Chapter 1 The structure and purpose of this book

Petra Molthan-Hill

This chapter gives an overview about the book and each chapter as well as the sections in every chapter:

  • Chapter brief: This outlines the learning outcomes and content of the chapter.
  • Core text: Here you will find an introduction to the key definitions and concepts to be studied in the subject concerned, which are later applied in the seminars.
  • Three fully developed sessions (for sessions of approximately 50–60 minutes): Each of these sessions is ready to be delivered without further preparation required by the educator. They can also be studied independently by a student. Most seminars can be broken down into different exercises so that shorter activities can be chosen. The three seminars in any one subject area mostly use different learning methods, e.g., an artwork, a game, or a case study.
  • Additional teaching/learning materials and ideas: This section in each chapter offers short summaries of additional ideas for teaching/self-study such as movies or websites.
  • Further reading: Five recommendations are given for further study. Each book or article recommended is summarised in a short paragraph outlining the key benefits for the reader.

Chapter 2 A new framework for embedding sustainability into the business school curriculum

Petra Molthan-Hill, Carole Parkes, Susan Hill and Rajul Singh

In this chapter some of the key concepts used in this book and in sustainable management are briefly introduced. Students might find it useful if they want to understand some of the underlying concepts or deepen their knowledge. However, this chapter is mainly written for Business and Management Schools as guidance and a framework on how to embed sustainability into management/business education. Thus, the chapter sets out strategies and processes for embedding sustainability into the curriculum of a business school with ideas about the various approaches they can take and how it can be all combined together. The following questions will be addressed:

  1. What structural approaches can be been taken by business schools to embed sustainability into the curriculum? (More a question of how it is taught rather than what is taught.)
  2. What should be taught/studied? What have been identified as core skills and knowledge in sustainable management?
  3. What approaches can be used in developing strategies for both structural and process change at School and curricula level?

To address these questions, conceptual frameworks, including the UN backed Principles for Responsible Management Education (PRME) Transformational Model for embedding sustainability and responsible management into the business and management curriculum, are discussed. These frameworks can be used to assess the current status of how well sustainability is embedded in a business school and how it could be developed further.

Chapter 3 Climate Change Mitigation Education in Business Schools: Now It Is Time to Save the Day!

Petra Molthan-Hill, Lia Blaj-Ward, Jennifer S.A. Leigh, and Florian Kapmeier

Climate change is one of the key challenges of this century due to its impact on society and economies. Students are asking their business schools to scale up climate change education (CCE) across all disciplines and employers are looking for graduates ready to work on solutions. This is shared by faculty, however, in a recent survey many highlighted that they do not know how to teach CCE in their discipline.

This chapter supports lecturers and senior management in their journey to get an overview of CCE and more importantly, to find high-impact climate solutions to be integrated and assessed in their teaching units.

This chapter will explore the pressing issue of cutting greenhouse gasses and why business students need to understand the basic concept of climate change and how to mitigate it. The three dimensions of Climate Change Education will be defined and many examples of climate change mitigation education in various business disciplines given. Two fictional characters will guide the reader through their thought processes on how to integrate CCE, one being in their early career, the other in a more senior position. Finally, a self-guided activity is offered on how to integrate CCE in a teaching unit with assessment.

Chapter 4 Sustainable and Employable Graduates

Fiona Winfield and Richard Howarth

This chapter explores why being literate in sustainability and climate change is imperative for all business students and seeks to demonstrate how this links to students’ employability. It examines the demand for such a focus from students, businesses and employers. The focus is not just on ‘green jobs’, however, but on any job in the future.

Then, following a review and comparison of sustainability and mainstream competences (based on the work of the European Union, UNESCO, the WEF, AdvanceHE and the UK’s QAA), an integrated framework is developed. Research from the Inner Development Goals initiative is also touched upon.

Finally, a new Sustainability Competency Matrix is presented, which entails students creating a ‘personal gap analysis’, to identify areas for development. A means of encouraging involvement in extra-curricular sustainability-related activities is also showcased.

