Corporate Sustainability: Understanding and Seizing the Strategic Opportunity by Università Bocconi (Summary)

Maurizio Zollo, Carmelo Cennamo, Kerstin Neumann (2013).

Sustainability & Strategy

• The core idea of sustainability is “. . . the specification of
  a set of actions to be taken by present persons that will not diminish the prospects of future persons to enjoy levels of consumption, wealth, utility, or welfare comparable to those enjoyed by present persons” (Bromley, 2008).
• The “… depth [of a change initiative] describes the degree to which the change effort aims to reach the most subtle, tacit and fundamental elements of the firm, such as the shared purpose, rather than limiting its ambitions to more superficial elements such as structural arrangements (e.g. the creation of a sustainability department) or symbolic artifacts (e.g., sustainability reports).”
• Two challenges in the transition to sustainable enterprise models:
  1. Integrating sustainability initiatives with their fundamental business plans (This is perceived as extremely risky, complex and uncertain by companies. )
  2. Shift in mindset of managers (sustainability-oriented mindset) in how they think about their own role and the role of the organisation
• Studies have shown that responsible firms benefit by:
  1. Better risk management
  2. Gain intangible benefits through an increase in…