BA 342 - EXAM 2

Sustainability defined - classic definition

"Development that meets the needs of the present without comprising the ability of the future generations to meet their own needs" - The Brundtland Report "Our Common Future" United Nations 1987

Accounting and Sustainability

- Integrated reporting - FASB to SASB --> switching --> accounting and reporting drives behavior - Assurance & audit practices - AICPA Sustainability Task Force - Dodd/ Frank (must report conflict minerals) - GRI - Energy (carbon reporting) - Sustainability reports - Compliance - BIG issue: Integrated reporting International integrated reporting - A45 - FASB - financial accounting standards board --> recording requirements - social capital and environmental capital reporting - A45 --> how an organization's strategy influences performance and future success - reporting influences behavior - we assume natural resources will go on forever and we use them that way --> now we don't - Global incentive reporting, Dow Jones sustainability indexes, sustainability accounting board

Business Impact Employees

- Recruit/Retain - ERG's (Colgate & Women Globally) - Professional Development (Cisco -CEO Recognition of ERG Leaders) (Well's Fargo Stretch Assignment lead ERG) - Communicating to Employees - Cultural Assimilation (J&J Middle Eastern ERG and acquisitions) - Leverage (Community Outreach)

Managing Diversity

- holistic approach to creating a corporate environment allowing all people to reach their full potential - addresses both traditional and contemporary issues - business leverage is the key to success - senior executive engagement is key

Smeal and Sustainability

1. Providing extraordinary education 2. Highest quality of research 3. Building a culture of: - Integrity - Diversity - Sustainability - Leadership

PwC: Sustainability Maturity Path

4. Compliance mode: reduce operation and compliance risk 3. Obligation (Value protection): expected to do; license to operate, reduce reputation risk 2. Efficiency (Value creation): smart to do; operational cost & value chain savings 1. Leadership (Increasing value): innovation & growth, new business, brand enhancement

Diversity training

Affirmative Action is not enough so we need to teach employees about it Defined: a training approach - effective - communication and culture --> understanding differences - less effective - attitude and bias --> telling people they are racist and sexist (unconscious bias) Attitude verse Behavior - The attitude you cant always change - Behavior you can insist that they treat everyone with respect - Professional Behavior Need to frame it as a positive thing - not a negative thing

Business components to diversity - The Framework

BIG 6 - ON EXAM - Employees (Find/Keep Talent) - Customers (Sales & Innovation) - Financial Performance Minority Spending (Over 4.6 trillion in 2021) - Suppliers (Partnerships & Regulation) - Risk (Reputation & Liability) - Leadership - Driven by Top Mgmt

Why Boys Fail Overview

Bock by Richard Whitmire Introductory Diversity case focused on a societal issue around men BBC News on Boys - the economist on why boys fail Video: on amazon - 80% of layoffs ate men - universities and companies hire less qualified white men - boys struggle more in Preschool because can't do what they are learning so young --> boys either catch up or don't --> less verbal skills - girls can do that - Never assume they will catch up - women develop verbally more quickly than men before 80s it was opposite --> 58% of a bachelors degree in US not are women Associates= 62% are women Bachelors 57% are women Masters 60% are women Doctorates 52% are women Could depend on type of degree (engineers, doctors, educators) Implications - need for talent at all levels - need for higher skills all individuals - socialization issues in college (40/60 window) - specialized skills (engineering, info, tech) (women encourage to move here, or men ready for college) - more societal crime, drug/alcohol issues - men are not going to college as much as women

Diversity Component - Financials

Buying Power Financial performance Global markets need to understand different markets to sell globally McKinsey Diversity Study 2015: Gender Diverse 15% more likely to outperform Ethnic Diverse 35% more likely to outperform

2017 MIT Sloan Magnet review and the Boston Consulting Group

CEO Focus on sustainability as important to business 2017 = 75% --> 75% of CEOs think sustainability is a big deal 2020 = 22%

Diversity and Inclusion examples

Cisco - I-Zone ERGS input redesigned platform for innovation Ford - Ride & Drive - ERGS to understand product design (Ex: Race & Disability) Macy's - ERG and Hispanic Gift Card Program increased sales Prudential - GLBT Multicultural Marketing Committee impact entire program Mattel - Doll line to African Amer. Girls

Snapshot: Does Diversity Pay?

Columbia Study (1992-2006): - Standard and Poors 1500 Top Companies - Increase in Diversity, average $42 million value increase Credit Suisse Research Institute - 2012 study of 2360 global companies - diversity resulted in higher returns and better than average firm growth Decision-making : - Homogeneous verse Heterogeneous Groups 2017 minority buying power = 14.6 Tillion 2021 minority buying power = 16.6 Trillion

Tragedy of the Commons

Common land that is available to everyone (not owned by anyone) - Adam Smith invisible hand --> everyone does what is in their own economic interest it helps the economy Overwhelms the commons - Smoge --> not thinking about nature because it is not your responsibility Tragedy of commons or freedom of commons - If one person gets another cow, everyone will get another cow and another and another, etc.

