Acknowledgments

This book pulls together and extends work I have been doing in the area of sustainability and business over the past 15 years, but it has actually been 35 years in the making. Indeed, there is no doubt that this work was influenced, shaped, and determined, to a large extent, by my prior experiences in college, graduate school, and the real world. I owe a great debt, therefore, to a number of people—mentors, professors, benefactors, colleagues, associates, and students—as well as friends and family.

As an undergraduate student at the University of Rochester, I would have never embarked on the path of environmental studies and management were it not for the inspiration of professors Larry Lundgren and Christian Kling. These two professors were the ones who awakened my interest and stirred my passion for this domain and set me on a course that has continued to this day. I am living proof that college professors really do have an enormously important shaping influence on their students. To them I owe a huge debt of gratitude.

At Yale, during my time at the School of Forestry and Environmental Studies, I am very thankful to have had the honor to work with the late Professor Joe Miller, as well as professors Lloyd Irland and Garth Voight. These three, in particular, helped to shape my interest and deepen my knowledge in environmental policy and management. They also enabled me to develop a much broader intellectual grasp of the history of the environmental movement and how it fit into the larger pattern of societal evolution toward greater inclusiveness.¹

My first encounter with the “real world” (in the form of an actual job) came at the Institute on Man and Science in upstate New York in the late 1970s. As a research associate in economic and environmental studies, I worked with Dr. Gordon Enk—my first boss. This job resulted in a professional and personal relationship that continues to this day. In fact, if I had to name the one person who has had the biggest impact on me, it would have to be Gordon Enk. With his background and deep commitment both to the environment and to the economic system (Gordon holds a Ph.D. from Yale in natural resource economics), he was the first person to show me that we need not accept trade-offs when it comes to societal and economic performance. Gordon was also way ahead of his time when it came to stakeholder involvement in strategic decision making. Under his guidance, we embarked on a series of projects that sought to involve diverse voices in important social and strategic decisions. We wrote about the learnings from these experiences in a range of publications that stand the test of time to this day.²

Since that time in the late 1970s, Gordon and I have continued to work together: He served on my dissertation committee at Michigan;³ I served as a consultant to him during his years as an executive at International Paper Company. More recently, he has been an active participant in the advisory boards for the Corporate Environmental Management Program at Michigan, the Center for Sustainable Enterprise at UNC, and now the Center for Sustainable Global Enterprise at Cornell. In reading the pages of this manuscript, Gordon will no doubt see the shaping effect he has had on my point of view. He should take satisfaction in knowing that he has taught me well.

During my time in the doctoral program at Michigan, I was mentored and influenced by several key faculty members. Professors Pete Andrews (now at UNC), Rachel Kaplan, Jim Crowfoot, Kan Chen, Paul Nowak, and (the late) Bill Drake were of particular influence and importance. Rachel Kaplan deserves special mention for her encouragement and support of my dissertation work. After completing my doctoral work in 1983, I was appointed post-doctoral fellow and research scientist at the Institute for Social Research in Ann Arbor. During this time, I worked closely with Dr. Mark Berg, Dr. Don Michael, and professors Donald Pelz and Nate Kaplan. This was also the time that I met and established life-long personal and professional relationships with two other highly influential people: Professor Dan Denison (now at IMD in Switzerland) and Professor Jac Geurts (at Tilburg University in the Netherlands). They had an enormous influence on my intellectual development, especially when it came to combining interests in strategy and organizational change with a concern for social impact and environmental management. I continue to work with both of them to this day.⁴

My career as a professor of strategic management began in the mid-1980s at the University of Michigan Business School. There, I was greatly helped by relationships with professors Jane Dutton, Bob Quinn, and Noel Tichy. Professor Jim Walsh has also been a particularly helpful and special friend, confidant, and advisor over the years. Without him, it would have been much more difficult to work up the courage to take the career risks that I have taken. However, there is one faculty mentor, in particular, who deserves special mention: Professor C. K. Prahalad. By the late 1980s, I was becoming frustrated with my career: I was increasingly spending time on research and teaching that did not reflect my real interests or passions. My performance in both research and teaching was, as a result, mediocre. Where most senior faculty advised me to forget about my background and interest in environment and sustainable development, C. K. was one of the few supportive voices. I still remember how he urged me to pursue my passion and leverage my unique background in this area. Were it not for C. K., I never would have made the conscious decision (which I did in 1990) to devote the rest of my professional career to the connections between business and sustainability. C. K.’s unique perspective on strategy as innovation has also had a huge impact on how I have formulated my ideas about sustainable enterprise. For this, and much more, I owe C. K. a huge debt of gratitude.

