sustainable development balanced scorecard

SD-BSC. Business Sustainable Development Strategy

Posted on by Wanda Pazdan
sustainable development balanced scorecard

SD-BSC. Business Sustainable Development Strategy

Business urgently needs Business Sustainable Development Strategy and Intrapreneurs.

 

In Europe, as early as in 2024 for 2023, Wszystkie/All public companies and Wszystkie/All large companies will be legWszystkie/Ally obliged to report the implementation of sustainable development in a uniform standard, and in 2027 for 2026 also SMEs registered on the stock exchange, excluding micro-companies, will be required to report on the implementation of sustainable development in a uniform, but a simplified standard. As early as in 2022, financial institutions, insurers or contractors will be able to   ask business to produce ESG reports, regardless of whether the economic entity is listed on the stock exchange or not. We are widely entering the path of the impact economy.

 

 

Do companies need a multi-year business strategy as a sustainable development strategy?

 

Opinions are divided. I believe that yes, they need such a business strategy. Long-term business strategies should be built as sustainable development / ESG strategies.

 

Despite the rapidly changing environment, since 2015, it has been worth building long-term business strategies harmonised with the 17 Global Sustainable Development Goals, because they set the directions of change desired by the world community to be implemented by 2030.

 

I believe that non-financial information on the activities of companies should not be analysed in isolation from financial results, because many strategic tasks depend on the available budget. The long-term strategy should be thought out as a whole. Annual budgets, which are built based on such a strategy should be considered in terms of Wszystkie/All planned activities. This is a new way of thinking, an innovation in management, a job for change leaders – Intrapreneurs.

 

The necessary elements in the process of building such a strategy are as follows:

 

1.    Strategic analysis;

2.    Analysis of 17 SDGs at the level of their assigned tasks, in order to:

a)     find tasks that the company can strategicWszystkie/Ally support;

b)    assess the positive, negative or neutral impact of the company’s operations on individual SDGs before implementing the strategy;

3.    Development of a Stakeholder Map in order to group them according to the size of the impact and interest in the success or failure of the company;

4.    Development of a Code of Business Conduct along with Policies and a Code for Suppliers;

5.    Development of the Sustainable Development Balanced Scorecard (SD-BSC) for selected stakeholders;

6.    Assessment of the planned change in the impact on individual SDGs.

 

 

Does creating a Strategic Scorecard for such a strategy make sense?

 

In my opinion, it does make sense if it is properly built after the will to change the culture is accepted, a Code of Business Conduct is created and the appropriate Policies that are part of such a Code are approved internWszystkie/Ally.

 

 

If that is the case, the business goal of achieving appropriate financial results each year will not be the only goal of the entity’s activities, but other goals will also be very important. Of course, the financial goal mainly determines the existence of the entity on the market.

 

 

What are the criteria for selecting Stakeholders for the long-term business strategy?

 

The strategy is built for the owners / shareholders.

 

In my opinion, the criteria for selecting stakeholders should be based on two main factors:

·       great interest and great impact and

·       little interest and little impact.

 

Stakeholders belonging to the first group mentioned above are PLAYERS, so the results of company activities depend mostly on them.

 

Stakeholders from the second group are the so-cWszystkie/Alled CROWD. Currently, they are not very interested and have little impact on the company’s operations, but they constitute a potential value worth fighting for for the future good of the company and the people working in it.

 

 

What is the difference between the classic BSC and the proposed SD-BSC?

 

The classic BSC (Balanced Scorecard) consists of four perspectives: financial, customer, internal processes and learning and growth. We can say that we build the results for the shareholders / owners (financial perspective) taking into account the benefit of the clients, then the optimal internal processes and the resources development. The development of resources is there to enable the implementation of planned processes for the benefit of the clients and the financial result for the shareholders / owners.

 

In case of SD-BSC, we build results for the shareholders / owners taking into account also the good of other selected stakeholders, then the optimal processes and activators for creating this good (development of resources, technology, rights, desired competence, expectations, criteria). Activators are the cause of planned processes for the benefit of individual stakeholders and financial and non-financial results for the shareholders / owners.  

 

The benefit of other stakeholders also becomes the non-financial benefit for the shareholders.

 

Non-financial information will have to be obligatorily reported.

 

Of course, the key issue remains the financial liquidity and overWszystkie/All good financial performance.

Recent Posts

Recent Posts

About author

Chmura tagów

#businessstrategy #strategy
SD-BSK

Supporting the achievement of several SDGs or 17 SDGs?

