"Sirius XM Radio's interview of Honest Tea's TeaEO" by Eliza Roberts

I had the fortune of attending a live interview at the Sirius XM radio station of the TeaEO of Honest Tea, Seth Goldman. I have always loved Honest Tea as a beverage. My favorite flavor is “Peach Oolalong” “Just a Tad Sweet.” But, Seth's modesty, his passion for using business to bring about positive change, his humor, and his honesty about work/ life balance and the challenges of starting your own company made me love Honest Tea even more.

Seth got the idea to start Honest Tea while sitting in a business class at the Yale School of Management and discussing the beverage business case on Coca-Cola and Pepsi. He realized that there were sweet sodas and watery beverages, but no drinks that were less sweet. After graduating and experimenting in his kitchen in Maryland with thermoses on loan to him and a tea that he said tasted initially like grass, he approached the local Whole foods to tell them about his new concoction.

The next thing he knew, Whole Foods ordered 15,000 bottles as an experiment and Seth and his co-founder, a professor at Yale, had to find a way to manufacture it on a large scale. He and some MBA interns offered samplings at stores throughout the region and by the end of the month it was the best selling tea in all stores. Today, 10 years later, Honest Tea is the best selling beverage within the healthy drinks category and has grown to 60 million in sales. Honest Tea was also the first to offer fair trade tea in 2003 and by March of this year expects all of its teas to be fair trade.

What is his advice to MBA students, or people who want to be just like him? Seth offered two words of wisdom:

1) Do what you really care about. Don’t take a job that you are NOT going to be fired up to go to every day.

2) Once you find what you want to do, go after it like nothing can stop you!

What are his thoughts on Corporate Responsibility? For companies working to implement CSR initiatives, the best approach is not just taking money from high profit margins and distributing it as in-kind donations to a local non-profit, but rather finding a way to make CSR the core of what you do. For Honest Tea, giving back and offering healthy, organic, fair trade beverages to consumers is at the core of what they do. His goal in running Honest Tea is to not just be successful and grow the business, but to try to change the way business operate by demonstrating that organics, healthy foods, and sustainability should be relevant to companies operating within the private sector.

Honest Tea’s corporate culture is all about honesty. The office has absolutely no walls to encourage innovation. There is an experimental kitchen that is filled with random dried fruits shipped in from farmers from all over the world who want to supply to Honest Tea. And my favorite part, the office has a gong. Apparently, the gong is hit whenever the company achieves a sales goal. I love the image of Coca-Cola executives visiting the office upon purchasing 40% of Honest Tea’s shares, yet unable to have a private meeting because of the lack of walls and at the same time trying to make sense of the gong hanging from the office wall and the test kitchen that is the only test kitchen used by Honest Tea to create new products.

What kind of impact will Coca-Cola’s outright purchase of the company within the next year or so have on Honest Tea? Seth explained that he expects some cross-fertilization to take place between the companies. He was invited to attend a sustainability brainstorming session in Atlanta recently and hopes to be able to influence sustainability initiatives taken on by Coca-Cola. The most positive outcome is that Honest Tea will be able to take advantage of Coca-Cola’s distribution network. I will not only be able to purchase my Peach Oolalong at the stores in the DC metro area, but at truck stops, convenience stores, and everywhere else where Coca-Cola delivers at present. With Honest Tea’s new distribution capabilities, Honest Tea will be able to increase its sales and in turn increase purchases from fair trade suppliers, thus supporting the fair trade and organics movement throughout the US and the rest of the world. Furthermore, more US consumers will have an option to by a healthier alternative to soda and purchase the drink at a lower cost than other organic beverages.

But, what will happen to Honest Tea in the coming years? Will Honest Tea be able to maintain its corporate culture (and the gong in the Bethesda, Maryland office)? I hope so. The key now is for Honest Tea to demonstrate to Coca-Cola that the culture, employees and the way it operates today brings value to the company and to the delicious tea products that end up on the shelves of retail stores today.

