{"268811":{"#nid":"268811","#data":{"type":"news","title":"Sustainability Hub: Scheller Creates New Center for Socially Conscious Business","body":[{"value":"\u003Cp\u003EAs a young girl growing up in Turkey, Beril Toktay accepted water and air pollution as a fact of life. \u201cIt wasn\u2019t until I went abroad that I saw how much better it could be,\u201d says the professor of operations management at Georgia Tech Scheller College of Business.\u003C\/p\u003E\u003Cp\u003EThis realization fueled Toktay\u2019s interest in sustainability. Today, she is internationally known as a scholar in the field of sustainable operations management, with a focus on socially responsible, environmentally friendly business practices. \u201cShe is one of the pioneers in this research area,\u201d says Scheller College Dean Steve Salbu.\u003C\/p\u003E\u003Cp\u003EHer dedication and leadership were major factors in the College\u2019s winning of a $750,000 grant from the Ray C. Anderson Foundation to start the Center on Business Strategies for Sustainability in early 2013. That gift was soon followed by a $300,000 grant from the Kendeda Fund.\u003C\/p\u003E\u003Cp\u003E\u0026nbsp;\u003C\/p\u003E\u003Ch4\u003E\u003Cstrong\u003ECenter Goals\u003C\/strong\u003E\u003C\/h4\u003E\u003Cp class=\u0022p1\u0022\u003EThe Center focuses on strategies that bring business value while minimizing negative impacts on the environment and society. Center goals include:\u003C\/p\u003E\u003Cul\u003E\u003Cli\u003EGenerating and disseminating high-impact research on business strategies and innovation for sustainability.\u003C\/li\u003E\u003Cli\u003ETeaching students\u2014tomorrow\u2019s engineers, managers, entrepreneurs, and CEOs\u2014how to integrate cutting-edge business principles, science, and technology to further sustainability objectives throughout their careers.\u003C\/li\u003E\u003Cli\u003EPartnering effectively with industry and a broad set of\u0026nbsp;stakeholders to push the envelope on what constitutes\u0026nbsp;best practices and accelerate their adoption.\u003C\/li\u003E\u003C\/ul\u003E\u003Cp class=\u0022p1\u0022\u003ESalbu points out that Scheller College rivals many top business schools with the number of faculty members actively engaged in sustainability activities.\u003C\/p\u003E\u003Cp class=\u0022p1\u0022\u003E\u201cOur College\u2019s strong focus in the management of technology, innovation, and commercialization is highly relevant to the adoption and management of green tech,\u201d he says. \u201cThe opportunity to leverage these core strengths for high-visibility, high-impact leadership in sustainable business research and education has never been greater.\u201d\u003C\/p\u003E\u003Cp class=\u0022p1\u0022\u003E\u0026nbsp;\u003C\/p\u003E\u003Ch4\u003E\u003Cstrong\u003EGrowing Interest\u003C\/strong\u003E\u003C\/h4\u003E\u003Cp class=\u0022p1\u0022\u003EInterest in sustainability is growing tremendously in both the business world and academia, says Toktay, holder of the Brady Family Chair.\u003C\/p\u003E\u003Cp class=\u0022p1\u0022\u003E\u201cWhen I first started my career, not that many people were researching it,\u201d she says. \u201cBut Scheller College now has faculty in different areas, from operations and finance to business ethics and marketing, addressing various aspects of sustainability, including socially responsible investing, corporate social responsibility, brand value, and sustainable operations.\u201d\u003C\/p\u003E\u003Cp class=\u0022p1\u0022\u003EShe adds, \u201cWe hope to leverage all of this expertise through the new Center and pursue collaborative, value-adding partnerships within the broader sustainability community at Georgia Tech and beyond.\u201d\u003C\/p\u003E\u003Cp class=\u0022p1\u0022\u003E\u0026nbsp;\u003C\/p\u003E\u003Ch4\u003E\u003Cstrong\u003EIndustry Perspective\u003C\/strong\u003E\u003C\/h4\u003E\u003Cp\u003EWhile Toktay serves as faculty director of the Center, Howard Connell was hired in summer 2013 to serve as director as well as a professor of the practice of sustainable business. In addition to teaching, he is building partnerships and connections to industry, supporting fundraising efforts, and developing educational initiatives and career opportunities.