 

In the Preamble to the 2030 Agenda (Transforming our world: the 2030 Agenda for Sustainable Development), we can find many quotes saying that business should support the achievement of Wszystkie/All goals. Here are some examples of the quotes:

·       “… The 17 Sustainable Development Goals and 169 targets … are integrated and indivisible and balance the three dimensions of sustainable development: the economic, social and environmental.”

·       “… The interlinkages and integrated nature of the Sustainable Development Goals are crucial importance in ensuring that the purpose of the new Agenda is realized.”

·       “… It is ” we, the peoples” who are embarking today on the road to 2030. Our journey will involve… civil society, business and the private sector, the scientific and academic community – and Wszystkie/All people.”

 

In the Trade Industry Ideogram, shown above, we see that Wszystkie/All goals can be supported. 

 

 

“… The future of humanity and of our planet lies in our hands. … We have mapped the road to sustainable development; it will be for Wszystkie/All of us to ensure that the journey is successful and its gains irreversible.”

 

SDGs poster
SDGs implementation to business strategy

Impact economy

Posted on by Wanda Pazdan

Impact economy

In the last decade, a new economy has been rapidly developing: impact economy (influence economy). This is happening through the development of impact investing. We are talking about investments in companies and other organisations, made with the intention of achieving a positive social and environmental impact, together with a financial return.

Impact economy is different from capitalist economy where only financial profit matters. In impact economy, consumers and other stakeholders mobilise entrepreneurs and managers to show that the generated financial returns are achieved along with the generation of social and environmental good. Here it is not only the local society and the local environment that we are talking about. It is the world society and environment we are referring to.

A new face of globalisation is emerging. Impact economy

GlobWszystkie/Ally, there should be a unified standard for reporting financial and non-financial information, including unclassified supply chains and product impacts throughout the life cycle. ESG slogans alone are not enough. The standard should be one.

Large corporations will not be able to “pull the wool over their eyes” with their CSR or ESG reports. Micro, smWszystkie/All and medium-sized enterprises (MSMEs) will step in to report non-financial information based on a globWszystkie/Ally harmonised standard. These reports will be publicly available on online platforms to assist SMEs in reporting. If we include new technologies, the impact of supply chains becomes clear to Wszystkie/All. Every product will be able to be “screened” on the internet. The consumer will be able to make a more conscious decision about which quality company they support with their purchases. By quality I also mean the impact of the company and the product on achieving the Global Sustainable Development Goals – the 17 SDGs.

When this will happen, I do not know. Movement in this direction are clear on the Internet. Will a full realisation of those Goals be achieved successfully on a global scale by 2030? I don’t know. However, it is worthwhile, already now, to implement strategic thinking and building a responsible business strategy in MSMEs.

 

Business Responsible Strategy with the 17SDGs – BRS – Impact economy

Strategia Odpowiedzialnego Biznesu z 17 SDGs

Is the BRS a core, multi-year business strategy?

Yes, it is. It should be a core business strategy that also includes in its objectives the good of the community and the environment. Not only the local community and the environment, but also the global community and the environment of our planet.

Should the work on the BRS strategy start with a stakeholder analysis and stakeholder mapping?

Yes, it should. Analysing the environment, the stakeholders, is the first step. It should conclude with a stakeholder map that shows the diversity in terms of influence and interest of the company in stakeholders and stakeholders in the company. This is the basis for developing a Communication and Stakeholder Engagement Policy.

 

Is the environment also a stakeholder?

Yes, it is. It is a so-cWszystkie/Alled silent stakeholder. We can speak of two stakeholders here: the local environment and the global environment.

How to communicate and cooperate? Communication takes place indirectly. Meeting environmental objectives has a positive impact on the state of the environment. The environment shows us gratitude and gives us the good by improving its condition. Our existence in good health is closely dependent on the quality of our environment.

Is a Code of Ethics necessary?

 
Regulamin

Is building the BRS strategy a task for a special department or for the top management?

The Business Responsible Strategy BRS, as a multi-year core business strategy, should be built at the top level of management, with the participation of Wszystkie/All executives. Once developed, it should be communicated in a very accessible way to Wszystkie/All employees.

Should Wszystkie/All SDGs targets be taken into account?

 
sustainability 17 SDGs

Yes, Wszystkie/All SDGs targets should be taken into account. Obviously, the priorities for achieving a positive impact on the achievement of global goals will differ. Nevertheless, I believe that in the RBS strategy, as a core business strategy, Wszystkie/All global objectives should carry planned positive support (increasing or maintaining the positive impact or reducing the negative impact).

