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MAC 301 Reviewer

Management Accounting (Batangas State University)

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MAC 301 - SUSTAINABILITY AND Economic systems are intact and  TBL theory holds that if a firm
STRATEGIC AUDIT activities are available to everyone, looks at profits only, ignoring
Module 1 PILLARS OF SUSTAINABILITY such as secure sources of livelihood. people and the planet, it cannot
AND ITS FUNCTIONS account for the full cost of doing
THE EMERGENCE OF
business.
SUSTAINABLE Environmental Sustainability
(Environmental Protection) Social Sustainability Sustainable innovations represent
STRATEGIC MANAGEMENT (Social Responsibility) different management structures and
Ecological integrity is maintained, all
Sustainability - It is the act of living sizes:
of earth’s environmental systems are Universal human rights and basic
within the constraints of available  multinationals,
kept in balance while natural necessities are attainable by all
 small and medium-sized
physical, natural, and social resources within them are consumed people, who have access to enough companies,
resources in such a way that the by humans at a rate where they can resources in order to keep their  startups, and
living systems in which humans are replenish themselves. families and communities healthy  cooperatives.
embedded can survive indefinitely. and secure.
 Adjust value chain to very low
Strategic Audit - It is an in-depth usage of all resources Main Sustainability Innovation
Healthy communities have just
analysis to see whether a  Select resources of sufficient  Internal process
leaders who ensure personal, labor,
corporation is achieving its supply  Role of main stakeholder
and cultural rights are respected and
operational targets in the most  Resources used should be involved
all people are protected from
effective way possible. processed with little energy and  Drivers and enablers
emissions discrimination.
 Impact
Sustainability Audit - It is a guide  Avoid air and water pollution as  Challenges and opportunities
MODULE 2
for comparing the company's policies much as possible
 Strive for closed loops and
IN SEARCH OF SUSTAINABILITY
to the best practices for long-term Volatile, Uncertain, Complex and
recovery
sustainability.  Design materials and products TRIPLE BOTTOM LINE Ambiguous (VUCA).
for optimum recyclability It describes the situation of constant,
Causes of Global Sustainability In economics, Triple Bottom Line unpredictable change that is now the
 The goal is the balance
Issues (TBL) claims that corporations norm in certain industries and areas
between consumption and
 Health and Welfare regeneration of natural should commit to focusing on social of the business world.
(Poverty and malnutrition, Lack resources including resource and environmental issues as much
of Education and literacy, recovery as they do on income. A collaborative and multi-
illness, air and water pollution
Economic Sustainability stakeholder approach, where each of
and lack of basic supplies.) A TBL aims to calculate the extent of
(Economic Prosperity) the partners leverages its expertise
 Nutrition commitment of a company to
and its access to networks, has been
(Soil erosion and water corporate social responsibility and its
Human communities across the traditionally perceived as a major
shortage, malnutrition, food effect on the environment over time.
pollution and distribution and globe can maintain their driver in this process.
shortage problems) independence and have access to A sustainable future is
 The triple bottom line aims to
 Human Rights the resources that they require, largely dependent on people,
measure the financial, social,
(Child labor, wage dumping and financial and other, to meet their and environmental performance consumers and consumers not only
work safety, discrimination and needs. of a company over time. making sustainable decisions, but
injustice, oppression, and  The TBL consists of three also interacting actively with existing
lawlessness.) elements: profit, people, and the corporations, brands and
planet. governments

