Page 194 - Performance Leadership

Chapter 10 The Social Role of Organizations • 183

Metso is already a major environmental technology provider. Over
50 percent of its sales can be classified as environmental business. It is
interesting to see that Metso describes its value proposition as a close
match between environmental and financial benefits; it positions its
products as having high “eco- and energy-efficiency.” Metso’s solutions
play a central role in reducing its customers’ environmental impacts.
Although the environmental impacts of its own operations are small,
Metso needs to practice what it preaches and show its customers it is
focused on environmental and social issues, next to economic health.
For years now, Metso has had a comprehensive corporate social respon-
sibility strategy, sustainable development management (SDM). SDM
focuses on the “triple P” bottom line: people, planet and profit. Metso
has a social, environmental, and economic responsibility.
Metso sees SDM as part of its risk management. Not in the tradi-
tional sense of financial, operational, or PR risk, but in terms of strate-
gic risk. Lost opportunities are also risks. Environmental aspects affect
Metso’s operations over the long term through its customers. By sys-
tematically monitoring the development of environmental issues, Metso
strives to find new business opportunities, which, if overlooked, would
pose a strategic threat. Some strategic risks are related to competence
development and employer image. All of Metso’s businesses focus on
innovation as a competitive differentiator. This requires the retention
of high-quality staff.
This approach allows Metso to link CSR closely to its core business,
selling equipment and machinery. For Metso corporate social respon-
sibility is good business. Like every public company, the most impor-
tant objective of Metso’s strategy is sustainable and profitable annual
growth. Metso’s focus on CSR helps achieve that objective. Stricter
emissions restrictions affect the operations of Metso’s customers. The
growing demand for energy and rising oil prices drive the need to
improve production efficiency and to produce energy through alter-
native means. Increasingly tougher environmental legislation may pres-
ent new business opportunities for Metso.
The growth of the company presents challenges for the development
of Metso’s staff. The controlled transfer of know-how to new markets is
important. Human resources needs to make sure that the right people
are in the right jobs, that Metso’s know-how meets the changing needs