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Business Management and Environmental Leadership - ONE

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Business Management and Environmental Leadership - ONE Powered By Docstoc
					     San Francisco State University College of Business - Spring Semester 2006

                                        BUSINESS 857

       BUSINESS MANAGEMENT AND ENVIRONMENTAL LEADERSHIP

             Tom Thomas, Ph.D.                               Murray Silverman, Ph.D.
      Assistant Professor of Management                       Professor of Management
      Office: Bus 340 415-338-6086                        Office: Bus 346 415-338-7489
        e-mail: tethomas (at) sfsu.edu                      e-mail: msilver (at) sfsu.edu


Overview
Our natural environment, our Earth, is in danger. We are faced with global problems like the
depletion of the ozone layer, the possibility of climatic changes due to the emission of greenhouse
gases, destruction of our rainforests and the continuing loss of species. At local and regional
levels, there is serious degradation of our water, soil and air quality. Our personal health is
threatened by the pervasive use of pesticides and other chemicals that expose us to toxic and
carcinogenic substances, and disrupt our hormonal balance.

The source of these problems can be traced to economic activity, population growth, technology
and our collective failure to adequately address these problems.

Businesses have played a major role in contributing to these environmental problems, and
businesses can play a major role in attempting to create a sustainable economy that exists in
harmony with the natural resources, carrying capacity, and beauty of planet earth.


Course purpose
This course is a seminar for business and non-business students interested in the impact of
business organizations on the natural environment and the types of approaches businesses are
taking and can take to effectively respond to environmental issues. This course is designed so that
students from various disciplines (science, humanities, social sciences, business, education, etc.)
can learn from each other without having had courses in business and management. Students
taking this course will be better prepared to assist organizations in incorporating environmental
considerations into their decision-making.

We ask, and attempt to answer, a number of challenging questions over the course of the semester:

     What are the most serious environmental problems we face, and how are companies
      contributing to the problems?
     What can businesses do to respond to these environmental problems?
     Why should they take action and how far should they go?
     What are the barriers or constraints to managing businesses in a sustainable manner?
     What about companies that have already embarked on a path of proactive environmental
      responsiveness - what approaches and practices are they pursuing, and what can we learn
      from them?
     What new business opportunities are being created by the need to shift toward sustainable
      business management?
     What are the respective roles that should be played by business, government, non-
      governmental organizations and educational institutions in creating a sustainable economy?
Teaching methods
This seminar will view environmental issues primarily from the perspective of the business
decision-maker. The case approach will be used extensively. Typically, a case will describe an
environmental situation facing an organization. Case analysis will lead to identification and
assessment of decision options. Case analysis relies on a participative class discussion process. In
addition to cases, there will be assigned readings, guest speakers and team projects.

Our role in this course is to facilitate class discussions relating to readings, cases and other
assignments. Although we will occasionally present lectures, a significant part of the learning in
this course will occur through our in-class discussions. Genuine learning in this course is reflected
by your ability to articulate your ideas and positions relating to the topics or issues being
discussed. For this reason, the quality of your class participation is a significant part of your
grade.

Groups/teams will be used throughout the course for in-class discussions and team presentations or
projects.


Required readings
There is no textbook assigned for this seminar. All readings can be accessed on-line through
Blackboard or from the library’s Electronic Reserves, as indicated by the course schedule below.


Evaluation
Each student’s final grade in this course has the following components:

Participation (33.33%): Class participation, as measured by preparedness, consistency of quality
contributions, and in relation to case discussions, willingness to challenge ideas of peers and
willingness to state ideas or positions that may be challenged. Attendance and punctuality will be
included here. The small group presentation on environmental reports will also be included here.

Case Analysis Write-ups (33.33%): Each case (There will be 11 over the course of the semester)
will have a number of assigned questions. For 7 of these cases, you’ll turn in a one-page summary
of your analysis and conclusions relating to those questions prior to the class discussion of that
case.

Team Project (33.33%): A report and formal team presentation, as described below.


