The Business of Biomimicry

In the American Heritage Dictionary, capitalism is defined as, “An economic system in which the means of production and distribution are privately or corporately owned and development is proportionate to the accumulation and reinvestment of profits gained in a free market”. The term natural capitalism takes that one step further, incorporating a waste- reduction production system as the “production” part of the definition, reinvestment in the natural resources necessary for production and a holistic system view as opposed to a segmented system view.

The four elements of natural capitalism include:

1. Increase productivity using natural resource
2. A shift to bilogically inspired production models (also called biomimicry)
3. A move to a solution-based business model
4. Reinvestment in natural resources and process

The importance of natural capitalism is that it allows human beings to return to a more naturally inspired form of production, distribution and waste disposal. In the last year I have become aware of the biomimicry movement, and I see natural capitalism as business’ way of mimicking nature. Biomimicry is defined by the

Biomimicry Institute as: “(from bios, meaning life, and mimesis, meaning to imitate)… a new science that studies nature’s best ideas and then imitates these designs and processes to solve human problems”. For example, a bird finds and eats a fruit or seed, such as poison ivy. They then process the fruity part of the seed and deposit the seed in their excrement. That new seed produces a new poison ivy plant and the process is continued. If businesses incorporate natural capitalism, they will find a resource (fruit or seed), process and distribute that resource (seed) and use the waste to produce more of their product, or a different product.

The flora and fauna on this earth that survive do so because they are required to live by certain rules. They do not have the intellectual ability to develop different methods of survival than what is offered by nature. We, as humans, are able to develop methods of survival that over-rule those dictated by nature. By developing these methods, we have damaged natural habitats and resources that are necessary for our very survival. These are short-term solutions, not long-term solutions, and they're not good business practice. Natural capitalism as a business philosophy will allow us to work in concert with nature, using production methods in harmony with the earth and its ecosystems and habitats.

Ecosystems is the term used to describe the regulation systems of habitats that we and all other natural creatures live in. Biodiversity in habitats, meaning allowing many diverse life forms to live in a certain habitat, subject to a particular ecosystem, is important because we are all interdependent. It may seem strange that we are dependent on the number of earth worms in our soil, but the growth of the number of earth worms in our north-eastern forests could be damaging our deciduous tree species, which in turn will hurt the deer, mice, birds and us, because they process CO2 in our atmosphere. North-eastern forest habitats haven’t included earthworms since the glacial period, when they all died. The earthworms you see in the forests and even in your own garden have come from Europe and the Far East in plants and planting material. The forest ecosystem is being changed by the exponential growth of earthworms, because they are eating through the leaf mold faster than the trees are used to, and they are creating a new soil composition that these ancient forests are not used to. The ecosystem has been disturbed and will now have to evolve and survive or devolve and die.

In considering ecosystems services in relation to the business world, let us think about water, the great solvent, and its use in businesses. Water use is critical for many businesses, even if only because it is used in waste removal, or employee services. Water is taken as a natural resource away from ecosystems and returned to the same or another ecosystem as a waste product. If that waste product is returned to the ecosystem in a way that damages that ecosystem, you have just eliminated that resource until it has cycled that water through a natural filtration system and made it usable again. If we, as a business, cycle that water through a filtration system using biomimicry, then store that water or release it back into the ecosystem, we have eliminated one instance of damaging a resource, and improved our production model by creating a closed-loop system. Ecosystem services can only continue to exist if we are mindful of our role in preserving them.

Natural capital and ecosystem services have always been a part of the earth’s production processes. They’ve been used by flora and fauna since the beginning of time. It is only now that we as humans are awakening to the importance and ingenuity of these processes, and it is to our great benefit to do so as quickly as we can.

