Applications at a glance ix
Acknowledgements xi
CHAPTER 1 Sustainability, economy and society 1
Evil corporations, green celebrities and sustainability inpopular culture 2
Introduction 2
Defining sustainability 3
Quality of life, consumption, sustainability and forms of capital 5
Weak versus strong approaches to sustainability 8
Core principles of sustainability 8
A brief history of sustainability 9
SPOTLIGHT
Cadbury Fairtrade chocolate 13
Current forces for business sustainability 14
Idea generators and opinion leaders 15
Rulemakers and watchdogs 15
Business partners and competitors 16
Investors and risk assessors 16
Consumers and community 17
SPOTLIGHT
The MBA Oath 18
The environmental, economic and social pillars of sustainability 19
Environmental dimensions 21
Economic dimensions 22
Social dimensions 23
Corporate governance: a fourth sustainability dimension? 25
SPOTLIGHT
McWilliams Wines 25
Why sustainability is good business 26
Overview of this book 27
Summary 29
Key terms 30
Review questions 30
Discussion questions 30
Case study 31
Notes 32
CHAPTER 2 Sustainability, stakeholders and Sustainability and accountability at NBAD 36
the nature of the rm 35
Introduction 36
Stakeholder theory and practice 38
Stakeholders and sustainability 39
Stakeholder salience 41
Stakeholder management strategies 43
SPOTLIGHT
Sustainability at Pacific Brands 45
Sustainability in internal and external business contexts 46
Factors influencing implementation of sustainability 46
Dynamic influences of government and civil society sectors 49
Business associations and industry groups 53
SPOTLIGHT
Conservation Volunteers — ‘connecting people with our environment’ 54
Sustainability, sustainable development and paradigm change 55
Sustainability through accountability 56
SPOTLIGHT
Increasing energy costs for Australian business 58
Frameworks for supporting business sustainability 59
Government frameworks 59
Civil society frameworks 59
International frameworks 60
Sustainability business indexes 60
Summary 61
Key terms 62
Review questions 62
Discussion questions 62
Case study 62
Notes 64
CHAPTER 3 Business ethics, corporate governance and corporate social responsibility 67
The myth of the amazing Nepalese porter 68
Introduction 68
SPOTLIGHT
The corporation: bad apples, psychopaths or civic citizens? 70
Business ethics 71
Changing conceptions of business: from shareholders to stakeholders 71
Philosophical approaches to ethics 72
Ethical decisions 74
Building an ethical business culture 75
Ethics codes 76
SPOTLIGHT
James Hardie: lessons in avoiding responsibility 77
Corporate governance 78
Principles of good corporate governance 79
The importance of partnerships 83
The importance of sound risk assessment and management 84
SPOTLIGHT
ISO 26000: guidelines for social responsibility for business 86
Corporate social responsibility (CSR) 87
Definitions and dimensions of CSR 88
Types of CSR actions 89
Summary 91
Key terms 91
Review questions 92
Discussion questions 92
Case study 92
Notes 94
CHAPTER 4 The economics of sustainable development 99
Sustainable development and climate change 100
Introduction 100
What is sustainable development? 101
The mainstream view of the economy: the economy as an isolated system 102
The economy as a subsystem of the natural environment 103
Ecological and economic limits to growth 105
The linear throughput model 105
Ecological sustainability: environmental rules of thumb 107
Optimal and maximum sustainable scale of the economy 108
Sustainable development indicators 109
What is gross domestic product? 110
An indicator of economic welfare: the genuine progress indicator 112
An indicator of ecological sustainability: ecological footprint versus biocapacity 115
SPOTLIGHT
Sustainable development in China: myth or reality? 116
Sustainable development: policy goals and instruments 117
Three major policy goals to achieve sustainable development 118
Three major policy instruments to achieve sustainable development 120
Cap-auction-trade systems to facilitate sustainable development 120
SPOTLIGHT
Eco-taxes versus cap-auction-trade systems: which is best? 122
Sustainable development: potential business implications 123
SPOTLIGHT
How a sustainable production philosophy can increase the profits of a business and benefit society 125
Summary 127
Key terms 128
Review questions 129
Discussion questions 129
Case study 129
Notes 131
CHAPTER 5 Sustainable business models 133
Ecostore 134
Introduction 134
Industrial ecology 136
Industrial ecosystems 136