Eliza Roberts Globa MBA, 2011

"The Fossil Fuel Alternative Energy Imperative Chapter 1" by Andrew Seal

Algeria, Angola, Canada, Colombia, Iraq, Mexico, Nigeria, Russia, Saudi Arabia, Venezuela. What do these countries have in common?

The list includes several countries that are described by the US State Department as having “long-term, protracted conditions that make a country dangerous or unstable.” The list includes countries that either languish at the bottom of or don’t even qualify for the Human Development Index. But most of all, this list constitutes the top 10 (83%) of all U.S. crude oil imports.

Oil is a destabilizing, and strategic, natural resource. It both props up totalitarian regimes and shapes U.S. foreign policy. The Strait of Hormuz is a perfect example of this. Located between Oman and Iran, the Strait of Hormuz connects the Persian Gulf with the Gulf of Oman and the Arabian Sea. According to the US Department of Energy’s Energy Information Administration “Hormuz is the world's most important oil chokepoint due to its daily oil flow of … roughly 40 percent of all seaborne traded oil.” Stationed immediately nearby is the US Navy’s 5th Fleet, which also serves as the headquarters of the Naval Component Command of US CENTCOM and is responsible for all naval combat operations in the Mid-East region.

While examples of this kind abound, the US has done little to wean itself from the Oligopolistic oil market, which is overwhelmingly dominated by OPEC (over half the above countries in the top 10 are OPEC member nations.) The strategic importance of and our addiction to this natural resource supports oppressive regimes and sends our fighting men and women to areas of the world they would not need be otherwise. We need to change this.

Start by walking and riding a bike, or use public transit whenever possible. If personal vehicle use is unavoidable in the short term, ensure that you carpool as often as possible, maintain your vehicle and properly inflate and rotate your tires. Electric vehicles are now becoming widely available for purchase at a variety of dealerships. As the world’s leading consumer of oil (approximately 20million barrels a day), we have a tremendous opportunity to create change.

Shifting the oil demand curve will lower prices and we can use that change in price to subsidize electronic vehicle and renewable energy infrastructure that will further foster decreased fuel prices and increase our leverage over the OPEC cartel while fostering the growth of American green jobs.

Decreasing demand for oil is the right thing to do and it’s the smart thing to do.

Sources:

http://tonto.eia.doe.gov/pub/oil_gas/petroleum/data_publications/company_level_imports/current/import.html

http://www.eia.doe.gov/cabs/world_oil_transit_chokepoints/Hormuz.html

http://www.eia.doe.gov/country/index.cfm?view=consumption

Andrew Seal Global MBA, 2012

Certificate in Responsible Management Open House!

Interested to learn more about the Certificate in Responsible Management? Attend the open house on Tuesday, September 28 from 6-7:30pm in Duques room 520.

If you can't attend the event but want to learn more, feel free to email Eliza Roberts at ebr@gwmail.gwu.edu or Professor John Forrer at jforrer@gwu.edu

"Climate Corps 2010: Inside the Energy Efficiency Cubicle" by Jeremy Dommu

I generally don’t like cubicles. Before I started my MBA at the George Washington University, I spent five years working at a cubicle. When I left my job in public accounting, I was relieved at the thought of abolishing cubicles from my life forever. But now as a 2010 EDF Climate Corps fellow at PHH Arval, I have never been so proud to have my very own cubicle. In fact, I don’t even call it a cubicle – this is now my workstation. I’ve even decorated it with EDF and Net Impact signs. I think the reason for my renewed enthusiasm for office life is that I have never felt more passionate about my work.

As an EDF Climate Corps fellow, I am responsible for making the business case for sustainability. I’m helping my host company, PHH Arval, simultaneously improve its bottom line while increasing environmental performance. This win-win situation is created by recommending projects that reduce energy usage and in turn lower utility bills in a commercial office building while cutting harmful greenhouse gas emissions.

