New developments in business sustainability education Simon Handelsman, PhD, PEng, and Christie Stephenson, MEd -Simon Handelsman, PhD, PEng Adj. Prof., Norman B. Keevil Institute of Mining Engineering University of British Columbia 1450 Pennyfarthing Drive, #1101 Vancouver, British Columbia V6J 4X8 Canada [email protected] Tel: +1-604-261-2337 Mobile: +1-604-440-0711 Fax: +1-604-357-1143

Christie Stephenson, MEd Executive Director, Peter P. Dhillon Centre for Business Ethics Sauder School of Business, University of British Columbia 2053 Main Mall, Vancouver, BC V6T 1Z2, Canada [email protected] Tel: +1-778-918-3325

Topic Area: 10. Business sustainability education; Discipline: Others: education

The 6th World Business Ethics Forum 6,486 words including this page Dr. Simon Handelsman is an international minerals development engineer and advisor. Working for the United Nations Mineral Resources Group, a hundred-plus advisory missions took him to over forty developing countries during ten years. He is an adjunct professor in the mining department at the University of British Columbia. Prior to joining Sauder in 2016, Ms. Stephenson spent more than 15 years involved in socially responsible investing focused on corporate environmental, social and governance (ESG) risk evaluation and mitigation.

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New developments in business sustainability education

New developments in business sustainability education Abstract The need for more research and dialogue on ethical issues is recognized. While shareholders’ profits remains one of the main focuses; many other factors are influencing business strategies. A role when teaching ethics in a business school is to seek opportunities for institutional change to ensure that students are getting the ethical education they need and that ethics is valued. Entry-level university business students demand more education about responsible business practices to prepare them to address ethical issues in their future careers. Graduate business students expect business leaders to lead responsibly and seek to incorporate environmental sustainability into their careers. Companies seek young leaders able to address the complexity of business responsibility. Much remains to be done despite progress towards ensuring businesses are furthering social and environmental solutions not problems. At the University of British Columbia’s ethics centre the four priorities are (a) academic programming in ethics and values-based business –undergraduate and graduate curriculum and executive education; (b) outreach and engagement with the business community and public to advance discussion and sharing of best practices related to ethics and values; (c) supporting student initiatives connected to sustainability, social enterprise, responsible investing, philanthropy and other valuesbased activities; and (d) coordinating scholarly research to investigate and influence ethical practices across business disciplines. This paper examines business sustainability challenges and new developments for education to act as a catalyst for advancing business ethics and responsibility.

Keywords: sustainability, business ethics, values, responsibility, education, social issues.

Introduction A pilot business ethics mapping project of the Canadian Business Ethics Research Network (CBERN) identified key ethical issues facing resources industry (mining, fisheries, forestry, agriculture, energy sectors) and other sectors in British Columbia and the Yukon (CBERN 2009). The nature and scope of the findings indicated a need for education and dialogue to improve business performance on ethical issues. Traditionally the primary goal of business has been to maximize shareholder profits (Friedman 1962). Although shareholders’ profits remains one of the main focuses; many other factors are influencing business strategies employed by companies, some of which issues have acquired a pivotal role in a

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New developments in business sustainability education company’s business model, such as, the needs of the community; environmental impact; health, safety and compensation standards; and the international image of the company. The importance of understanding social issues and the points of conflict between mining and society was recognized and introduced into undergraduate studies through such courses as Mining and Society. In 2009, much of an MBA schools’ culture message to students was that their sole job was to make as much money as possible. The counter-culture rule was said to be that ethics can and do matter. One of the roles of teaching ethics in a business school was understood to be the seeking of opportunities for institutional change with the challenge to answer two questions: Are the students getting the ethical education they need? Is ethics being valued? In 2016, a new center for business ethics was set up in the business school at the University of British Columbia. The centre’s objective is to transform students’ experience and the current conversation around ethics through a comprehensive approach to the study, teaching and promotion of business ethics. This objective will help increase literacy about the complex issues of sustainability and ethics in business. Further, it will support business and future business leaders dealing with issues related to sustainability, corporate social responsibility, ethical leadership and behaviour, responsible investing, business and human rights, etc. These days many entry level business students realize the importance of and are interested in business responsibility and ethics. They are demanding more education about responsible business practices. They want to be prepared to address ethical issues in their future careers. Students are looking to make a positive impact on society by incorporating values in their business careers. A recent U.S. study of graduate business students found that they expect business leaders to lead responsibly and that they seek to incorporate environmental sustainability into their careers, in whatever role or industry they work (The Aspen Institute 2008). The business community has an increasing need for graduates who understand the importance of business responsibility, and the risks of not doing enough to protect vulnerable people and the environment. In the future, business will encompass environmental and social responsibility. Companies are looking for young leaders able to address the complexity of business responsibility. Many alumni and donors are supporting research and education that cultivates responsible leadership. Available funding is increasing for research focused on social issues in business and management. Despite progress made towards ensuring businesses are furthering social and environmental solutions to problems, much remains. The four pillars identified as priorities are (a) academic programming in

