Topics Organiz Behavior
Topics Organiz Behavior MGT 291
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Date Created: 09/09/15
Graduate School of Management GREENING BUSINESS Moving Beyond University of California Davis Compliance and Toward Green Strategy FALL 2007 Thomas D Beamish Course MGTP 291 Associate Professor Room 261 AOB IV Department of Sociology Day amp Time Tuesday s 6 900 pm Email tdbeamishucdavisedu 10 Sessions Office 2271 SSampH Phone 7546897 COURSE OVERVIEW The focus of this course will be what farsighted thinkers entrepreneurs and commercial firms are proposing and doing to address widespread and deepening anxiety over worrisome environmental trends while improving their own bottom lines Called by some strategic environmentalism this is a winwin view of environmental protections and business opportunity that hails a change in orientation for many in the commercial sector where previously environmental wins tended to be viewed as business losses Indeed until quite recently common knowledge amongst America s business elite has been that environmental protections are an unrecoupable cost pushed by environmental activist Cassandras and enforced by overly zealous government regulators A case in point the US auto industry continues to resist pollution controls claiming the costs are prohibitive US auto makers have also lagged in their manufacture of electric hybrid and alternative fueled vehicles claiming there is not strong enough consumer demand to warrant mass production In contrast their Japanese counterparts Toyota and Honda have embraced the opportunity and now dominate the hybrid auto market Thus even as some firms and industries have resisted the changing rules for doing business a small but growing number have embraced a new view of environmentalism as an opportunity Patagonia nc Interface Corporation Toyota Dell Inc Cliff Bar Gap Inc Proctor and Gamble and Honda Corp are among a growing list have each benefited from strategically pursuing environmental goals that in turn benefit the environmental commons Finally while our focus will be on the commercial sector the general trends and implications of much of what we will discuss will also be widely applicable to nonprofit organizations and individual consumers COURSE FORMAT We will meetTuesday evenings for three hours 10 times this quarter These sessions will be divided into two and sometimes three parts dependant on whether we have a visiting speaker andor video showing The first part of each class will involve a lecture on a principal topic relevant to business organizations and the environment eg strategic environmentalism domestic regulation and economic incentives international standards and accords the role of investors buyers and suppliers targeting green consumers social and cultural pressures the ecological modernization of production and globalization and just and sustainable development The second part will involve discussion of identified cases or readings and the third portion videos and orvisiting speakers Readings and case preparation must be completed before the class meets if we are to get anything out of discussion Readings will present a handful of viewpoints strategies and cases While reading these you should ask yourself Do understand the issue being discussed and How might this affect my decisions as a manager investor or consumer I also urge you to seek to understand each issue from the 1 multiple standpoints presented This does not mean you must agree with all points of view but rather strive to see and understand them on their own terms What is more because the environment is a topic that inspires strong opinion we need to keep the debates and discussions rational and reasonable and move away from extemporaneous philosophizing and hyperbole Excellent discussions reflect the sharing of original and relevant perspectives that move the whole discussion or analysis forward by building off of previous contributions However they must move beyond i feel it is so or observations based entirely on personal experience Keep this in mind when we discuss the environment Finally related to class to a great extent the success of MGT 2912 pivots on the quality of class discussion my expectation is that students will engage course materials and make beneficial and insightful comments For this reason I reserve the right to use student contributions to class to adjust a final grade upward by onethird a letter grade That is students who contribute often M insightfully might increase their final grade say from a B to a 8 or from a 8 to and A and so forth COURSEWORK amp EXPECTATIONS Position papers At the end of each section ie week s topic reading and cases there are provocative topics for the week Students will compose a 2 to 35 page maximum please single spaced brief related to course materials on two occasions this quarter one is due before midway