BA 342 Exam 2
ERG- employee resource group
(LGBT, veterans, blacks, hispanics, etc.)
Paris Climate summit:
200 countries agree to do things about climate, decrease fossil fuels, increase energy efficiency
Tragedy of the commons
4 people have cows, one owner decides they want another, so all the other three decide they want another, everybody uses up the resources Happens when people operate individually in their own self-interest only instead of thinking about the land as a whole Schuylkill Expressway- Expressway is always clogged, when it was made the people at the exits developed in their own interests, clogging up the road
Diversity/Women/Corporate leadership case (implications)
44.7% of total employees are women, smaller and smaller percentage as you move up positions 30% initiative: get 30% of all corporate boards to be female Implications: Leadership advancement Mentors/coaches/sponsors (people want someone similar to them) Child care responsibility Home responsability Workforce and organizational design Flexible work arrangement Society's attitudes Women's goals vs business goals
Political spending (PACS)
A political action committee organized to back candidates, independent but raise money to support a point of view
Diversity training
A training approach Effective: communication and culture Less effective: attitude and bias Attitude vs behavior: a person's internal attitude is difficult to control, but we can control their behaviors
Diversity progression (past and present) all 3 are fully and completely in play
Affirmative action, diversity training, managing diversity
US gov (air, water, land, endangered species)
Air- clean air act Water- clean water act Land- toxic substances control act Endangered species- endangered species act
Social
All industries are affected
1st amendment
Allows for lobbying, establishes free speech
Traditional
Beginning: race and gender Expanded traditional focus (many companies look at diversity through this lense): color, gender, national origin, disability status, race, ethnicity, LGBT, age, religion
Population Data (population growth, goods and services for 9 bill, lenses) biggest driver
Biggest sustainability driver, population is still growing and industries will have to provide goods/services to all these people, how will we provide for all these people with limited resources? Procter and gamble: 2 billion more people is a big business opportunity
Business/gov/public interaction (figure 11.2) know the diagram
Business to gov: lobbying Gov to business: regulations Public to business: interest groups buying products Business to public: Ads PR Public to gov: voting, interest groups, contribution Gov to public: political influence
Financials
Buying power, financial performance, global markets Diversity pays, minorities have 4.4 billion buying power
30percentclub (theme and 7 components)
Chairman and CEO leadership Shareholder and corporate governance Executive search community Multiple pipeline initiatives Public policy Measurement of progress Better diagnosis
Major issues in book pages 460-470 (basics)
Climate change- global warming/GHGs Energy- wasting of precious non renewable sources of energy Water- providing clean drinking water Biodiversity and land use- variation of life forms in the ecosystem serves as indicator of health Chemicals, toxins, and heavy metals Air pollution Waste management Ozone depletion Oceans and fisheries Deforestation
Silicon Valley and diversity today
Companies like Google, Apple, Dropbox, Yahoo, Twitter, etc. are almost all white males Would only recruit at elite schools which are mostly all white
PwC Sustainability maturity path
Compliance mode (have to do): reduce operation and compliance risk Obligation (expected to do): value protection, licence to operate, reduce repetition risk Efficiency (smart do do): operational cost and value chain saving Leadership: innovation and growth, new business, brand enhancement
McKinsey resource revolution (2 ways to change the intensity equation)
Conservation Innovation Moving from crisis to opportunity, viewing resource use as an opportunity (solar panels/unconventional gas industries growing), main idea to be innovative and create opportunities
Triad 2
Corporate Organizational: corporations need to manage diversity National: every nation has it's own approach Global: implement their nation's diversity policy across different cultures
Diversity definition
Creating an environment where we recruit, develop, and leverage the best talent to achieve business goals profitably
Greater Utility (intensity of resource use bottom line)
Developing populations do and will increase the demand for resources. How can business assist in supplying greater utility with less resources?