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New developments in business sustainability education ethics and values-based business –undergraduate and graduate curriculum and executive education; (b) outreach and engagement with the business community and public to advance discussion and sharing of best practices related to ethics and values; (c) supporting student initiatives connected to sustainability, social enterprise, responsible investing, philanthropy and other values-based activities; and (d) coordinating scholarly research to investigate and influence ethical practices across business disciplines. This paper examines business sustainability challenges and new developments for education to act as a catalyst for advancing business ethics and responsibility.

Business Ethics Mapping Project In 2009, a pilot Business Ethics Mapping project was carried out to identify the key ethical issues faced by the resources industry. The survey identified the main issues of concern shown in Fig. 1, of which ten major topics were included: extractive industry companies overseas and accountability requirements; human rights; government policies versus self governance; accountability; effects of economic crisis; ecological sustainability; First Nations relations with government, mining companies; impact of capital markets; emerging markets; and philanthropy. These topics suggest some of the areas where education and dialogue could usefully become a starting point to improve business performance on ethical issues. Extractive industry companies overseas and human rights Extractive industry companies were alleged to be complicit in violations of human rights and environmental best practices in developing countries (Canada 2005; CCSRC 2009; UK 2009 & 2014). Some 57 cases in 30 developing countries were cited which included complaints about security, indigenous peoples, health & safety, property, life & liberty, cruel & unusual punishment and access to justice (Handelsman 2014). In an effort to promote accountability, environmental and social impacts of a mine in the remote highlands of Papua New Guinea owned by a Canadian company are being assessed in 2016 (HRI 2016). Canadian laws for sustainability and corporate social responsibility do not apply directly to Canadian extractive companies operating overseas. An attempt to enact Canadian legislation holding Canadian companies accountable for environmental and social impacts of their operations overseas was unsuccessful (Simons & Mackin 2010). Several civil claims have been filed in Canadian courts against companies listed on Canadian stock exchanges. These claims concerned companies’ operations in countries overseas such as Eritrea, Guatemala, and China countries (Bennett 2016). The SEC was asked to investigate one allegation of failure to disclose material information necessary for investors (Imai 2016). A Mining and Society course in UBC’s mining department is designed to equip its

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New developments in business sustainability education mining engineering students to better understand and be able to cope with social issues around conflicts between mining and society. Government policies and self governance Basic guidelines which companies need to follow when doing business in a country are outlined in host and home Government policies and regulations. Some companies promote self governance, such as outlines of operating principles prepared by a company to promote a higher moral value, improved public image, international acceptance, reduced environment impact, etc. There is a debate as to whether self-governance or government policies are more effective. The question arises whether the government should be more prominent and strict in enforcing regulations. Self-governing structures such as the Extractive Industries Transparency Initiative (EITI) have led some to ask whether there is a need for an international treaty. Is it possible to have an independent body to monitor the effectiveness of corporate self-governance policies? How to prevent corruption: Are international laws required to regulate corporate behaviour? Business goals In the past, the primary goal of business identified was to maximize shareholder profits (Friedman 1962 & 1970). These days, while shareholders’ profits are essential, other factors influencing corporate business strategies include: community needs; environmental impact; health, safety and compensation standards; a company’s International image; underlying factors; transparency and accountability (key business ethics neglected at times); sustainability and removing impediments thereto. Some companies are re-examining their business style to answer the question why they are in business. There is an evolving need for a fundamental change in understanding and attitude towards a business structure where ethical business practices are the way of doing business rather than guidelines. Indigenous and aboriginal peoples Critical issues revolve around relations between indigenous and aboriginal peoples and corporations, government, state, etc. Resources developments such as mining, forestry, oil and gas can have very significant social and cultural impacts. Increased resource development is perceived by many aboriginal peoples’ communities as putting their cultural survival at risk. Mechanisms are required to understand a development’s socio-cultural impacts. To prevent corporate-related abuse of indigenous and aboriginal peoples’ rights it is necessary to identify the State obligations. Questions to be addressed include whether there should be norms for