point in the term on or before the November 30th class and the other after the mid way point Your position paper is due to me one week after the topic has been covered in class discussed andlor relevant readings have been assigned Please email them to me as Worddocs so that I can type comments into them I will return them either by email or hard copy after I ve read and commented on them The position papers are meant to challenge you to engage the materials They need not be pro or antienvironment or pro or antibusiness However knee jerk anti or pro arguments will be looked on skeptically l expectyou to move beyond facile arguments such as those that are common on AM radio like environmental problems are just lefty propaganda or likewise that appear on environmental blogs such as all business is inherently evil and thus antienvironment I expect you to found your arguments in some defensible framework Neither one ofthe above is on its face defensible as there is to much strong scientific documentation on the problems we collectively confront to pretend otherwise and there are indeed firms out there that are doing and incredible job cleaning up their acts and the environment along with it Think of this as an 0pEd Column of sorts the kind you would see perhaps in the New York Times or Wall Street Journal or at least those that are done well and done using more than purely ideological presumptions to make their case Another difference your position papers are to reference course materials directly through the use of formal citations and should also include a bibliography of sources used this is excluded from the page length parameters I will assess your position papers based on the following three dimensions Clarity the clarity of your papers form and content Comprehensiveness how well your paper documents its claims with reference to course materials and points of view and Argumentation how well it reasons from an initial claims to its conclusions and in doing so addresses and defends against rival explanations and positions Sustainable Enterprise Assessment jSEAj For more explicit directions see SEA project handout Student teams will produce an SEA that addresses the environmental challenges faced by a business and that includes the development of a detailed Environmental Performance BaselineEPB from which the team will then design a Strategic Environmental PIanSEP in response to the challenges uncovered in the EPB The SEP should aim to improve both the firm s bottom line and substantially improve their environmental performance The firm you choose must be approved by me in advance of your research effort My recommendation is that you choose a regional firm that you can visittour and whose managers you can interview and follow up with questions if needs be However you can choose whatever firm you like as long 2 as you can compile the extensive amount of information required of the SEA again see the SEA project handout Teams will submit an initial proposal electronically by the end the 3 d week of class October 16th The final SEA will be due December 10h SEA Presentation Your team will also present the results of your SEA to the class in a 1015 minute PowerPoint presentations on the last day of class December 4 time allotted to each team depends on enrollment and the number of teams presenting Each member of the team is expected to play an equal and substantive role in this presentation SEA Peer evaluation Finally while everyone is expected to contribute to their teams it is inevitable that some will notdo so in equal amounts To address this possibility each member ofeach team will also be expected to separately submit an evaluation of their peers and their own efforts on the final SEA Peer evaluations are to reflect two dimensions 1 The level of effort that each team member including oneself contributed to the final SEA High 4 pts Medium 3 pts Low2 pts Poor 1 pts and 2 The substantive contribution of each team member including oneself contributed to the final SEA High 4pts Medium 3 pts Low2pts Poor 1 pts Students will be afforded peer evaluation points by my adding up all evaluations including your own of your effort and dividing by the number of teammates for an average evaluation score I will hand out or send electronically Peer Evaluation Forms sometime near the end of the quarter Peer Evaluations are due to me electronically by December 11 the day after teams turn in their final SEA COURSE BREAKDOWN Position Paper1 due on or before Oct 30 15 pts Position Paper2 due on or before Dec 4 15 pts Sustainable Enterprise Proposal due on or before Oct 16 8 pts Sustainable Enterprise Presentation done in class Dec 4 20 pts Final Sustainable Enterprise Assessment SEA due Dec 10th by 500 pm 30 pts Peer Evaluations emailed and due Dec 111h by 500pm 12 pts Course discussion participation discretionary TOTAL 100 pts COURSE MATERIALS There is a course