Corporate Social Responsibility and Environmental Management

Corp. Soc. Responsib. Environ. Mgmt. 21, 167–174 (2014)

Published online 2 April 2013 in Wiley Online Library
(wileyonlinelibrary.com) DOI: 10.1002/csr.1313

The Sustainability Manager: A Tool for Education and

Training on Sustainability Management
Rupert J. Baumgartner1* and Thomas Winter2
1
Institute of Systems Sciences, Innovation and Sustainability Research, University of Graz, Austria
2
Attractive! att15 GmbH, Graz Austria

ABSTRACT
There is a rising awareness and interest of corporations about corporate sustainable behaviour.
Sustainability issues are increasingly integrated into corporate strategies, actions, and behav-
ior. Different approaches, systems, and instruments have been developed to support corporate
sustainability management. An important aspect of any sustainability-related corporate
initiative is to train employees and to develop sustainability-related competencies. To enable
education and training in this area, an interdisciplinary team of researchers, consultants
and practitioners developed a management game called ‘sustainability manager’ (www.
sustainabilitymanager.at). This paper presents the key features of this business simulation
and reflects the experiences of the application of this management game in training.
This management game is based on a business simulation, i.e. a company is modelled using
web technology and soft computing approaches. The sustainability manager can be used as a
web-based training instrument for sustainability management and can be adapted to specific
training situations. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment.

Received 2 January 2012; revised 26 March 2012; accepted 27 August 2012

Keywords: sustainability management; CSR; business simulation; training; management game

Introduction

T
HERE IS A RISING AWARENESS AND INTEREST OF CORPORATIONS ABOUT CORPORATE SUSTAINABLE BEHAVIOUR.
Sustainability issues are increasingly integrated into corporate strategies, actions, and behaviour. Different
approaches, systems, and instruments have been developed to support corporate sustainability management
(Hart, 1995; Hart and Ahuja, 1996; Roome, 1998; Dyllick and Hockerts, 2002; Figge et al., 2002; Porter
and Kramer, 2002; Bansal, 2005; van Kleef and Roome, 2007). An important aspect of any sustainability-related
corporate initiative is to train employees and to develop sustainability-related competences (Ahmad et al., 2012).
Corporations have cognitive resources, technologies, and skills which can be used to contribute positively to a
sustainable transition. Some corporations engage directly in sustainability-related activities, but many others
need regulations and incentives (Laudal, 2011a). Regardless of its motivation, a corporation has to organize, to
structure, and to embed sustainability related actions into its activities, strategies, and routines, i.e. into its
management systems.

*Correspondence to: Rupert J. Baumgartner, Institute of Systems Sciences, Innovation and Sustainability Research, University of Graz, Austria.
E-mail: rupert.baumgartner@uni-graz.at

Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment
168 R. J. Baumgartner and T. Winter

To enable education and training in the field of sustainability management, a management game called sustainability
manager was developed by an interdisciplinary team of researchers, consultants, and practitioners. This paper presents
the key features of this business simulation and reflects experiences from applying this management game in several
business seminars as well as training in master courses at universities. The paper is organized as follows: in the next
section the concept of sustainability management is discussed and generic aspects which should be integrated into
training programs for sustainability management are identified. In the following section the technical solution of the
management game is described, followed by a discussion of the practical application of this management game in
universities and business training. Critical reflections and conclusions build the final part of this paper.

Sustainability Management

Sustainable Development, CSR, and Sustainability Management

The United Nations Brundtland Commission defined sustainable development as ethical vision (World Commission
on Environment and Development, 1987). Sustainable development is usually associated with three dimensions or
pillars, i.e. the environmental, social, and economic dimensions (Gladwin et al., 1995; Elkington, 1998). To contribute
to the vision of sustainable development, a more tangible definition is necessary. The Framework for Strategic
Sustainable Development (FSSD) – developed by ten pioneering sustainability scientists – offers such a definition in
using four general principles for sustainability (Robèrt et al., 2002):

In a sustainable society, nature is not subject to systematically increasing concentrations of substances

extracted from the Earth’s crust, nature is not subject to systematically increasing concentrations of substances
produced by society, nature is not subject to degradation by physical means and in that society people are not
subject to conditions that systematically undermine the efforts to meet their needs.

