Business in Society (CI05300)

General information

Type:	OB	Curs:	1	Period:	S semester
ECTS Credits:	4 ECTS

Teaching Staff:

Group	Teacher	Department	Language
Sec: A	Marc Vilanova Pichot	Ciencias Sociales	ENG
Sec: A	Sira Abenoza González	Ciencias Sociales	ENG

Group	Teacher	Department	Language
Sec: B	Sira Abenoza González	Ciencias Sociales	ENG
Sec: B	Marc Vilanova Pichot	Ciencias Sociales	ENG

No pre-requisites

The distribution of the workload will be similar to the evaluation system. We expect participants to dedicate almost in equal parts their time to (a) prepare each session and actively contribute to the dialogue to discuss the issues; (b) produce weekly reflections on readings as well as more philosophical questions; (c) prepare the final project presentation; and (d) produce the final paper. It is important to note that contribution to teamwork is expected and will be evaluated

The goal of this course is to train participants on how business in society issues will play a relevant role in their future job responsibilities, as well as to identify ways in which they can turn these challenges into opportunities. Our departing assumption is that learning to effectively manage business in society issues can produce positive results for the executive as well as for the company. Thus, the central objective of this course is to present students with tools to understand and manage social and environmental issues produced by business activities, and to turn these issues into competitiveness factors for the company through the development of innovative solutions.

Different companies use different names and acronyms to refer to the management of these issues, such as sustainability, compliance, corporate citizenship, corporate social responsibility or social impact, to name but a few. We do not care about the terminology used, we care about the ideas behind all of these terms: the duties and responsibilities companies have to address social and environmental issues generated as a direct result of their activities, which in classic economic theory are often considered externalities, but which modern management and economic models integrate into strategic and competitiveness models. In this regard, it should be clear from the start that for the purpose of this course all these terms are synonymous, all of them referring to the management of social and environmental issues.

This course is not designed to train people on how to become sustainability or CSR managers, but rather to understand what are some of the central issues in sustainability and CSR, what sort of challenges and opportunities they present, and how these issues are relevant to different companies, departments and business units. In this regard, the course will focus on issues such as:


- Business ethics: we will look at issues such as corporate identity, company values, codes of conduct, codes of ethics, enforcement, etc.
- Issue mapping: we will look at how we can identify central social and environmental issues, some of which will be common to all companies, while others will be company specific.
- Stakeholder engagement: we will look at how companies can map their stakeholders and design strategies to engage them to further their business strategy.
- Social and environmental innovation: we will look at how social and environmental issues can be sources of innovation that generate value for the company as well as society.
- Tools and initiatives: we will look at what we refer to as the emerging business in society infrastructure, which is formed by different international tools and initiatives that aim to assist companies that wish to mange social and environmental issues strategically
- Strategic CSR: we will look at how concepts such as Shared Value (Porter & Kramer), Blended Value (Emerson), Responsible Competitiveness (Zadeck), or Bottom of the Pyramid (Prahalad and Hart) are proposing a strategic approach to social and environmental issues from a management perspective
- Social entrepreneurship/intrapreneurship: we will look at how more often than not business in society issues are lead by entrepreneurs and intrapreneurs. We will look at the characteristics of these intrapreneurs, the sort of competencies they require and how they often become change agents that transform entire organizations from within
- Metrics: we will discuss the complexity of developing metrics and indicators to manage social and environmental issues
- Implementing responsible competitiveness strategies: our final goal will be to look at how we could conceivably integrate social and environmental issues in a given business model, embedding it in strategic thinking and turning these issues into a competitive advantage.

Therefore, in this course we will look at all these different issues from a general management perspective, but we will not go deeply into technical development of any of these solutions. In other words, given our time constraints our aim will be to acquire a general overview so that we may understand the different topics and issues relevant to this field. Thus, our goal will NOT be to learn how to develop a detailed technical solution in any of the particular areas described above, but rather to equip students with a general understanding so that as future managers they know what the relevant issues are, they are acquainted with the types of tools and best practices in use, and they can therefore interpret and integrate potential social and environmental challenges into their management practices.

