your head and design the problem out of existence.” Whether you are designing a new LEED building, designing an end-of-life process or simply integrating CSR into your Strategic Planning framework, the idea is the same; “you put the filter in your head and design the problem out of existence.”

The percentage of companies reporting a profit from their Sustainability efforts rose 23 percent last year, to 37 percent, according to the most recent global study by the MIT Sloan Management Review (MIT SMR) and the Boston Consulting Group (BCG[1]).

The extent to which a company incorporates Sustainability concerns into its business model often correlates with its increase in profit, the survey found. For example, 50 percent of respondents said they profited by changing three or four business model elements to reflect more sustainable practices, while 60 percent said they profited by including Sustainability as a permanent fixture in their management agenda[2].

This is an excerpt of my new book “Building a Bridge to Benefits”. Publication date is scheduled for November 2013 and is planned to be available on Amazon. More to come …
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Jarvis Business Solutions, LLC
Contact Information
Email: Ralph.Jarvis@JarvisBusinessSolutions.com
Blog: http://horizons.JarvisBusinessSolutions.com
Web site: http://www.JarvisBusinessSolutions.com
LinkedIn: http://www.linkedin.com/in/corporatesocialresponsibility/

Lead Smart, Endless Opportunities when Sustainability is driven by Lean Six Sigma
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Footnotes
[1] Kiron, David; Kruschwitz, Nina; Haanaes, Knut; Reeves, Martin and Goh, Eugene; Companies Profit From Embracing Sustainability; MIT Sloan Management Review; March 12, 2013
[2] Kiron, David; Kruschwitz, Nina; Haanaes, Knut; Reeves, Martin and Goh, Eugene; Ibid.

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Food Security Will Affect Supply Channels

“It’s difficult to believe that people are still starving in this country because food isn’t available.” ~ Ronald Reagan
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Food security is much different from food logistics. In the not to distant future, food will be a megaforce that impact countries around the world.  The world will appear very fragile with dramatic growth in world population, limits on water, exposure to environmental risks (including floods, droughts, wars, etc.) and potential for dramatic famine forecasts will rise similar to those 1960s.

But channels will change and include new requirements:

• Not because food cannot be produced, but because food cannot be produced to meet population demand.
• Food will be revised from traditional meats, fish, poultry and vegetables to include a wider source that will rely on insects and worms as protein becomes scarce.
• Populations will grow dramatically along the coasts and will higher demands for food. Not all will be met from harvesting the ocean. Instead, cites will have to build high rise market for crop growth and raising other food needs.
• Roof tops and undeveloped urban lots will serve as community garden areas for neighborhoods.
• Use go genetically modified (GM) foods will be modified in a way that does not naturally occur. This method has been used genetically from one plant to another. But, future GM application may be used to increase resistance to herbicides, increase yield or increase nutrient content of food.

Here is a brief article that would expand on these ideas, courtesy of BBC News:
http://www.bbc.com/future/story/20130603-city-farms-to-feed-a-hungry-world

_____________________________________________________________________
Jarvis Business Solutions, LLC
Contact Information
Email: Ralph.Jarvis@JarvisBusinessSolutions.com
Blog: http://horizons.JarvisBusinessSolutions.com
Web site: http://www.JarvisBusinessSolutions.com
LinkedIn: http://www.linkedin.com/in/corporatesocialresponsibility/

Lead Smart, Endless Opportunities when Sustainability is driven by Lean Six Sigma
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What is a Sustainability Initiative?

“People only see what they are prepared to see.” ~ Ralph Waldo Emerson
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Business needs a model to integrate strategies with objectives, both business and sustainability, to collaborate internally, listen to external publics, effectively apply effort and resources that produce products and services fulfilling expectations of the customer. It promotes continuous improvement while recognizing stewardship for the environment, while benefiting the corporation.

