PPT presentation of 5 or More slides analyzing the assigned topics ? Weybrecht readings .Please find the attached book and go through chapter 7 and 18 and make slides. Chapter
PPT presentation of 5 or More slides analyzing the assigned topics – Weybrecht readings .Please find the attached book and go through chapter 7 and 18 and make slides.
Chapter 7: Economics
Chapter 18: What will the future bring
Praise for fi rst and second editions
Second edition “The fi rst edition is a spectacular book – its message: green business is good
business for any business. The new edition is even better, and includes every
component of an MBA program – from accounting to personnel manage-
ment. Who should read it? Students, those about to start a business, employ-
ees, government offi cials, staff of global organizations concerned with private
sector development, and the general public. Ms Weybrecht’s book is a genuine
service to our planet.”
Guy Pfeffermann, CEO, Global Business School Network
“We know that the greening of London’s businesses will be essential for our economy in the coming years. The Sustainable MBA will help graduates develop the vision and expertise to lead such change.”
Matthew Pencharz, Senior Advisor Environment & Energy to the Mayor of London
“Giselle Weybrecht provides practical insights for business schools to include sustainability in education and their daily operations. The Sustainable MBA will be a great inspiration for any academic institu- tion … as well as business leaders and entrepreneurs. Giselle shows that
sustainability is feasible for every type of organization regardless of size
and industry.” Jonas Haertle, Head, UN
Principles for Responsible Management Education
“Ms Weybrecht has written a useful book for anyone who cares to do some- thing about tomorrow, today. The Sustainable MBA provides champions with knowledge and tools to affect change and instills hesitant believers
with the confi dence to act. For business professors, Ms Weybrecht demon-
strates how each of us can amplify our own social impact by developing
more forward-thinking, responsible citizens and business leaders for our
future.” Dan Le Clair, EVP & COO, AACSB
(Association to Advance Collegiate Schools of Business)
“The Sustainable MBA is a comprehensive look at sustainability within all functions of business. It’s a wonderful foundation for any business person
trying to grasp the full scope and importance of sustainability.” Dr Tima Bansai, Executive Director, Network for Business Sustainability
First edition “…The Sustainable MBA presents a timely and important case for compre- hensively integrating ESG issues into business training.”
Ernst Ligteringen, Chief Executive, Global Reporting Initiative
“The role of business is to make the world a better place … The Sustainable MBA will help us along this road with its abundance of thinking, tools, and resources.”
Kevin Roberts, CEO Worldwide, Saatchi & Saatchi
“Giselle has provided practicing managers with this helpful and thought- provoking green business guide.”
Sir Andrew Likierman, Dean, London Business School
“If people are central to the purpose of a business, then corporate respon- sibility or sustainability cannot be an add-on … Giselle Weybrecht, in
her comprehensive book, perhaps fi rst of its kind, has shown how this can
actually happen. The book is a must for management students, researchers
and practitioners.” Anant G. Nadkarni, Vice President,
Corporate Sustainability, Tata Group
“… this book should be read by CEOs, CFOs, CSOs (the new breed of chief sus-
tainability offi cers) and everyone else in – or aspiring to enter – the C-Suite.” John Elkington, Co-Founder of Environmental
Data Services, SustainAbility and Volans
“An essential read for managers and entrepreneurs alike…” Tom Szaky, CEO, Terracycle
“This groundbreaking book … is full of useful tips and advice for those look- ing to apply sustainability to their job, whatever job or business that may be.”
Liz Maw, Executive Director, Net Impact
“… I hope The Sustainable MBA book becomes a prerequisite text for all MBA programmes as sustainability is a key issue that the next generation
of managers cannot afford to miss.”
Professor Eric Cornuel, Director General & CEO, EFMD (European Foundation of Management Development)
“…This book is a timely resource which will enable and empower many sectors of society to ‘fast forward’ their sustainable journeys.”