Team project
Teams of two to four students will be responsible for a team project. The project’s objective is to
give students an opportunity to apply the tools and concepts they learn in the course. Last year,
each team focused on a particular aspect of environmental impacts and green management
practices in the hospitality (hotels, resorts, etc.) industry. Teams will target a different industry
this semester, to be determined by the third week of class.

Each team will be required to write a report (typically no more than 10 pages long, plus a one-page
executive summary and data appendices) and make a presentation (20-30 minutes long) to the
class regarding their findings. Reports and presentations will be due at the end of the semester.
Teams are encouraged to submit early drafts of their reports, to allow us to review them and make
suggestions for improvement.
                                         BUS 857

                         TOPIC OUTLINE AND SCHEDULE


I. INTRODUCTION (Jan. 30)

   Objectives:
     1. Introduce course procedures and topics.
     2. Review the relationship between Corporate Social Responsibility, Stakeholder
        Management, and the concept of Sustainable Business.
     3. Acquaint students with Ray Anderson (Interface Carpets), an example of a CEO
        trying to lead a company toward sustainability.

   Readings/Assignments:
      In-class mini-case: Simpson Investment Company and the “Aroma of Tacoma.”
      Video: Ray Anderson, CEO of Interface Carpets
      Assign on-line eco-footprint exercise.


II. ECOLOGY AND THE STATUS OF THE NATURAL ENVIRONMENT (Feb. 6)

   Objectives:
     1. Understand our planet as a fragile, closed ecosystem, with interdependent natural,
        social, and economic systems.
     2. Identify some of the greatest risks to human health and the ecology.
     3. Introduce and discuss the concept of sustainable development.
     4. Learn how to apply the concept of a company’s or product’s ecological footprint.
     5. Begin to explore business’ role in achieving sustainability.

   Readings/Assignments:
     Read: "What We Use and What We Have" by Mathis Wackernagel, Redefining Progress,
              1999.
     Read: “The Bottleneck,” Chapter 2 in The Future of Life, by E.O. Wilson, 2002.
     Read: “Sustainability Risk Assessment,” Chapter 1 in Corporate Survival: The Critical
              Importance of Sustainability Risk Management, Dan R. Anderson, 2005.
     Case: Oil in the Ecuadorian Rain Forest \
     In-class exercise: Spaceship Voyage
     In-class exercise: Discuss ecological footprint results.
     Assign Natural Step exercise for next class.


III. THE ENVIRONMENTALLY SUSTAINABLE BUSINESS: WHAT DOES IT
       MEAN & WHAT FORCES ARE DRIVING IT? (Feb. 13)

   Objectives:
     1. Identify and evaluate the key external and internal forces that are driving the trend
        toward sustainable business.
     2. Learn what a sustainable business might look like: What are the criteria for an
        environmentally sustainable business?
     3. Learn about and assess the Natural Step as a framework for operating a sustainable
        business.
       4. Consider whether sustainable business is scalable: Is it limited to small and midsize
           companies serving niche markets? Can companies that serve mass markets ever be
           sustainable?

    Readings/Assignments:
      Read: “First Emerging Driver: A Perfect Storm of Threats,” chapter 3 in The NEXT
                Sustainability Wave, 2005.
      Read: “Second Emerging Driver: Compelling Business Value,” chapter 4 in The NEXT
                Sustainability Wave, 2005.
      Read: The Natural Step – “Four Simple Principles for Sustainability,” plus “A Deeper
             Look at System Conditions 1/2/3/4,” on-line at
             http://www.naturalstep.org/learn/principles.php
      Case: New Belgium Brewing

       In-class exercise: Apply Natural Step (4 system conditions) to New Belgian Brewing case.


Sunday, Feb. 19: Informal brunch, 11 am at Professor Silverman’s house


IV. CORPORATE PRACTICES: ENVIRONMENTAL REPORTING (Feb. 20)

    Objectives:
      1. Learn how environmental/sustainability reporting is becoming a mainstream business
         practice.
      2. Familiarize students with a variety of reporting styles, and learn about how a specific
         company reports on its environmental practices and impacts.
      3. Explore motivation for environmental reporting: Does motivation matter?
      4. Discuss corporate environmental “greenwashing”: Is it just PR? How can we
         critically assess style vs. substance of environmental reporting?
      5. Discuss whether sustainability reports should include efforts by companies to shape public
         policies (i.e., lobbying, campaign contributions, think tank dues, etc.).