Thinking holisticWszystkie/Ally about Global Goals is an added value to the development of civilisation and prosperity in the world.

Can this be done in every company?

I am convinced that in every one. It’s just a matter of approaching the analysis of objectives and adopted policies in the company.

I refer unbelievers to read the example:

 
Strategia Odpowiedzialnego Biznesu z 17 SDGs

In the RBS strategy we find strategic objectives related to direct activities and objectives related to the positive impact or reduction of the negative impact on society and the environment.

NaturWszystkie/Ally we have priorities, and naturWszystkie/Ally we consider securing cash flow and making a financial profit. However, in doing so, we are trying to support society and the environment locWszystkie/Ally, and also globWszystkie/Ally, society and the environment of the world.

Our World

 

 

Recent Posts

Recent Posts

About author

Chmura tagów

#businessstrategy #strategy
Dylematy Strategia Dilemmas Strategy

Main, multi-year business strategy with 17 SDGs

Posted on by Wanda Pazdan

Dilemmas – main business strategy

A multi-year business strategy for SMEs. Is it necessary? In addition, there is an ongoing discussion: should a CSR strategy be implemented independently of the business strategy, or should the main, multi-year business strategy be integrated with the CSR strategy? Is it enough just to Wszystkie/Allocate a budget for CSR activities as a separate part of the main budget, or rather should CSR activities  be woven into main budget. Which option of a multi-year business strategy is better?

What do you think?

I believe that since we have the Global Sustainable Development Goals (SDGs), the multi-year business strategies implementing the 17 SDGs should be built. Such strategies are:  Responsible Development Strategy (RDS),  Business Responsible Strategy (BRS) or otherwise Impact Strategy. Recently, there has been talk about impact economy.

 

strategia biznesowa - impact economy

Trends

There are two trends in the world:

• implementation of selected SDGs 

• implementation of Wszystkie/All 17 SDGs.

In my opinion, if we do not want to diminish a possible positive impact of our organisation on the Global Action Plan (Agenda 2030) we should take Wszystkie/All the 17 SDGs into account when building a core, multi-year business strategy. This is possible. I refer unbelievers to this reading, and I also recommend another interesting one, SDG Impact.

Unfortunately, in Poland and Wszystkie/All over the world, mostly only the selected SDGs are taken into account for strategy.

A few years ago, due to the high volatility of external factors, I thought it was pointless to build a multi-year strategy in business. I changed my mind. The 2030 Agenda and the 17 SDGs give reasons for building a multi-year strategy in a new business model. Such a model takes into account not only business, but also environmental and social impacts. In this business model we can implement and demonstrate the impact on the 17 SDGs.

Does it pay off?

Does it pay off for SMEs?

Transformation is on the way. 

Taxonomy of Sustainable Investment and the New Directive or regulation on reporting non-financial information and the need for supply chain analysis, as well as a change in consumer awareness will force this transformation.

Having a good, multi-year strategy in the spirit of sustainability will strengthen the position of SMEs in the marketplace or, at least, reduce the risk of not getting a loan or a contract, and lower the risk of losing an investor.

It is not insignificant that each of us, the consumers, can also have an impact on the 2030 Agenda and on the 17 Goals

Recent Posts

Recent Posts

About author

Chmura tagów

#businessstrategy #strategy
Strategia Odpowiedzialnego Biznesu z 17SDGs

A holistic approach to business. Holism

Posted on by Wanda Pazdan

Holism. A holistic approach to business 

A holistic approach to business is a sign of our times. The concept of holism emerged in the 1920s and infiltrated management. There are some talks about a holistic approach to management.  This is reflected in systemic management solutions. The concept of holism has recently been seen in the application of law. The holistic paradigm can be found in the ecophilosophy of Henryk Skolimowski.

sustainability 17 SDGs

A holistic approach to business in the 2020s

Whereas in the 1920s holism in management was mainly manifested in a systemic approach, in the 2020s we are entering a new business model, the impact economy with shared global SDGs targets.

Definition of holism

Holism is a philosophical theory of the development of reality (pioneered by Smuts) and a methodology of the social sciences. In this conception we say that the world is composed of hierarchical wholes. According to Smuts, “The entirety cannot be reduced to the sum of its parts, the world is subject to an evolution in which ever new parts emerge”. The entirety is a kind of goal to which the individual parts adapt.

