2011, nova seminar, sustainability a gateway in business studies

8/3/2019 2011, NOVA Seminar, Sustainability a Gateway in Business Studies

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Institutionen fr ekonomi

NOVA University network 5-6 May 2011

NOVA Seminar on Education for Sustainable

Development in a Nordic Life Science Perspective

Sustainability a gateway in business studiesSustainability a gateway in business studies

Ashkan PaksereshSwedish University of Agricultural Sciences, SLU

Department Economics, Uppsala.

[email protected]


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Outline Introduction

Decade of Education for Sustainable Development

Why business studies and sustainability

General economic perspectives towards sustainability

Sustainable value framework

Why business and economic sustainability education

SLU, SD and business studies

Results from my thesis

Last word


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Sustainable development means

improving quality of our life

Improving the quality of our life implies a

change in our learning. As UNESCOs Director-

General Kochiro Matsuura stresses:

"EducationEducation in all its forms and at all levels is not only an endin itself but is

also one of the most powerful instruments we

have for bringing about the changes required

to achieve sustainable development.

(UNESCO, 2005)


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UN Decade of Education for Sustainable

Development

In December 2002, the United Nations General Assembly proclaimed the

years from 2005 to 2014 the Decade of Education for Sustainable

Development (DESD). Stakeholders from around the world have been invited

to strengthen their contribution to sustainability through a focus oneducation.

A key part of creating a bright green

world is educating today's students and

younger professionals in the ideas,

materials, and techniques that'll help to

make it.


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Education is the engine of change

How:

Promoting and improving quality education

Reorienting educational programmes

Building public understanding and awarenessProviding practical training

(UNESCO, 2005)

Hence, in recent years we are witnessing the emergence of

sustainability interdisciplinary programms including businessstudies.


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From economic perspective

There are two contradicting opinions about the effects of sustainabilityengagements on economic success (Schaltegger and Wagner 2006).

Tradition

alist viewTraditionalist view

RevisionistRevisionist

Traditionalist view of

neoclassical economics,

assume that every

environmental and social

activity reduces economic

success due to cost increases.

Revisionist on the other

hand, argue that there is a

positive relationship

between business practices

advancing socio-

environmental objectivesand business success

Figure 1. Two contradicting economic views (Schaltegger and Wagner 2006).


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Revisionist views

This positive relation is due to:

Enhanced resource productivity(Porter &van der Linde 1995).e.g. Cost reductions due to energy efficiency (e.g. Christmann, 2000)

Selling new solutions and innovations to other

companies (Esty &Porter 1998).e.g. Working as beacon to others (McElhany, 2008, 230).

Competetive advantages through research on new

technologies and products (Porter &van der Linde, 1995).e.g. technology productivity or customer acquisition through the introduction of

natural or organic products (e.g. Burke and Logsdon 1996; Schaltegger and

Wagner 2006). The global market for fair trade products was valued at about

$US 900m in 2005.

Reduced costs

of compliance

and better

margins


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Figure 2. Management of sustainability performance by linking environmental and social

management with competitiveness and economic success (Schaltegger and Wagner 2006, 4).


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Sustainable value framework

Hart (2007, 88)defines Sustainable

Value Framework

with its four areas of

value creation.

Figure 3. Sustainable value

framework

(Hart & Milstein, 2007, 88).


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SD as marketing concept

By the Brundtland Reports definition, sustainabledevelopment is development that meets the needs of

the present without compromising the ability of

future generations to meet their own needs(WCED,

1987, 8).

Palmer (2000) defines marketing as being about

marshalling the resources of an organization so that

they meet the changing needs of customers on

whom the organization depends.

In fact sustainable development can be seen as a

marketing process.


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year Concept Dimensions

1987 Brundtland s reportBurtland report defined SD to signal a new paradigm of

global economic development

1994 Elkingtons TBLsustainable companies must have social equity,

environmental preservation and economical prosperity.

2000Kofi Annans UN Global

Compact

10 universally accepted principles of responsiblebusinesses in the areas ofhuman rights, labour,

environment, and anti-corruption.

2005PriceWaterhouseCoopers

report

87% ofFortune 1000CEOs believe sustainability is

important to a companys profits

2007

Harts Sustainable Value

Framework Value Framework with its four areas of value creation.

2007McKinsey & Company

report

90% corporate leaders are more committed to SD

comparing 5years ago.

History of business and sustainability


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Businesses are increasingly incorporate sustainability principles in their

strategies. For the business community, sustainability is more than mere

window-dressing. In shortIn short:

Companies by adopting sustainable practices, can gain competitive

edge, increase their market share, and boost shareholder value.