1. The responsibility of business in society We will dedicate the first part of this session to discuss the course, the methodology and contents. The second part of this session will be dedicated to introducing the concept of business in society as a management issue, through a review of current situation of this issue in management. We will start in that sense the debate Business vs. Society. The goal here will not be to come to any sort of consensus or definition, but simply to understand the complexity and relevance of the issue. We will finish this session with a discussion on a specific case study.

2. Ethical framework: the influence of the context In this session we will introduce the concept of ethics and we will exploire whether and how it is relevant for business. The session will focus on reflecting on the systemic and cultural nature of some of the ethical challenges practitioners face.

3. Ethics and standards of professional conduct In this session we will discuss the ethical frameworks we can use to face dilemmas and make decisions, and we will focus on the issue of human rights as a case in point of a global issue that produces ethical tensions and how it can be managed

4. The stakeholder view of the corporation In this session we will discuss the shift companies have undergone from focusing solely on agency theory and the shareholder as the sole and main stakeholder of the corporation, to stakeholder theory, and the objective of generating value for all stakeholders. In this session we will look at who are the stakeholders of the company and how we can define and execute stakeholder engagement strategies

5. Innovation and social innovation In this session we will look at the issue of innovation and how it may be different from the issue of social innovation. We will look at some examples from Nudge, as well as some classic examples to debate what social innovation is and how can a company foster and manage social innovation. Finally, we will explore whether there is a positive correlation between business in society and innovation, and if so how it unfolds.

6. Sustainability in developing markets In this session we will look at how companies are targeting business in developing markets and how business in these markets often require new approaches not used in more developed markets such as Europe of the U.S.A. We will also look at how companies are looking and contributing to solve some of the most important problems in these markets such as poverty, healthcare or equality. We will look at examples from BoP, frugal and reverse innovation.

7. Social entrepreneurship & intrapreneurship In this session we will look at how many of these business in society issues emerge from social entrepreneurs and corporate intrapreneurs. We will explore some examples, analyzing the skills and competencies needed. We will discuss if there are some requirements in terms of corporate culture and conditions to allow entrepreneurial initiatives to thrive, and whether companies can adopt policies to foster this sort of behavior. Finally we will look at a case study to discuss all these issues in detail

8. Straegic sustainability and shared value In this session we will aim to put together many of the ideas discussed in the previous sessions by discussing the idea of strategically integrating all these different issues into a coherent business strategy embedded in the business model. We will look in particular at the recent article from Porter and Kramer on shared value as a specific proposal in this direction. In this regard we will look at some examples of interesting products, services and companies, trying to develop some criteria or understanding about how we can identify shared value in practice.

9. The future of management and the role of sustainability In this session we will discuss whether there is a paradigm shift in management that puts into question the very bases and premises on which many business ideas are constructed. We will look at examples and discuss what this means in terms of the skills and competences we need as managers.

10. Final projects In this session the students will present in groups their final projects, which they will have developed throughout the course. The objective will be to present innovative projects tailored to a specific company.

Business in society issues are very strongly affected by contextual issues such as cultural, social and economic conditions, geography and timing. In this regard, one of the most challenging parts of developing a business in society strategy is to define what the central issues are for a given organization. This means that each of us has to develop its own definition and issue map based on its context, values, identity, beliefs, and goals. In this scenario, the key methodologies we will use in this course are dialogue and introspection. In other words, we must come up with our personal definition of what business in society is, as well as a list of key issues that we will need to address as future managers through debating with others around us on these topics and exploring within ourselves.

Therefore, the workload for this course will include individual work, team work, and plenary work. The central driver around which the course is designed is participation, meaning participating in class discussions, working with the group and contributing to the class through the individual work. Our goal is threefold: (1) to foster an atmosphere of openness and dialogue; (2) to challenge participants to give the best of themselves; and (3) to look at issues from different angles and perspectives. Regarding this last point, the course will be taught by two instructors, each of which will take the stand of either business or society in any given issue. Students will also be asked to take stance of either business or society (not by choice, but alternatively) to force putting ourselves in the other's shoes.