Technology Impact of Cotton Gin

Cotton Gin by Eli Whitney (1793) Technology benefits and side effects video= cotton gin being used benefits = less slaves needed to make cotton, increased productivity side effects= but slave population increased used to make cotton, corn, rice, etc. but all plantations switched to cotton because it was easy to make Europe wanted out cotton so south kept making more Give me more land to make more cotton - 1860 --> states in west have not decided if slave states, but president said no

Novartis Pharmaceuticals Coporation

Diversity 2014-2016 #1 or #2 for Diversity Video: Kids are saying how adults told them they would never succeed because they were different - we are proving them wrong every day - we exceed expectations and we can achieve more together than we can alone - we must speak up and listen to each other Video: Diverse groups win - innovation happens at the cross-section of differences - Inclusiveness - accept people for who they are --> bring their full self in - Goals - Talk about events and opinions

Diversity and Inclusion definitions

Diversity: Creating an environment where we recruit, develop and leverage the best talent to achieve business goals profitability (opens doors). Inclusion: Proactively working to ensure all employee's cultures are valued so everyone can contribute to their full potential (keeps doors open). Cross-Cultural Competence

Wally Triplett and Penn State

Football player at Penn State (1945) - first black football player at PSU - also got accepted from Miami but rescinded offer when they found out he was black - Miami told PSU we could not bring black players to game - PSU said take all of us or none of us - moving forward - 1948 cotton bowl --> Southern team asked us to leave black players at home - Said no again - We Are Penn State --> FSU gave in because they wanted to play - first black football player to start in national football (not first one drafted) Video: - James Franklin talking to Wally Triplett - he visited in 2015 - Wally died in Nov, 2018

Geothermal example

Geothermal heating/cooling Ground is always 50 degrees - dig a well that goes into your house so to bring 50 up to 70 uses less energy than making 20 to 70 - cut your electric by half - a house would need 3 or 4 wells

Climate change bottom line for steal students

Global Governments have concluded that the world "must" address GHG emissions and climate change (think United Nations and IPCC) Agreements to address these impacts global business leaders directly through incentives, regulations, and public pressure Thus a sustainability driver

Penn State's Strategic Sustainability Plan

Good Stewardship = good business Learn, Live, Lead Smeal- first college at Penn State to make a sustainability report and other colleges followed 5000+ Students (work in sustainability?)

Number one GHG?

Greenhouse gasses (GHG's) 1. Water Vapor (H2O) 2. Carbon Dioxide (CO2) 3. Methane (CH4) 4. Nitrous Oxide (N2O) 5. Ozone (O3) 6. Chlorofluorocarbons (CFCs) ANTHROPOGENIC - human-caused gases Natural Carbon --> we breath out, volcanos, California fires Methane --> cows, dross gas, worse than CO2 Everyone going vegan will help climate change

Hispanic or Latino Population Map

Hispanic and Latino are used as synonyms but they are different things SOUTHWEST - immigration from Mexico - Some in Florida because of immigration from Cuba Census uses Hispanic Hispanic is not a race (can be any color ) --> from countries conquered by Spain Latino --> countries influenced from Spain

Characteristics of diversity

Imperative Competency

Lighting and sustainability

LED: most energy efficient - 6-8 WATTAGE - $7 each and $210 for 30 bulbs - last 20 years (3hr per day) CFL: compact fluorescent - if they break they will release mercury gas - 13-15 wattage - $1 each and $30 for 30 bulbs - last 10 years (3hr per day) STD: regular - 60 wattage - .70 cents each and $21 for 30 bulbs - last 2 years (3hr per day) A simple example of sustainability in action and the impact something as simple as lighting can have on the triple bottom line Individuals: decreases choice, cost, savings, replacement, resistant to change, disposal, recycling Companies: businesses model change, matiance decreases, regulations, atmospher improvdes, savings, public relations, vender issues, competition Government: politics, decrease in rescourse use, regulation, incentives, systematic change Environment: use less resouces, less waste, disposal issues (mercury), energy savings, decrease in pollution, lower carbon emissions

Diversity Component - Risk

Lawsuits Public Image Morale Can hurt or help us EEOC Charges - if not good at diversity someone will call you out on it - lawsuits = negative side of risk Ranked companies for Diversity - positive side of risk example: EY Diversity recognition - website of their awards and recognitions

IBM Structure of Typical Corporation Sustainability Journey

Legal Compliance (follow rules) --> Values Based Self Regulation (follow values) --> Efficiency --> Grouth Platform

American Indian and Alaska Native Population Map

Lesson than 1% of US population Conquered Trips = reservations New Mexico, Dakota, Arizona, etc.

Sustainability circular economy

MAKE - USE - RETURN CRADLE TO CRADEL raw materials -> deign -> prudction remanufacturing -> discribution -> Comsumption (use, reuse, recycle) -> collection (get waste back)-> residual waste comes out and everything else gets recycled back in (or repurposed) - circular companies are more complicated but they make more money - most large companies are using this model - addressing Big Y's of sustainability - the designer starts with the end in mind - make sure materials are minimum and reusable - consumption: teach customers what to do with products when done with them

Big Six Majors

Marketing, Accounting, Supply chain and MIS, Finance, Management, Risk Management Know the framework of how we look at sustainability from each of our majors

Customer Examples - the business case

Mattel and dolls (Barbie) - ERG input - mattel web ERG and customers - brand is declining so they started changing - began to create dolls in all different sizes, cultures, and colors -Sales going back up Doritos - Guacamole chip - created dip also - thought hispanic and latino communities would like it but had to change because not good - ended up being $100 million in sales - frito Lay - employee resource group (ERG) or affinity group consulting

ERG/BRG terms

Mentoring - helping with career Coaching- helping with skills Sponsoring - helping get a job