Martin Hancock, Chief Operating Offi cer, Westpac London and Former Chair United Nations Environment
Programme Finance Initiative (UNEP FI)
The Sustainable
MBA A Business Guide to
Sustainability
SECOND EDITION
Giselle Weybrecht
This edition fi rst published 2014 © 2014 John Wiley & Sons, Ltd First edition published 2010 by John Wiley & Sons, Ltd
Registered offi ce
John Wiley & Sons Ltd, The Atrium, Southern Gate, Chichester, West Sussex, PO19 8SQ, United Kingdom
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Library of Congress Cataloging-in-Publication Data
Weybrecht, Giselle. The sustainable MBA : a business guide to sustainability / Giselle Weybrecht.— Second Edition. pages cm Includes bibliographical references and index. ISBN 978-1-118-76063-5 (cloth) 1. Management—Environmental aspects. 2. Business enterprises—Environmental aspects. 3. Sustainable development. 4. Social responsibility of business. I. Title. HD30.255.W49 2014 658.4'083—dc23 2013024208
Cover design: Rogue Four Design
Set in 11/15pt ITC Garamond by MPS Limited, Chennai, India Printed in Great Britain by TJ International Ltd, Padstow, Cornwall, UK, an ISO14001 Environmental Management System Certifi ed Company, using vegetable-based ink and FSC® paper
Para mis abuelos
Elena y Antonio Paulino,
por sus vidas llenas de entusiasmo,
alegria y entrega a los demas.
Contents
Preface xv
Acknowledgments xix
PART I: SETTING THE SCENE 1
Chapter 1: About this Book 3
Who is The Sustainable MBA for and why should I read it? 5 What you will fi nd in The Sustainable MBA 7 How The Sustainable MBA is organized 9 Ideas on how to use this book 9
Planet Earth fact sheet 10
Chapter 2: What is Sustainability? 13
The basics 14 Other defi nitions 16
Sustainable development: A global effort 19 Working together: Stakeholders in sustainability 21
Chapter 3: What does this Mean for Business? 23
The business case 24 The sustainability sales pitch 30
Chapter 4: The Sustainability Journey 33
The journey 34 What does a leading company look like? 37
Chapter 5: Getting Started 41
Step by step 42 Getting past internal excuses 48
viii Contents
PART II: THE CORE TOPICS 51
Chapter 6: Accounting 55
Why is it important? 56 The key concepts 58
Full or true cost accounting 58 Materiality 61 Key performance indicators 64 Measuring social impact 67 Sustainability in fi nancial statements 68 Integrated reporting 70 Assurance 72
Challenges? 75 Trends and new ideas 76
Bringing it all together 76 Increased disclosure 77 Recognizing unrecognized assets 78 Different forms of reporting 78 Shadow reporting 79
Sustainability reporting 81
Chapter 7: Economics 85
Why is it important? 86 The key concepts 87
Sustainable consumption 88 The commons 90 Externalities 92 Market-based incentives 93 Re-evaluating GDP 97 Emerging markets 99
Challenges? 103 Trends and new ideas 104
Alternative trading systems 104 A new economic model 105 Estimating the cost of inaction 107 From free to fee 108 Valuing future generations 108 Regulatory instruments 109
Environmental valuation 111 Business and the world’s poor 117
Chapter 8: Entrepreneurship 123
Why is it important? 124 The key concepts 125
Contents ix
Social/environmental entrepreneurs 126 Exploring new business models 129 Making changes from within 130 Generating ideas 133 Funding 136
Challenges? 139 Trends and new ideas 140
Merging and selling 140 Microbusinesses 140 Social stock exchange 141 Working with big business 142 Marketing on a shoestring 143
Some advice for entrepreneurs 146 Cooperatives 148
Chapter 9: Ethics and Corporate Governance 153
Why is it important? 154 The key concepts 155
Business and human rights 156 Labor and working conditions 159 Ethics and the individual manager 162 Corporate governance 165 Corruption 167 Bribery 169 The power of media 171
Challenges? 173 Trends and new ideas 174
Transparency and honesty 174 The company of the future 175 Fair trade 176 Crowdsourcing the truth 176 Whistleblowing 177
The role of the CEO 180
