Yale School of Management

Yale School of Forestry and Environmental Studies

MGT 566/ F&ES 811: Metrics, Tools and Indicators in Corporate Responsibility
Spring Session 2016 (Jan 25 May 9), Monday and Wednesday 10:10-11:30 AM
Instructor:
Office Hours:
Response Policy:

Todd Cort, Lecturer, todd.cort@yale.edu, (203) 436 9651

Office hours immediately following class and by appointment
Generally available during the workweek by phone and email. Students can expect a response within
24 hours of most correspondence.

Course Overview
This is an applied course designed to address some of the fundamental challenges in implementing a relevant sustainability
strategy: What sustainability issues should we manage? How should we measure performance? How do we demonstrate
financial value from our efforts? To answer these questions, this course focuses on methods to build out sustainability metrics and
indicators using current tools in the trade.
For purposes of this course, we treat corporate sustainability and corporate responsibility as interchangeable (collectively
termed CR) as the strategies and management practices are essentially the same whether the goal is to be sustainable or
responsible. A strategically relevant CR program must seek to build on the values of CR to the business and the business
stakeholders. Therefore, this course is structured around the top values that CR can bring to a business. Once we identify the
value pathway, we explore tools (standards, guidelines, benchmarks, certifications, analytic tools, etc) and metrics available to
measure performance against those tools in order to achieve the desired value. The course relies heavily on class discussions
through case studies, debates, hypothesis testing, role-playing and student presentations. The purpose of this course is to introduce
students to the knowledge and tools used by practitioners in CR. Although this course explores details of the CR strategy
implementation, it is designed to link CR to the overall business drivers and is therefore relevant for any potential corporate
manager or consultant.
The Course is split into four (4) CR Value Pathways. For each pathway we will discuss key dilemmas associated with the value
pathway, discuss tools, metrics and indicators available to address the dilemma and then explore one or more business case
studies through student discussions and/or presentations.

Pathway 1: Finance, Capital and Investor Confidence

We will discuss tools and expectations of investors to value company CR efforts. We will look at multiple investment
vehicles including private equity, public finance and green bonds/fixed income.
Pathway 2: Risk Mitigation, Reputation Management and Credibility
In this section we will discuss risk assessment tools in CR (Materiality) and how this can be embedded in other management
tools in the company. We will explore risk specifically through the methods to build reputation and credibility of the business
using CR. We will discuss CR Reporting guidelines, the move toward integrated reporting, green marketing standards,
assurance standards, brand ratings and other credibility mechanisms.
Pathway 3: Innovation and Intrapreneurship
Here we will discuss the role of CR and stakeholder engagement in driving innovation within the company, within the
employee base and along the value chain.
Pathway 4: Sustainability Accounting
We will finish the class by looking at our ability to quantify and monetize these various metrics for a business in order to
make more informed decisions on sustainability return on investment.

Learning Objectives
CR is a broad and detailed field of practice and so it can be overwhelming to even begin tackling these complex and interrelated issues. Students will emerge from this course able to break CR challenges into discreet aspects, determine rational
means to measure performance in these aspects, and then re-connect the aspects into a cohesive vision of the sustainable
company. Students will also graduate with the ability to compare, in a meaningful way, the metrics of CR and the metrics of
corporate financial performance.
At the end of the course, students will be able to:
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Yale School of Forestry and Environmental Studies

Develop CR metrics that measure performance against business and stakeholder value

Use metrics, indicators and tools to create more effective management mechanisms

Recognize and apply the pre-eminent tools used today in CR management and communications

Assess the strengths and weaknesses of benchmarks and awards schemes in CR; and

Apply different mechanisms available to control and/or influence CR performance along the company value chain.

Course Requirements (Assignments)

Students will be evaluated on class participation (20%) and a deliverable (15% or 20% per deliverable) associated with that
sectionss case study.
Case Study Deliverables (90% total)
Case study deliverables should be emailed to the instructor or TA prior to the start of the class session on their due date.
Case Study Deliverable 1 (15%) GPSU Low Carbon Investing
Case Study Deliverable 2 (15%) Essar Reputation Management
Case Study Deliverable 3 (15%) Dow Chemical: Innovating for Sustainability
Case Study Deliverable 4 (15%) NS True Value Accounting
Case Study Deliverable 5 (20%) Axas Sustainability Strategy
Class Participation (20%)
Discussion in class is a critical element of the course and therefore attendance to each class is mandatory. Students are
expected to come well prepared to discuss topics in class. Case Study discussions in particular require substantial
preparation so that students understand the details, contributors and nuances of the case study before entering the class
session. While the class discussions are intended to be voluntary, we will rely on cold calling as necessary to
determine student preparation and to address critical aspects of each topic. Discussions are expected to be challenging,
yet civil.

