MAC 301

SUSTAINABILITY AND
STRATEGIC AUDIT

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 MAC 301– MODULE 6

INTEGRATED
MANAGEMENT FOR
CAPITAL MARKETS AND
STRATEGY: VALUE VS
VALUES

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INTEGRATED
REPORTING

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INTEGRATED REPORTING

It provides a holistic view of

an organization's
performance, combining
both financial and non-
financial information, such as
Environmental, Social, and
Governance (ESG) factors, to
give stakeholders a clearer
picture of how the company
creates value over time.

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INTEGRATED REPORTING

• Organizational Overview
• External Environment
• Governance
• Strategy
• Performance (Financial and Non-financial)
• Risk and Opportunities
• Stakeholder Engagement
• Future Outlook
• Value Creation Story

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ALPINE SKI HOUSE
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CHALLENGES IN INTEGRATED REPORTING

LIMITED ESG FOCUS

LACK OF STANDARDIZATION

ANALYTICAL MISALIGNMENT

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INTEGRATED
MANAGEMENT

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 ROLE OF
PERFORMANCE
MANAGEMENT

CHALLENGES WITH
ESG REPORTING

INTEGRATED INTERNAL VS. EXTERNAL

MANAGEMENT FOCUS

BUILDING AN INTEGRATED
MANAGEMENT APPROACH

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SUSTAINABLE STRATEGY MAP
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 ROLE OF
PERFORMANCE
MANAGEMENT

CHALLENGES WITH
ESG REPORTING

INTEGRATED INTERNAL VS. EXTERNAL

MANAGEMENT FOCUS

SETTING INTEGRATED BUILDING AN INTEGRATED

TARGETS MANAGEMENT APPROACH

ALIGNING CORPORATE
AND BUSINESS UNIT
STRATEGIES
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INTEGRATED MANAGEMENT PROCESS
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 ROLE OF
PERFORMANCE
MANAGEMENT

LEADERSHIP BEHAVIOR CHALLENGES WITH

AND PERFORMANCE ESG REPORTING
MANAGEMENT

SUPPORT FROM INTEGRATED INTERNAL VS. EXTERNAL

CORPORATE LEADERSHIP MANAGEMENT FOCUS

SETTING INTEGRATED BUILDING AN INTEGRATED

TARGETS MANAGEMENT APPROACH

ALIGNING CORPORATE
AND BUSINESS UNIT
STRATEGIES
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 MAC 301– MODULE 6

INTEGRATED
MANAGEMENT FOR
CAPITAL MARKETS AND
STRATEGY: VALUE VS
VALUES

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 MAC 301– MODULE 7

STRATEGY DESIGN FOR

FLOURISHING: A ROBUST
METHOD

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TOPIC OUTLINE:
• Discuss the step-by-step Flourishing Enterprise
Strategy Design Method

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“If you fail to plan, you plan to fail.”

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FLOURISHING ENTERPRISE STRATEGY DESIGN ALPINE
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FLOURISHING ENTERPRISE STRATEGY DESIGN METHOD

It is about designing business

models that don't just make
money, but also care for
people (social) and the planet
(environmental), not just
profits (financial).

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Understanding BUSINESS MODELLING

It is the core of the Flourishing

Enterprise Strategy Design
Method. It is a collaborative
process where stakeholders
work together to understand
how a business currently
operates and to design
improved business models for
the future.

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Understanding BUSINESS MODELLING

A business model is just a

story + numbers explaining:

➔ Who is involved,
➔ What the business does,
➔ How it works,
➔ How success is measured.

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Understanding BUSINESS MODELLING
Task Definition Question
"Who wins or loses because this business
Find out who cares about or is affected by
1. Determine the Stakeholders exists? Think beyond customers — think
the business (positively or negatively).
community, workers, nature."

"Not everyone has the same power. Who

Decide who gets a say and how
2. Establish Governance controls what? How do we make sure
decisions are made.
different voices are heard?"

