What is PRiMEtime?
PRiMEtime brings together and shares best practices on how to mainstream
sustainability and responsible leadership into management education
globally. The blog will serve as a platform to share and discuss
inspirational activities that promote the development of responsible
leaders.
What does PRiMEtime cover?
The blog will feature examples from around the world and will include
both success stories and lessons learned. Posts will cover a wide
variety of activities, ranging from efforts to embed sustainability and
responsible leadership into curricula, student led initiatives, and the
outcomes of partnerships with business, NGOs and other schools. The blog
will also highlight the often forgotten “i” in PRME, by:
Representing our INTERNATIONAL network through a growing collection of examples from across the globe,
Exploring INNOVATIVE ideas that are being tested in management education,
Taking an INTERDISCIPLINARY approach by both looking across the
business school environment and learning from other industries and
disciplines,
Featuring INDIVIDUAL change makers who have transformed their institutions from within,
Focusing on IMPLEMENTATION through practical examples, from lessons learned through “failure” to inspirational examples, and
INSPIRING business schools to get more involved in mainstreaming responsible management education.
A growing body of research suggests that adding more women to the upper echelons of the corporate world—and particularly to directorial boards of publicly held companies—may help better balance business’ current emphasis on short-term profit maximization towards a broader focus on longerterm goals, including positive environmental, social, and governance impact.
Integrated Reporting <IR> is the language for sustainable business. It is the means by which companies communicate how value is created and will be preserved over the short, medium and long term. This information is used principally by investors to support their capital allocation decisions...
We examine the effect of mandatory corporate sustainability reporting (MCSR) on several measures of social responsibility using both country and firm-level data. Using data for 58 countries, we show that after the adoption of MCSR laws and regulations, the social responsibility of business leaders increases and both sustainable development and employee training become a higher priority for companies. Moreover, for companies in countries with MCSR, corporate governance improves and on average, companies implement more ethical practices, bribery and corruption decrease, and managerial credibility increases. These effects are larger for countries with stronger law enforcement and more widespread assurance of sustainability reports. We complement the country-level analysis using environmental, social and governance metrics at the firm-level in conjunction with a differences-in-differences research design and we find that for the treatment group, energy as well as waste and water consumption significantly decline, while investments in employee training significantly increase after the adoption of MCSR laws and regulations.
Environmental impact of palm oil (Wikipedia)
...Significant greenhouse gas emissions. Deforestation, mainly in tropical areas, accounts for up to one-third of total anthropogenic CO2 emissions...
...responsible for over 80% (~88%) of world oil palm production, Indonesia and Malaysia...
...In 2010, the Nature Conservancy took representatives of America’s National Farmers Union and the American Farmland Trust to Brazil to see how illegal forest clearance was "hurting US businesses by flooding markets with cheap and unsustainable products". A new (2010) report from David Gardiner & Associates (Mr. Gardiner served as the Executive Director of the White House Climate Change Task Force during the Clinton Administration), a consultancy, says that protecting the 13,000,000 hectares (50,000 sq mi) of mostly tropical forest that are lost annually to timber, cattle and agricultural production would boost American agricultural revenue by as much as USD$190 billion-270 billion between 2012 and 2030. (PDF, 56 pages, "Farms Here, Forests there" (see page 20 Palm Oil Modeling Results: potential $USD 40B savings))
Conclusion of "Farms Here, Forests there" Conserving tropical rainforests generates significant financial gains and savings for the U.S. agriculture and timber industries, while also increasing opportunities for residents of rainforest nations.
Taking action with our suppliers
The supply chain of palm oil is very complex and there are no quick and easy solutions. We have conducted an in depth analysis of our supply chain in order to create transparency and detailed action plans. Read more about the complexity of the palm oil supply chain in the RSPO Supply Chain Systems Overview (pdf, 3.95Mb)..."
In response to the urgent and pressing global call for sustainably produced palm oil, the Roundtable on Sustainable Palm Oil (RSPO) was formed in 2004 with the objective promoting the growth and use of sustainable oil palm products through credible global standards and engagement of stakeholders.
The seat of the association is in Zurich, Switzerland, while the secretariat is currently based in Kuala Lumpur with a satellite office in Jakarta.
