17028 Financial Aspects of Sustainability, 5 sp
This course examines the causes and consequences of un-sustainable business practice as well as some of the ways that companies are finding to reduce their impact on the environment and communities. Since corporations are major contributors to our environmental challenges, they must also be part of the solution. The impact of stakeholders, including investors and consumers, and concerned citizens is examined as these groups help to determine what actions companies will take to address the challenges of sustainability.
The course covers:
- common types of market failure including negative and positive externalities, the commons problem, inter-generational equity, and the perspectives of behavioral economics
- standard responses to market failures - regulation, taxes and trading
- ethics of free markets and expected utility theory of behavior, social contract and the stakeholder perspective of business ethics, and John Rawls’ veil of ignorance
- major models of sustainable systems, including – life cycle analysis, closed loop design, The Natural Step, Cradle to Cradle, socially responsible investing, Bottom of the Pyramid, benefits corporations, and social entrepreneurship.
- impacts of climate change, over-fishing, water challenges
- policy responses to climate change. E.g., Kyoto and Clean Development Mechanisms
- the role of consumers and investors in urging companies to become greener.
- alternative energy sources and generation, their status, and long term prospects.
The course can be taken as part of the Study Module in Corporate Responsibility.
You have insights of the common types of market failure including negative and positive externalities, the commons problem, inter-generational equity, and the perspectives of behavioral economics, and are familiar with the ethics of free markets and expected utility theory of behavior, social contract and the stakeholder perspective of business ethics, and John Rawls’ veil of ignorance.
- calculate and comment on a carbon footprint
- comment on the benefits of closed loop design
- cite specific examples illustrating market failures
- cite specific evidence, trends and consequences of climate change
- discuss the pros and cons of command-and-control, Pigouvian taxes, and cap-and-trade as means to correct the problem of negative externalities
- calculate the efficiency gains from a cap-and-trade system over command-and-control
- identify scope one, two and three emissions in the context of sustainability reporting
- describe an alternative energy source, its pros and cons, and its future prospects for viability
Completed bachelor thesis for Hanken degree students. For other students, completed 180 ECTS.
134 hours divided into
Scheduled hours: 32 h
Non-scheduled work: 102 h
- Assignments 40 h
- Preparing for lectures and final exam 62 h
Lecture; group case analyses; research presentations; in-class videos, assignments and discussions.
- Thaler, R. H. & Sunstein, C. R. (2008). Nudge: Improving decisions using the architecture of choice. New Haven, Conn: Yale University Press.
- Russo, M. V. (2010). Companies on a mission: Entrepreneurial strategies for growing sustainably, responsibly, and profitably. Stanford, Calif: Stanford Business Books.
- Laszlo, C., & Zhexembayeva, N. (2011). Embedded sustainability: The next big competitive advantage.Stanford, California : Stanford Business Books
- Friedman, M. (1970). The Social Responsibility of Business Is to Increase Its Profits. The New York Times Magazine, September 13, 1970.
- Byrd, J. & Hickman, K. (2012). Behavioral Economics and Corporate Sustainability. The Sustainability Review.
- Prahalad, C. K. (2002) The Fortune at the Bottom of the Pyramid. Strategy + Business, First Quarter 2002, Issue 26.
- Pelley, S. (2008). The electronic wasteland. 60 Minutes.
- Fox, L., & Leonard, A. (2007). The Story of Stuff. The Story of Stuff Project. http://www.storyofstuff.org/movies-all/story-of-stuff/.
- Kenner, R. (2009). Food Inc. [Motion Picture]. United States, Magnolia Pictures.
- Bello, G. V., Vaz, M. T., Maria Vaz Photography, & Del Bello Pictures. (2007). A convenient truth: Urbansolutions from Curitiba, Brazil.
- Quadir, I. (2005). How mobile phones can fight poverty. TED Talk filmed July 2005. Oxford, England. (“Graneen Phone TED Talk”)
- Anderson, R. (2009). The business logic of sustainability. TED talk filmed February 2009. (“Ray Anderson TED Talk.”)
Other materials assigned by the instructor.
First or second year of master's studies.
Open university quota: 3
Quota for JOO-students: 3