The case of multinational ABB, the development of its sustainable development strategy, and its dilemma in the supply of hydropower dam projects. Adam Roscoe, head of sustainability at ABB Group, was to assess the content and consequences of business letter, a non-profit organization (NGO), International Rivers. The letter discusses the alleged violations of sustainability criteria in the construction of the Nam Theun 2 dam in Laos. Roscoe needs to assess what the implications were for writing ABB. ABB has a large share in the results of the project. As ABB was well developed sustainable practices in its core business, such letters are known from large NGOs can influence the policy of ABB and practice in sustainable development. On the one hand, the World Bank and the Asian Development Bank was a major stake in the project to be successful in its environmental and social aspects. The dam project would be the country's much-needed economic development: the provision of rural areas of Laos and Thailand with electricity, resulting in a large source of income that will be used as part of poverty reduction programs in Laos, and finally, the provision of non-through carbon energy source. On the other hand, ABB had to consider the position of stakeholders, including customers, investors, the media and NGOs. If ABB was associated with dam projects that do not comply with international standards set by the World Bank and the Equator Principles Financial Institutions, the company could face a reputation risks associated with the project. This can lead to negative publicity and possibly loss of business. Thus Adam was faced with two intertwined questions: Will the letter of international rivers "is a reputational risk for ABB? What this means for example ABB sustainability criteria and objectives and whether it will be recognized, and if so, how?" Hide
by Timo Busch, Vincent Dessain, Kathleen McCarthy Source: Richard Ivey School of Business Foundation 21 pages. Publication Date: November 30, 2011. Prod. #: W11540-PDF-ENG
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