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Lecture notes of 17 pages for the course ib 2 at HHS (All class notes)

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CSR is a concept whereby companies integrate social and
environmental concerns in their business operations and in their
interaction with their stakeholders on voluntary basis



Principles of CSR:

a) Sustainability Society must use no more resources than can be
regenerated
b) Accountability Action taken by organisation affects the external
environment and is ready to assume responsibility
c) Transparency External impact of the action (taken by the
organisation) can be determined, and relevant facts are accessible to
public (not disguised)



CSR Strategy tools

Triple Bottom line strategy (3P’s)
1.People (Society)
2.Planet (Environment)
3.Profit/Prosperity (economics)

3 P's strategy is the high-level approach of businesses to deal with (or
manage) CSR issues.



•Sustainable Development Goals -•Targets


How companies form strategy and execute?
Level 1. Sustainability of complete company often contradicting and
sustainability as an add-on

Level 2. Integrating sustainability into corporate strategy does not
change already existing strategies

Level 3. As determinant of change and central to vision of company

,Background to Circular economy

Started with the Cradle2Cradle (C2C) philosophy (McDonough &
Braungart) which:

1.Defines two distinct material loops: biological and technical
2.When these are entirely separated products and materials can be
upcycled and waste becomes food.
3.This is regarded as eco-effectiveness opposed to eco-efficiency


1.Eliminate waste and pollution
Design products that eliminate waste and pollution

2.Circulate products and materials (at their highest value)
This means keeping materials in use, either as a product or,
when that can no longer be used, as components or raw materials.

3.Regenerate nature
Support natural processes and leave more room for nature to thrive


Effectiveness technologies also refer to business model innovation

Economic innovation includes emission trading and putting a price
on CO 2

Technological innovation includes efficiency, substitution,
effectiveness and mitigation innovations
Coca Cola – water stewardship
Heineken – water efficiency
Bioplastics, alternative energy and mobility
Green roofs etc


Decoupling is removing the linear relation between economic growth
(GDP) and (virgin) material use obtained via abstraction

Business model (BM) – a design or architecture of the value creation,
delivery, and capture mechanisms

, Business model innovation (BMI) – changing (by creating,
diversifying, acquiring or transforming) BM as a response to internal
and external incentives

Circular business models (CBM) – business models can be circular
to varies degrees (downstream, upstream of fully)


Circular business models organized in the Value Hill


Uphill – groups companies operating with business models focused on
producing products that aim for long term value retention by circular
design

Tophill – groups companies operating with business models focused
on optimal use improving the usage and product productivity

Downhill – companies that operate according to business models
focused on value recovery by recapturing the value after (1 ) user life
st


phase or post-use

Network organization – companies focused on money, materials and
information flow supporting uphill, tophill and downhill




What is the Company communicating?
•Annual Reports

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