Environmental Strategy Concepts and Development Four Readings related to Business Strategy and the Environment –Porter and van der Linde –Walley and Whitehead –Respondents to Walley and Whitehead –Stuart Hart What is meant by Win-Win?

Green and Competitive: Ending the Stalemate What stalemate? Regulation and the Environment a good thing for organizations? Traditional vs. New thought? Pollution = Inefficiency –Resource Productivity? Why is this important? –How does this argument relate to quality initiatives? –How might TQM work with Environmental programs? Innovation’s role with Environment and Competitiveness –Two innovation types End-of-pipe Prevention Examples? Does Regulation drive innovation?

Green and Competitive: Ending the Stalemate Why is Regulation needed for Innovation? –A market drive may be needed to aid innovation. –What is meant by the “rarely see $10 bills on the ground?” –Inexperience causes a barrier to environmental innovation. –Organizational inertia is a barrier –What to do?

Green and Competitive: Ending the Stalemate Environmental Innovation Friendly Regulations Create pressure that motivates companies to innovate. Make sure regulations improve environmental quality Alert and educate companies about ineffeciencies and areas for technological improvement improve likelihood that innovations are environmentally friendly create demand for environmental improvement level the playing field making sure every one makes environmental investments

Green and Competitive: Ending the Stalemate What needs to be done Overall? –Remove “Static” thinking (organizations) –Make Regulations less adversarial more cooperative –Less specific regs….address “whats” let organizations worry about “hows” –Managers need to realize that environmental improvement is a competitive opportunity. (org) –Make environmental decisions internal….not just delegated to adversarial external parties (org) –resource-productivity rather than pollution control model must govern decision making (org)

Green and Competitive: Ending the Stalemate What do they recommend to managers? –Measure direct and indirect environmental impacts (can’t manage what you don’t measure). –Learn to recognize the opportunity cost of underutilized resources –create bias in favor of innovation based, productivity enhancing solutions –develop proactive relationships with regulators/environmentalists.

It’s Not Easy Being Green Should win-win be at the core of an organization’s environmental strategy? Yes? Why? No? Why not? Do they say let’s go back to the old ways? –What should be maintained?

It’s Not Easy Being Green Two era’s of environmental management (Fischer and Schot) resistant adaptation embracing environmental issues with no innovation win-win derived from second era. Tradeoffs -Where are the tradeoffs? What is meant by low-hanging fruit? Where to make innovations? Is rabbit-out-of-the- hat a way to solve problems?

It’s Not Easy Being Green What is the “trade-off” zone? What is the value based approach? What framework do they recommend? –What is “The Triage Framework?” –Does it make sense? –Does it help to more efficiently and effectively guide environmental spending?

Which way? Not all win-win opportunities are insignificant (Clarke) more efficiency in regulatory system still needed (Clarke) more strategic vision, not operational as win-win assumes. (Clarke) Are regulations good/bad for competitiveness? (somewhere in between).(Stavins) What about the rest of the world? (Greeno) Are they short-sighted? (Bavaria) Regulations inefficient and political (Cairncross) Porter’s arguments were for both sides, regulators/industry (Esty) etc. Anything interesting of note that you found?

Green Management Theories Resource based view of firm (Hart) making the environment a strategic and competitive part of the firm. –Three categories PP Product Stewardship Sustainable development –Should not only be theory..but actual normative practice.