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New developments in business sustainability education trade agreements and negotiations between the corporations and indigenous and aboriginal communities. Often efforts are made at the beginning of a project to develop healthy relations between the corporations and the communities, however, once the project is up and running, they may be given less importance. Ecological sustainability Sustainable development requires limited natural resources are used judiciously. While extracting resources it may difficult to precisely quantify the amount of any damage caused to the environment. Mitigation measures taken by companies as part of their corporate social responsibility programmes include land reclamation, sustainable mining, planting trees, restoring original habitat. If cost of the damage is quantified, the business could be made responsible to payback that capital amount. Capital markets impacts Short-term performance is rewarded in capital markets by bonuses, dividends, and company stocks. Corporate performance metrics are based on quarterly and annual reports. This effectively minimizes the potential for rewards dependent upon long-term performance and planning, while companies have tended to concentrate on short-term goals. Hence, ways need to be found to establish a long-term corporate agenda which, in addition to rewarding profits, values practices such as ethical investments, sustainability, community involvement, and consumer appreciation. Other issues involved with capital markets include: pension funds using ethical investments as a risk management tool; using the UN principles on responsible investing as a forum for investors to collaborate; make these principles more specific; address lax regulations whereby the international nature of some firms are able to evade local laws and escape responsibility; and reporting requirements. Emerging markets Corporations are attracted to set up businesses in emerging markets in developing countries, such as China, India, Brazil, etc. It can be attractive to companies which benefit from natural and human resources, untapped markets and relaxed laws of the host countries. Host countries may enjoy cash flow, infrastructure development, and higher-quality employment with an improved local living standard. While this arrangement sounds very lucrative for both companies and host countries, there are other issues that need to be considered: What is the benefit for the small-scale indigenous companies which are often driven out of the market? Companies may be hindered from operating at their full potential by international laws and regulations.

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New developments in business sustainability education The effect of a project on the environment or its degradation of natural resources is often of less concern to developing countries than the cash flow generated. The positive international image of large wealthy corporations has been known to have been achieved by buying publicity and community good will which lead to possible misrepresentation to consumers. In addition to the ethical issues identified, the need for more research and dialogue on ethical issues was recognized. Ethics has been a more difficult subject for business to discuss than sustainability. Ethical values can be profitable and important to business and need to be incorporated into the business vocabulary.

Key drivers of developments in sustainability and values-based education: Business schools are responding to increased expectations of business by stakeholders A 2014 survey ranked 93 business schools offering corporate responsibility and sustainability studies (NetImpact 2014). It found that graduates who wanted to be properly equipped to make social and environmental changes in the world and their workplace expected more from their courses. They wanted to supplement sustainability education with opportunities for skill-building such as, systems thinking, investing money to solve community problems (NetImpact 2014). Changes are occurring in the substance of what universities are offering to students. For example, in August 2016, Presidio Graduate School (San Francisco, California) acquired Pinchot University (Seattle Washington), founded in 2002 as Bainbridge Graduate Institute (BGI), the first U.S. school to offer an MBA in Sustainable Business. Presidio Graduate School teaches every course in its MBA and MPA (the only one in the U.S.) in Sustainable Management programmes through a sustainability and social justice lens. It attracts people discouraged by traditional models of business who were seeking new, positive approaches. By way of background, Gifford Pinchot, grandfather of the co-founder of Pinchot University, was the first U.S. professional forester and a conservation pioneer. From being an unofficial advisor to President Roosevelt, in 1905 he was appointed chief of the U.S. Forest Service promoting the efficient management of natural resources; balancing the business demands (timber, mining, fishing and other extractive industries) with the need to conserve resources for the future. Although Pinchot promoted sustainable forestry use he was criticized by preservationists who insisted the wilderness should be left pristine. Pinchot’s approach was to allow industry to flourish, not over-harvesting and so benefitting future generations (Roosevelt 2016).