RSPO is a not-for-profit association that unites stakeholders from seven sectors of the palm oil industry - oil palm producers, palm oil processors or traders, consumer goods manufacturers, retailers, banks and investors, environmental or nature conservation NGOs and social or developmental NGOs - to develop and implement global standards for sustainable palm oil...
The Palm Oil Buyers’ Scorecard 2011 measures the
performance of 132 major retailers and consumer goods manufacturers
against 4 areas which show whether these companies are acting
responsibly.
The Scorecard focuses on European companies, since they are leading the
way in transforming the market for palm oil, and were the first to
commit to the Roundtable on Sustainable Palm Oil (RSPO). However, it
also looks at other markets such as Australia and Japan where some
progress is being made.
...In 2008 Unilever, an RSPO member, committed to use only palm oil which is certified as sustainable, by ensuring that the large companies and smallholders that supply it convert to sustainable production by 2015. ...As of 2009, twelve companies including giant retailer X, tied for worst, scoring 0.
It’s
not cost that stop consumers from buying according to their conscience.
It’s simply a lack of clear information on the product label.
Research
from Melbourne Business School (MBS) has found that if a product
clearly reflects factors which impact ethical consumerism on its label,
consumers will favour that product over others.
As a result of her research in this area, MBS Professor Jill Klein is calling for manufacturers to improve their labeling to provide consumers with a more informed choice and to increase sales.
Professor
Klein based her research on a series of experiments performed at the
Melbourne Zoo between April and June last year. Zoo visitors were asked
to select between a food product that did not contain the
orangutan-unfriendly palm oil and a virtually equivalent alternative
that contained vegetable oil...
16 December 2011 – Secretary-General Ban Ki-moon today highlighted the critical role that businesses play in advancing sustainable development, and called for a surge in public-private partnerships ahead of a major United Nations conference on the issue next June.
“We need you. More than ever before, we need to develop a long-term vision for our planet,”...
A growing number of businesses have signed up to the Global Compact since it was set up in 2000, pledging to align their business practices to 10 universally accepted principles concerning human rights, labour, environmental sustainability and the fight against corruption. The Compact is the world’s largest corporate responsibility initiative with 6,000 companies in 135 countries...
...“If sustainable development is to become a reality, we need to unleash a wave of public-private partnership (Wikipedia) on a much bigger scale,” he added...
(German: Bertelsmann Stiftung) is the largest[1] private operating non-profit foundation in Germany, created in 1977 by Reinhard Mohn. The Bertelsmann Foundation holds 77.4 percent of Bertelsmann AG.
Watch Miriam Müthel, Assistant Professor at WHU Otto Beisheim School of Management, explaining her solution proposal to enforce ethics and trust in society and business. Sustainable ethical behavior will help trust to develop. We are grateful that FutureChallenges conducted this interview at the GES 2011 in Kiel.
According to Miriam Müthel, ethical behavior is one of the building blocks of trust since it reflects consistency and values. Business leaders should not just be evaluated in terms of business goals and financial performance, but the way goals are achieved should also be taken into account and aligned with the values of the firm. To achieve this, values have to be made much more concrete.
On 15 January 2007, M&S launched an initiative, known as "Plan A", (because there is no Plan B!), to dramatically increase the environmental sustainability of the business within 5 years and expected to cost £200 million.[42]
The plan covers "100 commitments over 5 years to address the key social and environmental challenges facing M&S today and in the future" with the tag-line "Because there is no Plan B". The commitments span five themes: climate change, waste, sustainable raw materials, 'fair partnership' and health,[41] with the aim that, by 2012, it will:[43]
From Branson's new book, which coins Capitalism 24902 (chapter 1 downloadable for free)
It’s really pleasing to see these wonderful small businesses making a difference, but what about the responsibility of some of the larger ones? One of the companies that certainly has taken this challenge on board at the core of their business is Marks & Spencer. M&S, the huge UK-based retailer with £10 billion in annual revenue, with whom just about everyone in Britain is familiar, has set out to be the world’s most sustainable retailer by 2015. In 2007, they launched Plan A (obviously because there is no Plan B!). This plan is
The next 50 years will be defined by two important trends - both favouring India. The world's population is about 7 billion, of which 5 billion are poor. Companies typically target the 2 billion rich. Over the next 50 years, the projection is that we will have 12 billion people, of which 10 billion will be poor. So, the biggest opportunity for corporations is to convert the poor into a consuming base, so that they become an even bigger opportunity over the next 50 years.
