Hp Sustainability
Sustainability at ^ Hewlett-Packard:
FROMTHEORYTO PRACTICE
Lynelle Preston
"The Internet and related information technologies hold the promise of rapid, sustainable economic growth that directly benefits everyone on the planet. However, the same forces could also trigger traumatic social, environmental and economic disruption. . . . If technology firms simply follow strategies of maximizing short-term shareowner value by encouraging maximum consumption of products by customers, we exacerbate two of the most significant issues facing the planet today: damage to the natural ecosystem that sustains life for all of us, and the exclusion from participation in the world economy of most of the world's population." —Carly Fiorina, CEO, Hewlett-Packard
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26
ustainability has become a strategic imperative for all businesses in the 21st century. It has become a fundamental market force affecting longterm financial viahility and success. Customers are requiring sustainable husiness practices. Shareholders are using "sustainability" as a measure of financial success and are developing sustainability indices.' Stakeholder groups are organizing conferences and partnerships to raise awareness and encourage sustainable business practices between the private sector and consumers.
At its core, the concept of sustainability is about recognizing that the world is a closed rather than boundless system, with limits that modern society is heginning to approach. The traditional definition of sustainability from the World Commission of Environment and Development is: "Sustainahle development is the ability of current generations to meet their needs without compromising the ability of future generations to meet theirs."
GALIFORNIA MANAGEMENT REVIEW
VOL. 43, NO. 3
SPRING 2001
Sustainability at Hewlett-Packard: From Theory t o Practice
Hewlett-Packard has been evolving through three distinct phases of environmental sustainability over the past two decades. In
FROMTHEORYTO PRACTICE
Lynelle Preston
"The Internet and related information technologies hold the promise of rapid, sustainable economic growth that directly benefits everyone on the planet. However, the same forces could also trigger traumatic social, environmental and economic disruption. . . . If technology firms simply follow strategies of maximizing short-term shareowner value by encouraging maximum consumption of products by customers, we exacerbate two of the most significant issues facing the planet today: damage to the natural ecosystem that sustains life for all of us, and the exclusion from participation in the world economy of most of the world's population." —Carly Fiorina, CEO, Hewlett-Packard
S
26
ustainability has become a strategic imperative for all businesses in the 21st century. It has become a fundamental market force affecting longterm financial viahility and success. Customers are requiring sustainable husiness practices. Shareholders are using "sustainability" as a measure of financial success and are developing sustainability indices.' Stakeholder groups are organizing conferences and partnerships to raise awareness and encourage sustainable business practices between the private sector and consumers.
At its core, the concept of sustainability is about recognizing that the world is a closed rather than boundless system, with limits that modern society is heginning to approach. The traditional definition of sustainability from the World Commission of Environment and Development is: "Sustainahle development is the ability of current generations to meet their needs without compromising the ability of future generations to meet theirs."
GALIFORNIA MANAGEMENT REVIEW
VOL. 43, NO. 3
SPRING 2001
Sustainability at Hewlett-Packard: From Theory t o Practice
Hewlett-Packard has been evolving through three distinct phases of environmental sustainability over the past two decades. In