Define what success means socially, "What do we want to achieve — for people,
3. Set the Goals
environmentally, and financially. the planet, and profit?"
Find where the business helps (creates
4. Develop Value Co-Creations and Co- "How do we make lives better — and
value) and hurts (destroys value)
Destructions where might we accidentally cause harm?"
stakeholders.
Describe how the business will run
"What are the key moves the business
(partners, resources, activities),
5. Determine the Processes needs to make, and what resources do we
considering social, environmental, and
need?"
financial aspects.

Decide how we will track success across "How do we know if we are doing well for
6. Agree on the Measures
all three areas. people, planet, and profits?"

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FLOURISHING ENTERPRISE STRATEGY DESIGN ALPINE
METHOD SKI HOUSE
Understanding ABCD Strategy Design Process

It is about helping businesses

create a sustainable future
by working backward from a
vision rather than just
following past trends. It's an
iterative process (repeats and
improves over time).

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Understanding ABCD Strategy Design Process

FORECASTING BACKCASTING

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Understanding ABCD Strategy Design Process

A
Appreciate and Define Success
• Understanding current values and goals
• Developing an inspiring vision
• Exploring successful businesses
• Creating an ideal business model

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Understanding ABCD Strategy Design Process

B
Baseline Current State
• Describing the current business model
• Finding quick wins
• Comparing with the inspiring vision

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Understanding ABCD Strategy Design Process

C
Creative Solutions
• Identifying areas for change and
innovation
• Generating creative solutions
• Sketching possible future business
models

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Understanding ABCD Strategy Design Process

D
Get Down-to-Action
• Choosing the best next business model
• Testing and refining the model
• Implementing the changes

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Why ABCD Strategy Design Process is important?

Structured & strategic – No more guessing; it creates a clear plan.

Encourages stakeholder collaboration – Customers, suppliers,

employees, and investors all shape the future.

Makes businesses sustainable & competitive – Innovation keeps

companies ahead of industry changes.

Backcasting mindset – Focuses on creating the best future instead of

reacting to the past.

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FLOURISHING ENTERPRISE STRATEGY DESIGN ALPINE
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Understanding Prioritizing Questions and the
Viability Frontier

The four prioritizing

questions help stakeholders
select the most strategic and
viable Next business model.

These questions ensure that

each candidate business
model aligns with the
organization’s long-term vision
while remaining feasible in the
short term.

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Understanding Prioritizing Questions and the
Viability Frontier

Question What it means

1. Does it align with our shared values and Is this idea true to what we believe in and our
inspiring vision? dream future?
2. Does it move our enterprise decisively
Will this business model clearly push us
towards the inspiring vision set by those with the
forward, not sideways or backwards?
governance rights to do so?

3. Does it provide a flexible platform, opening up

Will it keep options open instead of locking us
possibilities in the future for the subsequent legs
into a bad path?
of the journey toward the inspiring vision?

4. Does it provide a sufficient level of viability for

Can we survive financially while building this
the enterprise to survive so it can iterate towards
model?
the inspiring vision over time?

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Understanding Prioritizing Questions and the
Viability Frontier

Viability Frontier
It represents the limit of feasibility for
any given business model. It is the
threshold where a business model
remains sustainable and practical—
beyond this point, the risks and costs
outweigh the potential benefits,
threatening the enterprise's survival.

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Understanding Prioritizing Questions and the
Viability Frontier

Viability Frontier
Risk vs. Reward: If it costs too much or
won't earn enough soon enough → it’s
beyond the frontier.

Market Readiness: Customers or

regulators might not be ready yet.

Evolving Frontier: As tech improves,

customers change, or you gain experience,
the fence moves outward — more is possible
later.

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FLOURISHING ENTERPRISE STRATEGY DESIGN ALPINE
METHOD SKI HOUSE
Understanding the Foundations to Realize the Benefits of the
Flourishing Imperative

The Flourishing Imperative is

about helping businesses
succeed financially, socially,
and environmentally — all at
once.

To make that happen, it stands

on two foundations:
1. Principles of the Flourishing
Imperative
2. Flourishing Business
Canvas
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PRINCIPLES OF THE FLOURISHING IMPERATIVE

It serve as guiding constraints

that help stakeholders assess
whether an enterprise is truly
sustainable and whether its
Next business model is an
improvement over the
current state.

