2004 proutist universal 1 proutist economic development triple bottom line dr. michael towsey and...

2004 Proutist Universal 1

Proutist Economic Development

Triple Bottom Line

Dr. Michael Towsey

and

Dieter Dambiec

Dr. Michael Towsey & Dieter Dambiec Proutist Universal 2

economyeconomy

ecologyecology communitycommunity


financial valuefinancial value

ecological ecological valuevalue

human human & social & social

valuevalue

• A business enterprise takes place around three kinds of value which interact.

• A sustainable business will have three positive balances.

• The Triple Bottom Line focuses attention on three kinds of added value – economic, human / social and environmental.

sustainabilitysustainability


The triple bottom line

Financialbalance sheet

Human / Socialbalance sheet

Environmental balance sheet

Income Positive outcomes Positive outcomes

Expenditure Negative impacts Negative impacts

Profit Net social benefit

Net environmental benefit

The triple bottom line


Who is doing it?

• Royal Dutch / Shell Group

• BP (British Petroleum)

• Rio Tinto

• British Telecom

• Volkswagon Group

• Toyota Motor Corporation

• Credit Suisse Group

• Around 290 businesses in 29 countries release sustainability reports based on the guidelines of the Global Reporting Initiative (GRI)

www.globalreporting.org/about/brief.asp

http://www.globalreporting.org/about/brief.asp


Why are they doing it?

The Prestige…

The Prestige

– Oil Spill 2002


The Prestige Oil Spill

• An environmental catastrophe occurs as a tanker sinks off the coast of Spain.

• The stricken Bahamas-flagged Prestige, carrying millions of barrels of oil, leaves a slick over 200 metres wide and 30 km long off the north-western Spanish coast.

• The slick threatens one of Europe's most picturesque and wildlife-rich coasts.


Who does the clean up work and pays?

• Members of the French Navy deliver oil-trapping nets to Galician fishermen.

• Workers place a floating barrier to protect the coastline from spilled oil.


What are the impacts?

• Oil washes up on the shore in Camelle.

• Spanish sailors help

shovel sludge off an

oil-stained beach.


Who has to live with it?

• Inhabitants of Camelle watch clean up efforts for the Prestige oil spill.

• A resident walks on an oil-soaked shore near Porto do Son.


Sustainability

• Companies have a social responsibility to ensure their business practices are sustainable.

• But look at the derangements:

– The idea that business has a social responsibility is fundamentally subversive. - Milton Friedman

– Anyone who does anything for anything other than profit is either a madman or a bankrupt. - Mr McKinnon, Minister for Defence, Australia, 1970s.

• But what is happening now?


Shell Report 2002

For 2003 see: www.shell.com/home/Framework?siteId=shellreport2003-en


The social auditing cycle

A sustainable company will:

• Define its values

• Define its social and environmental objectives / targets

• Identify stakeholders – all those affected by its business

• Account for all components of its social objectives

• Report the accounting results

• Have the report independently audited by qualified social auditors

• Set new targets and improve its performance


The benefits of social auditing

• “Improved employee satisfaction … improved relationships with key government stakeholders, community groups and non-government organisations … improved reputation in the market place.” (BP Australia)

• “Improved relationship with regulators.” (Integral Energy, Sydney)

See research by the New South Wales Chamber of Commerce:www.thechamber.com.au/homezone/Policy/TheCommonGood/CommonGood.asp


International standards• International reporting standards:

– Global Reporting Initiative (GRI) established 1997.– www.globalreporting.org– Reports should be verifiable.– Steering group includes: U.N. Environment Program; World

Business Council for Sustainable Development; New Economics Foundation.

• International auditing standards:– AccountAbility: Institute of Social and Ethical Accountability.– www.accountability.org.uk– AA1000 Assurance Standard (2002).

http://www.globalreporting.org/

http://www.accountability.org.uk/


Maleny Credit Union

www.malenycu.com.au- Ecological Sustainability

indicators

www.malenycu.com.au/reports_html

http://www.malenycu.com.au/

http://www.malenycu.com.au/reports_html


Maleny Credit Union

Governance Policies:www.malenycu.com.au/library/files/policy_gov.pdf

• During the course of 2002-03 the MCU Board developed and accepted a governance policy based on the Carver Model.

• See: www.carvergovernance.com/model.htm

• The MCU Governance Policy covers:•Financial Sustainability;•Social Sustainability;•Environmental Sustainability.

• The governance policy directs the operations of the MCU and is reviewed regularly by the Board.


Quadruple bottom line• Where do we go next?

• The quadruple bottom line adds in culture as an accountability, reporting and auditing requirement.

• It recognises that business can promote and learn from indigenous culture - thereby creating economic, social, environmental and cultural benefits.

• See for example in New Zealand (Aotearoa):

www.rodgerspiller.com/attachments/ethical-investor-october-2003.pdf

• Also (it may be the 4th or 5th bottom line):

• www.metafuture.org/Articles/spirituality_bottom_line.htm


Quintuple bottom line

• The quintuple bottom line looks at how an enterprise works cooperatively and how the cooperative itself promotes social equality in society as a whole.

• An extension of the quadruple bottom line?

• Enterprises should aim to achieve a society free from all social inequalities with the human race moving in unison in its diverse and elevated expressions.

• Eg, to achieve social parity, Unity: Journalists of Color Inc demands that by 2008 minority journalists should comprise no less than 20% of American newsrooms, and at least 15% of newsroom managers.

See: www.unityjournalists.org/news_fcc.html


Cooperative action

• The structural commercial or business model required to achieve social parity in day-to-day interaction and working life is the cooperative enterprise.

• Cooperatives are the main means of ensuring rational distribution of profits to workers and / or shareholders in the local economy.

• They aim for social equality and equal locus standi.

• The cooperative system is capable of ensuring the social welfare of all citizens in the local economy.


Proto-spiritual outlook

• To achieve social parity and implement the principle of social equality requires a broad outlook and universal view.

• This is the proto-spiritual mentality.

• In this way limiting geo-sentiments and socio-sentiments can be easily surmounted.

• The movement is toward neo-humanism - respect for all humans, animals & plants and their worlds.

• A Gaian nature-friendly ethic and practice.

2004 proutist universal 1 proutist economic development triple bottom line dr. michael towsey and...

Documents

dieter dambiec slide

line slide

sustainability slide

performance slide

social responsibility

social objectives

institute of social

prestige oil spill