White Population Map

Mostly North but everywhere

LEED Examples

One world trade center, NYC PSU Baseball stadium Smeal College of Business - LEED-EB --> LEED existing building now all new buildings at PSU are LEED certified GSK-Philly Navy Yard - Double Platinum LEED - tour navy yard - global research based pharmaceutical company - open building --> light, energy, possibilities, see people everywhere, see people not walls - place is designed for communicating and collaborating - walk everywhere, stand while work, fitness center, bike share on campus - can see president working in same room - no cubicles or offices - everyone is available - conference rooms - when no walls- your mind feels freer - explore and break down barriers - sound is filtered so people talking is not distracting - there are private areas when needed - work, people, and environmentally friendly - roof = park - health center, help center, video conference rooms

Understanding diversity - Triad #1

Personal triad Social, Personal, Emotional Social: things in society people care about but disagree (ex: immigration) Personal: different interpretations Emotional: they have different backgrounds

Big Issues that Drive Sustainability

Population Growth Intensity Resource Usage Rate Climate Change + three lenses --> Scientific, political, economic There are more but these are the main three

Women and corporations and diversity

Powerful women - Lockheed - Marillyn Hewson - Fidelity Inv - Abby Johnson - General Motors - Mary Barra - Anthem - Gail Boudreaux - IBM - Ginni Rometty Fortune website - powerful women website - 24 CEOs of Fortune 500 companies are women 5.2% of CEOs 11% of Top Earners 21% of board seats 26.5% of senior-level managers 36.9% of first/middle-level managers 44.7% of total employees

Penn State Strategic Plan

Presidential campaign themes and ensuring a sustainable future - 5 major planks and this is one of them

Sustainability defined - triple bottom line

Profit --> economic Planet --> environmental factors People --> social impact Baseline Definition comes from the triple bottom line - the bottom line of how our company will do - In business world, there are umbrella terms that mean the same thing that is moving in different directions 50% use sustainability - environment, social responsibility, governance 25% use Corporate social resposnibility - envornment, resposnibility, governance 25% use something else - ex: citizenship report

Diversity Component- Employees

Recruitment Development Retention we have to understand demography and show we understand it

Diversity Component - customers

Responsibility Sales New Products Development Want to see products to everyone and all cultures Forbes Insights Executive Report (Asia, Americas, Europe - 2014): Is Diverse Workforce Crucial to Gaining Different Perspectives to Drive Innovation? 85% say Yes Over next 3 years how will your focus Change on leveraging diversity for business Goals (including innovation)? 78% say Increased Focus

Diversity Component - suppliers

Sourcing Government Regulation Global Diversity Inc. WBE and WBE Businesses 1. Accenture 2. Comcast NBC Universal 3. EY 4. Cox Communications 5. PwC 6. AT&T 7. Hilton 8. Eli Lilly 9. Cummins 10. CVS 11. ADP 12. Johnson & Johnson Billion Dollar WBE/MBE club - website: companies that arere spending $1B or more on diversity excellence

Population Maps

Stories about manufacturing plants - all white men --> no wanted to answer question about diversity - all white men --> everyone wanted to answer because they represent the population of the area in minorities, but women don't want to make weapons Your workforce needs to be equal to local population

Sustainability and Business

Sustainability: meet the needs of today and no compromise on needs of tomorrow Triple Bottom line: - Profit: economic - Planet: environment - People: social Stewardship: responsible MGMT of resources

Tech Companies and Diversity

Tech companies often struggle with diversity - apple - twitter - Yahoo - Google - facebook - Dropbox - eBay - LinkedIn Mostly white and Asian Disparity in Silicon Valley location as well

Responsibility definition

The ability or authority to act or decide on one's own without supervision Can you do the right thing?

How important is the circular economy to your organization?

Two years ago: 22% thought it was very important and 25% thought it was somewhat important Today: 38% think it is very important and 34% think it is somewhat important Two years from now: 58% will think it is very important and 28% think it is somewhat important Just need to know that the trend is increasing

ERG/BRG Groups Example - Dell

Video: - internship, coaching, black history month, connections, meet executives - need to have diverse talent to attract diverse groups employee resource groups/ business resource groups - used to be called affinity groups but now they have a business component to them usually

Diversity Component - Senior Leadership

Vision Resources Accountability "Today 60% of Fortune 500 companies have a Chief Diversity Officer or equivalent"

Sustainability Driver #2 - Intensity Resource Use

What is your favorite modern convenience? - representation of intensity resource use --> we take it for granted earth's needed for world population to live equal to US lifestyle - if everyone uses resources the way the U.S. does, we would need 3 earths - Qatar has the highest per capita use of resources (ecological footprint) - China has the highest total use of resources --> followed by U.S., then India Tragedy of commons Intensity Bottom Line for Smeal Students - Developing populations do and will increase the demand for resources. How can business assist in supporting greater utility with less resources - Thus a sustainability driver

COP 21 Paris (DEC 2015) Video

World Governments are all in - word climate summit speeches - we need to come together to fix this - make climate agreements - need to fix economy --> some companies get time to build economy so they can begin to help - The result --> limit to 2 Cel every year, 5 year review, $100 B/year from developed world to developing world so they can reduce also - nonbinding World Climate Summit 2015 - includes world leaders - partner as a world to do something about it - Paris Climate 2015