PHH takes sustainability seriously. Their award-winning PHH GreenFleet program, for example, works with many of today’s leading transportation companies to encourage less fuel consumption, more efficient driving and the improvement of fuel economy for fleets. PHH also practices what it preaches. Through the dedication of an environmentally conscious facilities department and the commitment of a voluntary Green Team, PHH has already reduced electricity consumption by 20 percent in the past 5 years, obtained an EnergyStar rating that puts it in the top 25 percent of all office buildings in its class and is well on its way to meeting its Environmental Protection Agecny Climate Leaders goal.

Even for such an environmentally responsible organization, I am finding that significant opportunities for lowering energy consumption still remain in all the primary areas of the office building. As I learned during EDF’s week-long Climate Corps training, “low-hanging fruit always grows back.” So, even for the most environmentally conscious organizations, a renewed look at energy consumption is bound to turn up new opportunities to save money as technology changes, cost barriers drop and new standards, regulations and incentives are offered.

After noting that an above-average amount of electricity usage at PHH is attributed to lighting, I’ve been analyzing several projects that I hope will reduce lighting costs:

• The installation of occupancy sensors in closed spaces
• Daylight harvesting to take advantage of the natural light that flows in through the wall-to-wall windows
• A review of nighttime and weekend lighting policies

I’m also reviewing the HVAC system and believe that the heating and cooling loads can be reduced through improvements to insulation, air sealing and window film. Computer Power Management software can also be installed to minimize energy waste from office equipment, and Vending Misers can be installed on all vending machines in the building.

Furthermore, I’ve been thinking about data centers. EDF organizes weekly expert calls by leaders in energy efficiency. On one of those calls, Don Beaty, a lead consultant for datacom facilities and designer for all Google data centers worldwide, explained that there is absolutely no reason for data centers to be cooled to a frigid 68 degrees or lower. Instead, ASHRAE environmental specifications allow for the intake temperature to be set as high as 80 degrees without risk to equipment and without impacting performance. Before the call took place, I reserved a conference room and invited the IT managers from PHH to attend. The message about temperatures in data centers immediately reached its intended audience from a very credible source. Now, I’m working with the energy-conscious IT department to increase the temperature in the data centers at PHH. I am currently working on quantifying the savings from this increase; which I believe will be substantial.

As this example illustrates, energy efficiency is easy money and good business. While there is no upfront cost of increasing the temperature set-point in a data center, some of the other projects I am considering do require an initial investment. Yet, by analyzing these projects from a financial perspective, just like a company does with any other investment they make, I am finding that these projects are smart business ventures with high returns, low risk and quick pay-backs. So, as a business student and environmentalist, I’m proud to sit at the energy efficiency cubicle, formed by the benefits these projects have on the environment, energy usage and to a company’s bottom line.

*Jeremy Dommu is a 2010 EDF Climate Corps Fellow at PHH Arval. This content is also posted on the Environmental Defense Fund Innovation Exchange Blog and Greenbiz.com. Further coverage of the Climate Corps program is available at GreenBiz.com/edfclimatecorps.

Volunteer Opportunity--Tubman Elementary

If you are interested in this volunteer opportunity, email: albarr@gmail.com or click on the link below.

Working together, we have made a significant impact. Through the hard work of volunteers, teachers, and students, the percentage of Tubman students proficient in reading increased for the second year in a row (while the average DC elementary school actually moved backwards on this measure). In addition, DC-CAS results indicate that Tubman students who participated in Reading All-Stars last year were twice as likely to become proficient in reading as their peers who did not participate. So our involvement truly made a difference.

However, there is still so much work left to do. There are still far too many kids – both at Tubman and across the city – that cannot read at grade level. So we’ll be back at Tubman this fall, working harder than ever, to help every student there reach proficiency in reading. It’s a huge challenge, but it’s also an opportunity to make a huge difference. Can you volunteer this fall to make sure every Tubman student that needs help receives it? Get details and sign up now by clicking here. We're making progress. We can't stop now.

