From Forests to Plastics

Nestle Waters, known for their bottled water brands Perrier, Deer Park, and Poland Springs have a new employee.

Michael Washburn was recently hired as Nestle's director of sustainability. He has spent over 15 years working at non-profits and in academia in conservation roles. He particularly focused on sustainable forestry and land conservation. His new role at Nestle will be to increase recycling rates in the United States as well as lead the innovation of energy use and building design as well as the advocacy of constructive water policies.

He states in the article:

“I’m eager to put my resource management and conservation experience to work for Nestlé Waters, I feel strongly that bottled water brings value to society, and I am looking forward to continued engagement with a wide range of stakeholders around water advocacy, energy use, waste and recycling approaches, such as Extended Producer Responsibility.”


There is a strong correlation between this statement and the external environmental leadership actions of Hill's Model for Team Leadership. It originates with Washburn's initial decision to intervene externally. He knows that in order to succeed with this initiative, he needs to work on helping the organization remove external barriers. He is doing so by using his prior experiences and networks to increase his influence on the external environment. This will (hopefully) lead to an effective performance on the organization's part. 


My question to you is whether or not his appointment to director of sustainability is contradictory to the bottled water industry? If so, and in regards to Hill's Model for Team Leadership, how can he go about making an impact that is aligned with his mission of increasing recycling rates in the United States, leading innovation of energy use and building design as well as advocating the use of constructive water policies?

View the article here.


Posted by: Michael Condupa

Noisy Sustainable Efforts

     I had recently read an article from Envrionmentalleader.com which had a very interesting story.  All of the stories that I have currently been reading have entailed successes in businesses sustainability initiatives.  To the contrary, this article reveals and analyzes a sustainable initiative that a very well known company has introduced but has been heavily criticized.  The company, Frito-Lay, had recently introduced the first 100% compostable chip package.  This package is made out of various polymers and glass particles that are recyclable and compostable.  Although this is a great effort to rid of the wasteful and polluting regular potato chip bags that we are so fond of, people heavily criticized their efforts. 

What Happened

     After Brad Rodgers, Frito-Lay’s North American manager of sustainable packaging, had helped develop and implement the bags, he began to here all sorts of concern (EL Daily).  Sun Chip consumers were reporting that the bags were too noisy.  One may say that this is a ridiculous comment considering that they are potato chip bags. I can’t remember when I quietly ate potato chips, but one is entitled to their opinion.  Rodgers and Frito-Lay decided that they had to fix this “noisy” bag and re-distribute a bag that was both eco-friendly and “quiet” in the mind of the consumers.  In addressing this problem, they created a new bag that was less-noisy but yet ultimately resorted to the old packaging except for their original flavored chip.  They stated that they would use the regular chip in order to save face and allow them to still use their marketing campaign.  Although a lot of consumers reported disgust with the noisy bag, most of the comments on the article are positive and aimed at the need for sustainability efforts, no matter what the noise. From this, we can see that Frito-Lay tried to initially move towards a rapid sustainable effort, while consumers put them back into their seat and made them slow down.

Linking the Concepts

     We can see that Brad Rodgers and Frito-Lay were encouraged to lead a change not only for their industry and business, but for our environment that we live in.  Although their ultimate plan did not pan out exactly the way they had anticipated, they are still considered leaders of sustainability.  Lets face it, they are the first people to introduce a sustainable approach to potato chips, and that my friends is awesome. 