Bruntland Commission definition
Development that meets the needs of the present without compromising the ability of future generations to meet their own needs
Disparate treatment vs disparate impact (fig 19-4)
Disparate treatment: when an individual is singled out and discriminated against because of a characteristic Disparate impact: occurs when a policy is not directly discriminatory but becomes discriminatory through its effects, affects a group of people
Diversity and inclusion
Diversity: Creating an environment where we recruit, develop, and leverage the best talent to achieve business goals profitably (open doors) Inclusion: proactively working to insure all employee's cultures are valued so everyone can contribute to their full potential (keep doors open) Cross cultural competence
EEOC data (trends)
EEOC is responsible for enforcing diversity and equal opportunity laws Number of cases has increased since the 90s, typically 5-10% found reasonable cause
Regulatory
Economic social economic social
Business case for diversity and inclusion (big 6) know basic impacts of each piece
Employees (find/keep talent) Customers (sales and innovation) Financial performance minority spending Suppliers (partnerships and regulations) Risk (reputation and liability) Leadership (driven by top management)
Unilever video (Paul Polman CEO) going zero waste, why do this
Environmental goals Power plants to be 100% renewable energy 100% of renewable materials in products Zero landfill waste Design products better for the environment Generates job opportunities
Number of earths/Basket of goods (intensity of resources)
Everyone wants their basket of goods (electricity, plumbing, wifi, health care, transportation) Not everybody has their full basket of goods, it would take 1.6 Earths to give everybody a normal basket. If things change, we could supply everybody If things don't change, we'll need 2.25 Earths
SAS example (multiple select) part of their business model
Example of comprehensive approach to sustainability -Leader in environmental sustainability -Committed to making a difference -Solar farm- clean/renewable energy -Used energy from elevator -CFL and LED light bulbs -Recycling -US Green building council guidelines
EAP
Excellent performance Academic integrity Professional behavior
Abercrombie case - discrimination
Faced multiple lawsuits concerning their looks policy Only want to hire young attractive blonds, deny people opportunity who look differently
SKF geothermal (innovation, intensity, industrial policy)
Geothermal- capturing heat from the ground LEED certified building, environmentally friendly Innovation- geothermal heating Intensity- using less resources Industrial policy (incentives)- politicians rewarding/helping pay for sustainability (gov gives tax credit for being sustainable)
Climate change bottom line
Global governments have concluded the world must address GHG emissions and climate change Agreements to address this impacts global biz leaders through INCENTIVES, REGULATIONS, and PUBLIC PRESSURE
Sustainability reporting (GRI, Dow Jones, SASB) major drivers for sustainability
Global reporting initiative (GRI): framework set of standards to asses an orgs sustainability practices Dow Jones Sustainability Index: companies on the DSJI are known as the best sustainability SASB: new set of standards that take into account financial/environmental/social, integrated reporting
Other
Gov is major employer Gov as a the largest purchaser Subsidies Major competitor of business Loan guarantees Taxation Monetary policy Moral suasion
Language check
Has been changing, number one term right now is sustainability 50% of companies put everything under the umbrella of sustainability 25% use corporate social responsibility 25% use other
Population maps (know what they show)
Hispanic/Latino population Mostly at southern border with Mexico, South west/south florida Want to be with family friends ancestors Asian population West coast/east coast cities/ college towns Black population South (slavery) Want to live with family friends Large migration to cities for jobs American Indian population Reservations (N.S. Dakota, Montana, New Mexico Whites Midwest, North, East People want to live where their family and jobs are
Managing diversity
Holistic approach creating a corporate environment allowing all people to reach their full potential Addresses both traditional and contemporary issues Business leverage is key to success Senior executive engagement is key
Unilever example in book Fig 15-1 3 major things that they're trying to do
Improving health and well-being Reducing environmental impact Enhancing livelihoods
Economic
Industry is selected
Corporate political activity strategy (3 types)
Information Financial Incentive Constituency Building Strategy
Other business drivers
Innovation and design, energy water waste, gov regulations, gov incentives, GHGs, public interest, non gov impact, operations, facilities, media
Cotton Gin impact (business initiative)
Invented by Eli Whitney, mechanized cotton picking Thought it would end slavery, but instead cotton production went way up (as did slavery) "Unintended consequence"- lead to more slavery
Lightbulbs
LED- most efficient and expensive CFL- spirals, most popular, don't breathe in the mercury- affordable option Standard- inefficient, don't last long Stakeholders (assume we go from standard bulbs to CFL or LED) Individuals: decrease choice, cost vs saving, replacement, disposal, recycling Companies: bus. Model change, maintenance decrease, regulations, improved atmosphere, saving Government: politics, decrease in resource use, regulation, incentives Environment: use less resources, decrease pollution, energy saving, disposal issues
