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

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
organisation.

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 http://www.adl.com/IplusI

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 www.adl.com.