“In a typical large change program, it is not a matter of sending out the new organization chart or the new budget or the new strategy with a few projects. It is about changing people’s behavior, often a lot of people, and this is not trivial.”           ~ Professor John P Kotter, Harvard Business School

Interesting enough, research shows there are at least two paths to Sustainability. Sustainability can be a voluntary, directed and focused initiative designed to transform the mindset and culture within your organization. Often times this is a culmination of a series of transformations that has brought your organization to realize that the next step should be long-term and more stable over time. Sustainability can also be an obligation from the central government to ensure environmental control of emissions that encourages best practices or driven by market or internal forces to survive the changing market landscape.

However, there is another perspective that acknowledges that Sustainability is the evolutionary “next step” of investigating internal and external opportunities. Not every company understands Sustainability, nor embraces CSR to implement it correctly.  Understanding starts with recognizing threats and accepting why change is necessary. Here are seven possible explanations of why a company would choose to be socially responsible:

Reason #1: Urgently Needed Fixes.  Often times, Owners and Executives will want to transform their organization, with a since of urgency, for immediate reasons. Many times this is triggered by a crisis or event that forces the need for change.  It may be a vacuum in the succession of the business leadership, market valuations, illegal business practices or environmental catastrophes. Owners and Executives, who are forward thinking, will recognize potential impact of their crisis and foresee the consequences and recognize the potential exposure from past practices.

Reason #2: It’s just the way it has always been[1]. Succession of leadership is an opportunity for change. This is especially true when the original founders of the Corporation past leadership roles to trusted personnel and family. Taking this transition creates an opportunity for change that could outline a number of reasons why executives would consider Sustainability as the next logical organizational change. The organizational mantra “it’s always been this way” should be a signal for leadership to look at areas of waste and applying Sustainability and Quality principles.

Reason #3: CEO interest[2]. A CEO may have a number of interests around Sustainability, but the two most important are based on tangible benefits in mitigation of external risks. Today, more often than not CEOs will rely upon their CFOs expertise and understanding of tangible benefits from Sustainability. From a risk point of view, CEOs must play the leadership role when confronted by NGOs. As Steve Fludder, VP of Ecomagination, GE said; “Let’s figure out how to take the world in a different direction and let’s all go there together.”

Reason #4: Reducing Costs To Stay Competitive. Good leadership will have costs as targets for business success. Would these cost savings have happened anyway without Sustainability?  Perhaps. Looking through Sustainability lens, identification and elimination of costs will be seen differently. Here are some examples of how costs could increase performance and profitability in an organization:

•    Cut mileage out of transportation routes
•    Reduce energy consumption
•    Reduce water consumption
•    Telecommuting to reduce employee carbon footprint and increase productivity
•    Eliminate a variety of waste, internally and externally

Reason #5: Legislation Uncertainty. CSR is a form of corporate self-regulation integrated into a business model. Astute executives are CEOs are wary of looming “anti-business” rhetoric and possible legislation that will increase government involvement in environmental processes and procedures. In this context, CSR is a mitigation tool against government over regulation of an industry. Further, CSR policy functions as a built-in, self-regulating mechanism whereby a business monitors and ensures its active compliance with the spirit of the law, ethical standards, and international regulations.

Whether through court decisions, regulations, or legislation, companies and industries can be forced into social and environmentally responsible practices. They are also worried about possible legislation that would penalize previous behavior and increase future litigation and risk to business. Current EPA regulations monitor impact from air, water and land emissions.

Reason #6: Overzealous Marketers[3]. “Greenwashing” is recognized as the “yellow journalism” of marketing. It makes claims about a product or company that cannot be substantiated by actual business or environmental actions or records involving the protection of community, habitat or the entire planet. Overzealous marketers are essentially disingenuous storytellers who are not practicing social responsibility and not transparent. However, prudent leadership caught in “liar, liar, pants on fire” scenario may be compelled to rectify that behavior and improve their brand image through active Sustainability practices.

