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The Bottom Line is Green
by Kay Randall
Once upon a time, long ago, people who cared about the environment and sustainable resources were called "tree huggers," and the term "green business" was an oxymoron.
Times have changed. One need look no further than the courses and activities at top business schools to see that corporate America, increasingly, is adding the promotion of healthy social conditions and community welfare to its bottom line.
The ranks of organizations like Net Impact, a national network of businesspeople who want to leverage corporate power to create a better world, are swelling on college campuses. Corporate scandals and environmental crises have prompted students to re-examine what it takes to be responsible members of the business community and use business as a vehicle for solutions to global social issues.
Net Impact
The McCombs School of Business hosted more than 1,000 MBAs and business leaders from around the world for the 2003 Net Impact National Conference in early November to discuss the challenges and future of corporate social responsibility. A glance at the conference agenda and invitees will re-educate anyone who still thinks that Birkenstock-clad soy lovers are the only face of the green movement.
The conference (which had not yet occurred as this magazine went to print) included a keynote address by Reginald Van Lee, senior vice president at Booz Allen Hamilton and leader of the Harlem Small Business Initiative, as well as panels moderated by representatives from business giants like Hewlett Packard, Intel, Reliant Energy, and Procter & Gamble.
“It’s not just about going out and being an activist,” says Dr. David Spence, a professor of business law and regulation. Spence also serves as faculty adviser for the McCombs School chapter of Net Impact. “Students can go to well-established companies and work in environmental management or environmental compliance, and the number of jobs that relates to renewable and alternative energy is certainly growing.”
Making a Conscious Choice
Membership in student organizations such as Net Impact has exploded over the past few years because students are happily finding that their principles often can mesh well with jobs in the business world. The demands of sophisticated consumers, changing regulations, and high-profile business scandals have led many companies to revamp their operations, adding jobs and products that address environmental health issues and global social concerns.
What’s good for the planet’s health is turning out to be good for profits as well. Consequently, these market forces are creating corporate niches for green MBAs who have an education in social entrepreneurship, public policy, and environmental protection.
Take Mike Newman, for instance. Newman, who has an MBA from the University of Michigan and is a member of Net Impact, obtained a position as Product Line Development Manager for ReCellular, Inc., a company that finds new uses for thousands of old phones every month. Sara Olsen, also a Net Impact member, has used her MBA from Berkeley to start Social Venture Technology, a San Francisco consulting firm that mentors CEOS who want to “clean up” their businesses and have a positive impact on the environment and society. And Richard Amato, a McCombs School alumnus, is the director for UT’s Clean Energy Incubator, a program that provides early-stage, energy-related companies with the support they need to survive.
“I don’t think there’s a specific ‘type’ of student who’s focusing on socially responsible corporate behavior and an education in that,” says Lee Zarnikau, coordinator for sustainable development at ConocoPhillips, McCombs School alumna, and Net Impact member. “When you talk about sustainability in the business context, for example, you’re not talking about something outside of business, something that’s a luxury to know. It’s just a necessary part of business now, and part of doing well and remaining viable is paying close attention to that.”
Courses Develop Responsible Citizens
For students interested in coursework that focuses on socially responsible business practices, the McCombs School offers an outstanding level of support and opportunities for networking.
“Over the past two or three years the school has taken major steps to become a leader in business ethics and socially responsible business practices,” says Steve Salbu, associate dean for graduate programs, director of the McCombs School Business Ethics Program, and faculty adviser to the local chapter of Net Impact. “For instance, we’ve developed the McCombs Business Ethics Program, which brings in nationally and internationally renowned guest speakers. That program now has an endowment, thanks to the generosity of numerous alumni, friends, and supporters who understand that ethics is a central part of good business.”
Salbu also points to the MBA interdisciplinary specialization in
social enterprise as an example of the school’s drive to satisfy
students who want to solve social and environmental problems while
working in a business setting. Career options for MBAs choosing this
specialization range from employment in a company’s environmental
management area to positions in
corporate compliance offices or community relations management.
With many of the solutions to environmental and social problems arriving via smaller, entrepreneurial companies, it is crucial that students familiarize themselves with small business operations. Nonprofits offer an excellent study ground for future entrepreneurs.
A course called the Community Development Practicum gives graduate students a chance to work as consultants for local nonprofits, drawing on sound business skills to solve their unique problems. In helping their clients, the students refine their communication skills, cultivate relationships with community leaders, and learn valuable lessons that can be translated to any business setting.
“I have serious-minded MBAs in this class, and even if they end up at large corporations, they’re going to be able to draw upon what they absorb from interaction with the nonprofits,” says Eugene Sepulveda, a marketing lecturer who teaches the practicum. “They learn how to operate in an environment of scarcity and to maximize resources, and they learn a tremendous amount about being good managers by seeing how the nonprofits motivate, train, and keep volunteers.”
Similar in purpose to the Community Development Practicum but different in structure, the McCombs School’s Plus Program includes a Community Development and Social Enterprise Academy that takes MBAs out of the classroom and into the nonprofit sector.
The innovative Plus Program divides each semester of an MBA’s two
years into two six-week modules, with a two-week period in between
that allows students to leave the classroom and immerse themselves
in a professional development opportunity, with topics running the
gamut from business ethics to global entrepreneurship and energy
finance.
During this two-week hiatus from regular coursework, the Plus Community Development and Social Enterprise Academy sends students into the community to learn how nonprofits both resemble and differ from private sector businesses. They develop project ideas that can turn assets into revenue streams, evaluate markets for the proposed goods or services, identify the financial impact of the concept, and work with community social entrepreneurs to investigate the viability of their solutions.
And the McCombs School isn’t the only place business students can plug into non- profit management experiences on campus. The LBJ School of Public Affairs recently implemented a program through which graduate students can study the philanthropic sector. MBAs accepted into the program complete 12 credit hours of approved courses and 40 hours of volunteer work, and present a scholarly research paper on a relevant topic.
“Businesses are more engaged in local communities than ever before,” says Moira Foreman, program coordinator for the LBJ program. “It’s extremely likely that someone could have a job in a large company that involves work with nonprofits, so it’s important to know their operating styles and service needs.”
From serving on a nonprofit’s board to following an entrepreneurial urge and creating an environment-friendly business of one’s own, the field is wide open for MBAs eager to change the future by taking their beliefs to the business arena.
Seth Goldman, chief executive officer of Honest Tea and a keynote speaker at the Net Impact conference, is happy to witness this change in the corporate climate and the enthusiasm that a new breed of MBAs brings to their mission.
“Students who want to be good stewards of the environment and society can be entrepreneurs, work at nonprofits or go to very large corporations and be the instigators of change for the better,” says Goldman. “Consumers and investors are demanding a new way of doing business, and these graduates are going to be out there to answer the call.”
For information on specific programs at the McCombs School, consult our contacts page. For media information, contact the Communications Director by phone at 512-471-3314 or by email at CommunicationsDirector@mccombs.utexas.edu.