Other early contributors who had important influence on my thinking included Paul Hawken, particularly his work The Ecology of Commerce; Ed Freeman, with his important book Strategic Management: A Stakeholder View; John Elkington, with his concept of the “triple bottom line,” first published in Cannibals With Forks, and professors Dick Vietor and Forest Reinhardt at the Harvard Business School, who produced most of the early teaching cases on environmental management and business in the early 1990s.

Two other faculty members also deserve special mention for inspiring me to pursue this path: Professor Paul Shrivastava, of Bucknell University, and Professor Tom Gladwin (then at NYU, now at Michigan).⁵ In my view, Paul and Tom were the academic pioneers in this area. They were both working this space before most others in business schools even gave it a second look. Like C. K. Prahalad, Paul and Tom provided both the example and encouragement that led me to take the bold step of dedicating my professional life to this topic. It was the best decision I ever made, and I am tremendously thankful to both of them.

Were it not for two other people, it would have never been possible to successfully develop the Corporate Environmental Management Program (CEMP) at Michigan, a dual-degree program between two previously disconnected entities. Garry Brewer, who came to Michigan from Yale as the Dean of the School of Natural Resources and Environment in 1990, and Joe White, who became the new Dean of the Business School at the same time. Garry Brewer, in particular, was instrumental in forging the relationship between the two schools and helping to secure the early support for the program. Without the commitment of Garry and Joe, the CEMP Program would have never happened. Both also helped me to better understand the challenges and opportunities in attempting to bring these two worlds together.

At the University of North Carolina, I am indebted to professors Hugh O’Neill, Rich Bettis, and Ben Rosen, and, later, Dean Robert Sullivan for giving me the opportunity to develop the Center for Sustainable Enterprise. However, it was really Professor Anne Illinitch (now York) who deserves the most credit for attracting me to UNC in the first place. It was her passion, vision, and persistence that helped to make it a reality. With regard to the center itself, however, my professional and personal relationship with Professor Jim Johnson has been especially fruitful. In his role as faculty co-director of the center with me, Jim has taught me a great deal about the social aspects of sustainability, particularly those relating to minorities and the economically disadvantaged. I also owe Jim a debt of thanks for helping to create the title for this book: For several years, the two of us discussed (but never completed) an article together entitled (tentatively) “Capitalism at the Crossroads.” For Jim’s unswerving support as both a friend and a close colleague, I am very grateful.

As with the creation of CEMP at Michigan, the Center for Sustainable Enterprise at UNC would have never been possible if it were not for the visionary support of two people: Professor Jack Kasarda (Director of the Kenan Institute for Private Enterprise) and Professor Bill Glaze (Director of the Carolina Environmental Program). Both showed the willingness to financially support the fledgling concept for a new Center before anyone else at either the business school or the university would pay any attention. Without them, the body of new work generated over the past seven years would have not been possible. Nor would the establishment of an MBA concentration at Kenan-Flagler Business School that, by the early 2000s, attracted nearly one-third of the admitted students each year to the school. For this accomplishment, I should also thank Jim Dean, who was Dean of the MBA program during the creation of the concentration.

For the opportunity at Cornell, I am indebted to several people: Dean Robert Sweiringa; Senior Associate Dean Joe Thomas; and professors Alan McAdams, Norm Scott, Bob Libby, Beta Mannix, and Bob Frank, to name but a few. However, the ultimate acknowledgement must be made to the late Sam Johnson, Chairman Emeritus of S.C. Johnson & Son, Inc. It was Sam and the Johnson Family who had the vision to endow both the S.C. Johnson Chair in Sustainable Global Enterprise and the new Center for Sustainable Global Enterprise. Other pioneering benefactors also deserve recognition: Dr. Hans Zulliger, Swiss scientist and businessperson, for endowing the Chair in Sustainable Enterprise at UNC; and Fred Erb and the Max McGraw Foundation for endowing the Erb Environmental Management Institute and Max McGraw Chair, respectively, at Michigan. It is important to recognize the crucial contribution that such gifts make to the legitimacy and institutionalization of this work at major universities and business schools.

