What could Wal-Mart, the world's largest retailer, and Seventh Generation, producer of environmentally safe household products, have in common? According to Wal-Mart Vice President Andy Ruben and Seventh Generation President Jeffrey Hollender, each company is committed to business sustainability. Both men spoke at the Tuck School's fourth annual student-run Business Sustainability Initiative conference, held on February 24. The conference message was clear: when it comes to sustainable business practices, don't just think outside the box—re-create it.
"To enact durable change requires incorporating sustainability ideas in the structure of organizations and the design of markets," said Whit Rappole T'06, who, with Shruti Sehra T'06, organized the conference, titled Building Sustainability into Markets and Businesses. Tuck's Allwin Initiative for Corporate Citizenship co-sponsored the event with the Thayer School of Engineering at Dartmouth and Vermont Law School.
Keynote speaker Ruben, vice president of corporate strategy/sustainability for Wal-Mart Stores, Inc., outlined Wal-Mart's goals to be energy efficient, produce zero waste, and support products that sustain resources. Quoting business guru Peter Drucker's remark that "every single pressing social and global issue of our time is a business opportunity," Ruben described Wal-Mart's push to reduce product packaging and broaden its line of organic cotton products. "By becoming more environmentally responsible and thus more efficient, the savings can be passed on to the consumer," he said. Ruben said more corporations need to "see what doesn't make sense"—such as pollution, overfishing, and other unintended consequences of production—and create business opportunities to provide solutions. But first, he said, companies will have to change their mindset.
Ruben's comments were well received by the audience, but Hollender, the event's second keynote speaker, took issue with the giant corporation. "I'm surprised you let Andy Ruben off so easily!" he said. Hollender—founder, president, and corporate responsibility officer of Seventh Generation, Inc.—said he will not supply the company's line of eco-friendly household products to the megacorporation until it demonstrates a stronger commitment to social responsibility. Hollender said more companies are discovering that socially and environmentally irresponsible behavior in pursuit of profits can be costly and damage their brand image, employee loyalty, and stock value. Corporations must rethink the principles and purpose of business and not allow themselves to be driven solely by the accumulation of wealth, Hollender noted, adding that he believes change can happen. "I'm an optimist," he said.
So is David Green, founder and executive director of Project Impact and a participant on the "Challenges and Successes of Social Entrepreneurship" panel. He wanted to find a way to produce sustainable medical technology to help the poor in India. He collaborated with Aravind Eye Hospital to manufacture affordable sutures and intraocular lenses. Today he produces the lenses for $1 and sells them for $4—the same lenses that sell elsewhere in the world for $300—and makes it work through a tiered pricing system. Green noted that the high margins of most medical companies have kept them from being similarly socially transforming.
Dana Dakin finances small entrepreneurial ventures in Ghana, West Africa. She is founder and president of WomensTrust, Inc., and was one of two panelists to answer the question, "Can microfinance achieve financial and mission success?" Dakin, who sold her car to provide initial funding for the program, charges 15 percent interest for short-term loans and takes clients who don't pay to small-claims court. But the money her enterprise makes is funneled directly to clients, ultimately empowering women through job creation. "It's about investing in people," she said.
"It is important for us as future business leaders to understand the true trade-offs of the decisions we make," said Sehra, noting that the organizers incorporated the message of sustainability into other parts of the conference as well—participants ate a luncheon primarily composed of organic foods from local vendors and took advantage of the compost bins in the dining hall.