SPOTLIGHT
An industrial ecosystem in China 138
Barriers to forming industrial ecosystems 140
Biomimicry 141
Biomimetic design 141
Natural capitalism 143
Critique of natural capitalism 146
Cradle to cradle 147
SPOTLIGHT
City Farm 149
The Natural Step 150
SPOTLIGHT
Rocky Mountain Flatbread Company 151
Model of a sustainable business organisation 153
The Natural Edge sustainability model 154
Summary 156
Key terms 157
Review questions 157
Discussion questions 157
Case study 157
Notes 159
CHAPTER 6 Carbon management 161
Turning waste into energy 162
Introduction 162
Carbon emissions in Australia 163
A systematic approach to carbon management 164
Carbon footprint analysis 165
SPOTLIGHT
Australian small business carbon footprint 169
Climate risk and opportunities 170
Energy efficiency 171
Renewable energy 172
SPOTLIGHT
AGL 173
SPOTLIGHT
Sustainable Dance Club 175
Emissions trading 176
Carbon offsets 177
SPOTLIGHT
Coopers Brewery 179
Sustainable climate management 179
Summary 182
Key terms 182
Review questions 182
Discussion questions 182
Case study 183
Notes 184
CHAPTER 7 Strategy 187
The Body Shop 188
Introduction 188
Defining strategy 189
A sustainable world and sustainable business 190
A sustainable world 190
Sustainable business 191
The four levels of strategy 194
Enterprise strategy 194
Corporate strategy 195
SPOTLIGHT
Better Place and electric cars in Israel 197
Business strategy 198
SPOTLIGHT
McDonald’s and waste 198
Functional strategy 199
SPOTLIGHT
Marketing strategies: greenwash, deep greenwash, and bluewash 200
The phases model 201
Compliance strategy 202
Efficiency strategy 207
SPOTLIGHT
3M and the Pollution Prevention Pays (3P) program 210
Strategic proactivity strategy 210
Sustaining corporation strategy 212
Summary 214
Key terms 215
Review questions 215
Discussion questions 215
Case study 216
Notes 217
CHAPTER 8 Sustainability accounting Sustainability data wanted 220
Introduction 220
Financial accounting and reporting 221
Environmental accounting
2Reasons to undertake environmental accounting
Environmental reporting 226
SPOTLIGHT
Corporate reporting breakthrough with initial results from Puma’s environmental profit and loss account 229
Environmental management accounting 229
Physical information 23
SPOTLIGHT
Wesfarmers sustainability scorecard 231
Monetary information 232
Linking physical and monetary information under
EMA 233
Sustainability accounting and the Global RepoInitiative 235
Linkage between sustainability accounting reporting 236
Global Reporting Initiative (GRI) 238
SPOTLIGHT
BHP Billiton sustainability reporting 2
Summary 244
Key terms 244
Review questions 244
Discussion questions 245
Case study 245
Notes 246
CHAPTER 9 Finance 249
Oil spill damages BP’s share price 250
Introduction 250
The development of the sustainable finance market 251
United Nations Principles for Responsible Investment 251
Global Reporting Initiative 251
Carbon Disclosure Project 252
Equator Principles 252
Market exchanges and legislation 252
SPOTLIGHT
Westpac 253
Measuring sustainability 253
Some providers of sustainability information 254
SPOTLIGHT
Sustainable Investment Research Institute (SIRIS) 255
Sustainability factors in valuation andinvestment 256
A review of some relevant concepts 256
Implications for sustainability 258
The relationship between sustainability, risk and returns 259
Why bother with sustainability? 261
Socially responsible investment 261
How socially responsible investing works 262
SPOTLIGHT
Socially responsible superannuation 264
The size of the socially responsible investment market 265
Returns to socially responsible investments 265
Accusations of ‘greenwashing’ 265
Summary 267
Key terms 267
Review questions 268
Discussion questions 268
Case study 268
Notes 269
CHAPTER 10 Marketing and sustainability 273
How many planets does it take to support your lifestyle? 274
Introduction 274
Marketing basics 276
The four As of sustainable consumer behaviour 277
SPOTLIGHT
Sustainable tourism 279
Assessing market demand for sustainable goods and services 279
Understanding consumer demand for sustainable products and businesses 280
and reporting 219
Barriers to sustainable consumption 282
Eco-labelling and greenwashing 285
Emerging and alternative markets for sustainability 286
SPOTLIGHT
Toyota Prius 290
Sustainable marketing strategy and practice 291
Sustainability challenges for traditional marketing 291
Core features of sustainability marketing strategy 292
SPOTLIGHT
Sustainability marketing at Henkel 293
