BUS604 Study Guide

Navigating this Study Guide

Study Guide Structure

In this study guide, the sections in each unit (1a., 1b., etc.) are the learning outcomes of that unit. 

Beneath each learning outcome are:

• questions for you to answer independently;
• a brief summary of the learning outcome topic; and
• and resources related to the learning outcome. 

At the end of each unit, there is also a list of suggested vocabulary words.

How to Use this Study Guide

1. Review the entire course by reading the learning outcome summaries and suggested resources.
2. Test your understanding of the course information by answering questions related to each unit learning outcome and defining and memorizing the vocabulary words at the end of each unit.

By clicking on the gear button on the top right of the screen, you can print the study guide. Then you can make notes, highlight, and underline as you work.

Through reviewing and completing the study guide, you should gain a deeper understanding of each learning outcome in the course and be better prepared for the final exam!

Unit 1: Definitions and Concepts

• What is innovation in products and services?
• What is social and environmental sustainability?
• How can innovation and sustainability be combined?
  

For a business to remain competitive, innovation is essential to remain relevant in the marketplace. Innovation is the bringing of something new and desirable to customers. Today, innovation requires a focus on improving products and services and the social and environmental effects of how they are designed, produced, and delivered. Sustainability considers the needs of the present and future generations by creating value across the triple bottom line: people, planet, and profits. The combination of these concepts is referred to as sustainable innovation.

Traditional business practices adopted the mindset that the global commons were limitless. The global commons are the oceans, atmosphere, Antarctica, outer space, and environmental assets that support the planet's health, such as land, forests, and freshwater. Today, businesses recognize the interconnectedness of the commons and that global cooperation is necessary to preserve these valuable resources to achieve environmental sustainability. Likewise, social sustainability, or the bettering of opportunities for people to prosper, is essential for societies and businesses to thrive.
 
To review, see An Economic Case for Protecting the Planet, Introduction to Sustainable Business, and Sustainability Innovation in Business.

• What does it mean to be a sustainable business?
• How can businesses take action to advance social and environmental well-being?
• How do worldviews and values affect sustainability outcomes?
  

Sustainable businesses seek innovative breakthroughs that enhance the well-being of societies and the planet. To succeed, businesses adopt practices and processes such as biomimicry (innovation inspired by nature), circular economy (a model of production and consumption that promotes zero waste), life cycle design (integrating sustainability into the product design and life cycle), and more. These practices reflect systems thinking and considering how one action has a positive or negative effect on another, versus linear thinking represented by straight-line take-make-waste approaches.

Sustainability requires a paradigm shift from the drive for profits that appease shareholders, such as investors, to multi-value creation that works for all stakeholders, represented by those that can either affect or be affected by the actions and outcomes of an organization. The shift is seen as a change in worldviews and values from a competitive "winner takes all" approach to one where collaboration and knowledge sharing across industries and supply chains are preferred.

To review, see:

• The Science of Sustainability
  
• Framing Sustainability Innovation and Entrepreneurship
• Biomimicry in Action
• The Food Systems Approach
  
• The Supply Chain
  
• The Circular Economy: From a Linear to a Circular Economy

• How is unsustainability an ethical issue?
• What ethical responsibilities do businesses have when producing and marketing goods?
• What roles do businesses have in creating equity and wellbeing?
  

Businesses today are caught in an ethical production-consumption paradox. The traditional way to grow a business is to reduce costs in the production process or increase consumer consumption. Cost-cutting has contributed to unsustainability by using cheaper ways to create goods, leading to more pollution and low wages. Consumer consumption has led to more waste in landfills and throughout the global commons. The ethical challenge for businesses is to "do well by doing good" with sustainable innovation as a driver of business strategy. Doing well refers to economic viability or generating profits, while doing good refers to promoting equity, inclusion, diversity, fair wages, health, wellness, biodiversity, clean air, and safe water. We can even go as far as to say that sustainability is ethical business.

To review, see Sustainability Innovation in Business, Marketing and Sustainability: Business as Usual or Changing Worldviews?, and Case Study: Exploratory Assessment of Sustainability Capability of Textile and Apparel Corporations in China.

Unit 1 Vocabulary

This vocabulary list includes terms you will need to know to successfully complete the final exam.

• biomimicry
• carbon footprint
• circular economy
• global commons
• innovation
• life cycle design
• linear thinking
• multi-value creation
• social sustainability
• sustainability
• sustainable innovation
• systems thinking
• triple bottom line

Study Session: Unit 1, Part 1

Feel free to review the rest of Unit 1 of the Study Guide at your own pace.

Study Session: Unit 1, Part 2

Feel free to review the rest of Unit 1 of the Study Guide at your own pace.

Study Session: Unit 1, Part 3

Feel free to review the rest of Unit 1 of the Study Guide at your own pace.

Unit 2: Sustainability Policies, Practices, and Leadership

• What is the interplay between governments and businesses from the local to global levels as it relates to developing sustainability policies and practices?
• How do frameworks like the United Nations Sustainable Development Goals (SDGs) unify efforts for organizations to be more sustainable?
• How do certifications like LEED (Leadership in Energy and Environmental Design) support businesses in becoming more sustainable?
  