"The Seoul of Business School" by Jeremy Dommu

It's 11 a.m. on May 20 in Seoul, South Korea, and 10 students from the George Washington University MBA, including myself, are frantically scrambling to put the finishing touches on a presentation we are scheduled to deliver in three hours. We worked for seven weeks back home in Washington, D.C., researching the wind turbine business and had already spent two weeks in South Korea consulting with Hyosung to develop a strategy to expand its turbine manufacturing business in Korea, Latin America, and the U.S. With just hours until two senior vice-presidents of the wind business are scheduled to arrive at our hotel's conference room, we are still tweaking PowerPoint slides and fine-tuning our oral delivery of slide content.

This is the culmination of my first year in GW's Global MBA program, and like the year that has just preceded it, it's ending with a flurry of activity and a rapid coordination of efforts. Armed with the tools of finance, supply chain management, business strategy, international management, business communications, macroeconomics, and marketing—all part of our recently completed first-year core classes—our team works together seamlessly to add the finishing touches to aid in the delivery of a set of recommendations we hope can help Hyosung achieve its goal of becoming one of the top 10 global providers of wind energy solutions by 2017.

For me, the opportunity to consult in an international setting was one of the driving forces in my decision to attend GW. This residency was more than just a field trip after a 14-hour flight. It was a consulting engagement at its heart and a good opportunity to employ the business skills we have developed over the past year. I chose the trip to Korea over other trip options to India, Sweden, Serbia, and Mexico, because its focus on the intersection of business and public policy and the development of renewable energy resources so closely aligns with my career goals. While my excitement grew as the trip approached, my wildest expectations couldn't have prepared me for the learning experience, networking opportunities, and sheer enjoyment I was so fortunate to get during GW's international residency project in Seoul.

FROM WIND TURBINES TO CHICKEN FEET

The focus of our trip was exploring South Korea's green growth strategy. Korea has pledged to stimulate its economy through the development of green technologies and innovation. Twenty GW students were on the trip, divided in two teams. While 10 of us worked with Hyosung on wind turbines, the other 10 consulted with SK Energy on the development of lithium ion batteries, which will be used to power a new fleet of electric vehicles worldwide.

Both of these projects provided ample opportunities to apply practical MBA skills to new industries. But beyond the education, this trip was an amazingly good time characterized by karaoke nights, Korean baseball, sleep dancing (what happens at 6 a.m. at the club when your mind and body shut down on the dance floor), chicken feet, and more soju than I care to remember. Shepherded down the streets of Seoul by our faithful TA and patient guide, Sungha, all 20 GW MBAs made the most of this incredible opportunity, and I believe all of us are significantly better off after this experience.

I think what truly made the trip such a success was the leadership of our professor and guide, Danny Leipziger. Simply put, Leipziger is a rock star in Korea. He joined GW's MBA faculty in 1997 after a long career at the World Bank, where he led the bank's first economic recovery loan to South Korea after the Asian financial crisis. While we were in South Korea, Leipziger set up a series of meetings with various officials, economists, assemblymen, business leaders, and media personnel. The meetings complemented the work we were doing with our client companies as they worked to respond to the public policy push for green innovations.

GW has a significant network of more than 800 alumni in Korea. Several of these alumni stepped forward to act as our gracious and extremely generous hosts. The success of these individuals and their insights into the Korean business culture served as both inspiration and education when they hosted a 20-course traditional Korean meal, a night reminiscent of D.C. power dining at a Western-style steak house, and topped it off with VIP entrance and table service at one of Seoul's hottest nightclubs. This friendliness will not soon be forgotten, and my classmates and I look forward to continuing to build on the relationships and networks we developed on our trip.

This trip demonstrated the value of an MBA, as I was able to apply the skills I have acquired over the past year. I have become a better communicator and team player, and I'm better versed in the multiple functional areas of business that are required to become a leader in management and a fine strategist to others. The trip exemplified the Seoul—err, soul—of business school, which I would characterize as the combined application of existing knowledge while simultaneously obtaining experience in new subject matters.

