Organizational Risk Management and Sustainability

A Practical Step-by-Step Guide

Robert B. Pojasek

• Publisher: CRC Press
• Year: 2017
• Print ISBN: 9781498724661
• eBook ISBN: 9781315353517
• Edition: 1
• Topic: Technology & Engineering
• Subtopic: Industrial Engineering
• Index: Technology & Engineering

This book offers a practical and reliable approach to how an organization can move beyond all of the separate initiatives and hype associated with sustainability. It shows how to build in what is already in place, in order to create a sense of stewardship that protects the environment, creates a sense of social well-being, and shared value within the organization.

Section II

Structure for Planning and Implementing Organizational Sustainability

Most successful organizations use a plan– do– check– act (PDCA) sequence to implement and maintain programs to improve quality; environmental protection, health, and safety; and other functional disciplines. Some PDCA programs are implicitly stated, and some are explicitly defined in a system of management. Chapters 7 through 14 provide information and guidance to help any organization use the “ plan” and “ do” (i.e., implementation) as a means of implementing and embedding sustainability into an organization. The information is based on international best practices that are included in the endnotes section for each chapter and linked to the references at the end of the book.

The reader will learn what is important to have in the sustainability program and can decide how best to make that happen in a particular organization. The popular slogan for this activity is “ Say what you do! Do what you say! Do it effectively! Be able to prove it!” However, it takes some practice to make this happen.

In Appendix II, there is a case for implementing a sustainability program at a virtual hotel. It is not a bad start, but it does not use all of the materials presented in these chapters. The case also needs to be examined from the point of view of whether the essential questions (presented at the end of each chapter) have been addressed in the case. Since this is a practical step-by-step guide, this information should help the sustainability practitioner implement sustainability into any organization and see that it is embedded within what every person in that organization does every day. Appendix III offers a means to practice the “ check” and “ act” elements of PDCA.

7

An Organization’ s Objectives and Goals

To achieve sustainable success, an organization must meet its overarching objectives over the long term while operating in an uncertain world. When developing a sustainability program, it is important to understand the organization’ s objectives and how they were established. As with other terms, there is disagreement regarding the difference between “ objectives” and “ goals.” Many people continue to use these terms interchangeably. There is also disagreement regarding the purpose and content of a mission statement— the principal source of the organization’ s objectives. The focus of this chapter is on setting objectives and goals in an organization. The literature surveyed in the previous six foundation chapters will be used to maintain the perspective of the organization.

Organization’ s Mission Statement

The mission statement is widely regarded as an explicit statement of the reason for the organization’ s existence and what it is meant to accomplish. Mission statements are typically focused on a 5- to 10-year time frame and should

•Separate what is important to the organization’ s sustainable success from what is not as important

•Clearly state the customers, clients, or other persons and organizations that are served and how they are served

•Communicate the organization’ s “ looking forward” position to its stakeholders

For a private business, the mission is focused on its products or services. In the public sector, the mission statement focuses on what the organization is trying to accomplish. Most not-for-profit organizations are established to start something new or stop something that they find objectionable, such as protecting a wetland area or eliminating the emission of greenhouse gases. In all cases, the mission statement provides a foundation for the strategic planning process and the management of the processes and activities within the organization. A mission statement is very important to an organization because it helps management increase the probability that the organization will achieve sustainable success over time.

A mission statement is different from a vision statement. Most regard the mission statement to be the cause and the vision statement to be the effect . Looking at this relationship in a different way, the mission statement is something to be accomplished and the vision statement something to be pursued for that accomplishment.

Most small organizations do not have a written mission statement, but rely on the implicit understanding of what is most important to the organization— what it stands for. Preparing a written mission statement enables the organization to explicitly state its purpose for anyone with an interest. The written mission statement should provide the reader with a brief summary of the organization’ s principles and culture¹ (see Chapter 2). There will be a keen interest by internal and external stakeholders in knowing how the organization’ s values will determine how the mission is executed moving forward. Sustainability may be embedded into the operational objectives, along with the organization’ s values, to become part of how the organization operates every day.

Many organizations seek to be a good neighbor and a positive contributor to the community. Their work should not cause harm in the neighborhood. Organizations need members or employees to create the products and services associated with their operations and mission. If the community suffers from environmental, social, and economic problems, the organization is likely to have trouble recruiting members and retaining them at this location. It is always easier to attract and retain members in an organization when a community is growing in a sustainable manner. Having a beneficial relationship with the local community is vital to securing and maintaining its “ social license to operate.” By enabling beneficial collaborations and partnerships with the community and other organizations in that community, it is possible to aspire to values that will set the organization apart from its competitors. Sustainability and social responsibility provide a means for the organization to build long-term relationships with local suppliers and customers while enhancing its reputation as a good neighbor in the community.

An organization can use its mission statement to communicate to its internal and external stakeholders a good sense of what it is seeking to achieve in the area of sustainability. In this manner, the organization can communicate its legitimacy to the community and seek new members, employees, or trusted partners that can identify with its stated purpose. Some organizations focus their mission statement on making a profit. This kind of statement may not be viewed favorably by some external stakeholders because it will seem that the organization places profits above addressing the interests of the stakeholders. A sustainability program helps create responsible mission statements and objectives that demonstrate the value of its environmental stewardship, its focus on social well-being, and the shared value associated with these contributions. However, these contributions must not be seen as something that is provided separately by an orga...

Table of contents

• Cover-Page
• Half-Title
• Title
• Copyright
• Dedication
• Contents
• Preface
• Acknowledgments
• Author
• Section I Foundation for Risk Management and Organizational Sustainability
• Section II Structure for Planning and Implementing Organizational Sustainability
• Section III Monitoring, Measuring, and Improving Organizational Sustainability
• References
• Appendix I
• Appendix II
• Appendix III
• Index