A system dynamics sustainable business model for Petroleos Mexicanos (Pemex): case based on the Global Reporting Initiative

J A Duran-Encalada and A Paucar-Caceres
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J A Duran-Encalada: Universidad de Las Americas Puebla, Puebla, México
A Paucar-Caceres: Manchester Metropolitan University Business School, Manchester, UK

Journal of the Operational Research Society, 2012, vol. 63, issue 8, 1065-1078

Abstract: We propose a System Dynamics model to explain the implementation and development of business sustainable policies at Petroleos Mexicanos (Pemex). The model is built using information reported by this company on the Global Reporting Initiative website. The simulation model incorporates the participation and expectations of internal and external stakeholders in defining sustainability (as perceived by the organization) and implementing its initiatives. Three variables (leadership, stakeholder motivation and external factors), identified as leverage points in the model, are used as means to improve the organization's journey towards achieving sustainability. The results of the simulation model seem to indicate that by increasing leadership activity and levels of stakeholder motivation, the journey towards sustainability can be greatly improved, and that external economic factors do not have a significant impact on sustainability achievement. These findings are pertinent for organizations currently in the process of implementing sustainable policies and strategies.

Date: 2012
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