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New developments in business sustainability education Sustainability in business has been called the triple bottom line of economic, environmental and social issues (Goldsworthy 2000). A corporate operational approach for corporations to contribute to sustainable development relates to the four capital components of a country’s wealth. This implies “sustaining increases in the combined stocks of environmental resources, produced assets and human/social resources that underpin an equitable distribution of opportunities to enhance quality of life and ecosystem health over time” (Warhurst 2000). The key drivers of new developments in business sustainability education can be traced to two broad categories, perhaps best described as internal and external to business schools. Internal Drivers Internal drivers of these new developments include the pressure business schools are experiencing from students seeking more sustainability and values-based content in the curriculum. There is also growing interest by educators to deliver content in these emerging topics. While it may be difficult to quantify to what extent each of these drivers plays, the outcome is clear – there is a proliferation of sustainability and values-based content in business school classrooms, if course and program offerings are reflective of what is being taught. There are also accelerating transparency expectations and pressures for business schools to demonstrate publicly how they are delivering in these new content areas. These range from public rankings and awards to reporting requirements central to the commitment made by signatories of the United Nations-supported Principles for Responsible Management Education (PRME). Examples of business schools rankings linked to sustainability factors include Net Impact’s ranking of Top 50 Schools for Environmental Sustainability, Corporate Knights Magazine’s Global Green MBA rankings, and the ranking of the top 16 green American MBA programs by Princeton Review and Entrepreneur Magazine. These rankings may incentivize universities to either offer programming of interest, or at least at a minimum disclose information about their relevant activities. Less competitive in nature, the advent of commitments such as the PRME may also encourage sustainable or responsible business practices, but necessitate of how business schools are delivering on the commitments they make as signatories. In addition to responding to these disclosure requirements, business schools are recognizing opportunities in embracing responsible business or reputational advantage. This is illustrated by schools not only providing data for rankings or reporting purposes, but increasingly business schools make these sustainability and values activities core to their public branding efforts.

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New developments in business sustainability education While hard to quantify, business schools appear to be responding to employment and recruitment trends. Two factors are prevalent. First, increasingly employees – and particularly those in a younger demographic – are seeking career opportunities aligned with their personal values. At the same time, there has been growth in career opportunities involving to sustainability or corporate social responsibility (CSR). This comes from both more companies embracing these values in their corporate identities and activities as well as from the emergence of functional roles at companies responsible for these issues. Examples of the former include individual companies like Unilever, or whole categories of companies such as those certified as B Corporations. Examples of the latter include jobs in sustainability reporting and supply chain management focused on human rights. Business schools are sensitive to opportunities with the potential employers of their graduates and have an inherent interest in training students in ways that meet recruiters’ needs. There is a trend of alumni and donor interest in supporting responsible leadership at business schools. It is difficult to establish the numbers to support specific claims, but it makes little sense not to draw such conclusions based on the announcement of new donor-backed initiatives at schools throughout North America. Alumni and donors are making funding commitments for initiatives that encourage business as a tool for social good. Growing research interest by academics and research funding opportunities are other drivers. A scan by the authors of new academic journal titles and research published in established journals indicates an attention to environmental and social elements of business not previously seen. Without detailed analysis it is hard to determine the extent of this phenomena or whether this trend is one driven more by supply or demand factors connected to academic research and funding. While all of the above are arguably internal, or direct, impetuses for business schools to advance business sustainability education, management educators are also responding to external, or indirect, drivers. External Drivers It will be difficult for business schools to remain competitive and relevant without acknowledging that the global business climate is undergoing significant change broadly speaking. In witnessing increased expectations of business by stakeholders, business schools need to adapt to the emerging landscape of accelerated corporate responsibility expectations.

