class 2: Environmental Issues and Business Model Innovation Summary

Environmental Issues and Business Model Innovation

  • Sustainability Accounting: Measures financial (profit margins, revenue) and sustainability (ESG metrics) performance.

  • Decision-Making: Traditional accounting focuses on financial data; sustainability accounting integrates environmental and social implications into strategy.

  • Resource Allocation: Sustainability examines resources with a focus on renewable options.

  • Risk Management: Traditional identifies financial risks; sustainability addresses environmental and social risks.

  • Value Creation: Sustainability expands value beyond finance to social/environmental impacts.

Stakeholder Definitions

  • Shareholder: Owner of a company's shares; voting rights vary by share type.

  • Stakeholder: Anyone interested in a company; includes employees, customers, suppliers, and communities.

Managerial Views on Corporate Sustainability

  • Reactionary: Compliance with legal requirements.

  • Passive: Adaptation to stakeholder pressures.

  • Active: Engagement in sustainability as a quality pursuit.

  • Proactive: Contributions to addressing sustainability challenges (e.g., circular economy).

Innovation and Corporate Sustainability

  • Innovation in Processes: Enhances resource efficiency and reduces ecological impact.

  • Innovation in Products: Offers customers sustainable product capabilities (e.g., modular products).

  • Innovation in Services: Shifts to product-service systems, enhancing customer-supplier interaction.

Business Models Conceptualization

  • Definition: Describes how organizations create, deliver, and capture value based on a value proposition.

  • Impacts resource usage and social employment practices.

Sustainability in Business Models

  • Description: Analyzes how companies create and deliver sustainable value while maintaining natural, social, and economic capital.

Organizational Boundaries

  • Determines financial control and emissions accountability.

  • Primary Approaches: Control, Operational Control, Financial Control, and Equity Share.

Value Mapping Tool and Model Canvases

  • Value Mapping Tool: Engages stakeholders in value proposition design across multiple value forms.

  • Flourishing Business Canvas: Positions business models within ecological and social contexts.

  • Triple-Layered Business Model Canvas: Integrates environmental and stakeholder dimensions into business model innovation.

Bottom Line and Sustainability Metrics

  • Triple Bottom Line: Focuses on People (social equity), Planet (environmental stewardship), and Profit (economic viability).