In early January, almost 200 senior executives from 35 countries discussed the role of business in the implementation of the Convention on Biological Diversity (CBD) during the opening session of Harvard Business School’s (HBS) annual Agribusiness Seminar in Boston. HBS Professor James Austin, an expert on management in developing countries and founder of the HBS Social Enterprise Initiative (1), led the hour-long exchange. At the conclusion, CBD Executive Secretary Ahmed Djoghlaf challenged the group to join forces in order to meet the 2010 biodiversity target.
Why were biodiversity and the CBD included in this year’s Harvard Business School Agribusiness Seminar? Our goal in the Seminar, which is in its 46th year, is to inspire business leaders to climb out of their silos and stretch their minds. Each year we develop a series of new cases that convey forward-looking issues in agribusiness around the globe and across the entire value-added production chain. In particular, we look for organizations—either public or private—that are leaders in their respective areas.
Agriculture’s very productivity depends upon a healthy environment, so our participants all have a vested interest in biodiversity and sustainable use. It doesn’t matter if they are a major seed company, a small tree fruit producer in the Pacific Northwest, a food retailer in India, or a manufacturer of forestry equipment in Finland. But while companies are increasingly talking about sustainability, my informal poll showed that most members of industry do not think specifically in terms of biodiversity. And many have never heard of the CBD or the 2010 target.
So the CBD case was an opportunity to educate, but it also provided a window on a broader question. During the 20 years that I have been involved with the HBS Agribusiness Programme, we have talked about the idea of a global coordinating mechanism for agriculture. The need is even greater in today’s global market, where production can occur in regions far away from consumption. In addition, the enthusiasm for agricultural-based renewable fuels is pulling new land into use and adding to the pressure on the environment. The CBD case gave us the opportunity to consider whether this particular vehicle could fill that role.
Can you describe the CBD case discussion? All HBS case studies feature a protagonist who is facing a decision. During the discussion, participants are asked to step into the role of decision maker and recommend a plan of action. This method of ‘active learning’ helps participants to dive deep into tough issues. They really take it to heart, and then it becomes part of their decision-making framework once they leave.
The CBD case, which is set from the point of view of the Executive Secretary, asks how business resources can best be harnessed to help meet the 2010 target. In tackling the question, the discussion moved through three areas: who has the most at stake with respect to biodiversity and why; what could business do to help reach the 2010 goal; and recommendations to the CBD Secretariat as to how to get business involved.
What specific recommendations did the group have for the Executive Secretary? The recommendations to the Executive Secretary fell along four main dimensions.
First, the market for sustainable products should be stimulated wherever possible.
Second, consumers must be educated about the benefits and value of biodiversity, so that they are willing to pay more for a sustainably produced offering.
Third, penalties should be implemented to prevent bad behavior and to keep businesses from ‘free riding’ on the positive actions of others.
Finally, information about best practices should be widely disseminated.
In terms of involvement in the CBD process itself, one participant noted that business would become more engaged “when they can see they can make a difference in the process and achieve tangible benefits.”
Was this the only time that biodiversity was discussed during the Seminar? Biodiversity and the sustainable use of natural resources came up either directly or indirectly during many of the other 10 case discussions. For example, a case on Embrapa (Brazil’s national agricultural research corporation) looked at the introduction of a new integrated crop-livestock rotation system for the Cerrado that has a number of positive benefits for the environment. And the collapse of the Grand Banks cod fishery was discussed in a case on Clearwater Seafoods Limited Partnership (CSLP), a Canadian company that has proactively invested in technology to ensure that harvesting is done at sustainable rates.
Participants returned to the issues of business and sustainability during the closing session, when HBS Professor Michael Porter presented his current research on the link between competitive advantage and corporate social responsibility (CSR). Porter urged businesses to see CSR activities as more than an opportunity for positive publicity. Instead, companies should practice what he calls “strategic CSR” by mounting a small number of intensive initiatives whose social and business benefits are large and distinctive (1). He cited the milk district model used by Société des Produits Nestlé S.A (Nestlé) as an example of strategic CSR, showing how the company’s commitment to working with small farmers had helped both the community and the company to prosper.
How can one get a copy of the case? The case study, titled “Convention on Biological Diversity: Engaging the Private Sector,” is available for download from the Harvard Business School Press
Mary Shelman is Senior Researcher and Director of the
Agribusiness Programme at Harvard Business School.
mshelman@hbs.edu
(1)
Social Entreprise Initiative - Harvard Business School (2) Michael E. Porter and Mark R. Kramer, “Strategy & Society: The Link Between Competitive Advantage and Corporate Social Responsibility,” Harvard Business Review, December 2006.
(3)
Harvard Business School (HBS)