22_Woolterton_Marinova Gumley

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Wooltorton, S. and Marinova, D. (Eds) Sharing wisdom for our future. Environmental education inaction: Proceedings of the 2006 Conference of the Australian Association of Environmental Education

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Chapter 22Green Steps for Business: Using Sustainability Skills to Enhance Industry

Placements for Business Graduates

Wayne Gumley

Department of Business Law and Taxation, Monash University: Caulfield Campus

1. Introduction

The purpose of this chapter is to describe a proposal for using sustainabilityeducation to enhance industry placement programmes (or internships) in tertiarybusiness degrees. This proposal builds upon the need for better integration ofsustainability skills in business education and the views expressed by (some)scholars that innovation not integration is the best approach to promotingsustainability in education (Tilbury, 2004; Sterling, 2004). It is well accepted that

internships give students a valuable taste of workplace life and often assist studentsto find permanent employment. One weakness of the traditional internship model isthat it primarily provides a one-way knowledge transfer from the host organisation tothe student. An innovative internship programme developed at Monash University,known as Green Steps, enables a two-way knowledge transfer by providingstudents with additional training as sustainability change agents. This programmeenables the intern to provide a host firm with specific sustainability services that canestablish long term strategies for organisational change. Green Steps has beenwidely applauded by both interns and host organisations, and subsequently extendedto several other universities around Australia.

This chapter proposes an extension of the Green Steps internship model which willbe linked more closely to traditional business skills, to enhance the ability of internsto promote organisational change. In support of this proposal the chapter firstprovides some perspectives on business education and the challenge of integratingsustainability skills into the business curriculum. It then describes the main featuresof the Green Steps programme as it currently operates. The chapter also describes arange of progressive regulatory strategies which provide guidance on the types ofskills that the enhanced Green Steps for Business programme should provide.

2. Some perspectives on the role of sustainability in business education

It is fair to say that students at Australian primary and secondary schools get areasonably strong and consistent grounding in the importance of environmentalprotection. This is driven partly by the close connection between local communitiesand environmental problems, as well as some progressive curriculum developmentprocesses within the government sector, like the Sustainable Schools Initiative(Environment Australia, 2000). However, at the university level, a surprising lack ofattention to the natural environment is apparent in most courses. This may be due tothe strong focus upon vocational outcomes and the historical deconstruction of thesyllabus into specific discipline areas (which gives rise to the notorious academicsilos). Of course, there are specific courses in environment related areas likegeography or biological science which provide high level environmental competence,

but this group represents only about 10% of total tertiary enrolments, and thesecourses do not necessarily equip students with the skills to manage organisational


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change (Department of Science Education and Training, 2006). The challenge foruniversities is to continue the momentum of sustainability education provided at theprimary and secondary school levels by integrating sustainability principles into thecurriculum across all university disciplines. The business disciplines like commerce,economics, accounting, management, marketing need particular attention, not only

due to their high proportion of enrolments but also the critical impact that businessgraduates will have in future as advisers and managers throughout all sectors ofsociety.

The need for widespread curriculum change in universities was recognised by thelandmark Talloires Declaration in 1990, which emphasised that change was neededacross all programmes, not just those dealing specifically with sustainability issues(University Leaders for a Sustainable Future, 1990). More recently, the UnitedNations emphasised the importance of the education sector by establishing theDecade of Education for Sustainable Development(United Nations, 2002).

A number of studies have recognised a lack of sustainability skills in businessgraduates, including the recent review of sustainability education at Australianbusiness schools for the Australian Research Institute in Education for Sustainability(ARIES), which found that sustainability has tended to be treated as additionalcontent rather than an integral part of the business curriculum (Tilbury, Keogh,Leighton and Kent, 2005). This is not surprising as University lecturers havetraditionally enjoyed great autonomy within their discipline areas. In this context, anadd-on approach provides the path of least resistance, but it is likely to beimplemented by a few committed devotees without engaging the whole Faculty. Theessential dilemma is that sustainability cannot be simply integrated into a curriculumthat implicitly promotes unsustainability, and thus education throughout schools anduniversities can be considered to be part of the problem, as well as part of thesolution (Ibid: 15). The ARIES report suggested that innovation, not integration isthe best approach, and more particularly, that education for sustainability is aninnovative and interdisciplinary process requiring participative and holisticapproaches to the curriculum.However this report also cautioned that a new set ofnew teaching and learning approaches directed to sustainability may only besuccessful if reinforced by a more profound process of institutional change (Ibid: 16).