     Although Rodgers and Frito-Lay are leaders of this initiative, I will also say that they have managed the situation that they had found themselves in quite well.  To put this into practice, I would conceptualize this situation in the Functions of Management and Leadership.  In our text, we can see that Frito-Lay and Rodgers both had to lead and manage this introduction of sustainability.  For example, they had to lead the project by establishing a direction.  The direction is clear that they wanted to provide their product by being responsible to the environment.  Thus, this would then entail that they would communicate their vision and goals to the entire organization and then motivate their employees to carry out the initiative.  Though they lead this change, they still had to manage it.  This meant that they had to plan.  This plan was to incorporate the new bag to all of the Sun Chip line.  They then had to organize and set rules and procedures to produce the bags which are explained in the article.  Lastly, they would control the implementation of the bag and effectively solve problems as they arrived.  This is where Frito-Lay stood out.  Because they were able to effectively solve the noisy bag problem, they were able to overcome the criticism of their consumers.  Thus, they generated a creative solution of leaving their main flavor, original, in the 100% compostable bag.  This act is known as a “corrective action.”  Ultimately, I would suggest to model the skills approach to leadership.  After reading the article, it seems like the leaders of Frito-Lay and Sun Chips were able to use their attributes and competencies in order to reach great outcomes of their leadership.  We can see this in their ability to motivate their organization to follow the sustainable approach to potato chip bags.  Then they used their competencies to judge the social need of the bags while also obtaining knowledge and problem-solving skills.  Lastly, they had to use these attributes and competencies to adjust their overall decision in order to effectively solve the problem and reach the desired performance after it had been implemented.  To reference, you can visit the chart on page 44 in our text and relate it to the situation.

To the Reader 

     Since Frito-Lay and Rogers were able to be effective leaders and managers, they were able to save the company’s “face” and also establish a new standard for the industry.  As some may already know, other chip and food producing companies have followed Frito-Lay down the path to a sustainable future.  If you haven’t seen them, look around in the chip isle next time, and you might notice some bags looking like they were made out of construction paper.  Then do us all a favor and buy those chips.  With that being said, do you think that more and more food manufacturers will resort to compostable packaging?  If you read the article, do you think that they made the responsible decision to only case the original chips in this bag, or do you think that they should have followed their original plan?  Ultimately, do you think that Frito-Lay would have been negatively affected had they continued their original plan?   

Let me know what you think.  If you want to read the full article and some of the consumer responses visit: 

http://www.environmentalleader.com/2010/10/04/frito-lay-yanks-sunchips-compostable-bag-to-fix-noise-level/

...Jeffrey Parrish 

Seventh Generation Names New CEO

Seventh Generation, a sustainable household products company, has long been a shining example in the realm of Corporate Social Responsibility and Environmental Sustainability.  Providing safe and natural household products to consumers has provided a great example to the corporate world of how conscientious strategy and manufacturing can have positive impacts on people and the planet, without sacrificing profit.  

John Replogle, who will take over duties as Chief Executive Officer and President of Seventh Generation on March 7th, has exhibited the type of track record that makes him a good candidate to head the company.  His skills and competencies relevant to the position align very compatibly with Mumford's Skills Model of Leadership, and through this lens we can better understand the success he has enjoyed throughout his career.

In terms of individual attributes, Mr. Replogle has demonstrated that he possesses a great deal of crystallized cognitive ability, motivation, and the correct personality to head one of the world's most sustainable companies. Within the referenced article, we see the following description of the types of experiences that have solidified Mr.  Replogle's crystallized cognitive abilities:

"Replogle previously spent three years at Unilever as General Manager, Skin Care, North America. He also served on the company's Operating Executive Committee and Global Category Board. His leadership was marked by successful efforts to improve the division's innovation, re-craft their marketing and build a strong leadership team.

Prior to that, he spent eight years with Diageo, most recently as President of Guinness Bass Import Company and Managing Director of Guinness Great Britain. Earlier, he held several other roles in Marketing, Sales and Strategy with Diageo. Replogle began his career as a consultant with the Boston Consulting Group. Replogle earned an MBA from Harvard, graduating with distinction. He earned his BA from Dartmouth College."

Experiencing such success throughout many different corporate and consulting positions, in Northouse's terms, has led to Mr. Replogle's, "ideas and mental abilities learned through experience." These career experiences definitely outline Mumford's perception of the development between individual attributes and competencies, by showing the direct relationship between these attributes and such other competencies displayed by Mr. Replogle as problem-solving skills and general industry knowledge.