    Readings/Assignments:
      Read: “How Green is my Company?,” CFO.com, 10/18/04.
      Read: “Beyond Reporting: Creating Business Value and Accountability,” World
              Business Council for Sustainable Development, 2005.
      Read: “Introducing the GRI,” Global Reporting Initiative, 2002.
      Read: “A Ronald McDonald Fantasy,” SF Chronicle, 6/2/02
      Case: Kinko’s 2001 Environmental Report
      Assign group presentation on environmental reports (Due Mar. 6).
.

V. CORPORATE PRACTICES: MANAGING REGULATORY ISSUES (Feb. 27)

    Objectives:
      1. Gain historical perspective on the evolution of environmental regulations.
      2. Overview of the range of methods by which environmental practices are regulated.
      3. Overview of the risk assessment process used to establish regulatory standards.
      4. Gain a comparative perspective: Regulatory approaches vary widely between nations.
   Readings/Assignments:

      Read: “Managing Environmental Quality – Louisiana-Pacific Corporation,” Steiner &
             Steiner, 2003.
      Read: “EPA and the Evolution of Federal Regulation, ” chapter 2 in Public Policies for
             Environmental Protection, Paul Portney & Robert Stavins (eds.), 2000.
      Read: “Market-Based Environmental Policies,” chapter 3 in Public Policies for
             Environmental Protection, Paul Portney & Robert Stavins (eds.), 2000.
      Read: "Chemical Sleuth: Theo Colburn..." by Kenneth Wapner, The Amicus Journal,
             Spring 1995.
      Case: AWC, Inc. - The Ventilation Dilemma.


VI. GROUP PRESENTATIONS ON ENVIRONMENTAL REPORTS (Mar. 6)


VII. CORPORATE PRACTICES: WASTE REDUCTION & POLLUTION
     PREVENTION (Mar. 13)

   Objectives:
     1. Understand pollution prevention (P2) hierarchy (P2 Act of 1990) - Prevention,
        reduction, reuse, recycling, treatment, and disposal.
     2. Introduce concepts of eco-efficiency, TQEM, and industrial ecology.
     3. Understand barriers to implementing P2 programs.
     4. Discuss progression from P2 to product stewardship to clean technology.
     5. Explore how specific companies implement and benefit financially from P2 and waste
        reduction programs.

   Readings/Assignments:
     Read: “Pollution Prevention: Concepts and Principles,” National Pollution Prevention
            Center for Higher Education, 1995.
     Read: “Corporate Obstacles to Pollution Prevention,” in Environmental Management:
            Readings and Cases, 1999.
     Read: “Creating Sustainable Value,” Hart and Millstein, 2003.
     Case: Mini-cases on pollution prevention, World Business Council for Sustainable
            Development, 2004.


VIII. CORPORATE PRACTICES: PRODUCT STEWARDSHIP (Mar. 20)

   Objectives:
     1. Understand dimensions of product stewardship and what leading companies are
        doing to manage environmental impacts over the life cycle of their products.
     2. Understand concept of life cycle analysis (LCA): Its advantages and disadvantages.
     3. Learn how DfE is used by companies as a practical tool to reduce life cycle
        environmental impact of products.
     4. Learn about voluntary and mandated product take-back programs.

   Readings/Assignments:
       Read: “Eco-Efficiency,” Chapter 3 in Walking the Talk, 2002.
       Read: “Waste Equals Food,” Chapter 4 in Cradle to Cradle, 2002.
       Read: “Note on Life-Cycle Analysis,” Chapter 17 in Environmental Management:
              Readings and Cases, 1999.
         Read: “Life Cycle of a Mobile Phone,” Nokia, 2005.
         Case: The Procter and Gamble Company: Disposable/Reusable Diapers
         Exercise: Life cycle analysis


IX. CORPORATE PRACTICES: MANAGING THE GLOBAL SUPPLY CHAIN
(Mar. 27)

   Objectives:
     1. Understand/debate relationship between economic development and the natural
        environment.
     2. Recognize impact of corporate supply chain management practices on developing
        nation’s cultures, economies and environments. (Environmental justice)
     3. Examine best practices of companies managing global supply chains.