Thus the next challenge for business schools is to develop a set of innovative newteaching and learning approaches. Useful guidance on the nature of this type

curriculum reform can be found in literature on organisational change. Some scholarshave analysed the transition to sustainability as a series of waves (Dunphy, Griffithsand Benn, 2003). Under this model, the first wave refers to corporations whichremain unresponsive, maintaining a business as usual approach. The second waverefers to corporations which have accepted the rhetoric on sustainability, and haveappropriate policies in place but still fall short in practice. The final wave is thesustaining corporation, in which sustainability is fully internalised and activelypromoted whilst still providing excellent returns to investors (Ibid: 19-21). Since thefully sustaining corporation is still mainly a dream rather than a reality, the essentialtask for business educators is the restructuring of first and second wavecorporations. Progress on this transition can be assisted by a wide range of change

agents but most importantly by leadership from within the corporation itself (Ibid:281).


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Business schools are particularly important in this context, as they are primarilyresponsible for educating the next generation of business professionals who willconfront this crucial challenge. Unfortunately the mainstream of business educationis yet to catch up with the conceptual shift that is already taking place in the

corporate sector. For instance, recent studies have found that MBA programmes donot meet the needs of sustainability but continue to produce functional specialistsdrilled in analytical decision-making rather than collaborative and reflective managers(Benn and Bubna-Litic, 2004). Meanwhile, many leading companies like Panasonicand Fuji Xerox have already embraced the business case for sustainability in theirAustralian operations (Department of Environment and Heritage, 2003; Benn,Dunphy and Griffiths, 2006). The reform of business school curriculum is animportant long term challenge, but it is beyond the scope of this chapter. The morelimited objective here is to propose a model for using the management strategies thatare already accepted as best practice in sustainability management as a frameworkfor an industry placement programme which can retro-fit these skills to students

from traditional business degrees.

3. Teaching sustainability skills; the Green Steps model

The range of generic skills that graduates need to address the challenges ofsustainability are quite well recognised. According to Tilbury and Cooke (2001), theseskills include:

the ability to deal with complexity and uncertainty; critical, systematic and future oriented thinking; skills to motivate and manage change; stakeholder engagement and an appreciation of multi-cultural diversity; and

practical problem solving and project management skills.

It should be observed that these generic skills are not directed specifically toenvironmental objectives. They are in essence fundamental skills that businessprofessionals need in an increasingly complex and rapidly changing business world.Many traditional areas of business curriculum are losing relevance as newcommunications and information technology have changed the way business isconducted. Globalisation and free trade have caused widespread restructuring andrelocation of entire industries. The ARIES report has noted that the business sector isreacting to these challenges by making the shift from top-down hierarchicalorganisations to a more flexible mode of operation, which often requires engagement

of a wide range of stakeholders, however they note that further and higher educationhas been slow to catch up with this evolution of organisational thinking (Tilbury,Crawley, and Berry, 2004: 26).

The Monash Green Steps programme recognises these changes in organisationalmanagement and provides students with skills to assist organisational changethrough an industry placement programme. It is well recognised that industryplacement programmes (or internships) have been a very successful strategy inbusiness education. They typically provide valuable short-term industry experiencethat is linked to the learning outcomes of the course. More specific benefits includethe opportunity to integrate theory into practice, increased employment opportunities,

better job satisfaction and higher salaries, as well as considerable satisfaction for thehost employers (Brace-Govan and Powell, 2005). However, the usual internship


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model envisages a one-way knowledge transfer from the host to the student. TheGreen Steps programme offers a mentored internship approach which offers manyadvantages over the traditional model. Students are specifically trained assustainability change agents which enables the internship to provide a two-waytransfer that offers longer term benefits to the host firm, particularly in the small to

medium sized entity sector where host firms may not have their own staff withsustainability skills.

The Green Steps Programme was established in 2000 by a group of MonashUniversity students who felt they had been taught a great deal about theunsustainability of the modern world, but less in terms of what to do about it:

Specifically, the students identified a significant skill and knowledge gapbetween understanding the various environmental imperatives, and the ability todevelop effective solutions. The students conceived of an extra- curricularprogramme that would help close this gap.

A partnership was formed between Green Steps, the Monash EnvironmentInstitute and the AGO and this has seen the programme grow from being astudent initiative located only at Monash, to a professional programme operatingnationally (through several regional partnerships with other universities inMelbourne, Sydney and Brisbane).