Chapter 10: Finance 183
Why is it important? 184 The key concepts 186
Sustainable investment 186 Integrating ESG 189 Fiduciary responsibilities 193 Shareholder engagement 195 Ratings and indexes 198 Project fi nance 201
Challenges? 203
x Contents
Trends and new ideas 205 Cross-disciplinary collaboration 205 New landscape for corporate ownership 206 Long-term value 207 The role of the CFO 208 Insurance sector 209 A new kind of bank 209
Microfi nance 212
Chapter 11: Marketing 217
Why is it important? 218 The key concepts 219
People 220 Products 224 Price 226 Place 229 Packaging 232 Eco-labels 236 Social marketing 239 Cause-related marketing 242
Challenges? 244 Trends and new ideas 245
Green = inexpensive 246 Eco-iconic to eco-embedded 246 Understanding how people think 247 Communicating with the customer virtually 248 Popups 248 Buycotts 249 The barcode reinvented 249
Advertising dos and don’ts 250
Chapter 12: Operations 255
Why is it important? 256 The key concepts 258
Eco-design 259 ‘Green’ chemistry 261 Doing more with less 264 Sustainable technology 265 Suppliers and contractors 268 Transportation 271 Waste management 274
Challenges? 280 Trends and new ideas 280
Contents xi
Inspiration from nature 281 Products that do more 281 Traceability 282 Manufacturing differently 283 Instant feedback 283 Exploring new materials 284 Co-creation 284
Lifecycle assessment 286 Information technology/information systems 290
Chapter 13: HR and Organizational Behavior 295
Why is it important? 296 The key concepts 297
Creating a culture of sustainability 298 Communication 300 Recruiting 302 Employee engagement 304 Motivation and rewards 307 Talent development and training 308
Challenges? 311 Trends and new ideas 312
Linking pay and sustainability 312 Diversity 313 Skills for sustainability 314 Creating great workplaces 315 Changing the way we talk 316 Rise of the CSO 317
Managing change 319
Chapter 14: Strategy 323
Why is it important? 324 The key concepts 325
The wider business environment 326 Understanding where you stand 328 Understanding risks 331 Sustainability strategies 334 Goals and targets 337 Working with others 339 Infl uencing change 343
Challenges? 346 Trends and new ideas 347
Zero and 100% 347 Getting your customers involved 347
xii Contents
Instant information 348 Strategic philanthropy 349 Transformation of partners 349
Why do initiatives fail? 350 Stakeholder engagement 352
PART III: TOOLS 361
Chapter 15: Tools for Monitoring, Managing, and Improving Performance 363
Assessments 364 Audits 368 Environmental and social management systems 370 Standards 373
Chapter 16: Tools for Greening Offices and Buildings 377
Steps for setting up offi ce greening programs 379 Buildings 380 Energy 382 Water 383 Waste and recycling 385 Paper 386 Electronics 387 All those other little things 389 Commuting to work 390 Organizing green events and meetings 392 Putting together a green team 394
Performance contracting 397
PART IV: WRAPPING IT ALL UP 399
Chapter 17: What Can I Do? 401
As an employee – leading by example 402 How to turn any job into a green job 404
As a consumer – putting your money where your mouth is 405 A simple guide to making choices as a consumer 407
As a citizen – be active in your community 407
Chapter 18: What will the Future Bring? 409
Twenty-one wise words of advice 412
Contents xiii
Additional resources: Who, what, where, and how 415
Who: Different groups involved in sustainability 415 What: Sustainability issues 419 Where: Sustainability around the world 425 How: Keeping up to date 430
Endnotes 435
Index 439
Preface
I ’m excited to be writing this preface for the second edition of The
Sustainable MBA . The past few years since the book fi rst came out
have been a whirlwind, and it has been really encouraging to see
how well the book has been received.
Sustainability is such an exciting and constantly evolving fi eld,
and is an area that I have been involved in now for many years.
