NICHOLAS SCHOOL OF THE ENVIRONMENT AND EARTH SCIENCES

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Business Strategy for Environmental Sustainability

Nicholas School of the Environment and Earth Sciences

Duke Environmental Leadership Program

ENV 473, Business Strategy for Sustainability

Course Syllabus

NICHOLAS SCHOOL OF THE ENVIRONMENT AND EARTH SCIENCES

Course Instructor: Teaching Assistant:

Deborah Rigling Gallagher Kevin Fritze [email protected] [email protected]

Phone: 919-613-8138

NICHOLAS SCHOOL OF THE ENVIRONMENT AND EARTH SCIENCES

Course Description

Businesses are increasingly applying strategic management tools to incorporate considerations of sustainability into decision-making and operations. While some businesses incorporate sustainable practices because of an ethical conviction to do well for society and the environment, most are motivated to address pressures from stakeholders such as regulators, shareholders, customers and neighbors and to exploit knowledge and experience for long term competitive advantage.

This course will examine how businesses develop and implement strategies to promote sustainability. Students will examine roles and responsibilities of sustainable strategic managers and learn how to apply the tools of strategic business management to problems of sustainability. Students will consider how managers apply leadership practices to promote sustainable practices in their organizations. Business case study analysis will be a critical component of this course, as will team work.

NICHOLAS SCHOOL OF THE ENVIRONMENT AND EARTH SCIENCES

Course Materials:

E-Reserve readings and cases on Blackboard

Stead, W. Edward, Jean Garner Stead. 2009. Management for a Small Planet. Armonk, New York: W.E. Sharpe.

NICHOLAS SCHOOL OF THE ENVIRONMENT AND EARTH SCIENCES

Course Requirements:

Each module will focus on a combination of on-line lecture, in which strategic management tools will be highlighted, case study analysis and on-line group discussion in which students will explore business use of strategic management tools to promote sustainability:

Student teams will each manage one module discussion board. Teams will be responsible for posting a series of questions to incite a lively discussion about the case and moderating the discussion. Questions should address challenges posed by the case and incorporate specific constructs covered during the module [dates as assigned]. Students should participate in the discussion by following the discussion board guidelines posted on the course blackboard site.

During each module students will prepare a 3-page decision memo summarizing case study findings and recommending a business strategy to address sustainability issues [Memos will be due at 8pm EST before class begins on the second Tuesday of each module: January 17, January 31, February 14, March 20, April 3]. There will be no memo due during module 5 because the team report is due during that module.

Students will be assigned to a team (3-4 students/team) to focus on one of the following economic sectors: government, consulting, food and agriculture, non-profit, real estate development, manufacturing, education, energy, finance or travel and tourism. Each team will produce a 5-page memo describing the state of their organization’s sustainability focus and the challenges it faces in implementing sustainable practices. [The team report is due on February 28].

At the culmination of the course student teams will present recommendations on how particular strategic management tools may be applied by their business to promote sustainability. [April 13 and April 20]. Pecha Kucha presentation techniques will be employed.

NICHOLAS SCHOOL OF THE ENVIRONMENT AND EARTH SCIENCES

Summary of graded work:

Individual case study summaries 5 @ 10 % each [due at 8pm EST on Tuesday: January 17, January 31, February 14, March 21, April 4]

Team report 10% [March 5]

Final team Pecha Kucha presentation 15% [April 10 and 17]

Case Discussion Leadership 10% [dates as assigned]

Discussion Board Participation 15% [Every Module]

NICHOLAS SCHOOL OF THE ENVIRONMENT AND EARTH SCIENCES

A Note on Late Assignments: Flexibility is important. If you have a good reason for not being able to turn in an assignment on time, it will be considered, if you speak to me beforehand. Otherwise, your grade will be adjusted downward a grade for each day late.

NICHOLAS SCHOOL OF THE ENVIRONMENT AND EARTH SCIENCES

Course Outline

Module 1: Introduction to Course, Formation of Sector Teams

[December 10-11: Washington, DC]

Winter Break: December 14-January 11

Module 2: Applying Business Strategy to Advance Sustainability [January 12-21]

What is Strategy?, Making Sustainable Strategic Decisions

Module 3: Strategic Sustainability Tools: Environmental Management Systems [January 22-February 4]

Week 1: Environmental Management Systems, Sustainability Management Systems

Week 2: Intro to Pecha Kucha

Module 4: Strategic Sustainability Tools: Collaboration and Partnerships

[February 5-18]

Week 1: Collaboration and Partnership

Week 2: Scenario Analysis

Module 5: Stakeholder Analysis [February 19-March 2]

Week 1: Stakeholder Analysis

Week 2: Stakeholders and Enterprise Strategy

Spring Break: March 3-11

Module 6: Strategic Sustainability Tools: Strategic Advantage Analysis [March 12-24]

Week 1: Competencies and Drivers; Scanning and External Analysis; Resource Based View; Functional vs. Corporate Level Strategies

Week 2: Industry Competitive Environment, Global Multinational Environment

Module 7: Leadership for Sustainability [March 25-April 7]

Week 1: Sustainability Leadership

Week 2: Roles and Ethics

Module 8: Team Presentations and Course Wrap Up [April 8-25]

Week 1: Presentations

Week 2: Presentations

Detailed Course Schedule

Module 1: Introduction to Course and Formation of Sector Teams

[December 10-11, Washington, DC]

We will discuss how the course will be organized and learn how to learn using case study analysis. We will watch the movie “A Decent Factory” and discuss the triple bottom line of sustainability. Please be prepared to discuss your background, what you hope to get out of this course and what business sector you are interested in focusing on. Potential sectors: government, consulting, food and agriculture, non-profit, real estate development, manufacturing, education, energy, finance or travel and tourism.