What is minority buying Power in the United States in 2021 (trillions)? a. $4.6 b. $1.2 c. $5.6 d. $7.4 e. $2.1

a. $4.6 trillion

In business, we talk about the "bottom-line." Something about making money. How about the triple bottom line? WHich answer below best describes this? a. Guidelines used in understanding sustainability. b. keyway companies can consider ensuring future profits. c. The best methodology for decision-making. d. An analogy for corporate social responsibility. e. How companies understand profitability.

a. Guidelines used in understanding sustainability

In class we talked about Wally Triplett as the first black football player at Penn State. In the list below select the answer that best captures what we talked about in class? a. Wally's 1948 team, facing a situation in that year's cotton bowl against SMU is credited as originating the Penn State Cheer, "We Are" - "Penn State" b. By the time Wally completed his senior season at Penn State all PSU Sports were fully integrated c. After Wally entered Penn State issues of race began to subside for the univeristy d. Sports programs have always used ability and diversity as criteria in recruiting

a. Wally's 1948 team, facing a situation in that year's cotton bowl against SMU is credited as originating the Penn State Cheer, "We Are" - "Penn State"

In Professor Guide's talk on sustainability operations, he talked about the 3R's. In the list, which is NOT one the classic sustainability 3R's? a. rework b. reduce c. reuse d. recycle

a. rework

What is a "triad"? Some kind of gang maybe? maybe not. How about a diversity triad. below which is NOT part of our corporation triad? a. social b. global c. oragnizational d. national e. all of the above

a. social

SASB is an international standards group. They are working on trying to bring a new approach to accounting and sustainability. Which answer below BEST reflects what SASB is doing? a. engage the American Institute of certified public accounts in the development of a new environmental and social standards b. create a new Global reporting initiative to work with the Dow Jones sustainability initiative c. develop a new integrative reporting framework that encompasses natural and social capital as well as financial capital d. analyze accounting decision-making tools and add environmental factors to current tools e. build a new certification system to apply to traditional and newly developed businesses

c. develop a new integrative reporting framework that encompasses natural and social capital as well as financial capital

Definition of Diversity

creating an environment where we recruit, develop, and leverage the best talent to achieve business goals profitability

Before we understand diversity we need to get what is discrimination. Which answer below best explains this? a. Institutional method for promotions b. a name for discerning quality c. how society makes judgments d. why we now have diversity e. overt/subtle denial of oppurtunity

e. overt/subtle denial of oppurtunity

Dow Jones Sustainability Indexes

https://www.sustainability-indices.com - driving innovation in the fields of ESG investing - we have been pioneers in the development, construction and application of indices specifically for use by the asset management industry and more broadly in driving the ESG movement worldwide. - companies are competing to be on their list - are these companies truly reporting? --> who are the best in sustainability to invest in

McKinsey resource revolution example

natural resources = commons third industrial revolution to advance natural gas and solar markets are growing really fast resource revolution: from crisis to opportunity changing markets

Words for a company sustainability report

sustainability corporate social responsibility corporate responsibility social responsibility citizenship responsibility etc.

A history of US separate and unequal

video = no more slavery but schools, buses, etc. were still separate Plessy v Ferguson (1896) --> segregation legal Brown v Board of Education 1954) --> segregation illegal Brown verse board of education - black girl had to walk far to school instead of going to the close school that was a white school - separate but equal is unconstitutional Rosa Parks in 1955 rides the bus civil rights movement is born - Montgomery, Alabama - the bus is in a museum in Detroit - Martin Luther King 1928-1964 Life changed a lot very quickly - graph showing how much changed every 20 years

Sustainability Driver #3 - Climate Change

#1 global problem for US millenials - obviously people in Africa think food or water is the biggest problem - But what does this mean for companies? Climate Framing: - scientific - political - economic www.un.org/en/sections/issues-depth/global-issues-overview/ - explanations of all global issues "Afraid of the Drak" video - TV shows - goes through history of dark and why people are afraid of it --> watch on YouTube - companies can run during night now because of the resources we now have Climate Graphs Overview - IPCC climate change 2014 - 5th United Nations Report - mean temperatures - started increasing in 1880 and is not leveling off - Climate change and weather (variability) - Climate: looking at long term trend of our planet that can impact our weather - Weather: what is happening locally where you live any given day - The numbers have variability depending on who you ask - 1880-2012 --> Only plus 1.53 degrees - 1930s- large heat increase CO2 is increasing a lot steadily The American Business Act on Climate - Big Companies signing (154 companies) climate pledged to reduce carbon footprint

Risk Management and sustainability

- Actuarial, Enterprise, Real Estate & Ins. - Environmental, Social Liability - Economic & Political Risk - EcoSystem (air, land, water, fish, forest, etc.) - Monitoring, Reporting and Auditing - Directors & Officers Liability (Governance) - Climate Change - Litigation - NGO's - Big Issue: Environmental and Social Risk = Enterprise Risk Video: Teacher pension fund - focus on risks that could impact them --> forest depletion, water shortage, etc. - include environmental, social and governance into core business practices - understand risks that are facing companies that might invest in

The diversity progression

- Affirmative Action (60s - 70s) - Diversity Training (70s-80s) - Managing Diversity (80s-90s-Today) all came at different times but they're all in play today employed by large organizations in 2019

Smeal is world class in sustainability because of:

- Alumni - Research - Center for Sustain - MBA Case Competition - Departments Cirriculum - Careers - Corporate Engagement - Students

