Sustainable business strategy
MODULE 4: CHANGING THE SYSTEM AT THE INDUSTRY SCALE
WHY PURPOSE MATTERS
SELF-REGULATION & THE COMMONS
❏ Play the Prisoner’s Dilemma via this online simulation ( Lessons from the Prisoner’s Dilemma: An Interactive Tutorial: 1 (economicsnetwork.ac.uk) )
❏ Read HBS Note: Industry Self-Regulation: Sustaining the Commons in the 21st Century?
❏ Read Reimagining Capitalism, Chapter 6 (pp. 163-200).
❏ Answer Module Comprehension Questions
1. This is a quick fun exercise to show your peers a little bit about yourself and what you have learnded so far. Set a timer for two minutes. Quickly read the prompt and respond- don’t spend more than 2-minutes on this question!
- You have just concluded your final interview for leading decision-making role. This is your dream job, as you would be working to help the company transition to more sustainable business practices. You and your interviewer have stepped into the elevator. You have 30 seconds to the ground floor. This is your final opportunity to make a lasting impression. How will purpose help you to succeed in the role and how will company-wide purpose enable the organization to succeed in its efforts? Unleash your elevator pitch!
- 2.The royal DSM case explores the tension inherent in creating “share value” in practice. Using royal DSM as an example, what kinds of tradeoffs should a firm think about making when simultaneously serving unmet human needs and creating a profitable business model?
- 3. In Sustainable palm oil case, Unilever committed to purchasing 100% sustainable palm oil in 2008. At that time it was the only major company to have such a commitment. But by 2014, nearly all of the major buyers, traders, and producers (i.e., 60% of globally traded palm oil) had made such commitments. What happened and why?
- 4. Industry self-regulation, in general, has a lousy track record. The HBS Note: Industry self-Regulation introduces the Prisoner’s Dilemma as a metaphor for industry self-regulation on ESG and sustainability metrics. Play the Prisoner’s Dilemma via this online simulation and answer the following questions:
- If the rational choice is always to defect, then why do rational people ever cooperate with each other?
- How does the nature of the game change if your goal is to beat your opponent(s) by the largest margin?
- How does the game change if your goal is to maximize total gains for you and your opponent(s)?
- Give one example from your own life where a group you have been part of (e.g. your family, a sport team, a team of co-workers) has been able to solve a common problem by persuading everyone to work together? Briefly describe the situation and then reflect on why it was successful?
- Finally, what are the parallel lessons for industry-level-regulation?
Requirements: .doc file | APA | Discussion | 5 pages, Double spaced