packet downloadable at Studynet and a course text as well M V Russo 1999 Environmental quot Readings and Cases Houghton Mifflin Co These readings should be supplemented by steady diet of contemporary environmental and business issues and events that unfold each day and week as published in the New York Times Wall Street Journal and your local paper Sac Bee SF Chronicle LA Times Etc I encourage you to bring the issues you observe in and share them with the class as they can also add to our ongoing discussions By substantive contribution I mean the level a team member contributed to the substance ofthe SEA ideas insights creative aspects problem solving and solutions or put another way to the conceptualization of the SEA 3 TOPIC OUTLINE amp COURSE SCHEDULE WEEK 1 Introduction Oct 2 Readings Lester Brown and Jennifer Mitchell 1991 Building a New Economy State of the World 2 Course Text Herman Daly 1990 Sustainable Growth The Impossibility Theorem Development No 34 4547 Reader W Rees 1992 Ecological Footprint and Appropriated Carrying Capacity Environment and Urbanization VOI 4 121130 The Living Planet Facts And Figures BBC NEWS httplnewsbbccouk Published 20061024 150608 GMT Reader CaseDiscussion and Position Paper Topic J Simon YES Life on Earth is Getting Better Not Worse The Futurist 328333 Reader L Grant NO The Cornucopian Fallacies The Myth of Perpetual Growth The Futurist 334343 Reader Discuss the case of Cornucopian s or Cassandra s above given your own views the in class discussion and the course readings With which philosophical approach do you most identify or is there a middle ground you inhabit7Why and why not Analyze the competing views of Grant and Simon both are seasoned intellectuals with arguments based on ideas that are viewed as theoretically sound by their home disciplines ecology and economics What issues do they raise that resonate with you and challenge reinforce or your conception managing in business investing or indeed consuming Consider why such serious and seriously talented scholars can disagree so strongly Who s rightand Who s wrong or What s rightand wrong aboutboth72 WEEK 2 Moving Beyond Green Management and Toward Green Strategy Oct 9 Readings S L Hart Beyond Greening Strategies for a Sustainable World Harvard Business Review 1 Course Text W E Stead and J G Stead Strategic Management for a Small Planet Management for a Small Planet 12 Course Text Michael E Porter and Claas van der Linde 1995 quotGreen and Competitivequot Harvard Business Review SeptemberOctober 120134 Reader R J Orsato 2006 Competitive Environmental Strategies When Does it Pay to be Green Harvard Business Review Winter Vol 48 No 2 Reader 2 Side note Julian Simon a Universityot Maryland economist and Paul Ehrlich a population ecologist at UC Berkeley entered a bet in 1985 Simon in an article published in Science challenged anyone to a bet thatthe price of any natural resource would be lower not higher on a mutually agreed on future date A group of population ecologists from UC Berkeley lead by Paul Ehrlich who believed that as population grew so would the cost of natural resources accepted Simon s offer They bet 1000 on the expected price of five metals chrome copper nickel and tungsten If the prices fell belowthe 1000 in 1980 dollars the Ehrlich group would paythe difference if the prices roses Simon would pay the difference During the 1980s 800 million people were added to the worlds population and the price of the five metals fell Simon won the bet Does this settle the issue Who uses the most resources persons and industries Where population growth is greatest or slowest What is more it as an industry I can dig deeper faster and at a lower cost does this mean natural resources are more plentiful and the environment is in better shape Assess discuss explain 4 Claudia H Deutsch 2007 Companies Giving Green an Office New York Times July 3 B1 Cornelia Dean 2007 Executive on a Mission Saving the Planet New York Times May 22 Tuesday Science Desk Section F Page 1 Column 3 Speaker David Olsen leads collaborative planning for transmission and renewable energy development projects He is the former PresidentCEO of Patagonia Inc a pioneer of sustainability practices in commerce Earlier he led the development of wind solar hydro and geothermal power projects in more than 20 countries as President of Clipper Windpower Development President of Peak Power Corporation PresidentCEO of Northern Power Systems and Vice President of Magma Power Company In 2000 he led creation of the California Climate Action Registry the first state registry of greenhouse gases David Olsen s focus is now on the practical next steps that support both companies and government agencies to take advantage of the opportunities of building a socially and ecologically sustainable economy Position Paper Topic Are the goals of business anol that of environmental protection compatible