Hasbro Susty Report/Shareholder Resolution

In the October 2007 issue of Toxic Chemicals in Products, the Newsletter of the Investor Environmental Health Network, the newsletter celebrated the "Impressive Results from Shareholder Resolutions", including news about the "45% [44.8%] vote on a resolution at Hasbro focusing on PVC (polyvinly chloride) and requesting a sustainability report was the highlight of the successful 2007 proxy season for IEHN resolutions... the second highest vote on record for a sustainability report resolution opposed by corporate mangement." From what Bill was saying during our first intensive, this seemed like a very successful voting percentage, so I decided to look into this further. Toxins in toys is a very hot topic right now, with all the news about lead in Chinese toys made for Hasbro and other companies. (SEC Listing)
I went and looked for the Sustainability Report request and found a copy of it filed in Shareholder Resolutions under Hasbro - Sustainability Report. The request included language stating proposed grounds for the report was that "investors increasingly seek disclosure of companies' social and environmental practices in the belief they impact shareholder value". I found myself asking who instigated this campaign? How did they engage Hasbro? On CSRWire.com I found out that a group of catholic nuns, the Domincan Sisters of Adrian, Michigan, worked with the Portfolio Advisory Board, and the Camilla Madden Charitable Trust (CMCT) to convice shareholders to engage with the Board of Trustees at Hasbro, Inc. "Speaking for the resolution filers, Margaret Weber, coordinator of Corporate Responsibility for the Adrian Dominican Sisters in Adrian, Michigan, and also a representative for the Camilla Madden Charitable Trust, commented, "The high vote for this proposal from shareholders indicates that Hasbro needs to meet the standard for accountability on sustainability issues and also that shareholders understand the potential liabilities with continued use of PVC in children’s toys."
Finally, I went to the Hasbro corporate site, to their social responsibility section. There they talk about product safety, sustainable practices, the reduction of greenhouse gas emissions and recycling policies, they don't discuss this particular shareholder resolution. It would be great to find a little more info on how the filers devised their plan of attack and what their mode of communication was. If anyone can learn any additional information, I'd be interested in sharing it.

Comm of Water Mgmnt Issues

There are two important aspects to water management. These are the management of clean water resources and the management of stormwater runoff and flooding. Water management is already a major issue, and will continue to be in the coming years. According to two separate articles written by “a prominent group of hydrologists and climatologists” published in the latest issue of the magazine Science, as documented on the World Business Council for Sustainable Development website, “up to 60 percent of the climate-related trends of river flow, winter air temperature and snow pack… from 1950-1999 are due to human-caused climate change from greenhouse gases and aerosols.” “New models must be used to prepare for floods or droughts, determine the size of water reservoirs and decide how to allocate for residential, industrial and agricultural uses.”

As seen in an article from a local newspaper website, “The Daily Evergreen” published in Washington State, these new models are being developed by state, county and municipal governments in an effort to solve water management problems at the local level. In Evergreen, WA, as was true in Westchester County, New York, where I worked in the county government conservation department, local governments are responding to the U.S. EPA requirements for creating new ways to manage stormwater runoff. These “Phase II” requirements are spurring municipal leaders to reexamine runoff through sheeting from impervious surfaces and from roofs, which introduce toxins into groundwater resources, rivers and streams.

New models are also being created in countries such as South Africa and Spain which have recognized the problems that water scarcity is causing locally and country-wide. As seen on Treehugger.com, “…a growing number of Spanish farmers have decided to sign onto an ambitious digital initiative linking up their fields to a national grid controlled from Madrid. Its main purpose, of course, would be to conserve water and costs – authorities estimate the new irrigation system could save 20% of the water Spain currently uses, or close to 1.3 trillion gallons every year.”

The Environmental Leader site discussed the results of the Chartered Institution of Water and Environmental Management (CIWEM) report from the UK, describing how industry will need to find ways to reuse water if they want to operate sustainibly. In Southern Africa, the feeling is "We need to be more proactive instead of being reactive. Government participation is crucial. Unfortunately, many authorities tend to treat water as a non-priority. The development of water infrastructure has, for instance, fallen behind in many regions in Southern Africa."

I was pleased to find so much information about new models for water management, and from such diverse sources. The sites seemed to concentrate on facts, documenting studies made by independent scientists. Where the discussions are about governments, there is a call for more information and collaboration.
http://www.wbcsd.org/plugins/DocSearch/details.asp?type=DocDet&ObjectId=MjgzMzA
http://www.dailyevergreen.com/story/24494
http://www.treehugger.com/files/2007/11/water_management_digital.php
http://www.environmentalleader.com/2008/01/04/industrial-water-reuse-key-to-sustainability/
http://allafrica.com/stories/200712010044.html

Organiz'l Mngmnt Discussion Topic 1

For my first article and topic of discussion I have chosen to refer to a blog hosted by Dr. Marshall Goldsmith entitled "Ask the Coach". Dr. Goldsmith's profile in the Discussion Leaders section of the Harvard Business Review web site describes him as "a world authority in helping successful leaders achieve positive, lasting change in behavior."

