For the final exam Flashcards
What is the Anthropocene?
Proposed as new geological age. The word Anthropocene signals a time in
history when human activity is a dominant factor in the destabilization of Earth’s life support systems.
What are planetary limits?
Already exceeded limits. Biodiversity integrity. Biogeochemical flows
What is sustainability?
Avoidance of the depletion of natural resources in order to maintain an ecological balance.
What is sustainable development?
Development that meets the needs of the present without
compromising the ability of future generations to meet their own
needs (The Bruntland Report, 1987).
What is the three pillars model?
Economic prosperity:
Basic needs, equity enhancing, increasing
useful goods & services
Social equity:
Institutional sustainability, equity, social
justice, and participation
Ecological integrity:
Genetic diversity, resilience, biological
productivity
Barbier 1987
What is sustainable science?
Focus on “the complex dynamics
that arise from interactions
between human and
environmental systems.
3 examples of Environmental Movement Gaining a
Foothold?
Oil embargo, 1973
Superfund, 1980
Love Canal, 1970’s
What is environmental justice?
All communities get a fair treatment. Example foothills vs Valley
What is environmental racism?
Unjust and discriminatory practices that lead to disproportionate exposures of environmental hazards, pollution and toxic waste.
What is environmental ethics?
Application of ethical standards to the relationship between humans and the environment.
What is environmental governance?
Appropriate legal frameworks on the global, regional, national and local level to pursue good environmental governance that will lead to a healthy and prosperous planet for all living creatures, now and in the future.
What is Limits to Growth?
Global resources cannot
support current economic growth and population growth.
What is the Brundtland report (our common future)?
Defines sustainable development as
“… development that meets the needs of the
present without compromising the ability of
future generations to meet their own needs.”
What are the core functions of mega conferences?
Setting the global agenda
Facilitating ’joined up thinking’
Endorsing common principles
Providing global leadership
Building institutional capacity
Legitimizing global governance through inclusivity
What is linear thinking?
Only focuses on elements or parts
Linear cause-effect reasoning
Reductionist and analytical
- traditional thinking.
What is the Tragedy of the Commons?
What happens to the common good if everybody acts in favour of his or her own benefit?
Multiple individuals acting independently, and solely and rationally consulting their own self-interest
Will ultimately deplete a shared limited resource even when it is clear that it is not in anyone’s long-term interest for this to happen
What is a system?
Interconnected elements (parts)
organized to achieve a purpose
Whole is greater than the sum of
its parts
Properties are emergent
Systems are nested within other
systems.
What is a feedback loop?
refers to a process or mechanism where the output of a system is used as input, which in turn affects the system’s behaviour. Foxs vs rabbits.
What is systems thinking?
Seeing interconnections yields a more
accurate understanding of the world
Actions and interactions within and
between elements
Multiple factors at play shaping a systems
problem
Rarely a single solution.
What is a complex system?
Consider the entire system and step back to embrace complexity.
Actionable or not actionable.
Complexity → zoom in on the details that matter the most.
What is resilience?
Capacity of a system to absorb
disturbance and retain its basic
function and structure.
What is carrying capacity?
Maximum number of individuals a
given environment can support
indefinitely.
What is weak sustainability?
Emphasis on eco-efficiency and
decoupling.
Technological optimists
High degree of substitution between.
natural capital and human and
manufactured capital.
What is strong sustainability?
Emphasis on curbing aggregate flows
of energy and material/ 100%
decoupling not possible.
Tech-cautious, precautionary
principle.
Limited substitutability, preserving
natural capital is critical.
What is the social responsibility of a business, according to Milton Friedman?
“[T]here is one and only one social responsibility of
business–to use its resources and engage in
activities designed to increase its profits so long as it
stays within the rules of the game, which is to say,
engages in open and free competition without
deception or fraud.”
What is a externality?
Externalities are a form a market failure.
By definition an externality occurs “when an activity or transaction by some parties causes an unintended loss or gain in welfare to another party, and no compensation for the change in welfare occurs. If the externality results in a loss
of welfare, it is a negative externality, and if it results in a gain, it is positive externality” (Daly and Farley, 2004).
Example negative externality – pollution
Example positive externality – pollination.
What is environmental economics?
Sub-field of economics
Study of costs and benefits of environmental
policies
Valuing ‘unvalued’ things (e.g.,
‘externalities’)
Put a price on nature
What is ecological economics?
Treats economy as a subsystem of the ecosystem
Emphasis upon preserving natural capital.
Concepts
Resilience
Natural cycles
Zero emission
What is the compliance era?