\u003C\/p\u003E\u003Cp class=\u0022p1\u0022\u003EPrior to joining Scheller, he led B2B sustainability efforts internationally at Kimberly-Clark Corporation. \u201cAll industries are realizing that there are not enough resources on the planet to provide for everyone without massive innovations in sustainable processes and business models,\u201d says Connell, vice chair of the nonprofit organization Sustainable Atlanta.\u003C\/p\u003E\u003Cp class=\u0022p1\u0022\u003EConnell, who began his career as a musician and sound engineer in Nashville, Tennessee, says he became fascinated with sustainable business after reading Paul Hawkens\u2019 The Ecology of Commerce\u0026nbsp; (1993).\u003C\/p\u003E\u003Cp class=\u0022p1\u0022\u003EThe book inspired him to pursue opportunities in socially responsible investing and later choose a sustainability concentration for his MBA studies at the University of California-Berkeley. That degree led to six years of sustainability-focused consulting with A.T. Kearney before he joined Kimberly-Clark in 2011.\u003C\/p\u003E\u003Cp class=\u0022p1\u0022\u003E\u0026nbsp;\u003C\/p\u003E\u003Ch4\u003E\u003Cstrong\u003ERay Anderson\u2019s Legacy\u003C\/strong\u003E\u003C\/h4\u003E\u003Cp class=\u0022p1\u0022\u003ECoincidentally, The Ecology of Commerce\u0026nbsp; book that so inspired Connell also had a great impact on the late Ray Anderson (1934-2011). The foundation created in his honor funded the creation of Tech\u2019s Center on Business Strategies for Sustainability.\u003C\/p\u003E\u003Cp class=\u0022p1\u0022\u003EAnderson, who earned his bachelor\u2019s degree in industrial engineering from Tech in 1956 and built Interface into one of the world\u2019s largest manufacturers of commercial carpet, said that book hit him like a \u201cspear in the chest,\u201d inspiring him to set highly ambitious goals for his company to reduce waste and carbon emissions.\u003C\/p\u003E\u003Cp class=\u0022p1\u0022\u003EProfessor Toktay says it\u2019s a great privilege for the Center to win the support of the Ray Anderson Foundation.\u003C\/p\u003E\u003Cp class=\u0022p1\u0022\u003E\u201cWhat we want to achieve is so congruent with Ray Anderson\u2019s vision that I really cannot imagine any other partnership that would be more inspiring to us and send a more powerful message to the world about our aspirations: to do groundbreaking, high-impact research, and to educate the Ray Andersons of the future.\u201d\u003C\/p\u003E\u003Cp class=\u0022p1\u0022\u003E\u0026nbsp;\u003C\/p\u003E\u003Ch4\u003E\u003Cstrong\u003EClassroom Experience\u003C\/strong\u003E\u003C\/h4\u003E\u003Cp class=\u0022p1\u0022\u003EToktay and Connell are excited about expanding educational opportunities for graduate and undergraduate students through the Center.\u003C\/p\u003E\u003Cp class=\u0022p1\u0022\u003EDuring fall 2013, Connell is teaching a new Sustainable Business Consulting Practicum\u0026nbsp; in which MBA students work on solving real problems for participating companies. He\u2019ll teach a similar course for undergraduates in spring 2014 as well as one called Innovation Tournaments for Sustainability.\u003C\/p\u003E\u003Cp class=\u0022p1\u0022\u003EIn spring 2013, Toktay introduced these innovation tournaments into the Business Strategies for Sustainability course that she teaches to MBA students. In these contests, students generate business-model or product ideas that would have a positive environmental or social impact, and class voting and input determines and refines the best ideas. Winners go on to develop an early-stage business plan and investor pitch.\u003C\/p\u003E\u003Cp class=\u0022p1\u0022\u003E\u201cWe\u2019re harnessing the collective wisdom and creativity of the class to come up with one or two good ideas that might tie into structures at Tech that help aspiring entrepreneurs,\u201d Toktay says.\u003C\/p\u003E\u003Cp class=\u0022p1\u0022\u003EEvening MBA student Sophia Bromfield\u2019s concept made it to the final round of the spring 2013 tournament. Her concept was for a nonprofit organization called Greenhouse that would provide sustainable emergency housing for natural disaster victims.