The role of business regarding sustainable development has usually been discussed as ‘responsibility’ to society; here
responsibility is seen as any effort to eliminate or reduce negative environmental or social effects of business activities
(Carpenter and White, 2004). As this is understandable based on the many problems we face through unsustainable
development, one should also think about how business can actively contribute to the goals of sustainable development.
In this case, sustainable development can be a source of value creation for the company, for society, and for
nature. Approaches focusing on responsibility alone are only successful over a certain period of time: for instance
eco-efficiency, as an aspect of environmental sustainability, results in big savings in the starting phase. However, in
the following years it becomes harder and harder to find further improvements (Carpenter and White, 2004).
Depending on one’s underlying view, corporate social responsibility (CSR) can be seen as business’ efforts to
integrate either both environmental and social issues (EU, 2001) or social issues alone (Carroll, 1999; Ebner and
Baumgartner, 2006) into corporate strategies and operations. To avoid misunderstandings with the term CSR,
in this paper the terms corporate sustainability and sustainability management are used to describe the integration
of environmental and social aspects into management corresponding to the view that CSR is the integration of both
of environmental and social aspects into corporate decision-making.
Integration of sustainability issues is a strategic task (Burke and Logsdon, 1996; Dentchev, 2004; Lankoski, 2007), and
the suitable strategy depends on the relevance of sustainability issues and the organizational context (Baumgartner and
Ebner, 2010). Sustainability management has to focus on innovation, stakeholder requirements, and on efficiency as well
as on effectiveness of business processes. It is important to mention that sustainability management has to respect the
limits of nature; nature could be seen as the ultimate stakeholder. This does not reduce the importance of the
social and the economic dimension but frames it within global natural limits. To have a link to the normative concept
of sustainable development and to avoid ambiguity and fuzziness, sustainability management should be linked to basic
notions of sustainable development like the Framework for Strategic Sustainable Development (FSSD) principles.
A sustainable company is one that contributes to sustainable development by delivering simultaneously
economic, social and environmental benefits (Elkington, 1998). Therefore sustainability management has special
challenges: regard externalities (Laudal, 2011b), avoid or at least reduce negative social and environmental impacts

Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment Corp. Soc. Responsib. Environ. Mgmt. 21, 167–174 (2014)
DOI: 10.1002/csr
Sustainability Manager 169

(Robèrt et al., 2002) and identify opportunities created by (more) sustainable behaviour. All are central aspects for
sustainability management (Baumgartner and Ebner, 2010).

Defining the Content – Using Sustainability Aspects as a Basis for the Management Game
An important step in the development of this management game was to substantiate or validate sustainability management
itself. Any management simulation needs game rules, structures, and cause-and-effect loops to model the management
situation; on the other hand, measuring sustainability and identifying generic relationships between economic, social,
and environmental aspects is challenging (Korhonen, 2003). The starting point was experiences of the development team
in numerous consulting projects regarding sustainability and an extensive literature review of corporate sustainability
management and CSR. The focus was especially on indicators and lists of sustainability aspects discussed in Labuschagne
et al. (2005), Labuschagne and Brent (2006), GRI (2006), and Baumgartner and Ebner (2010).
Based on this literature, the team integrated economic, environmental, and social sustainability aspects into the
management game. This entailed for the economic dimension aspects like innovation and technology management
(and their effect on cleaner production and eco-efficiency), collaboration with stakeholders and partners, knowledge
management, processes, or sustainability reporting (we grouped sustainability reporting with the economic aspects,
which includes economic, social, and environmental issues). Examples for the environmental aspects were the use
of resources (materials, energy) including the use of recycled resources; emissions into the air, water, or ground;
waste and hazardous waste; biodiversity; and ecological issues of the product over the life cycle. Social aspects
were divided into internal and external matters. Internal aspects covered corporate governance, motivation and
incentives, health and safety, and human capital development; whereas, external aspects included ethical behaviour
and human rights, avoidance of controversial activities, avoidance of corruption and cartels, and corporate citizenship.
All these matters have indicators with cause-and-effect chains between indicators. For instance, the issue of innovation
is registered by the indicator ‘innovation capacity’, and it is dependent on other indicators like motivation of employees
and number of training hours. As described in the following sections, the availability of aspects and indicators is
dependent on the actual performance level the player reaches within the management game; the player has to gain
knowledge about sustainability-related aspects in order to be able to improve them. For example, to reduce greenhouse
gas (GHG) emissions, it is necessary to invest in environmental management competencies and in environmental
awareness and controls in order to have the ability to monitor greenhouse gas emissions.
In the following section, we describe the technical aspects of sustainability manager before presenting the game itself.