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New developments in business sustainability education These drivers of greater business responsibility include legal shifts as a starting point. For decades the prevailing assumption dominating North America expectations of business was the 1970 proposition that the only social responsibility of business is to increase profits (Friedman 1970). While there are national nuances impacting the discourse around this legal notion in Canada and the United States, certainly this shareholder primacy framework is no longer accepted universally. In Canada, statute underscores the obligation of directors to operate in the best interests of the corporations on whose boards they serve. In addition, case law has bolstered notions of the relevancy of stakeholder theory. In particular, in BCE v. 1976 Debentureholders (2008) the Supreme Court of Canada established that directors may give consideration to the interest of a range of stakeholders. Subsequently, some of the country’s most prominent legal practitioners have argued that this case has encouraged boards to consider a range of interests beyond those of shareholders with the conclusion that “Recent landmark judicial decisions indicate Canada is shifting away from an Anglo-American definition of shareholder primacy” (Liao 2014). In the United States, some legal scholars have made the case that shareholder primacy is an ideology and not a legal requirement and suggested that “U.S. corporate law does not, and never has, required directors of public corporations to maximize either share price or shareholder wealth” (Stout 2012). Others have concluded that the obligation to increase shareholder value is the legal requirement of directors in the U.S., but has advocated for legal reforms to allow for a more stakeholder approach by directors (Yosifon 2013). In addition to the debate as to whose interest directors (and by extension, corporations) must consider in their decision making, there are also strong arguments around the more general trajectory of corporate law toward responsibility. A legal academic has analyzed the rise of the Doctrine of Reasonable Expectations and concluded the doctrine “requires powerful actors to treat stakeholders fairly” and is “a bellwether for the trajectory of the law” in Canada (Waitzer 2016). In the BCE decision cited above, the Supreme Court noted that reasonable expectations “look . . . beyond legality to what is fair, given all of the interests at play” to address conduct that is “wrongful, even if it is not actually unlawful” (BCE Inc. v. 1976 Debenture Holders 2008). In the Canadian context it is also critical to consider emerging legal developments related to consultation and other rights of Aboriginal communities. What might have once been viewed as responsibilities of governments interacting with these communities is increasingly understood as impacting companies (Isaac & King 2014). While these developments can be understood in isolation as

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New developments in business sustainability education representing bolstered rights of aboriginal communities, it is difficult to not also view this as another indication that rising expectation of business are increasingly becoming legal requirements. These legal developments are described in the context of traditional for-profit corporations. However at the same time, legislative changes have allowed for legal models such as community interest corporations in the United Kingdom, benefit corporations in the United States, and the community contribution company in British Columbia, among others. These so-called hybrid models specifically incorporate social responsibility requirements into their legal structures. It is hard for business schools not to address the changing legal context businesses are operating in and to prepare students for the reality of the accelerating need for companies to function in a manner which is responsible and fair as defined by society and in law. This may involve an updating of business law curriculum or the introduction of sections or complete courses aimed at familiarizing students with new legal models and an understanding of the direction in which the law is moving vis-à-vis making binding society’s responsibility expectations. In addition to legal developments, there are a number of significant standard setting initiatives focused on elements of corporate responsibility that are putting increasing pressure on companies to deliver. Perhaps the most successful of these are initiatives that have originated from the responsible investor community. Of these, many initiatives focus on corporate transparency and reporting. A number of these reporting initiatives have gained wide spread adoption despite being voluntary. Notably, the Global Reporting Initiative (GRI) provides companies with a range of sustainability indicators they may adopt to meet the needs their various stakeholders. The Carbon Disclosure Project (CDP) provides companies (and other entities) with guidance on what companies should report on publicly in relation to environmental impacts and management. While newer and with a lesser adoption rate to date, other voluntary initiatives such as the International Integrated Reporting Framework of the International Integrated Reporting Council (IIRC) and Sustainability Accounting Standards Board (SASB) reporting standards have also emerged with nuances in terms of focus or audience. In parallel with voluntary initiatives, binding reporting initiatives have emerged. The United Kingdom’s Modern Slavery Act of 2015 require companies with worldwide revenue over £36 million to publish annual statements demonstrating measures they have undertaken to ensure there are no instances of slave labour and human trafficking in their operations or their supply chains. The European Union’s NonFinancial Reporting Directive 2014/95/EU requires public companies with more than 500 employees to report on a series of environmental, social and governance (ESG) indicators as of 2017. In Canada, in Page 10