Command and Control = Regulations
Obeying the law, and labour,
environmental, health, and
safety regulations
Environmental and social actions
are treated as costs
Silent spring Rachel Carson.
What is the beyond compliance era?
Emergence of ‘stakeholders’
Not only satisfying regulations
Bhopal Disaster (1984)
Exxon Valdez (1989)
Brent Spar (1995)
What is the eco-efficiency era?
Doing more with less’
Term often associated with (World) Business Council for Sustainable
Development
‘win-wins
What is the sustainable development era?
Rio-Summit (Brundtland Definition)
What is CSR?
“The basic idea of corporate social responsibility is that business and society are interwoven rather than distinct entities; therefore, society has certain expectations for appropriate business behavior and outcomes.” (Wood, 1991: p. 695).
What are problems with CSR?
Many firm’s CSR initiatives are disparate and
uncoordinated
Philanthropy, environmental initiative, “shared-value”
Run by a variety of different managers without CEO
engagement
As such, the potential impact of sustainability is
constrained
What is triple bottom line?
- Taking account of the full costs in doing business Elkington.
Encouraging businesses to track and manage economic (not just financial), social, and environmental value added — or destroyed.
Not balancing act – Trade-offs.
What is the shared value proposition?
Policies and operating practices that enhance the
competitiveness of corporations while simultaneously
advancing the economic and social conditions in the
communities in which it operates.
What is ESG?
Measuring the impact of business
Environment
Social
Governance
Financed emissions
Shared Value Proposition
Sustainable value-added
Social Enterprise
What is license to operate?
“Grant of permission to undertake a trade or carry
out a business activity, subject to regulation or
supervision by the licensing authority” (Nielsen, 2013).
What are the 3 different types of stakeholder engagement?
- Transactional Engagement =
Corporate stance “Giving Back”
Community Investment - Transitional Engagement = “Building Bridges”
Community Involvement “ - Transformational Engagement = Changing Society” Community Integration
What is social license to operate?
Defined as “the ongoing acceptance and approval from local communities and
other stakeholders” (Thomson and Boutilier, 2011).
What are the 4 types of regulatory standards?
- Emission standards = Maximum permissible values applied directly to the quantities of emissions coming from pollution sources.
- Ambient standards = Qualitative dimensions of the surrounding environment. Accept a particular level of pollution in the ambient environment.
- Technology-based standards = Refer to the technologies, techniques or practices that potential polluters must adopt. Also called ‘design standards’ or ‘engineering standards’
BAT: best available technology
BATEA: best available technology economically achievable
BATNEEC: best available technology not entailing excessive cost. - Cap and trade =
Central authority sets a limit or cap on the amount of a pollutant that can be emitted.
Limit or cap is allocated in the form of emissions.
Total number of permits cannot exceed the cap, limiting total emissions to that level.
Firms that need to increase their emission permits must buy permits from those who require fewer permits (trade).
Which are the benefits of command-and-control?
Appear to be simple and
direct
Clear targets
All have a roll to play
Because pollution harms,
should be illegal
Consistent with dominant
legal system
What are the drawbacks of comman-and-control?
Inflexible
Marginal costs of abatement are not the same…thus can be inefficient
Problems with setting the standard
Enforcement questions…expensive?
Impact on technology and
innovation?
What is voluntary initiatives?
Self-regulation occurs when those regulated – in this case,
corporations – design and enforce the rules themselves’ (V. Haufler,
2001)
Why have voluntary initiatives arisen?
‘Increased awareness of the industry benefits of eco-efficiency’
‘Public pressures of activist campaigns and the threat of regulation’
Attractive: ‘… address the concerns of critics of economic
globalization without increasing the regulatory burdens on firms,
which would risk undermining their global competitiveness.’
What are examples of voluntary intitatives?
United nations global compact, ICC, UNEP, Ceres, Future-fit, Global reporting intitiative.
What are environmental management systems?
the organizational structure,
responsibilities, practices, procedures,
processes and resources for determining
and implementing environmental policy.
What are the benefits of voluntary intiatives?
Efficiency: More improvement for less costs
Flexible
Low-cost development and implementation
Fostering technological progress through innovation
What are the drawbacks of voluntary initiatives?
Altruistic sustainability behavior
cannot be expected by business
Not really ‘voluntary’ but driven by
potential future regulations
Potential for ‘greenwashing’
There are no mechanisms in place to sanction non-compliance
What are the differences about regulation versus private codes?
