Week 3:T riple Bottom Line, UNGC, MDG,

GRI

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1 Brundtland Commission Sustainable
Development

> Brundtland Commission defines Sustainable (SD)

development as: ‘the development that meets the needs of
the present without compromising the ability of future
generations to meet their own needs.”(eyeon
2050..sustainability theory, page 1of 71)

2/4/2019 1. See reference List 2

2&3. Brundtland Commission’s Triple Bottom
line
> Refer to the figure in your article page 2. Referred to as “Weak
Sustainability” (eyeon 2050..sustainabiltiy theory1, page 2)

> The figure highlights three pertinent parameters

• Society
• Economy
• Environment
As an interdependent triad. That must be maintained for sustainability to happen.
The grey areas where the circles intersect represent the process of “striking a
balance between economic, social and environment priorities”
(eyeon 2050..sustainabiltiy theory1, page 2)

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3. Distinguish Between Weak and Strong models
for DS
> These balanced priorities allow for compromise of each of the three
priorities.
> Sustainable Development is resolved at the centre.
> The model is difficult to define and regulate.
> It is the issues of environmental threats and lack of support for the
societal dimensions of SD that make this a “Weak Sustainability” Model
not able to meet the urgency of these problems. In this model society is
dependent on the economy as is the environment.
(eyeon2050..sustainability theory1, page 2)

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Weak Model
> Eyeon2050….sustainability theory1, Page 2

comp
Economy Environment
comp
SD comp

Society

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3. Distinguish Between Weak and Strong models
for DS(continued)
> An alternative model has been suggested as a “Strong Sustainability”
Model (eyeon2050..sustainability theory1, figure on page 3). The inner
circle is the economy whilst environment and society take on the outer
circles. In this way the economy is dependent on society and the
environment.
> In this Strong Sustainability model both society and the economy are
dependent subsets of the environment.
> So without a stable environment there is no economy or society.
(eyeon2050..sustainability theory1, page 3)

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Strong Model of Sustainability
> Eyeon2050….sustainability theory1, Page 3

Economy

Society

Environment

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4. Definitions EPI
> This model is far superior than the Weak Sustainability model because
it rejects the idea of “balance” or “compromise”. There is a definite
sense of integration of environmental policy with social and economic
policy.
> In the UK they have an Environmental Policy Integration (EPI) which
has three core goals:
• Achieve sustainable Development & prevent environmental degradation
• Remove contradiction and between policies as well as contradictions within
environmental policies
• Realise the mutual benefits and make policies mutually beneficial
(Lenschow, 2002)2

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Strong Sustainability model
> The Strong Sustainability shows no circles overlapping or
gray areas. The distinct areas of Economy, Society and
Environment show no place for compromise or discussion
> There is an equal mindset and level of equal importance
for all three policies. Each as important as each other and
business needs to be involved in this approach for it to be
categorised as truly involved in Sustainable Development.

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5. What is the Triple Bottom Line and its link
to SD
> The triple bottom Line (TBL) relates to economic value
added to corporations as well as the environmental and
social value that is added or destroyed.
> How much of the operation should be involved in TBL,
particular product, manufacturing process, or the company
as a whole?

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7. Implementation of TBL in an
organisation
> Leaders: A company needs at least one executive level to
see a TBL strategy through. Executive gives authorisation,
support, and resources for activities.
> Stakeholders: real responsibility of implementing a TBL
plan.
• Motivating people
• Inspiring people
• Training and educating amongst stakeholders
• Support team to facilitate and embrace changes

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Linking Sustainability Theory and TBL to
Coca Cola (China)
> Applying the concept of sustainability theory to Cocoa Cola (Limited)
and Coca Cola (China) (See FLO site Topic Central tab).