Knowledge Based Management Games Using Business Simulation

An important aspect of any management initiative is to train and to educate employees. One possible way to do this
is to use management games and business simulation as they allow the learning and training of new competencies
(Hoffmann, 2009). Advantages, when contrasted with classic approaches, are the possibility to repeat the learning
content easily and to learn and test new competencies virtually. This virtual learning and testing also allows failing
without facing real consequences. To benefit fully from the advantages of management games, they should be
designed as knowledge based games. This requires that real world facts and situations are implemented in the game
in a realistic way. As reality is truly non-linear and non-deterministic, yet highly complex, a knowledge-based
management game has to be designed in a similar way to represent this complexity. This means for the case of a
business simulation for sustainability that crucial aspects are an essential part of the business simulation. The
success of the business simulation should be expressed not only in economic terms but also in environmental
and social performance terms. To do this, we used the indicators representing sustainability-related aspects.

Roles and Tasks in Knowledge-based Management Games

Within knowledge-based management games, different roles and connected tasks can be distinguished. These roles
are usually the player, the game administrator, the game engineer, and the system administrator (Table 1). The

Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment Corp. Soc. Responsib. Environ. Mgmt. 21, 167–174 (2014)
DOI: 10.1002/csr
170 R. J. Baumgartner and T. Winter

Role Task

Player Playing the game, communicating

Game Administrator Management and choice of scenarios
Game administration and auditing
Game Engineer Design of facts, rules, and processes
Development of scenarios
Technical implementation
System Administrator Management of game engine, rules, and servers

Table 1. Different roles in knowledge based management games

player is the ‘user’ of the game, and the game administrator supervises the game in the training situation. The game
engineer is responsible for the design and the content of the game, and the system administrator has the responsibility
to manage the game engine, its rules, and the servers.
Using the example of sustainability manager, game engineering was fulfilled by the project partners. The team
collected knowledge that was formalised, expressed in rules, and finally integrated into process flows. The game
design was realised in close cooperation between province experts and technical experts. Then, agile methods were
applied to adapt, improve, and verify the results in an iterative way.

Business Simulation
The basis for a knowledge-based business game is the simulation of reality, including the case for sustainable develop-
ment. Real world facts have to be translated into a virtual ‘simulated’ world. These facts are generated based on data in
the game and rule engine. These data contain relevant information about stakeholders, companies, competitors,
markets, authorities, resources, environment, or other necessary criteria relevant to the management game. The level
of detail of individual data is described by data granularity, which can be adjusted as needed for a specific situation. For
instance, employees can be described in great detail with data about their education, motivation, and productivity, or
just with their factor labour costs. Another important point for realistic business simulations is the appearance of
emergence: a specific situation in the business simulation is not fully explainable by any single aspect of the system;
instead, it depends on non-linear relations between multiple aspects. Expert systems are a very powerful tool to achieve
emergence through high complexity. On the other hand, verification can only be attained by testing because there is no
formal way to prove the system’s correctness anymore.
To determine the actual status in the simulation, the real world data are combined with meta-world facts. These
facts describe the basic features and relations in the simulation. It is important to acknowledge that this simulated
system is path-dependent: each situation and (possible) decision is based on previous situations and decisions. Every
new decision will lead to new situations which are described by changed or new data and facts generated by the
system (the game and rule engine). Historic actions and future possibilities in their entirety form a space of
interaction over time (Figure 1): all previous decisions induced certain actions which had specific impacts. Viewed at
a given point in time, there is only a limited set of concrete management decision to be made; most of them will depend
on past decisions, some of them will be starting points, and a few will mark the end of a more or less complex long-term
process. The user has to reconsider his options thoughtfully period by period throughout the game.