I was active at a very young age in sustainable development on a
local, national, and international level. Throughout my undergradu-
ate studies and for many years after, I worked within the United
Nations system on sustainability issues. In 2002, when attending
the World Summit on Sustainable Development in South Africa, I
was introduced to a range of projects that the business sector was
starting to carry out around this topic and remember thinking how
effective it would be if we could combine their expertise, knowl-
edge, reach, and budget with our work. The challenge was that we
just didn ’t speak the same language. They had PowerPoint presen-
tations and we had fl ipcharts.
So in 2005, much to the surprise of many of my colleagues who
believed that the business sector was responsible for a lot of the
problems we were trying to solve – and that the MBA was where
these business leaders were being trained to do just that – I left
Paris for London to pursue an MBA at the London Business School.
I wanted to learn the language and see how to connect these differ-
ent worlds in order to really move us forward in this fi eld.
When I started the MBA I found that students were interested in
sustainability, but didn ’t know how to balance that interest with
their career plans. Many believed it was a choice they had to make,
xvi Preface
you either go into business or you go into something more ‘mean-
ingful’ for society, like an NGO or a charity. At the time, and unfor-
tunately to this day, I am surprised at how little these issues are
brought up in classes, and when they are they aren ’t being brought
up in a way that is useful or relevant to the majority of students
(although this is slowly changing and there are some champions
doing great work in universities around the world). This doesn ’t
just relate to the MBA, but equally to other disciplines as well as
organized company training programs.
This is when I thought, imagine the impact we could have if all the
students graduating from business and other programs around
the world were not just learning what sustainability is but also how
to put it into practice in any job or organization in a way that ben-
efi ts not just the environment and society but, and perhaps more
importantly, the business itself. These graduates – whether they are
from business or other disciplines such as law, politics, architec-
ture, etc. – fi nd their way into virtually every type of organization,
from business to NGOs to government. Imagine the impact they
could have if they were equipped with the skills and knowledge to
make sustainability a reality in all of those organizations. We would
then, and relatively quickly, start seeing a change in organizations
from the bottom up. This is when I started to get interested in the
untapped potential of graduates and employees in making sustain-
ability a reality.
During the second year of my MBA I decided to explore further
the role sustainability had in business, but more importantly how to
equip individuals with the skills to understand and fulfi ll that role.
I looked at the curriculum and found that in order to really reach all
students and not just the ones who were interested, the information
needed to be embedded and stand alongside the material already
being taught. So I started a booklet that could be made available
to students and alumni about sustainability. It would be organized
according to the different classes taught in the MBA, so that stu-
dents could easily follow it and use it as part of their courses. The
Preface xvii
idea was so well received that I started exploring how to scale up
the idea. Rosemary at John Wiley & Sons believed in the project
and provided the opportunity to turn the booklet into a book. So,
post-graduation I set off to interview over 150 CEOs, business lead-
ers, sustainability experts, and academics from around the world
to make a resource for readers that was as relevant and useful as
possible.
I put my heart and soul into the fi rst edition of the book and
was thrilled to see how well it was received. I wanted to create a
tool that could be used not just to raise the level of awareness and
understanding of sustainability, but also to provide guidance on
how to make it part of any business or any job. The book is aimed
at a wide audience: entrepreneurs looking to develop a new busi-
ness idea, employees interested in seeing how this could be part of
their job or organization, managers wanting to explore how it could
help push their business forward, CEOs and upper management
looking to understand what this all means, consumers who want
to make more sustainable choices on a daily basis, and individuals
who just want to understand what is happening in sustainability
and business. There are also hundreds of faculty members who
use the book to inspire changes in the way they teach their busi-
ness classes and even more students who use it as core reading.
Businesses around the world are using it to inspire and educate
their employees to make sustainability a part of their job.
We – as individuals, as groups – have a lot more power than
people think. At the end of the day businesses are made up of
people just like us, who make decisions on a daily basis that affect
the world we live in. The decision to change a supplier, to give
your team members time to explore these issues, can have a huge
impact. Our choices as a consumer send messages to companies
about what we are and are not willing to buy and support. To make
a difference you do not have to quit your job and volunteer with a
not for profi t. The biggest infl uence we can have is by changing
the businesses and organizations we work for from the inside out.
xviii Preface
We need to take sustainability out of specialized departments and
make it part of everyone ’s job.