Some view current business practices as entirely compatible Others regard the profit motive as incompatible with protecting the environment What are your views Can the business of profit making be made entirely compatible with environmental protections and true sustainability Describe explain discuss WEEK 3 US Domestic Regulation Carrots Sticks or Carrots m Sticks Oct 16 Reminder Sustainable Enterprise Proposal is due on or before Oct 16Th Readings P R Portney EPA and the Evolution of Federal Regulation Resources Washington DC 6 Course Text Frances Cairncross Costs and Benefits Costing the Earth the Challenges for Governments the Opportunities for Business 7 Course Text W Harrington and R D Morgenstern 2004 Economic lncentives versus Command and Control What s the BestApproach for Solving Environmental Problems Resources for the Future Washington DC FallWinter 1317 Reader CaseDiscussion and Position Paper Topic ls ltlmmoral to Buy Pollution Credits7M Sandel 1997 Its lmmoral to Buy the Right to Pollute NYT Editorial December 15 A19 R Stavins 1997 What s Immoral Letter to the Editor NYT December 17 A20 E Maskin 1997 Not lf But How Much Letter to the Editor NYT December 17 A20 S Gaines 1997 Technology Not Stigma Letter to the Editor NYT December 17 A20 Reader Market incentives are designed to place an economic value on the environment In doing so according to advocates the values of the market are brought to bear in protecting the environment Others feel however that market values are unable to capture the full or specific value of the environment as the term environment itself is a euphemism that oversimplifies and undervalues how totally dependant we are on air water soil plants animals but also the beauty of open space and need for unmanaged natural environments to survive They ask how much is a view worth how much is a species worth and as it relates to trading pollution credits how much is pollution worth when it is say your child s asthma that is in question For these folks environmental protection and pollution control is an inherently moral issue Considering the views of those we have discussed in class such as the debate amongst ethicists and economists what is your view Are market machinations commensurate with the moralityimmorality of polluting and pollution control efforts WEEK 4 International Regulation and The Environment Trade Agreements and Voluntary Initiatives Oct 23 Readings T Tibor and Ira Feldman Introduction to ISO 14000 ISO 14000 20 Course Text The Natural Step to Sustainability Wingspread Journal Vol 19 No 2 21 Course Text Thomas Lyons 2003 Green Firms Bearing Gifts Regulation Fall Pp 3640 Reader A Hoffman 2004 Winning the Greenhouse Gas Game Harvard Business Review F0404B Reader CaseDiscussion Murray Silverman and Tom Lanphar 2003 The Benziger Family Winery ISO 14001 Reader Position Paper Topic Are there limits to growth in the world economy7The development of international agreements and accords are driven by assumptions regarding free trade comparative advantage and the desire to expand the global economy continuously Advocates claim that prosperity must come before environmental concern can develop A central question is whether the promise of free trade and infinite growth is sustainable or whether more draconian measures must be in place to assure that the commons is protected for future generations Your thoughts Are there limits to growth even given all this greenness Will a richer world lead to better environmental performance as some claim will there be a world left to protect once we ve collectively reached this point of richness and at what point are we rich enough given that we are currently the richestsociety in real terms in human history WEEK 5 Keeping The Market Pressure On The Role Of Buyers and Suppliers in Fomenting Environmental Initiatives Oct 30 Reminder Position Paper 1 due on one of the topics covered on or before the week of Oct 30th Readings A Hoffman 1996 A Strategic Response to InvestorActivism Sloan Management Review Winter 5164 Reader G S Miller V Dessain Anders Sjoman 2006 When Investing and Social Objectives Meet Harvard Business Review August Notes 9106043 Reader Peyton Fleming 2007 TXU Exxon Mobil among 10 39Climate Watch39 Companies Targeted by Investors Ceres News Wednesday February 14 Reader CaseDiscussion and Position Paper Topic The U WA Tribe Sinsinawa Sister shareholders and Occidental Petroleum Corp Peter Waldman 1999 U39wa Chieftains Carry EcoFightTo Doorstep of Corporate America Wall Street Journal June 7 page A1 The U WA Defense Working Group 1999 The U WA Occidental Shareholder Briefing April Spencer Adler 1999 Letter to Shareholders from The Sinsinawa Dominicans Reader Should investors be held personally culpable for the social and environmental transgressions of their investments Put another Way What role and indeed culpability do business nanciers shareholders