   Readings/Assignments:
      Read: “Global Trade and the Environment,” The Ecologist, v.27(6), 1997.
      Read: “The Toxic Fallout of China’s Growth,” Mercury News, July 25, 2005.
      Read: “Death of the Huai River,” Chapter 1 in The River Runs Black, 2004.
      Read: “How Supply Chain Management Practices Are Greening Procurement,” Green
            Business Letter.
      Read: Novo Nordisk “Guide for Suppliers,” 2004.
      Case: Nike and the University of Oregon
      Video Segment: The High Tech Trashing of Asia


SPRING BREAK (No class April 3)


X. CORPORATE PRACTICES: INSTITUTIONALIZING ENVIRONMENTAL
    COMMITMENT (April 10)

   Objectives:
     1. Understand environmental management systems and ISO 14001.
     2. Understand the requirements for institutionalizing environmental commitments.
     3. Learn to assess the extent to which a firm has institutionalized its environmental
        commitment.

   Readings/Assignments:
     Read: “Introduction to ISO 14000,” Chapter 20 in Environmental Management:
           Readings and Cases, 1999.
     Read: “ISO 14001 in plain English,” Praxiom Research Group, 2005.
     Read: “Adjust the Parameters of the System by Aligning Systems and Structures with
           Sustainability,” Chapter 12 in Leading Change Toward Sustainability, Bob
           Doppelt, 2003.
      Read: Sleeping Tiger, Hidden Liabilities,” Claros Consulting Discussion Paper,
           May 2003.
      Case: Benziger Family Winery
XI. CORPORATE PRACTICES: MANAGING THE INTERNAL VALUE CHAIN
FOR SUSTAINABILITY (April 17)

   Objectives:
     1. Learn the meaning and significance of the value chain
     2. Introduce environmental management techniques applied at various primary and
        support functions in the value chain:

   Readings/Assignments:
     Read: “Value to the Top Line,” GEMI, 2001.
     Read: “An Introduction to Environmental Accounting as a Business Management Tool,”
            Chapter 18 in Environmental Management: Readings and Cases, 1999.
      Case: Designtex, Inc., in Environmental Management: Readings and Cases, 1999.
      Video segment: Designtex, from McDonough video


XII. CORPORATE PRACTICES: INTEGRATING COMPETITIVE STRATEGY
      AND ENVIRONMENTAL RESPONSIVENESS (April 24)

   Objectives:
     1. Rethink business models to capitalize on strategic environmental opportunities– Are
        there new possibilities?
     2. Distinguish between bottom line and top line opportunities.
     3. Explore businesses that have been successful in gaining competitive advantage
        through environmental market initiatives.

   Readings/Assignments:
     Read: “Creative Destruction and Sustainability,” Chapter 4 in Capitalism at the
            Crossroads, Stuart Hart, 2005.
     Read: “Consumers with a Conscience,” Chapter 15 in Environmental Management:
            Readings and Cases, 1999.
     Case: Kimpton Hotels, Silverman & Thomas, 2005.


XIII. GREEN VENTURES (May 1)

   Objectives:
     1. Recognize trends that could open new market niches.
     2. Learn about new ventures seeking to facilitate and/or profit from the shift to
        sustainability.
     3. Learn about business opportunities at the “bottom of the pyramid,” and how
        companies are recognizing and serving these markets.

   Readings/Assignments:
     Read: “The Fortune at the Bottom of the Pyramid,” Prahalad & Hart, Strategy+Business,
           2002.
     Read: Biodiesel news articles, 2005.
     Read: “Toyota: Environment and hybrid,“ World Business Council for Sustainable
            Development, 2005.
     Case: Deja Shoe
     Video: Deja Shoe

XIV. and XV. Team Presentations of Semester Projects (May 8 & 15)

				
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