Reason #7: Third Party Intervention. A financial institution that has supported the business may seek improvements in the business performance to reduce a potential risk to their investment. This may prompt the business leaders to take improvement actions that were previously alien to satisfy the institution and reduce the risk to their own assets that may be held as a guarantee against the investment[4].

Reason #8:  Sales Decline. There may be a serious decline in sales. Competition, new technologies, a failure to meet the customer needs and expectations, a history of poor product development and introduction or poor marketing may all be contributory factors in reduced sales and be the catalyst for the business owner to change the approach to the business development[5].

Reason #9: Takeover. The business is acquired and the policies and practices of the acquiring business are adopted and introduce a proactive approach to the business. This may follow the appointment of new executive directors[6].

Reason #10: Lack of Internal Skills. The dearth of management skills within the business may trigger the appointment of an external senior executive who brings new methodologies, planning and enterprise to the business[7].

Reason #11:  Family Business ‘Turmoil’. The autocratic control of an owner may at times only be changed through the realization that permanent family divisions are undesirable. It may well be the opportunity for perhaps the ‘university educated next generation of family’ to demonstrate their abilities in setting and achieving sustainable growth strategies and managing the culture change[8].

Reason #12: Where’s The Beef? This a true “loss of face” predicament when your executives have promoted that the company meets or exceeds compliance to Sustainability principles and standards, but either have not fully implemented checks and balance, not completely institutionalized all employees, have not tethered executive incentives to behavior or do not hold Suppliers to the same standards. The most obvious example is British Petroleum [BP]. BP had engage its entire enterprise and committed to Sustainability for years. It was often highlighted as an example of making a carbon based industry leader into a paragon of Sustainability virtue. However, in 2010, that lofty status was dethroned when BP created the worst environmental disaster in the Gulf of Mexico.

Sustainability is the holistic business model for the 21st century. From a business perspective, it is a long-term strategy that eliminates waste, both externally and internally, while supporting the survivability and transformation of the enterprise. The future is our’s to create now.

Footnotes:
[1] Epstein-Reeves, James; The Six Reasons Why Companies Actually Wind Up Embracing CSR,  Forbes,  The CSR Blog – Corporate Social Responsibility  10/17/2012
[2] Epstein-Reeves, James; Ibid.
[3] Epstein-Reeves, James; Op. cit.
[4] Willetts, David; DAW Consulting, UK; Retrieved; 12 Aug 2012
[5] Willetts, David; Ibid.
[6] Willetts, David; Op. cit.
[7] Willetts, David; Op. cit.
[8] Willetts, David; Op. cit.

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Sustainability “Megaforces” Impact on Business Will Accelerate – Repost by KPMG

This was a published press release by KPMG, and outlines the ten megaforces which will shape the commercial landscape for the next 20 years. Articles, reposts and videos, in this category, will relate to current and possible future impact of these ten megaforces.

The KPMG study, Expect the Unexpected: Building Business Value in a Changing World, explores issues such as climate change, energy and fuel volatility, water availability and cost and resource availability, as well as population growth spawning new urban centers. The analysis examines how these global forces may impact business and industry, calculates the environmental costs to business, and calls for business and policymakers to work more closely to mitigate future business risk and act on opportunities.
Michael Andrew, Chairman of KPMG International, said: “We are living in a resource-constrained world. The rapid growth of developing markets, climate change, and issues of energy and water security are among the forces that will exert tremendous pressure on both business and society.”
“We know that governments alone cannot address these challenges. Business must take a leadership role in the development of solutions that will help to create a more sustainable future. By leveraging its ability to enhance processes, create efficiencies, manage risk, and drive innovation, business will contribute to society and long-term economic growth.”
The KPMG research finds that the external environmental costs, which today are often not shown on financial statements**, of 11 key industry sectors jumped 50 percent from US$566 to US$846 billion in 8 years (2002 to 2010), averaging a doubling of these costs every 14 years.