New developments in business sustainability education 2015 the federal Extractives Sector Transparency Measures Act came into force in 2015, requiring companies engaged in exploration or extraction of oil, gas, or minerals to report on payments made to all levels of governments both in Canada and abroad. Another Canadian example is the Ontario Securities Commission requirement for companies to report as of 2015 on diversity efforts related to women on their boards and senior management teams. These examples only hint at the broad range of jurisdictions and topics requiring public disclosure related to environmental, social and governance issues. Beyond mere reporting, there are also increasingly opportunities for companies to formally commit to responsible actions. While there are a multitude of industry-specific standards and aspirational frameworks for companies to commit to, some have broad applicability. The United Nations Social Development Goals offer the highest profile opportunity for businesses to commit to contributing towards global sustainable development objectives. A board based certification opportunity that emerged out of the U.S., is the B Corporation certification, for companies seeking to benefit society as well as investors. The United Nations supported Principles for Responsible Investment (PRI) initiative asks investors to commit to six responsible investment principles and has approximately 1,400 signatories worldwide. Indications of support for businesses taking their social responsibilities seriously may take many forms, but certainly one measure may be the assent of responsible investing assets. These are assets invested using strategies that consider environment, social and governance (ESG) criteria. Responsible and impacting investing have grown significantly over the past decade with myriad new players entering the space, including some of the world’s largest and most prominent investment management companies. The annual Global Sustainable Investment Review (GSIR) reports on regional responsible investing asset for Europe, the United States, Canada, Asia, Japan, Australasia and Africa. The 2014 report indicated that the global sustainable investment market continues to grow in absolute terms as well as relative to traditional investments assets rising from $13.3 trillion in 2012 to $21.4 trillion in 2014, and from 21% to 30% of the professionally managed assets in the regions covered. It is therefore not a surprise that business schools are responding by introducing academic content and courses in responsible and impact investing (Passant et al 2015). Most professional bodies provide some support for members grappling with these new content areas. For example, the Chartered Professional Accountants of Canada offers training and research to members looking to bolster their knowledge of how sustainability issues can be integrated into their

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New developments in business sustainability education practices. Essentially, they have acknowledged reporting on sustainability factors as central to the role of accountants by added sustainability reporting as one of the four judging categories in their annual corporate reporting awards program. The extent to which business schools can provide knowledge and training connected to these skills will help graduates navigate the challenges of these competencies as they enter the workforce. With consumers’ purchasing trends, there are also indications that consumer goods from brands with public sustainability commitments have seen greater growth than their competitors. A survey in 2015 conducted by Neilson of 30,000 consumers in 60 countries concluded that brands with these commitments grew 4% that year in comparison with 1% growth for others in industry without such commitments (Neilson 2015). Another global study found that 66% of consumers across regions and income levels say they are more willing to pay for items they perceive as more sustainable. This figure has risen from 55% in 2014 and 50% in 2013 (Neilson 2014). The connection between claims of willingness to pay and purchasing activity may be debated, but momentum in the expression of values is well established. The advent of courses such as social marketing is a reflection of how business schools are responding to these new realities. Employees are also affected by these shifts in perception. There is ample evidence that employees connect job satisfaction with opportunities to make a positive social or environmental impact at the companies and in the industries in which they work. In educating human resource professionals, business schools are wise to underscore the notion that companies’ social and environmental commitments and performance are factors in corporate recruitment, retention and even compensation. As described above, this effects recruiting on campus by employers but also has implications business schools for training future human resource professionals. Demographic changes may be viewed as a driver in and of itself given that all of trends described closely reflect the values of millennials. As this demographic grows closer to becoming the beneficiaries of the greatest wealth transfer in history, so does the likelihood that these new expectations of business require a serious and sincere response by the institutions training future business leaders. One 2015 global survey of business students showed strong support for the notion that business should be addressing environmental challenges. Among the numerous indicators, they found that of business students surveyed, 96% thought business should be leading efforts to address climate change. (Franceschini et al 2015).

New Developments in Business Sustainability Education

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New developments in business sustainability education As business schools respond to the internal and external drivers increasing expectations of business responsibility, the response has largely taken two forms. First, offerings of sustainability and valuesbased curricula have increased. Second, business schools have increasingly made commitments to responsible business initiatives outside the classroom. Academic programming While it is difficult to establish the extent to which responsible business content has been integrated into traditional subject areas offered by North American schools, it is not hard to detect an increase in specialised course offerings. Some of the dedicated course offerings are of a general nature. These include social context of business, corporate social responsibility, corporate sustainability, and management practices for sustainability. There are numerous courses offered that also directly connect the content to ethics. These include corporate social responsibility and business ethics, ethics and sustainability, ethical issues in business, human rights and business, ethics of corporate management, and law, ethics, and corporate social responsibility. At some business schools options that are framed from the leadership perspective, include ethical leadership and decision making, the socially intelligent manager, leading with values, leadership and ethics, and ethical leadership in business. A selection of curricula identified in an internal UBC study in 2016 also acknowledges international considerations of responsible business with courses that include global corporate social responsibility, responsible business in an international context, business strategies for the base of the pyramid, business and sustainable development, and inclusive business models that address global poverty. There are also streams and courses at North American business schools focused on elements of environmental management in the business context. These include business and environment, sustainable operations, natural resource and environmental law, energy and the environment, and systems thinking and sustainability. The intersection of social and environmental good with entrepreneurship has emerged as a popular subject for the business student with courses on social enterprise, entrepreneurship to address global poverty, green energy entrepreneurship, and starting a social venture.

