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Sustainable Business Models (CI05310)

General information

Type:

OP

Curs:

1

Period:

S semester

ECTS Credits:

3 ECTS

Teaching Staff:

Group Teacher Department Language
David Murillo Bonvehí Ciencias Sociales ENG

Prerequisites

Beware: This is a blended course led by professors by three leading business schools in Europe: NHH, CBS and Esade. Attendance to all sessions in this intensive week format is mandatory.

Introduction:

Nowadays, we are facing a sustainability problem of massive proportions, and research indicates that we need to prepare for significant climate changes, even if we deploy effective measures of climate mitigation. Overconsumption and population growth entail considerable depletion of resource bases for society and the economy. Planetary and societal boundaries are thus being stretched to such an extent that it affects the life quality of individuals, the resource base of companies and the stability of society. In this context, companies contribute to creating the sustainability problem and must be part of solving it. «Business as usual» is no longer viable and radical changes are needed in the economic system. This transformation will thus require the development and adoption of fundamentally different and sustainable business models, which will need to be adapted to the contemporary societal and environmental challenges. On the one hand, this entails designing business models that reduce the negative impact on society and the environment, i.e. business models that lead to a reduction of the negative externalities of business. On the other hand, it entails designing business models that are tailored to mitigate or solve those same problems, i.e. business models that lead to an increase in the positive externalities of business. However, achieving the goal of a truly sustainable future for business is no simple feat, and it includes the following challenges:
(1) properly assessing the sustainability-related problems companies can and should address,
(2) designing business models that are capable of reducing the negative externalities and increasing the positive externalities that relate to those social and environmental problems,
(3) adapting those business models to planetary and societal boundaries by means of innovative operations that make such business models sustainable,
(4) developing capabilities for continued and sustained social and environmental innovation, and
(5) aligning sustainability performance and financial performance by integrating this in the strategy and operations of companies
The course is framed within a European research project called Erasmus +. It consists of three universities (ESADE, and two Scandinavian universities: Norwegian School of Economics and Copenhagen Business School). Due to the rich and diverse but also complementary character of the course attending to the different backgrounds of the professors, students will be able to know different realities coming from different cultural, societal and business frameworks.

Previous Knowledge

This course should be of value to those participants who:

? want to pursue a career in the context of sustainable business models
? would like to understand how sustainable business models can help business to improve qualitatively.
? are currently working/managing a company and need tools to plan business alternatives.
? are interested in analyzing successful cases in which sustainability is a key point.
? Want to know cases coming from different social and cultural origins.
? are aware of the issues that this course examines but need to deepen or broaden their understanding of these issues.

Course Learning Objectives

o Acquire knowledge about central aspects of sustainability and be able to identify key challenges within a given sector or business entity
o Provide the proper knowledge for developing sustainable business models as well as aligning financial and sustainability performance.
o Develop a framework in which students will be able to provide innovative solutions to societal and environmental problems.
o Encourage and stimulate awareness in new trends and social and environmental challenges in the business environment.
o Discuss real cases studies where sustainability has been applied successfully.

CONTENT

1. Session 1: The Problem of Sustainability in Business. (Day 1)

Faculty: Lars Jacob Tynes Pedersen / David Murillo / Esben Rahbek Gjerdrum

The purpose of this module is to familiarize you with the nature and characteristics of the sustainability problem and what it means for companies and other organizations. The module illuminates the challenge of aligning sustainability and profitability. We introduce the distinction between business models oriented towards addressing the company¿s own externalities and business models oriented towards addressing those of others. We discuss the potential trade-offs between sustainability and profitability and perspectives on how these two goals can be aligned.

The module consists of six videos, which together shed light on the problem of sustainability, the role of companies and other organization both in creating and solving the sustainability problem.

2. Session 2. An Introduction to Sustainable Business Models.

Faculty: Lars Jacob Tynes Pedersen / Sveinung Jørgensen

This part of the course introduces the business model framework, the three components of business models, and the manifold ways in which they can be innovated. This part of the course emphasizes the practical nature of the business model concept, in the sense that it relates to the concrete questions managers need to address in the design and innovation of a business model. This is related to the offering to customers (value proposition), the configuration of resources, activities and partners needed to deliver the offering (value delivery), and the choices related to revenue streams, payment models and cost structures that allow the company to make a profit (value capture).
The module consists of six videos that introduces the issues described above.

3. Session 3. Sustainable Business Model Innovation.

Faculty: Lars Jacob Tynes Pedersen / Sveinung Jørgensen

The purpose of this session is to discuss how sustainable business models can be designed and innovated in practice, and what are key components and characteristics that are important in the design of such business models. We will also discuss characteristics of companies that are successful in aligning sustainability and profitability, and different prototypes of such business models. Furthermore, this part of the course introduces the concept and perspectives of the circular economy, as a contrast to traditional, linear models of business. Implications for collaborative business models and for product and service design, as well as for business model design and innovation in general, are discussed.
The module consists of six videos that introduces the issues described above.

