BUSINESS 450: THE GREENING OF BUSINESS SAN FRANCISCO STATE UNIVERSITY College of Business, Management Department Fall Semester 2005 Wednesday 1:10 – 3:55 PM Classroom: Bus 108 INSTRUCTORS Bruce Paton, Ph.D., Assistant Professor of Management e-mail: bpaton (at) sfsu.edu Phone: (415) 338-7012 Office: Business 340 Office Hours: M 12:30 - 2:30, Tu 10:00 -12:00 Please note: The best way to reach me outside of class and office hours is through e-mail. I will be difficult to reach by phone, but I usually check email several times a day. Murray Silverman, Ph.D., Professor of Management e-mail: msilver (at) sfsu.edu Phone: (415) 338-7489 Office: Business 346 Office Hours: Tu,Th 10:00-11:00, Tu 2:00-3:30 OVERVIEW Our natural environment is in danger. We are faced with global problems like the significant climatic changes, depletion of the ozone layer, 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. Businesses have played a major role in contributing to these environmental problems. Fortunately, corporate managers and board members are giving increasing consideration to their environmental and social impacts. Businesses can play a major role in attempting to create a sustainable planet earth. This course considers major questions about business’s role, such as: How does business affect the natural environment? What forces are pushing business to be more environmentally responsive? What can business do to respond to environmental problems? Why should they take action and how far can they go? What are environmentally proactive businesses doing to respond to their environmental impacts and what can we learn from them? READINGS All readings for this course will be available on Blackboard: http://online.sfsu.edu/ COURSE PURPOSE This is a class for business and non-business students interested in the impact of business organizations on the natural environment, the forces pushing business to respond to their impacts, and the types of approaches businesses are taking and can take to respond effectively 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. This course fulfills the Segment III requirement in the cluster Preservation of a Livable Environment cluster (Category B: Social Sciences). Consistent with the Preservation of a Livable Environment cluster, this course includes an examination of past, present and future human impacts on the world environment from an interdisciplinary perspective, and assists students in applying this knowledge in the evaluation of proposed solutions. Students taking this course, whether they wish to work inside a business or outside as an environmental advocate, will be better prepared to assist organizations in incorporating environmental considerations into their decision making. TEACHING METHODS This class will view environmental issues primarily from the perspective of the business decisionmaker. The case approach will be used extensively. Typically, a case will describe an environmental situation facing an organization. Case analysis relies on a participative class discussion process. In addition to cases, there will be assigned readings and a team project. Since many companies are issuing environmental reports on the World Wide Web, we will use the internet as the basis for research and team presentations. Our role in this course is to facilitate class discussions relating to readings, cases and other assignments. Although we will 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. EVALUATION One's grade in this course has the following components: Contribution to Classmates’ Learning (33.3%): This class is designed as a process of collective learning and exploration. You will be evaluated on your contributions to this learning process. Contributions include participating in class discussions and small group exercises, making presentations in class, sharing relevant news items, and helping on team projects. 2 An important part of contributing to any endeavor is showing up prepared. Please show up ready to discuss assigned readings and cases. Missing more than two classes will significantly influence your final grade. Please talk with us or send us an email if you miss a class. Your contribution to classmates’ learning will be measured by preparedness, consistency of quality contributions, active participation in class exercises, willingness to challenge ideas of peers and willingness to state ideas or positions that may be challenged. We will solicit feedback from classmates concerning your contributions. Case Analysis Written Requirement (33.3%): Write-ups of six to eight cases or articles, as assigned, two pages double-spaced for each. Case write-ups will be handed in on the day the case is discussed in class. A specific question will be provided prior to each case write-up. Team Projects (33.3%): Team project, formal team presentation, and various team activities. TEAM PROJECT Teams of three