Sustainability is essential to societal and planetary wellbeing. Since we all share the same planet, sustainability is in the interest of all citizens. Therefore, it makes sense that governments, whose role is to serve and protect people, will actively make policies and shape business practices. Likewise, it's in the interest of businesses to take interactive and proactive responses by participating in the policymaking process by offering valuable insights and leading the way in best practices.

Frameworks like the United Nations Sustainable Development Goals (SDGs) are based on decades of experience helping nations develop economically and responsibly. In 2015, the 17 goals were adopted by all member states of the UN, providing a roadmap for governments, businesses, and individuals to follow for achieving global social and environmental sustainability targets by the year 2030. Certifications like LEED, offered by the United States Green Building Council (USGBC), are another way to promote widespread sustainability practices.

To review, see Government, Public Policy, and Sustainable Business, Implementing the U.N. Sustainable Development Goals (SDGs), and The Growing Demand for Transparency in All Building Spaces.

2b. Appraise the results and impacts of innovation combined with sustainability policies and practices such as product improvements and economic outcomes 

• What are real-world examples of businesses that have transformed products and processes to be both sustainable and profitable?
• How can organizations effectively measure their impact on social and environmental sustainability?
• How can sustainability policies and practices lead to competitive strengths?
  

Organizations like Unilever offer examples of how companies can align their purpose, strategy, and products to be both sustainable and profitable. Research reports crafted by voices from government, business, educational institutions, and civil society have demonstrated the business case for achieving the SDGs, also known as the Global Goals. Innovative inter-organizational collaborations between the public and private sectors have also created better outcomes for people and the planet.

Sustainable business practices support building stronger brands and improving workplace culture and employee retention. A continuing challenge is effectively measuring environmental, social, and governance (ESG) performance and bringing greater alignment across various impact reporting frameworks.

To review, see:

• Global Goals That Work
• Business and Sustainable Development Commission Report
• Case Study: A Vision for Unilever
• Creative Community Spaces

2c. Recognize social and environmental ethical issues, such as equity, wellbeing, production and consumption, arising from innovation and sustainability policies and practices 

• What leadership qualities and characteristics are desirable for supporting responsible and successful sustainability outcomes?
• How can businesses connect with citizens and local knowledge to help create positive change?
• How can footprints help a company understand its ethical issues?
  

Traditional views by government and business leaders held that resource constraints caused a tradeoff between economic output and societal and environmental protection. Today, leaders who promote innovation and sustainability believe they can successfully add value to societal, environmental, and financial well-being without tradeoffs. Governmental and business leaders must work together to invest in programs that support long-term positive change for all stakeholders, including establishing processes that engage local citizens in identifying issues and solving problems. Desirable leadership qualities promote cooperation and collaboration across sectors and the conviction to follow through with change initiatives that can take many years to achieve.

Footprints are a way companies can understand their positive and negative impacts on society and the environment. Earth Overshoot Day reminds us that collectively, we are demanding 1.6 times the Earth's available supply of natural resources each year, which is unethical and unsustainable.

To review, see:

• The Tradeoff Between Economic Output and Environmental Protection
• The Responsible Society
• The Footprint of Companies

Unit 2 Vocabulary

This vocabulary list includes terms you will need to know to successfully complete the final exam.

• Earth Overshoot Day
• ESG
• footprints
• Global Goals
• interactive response
• LEED
• Sustainable Development Goals

Study Session: Unit 2, Part 1

Feel free to review the rest of Unit 2 of the Study Guide at your own pace.

Study Session: Unit 2, Part 2

Feel free to review the rest of Unit 2 of the Study Guide at your own pace.

Unit 3: Integrating Entrepreneurship with Innovation and Sustainability

• How can entrepreneurs connect the innovative idea/vision with the operational capabilities needed for success?
• How can entrepreneurship help solve social problems?
• In what ways has sustainability innovation led to new business models?
  

It's one thing to have an innovative idea, yet it's a much bigger undertaking to bring an idea successfully to market. The entrepreneurial process bridges the idea/vision with operational capabilities such as strategic planning and implementation. Together, these can be referred to as a generic concept, which is the architecture for the entrepreneurial process. Another way to approach the entrepreneurial process is to connect an opportunity with an entrepreneurial team, product concept, resources, and entry strategy.

Combining sustainability and entrepreneurship has led to new circular business models and the circular economy that require new ways of thinking about value capture. These circular approaches consider ways to produce goods while reintegrating waste back into the value chain and by using resources for the longest time possible. Social entrepreneurs help solve societal issues by applying a business model. These can be in the form of a for-profit business like a corporation or a nonprofit entity that receives much of its income through donations. The key characteristic of social entrepreneurship is generating all or some of their income through the sales of goods or services, which then help fund social solutions.

