2) Fundamenetal Business & Governance Principles & Issues

What are ethics?

Principles of right & wrong that guide decisions & behaviour

Helps decide not just “can we do this” but “should we do this”

Explain the role of ethics in:

• Individual decision making (remember: Conscience Values Avoid Scandals)

• Organisational decision making (remember: Good Strategy Prevents Chaos)

Individual - Ethics influence choices and professional behaviour through:

1. Personal conduct

2. Personal values

3. Accountability

4. Speaking up

Organisational - Ethics guide responsible decisions which affect employees/stakeholders/environment. This influences:

1. Government/leadership

2. Stakeholder decisions

3. Policies/operations

4. Compliance

What are the 8 Key Ethical Principles?

1. Accountability (owning what you do)

2. Equality

3. Inclusivity

4. Integrity (doing what is right)

5. Stewardship (looking after resources)

6. Transparency

7. Cultural content (understanding different perspectives)

8. Engagement

What is:

• Corporate Responsibility

• Corporate Sustainability

• Sustainable Business

Corporate Responsibility - What impacts are we responsible for (recognising impact)

Corporate Sustainability - How do sustainability issues affect long-term viability & how do we respond (responding to impact)

Sustainable Business - How can sustainability be built into the business operation & create value (embedding sustainability into strategy)

Why is Corporate Responsibility important?

Remember: Responsible Turtles Avoid Emissions

• Reduces negative impacts & risk

• Trust & reputation

• Accountability

• Ethical conduct

Why is Corporate Sustainability important?

Remember: I Recycle Really Vigorously

• Encourage innovation

• Improves resilience

• Manages resources/risk

• Protects long term viability

Why is a Sustainable Business important?

Remember: Responsible Companies Survive

Makes sustainability part of creating value (not an add-on)

Supports:

• Resilience

• Competitiveness

• Long-term success

Explain the difference between balancing and resolving interactions between social/enviro/eco issues

• Balance = Manage/accept trade off

• Resolve = Find a solution that removes the trade-off

Resolving doesn’t require maximising all 3 pillars - it’s about finding a complete solution rather than accepting damage in one as another benefits.

What is the concept of a “safe operating space” for humanity?

Visual framework for sustainable development - balances human wellbeing & planetary boundaries

Safe space between social foundation (inner boundary) and ecological ceiling (outer boundary) - Raworth

• Planetary boundary = ecological ceiling = earth has environmental limits

• Social needs also need considering

• Doughnut = Meet social needs without exceeding environmental limits

• Shifts economic goal from endless growth to thriving within a safe space for humanity

Name 4 sustainable business models

1. Doughnut Economics

2. Green Economy

3. Blue Economy

4. Circular Economy

What is the core idea of Doughnut Economics?
How does it support a sustainable economy?

Core idea: Meets human needs within social foundations & planetary boundaries

Encourages economic activity that is socially just & environmentally safe (rather than perusing economic growth regardless of impact)

What is the core idea of a Green Economy?
How does it support a sustainable economy?

Core idea: Improve human-wellbeing & economic development while reducing environmental risks & resource pressures.

Encourages:

• Renewable energy

• Low-carbon technology

• Resource efficiency

• Green infrastructure/jobs

• Sustainable investment

What is the core idea of a Blue Economy?

How does it support a sustainable economy?

Core idea: sustainable use of oceans/marine resources for economic/social benefits while maintaining ecosystem health.

Supports the following whilst protecting marine natural capita:

• Sustainable fisheries/aquaculture

• Marine renewables

• Tourism

What is the core idea of a Circular Economy?

How does it support a sustainable economy?

Core idea: Keeps products/materials in use & eliminates waste/resource loss.

Moves away from take-make-dispose through reducing, reusing, repairing, remanufacturing and recycling