Evaluation/Grading
Students will be evaluated based on two aspects. The evaluation criteria are presented below:
1) Case Study Deliverables (4 case studies, 15 points each, 60 points total)*
a. 3 Points: Deliverable answers the business dilemma
b. 5 points: Deliverable presents a clear logic to support the answer
c. 5 Points: Deliverable uses calculations, data and/or cited evidence to support the answer.
d. 2 Points: Deliverable is presented within the length limits
2) Class Participation (20 points)
a. 4 points: Attendance. (1 point removed for each unexcused absence up to 2)
b. 16 Points: Active participation in class. These points will be assigned based on tic-marks during class: 5 ticmarks for presenting; 1 tic-mark for posing a question or suggesting an answer to a posed question. Final point
allocation to be determined based on curve around average student tic-marks.

*The Axa case study (20 points) will use a similar grading structure scaled to 20 points

Course Policies
Late work
There are 5 deliverables. Deliverables are associated with case studies each section and will be due at the beginning of class
via email to the instructor or TA. The instructor will respond to each submitted deliverable by email and it is the
responsibility of the student to ensure that their deliverable has been received by the instructor. Deliverables may be
submitted up to one day late for a 25% automatic reduction in score. No deliverables will be accepted over 24 hours after the
due date/time.
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Yale School of Forestry and Environmental Studies
Course Schedule/Course Calendar*
*Dates subject to change based on guest speaker availability
Date
Jan 25

Jan 27
Feb 1
Feb 3

Topic
Introduction to the
course; Defining
metrics, tools and
indicators
Defining CR;
World of CR
metrics
State of CR Data
CR metrics and
data needs of
investors

Readings (**Mandatory)
Access to Capital and Investing

Assignment Due

Cort, T. and Esty, D. Corporate Sustainability Metrics:

What Investors Need and Dont Get, HANDOUT
Flammer, Caroline, Corporate Social Responsibility and
Shareholder Value: The Environmental Consciousness of
Investors (July 18, 2011). Available at SSRN:
http://ssrn.com/abstract=1888742 or
http://dx.doi.org/10.2139/ssrn.1888742 (29-page PDF)
Eccles, R.G., Ioannou, I. and Serafeim, G. The Impact of
Corporate Sustainability on Organizational Processes and
Performance (24 pages)
Reimsbach, D. and Hahn, R. (2013) (15 pages), The Effects of
Negative Incidents in Sustainability Reporting on Investors
Judgmentsan Experimental Study of Third-party Versus Selfdisclosure in the Realm of Sustainable Development. Bus. Strat.
Env.. doi: 10.1002/bse.1816
W. Brooke Elliott, Kevin E. Jackson, Mark E. Peecher, and Brian
J. White (2014) The Unintended Effect of Corporate Social
Responsibility Performance on Investors' Estimates of
Fundamental Value. The Accounting Review: January 2014, Vol.
89, No. 1, pp. 275-302. doi: http://dx.doi.org/10.2308/accr-50577
www.sasb.org
http://www.theiirc.org
http://en.wikipedia.org/wiki/Environmental,_social_and_corporat
e_governance (1 page)
http://www.hbs.edu/faculty/Publication%20Files/11100_7f383b79-8dad-462d-90df-324e298acb49.pdf

Feb 8

Feb 10
Feb 15

Guest Speaker:
Robert Jenkins,
Thompson
Reuters
Green Bond
standards and due
diligence
Guest Speaker:
Anadi Jauhari,
Emerging Energy
and Environment

TBD

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Yale School of Forestry and Environmental Studies

Feb 17
Feb 22

Feb 24

Investment Group
(EEEIG)
Divestment;
GPSU Case Study
Discussion
Public Finance;
Conservation
Finance; AML
Case Study
Discussion
Materiality

** CASE STUDY: Yale School of Management, GPSU Low

Carbon Investing

GPSU Case
Study
Deliverable

** Abandoned Mine Land Conservation Finance Case Study

(HANDOUT)

Reputation and Risk Management

http://www.kpmg.com/Global/en/IssuesAndInsights/ArticlesPubl
ications/Documents/materiality-assessment.pdf (19-page PDF)
Yilmaz, A.K. and Flouris, T. (2010) Managing corporate
sustainability: Risk management process based perspective
(http://www.academicjournals.org/article/article1380703008_Yil
maz%20and%20Flouris.pdf) (pp. 162-171)
http://www.ibanet.org/Article/Detail.aspx?ArticleUid=60827E4944DF-43DE-94B2-11157DB1FDB9#introductions (Law, risk
mitigation and sustainability) (1 page and 2 videos totaling
38:34)
KPMG The Essentials of Materiality Assessment, October 2014
AccountAbility, Redefining Materiality II:
Why it Matters, Whos Involved,
and What It Means for Corporate Leaders and Boards, August 2013

