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Educating the Executive

By Nicola Acutt | Presidio School of Management

C-suite education in environmental, social, and governance policies is the first stop on the road to successful corporate sustainability

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In recent years, study after study has shown green is the new gold. Experts agree we face a future—starting now—where "business as usual" will simply cease to exist. Given that knowledge, business leaders around the world are looking for ways to create sustainable companies that increase shareholder value and competitive advantage.

Take GE, for example. The company launched its Ecomagination initiative in 2005 to provide customers with renewable energy and low-carbon products. According to its 2006 Ecomagination report, the company has already reported $12 billion in revenue. Sun Microsystems, which manufactures data center equipment that powers much of the Web, adopted an eco-responsibility initiative that included marketing energy-efficient products for the benefit of the environment and their customers’ bottom line.

Meet present needs without compromising the ability of future generations to meet theirs.

It’s clear there are opportunities for businesses to find innovative ways to meet present needs without compromising the ability of future generations to meet theirs. But how do executives turn this awareness into action and make strategic decisions about social and environmental issues? Business leaders can easily be overwhelmed by the plethora of sustainability frameworks, systems, standards, tools, and initiatives. They need help and critical knowledge to steer their company toward sustainability in an efficient and cost-effective way.

One option is tapping outside experts. The Global Reporting Initiative (GRI), for example, is an internationally recognized sustainability reporting initiative that includes nearly eighty environmental and social directives for companies to adopt, manage, and measure. Working with external consultants to interpret and implement an initiative like the GRI can be a helpful step in the right direction.

Considering, however, that implementing sustainable initiatives can often be complex and costly, executives must ensure there is a solid business case behind them. They need to know green initiatives can be integrated within organizational processes and strategies that feature internal accountability. Therefore, businesses wanting to become sustainability leaders will best be served by building their internal capabilities, starting with executive training and education.

Executive Options in Sustainable Education

Today, more than a dozen schools across the United States offer sustainability and corporate responsibility seminars, intensives, and programs designed for senior-level professionals. Schools including Boston College, Harvard, Stanford, University of Vermont, and Presidio School of Management in San Francisco offer open enrollment and customized sustainability programs ranging from four days to ten months. Curricula include high-level sustainability strategy courses and detailed training on management tools, metrics, and frameworks. Programs are designed to give participants a deeper perspective on what makes a sustainable business work and provide practical knowledge on how to implement sustainability across various functional areas of operation.

Many courses are geared toward C-suite executives who approve their company’s environmental, social,

and governance policies and report on their progress to investors and shareholders. Others are geared toward directors and managers who implement sustainability efforts. Regardless of responsibilities, program participants will gain the ability to recognize, interpret, and act upon changing economic, social, and ecological trends.

The most sought-after courses are those that translate abstract concepts into practical and tangible solutions. For example, business leaders may need to address ecological challenges, such as water constraints and climate change. They can do so by creating new forms of capital and new markets for sustainable products. Applicable courses include industry-specific issues, addressing how timing, competitive analysis, and scenario planning apply to specific markets. Others take into consideration a cross-section of trends involving government, business, communities, and external drivers related to energy, water, global warming, health, and human rights.

Executives and senior-level managers going through these programs will learn how to ask the right questions and articulate a compelling case for sustainable management. These executives are then better equipped to enlist support and to lead the process of internal change. One of the most beneficial outcomes of executive education is being connected to a community of peers engaged in a similar leadership process. With access to a thriving, motivated, and innovative network, executives can forge partnerships and share best practices.

Choosing the Right Program for Results

With a growing menu of executive educational options, how do you to decide which solution is right for your business? There are a number of ways to evaluate programs. Criteria might include whether courses will help participants understand how to interpret scientific evidence and changing cultural contexts and use those skills to uncover risks and opportunities. Will participants learn to solve complex and ambiguous problems and lead and inspire change? Or learn how to identify opportunities that lead to innovative products and new ways of doing business? Do courses include hands-on learning or case studies on pragmatic challenges that businesses need to address?

For example, if a company manufactures computer equipment, its leaders might seek out programs that can help them devise a strategy to reduce e-waste

or make the case for a used-equipment take-back program. Dell Computer, for example, was able to recover 40,000 tons of unwanted equipment in 2006. That’s a 93 percent increase from 2005. For retailers looking to green supply chains, business managers might look for programs that help identify, prioritize, and work with key external stakeholders. Marketing officers charged with helping companies tell compelling sustainability stories might want to make sure a program features best practices in sustainability branding, positioning, and leadership.

Another factor to consider is the business and management experience of school faculty. Ideally, professors will have extensive sustainability and business management experience gained from working with leaders such as 3M, Levi-Strauss, Motorola, Nike, Royal Dutch/Shell, and Wal-Mart.

While most programs offer courses taught by outstanding professors and subject matter experts, few offer integrated courses with a focus on immediate action and implementation. When evaluating options, it is important to ask: "After going through this program, what will I be able to do on Monday morning?"

After all, the goal is to rethink every business function, including operations, facilities, design, process innovation, human resources, marketing, finance, and stakeholder engagement. At the end of the day, participants should have a clear idea how sustainability enhances bottom-line value and how to begin implementing the green process.

While there are risks associated with being first to market or failing to set sustainability priorities, the greatest risk results from doing nothing. According to an article in the

Harvard Business Review, "Competitive Advantage on a Warming Planet," investors are already discounting share prices of companies poorly positioned to compete in a warming world. "Many businesses face higher raw material and energy costs as governments around the globe increasingly enact policies placing a cost on emissions," states the report. "Consumers are taking into account a company’s environmental record when making purchasing decisions."

An executive education program is a critical investment in determining how to build a sustainable company that increases shareholder value, market leadership, and competitive advantage in a rapidly changing world. Think of executive education as step one on the road to sustainability success.

Nicola Acutt, PhD, is a faculty member and director of curriculum development at the Presidio School of Management. Nicola has worked as a consultant to the South African government on natural resource policy and coastal management. She is a frequent guest lecturer on sustainable business at UC Berkeley.

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