Integrating Sustainability as a Core Strategy for Credit Unions

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Integrating Sustainability as a Core Strategy
for Credit Unions
Filene Research Institute Fall Research Council
Meeting Oct. 6-7, 2006 Monica Touesnard Managing
Director, Learning Labs Center for Sustainable
Global Enterprise
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Project Researchers

• Dr. Stuart Hart
• Samuel C. Johnson Chair in Sustainable Global
  Enterprise Professor of Management
• slh55_at_cornell.edu
• Monica Touesnard
• Managing Director of Learning Labs
• mat59_at_cornell.edu

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CSGE
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Project Context
Banks
Credit Unions
Microfinance
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Project Context
Banks
Credit Unions
Microfinance
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Project Objectives

• Identify best practices in sustainability
  within credit unions and other financial
  institutions
• Understand the strategic logic for such
  initiatives
• Suggest possible new product or service ideas
• Articulate how sustainability initiatives will
  serve to differentiate credit unions from
  competitors

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Project Design
14 institutions identified for preliminary
analysis

• Alternatives FCU
• VanCity CU (Can)
• Assiniboine CU (Can)
• Navy FCU
• Michigan State University FCU
• Co-op Bank (UK)
• Grameen Bank (Bangladesh)

• MECU (Australia)
• Shore Bank
• Chittenden Bank
• Johnson Bank
• Self-Help CU
• Global Reporting Initiative
• National Credit Union Foundation

Primary archival research Semi-structured
interviews References from interviewees
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Sustainability Framework
Tomorrow
Growth Trajectory
Innovate and Reposition
SV
Internal
External
Establish Reputation and the Right to Operate
Reduce Costs Risk
Today
Source Hart Milstein (2003), Creating
Sustainable Value
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Sustainability Framework
Tomorrow
Exploration Disruptive Innovation Creative
Destruction
Divergent Thinking Diverse Perspectives Stakeholde
r Leadership
Increase Discovery
Information Sharing
Growth Trajectory
Innovate and Reposition
SV
Internal
External
Establish Reputation and the Right to Operate
Reduce Costs Risk
Information Dissemination
Increase Productivity
Exploitation Incremental Change Continuous
Improvement
Convergent Thinking Transparency Stakeholder
Management
Today
Source Hart Milstein (2003), Creating
Sustainable Value
10
Sustainability Framework
Tomorrow
Exploration Disruptive Innovation Creative
Destruction
Divergent Thinking Diverse Perspectives Stakeholde
r Leadership
Increase Discovery
Information Sharing
Growth Trajectory
Innovate and Reposition
SV
Internal
External
Establish Reputation and the Right to Operate
Reduce Costs Risk
Information Dissemination
Increase Productivity
Exploitation Incremental Change Continuous
Improvement
Convergent Thinking Transparency Stakeholder
Management
Today
Source Hart Milstein (2003), Creating
Sustainable Value
11
Data to Date
Tomorrow
Innovate and Reposition
Growth Trajectory
SV
Internal
External
Establish Reputation and the Right to Operate
Reduce Costs Risk
Recycling Energy efficiency programs Green
building initiatives (LEED certification)
Community grants Community work
days Philanthropic giving Reporting
Today
Source Hart Milstein (2003), Creating
Sustainable Value
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Data to date
Tomorrow

• Access to Financial Services
• Individual Development
• Accounts (IDA)
• Peer/Group Lending
• Microcredit Solutions
• Immigrant Services

• Climate Change Solutions
• Clean Air Auto Solutions
• Green Business Loans
• Green Building Loans
• Home Energy Savings
• Solutions

Innovate and Reposition
Growth Trajectory
SV
Internal
External
Establish Reputation and the Right to Operate
Reduce Costs Risk
Recycling Energy efficiency programs Green
building initiatives (LEED certification)
Community grants Community work
days Philanthropic giving Reporting
Today
Source Hart Milstein (2003), Creating
Sustainable Value
13
Moving Forward

• Thoughts?
• Reactions?
• Suggestions?

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• Thank you!