In addition to this ability, Mr. Replogle demonstrates repeatedly the motivation that has led to these achievements.  In the article, he is described as an active proponent of education and a humanitarian.  These motivating factors for Mr. Replogle have directly led to his seeking out of companies that make considerable sustainability efforts; and within such a growing industry and environment, he has experienced many favorable outcomes in a relatively short period of time.

Mr. Replogle's record of high performance within his widely-ranging career experiences speaks directly to the development of attributes into competencies and eventually into favorable outcomes shown to us by Mumford's Skills Model of Leadership.  His motivation and experience-based abilities have provided him with a great deal of knowledge and problem-solving skills within the issues of CSR and sustainability.  As he begins his journey at Seventh Generation, Mr. Replogle's attributes and consequent competencies will undoubtedly carry him to successful performance outcomes and yet again to a position of high-regard to those of us in the business of sustainability and responsibility.

-Kyle Hines

More information on the appointment of Mr. Replogle to CEO and President of Seventh Generation can be found at: http://www.csrwire.com/press_releases/31571-Seventh-Generation-Names-John-Replogle-to-Serve-as-CEO-and-President

Will Sustainability Efforts Continue?

          To mix it up a bit after talking about sustainable approaches of different businesses, I would like to analyze an article that I had recently found in Business Week called, "Investors Don't Care about Sustainability."  The article demonstrates a study that Business Week has completed in the past, but are now going back to, to reveal the changing of times.  The study that they had been conducting included talking to 50 CEO's around the world in order to extensively interview them on their thoughts of the "new era" of sustainability.  Along with the 50 interviews, they were able to receive 766 online questionnaires from other CEO's and company bosses.
            After reading further into the article, I began to think to myself if sustainability efforts would be thrown away by companies who were not receiving support from their primary investors.  In the article, it states that only 22% of the "company leaders" believe that investors will have an effect on their future sustainability efforts, but to me, 22% is a lot of businesses that may be effected in the future.  I guess what I am trying to get at is, if businesses allow their investors to cause a detriment to their sustainable efforts, will the rest of the businesses not see it as important anymore?  What do you think?  Since investors are a key stakeholder in any type of company, do you believe that the company might simply ignore all efforts towards sustainability if their investors don't care about it?
            To add from the study, 93% of those interviewed believed that sustainability efforts will be important to the future success of their company.  Having said this, I still believe that the influences that investors have on companies may cause them to stray away from sustainable efforts if they are not supported in the act.  Basically, top company bosses are seeing the lack of investor interest as a barrier for further investment by the investors.  This could ultimately cause a great deal of stress and misdirection for companies as to what they are to do for future success. 
           From our text, we can assume that the leaders of these companies will have to motivate these investors if they are concerned with their leadership outcomes.  Of these outcomes, they will have to effectively solve this problem of non-interested investors, and ultimately sustain their performance while doing so.  For this, I am basing the leaders of these companies off of the skills model of leadership, and thus, will have to put their skills to the test if they want to overcome this discrepancy.  To add, the investor's attitudes would be relating to the career experiences that will effect the leaders ability to reach their specific outcomes, and possibly alter the way the lead in years to come.
      If the different CEO's are suppose to persuade these investors that sustainability efforts will benefit the company, they will have to use their ability to exercise their different powers.  According to our text, there are five bases of power.  One could assume that a CEO of a company would obtain all five of these powers in order to be the leader that he or she has become today.  For this situation, the leaders will have to express their powers to the investors in order to help motivate them.  For example, the CEO should demonstrate their power for rewards meaning that they should share the ability to reward the investors for their support in the sustainable acts.  Ultimately, the various CEO's, if not supported by their investors, will have to use their powers effectively in order to lead the change towards sustainability.
          Should they pick up new investors, reach a common ground, or simply push sustainability efforts aside?  To conclude, it is obvious that every company is a bit different and so are investors, but soon enough, companies will have to decide what to do and lead a change in order to capitalize on this disappointment.  What do you think might happen in the next few years if a great deal of investors are against sustainable efforts?

