SUSTAINABILITY AND INNOVATION

    • they are meta-disciplines, characterized by the “intersection of conceptual nuclei connections”proper to a multitude of heterogeneous disciplines.
    • the main feature being how they are defined by the problems and issues they deal with, rather than the individual disciplines they use.
    • both integrate economic, social and environmental processes, analyzed and managed with a phenomenal/holistic approach, as opposed to ideologue-disciplinary
    • Methodological prerequisite is the ability to create connections between different and often seemingly distant disciplinary
    • the “traditional” training background of the individual scholar who approaches the metadisciplines of Innovation and Sustainability, must be relativized and integrated with the management of distinct conceptual skills, but necessary in order to dialogue with other specialists.
    • They require the ability to refer (directly and indirectly) to different skills than those fully possessed and the enhancement of Soft Skills.
    • the body of knowledge originates from the integration and indivisible synthesis of multiple experts.

The planet and global society demand a transformation towards a more responsible treatment of natural capital, social capital and economic capital.

A sustainable future is one in which are simultaneously pursued:

  • A Healthy environment
  • Economic prosperity
  • Social justice

➥ to ensure the well-being and quality of life of present and future generations.

It is a process of change in which we interconnect and synchronise:

  1. The exploitation of resources
  2. Investment Direction
  3. The orientation of technological development
  4. Institutional change

➥ by assessing both current and future potential

➥ to satisfy and improve human needs and aspirations.

SUSTAINABLE DEVELOPMENT AND BUSINESS

New ideas, innovations and paradigm shifts are needed.

The global landscape of modern business is characterized by a new, accelerated and complex mix of risks and opportunities.

Every single market can be interrupted in a short time by countless factors, whether they are emerging technologies or a sudden lack of natural resources.

New markets are emerging rapidly as a result of megatrends such as population growth, resource scarcity, health risks and much more.

At the same time, consumers and investors are better informed than ever and demand that companies take responsibility for the pressure of our planet and the socio-economic dynamics of the world’s population.

It is becoming increasingly clear, especially from corporate leaders and forward-thinking investors, that it is no longer enough for companies to only care about short-term profits, because natural disasters, social unrest, economic disparities and lack of respect for human rights can damage long-term prosperity.

Companies that understand this challenge and act strategically, anticipating these phenomena, will have a lasting and exponential competitive advantage.

The approach to sustainability has evolved from an initial focus exclusively on risk management and damage avoidance to including innovation and value creation.

Therefore, the combination of sustainability and innovation has now become indispensable to create new combinations that allow to implement an innovation process that addresses and solves the current global challenges.

Sustainability is universally recognised as the most relevant key factor for innovation in the 21st century.

Sustainability issues are increasingly moving to the centre of the stage in politics, media, business and society at large.

The urgency of sustainable innovation is becoming internationally acknowledged as a critical factor, if not a panacea, for a sustainable future.

SUSTAINABLE DEVELOPMENT AND INNOVATION

Related economic and business opportunities are also recognised as being of huge magnitude.

Measuring social progress (Social Progress Index) makes it possible to translate economic profits into progress in social and environmental performance, which in turn allows an even greater economic return in the long run.

At a purely corporate level, the proper use of international policy instruments such as the UN GLOBAL AGENDA 2030, the EU Directive 2014/95, the Paris Agreements and much more, facilitate those organizations that minimize their socio-economic and environmental impacts and are committed to implementing new flexible systems of collaborative innovation, linked to the resolution of social-environmental problems on a global scale.

Through such a strategic approach, companies are more likely to meet the expectations of investors and stakeholders.

SUSTAINABLE DEVELOPMENT ISSUES

Here is a partial but significant list of the thematic areas that the expert in sustainable development must deal with, necessarily with a holistic approach.

  • FOOD SAFETY & SECURITY
  • ENVIRONMENT (climate, water, natural resources, marine life, land, sustainable production and consumption, etc.)
  • ENERGY
  • HEALTH
  • INNOVATION & TECHNOLOGY
  • INDUSTRY
  • INFRASTRUCTURES
  • EDUCATION
  • ECONOMIC GROWTH
  • EMPLOYMENT
  • URBANISATION
  • JUSTICE (human rights, fundamental freedoms, combating arms, organised crime, violence, money laundering, corruption, terrorism, democratic participation, etc.)
  • SOCIAL JUSTICE (inequality, poverty, protection of weak people, etc.)
  • INTERNATIONAL SECURITY

DOES ETHICS PAYS? BUSINESS ETHICS IN BUSINESS STRATEGY

In modern times, intangible assets are key factors for the competitiveness of businesses.

A company’s main resource is its reputation, which is capitalized upon by goodwill in its financial statements.

It follows that the theme of ethics and therefore of Corporate Social Responsibility becomes fundamental:

The long-term survival of a company is possible only if the management and its strategies remain respectful of all stakeholders voicing expectations towards the organization itself.

The long-term survival of a company is possible only if the management and its strategies remain respectful of all stakeholders voicing expectations towards the organization itself.

The increasing attention of management to ethics and sustainability is determined by various factors:

  • the need to control the occurrence of potential damage
  • risk management (crisis-related costs, legal sanctions, exposure of managers to personal/legal/reputational/financial sanctions, monitoring/transaction costs, social/political pressures)
  • penalties related to scandals
  • protection of reputation
  • brand building/development
  • positive contributions: innovation, productivity, growth.
  • Ethics builds trust in the organization, attracts investors, improves morale and commitment of employees (reduction of turnover), creates an innovation/creativity-friendly climate, improves the brand and products/services, attractiveness for the most qualified workforce, is a differentiating factor from the competition, improves the company’s standing in the local and international community, also improves access to opportunities.

Business Ethics therefore involves

➙ the functioning of the organization,

➙ market relationships,

➙ social standing

The Italian legislator has addressed the issue with the Legislative Decree 231/2001 on the administrative liability of companies arising from a criminal offence, considering compliance with the rules as an essential prerequisite to promote fair competition between companies and preserve a sustainable system of competition.

It has therefore asked the companies to prepare:

  1. an organisational model
  2. a code of ethics
  3. a Supervisory Board

Therefore, the implementation of an organizational model of corporate governance is a prerequisite for sustainable development and represents the first practical and operational step to integrate future-proofing and anticipation strategies to the business strategy.

At P&S LEGAL we help companies and public organisations to open up their doors to the future, anticipating governance models based on sustainable innovation.

Contact us for more information!

Vincenzo Solenne April 13, 2021