Although often used as synonyms, Efficiency and Effectiveness measure different things.

Efficiency measures utilisation, i.e. how well an organization is using its capacity, regardless of what it produces. A criterion of efficiency and it is a simple and good indicator of short term profitability because it measures capacity usage, but it says nothing about the Effectiveness, i.e. what the person or team accomplish in that time.

»The great thing in this world is not so much where we stand as in which direction we are moving«

Oliver Wendell Holmes, American judge

»The solution is to optimize markets so that they can help promote and sustain social equity, economic prosperity, and environmental integrity. […] Business will not succeed in the twenty-first century if societies fail or if global ecosystems continue to deteriorate.«

Charles Holliday, Jr., Chairman and CEO, DuPont

Technological innovation, the driving force behind economic and social development, has transformed the productive base of societies from agriculture and extraction to industrial production, and, more recently, to information- and knowledge-based economies. While these changes have produced numerous benefits, they have also been socially disruptive and have substantially depleted the environmental resources that society and business depend on for survival and growth.

The global marketplace – characterized by increased diversity, scale, liberalization and capital flows - has altered the rules of business, creating new opportunities and risks.

To maintain profitability and growth, companies need to be attentive to issues of governance, social responsibility, and the prudent and efficient use of resources.

Corporate consolidation offers further competitive advantage to companies that adjust their strategies to reflect local economic, social and environmental conditions.

Opportunities

Resource Efficiency: Pollution prevention, waste reduction, process innovation and alternative energy strategies generate cost savings.

Innovation: Designing products and services with low environmental and social impact drives innovation.

Market Growth and Expansion: Product and service differentiation based on sustainability can significantly improve top line revenue growth.

Enterprise Value and Reputation: Transparency and accountability protect reputation and enhance brand value.

Workforce Potential: High-quality labor practices increase employee satisfaction, productivity and innovation, and attract the best talent.

Stakeholder Relationships: Corporate responsibility and triple bottom line reporting strengthen stakeholder trust, preserve license to operate and raise investor confidence.

Risks

Operations: Costs related to use and disposal of toxic materials, reliance on non-renewable resources and increasing levels of pollution regulation and taxation.

Enterprise Value and Reputation: Damage to reputation and loss of shareholder value due to poor social and environmental performance. Costs of lawsuits and increased regulation. Loss of stakeholder support and license to operate.

Capital Costs: Costs related to "end of pipe" pollution control equipment and overdue product and process redesign.

Markets and Competition: Competitive disadvantage due to high environmental and social impacts and out-dated technologies. Restricted market share due to inability to address customer needs for resource efficiency.

"To flourish in the 21st century we will have to pay far greater attention to what the world is saying about th consequences of what we are doing.…We have to be more accountable. And we have to be more tansparent."