to four students will be responsible for a team project. Students will be assigned to a team, which will pick a company and assess its environmental performance based on secondary and primary research, utilizing the tools and concepts learned in the course. Secondary research will rely heavily on the use of electronic resources. Only companies that publish annual environmental reports will be considered. Secondary research might include articles in business or environmental periodicals, Toxics Release Inventory data, etc. Primary research might include contact with the company itself and environmental groups local to the company’s facilities. The results of the team's research will be presented in a formal, professional Power Point presentation. PLAGIARISM Plagiarism occurs any time someone represents the work of others as their own. Plagiarism is unacceptable and will result in a 0 for the assignment involved. Any evidence of plagiarism in this course will be referred to the Office of Judicial Affairs for investigation and if appropriate, disciplinary action. This course will require you to rely on the work of others’, but you must give appropriate acknowledgement to those responsible for the work you draw upon. If you have any questions about whether you are providing adequate acknowledgement of others’ work, please ask us. DROPPING OR WITHDRAWING FROM THE COURSE We hope you will stay in this course. But if for any reason you need to leave the course, you will be much better off if you drop it than if you try to withdraw. You can drop by GatorReg during the first four weeks, through Wednesday, September 21 without obtaining signatures or approvals from anyone. Dropping is far better than withdrawing. Drops do not appear on your transcript and do not count toward the new limit of three attempts at each core business course, nor will a drop prohibit you from withdrawing from a later section of this course. University policy is that withdrawals are permitted only for serious and compelling reasons. In addition, College of Business policy prohibits students from withdrawing from the same course (e.g. Bus 450) more than once for any reason. 3 LEARNING OBJECTIVES We hope this course makes a lasting contribution to your career success. One to five years after completing this course successfully you should retain skills in at least six areas*. 1. Foundational knowledge and skills. Understand key ideas and perspectives, and apply basic skills. A. Understand and be able to apply key concepts, including sustainability, and connections between business practices and the environment. B. Exercise skill in communications including: engaging in constructive dialogue, identifying, understanding, and responding to diverse viewpoints, presenting analyses and arguments in written and spoken communications, and communicating persuasively in writing and in oral presentations. 2. Application. Be able to apply knowledge and skills. A. Design comprehensive business responses to environmental issues, and B. Evaluate the effectiveness of business efforts to address environmental issues, and formulate corrective actions to improve their implementation. 3. Integration. Connect concepts with your own experiences and responsibilities. A. Understand and articulate your own views on business as an agent of change in protecting the environment. B. Understand how issues of business and the environment relate to your own life and work. 4. Human Dimension. Relate concepts to yourself and others. A. Understand how business efforts to address environmental issues have affected peoples’ lives. B. Think of yourself as a business person who can make a difference through your work in business. 5. Caring. Connect ideas with your own values and interests. A. Care about the role you play as a business man or woman in meeting environmental needs in the global community. 6. Learning how to learn. Be able to assemble new ideas and construct new knowledge. A. Learn how to find information about business’s role in addressing environmental issues. B. Learn how to make sense of complex issues surrounding business and the environment. * These six categories are explained in Creating Significant Learning Experiences by L.D. Fink, 2003, Jossey Bass, San Francisco. 4 BUSINESS 450 TOPICS AND READINGS I. Environmental Challenges and Opportunities Objective: 1. Provide common context - concern for and impact of environmental problems. 2. Raise basic eco-literacy. 3. Introduce stakeholder concept. 4. Convey sense of urgency and scale of problems. 