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Gezgin, U. B. (2010). Education for green business and sustainability/sustainable management: Urban and regional challenges and opportunities. (Paper presented at the International Conference: Globalizing Management Education: Issues And Challenges For Industry & Academia. 5-6 February 2011, New Delhi, India.)

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  1. 1. Education for Green Business and Sustainability/Sustainable Management:Urban and Regional Challenges and Opportunities Dr. Ulas Basar Gezgin economics lecturer E-mail:
  2. 2. • Gezgin, U. B. (2010). Education for green business and sustainability/sustainable management: Urban and regional challenges and opportunities. (Paper presented at the International Conference: Globalizing Management Education: Issues And Challenges For Industry & Academia. 5-6 February 2011, New Delhi, India.)7/10/2011 sustainability & management - Dr.Gezgin 2
  3. 3. Abstract• As rapid and mostly unplanned urbanization poses its challenges for highly populated cities, climate change is hitting the agenda by unusual weather events such as heat waves, sea level rise, urban flooding, typhoons etc. On the other hand, the situation is not so bleak. Green business is burgeoning in diverse areas such as green products, solid waste management, low-carbon vehicles, energy saving appliances etc. While whether the positive effects of green business would be sufficient to mitigate or adapt to challenges brought by climate change is under discussion; what is lacking is a holistic, integrative approach to green business that would coordinate micro and meso efforts within urban and regional planning framework.7/10/2011 sustainability & management - Dr.Gezgin 3
  4. 4. Abstract• Green business and sustainability/sustainable management education stand out as a convincing means for that purpose. Thus, this paper discusses current trends in green business and sustainability/sustainable management and lists some recommendations for what we call as ‘the human development hexagon’ that consists of university, government, NGOs, international organizations, media and industry.• Keywords: Green business, sustainability, sustainability management education, sustainable management education, urban planning, and regional planning.7/10/2011 sustainability & management - Dr.Gezgin 4
  5. 5. Contents• 1. Sustainability and Greening of Business and Business Education• 2. Classification of Business Education Programs As to Sustainability• 3. Non-formal Sustainability Training• 4. Attitudes Towards Business Education About and For Sustainability• 5. What to Teach and How to Teach• 6. An Example of Greening of Business Subjects:• Green Human Resource Management• 7. Green MBA• 8. Discussion: Future Research and Policy Directions• 9. Recommendations7/10/2011 sustainability & management - Dr.Gezgin 5
  6. 6. 1. Sustainability and Greening of Business and Business Education• Introduction of green terms into everyday conversation: ‘green energy’, ‘renewable energy’, ‘eco- friendly’, ‘ecological footprint’ etc• The rise of green business and the greening of business• 6 ‘leading green economy investments’:• Building retrofitting,• mass transit,• energy-efficient automobiles,• wind power,• solar power and• cellulosic biomass fuels (ACTE, 2008)7/10/2011 sustainability & management - Dr.Gezgin 6
  7. 7. 1. Sustainability and Greening of Business and Business Education• Green Trends:• Green collar employees (green work force)• Global shortage of green collars• “Energy and indoor air quality auditor,• deconstruction worker,• solar installer and technician,• wind energy technician,• wind energy mechanic,• windsmith, ethanol plant technician,• ethanol plant operator,• ethanol or biodiesel maintenance mechanic,• biodiesel laboratory technician, and• biodiesel process control technician” (ACTE, 2008).7/10/2011 sustainability & management - Dr.Gezgin 7
  8. 8. 1. Sustainability and Greening of Business and Business Education• ‘Economy first principle’: “We have to develop economically first, and only after that, we can take care of environmental problems” and “we don’t have sufficient funds for environmental problems, we will have them once we will develop”.• But some of the resources are non-renewable and the costs of cleaning up the environmental problems will be higher in the future compared to in-source costs now.7/10/2011 sustainability & management - Dr.Gezgin 8
  9. 9. 1. Sustainability and Greening of Business and Business Education• Sustainability:• Negative View:• How to stop environmental problems?• Positive View:• How to contribute to environmental resources and capabilities?• Education about sustainability: Focus on content.• Education for sustainability: Focus on a change in the frame of thinking (pedagogic approaches integrated with real life practice).7/10/2011 sustainability & management - Dr.Gezgin 9