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PRINCIPLES OF THE FLOURISHING IMPERATIVE
Principle Simple Meaning
Business is part of bigger systems (society,
Systems-Based Thinking
environment).

Strong Sustainability Stay within Earth’s limits.

Multi-Capital Integration Manage money, people, and nature together.

Regenerative Design Don’t just “do less harm” — restore.

Ethical and Human Rights Alignment Treat everyone fairly and with dignity.

Stakeholder-Centered Governance Listen to and care for everyone impacted.

Long-Term Thinking & Resilience Plan 20–30 years ahead and stay adaptable.

Make sure the business can survive and

Viability & Thrivability
thrive.
Science-Based Decision-Making Use facts, not guesses.

Continuous Learning & Evolution Keep improving forever.

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THE FLOURISHING BUSINESS CANVAS

It is a strategic tool that helps

organizations design business
models that are socially
beneficial, environmentally
responsible, and financially
viable.

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THE FLOURISHING BUSINESS CANVAS

How It Differs from Traditional Business Models:

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THE FLOURISHING BUSINESS CANVAS
How the Flourishing Business Canvas Works:
Feature What It Means
16 questions to think
Guiding Questions deeply about the
business.
Economic, Social,
Three Contexts Environmental thinking —
all at once.
Outcomes (why), People
Four Perspectives (who), Value (what),
Process (how/where).
Stakeholders brainstorm
Collaborative Approach together using sticky
notes.
You don’t fill it out once —
Supports Iteration
you keep improving it.

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THE FLOURISHING BUSINESS CANVAS

Benefits of Using the Flourishing Business Canvas

• Identifying Hidden Interconnections
• Aligning Stakeholder Needs
• Minimizing Harm
• Reducing Unintended Consequences

Challenges and Limitations

• Scaling Beyond a Single Business

• Ignoring Power Structures
• Long-Term Vision vs. Short-Term Strategy
• Conflicts Between Business Models

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GREEN SPOON CAFE

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EXAMPLE: GREEN SPOON CAFE
1. Business Modelling with the Flourishing Enterprise Method

Stakeholders: Customers, farmers, employees, local community, the environment.

Governance: Owners + employees + community members have a say.
Goals: Be financially successful, improve local soil health, provide healthy
affordable food.
Value Co-Creations: Delicious food, community pride, healthy living.
Value Co-Destructions: Possible gentrification or pricing out locals — so must be
careful.
Processes: Sourcing from regenerative farms, zero-waste kitchens.
Measures: Profit, employee satisfaction, soil health improvement scores.

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EXAMPLE: GREEN SPOON CAFE
2. ABCD Strategy Design Process

Step Green Spoon Café Example

Vision: In 20 years, all local cafes use
A - Appreciate and Define Success
regenerative sourcing and no waste.
Current cafés mostly use non-organic suppliers
B - Baseline Current State
and create lots of waste.
Ideas: composting programs, partnerships with
C - Creative Solutions
urban farms, eco-workshops for customers.
Start with a small eco-café pilot project in one
D - Down-to-Action
community hub for 12 months.

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EXAMPLE: GREEN SPOON CAFE
3. Prioritizing Questions & Viability Frontier

When choosing what first steps to take, they ask:

Align with vision? → Yes, regenerative food and zero waste.

Move us toward the vision? → Yes, educating community and setting an
example.
Flexible platform? → Yes, can expand to catering, eco-events later.
Sufficient viability? → Starting small keeps costs manageable.

Viability Frontier:
If they tried to open 10 locations at once, it would be too risky and beyond the
Viability Frontier.

Starting with one eco-café keeps it viable and allows learning.

