Associations as Catalysts for Sustainability and Social Responsibility

1. Leveraging the Power of Associations To Create a New Magnitude of Sustainable Value David Cooperrider, Fairmount Minerals Professor and Chair Center for Business as an Agent of World Benefit Case Western Reserve University

3. A Story: The Most Exciting Project I Have Ever Worked On

4. Business as an Agent of World Benefit --More Than 2,000 Interviews --100s of Published Profiles “Positive Institutions” --s ee www.worldinquiry.org “Awe is What Moves Us Forward”

5. Sustainable Value —From Obligation to Design Mindset Stake- holder Value¹ Shareholder Value Unsustainable (Value Transfer) Unsustainable (Value Transfer) Unsustainable (Lose/Lose) Sustainable Value ¹ absolute standards or relative to competitors Clean energy vehicles Fossil fuel ICE

6. Is Sustainability a Passing Fad?

10. Fairmount Minerals Story Birth of the “Sustainable Design Factory”

13. Fairmount Started with Appreciative Inquiry in 1990 With a Focus on Empowerment 40% CAGR Past Four Years

14. Sources of Business Value Levels of Design Focus Business & World Context Brand/ Culture Market Product Process Risk Business and society value created Anticipating regulations, going beyond legal requirements Reducing energy, waste & process costs—future of totally renewable energy Sustainable-value, green products New stakeholder relationships, new markets Brand story, promise, customer experiences Designing industries, policy contexts, better world

15. In June, dairy leaders met in Rogers, Arkansas for the inaugural Sustainability Summit: Creating Value Through Dairy Innovation. The Summit was an unprecedented gathering of 250 leaders representing producers, processors, non-governmental organizations, university researchers and government agencies. Together, these stakeholders generated action steps and made an industry-wide commitment to reduce fluid milk’s carbon footprint while increasing business value, from farm to consumer.

16. Sustainability Summit: Creating Value Through Dairy Innovation The Call to Reduce Greenhouse Gas Emissions At the University of Arkansas Center for Applied Sustainability Dairy Management Inc International Dairy Foods Association (IDFA) and Others

19. Sustainability in the Dairy Industry OUR DEFINITION: Providing consumers with the nutritious dairy products they want in a way that makes the industry, people and the earth economically, environmentally and socially better – now and for future generations.

21. Sustainability Requires a Life Cycle Perspective v Waste & Pollution Resources &Energy Consumer/ End of Life

22. 4-D Cycle & Summit Task DISCOVER Strengths Innovations & Insights Positive Core DREAM Opportunities Images of a Better World Dairy Innovation DESIGN Aspirations Brainstorm Possibilities Rapid Prototyping DEPLOY Results Initiatives and Pilots Momentum & Learning Create breakthrough approaches to reduce greenhouse gas emissions and increase business value in the dairy industry

23. Dairy Industry Today 2.7 million U.S. passenger vehicle emissions per year Emissions today: 30 million metric tons per year Identified potential reductions: 15 million metric tons per year

24. Review Preliminary Opportunities, Identify New Opportunities 47 Vision statement and guiding principles Truck & Route Efficiency + Renewable Fuels blank Pastured Dairy/Seasonal Milk Production Product Innovation blank blank Carbon Markets Energy efficiencies Renewable Energy Infrastructure Industry Infrastructure Branding, Communication, Training Production Efficiencies Alternative Fuels Human Resources, Education, Awareness, Acceptance Funding and alliances Enteric Methane capture

34. 4-D Cycle & Summit Task DISCOVER Strengths Innovations & Insights Positive Core DREAM Opportunities Images of a Better World Dairy Innovation DESIGN Aspirations Brainstorm Possibilities Rapid Prototyping DEPLOY Results Initiatives and Pilots Momentum & Learning Create breakthrough approaches to reduce greenhouse gas emissions and increase business value in the dairy industry

35. Leveraging the Power of Associations To Create a New Magnitude of Sustainable Value Three Essential Success Factors

36. #1. Avoid the “Temptation to Do Good” Embrace the Opportunity to Create Sustainable Value Make it Part of Association and Industry/Profession Strategy

38. #2. Embrace and Play to Your Strengths Strength to Convene Strength to Accelerate Spread of Innovation Strength to Scale Up

39. #3. Don’t Misread the Management Trends Sustainability is the business opportunity of the 21 st century. It is an innovation engine unlike anything we have ever seen in management-- and it’s a lens which will dominate the management agenda for the next generation of thirty or more years. Even more important, the outcomes will define the next episode in creative capitalism and, ultimately, will determine the well-being of our imperiled planet. Association management may be the most important piece of the puzzle—associations offer the possibilities speed, spread and scale—exactly what we need.