Regulation:
- instituted by regulator
-Enforced by government
-Compliance mandatory, with direct sanctions
-Largely medium specific (water, air, etc.)
-Emphasis on product and process standards
-Defines standards for emissions or technology
-Provides public access to information on compliance
Private:
-Instituted by private sector
-Enforced by firms themselves with some third-party verification
- Compliance voluntary, with indirect sanctions such as peer pressure
- Integrative, focusing on life-cycle impacts.
- Emphasis on management systems.
- Let each firm define own performance, with requirement for continuous improvement.
- Provides public access to information only in select cases
What is the VRIO framework?
Value: Does it provide customer value and competitive
advantage?
Rareness: Do no other competitors possess it?
Difficult to imitate: Is it difficult for others to imitate?
Organized to Exploit: Are “Resources” being put to
work?
What can resources be?
Tangible (machinery, location, finances)
Intangible (technologies, patents,
copyright, reputation, brand recognition.
Human (skills, motivation, expertise)
What is capabilities?
The firm’s expertise at exploiting its
resources
Business processes that are well
developed
May reside in any functional area
May consist of the ability to
reconfigure the business to fit
rapidly changing environments
(dynamic capabilities).
What is a core competency?
a collection of competencies that cross
divisional boundaries, is wide-spread
throughout the corporation and is
something the corporation does exceedingly
well.
What is distinctive competency?
core competencies that are superior to those of the competition.
What are key success factors?
Industry-specific
-Economics
-Customer value
Examples:
* Low-cost production
* Quality manufacturing
* High utilization of fixed assets
* Adequate skilled labor
* Low-cost locations
* High labor productivity
What is strategy?
Goals, product market focus, value
proposition, core activities.
How does sustainability in business drive internal innovation?
Sustainability demands innovation
Challenge path dependent thinking
Inefficiencies in production
processes?
Alternative source production
materials
Equipment of Tech that can reduce
energy use or emissions
Opportunities to save $$$ and ethical sourcing of materials
How does sustainable business Improves Environmental Supply Risk?
Investment in more
sustainable practices can pay
off in the form of risk
management
Diversify energy sources -
wind, water, solar power
Avoid the increases in costs
associate with carbon intensive
energy sources
How does sustainable business Attract and Retain Top Talent?
Put company’s values at the
forefront, attracting those who have
similar values
More than 70% said that they were
more likely to choose to work at a
company with a strong
environmental agenda.
64% of millennials said that they
wouldn’t take a job at a company that
wasn’t socially responsible.
How does sustainable business Expands Reach and Builds Brand Loyalty?
Build broader, more loyal customer base
Products with an on-package sustainability claim delivered nearly $114 billion in sales in 2019—a 29
percent increase from 2013
Most important, products marketed as sustainable grew 5.6 times faster than those that were not. In more than 90% of the consumer packaged goods (CPG)
categories, sustainability-marketed products grew faster than their conventional counterparts.
Consumers are voting with their dollars — against
unsustainable brands
How does sustainable business lower production costs?
Use less, or more sustainable ones = lower costs
Examine supply chain, production,
energy use at brick-and-mortar
Cutting back on finite resources and switching to greener alternatives is a cheaper option
How does sustainable business contribute to positive publicity?
Divergence from business’s previously established practices or industry standards.
Foster employee pride, sustainably-mind job applicants, and increased customer loyalty.
How does sustainable business contribute to differentiation in the market?
Can be a positive way to stand out
compared to those who haven’t
adopted sustainability or match them
Business practices could be the sole reason consumers choose your
product over the competitors
How can sustainable business set the industry trend?
If first to adopt sustainability, could set you apart as a trend-setting
business and prompt others to follow.
First-mover advantage.
If the trend continues, business can contribute to making a real
impact on the world’s largest problems.
Which are the 3 strategies for developing green products?
- Accentuate:
Playing up existing or latent green attributes in the
firm’s current product portfolio
Most straightforward. - Acquire
If there is no obvious candidate for accentuation, buy someone
else’s green brand. - Architect
Companies with a history of innovation and substantial new
product development expertise, can design their own green
products.
3 steps to develop green products?
Step #1: Feasibility – take stock of assets
Greenable attributes of existing products and brands
Org. capability in green product and brand development
Step #2: Desirability – assess strategic fit of options with objectives and resources.
Consider speed to market and investments, reputation, and competencies required
Step #3: Implementation – aligning green strategy with existing product
portfolio
Devote or develop resources and capabilities needed to achieve strategic goals
Ensure that strategy meets consumer expectations
6 strategies to integrate sustainability?
