A New Study by Arthur D. Little Presents the Sustainability Value Formula - 'Integrity + Innovation = Sustainable Performance'

    Delivering Sustainable Performance through Integrity and Innovation

    LONDON, August 2 /CNW/ - A new study by Arthur D. Little explores how a
value formula for corporate sustainability has been a key success factor
behind retail giant Marks & Spencer, telecommunications behemoth BT,
healthcare specialist Novo Nordisk, and global banking leader HSBC. The report
looks at how leading businesses are delivering sustainable performance through
an intense focus on integrity and innovation.

    Leadership in such competitive and fast-moving sectors is now far more
than just a strong brand and careful management - but is there a formula for
successful performance? Arthur D. Little's latest study "The sustainability
value formula" examines and articulates how the combination of integrity and
innovation feeds business success, and previews empirical research into the
strength of the integrity + innovation = sustainable performance.

    "Our research has shown that successful innovators achieve on average a
six times higher EBIT margin than the underperformers," reflects Richard
Clarke, Director of Arthur D. Little's Global Sustainability Practice.
"Conversely, several high-profile incidents of recent years like Ahold, Enron,
Dynegy and Global Crossing show how costly - and even economically fatal - the
loss of integrity can be. Our study illustrates how maintaining the balance of
integrity and innovation are vital to improving the overall performance and
sustainability of a business."

    Companies are increasingly developing sophisticated approaches to what
many are calling corporate sustainability, corporate responsibility and
corporate social responsibility, but in most cases, such activities run
parallel to - and largely separate from - the innovation efforts. As a result,
organizations are failing to achieve their full potential.

    According to Arthur D. Little's study, businesses that are adopting the
sustainability value formula are clearly demonstrating outstanding successes.
These businesses position both integrity and innovation as 'the way we do
business.' Good examples can be drawn from Vodafone's mobile phone-based
payments project, IBM's sustainable product stewardship programme and BASF's
'Verbund' initiative, each of which demonstrate the successful combination of
integrity and innovation to yield significant financial rewards for the

    Evaluating innovation is as complex as evaluating integrity. However,
more than a century's experience in innovation management has led Arthur D.
Little to develop rapid and accurate assessment tools that enable companies to
establish a clear vision at board level of how innovation and integrity pay
substantial dividends in raising the corporate performance.

    The Sustainability Value Formula report is now available for download at

    About Arthur D. Little

    Arthur D. Little (ADL), founded in 1886, is a leading global management
consulting firm that links strategy, innovation and technology to master
complex business challenges while delivering sustainable results to our
clients. Arthur D. Little has a collaborative client engagement style,
exceptional people, and a firm-wide commitment to quality and integrity. ADL
is proud to serve many of the Fortune 100 companies globally in addition to
many other leading firms and public sector organisations.

    Arthur D Little has over 30 offices worldwide, employing over 1,000
people. If you would like additional information on the firm, please visit

For further information:

For further information: Arthur D. Little Richard Clarke Tel: +44 (0)870
336 6770 clarke.richard@adlittle.com or Justin Keeble Tel: +44 (0)870 336 6749
keeble.justin@adlittle.com or Say Communications Sue Glanville or Ruchika Jain
Tel: +44 (0)208 971 6423 / 6407 sglanville@saycomms.co.uk

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