SKF corporation example

- Barring manufacturer - everything that moves needs this company video: anything that has to role uses SKF barrings - SKF USA headquarters --> lasdale, PA 3 I's ON EXAM - innovation - intensity - industrial policy Power building with 100 wells for geothermal heating/cooling SKF, federal government, state government, and millennials pay for this (taxs) - federal government is giving tax credits to companies that do energy projects

Finance and Sustainability

- Operational Profitability - Social Impact Investing (Trillions dollars) - Investor Demand - Regulation - DJSI - Carbon Markets - Energy Markets - Reputation - Big Issue - Efficient use of Funds, ROI and Investing Finance was behind but is now fully in the game and caught up Sustainability investing - mitigating risk, fiduciary duty, creating value - make better investments - regular financial analysis is that incorporates governance, social, and environmental factors - sustainable companies are outperfroming financially - $1/9 is for sustainability and social impact Goldman on sustainability and low carbon - introduction on the new world of finance and investment banking and sustainability - 3 key drivers of low carbon economy 1. technology --> renewable energy, clean cars, etc. 2. Capital --> money, resources, etc. 3. Policy --> regulations, agreements - transitions going on

Supply Chain and sustainability

- Product Design/Development (ratings)--> sticker on car window example - Cradle to Grave Responsibility - Sustainable Sourcing (supply chain) - Material Selection - Supplier Certifications - Manufacturing/Operations - Distribution/Transportation - Disposal (end of life) - Big Issues - Sustainable Sourcing In Supply Chain & Product Ratings Walmart and Packaging - example of innovation with suppliers for more responsible use of resources (Paige cables) - Walmart uses a lot of cables when making a store (company Paige Cables) - Walmart asked them to design a zero waste system if they want to continue to supply Walmart - they used to use wooden reils but not they boxes --> easier for workers, 100% more sustainable, and now more profitable

Marketing and Sustainability

- Product development - Sales - Research - Public relations - Reputation - Communication (internal/external) - Do not do "greenwashing" = people will pay more for all natural products and companies will take advantage of that by saying it is all natural when it's not --> ex: organic foods - Engaging customers - BIG issues: innovation (sustainability = design), product development, "greenwashing" Example: Scotts tube-free toilet paper - pledge to toss the tube for good - build the empire state building out of toilet paper tubes Saatchi and Saatchi example --> work with large companies on their sustainability - discussion with CEO --> CEOs should be responsible for sustainability - In business: protect environment, care about cultures, social responsibility, and economic sustainability - transparency, engagement, and networks - sustainability is core for business strategy - personal sustainability project (engagement) - Sustainability brands --> website, strategy, engagement, communication, make sustainability irresistible

Management and Sustainability

- Recruitment/Retention - Organizational Culture & Dev. - Training - Employee engagement (social & env.) - Performance Systems & Compensation - Community & Social - PSP - Personal Sustainability Practices - Governance - Human Resources (Corporate innovation and entpreneurship) - Big Issue - Engaging Employees Sopra Steria - positive energy incompanies - enaging thier people What is our responsibility when we think about sustainability and our people

Other Business Drivers for sustainability

- innovation and design - energy - water - waste - government regulation - government incentives - GHG's carbon - public interests - non-government impact - operations - facilities - media These fall outside of the Big three but people still talk about them

How to change the intensity equation?

1. Conservation 2. Innovation

Managing Diversity for the US Fortune 1000

1. Introduction to Diversity 2. Diversity Starts with History 3. Diversity Data Information and Meaning 4. The Business case for Diversity

Federal Laws Prohibiting Job discrimination

1. Title VII of the Civil Rights Act of 1964 2. Equal Pay Act of 1963 3. Age Discrimination in Employment Act 1967 4. Title I Americans with Disabilities Act 1990 5. Section 510 Rehabilitation Act 1973 6. Civil Rights Act of 1991 EEOC - Equal Employment Oppurtunity Commission 2016 = 91,503 cases 1997 = 80,680 cases - national origin and disability charges raised a lot

When did idea of sustainability begin to emerge?

2009

Sustainability Driver #1 - Population Growth

7.5+ Billion world population clock 2019 =7.6 Billion United Nations www.census.gov/popclock/ - shows how quickly the population is growing worldmapper.org - shows different maps with an emphasis on different things Population Bottom Line for Smeal Students - Providing goods and services for 9 million people by 2043 - Thus a sustainability driver

Abercrombie and Fitch (A&F) case

CEO Michael Jeffries (2006 quote with 2013 impact) "Candidly, we go after the cool kids. Attractive All-American-kid... A lot of people don't belong (in our clothes), and they can't belong. Are we exclusionary? Absolutely!" - customers and employees everyone in ads is usually white

Understanding Diversity - Triad #2

Corporate Organizational, National, Global There is high variability in the definition of diversity around the world

Disparate Treatment verse disparate impact

Disparate Treatment: treatment based on a character of people Disparate Impact: looks at people as a group - policies and practices unintentionally discriminate against a group

Asian Population Map

EAST AND WEST COATS - gateway cities ALSO UNIVERSITY TOWNS Asian = Indian, China, etc. --> not same thing

US race Relations - Three Eras

Era 1: - Mid 1500's to 1861 - approximately 300 years - slavery - slavery = evil but a lot of cultures used it --> still exists today (supply chain) Era 2: - 1861-1964 - approximately 100 years - painful and slow change - civil war --> emancipation and proclamation - Amendements --> 13th (free slaves), 14th (citizenship), 15th (voting) Era 3: - 1964-today (2064?) - 50 years to 100 years - Civil rights and diversity and inclusion