Technical Solution
The technical solution is realised with JBoss Rules (also called as drools), version 5. This software contains an expert
system, rule flows to define processes, and a business rules management system (BRMS). One advantage of this system
compared to other process management systems is that it combines process modelling with artificial intelligence (i.e. a
rule-based expert system).
The relationships between knowledge representation and user interaction are established by the rule and game
engines as shown in Figure 2. The game engine controls the game. It was programmed by Attractive Software
(www.attractivesoftware.com) and it is technically connected to the drools BRMS Guvnor 5. High usability was

Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment Corp. Soc. Responsib. Environ. Mgmt. 21, 167–174 (2014)
DOI: 10.1002/csr
Sustainability Manager 171

SPACE OF INTERACTION
f6

Experience
f1

f3 f4
f7
LINE OF f8
f5 Presence
CONTINGENCY f9
f2

f10

Future Possibilites

Figure 1. Space of Interaction (Baumgartner et al., 2009)

Figure 2. Basic concept of a knowledge-based management game

reached by using modern web and user interface technologies (JavaServer Faces and RichFaces). The game engine
is used for the game cycle management (i.e. initialization of settings and scenarios), periodicity (time-driven evolu-
tion wit save/restore), goals management, game history, rule/flow execution, human task interaction, story-telling,
fact visualisation (tables and graphs), logging and auditing, and finally, interpretation. Additionally the game engine
is used for game administration, game setup, player management, world setup (facts – real world and meta world),
scenario setup, goal set-up, and editing of the story board.
The rule engine is used to edit and use the rules for the simulation; it is managed by the game engine. The rule
engine (Figure 2) consists of a production memory (containing all possible rules) and a working memory (containing
the real-world facts). Similar facts are grouped together to types, for example, all relevant facts about employees are
grouped into one type. Rules are described as if-then-relations which allow logical reasoning (inference). Rules become
activated based on specific criteria at defined points in time. An activated rule can also activate other rules. Rules acti-
vation follows from an expert system using the ReteOO/Leaps algorithm. This expert system allows for a deterministic
and linear activation of rule feedback loops, i.e. rules can be reactivated in case of changed facts.

Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment Corp. Soc. Responsib. Environ. Mgmt. 21, 167–174 (2014)
DOI: 10.1002/csr
172 R. J. Baumgartner and T. Winter

The interaction between the player and the business simulation is based on actions which are induced by the deci-
sions a player must make. As described earlier the availability of these decisions and actions is determined by previous
actions. The game is played as a browser game, which enables the use of the management game with web-browsers like
Internet Explorer, Firefox, Safari or Chrome. As it is not necessary to install specific software to use the management
game, the barriers to use the game are very low and practicability and usability are maximized.

Structure and Design of Sustainability Manager

Sustainability manager is activated based on the technology already described. The goal of the sustainability manager is
to provide a knowledge based management game to educate and provide learners with competencies in sustainability
management. The business simulation includes strategic challenges, organizational structure of the company,
material, energy and cost data. A medium-sized company is used as the training object. The main characteristics, i.e.
initial settings of the game, for the company are the following:
• Production characteristic: assembling of 50ccm light weight cars
• 1200 cars are sold per month
• Price per car: €7600
• 150 employees
• High share of unused production capacity
• Innovativeness is low
The player is asked to make all relevant and necessary decisions. These decisions are grouped into primary man-
agement decisions which are necessary to run the basic processes and additional management actions. Examples
are decisions about the product prices, the number of cars produced in a period, purchasing raw materials, and
hiring employees. Examples of additional management actions are the implementation of a management system or
training activities of employees. The consequences of these decisions and actions are made visible with indicators.
The indicators are grouped according to the dimensions of sustainable development as economic, environmental,
and social parameters. Decisions and actions are structured according to the main elements of Porters value chain
framework (Porter, 1985) – infrastructure, human resources, technology, procurement, purchase, production,
marketing, and sales and services (Figure 3).