\u003C\/p\u003E\u003Cp class=\u0022p1\u0022\u003E\u201cThese sustainable shelters, sturdier than tents, would be made out of recyclable materials so that they don\u2019t become trash,\u201d says Bromfield. \u201cThey would be great for the disaster victim as well as for the environment. Their design includes cloth ventilation for cooling and insulated materials for heat, so that in the event that it\u2019s impossible to generate power, the dwelling would still be comfortable.\u201d\u003C\/p\u003E\u003Cp class=\u0022p1\u0022\u003E\u0026nbsp;\u003C\/p\u003E\u003Ch4\u003E\u003Cstrong\u003ECareer Opportunities\u003C\/strong\u003E\u003C\/h4\u003E\u003Cp class=\u0022p1\u0022\u003EBromfield, who earned her master\u2019s in architecture at Tech in 2010, wants to be at the forefront of the sustainability trend because she believes it will be crucial for her career. Now a project manager for a design and construction services firm, LCG-CI, she says that environmentally friendly design is going to be a factor that influences every company\u2019s real estate decisions in the future.\u003C\/p\u003E\u003Cp class=\u0022p1\u0022\u003E\u201cI\u2019d like to combine strategy, sustainability, and construction design,\u201d says Bromfield, who earned LEED (Leadership in Energy and Environmental Design) accreditation. \u201cThe MBA degree will open more doors for me.\u201d\u003C\/p\u003E\u003Cp class=\u0022p1\u0022\u003EBromfield says there\u2019s a big push for those in her industry to understand sustainability. \u201cThrough LEED, you\u2019re trained to be a consultant to advise builders and developers on how to make buildings green,\u201d she says.\u003C\/p\u003E\u003Cp class=\u0022p1\u0022\u003E\u201cI believe that sustainability should be ingrained into our culture,\u201d she adds. \u201cI think that in the future, it won\u2019t really be an option. There are going to be more requirements and mandates. Corporate clients are already demanding greener approaches.\u201d\u003C\/p\u003E\u003Cp class=\u0022p1\u0022\u003E\u0026nbsp;\u003C\/p\u003E\u003Ch4\u003E\u003Cstrong\u003ETriple Bottom Line\u003C\/strong\u003E\u003C\/h4\u003E\u003Cp class=\u0022p1\u0022\u003EFull-time MBA student Mansoor Baloch recognizes that those interested in sustainable business practices sometimes get labeled as \u201ctree huggers.\u201d But that\u2019s a mischaracterization, he says.\u003C\/p\u003E\u003Cp class=\u0022p1\u0022\u003E\u201cI think that businesses can create value for consumers and shareholders while incorporating the principles of sustainability and social responsibility. There\u2019s value for everyone in pursuing the triple bottom line (profit, people, and planet),\u201d he says.\u003C\/p\u003E\u003Cp class=\u0022p1\u0022\u003E\u201cConsumers are increasingly aware of environmental issues, so there is a growing sense of urgency in the business world to minimize harm to society and the environment. I want to play a leading role.\u201d\u003C\/p\u003E\u003Cp class=\u0022p1\u0022\u003EBaloch has already gotten deeply involved, serving on a student committee supporting the College\u2019s new Center on Business Strategies for Sustainability. What\u2019s more, he\u2019s the 2013-2014 president of the College\u2019s Net Impact chapter (which recently earned Gold Standing from the national organization).\u003C\/p\u003E\u003Cp class=\u0022p1\u0022\u003E\u0026nbsp;\u003C\/p\u003E\u003Ch4\u003E\u003Cstrong\u003ENet Impact\u003C\/strong\u003E\u003C\/h4\u003E\u003Cp class=\u0022p1\u0022\u003ENet Impact has more than 300 chapters worldwide, including 40,000 students and professional leaders who are focused on creating positive social and environmental change in the workplace and world. Tech\u2019s Net Impact chapter brings sustainability leaders to speak on campus, enters teams into national sustainability case competitions, and promotes social responsibility by helping organize the Pro Bono Consulting\u0026nbsp; course, which supports nonprofit organizations.\u003C\/p\u003E\u003Cp class=\u0022p1\u0022\u003EDuring the next year, the Tech chapter plans to work in collaboration with the Scheller College\u2019s newly created Center on Business Strategies for Sustainability to inaugurate a sustainability panel bringing industry leaders to share their experiences with current MBA students.