Katie Wolfe

May 29, 2007

Profit and Planet

Prof. Marx

 

Profit and Planet

 

 

Plans to utilize alternate energy, reduce waste and decrease greenhouse gas emissions are being implemented in businesses across the globe.   Companies are employing metrics in addition to profit to gauge success.  Impact on people and planet are now being considered as well as the bottom line.   The way businesses function is changing dramatically, and because of this Cal Poly Business students need to graduate prepared to manage, own and operate environment-friendly businesses.  Companies like Wal-Mart, Patagonia and Shell lead the corporate revolution to turn green.  The College of Business at Cal Poly is doing students a great disservice by not encouraging sustainable business practices.  In order to maximize the potential of each student, employee and enterprise, the College of Business must implement sustainable teaching programs, address the passivity of instructors and stress the importance of responsibility in business practices. 

In 2004 the President of Cal Poly, Warren Baker, signed the Talliores declaration along with over 300 other University presidents.  By signing this document, Cal Poly as a whole acknowledged the importance of teaching and practicing sustainable resource use and environmental protection.[1]  But, since this signing, only one building has been equipped with solar panels, and only a few General Education classes have been devoted to sustainable teaching.  The College of Business only has two classes that address sustainable business practices.  Currently, the College of Business at Cal Poly is reluctant to join the conversation about sustainability.  Dr. Lancaster, business professor and sustainability advocate, stresses that business students have the Òopportunity and right to make a difference.Ó  When asked how the College of Business could participate in becoming environment-friendly, she answers that every core business class needs to address sustainability from their individual standpoint.  Students would thereby get the benefit of learning how to market, account, finance and sell to the rapidly transforming world.    

However, Dr. Lancaster expresses her concern that introducing certain classes geared towards sustainable teaching would encounter resistance for two main reasons. One, passivity from professors and the administration, who remain skeptical about the linkage between CO2 emissions and global warming.  Furthermore, conducting individual investigation into human impacts on the environment is difficult and time consuming. The second reason the College of Business lags in the area of sustainability is lack of interest. Some administrators, professors and students do not feel it is the job of business to address this problem.  The attitude that only engineers and architects should be concerned with the environment lingers with some people. 

Professors and administrators at Cal Poly should recognize that, regardless of their personal beliefs concerning global warming, they work for an institution with a mission statement that affirms ÒCal Poly valuesÉ social and environmental responsibility.Ó[2]  Passivity in this area just wastes time - time that most sustainability experts agree we do not have.  The other obstacle the college of business will have to overcome in order to implement sustainable teaching is opposition from non-believers that business and a healthy environment can in fact complement one another.  Certain people refuse to grasp the notion that improving profit, people and planet are all possible at the same time.  Ford Motor Company serves as a perfect example that sometimes profit is contingent on aligning business, planet and humanity. Ford Motor Company, according to Daniel Estey, the author of Turning Green into Gold, is at risk of Òbecoming the first environment related bankruptcyÓ[3] because of the gas-guzzling cars that they produce.  The market no longer favors the damaging gas consumption of these cars and now Ford may be filing bankruptcy.  To claim that business and sustainability oppose one another is to ignore clear evidence of the contrary.

The traditional notion that enterprises can not be profitable and better the world at the same time has been weakened by certain business ventures.  Mohammad Yunus, the developer of Micro finance and the Grameen Bank exemplify the success a company can have when catering to the poor. Mohammad articulates the goal of Micro finance by stating that his enterprise was ÒCreated with a declared mission to maximize benefits to the people served, without incurring losses.Ó[4] By offering minute loans of money to people that had no collateral to offer, his enterprise flourished in a place and among people that other businesses never considered a viable market. With a 95% payback rate, the Grameen bank not only profited, but also offered hundreds of people a chance to build a new way of life.[5]

            This risky business venture led the pack in a race that may change the way of business forever.  There are now 7,000 Òmicro-lendersÓ with over 25 million poor clients.  Mohammed Yunus expresses his belief that his success cannot be counted in dollar bills but rather in Ò[proving] beyond a reasonable doubt that poor people are bankable.Ó[6] Yunus and his enterprise serve as proof that a company does not have to focus primarily on a profitable bottom line in order to achieve one.  His idea not only earned him the Nobel Peace Prize, but also encouraged companies to engage in business with the 4.1 billion poor people of the world. Environmental responsibility and social justice, an inseparable pair, together form the goal of business for the future. 

            Only sustainable businesses will survive in a world of diminishing resources and growing populations.  Where businesses used to be faced with choices like economy or environment, profit or planet, corporation or kindness – businesses now must refrain from choosing and instead combine all of these together.  Cal Poly boasts the value of Òlearning by doingÓ and this motto should hold true for every college on campus.  The global conversation about sustainability is louder than ever and college students now are the business owners tomorrow.  Cal Poly business students cannot be left behind.  

 

 

 



[1] http://www.cla.calpoly.edu/~smarx/April232004/InfosheetApril23-4.htm

 

[2] Cal Poly Academic Records. 24 May 2007 <http://www.academicprograms.calpoly.edu/whatsnew/mission.html>.

 

[3] "Turning Green into Gold." Market Place. 29 Jan 2007. 23 May 2007 <http://marketplace.publicradio.org/shows/2007/01/29/AM200701291.html>.

 

[4] "Commun Press Release - 2005." Groupe Danone. 16 Mar 2006. 25 May 2007 <http://www.danone.com/wps/portal/jump/DanoneCorporateIntl.Press.Commun2004PressReleases?ref=CMS.DanoneCorporateIntl.Press.2006PressReleases.Trimestre1.CP_160306>.

 

[5] www.grameen.org

 

[6] Pearl, Daniel. "Grameen Bank, Which Pioneered Loans." The Wall Street Journal Online. 02 Feb 2002. 24 May 2007 < http://online.wsj.com/public/resources/documents/pearl112701.htm >.

 

 

 

 

 

 

 

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