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| COURSE CONNECTOR |
| ARTICLE SUMMARIES AND QUESTIONS |
"Going Green: Green Is Good," pp. 42-50: It's not just for tree-huggers anymore — environmentalism has gone mainstream, and business in the U.S. is fully on board. Gone are the days when the environmental movement's only response to big business's seemingly blatant disregard for conservation efforts was to mandate, regulate, and litigate. These days, big companies and activists are at least as apt to hammer out a partnership over a cup of sustainably grown coffee as to confront one another in court. Why? Largely because going green is finally beginning to equal green, as in cash. Many companies have not only realized that by reducing their consumption of energy and materials, they can save money, help the planet, and clean up their image, but they've also discovered that there's money to be made in the action required to slow, stop, and then reverse the growth of greenhouse-gas emissions. Transitioning to a low-carbon economy will require new ways to generate power, run cars, grow food, and design, build, heat, and cool homes and offices. Only business is capable of innovation on that scale. So who are the major players so far? Honda and Continental Airlines are building cleaner, more efficient autos and aircraft. PG&E and the UK-based retail chain Tesco offer incentives to customers who think green. Canadian companies Suncor and Alcan are investing in cleaner methods to do their jobs. Goldman Sachs announced a groundbreaking environmental policy in 2005; insurer Swiss Re has developed financial tools to help clients deal with the risks of climate change. And S.C. Johnson and Hewlett-Packard maintain their longtime commitment to environmental stewardship. Students examine the strategies some of the world's top companies have developed to address the impact of global climate change. Discussion Questions:
"Going Green: Chemical Reaction," pp. 52-58: Any company that's been around for as long as DuPont has — 205 years, to be precise — has gone through a fair amount of transition to remain relevant. The venerable science company has found success throughout its more than two centuries in business by transforming from a gunpowder and explosives mill to a chemical company specializing in polymers (developing such well-known materials as Kevlar, Corian, Teflon, nylon, Lucite, and Dacron) to its newest incarnation, sustainability giant. DuPont has worked hard to get to this point, spending about $60 billion in deals for eco-conscious interests and investing in ongoing research. So far, it appears promising. While the company has taken some financial missteps along the way, it now claims that $5 billion of its $29 billion in revenue comes from sustainable products — either pure-green materials, such as bio-PDO, a corn-based substance that can be turned into fiber for suits or carpets, or products such as Tyvek, a chemically based material dating to the 1950s that can be used in new ways to improve energy efficiency. Wall Street has apparently taken notice as well, sending DuPont stock up more than 25% in the past six months. All of this has DuPont's CEO Chad Holliday cautiously optimistic. Having weathered a storm a year ago, when DuPont's patient board got an earful from restless investors, Holliday can now point to strong results in 2006. What remains to be seen is whether the company's overhaul will continue to pay off down the road. This article reveals how DuPont is evolving from a science inventor of polymer chemistry into a leading producer of sustainable products. Discussion Questions:
"Going Green: Éminence Green," pp. 62-70: Yvon Chouinard is a true maverick. The last thing he wanted to become was a businessman. Indeed, the intrepid rock-climber, surfer, and all-around outdoorsman aspired to be a fur trapper. Instead, he heads a company that made $270 million in revenues last year. How did it happen? Simple — he needed durable equipment and clothing to feed his rugged passions. Thus, Patagonia was born. But from the get-go, Patagonia was different. Chouinard and his wife, Malinda, determined from the beginning that their "experimental" company would be run on their own terms. Namely, it wouldn't release toxins into the rivers, chase endless growth, or make disposable products that people didn't really need. Instead, everything produced would be of the highest quality and manufactured in the most responsible way. They would keep Patagonia privately held and say no to anything that compromised their values. They would not focus on making money but on doing things right, and the profits would follow. With 35 years under its belt, Patagonia has not only succeeded in retaining its initial code of ethics (while making a tidy profit), but it has also become an influential business trendsetter. Companies like the Gap, Levi Strauss, and even Wal-Mart have adapted the Patagonia environmental conscience, and longtime Patagonia staples like onsite day care, employee flextime, and maternity and paternity leave have crept their way into businesses across the country. From the looks of things, the rest of the world is finally catching up to the nature-loving businessman. Discussion Questions:
"The Reinvention of Nelson Peltz," pp. 76-84: Nelson Peltz is a force of nature and one of the more compelling characters on the business stage today. A self-made man who built his family's tiny frozen-food business in Brooklyn into the largest distributor in the Northeast, Peltz marshaled more than $1 billion in junk bond debt, courtesy of Michael Milken, to assemble the biggest packaging company in the world, Triangle Industries. With the highly profitable sale of Triangle in 1989 — and one blockbuster deal after another ever since — Peltz has rarely made a blunder in a storied career. Now he's earning himself a new title, shareholder's best friend. With the help of his longtime business partner, Peter May, and his son-in-law Ed Garden, Peltz now does his dealmaking through two related companies, Triarc and Trian. His modus operandi is to work the managements of high-potential but underachieving companies to raise earnings by paring overhead, shedding ancillary businesses, and most of all, burnishing famous brands. He's already worked magic with the likes of Heinz and Snapple and now has his sights set on Tiffany and Cadbury Schweppes. Peltz has seen his share of bad press: he has suffered through censure by the London Stock Exchange, endured the collapse of a British real estate company he ran in the early 1990s, and won the scorn of corporate watchdogs for his compensation. But ultimately, he has produced big value for shareholders, and that's more than can be said for many a CEO who has feasted while his shareholders starved. In this article, students read about Nelson Peltz and how he helps companies restore luster to their brands — and multiply returns for shareholders. Discussion Questions:
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