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New developments in business sustainability education Accounting is an area that has shifted its offerings at numerous business schools with courses on sustainability and environmental accounting, sustainability reporting and management decision-making, and accounting for natural resources, energy, and the environment. Marketing has expanded its scope into sustainability marketing, ethical issues in marketing, sustainable and responsible marketing, and social marketing. Finance has become a discipline where values-based content is increasingly evident with options including ethics and finance, social purpose investing and finance, investing for impact, social investing, microfinance, sustainability and carbon finance, and the business case for investing in women. Other academic options can be categorized less precisely. An indication of the variety of responsible business topics being addressed at North American business schools includes sustainable and strategic real estate investment and community development, gender issues in organizations, innovation and sustainability, cleantech, strategic philanthropy, social entrepreneurship, towards sustainable mining, and environmental economics for business. Other Initiatives The introduction of academic programming has not been the only response of business schools to meeting the interest of their stakeholders in responsible business. Across North America there have emerged centres at universities and business schools focused on topics related to ethics, corporate social responsibility, sustainability and governance, among others. Business schools have also fostered and met students’ interest in responsible business by supporting their participation in extra-curricular activities such as values focused clubs, case competitions, incubators and accelerators, and investment funds. Case Study – UBC Sauder Peter P. Dhillon Centre for Business Ethics The case of the Peter P. Dhillon Centre for Business Ethics at the University of British Columbia’s Sauder School of Business is an example of the changes in substance that universities are offering to students. The Centre was established in 2016 with a mandate of taking a comprehensive approach to the study, teaching and promotion of business ethics. Its creation was a result of the partnership between the business school and UBC alumnus Peter Dhillon, the chairman of Ocean Spray Cranberries Inc. Its mandate includes supporting business and future business leaders dealing with issues related to sustainability, corporate social responsibility, ethical leadership and behaviour, responsible investing, business and human rights, among others.

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New developments in business sustainability education The Centre has four priorities (a) academic programming in ethics and values-based business across the undergraduate, graduate and executive education curriculum; (b) outreach and engagement with the business community and public to advance discussion and sharing of best practices related to ethics and values; (c) supporting student initiatives connected to sustainability, social enterprise, responsible investing, philanthropy and other values-based activities; and (d) coordinating scholarly research to investigate and influence ethical practices across business disciplines. Robert Helsey, Dean of UBC Sauder School of Business noted in 2016: “Increasingly our students are seeing business as a means for creating positive change in the world and are asking the school to prepare them for careers that prioritize sustainability along with profit. It’s our responsibility to equip our students with the education and skills they need to lead the forward-looking organizations they want to see in the world.” (http://www.sauder.ubc.ca/News/2015/Future_business_leaders_demand_bold_action_on_climate_ch ange_the_new_frontier_for_hiring_talent )

Conclusions This paper examined business sustainability challenges and new developments for education to act as a catalyst for advancing business ethics and responsibility. It showed that the need for education and dialogue to improve business on key ethical issues is being met by addressing demands from graduate students, companies and faculty. The key internal and external drivers of developments in sustainability and values-based education in business schools were examined. Business schools are responding to the increased expectations of business by stakeholders through changes in the curricula, new research projects, as well as new initiatives outside the classroom including socially-responsible entrepreneurship and values-focused activities. More disciplines are incorporating sustainability and ethics courses. We can expect to see more academic programming in ethics and values-based business at the undergraduate, graduate and executive education level; further outreach and engagement with the business community and public towards best practices; additional support for student initiatives; and new research to improve ethical practices in all sectors.

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New developments in business sustainability education

Fig 1. Business Ethics Issues

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