Feb 29

CR Reporting,
Integrated
Reporting

http://www.pwc.com/us/en/view/issue-14/how-credible-is-yoursustainability-reporting.jhtml
(1 page)
Markus J. Milne, Rob Gray (2012) W(h)ither Ecology? The
Triple Bottom Line, the Global Reporting Initiative, and
Corporate Sustainability Reporting, Journal of Business Ethics,
November 2013, Volume 118, Issue 1, pp 13-29
http://www.accountability.org/standards/aa1000as/index.html
(28-page PDF)
https://www.globalreporting.org/reporting/g4/Pages/default.aspx
http://www.ipieca.org/publication/oil-and-gas-industry-guidancevoluntary-sustainability-reporting-2010-update (156-page PDF)
Perego, Paolo and Kolk, Ans, Multinationals Accountability on
Sustainability: The Evolution of Third-Party Assurance of
Sustainability Reports (May 19, 2012). Journal of Business
Ethics, 2012, 110(2), pp. 173-190. Available at SSRN:
http://ssrn.com/abstract=2062900
A Conceptual Framework for Investigating 'Capture' in Corporate
Sustainability Reporting Assurance.. / Smith, John; Fairbrass,
Jenny; Haniffa, Roszaini. In: Journal of Business Ethics, Vol. 99,
No. 3, 03.2011, p. 425-439.

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Yale School of Management

Yale School of Forestry and Environmental Studies
(Consequences of mandatory CSR Reporting) (35 pages)
Hodge, K., Subramaniam, N. and Stewart, J. (2009), Assurance
of Sustainability Reports: Impact on Report Users' Confidence
and Perceptions of Information Credibility. Australian
Accounting Review, 19: 178194. doi: 10.1111/j.18352561.2009.00056.x
Mar 2
Mar 7

Guest: Rodney
Irwin, WBCSD
Case Study
Discussion: Essar
Reputation
Management

** CASE STUDY: Essar Reputation Management

1)
http://www.nytimes.com/2014/11/18/world/coal-rush-inindia-could-tip-balance-on-climate-change.html?ref=business
2)
Www.essar.com(with emphasis on sustainability pages)
3)
http://www.nytimes.com/2014/11/18/us/clean-mining-adeception-in-kentucky-groups-say.html?ref=business

Essar Case Study

Additional resources:
1)
http://www.lspr-education.com/knowledgecentre/measuring-reputation-management.html
2)
http://www.hkstrategies.com/insights/executive-viewbrand-metrics
3)
http://www.icmm.com/document/6095
4)
http://www.esmt.org/fm/13/Working
%20Paper_Metrics.pdf (Section III Only)
Mar 28

CR Standards

Spring Break
Global Reporting Initiative (GRI) G4 Voluntary Reporting
Guidelines
AA1000 Stakeholder Engagement Standard
SA8000: Section 9 Management System
http://www.bsigroup.com/en-GB/iso-14001-environmentalmanagement/

Mar 30
Apr 4

Guest Speaker,
Soledad Mills,
Equitable Origin
BP Stakeholder
Engagement Case
Discussion

EO100 Certification Standard

TBD
Innovation and Intrapreneurship

Apr 6

Apr 11

Guest Speaker:
Paul Anastas and
Julie Zimmerman
(To be
Confirmed)
Guest Speaker:
Paul McManus

** Harvard Business School Case: Goldman Sachs: The 10,000

Women Initiative, Christopher Marquis and V. Kasturi Rangan
(25 pages)
http://www.theguardian.com/sustainable-business/companiescrowdsource-sustainable-innovation-water (1 page)

Apr 13

Guest Speaker:
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Yale School of Forestry and Environmental Studies
Apr 18
Apr 20

Paul McManus
Dow Innovation
Case Study
Discussion
Intrapreneurship

Apr 25

Guest Speaker:
KPMG

Apr 27

Guest Speaker:
Cary Krosinsky

** CASE STUDY: Harvard Business School Case # 9-112-064,

Dow Chemical: Innovating for Sustainability, Eccles, R.,
Serrafeim, G, Xin Li, S.
TBD
Cost, Efficiency and Accounting
**http://www.kpmg.com/Global/en/topics/climate-changesustainability-services/Documents/a-new-vision-of-value-v1.pdf
(116 pages)

Dow Innovation
Case Study

Puma Environmental Profit and Loss Statement

http://www.teebweb.org
http://www.thesroinetwork.org/sroi-analysis (15-minute video)
http://sixsigmabasics.com (1 page)
http://www.epa.gov/sustainability/analytics/benefit-cost.htm (1
page)
http://en.wikipedia.org/wiki/Life-cycle_assessment (1 page)
http://www.ecosystemvaluation.org

May 2
May 4
May 9

NS Case Study
Discussion
Axa Student
Presentations

** CASE STUDY: NS True Value Accounting

NS Case Study

** CASE STUDY: Yale School of Management, Axas

Sustainability Strategy

Axa Case Study

Axa Student
Presentations

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