Innovations for SustainabilityIntegrating Stakeholders into the Innovation Process

Environmental Management Leadership SymposiumUniversità Bocconi, Milano8th & 9th June 2009

Michele ArouchMarianne Esders

Workshop.

Sustainability Innovation Process

Multi-Stakeholder Integration

R&D /Prototyping

Potential innovation

Idea generation

Invention phase

Introduction Dispersion

Realisation & adoption phase

Realised innovation

Market Arena

Competitors /Suppliers

Civil SocietyNGOs

Scientific Arena

Political and Legal Arena / Government

Workshop.

Some of the main questions arising within this context:

1a) How can the sustainability innovation process benefit from stakeholder integration?

• Where can which stakeholders be supportive for what?

1b) What are the risks and challenges to be aware of?

2)What are the skills and actions necessary for a sustainability manager to successfully utilize cross-sector initiatives for sustainability innovation?

Market Arena (Competitors, Suppliers, Consumers)

Consumers• push governments and companies to do more on sustainability issues

• require labelling of products with indicators on environmental standards

Suppliers• give the companies their ideas on innovation for sustainability

• collaborate with other suppliers on more environmentally friendly production processes

Market Arena (Competitors, Suppliers, Consumers)

Competitors• Innovation through a collaborative effort between competitors – alliances, clusters

Govnernment / Political / Legal Institutions

• Fund research

• Support universities and research institutes

• Provide financial incentives for eco-friendly behaviour

and products

• Implement taxes and laws

• Support the bank system for low investment loans

• Bring different stakeholders together

• Provide platforms for information sharing purposes (e.g.

a website)

• Integration of different countries (e.g. within the EU)

Research Institutes / Universities

• Provide skilled people by having education programmes

like the Master in Environmental Management

• Support business by doing research for them

• Provide students

• Provide the framework for sustainability

Civil Society / NGOs / Media

• Press governments to restrict standards and laws

• NGOs can be a reference point for the companies

• Provide their knowledge on sustainability issues

• Media can inform and educate the people on

sustainability issues (e.g. Lifegate)

• Media can support knowledge sharing and promoting

sustainable innovations

Risks of Stakeholder Integration

• Every stakeholder group makes other stakeholder groups

responsible for solving the problem

• Not every stakeholder likes to share knowledge – free

rider problem

• Knowledge spill-over – loss of competitiveness

• Increasing costs

• Time constraints

• Distribution of power between the different stakeholders

Skills of the Environmental / Sustainability Manager

• Negotiation and communication skills

• Patience

• Interdisciplinary background to speak the stakeholders‘

„language“

• Not only integrate external stakeholders but also

integrate the different functions within the organisation

(R&D, production, marketing, finance, packaging, etc.)

Conclusion

• Many risks of stakeholder inclusion• Make sure you choose the right stakeholders and the right timing to involve them• Innovation for sustainability cannot take place without the support of many stakeholders. • Isolated R&D efforts cannot become a market success if they are not supported by stakeholders affected.• Definitely not only external stakeholder integration is needed but internal integration of functions and top management commitment need to be worked on as well.

Conclusion II

Milano is a great city with great food and great people and great students!!!!

Thank you!