SAS Company on Sustainability example

Example of comprehensive approach to sustainability by a corporation - notice all ENVIRORMENTAL initiatives People, Profit, Planet SAS = computer company - initiatives --> committed to making a difference Energy = solar farm - no trees were cut down to make farm and sheep maintain grass under them - energy demand - lower CO2 emissions - lower by using LED's, CFLs, and automated energy, management systems - saving water - censored sinks - regenerative elevators Recycling - people collect recycling and teach employees - ink cartridges - batteries - following guidelines to make new building (recycled content) - vegetable scrap is turned into compost Management of Green Incentives - innovation makes new business New building - designed to covers resources - required less water and energy - 1/3 of buildings construction materials is recycled content - LEED certification Google: SAS campus Tour - Watch 7-minute video - social and enviornmental - example of comprehensive approach to sustainability by a corporation - notice all SOCIAL initiatives 14,000 employees - SAS is the business analytics, software, and services - fostering innovation and creativity - US turnover rate = 4% - due to company philosophy and culture saves money by retaining employees Buildings - campus headquarters - nice landscaping, natural space, and walking trails - Art collection - internationally recognized organizational cultures - located near schools and hotels - one is near a university - internships and employees - recreation and fitness center (free) --> pools, classes, sports leagues, open to families also - health care center --> all types of doctors and a pharmacy --> no charge to employees - increased productivity and decreased absenteeism because do not have to call out of work to go to doctor - work-life center to help with balance and social workers - child care centers - library - huge cafe - nearly every employee has a private office All LEED CERTIFED

Kennametal's Triple Bottom Line

Industrial Tooling company - heavy metal cutting tools used by other companies to make equipment K is working with these industries: Their tools help make things --> aerospace defense --> transportation --> earthworks --> energy Kennametal Latrobe, PA - PSU graduate students involved - Prof J helped them increase lighting in plant --> used to be very dark great outcomes --> decided to clean whole plant --> energy efficient --> gets total payout of new light bulbs every 9 months People: recruiting is better because people want to work here, safety is better, productivity increases, morale is up, lower cost due to injuries, cleaner Profit: employee satisfaction leads to increase productivity, cost savings, increase productivity, customer visits, morale is up, better employee interaction, public relations maintenance costs less Planet: decreases energy needed, less waste, decreases CO2 emissions

IPCC

Intergovernmental Panel on Climate Change - studies climate change and creates reports every few years www.ipcc.ch - About --> read the brief overview --> will be a question - "The IPCC provides regular assessments of the scientific basis of climate change, its impacts and future risks, and options for adaptation and mitigation." - "provide governments at all levels with scientific information that they can use to develop climate policies." - combined by members of the United Nations (195 members) - "IPCC scientists volunteer their time to assess the thousands of scientific papers published each year to provide a comprehensive summary of what is known about the drivers of climate change, its impacts and future risks, and how adaptation and mitigation can reduce those risks." - "to ensure an objective and complete assessment and to reflect a diverse range of views and expertise." - IPCC DOES NOT CONDUCT ITS OWN RESEARCH

What is your diversity leadership story?

Jamie Campbell - Smeal Assistant Dean for Diversity Can you lead in a diverse workforce? - and what is your story? - Us as a leader wanting to be transparent about everyone we are leading - must be clear about it

LEED

Leadership in Energy and Environmental design LEED Certification US Green Building Council Facilities to operate at their optimal level environmentally a lot of sports arenas are LEED certified https://new.usgbc.org/leed - Buildings have a substantial impact on the health and wellbeing of people and the planet. They use resources, generate waste and are costly to maintain and operate. Green building is the practice of designing, constructing and operating buildings to maximize occupant health and productivity, use fewer resources, reduce waste and negative environmental impacts, and decrease life-cycle costs. What is LEED? video - green building certification program - recognizes best in class building strategies and practices - promotes better buildings to complement our environment and enhance our community - better, brighter, healthier places to live, work and play - projects purse credits that earn points --> prerequisite and credits are different for each rating system (type of buildings) - then awarded a certification level based on number of points earned - saving money, conserving energy, making better material choices, promoting innovation

Sustainability Business case

Leadership: - Mckinsey study - 76% CEO's sustainability performance key to long term growth Operations: - DuPont: past 10 years - energy projects cut costs $2 billion, GHG's down 75% - Operations = creating value Customers: - McKinsey Study: 87% consumers concerned about environmental impact products they buy (54% willing to pay premium for sustainability) Investors: - Bloomberg study: since 2003 SRI market grown 22% annually - now at $26.5 trillion (15% of total) - SRI funds are outperformed Dow Jones Board of directors - very important: 49% - important: 45% - not important: 6% C-Suit and Executive - very important: 46% - important: 49% - not important: 5% Manager Level - very important: 26% - important: 64% - not important: 10% Non-manager employees - very important: 17% - important: 62% - not important: 21%

Snapshot: Does Diversity Pay? Studies

McKinsey Diversity Study 2015 - Gender Diversity 15% more likely to outperform and 35% for ethnic diverse Diversity of Top 50 3 years - 27.87% increase 4 year - 79.61% increase 2018 DiversityInc.com Top 24 Ranked Companies for diversity 1. Johnson and Johnson 2. Mariott 3. AT&T 4. Mastercard 5. ADP 24. Target - whatever you are doing as a company becomes very public

