MBA 292 T.1 and 11 CORPORATE ENVIRONMENTAL STRATEGY AND MANAGEMENT Thursday 4-6, 127 Dwinelle, 2 units Professor Christine Rosen 577 Faculty Wing of Haas School of Business: 642-8695 Office Hours: Friday 1:30-2:30, and by appt. crosen@haas.berkeley.edu (please put BA 278 in subject line of all communications) This course will provide an overview of critical developments in corporate environmental strategy and management. Environmental problems create economic opportunities as well as risks for companies. To maximize their firm s competitive edge, managers need to know how to spot opportunities to initiate changes in their company s value chains to generate value from their environmental risk reduction and regulatory compliance programs. Even more important, they need to be able to take advantage of the business opportunities inherent in society s demands for solutions to environmental problems. Readings, lectures, guest speaker presentations, and class discussion will prepare students to think about the strategic business opportunities at the heart of society s need to conserve resources and solve environmental problems. We will cover environmental management systems, key topics in product, process, and service design and environmental marketing, environmental strategy, entrepreneurship, and change management, and current issues in the international debate on sustainability. These concepts, strategies and management tools originate in a wide variety of new fields of research and management practice, including industrial ecology, product life cycle analysis, the Natural Step, design for environment, and activity based accounting. They enable corporate managers to reduce environmental impacts while creating long term competitive advantage for their firms. To be effective, managers must have the skills to carry out action plans that can achieve the support of key actors within their firms as well as in other firms and organizations. Outside speakers to talk about their experiences as corporate environmental change agents, environmental entrepreneurs, and environmental consultants, sharing their insights into what has worked for them, what has not, and what still needs to be done. We will also use cases and other readings to explore the practical difficulties and dilemmas that complicate efforts to implement the ideas, techniques, and technologies we will be discussing. We will also consider market and regulatory developments that are encouraging or might be used to facilitate the adoption of the new strategies and technologies. This course is an MOT (Management of Technology) elective. ASSIGNMENTS:
Name Plates: Students must display nameplates in class to help me (and the guest speakers) attach names to faces. Attendance is mandatory. Seats should be kept consistent throughout the term for attendance. Class Discussion: Students should come to class prepared to discuss the readings and the broader issues they raise and to participate actively in class discussion. The speakers welcome and expect lively interaction and exchange of ideas with members of this class. I expect you to arrive at the start of class. Paper: You will turn in one short paper, 4-5 pages in length. See class handout for details. Final Project: You will prepare a final project or a longer research paper. See class handout. Class Discussion 40% Paper 20% Final Project 40% GRADING READINGS REQUIRED Andrew J. Hoffman, Competitive Environmental Strategy: A Guide to the Changing Business Landscape (Washington D.C.: Island Press, 2000). John Elkington, Cannibals with Forks: The Triple Bottom Line of 21 st Century Business (Gabriola Island BC: New Society Publishers, 1998). Course Reader: UCB: Purchase at CopyCentral, on Bancroft. UCD: Purchase at UCD student book store. OPTIONAL* Paul Hawken, Amory Lovins, and L. Hunter Lovins, Natural Capitalism: Creating the Next Industrial Revolution (Little Brown and Company, 1999). Brian Nattrass and Mary Altomare, The Natural Step for Business: Wealth, Ecology and the Evolutionary Corporation (New Society Publishers, 1999). *These books are also on sale at student book stores. They are not required reading. They are interesting, well written, relatively inexpensive and very useful books that I thought you might be interested in having in your libraries. CLASS SCHEDULE
Jan. 23: Overview: From Environmental Management to Environmental Strategy Hoffman, Competitive Environmental Strategy: Ch. 1, pp.1-26. Elkington, Cannibals with Forks: Ch. 1, pp. 1-16. Optional: Elkington, Cannibals with Forks: Chs. 2-3, pp. 17-68. Strategy Drivers Jan. 30: Market Drivers Hoffman: Competitive Environmental Strategy: Chs. 4-5, pp. 70-104 *Case: Sustainable Development and Socially Responsible Investing: ABB in 2000 (Harvard Business School, Case 9-701-082, 2001). Optional: Elkington, Cannibals with Forks: Ch. 5, pp. 99-121. Feb. 6: Social and Regulatory Drivers Hoffman: Competitive Environmental Strategy: Ch. 2-3, pp. 31-9 and Ch. 6, pp. 105-126. *Case: Natural Resources Defense Council, Preventing Industrial Pollution at its Source: A Final Report of the Michigan Source Reduction Initiative. (Go to http://www.nrdc.org/cities/manufacturing/depth.asp and follow links to the report.) Feb. 13: Finding Environmental Business Opportunities in Emerging Market, Social and Regulatory Developments Guest Speaker: Gil Friend, President and CEO, Natural Logic http://www.natlogic.com/ other readings to be announced Creating Firm Capabilities: Environmental Management Tools, Technologies, and Systems Concepts Feb. 20: Strategy Originates Within the Organization: The Value of Corporate Environmental Accounting and Management Systems Hoffman, Competitive Environmental Strategy: Ch. 8: 160-182. Elkington, Cannibals with Forks: Ch. 11, pp. 275-301 and Ch. 14, pp. 371-381.