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Education experiments to take new ventures From the analysis of the cases a
a shift in educational systems to into account. pattern for sustainability
enable sustainability innovation and entrepreneurship appears, which
entrepreneurship through more echoes the model developed by
learner-centered programmers’, Frank-Martin Belz and Julia Binder.
Key Goals critical analysis and systems thinking
1. The new role of citizens in approaches.
Company External Enablers
driving sustainability innovation Role of Stakeholders and Collaboration
and entrepreneurship Networks the active involvement of both
2. The role of companies and government policy should encourage primary stakeholders (e.g. manufacturers The Circular Economy
entrepreneurs as agents of and establish mechanisms for the and business partners) and secondary A circular economy is a form of
change creation and maintenance of stakeholders (e.g. public authorities, civil economic growth that benefits
3. The role of policy in shaping sustainability learning networks society groups, universities and enterprises, society, and the world as
more sustainable lifestyles and where multiple stakeholders foundations) was crucial, while a whole. In comparison to the linear
favoring sustainability innovation collaborate. secondary stakeholders tend to play a model of "take-make-waste," a
greater and more important role than
and entrepreneurship circular economy is designed to
other forms of innovation.
Funding These different types of
gradually decouple growth from the
Five Areas of Inquiry and Action facilitate access to finance and better stakeholders play a variety of different consumption of finite resources.
for Sustainable Lifestyles and tax and investment incentives to run, roles throughout the process: as
Green Economy escalate and grow business facilitators of citizen engagement, acting It is based on three principles:
1. UNDERSTAND ventures, companies and SMEs with as stimulators, initiators, brokers,  Design out waste and pollution
consumers’ values and behavior a positive social and environmental concept refiners, legitimators, educators,  Keep products and materials in
2. ANALYSE impact. context enablers and impact extenders. use
short- and long- term obstacles  Regenerate natural systems
and opportunities Impact Tools
3. INVESTIGATE different impact measurement and a Integration of Citizen Insights Biological Materials,
new business models
new definition of ‘value’ appear as In their co-creation which are depicted in green cycles
4. MEASURE processes, the businesses studied
two important factors to consolidate on the diagram's left side, are
prospects have used a range of methodologies
sustainability innovation. materials that can be safely
5. ASSESS and instruments to include citizens-
the political dimension of the
reintroduced into the natural world
COMPANY- DRIVEN INNOVATION users-consumers and other after one or more usage cycles,
evolution in sustainable lifestyle
stakeholders. where they can biodegrade over
Company Internal Enablers
THE NEW ROLE OF THE CITIZEN Leadership and Top Management time, returning the embedded
SUSTAINABLE nutrients to the atmosphere.
 Individual Users Buy-In ENTREPRENEURSHIP
 Passive Users is a vital organizational enabler INNOVATION
 Collective Users A strong intra-entrepreneurial Technical Materials
 (Co-) Producing Users organizational culture has also cannot be reintroduced into the
Sustainability entrepreneurship world. Metals, plastics, and synthetic
proved crucial, not only in the development pattern
Four areas where policy change decision to involve citizens-users- chemicals, for example, must
The Sustainable Entrepreneurship
could enable more sustainability consumers in the process of constantly rotate through the system
Process (Sep)
innovation products and innovation, but also in enabling in order for their value to be captured
processes: and recaptured.