The 10 global sustainability megaforces that may impact business over the next two decades are:

1. Climate Change: This may be the one global megaforce that directly impacts all others. Predictions of annual output losses from climate change range between 1 percent per year, if strong and early action is taken, to as much as 5 percent a year–if policymakers fail to act.
2. Energy & Fuel: fossil fuel markets are likely to become more volatile and unpredictable because of higher global energy demand; changes in the geographical pattern of consumption; supply and production uncertainties and increasing regulatory interventions related to climate change.
3. Material Resource Scarcity: as developing countries industrialize rapidly, global demand for material resources is predicted to increase dramatically. Business is likely to face increasing trade restrictions and intense global competition for a wide range of material resources that become less easily available. Scarcity also creates opportunities to develop substitute materials or to recover materials from waste.
4. Water Scarcity: it is predicted that by 2030, the global demand for freshwater will exceed supply by 40 percent. Businesses may be vulnerable to water shortages, declines in water quality, water price volatility, and to reputational challenges.
5. Population Growth: The world population is expected to grow to 8.4 billion by 2032. This will place intense pressures on ecosystems and the supply of natural resources such as food, water, energy and materials. While this is a threat for business, there are also opportunities to grow commerce and create jobs, and to innovate to address the needs of growing populations for agriculture, sanitation, education, technology, finance, and healthcare.
6. Wealth: the global middle class (defined by the OECD as individuals with disposable income of between US$10 and US$100 per capita per day) is predicted to grow 172 percent between 2010 and 2030. The challenge for businesses is to serve this new middle class market at a time when resources are likely to be scarcer and more price volatile. The advantages many companies experienced in the last two decades from “cheap labor” in developing nations are likely to be eroded by the growth and power of the global middle class.
7. Urbanization: in 2009, for the first time ever, more people lived in cities than in the countryside. By 2030 all developing regions including Asia and Africa are expected to have the majority of their inhabitants living in urban areas; virtually all Population Growth over the next 30 years will be in cities. These cities will require extensive improvements in infrastructure including construction, water and sanitation, electricity, waste, transport, health, public safety and internet and cell phone connectivity.
8. Food Security: in the next two decades the global food production system will come under increasing pressure from megaforces including Population Growth, Water Scarcity and Deforestation. Global food prices are predicted to rise 70 to 90 percent by 2030. In water-scarce regions, agricultural producers are likely to have to compete for supplies with other water-intensive industries such as electric utilities and mining, and with consumers. Intervention will be required to reverse growing localized food shortages (the number of chronically under-nourished people rose from 842 million during the late 1990s to over one billion in 2009).
9. Ecosystem Decline: historically, the main business risk of declining biodiversity and ecosystem services has been to corporate reputations. However, as global ecosystems show increasing signs of breakdown and stress, more companies are realizing how dependent their operations are on the critical services these ecosystems provide. The decline in ecosystems is making natural resources scarcer, more expensive and less diverse; increasing the costs of water and escalating the damage caused by invasive species to sectors including agriculture, fishing, food and beverages, pharmaceuticals and tourism.
10. Deforestation: Forests are big business – wood products contributed $100 billion per year to the global economy from 2003 to 2007 and the value of non-wood forest products, mostly food, was estimated at about US$18.5 billion in 2005. Yet the OECD projects that forest areas will decline globally by 13 percent from 2005 to 2030, mostly in South Asia and Africa. The timber industry and downstream industries such as pulp and paper are vulnerable to potential regulation to slow or reverse deforestation. Companies may also find themselves under increasing pressure from customers to prove that their products are sustainable through the use of certification standards. Business opportunities may arise through the development of market mechanisms and economic incentives to reduce the rate of deforestation.

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Press Release, KPMG, Sustainability “Megaforces” Impact on Business Will Accelerate, Finds KPMG, 14 Feb 2012; Retrieved: 14 Feb 2012

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