The students conceived of an extra-curricular course that would help thembecome effective change agents. They sought the possibility of living criticallyconstructive careers, rather than the perceived invitation to join the problemoffered by mainstream education and employment, or to disown it, as isencouraged by many critical perspectives. In essence, the programme, the asnow, trains competitively selected university students in skills required ofenvironmental change innovators and leaders. The central aim is to facilitate theemergence of potential environmental change agents who are able to workeffectively within mainstream business, government and communityorganisations.(Kaufman, Bachar and Symons, 2006)

The Green Steps programme is open to students from all faculties but places arelimited to about 12 students per semester so a competitive selection process applies,

and this ensures that only students with high motivation and strong communicationskills are selected. The formal training programme has three main components.Firstly, students undertake about 30 hours of class work over several weekends. Thekey areas covered in these sessions include waste and energy audits, interviewtechniques, communication techniques, organisational change, negotiation skills,project planning and presentation skills. Secondly, students are given an internalproject to practise these skills in a friendly and supportive context, eg. to carry out awaste or energy audit for a department within the university. The third and final phaseis an external industry placement where students gain direct experience oforganisational change management in a professional environment. The typicalexternal placement takes place over 12 full days, with the standard schedule being

two days per week over six weeks. Host organisations have varied from governmentagencies to corporations and not-for-profit organisations. The external projects have


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generally focused on reducing the environmental impacts of the organisationsinternal operations, whilst some have concerned the environmental impacts of thehosts products and services. Most projects are heavily directed to strategies forbehavioural change within the organisation, to maximise the long-term outcome. Theprogramme has proved highly successful for both interns and hosts with a recent

survey on the value, impact and quality of the work completed finding that nearly90% of hosts assessed the value as excellent or good, and a similar score wasachieved for quality of work (Maunsell Australia, 2005). The success of theprogramme has also been demonstrated by the fact that approximately 50% of theGreen Steps external projects have resulted in offers of continuing employment tothe students.

4. Making links to successful sustainability management strategies

At this stage, the Green Steps programme at Monash has trained a relatively smallnumber of business students with most participants coming from arts, science and

engineering courses (Monash Environment Institute, 2005). This may be due partly tothe origin of the programme, as it was conceived by students primarily from thegeography and environmental science fields. It is also likely reflect the careeraspirations of business students, and a perception that sustainability issues are nothighly relevant to them. This chapter proposes that a new enhanced variant of theprogramme be developed as part of the final year in undergraduate business andcommerce degrees. This proposal has two significant enhancements over theexisting Green Steps programme. First, it proposes that the enhanced programme beoffered for credit as an elective unit in the final year of a standard three-yearbusiness or commerce degree. This will significantly change the skill profile oftrainees by providing a cohort with background studies in business fundamentals like

accounting, economics, management and marketing. The second enhancement isthat the formal training component would include additional sessions on innovativebusiness sustainability strategies that have been successfully adopted by leadingcompanies committed to the business case for sustainability. These companieshave recognised that good environmental strategies generally promote profitabilitythrough cost savings and efficiency gains as well as opportunities for new marketsand reputation gains which enhance the value of the company (Department ofEnvironment and Heritage, 2003). For this purpose, the particular sustainabilitystrategies recommended for inclusion in the formal training component are:

environmental management systems, sustainability reporting,

stakeholder engagement; and eco-efficiency policies.

Each of these strategies has also been recognised by environmental regulatorsthrough recent legislative reforms as best practice voluntary approaches tosustainability, which complement the traditional command and control legislation.

The addition of these specific sustainability strategies would significantly broaden theambit of the current Green Steps programme from its present environmental focus, toa wider sustainability focus, and this would provide more scope for consideration ofsocial impacts. The current internships usually focus upon motivational strategiesacross the whole of an organisation, using energy and/or waste audits as pilot

projects. By contrast, this enhanced programme seeks to use students who are


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themselves aspiring to careers in business management, who could use a range of'higher level' strategies to influence management approaches to sustainability.