Sustainability Accounting Standards Board

SASB https://www.sasb.org/governance/standards-board/ - A board that was organized in 2011 to develop accounting standards that help companies report decision-useful sustainability information to external financial statement users. - reporting standards - companies must disclose their environmental impacts - develop standards to help reporting and investors - The Sustainability Accounting Standards Board is an independent standards board that is accountable for the due process, outcomes, and ratification of the SASB standards, including any changes to the standards. Members of the Standards Board are appointed by the SASB Foundation Board of Directors. SASB standards and tools are helping companies... - identify the handful of ESG and sustainability topics that most directly impact their long-term value creation - implement principles-based reporting frameworks including Integrated Reporting and the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) - communicate sustainability data more efficiently and effectively to investors SASB standards are helping investors... - factor ESG and sustainability-related impacts into their decisions - align and engage with companies on the sustainability issues that impact value creation and performance - fulfill PRI signatory commitments

Black or African American Population Map

SOUTHEAST - slavery = people want to live where they grew up - family, culture, heritage - changed a little bit with millennials - World War 1 and 2 --> great migration - a few blacks moved for economic opportunity Black verse African American and Whoopie video - EGOT --> has all the awards- emy, gramy, oscar, tony - when you put something in front of American it is like you aren't a real American - White American? African American? Italian American? - Don't use designators!! Dont use either but when there is a need - ask what they prefer (census uses black) Two Black Americans Achievement and Work to do - High achievements across all countries - inner-city struggles falling behind

Affirmative Action Approached

Soft Approach 1. Passive nondiscrimination --> most companies --> very strict hiring that makes everyone equal 2. Pure affirmative action --> expanding scope of candidates --> open positions to different hirings (10 employees from PSU, 10 from FSU, 10 from OSU) Hard approach: hardly ever seen anymore because looking for top candidates in larger candidate pool 1. Affirmative action with preference hires 2. Hard quotas

Sustainability Agenda

Sustainability Drivers - The Why Corporations Data and Examples Smeal Majors - Each has a role

Sustainability reporting

Sustainability standards for corporations BIG 3 - Global reporting initiative - Dow Jones Sustainability Indexes - Sustainability Accounting Standards Board - CDP: Driving Sustainable economies - ISO

Sustainability Linear Economy

TAKE - MAKE - WASTE CRADLE TO GRAVE design -> raw materials -> production -> use -> disposal - siloed--> ex: designer makes it however they want to make it from parameters - a lot of inefficiencies and opportunities ignored - traditional business approach - produce for speed - use any raw materials - do not think about environmental things - departments do not care about each other - quick and easy

two Focal Points for Diversity

Traditional - The beginning: Race and gender (just visible differences) - Expanded traditional focus: color, gender, national origin, disability status, race, ethnicity, sexual orientation, age, religion (includes visible and nonvisible differences) Contemporary - organizational dimensions: location, function, field, seniority, management status, division - external dimensions: education, personal habits, recreational habits, parental status, world experience, marital status, appearance, religion, income - Internal dimensions: gender, age, race, ethnicity, abilities - Innermost: personality --> goes beyond identify stuff and goes into core stuff or people --> people who are very different but might still operate in the world the same way --> broader definition of diversity

Schuylkill Expressway Philadelphia Example

Tragedy of Commons example Highway we have freedom to use highways make more lanes traffic --> overusing Develops new towns and economic development at exists (gas stations, restaurants, hotels --> lead to houses, schools, etc.)

Diversity Data Information and Meaning

US Population - explain to a classmate the implications of demographic change in the United States to business Change from 2000-2040 - white 8.7% - black 51.7% - hispanic 173.4% - asian 196% - total change 29.6% Hispanic and Asian are the fastest growing populations in the United States In workforce 2030 - 2050 - white 59% - 51% - black 13% - 14% - hispanic 20% - 24% - asian 6.5% - 8% When demography starts to change it impacts businesses

Women and Senior Leadership Talk Implications

Ursula Burns - 2017 on tech - video: women in tech = own your power - lack of a clear voice of what is actually happening - structurally organized around needs of men and women Implications - organization structure/design - workforce planning - flexible work arrangements - leadership succession planning - mentors/coaches/ sponsors - childcare responsibility - family care responsibility - home responsibility - society's attitudes - women/business goals alignment Structure is what needs to be changed the most It is about Talent - organization want to develop that talent

McKinsey: How companies can adapt to climate change

Value Chain Risks - Physical - Prices - Product: coal industry going away External Stakeholder Risks - Ratings: companies are being rated - Reputation - Regulation

History of Diversity

Video: touching strangers photography - making portraits and asking random people on the street to poss as a couple - everyone felt awkward at first but everything was nice after - they felt comfortable with each other after - we are more connected than we could ever image diversity in the US is an outgrowth of understanding race in the US

Sustainability points of view

View 1: earth and nature video - nature scenery (very pretty) - need to take care of the environment - shelter environment View 2: Avatar video - Business kicks people out of avatar to use the natural resources of the planet - destroying the environment - Use up environment Stewardship model: "Responsible management of resources" Responsible: Can you do the right thing? Business and Environment goals should go together - can't give up resources all together