\u003C\/p\u003E\u003Cp class=\u0022p1\u0022\u003E\u0026nbsp;\u003C\/p\u003E\u003Ch4\u003E\u003Cstrong\u003EEarly Research\u003C\/strong\u003E\u003C\/h4\u003E\u003Cp class=\u0022p2\u0022\u003EProfessor Toktay\u2019s research into sustainable business began almost as soon as she started her doctoral studies at Massachusetts Institute of Technology. Her first project dealt with the Kodak single-use camera that was popular at the time.\u003C\/p\u003E\u003Cp class=\u0022p2\u0022\u003EUnder pressure from environmentalists, Kodak figured out they could save money and materials by reusing lenses and circuit boards from those cameras, so the company worked out incentives for photo processors to return the devices. \u201cMy project focused on the supply chain issues that came up as a result,\u201d she says.\u003C\/p\u003E\u003Cp class=\u0022p2\u0022\u003ECurrently, Toktay and operations management associate professor Atalay Atasu are contributing to the development of proposed legislation that would extend manufacturer responsibility over the life of a product. For example, when a user is done with a computer, the manufacturer would be responsible for paying for its recycling.\u003C\/p\u003E\u003Cp class=\u0022p2\u0022\u003E\u201cIf you make the manufacturer responsible for costs at the end of a product\u2019s life cycle, you give them incentive to design a product so that it\u2019s environmentally friendly, thus closing the loop,\u201d Atasu says. \u201cBut how the legislation is implemented makes a big difference to its impact.\u201d\u003C\/p\u003E\u003Cp class=\u0022p2\u0022\u003E\u0026nbsp;\u003C\/p\u003E\u003Ch4\u003E\u003Cstrong\u003ESecondary Markets\u003C\/strong\u003E\u003C\/h4\u003E\u003Cp class=\u0022p2\u0022\u003ESome of Toktay\u2019s research has focused on the environmentally friendly practice of refurbishing computer equipment and selling it on the secondary market. She explains that in some cases, original equipment manufacturers of IT-related products, such as servers, have made efforts to squelch the secondary market for their products through high relicensing fees, fearing the competition would cannibalize new sales.\u003C\/p\u003E\u003Cp class=\u0022p2\u0022\u003EBut her research team\u2019s work has highlighted the importance of supporting secondary markets under a wide range of industry conditions. \u201cWe\u2019ve shown that it\u2019s not necessary to kill the secondary market for a product,\u201d she notes. \u201cCompanies like IBM have gained significant value from secondary markets through combining leasing strategies with asset recovery operations.\u201d\u003C\/p\u003E\u003Cp class=\u0022p2\u0022\u003E\u0026nbsp;\u003C\/p\u003E\u003Ch4\u003E\u003Cstrong\u003EFinancial Motivation\u003C\/strong\u003E\u003C\/h4\u003E\u003Cp class=\u0022p2\u0022\u003ESudheer Chava, associate professor of finance, looks at sustainability from a different angle. A common question in his research is whether finance can be a force for good in the world. He is looking at whether capital markets can cause companies to change behavior related to sustainability.\u003C\/p\u003E\u003Cp class=\u0022p2\u0022\u003EThe answer, in brief, is yes, he says. In fact, he found that the markets charge a higher interest rate to more polluting companies, most likely because of the risks involved with environmental contamination as well as the general public relations costs of being branded as a polluter.\u003C\/p\u003E\u003Cp class=\u0022p2\u0022\u003EInvestors are increasingly leery of polluters, Chava finds. When investing, for example, TIAA-CREF considers the environmental, social, and governance aspects of companies.\u003C\/p\u003E\u003Cp class=\u0022p2\u0022\u003E\u0026nbsp;\u003C\/p\u003E\u003Ch4\u003E\u003Cstrong\u003EInterdisciplinary Approach\u003C\/strong\u003E\u003C\/h4\u003E\u003Cp class=\u0022p2\u0022\u003EThrough the new Center on Business Strategies for Sustainability, Chava is looking forward to pooling ideas across disciplines, the business school, university, and beyond. \u201cWhat we can do as a group is far better than a single discipline can produce,\u201d he says. Ravi Subramanian, associate professor of operations management, believes the Center is well-positioned to address sustainability issues from multiple perspectives, including technology\/innovation.