Cambridge Module 2

Businesses can gain long-term advantages by understanding such shifts and the opportunities they present. In past crises, companies that invested in innovation delivered superior growth and performance postcrisis. Organizations that maintained their innovation focus through the 2009 financial crisis, for example, emerged stronger, outperforming the market average by more than 30 percent and continuing to deliver accelerated growth over the subsequent three to five years.

A S Leader is someone who inspires and supports actions towards a better world.

Context:

• External
  • Ecol, econ, polit, cult, community
• Internal
  • Sector, industry, org reach & culture, governance, leadership role

Individual characteristics

• Traits
  • caring, morally driven, systemic, enquiring, self-aware, couragious
• Styles
  • inclusive, vision, creative, ...
• Skills

• mge complexity, communicate vision, exerc. judgement, challenge & innovate, LT

• Knowledge
  • global challenges/dilemma, interdisciplinary connection, ...

Leadership Action

• Internal (decisions, strategy, incentives, accountability, learning & inn.
• External (partnership, S services and products, S awareness, Transparency

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Universal problem = local pollution of a lake can happen everywhere, but costs/impact felt locally and solved locally

Global problem = global impacts (pandemic) which can only be solved through international collaboration.

Direct Control

• Leadership for S
• Employment and operational practices
• Business Model and strategy
• Stakeholder engagement
• Brand & reputation
• Organisational culture

Wider System

• Government policy and regulation
• International agreements and institutions
• Role of business in society

Shared

• Design, technology and innovation
• value chains
• changing consumer behaviour
• Collaboration and partnerships

A fundamental challenge in addressing environmental and social issues is the responsible management of shared resource systems, where the self-interested actions of one individual, organisation or country can be in direct conflict with the long-term interests of a larger group or society. This is called “tragedy of the commons.

Examples: Tragedy of the commons

1. Over-exploitation of fishing stocks: Quotas on fishing are important to ensure the sustainability of fish stocks, and, as such, are in the long-term interest of the commercial fishing industry as a whole. However, the short-term interests of each individual trawler is to maximise catch.  

1. Climate change: One company or country’s investments to minimise its greenhouse gas (GHG) emissions may have a positive global effect, but these benefits are shared equally with countries or companies that do not minimise GHG emissions. 

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• Dec. 2019, EC presented European Green Deal, = make EU's economy sustainable. All sectors. Roadmap to climate neutrality by 2050 by implementation of European Climate Law. Also Final Circular Economy Package
• Carbon Neutrality Coalition by 2050 (17 countries) in line with Paris Agreement
• Cllimate Ambition Allliance, led by Chile and UK for net-zero targes by 2050 (countries, cities, companies and investors)
• 2018 Renewable energy targets adopted by 169 countreis
• Carbon Emission Cap  of China's 14th Year Plan for 2021-25 (cap and trade programme ... not too successful yet)
• India's Goal of having 40% non-fossil fuel by 2030