What's more, the growing demand for 'green' solutions has

constructed major new markets in which sharp-eyed eco-entrepreneurs

are gathering rewards.

Hence


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Charter et al. (2006, 9) have argued

Companies should begin to prepare

for a more sustainable millennium byre-examining the social and

environmental impacts of their

strategiesand to doing so they need

educated staff.

The Chartered Institute of Marketing

(2006, 21), for example, argues that

In order that an organization can

build its sustainability credentials, an

all

pervading culture needs to be

developed for staffto recognize

opportunities and to deal with them.


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Many business programs integrate sustainability perspectives,

make their students become change agentsstudents become change agents in corporate value

creation based on economic, social and environmental values.

These studies provides students with the essential capabilities

and outlook to build a sustainability management approach.

Sustainability, captures center stage at

Business schools


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Considering globalization and future oriented

Equity opportunities

Sustainable development educations

Interdisciplinary educations

Sustainability education needs


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Sustainable development means having

a different vision of the world

As Bjrn Porsteinsson (NOVA annual seminar, 2010) states:internationalization of higher education is one of the ways a

country responds to the impact of globalization yet, at the

same time respects the individuality of the nation.

Source: Porsteinsson, B. (2010), Internationalization in higher education ,

powerpoint presentation page 6, NOVA annual seminar, (2010) on new strategy

and "The Knowledge Triangle, Education, Research and Innovation, Selfoss,

Iceland 6-7 May.


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So far

In addition as First and Khetriwal (2010) point out majority of the green

business studies covers the environmentally aspects of sustainability behavior

and other dimensions of sustainability largely disputed.

But as Lankoski (2000) states that economic performance is a multi-causal

subject, and thus any causal effect on overall economic performance by asingle explanatory factor (such as, for example, environmental performance)

is likely to be biased. On the other hand, There is a debate on the applicability

and inclusiveness of the sustainable measurement tools (Mark-Herbert and

Roraius, 2010) .

Regarding our project we concluded that stated the conception of green

(sustainable) branding is relatively unexplored in the academic literatures.

But we are witnessing the signs of emerging scholar attentions toward green

business in line with stakeholder view and triple bottom line definition of

sustainability.


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Last word

As evidenced so far in this presentation, the severity ofglobal issues that exist in the modern world have created

enormous implications in the global business landscape. As a

result, there is a clear opportunity for business schoolsthere is a clear opportunity for business schools

worldwide to move beyond simplyworldwide to move beyond simplybeing goodbeing goodoffering high

quality education and obeying the law toto doing gooddoing good.

More to the point, there is a clearopportunity for the

Universities to position themselves to take the lead in creating

business leaders that will work to drive and shape a sustainable

world.Sustainability is a gateway of business studies however, itSustainability is a gateway of business studies however, it

needs to be taken to the deeper levels and covers all businessneeds to be taken to the deeper levels and covers all business

subsub--disciplinesdisciplines.


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and

Thank youThank you


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Bhimani, A. & Soonwalla, K., (2005), From conformance to performance: the corporate responsibilities

continuum, Journal of Accounting and Public Policy, Vol. 24, pp. 165-174.

Burke, L. & Logsdon, J. M., (1996), How Corporate Social Responsibility Pays Off,Long Range

Planning, Vol., 29, No. 4, pp. 495-502.

Chartered Institute of Marketing (2006), Sustainable consumption and production: the role of marketers,

available at: http://www.mpgintl.com/papers/CIM%20Final%20Report_-_Jun%202006.pdf

Charter, M., Peattie, K., Ottman, J. and Polonsky, M.J. (2006), Marketing and sustainability, available at:www.cfsd.org.uk/smart-know-net/links/smart-know-net.pdf

Christmann, P., (2000), Effects ofBest Practices of Environmental Management on Cost Advantage: The

Role of Complementary Assets,Academy of ManagementJournal , Vol. 43, pp. 663-680.

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brand value: is there fire or only smoke?. Business Strategy and the Environment, 19: 90103.

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relationship between environmental performance and economic performance.

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and International Business (Doctoral Dissertations 2000/1).

Hart, S. L., & Milstein, M. (2007). The Sustainable Value Portfolio. In S. L. Hart, Capitalism at the

Crossroads (pp. 59-83). New Jersey: Wharton School Publishing. Cont.

References (1of2)


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Mark-Herbert, C. & Rorarius, J. (2010), Tools for Corporate Assessment ofSustainable Development, in:

A. Hallin, & Tina Karrbom Gustafsson, ed. 2009. Organizational Communication and Sustainable

Development. ICTs for Mobility. Information Science Reference, Hershey, NY. Chapter 6, pp 100-115.

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