venture capitalists institutional investors etc have in the ventures they finance and from which they expectdividends and returns In our system investors are not typically held directly accountable for the excesses of the firms in which they invest we as investors are allowed the luxury of remaining ignorant or figuratively can look the other way as the engines behind our affluence pursue strategies that some claim knowingly ruin the environment and exploit other human beings In brief should investors be held personally financially even criminally accountable for example paying fines and doing time for investing in and receiving profits from firms that pursue antisocial and antienvironmental strategies and behaviors Why or why not WEEK 6 Recognizing Market Constituents Targeting Consumers With a Consoienoe Nov 6 Readings Paul Hardy and Stuart Hart 1996 Deja Shoe Universitv of Michigan s Corporate Environmental Management Program 28 Course Text Jacquelyn A 0ttman 1998 quotConsumers with a Conscience Who Are Green Consumersquot and the Next Big Product Opportunity Green Marketing 15 amp 16 Course Text Joshua Karliner 1997 The Emerald City Advertising Public Relations and the Production of Desire From The Corporate Planet Ecology and Politics in the Age of quot39 39 quot 39 Chapter 6 pp 168196 Sierra Club Books Reader Marianne M Jennings 1995 Confessions ofa Business Ethicist Wall Street Journal September 25 A14 Reader Clifford Kraus 2007 At Home Depot How Green Is That Chainsaw New York Times June 25 Section A page 1 Reader Speaker Tracy Twist VP Marketing Mariah Power Tracy led the formation of a 200 million private equity fund dedicated to clean technology at CalPERS She also worked on the Million Solar Roof Initiative and the pilot phase of LEED for homes Tracy now runs marketing for a company making consumeroriented wind power appliances Mariah Power She holds a BA Psychology and a BS Physics from the University of British Columbia and an MBA from UC Davis 2004 CaseDiscussion and Position Paper Topic Does green marketing work Must green marketing strategy reflect both a legitimate effort on the part of a firm to pursue green initiatives and accurately portray those efforts Why shouldn t a firm play on the biases people already have and use the environment as a public relations ploy to increase their market share even if they have no intention of improving their environmental performance What risks are there to crowing about one s green badge to proudly and loudly and not measuring up once the public flood lamps reveal a firm to be a green imposter Finally do the green marketing efforts of one firm that fails to live up to its green slogans impact other firms in its industry sector or service arena Discuss explain defend WEEK 7 The Social and Cultural Pressure for Environmental Protections A Transformed Institutional Context Nov 13 Readings Aldo Leopold The Land Ethic Sand CoungiAlmanac 3 Course Text Frederick J Long and Mathew B Arnold The Emergence of Environmental Partnerships The Power of Environmental Partnerships 14 Course Text Kemeldorf et al 2006 Consumers with a Conscience Will They Pay More Contexts Winter 2429 Reader 3 For example BP spent more than 200 million about its green rebranding initiative called It s a Start and Beyond Petroleum and received positive coverage for doing so But recently BP has been fined cited and sued for accidents and oil spills that reflect negligence in their infrastructural upkeep and fortheir poor environmental performance 7 Lynn Lunsford and Daniel Michaels 2007 On Paris s Jet Runways Green is the New Gray The Wall Street Journal Section Marketplace Friday June 22 B1 Reader CaseDiscussion Alissa J Stern 1991 The Case of the Environmental Impasse Harvard Business Review 91311 NOTE This will be handed out in class and will not appear on WWWstudynet Position Paper Topic ls there inherent value to nature or should business practices remain unfettered by values that have no place in formal economic deliberations Put another way does the environment have value if there is no human there to enjoy it use it and thus place a value on it See Aldo Leopold reading in course text If yes how does one reconcile life s inestimable costs with the most basic of tool on which business decisions are heavily indeed utterly reliant costbenefit analysis under which moralvalues are supposed to have no place If there is an inherentvalue how does one approach it from a business perspective If not are you and other products of nature only worth what the actuarial charts or the market pricing claims Discuss Video Rachel Carson and Silent Spring WEEK 8 Ecological Modernization EcoTrends and Design for the Environment NOV 20 Readings Peter Cebon 1993 Corporate Obstacles to Pollution Prevention EPA Journal Pp 2022 13 Course Text Susan Svobaoda 1995 quotNote on Life Cycle Analysisquot Universim of Michigan 17 Course Text