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CMU MBA 660 - summary

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“SUMMARY OF SUSTAINABILITY SCIENCE AND WATER: A TEST OFCORPORATE LEADERSHIP”The article “Sustainability Science and Water: A Test of Corporate Leadership” iswritten by “Miller/Wiek/Pisani”. The article is how systematic leadership could drivetowards sustainability of an organization. The article mentions that self-perception of acompany about its sustainability is not always true. The mere participation of the mostinfluential corporations is not enough but also their sustainability leadership is necessaryfrom those organizations to drive the global economy towards sustainability.The article provides with two examples of Nestle and Coca-Cola who offered thesystematic leadership that helped in achieving sustainability. To support this view that theysucceeded in their sustainable operations, the article introduces “science and itsmethodology” to present a framework that helps in finding out what those leaders areachieving. “Natural philosophy” had described this connection between the knowledge andsustainability science earlier. Now science or physical science offers a framework calledsustainability science framework to know how the natural world with limited resources couldsupport sustainable development.The article then critically explains two well-known codes of corporate conduct- “theUnited Nations Global Compact (UNGC) and the Global Reporting Initiative (GRI)”. Thefirst one UNGC has a set of 10 principles as guidelines for corporate conduct. These are justguidelines and are not to be supposed as standards of corporate conduct. The article stressesthat both of these could not offer a best suited or widely followed set of standards. The 10principles are categorized into “anti-corruption, labor, environment and human rights”. Thearticle then explains the complex nature of the GRI that makes it to be sustainable in itsstartup and maintenance. The article also provides an evaluation of both of these codes asinstitutions and suggests some ways to expand their memberships and to attract manyparticipants. The article finally remarks those as “institutionalless” as they are institutionallyweak.The article then presents the framework to provide legitimacy which is lacking in theabove mentioned codes. Its methodology with its practicality offers legitimacy. Thus Sciencehelps in solving international disputes and helps the global corporate leaders to achievesustainability. This article provides the research of authors about two global corporate leadersCoca-Cola in India and Nestle in the United States. The article presents 5 questions to supporttheir research studies. The answers to the above questions offer knowledge about how thecorporate leadership could do with the sustainability problems like the water shortages inIndia concerning the Coca-Cola plants.The article then discusses the case of Coca-Cola plants in India where there wereagitations against the company in Kerala that it was responsible for water shortages but it wasfound that the droughts caused shortages and not the excessive use of water by the company.So the company elected an NGO called TERI to report on this challenge and also a third partyto monitor TERI. The company refused to use the recommendations made by TERI and ittook its own decision of its linking with other third parties to develop projects on waterconservation and thus they evolved as a leader in addressing a great sustainability challenge.This analysis made the researches to modify the 5 questions mentioned earlier. The articlethen explains about the factors involved in answering each of those questions that explainhow global corporates’ leadership could help in achieving sustainability development. Thus itdescribes them as the basic elements of the framework.The article next proceeds with the second case of Nestle operating to setup a bottlingplant of bottled water in America. It too faced agitations against its setup and also there werelegal suits against it in the local court. Finally the Michigan Supreme court was in favor ofNestle and it could gain a long term lease on land and cheap permits for water on yearly basisand many other facilities to setup its plant. But there were some institutional rules involved inthe case. The first was a threat about the decision of the court which was totally resolvedlater. The second was that the lake’s water was not allowed to be taken out of that area. Laterthis law became flexible allowing water in restricted quantities. The article then proposesfuture studies to be taken to complete the research on the framework and the importance ofdata in achieving this. The two cases presented offer enough data to prove the validity of thisframework presented. Historical data could have added to their findings. Overall this articlegives a notion that corporate conduct and sustainable development could be assessed bysustainability


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CMU MBA 660 - summary

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