(i) Environmental management systems

An environmental management system (EMS) is generally defined as that part ofthe overall management system of an enterprise that is responsible for developingand implementing the environmental policy of the enterprise (Standards Australia,1996). The International Standards Organisation has an accreditation standard forEMS, called ISO 14001, which requires that any organisation seeking accreditationmust have an environmental policy which takes into account the specific nature of allrelevant business activities and their associated environmental impacts. The EMSmust also ensure that all relevant environmental regulations are observed, and thatspecific objectives and targets are set to reflect a commitment to continualimprovement. The importance of EMS is clearly recognised under the Victoriangovernments Environment Protection Act1970 (Vic). That Act requires that certain

scheduled premises causing significant discharges or emissions to the environment(generally, significant industrial sites) must be licensed by the EnvironmentProtection Authority of Victoria (the EPA). The legislation also permits licencees witha very high standard of environmental management to seek recognition as anaccredited licensee, which reduces certain compliance obligations. Section 26B ofthe Act recognises EMS as one of the basic requirements for accredited licenseestatus. An EMS may also be regarded favourably by courts in proceedings againstcompany officers where a corporation has committed an environmental offence.Corporate officers may raise a defence of due diligence in such cases under s66B(1A)(c), and an effective EMS has been recognised by the judiciary as one of theelements which found this defence (Ormston, 1992). The more fundamental benefit

of an EMS is that it provides all firms, and not just those engaged in heavy industry,with a reliable process for recognising and measuring their environmental impacts.Thus it provides a strong starting point for moving beyond mere regulatorycompliance to a more sustainable business model.

(ii) Sustainability reporting

Sustainability reporting or triple bottom line reporting involves reporting bycorporations to a wide range of stakeholders on social and environmentalperformance of the enterprise, in addition to conventional financial reports. It canalso be argued that traditional financial reporting already requires environmental andsocial disclosures in many situations. In particular, s 299(1)(f) of the Corporations Act2001 (Cth), which requires disclosure of an entitys performance in relation to certainenvironmental obligations, and s 295, which requires that financial statements mustgive a true and fair view of the financial position and performance of the company.For example, intangible assets often make up a large share of the balance sheetvalue of large corporations. In industries associated with environmental risks likeclimate change (eg. motor vehicle manufacturing, electricity generation) there may bea need for disclosure about vulnerability to climate change and technology advances.For these reasons capital markets increasingly expect corporations to disclose arange of non-financial sustainability data relevant to share valuation (Lucy and Utter,2004).The ASX Listing Rules have established a set ofPrinciples of Good Corporate

Governance which encourage a corporation to ensure all investors have equal andtimely access to material information concerning the company including its financial


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situation, performance, ownership and governance (Australian Securities Exchange,2006, at Principle 5). Recent studies have found that the general quality andfrequency of sustainability reporting in Australia is quite poor, and that manyvoluntary reports are prepared for public relations purposes, rather out of a genuineenvironmental commitment (Australian Conservation Foundation, 2004). The recent

Parliamentary Joint Committee Report on corporate social responsibility urgedgreater efforts on sustainability reporting and broadly endorsed the adoption ofinternational standards like the Global Reporting Initiative (Commonwealth ofAustralia, 2006).

(iii) Stakeholder engagement

The traditional view that corporations can operate for the exclusive benefit ofshareholders is now yielding to a more contemporary approach based on corporatecitizenship, with modern corporations increasingly answerable to a wide range ofcommunity stakeholders (Kennedy, 2001). The Environment Protection Act 1970

(Victoria) has established several mechanisms to facilitate stakeholder engagementincluding environmental improvement plans (EIP) under s 31C(2) andneighbourhood environmental improvement plans (NEIPs) under s 31C(6). Thesestatutory schemes provide regulatory compliance concessions to firms that providefor an appropriate level of stakeholder consultation. The compliance benefits areoften only a small part of the overall gain, as the stakeholder engagement processoften drives highly innovative cost saving measures. For instance, the MaryvalePaper Mill in the Latrobe Valley, had a long history of issues with the localcommunity, particularly concerning odour. An EIP provided the basis forestablishment of a Community Environmental Consultative Committee whichfacilitated substantial improvements to odour problems, as well as greatly improved

water conservation and waste treatment processes at the mill (Australian Paper,2003). Another area of the law which relies heavily upon stakeholder consultation isproperty development and major infrastructure projects, where planning laws andenvironmental impact assessment procedures typically require developers to consultwidely amongst relevant stakeholders (eg. see the Planning and Environment Act1987 (Vic) and Environment Protection and Biodiversity Conservation Act 1999(Cth)). There is an emerging new field of public relations practice emerging aroundthese stakeholder engagement processes which requires professionals with goodcommunication skills and a solid understanding of how business objectives can beachieved alongside sustainability objectives.