LEED (US green building council) examples (Smeal, starbucks)
LEED: leadership in energy and environmental design How do we make structures that are socially/environmentally great? New world trade center, Smeal building, starbucks Starbucks built stores with less resources --> company wide approach
Risk
Lawsuits (-), public image (+), morale (+)
4 items on business cases
Leadership (McKinsey Study): 76% CFOs sustainability performance key to long term growth Operations (DuPont): past 10 years energy projects cut costs $2 billion, GHGs down 75% Customers (McKinsey Study): 87% consumers concerned about environmental impact of the products they buy Investors (Bloomberg study): since 2003, SRI (socially responsible investments) market grown 22% annually, now at $26.5 trillion, SRI funds outperform dow jones average
Penn state- Triple "L"
Learn (teach people) Live (engage in projects and activities) Lead (tell others)
IBM (bottom to top) typical corporate sustainability journey
Legal and compliance: want nothing to do with it, just don't want to get in trouble Values based self regulation: wanna help their people Efficiency: sustainability in a monetary sense Growth platform: operate business using sustainability
Equal employment opportunity commission
Major federal body created to administer and enforce US job bias laws
Kennametal case
Make industrial tools, factory was poorly lit until Ron Jon saved the day. Spent large amount of money that was paid back in 9 months People- more productive, safety better, moral up, lower costs to injuries, cleaner Profit- saving money, 350 K, increased productivity, customer visits, better emp. Interaction, public relations, decrease in maintenance cost Planet- using less energy, less waste, decrease CO2
McKinsey study data economic implications
McKinsey Diversity study Gender diverse 15% more likely to outperform Ethnic diverse 35% more likely to outperform Diversity top 50 stock index Diversity top 50 stocks outperform DJIA 3 years: Diversity 27.87% DJIA 25.08% 5 years: Diversity 79.61% DJIA 25%
Boys to young men (why boys fail) case (implications) degree of achievement
Men are laid off at higher rates and enrolled in less college Boys generally develop verbal skills later than girls, fall behind immediately in subjects and it's difficult to catch up (reading when young is important, boys play sports and girls read) Implications: Need for higher skills for all individuals Specialized skills with women (engineering/science) women encouraged to move here Society's expectations Socialization issues in college (60/40 girls) Higher crime Loss of opportunity
Terms that apply to you
Mentoring (Career), Coaching (skills), Sponsorship (access)
Middle class article
Middle class is growing globally, they have huge buying power TVs, cars, fridges, washing machines, etc.
Population data impacts (trends not numbers)
Minority group populations are growing at much faster rates than whites Workforces are getting more diverse- we want more talent
IPCC
Organization of thousands of scientists in charge of monitoring climate change, climate change is relevant for all nations and governments In the 80s we were worried about the big freeze, now worried about global warming IPCC "organization" page on website: provides rigorous and balanced scientific information to decision makers, doesn't do any actual research themselves
Opinion on government (more or less)
People are 50/50 thinking we need more gov/need less
Triad 1
Personal Social: people care about diversity but there may be disagreements Emotional: people are different levels of passionate about diversity Personal: everyone has their own experiences with diversity
Plessy v ferguson and brown v board of Education (discussion and video)
Plessy v ferguson Segregation legal in schools, hotel, public places Plessy wanted to get on a train, but it's whites only Supreme court ruled that things could be segregated as long as they were equal In reality, separate does not equal equal Brown v board of Education Linda Brown was forced to go to a far away black school instead of close white school Father hired Thurgood Marshall as lawyer (son of slave) went to supreme court Segregation breaks the 14th amendment (separate is not equal), segregation became illegal
Big issues: Population, intensity of resource use, climate change
Population growth Intensity resource usage rate Climate change
Other lobbying types
Professional, grassroots, business roundtable
Triple bottom line (3 Ps)
Profit (economic) Planet (environment) People (social) A way to explain sustainability
Pro/con for political spending
Pros- free speech for corporations Cons- corporations have access to large amounts of money creates an imbalance of power, he who has the gold rules
Circular
Raw materials - design (cradle to grave) - production/remanufacturing - distribution - consumption - collection - recycling
Prof guide
Reduce Process design: pollution prevention, materials, lean production, energy, carbon footprint Reuse Product design: service, repair, remanufacture, materials choice Recycle Product design: design for environment, materials choice, cost benefits, spare part recovery A supply loop is constrained when a process cannot deal with the entire output of its upstream process Limited access to used products Limited technical feasibility of reprocessing Limited market demand for the reprocessed secondary resources
2 ways gov can impact business?
