Using the eco-friendly example of the trendy European-based furniture company, IKEA, a group of students from the Darden School are working toward encouraging socially responsible business practices.
Students for Responsible Business, a Darden student group formed in 1994, is a chapter of the national organization, Net Impact, a network of emerging business leaders committed to using the power of business to create a better world through ethical practices.
From 1982 to 1992, IKEA faced a crisis.
Formaldehyde emissions from the particleboard and lacquer used on its bookshelves exceeded regulation limits.
Sales dropped significantly and the company drew negative attention from the outside world. IKEA's environmental track record was closely examined, including its packaging waste, trace dioxins in the polyvinyl chloride it used, as well as the number of trees it cut each year to produce a catalog.
IKEA had to make some serious decisions -- decisions that have been taken into consideration by SRB as part of a good example of ethical sustainability.
"This is one story of a large company with existing performance measures and operational constraints and how it worked to realign itself more with the environment," said Jeff Levinson, SRB's vice president for corporate relations. "You can see how much work and time goes into this process."
IKEA's reaction to its environmental problems have been an example to the SRB.
IKEA had to resolve its formaldehyde emissions problem with technical expertise, but long-term change proved to be a bigger undertaking. IKEA moved forward by hosting seminars for top management and focusing on the company's relationship with the environment.
They realized that by measuring success at the cash register alone, they were actually measuring how fast the company was transforming resources into waste.
The leaders of the SRB hope other businesses and future business leaders, including Darden students, will follow IKEA's example.
SRB focuses on various topics, including sustainable development, corporate citizenship, environmental management, volunteerism, work-life balance, non-profit management, and social and environmental entrepreneurship.
Sustainability can be demonstrated in a variety of ways -- from using more electricity-efficient machinery to a closer regulation of pollutants.
Most of the work that SRB does is through informal communication and small group work.
"We strive to broaden the diversity of perspectives that are introduced at Darden and to create opportunities for students to participate in socially responsible activities," Levinson said.
Much of SRB's other current activity falls within the realm of its new Issues-Based Initiative, or those issues identified as important to Darden's future as a top business school.
"The idea is that Darden is where people will come to get past the obvious when it comes to operationalizing sustainable business," he said.
He added that businesses can come to Darden to get creative in their environmental and ethical endeavors.
"If you are trying to make money for your company, then you are best served by looking everywhere you can for a competitive advantage, but also, you are more likely to build a durable and lasting company if you think broadly about how your organization really fits into the community in which it is situated," Levinson said.
In doing so, the company must also look beyond the bottom line: profits.
"Business is often thought of as profit-driven, a business cannot exist if it does not make money," he said. "However, SRB is focused on creative ways to broaden the set of factors that go into any given business decision without necessarily compromising profitability."
Most importantly, the SRB focuses on social responsibility.
"All corporations should act as citizens," said SRB's General Vice President Jay Evans. "Being a good corporate citizen means thinking of the future, what the long-term effects of decisions are regarding natural resources because without the long-term viability of the environment, nobody can profit."
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