Elements of the sustainability marketing mix 294
SPOTLIGHT
Ergon Energy’s ‘10% less’ campaign 298
Principles of effective social marketing 298
Understanding stakeholders 300
Effective persuasive communication 302
Solutions that cut costs and support convenience 305
Summary 307
Key terms 308
Review questions 308
Discussion questions 309
Case study 309
Notes 311
CHAPTER 11 Sustainable production 315
Changing responsibilities of producers 316
Introduction 316
Basic environmental responsibilities of producers 318
Compliance with environmental laws 319
Self-regulation 321
Expectations of continual improvement 321
Environmental reporting 323
SPOTLIGHT
Environmental management systems at Tyco Water 324
Eco-efficiency: doing more with less 325
The theory and application of eco-efficiency 325
Implementing eco-efficiency 326
Examples of eco-efficiency opportunities and clean technology 330
SPOTLIGHT
Eco-efficiency for the Australian dairy industry 332
Life cycle perspectives on production 333
Life cycle assessment 333
Extended producer responsibility 335
Eco-redesign 336
SPOTLIGHT
Fuji Xerox: at the forefront of sustainable production 336
Summary 338
Key terms 338
Review questions 338
Discussion questions 339
Case study 339
Notes 341
CHAPTER 12 Human resources and sustainability 343
The Good Guys: sustainability leadership at work 344
Introduction 344
The human foundations of the sustainable organisation 345
Setting the foundations for sustainability success 349
Developing the business case for sustainability 351
Establish a strategic orientation to sustainability 352
SPOTLIGHT
Qprint: even small organisations can do it 353
Organisational change and sustainable business 354
Utilise change capabilities 354
SPOTLIGHT
Yarra Valley Water: building a sustainable future 355
The internal dimension of sustainable business 357
Developing a sustainability culture 357
SPOTLIGHT
Leadership for sustainability 361
Summary 363
Key terms 363
Review questions 363
Discussion questions 364
Case study 364
Notes 365
CHAPTER 13 Global environment 367
The global environment — the biggest sustainability challenge 368
Introduction 368
The global environment and sustainability 369
Mapping approaches to environmental sustainability 370
Sustainability and the global environment today 372
The ecological footprint: a tool for understanding the health of the global environment 373
SPOTLIGHT
Peak food 375
Climate change and carbon emissions 375
The science of climate change 376
Climate change impacts 378
Responding to climate change 379
SPOTLIGHT
Australia and New Zealand 382
Renewable energy businesses — opportunities in the world 384
SPOTLIGHT
Overview of carbon-reduction schemes around Biodiversity 385
What does biodiversity do for us? 386
Biodiversity loss 386
Key strategies to protect biodiversity 388
SPOTLIGHT
Water sanitation in Bangladesh 390
Summary 392
Key terms 392
Review questions 392
Discussion questions 393
Case study 393
Notes 395
CHAPTER 14 Global development 397
If the world were a village of 100 people . . . 398
Introduction 398
Effective global governance for sustainable development 400
The evolution of development approaches 402
The role of MNCs in development 403
SPOTLIGHT
The Forest Stewardship Council: developing new models of global governance 404
Approaches to global governance 406
New models of global governance 407
SPOTLIGHT
Shades of green: cultural differences in attitudes towards sustainable behaviour 408
Culture and sustainability 409
Defining culture 410
Culture and sustainable business practice 410
Implications for business sustainability 415
SPOTLIGHT
10 000 Tuvaluans 415
Sustainability on the periphery 416
Defining the periphery 416
Barriers to sustainable outcomes for peripheral regions 417
Future options for sustainable development 419
Summary 420
Key terms 420
Review questions 420
Discussion questions 421
Case study 421
Notes 423
CHAPTER 15 Social business 427
Westpac in Cape York 428
Introduction 429
A brief history of social business 430
SPOTLIGHT
Grameen Danone Foods 433
Social entrepreneurship 434
Describing the social entrepreneur 434
Evaluating success of social business 435
Microfinance 436
Hybrid social business models 438
SPOTLIGHT
The Song Room 440
The Fairtrade system 441
SPOTLIGHT
Fairtrade organic cacao in Belize 444
The Bottom of Pyramid model 445
SPOTLIGHT
Mobile phones in Africa 447
Social business resources 447
Summary 449
Key terms 449
Review questions 449
Discussion questions 450
Case study 450
Notes 451
Glossary 453
Index 461
