DSCI 493/593
Sustainable Business Operations
Spring, 2012
Prof. Mark E. Ferris
Topics
• Guest Speaker Greg Stine
– Sustainability Consultant
– SustainEdge
• Business Motivation for Sustainable
Operations
• Discuss The Tragedy of the Commons
• Common Break 7:15-7:45
• Business Case for Sustainability
Goals
• Students should be able to develop writing skills that are
essential to critical thinking.
• Students should be able to interpret theoretical texts and be
able to communicate their developing ideas to their peers.
• Students should be able to construct a coherent argument
and support it with evidence which will allow them to
participate in class discussions and debates.
• Students should be able to understand, appreciate and
constructively criticize multiple perspectives, including
their own.
The Tragedy of the Commons
•
•
•
•
Discuss the Tragedy of the Commons
What is the tragedy? Where does it operate?
Can it be avoided? How?
How do we educate businesses?
Tragedy of the Commons
• An old idea – animation
• http://www.youtube.com/watch?v=EZFkUe
leHPY
• Nobel Laureate Economics: Elinor Ostrom
• http://www.youtube.com/watch?v=ByXM4
7Ri1Kc
• Discuss
Different Views of Economy
• Carbon Economy by The Economist
• http://www.youtube.com/watch?v=cju6Zi4
OT54
• Libertarian View of Resource Constraints
• http://www.youtube.com/watch?v=AcWkN
4ngR2Y
• Discuss: What me worry? The market will
solve all economic scarcity problems.
Group Project: The Business
Case for Sustainabilty Video
• Take a look at Ray Andersons TED Talk
“The Business Logic of Sustainablity”
• http://www.youtube.com/watch?v=iP9QF_l
BOyA
From Green to Gold
(Esty and Winston)
• Eco-Advantage – GE, WalMart – caught in the “Green
Wave”
• Pressures – limits of the natural world and growing
concern of stakeholders
- Stockholders, Government, Citizens, NGO’s, etc
• Upside Benefits
– By focusing on future e.g. Toyota Prius good strategy
• Downside Risks
- Environmental disasters, (BP, Union Carbide, Exxon
Valdez)
Natural Drivers of the Green
Wave
•
•
•
•
•
•
•
•
•
•
Climate Change
Energy
Water
Biodiversity and Land Use
Chemicals, Toxics, and Heavy Metals
Air Pollution
Waste Management
Oceans and Fisheries
Deforestation
Ozone Layer
Magnifying Forces
•
•
•
•
Globalization and Localization (Flattening - Friedman)
Insecurity (Terrorism, energy security)
Government increases, Business decreases
Rise of the Middle Class in Emerging Economies (China
and India)
• Pressure from Poverty (Strain resources, commons)
• Better Science and Technology (Identify environmental
problems better e.g. fracking and methane)
• Transparency and Accountability (The Web, Blogging,
Crowd Sourcing)
Who’s Behind the Green Wave
•
•
•
•
•
•
•
•
•
•
•
Government and Regulators
NGO’s
Politicians
Media
Think Tanks and Research Centers
Academia
Industry Associations
Business to Business Buyers and Greening the Supply Chain
Suppliers
Consumers
Kids (the Future)
Who’s Behind the Green Wave
cont.
•
•
•
•
•
Communities
Employees
Shareholders
Insurers
Banks and Capital Markets
Competitive Advantage on a Warming
Planet (HBR, March 2007)
• Risks
– Regulatory (local, state, national, international)
– Supply Chain (vulnerability of suppliers i.e.
developing and third world)
– Product and Technology (managing emissions
better)
– Litigation (court judgments/fines/legal fees)
– Reputation (judgment by public and
shareholders)
– Physical (changing climate)
Improve Competitiveness
• Quantify your carbon footprint
• Assess carbon-related risks and
opportunities
• Adapt your business in response to the risks
and opportunities
• Do it better than your competitors.
This Week in the Public’s View
• New York May Ban Shark Fins – NYT and PEW
• http://www.nytimes.com/2012/02/22/nyregion/bill
-in-albany-would-ban-sale-of-sharkfins.html?_r=1&scp=1&sq=ban%20on%20shark
%20fin&st=cse
• http://www.pewenvironment.org/newsroom/press-releases/pew-statement-on-proposednew-york-shark-fin-ban-85899371326
Homework
• Read “Deloitte Touche on Carbon Emissions and Stephen
Jay Gould on “The Median is not the Message” (see
syllabus and online address)
• Write a 1 page summary of the Gould article and its
message about interpreting and analyzing data.
• Write a 2 page paper analyzing why companies do not
adopt sustainable practices and why they should.
• Write a 1 page speaker review paper.
• Continue developing your strategy for creating the “The
Business Case for Sustainability” video.
• http://www.youtube.com/watch?v=TMkPCL59hNM