Regulatory and nonregulatory
Customers
Responsibility, sales, new product development
Sustainability importance by organizational group
Senior people in business are all in for sustainability
Stewardship model vs others (3 models)
Shelter environment- Earth is cool, use nothing (earth video) Use up environment- Avatar video, use environment for economic gain no matter what Stewardship model- responsible use of resources, balancing shelter and use up
Privatization
Should certain government functions be turned to the private sector (social security, public education, transportation)
Affirmative action (big 3)
Taking positive steps to hire and promote people from groups previously discriminated against 3 dif sectors: hiring, education, government contracting Soft approaches Passive nondiscrimination: strict hiring process that puts everyone equal Pure affirmative action: expanding your scope of candidates (google accused of not being diverse, widened their scope to scout at more diverse schools) Hard approaches (not seen as much) Affirmative action with preference hires: all else equal, hire minority Hard quotas: really not seen (we need X amount of minorities)
Federal laws (come out of civil rights movement)
Title VII of the Civil rights act 1964 Equal pay act of 1963 Age discrimination in employment act 1967 Title I American with disabilities act 1990 Section 510 rehabilitation act 1973 Civil rights act of 1991 Laws being passed is not what makes a difference. Deployment of them does
Novartis video
Top company for diversity Global team is diverse (age, religion, physical abilities, personalities) Achieve more together Diversity is integral to success, each person contributes something
McKinsey- climate change risks (article) 6 diff elements
Value chain risks -Physical: does climate change increase risks? -Prices: more fees for fossil fuels -Product: products that could become obsolete and unsellable External Stakeholder -Ratings: higher cost of capital because of climate-related exposure, -companies getting rated for sustainability -Reputation: trust = value -Regulation: gov can change policy
Leadership
Vision, resources, accountability Today, 60% of fortune 500 companies have a chief diversity officer or equivalent (board seat)
Greenhouse gasses
Water vapor Carbon dioxide Methane (from cows) Nitrous oxide Chlorofluorocarbons
Sectoral Trade associations
composed of many firms in a given industry, NRA, National automobile association, national association of home builders
Industrial Policy
concerned with the role that government plays in shaping the national economy Solar city: gov provided grants/tax credits to cover solar power installation
Reasons
controlling monopolies, controlling negative externalities, social goals, deal with excessive competition, companies deemed important to the health of the economy
Indirect Cost
costs business have to deal with for regulations
Linear
design - raw materials - production (as quick as you can at the lowest cost) - use - disposal
Cost of regulation big 3
direct costs, indirect costs, induced costs
Economic
focus on economy, market conditions, economic variables
Contemporary
focuses on all aspects of a person Innermost: personality, the core Internal dimensions: gender, race, age, ethnicity (see) External dimensions: educational background, personal habits, recreational habits, parental status, work experience, marital status, appearance, religion, income, geographic location Organizational dimensions: location, function, division/department/group, management status, union affiliation, field, seniority
Direct Costs
gov costs to fund agencies
Theme
government wants to influence where they see fit
Company
individual company lobbying efforts
Non regulatory
industrial Policy Privatization
Financial Incentive
making direct financial contributions providing desired services
Constituency building strategy:
mobilizing grassroots or business cohorts through PR, political education, and advertising
Induced Costs
passed onto the consumer in the form of higher prices. Gov places new regulation, company has to pay costs to meet regulation, consumer has to pay higher prices
Social
people and their roles as employees, consumers, and citizens Industries affected
Information
providing information to policy makers through activities such as lobbying, research projects, position papers
Umbrella trade associations
represent collective business interests of the United States, chamber of commerce, national association of manufacturers
Campbells and women
system was not geared towards women, changed structure to get more women on board
Types of lobbying
umbrella, trade, company