To review, see:

• The Concept as a Generic Factor
• Circular Business Models
• Entrepreneurship, Innovation, and Sustainable Business
• Towards Social Sustainability

3b. Identify sustainability needs in society and the marketplace by finding opportunities for sustainable entrepreneurship

• In what ways do sustainability entrepreneurs' approaches need identification and problem solving differently?
• How can exploring nontraditional techniques like weak ties help entrepreneurs find new market opportunities?
• How can traditional strategy tools like PESTEL and SWOT help entrepreneurs identify sustainability needs and opportunities?
  

Albert Einstein is credited for saying that "we can't solve the world's problems by using the same kind of thinking we used when we created them". For sustainability entrepreneurs, this means exploring and applying nontraditional techniques that can open up new ways of viewing and solving problems. Techniques like weak ties (seeking new and diverse information by developing nontraditional relationships), molecular thinking (focusing on invisible material and components), adaptive collaboration (maximizing the value of close relationships through value-added networks and strategic collaborations), and radical incrementalism (undertaking small, carefully selected steps that result in learning and may lead to radical cumulative change), can lead to innovative breakthroughs and new opportunities in sustainable entrepreneurship.

When evaluating market needs and opportunities, entrepreneurs can apply classic business tools such as PESTEL, which addresses external factors influencing an organization, and Porter's Five Forces Model, which frames the competitive environment. Additional tools such as SWOT, a situational analysis and strategic planning tool, and VRIO, which helps determine the competitive potential, are also useful.

Sustainable businesses may view responsibility and opportunity differently than unsustainable businesses. A sustainable business will see itself as responsible for managing its own externalities (the problems it creates through the operations of its business), such as greenhouse gasses or plastic pollution. A sustainable business may also see opportunities by creating solutions to the externalities produced by other companies.

To review, see Entrepreneurship and Sustainability Innovation Analysis, Responsibility and Opportunity, and DIY Toolkit: Product Solutions.

3c. Develop creative skills such as idea generation and product design improvements that enhance innovation

• How can entrepreneurs enhance and develop creativity skills?
• What leadership practices and mindsets are effective in creating a culture of innovation?

Creativity in product design is a skill set for leaders and teams to understand and develop. Creativity starts with having a mindset led by optimism such as an abundance mindset compared to one of pessimism and scarcity. Leading teams to foster creativity and innovation is important in reimagining a better world. Techniques such as Creative Workshop (an opportunity to bring together and collaborate with several different people involved with or affected by your work), Fast Idea Generator (a way to generate ideas by looking at a problem or opportunity from a range of perspectives), and Thinking Hats (allow a range of different viewpoints and perspectives to be brought into a discussion) can help teams develop breakthrough ideas.

Other techniques that help with discovering and refining product solutions for people and the planet are Evidence Planning, which is a way to define and share what you're trying to do, and the assumptions and evidence upon which this is based, and Business Model Canvas, a one-page visual representation of what and how you do your business. Another is the tool called Problem Definition, which works both to open a problem up and to help define the wider context and associated issues.

To review, see:

• Abundance is Our Future
• Creativity Training in Organizations
• DIY Toolkit: Innovation
• DIY Toolkit: Product Solutions

3d. recognize social and environmental ethical issues, such as equity, wellbeing, production and consumption, arising from innovation and sustainability product development 

• How can entrepreneurship combined with innovation and sustainability help solve ethical business issues?
• How can digital technology contribute to sustainable innovation?
• How does impact investing compare to traditional investing?
  

Based on the definition of sustainability, which is meeting our needs for today without compromising the ability of future generations to meet their own needs, sustainability or lack thereof is an ethical issue. Unsustainability is unethical. The traditional mindset of "take, make, waste" and a view of Earth as unlimited or without boundaries is unsustainable. Disconnecting business practices from their impact on people and society is unsustainable and unethical.
 
Using their business and creativity skills, entrepreneurs can play an important role in imagining and implementing sustainable products and services. Digital technology can help entrepreneurs find ways to solve social issues such as health care, refugees and migration, and the environment. The growing field of impact investing finds ways to successfully connect financial values with the public good.
 
To review, see What Next for Digital Social Innovation? and Impact Investing and Social Renewal.

Unit 3 Vocabulary

This vocabulary list includes terms you will need to know to successfully complete the final exam.

• adaptive collaboration
• Business Model Canvas
• circular business model
• circular economy
• Creative Workshop
• Evidence Planning
• externalities
• Fast Idea Generator
• generic concept
• impact investing
• molecular thinking
• PESTEL
• Porter's Five Forces Model
• Problem Definition
• radical incrementalism
• social entrepreneurs
• SWOT
• Thinking Hats
• VRIO
• weak ties

Study Session: Unit 3, Part 1

Feel free to review the rest of Unit 3 of the Study Guide at your own pace.

Study Session: Unit 3, Part 2

Feel free to review the rest of Unit 3 of the Study Guide at your own pace.

Study Session: Unit 3, Part 3

Feel free to review the rest of Unit 3 of the Study Guide at your own pace.

Course Review

• Final Exam Review Part 1
• Final Exam Review Part 2