in this pitch, delivered at 2013 Henken Innovation Challenge, I focus on the need for a recalibration of business as usual, the catalysts for a shift away from Business As Usual, and examples of firm and frameworks making the shift.

1. Recalibrating Business As Usual
Richard Brubaker, Collective Responsibility
March 18, 2013

2. Recalibrating Business As Usual
About Me

3. Recalibrating Business As Usual
My focus on sustainability does not only include:

4. Recalibrating Business As Usual
Tangible byproducts
Problems we face are far
more personal than
“carbon” or climate
change

5. Recalibrating Business As Usual
….. are byproducts of systems we built
Business Has
Traditionally
Image Image
Assumed an Infinite
Capacity Planet
• Resources were cheap
• Consumption was key
Image Image • Waste went “Away”

6. Recalibrating Business As Usual
Challenges only grow in size, frequency, and severity
9 billion

7. Recalibrating Business As Usual
Shifting to a new model
B.A.U. Beyond B.A.U.
CSR Sustainability
• • primary goal
Growth is the Growth is achieved through quality
• Models are•heavily subsidized
Economic and Business Model are full cost
• • Externalities of models are
Externalities are someone else’s problemthe firm’s problem
• • and accountability are mutually are aligned
ResponsibilityResponsibility and Accountabilityindependent

8. Recalibrating Business As Usual
Our Future…

9. Recalibrating Business As Usual
Potential of a new model
It’s not just economy vs. environment
Image Image Image
Urban Planning Economic Development Quality of Life
Image Image Image
Safety Security Environment

10. Questions & Catalysts
Richard Brubaker, Collective Responsibility
March 18, 2013

11. Recalibrating Business As Usual
How severe are the problems?
How large are the problems?
• Are these anecdotal cases?
• Are these problems systemic?
• Are they TOO BIG TO FAIL?
Are the problems manageable/ solvable?
• Can a global recession be averted?
• Will Beijing fail to find more water?
• Can safe milk be delivered to consumers?
Or… Are we going to burn up?
• Economic depression?
• End of polar bears?
• Civil war?

12. Recalibrating Business As Usual
When do we “need” to act?
What is the timeline?
• Act now… with uncertain need or return…
• Wait until perhaps it’s too late….
How much can be solved today?
How much should I solve in my term?

13. Moving Beyond Business As Usual
Who’s to Blame / Who Should Lead
Politicians Business Leaders Citizens
Harmonious Society Change Leadership Personal Accountability

14. Recalibrating Business As Usual
How Big should the Response Be?
Is 750 billion enough to save
the global economy?
What percentage of GDP
should be invested in
renewable energy?
… and how much is saving the polar bears going to
cost?

15. Recalibrating Business As Usual
When will BAU Change?
Image Image Image
When The Problems are When Stakeholder Interests When economic models
too big to ignore Realign go extinct

16. Moving Beyond Business As Usual
External Catalysts: Driving action

17. Recalibrated Models
Richard Brubaker, Collective Responsibility
March 18, 2013

18. Moving Beyond Business As Usual
Forced to Lead
Politicians Business Leaders Citizens

19. Moving Beyond Business As Usual
Means of Change
PUSH: PULL:
Government Regulation / Consumer Expectations /
Resource availability Citizen Action

20. Moving Beyond Business As Usual
Recalibrating Companies
Starting from Scratch
Some Firms will be sustainable from day 1 Others Will Wait
 Patagonia
 Burt’s Bees
 Bambu Home
Low Hanging Fruit
Some Firms will start with a single product
 Puma
 HP
 Esquel
Going the Long Way
Some Firms will see new opportunity
 Wal-Mart
 Interface Flooring
 Nike

21. Moving Beyond Business As Usual
Recalibrating Systems: Interface Flooring
Goal: To completely eliminate any negative
• Established in 1973
impact we may have on the environment by
2020
• Manufacturing of modular carpeting
• 900 Million USD in revenue
• 3000 employees

22. Moving Beyond Business As Usual
Recalibrating Systems: Patagonia

23. Moving Beyond Business As Usual
Keys to recalibrating
Identifying the issue
Understanding risk / opportunity
Awareness Engagement
Aligning mission / vision w/ strategy
Aligning stakeholders to mission
Scale Capacity
Piloting solutions / investments
Scale of investment

24. Moving Beyond Business As Usual
Recalibrating Leaders
1) Clear Mission and Vision
2) Understanding of “externalities” and impacts
3) A business plan for change
4) Ability to Manage Time
5) Focus on systems and building
6) Able to engage and activate stakeholders
7) System of monitoring and reporting
8) Commitment to execution

25. Henkel
Richard Brubaker, Collective Responsibility
March 18, 2013

26. Moving Beyond Business As Usual
Henkel

27. Moving Beyond Business As Usual
Henkel’s Value chain
Design Materials Logistics Production Retail Use Waste
& Transport

28. Moving Beyond Business As Usual
Henkel’s Vision and Framework

29. Moving Beyond Business As Usual
Action

30. Moving Beyond Business As Usual
Finding Success
Economic Growth Reduced Footprint

31. Your Opportunity
Richard Brubaker, Collective Responsibility
March 18, 2013

32. Recalibrating Business As Usual
Takeaways
The problems that are faced are complex, dynamic, and growing:
• Economic, environmental, and social issues are growing in size with lower resiliency
• Costs of issues is being seen (by some) as too great with expectations of change building
The pressure(s) that a firm will face can come from all angles:
• Often catalyzed by external issues, but internal pressure rising
• Required Internal/ external stakeholders alignment
Economic conditions are increasing pressure for real (sustained) changed:
• Environmental damage has led to new regulations. Regulations that increase costs
• Environmental/ social damage have reduced the quality/ quantity of resources
Economic models will have to shift:
• Proactive firms can edit, influence, and innovate
• Reactive firms can only respond, pay more, and hope to keep up

33. Recalibrating Business As Usual
It’s Time to Choose
The 21st century is either going to be the most interesting time in
human history, or it is going to be very bleak, and I don't think we have
decided yet.
We haven't made the fundamental decisions about whether we are
going to share the future or fight over it.
- William Jefferson Clinton

34. Thank You!
Richard Brubaker
Founder, Collective Responsibility
Adjunct Professor of Sustainability, CEIBS
rich@collectiveresponsibility.org
@ChinaCSR