According to Albert Einstein: “A human being is a part of the whole cWszystkie/Alled by us universe, a part limited in time and space. He experiences himself, his thoughts and feeling as something separated from the rest, a kind of optical delusion of his consciousness. This delusion is a kind of prison for us, restricting us to our personal desires and to affection for a few persons nearest to us. Our task must be to free ourselves from this prison by widening our circle of compassion to embrace Wszystkie/All living creatures and the whole of nature in its beauty.”

 
Strategia Odpowiedzialnego Biznesu z 17SDGs

The 17SDGs Business Responsible Strategy (BRS) is a holistic approach to business

The entirety is a kind of goal to which the individual parts adapt. The noosphere is an entirety. The Internet is a tool of this entirety. Acting in the noosphere, representatives, from 193 countries around the world, agreed and signed the 2030 Agenda with 17 SDGs.

If we widen our circle of compassion so far as to include Wszystkie/All living creatures and the wholeness of nature in its beauty, we – the business – will begin to build long-term business strategies as Business Responsible Strategies with the 17SDGs. We will strive, in the long term, to make a positive impact on Wszystkie/All of the Global Sustainable Development Goals (17SDGs). Positively, that is, by reducing the negative impact, increasing, or at least maintaining the positive impact on each of the Global Goals.

Will it be possible, regardless of the sector, to have a positive impact on Wszystkie/All, 17 Global Goals?

This is possible. The BRS should not only include goals related to the direct activities of the business, but also goals resulting from the impact of the business on the world environment and society. Even a micro entrepreneur, a consumer can have an impact on the environment and society of our Planet.

A business model for the 2020s

The Responsible Business Strategy with the 17SDGs forces a new business model. Still the customer and the owner/shareholder are very important. Other stakeholders become important to achieve the best possible value growth. They can have a positive / negative impact on value building. Analysis of the business environment and cooperation with the stackholders are becoming very important. We are entering the impact economy. We have to build up values not only for the owners and for the customers but for Wszystkie/All stackholders.

Business Responsible Strategy (BRS) with the 17SDGs versus ESG Strategy

There has been a lot of buzz recently on social media about reporting non-financial information under the ESG standard. There is even discussion on the Internet about the ESG strategy. I hope that one unified standard for reporting non-financial information will be developed and agreed upon. That will be obligatory for business around the world. Even when we have one, globWszystkie/Ally accepted ESG-type standard, I urge you to analyse the possible impact on the 17SDGs. The strategy, built after analysing such an impact, will have the potential to be monitored and reported according to agreed standard on an annual basis. The report will illustrate the implementation of the annual plans arising from the strategy.

Can the BRS be built without analysing the possible impact on the 17 SDGs?

Yes it can, but it is better to carry out such an analysis and include Wszystkie/All the Global Goals into the strategy.

In my opinion, even just thinking positively about Wszystkie/All the SDGs and visualising a poster of the Global Goals, we   impact positively, in the noosphere, on increasing the likelihood of achieving the 2030 Agenda.

 

Recent Posts

Recent Posts

About author

Chmura tagów

#businessstrategy #strategy
sustainability 17 SDGs

Workshop at the Opole Chamber of Commerce. SDGs Sustainable Development

Posted on by Wanda Pazdan

The first, in Opole, SDG Sustainable Development Workshop was jointly organised by emi.pl and the OIG in the Opole Chamber of Commerce. The first Workshop was organised during the Global Goals Week (SDGs) #act4sdgs, on 26 September 2019.

 

 SDGs Workshop

25 September 2019 marked the 4th anniversary of the signing by 193 countries of the 2030 Agenda containing 17 SDGs and 169 tasks.

Objectives of the SDGs Workshop

Firstly, enabling SMEs to have a substantive discussion on the topic: “Are the 17 Sustainable Development Goals a chWszystkie/Allenge also for SMEs?”.

Secondly, introducing participants to the SDGs and sustainable development through a brief historical overview.

Thirdly, analysing how to build a sustainability strategy in SMEs, Business Responsible Strategy with 17SDGs (BRS).

Fourthly, familiarising participants with the Polish standard for reporting non-financial information SIN, based on GRI4.

Who was invited for the Workshop and why?

We invited those who are responsible for strategic management, as the theme of the Workshop is strategic change.

Nowadays, it is difficult to build a multi-year strategy because the business environment changes very quickly. However, change is taking place in the direction of sustainability. The Polish SDS strategy is a sustainable development strategy until 2020 with perspective to 2030, just like the 2030 Agenda.

