1. Corporate Environmental Management
OM 6000

2. Class Today Introductions Syllabus
Corporate Environmental Management Background
Keith Coulter?
Video on Industrial Ecology

3. Me
-Joe Sarkis
Professor of Operations and Environmental Management
6-7 years here
Many interests (OM, Env, IS, Marketing, Accounting, Finance….etc.).

4. You Your School Background Your Work Background
Environmental Issues that you have faced at work or anywhere else

5. Syllabus We will look at how companies deal with environmental issues.
Today will be readings and brief introduction into some issues.
Next few classes will focus on environmental issues in a number of functional areas for organizations.

6. Breakdown of grade 1 Team Case Write-up - 30%
1 Team Industry Evaluation %
Case Executive Summaries %
Class Preparation and Participation %

7. Schedule Each Week a new case. Case questions on web-site.
One change to schedule – In Two Weeks – Polaroid Case.
Let us take a look at website syllabus.

8. Corporate Environmental Management

9. Basic Philosophical Elements and Issues of the Environment
The Litany
Global Problems
Global Warming - Warmest Years on Record
Ozone Depletion - Big Hole in Atmosphere
Species Decimation
Regional Problems
Deforestation
Acid Rain
Water Pollution - Rivers, Lakes
Local Problems
Pesticides - Hazardous Materials
Waste Disposal

10. Basic Philosophical Elements and Issues of the Environment
Are these concerns realistic?
Are some more realistic than others?
How serious are they?
What are some example implications for business? For these problems?

11. Changes in the Environment: The Master Equation
EI =
Population x x
GDP EI
Person unit of per capita GDP
EI = Environmental Impact
GDP = Gross Domestic Product
Population = Population Concerns
GDP/PERSON = Affluence Concerns
EI/Unit of Per Capita GDP = Technological Concerns
What Alternatives Exist to Manage EI Here?
What areas Does Commoner think we should focus upon?
Paul Ehrlich?

12. Environmental Consciousness
What is man’s role with nature?
Take Dominion over it? Dualistic?
What is meant by that?
Nature exists to serve humans
anthropomorphic view
is environment in “profit” equation?
In calculation of “national” accounts?
Linear “Design” of production.
What is it and why might it no longer be applicable?

13. Stages of Environmental Concern
Conservation
Use resources wisely - nature’s utility is in its service to humans
Preservation
Leave certain areas alone - nature has intrinsic value
Protection
pollution control - protect humans
Sustainability
global perspective, “sustainable growth” (pg. 17), and equity.
What is the basic theory behind equity and sustainability?

14. Ecology Analysis and evaluation can be carried out at many levels
Individual Organism
Population (individuals of same species)
Community
Ecosystem - non-biological (abiotic) integration.
Biomes - grouping of ecosystems
Analogy to organizations and business?

15. Management Theory and the Environment
Anthropocentric Theories
Ethics and stuff.
Economic
Corporate Social Responsibility
Stakeholder
Normative
Social Contract
Green Management Theories
Ecocentricism
Adjusted Stakeholder
Sustainablity
Resource Based Theory

16. Environmental Ethics and Business
Western Society - Objectifies Nature
Locke - “Something in a state of nature has no economic value and is of no utility to the human race”
Ethics - a concern with actions and practices directed to improving the welfare of people.
What are the environmental implications of this statement?

17. Economic Fundamentalism and Ethics
The corporate social responsibility of a business is to increase profit. - M. Friedman
Those things that cannot be traded on the market have no value.
Where does the environment fit in these definitions for environmental ethics?

18. Corporate Social Responsibility
What is it?
By doing socially responsible things, businesses better human life.
Supposedly ..good ethics is good business.
Is this true?
Is enlightened self interest a good way to push this?

19. Incorporating Environment into Management Theory
Environmental Ethics is a starting point.
Expanding ethics to include nature.
What is the difficulty in doing this?
What does the Biocentric ethic say (Goodpaster?)
Biocentrism
Natural objects have intrinsic value and morally considerable in their own right.
Deep Ecology nature has an ethical status at least equal to humans.

20. 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?

21. 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?

22. 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?

23. 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

24. 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)

25. 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.

26. 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?

27. It’s Not Easy Being Green
Two era’s of environmental management
(Fisher 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?

28. 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?

29. Which way? Anything interesting of note that you found?
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?

30. 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.

31. Corporate Behavior and Reputation
In 1995
What did consumers think of businesses and environmentalism? Were they doing better? Were they doing enough?
What do you think consumers feel?
A Couple Questions:
Is Corporate Environmentalism a Fad?
Is Corporate Environmentalism a Conspiracy?