New World Development: Balancing Sustainability and Financial Stability

內容大綱
In January 2023, the chief executive officer of New World Development Co. Ltd. (New World Development) faced a critical decision. With travel set to resume between Hong Kong and Mainland China, opportunities and challenges emerged in the post-pandemic era. An impending board meeting in February demanded a delicate balance between environmental, social, and governance (ESG) initiatives and the company’s financial health. Financial data revealed significant spending on ESG efforts, posing cash flow challenges. The CEO grappled with critical questions: Should ESG spending be cut to fuel post-pandemic investments? Could New World Development’s ESG image, cultivated amid COVID-19, be a competitive advantage with evolving travel patterns? Before the board meeting, he had to decide on a strategy to balance financial stability with sustainable innovation.
學習目標
The case can be used in senior undergraduate- or graduate-level courses on business strategy, ESG management, innovation and governance, and sustainable business practices. The case is also well suited for executive audiences who are working in sustainability or an ESG-related field. After working through the case and assignment questions, students will be able to do the following:<br><br><ul><li>Understand sustainability management practices and the impacts of sustainable values in developing an organizational strategy.</li><li>Assess a company’s mission and values and identify its key competitive advantages.</li><li>Understand how to prioritize ESG spending when a company has poor financial performance relative to competitors.</li><li>Analyze how a company addresses value propositions, value creation, value delivery, and value captured to sustain its business by applying the sustainable business model innovation framework.</li><li>Formulate a strategy that benefits both the company and society/communities.</li></ul>
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