University of Vaasa - Vaasan yliopisto

A NEW SUSTAINABILITY MANAGEMENT SYSTEM
MODEL FOR GLOBAL BUSINESS ORGANISATIONS
Abstract
I. Sealy,
W. Wehrmeyer &
M. Leach
Centre for Environmental Strategy, University of Surrey, UK
Our recent work on the sustainability management requirements of global business organizations
(GBOs), and on the limitations of existing management system models has identified the need for
a new model. As a result, this paper presents a new sustainability management system (SMS) for
implementation in GBOs. The SMS is based on plan-do-check-act (PDCA) principles, and
incorporates best practice that has been identified in a number of established public domain
SMSs. In addition, the model includes features that facilitate engagement of stakeholders and
processes throughout the entire business value chain. Furthermore, the scope of the SMS is
expanded from the established ‘triple-bottom-line’ to a broader set of six aspects. Although the
SMS is intended for application in GBOs its use is not necessarily limited to these organizations,
and the paper discusses the potential for alternative implementation. This paper presents the
model, including a detailed and integrated benchmarking and maturity-testing tool.
Keywords: Sustainability Management System, Global Businesses
Introduction
The process of globalization in the 20 th century saw the emergence of what are
variously termed trans-national corporations (TNCs), multinational corporations
(MNCs), or global business organizations (GBOs). Bishop (2008) foresees the
emergence of ‘a new breed of global companies, rooted in neither rich nor
developed countries but aiding wealth creation by making the most of opportunities
the world over’ (Bishop, p6, 2008). In order to more clearly assess the need for a new
management system that is specific to GBOs, we first propose a new definition of a
GBO that embraces a broad range of financial and non-financial organizational
attributes. This definition is then used to briefly analyze the requirements for a
sustainability management system in a GBO. The new management system draws on
much existing practice (Deming Plan-Do-Check-Act, etc.) but also introduces
features that are intended to address the specific needs of a GBO. We further
recognize that a management system model is, on its own not a practical tool as it
describes (or proposes) a set of processes but does not in itself provide guidance on
implementation in an organization. Therefore we have also developed a detailed
benchmarking and maturity testing matrix to assist with the implementation of the
system.
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