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Corporate Environment Management class1.ppt

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Dr. Surajit Chakraborty
Dr. Surajit Chakraborty

Environment, corporate

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Corporate Environmental Management OM 6000
? Class Today ¨C Introductions ¨C Syllabus ¨C Corporate Environmental Management Background ¨C Keith Coulter? ¨C Video on Industrial Ecology
Me -Joe Sarkis - Professor of Operations and Environmental Management - 6-7 years here - Many interests (OM, Env, IS, Marketing, Accounting, Finance¡­.etc.).
You ? Your School Background ? Your Work Background ? Environmental Issues that you have faced at work or anywhere else
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.
Breakdown of grade ? 1 Team Case Write-up - 30% ? 1 Team Industry Evaluation - 30% ? Case Executive Summaries - 20% ? Class Preparation and Participation - 20%
Schedule ? Each Week a new case. Case questions on web-site. ? One change to schedule ¨C In Two Weeks ¨C Polaroid Case. ? Let us take a look at website syllabus.
Corporate Environmental Management
Basic Philosophical Elements and Issues of the Environment ? The Litany ? Global Problems ¨C Global Warming - Warmest Years on Record ¨C Ozone Depletion - Big Hole in Atmosphere ¨C Species Decimation ? Regional Problems ¨C Deforestation ¨C Acid Rain ¨C Water Pollution - Rivers, Lakes ? Local Problems ¨C Pesticides - Hazardous Materials ¨C Waste Disposal
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?
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?
Environmental Consciousness ? What is man¡¯s role with nature? ¨C Take Dominion over it? Dualistic? ? What is meant by that? ¨C Nature exists to serve humans ? anthropomorphic view ? is environment in ¡°profit¡± equation? ? In calculation of ¡°national¡± accounts? ¨C Linear ¡°Design¡± of production. ? What is it and why might it no longer be applicable?
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?
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?
Management Theory and the Environment ? Anthropocentric Theories ¨C Ethics and stuff. ¨C Economic ¨C Corporate Social Responsibility ? Stakeholder ? Normative ? Social Contract ? Green Management Theories ¨C Ecocentricism ¨C Adjusted Stakeholder ¨C Sustainablity ¨C Resource Based Theory
Environmental Ethics and Business ? Western Society - Objectifies Nature ¨C 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?
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?
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?
Incorporating Environment into Management Theory ? Environmental Ethics is a starting point. ¨C Expanding ethics to include nature. ¨C What is the difficulty in doing this? ¨C What does the Biocentric ethic say (Goodpaster?) ? Biocentrism ¨C Natural objects have intrinsic value and morally considerable in their own right. ¨C Deep Ecology nature has an ethical status at least equal to humans.
Environmental Strategy Concepts and Development ? Four Readings related to Business Strategy and the Environment ¨C Porter and van der Linde ¨C Walley and Whitehead ¨C Respondents to Walley and Whitehead ¨C 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 ¨C Resource Productivity? Why is this important? ¨C How does this argument relate to quality initiatives? ¨C How might TQM work with Environmental programs? ? Innovation¡¯s role with Environment and Competitiveness ¨C Two innovation types ? End-of-pipe ? Prevention ? Examples? ? Does Regulation drive innovation?
Green and Competitive: Ending the Stalemate ? Why is Regulation needed for Innovation? ¨C A market drive may be needed to aid innovation. ¨C What is meant by the ¡°rarely see $10 bills on the ground?¡± ¨C Inexperience causes a barrier to environmental innovation. ¨C Organizational inertia is a barrier ¨C 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? ¨C Remove ¡°Static¡± thinking (organizations) ¨C Make Regulations less adversarial more cooperative ¨C Less specific regs¡­.address ¡°whats¡± let organizations worry about ¡°hows¡± ¨C Managers need to realize that environmental improvement is a competitive opportunity. (org) ¨C Make environmental decisions internal¡­.not just delegated to adversarial external parties (org) ¨C resource-productivity rather than pollution control model must govern decision making (org)
Green and Competitive: Ending the Stalemate ? What do they recommend to managers? ¨C Measure direct and indirect environmental impacts (can¡¯t manage what you don¡¯t measure). ¨C Learn to recognize the opportunity cost of underutilized resources ¨C create bias in favor of innovation based, productivity enhancing solutions ¨C 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? ¨C What should be maintained?
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?
It¡¯s Not Easy Being Green ? What is the ¡°trade-off¡± zone? ? What is the value based approach? ? What framework do they recommend? ¨C What is ¡°The Triage Framework?¡± ¨C Does it make sense? ¨C 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.
? In 1995 ¨C What did consumers think of businesses and environmentalism? Were they doing better? Were they doing enough? ¨C What do you think consumers feel? Corporate Behavior and Reputation ? A Couple Questions: ¨C Is Corporate Environmentalism a Fad? ¨C Is Corporate Environmentalism a Conspiracy?