\u003C\/p\u003E\u003Cp class=\u0022p2\u0022\u003E\u201cMost companies\u2019 actions are driven by customer choices, such as what to buy, how long to use, and where to dispose,\u201d he says. \u201cIf we want firms to go beyond the basic measures required by regulations, we need to understand not only the kinds of company practices that help create and sustain firm value, but also customer behavior.\u201d\u003C\/p\u003E\u003Cp class=\u0022p2\u0022\u003E\u201cFor example, we need to look at transactional data to understand the prices that consumers actually pay for green products as well as their opinions of these products,\u201d he adds. \u201cAlso, are there technological or business solutions to improve the economic lives of products?\u201d\u003C\/p\u003E\u003Cp class=\u0022p2\u0022\u003EOther professors integral to the development of the Center include Manpreet Hora (Operations Management), Omar Rodriguez-Vila (Marketing), Wade Chumney and Lucien Dhooge (Law and Ethics), and Terry Blum (Organizational Behavior; Institute for Leadership and Entrepreneurship).\u003C\/p\u003E\u003Cp class=\u0022p2\u0022\u003E\u0026nbsp;\u003C\/p\u003E","summary":null,"format":"limited_html"}],"field_subtitle":"","field_summary":[{"value":"\u003Cp\u003EThe Scheller College of Business created a Center on Business Strategies for Sustainability in early 2013. An increase in interest from students and faculty keeps it growing.\u003C\/p\u003E","format":"limited_html"}],"field_summary_sentence":[{"value":"The Scheller College of Business created a Center on Business Strategies for Sustainability in early 2013."}],"uid":"27469","created_gmt":"2014-01-16 15:21:03","changed_gmt":"2016-10-08 03:15:40","author":"Kristen Bailey","boilerplate_text":"","field_publication":"","field_article_url":"","dateline":{"date":"2014-01-16T00:00:00-05:00","iso_date":"2014-01-16T00:00:00-05:00","tz":"America\/New_York"},"extras":[],"hg_media":{"268931":{"id":"268931","type":"image","title":"Beril Toktay","body":null,"created":"1449244077","gmt_created":"2015-12-04 15:47:57","changed":"1475894959","gmt_changed":"2016-10-08 02:49:19","alt":"Beril Toktay","file":{"fid":"198588","name":"beril_0.jpg","image_path":"\/sites\/default\/files\/images\/beril_0_0.jpg","image_full_path":"http:\/\/www.tlwarc.hg.gatech.edu\/\/sites\/default\/files\/images\/beril_0_0.jpg","mime":"image\/jpeg","size":5833957,"path_740":"http:\/\/www.tlwarc.hg.gatech.edu\/sites\/default\/files\/styles\/740xx_scale\/public\/images\/beril_0_0.jpg?itok=bbu6o_YE"}},"268941":{"id":"268941","type":"image","title":"Sophia Bromfield","body":null,"created":"1449244077","gmt_created":"2015-12-04 15:47:57","changed":"1475894959","gmt_changed":"2016-10-08 02:49:19","alt":"Sophia Bromfield","file":{"fid":"198589","name":"sophia_0.jpg","image_path":"\/sites\/default\/files\/images\/sophia_0_0.jpg","image_full_path":"http:\/\/www.tlwarc.hg.gatech.edu\/\/sites\/default\/files\/images\/sophia_0_0.jpg","mime":"image\/jpeg","size":4911213,"path_740":"http:\/\/www.tlwarc.hg.gatech.edu\/sites\/default\/files\/styles\/740xx_scale\/public\/images\/sophia_0_0.jpg?itok=0bwBxR7p"}}},"media_ids":["268931","268941"],"related_links":[{"url":"http:\/\/scheller.gatech.edu\/","title":"College of Management"}],"groups":[{"id":"1274","name":"Scheller College of Business"}],"categories":[],"keywords":[{"id":"60101","name":"Center on Business Strategies for Sustainability"},{"id":"479","name":"Green Buzz"},{"id":"167089","name":"Scheller College of Business"},{"id":"166890","name":"sustainability"}],"core_research_areas":[],"news_room_topics":[],"event_categories":[],"invited_audience":[],"affiliations":[],"classification":[],"areas_of_expertise":[],"news_and_recent_appearances":[],"phone":[],"contact":[{"value":"\u003Cp\u003E\u003Ca href=\u0022mailto:brad.dixon@scheller.gatech.edu\u0022\u003EBrad Dixon\u003C\/a\u003E\u003Cbr \/\u003EScheller College of Business\u003C\/p\u003E","format":"limited_html"}],"email":[],"slides":[],"orientation":[],"userdata":""}}}