> To What extent has this company applied the true concepts of TBL.
> In your assessment isolate and discuss the:
• Economic
• Social
• Environmental components within the reports

http://hellenic.rvrapid.com/?iid=106165&startpage=page0000067#folio=1
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1. Millennium Development Goals as a Social
Framework for SD
> Evidence suggests the adoption of the MDG as a
framework to think about social issues in management:
• Eradicate extreme poverty and hunger
• Achieve universal primary education
• Promote gender equality
• Reduce Child Mortality
• Improve maternal health
• Combat AIDS, Malaria and other diseases
• Ensure environmental sustainability
• Develop global partnership for development

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2. Corporate Support for Social Dimensions of
SD and TBL
> It is useful for Corporations to have a shared and vetted
framework around social dimensions of Sustainability
to:
• Help corporations prioritise sustainability using MDG
framework to identify their strengths and help
achieve their social goals.
• Promote constructive dialogue between NGO’s
companies and government about working together
to achieve social goals

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3. Poverty Alleviation as a Social issue
in SD
• BOP markets allow the poorest of the poor to
get their feet on the ladder of development,
eg through micro financing (Grameen bank
and ANZ bank4 examples from last week)
This is an example of Poverty alleviation
using BOP and again a great example of
societal Dimension of SD and TBL

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4. Stakeholder Links to the Societal
Dimension of TBL

> There is also a belief that corporations and the direct

involvement of local stakeholders are essential to successful,
sustained poverty alleviation.

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5. Business Strategy Links to Societal
Dimension
> How to design business strategy to better integrate societal
needs:
• What are the strengths of the company, globally and locally
• What are the business needs or opportunities
• Are there any of the MDG with higher needs than others
• How can we design our business and or make social
investments to support business goals and identify societal
needs.
• Using the MDG how do we believe that this investment wil
reduce poverty.

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6&7. MDG 75 & link to environmental
sustainability
> Goal 7 of the MDG helps to ensure environmental
sustainability through the following:
• Reverse loss of environmental resources
• By 2010 a significant reduction in biodiversity loss (fish, forest, species
loss
• Reduce by half the proportion of people without sustainable access to
safe drinking water and basic sanitation
• Significant improvement in lives of at least 100 million slum dwellers by
2020.
http://www.un.org/millenniumgoals/environ.shtml

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The UN Global Compact6
What is the Global Compact?
> The United Nations Global Compact6 is a strategic
policy initiative for businesses that are committed
to aligning their operations and strategies with ten
universally accepted principles in the areas of
human rights, labour, environment and anti-
corruption.

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Ten Principles UN Global Compact6 and their
links to Sustainability

Human Rights
1. Business should support and respect the protection of
internationally proclaimed human rights.
2. Make sure that they are not complicit in human rights abuses.
Labour
3. Business should uphold the freedom of association and effective recognition
of the right to collective bargaining.
4. The elimination of all forms of forced and compulsory labour
5. The effective abolition of child labour’
6. The elimination of discrimination in respect of employment and occupation

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Ten Principles UN Global Compact6

Environment
7. Business should support a precautionary approach to environmental
challenges
8. Undertake initiatives to promote greater environmental responsibility
9. Encourage the development and diffusion of environmentally friendly
technologies
Anti-Corruption
10. Business should work against corruption in all its forms, including
extortion and bribery

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GRI: Global Reporting Initiatives8
> The GRI is a generally accepted reporting framework for
Corporations to report on their commitments to
sustainability.
> Sustainability reporting is an effective tool to enhance
publication of sustainability reports by corporations
globally.
> Sustainability reporting using GRI provides a valuable
benchmark for measuring corporate sustainability activities.

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GRI
> One of the most well-known and commonly utilised triple-bottom
line reporting models is the Global Reporting Initiative (GRI)
Guidelines.8

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GRI8
> The GRI’s specific goals are to offer report formats to
account for sustainability:
> to assist corporations in presenting a balanced picture of their
organisation to the stakeholders;
> to promote the comparability of corporate sustainability
reports;
> to stimulate benchmarking and the verifiable assessment of
sustainability performance: and
> to facilitate stakeholder engagement.

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GRI: Economic indicators
> GRI Performance Indicators:
> Economic indicators are concerned with an organisations
impact. Both directly and indirect on the economic resources of
its stakeholders and economic systems as local national and
global levels.