- differentiate products
- manage competitors
- reduce costs
- manage risks
- redefine markets
- attract investors
What is the definition of marketing?
Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
What are the 4Ps?
Product
A bundle of attributes (features, functions, benefits, and uses) capable of exchange or use; usually a mix of tangible and intangible forms.
Promotion
Includes tactics that encourage short-term purchase, influence trial and quantity
of purchase, and are very measurable in volume, share and profit.
Place
Refers to the act of marketing and carrying products to consumers. It is also used to describe the extent of market coverage for a given product.
Price
Formal ratio between money, goods, or services needed to acquire a given quantity of goods or services.
Amount customer must pay to acquire the product.
What are the two approaches to current consumption trends?
Option
1: Cut.
Consume less, downshift , live simply
Option 2:
Switch.
Buy smart, ethical low- carbon stuff
What is green marketing?
Mindful consumption;
Availability and accessibility to
trustworthy products and
services that are designed with
sustainability in mind but also
work well.
What is social marketing?
Encouraging individuals to
adopt pro-environment
behaviours; shifting norms.
What are the seven sins of greenwashing?
- Sin of vagueness
- Sin of the hidden trade-off
- Sin of no proof
- Sin of irrelevance
- Sin of lesser of two evils
- Sin of fibbing
- Sin of worshipping false labels
What is a supply chain?
An interconnected series of
processes within and across firms
that produce a good or service to
the satisfaction of customers.
What is the 3 types of inventory?
Raw materials
Work-in-process (WIP)
Finished goods
What is CLSC?
Closed-loop supply chains consist of a forward (primary)
supply chain along with reverse (secondary) supply loops
for products, components or materials. Key element: Focuses on the complete chain of operations
What are the benefits of CLSC?
Better tracking of resources and wastes
Reduce environmental impacts
Mitigation of material and product risks
Better oversight of labour conditions
Increase materials conservation and energy efficiency
New opportunities for innovation, generating increased customer value
Information about the product, if measured can be incorporated into
future design
Building consumer input into the process
What are the challenges of CLSC?
Access to and collection of used products
Extended Producer Responsibility (EPR)
Quality and consistency of used products, components and
materials
Technology for reprocessing (e.g., tolerances)
Flexibility
Operational (e.g., product and volume flexibility)
Strategic (network and organizational design)
Market demand for reprocessed components and materials
What is circular economy?
A circular economy is one that is restorative and
regenerative by design, and which aims to keep products,
components and materials at their highest utility and
value at all times, distinguishing between technical and
biological cycles.
What are the two types of natural resources?
Biological and technical materials
What are the 5 characteristics of a circular economy?
- Waste is designed out
- Diversity builds strength
- Renewable energy sources power the economy
- Think in systems
- Prices reflect real costs
What is Reuse of goods?
The use of a product again for the same purpose in its original form or with little enhancement or change.
What is product refurbishment?
A process of returning a product to good working condition by replacing or repairing major components that are faulty or close to failure, and making ‘cosmetic’ changes
to update the appearance of a product, such as cleaning, changing fabric, painting or
refinishing.
What is Component remanufacturing?
A process of disassembly and recovery at the subassembly or component level. Functioning, reusable parts are taken out of a used product and rebuilt into a new
one.
What is material recycling?
- Functional recycling. A process of recovering materials for the original purpose
or for other purposes, excluding energy recovery. - Downcycling. A process of converting materials into new materials of lesser
quality and reduced functionality. - Upcycling. A process of converting materials into new materials of higher quality
and increased functionality.
What is biochemicals extraction?
Applying biomass conversion processes and equipment to produce low-volume but high
value chemical products, or low-value high volume liquid transport fuel— generating electricity and process heat fuels, power, and chemicals from biomass
What is composting?
A biological process during which naturally occurring microorganisms (break down organic materials into a soil-like material.
What is energy conversion?
The conversion of non-recyclable waste materials into useable heat, electricity, or fuel through waste-to-energy processes, including combustion, gasification, pyrolysis, anaerobic digestion, and landfill gas recovery
What is anaerobic digestion?
Microorganisms break down organic materials in the absence of oxygen. Anaerobic digestion produces
biogas and a solid residual.
What is landfilling?
Disposing of waste in a site used for the controlled deposit of solid waste onto or into land.
What are SMEs?
Small:
1-99 employees;
Medium:
100 499 employees;‑
Large:
500 employees and more;
What are challenges for SMEs in Sustainability?
- Resource constraints
Financial
Human capital
Time - Clear alignment with core business?
