Module 1. Doing Well and Doing Good

1. Aug 25th: Introduction & Business Models for Shared Value

Introduction to the course. We will begin by going through the course. We will use a research project as basis for many discussions in this course. To familiarize yourself with this research, please read the HBR article The Best CEOs in the World (HBR January 2010). It lists the best-performing CEOs/companies based on financial performance. Since then, we have also screened on social/environmental performance. I will talk more about how this relates to the course content.

In the first session, we will kick off with the first of 3 big themes–-How can business do both well and good? Business is under pressure to produce just not profits but also to be responsible with respect to the environment and to contribute to society. At one level, this can be seen as doing the minimal–do no harm. But the bigger question is: are there business models where companies can in fact prosper by doing well and good? The big question we will debate is: how can business do both well and good in their core business? Please read the following article by Porter and come prepared to discuss this exciting question.

Creating Shared Value. In January 2011 Prof. Michael Porter at Harvard published a thought-provoking and highly publicized article in Harvard Business Review titled “Creating Shared Value.” Please read the article and also listen to the video interview.

What is needed for companies to move in this direction? Video interview: Rethinking Capitalism

Let’s apply the idea from Porter’s article to one industry. One of the industries that is under increasing pressure to be more responsible is the food industry, incl. fast-food restaurants like McDonalds.

• Not So Happy Meals!
• McDonald’s Trims Its Happy Meal!

Question for debate: what can McDonalds do to remain equally profitable today and properly address healthy eating? That is, how can McDonalds cerate shared value?

2. Sep. 1st: Doing Well and Doing Good – Different Industry Contexts

We will continue with this topic in different industry contexts.

GreenerPrinter (I School case). Here is a company that is trying to create a viable printing business that is environmentally responsible. Printing is a tough business with low margins, so any added costs from being green will likely doom the company. Do you think they have succeeded in doing well and doing good? Assign them a grade from 5 (best) to 1 (worst). What is their business model that allows them to do this? The case ends with a question–what should they do now? What do you think?

Danone (articles). Danone is one of the leading food companies in the world (their CEO is in the top 100 list of performers). They are also seen as one of the most socially responsible. How have they done this? What do you think of their approach? Assign them a grade from 5 (best) to 1 (worst).

Pick one industry/business/profession you care about. Imagine you had a blank sheet of paper and could design how this business should operate–how it could earn good money AND be socially and environmentally responsible/active. What would their business model look like? (their value proposition to their customer and how they would make money. Hint; if they have to add extra costs to do good, then you have to articulate how they will offset this and whether they would be able to charge higher prices). Please come prepared to talk about your industry.

Readings:

1. The Dannon Company: Marketing and Corporate Social Responsibility
2. Danone: Food, Nutrition, and Health Charter
3. Extract from “Danone Setting the Pace for Health and Growth”, Wageningen University – European Food and Agribusiness Seminar 2007
4. Greenerprinter: Achieving long-term sustainability in the printing industry

3. Sep. 8th: Doing Well and Doing Good – Applications

Assignment to be distributed on Sept. 1st.

In designated teams:

1. Taxonomy: In the team, please list 5 ways companies can create a business model for doing well and doing good in their core business.
2. As a team, you need to think of one very cool company that has done an excellent job in doing well and doing good (e.g., zipcar). You need to do a bit of research on this, and present in 1-3 powerpoint slides to the class what they are doing, how they are making money and how they are doing good.

These readings on business models will provide some insights into what is a business model and what it may mean if the organization is a non-profit.
You don’t need to read these articles in detail; they are meant as a resource for this assignment.

For a business model, the key is customer value proposition and profit formula (e.g., the dark green segment is:  buy authentic green; profit = premium – higher costs > 0). For the non-profit model, the key term is “earned income.”

1. HBR – Should Non_Profits Seek Profit?
2. HBR – Reinventing Your Business Model

4. Sep. 15th: Shared Value – Total Footprints and IT Solutions

In this last session on the topic, we will address to important part of creating a sustainable strategy. First, we will look at IT solutions and specifically at one case, HydroPoint, which has developed a very cool solution for saving water. Then we will look at Reckitt Benckiser, a large UK based company that has developed a total footprint solution.

HydroPoint case (I School case). What is their business model for doing well and doing good? Do you think this will work?

Reckitt Benckiser (RB Carbon Reduction + RB Carbon Disclosure). RB is one of the best-performing companies in the world. They sell household items and cleaning products. How well do you think they have address environmental challenges? See the appendix in the case. Also review the carbon disclosure report and the press release by Reckitt Benckiser. The company has pursued its green agenda on two fronts; reducing the carbon footprint and reducing the toxic ingredients in their products (Most of the case is about their management approach in general; we will draw upon that in the next module so it is a useful read).

• Class Plenary Assignment: What is a taxonomy for business models for doing well and doing good?

Business Models slides

5. Sep. 22nd: Do Well and Good for the Workplace

Module 2. Workplace and Leadership Innovations

6. Sep. 29th: Social Media and the New Workplace

How does social media transform the workplace? Social media is uprooting how organizations are run: from physical to virtual; from hierarchical to horizontal; from internal to external.

Cisco. This company has instituted a number of changes to make it more flat and collaborative, in part using new technologies. Please read the case (esp page 9 onwards). Some questions to consider; – what are the benefits for Cisco in re-organizing this way? – what might be some of the challenges? – what role can social media play in this setup?

Also, please start thinking about the paper for this course. What company and/or topic would you like to write a paper on?

Team assignment on social software (to be handed out).

7. Oct. 6th: The Networked Organization

Oct. 13th: No Class.

8. Oct. 20th: Work/Life Balance.

How does work give people meaning in their lives? How can work and life be balanced? We will discuss some recent workplace innovations in this area.

Consider the two propositions:

1. Social software makes it possible to achieve a better balance (flexibility, multi-tasking, less travel, etc.)
2. Social software makes it more difficult to achieve a balance (work never stops, always on, 7/24/365)

What do you think? Take a position and be prepared to debate in class! (If you say “it depends,” then what does it depend on?).

Here are some blog posts on the work/life balance issue. Please read to familiarize yourself.

• Detach Yourself from Your Work
• Column: Work Pray Love
• Winning Support for Flexible Work

Oct. 27th: No Class.

9. Nov. 3rd: New Leadership Models

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Leadership Discussion (#2 of the above list):

What are the consequences of workplace innovations (including new technology tools) for leadership? How is leading in a modern firm adopting these innovations different from leading in the corporation of 20 years ago? Please read the HBR article, “Are you a Collaborative leader?”

Prepare the following:

1. How is the workplace changing in ways that requires leaders to change their style of leadership?
2. What kind of leader won’t work in companies that adopt the new management paradigm we have been talking about (both doing well/doing good and workplace innovations)?
3. The article outlines 4 factors of collaborative leadership. Have you seen or worked for anyone who had these traits, or had the opposite? How did that feel? Do you have examples of leaders who exhibit any of these four traits?

Images from the previous session: Conditions?, Wonderful, Hell.

10. Nov. 10th: New Leadership Models & Change

We will continue the discussion on new leadership models.

11. Nov. 17th: Summary and Presentations (8:30 am to noon).

12. Dec. 1st: Summary and Presentations.

• Paper presentations
• Sebastian Fuenzalida
• Sebastian Benthall
• Deepak Subramanian
• Kristine Ng
• Naila Khalawi
• Kuldeep Kapade
• Ariel Chait
• Jennifer Wang
• Natalie Cadranel
• Samuel Tokheim
• Course summary (slides)