4. Session 4. Social Innovation.

Faculty: David Murillo

¿ Chapter 1: What is Social Innovation
o This chapter will introduce the key concept in this section: Social Innovation. This is a broad concept that has been increasingly used by different disciplines, in different ways, these last years. However, the multiplicity of definitions and the vagueness of its boundaries can be, at times, confusing. Therefore, the objective of this chapter is to clarify the concept and its application. Our aim here is to provide a concrete and useful definition that can help us analyse and compare the different initiatives that we can come across.

¿ Chapter 2: The five variables of social innovation.
o The theoretical model we use is based on previous research on Social Innovation carried out by the Institute of Social Innovation at ESADE. From this research, we focus on five key variables that help us to approach the cases and analyse them properly. In this chapter we introduce such variables. They will help us: clarify the concept, know where its boundaries are as well as knowing how we can measure its impact. Finally, it will help us to know what the key factors for success for any given initiative are.

¿ Case: The Behavioural Insights Team
o In this chapter we will analyse a successful case in which social innovation is a reality: Behavioural Insights Team. The main goal of this team is to influence (and change) people¿s behaviour (in terms of decisions and actions) based on the potential of behavioural economics. We will analyse it from a Social Innovation point of view.

¿ Case: Blablacar.
o This chapter will analyse the BalBlaCar case from the lens of social innovation. BlaBlaCar is a platform of the sharing economy that connects drivers who have empty seats in their cars with passengers who are heading in the same direction on that same day and are willing to share the costs. It is usually used for trips over 250 km. We will analyse how this company has generated a social innovation in the mobility filed.

5. Session 5. Strategizing and Organizing for Sustainability. (Day 4)

Faculty: Esben Rahbek Gjerdrum/Kirsti Reitan

Building on the theoretical concepts and practical tools introduced in the previous modules, the purpose of this module is to familiarize students with the nature and characteristics of strategizing and organizing for sustainability. The module will consist of six videos, which together introduces key theoretical concepts and discussions within the field.

¿ Chapter 1: Strategizing and organizing for sustainability: Key concepts.

o This chapter will introduce the overall goals of the module and tie the discussion to the other modules of the course. It will present key theoretical concepts in the field of organising and strategising for sustainability, providing students (and practitioners) with a framework to understand and discuss challenges and opportunities to strategising and organising for sustainability

¿ Chapter 2: Using business model theory

o In this chapter, we will visit a series of companies within the fashion industry to explore and illustrate various organisational approaches to strategising and organising for sustainability. Specifically, in this chapter, we will use business model theory as a starting point for analysis and discussion.

¿ Chapter 3: Sustainability startups, sustainability at heart

o this chapter will discuss the span of sustainability activities, ranging from green-washing to complete transformations of how to create, deliver and capture value. Through a series of company visits ranging from companies that are "born" sustainability to companies that struggle to change practices towards sustainability, this chapter exemplify various approaches to strategising and organising for sustainability.

¿ Chapter 4: Implementing, scaling and maintaining organizational sustainability

o this Chapter will present and discuss practical approaches to implementing, scaling and maintaining organisational sustainability. Through a series of case visits, the Chapter will introduce thinking and practices related to change management, workforce training and design thinking for innovation.

¿ Chapter 5: Reporting sustainability

o Chapter 5 will take a deep dive into various reporting schemes. Through a series of case visits, we will explore the use of reporting, e.g.¿the Global Reporting Initiative, the Dow Jones Sustainability Index, the UN Sustainable Development Goals, and various certification / standards, as a tool for strategising and organising for sustainability. This chapter will also ask students and practitioners to think critically on the way in which certifications and standards have been taken to use historically, and the ways in which they could potentially be strengthened.

¿ Chapter 6: Sum up

o In this final chapter of the module, we will sum up on learnings and case visits. We will link this module to the topics introduced in the rest of the course.

6. Session 6. Business in a Sustainable Future (Day 5)

Faculty: Lars Jacob Tynes Pedersen / David Murillo / Esben Rahbek Gjerdrum

In the final part of the course, the emphasis is placed on how to innovate existing business models in a way that makes them more sustainable, or design new business models that represent an improvement on the status quo with regard to sustainability. Furthermore, the big question that is addressed is how to make such improvements in a way that is compatible with profitability, and that might even lead to competitive advantages ¿ and that at the same time may contribute to a sustainable future.

Methodology

The course will consist of a mixture of methodologies. As already mentioned, the course in a blended course so that there will be face-to-face sessions as well as web-based on-line learning sessions

Students are expected to engage actively in class dialogue and discussions.