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> EC5: Range of ratios of standard entry level wage
compared to local minimum wage at significant locations
of operation
> EC6: Policy, practices and proportion of spending on
locally-based suppliers at significant locations of
operations
> EC7: Procedures for local hiring and proportion of senior
management hired from the local community
> EC8: Development and impact of infrastructure
investments and services provided primarily for public
benefit through commercial, in-kind, or pro bono
engagement

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GRI: Environmental Indicators
> Environmental Indicators are concerned with an
organisation’s impact on living and non-living natural
systems, including eco-systems, land ,air and water.
Included within environmental indicators are the
environmental impact of products and services: energy,
material and water usage; greenhouse gases and other
emissions; effluents and waste generation; impacts on
biodiversity; use of hazardous materials; recycling,
pollution, waste reduction and other environmental
programs; environmental expenditures; and fines and
penalties for non-compliance.
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>
> EN1: Materials used by weight or volume
> EN2: Percentage of materials used that are recycled input
materials
> EN3: Direct energy consumption by primary energy source
> EN4: Indirect energy consumption by primary source
> EN5: Energy saved due to conservation and efficiency
improvements

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 GRI: Social Indicators

> Social indicators include a few broad subcategories with

more detail indicators under each:
> Labour practices such as diversity, employee health and
safety
> Human rights such as child labour and compliance issues
> Broader social issues such as bribery, corruption and
community relations
> Product responsibility.

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Society
> SO1: Nature, scope, and effectiveness of any programs
and practices that assess and manage the impacts of
operations on communities, including entering,
operating, and exiting
> SO2: Percentage and total number of business units
analysed for risks related to corruption
> SO3: Percentage of employees trained in the
organisation’s anti-corruption policies and procedures
> SO4: Actions taken in response to incidents of corruption

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Human Rights
> HR1: Percentage and total number of significant investment
agreements that include human rights clauses or that have
undergone human rights screening
> HR2: Percentage of significant suppliers that have undergone
screening on human rights and actions taken
> HR4: Total number of incidents of discrimination and actions
taken

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Labour Practices and Decent Work

> LA1: Total workforce by employment type, employment

contract, and region
> LA2: Total number and rate of employee turnover by age
group, gender, and region
> LA3: Benefits provided to full-time employees that are
not provided to temporary or part-time employees
> LA4: Percentage of employees covered by collective
bargaining agreements
> LA5: Minimum notice period(s) regarding operational
chances
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 Product Responsibility
> PR1: Life cycle stages in which health and safety impacts of
products and services are assessed for improvement, and
percentage of significant products and service categories subject
to such procedures
> PR2: Total number of incidents of non-compliance with
regulations and voluntary codes concerning health and safety
impacts of products and services during their life cycle, and their
outcomes

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Reference List
1. Eyeon2050sustainability theory

http://eyeon2050sustheory.blogspot.com/

2. Lenschow, A., 2002, Environmental Policy Integration: Greening Sectoral Policies in

Europe, Routledge US.

3. Coca Cola Sustainability report 2011

http://hellenic.rvrapid.com/?iid=106165&startpage=page0000067#folio=1

4. ANZ(2013), Stakeholder Engagement 2013 results,

http://www.anz.com/resources/d/0/d0025c5d-dfce-443d-87bf-
2391085111dd/ANZ_Stakeholder_Engagement_FY13.pdf?MOD=AJPERES&2013%20Stake
holder%20Engagement%20Table%20(PDF%20268kB)
5. MDG 7 http://www.un.org/millenniumgoals/environ.shtml
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6. United Nations 2014, Global Compact Network Australia
http://www.unglobalcompact.org.au/

7. United Nations 2014, Millennium Goals,

http://www.un.org/millenniumgoals/

8. GRI 2014, Global Reporting Initiative, An introduction to G4,

https://www.globalreporting.org/reporting/g4/Pages/Introduction-to-
G4-brochure.aspx

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