(iv) Eco-efficiency strategies

Whist the three strategies described above are all highly supportive of businesssustainability, the ultimate goal of a truly sustaining corporation is eco-efficiencythroughout the supply chain of goods and services. The main challenge for businessis to increase profitability whilst using fewer resources and creating less waste andpollution (World Business Council for Sustainable Development, 1992). One usefulconcept in this context is ecological footprint analysis which approximates theamount of ecologically productive land or sea area required to sustain a particularcommercial or social activity (Wackernagel and Rees, 1996). Another fundamentaltool of eco-efficiency is life cycle analysis (LCA) which assesses the environmental

aspects and potential impacts associated with a product, process, or service (Societyof Environmental Toxicology and Chemistry, 1993). A related concept is extended


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product responsibility (EPR) which considers the long term environmental impactsof products throughout the supply chain from sourcing raw materials to on-siteproduction processes and downstream product distribution and waste recovery(Davis, Wilt, Dillon and Fishbein, 1997).

Progressive governments are steadily incorporating these eco-efficiency strategiesinto their regulatory framework, particularly in high risk industrial sectors which arethe most prolific users or natural resources and the biggest sources of waste. Forexample the Victorian government has recently passed legislation to requireVictorias largest commercial users of energy and water to establish Environmentand Resource Efficiency Plans (EREPs). One notable feature of this scheme is thatit focuses strongly upon identifying and pursuing financially beneficial efficiencymeasures that pay for themselves within three years or less. This indicates actionsthat will yield financial returns in the order of 30-40% per annum; stronglyemphasising the business case for sustainability (Environment Protection Authority ofVictoria, 2006). Another management tool offered by the Victorian EPA is the

sustainability covenant. These voluntarily arrangements enable an organisation tomake a commitment to sustainability through an agreed range of strategies which willhave the broad aim of reducing the ecological footprint of the organisation both withinits own operations and through its products and services (Environment Protection Act1970 (Vic), s 49AA). The first sustainability covenant was signed in May 2003 byVicSuper Pty Ltd, one of Victorias largest public offer superannuation funds.VicSuper is one of a growing group of financial service providers that has recognisedthe strong influence this sector can have on investment markets and the businesspractices of its customers through sustainable investment and lending practices(VicSuper and Environment Protection Authority of Victoria, 2005).

5. Conclusion; using business students to overcome barriers to sustainability

This chapter has mentioned a range of influences that are encouraging progressivefirms to voluntarily adopt new management strategies to meet the challenge ofsustainable development. However, the reality is these progressive firms are still verymuch in the minority, particularly in the small to medium size entity sector. A recentindustry research forum carried out by ARIES has identified the main barriers tochange facing the vast majority of firms. These included a short term focus bybusiness and governments, poor understanding by business of how sustainabilitycould be achieved, a lack of resources and time for business executives to addresssustainability, a lack of meaningful stakeholder engagement and a gap in systemic

problem solving skills (ARIES, 2004). That forum recommended inter alia, thatcompanies needed to build their own internal capacities to engage with sustainability,that there is a need to explore partnerships between government and industry andthat higher education institutions need to address sustainability through thecurriculum of business schools (Ibid: 12-13). These findings clearly support the needfor new approaches to business education.

In response to the barriers to change mentioned above, this chapter proposes anindustry placement programme for business students which will encourage a widerapplication of sustainability strategies in the business world. The Monash GreenSteps programme already produces trainees who can assist businesses to achieve

environmental efficiencies and more generally, sow the seeds for broaderorganisational change. An enhanced version of that programme is now proposed,


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which specifically extends the training of business students, by additional training onsustainability skills and an industry placement project in the final year of study. Thenew Green Steps for Business programme will aim to provide students who havetraditional core business skills in areas like accounting, economics, managementand marketing, with additional training on organisational change with particular

emphasis on leading edge business sustainability strategies like EMS, sustainabilityreporting, stakeholder engagement and eco-efficiency. These students, who arethemselves aspiring to careers in business management whilst also committed tosustainability objectives, should be better placed to persuade business managers tointegrate these well recognised strategies for sustainability and social responsibilityinto normal business operations. If successful, this programme will provide a usefulmodel for business schools seeking to promote best practice in sustainabilitymanagement in the shorter term and perhaps also, a blueprint for future reform of theentire business curriculum.

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___________________________________________Author Email: [email protected]

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