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efficiency, and more profit company’s exposure to ever more  Greater utility
Economic Growth opportunities for companies. volatile raw materials prices and  Reduce obsolescence
as defined by GDP, would be increased resilience.  Health
achieved mainly through a Environmental and System-Wide
combination of increased revenues Benefits New Demand for Business SYSTEMS
Shifting from linear to circular requires
from emerging circular activities, and Shifting to a circular economy has Services
systemic solutions.
lower cost or production through the possible benefits that reach beyond A circular economy would create
there is no quick remedy, and no
more productive utilization of inputs. the economy and into the natural demand for new business services,
stone should be left unturned. From
world. The circular economy makes such as:
a circular standpoint, business
Material Cost Savings a major contribution to meeting  Collection and reverse logistics
companies that support end-of- models, product and service design,
Based on detailed product-level global climate goals by reducing
use products being regulation, accounting practices,
modelling, it is estimated that, in the waste and emissions, keeping
reintroduced into the system urban planning, agricultural
sectors of complex medium-level goods and resources in use, and
 Product marketers and sales practices, materials extraction,
products (such as mobile phones regenerating rather than destroying
platforms that facilitate longer manufacturing, and more all have
and washing machines) in the UE, natural environments. use or higher utilization of undesirable qualities. However, we
the annual net-material cost savings  Carbon dioxide emissions products
Primary material consumption cannot anticipate improvement by
opportunity cost savings opportunity   Part and component
 Land productivity and soil health changing only one aspect of the
amounts to up to $630 billion. remanufacturing, and product
current structure.
refurbishment offering
The Opportunity for Companies
Job Creation Potential specialized knowledge and
Profit Opportunities services Cradle to Cradle’s three
The largest comparative study to Businesses could lower costs and principles
date of the employment impact of a create new profit streams. Analysis Improved Customer Interaction 1. Cradle to Cradle design is
circular economy transition points to of complex medium-lived products and Loyalty based on natural systems,
“positive employment effects (e g mobile phones) and fast- Circular solutions offer new ways to which have no sense of
occurring in the case that the circular moving consumer goods (e.g. creativity engage customers. New waste and use it as a
economy is implemented.” This household cleaning products) shows business models, such as rentals or resource for anything else.
impact on employment is largely due that the circular economy would leasing contracts, establish long- 2. The use of clean and
to increased spending fueled by support the following improvements: term relationship, as the number of sustainable energy is the
lower prices; high-quality, labor- The cost of remanufacturing
 touch points increases over the second principle.
intensive recycling activities; and mobile phones could be
lifetime of a product. 3. Finally, celebrate diversity:
higher-skilled jobs in reduced by 50% per device
diversity in natural systems
remanufacturing.  High-end washing machines
could be leased instead of The Opportunity for Individuals creates resilience, and it can
sold- customers would save will benefit individuals as well as do the same in human
Innovation
roughly a third per wash, and businesses, the environment, and systems.
The aspiration to replace linear
products and systems with circular
manufacturers would earn the economy as a whole. Individuals
roughly a third more in profits Biomimicry
ones is an enormous creative benefit from a system based on the
“Innovation inspired by nature” - Janine
opportunity. The benefits of a mere principles of circularity in a variety of Benyus
Reduced Volatility and Greater ways, from increased disposable
innovative economy include high Biomimicry is based on the idea that
Security of Supply income to improved living conditions
rates of technological development, life has already solved the majority of
means using less virgin material and and associated health effects.
improved material, labour, energy the problems we are currently facing.
more recycled inputs, reducing a  Increased disposable income

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 holds that by emulating nature's STRATEGIC ENVIRONMENTAL opportunities, and 1. Multiple users and multi-
patterns and strategies, we can ANALYSIS constraints; functionality of environmental
find solutions to human  to gain insight into the systems.
problems.
Strategic Environmental Analysis relations between 2. Objective and subjective
 is a modern science that
(SEAN) environmental key issues value judgements.
explores nature's best ideas and
then imitates these designs and is a structured, participatory process and other dimensions of 3. Limits of acceptable
processes to solve human to analyse environmental problems sustainable development environmental change.
problems, according to Janine and opportunities for development, to (social, economic, 4. Environmental problems as a
Benyus, author of Biomimicry: identify main actors, and to define institutional issues); normative perception.
Innovation Inspired by Nature. strategic goals at early stages.  to define a vision and 5. Social causality of problems
 basically, deals with the strategic goals with relevant and opportunities.
interactions between actors, as inputs for planning 6. Interrelationships between
Industrial Ecology ecosystems and human of sustainable development sustainable development
society, and aims to develop strategies at early stages of components.
The study of material and energy insight in these complex decision making; 7. Opportunities and initiatives
flows through industrial systems. interrelations and agree  to stimulate and provide as strategic building blocks.
which focuses on interactions upon strategic goals. guidance to an interactive 8. Strategic partnerships.
between operators within the  can be defined as a process with actors involved. 9. Micro–meso–-macro
"industrial ecosystem," aims to participatory process being linkages.
create closed-loop processes that structured by an analytical Process and Analytical Framework
use waste as an input, removing framework, to analyse the SEAN consists of a Positioning Strategic
undesirable by-products. environmental problems and participatory process of creating Environmental Analysis
Regenerative Design opportunities for human insights, mutual learning and making  SEAN brings together elements
development, to identify the strategic choices. from different conceptual and
John T. Lyle began implementing main actors involved, and to This process is roughly methodological planning and
regenerative design concepts in the define strategic goals at structured by five phases which can environmental assessment
United States that could be applied early stages of decision be briefly summarized as: backgrounds, and is therefore
to all processes, not just agriculture, making or planning.  Preparation; difficult to position.
where the principle of regeneration  has the long-term objective  Scoping;  SEAN can easily be confused
had already been formulated. to mainstream environmental  Detailed studies; with strategic environmental
issues into development  Synthesis and planning; assessment (SEA).
Blue Economy  Follow-up and monitoring
planning processes by  SEAN aims at early integration
The Blue Economy, founded by raising the level of of environmental issues in
Conceptual and Methodological
former Ecover CEO and Belgian knowledge on the planning processes, to define
Basis
businessman Gunter Pauli, is an environmental context and sustainable strategies, plans
SEAN basically consists of existing
open-source movement that brings its interrelations with the and interventions, SEA would
concepts and methodologies brought
together concrete case studies, other dimensions of assess in greater detail the
together within a logical structure to
which were first collected in an sustainable development. impacts of a plan or strategy
guide a participatory process of
eponymous study presented to the Short-term objectives are: before a decision is being
analysis and planning.
Club of Rome.  to analyze the environmental taken.
context of human
Module 3 development, the