Chapter 5 Integrating the three pillars of sustainability: social, environmental and economic

Aldilla Dharmasasmita and Sigrun M. Wagner

In chapter 5, the concept of the triple bottom line is introduced, as developed by Elkington (1997), which conceptualises the three pillars of sustainability for companies – people, planet and profit. The challenges of sustainable integration are explored. The doughnut economics framework is introduced as another way of conceptualising sustainability across all three aspects of environment, equity and economy. Each element is then covered in turn. On the environmental side, ecosystem services are explored and how corporate payments for these would change our global price system. Eco-efficiency and eco-effectiveness are introduced as vital components of environmental sustainability, that also affect the social element. Under social sustainability, socio-efficiency, and socio- effectiveness are covered and a framework of questions introduced for companies, emphasising the importance of a (social) license to operate. The economic side focuses on the long-term sustainability of companies, and the importance of taking into account not just shareholders but a range of stakeholders. The chapter concludes with a reference to ‘shared value’, focusing on the connections between societal and economic progress in particular, and how the purpose of a corporation needs to be redefined from creating solely monetary value to creating value for the environment and society for mutual benefit.

Chapter 6 PRME, the UN Global Compact and the Sustainable Development Goals

Tabani Ndlovu and Sihle Ndlovu

While discussions and debates on climate change and sustainability tend to reference the United Nations Global Compact, the Principles of Responsible Management Education (PRME) and Sustainable Development Goals (SDGs), there does not exist one comprehensive reference point where all these concepts are defined and linked. This chapter provides a one-stop-shop reference point, offering an overview of these concepts, their interlinkages and how they place the role of business at the centre of tackling sustainability issues facing the world today. It singles out business students (in their capacity as global citizens and future players in the business domain) as a key cog capable of driving forward the sustainability agenda in general and responsible business management practices in particular. Business students are an integral part of future business decision-making. To this end, universities in general and business schools in particular play a unique role in equipping business graduates with skills to tackle the ethical and sustainability challenges facing the world today and in years to come. The chapter contextualises possible solutions to issues facing the world at a personal level, requiring each person to start in their local contexts. The chapter ends with typical seminar activities that can be used in classroom environments to get participants to apply and reflect on the concepts in simulated scenarios.

Chapter 7 Sustainability reporting

Christian Herzig and Biswaraj Ghosh

The chapter introduces the reader to the evolution of sustainability reporting and the different forms it takes. We discuss the reasons for its growth and the present day motivations for companies to increasingly resort to reporting on their sustainability strategies and initiatives. We then explore the principles underpinning various reporting frameworks, in particular, the Global Reporting Initiative (GRI), and Integrated Reporting, and mandatory reporting frameworks that have evolved over the years, providing a further stimulus to sustainability reporting. The chapter also provides an overview of the different themes and aspects commonly reported by companies, including the environment, society and governance. Finally, the chapter discusses the role of the internet as a medium for communicating sustainability-related aspects. We conclude the chapter by offering some thoughts about the challenges and problem areas associated with sustainability reporting.

To help the readers understand key themes and concepts of sustainability reporting, three seminars were designed using the case of the Fast Moving Consumer Goods (FMGC) company Unilever. These seminars address the accuracy and transparency of Unilever’s sustainability reporting practice, the application of GRI reporting principles and the use of the internet to enhance reporting on sustainability by Unilever.

Chapter 8 Designing Sustainable Business with the Base of the Pyramid.

Angelo P. Bisignano, Patricia H. Werhane, and Michael Ehret

The chapter shows business students how to successfully design business models for launching products and services that can contribute to reduce poverty worldwide.

The chapter introduces poverty reduction as a crucial goal for the firm and it revises the implementation of the enterprise-based approach to the Base of the Pyramid promoted by Prahalad and Hart (2002). In bringing together the literature on business models with the literature on poverty alleviation, the chapter suggests firms should use a bottom-up approach that is centred around the users and the various community stakeholders. Examining cases of success and reflecting on failures, students will better understand poverty as a polyhedric concept. As such, poverty requires holistic and collaborative approaches, rather than solutions designed and imposed at the “top of the pyramid” to truly have the chance to achieve Sustainable Development Goal 1.

Chapter 9 Economics for low carbon futures

Rosa Maria Fernandez

This chapter introduces the reader to concepts and tools used by Environmental Economics that can help businesses in their attempts to adopt more sustainable practices. It discusses how Economics as a discipline needs to evolve and adapt to the challenges that climate change is imposing in our societies in order to provide responses to said challenges in line with the aims of the 2030 Agenda for Sustainable Development. In that regard, the consideration of social aspects and the promotion of social justice needs to become more evident. Through the use of case studies and other examples, the reader will be able to explore economic policy options to address some of the environmental issues that countries face nowadays. These include the decision between taxes, subsidies and other instruments to internalize externalities (make the polluter pay); options to deal with waste management; how to give a monetary value to environmental goods and services (so they are not ignored in decision-making processes); or the understanding of the trade-offs between international trade and the environment. The reflection over different measures and their pros and cons aims to provide additional tools for businesses to be encouraged to adopt more environmental and socially responsible practices.