  10. 10. 2. Classification of Business Education Programs As to Sustainability• The green MBA continuum:• No coverage• Dedicated course• Green as a major• Green dual masters• Total green integration• 200 MBA programs in US reviewed.• The demand for all 4 categories of the green MBA continuum will rise as a result of the growth of green business (Nodoushani, Collins & Nodoushani, 2008).7/10/2011 sustainability & management - Dr.Gezgin 10
  11. 11. Dedicated Course• One course on sustainability and/or green issues.• The ‘greenery’ in those programs is less secure, as these courses can be removed in the upcoming semesters.7/10/2011 sustainability & management - Dr.Gezgin 11
  12. 12. Green as a Major• A concentration of green courses along with conventional MBA courses.• Strong competitors against green MBA in the market.• Students prefer conventional MBA courses plus green courses.• Wharton School of the University of Pennsylvania, Environmental and Risk Management major• Columbia Business School, Social Enterprise Program• Johnson School of Cornell University, Sustainable Global Enterprise concentration• Fuqua School of Business at Duke, Social Entrepreneurship concentration• George Washington University: MBA Program, Environmental Policy and Management concentration;• Kellogg School of Management at Northwestern, Social Enterprise concentration7/10/2011 sustainability & management - Dr.Gezgin 12
  13. 13. Green Dual Masters• Allow MBA students to get a double degree with an MS program related to environmental issues• Teach conventional MBA courses and environmental courses separately• Green issues are not infused in MBA courses; it is up to the students to do that.• Yale School of Management and Yale School of Forestry & Environment• Tuck School of Business at Dartmouth and Vermont Law School: MBA/Master of Studies in Environment;• Stanford University: Graduate School of Business (MBA/MS in Environment and Resources)• Syracuse University: Whitman School of Management (a joint MBA/MS Environmental Science and Forestry with the State University of New York College of Environmental Science and Forestry)• The University of Arizona: Eller College of Management (MBA/Natural Resources dual degree)• The University of Michigan: Ross School of Business (a three-year MBA/MS entitled Natural Resources and the Environment)7/10/2011 sustainability & management - Dr.Gezgin 13
  14. 14. Total Green Integration• The focus on ecological and ethical issues as well as value- driven business• Dominican University: Green MBA (San Rafael, CA);• Presidio School of Management: MBA in Sustainable Management (San Francisco, CA);• Bainbridge Graduate Institute: MBA in Sustainable Business (Bainbridge Island, WA);• Antioch University New England: MBA in Organizational and Environmental Sustainability (Keene, NH);• Marlboro College: MBA – Sustainability (Brattleboro, VT);• Green Mountain College: MBA (Poultney, VT)7/10/2011 sustainability & management - Dr.Gezgin 14
  15. 15. ‘Education about and for Sustainability in Australian Business Schools’• Tilbury, Crawley & Berry (2004):• Analysis of 37 Australian university business schools offering over 55 MBA programs.• Adopted the criteria set by BGP (‘Beyond Grey Pinstripes’): Number of sustainability-related courses, the research output related to sustainability, extracurriculur activities etc• (149 business schools from 24 countries joined the BGP rankings in 2009. The coverage is mainly American business schools.)• 3 groups:• Leading edge schools• Good practice schools• Acceptable standard schools7/10/2011 sustainability & management - Dr.Gezgin 15
  16. 16. Criteria for Leading Edge Schools• “- A considerable number of core and elective subjects based on education about and for• sustainability and a sub-specialisation stream in sustainability;• - Staff who have teaching and/or research expertise in the area of education for• sustainability;• - Staff and senior management who recognise the importance of developing• sustainability knowledge and skills amongst business graduates. This is articulated• through course material and promotional information;• - MBA subject and generic outcomes or MBA graduate profiles which include• sustainability;• - Students are provided with the opportunity to address sustainability through their• assignments;• - Students’ skills are developed in areas considered important to the understanding and• implementation of strategic change toward sustainability such as critical reflective• thinking, systemic thinking, change management, stakeholder engagement, futures• thinking; and• - Extracurricular and student initiated activities such as conferences, seminars are• offered as part of the curriculum” (Tilbury, Crawley & Berry, 2004, p.54).7/10/2011 sustainability & management - Dr.Gezgin 16