However, you need innovation to serve the poor. I recently wrote a piece on a $300 house for the poor. Once you construct a home, it becomes a reservoir for other products. Apple, for instance, does not sell a single iPhone to the poor. If you could make an iPhone for $5, there is a $25-billion market. Even for a giant like Apple, that's a big revenue opportunity.
The second big trend is sustainability. This planet cannot be sustained if the 5-billion poor turn into consumers...
Repsol is ranked as the World leader in the Oil & Gas sector, obtaining the highest score on both the global and European indexes, ahead of companies such as Eni, Total, BG Group and Petrobras.
The company obtained the highest possible score in transparency, risk and crisis management, environmental management system, biodiversity, climate change strategy, refining and clean fuels, human capital development, social impact in the community and communicating with its stakeholders.
The Dow Jones Sustainability Index is a family of indexes whose members must demonstrate advanced practices in the different areas that constitute corporate responsibility. Only 10% of the 2,500 securities that make up the Dow Jones Global Index, made up of listed companies in major markets throughout the world, are included of the Dow Jones Sustainability Index, after passing a rigorous review and selection process. (see also FTSE4Good Index Series)
...According to a 2010 McKinsey report Lions on the move, the rate of return on foreign investment in Africa is higher than in any other developing region. Which explains why it appears that everyone wants a piece of the action.
• How can business schools teach complex sustainability issues to the leaders of tomorrow? • This was the topic up for discussion in our recent live chat. Read a summary of the debate here (September 6, 2011)
To read the full discussion, please click here (July 27, 2011).
GSVC's mission is to catalyze new sustainable ventures that address significant social issues, build awareness of the social entrepreneurship field and educate future leaders
In this year's Energy for Tomorrow competition, graduate students from top business, environmental, public policy and engineering schools from around the globe were invited to discuss energy innovations in the urban environment and how this will affect consumer behaviour.
TIME, FORTUNE and Shell would like to thank all the participants...
To explain how things work inside the most exclusive, high-end consumer market, Universia Knowledge@Wharton interviewed Maria Eugenia Girón, a professor at the IE Business School and author of The Secrets of Luxury. Girón also manages the investment firm Megam Capital, which specializes in the high-end sector, and provides companies with advice about strategic planning and brand-building.
Universia Knowledge@Wharton: What is eco-luxury, and what impact does it have on the development of a sustainable high-end market?
Girón: Eco-luxury is the favorite term for describing the initiatives that luxury brands are taking in order to integrate the value of sustainability into their business strategies. This term includes many different kinds of initiatives. Tiffany & Co. has eliminated coral from its line-up of products because it cannot be harvested in a sustainable way. Zegna and Loro Piana have repopulated the vicunas of the [Peruvian] Andes, which were on their way to extinction...
...Today’s consumers are interested in knowing where the products they consume are coming from, and understanding the impact of their design, production and development on the environment and on people. For reasons of health, as in the case of foods or cosmetics, or because of [greater] sensitivity to the problem of environmental deterioration, consumers today identify the “best” products as those integrate those values...
United Nations Global Compact (Brussels, 8 June 2011) – H. Elizabeth Thompson, the Executive Coordinator for the 2012 UN Conference on Sustainable Development (Rio+20), has called on academic institutions participating in the Principles for Responsible Management Education (PRME) initiative to convene at Rio+20 with a clear commitment to educate students and future business leaders according to principles of sustainable development.
Her remarks were delivered at this year’s PRME Summit in Brussels, which was attended by more than 220 deans and faculty of leading academic management schools and departments worldwide responsible for the implementation of PRME. Co-chaired by Elizabeth Thompson and Pierre Tapie, Dean, ESSEC Business School, the meeting was structured around the six PRME principles...