Chapter 10 Human resources management: developing a sustainability mindset

Daniel King and Elaine Cohen

Sustainable HRM (human resources management) is a combination of two elements: (1) leveraging HR (human resources) tools and processes to support sustainable business objectives, and (2) performing HR sustainably, that is, in a way which creates an organisational culture that is ethical, respectful and inclusive, invests in the development of employees and empowers them to engage at the maximum level of their capabilities (Cohen et al. 2012).

This chapter will help you to understand the role of HR teams in supporting sustainable business and the responsibility of HR teams to perform HR sustainably.

The learning outcomes of this chapter are:

  • You will be able to describe how HR supports sustainable business and the connection between HRM and sustainability
  • You will be able to understand examples of the way HR practices affect society and possible ways to integrate social and environmental considerations into HR processes in order to improve the social and environmental impacts of business
  • You will know where to find more information and examples of good practice in the area of sustainable HRM
  • You will be able to understand some of the principles behind having a sustainability mindset

Chapter 11 Sustainable marketing

Helen Goworek and Angela Green

In this chapter you will learn about ways in which businesses can conduct their marketing activities more sustainably and how we can harness our power as consumers to reduce sustainability impacts. After reading this chapter you will be able to:

  • Relate marketing theory to sustainability
  • Understand how the key aspects of marketing are linked to sustainability
  • Examine recent academic and industry developments in this field, in terms of both theory and practice
  • Understand how marketers and consumers can lower their sustainability impacts and encourage more sustainable production (SDG 12)

Chapter 12 Crowdsourcing for sustainable solutions

Lorinda R. Rowledge

This chapter examines some of the powerful ways in which open innovation and crowdsourcing are applied to solving environmental, social and economic sustainability challenges. Businesses, governments, non-governmental organisations (NGOs) and academic institutions are tapping into the collective intelligence of the ‘crowd’ to develop innovative technological and social solutions for ecological and social justice problems. The content and exercises in this chapter will:

  • Explore crowdsourcing and different ways it is applied
  • Describe the rationale for open innovation and crowdsourcing as an important approach to innovation—in general, and for sustainability and social innovation challenges in particular
  • Analyse examples of crowdsourcing applied to finding innovative solutions that advance sustainable and socially just businesses, economies and lifestyles
  • Share insights and learning from personal experience participating in a crowdsourcing challenge
  • Discuss the implications of open innovation and crowdsourcing for leadership.

Chapter 13 Sustainable operations management

Roy Stratton, Maggie Zeng, Aquila Yeong, Talal Alsharief

Operations is the doing part of a business, be it providing an interactive service or transforming raw materials into a valued product and subsequently recovering the technical and biological materials to be reused or naturally recycled. The chapter introduces circular business models that address the entire life cycle, which is contrasted with the traditional linear model of ‘take-make-waste’. Directions for improvement are explored, together with case evidence, acknowledging the importance of technology in enabling a trade-off free transition.

The theory of performance frontiers is used to convey the importance of understanding trade-offs and how technology can enable higher environmental performance at lower cost. However, more importantly, the theory identifies that the actual performance is found to significantly lag, due, in large part, to inherent inertia in realigning Policies, Measurements and Behaviours (PMB). This theory originally emerged to explain the importance of realigning PMB in the adoption of flow management systems, such as the Toyota Production System / Lean, and is included here as similar issues apply as we widen our systems perspective further when dealing with the environment. The chapter concludes that service driven business models provide an exciting challenge to operations management, but the main constraint is the speed with which business and society is able to embrace the new paradigms made possible by the existing as well as future technology.

Chapter 14 Sustainable supply chain management

Lynn Oxborrow

This chapter explores some of the key challenges related to the theory and practice of sustainable supply chain management. You will see how management of the supply chain increasingly needs to account for both the impact on supply chain risk and performance caused by climate change, and how the supply chain itself can contribute to reducing environmental and social impact.