  17. 17. Leading Edge Schools (non-Australian)• The best performers• Criteria: Whether sustainability is considered to be part of graduate/exit skills and generic outcomes of the business education program, student and industry involvement with sustainability through the business education program, extracurricular training etc.• Schulich School of Business, York University, Canada;• School of Business & Economics, University of Jyvaeskylae, Finland;• Kenan-Flagler Business School, University of North Carolina at Chapel Hill, USA.• Bainbridge Graduate Institute, USA (not a university, but awards MBA degrees in Sustainable Business and a certificate in Sustainable Business)• No Australian business school is under this category.7/10/2011 sustainability & management - Dr.Gezgin 17
  18. 18. Good Practice Business Schools• Non-Australian:• INSEAD, France• Asian Institute of Management, Philippines• Brandeis University, USA.• Australian:• International Graduate School of Management at the University of South Australia• School of Management at the Royal Melbourne Institute of Technology (RMIT) and• Graduate School of Marine Resource Management at the Australian Maritime College.7/10/2011 sustainability & management - Dr.Gezgin 18
  19. 19. Acceptable Standard Schools• Non-Australian:• University of Wales Swansea, United Kingdom• Instituto de Empresa, Spain.• Australian:• Business schools of Central Queensland University,• the University of Canberra,• James Cook University,• the University of Queensland,• the Queensland University of Technology and• the University of Southern Queensland.7/10/2011 sustainability & management - Dr.Gezgin 19
  20. 20. ‘Education about and for Sustainability in Australian Business Schools’• No specialized MBA programs in sustainability in Australia, although there were some MBA programs with sustainability-related electives.• 17 out 37 Australian university business school were found to have very little or no sustainability education.• 3 problems:• Shortage of sustainability-trained faculty,• Low demand,• and low level of interest by faculty.7/10/2011 sustainability & management - Dr.Gezgin 20
  21. 21. ‘Education about and for Sustainability in Australian Business Schools’• Tilbury, Crawley & Berry (2004) recommendations for Australia:• “- Identify and build relationships with champions in the corporate sector thus providing• a critical link between the sustainability needs of business and curriculum offerings;• - Raise student demand and faculty support for sustainability courses;• - Undertake a needs analysis into business requirements and expectations of MBA• and other business graduates in the area of sustainability;• - Provide incentives and support for MBA staff to develop their knowledge and• skills in sustainability and education for sustainability;• - Provide incentives and support to Business Schools to revise core courses and• develop new optional courses to address education for sustainability:• - Develop new resources to support integration of education for sustainability in core• courses - in particular documenting industry case studies;• - Develop industry partnerships that provide work placements and mentoring; and• - Encourage integration of international experience to promote change/ research” (p.60)7/10/2011 sustainability & management - Dr.Gezgin 21
  22. 22. 3. Non-formal Sustainability Training• The extensive role played by non-MBA providers of sustainable education• Australian professional sustainability training course providers:• “Government departments and authorities (federal and state);• Business and industry associations;• NGOs, think-tanks and not-for-profit organisations; and private/commercial organisations;• Training organisations; consultants – offering training programs;• Conference/seminar management organisations; and• The media, including magazines and websites”• (Tilbury, Crawley & Berry (2004, p.41).• Government provides the highest number of sustainability training courses.7/10/2011 sustainability & management - Dr.Gezgin 22
  23. 23. 3. Non-formal Sustainability Training• Industrial organizations : • NGOs:• Australian Water Association • World Wildlife Fund, (AWA), • the Total Environment Centre,• Waste Management • Green Skills Inc Association of Australia, • Vox Bandicoot.• Australian Business Council for • Training organizations and Sustainable Energy (BSE), consultants :• Environment Business • EcoSTEPS, Australia (EBA)• the Clean Air Society of • the Sustainability Centre, Australia and New Zealand • Sustainable Learning• the Ethical Investment Australasia, Association. • NCS International, and • SAI Global Assurance Services.7/10/2011 sustainability & management - Dr.Gezgin 23