The first MBA Video Challenge drew to a close earlier this month and the selection committee had the difficult job of choosing a winner from nine fantastic submissions. GBSN was pleased to receive videos from Haas, IMD, MIT Sloan, Thunderbird, UDD, Tuck and Strathmore which highlighted the innovative work of MBA students in Brazil, Chile, Guatemala, India, Kenya, Mongolia, Panama, Peru, South Africa, Tanzania, and Zambia.
Projects included the development of new technologies, the creation of new growth strategies, the provision of technical assistance, and the identification of new income-generating projects.
And the winner is… the eight students of Haas School of Business (USA) led by Hrishika Vuppala! These eight students spent one year working with Community Markets for Conservation (COMACO) and the Wildlife Conservation Society to produce an independent organizational audit, a three-year strategic plan, and a geographic expansion strategy. COMACO provides a market-based solution to wildlife conservation by combating food insecurity through the creation of markets for rural farmers who might otherwise practice destructive land use or poach wildlife.
The Haas team identified and recommended the investments necessary to overcome historical difficulties, act more swiftly in the pursuit of opportunity, and shift from tactical considerations to concerted strategic maneuvers. By doing so, COMACO is better positioned to reach profitability in a sustainable manner and achieve long- term success.
Congratulations to the following Haas students – Hrishika Vuppala, Lauren Gellman, Kristin Mannix, Dan Parker, Paul Collins, Ciera Ashley, and Ricardo de Paula. We look forward to celebrating your success at GBSN’s annual conference in Mexico City!
It used to be that if you studied investing at business school, the emphasis was on profit. Now, students studying the emerging field of impact investing learn about business growth opportunities that address larger social and environmental issues...
Large-scale social change requires broad cross-sector coordination, yet the social sector remains focused on the isolated intervention of individual organizations. Substantially greater progress could be made in alleviating many of our most serious and complex social problems if nonprofits, governments, businesses, and the public were brought together around a common agenda to create collective impact. Published in the Stanford Social Innovation Review, Winter 2011.
...Our research shows that successful collective impact initiatives typically have five conditions that together produce true alignment and lead to powerful results: a common agenda, shared measurement systems, mutually reinforcing activities, continuous communication, and backbone support organizations...
We're a social enterprise with the ambition to inspire and support imaginative and enterprising initiatives for a better world. The Hub is a global community of people from every profession, background and culture working at 'new frontiers' to tackle the world's most pressing social, cultural and environmental challenges.
We believe that there is no absence of good ideas in the world. The problem is a crisis of access, scale, resources and impact. So it felt vital to create places around the world for accessing space, resources, connections, knowledge, experience and investment...
Business schools have been slow to embrace sustainability issues in
their course material, but even slower off the mark in assessing how
their own campuses could be more ecologically sound...
A growing group, however, is trying to address this shortcoming. In
Europe, London Business School is widely credited with raising
awareness of institutions’ role with its “Walk the Talk” environmental
management programme...
In Spain, the Madrid-based Instituto de Empresa claims to be leading
the way with its EcologIE initiative, launched in June. Starting with
small gestures – recycling bins are currently being distributed around
its campus buildings – the school plans a thorough reorganisation of
working practices aimed at reducing its carbon footprint.
With
the help of the environmental consultants Ingenieros Asesores, students
and faculty are assessing energy use and waste production at the
school’s various campus sites. Once the findings are out, they will
implement recycling and energy and water conservation schemes similar
to those in place at London Business School. Measures may even extend
to reducing the amount of time faculty spend on aircraft.
Javier
Carrillo, director of the school’s Centre for Eco-Intelligent
Management, argues that innovation in production and systems is the key
to creating sustainable business...
As in most cases, IE’s green
initiative came from a student: Melanie May Happel, who is completing
an International MBA. Inspired by the London Business School case and
drawing on her own experience in an environmental management
consultancy, she approached faculty heads this year with her proposals
for greening the Spanish school. They offered their “full support”, she
says.
“Schools have become good at preaching the importance of
ethical business, but these are not necessarily applied on campus,”
says Ms Happel. “Basically, we’ve decided to walk the talk.”
• Only Carleton, Dartmouth and Williams were recognized as Endowment
Sustainability Leaders, with an “A-” or better across the three
endowment categories.
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