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EXAMPLE: GREEN SPOON CAFE
4. Foundations of the Flourishing Imperative
Principle Green Spoon Café Example
Understands it affects farmers, community, waste
Systems-Based Thinking
systems.
Strong Sustainability Only sources from farms that regenerate the soil.
Measures success in money, community well-
Multi-Capital Integration
being, and environmental health.
Regenerative Design Café composts waste, builds urban gardens.
Pays all workers a living wage and supports local
Ethical and Human Rights Alignment
employment.
Community members vote on major café
Stakeholder-Centered Governance
decisions.
Has a 30-year plan to spread regenerative cafés
Long-Term Thinking & Resilience
city-wide.
Keeps business profitable and builds long-term
Viability & Thrivability
flourishing.
Science-Based Decision-Making Tracks soil health, CO₂ savings with real data.
Runs yearly community feedback sessions to
Continuous Learning & Evolution
adjust operations. ALPINE SKI HOUSE
 MAC 301– MODULE 7

STRATEGY DESIGN FOR

FLOURISHING: A ROBUST
METHOD

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UP NEXT…
MODULE 8:
The Inequality-Aware
Organization

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 MAC 301– MODULE 8

THE INEQUALITY-AWARE
ORGANIZATION

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TOPIC OUTLINE:

• Analyze the underlying causes of inequality.

• Identify the areas where inequality is prevalent.
• Propose strategic solutions aimed at reducing or
eliminating inequality.

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INEQUALITY

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INEQUALITY

Inequality means an unfair or

uneven distribution of resources,
opportunities, or treatment among
people or groups.

It happens when some people have

much more wealth, income, power,
or access to good jobs, education,
and healthcare than others — often
without a fair reason.

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WHY BUSINESSES SHOULD CARE

• Businesses don’t exist in a bubble. They operate in environments

where people now care a lot more about fairness, equity, and social
justice.

• If a company is seen as making inequality worse (even without

meaning to), it can hurt its reputation, make it harder to attract
talent, lose customers, or even face regulations.

• But if a company actively helps to reduce inequality, it can build

trust, loyalty, and long-term success.

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WHY BUSINESSES SHOULD CARE

Where does
inequality happen Why does it matter for
inside and around the the business?
business?

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LOCI OF INEQUALITY

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LOCI OF INEQUALITY

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ORGANIZATIONAL LOCI

• Top Executives vs. Regular

Employees (Locus 1a)

• Shareholders/Executives
vs. Employees (Locus 1b)

• Company vs. Consumers

(Locus 1c)

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LOCI OF INEQUALITY

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INTER-ORGANIZATIONAL LOCI

• Global Supply Chains

(Locus 2a)

• Finance vs. Non-Finance

Firms (Locus 2b)

• Strong vs. Weak

Competitors (Locus 2c)

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LOCI OF INEQUALITY

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MACRO LOCI

• Company vs. Public (Locus

3a)

• Company vs. Government

(Locus 3b)

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WHY THIS MATTERS

The goal is for companies to become an "Inequality-Aware

Organization" — one that doesn't ignore inequality, but
actively works to reduce it.

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THE LTG MATRIX: HOW
INEQUALITY AFFECTS
BUSINESS SUCCESS

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THE LTG MATRIX

LEGITIMACY

L Does inequality make people question whether my business should

even exist?

TRUST

T Does inequality create distrust between employees, customers, or

business partners?

G
GROWTH

Does inequality limit my company's future success and profits?

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THE LTG MATRIX

L
Legitimacy means society accepting a business as fair and
beneficial. If a company is seen as exploitative or unfair, people
start questioning whether it should exist in its current form.

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THE LTG MATRIX

T
Trust means employees, customers, and business partners
believe a company treats them fairly. When inequality creates
distrust, teamwork and creativity suffer.

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THE LTG MATRIX

G
Growth means a company can keep expanding and making
profits. If inequality reduces demand or creates instability, the
company struggles to grow.

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HOW BUSINESSES CAN ENGAGE: THE THREE LEVERS

Once businesses understand inequality, they can do something using

these three "levers":

Lever What it Means Example

Be honest about inequality data
Publish pay ratios, employee
Information Lever (like pay gaps). Create ways to
treatment reports.
measure it.
Choose suppliers who treat
Build inequality awareness into
Formulation Lever workers fairly. Plan for long-
strategies and plans.
term fairness.
Make sure daily actions reduce
Collect real feedback (not just
Execution Lever inequality. Listen to affected
numbers) before big decisions.
people.

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 MAC 301– MODULE 8

THE INEQUALITY-AWARE
ORGANIZATION

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UP NEXT…
QUIZ 3:
Module 6-8

MODULE 9:
Value-Based Stakeholder
Management: Concepts and
Methods
May 3-4, 2025

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