Sector teams will be announced after the film. Finally, we will learn how to analyze business cases and discuss our first case, “Kimpton Hotels: Balancing Strategy and Environmental Sustainability”, first in teams and then as a class.

Reading:

Stead & Stead. 2009. “Management Meets a Small Planet”, “Management Happens on Earth: The Biophysical Dimension of Sustainability”, “Economics as if the Planet Mattered: the Economic Dimension of Sustainability” and “Searching for Equity: The Social Dimension of Sustainability”, Chapters 1-4, pages 1-82 in Sustainable Strategic Management.

Case: Kimpton Hotels: Balancing Strategy and Environmental Sustainability

************** Winter Break: December 14-January 11 *********************

Module 2: Applying Business Strategy to Advance Sustainability [January 12-21]

Readings:

DeKluyver, Cornelius A. and John A. Pearce II. 2003. “What is Strategy”. Chapter 1 in Strategy: A View From the Top, An Executive Perspective

Case: Just Us! Coffee Roasters

Module 3: Environmental Management Systems

[January 22-February 4]

Readings:

Tinsley, Stephen and Ilona Pillai, 2006. “The Theory of Environmental Management Systems” and “Implementing an Environmental Management Systems”, Chapters 1 and 2, pages 1-76 in Environmental Management Systems: Understanding Organizational Drivers and Barriers. London: Earthscan

Case: Benziger Family Winery

Module 4: Strategic Sustainability Tools: Collaboration and Partnerships

[February 5-18]

Readings: Rondinelli, Dennis A. and Ted London. 2003. “How corporations and environmental groups cooperate: Assessing cross sector alliances and collaborations. Academy of Management Executive, 17(1): 61-77.
GEMI and Environmental Defense Fund, 2008. “Guide to Successful Corporate-NGO Partnerships”, pages 1-36.

Case: Starbucks and Conservation International

Module 5: Stakeholder Analysis [February 19-March2}

Readings:

Gallagher, Deborah Rigling. 2004. “Environmental Management Systems and Sustainability: A Framework for Understanding Stakeholder Influence”, Chapter 11 in Stakeholders, the Environment and Society, edited by Sanjay Sharma and Mark Starik. Northampton, MA: Edward Elgar.

Wood, Donna, Logsdon, Jeanne, Llewellyn, Patsy and Kim Davenport. 2006. “The Principles of Accountability and Processes of Stakeholder Engagement”, Chapter 5, pages 83- 101 in Global Business Citizenship: A Framework for Ethics and Sustainable Capitalism. Armonk, NY: M.E.Sharpe

Case: Cape Wind

******************************Spring Break: March 3-11*********************

Module 6: Strategic Advantage Analysis [March 12-24]

Readings:

Stead & Stead. 2009. “Creating Sustainable Stakeholder Value’ and “Sustainable Strategic Management”, Chapters 7 and 8, pages 130-182 in Management for a Small Planet.

Hart, Stuart L. and Mark Milstein. 2003. “Creating Sustainable Value”. Academy of Management Executive, 17(2): 56-69

Case: Wal-Mart’s Sustainability Strategy

Module 7: Leadership for Sustainability [March 25-April 7]

Readings:

Stead and Stead. 2009. “Leading the Way to Sustainable Organizational Management”. Chapter 6, pages 107-129 in Management for a Small Planet.

Gallagher, Deborah Rigling, forthcoming, 2012. The United Nations Global Compact: Forum for Environmental Leadership, in The UN Millennium Development Goals, The Global Compact and the Common Good, edited by Oliver Williams, South Bend: Notre Dame University Press.

Senge, Peter. 2008. “Getting People Engaged”, Chapter 10, pages 140-156 in The Necessary Revolution: How Individuals and Organizations are Working Together to Create a Sustainable World, New York: Doubleday

Case: Tata: Leadership with Trust

Module 8: Team Presentations and Course Wrap Up [April 8-25]

Nicholas School Honor Code and the Duke Community Standard

All activities of Nicholas School students, including those in this course, are governed by the Duke Community Standard, which states:

“Duke University is a community dedicated to scholarship, leadership, and service and to the principles of honesty, fairness, respect, and accountability. Citizens of this community commit to reflect upon and uphold these principles in all academic and nonacademic endeavors, and to protect and promote a culture of integrity. To uphold the Duke Community Standard:

I will not lie, cheat, or steal in my academic endeavors;
I will conduct myself honorably in all my endeavors; and
I will act if the Standard is compromised.”