So here is the second edition. It contains quite a few updates,
new resources, and trends as well as some new sections on topics
that are becoming increasingly important in the fi eld of sustain-
ability and business. I have also developed a range of additional
resources on my website (www.thesustainablemba.com) that may
help with your journey.
I hope that this book will inspire and give readers ideas on how
they can get further engaged in sustainability, and that it will help
to develop a whole new generation of business leaders who speak
the language of sustainability and are ready to really move things
forward in remarkable new ways.
Acknowledgments
Between the fi rst and second editions I have interviewed over 150
CEOs, business leaders, sustainability experts, authors, NGOs, inter-
national organizations, academics, and students from around the
world. So many people have been engaged and supportive of this
project, too many to list here. I apologize in advance for those names
I will inevitably miss. Thank you to the following people for agree-
ing to be interviewed, for reading through drafts, for sharing your
passion for these issues, and for providing various bits of inspira-
tion: Roger Adams at ACCA, Stathis Gould at IFAC, Neil Earnshaw at
Enviroman, Chris Tuppen at Fronesys, Rob Gray at CSEAR, Rachel
Bird and Ilana Tabu at ICAEW, Michelle Molnar at David Suzuki
Foundation, Anthony Pullin at Midcounties Co-operatives and the
International Year for Cooperatives, James Gifford from UNPRI,
Parvez Ahmed at the University of North Florida, Mark Hoffman
at KPMG, Robyn Tomiko Tsukayama at the Harvard Offi ce of
Sustainability, Andrew Williams at Eighteen Rabbit, Nancy Furlow
at Marymount University, Mary Gentile at Babson, Emily Horgan at
CAO, Wim Vanderkerckhove at the University of Greenwich, Vincent
Tophoff at IFAC, Phillippa White at TIE, Victoria Brooks, Lisa Calvano
at West Chester University, Kofo Adeleke, Leticia Greyling, Rhodes
Business School, Samantha Putt del Pino and Eliot Metzger, World
Resource Institute, Scott Houston, independent consultant, Claire
Thwaits at the Gordon Institute of Business Science, Kevin Roberts,
Richard Hytner, Jane Kendall, Roger Kennedy and Fleur Diston at
Saatchi and Saatchi, Sean Ansett at At Stake Advisors, Anders Aspling
at GRLI, Roger Bancroft at GreenEarth Cleaning, Shima Barakat and
Shai Vyakarnam at the University of Cambridge, Leeora Black and
xx Acknowledgments
Gail Rehbein at ACCSR, Richard Boele at Banarra, Gib Bulloch and
Peter Lacy at Accenture, Alice Chapple at Forum for the Future,
David Collison at the University of Dundee, Jackson Carroll at
McKinsey, Peggy Cunningham at Queen ’s University, Kim Custard,
Nancy Parker, Jeremy Lardeau and Andrew Smith at PWC, Rebecca
Dixon and Susanna Jacobson at Mercer, John Elkington at Volans,
Jed Emerson and Lila Preston at GenerationIM, Neil Earnshaw at
Enviroman, Stephanos Fotiou, Cornis Lugt, Peter Graham and Sonia
Valdivia at UNEPTIE, Katie Fry, Maggie Brenneke and Jodie Thorpe
at SustainAbility, Martin Hancock at Westpac, Debra Zupancic,
Alan Knight and Daniel Waistell at Accountability, David Logan
at Corporate Citizenship, Adam Ognall at UKSIF, Nick Robins at
HSBC, Richard Peters at NAB, Simon Pickard at EABIS, Stephanie
Robertson at SiPMACT, John Scott at PepsiCo, Graham Sim at GE,
Laura Somoggi at Unilever, Mark Wade at Shell, Shauna Sadowski
at Clif Bar, Robert Tacon at UNEPFI, John Talberth at Redefi ning
Progress, Katherine Teh-White at Futureye, Karen Wilson and Bert
Twaalfhoven at EFER, Kameel Virjee at the World Bank, Anne
Wallin at Dow Chemicals, Will Oulton at FTSE, Brad Whitaker at
Schlumberger, Justin Golbach at The Aspen Institute, David Roth at