In terms of workload, this means that throughout the course students will have to fulfil the following tasks:

- In groups:
o Prepare the final project, which will be a sustainable innovation project for a given organization.
o Write and present a report on the project
- Individually:
o Read an article, case or develop an exercise each week, which will be the basis for the plenary discussion during class
o Write every week a thread online on the reading
o Some weeks you will also be asked to submit online your thoughts on a more philosophical question
o Participate actively in class discussion

In terms of class structure, we want to be open and flexible to change things as we move along. That is, we want students to be able to participate not only in fulfilling the class requirements, but also in improving the course itself. Therefore we will be open to add or eliminate sections, go deeper into topics, look at materials recommended by students, or discuss any other suggestion that aims to make business in society a better course. However, in order to guide the course we have devised a class structure to establish a weekly pattern (except for the first and last sessions. In the first session we will have an in-depth introduction to the course, and in the last session we will have the final project presentations):

1. Lecture from professor
2. Viewing short video or other materials and class discussion
3. Break
4. Case study, exercise or guest speaker
5. Takeaways and debriefing

ASSESSMENT BREAKDOWN

The course includes some required and optional readings, which will be detailed in the course syllabus and website, but which will include some of the following:

Milton Friedman (1970): "The Social Responsibility of Business is to increase its profits", New York Times, pp. 87-91.

Handy, Ch. (2002). "What's a business for??. Harvard Business Review.

A Day at a Big Bank, 2008, Le Menestrel, M. and Rode, J. Universitat Pompeu Fabra

Pruzan, P (2001). "Corporate Reputation: Image and Identity.? Corporate Reputation Review, Vol. 4, 1, pp. 50-64

Punithavathi, J., and Vasanthi, V. (2009). Costco's Employee Loyalty Strategies Ref. 408-044-1

Responsible Investing: A Paradigm Shift, From Niche to Mainstream. Robeco and Booz & Company (2007)

Nidumolu, R. Prahalad, C.K. and _Rangaswami, M.R. (2009) Why Sustainability is Now the Key Driver of Innovation. Harvard Business Review

IKEA's Global Sourcing Challenge: Indian Rugs and Child Labor (A). Bartleet, Dessain and Sjoman. Harvard Business School (2006)

Wal-Mart's Sustainable Strategy. Reference OIT-71. Plambeck, E., and Denend, L. Standford Graduacte Schools of Business (2007)

Prahalad, C.K. & Hammond A. (2002). "Serving the world's poor, profitably?. Harvard Business Review. 80(9):48-58

Karnani, A.G. (2007). "The Mirage of Marketing to the Bottom of the Pyramid:how the private sector can help alleviate poverty?. California Management Review 49(4):90-111

Prahalad, C.K. (2007). Letter of response to A.Karnani

Thaler, R. & Sunstein C. (2008). Nudge: Improving Decisions About Health, Wealth, and Happiness. Penguin Group USA. Chapters 3 &16

Austin R., Wareham J., and Busquets J. (2008). Specialisterne: Sense & Details. Harvard business School

The social Intrapreneur: A Field Guide for Corporate Changemakers, SustainAbility. 2008. Pages 8-26.

Article: Nidumolu, R., Ellison, J., Whalen, J., and Billman, E. (2014). The Collaboration Imperative. Harvard Business Review


Creating Shared Value. Porter, M., and Kramer, M. Harvard Business Review (2011)

Crane, A.; Palazzo, G.; Spence, L.; and Matten, D. 2014. Contesting the Value of "Creating Shared Value?. California Management Review. Vol. 56 (2). Pg 130-153

The Business of Sustainability: Imperatives, Advantages, and Actions (2009). Boston Consulting Group in collaboration with MIT Sloan Management Review

Ian Davis for The Economist: "The biggest contract" (2005)

Daniel Franklin for the Economist: "Just good Business? (2008)

Group	Teacher	Department
Sec: A	Marc Vilanova Pichot	Ciencias Sociales
Sec: A	Sira Abenoza González	Ciencias Sociales

Group	Teacher	Department
Sec: B	Sira Abenoza González	Ciencias Sociales
Sec: B	Marc Vilanova Pichot	Ciencias Sociales