Braden R Allenby 1994 Integrating Environment and Technology Design for the Environment m Greening of Industrial Ecosystems 19 Course Text William McDonough and Michael Braungart 1998 The Next Industrial Revolution The Atlantic Monthly October Volume 282 No 4 8292 Reader CaseDiscussion Richard HK Vietor and Fiona ES Murray1994 Xerox Design for the Environment Harvard Business School Reader Position Paper Topic ls technology the solution or is the solution ie technology the problem Until quite recently religious and intellectual traditions in the west have typically conceptualized nature as the opposite of human civilization Technology indeed science itself has often been conceived of as a means of controlling and even torturing the secrets out of nature to quote Sir Francis Bacon father or empiricism Even more contemporary thinkers like biologist and Pulitzer Prize winner Rene Dubos have viewed humans as stewards of nature who should intervene and invent new futures not predicted from the deterministic natural order of things Others such naturalists like H D Thoreau Walden Pond Rachael Carson Silent Spring and Aldo Leopold Sand County Almanac while not being antitechnologists urged humankind to balance its needs with those of ecosystems on which it depends and show respect for something that transcends humanity Finally Bill McKibben Deep Economy an environmental writer holds that 4 Also relevant but not required reading in your course text The Procter and Gamble Company DisposableReusable Diapers 32 Course Text Mathew M Mehalik et al 1997 Designtex Incorporated A 33 Course Text technology does not hold the answer more technology to solve technologically derived problems generates deeper and more profound problems which in turn begets more technological solutions leading to more problems ad infinitum How should we resolve environmental problems then Which perspective is correct Can we really improve ecological systems with technological interventions and if so perhaps you know of an example In short is technology the solution to our problems or must there be more to it than technological innovation alone WEEK 9 Upward Harmonizing or Downward Leveling Globalization Strategic Environmentalism and Just and Sustainable Development Nov 27 Readings Edward Goldsmith 1996 Global Trade and the Environment The Case Against the Global Economy 10 Course Text Daniel Esty 1994 Making Trade Work for the Environment Greening the GATT 11 Course Text J Bhagwati 1993 The Case for Free Trade Scientific American November 4249 Reader H Daly 1993 The Perils of Free Trade Scientific American November 5057 Reader Elizabeth Economy and Kenneth Lieberthal 2007 Scorched Earth Will Environmental Risks in China 0verwhelm lts Opportunities Harvard Business Review Reader CaseDiscussion and Position Paper Topic Lawrence Summers 1992 Let them Eat Pollution The Economist Feb 8 p 66 Reader How free should free trade be How much power should a society cede to GA TTWTO in its regulation of trade and their impact on a Wide range ofother non trade based issues like the environment social justice and even domestic business competitiveness7Evaluate the The Lawrence Summers World Bank Memorandum What does it represent philosophically as it relates to what we have covered thus far this quarter and specifically this week Does the logic of Summers argument make sense If so for whom If not why For example if the positives of free trade are gains any given country can make through its comparative advantage is it an advantage to be so poor uneducated and skillless as a nation that your destiny is to be a waste dump Is this state of affairs the fault of the inhabitants of any given nation Likewise can you claim that its due to your skills and efforts that the US is currently on top In short should theoretical arguments like comparative advantage be extended to the disposal of pollution eg the Summers Memorandum is the example here Furthermore should countries be treated as if they were corporations in competitive marketplaces the context within which comparative advantage may best apply Put another way are we employees of the societies to which we belong or citizens Is there a difference In the end can the issues presented in the Summers memorandum free trade and comparative advantage be reconciled with the pursuit of a clean and healthy environment as well as just work and living arraignments This is obviously a fertile topical arena explain some of it away Video Videos Black Gold Shields Reserves Media Order in process r China Blue g China from the Inside WEEK 10 Student Presentations and Wrap It Up Dec 4 Reminder Position Paper 2 due on one of the topics covered on or before the week of Dec 4 h Reminder Final Sustainable Enterprise Assessment SEA due Dec 10 by 500 pm Reminder Peer Evaluations emailed and due Dec 111 by 500pm
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