WPP, author Bob Willard, members of the AIESEC and OIKOS net-
works, Jeremy Higgs, Ramanie Kunanayagam, Ila Panik, Svetlana
Ignatieva, Peter Arias, Scott McCormick, Sayida Vanenburg, David
Murray, Gavin Murray, Henna Jain, Jay Walljasper, Leif Holmberg,
Malcolm Fox, Aleksandar Maricic, Ed Perkins, Pete Spark and Adrian
Ruiz Carvajal, the London Business School Community including all
the students and alumni who took the time to speak to me, in par-
ticular John Mullins, Andrew Scott, Andrea Masini, Caitlin Anstee,
Michael Blowfi eld, Dennis Oswald, Rob Goffee, Anne Sandford,
Gareth Howells, Mohan Madireddi and John Stopford. Dave Challis,
Katherine Madden and the World Business Council for Sustainable
Development Future Leaders Team, the incredible global alumni
community from Bearhs Environmental Leadership Program at
Berkeley (including Bill Sonnenschein), and fellow members of Net
Impact around the world.
Acknowledgments xxi
A big thank you to Rosemary, Nick, and the whole team at John
Wiley & Sons for making this possible . . . again, and to all the busi-
nesses and business schools who have used the book with their
employees and students.
An especially big thank you to Alison Clayson, Bryan Mundell,
Ariel Speicher, Al Martine, Andrew Likierman, Michael Kelly and
Connie Giordano who helped immensely in making the fi rst edi-
tion a reality. Thank you to Paul Woolfenden for his inspirational
chats and fantastic illustrations.
A little thank you to the dolphins at the Curacao Dolphin
Academy, the guide dog puppies in Cambridgeshire, the kangaroos
in Oz, and my mountain bike in Texas who all provided hours of
inspiration and constructive distraction time for both the fi rst and
second editions.
Thank you to Howard and Joyce Mills. The biggest thank you
goes to my family, to my parents Earl and Elena Weybrecht, my
brother Michael, and my aunt Carmen for their patience, love and
continued support.
Thank you to my wonderful Luca for not joining us until right
after I handed in the second edition. Last but not least, without you
Rich I wouldn ’t have been able to do any of it.
This book is dedicated to my grandparents (the dedication is writ-
ten in Spanish): To my grandparents Elena and Antonio Paulino, for
their lives full of enthusiasm, joy and generosity to others.
PART 1
SETTING THE SCENE
About this book
What is sustainability?
What does this mean for business?
The sustainability journey
Getting started
1 About this Book
‘Your Chinese clock radio sounds, waking you up
with news from the BBC, and you slip out of your
Egyptian cotton sheets and into the shower. You
dry off and put on underwear from El Salvador,
jeans from Lesotho, and your favourite blue shirt
from Sri Lanka. A cup of Tanzanian coffee, some
Brazilian orange juice, and you ’re off to work in
your Japanese car – assembled in Kentucky, powered
by gasoline from Saudi Arabia, Nigeria, and Russia.
Good morning!’ WORLDCHANGING
4 The Sustainable MBA
The world we live in today is ever shrinking, and although increased
communication and globalization play their part, they are not the
only reasons. There is a growing realization that everything and
everyone has become very interdependent. With more than 7 bil-
lion people living on the planet, regardless of who you are, where
you live, or what you do, you are impacted by and have an impact
on the health of the planet, society, and the world economy. The
decisions we make as employees, as consumers, and as citizens on
a daily basis impact both business and the wider society.
Consider this: People are wondering what is happening to the bees.
Bees play a crucial role in the supply of the world ’s food as they are
essential for the pollination of one-third of the wo
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