Business Strategy for Environmental Sustainability

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Nicholas School of the Environment and Earth Sciences
Duke Environmental Leadership Program
ENV 473, Business Strategy for Sustainability
Course Syllabus
Course Instructor:
Deborah Rigling Gallagher
Deb.Gallagher@duke.edu
Phone: 919-613-8138
Teaching Assistant:
Kevin Fritze
Kevin.fritze@duke.edu
Course Description
Businesses are increasingly applying strategic management tools to incorporate
considerations of sustainability into decision-making and operations. While some
businesses incorporate sustainable practices because of an ethical conviction to do well
for society and the environment, most are motivated to address pressures from
stakeholders such as regulators, shareholders, customers and neighbors and to exploit
knowledge and experience for long term competitive advantage.
This course will examine how businesses develop and implement strategies to promote
sustainability. Students will examine roles and responsibilities of sustainable strategic
managers and learn how to apply the tools of strategic business management to
problems of sustainability. Students will consider how managers apply leadership
practices to promote sustainable practices in their organizations. Business case study
analysis will be a critical component of this course, as will team work.
Course Materials:
1. E-Reserve readings and cases on Blackboard
2. Stead, W. Edward, Jean Garner Stead. 2009. Management for a Small Planet.
Armonk, New York: W.E. Sharpe.
Course Requirements:
Each module will focus on a combination of on-line lecture, in which strategic
management tools will be highlighted, case study analysis and on-line group discussion
in which students will explore business use of strategic management tools to promote
sustainability:

Student teams will each manage one module discussion board. Teams will be
responsible for posting a series of questions to incite a lively discussion about
the case and moderating the discussion. Questions should address challenges
posed by the case and incorporate specific constructs covered during the module
[dates as assigned]. Students should participate in the discussion by following
the discussion board guidelines posted on the course blackboard site.

During each module students will prepare a 3-page decision memo summarizing
case study findings and recommending a business strategy to address
sustainability issues [Memos will be due at 8pm EST before class begins on the
second Tuesday of each module: January 17, January 31, February 14, March 20,
April 3]. There will be no memo due during module 5 because the team report is
due during that module.

Students will be assigned to a team (3-4 students/team) to focus on one of the
following economic sectors: government, consulting, food and agriculture, nonprofit, real estate development, manufacturing, education, energy, finance or
travel and tourism. Each team will produce a 5-page memo describing the state
of their organization’s sustainability focus and the challenges it faces in
implementing sustainable practices. [The team report is due on February 28].

At the culmination of the course student teams will present recommendations
on how particular strategic management tools may be applied by their business
to promote sustainability. [April 13 and April 20]. Pecha Kucha presentation
techniques will be employed.
Summary of graded work:
Individual case study summaries 5 @ 10 % each [due at 8pm EST on Tuesday: January
17, January 31, February 14, March 21, April 4]
Team report 10% [March 5]
Final team Pecha Kucha presentation 15% [April 10 and 17]
Case Discussion Leadership 10% [dates as assigned]
Discussion Board Participation 15% [Every Module]
A Note on Late Assignments: Flexibility is important. If you have a good reason for not
being able to turn in an assignment on time, it will be considered, if you speak to me
beforehand. Otherwise, your grade will be adjusted downward a grade for each day
late.
Course Outline
Module 1: Introduction to Course, Formation of Sector Teams
[December 10-11: Washington, DC]
Winter Break: December 14-January 11
Module 2: Applying Business Strategy to Advance Sustainability [January 12-21]
What is Strategy?, Making Sustainable Strategic Decisions
Module 3: Strategic Sustainability Tools: Environmental Management Systems
[January 22-February 4]
Week 1: Environmental Management Systems, Sustainability Management Systems
Week 2: Intro to Pecha Kucha
Module 4: Strategic Sustainability Tools: Collaboration and Partnerships
[February 5-18]
Week 1: Collaboration and Partnership
Week 2: Scenario Analysis
Module 5: Stakeholder Analysis [February 19-March 2]
Week 1: Stakeholder Analysis
Week 2: Stakeholders and Enterprise Strategy
Spring Break: March 3-11
Module 6: Strategic Sustainability Tools: Strategic Advantage Analysis [March 12-24]
Week 1: Competencies and Drivers; Scanning and External Analysis; Resource Based
View; Functional vs. Corporate Level Strategies
Week 2: Industry Competitive Environment, Global Multinational Environment
Module 7: Leadership for Sustainability [March 25-April 7]
Week 1: Sustainability Leadership
Week 2: Roles and Ethics
Module 8: Team Presentations and Course Wrap Up [April 8-25]
Week 1: Presentations
Week 2: Presentations
Detailed Course Schedule
Module 1: Introduction to Course and Formation of Sector Teams
[December 10-11, Washington, DC]
We will discuss how the course will be organized and learn how to learn using case
study analysis. We will watch the movie “A Decent Factory” and discuss the triple
bottom line of sustainability. Please be prepared to discuss your background, what you
hope to get out of this course and what business sector you are interested in focusing
on. Potential sectors: government, consulting, food and agriculture, non-profit, real
estate development, manufacturing, education, energy, finance or travel and tourism.
Sector teams will be announced after the film. Finally, we will learn how to
analyze business cases and discuss our first case, “Kimpton Hotels: Balancing Strategy
and Environmental Sustainability”, first in teams and then as a class.
Reading:
 Stead & Stead. 2009. “Management Meets a Small Planet”, “Management
Happens on Earth: The Biophysical Dimension of Sustainability”, “Economics as if
the Planet Mattered: the Economic Dimension of Sustainability” and “Searching
for Equity: The Social Dimension of Sustainability”, Chapters 1-4, pages 1-82 in
Sustainable Strategic Management.
Case: Kimpton Hotels: Balancing Strategy and Environmental
Sustainability
************** Winter Break: December 14-January 11 *********************
Module 2: Applying Business Strategy to Advance Sustainability [January 12-21]
Readings:
 DeKluyver, Cornelius A. and John A. Pearce II. 2003. “What is Strategy”. Chapter
1 in Strategy: A View From the Top, An Executive Perspective
Case: Just Us! Coffee Roasters
Module 3: Environmental Management Systems
[January 22-February 4]
Readings:
 Tinsley, Stephen and Ilona Pillai, 2006. “The Theory of Environmental
Management Systems” and “Implementing an Environmental Management
Systems”, Chapters 1 and 2, pages 1-76 in Environmental Management Systems:
Understanding Organizational Drivers and Barriers. London: Earthscan
Case: Benziger Family Winery
Module 4: Strategic Sustainability Tools: Collaboration and Partnerships
[February 5-18]

