2011, nova seminar, sustainability a gateway in business studies
TRANSCRIPT
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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.
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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
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First, I. and Khetriwal, D. S. (2010), Exploring the relationship between environmental orientation and
brand value: is there fire or only smoke?. Business Strategy and the Environment, 19: 90103.
Lankoski, L. (2000).Determinants of environmental profit: An analysis of the firm-level
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.
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Mark-Herbert, C. & Rorarius, J. (2010), Tools for Corporate Assessment ofSustainable Development, in:
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