In the article When Should You Keep Your Ideas to Yourself? (January 21, 2008 1:07 p.m.), the author discusses the propensity for "technically and intellectually gifted managers" to want to revise good ideas and make them their own. Dr. Goldsmith describes one of the reasons managers tend to add value to an idea is based on their need to "prove to the world how smart we really are". He suggests that, in doing this, the manager has just reduced the staff member's connection and commitment to the idea and that the ownership of the idea has just moved to the manager. He suggests that to cease this behavior it is best to follow this formula:
1.) Ask if the idea has value and merit as it is;
2) Decide whether your contribution will increase that value; and
3) If the increased value is worth reducing the staff member's commitment to the idea.
Your reception of the idea and subsequent behavior should then proceed accordingly.

There were more than 10 comments contributed by business professionals at various levels of the food chain. These comments offered a number of valid points of view. One gentleman suggested that culture plays a role in this discussion, which I am sure is correct. Another person suggested that everyone carry a journal with them and list their ideas as they happen. Then, during a group meeting, ideas would be expressed to all at the same time. AK Hand, President of Centaur Pharmaceuticals noted that if the idea is original and could be patented, great care should be taken regarding where and when an idea is suggested.

All of these are valid points, as I say. A free exchange of ideas is the goal of any organization. The managers have an opportunity to foster positive change that benefits all parties involved and also benefits the bottom line. Staff have an opportunity to show their stuff, and feel valiated by being part of a successful team. The teams are motivated by high moral. Everyone wins.

As is probably true of most people, I have been on the receiving end of this type of behavior. It was not a rewarding experience, but it taught me a lot about what kind of leader or team member I will aspire to be. Just after I created a very successful conference series, leadership at various levels both inside my organization and from partnerships outside the organization proceeded to take credit for the original idea and the success of the program. Eventually a press person from a local newspaper became very enamored of the series and our role in educating the public. In conversation with my superiors, and in front of witnesses, he complimented me for the origination of the idea. Though others still try to take credit for the conception of the series many years after it's inception, someone with personal knowledge usually steps in to correct the record. Now, when I have an idea, I am very careful about documenting the presentation of the idea, and to whom I offer it.

I am very clear about giving credit where credit is due. I have come up with some very good ideas and will continue to do so. I hope the people I share them with have respect for me and will offer their improvements, so that the best possible version will be acted up, and hopefully I will get the deserved amount of credit. http://discussionleader.hbsp.com/goldsmith/2008/01/tips_for_managing_smart_people.html

Greening the Girl

My journey leading to an MBA in Managing for Sustainability began with my Mother, Cintra Badenhausen, a woman dedicated to teaching her children and others about the outdoors and canoeing. An avid Girl Scout leader , she instilled in us the wonder and joy of camping in winter, gliding across a lake and, for me, the special feeling of friendships with horses. I remained close to Nature through environmental volunteerism and Master Gardener training in rural Idaho. My journey next lead me to a position with an umbrella organization which supported environmental non-profits in my native NY, and from there to a position supporting naturalists in a conservation division of the county Parks Department. Here I led the creation of a conference series entitled "Conversations on Conservation"in 2003 which successfully created collaboration of resources between e-non-profits, and which is still presenting conservation education programs to the community.

In 2006 I started Blue Sky Design, which has now morphed into Blue Sky Environmental Strategies, a consulting firm which specializes what I call "Community Marketing". I make sustainable connections between businesses and non-profits to support social responsibiity, specializing in support of environmental non-profits. My clients are diverse in market but united by the desire to do good while doing well.

The MBA program I am enrolled in is at The Graduate Center at Marlboro College, in Brattleboro VT. Our cohort, the first of the program, is quite an ecclectic bunch. We include a Budhist Monk Bartender, a Statistician, an employee of Vermont Yankee Nuclear Power Plant, and the Sustainability Coordinator of UTC. Our personal and professional histories offer an comprehensive amount of experience in personal and professional social responsibility, and in business practices. The faculty is dedicated and innovative. The staff is professional and imaginative in creating a supportive space for us to excel. I'm looking forward to where this chapter of my life will lead.