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To work out interrelations between organisations, including the SNV, requirement of stakeholders SUSTAINABLE STRATEGIC
sustainable development Netherlands Directorate General for being able to perceive concrete MANAGEMENT RESOURCE
dimensions, the following final Development Aid (DGIS), Dutch co- issues in their environment and ASSESSMENT
express themselves, and the
goals have been defined: funding organisations, the
requirement of policy makers
 ecological: stability and diversity; International Union for the Creation of Value
being sufficiently informed and
 socio-institutional: autonomy, Conservation of Nature (IUCN) and  Reduce waste
able to negotiate with
health, security, and equity; the World Wildlife Fund (WWF).  Use resource more efficiently
stakeholders (Hoefsloot and van
 economic: production and
den Berg, 1998).  Promote sustainable
efficiency.
Potential Applications and development
Current globalization processes Users Time and budget requirements  Every product should bring in
and changes to the regulatory and
mainly depend on: MORE value than what we
The SEAN process and  the required level of detail TAKE from the environment
institutional frameworks in many
analytical framework has most and the existence and  PROFIT in its truest and
countries further complicate this
availability of relevant data holistic sense
task. SEAN aims to support potential to support and and information (for
integrated analysis and planning, provide inputs in early phases instance, environmental
by:
 being initiated early in the
of policy making or planning action plans, rapid rural Sustainability Maturity Level
processes that are relatively assessments, land-use Purpose:
decision-making process,
surveys);  Increase your awareness on
similar to (spatial) planning; open-ended and have a broad,
 experience and expertise of Sustainability
 actively involving planners holistic sustainable the core SEAN team  Empower you to continue
and decision makers in the development perspective. responsible for execution of your journey
process;
the tasks;  Identify the maturity level of
 generating outputs that are  SEAN has so far been applied
both as an informal and as a  level of application, your organization
useful for planners:
formal planning process. complexity of the situation  Identify next steps
guidelines;
 As a formal process, SEAN has and occurrence of sensitive
 criteria and norms for
been used to support issues; Tools:
environmental management,
decentralised development  effectiveness of local co-  Strategy: The ‘Why,’ your
strategic goals and priorities,
planning. ordination and clarity of purpose and direction
key actors to involve,  SEAN can be applied to ownership.  Are of focus: How you
opportunities and win–win different (administrative or
options, tasks and functions implement initiatives /
planning) areas, to sectors or to
for institutions to fulfil, and so single steps in the planning
SEAN Analysis and Planning programs and your focus
on. process. Process  Effectiveness: How well you
 SEAN particularly addresses 1. Preparation implement, measure, monitor
Experiences and Potential micro-meso-macro dynamics, 2. Scoping and evaluate your initiatives
Application and brings together actors from 3. Detailed studies  Communication: Internal and
SEAN was developed through various institutional levels 4. Synthesis and planning external communication
experiences in a number of (vertical integration) during a 5. Follow-up and monitoring methods and practices
developing countries: Zimbabwe, participatory process (Bass et
al, 1995).
Ghana, Benin and Nicaragua, and Module 4 Resource Management
 The meso-scale is suitable for
has by now been applied under application because it meets the
A resource assessment can be
different conditions, by different defined as the process by which