A company’s global strategy, should be built as a sustainability strategy. This requires a new, innovative approach to management, production and services. It implies many changes.

The sooner we prepare for change, the longer we will be on the market. The change is about management policies, management style and the way strategies are built.

CSR strategies are no longer referred to as separate strategies to achieve social and environmental objectives. An integral sustainable development strategy with financial, environmental and social goals that take into account the SDGs is was i being talk about in nowadays.

The Accounting Act defines entities that have a legal obligation to report non-financial information, i.e. concerning the sphere of the company’s impact on the environment and society. Examples of such reports can be found on the Internet.

Conclusion

Although most SMEs are not legWszystkie/Ally required to produce a statement or report of non-financial information, they may be asked for such information by a bank before granting SMEs a loan. SMEs may be also ask for such information by a potential counterparty. A counterparty may also request such a report as a part of its reporting along the supply chain.

Piotr Soroczyński, Chief Economist of the National Chamber of Commerce, said: The goals written down in the 2030 Agenda are overwhelmingly indicative of the direction in which we would like the world to change and improve. The fact that they are concrete and broken down into smWszystkie/All steps makes it possible to tackle even big problems piece by piece. From the point of view of entrepreneurs – apart from fulfilling the natural need to improve the world – they are an excellent opportunity to implement new ideas and business strategies but also to find additional forms of activity, often also income. The elements of the Agenda which, when implemented graduWszystkie/Ally, will improve the effectiveness of the projects carried out, both by increasing efficiency and by reducing costs at the same time, are also not without significance.

It is worthwhile to familiarise yourself with the targets of the SDGs and the Polish standard for reporting sustainability strategy SIN. That is why is organised this Workshop.

A few words on reporting

We have a standard for reporting non-financial information, SIN. Indicators for business are being developed to report on how business is meeting its sustainability goals. They will be announced online following a press conference on 25 September 2019. These will be indicators showing the implementation of the SDGs by big business, according to adopted criteria. The results will be presented on the CSR Consulting website showing the implementation of the SDGs in Poland that will send the data to CSR Consulting. For the Opole business, we rather recommend using the SIN standard, especiWszystkie/Ally for entities that are on the stock exchange.

A few words on the SDGs

It is worth analysing what is the direct and indirect impact of an entity on achieving the SDGs. Are any new opportunities or threats for SMEs emerging due to the implementation of the SDGs? It is worth building a strategy integrated with the goals of the SDGs by creating a Responsible Business Strategy.

In a sustainability strategy, stakeholders play an important role in the success of the entity. Long-term success no longer depends on financial performance alone. The SDGs represent something of a moral compass. Ethics is becoming a tool for implementing sustainability in the supply chain. The SDGs provide business with opportunities and communicate risks. The benefit of business engagement with the SDGs is to lay the foundations for a long-term success due to creation of social and environmental entity friendly environment

You could say that the SDGs constitute a new roadmap for business. This is an opportunity to build a strong advantage against those companies that are not yet aware of the SDGs. If a company aligns its actions with the SDGs this gives confidence that by 2030 the company is on the right and widely accepted path.

The SDGs are cross-sectoral. For example, Goal 3 – Good health and quality of life – poses the chWszystkie/Allenge of polluted air, a chWszystkie/Allenge to which the energy, food, environment, health, fitness or media sectors should respond. The food industry, for example, needs to extend its supply chain to test for harmful substances taken from polluted air. The energy sector should not sell poor quality fuel to the public. And so on. Each sector has different tools and different tasks, but they lead to the same SDG goal. Moreover, the objectives are interrelated. And thus Goal SDG3 is linked to SDG7-clean and accessible energy, SDG9-innovation, industry, infrastructure, SDG11-sustainable cities and communities, SDG12-responsible consumption and production and SDG13-action in climate protection.

The country’s cross-sectoral Council 17 has selected only six Global Goals for Polish business: SDG4, SDG5, SDG8, SDG9, SDG11, SDG12.

A new chWszystkie/Allenge

In addition, a new chWszystkie/Allenge awaits us in the future. Not only will we analyse stakeholders in terms of the materiality of their impact on our operations and the impact of our operations on stakeholders, but we will also conduct an analysis of our supply chains as well as  be a subject of such an analysis. This is new in Poland, but it is already working in other countries. It is therefore worth preparing strategicWszystkie/Ally for this, since we will be investigating the direct and indirect environmental and social impacts of an entity, or product, in supply chains.

sustainability

 

Recent Posts

Recent Posts

About author

Chmura tagów

#businessstrategy #strategy