MAC 301
SUSTAINABILITY AND
STRATEGIC AUDIT
ALPINE SKI HOUSE
MAC 301– MODULE 6
INTEGRATED
MANAGEMENT FOR
CAPITAL MARKETS AND
STRATEGY: VALUE VS
VALUES
ALPINE SKI HOUSE
INTEGRATED
REPORTING
ALPINE SKI HOUSE
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.
ALPINE SKI HOUSE
INTEGRATED REPORTING
• Organizational Overview
• External Environment
• Governance
• Strategy
• Performance (Financial and Non-financial)
• Risk and Opportunities
• Stakeholder Engagement
• Future Outlook
• Value Creation Story
ALPINE SKI HOUSE
ALPINE SKI HOUSE
ALPINE SKI HOUSE
CHALLENGES IN INTEGRATED REPORTING
LIMITED ESG FOCUS
LACK OF STANDARDIZATION
ANALYTICAL MISALIGNMENT
ALPINE SKI HOUSE
INTEGRATED
MANAGEMENT
ALPINE SKI HOUSE
ROLE OF
PERFORMANCE
MANAGEMENT
CHALLENGES WITH
ESG REPORTING
INTEGRATED INTERNAL VS. EXTERNAL
MANAGEMENT FOCUS
BUILDING AN INTEGRATED
MANAGEMENT APPROACH
ALPINE SKI HOUSE
SUSTAINABLE STRATEGY MAP
ALPINE SKI HOUSE
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
ALPINE SKI HOUSE
INTEGRATED MANAGEMENT PROCESS
ALPINE SKI HOUSE
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
ALPINE SKI HOUSE
MAC 301– MODULE 6
INTEGRATED
MANAGEMENT FOR
CAPITAL MARKETS AND
STRATEGY: VALUE VS
VALUES
ALPINE SKI HOUSE
MAC 301– MODULE 7
STRATEGY DESIGN FOR
FLOURISHING: A ROBUST
METHOD
ALPINE SKI HOUSE
TOPIC OUTLINE:
• Discuss the step-by-step Flourishing Enterprise
Strategy Design Method
ALPINE SKI HOUSE
“If you fail to plan, you plan to fail.”
ALPINE SKI HOUSE
FLOURISHING ENTERPRISE STRATEGY DESIGN ALPINE
METHOD SKI HOUSE
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).
ALPINE SKI HOUSE
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.
ALPINE SKI HOUSE
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.
ALPINE SKI HOUSE
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?"
ALPINE SKI HOUSE
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).
ALPINE SKI HOUSE
Understanding ABCD Strategy Design Process
FORECASTING BACKCASTING
ALPINE SKI HOUSE
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
ALPINE SKI HOUSE
Understanding ABCD Strategy Design Process
B
Baseline Current State
• Describing the current business model
• Finding quick wins
• Comparing with the inspiring vision
ALPINE SKI HOUSE
Understanding ABCD Strategy Design Process
C
Creative Solutions
• Identifying areas for change and
innovation
• Generating creative solutions
• Sketching possible future business
models
ALPINE SKI HOUSE
Understanding ABCD Strategy Design Process
D
Get Down-to-Action
• Choosing the best next business model
• Testing and refining the model
• Implementing the changes
ALPINE SKI HOUSE
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.
ALPINE SKI HOUSE
FLOURISHING ENTERPRISE STRATEGY DESIGN ALPINE
METHOD SKI HOUSE
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.
ALPINE SKI HOUSE
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?
ALPINE SKI HOUSE
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.
ALPINE SKI HOUSE
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.
ALPINE SKI HOUSE
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
ALPINE SKI HOUSE
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.
ALPINE SKI HOUSE
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.
ALPINE SKI HOUSE
THE FLOURISHING BUSINESS CANVAS
It is a strategic tool that helps
organizations design business
models that are socially
beneficial, environmentally
responsible, and financially
viable.
ALPINE SKI HOUSE
THE FLOURISHING BUSINESS CANVAS
How It Differs from Traditional Business Models:
ALPINE SKI HOUSE
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.
ALPINE SKI HOUSE
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
ALPINE SKI HOUSE
GREEN SPOON CAFE
ALPINE SKI HOUSE
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.
ALPINE SKI HOUSE
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.
ALPINE SKI HOUSE
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.
ALPINE SKI HOUSE
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
ALPINE SKI HOUSE
UP NEXT…
MODULE 8:
The Inequality-Aware
Organization
ALPINE SKI HOUSE
MAC 301– MODULE 8
THE INEQUALITY-AWARE
ORGANIZATION
ALPINE SKI HOUSE
TOPIC OUTLINE:
• Analyze the underlying causes of inequality.
• Identify the areas where inequality is prevalent.
• Propose strategic solutions aimed at reducing or
eliminating inequality.
ALPINE SKI HOUSE
INEQUALITY
ALPINE SKI HOUSE
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.
ALPINE SKI HOUSE
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.
ALPINE SKI HOUSE
WHY BUSINESSES SHOULD CARE
Where does
inequality happen Why does it matter for
inside and around the the business?
business?
ALPINE SKI HOUSE
LOCI OF INEQUALITY
ALPINE SKI HOUSE
LOCI OF INEQUALITY
ALPINE SKI HOUSE
ORGANIZATIONAL LOCI
• Top Executives vs. Regular
Employees (Locus 1a)
• Shareholders/Executives
vs. Employees (Locus 1b)
• Company vs. Consumers
(Locus 1c)
ALPINE SKI HOUSE
LOCI OF INEQUALITY
ALPINE SKI HOUSE
INTER-ORGANIZATIONAL LOCI
• Global Supply Chains
(Locus 2a)
• Finance vs. Non-Finance
Firms (Locus 2b)
• Strong vs. Weak
Competitors (Locus 2c)
ALPINE SKI HOUSE
LOCI OF INEQUALITY
ALPINE SKI HOUSE
MACRO LOCI
• Company vs. Public (Locus
3a)
• Company vs. Government
(Locus 3b)
ALPINE SKI HOUSE
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.
ALPINE SKI HOUSE
THE LTG MATRIX: HOW
INEQUALITY AFFECTS
BUSINESS SUCCESS
ALPINE SKI HOUSE
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?
ALPINE SKI HOUSE
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.
ALPINE SKI HOUSE
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.
ALPINE SKI HOUSE
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.
ALPINE SKI HOUSE
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.
ALPINE SKI HOUSE
MAC 301– MODULE 8
THE INEQUALITY-AWARE
ORGANIZATION
ALPINE SKI HOUSE
UP NEXT…
QUIZ 3:
Module 6-8
MODULE 9:
Value-Based Stakeholder
Management: Concepts and
Methods
May 3-4, 2025
ALPINE SKI HOUSE