The chapter will help you to:

  • Gain an understanding of the concept of sustainable supply chain management
  • Recognise the importance of sustainable supply chain management in the management of GHG emissions and improved social impacts
  • Discuss some of the main dilemmas related to the practice of sustainable supply chain management, including both social and environmental sustainability
  • Understand the importance of traceability and transparency within the sustainable supply chain and the need to avoid corrupt practices

It will cover:

  • the concept of supply chain management and managing the green supply chain and its environmental impact
  • social supply chain management with specific reference to modern slavery
  • emerging signs of the trade-offs and convergences between the two areas of focus.
  • Less well-known aspects of sustainable supply chain management, including transparency, traceability and anti-corruption.

Chapter 15 Climate change and greenhouse gas management

Richard Holmes, Al Dharmasasmita, Helen Puntha and Ellie Kennedy

This chapter introduces the global challenge of climate change as it relates to business activity, with specific focus on business approaches ‘Carbon Management’ (greenhouse gas management (GHG). It considers how businesses impact and are affected by climate change. It also discusses the key steps business organisations can take to identify and measure their GHG emissions, enabling them to be more efficient in their processes which, in turn, can lower their production and/or running costs.

The opening section of this chapter is written as a general introduction with enough detail to give you a working understanding of what is required to complete the activities. More detail is provided in the subsequent section of the chapter, followed by material for teaching units, learning activities and further recommended reading.

In this chapter you will learn:

  • How Climate Change is connected to business
  • Why ‘Carbon Management’ can help businesses minimise their impact on the climate as well as reduce energy and other running costs
  • How organisations can measure their impact on the climate
  • What actions organisations and individuals can take to reduce their climate impact and save money.

Chapter 16 Stakeholder engagement and corporate peacemaking

Natalie Ralph and Ellie Kennedy

Stakeholder engagement is essential for business. In all markets, most companies benefit from peace and stability, while severe social discord or violent conflict is damaging to sustainability. This chapter practically illustrates how stakeholder engagement can support conflict reduction and peacemaking in conflict-affected markets (and even generally peaceful countries) through Corporate Peacemaking (CPM). This is highly relevant in our era of global crises such as climate change, pandemics, and energy crises fuelling societal stress. Core concepts in stakeholder theory, and various pragmatic, real-life and normative Corporate Peacemaking strategies are outlined, alongside some key challenges, risks and opportunities. Case studies and scenarios from around the world, tools, detailed seminar plans, additional creative learning activities and assessment tasks, and further reading are included. Successful, ethical and good Corporate Peacemaking can help build more resilient, peaceful communities and stronger relations with and between a company’s stakeholders. It can demonstrate corporate responsibility, while protecting the company and its reputation. This chapter particularly contributes to Sustainable Development Goal (SDG) 16, while indicating links to additional global challenges such as the environment and climate change (SDG 13).

Chapter 17 Systems Thinking and Sustainable Management

Nestor Valero-Silva

This chapter will illustrate how Systems Thinking can contribute to understanding, communicating, and addressing sustainability issues in management. It will also familiarise you with its main concepts and practical tools, facilitating further research.

As the business world is inherently linked to all the 17 Sustainable Development Goals (SDGs), thinking systemically and using systems diagrams can make an important contribution towards achieving them.

Systemic thinking can also contribute towards the ‘PRME Working Group on Developing a Sustainability Mindset’.

Chapter 18 Developing sustainably responsible strategies in business

Mathias Schüz

This chapter provides the reader with a better understanding of how companies can assess their strategic options for business development in order to comply with demands from different environments respectively stakeholders. For this, it clarifies the deeper meaning and interrelation of fundamental terms such as sustainability, responsibility and ethics. Furthermore, it discloses the significance of sustainably responsible activities for the long-term success of business strategies. Participants of this course can:

  • Learn how to gain a competitive advantage by developing sustainable strategies that cope with the different challenges of economic, social and ecological issues
  • Develop strategies that cope with threats and exploit opportunities by applying strengths and compensating for weaknesses
  • Understand the deeper meaning of responsibility, sustainability and ethics
  • Check whether a strategic option is in compliance with demands for sustainable corporate responsibility
  • Comprehend the deeper ethical reasoning behind the Principles of UN Global Compact and Sustainable Development Goals (SDGs).
  • Relate the need for sustainable responsible strategies on climate change, among other issues.