*Case: Specialty Glass, Inc: Cost Accounting and Hazardous Waste, (World Resources Institute, Management Institute for Environment and Business case, 1998). Feb. 27: Environmental Management Systems, ISO 14001, and the Natural Step Guest Speaker: Charles McGlashan, Environmental Consultant * Brian Nattrass and Mary Altomare, Part One: Designing the Future, The Natural Step for Business: Wealth, Ecology and the Evolutionary Corporation (New Society Publishers, 1999), 3-42. *Case: International Hardware Products, Inc: Considering an ISO 14001 Environmental Management System, (World Resources Institute, Management Institute for Environment and Business case, 1997). Mar. 6: Life Cycle Analysis: Product and Process Innovation from a Systems Perspective Elkington, Cannibals with Forks: Ch. 8, pp. 187-218 *Paul Hawken, Amory Lovings, L. Hunter Lovins, Tunneling Through the Cost Barrier, and Muda, Service, and Flow from Natural Capitalism: Creating the Next Industrial Revolution (Boston: 1999), pp. 111-143. *Case: Designtex, Incorporated, (Darden Graduate School of Business Management, University of Virginia, Case UVA-E-0099, 1996). Mar. 13: Trends and Opportunities in Clean Energy Technologies Guest Speaker: Joel Makower, co-founder and principal of Clean Edge and editor of The Green Business Letter http://www.cleanedge.com/index.php additional readings to be announced Competitive Environmental Strategy: When Does It Pay to Be Green? Mar. 20: Partnering for Environmental Advantage: Relational Contracting, Alliances, Voluntary Agreements within Industry and between Industry and the Non-Profit and Government Sectors Elkington, Cannibals with Forks: Ch. 9, pp. 219-245. *Case: Applied Sustainability LLC: Making a Business Case for By-Product Synergy. (Graduate School of Business, Stanford University: E-118) available
on line at: leadership.im.fju.edu.tw/case/case1.pdf (if you have trouble accessing, search on google for: Applied Sustainability LLC; click on [PDF] GSBS UAS LLC: MBCFB - S). Optional: *Christine Meisner Rosen, Janet Bercovitz, Sara Beckman, Environmental Supply Chain Management in the Computer Industry: A Transactions Cost Economics Perspective, 4 Journal of Industrial Ecology (Fall, 2001), 83-103. Optional: *Magali Delmas and Ann K. Terlaak, A Framework for Analyzing Environmental Voluntary Agreements, 43 California Management Review (Spring 2001), 44-64. Spring Break Apr. 3: Translating Environmental Factors into Business Strategy Hoffman: Competitive Environmental Strategy, Ch. 7, pp.131-159. *Case: Expanding the Playing Field: Nike s World Shoe Project. (World Resources Institute, Management Institute for Environment and Business case, 2002). Optional: *William McDonough & Michael Braungart, Putting Eco-Effectiveness into Practice, from Cradle to Cradle (New York: 2002), pp. 157-186. Apr. 10: Implementing Environmental Strategies: The Challenge of Engaging Stakeholders in the Complex Field of Sustainable Agriculture and Bio-Technology Hoffman: Competitive Environmental Strategy: Ch. 10, pp.203-227 *Case: The Monsanto Company: Quest for Sustainability (A & B). (World Resources Institute, Management Institute for Environment and Business case, 2001). Biotechnology Food: From the Lab to a Debacle, New York Times (Jan. 25, 2001). Apr. 17: Taking it to the Next Level: Strategies for Sustainable Development Guest Speaker: David Cobb, Bechtel Hoffman, Competitive Environmental Strategy: Ch. 11: 228-242. Elkington, Cannibals with Forks: Ch. 12, 305-338. Apr. 24: TBA
May 1: TBA I am in the process of inviting additional guest speakers. Possibilities include: J. Gary Lawrence, ARUP Ed Quevedo, WSP Jeff Hogue, Genencor Gail Brownell, Agilent 15: May 8: Student Presentations