- Less formal management structures
E.g., Continuity through Succession
What are 5 motivations for SMEs according to Masurel (2007)?
- Market
- Employment
- Regulations
- Social responsibility
- Internal management
What is a Multinational Enterprise (MNE)?
Substantial direct investment in foreign countries (not just an
export business)
Active management of these offshore assets (not simply
holding them as a passive financial portfolio)
Management integration of operations located in different
countries
What is the different between Multinational Perspective, International Perspective, Global Perspective and Transnational Perspective?
Multinational Perspective: Overseas a portfolio of local market opportunities;
managed as a decentralized federation (e.g., Branded packaged goods)
International Perspective: Leverages its domestic capabilities worldwide;
managed as a coordinated federation (e.g., Telecom)
Global Perspective: Views world as a single unit of analysis; operations managed
centrally (e.g., Consumer Electronics)
Transnational Perspective: Simultaneously responds to local needs, global
demands, and cross-border learning opportunities; managed as an integrated network (Consumer goods)
What are Transnational Corporations?
are incorporated or unincorporated enterprises comprising parent enterprises and their foreign affiliates.
What are the five Sustainability Stages according to Willard (2005)?
Sustainability Stages
1. Pre-compliance
2. Compliance
3. Beyond compliance
4. Integrated strategy
5. Purpose and passion
What are the four corporate responses?
- Reactive
Reluctant, technical
Compliance-oriented
Regulations are constraints for the business operations - Functional
Let’s do it smart, let’s do it cost-effective
Being compliant
Catch the low-hanging fruit
Meeting targets, using EMSs - Integrated
Broader conception of ecosystems
Government, NGOs and companies co-operate
Taking the moral initiative - Proactive
Transformation of the business culture
Sustainability vision
Long-term needs of sustainable development
What are the five typologies of sustainability?
1) Greenwashing
2) Meeting regulatory requirements
3) Some evidence of sustainability performance (eco-efficiency,
basic reporting of CSR and sustainability)
4) Strong evidence of sustainability performance (evidence of
sustainability practices, strong commitments, reports on
sustainability performance)
5) Sustainability leader (recognized as a global leader in
sustainability, commitment and accountability from Senior
executives)
What is social reporting?
- Working conditions
- Access to health care
- Occupational Health and
Environmental safety
What is environmental reporting?
- Carbon emissions
- Pollution and waste
- Energy
What are examples of ESG metrics?
Environment
* Carbon footprint
* Water footprint
* Waste generation
* Energy consumption
* Biodiversity impact
Social
* Employee satisfaction
* Gender and diversity
representation
* Health and safety
incidents
* Community
engagement
Governance
* Board Diversity
* Sustainability
reporting
* Ethical standards
What is sustainable finance?
Financial:
Market based instruments designed to deliver environmental or societal
quality and to transfer environmental risks, i.e. cap and trade, carbon taxes
Corporate:
Approaching environmental problems from the internal perspective of a firm,
acting in its own interest
Financial Industry:
Products and services that address sustainability issues, such as the
environment and society
What are 3 examples of sustainble buildings?
Masdar City, Evolv 1 and REEP house
What is corporate governance?
The processes, policies, & laws that govern an organization, establishing accountability & reducing conflicts of interest associated
with principle-agent issues.
What is board of directors?
A group of individuals, either elected or appointed, that oversees the activities of an organization or corporation.
What is the agency problem?
Exists when
interests of individuals that act as
agents to manage company, do not
align with interest of the firm’s
stockholders.
What are 4 different types of organizational culture?
- Fostering Commitment
Practices in this quadrant aim to build and reinforce the importance of
sustainability for the organization, and to support and encourage employees who
are making efforts to embed sustainability.
Sample Practice: Engage - Clarifying Expectations
Formal Practices for Delivering on Sustainability Goals
Involve establishing rules and procedures, with the goal of clarifying employee expectations
regarding sustainability.
Sample Practice: Assign Responsibility to Senior Leaders - Building Momentum for Change
Informal Practices for Innovation
Practices in this quadrant aim to support a culture of sustainable innovation by
developing new ideas needed to bring your organization closer to its long term sustainability goals. These practices inspire and reassure employees so that they can experiment, try new things, and build on each other’s ideas.
Sample Practice: Experiment - Instilling Capacity for Change
Formal Practices for Innovation
Practices in this quadrant are categorized as learning and development practices.
They represent rules and procedures that lead to innovation. The categories in the
quadrant are learning and developing.
Sample Practice: Benchmark