More Related Content

Corporate Environment Management class1.ppt

  • 2. ? Class Today ¨C Introductions ¨C Syllabus ¨C Corporate Environmental Management Background ¨C Keith Coulter? ¨C 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 - 30% ? Case Executive Summaries - 20% ? Class Preparation and Participation - 20%
  • 7. Schedule ? Each Week a new case. Case questions on web-site. ? One change to schedule ¨C In Two Weeks ¨C Polaroid Case. ? Let us take a look at website syllabus.
  • 9. Basic Philosophical Elements and Issues of the Environment ? The Litany ? Global Problems ¨C Global Warming - Warmest Years on Record ¨C Ozone Depletion - Big Hole in Atmosphere ¨C Species Decimation ? Regional Problems ¨C Deforestation ¨C Acid Rain ¨C Water Pollution - Rivers, Lakes ? Local Problems ¨C Pesticides - Hazardous Materials ¨C 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? ¨C Take Dominion over it? Dualistic? ? What is meant by that? ¨C Nature exists to serve humans ? anthropomorphic view ? is environment in ¡°profit¡± equation? ? In calculation of ¡°national¡± accounts? ¨C 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 ¨C Ethics and stuff. ¨C Economic ¨C Corporate Social Responsibility ? Stakeholder ? Normative ? Social Contract ? Green Management Theories ¨C Ecocentricism ¨C Adjusted Stakeholder ¨C Sustainablity ¨C Resource Based Theory
  • 16. Environmental Ethics and Business ? Western Society - Objectifies Nature ¨C 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. ¨C Expanding ethics to include nature. ¨C What is the difficulty in doing this? ¨C What does the Biocentric ethic say (Goodpaster?) ? Biocentrism ¨C Natural objects have intrinsic value and morally considerable in their own right. ¨C 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 ¨C Porter and van der Linde ¨C Walley and Whitehead ¨C Respondents to Walley and Whitehead ¨C 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 ¨C Resource Productivity? Why is this important? ¨C How does this argument relate to quality initiatives? ¨C How might TQM work with Environmental programs? ? Innovation¡¯s role with Environment and Competitiveness ¨C 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? ¨C A market drive may be needed to aid innovation. ¨C What is meant by the ¡°rarely see $10 bills on the ground?¡± ¨C Inexperience causes a barrier to environmental innovation. ¨C Organizational inertia is a barrier ¨C 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? ¨C Remove ¡°Static¡± thinking (organizations) ¨C Make Regulations less adversarial more cooperative ¨C Less specific regs¡­.address ¡°whats¡± let organizations worry about ¡°hows¡± ¨C Managers need to realize that environmental improvement is a competitive opportunity. (org) ¨C Make environmental decisions internal¡­.not just delegated to adversarial external parties (org) ¨C 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? ¨C Measure direct and indirect environmental impacts (can¡¯t manage what you don¡¯t measure). ¨C Learn to recognize the opportunity cost of underutilized resources ¨C create bias in favor of innovation based, productivity enhancing solutions ¨C 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? ¨C 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? ¨C What is ¡°The Triage Framework?¡± ¨C Does it make sense? ¨C Does it help to more efficiently and effectively guide environmental spending?
  • 29. 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?
  • 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. ? In 1995 ¨C What did consumers think of businesses and environmentalism? Were they doing better? Were they doing enough? ¨C What do you think consumers feel? Corporate Behavior and Reputation ? A Couple Questions: ¨C Is Corporate Environmentalism a Fad? ¨C Is Corporate Environmentalism a Conspiracy?