Apollo XIII

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Leaders in Sustainability

• UCLA PP 290
• Magali Delmas

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Sustainability?

• development that meets the needs of the present
  without compromising the ability of future
  generations to meet their own needs
• 1987 World Commission on Environment and
  Development Bruntland report defined sustainable
  development as
• How to predict the need of future generations?
  How to predict available technologies?
• Mid 1990s over 100 definitions of sustainability

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Corporate Sustainability

• A business approach that creates long-term
  shareholder value by embracing opportunities and
  managing risks deriving from economic,
  environmental and social development
• DOW Jones Sustainability Index

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Triple Bottom Line

• Economic return AND environmental protection and
  social justice
• Eco-efficiency, fair trade, environmental justice
• Do these practices actually lead to
  sustainability?

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Reinhardt the environment as a business problem
(1997)

• It is important to recognize the conditions under
  which it pays to be green.

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Conditions to reconcile provision of public good
and expected value of the firm (1)

• Possibility for strategic interaction with
  competitors
• Rent seeking (German car manufacturers)
• Collusion (Responsible Care)
• Opportunities to differentiate products
• Bundle public good with private consumption
  benefit (Patagonia)

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Conditions to reconcile provision of public good
and expected value of the firm (2)

• Discovery of unexploited cost savings
• (Interfaces, Xerox product take back)
• Managing environmental risks
• insurance policy sour community relations related
  costs shocks (Exxon)
• Increase productivity
• Recruit and retain high level employees with
  personal environmental convictions

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Next week

• 4 short ppt presentations related to 4 cap and
  trade programs
• US Acid Rain Program
• Emission Trading in the EU
• South Air Quality Management District Reclaim
  Program
• Chicago Climate Exchange program
• 1 page summary of your group project objective
  and methodology