There are also a number of people from the corporate and not-for-profit sector who deserve recognition for both their support and influence over the years. Paul Tebo at Dupont, in particular, deserves special recognition. Like Gordon Enk, Paul and DuPont have been involved with the initiatives at Michigan, UNC, and now Cornell. DuPont has also financially supported the initiatives at all three institutions. Dawn Rittenhouse, John Lott, John Hodgson, and Eduardo Wanick, all of DuPont, have also been key supporters of our work. Matt Arnold, originally of the Management Institute for Environment and Business (MEB) and later the World Resources Institute (WRI), has been enormously influential over the years. We began together on this adventure in the early 1990s, as he was forming MEB and I was developing the CEMP Program at Michigan. Like DuPont, WRI has been a long-term partner for more than a decade, with people like Jonathan Lash, Rick Bunch, Jennifer Layke, Rob Day, Meghan Chapple, Al Hammond, and Liz Cook providing key support. Dow Chemical Company, in general, and Dave Buzzelli and Scott Noesen, in particular, also deserve special mention. Dow was among the early supporters of the CEMP Program at Michigan and has since endowed a chair jointly between the Business School and the School of Natural Resources and Environment. Jane Pratt and Jed Schilling of the World Bank and (later) the Mountain Institute have also been key long-term collaborators and partners. Both have been indispensable champions of the content area and the programs over the years. For their business leadership and program involvement, I am also indebted to Lee Schilling and Mac Bridger of Tandus Group (Collins & Aikman Floorcoverings), as well as Sam Moore of Burlington Chemical Company, Dan Vermeer from Coca Cola, and Debbie Zemke at Ford. Jim Sheats, Barbara Waugh, and Gary Herman from Hewlett-Packard also deserve acknowledgement, as do Greg Allgood, Chuck Gagel, Keith Zook, and George Carpenter at Procter & Gamble.

While this list of acknowledgments has grown long, I would be terribly remiss if I did not directly recognize the crucial contributions of coauthors and colleagues in influencing and shaping both my thought and, in some instances, the actual words written in this book. Although the conceptual foundation for this book was clearly laid in several single-authored articles during the 1990s, later collaborations were of critical importance.⁶ I would like to recognize Professor C. K. Prahalad (University of Michigan Business School) for his important influence in our joint work that developed the original idea of the bottom of the pyramid as a business opportunity.⁷ This work can be found in parts of Chapters 5, 6, and 9. Professor Clayton Christensen (Harvard Business School) also deserves special note. He and I have coauthored two articles that join his theory of disruptive innovation with my work on sustainable development and the base of the pyramid.⁸ This joint work can be found in Chapter 5. I have also worked closely with Professor Sanjay Sharma (Wilfred Laurier Business School) in recent years. Our joint work on engaging fringe stakeholders and radical transactiveness can be found in the pages of Chapter 7.⁹

Several doctoral students at the University of North Carolina have also been important colleagues and collaborators over the past seven years. I have known Mark Milstein for 10 years, beginning at Michigan, where he was a student in the CEMP Program. During his tenure as a doctoral student at UNC, he and I coauthored two articles.¹⁰ Our joint work on creative destruction and sustainability can be found in the pages of Chapters 2 and 4; portions of Chapter 3 are also directly attributable to our collaboration on creating sustainable value. Collaboration with Ted London, given his extensive international experience, has also been extremely valuable. Joint work with Ted examining emerging market strategies for the base of the pyramid business entry can be found in parts of Chapters 6 and 8.¹¹ Finally, although Erik Simanis and I have yet to publish an article together, he has had a significant influence on my thinking over the past few years. The mark of his work, which brings economic anthropology into the business strategy field, can be found in parts of Chapters 7 and 8.

All three of these doctoral students have also made tremendous contributions to the Center for Sustainable Enterprise at UNC over the past several years: Mark Milstein has served as research director for the center and, with Monica Touesnard, has essentially run the Center for the past four years. Erik Simanis helped me to conceive the original idea for the Base of the Pyramid Learning Laboratory at UNC in 2000 as a recently minted MBA, prior to starting the doctoral program. And Ted London has served with great effectiveness as the Director of the BOP Learning Lab since 2001 and has been a close collaborator in our international work in Asia, Africa, and Latin America. Look for these three to make important independent contributions in the near future as they join the faculty ranks.

My participation as a core faculty member in the Sustainable Enterprise Academy (SEA) these past five years has also provided a wonderful venue for trying out new ideas—and learning, in the process. In this regard, I would like to recognize and thank my faculty colleagues in SEA, particularly Brian Kelly, David Wheeler, Bryan Smith, John Ehrenfeld, David Bell, and Nigel Roome, for their honest feedback and support in helping me develop and present my ideas in such a way to achieve maximum impact.