To view the full article from Business Week, written by Peter Lacy, visit:
 http://www.businessweek.com/managing/content/nov2010/ca2010118_925615.htm


        -Jeff Parrish

Sahara Supplies Surge

My first post is on an article I found in Businessweek magazine online entitled "Sahara Solar Energy Could Power Europe Inc."  by Carol Matlack,I have posted the link above.  The article states that the Sahara desert receives twice as much sunshine as Europe (Matlack).  Due to increasing pressures worldwide to commit to green initiatives and the European Union’s commitment to increase their renewable energy consumption, European countries have put in motion a project to use the solar power generated in the Sahara to power the European continent. They plan to use underwater powerlines that will stretch accross the Mediteranean Sea.  According to the article over 31 large companies have invested in the project so far and many companies are vying for the construction contracts, including U.S. companies.  The article goes into detail to describe the enormous size of the project saying it will, "be equal to 400 Solonas", North America's largest solar power plant (Matlack).  While this all sounds fantastic there are some problems. The article states that there are some difficulties with so many parties involved as well as getting all the finances in order (Matlack). 

I think that this initiative is a bold step in the right direction.  For much too long we as a planet have squandered nonrenewable resources such as coal and natural gas. Even though “Going Green” has caught on we have seen few efforts that as proactive as the one described in this article.  I think that this article effectively ties into what we have been talking about in class in regards to chapter two and Katz’s three skill approach.  The creators of the this initiative displayed great use of  conceptual skill to envision such unique solution to utilizing renewable energy to supplement Europe’s energy consumption.  However, their major flaws lied in their technical and human skill as they have not been as successful in collaborating with all the major entities in the project as well as finding adequate funding.

-Sean Morton

http://www.businessweek.com/magazine/content/10_38/b4195012469892.htm?chan=innovation_design+index+page_green+design

Crafting Ethics at Harvard

We know Harvard as one of the most elite business schools in the world. We have analyzed their case studies, read their business reviews, and seen what their students are capable of doing (enter Mark Zuckerberg). Though Harvard is considered to be one of the best educational institutions in the world, their reputation was damaged following the financial crisis of 2008.

Ethics was the subject at hand and something had to give. Harvard's response? A change of curriculum to their M.B.A. program to focus more on ethics and teamwork.

Nitin Nohria, Dean at Harvard University as of July 2010, began researching the curriculum face-lift in 2008 and just announced last week they will be making the much needed changes that will require an extra course at the beginning and end of their first year. Also required will be a three week internship during January. Nohria exhibits the perspective taking social judgement skill that is outlined by Mumford's Skills Model. He is looking at the school from the perspective of those who are blaming institutions, like Harvard, for producing business leaders who lack trust. They see the school as a means of making connections and building credentials, whereas he wants it to provide students with character and competence.

The additional courses will be a break from the typical class of 90 students sitting and discussing a case study. Instead, they will be working in smaller groups and focusing on ethical issues in the business world. This is a meant to expose students to material that will challenge their personal accountability. It will require them to take responsibility for their actions and look outside of the profit margin.

As much as I agree that schools such as Harvard are a large reason for why we are in a financial crisis, I think this is a step in the right direction. They are learning from their mistakes and making an effort to better our society. Though it may not be the most proactive approach, at least they are owning up to their shortcomings and striving towards being more socially responsible in educating their students.

I wonder, however, why it is that it has taken this long for Harvard to realize that ethics and teamwork are a core part of today's business world? Look towards ISU as a reference point. Has it not been part of our curriculum to discuss and write about ethics in almost each of our business courses? We also have a class completely dedicated to teams. To top it off, the MQM 385 course is centered around corporate social responsibility. Perhaps Harvard isn't as elite and innovative as it used to be.

So what is your take? Do you feel this will have an impact on business in 5, 10, or 20 years? Do you think that this change in curriculum is worth the effort?

To read the full article, visit here.

Post By: Michael Condupa