Hydraulic Fracturing, Newspaper Coverage, and Social License to Operate

We have been hard at work transforming research originally prepared for our report for Canadian Water Network into a series of interdisciplinary peer-reviewed publications. The first of what we hope will be a trilogy of articles was published today in the open access journal Sustainability. The article — “Comparative Analysis of Hydraulic Fracturing Wastewater Practices in Unconventional Shale Development: Newspaper Coverage of Stakeholder Concerns and Social License to Operate” — was co-authored by an interdisciplinary team, including Joel Gehman (professor at the University of Alberta, Department of Strategic Management & Organization), Dara Y. Thompson (former M.Sc. student at the University of Alberta, Department of Resource Economics and Environmental Sociology), Daniel S. Alessi (professor at the University of Alberta, Department of Earth and Atmospheric Sciences), Diana M. Allen (professor at Simon Fraser University, Department of Earth Sciences), Greg G. Goss (professor at the University of Alberta, Department of Biological Sciences).

The starting point for the overall project was the conceptualization of the hydraulic fracturing wastewater context as comprised of three potentially interrelated spheres of action (Figure 1). By delineating between operator practices, regulatory requirements, and stakeholder concerns, our goal was to better understand the extent to which these different spheres affected one another, if at all. In essence, we conceptualized the hydraulic fracturing wastewater context as a dynamic process in which any one sphere has the potential to influence the other two. Relative to the overall conceptual framework, this article focuses on one of these spheres specifically: stakeholder concerns.

Figure 1. Conceptualization of the hydraulic fracturing wastewater context.

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Sustainability and the AACSB

The Association to Advance Collegiate Schools of Business (AACSB) accredits business schools around the world. As of December 2013, 687 schools were AACSB accredited in 45 countries and territories (or less than 5% of the estimated number of schools offering business degrees worldwide).

Recently I was perusing the AACSB’s Business Standards, which are the basis for business school accreditation, and was surprised at the extent to which sustainability and related themes (e.g., corporate social responsibility) are an integral to the revisions adopted in 2013, from the opening paragraph of the document, through to the AACSB’s three core values and guiding principles, and into its expectations regarding undergraduate educational content. Below are some excerpts:

From the Preamble:

The business environment is undergoing profound changes, spurred by powerful demographic shifts, global economic forces, and emerging technologies. At the same time, society is increasingly demanding that companies become more accountable for their actions, exhibit a greater sense of social responsibility, and embrace more sustainable practices. These trends send a strong signal that what business needs today is much different from what it needed yesterday or will need tomorrow.

From Part 1: Core Values and Guiding Principles:

The following three criteria represent core values of AACSB. There is no uniform measure for deciding whether each criterion has been met. Rather, the school must demonstrate that it has an ongoing commitment to pursue the spirit and intent of each criterion consistent with its mission and context.

A. The school must encourage and support ethical behavior by students, faculty, administrators, and professional staff. [ETHICAL BEHAVIOR]

B. The school maintains a collegiate environment in which students, faculty, administrators, professional staff, and practitioners interact and collaborate in support of learning, scholarship, and community engagement. [COLLEGIATE ENVIRONMENT]

C. The school must demonstrate a commitment to address, engage, and respond to current and emerging corporate social responsibility issues (e.g., diversity,  sustainable development, environmental sustainability, and globalization of economic activity across cultures) through its policies, procedures, curricula, research, and/or outreach activities. [COMMITMENT TO CORPORATE AND SOCIAL RESPONSIBILITY]

 Diversity, sustainable development, environmental sustainability, and other emerging corporate and social responsibility issues are important and require responses from business schools and business students.

 The school fosters sensitivity to, as well as awareness and understanding of, diverse viewpoints among participants related to current and emerging corporate social responsibility issues.

Guidance for Documentation

 Demonstrate that the school addresses current and emerging corporate social responsibility issues through its own activities, through collaborations with other units within its institution, and/or through partnerships with external constituencies

From Standard 9: Curriculum content is appropriate to general expectations for the degree program type and learning goals. [CURRICULUM CONTENT]

Curriculum content refers to theories, ideas, concepts, skills, knowledge, etc., that make up a degree program. Content is not the same as learning goals. Learning goals describe the knowledge and skills students should develop in a program and set expectations for what students should do with the knowledge and skills after completing a program. Not all content areas need to be included as learning goals.

Bachelor’s Degree Programs and Higher

General Business and Management Knowledge Areas

 Economic, political, regulatory, legal, technological, and social contexts of organizations in a global society

 Social responsibility, including sustainability, and ethical behavior and approaches to management

In sum, sustainability and related themes are now apparently integral to the AACSB business school accreditation process. Given the disciplinary power of ratings agencies, it will be interesting to see whether and how business schools respond.

Act 13 Reporting Paper a Top 10 Download Again

According to SSRN, our paper — An Analysis of Unconventional Gas Well Reporting under Pennsylvania’s Act 13 of 2012 — is once again a top 10 download in several categories, including:

The paper was published in the December issue of Environmental Practice and analyzes the extent to which the Pennsylvania Department of Environmental Protection (DEP) complied with its reporting requirements under Act 13. Using publicly available data, we find that the DEP likely omitted between 15,300 and 25,100 unconventional gas wells from its Act 13 report. Left uncorrected, we estimate that Pennsylvania’s state, county, and municipal governments could forfeit fees of $205-$303 million in 2012 and up to $0.75-$1.85 billion cumulatively over the expected life of these wells. We propose the implementation of a relational database and geographic information system as a way for the DEP to fulfill its Act 13 obligations.

Paper on Act 13 Reporting Published

Our paper — An Analysis of Unconventional Gas Well Reporting under Pennsylvania’s Act 13 of 2012 — was published in the December issue of Environmental Practice. According to SSRN, the paper has been among the most frequently downloaded papers in the following categories:

In the paper we analyze the extent to which the Pennsylvania Department of Environmental Protection (DEP) complied with its reporting requirements under Act 13. Using publicly available data, we find that the DEP likely omitted between 15,300 and 25,100 unconventional gas wells from its Act 13 report. Left uncorrected, we estimate that Pennsylvania’s state, county, and municipal governments could forfeit fees of $205-$303 million in 2012 and up to $0.75-$1.85 billion cumulatively over the expected life of these wells. We propose the implementation of a relational database and geographic information system as a way for the DEP to fulfill its Act 13 obligations.

The paper’s findings were reported by several newspapers and industry publications, including the Pittsburgh Post-Gazette and Platt’s Gas Business Briefing.