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resource managers estimate a We apply cutting-edge tools such as  Indicators to measure progress Although hundreds of indicators for
product's future production potential. InVest for assessing, valuing, and in productivity of the use of tracking resource use have been
mapping priority ecosystem services resources (resource developed, only a few are used to
productivity), e.g. €/kg
Natural Resources Assessment to understand their distributions, set concrete, quantitative targets.
 Indicators to evaluate the
and Management Services threats, value, amongst others. With the exception of GHG
environmental impact of the use
Natural resources (or Natural Capital) of specific resources, e.g. emissions and renewable energy, an
provide factories with raw materials, A systems approach to the impact/kg analysis of resource use and
provide livelihoods for people, and evaluation of natural resource  Indicators to measure progress resource usage related goals in EU
generate revenue for economies. management initiatives in reducing the ecological stress Member States, Australia, Canada,
Adopting a new paradigm for natural of resource use (eco-efficiency), China, Japan, Switzerland, and the
resource and environmental policy e.g. €/impact United States reveals that strategic
that emphasizes constant change, priorities for resource use appear to
adaptation, and learning Three Sets of Information be common in nature.
necessitates a new approach to 1. the sources and quantities of
Services include but are not assessment in order to strengthen resource usage
limited to; Water resources how these programs lead to 2. the socioeconomic benefits
assessment and management sustainable resource use. we reap from them Resource use related
Evaluate, design, and enforce 3. the environmental effects of environmental impact indicators
sustainable water resource Assessment of resource efficiency all life cycle stages. The most popular indicators for
management strategies at the basin indicators and targets reporting on the environmental
or site level, taking into account Indicators are used to discuss and Resource use indicators impacts of resource use are
environmental, economic, and social draw attention to important problems The quantity, availability, and environmental accounts and
factors. - or, to put it another way, "what gets efficiency of natural resources are indicators based on life cycle
measured gets handled." the key problems of unsustainable inventory data.
Land-use change and Landscape resource use.
dynamics DPSIR framework Approaches to proposing targets
Landscapes are ever-changing and To define and structure Environmental impact indicators for policy
complex. Land-cover changes arise environmental indicators for policy In addition to affecting natural Targeted policy can be an effective
as a result of both natural and use, the DPSIR system is used. It's resource supplies, resource usage tool for coping with environmental
anthropogenic factors, such as land- useful for explaining the connections has an effect on the climate and concerns.
use change. between the use of natural human health as a result of a series
resources, their effects on the of changes in the natural There are several approaches to
Human-wildlife conflict and ecosystem, and resource efficiency environment. goal-setting, and four viewpoints
Bushmeat Management challenges. have been listed among them.
Human-wildlife conflicts (HWC) and Socio-economic indicators  The perspective of limitations
bushmeat trade are two of the most Resource efficiency indicators Traditional resource valuation has to the resource base
serious challenges to Africa's The Commission’s Thematic been based on economic market  The perspective of limitations
protected areas management. Strategy on the Sustainable Use of value, which is calculated by supply to absorption capacities of
Natural Resources defined three and demand. the earth’s ecosystems
Ecosystem services surveys, types of indicators needed to  The perspective of efficient
analysis, and mapping measure resource efficiency: Existing resource use and and equitable resource
resource efficiency targets supply for people

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 The perspective of efficient

and equitable resource
supply for economies

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