Please add the following affirmation to the end of all assignments and sign your name beside it: “I have adhered to the Duke Community Standard in completing this assignment.” Assignments will not be accepted without this assertion.

Detailed Course Schedule and Assignment Matrix

Date	Module	Readings
December 10-11, 2011, Washington DC Case: Kimpton Hotels: Balancing Strategy and Environmental Sustainability	Module 1: Introduction to Course Movie: A Decent Factory Team Building Exercise: Critiquing the Kimpton Case Asynchronous lectures: Business Case Analysis Strategic Vision, Mission and Goals	Stead & Stead. 2009. “Management Meets a Small Planet”, “Management Happens on Earth: The Biophysical Dimension of Sustainability”, “Economics as if the Planet Mattered: the Economic Dimension of Sustainability” and “Searching for Equity: The Social Dimension of Sustainability”, Chapters 1-4, pages 1-82 in Sustainable Strategic Management.
Winter Break		December 14 – January 11.
January 12-21 Case: Just Us! Coffee Roasters Case Memo Due: January 17	Module 2: Applying Business Strategy to Advance Sustainability Asynchronous Lectures: What is Strategy? Sustainable Strategic Decisions	DeKluyver, Cornelius A and John A. Pearce II. 2003. “What is Strategy”. Chapter 1 in Strategy: A View From the Top, An Executive Perspective

January 22-February 4

Case: Starbucks and Conservation International

Case Memo Due: January 31

Module 3: Strategic Sustainability Tools: Collaboration and Partnerships, Scenario Analysis

Asynchronous Lectures:

Partnerships for Sustainability
Scenario Analysis

Rondinelli, Dennis A and Ted London. 2003. “How corporations and environmental groups cooperate: Assessing cross sector alliances and collaborations. Academy of Management Executive, 17(1): 61-77.

GEMI and Environmental Defense Fund, 2008. “Guide to Successful Corporate-NGO Partnerships”, pages 1-36.

February 5-18

Case: Benziger Family Winery

Case Memo Due: February 14

Module 4: Strategic Sustainability Tools: Environmental Management Systems, Introduction to Pecha Kucha

Asynchronous Lectures:

Environmental Management Systems

Sustainability Management Systems

Tinsley, Stephen and Ilona Pillai, 2006. “The Theory of Environmental Management Systems” and “Implementing an Environmental Management Systems”, Chapters 1 and 2, pages 1-76 in Environmental Management Systems: Understanding Organizational Drivers and Barriers. London: Earthscan

February 19-March 2

Case: Cape Wind

Group Report Due: February 28

(No memo due)

Module 5: Strategic Sustainability Tools: Stakeholder Analysis, Enterprise Strategy

Asynchronous Lectures:

Stakeholder Analysis
Stakeholders and Enterprise Strategy

Gallagher, Deborah Rigling. 2004. “Environmental Management Systems and Sustainability: A Framework for Understanding Stakeholder Influence”, Chapter 11 in Stakeholders, the Environment and Society, edited by Sanjay Sharma and Mark Starik. Northampton, MA: Edward Elgar.

Wood, Donna, Logsdon, Jeanne, Llewellyn, Patsy and Kim Davenport. 2006. “The Principles of Accountability and Processes of Stakeholder Engagement”, Chapter 5, pages 83- 101 in Global Business Citizenship: A Framework for Ethics and Sustainable Capitalism. Armonk, NY: M.E.Sharpe

Spring Break

March 3-11

March 12-24

Case: Walmart’s Sustainability Strategy

Case Memo Due: March 20

Module 6: Strategic Sustainability Tools: Strategic Advantage Analysis

Asynchronous Lectures:

Functional vs. Corporate Level Strategies
Resource Based View
Global Multinational Environment
Competencies and Drivers
Scanning and External Analysis
Industry Competitive Environment

Stead & Stead. 2009. “Creating Sustainable Stakeholder Value’ and “Sustainable Strategic Management”, Chapters 7 and 8, pages 130-182 in Management for a Small Planet.

Hart, Stuart L and Mark Milstein. 2003. “Creating Sustainable Value”. Academy of Management Executive, 17(2): 56-69

March 25-April 7

Case: Tata: Leadership With Trust

Case Memo Due:

April 3

Module 7: Leadership for Sustainability

Asynchronous Lectures:

Sustainability Leadership
Roles and Ethics

Stead and Stead. 2009. “Leading the Way to Sustainable Organizational Management”. Chapter 6, pages 107-129 in Management for a Small Planet.

Gallagher, Deborah Rigling, forthcoming, 2012. The United Nations Global Compact: Forum for Environmental Leadership, in The UN Millennium Development Goals, The Global Compact and the Common Good, edited by Oliver Williams, South Bend: Notre Dame University Press.

Senge, Peter. 2008. “Getting People Engaged”, Chapter 10, pages 140-156 in The Necessary Revolution: How Individuals and Organizations are Working Together to Create a Sustainable World, New York: Doubleday

April 8-25

Module 8: Team Pecha Kucha Presentations and Course Wrap Up

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