Personally, I am broadening my knowledge of the energy industry as I prepare to become a champion for demonstrating the financial value that can be derived when businesses embrace environmental sustainability. Going to Seoul was the perfect capstone to an incredible first year of business school. After our two distinguished guests departed following our presentation, I can look back now with confidence that we provided them with several viable strategies and ideas that I hope will help them grow as much as we have during this incredible experience.

Jeremy Dommu Global MBA, 2011

*This is taken from his Businessweek Blog

"The Right to Water" by Eliza Roberts

“Access to safe water is a fundamental human need and therefore a basic human right.” ~Kofi Annan, United Nations Secretary General

Water may be regarded as a basic human right. Yet, today more than 1 in 6 people in the world don’t have access to safe drinking water. According to a recent World Health Organization Assessment, more than 5 million human beings die each year from illnesses linked to unsafe drinking water; one-third of these deaths are in India alone.

India currently has the second largest population in the world with 1,182,783,000 people. As the population continues to increase and as more Indians move into the middle class thus consuming more water on a day-to-day basis, water consumption is going to increase at an alarming rate.

Many arid regions of India depend heavily on groundwater for farming and basic survival. Some 85% of the population depends on groundwater for their water supply. Yet, between 1947 and 2000, access to groundwater per capita decreased from 5,150 cubic meters to 2,200 cubic meters. With increasing populations in India, it is expected that by 2017, there will be a further decline of per capita availability of groundwater to 1,600 cubic meters.

If that doesn’t sound alarming enough, try this.. Glaciers and snow in the Himalayas are a primary source of water for rivers throughout the country. Yet, with climate change this important source is melting quickly and is expected to decrease dramatically in the coming years. Climate change is also expected to alter the monsoon patterns, which may leave many farmers with arid non-farmable land.

In addition to concerns about the supply of water in India, there are a number of problems surrounding the quality and cleanliness of the water that is available. Many of the rivers have been mismanaged, overused, and polluted. The Ganges, for example, the holiest river in India is also the most polluted river in the world. Approximately 90 million liters of sewage are dumped in the river everyday.

In India, 70 to 80% of illnesses are related to water contamination or poor sanitation and cases of these illnesses are on the rise. Those afflicted face a number of challenges, including inability to work and high medical bills. These effects can be particularly debilitating and costly for those without the resources to afford medical bills and make up for lost days at work making it more of a challenge for them to escape from poverty.

Despite the daunting information and statistics that I have layed out, there are ways to address these problems and minimize their impacts in the future. Many development organizations, governments worldwide, NGOs and the Indian government are investing money into water and sanitation projects to try to deal with water issues throughout the country. Many of these projects have been successful, but there are still too many people throughout the country without access to safe water, toilets and sanitation.

There needs to be more of a focus throughout India and the world on the importance water. It is often not until resources become depleted that people begin to recognize their value. As water sources become more polluted and depleted, I can only hope that people will begin to recognize its importance and pool together greater resources to address the challenges that lay ahead.

As water challenges are addressed, it is important to recognize that solutions cannot simply come from one sector. Non-profits alone, for example, cannot address these challenges throughout the country. There needs to be a multi-pronged approach with funding and development from NGOs and governmental entities both in India and throughout the world; corporations that see the value in investing in innovative water technologies that reach both the elite, as well as the poor; Microfinance Institutions that provide loans for the purchase of health care, water filters and other technologies; government policies that work to conserve and protect water sources, as well as effective implementation of these policies at the state and local level; citizens throughout the world who conduct research and pilot projects to find innovative, cost-effective solutions to address the challenges ahead; and citizens on the ground who implement grassroots advocacy campaigns to conserve and protect their water.

Eliza Roberts Global MBA, 2011

*This is taken from Eliza's wordpress blog