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When it comes to sustainable development, small and medium-sized enterprises innovate in many subtle ways, says Martine Spence. (Photo: Andrea Campbell / University of Ottawa)
Be it for food, fashion or services, today’s consumers are leaning more and more toward products that are organic, locally produced, reusable and responsibly sourced. Sustainable development is no longer an abstract concept; it has infiltrated every area of daily life.
Is this just another fad or a genuine awakening? In any case, companies can’t ignore it, notes Martine Spence, a professor of marketing and entrepreneurship at the University of Ottawa’s Telfer School of Management.
For the past 10 years, Spence has studied the structure and analyzed the social engagement and sustainable-development practices of small and medium-sized entreprises (SMEs). “These companies contribute heavily to national economies, and they create the majority of jobs out there, so their impact on the environment and on society in general is significant,” she explains. “I grew up in the south of France, where there were many small entrepreneurs. When I studied business, large corporations seemed too abstract to me, and too political. But SMEs are led by individuals who have a true passion for their craft, and that’s always intrigued me.”
So how do SMEs implement sustainable-development practices? What prompts them to do so, and what obstacles must they overcome? Martine Spence examines their behaviour on three fronts: respect for the environment, respect for individuals and respect for the community.
“We observed that the level of involvement depends on the entrepreneur’s own conviction. Those who lend importance to these issues in their private lives are the ones who take their business’s social and environmental responsibility to the highest level,” she says.
In fact, SMEs readily adopt green practices, from shutting down computers at night and installing energy-saving thermostats to choosing active transportation and opting for energy-efficient technologies. “SMEs are particularly innovative and flexible; they don’t have shareholders and can quickly adjust their strategy,” says Spence.
She points out that investing doesn’t frighten them either, and that when SMEs buy in, they innovate a lot because they know it will lead to a good return. She adds that for most of these entrepreneurs, making money isn’t the primary goal; it’s more a question of being part of the community and of pursuing their passion.
What is the situation in other countries? Are the same challenges at play? As a member of the Observatoire international du développement durable en PME (Université de Montpellier) in France, Spence also studies the internationalization of SMEs, and she recently compared those in Canada, in Cameroon and in Tunisia. She found that “sustainable development isn’t yet ingrained in the mindset of the South, even if some Tunisian entrepreneurs see in it an opportunity, as it can help them do business with European nations.”
That said, SMEs are nonetheless engaged in their communities, remarks Spence, with some donating a sheep to the community at Eid, for instance, because social engagement is an intrinsic part of their lives, mostly driven by religion.
In the era of globalization, Spence’s findings show that the widespread adoption of sustainable development will be achieved only if sociocultural contexts are considered, and that inspiration for that ideal can come from everywhere—from the North and the South.
by Marine Corniou
- Category: Rising Stars
During the weekend of September 23 to 25, Telfer School of Management students in the ADM4317 Leadership, Strategy and Sustainability course engaged in an intensive simulation called The Green Business Lab.
“The Green Business Lab is unique in that it is the only interactive, live, comprehensive business simulation that can provide students with a hands-on experience in running a business while at the same time solving the most pressing problems arising from environmental and social issues facing organizations today” said Daina Mazutis, Endowed Professor of Ethics, Responsibility and Sustainability at the Telfer School. “It connects students directly to important strategic decisions that they will need to make as future business leaders.”
Working in teams, the students were immersed in running a business where each team member played a key function in the company. They had to shape the company’s strategic direction, design and build a new product and improve performance. Yet, due to mounting pressure from various stakeholders — including customers, governments and NGOs — success depended on triple-bottom-line (economic, environmental, social) metrics.
Teams made final presentations to a panel of judges who evaluated their strategy. This board of directors was composed of Robert G. White, CA, CMA, CPA, Independent Investor and Adviser (Telfer BCom 1992), Kristina Haakman, VP Finance at Brookfield Renewable Energy (Telfer BCom 2003), Salim Charabati, B.Arch. MBA, Consultant BuildGreen Solutions (Telfer EMBA 2016) and John Purkis, Senior Associate, The Natural Step.
Spherical Solutions (George Amidjinov, Kacey Cryan, Francis Desjardins, Alexis Harrison, Adam Khawas, Philippe Lafontaine and Vanessa Mangano) finished first in the “Industrialized Nations” category and “Eco-Impact Spheres” (Patrik Hashem, Andrew James Low, Olivia Le, Cassandre Pomerleau, Isabelle Trudeau and Jacob Sousa) finished first in the “Developing Nations” category. These teams developed the best overall strategy from a triple bottom line perspective.
“Speaking on behalf of the majority of participating students, the Green Business Lab is a real life, fast paced scenario involving tough decisions” said student Francis Desjardins. “This weekend simulation gave us the possibility to apply our acquired knowledge in a sometimes stressful, but always fun environment. We not only learnt multiple typical business lessons, for example the importance of profits and cash flow, but also the impacts of other bottom lines: the importance of the environment and of social awareness. I would like to thank our Green Business Lab facilitator, our professor, my class colleagues and the Telfer School of Management for this great experience.”
This in-class simulation was made possible with the support of the Telfer School’s Yersh Family Pedagogical Innovation Fund.
About the Green Business Lab simulation
The simulation tests the students’ leadership skills, knowledge of core management disciplines, as well as broader understanding of business’s responsible role in society. The Green Business Lab simulation has previously been run in well-regarded universities such as Cornell University, Georgia State University, Central Michigan University, Denver University, University of Michigan, Georgetown University, University of Iowa, Wayne State University as well as major multinational organizations such as General Electric, Rio Tinto and Chrysler Financial.
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The following article was written by a member of our student community. The views and opinions expressed in this blog are those of the authors and do not necessarily reflect the official policy or position of Telfer School of Management. For more information or to flag inappropriate content, please