8/24 Topic: Course Introduction Syllabus and Course Requirements Exercise: Catamount Timber Company Video segment: Ray Anderson – CEO Interface Carpets 8/31 Topic: Current Status of the Natural Environment Read: Ecosystems and Human Well-being: Opportunities and Challenges for Business and Industry Read: The Bottleneck, Chapter 2 in The Future of Life, by E.O. Wilson Exercise: Spaceship Voyage Exercise: Ecological Footprint Assignment: Environmental Reports on the Web and the Global Reporting Initiative (Handout) (due 9/7) II. External Drivers Objective: 1. Introduce external forces driving business (opportunities and threats) 2. Provide common context about government, social, and market forces driving business attention to the environment 3. Convey significance of the pressures on corporate performance 4. Introduce basic vocabulary concerning regulation and external pressures 9/7 Topic: Environmental Reporting Read: Improving Sustainability Disclosure: the Global Reporting Initiative Guidelines, from Ants, Galileo and Gandhi Read: Beyond Reporting: Creating Business Value and Accountability CASE: Kinko’s Environmental Report (handout) Introduction of Semester Project 5 9/14 Topic: Public Policy and the Environment Read: EPA and the Evolution of Federal Regulation Read: Managing Environmental Quality – Louisiana-Pacific Corporation Mini-lecture on Public Policy and Environment Mini-lecture on Voluntary Initiatives CASE: Changing Drivers CASE: AWC 9/21 Topic: Market and Community Pressures Read: CALPERS Greenwave Green Fact Sheet Read: Exxon Climate Change Shareholder Resolution Mini-lecture: Socially Responsible Investment Strategies CASE: Marine Stewardship Council Video Segment: Trade Secrets Homework Assignment: Eco-audit Part A (due 10/5) III. Responses within the Company Objectives: 1. Introduce basic tools and concepts that are useful for addressing environmental problems. 2. Introduce progression from pollution prevention to product stewardship to clean technology. 3. Present journey as process of learning and discovery. 4. Understand how to institutionalize environmental values in companies. 9/28 Topic: Waste Reduction & Pollution Prevention Read: Hart and Millstein, “Creating Sustainable Value Read: Pollution Prevention: Concepts and Principles Read: Assigned mini-cases on Pollution Prevention CASE: Dow Chemical 10/5 Topic: Environmental Management Systems Read: Introduction to ISO 14000 Case: Benziger Family Winery Video segment: Wine Industry Code of Sustainable Practice Mini-lecture: Institutionalizing Environmental Concern Exercise: Report on Eco-audit A assignment 10/12 Topic: Clean Technologies and Green Buildings Read: Arthur D. Little Innovation High Ground Report Read: Design for Workplace Productivity, Chapter 4 in Cool Companies Read: Green Building Backgrounders Video segment: River Rouge Plant from McDonough video Case: U.S. Plastic Lumber 6 IV. Responses in the Supply chain/Value chain Objectives: 1. Explore firms’ responsibilities outside their 4 walls 2. Explore rights and responsibilities of firms 3. Introduce concept of stewardship 10/19 Topic: Life Cycle Analysis Read: Note on Life-Cycle Analysis Read: Cradle to Cradle Chapter 1 Case: The Procter and Gamble Company: Disposable/Reusable Diapers Exercise: Life cycle analysis Exercise: iPod = iWaste Video Segment: The High Tech Trashing of Asia Homework Assignment: Eco-audit Part B (due 10/26) 10/26 Topic: Rethinking Business Models Read: A Roadmap for Natural Capitalism Read: A Primer on Sustainability Video Segment: Biomimicry Mini-lecture: COSY framework Exercise: Natural Step (4 system conditions) Case: IKEA: Nothing is Impossible, in The Natural Step for Business Exercise: Report on Eco-audit B assignment V. Globalization and the Environment Objectives: 1. Explore pros and cons of globalization for the environment 2. Explore creative and destructive roles for business in globalization 11/2 Topic: Globalization and the Environment Read: The River Runs Black, Chapter 1 Read: The Toxic Fallout of China’s Growth Exercise: Pollution Problems in China CASE: Nike and the University of Oregon IV. From Tactics to Strategy Objectives: 1. Distinguish between bottom line and top-line opportunities 2. Explore opportunities and challenges for moving forward 7 11/9 Topic: Green Businesses: Meeting Existing Needs Read: Capitalism at the Crossroads, Chapter 4 Read: Consumers with a Conscience CASE: Kimpton Hotels CASE: Designtex Video segment: Designtex from McDonough video 11/16 Topic: Green Businesses: Serving Unmet Needs Read: Beyond Greening: Strategies for a Sustainable World Read: The Fortune at the Bottom of the Pyramid Video Segment: Favio Rosa in “The New Heroes” Video Segment: Mohammed Yunis in “The New Heroes” CASE: CEMEX - Innovation in Housing for the Poor 11/23 Topic: Green Ventures Read: Green Ventures Read: Green Venture Fund web pages CASE: New Belgium Brewing Exercise: Sustainable Venture Network 11/30 and 12/7 PROJECT PRESENTATIONS Objective: 1. Integrate course concepts 2. Develop team presentation skills 3. Share and compare findings across teams Team Project Presentations (Formal presentation of research results related to the environmental performance of a specific company). 8