Finally, I would like to acknowledge the patience, support, and editorial skills of my publisher, Prentice Hall—in particular, my editor, Jim Boyd (fellow University of Rochester classmate); developmental editor, Elisa Adams; copy editor, Krista Hansing; project editor, Kristy Hart; and Wharton representative Professor Paul Kleindorfer. The book has been vastly improved as a direct result of their skilled eyes—and pens. My colleagues Gordon Enk, Ted London, Erik Simanis, Paul Tebo, Bob Frank, Alan McAdams, and Mark Milstein also provided invaluable feedback on early drafts of the manuscript.

Clearly, the writing of a book like this “takes a village,” as Hillary Clinton would say. While I have done my best to recognize as many of the important contributors to my professional life as space allows, there are many more who could have been included. For my friends and colleagues in this group, please forgive me! However, no acknowledgment would be complete without recognizing my parents, Lloyd and Katherine Hart, for their support of my education, and, I’m sure what seemed to be aimless wanderings, for the better part of a decade during the 1970s and 80s. I’m just sorry that my father did not live to see this book finally come to fruition. I’d also like to recognize my brother, Paul, who set the example for me in pursuing the academic route long before I ever imagined doing doctoral work.

Finally, my wife, Patricia, has been nothing short of an inspiration over the years. She has been the ultimate enabler of my work for 30 years. Without her love and support, none of this would have been possible. She is also a very talented editor and confidante. I shudder to think how much time she has spent reading and commenting on my work.

I dedicate this book to my two daughters, Jaren and Jane, in the hopes that it is of some use to them in navigating the troubled waters ahead. For better or worse, it will be their generation that will ultimately have to ensure our transition toward a sustainable world. I wish them Godspeed and hope it is not too late.

Stuart L. Hart
Ithaca, NY
October 2004

Notes

¹ See, for example, Stuart Hart, “The Environmental Movement: Fulfillment of the Renaissance Prophesy?” Natural Resources Journal 20 (1980): 501–522.

² A few of these publications include the following: Gordon Enk and Stuart Hart, “An Eight-Step Approach to Strategic Problem Solving,” Human Systems Management 5 (1985):245–258; Stuart Hart, Mark Boroush, Gordon Enk, and William Hornick, “Managing Complexity Through Consensus Mapping: Technology for the Structuring of Group Decisions,” Academy of Management Review 10 (1985):587–600.; Stuart Hart, Gordon Enk, and William Hornick, (eds.), Improving Impact Assessment (Boulder, CO: Westview Press, 1984); and Stuart Hart and Gordon Enk, Green Goals and Greenbacks (Boulder: Westview Press, 1980).

³ Stuart Hart, Strategic Problem Solving in Turbulent Environments (Ann Arbor, MI: University of Michigan, 1983).

⁴ A couple of sample publications include Jac Geurts, Stuart Hart, and Nate Caplan, “Decision Techniques and Social Research: A Contingency Framework for Problem Solving,” Human Systems Management 5 (1985): 333–347.; and Daniel Denison and Stuart Hart, Revival in the Rust Belt (Ann Arbor, MI: Institute for Social Research, 214 pp).

⁵ Some of my earliest published work in the area was done with Paul Shrivastava. See, for example, his (and Stuart Hart’s) Greening Organizations, Academy of Management Best Paper Proceedings, 52 (1992):185–189.

⁶ Two of my most important single-authored articles were “A Natural Resource-Based View of the Firm,” Academy of Management Review 20 (1995):986–1014; and “Beyond Greening: Strategies for a Sustainable World,” Harvard Business Review (January–February 1997): 66–76.

⁷ C. K. Prahalad and Stuart Hart, “The Fortune at the Bottom of the Pyramid,” Strategy+Business 26 (2002):54–67.

⁸ Christensen, Clayton, Thomas Craig, and Stuart Hart, “The Great Disruption,” Foreign Affairs 80(2) (2001): 80–95; and Stuart Hart and Clayton Christensen, “The Great Leap: Driving Innovation from the Base of the Pyramid,” Sloan Management Review 44(1) (2002): 51–56.

⁹ Stuart Hart and Sanjay Sharma, “Engaging Fringe Stakeholders for Competitive Imagination,” Academy of Management Executive 18(1) (2004): 7–18.

¹⁰ Stuart Hart and Mark Milstein, “Global Sustainability and the Creative Destruction of Industries,” Sloan Management Review 41(1) (1999): 23–33; and “Creating Sustainable Value,” Academy of Management Executive 17(2) (2003): 56–69.

¹¹ Ted London and Stuart Hart, “Reinventing Strategies for Emerging Markets: Beyond the Transnational Model,” Journal of International Business Studies, 35 (2004): 350–370.