In this whiteboard animation video, I introduce a framework to help answer the question: How does sustainability create value for a business? This is a critical question to answer if we are hoping a business is going to make positive progress on sustainability. The Sustainable Value Framework was published in 2003 in the journal of the Academy of Management Executive in an article entitled “Creating Sustainable Value” and authored by Stuart L. Hart and Mark B. Milstein.
This framework uses a 2×2 matrix to assess shareholder value and sustainable value. This is important for business interested in embedding sustainability into their business strategy and driving value creation while reducing risks. This is also related to corporate social responsibility (CSR), triple bottom line, sustainable development and circular economy.
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Videos are created by Alexandre Magnin using years of experience drawing and working as a sustainability consultant with businesses and communities: http://www.amcreative.org
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Transcript:
Businesses wondering if and how they should embed sustainability into their business strategy can use this framework to determine their activity in each of the four quadrants; identify whether there is an imbalance in its portfolio of activities; where and how the firm is best positioned to take action. Then they can develop a set of activities designed to balance the portfolio of activities and create new value for the business – while responding to the sustainability challenge.
Resources:
Download the article “creating sustainable value” in PDF: https://www.researchgate.net/publication/229045047_Creating_Sustainable_Value
The business case for sustainability: http://sustainabilityillustrated.com/en/portfolio/business-case-sustainability/
Concept & script by Sarah Brooks
Music: “Swamp Stomp” by Silent Partner
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