Assessment criteria

30% Class participation and attendance

40% Individual assignment: activities available in the website

30% Preparatory texts: Reflective summaries on key readings (400 words, 3 readings)

Bibliography

David Murillo
PhD in Sociology by the University of Barcelona. Degree in Humanities by the Universitat Oberta de Catalunya, and in Business Administration by the University of Barcelona. David Murillo has worked in the financial, public and non-profit sectors. Since 2006 he is a lecturer of the Department of Social Sciences at ESADE Business School, University Ramon Llull, in Barcelona and conducts research at the Institute for Social Innovation of the same school in areas like social innovation, business ethics and critical management studies.

His latest works are From Walmart to Al Qaeda. An interdisciplinary approach to globalization, published by GreenLeaf in 2015 (Axiom Business Book Award 2016: Bronze Medal Winner in the International Business/Globalization category). Together with Steen Vallentin he has just published ?The Business School's Right to Operate: Responsibilization and Resistance' in the Journal of Business Ethics (2016).
He has been visiting scholar or guest lecturer at the Universitat de Girona, Universitat Autònoma de Barcelona, Universidad de Sevilla (Spain); Frankfurt School of Finance and Management (Germany), Copenhagen Business School (DK), ESAN and Pacifico University (Peru) and Sogang Business School (Korea). David Murillo has worked as an external advisor for the Generalitat de Catalunya, the Ministry of Industry in Spain, the Inter-American Development Bank: IDB and the UNDP and IDB Agencies (United Nations). He regularly presents his research findings at conferences around the world and is a regular contributor to newspapers and publications.
email: david.murillo@esade.edu

Lars Jacob Tynes
Lars Jacob Tynes Pedersen is Associate Professor of Business Ethics at NHH's Department of Accounting, Auditing and Law. He holds a PhD degree from NHH (2009). He does research in two main areas: (1) The design and innovation of sustainable business models, and (2) natural field experiments on household-financial behavior, with a particular emphasis on socially and/or environmentally beneficial investment practices. His research has been published in journals such as Management Science and Journal of Business Ethics and by publishers such as Edward Elgar and John Wiley & Sons. Pedersen is affiliated with the Center for Service Innovation at NHH and is the chairman of the board of the school's Center for Ethics and the Economy. He is an active public speaker and strategic advisor for business organizations and other institutions.
email: lars.pedersen@nhh.no

Sveinung Jørgensen
Sveinung Jørgensen is Adjunct Associate Professor at NHH's Department of Accounting, Auditing and Law, and he is affiliated with The Inland Norway University of Applied Sciences. He holds a PhD degree from Karlstad University (2011). He does research on the design and innovation of sustainable business models and field experiments on socially and/or environmentally beneficial behaviors. Jørgensen is affiliated with the Center for Service Innovation at NHH, he serves on numerous boards, acts as a strategic business advisor and is an active public speaker.
email: sveinung.jorgensen@nhh.no


Esben Rahbek Gjerdrum
Esben Rahbek Gjerdrum Pedersen is professor and centre director of Copenhagen Business School Centre for Corporate Social Responsibility (cbsCSR). cbsCSR is one of the largest CSR research centres in Europe and its researchers been involved in a numerous national and international projects, including MISTRA Future Fashion I+II, IFamily, CORPUS, Nordic Network for Sustainability, Nudge It, EU-InnovatE, Water Efficient Dairies, DRIP, Multi-Stakeholder Initiatives in the Cotton Value Chains of South Asia, the Rio to Roskilde Roundtrip, Business Case for Diversity, and an ESF funded Exploratory Workshop on Business and Human Rights. cbsCSSR researchers are also the cornerstone of CBS' strategic initiative Governing Responsible Business, which is a five-year strategic research initiative on governance-making and governance-taking regarding CSR. cbsCSR has also been involved in education and dissemination activities all levels (schools, bachelor, master, phd, MBA, and Executive MBA). As an example, cbsCSR is currently leading an externally financed project on developing teaching material on sustainable fashion for Danish school children.
email: ergp.msc@cbs.dk

Kirsti Reitan
Kirsti is a Post Doc at the Department of Management, Society and Communication at CBS. In her current work she explores barriers and opportunities to change towards practicing sustainability in the textile and fashion industry, focusing on local production and alternative business models. As part of her Post Doc she conducts research on local textile and fashion production, where she amongst other things has taken part in the project MAKES. Kirsti Reitan Andersen is also engaged in the development of teaching material for the public school as well as university, using fashion as a starting point to teach sustainability and sustainable business models. Her PhD Project, Stabilizing Sustainability in the Textile and Fashion Industry, investigates the ways in which designers and design thinking might facilitate change towards sustainability in the fashion industry. She has extensive experience working with designers, both in consultancy and research, drawing on her background in European Cultural Studies and applying and exploring ethnographic research methods in her work. In her current position at CBS, she also works as a "Blended Learning Mentor?, promoting and assisting the introduction and use of more blended learning.

Timetable and sections

Group Teacher Department
David Murillo Bonvehí Ciencias Sociales

Timetable