  24. 24. 4. Attitudes Towards BusinessEducation About and For Sustainability• The receptiveness options of higher education institutions for sustainability in general:• “1. Rejection.• 2. Response to and compliance with government regulation.• 3. Risk assessment: the increasing insurance, business and public image risks associated with poor levels of environmental performance.• 4. Recognition of cost savings such as reductions in energy and material use and opportunities for recycling and transforming waste to new products.• 5. Growing awareness of the seriousness of global and local environmental trends.• 6. Institutional opportunity: the competitive advantage institutions see in cross- institutional leadership in environmental performance.• 7. Strategic sustainability: the development of comprehensive social, economic and environmental strategies.• 8. Full institutional commitment to the implementation of those strategies” (Grundy, p.80).7/10/2011 sustainability & management - Dr.Gezgin 24
  25. 25. 3 Limitations of Business Education as to Sustainability• Specialisation vs. Integration: Sustainability as a specialized course vs. infusing sustainability issues into the core business subjects• Orientation and commitment: Not all the business schools are receptive to education for sustainability at the same level• “The conceptual fuzziness of sustainability”• (Spitzeck & Siegenthaler, 2005).7/10/2011 sustainability & management - Dr.Gezgin 25
  26. 26. Questions for Sustainability Education in Business Schools• “How to evaluate and monitor the integration of ESD into business education?• How to stimulate awareness, motivation and commitment among faculty members and university management?• How to implement a stakeholder-driven cooperative learning process towards best practice to overcome the fuzziness of the general sustainability concept?• And finally, how to assess the effectiveness of ESD at business schools?” (Spitzeck & Siegenthaler, 2005, p.3).7/10/2011 sustainability & management - Dr.Gezgin 26
  27. 27. 5. What to Teach and How to Teach• “A three- or 4.5 hour class • Self-assessment tasks, might include • holistic approaches,• a faculty presentation, • up-to-date curriculum• student presentations, supported by recent case• a role-playing activity, studies,• a skills practice activity, • experiential and experimental• small group feedback circles, nature of the courses,• and dialogue about important • extra-curricular student news items” (Stayton & engagement, Calingo, 2008, p.7). • field practice and partnership with external actors • are significant contributors for the teaching-learning outcomes of green MBAs (Stayton & Calingo, 2008).7/10/2011 sustainability & management - Dr.Gezgin 27
  28. 28. 5. What to Teach and How to Teach• How to sustain green MBA programs while more overarching frameworks such as corporate social responsibility and sustainability are getting more popular (Stayton & Calingo, 2008).• We don’t have an answer that would satisfy everybody. Even before that, the assumption that we should have green MBAs rather than other forms of sustainability education could be questioned.• On the other hand, as the green industries are getting more and more specialized and are in need of highly qualified staff, more green MBAs should be opened.• Burke (2010) questions the timing of business education for sustainable development. According to him, the education should come earlier; as it may be difficult to change the mindsets at adulthood. ACTE (2008) runs high school level sustainability education programs which may prepare MBA students for green issues beforehand. Likewise, some green courses can be introduced into the undergraduate curriculum.7/10/2011 sustainability & management - Dr.Gezgin 28
  29. 29. 6. An Example of Greening of Business Subjects: Green Human Resource Management• Greening of HR stages of• recruitment,• performance management and appraisal,• training and development,• employment relations,• pay and reward, and• exit (Renwick, Redman & Maguire, 2008).7/10/2011 sustainability & management - Dr.Gezgin 29
  30. 30. Green Recruitment• The job description can specify environmental conditions of the workplace;• Environmental awareness, considerations and responsibilities can be included in key selection criteria.• From applicants’ point of view, the environmental reputation of the company is considered as one of the criteria to apply for the company by highly qualified recent graduates for example in Britain.• As a result of this finding, some companies have promoted green campaigns not only to attract customers, but also to differentiate themselves as ‘high-level employers’ in labor market.7/10/2011 sustainability & management - Dr.Gezgin 30
  31. 31. Green Performance Management and Appraisal• Some companies are setting ‘corporate-wide environmental performance standards’ such as waste management, and environmental audits and green information systems to collect corporate-wide data.• Green criteria can be incorporated into performance appraisal;• and good green performance and practices can be rewarded to encourage a greener course of action.7/10/2011 sustainability & management - Dr.Gezgin 31