Figure 3. Screenshot of Sustainability Manager

Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment Corp. Soc. Responsib. Environ. Mgmt. 21, 167–174 (2014)
DOI: 10.1002/csr
Sustainability Manager 173

The player’s goal is to run the virtual company in a sustainable way. The effects of the decisions in one game
period (e.g. one month) are simulated and sustainability indicators are calculated; these indicators represent the
development of the company with respect to economic, environmental, and social aspects.
An important feature of the management game is inherent uncertainty modelled with a failure probability; this
means that actions can fail despite the fact that actions have been planned carefully. This feature makes the
management game more realistic as this is similar to real world situations where unknown effects and actions lead
to unexpected outcomes. Additionally, sudden events can ‘disturb’ management decisions. Examples are a strike by
supplier companies, a breakdown of production equipment, or intensified environmental controls by authorities.
Another important feature of sustainability manager is that progress towards a higher sustainable outcome
depends on the current status, especially on factors like the motivation and innovation capacity of employees. In
the starting settings, the player has limited information about the situation within the company, so it is necessary
to develop controlling and management competencies. For example, in the initial setting the energy demand of
the car production is unknown. Thus, the player has to invest in training of employees regarding environmental
awareness and they must also invest in controlling devices to measure energy consumption. This measure has
non-linear relationships effects with other game aspects and indicators, for example motivation or technological
options. These relationships are modelled using basic rules. One example is that better educated employees will
have higher motivation. Another example is the implementation of an environmental management system that will
reduce the amount of waste and related environmental costs.
In every round, the player must make basic management decisions and has the opportunity to make additional
decisions. It is important for the player to be aware of limited management capacity; only a certain number of
decisions can be selected in each round. Also, the capacity of each employee is restricted; as in real world situations,
management decisions require employee resources and will last for several periods. A player is also responsible for
capacity planning for both managers and employees. The amount and quality of decisions and actions depend on
actual corporate performance. Higher motivation and innovation capacity result in more opportunities becoming
available. After all decisions are made by the players, the game engine will calculate the results of each round and
display the new values of the indicators. After reviewing the new situation (and taking into account surprise events
as described earlier), players must make decisions for the next period. In simulated motion, the long term effects of
decisions and their impact on sustainability performance are demonstrated through the game. Players learn to
understand the essential aspects of sustainable management and are taught to develop strategies for their practical
work in the field of sustainability management.

Summary and Conclusions

The goal of this original effort was to develop a management game, i.e. the sustainability manager, which can be used
in business seminars and university courses in order to train students about successful strategies for sustainability
management. The sustainability manager is based on a virtual company, using Web technology and soft computing
approaches. The model for the company includes strategic and organisational aspects, plus material, energy, and
cost aspects. Sustainability manager can be compared to a case study wherein the player has to be aware of all
management decisions regarding strategy, eco-efficient process design, selection of raw materials, and organization
of work, products, and prices.
Sustainability manager has been used in different seminars for practitioners and in university courses. Usually
teams of 2–3 people play with the sustainability manager. One advantage of using this Web-based training instrument
is its high potential for usability, given no specific software is required to play the management game and the game logic
is easily and intuitively understood. In playing this management game, key qualities like responsibility, team work,
communication, creativity and flexibility are exercised, which hopefully results in their improvement for the
participants. To date, feedback has been very positive and has confirmed the original idea for the game as well as its
applicability. It enables the spread of sustainability to new training situations and target groups. Future activities will
focus on the improvement of the game itself through the addition of more scenarios and decision opportunities along
with more detailed assessments of learning outcomes for those playing sustainability manager.

Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment Corp. Soc. Responsib. Environ. Mgmt. 21, 167–174 (2014)
DOI: 10.1002/csr
174 R. J. Baumgartner and T. Winter

Acknowledgements
The authors acknowledges the support of the Austrian Federal Ministry of Transport, Innovation and Technology and the
Austrian Research Promotion Agency through the research program ‘Factory of tomorrow’ (project number 819214) and thanks
the partners within this project: Attractive Software, Jantschgi C&R, Stenum GmbH and University of Leoben/Institute for
Economics and Business Management.

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Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment Corp. Soc. Responsib. Environ. Mgmt. 21, 167–174 (2014)
DOI: 10.1002/csr