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8<br />

SPRING QUARTER COURSE FOCUS<br />

Graduate Research Team Explores Sustainability Performance in Canada,<br />

the US and Beyond<br />

by DOROThy paun, pROfessOR anD sTuDenTs sean cappellO, kaTie fulkeRsOn, lauRa pOllan, Ravi ManGhani, caROlyn chen,<br />

anGie Gaffney, bRianna nOel huGhes, eRic knOben, viOleTa ORlOvic, elizabeTh TRan, anD eMil MORhaRDT<br />

Dorothy Paun’s annual spring quarter research seminar, College <strong>of</strong> Forest Resources 519: Conducting an Industry Performance<br />

Review, provides a forum for UW students to affect positive change. Students unite under a common interest to explore financial,<br />

environmental, and social responsibility <strong>of</strong> business activities and performance. The team includes undergraduate, master, and PhD<br />

students majoring in business, environmental science, and law, and a Hubert Humphrey Fellow.<br />

Canada and the US share more than<br />

a long-standing, substantial bi-lateral<br />

trade relationship, and both share a<br />

concern about sustainability. The Canadian<br />

government advocates that “no one<br />

country, acting alone, can solve the<br />

problem <strong>of</strong> climate change, but by working<br />

together towards a common goal the<br />

nations <strong>of</strong> the world can successfully<br />

address the challenge.” To explore crosscultural<br />

dimensions <strong>of</strong> US and Canadian<br />

approaches to sustainability performance<br />

reporting, a pilot study was done in 2007.<br />

Two primary findings emerged: Canadian<br />

firms scored higher in social responsibility<br />

performance while US firms scored higher<br />

in environmental performance. In view<br />

<strong>of</strong> these cross-cultural differences, the<br />

2008 research seminar was designed to<br />

broaden the context <strong>of</strong> inquiry to include<br />

firms from around the world.<br />

Increasing acknowledgement <strong>of</strong><br />

climate change, emerging economies,<br />

population growth, and consumer<br />

awareness and activism have coalesced<br />

to make even the most conventional<br />

businesses think about new approaches<br />

such as sustainability. “Sustainability”<br />

means meeting the current needs <strong>of</strong><br />

people, businesses, and organizations<br />

without compromising Earth’s capacity<br />

to provide for future generations.<br />

This requires balancing environmental<br />

stewardship, financial prosperity, and<br />

social responsibility, an integration called<br />

the “triple bottom line.” Sustainability,<br />

previously considered more an ethical<br />

issue, has become a “business” issue.<br />

Businesses may be hesitant to adopt<br />

sustainability initiatives without sufficient<br />

information on financial implications like<br />

pr<strong>of</strong>itability and shareholder value. This<br />

research uses a triple bottom line approach<br />

in hopes <strong>of</strong> providing new business<br />

insights as well as incentives for more<br />

sustainable business practices.<br />

dorothy Paun and cfr 519 students. front row, Pr<strong>of</strong>essor dorothy Paun, katie fulkerson, liz tran, ravi Manghani.<br />

Back row, violeta orlovic, laura Pollan, sean cappello, carolyn chen, angie Montgomery, Brianna noel Hughes,<br />

and eric knoben.<br />

Over the past two years, Dr. Paun’s<br />

research has worked on building a<br />

quantitative model <strong>of</strong> triple bottom<br />

line performance in order to provide<br />

a foundation for operationalizing<br />

the constructs <strong>of</strong> financial, social<br />

responsibility, and environmental<br />

performances. The primary goal <strong>of</strong><br />

her model is to investigate whether<br />

sustainable business practices influence<br />

corporate financial returns and how.<br />

The 2008 spring quarter research<br />

seminar is in collaboration with Pr<strong>of</strong>essor<br />

Emil Morhardt, Director <strong>of</strong> the Roberts<br />

Environmental Center at Claremont<br />

College. Morhardt developed the Pacific<br />

Sustainability Index (PSI), an assessment<br />

instrument for sustainability performance.<br />

From this PSI sample, the class utilizes a<br />

sub-sample consisting <strong>of</strong> 78 firms from<br />

18 countries and 12 industries.<br />

If analyses suggest correlations<br />

among financial, environmental, and<br />

social performance, the research<br />

findings could provide incentives for<br />

corporations to deepen commitments<br />

to business practices that lower<br />

environmental impacts, enhance<br />

corporate social responsibility, and<br />

improve shareholder value.

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