  32. 32. Green Training and Development• Recurring themes in staff training are topics such as• waste management and reduction, energy efficiency, pollution, and hazardous substances with regard to the area of operation.• These are not only useful for environmental protection, but also maximize firm’s profit in the long run by promoting efficiency and retaining a more educated labor force.• Many multinational corporations very well understood that green business practices could lower costs, increase efficiency and build up good reputation for marketing purposes.• Environmental auditing of the operations;• setting up an environmental committee at corporate level that consists of HR Department members, staff and environmental experts; and• adding up an environmental awareness session for staff induction program.7/10/2011 sustainability & management - Dr.Gezgin 32
  33. 33. Green Employment Relations• Recycling of aluminium cans in airline industry;• Environmental attitudes surveys to identify the needs of the staff for a greener course of action;• Publicly rewarding staff who comes up with proactive, creative environmental ideas;• Encouragement of green transport options;• A legal framework in which environmentally unfriendly practices within the firm could be considered as a breach of contract and may lead to dismissal;• Encouraging staff to bring their recyclable materials to work if no recycling option is available at home; and• Organizing trips related to environment such as national park trips.• Social support from management is vital for green business practices within the firm.7/10/2011 sustainability & management - Dr.Gezgin 33
  34. 34. Green Pay and Reward Green Exit• Employees can be rewarded for waste management,• and tiny rewards can be in forms that can help environment such as tickets for trips to a national park.• Environmental rewarding and recognition in companies are especially common in Nordic countries.• At the exit stage, the staff can be informed about the environmental issues upon their leave,• and asked about environmental points s/he wants to raise as a contribution to the improvement of the company.7/10/2011 sustainability & management - Dr.Gezgin 34
  35. 35. 7. Green MBA• Dominican green MBA focuses on 3 topics/skills:• “- the understanding of how underlying systems work, including ecological, social and economic systems, and the development of critical and systemic thinking skills to make well reasoned decisions in uncertain, often chaotic environments;• - the team-building and other relationship skills required to lead organizational change; and• - the tools and methodologies that can help organizations to steward the three capital accounts at their disposal: financial capital, human capital, and natural capital. By nurturing and growing all three capital accounts, organizations benefit their shareholders, human society, and the natural world”• (Stayton & Calingo, 2008, pp.7-8).7/10/2011 sustainability & management - Dr.Gezgin 35
  36. 36. 7. Green MBA• Offer in green MBA is not only a green and socially responsible curriculum; but also personal transformation as a result of attending the program, and a sense of community formed by e-networks, certificates, alumni events, a newsletter and other linked activities (Stayton & Calingo, 2008).• Stayton & Calingo (2008): [transformation] “requires a fundamental shift in how one perceives self, the world, and the relationship between them. An educational program cannot cause a personal transformation, but it can provide an environment that supports personal transformation, and the stimulus to catalyze it” (p.9).7/10/2011 sustainability & management - Dr.Gezgin 36
  37. 37. 8. Discussion: Future Research and Policy Directions• 8.1. In-service training in sustainability vs. formal education in sustainability at school• 8.2. Training and/or education of managers for sustainability vs. training and/or education of environmental specialists for managerial skills• 8.3. Educating students for green businesses (to get a job in green businesses) vs. incorporating green issues into MBA programs• 8.4. Sectoral MBAs vs. general MBAs• 8.5. Sustainable management vs. sustainability of business• 8.6. Form vs. content of the sustainability education• 8.7. Sustainability as part of a CSR or business ethics course or module vs. as an independent topic• 8.8. MBA students as future decision makers vs. consumers• 8.9. Green business by the industry vs. green business by the practices7/10/2011 sustainability & management - Dr.Gezgin 37
  38. 38. 9. Recommendations• ‘The human development hexagon’ that consists of university, government, NGOs, international organizations, media and industry:• 9.1. Recommendations for universities• 9.2. Recommendations for governments• 9.3. Recommendations for NGOs• 9.4. Recommendations for international organizations• 9.5. Recommendations for media• 9.6. Recommendations for industries7/10/2011 sustainability & management - Dr.Gezgin 38