Readings: Rondinelli, Dennis A. and Ted London. 2003. “How corporations and
environmental groups cooperate: Assessing cross sector alliances and
collaborations. Academy of Management Executive, 17(1): 61-77.

GEMI and Environmental Defense Fund, 2008. “Guide to Successful CorporateNGO Partnerships”, pages 1-36.
Case: Starbucks and Conservation International
Module 5: Stakeholder Analysis [February 19-March2}
Readings:
 Gallagher, Deborah Rigling. 2004. “Environmental Management Systems and
Sustainability: A Framework for Understanding Stakeholder Influence”, Chapter
11 in Stakeholders, the Environment and Society, edited by Sanjay Sharma and
Mark Starik. Northampton, MA: Edward Elgar.

Wood, Donna, Logsdon, Jeanne, Llewellyn, Patsy and Kim Davenport. 2006. “The
Principles of Accountability and Processes of Stakeholder Engagement”, Chapter
5, pages 83- 101 in Global Business Citizenship: A Framework for Ethics and
Sustainable Capitalism. Armonk, NY: M.E.Sharpe
Case: Cape Wind
******************************Spring Break: March 3-11*********************
Module 6: Strategic Advantage Analysis [March 12-24]
Readings:
 Stead & Stead. 2009. “Creating Sustainable Stakeholder Value’ and “Sustainable
Strategic Management”, Chapters 7 and 8, pages 130-182 in Management for a
Small Planet.

Hart, Stuart L. and Mark Milstein. 2003. “Creating Sustainable Value”. Academy
of Management Executive, 17(2): 56-69
Case: Wal-Mart’s Sustainability Strategy
Module 7: Leadership for Sustainability [March 25-April 7]
Readings:
 Stead and Stead. 2009. “Leading the Way to Sustainable Organizational
Management”. Chapter 6, pages 107-129 in Management for a Small Planet.

Gallagher, Deborah Rigling, forthcoming, 2012. The United Nations Global
Compact: Forum for Environmental Leadership, in The UN Millennium
Development Goals, The Global Compact and the Common Good, edited by
Oliver Williams, South Bend: Notre Dame University Press.

Senge, Peter. 2008. “Getting People Engaged”, Chapter 10, pages 140-156 in The
Necessary Revolution: How Individuals and Organizations are Working Together
to Create a Sustainable World, New York: Doubleday
Case: Tata: Leadership with Trust
Module 8: Team Presentations and Course Wrap Up [April 8-25]
Nicholas School Honor Code and the Duke Community Standard
All activities of Nicholas School students, including those in this course, are governed by
the Duke Community Standard, which states:
“Duke University is a community dedicated to scholarship, leadership, and service
and to the principles of honesty, fairness, respect, and accountability. Citizens of this
community commit to reflect upon and uphold these principles in all academic and
nonacademic endeavors, and to protect and promote a culture of integrity. To
uphold the Duke Community Standard:



I will not lie, cheat, or steal in my academic endeavors;
I will conduct myself honorably in all my endeavors; and
I will act if the Standard is compromised.”
Please add the following affirmation to the end of all assignments and sign your name
beside it: “I have adhered to the Duke Community Standard in completing this
assignment.” Assignments will not be accepted without this assertion.
Detailed Course Schedule and Assignment Matrix
Date
December 10-11, 2011,
Washington DC
Case: Kimpton Hotels:
Balancing Strategy and
Environmental
Sustainability
Module
Readings
Module 1: Introduction to Stead & Stead. 2009. “Management
Course
Meets a Small Planet”, “Management
Happens on Earth: The Biophysical
Movie: A Decent Factory
Dimension of Sustainability”,
“Economics as if the Planet Mattered:
Team Building Exercise:
the Economic Dimension of
Critiquing the Kimpton
Sustainability” and “Searching for
Case
Equity: The Social Dimension of
Asynchronous lectures:
 Business Case
Analysis
 Strategic Vision,
Mission and Goals
Winter Break
January 12-21
Case: Just Us! Coffee
Roasters
Case Memo Due:
January 17
January 22-February 4
Case: Starbucks and
Conservation
International
Case Memo Due:
January 31
December 14 – January 11.
Module 2: Applying
Business Strategy to
Advance Sustainability
Case: Benziger Family
Winery
Case Memo Due:
February 14
DeKluyver, Cornelius A and John A.
Pearce II. 2003. “What is Strategy”.
Chapter 1 in Strategy: A View From the
Top, An Executive Perspective
Asynchronous Lectures:
 What is
Strategy?
 Sustainable
Strategic
Decisions
Module 3: Strategic
Sustainability Tools:
Collaboration and
Partnerships, Scenario
Analysis
Asynchronous Lectures:


February 5-18
Sustainability”, Chapters 1-4, pages 182 in Sustainable Strategic
Management.
Partnerships for
Sustainability
Scenario Analysis
Module 4: Strategic
Sustainability Tools:
Environmental
Management Systems,
Introduction to Pecha
Kucha
Asynchronous Lectures:
 Environmental
Management
Systems

Sustainability
Management
Systems
Rondinelli, Dennis A and Ted London.
2003. “How corporations and
environmental groups cooperate:
Assessing cross sector alliances and
collaborations. Academy of
Management Executive, 17(1): 61-77.
GEMI and Environmental Defense
Fund, 2008. “Guide to Successful
Corporate-NGO Partnerships”, pages
1-36.
Tinsley, Stephen and Ilona Pillai,
2006. “The Theory of Environmental
Management Systems” and
“Implementing an Environmental
Management Systems”, Chapters 1
and 2, pages 1-76 in Environmental
Management Systems: Understanding
Organizational Drivers and Barriers.
London: Earthscan
February 19-March 2
Case: Cape Wind
Group Report Due:
February 28
(No memo due)
Module 5: Strategic
Sustainability Tools:
Stakeholder Analysis,
Enterprise Strategy
Asynchronous Lectures:
 Stakeholder
Analysis
 Stakeholders and
Enterprise Strategy
Gallagher, Deborah Rigling. 2004.
“Environmental Management
Systems and Sustainability: A
Framework for Understanding
Stakeholder Influence”, Chapter 11 in
Stakeholders, the Environment and
Society, edited by Sanjay Sharma and
Mark Starik. Northampton, MA:
Edward Elgar.
Wood, Donna, Logsdon, Jeanne,
Llewellyn, Patsy and Kim Davenport.
2006. “The Principles of
Accountability and Processes of
Stakeholder Engagement”, Chapter 5,
pages 83- 101 in Global Business
Citizenship: A Framework for Ethics
and Sustainable Capitalism. Armonk,
NY: M.E.Sharpe
Spring Break
March 3-11
March 12-24
Module 6: Strategic
Sustainability Tools:
Strategic Advantage
Analysis
Case: Walmart’s
Sustainability Strategy
Case Memo Due:
March 20
Asynchronous Lectures:
 Functional vs.
Corporate Level
Strategies
 Resource Based
View
 Global
Multinational
Environment



Competencies
and Drivers
Scanning and
External Analysis
Industry
Competitive
Environment
Stead & Stead. 2009. “Creating
Sustainable Stakeholder Value’ and
“Sustainable Strategic Management”,
Chapters 7 and 8, pages 130-182 in
Management for a Small Planet.
Hart, Stuart L and Mark Milstein.
2003. “Creating Sustainable Value”.
Academy of Management Executive,
17(2): 56-69
March 25-April 7
Case: Tata: Leadership
With Trust
Case Memo Due:
April 3
Module 7: Leadership for
Sustainability
Asynchronous Lectures:
 Sustainability
Leadership
 Roles and Ethics
Stead and Stead. 2009. “Leading the
Way to Sustainable Organizational
Management”. Chapter 6, pages 107129 in Management for a Small
Planet.
Gallagher, Deborah Rigling,
forthcoming, 2012. The United
Nations Global Compact: Forum for
Environmental Leadership, in The UN
Millennium Development Goals, The
Global Compact and the Common
Good, edited by Oliver Williams,
South Bend: Notre Dame University
Press.
Senge, Peter. 2008. “Getting People
Engaged”, Chapter 10, pages 140-156
in The Necessary Revolution: How
Individuals and Organizations are
Working Together to Create a
Sustainable World, New York:
Doubleday
April 8-25
Module 8: Team Pecha
Kucha Presentations and
Course Wrap Up
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