Walmart example

Walmart sustainability report - notice 3 main goals and value chain and operation objectives https://corporate.walmart.com/global-responsibility/sustainability/ - . Our approach accelerates us towards our three aspirational goals: to create zero waste, operate with 100% renewable energy and sell products that sustain our resources and the environment. Value Chain - OUR INITIATIVES - Supporting measurement and transparency --> show customers what they are doing - Reducing environmental impact --> reducing emissions, deforestation, and waste - Providing affordable, healthier and safer food and products --> enhancing and promoting food safety, sustainable chemistry, promoting animal welfare - Supporting the dignity of workers everywhere --> safe and healthy work conditions - Sustainable hub --> suppliers can learn and get advice from Walmart about sustainability --> website - Project Gigaton: avoiding greenhouse gas emissions --> suppliers can take their sustainability to the next level with help from Walmart --> goal setting Sustainability in our Operations - Reducing greenhouse gas emissions: These can range from decisions related to the sourcing of weather-sensitive commodities, to alterations in distribution routes and installation of back-up power solutions due to severe weather events. --> solar panels - Reducing waste: By the end of 2017, we diverted from landfills 81 percent of unsold products, packaging and other waste materials in the U.S. and 78 percent* globally. - Advancing water and land stewardship: Walmart works to reduce unnecessary water usage in our operations by using efficient fixtures and technologies. Walmart works to limit the direct impact on local habitats during construction of our stores and facilities by preserving high-value habitats through philanthropic grants - Project Gigaton --> every supplier is also sustainable

In the video of Novartis, you saw a bit about diversity. Which answer below is the key part of their diversity? a. thinking styles b. different abilities c. gender and race d. customer focus e. business focus f. all of the above

all of the above people who are different in every way are celebrated --> fully maximize diversity in their organization

Drivers and Lens - sounds complicated. We talked about sustainability and suggested that there are three main drivers for sustainability. Which below is one of those drivers? a. weather variation globally. b. Intensity resource use. c. world political assessments. d. economic development. e. the scientific method

b. Intensity resource use

Affirmative Action

civil rights legislation --> laws passed to integrate - how do you implement civil rights legislation? - addressing issues of discrimination and providing equal opportunity defined: taking positive steps to hire and promote people from groups previously discriminated against Sectors: 1. hiring --> equal employment 2. education --> universities 3. government contracting -->, in order to sell anything to government, must have affirmative action written plan and reporting when first started, there were many lawsuits

Kennamental - a great company looking for a triple bottom line. They tried new lighting (a re-lamping of the facility.) Which below is NOT a 3P benefit they received from this project? a. decrease in energy costs. b. improved employee morale. c. decreased in their climate footprint. d. enhance plant safety. e. new product development

e. new product development

Damien Hooper video

eBay Chief Diversity officer Humanize Diversity and Inclusion - meet the parents --> Circle of Trust - first and last thing he says is that we need to come into a conversation knowing we can be politically incorrect and making ourselves vulnerable in order to truly have a good conversation - mistakes companies make: throw money at the situation, more and more training fear of speaking up - Diversity includes gender and race but goes much further - Inclusion: pick a personal event where you felt excluded example --> humans who felt excluded, insecure, fear, lonely, and demotivated --> not just about race and gender - Your goal as a leader is to make sure no one in your company ever feels this way (directly or indirectly) - methaphor --> diversity is being invited to dance but inclusion is being asked onto the dance floor - Workforce (%), Workplace (feelings while in the workplace), Market place (things you miss because you are not thinking about diversity and inclusion correctly) Try this with your people - start with a conversation to understand what diversity and inclusion mean to them - make inclusion, inclusive --> hearing, listening, focused - find the business case --> you can drive revenue through diversity

EAP

excellent performance academic integrity professional behavior

Diversity and women - 30% club initiative

http://30percentclub.org - introductory diversity case focusing on societal issues around women - growth through diversity 30% club initiative --> wants women to be 30% of CEOs - chair and CEO leadership - better diagnose - education - creating a modern business culture Mission: The 30% Club aims to develop a diverse pool of talent for all businesses through the efforts of its Chair and CEO members who are committed to better gender balance at all levels of their organizations. Business leadership is key to our mission, taking the issue beyond a specialist diversity effort and integrating it into enterprise-wide strategy development. Video: business leaders recognizing it, collaboration, measuring and timeline - Chair and CEO leadership --> better diagnosis --> education --> early and mid-carer pipline --> shareholders and corporate governance --> measuring progress --> global approach --> public policy (and back around)

Global reporting initiative:

https://www.globalreporting.org/information/about-gri/Pages/default.aspx - created frameworks to measure economic and social factors in an organization - used internationally - helps governments around the world understand and communicate environmental and social policies - makes standards companies uses to report on - Vission: A thriving global community that lifts humanity and enhances the resources on which all life depends. - Mission: To empower decisions that create social, environmental and economic benefits for everyone. - focus areas: --> Create standards and guidance to advance sustainable development --> Harmonize the sustainability landscape --> Lead efficient and effective sustainability reporting --> Drive effective use of sustainability information to improve performance

Penn State University Strategic Sustainability

https://www.youtube.com/watch?v=gkl4LW_UA14 - Transforming education - Enhancing health - Stewarding our planet's resources - Advancing the arts and humanities - Driving digital innovation

Demographic Destiny

in 2015, seven counties joined counties 363 others (12% of counties in US) where racial minorities make up a majority of the population. Nearly a third of Americans live in these counties

Unilever example video

number 1 company in sustainability zero waste global footprint zero waste mindset job opportunities created finding a way to use every single resource used to have millions of tons of waste but was able to fully eliminate it